04-0921_GREENFIELD COMMUNICATIONS_Telecommunications Encroachment Agreement CITY OF SAN JUAN CAPISTRANO
TELECOMMUNICATIONS ENCROACHMENT AGREEMENT
THIS TELECOMMUNICATIONS ENCROACHMENT AGREEMENT, (the
"Agreement") dated September 21, 2004, is between the CITY OF SAN JUAN
CAPISTRANO, a municipal corporation of the State of California ("City"), and Greenfield
Communications, a ("Grantee").
RECITALS
WHEREAS, Grantee wishes to install a fiber optic telecommunications system
and related appurtenances within the City at the locations set forth herein; and
WHEREAS, City wishes to conserve the limited physical capacity of the public
right-of-way held in trust by it, and wishes to secure fair and reasonable compensation
for permitting private use of the public right-of-way and other public property by
Grantee;
AGREEMENT
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
AND CONDITIONS SET FORTH HEREIN, THE PARTIES ENTER INTO THIS
ENCROACHMENT AGREEMENT.
SECTION 1. TERM.
The term of this Agreement is Fifteen (15) years, commencing on its execution,
unless it is terminated earlier as provided for in Section 21.
SECTION 2. RIGHTS GRANTED.
City grants to Grantee a nonexclusive permit to mount, install, operate, repair,
and maintain, at Grantee's sole expense, Grantee's facilities consisting of a fiber
telecommunications system and related appurtenances more fully described on Exhibit
"A" within the City's public right-of-way, at the locations shown on Exhibit "B" (the
"Network") and in accordance with the plans and specifications and routing for the
Network indicated on Exhibits A and B. Any additions or modifications to the Network or
change in control will require an amendment to this Agreement, except for the running
of cables through existing conduits.
A. Encroachment Permits.
The City's prompt processing and issuance of encroachment permits is a
material term of this Agreement. Grantee shall apply for, and City shall issue, subject to
the conditions set forth herein, encroachment permits for the installation of the Network.
Grantee shall submit detailed construction plans of the proposed work. Grantee shall
comply with all federal, state, and local regulatory requirements including, without
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limitation, compliance with the California Environmental Quality Act. Upon request, but
no sooner than thirty (30) days after completion of construction, Grantee shall submit to
City accurate as-built plans and record drawings showing in detail, to the reasonable
satisfaction of the City Engineer, and with as much accuracy as possible, the location,
depth, and size of all Grantee facilities in the public right-of-way.
B. Coordination with Other Permittees.
To the maximum extent possible and to the extent reasonably feasible and not
unduly interfering with Grantee's business plans or customer commitments, Grantee
shall coordinate its construction work with other companies known to be installing
infrastructure in the City s public right-of-way. To the extent reasonably feasible and not
unduly interfering with Grantee's business plans or customer commitments, Grantee
shall participate in any possible joint trenching projects, with respect to area in Exhibit B.
C. Work in the Public Right-of-Wav
An encroachment permit shall be obtain from the City prior to any construction or
traffic diversion in public right-of-way, to install, repair, restore, maintain or service
Grantee's facilities. Applicant shall pay all required permit fees and comply with the
regulations set forth in CSJC Municipal Code for work in the public right-of-way. All
construction shall comply with approved City Standard Plans. A separate permit is
required every time the public right-of-way is obstructed or the streets/walkways are
encroached upon.
D. Location of Facilities
No above ground facilities shall be placed within the public-right-of way. Any
above ground facilities shall be screened from view from the public right-of-way to the
satisfaction of the Planning Director.
SECTION 3. CONSIDERATION.
A. Compensation.
Grantee shall pay a fee to the City in the amount of seven percent (7%) of the
Gross Revenues earned by any Person, including but not limited to the Grantee, from
the provision of all Services relating to or from use of the Network but shall not apply to
Cable Services being provided under any cable franchise agreements.
B. Acceptance.
Grantee agrees and accepts the responsibility to pay reasonable compensation
in an amount of seven percent (7 %) of the Gross Revenues generated by Grantee, any
Affiliated Person, or any other Person from the provision of any Service upon the
Network within the boundaries of the City, but shall not apply to Cable Services being
provided under any cable franchise agreements.
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C. Payment Procedure.
(i) Payments due under this provision shall be computed
quarterly, and shall be paid within 30 days following the end of each such
quarter. The payment shall be accompanied by a report showing the
basis for the computation and such other relevant facts as may be
required by the City.
(ii) No acceptance or payment shall be construed as an accord
that the amount paid is the correct amount, nor shall acceptance of
payments be construed as a release of any claim the City may have for
further or additional sums payable. All amounts paid shall be subject to
audit and recomputation by the City.
(iii) In the event that any payment is not made on or before the
dates specified in Section 3(C)(i), the Grantee shall pay as additional
compensation all of the following:
(a) An interest charge, computed from such due date, at
the annual rate equal to the prevailing commercial prime interest
rate in effect upon the due date;
(b) A sum of money equal to five percent (5%) of the
amount due in order to defray those additional expenses and
costs incurred by the City by reason of delinquent payments.
(iv) No acceptance of any payment shall be construed as a
release of, or an accord, or satisfaction of, any claim that the City might
have for further or additional sums payable under the terms of this
Agreement, or for any other performance by Grantee of an obligation
hereunder.
(v) Payments of compensation made by Grantee to the City
pursuant to the provisions of this Agreement are in addition to, and
exclusive of, any and all authorized taxes, business license fees, and
other fees, levies, or assessments now in effect, or subsequently adopted.
SECTION 4. EXCESS CAPACITY/COLLOCATION.
A. Leased Capacity/Assignment.
Grantee shall have the right to offer excess cable or conduit capacity of the
Network to third parties, provided that:
(1) Unless otherwise mutually agreed, Grantee shall furnish the City
sixty (60) days written notice of any proposed lease or agreement with an entity that is
intending to provide cable television or open video system services to the City residents.
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This Agreement does not authorize Grantee to use or allow the use of the Network or
any part of the Network to provide Cable Service or video programming to subscribers
or to operate an Open Video System, as those terms are defined in federal law
(together "Video Programming Services"). Grantee represents and warrants that it will
not use nor allow the use of the Network or any part of the Network to provide to
customers or transport Video Programming Services without obtaining separate
authority from City. Grantee also represents and warrants that it will include a provision
in its customer contracts requiring its lessees to obtain all necessary City authorizations
prior to using the Network and Grantee agrees to take all reasonable actions necessary
to enforce such a provision.
(2) The proposed lessee or assignee complies with all of the
requirements of the City's ordinances, regulations, and this Agreement prior to providing
Services; and
(3) Grantee shall continue to be liable for all obligations of this
Agreement unless all or a portion of the Agreement is assigned to another provider and
City is notified in writing of such assignment and, in said writing, expressly relieves
Grantee of all or part of its obligations pursuant to this Agreement.
(4) Grantee pays a fee to the City of seven percent (7%) of Gross
Revenues generated by the lease, assignment or other use of the Network or any
portion thereof in accordance with Section 3 above for all Cable Services excluding
services being provided under other cable franchise agreements.
B. Physical Location of Facilities.
No aboveground facility, service cabinet or utility box shall be placed within the
public right-of-way. All facilities shall be constructed, installed and located in
accordance with the plans submitted to the City Engineer. Whenever one or more
existing telephone, electric utilities, cable systems or telecommunications facilities are
located underground within the right-of-way, a Grantee shall occupy the same trench
where reasonable and practical; provided, however, that the City's rights pursuant to
this Agreement shall not be subordinated or impaired by the utilization of any joint
trench or conduit.
SECTION 5. INSTALLATION AND USE STANDARDS.
A. Conformance with Applicable Law.
Grantee shall place, construct, install, own, control, operate, manage, maintain, or use
its facilities by first obtaining all necessary or required permits, agreements, or
approvals from City and any other governmental entities with jurisdiction over the facility
or public right-of-way. Grantee shall maintain its facilities in compliance with such
permits, agreements, or approvals, and all applicable statutes, ordinances, rules,
regulations, orders, and decisions issued by any federal, state, or local governmental
body, agency, or court.
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B. Time. Place and Manner.
Grantee's facilities shall be located, constructed, operated, and maintained in the
time, place, and manner that causes the least interference with the public's use of the
public right-of-way, and the rights or reasonable convenience of property owners who
adjoin the public right-of-way, all as determined by and approved by the City Engineer in
conformance with the San Juan Capistrano Municipal Code, including, but not limited to,
encroachment permits for street work, street excavation, use, removal and relocation of
property within a street, and other street work.
C. Relocation/Removal.
Grantee shall remove or relocate, without cost or expense to City, any facilities if
and when made necessary by any abandonment, change of grade, alignment or width
of any street, sidewalk or other public facility, including the construction maintenance, or
operation of any other City or other public agency underground or aboveground facilities
including but not limited to: any sewer, storm drain, conduits, water, other publicly-
owned utility system, or pipes owned by City or any other public agency. In addition, in
the event all or any portion of said public right-of-way shall be needed by City or other
public agency or in the event the existence of Grantee's facilities shall be considered
detrimental to the public health, safety, welfare, or convenience or to governmental
activities, including but not limited to, interference with City or other public agency
construction projects, or is in conflict vertically and/or horizontally with any proposed
City installation, Grantee shall remove and relocate said facilities at their sole expense
to such other location or locations on said public right-of-way as may be designated by
the City. Said removal or relocation shall be completed within ninety (90) days of
notification by City unless exigencies dictate a shorter period for removal or relocation
or City agrees in writing to extend the time for removal or relocation, In the event said
facilities are not removed or relocated within said period of time, City may cause the
same to be done at the sole expense of Grantee. Further, in the event of an
emergency, City may remove or relocate such facilities, but shall contact Grantee to
arrange for a representative of Grantee to be present, if feasible.
D. Underground Service Alert.
Grantee acknowledges that it is presently a member of "Underground Service
Alert of Southern California" and agrees to maintain and keep current its membership in
said organization throughout the term of this Agreement.
E. City Enaineer.
The decision of the City Engineer shall be final as to whether any material or
workmanship meets the applicable standards, specifications, plans, and grades.
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F. Correction of Plans.
Approval by City of the plans and specifications shall not release Grantee from
the responsibility for or the correction of any errors, omissions or other mistakes that
may be contained in the plans and specifications.
G. Malfunctioning Equipment.
Grantee shall remove and replace or repair any non-functioning or malfunctioning
equipment within forty-eight (48) hours of receiving notice of the malfunctioning or
nonfunctioning equipment as determined by the City Engineer. Any work in the public
right-of-way will require an encroachment permit prior to the start of work.
H. Restoration Upon Completion.
Upon the completion of each installation or removal of equipment or facilities by
Grantee under this Agreement, Grantee shall promptly restore all affected areas to a
clean and safe condition, normal wear and tear excepted, and to new construction
standards. The provisions of this section shall survive the expiration. completion or
earlier termination of this Agreement.
I. Standard of Care.
Grantee shall use and exercise due care, caution, skill and expertise in
performing all work under this Agreement and shall take all reasonable steps to
safeguard work site areas, including without limitation existing facilities and property.
J. Protection of Traffic.
Grantee shall plan, organize and perform its work under this Agreement in the
manner that results in the least amount of traffic disruption. Grantee shall submit for
approval a traffic control plan with all signs, barricades, arrow boards, lights, high-level
flag trees, flag personnel and other devices, materials or personnel that may be needed
in connection with the safe and careful performance of any work in right-of-way allowed.
The traffic control plan must be prepared in accordance with the Manual on Uniform
Traffic Control Devices and Work Area Traffic Control Handbook Standards.
K. Protection of Other Utilities.
Grantee shall not disturb or disrupt the operation or maintenance of any sanitary
sewers, storm drains, gas or water mains, or other underground conduits, cables or
mains in connection with the workto be performed or services to be provided by
Grantee under this Agreement.
L. Repair or Replacements.
Grantee agrees to promptly repair or replace at Grantee's sole expense and to
City Engineer's satisfaction any facilities or property that City reasonably determines
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has been damaged, destroyed, defaced or otherwise injured as a result of the work
performed or services Provided by Grantee under this Agreement.
M. Toll Free Number.
Grantee agrees to provide a toll free public information telephone number to City
for referral of any inquiries that may arise regarding the installation of Grantee's
facilities.
N. Performance by City.
In the event Grantee fails to perform any of its obligations under this Agreement
within a reasonable period after delivery of written notice of such failure and City
performs any work including, but not limited to repairing or maintaining the street
improvements, City shall only be obligated to perform such work in a manner consistent
with the standard practices of the City in performing street work and construction. City
shall not be obligated to repair or replace any materials or improvements in a form or
manner consistent with Grantee's plans and specifications, and City shall not be
responsible for any damages to Grantee as a result of City performing such work,
including, but not limited to, severance damages. Grantee shall reimburse City for its
reasonable costs, including allocated overhead, of any work performed by City pursuant
to this subsection.
O. Directional Boring.
Directional boring and use of trench plates are at the discretion of the City during
issuance of Encroachment Permits.
P. Hours of Construction.
Constructions hours shall be as specified in the Encroachment and/or Excavation
Permit. Construction must generally occur between 8:30 a.m. and 3:30 p.m.
Construction outside these hours must be approved in advance in writing by the City
Engineer.
Q. Underarounding.
All new lines must be underground.
R. Abandonment.
If the Network, or any part thereof, is abandoned for a period of one year or
more, Grantee shall notify City and shall promptly vacate and remove the Network or
the abandoned part thereof at Grantee's sole expense. Alternatively, City may allow
Grantee, in its sole discretion, to abandon the Network in place and convey it to City. If
Grantee fails to remove the Network as required by City within one hundred and twenty
(120) days after receipt of notice from City, City may, in its sole discretion, (a) remove
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the Network at Grantee's sole expense, which Grantee shall promptly reimburse to City,
or (b) deem the Network, or any part thereof, to have been conveyed to City.
SECTION 6. SECURITY
Prior to the commencement of any work hereunder, Grantee shall furnish or
cause to be furnished to City a good and sufficient bond, in the form and from an entity
approved by the City Attorney, entitled Performance Bond in an amount to be
determined by the City Engineer after submittal of plans, or such other comparable
security instrument as approved by the City Attorney, securing the faithful performance
by Grantee of all the terms and conditions of this Agreement. If construction is
completed prior to final paving (surface course) of the streets, the Performance Bond
will be waived.
SECTION 7. INDEMNITY.
Grantee agrees to and shall defend, indemnify and hold City, its officers, agents,
employees, and representatives harmless from all third party suits and causes of action,
claims, charges, damages, demands, judgments, civil fines, and penalties or losses of
any kind or nature whatsoever, arising out of this Agreement or Grantee's installation
and maintenance of its facilities for all third party claims of any kind including without
limitation, for damage or claims for damage for personal injury, including death, and
claims for property damage that may arise directly or indirectly from this Agreement,
Grantee's installation and maintenance of its facilities or damage to Grantee's facilities,
except and to the extent caused by City's sole negligence, willful misconduct or criminal
acts, including but not limited to those that arise out of : (1) the performance or the
failure to perform the obligations in this Agreement by Grantee, or its contractors,
subcontractors, agents, employees, or other persons acting on Grantee's behalf and, (2)
the design, placement, maintenance, repair, or condition of Grantee's installation of its
facilities. This indemnity and obligation to hold harmless shall apply regardless of
whether or not City prepared, supplied, or approved plans or specifications or inspected
any of the work or improvements installed and constructed pursuant to this Agreement
and shall survive termination or expiration of this Agreement. Specifically, and without
limiting the foregoing, Grantee agrees to defend, indemnify and hold harmless City, and
its officers, agents and employees and representatives from the following damages or
claims for damages, except and to the extent caused by City's sole negligence, willful
misconduct or criminal acts, including but not limited to those that arise out of (1) any
damage or claims for damage to Grantee's facilities caused by any excavation or work
performed by City at or near the location of Grantee's facilities, (2) any indirect, special,
putative or consequential damages (including, but not limited to, any claim for loss of
services) to Grantee, or any other person arising from any damage to Grantee's
facilities, and (3) any damage or claims for damages resulting from damage to
Grantee's facilities caused by third persons. In the event Grantee subcontracts or
assigns any portion of the Grantee's duties under this Agreement, the Grantee shall
require its subcontractor or assignee to comply with the terms of this Section in the
same manner as required by the Grantee.
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SECTION 8. LIMITS OF CITY LIABILITY.
In no event shall City be liable, under any theory, to Grantee for any damage to
Grantee's facilities caused by any excavation or work performed by City at or near the
location of Grantee's facilities except and to the extent caused by City's sole gross
negligence, willful misconduct or criminal acts. City shall not be liable, under any
theory, to Grantee for any indirect special, punitive or consequential damages
(including, but not limited to, any claim for loss of services) nor shall City be liable,
under any theory, for damage to Grantee's facilities caused by any other persons.
Grantee hereby waives any right it may possess to seek damages from the City for any
act or omission relating to Grantee's occupation of the public right-of-way, of the City, its
officers, boards, commissions, agents, or employees for which immunity does not
otherwise apply, except for damages caused by the City's gross negligence, willful
misconduct or criminal acts which result in personal bodily injury to Grantee, or its
employees, officers, officials, agents, transferees or independent contractors or results
in physical injury to Grantee's property or rights. Grantee's equitable remedies shall not
be limited by this provision.
SECTION 9. INSURANCE.
Grantee, at its sole, cost and expense, for the full term of this Agreement, shall
obtain and maintain at minimum all of the following insurance coverage:
A. Types of Insurance and Minimum Limits.
The coverage may be satisfied by any combination of specific liability and excess
liability policies.
(1) Workers' Compensation and Employee Liability Insurance in
conformance with the laws of the State of California for the statutory limits,
(2) Grantee's vehicles, including owned, non-owned (e.g. owned by
Grantee's employees and used in the course and scope of employment), leased or
hired vehicles, shall each be covered with Automobile Liability insurance in the
minimum amount of Two Million Dollars ($2,000,000.00) combined single limit per
accident for bodily injury and property damage.
(3) Grantee shall obtain and maintain comprehensive or commercial
General Liability Insurance coverage and shall include, but not be limited to, coverage for
premises operation, explosion and collapse hazard, underground hazards, contractual
insurance, broad form property damage, independent contractors, and personal injury
liability. The limit of such insurance shall be at least Two Million Dollars ($2,000,000.00)
combined single limit liability for personal injury and property damage.
(4) City may, by resolution, from time to time, reasonably increase said
insurance to the amounts which other contractors operating within the public right-of-
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way in a manner similar to Grantee and operating in the jurisdiction of City are required
to provide so long as said increased coverage is reasonably available.
(5) City and its officers and employees shall be named as additionally
insured by endorsement (except for workers' compensation) at no cost to City.
(6) Prior to commencement of any work, Grantee shall furnish proof to
City that satisfactory policies of insurance described above are in place issued by
companies licensed in California rated Grade "A" or better and Class VII or better by the
latest edition of Best's Key Rating Guide. A Grade B will be accepted for workers'
compensation.
(7) All insurance policies shall provide that in the event of material
change, reduction, cancellation, or non-renewal by the insurance carrier for any reason,
not less than thirty (30) days notice will be given to the City by registered mail of one (1)
copy of a written notice of such intent to cancel or not to renew the coverage. An
authorized agent of such insurance carrier shall provide to City, on such schedule as is
reasonably requested by City, a certification that all insurance premiums have been
paid and all coverage is in force. If for any reason Grantee fails to obtain or keep my of
such insurance in force, City may, but shall not be required to, obtain such insurance, in
which event Grantee shall promptly reimburse City's premium cost therefore plus one
and one-half percent (1 -1/2%) monthly interest thereon until paid.
SECTION 10. REIMBURSEMENT OF CITY'S EXPENSES.
In connection with the work to be performed by Grantee under this Agreement,
Grantee shall reimburse the City for any and all direct expenses in connection with: the
review of the application for, the negotiation of this Agreement including any expense
incurred by the City for technical or legal services to review any such application or
revisions of the Agreement; City's costs of reviewing the bonds and insurance; and any
and all permit and inspection fees and incidental costs.
SECTION 11. USE OF FACILITIES.
Grantee's facilities shall be placed, constructed, owned, controlled, operated,
managed, and used solely and exclusively for the purposes and uses expressly set forth
in this Agreement. Grantee shall not in any way use, or authorize or allow another
person to use, any facility subject to this Agreement for any purpose or use other than
the purposes and uses expressly set forth in this Agreement.
SECTION 12. SUBORDINATE USE OF RIGHTS OF WAY.
Any privilege claimed by Grantee, in the public right-of-way shall be subordinate
to any prior lawful occupancy of the public right-of-way.
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SECTION 13. DISCLAIMER OF GUARANTEES.
(1) Nothing in this Agreement shall be deemed to be a representation
or guarantee by City that its interest or other right to control the use of the property that
is the subject herein is sufficient to permit its use for the purposes specified in this
Agreement. This Agreement shall be deemed to grant no more than the rights that City
may have the authority to grant.
(2) Grantee acknowledges that City has made no warranties or
representations regarding the fitness or suitability of any of City's property for the
installation of Grantee's facilities or for this project and that any performance of work or
costs incurred by Grantee or provision of services contemplated under this Agreement
by Grantee is at Grantee's sole risk. Grantee acknowledges that City has made no
warranties or representations that Grantee shall be provided uninterrupted power
service.
(3) Grantee acknowledges and agrees that Grantee bears all risk of
loss or damage of its facilities, equipment and material installed on City property or in
City's public right-of-way pursuant to this Agreement except to the extent said loss or
damage was caused by the acts or omissions of City, its employees or agents.
SECTION 14. NON-EXCLUSIVE USE.
The rights to Grantee allowed hereunder shall be for the nonexclusive use of the
public right-of-way. By executing this Agreement, City does not agree to restrict the
number of right-of-way agreements to be executed that cover all or an art of Cit for
9 Y 9 YP Y
any person in the same business, a competing business, or a related business as
Grantee,
SECTION 15. RIGHTS RESERVED TO THE CITY.
(1) This Agreement shall not contract away, modify, abridge, impair, or
affect, in any way, to any extent, the right of City to acquire any facility located in the
public right-of-way through the exercise of the right of eminent domain,
(2) There is reserved to City every right and power which is required to
be reserved or provided by any ordinance of City, and Grantee, by the use of the public
right-of-way, agrees to be bound thereby and to comply with any lawful action or
requirements of City in its exercise of such rights or power, heretofore or hereafter
enacted or established.
(3) This Agreement shall not constitute a waiver or bar to the exercise
of any governmental right or power of City, including City's authority to make any proper
public use of the public right-of-way.
(4) City shall have the right to supervise all construction or installation
work performed subject to the provisions of this chapter and make such inspections as it
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finds necessary to ensure compliance with the terms hereunder, or any other local,
state, or federal law, regulation, permit, or standard.
SECTION 16. INDEPENDENT CONTRACTOR.
Grantee is acting as an independent contractor performing work under this
Agreement and is not an agent, servant or employee of City. Nothing in this Agreement
shall be interpreted or construed as creating or establishing the relationship of employer
and employee between City and Grantee. Grantee is responsible for paying all required
state and federal taxes.
SECTION 17. NOTICES.
All notices hereunder must be in writing and, unless otherwise provided herein,
shall be deemed validly given on the date either personally delivered to the address
indicated below; or when received by certified mail, return receipt requested via U.S.
Mail; or when sent via facsimile to a party at the facsimile number set forth below or to
such other or further facsimile number provided in a notice sent under the terms of this
paragraph, on the date of transmission of that facsimile. Should City or Grantee have a
change of address, the other party shall immediately be notified in writing of such
change, provided, however, that each address for notice must include a street address
and not merely a post office box. All notices, demands or requests from Grantee to City
shall be given to City addressed as follows:
To City: City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, CA 92675
Attention: City Manager's Office
To Grantee: Greenfield Communications
31882 Camino Capistrano, Ste. 103
San Juan Capistrano, CA 92675
Attention: Mike Powers, President
SECTION 18. ASSIGNMENT.
Grantee may not assign or transfer any interest in this Agreement or the Network
without the prior written consent of the City which consent shall not be unreasonably
withheld, except as expressly provided herein.
SECTION 19. TERMINATION.
(1) If Grantee defaults in the performance of this Agreement, materially
breaches any of its provisions, including without limitation, the obligations to make
payments pursuant to Section 3.
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(2) Upon expiration or termination, and if requested in writing by the
City Engineer, Grantee shall remove its facilities at its own expense and shall repair and
restore all City property and all public right-of-way that were affected by the placement,
maintenance, and removal of such facilities to a condition satisfactory to City. If
removal of the facilities is required by the City Engineer, such removal and the repair of
City property and public right-of-way shall be completed within ninety (90) days of the
later of the effective termination date of this Agreement or the date the City Engineer
requests removal. If Grantee does not remove its facilities within this period, of if the
City Engineer does not request removal, Grantee shall be deemed to have abandoned
its facilities in place. Such abandoned facilities shall be deemed conveyed to City, and
Grantee shall have no further obligation under this Agreement. The provisions of this
subsection shall survive the expiration or termination of this Agreement.
SECTION 20. PURCHASE OR CONDEMNATION BY CITY.
There is reserved to City the right to acquire the property of Grantee utilized in
the performance of this Agreement, by purchase or through the exercise of the right of
eminent domain, in accordance with the conditions set forth in applicable State law.
SECTION 21. ENTIRE AGREEMENT; AMENDMENTS.
This Agreement, including the exhibits referenced herein and incorporated
herein, constitutes the entire Agreement between the parties relating to the rights of the
parties hereunder. No modification of this Agreement shall be effective unless and until
such modification is evidenced in writing signed by all parties.
SECTION 22. TIME OF ESSENCE.
Time shall be of the essence in this Agreement.
SECTION 23. NON-WAIVER.
A waiver by City of any breach of any term covenant, or condition contained in
this Agreement shall not be deemed to be a waiver of any subsequent breach of the
same or any other term, covenant, or condition contained in this Agreement whether of
the same or different character.
SECTION 24. GOVERNING LAW/EXCLUSIVE VENUE.
This Agreement shall be governed and construed in accordance with the internal
laws of the State of California and exclusive venue shall be in the County of Orange,
whether litigation ensues in State or Federal court.
SECTION 25. SEVERABILITY.
If any part of this Agreement is held invalid, the remaining terms and conditions
shall not be affected unless their enforcement under these circumstances would be
unreasonable, inequitable, or otherwise frustrate the purposes of this Agreement.
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SECTION 26. PROPERTY TAXES.
Pursuant to Revenue and Taxation Code section 107.7, the property interest
created herein may be subject to property taxation and Grantee may be subject to
property taxes levied on such interest. In no event shall City be liable for any taxes
owed as a result of this Agreement.
SECTION 27. DEFAULT.
In the event of default by either party to this Agreement, City, but not Grantee,
shall have available all remedies at law or in equity not otherwise provided for herein,
including by way of illustration but not limitation, suits for injunctive or declaratory relief,
specific performance, relief in the nature of mandamus, or action for damages. Grantee
shall possess all remedies with the exception of an action for damages, which will not
be available against City or any related person or entity except and to the extent of
City's sole negligence, willful misconduct or criminal acts. All remedies, including the
remedies specified in this Agreement, shall be cumulative and not exclusive of one
another, and the exercise of any one or more of said remedies shall not constitute a
waiver or election with respect to other available remedy.
SECTION 28. ABANDONMENT.
If the Network, or any part thereof, is abandoned for a period of one year or
more, Grantee shall notify City and shall promptly vacate and remove the Network or
the abandoned part thereof at Grantee's sole expense. Alternatively, City may allow
Grantee, in its sole discretion, to abandon the Network in place and convey it to City, If
Grantee fails to remove the Network as required by City within one hundred and twenty
(120) days after receipt of notice from City, City may, in its sole discretion, (a) remove
the Network at Grantees sole expense, which Grantee shall promptly reimburse to City,
or (b) deem the Network, or any part thereof, to have been conveyed to City.
Notwithstanding the foregoing, if this Agreement expires or is terminated, the foregoing
shall not apply to the extent it is preempted by California Public Utilities Code section
7901 or otherwise prohibited by other applicable law.
SECTION 29. WAIVER OF CHALLENGES.
City and Grantee jointly agree that this Agreement is valid, binding, and
enforceable as to Grantee, any lawful successor thereof, and the Network, that neither
party will challenge or otherwise contest the enforceability thereof in any proceeding,
administrative or judicial, that the parties will comply therewith and that the parties
hereby waive any rights which they may have to challenge this Agreement. More
specifically, and without limitation, Grantee agrees that for the term of this Agreement, it
will make all payments to the City required thereby and expressly waives any right to
challenge the legality and/or enforceability of said obligation.
C:\Douglas\Agreements\Telecommunications Encroachment Agreement 8-25-04 updated.DOC
SECTION 30. AUTHORITY EXISTS.
Each party warrants that it has the power, right and authority to agree to the
terms set forth in this Agreement.
SECTION 31. NO INDUCEMENT.
The parties further declare and represent that no promise, inducement, or
agreement not herein expressed or incorporated by reference has been made to any
party hereto, that this Agreement contains the entire agreement between the parties,
and that the terms of this Agreement are contractual and not merely recitals. No
modification or waiver of any of the provisions hereof shall be valid unless and until it is
put into writing and executed by all parties hereto and approved by the City Council of
the City of San Juan Capistrano.
SECTION 32. INDEPENDENT ADVICE.
The parties to this Agreement acknowledge that they have been advised by their
own independently selected counsel and other advisors in connection with these
agreements and enter into this Agreement solely on the basis of that advice and on the
basis of their own independent investigation of the facts, laws and circumstances
material to this Agreement or any provision thereof, and not in any manner or to any
degree based upon any statement or omission by any other party or its agents,
representatives or attorneys, with regard to the subject matter, basis or effect of this
Agreement or otherwise, The parties freely and without duress approve and execute
this Agreement.
SECTION 33. DEFINITIONS.
In addition to the definitions contained elsewhere in the San Juan Capistrano
Municipal Code, the following words and phrases shall, for the purposes of this chapter,
be defined as set forth in the Cable Communications Policy Act of 1984 ("1984 Cable
Act'), as amended, the Telecommunications Act of 1996 ("TCA"), the California Public
Utilities Code, or as set forth below unless it is clearly apparent from the context that
another meaning is intended. Should any of the definitions be in conflict with the other
provisions of the San Juan Capistrano Municipal Code, the following definitions shall
prevail:
A. "Affiliated Person" or "Affiliates" means each Person who falls into one or
more of the following categories: (i) each Person having, directly or indirectly, a
Controlling interest in Grantee; (ii) each Person in which Grantee has, directly or
indirectly, a Controlling Interest; (iii) each officer, director, general partner, limited
partner holding an interest of five percent (5%) or more, joint venture, or .joint venture
partner in Grantee; and (iv) each Person, directly or indirectly, controlling, controlled by,
or under common Control with Grantee; provided that "Affiliated Person" excludes the
City, any limited partner holding an interest of less than five percent (5%) in the
Grantee, or any creditor of Grantee, solely by virtue of its status as a creditor, and which
is not otherwise an Affiliated Person by reason of owning a Controlling Interest in, being
C:\Douglas\Agreements\Telecommunications Encroachment Agreement 8-25-04 updated.DOC
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owned by, or being under common ownership, common management, or common
Control with Grantee.
B. "Control" or "Controlling Interest" means actual working control in
whatever manner exercised, including, without limitation, working control through
ownership, management, debt instruments, or negative control, as the case may be, of
the Telecommunications Facilities or the Grantee. A rebuttable presumption of the
existence of Control or a Controlling Interest shall arise from the beneficial ownership,
directly or indirectly, by any Person or group of Persons acting in concert (other than
underwriters during the period in which they are offering securities to the public) of five
percent (5%) or more of any Person (which Person or group of Persons is referred to as
"Controlling Person"), or being a party to a management contract.
C. "Gross Revenues" means all revenue, as determined in accordance with
Generally Accepted Accounting Principles, which is received, directly or indirectly, by
Grantee, by each Affiliated Person, or any other Person from or in connection with the
distribution of any Service. It is intended that all revenue collected by Grantee, and by
each Affiliated Person, from the Provision of Service be included in this definition.
Gross Revenues also specifically include (i) the fair market value of any nonmonetary
(i.e., barter) transaction between Grantee and any Person, other than an Affiliated
Person, but not less than the customary prices paid in connection with equivalent
transactions; (ii) the fair market value of any nonmonetary (i.e., barter) transaction
between Grantee and any Affiliated Persons, but not less than the customary prices
paid in connection with equivalent transactions with Persons who are not Affiliated
Persons; and (iii) any revenue received, as reasonably determined from time to time by
Grantee, through any means which is intended to have the effect of avoiding the
payment of compensation that would otherwise be paid to the City. Gross Revenues
also includes any bad debts recovered. Gross Revenues also includes all advertising
revenue that is received directly or indirectly by Grantee, any Affiliated Person, or any
other Person from or in connection with the distribution of any Service or the provision
of any Service-related activity in connection with the Network. Gross Revenue does not
include: (i) the revenue of any Person to the extent that said revenue is also included in
the Gross Revenues of Grantee; (ii) taxes imposed by law on subscribers which
Grantee is obligated to collect; and (iii) amounts which must be excluded pursuant to
applicable law,
D. "Person" means any corporation, partnership, proprietorship, individual, or
organization authorized to do business in the State of California.
E. "Service" means any Telecommunication, Telecommunications Service, or
Information Service.
F. "Telecommunications Facilities" means any facility constructed within the
City's public right-of-way which are designed or used, in whole or in part, by any
Operator to provide Service.
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SECTION 34. APPLICABILITY OF FUTURE TELECOMMUNICATIONS
ORDINANCE.
By accepting this Agreement, Grantee agrees to be bound by all present and
future ordinances, regulations, and other legal enactments of the City relating to the
construction, installation and/or maintenance of Telecommunications Facilities of any
type and/or the provision of Telecommunications, Telecommunications Services, and/or
Information Services which may be adopted or enacted from time-to-time by the City
Council or other adopting authority of the City.
SECTION 35. CABLE TELEVISION FRANCHISE.
Grantee and the City acknowledge that the services which Grantee intends to
provide pursuant to the Network are materially different, in terms of technological design
and delivery mode, than traditional cable modem services. The City and the Grantee
further agree and acknowledge that there exists uncertainty as to whether or not
traditional cable modem services constitute "Cable Services" within the meaning of the
1984 Cable Act. If, and to the extent, it is determined by a court of competent
jurisdiction or a jurisdictional regulatory agency that all or a portion of the Services
offered by Grantee, either now or at any time in the future, constitute "Cable Services"
within the meaning of the 1984 Cable Act, Grantee will apply for and endeavor to obtain
a lawful cable television franchise from the City. Nothing herein shall obligate the City
to grant said franchise and the parties expressly agree that the City has not, in any way,
confined, limited, delegated, or otherwise interfered with its future legislative discretion
in relation to this subject matter. However, Grantee agrees and acknowledges that if,
and to the extent, it is granted a lawful cable television franchise from the City, it will
comply with the terms and conditions of said cable television franchise and any
generally applicable cable television ordinance adopted and/or amended by the City
from time to time. Except as otherwise authorized by the City, Grantee agrees and
acknowledges that it will discontinue the provision of services which are ultimately
determined to be "Cable Services" absent the receipt of a valid cable television
franchise or other form of lawful authorization issued by the City.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to b
executed on the day first above written.
ATTEST: "CITY"
IM g ret R. Monahan, City Clerk Joe Sot , Mayor
APPROVED AS TO FORM: "GRANTEE"
William Marticorena Mike Powers, President
Rutan & Tucker, LLP
Special Counsel
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Exhibit "A"
Fiber Optic Telecommunications System Description
The Fiber Optic Telecommunications System for the Tract #14196 project in the
City of San Juan Capistrano is a Fiber to the Home (FTTH) Network. The
network consists of the local Headend (also referred to as the local Network
Operations Center or NOC) and all Outside Plant substructures, fiber optic cable
and equipment within the Pacific Point community. The physical layout of the
network is shown on the Master Plan map in Exhibit "B".
Local Headend:
The local Headend is the main interface and interconnection between the Fiber
to the Home network within the community and the telecommunication service
providers.
The Headend is an environmentally controlled modular building housing opto-
electronic equipment, power supplies, racks, supervisory equipment, patch
panels, routers, fiber transceivers, jumpers, test equipment, and all other
equipment and improvements installed for and/or used in the delivery of
Telecommunications Services to the community.
Outside Plant (OSP):
Outside Plant is defined as that portion of the network from the Headend / NOC
to each individual and multi-family dwelling. The demarcation at the Headend /
NOC will be the fiber optic punch panels within the Headend / NOC, and the
demarcation at the individual and multi-family dwellings will be the Central
Service Panel within each dwelling. The Central Service Panel is defined as the
location where the Optical-Electronic Converter will be installed (furnished by the
Merchant Builders) within each dwelling. The Opto-Electronic Converters
(OEC's), also know as Optical Node Units (ONU's), convert the optical signals to
electronic signals for connection to the structured wiring within each home.
The Outside Plant consists of conduit, substructures, fiber optic cable, passive
optical nodes (PON's), splices, and all associated splice covers, terminations,
pull boxes and hand holes. There are no active components (requiring electric
power) nor above grade pedestals within the Outside Plant.
C:\Douglas\Agreements\Telecommunications Encroachment Agreement 8-25-04 updated.DOC
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Exhibit "C"
Grantee shall install and dedicate to the City for its exclusive use, at Grantee's sole
cost, the following telecommunications facilities:
(1) 1 — 12 strand fiber-optic cable parallel to all "FIBER OPTIC CABLE" lines
as depicted on Exhibit "B" hereto; the cable will be terminated at the connection points
for the 1" PVC service lateral conduits;
(2) Grantee's conduit, connection points and access locations (vaults and
hand holes) shall be sized to accommodate the 1 — 12 strand fiber-optic cable described
in Item 1 above;
(3) A 1-strand fiber-optic service cable within Grantee's 1" PVC service lateral
conduits as depicted on Exhibit "B" hereto, between the connection point where City's
12-strand fiber-optic cable is terminated (per Item 1 above) and the service panel inside
all housing units and buildings served by the network;
(4) 1 — 1" PVC conduit and cable (as specified by the City's Water
Department) between the water meter vault and the service panel inside all housing
units and buildings served by the network.
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