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HomeMy WebLinkAbout2025-05-13 - AGENDA REPORTS - LIT FIBER TRANSPORT SERVICE AGMTO Agenda Item: 9 CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR CITY MANAGER APPROVAL: Li DATE: May 13, 2025 SUBJECT: LIT FIBER TRANSPORT SERVICE AGREEMENT FOR THE MASTER'S UNIVERSITY DEPARTMENT: Administrative Services PRESENTER: Benny Ives RECOMMENDED ACTION City Council: Approve a three-year agreement, with two one-year renewal options, that will allow the City to provide lit transport service to The Master's University. 2. Authorize an increase of $10,000 in Fiscal Year 2024-25 to revenue account 100-431111 Dark Fiber Lease. 3. Authorize an increase of $9,000 annually in Fiscal Year 2025-26 through Fiscal Year 2027- 28 to revenue account 100-431111 Dark Fiber Lease. 4. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval. BACKGROUND The City of Santa Clarita (City) has made significant progress in finding ways to utilize its vast fiber optic network (FON) to promote and facilitate high-speed internet access to local businesses. Key milestones in this endeavor include securing a middle -mile dark fiber connection from Santa Clarita to Downtown Los Angeles (DTLA), the procurement of high - capacity fiber equipment, and an agreement with at least one internet Service Provider (ISP) to provide high-speed internet service via fixed wireless. Additionally, organizations with a need for Dedicated Internet Access (DIA) of 1 Gigabit per second (Gbps) or higher, who possess their own technical experts, and are within striking distance of the City's FON, may be a candidate to utilize the City's new connection and obtain Page 1 Packet Pg. 258 O DIA from an ISP located in DTLA. The Master's University (Master's) is a prime example of such an organization. City staff approached Master's to discuss the prospects of partnering on a project that would yield mutual benefits - cost savings and redundant, fault -tolerant internet access for Master's and revenue generation for the City. However, in order to move forward, Master's needs the City's robust FON and its physical connection to DTLA. City staff recommends entering into a three-year agreement whereby the City would provide "lit" transport service of 2 Gbps to Master's. This transport service will utilize the City's active, also known as "lighted," fiber equipment to enable Master's to traverse the City's FON to DTLA and access the resources it will need to achieve robust internet service for its campus. The "lit" service poses no security concerns to the City because Master's connection will be designed as a virtual connection operating on its own unique optical wavelength, analogous to a private lane on a multi -lane highway. The agreement will generate one-time revenue of $10,000 towards necessary fiber equipment plus $9,000 per year for "lit" service for each year of the three-year agreement, for a cumulative contract total of $37,000. It will also enable Master's to obtain competitive prices for DIA while achieving a fault tolerant path to the internet. If approved, the City anticipates Master's will be able to utilize the connection within six to eight weeks. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT Approval of the recommended action will increase Fiscal Year 2024-25 revenue account 100- 431111 by $10,000, and $9,000 annually from Fiscal Year 2025-26 through Fiscal Year 2027- 28. ATTACHMENTS CoSC MASTERS LitSvcs Agreement Page 2 Packet Pg. 259 9.a LIT SERVICES AGREEMENT by and between CITY OF SANTA CLARITA and THE MASTER'S UNIVERSITY L L co u- J Packet Pg. 260 9.a LIT SERVICES AGREEMENT THIS LIT SERVICES AGREEMENT ("Agreement"), made effective as of , 2024 (the "Effective Date"), by and between the CITY OF SANTA CLARITA, a municipal corporation with primary offices at 23920 Valencia Blvd, Santa Clarita, CA 91355 ("City"), and THE MASTER'S UNIVERSITY, with primary offices at 21726 Placerita Canyon Rd, Santa Clarita, CA 91321 ("MASTER'S" or "Subscriber") with respect to the following: RECITALS: A. The City has constructed a fiber optic infrastructure, including but not limited to the dark fiber, conduit, handholes, manholes, equipment, and other dark fiber -related appurtenances and components ("Fiber Optic Network") to facilitate the provision of high-speed, state-of-the-art telecommunications services by prospective users in both the public and private sectors. B. City owns and operates fiber equipment and telecommunications facilities and is in the business of providing certain lit transport services ("Lit Services") described herein. C. Subscriber wishes to utilize City's facilities to subscribe to Lit Services as more particularly described herein, between 22421 Market St, Newhall, CA 91321 ("Newhall Community Center") and 624 S Grand Ave, Los Angeles, CA 90017 ("One Wilshire Building") and along third party owned dark fiber ("Third Party Fiber"), subject to the terms and conditions set forth in this Agreement. D. City and Subscriber seek to enter into this Agreement for Subscriber to subscribe to Lit Services, on the terms and conditions set forth herein. NOW THEREFORE, in consideration of the mutual promises set forth below, the parties hereby agree as follows: SECTION 1. LIT SERVICES. 1.1 Services Ordered. City shall provide Lit Services ordered by Subscriber along the route set forth in Exhibit "A". From time to time the parties may incorporate additional Lit service routes subject to City's sole discretion. To the extent the City agrees to provide any additional Lit service routes, the parties may amend and replace Exhibit "A". Lit Services consist of the following: A. Lit Services are linear, bi-directional, point to point, optical transport circuits enabled by equipment between two (2) sites over a shared optical fiber infrastructure. I of 24 Packet Pg. 261 9.a B. Lit services are offered at 2 Gbps, but may be upgraded, as mutually agreed upon in the future. C. Lit Services will be dedicated to Subscriber's sole use and will originate or terminate at the City's points of presence at City owned or leased facilities. D. Lit Services do not include any cross -connects, except to the extent required at the demarcation point in Santa Clarita. It is Subscriber's responsibility to procure and pay for any cross -connects. E. Lit Services do not include any physical space for equipment except as noted on Exhibit "A". 1.2 Service Delivery and Acceptance. Prior to delivering Lit Services to Subscriber, the City shall conduct acceptance testing ("Acceptance Testing") to verify that the Lit Services conform with the specifications for the services ordered under this Agreement (the "Specifications"). The City shall notify Subscriber on the date when the Lit Services have been successfully installed and are performing in accordance with the applicable Specifications and are available for Subscriber's use ("Service Date"). Subscriber shall have seven (7) calendar days to verify the Lit Services are performing in accordance with the applicable Specifications (the "Verification Period") and provide the City notice of any rejection of Lit Services to the City. Subscriber's use of the Lit Services, other than for verification testing, or Subscriber's failure to reject the Lit Services within the Verification Period shall be deemed an automatic acceptance of the Lit Services. SECTION 2. TERM. 2.1 Initial Agreement Term. The term of this Agreement shall commence on the Effective Date and, except as otherwise provided in this Agreement, shall continue in effect for a period of three (3) years (the "Initial Term"). 2.2 Extension Term. Provided that Subscriber is in full compliance with the terms of this Agreement, the term of this Agreement shall be automatically extended for up to two (2) successive periods of one (1) year (each an "Extension Term"), on the same terms and conditions as in effect just before the then -current end of the term. Either Party shall have the right to terminate this Agreement after the Initial Term by providing the other Party with sixty (60) days advance notice of its intent to terminate the Agreement. 2 of 24 Packet Pg. 262 9.a SECTION 3. LIT SERVICES FEES. 3.1 Lit Services Fee. In exchange for a dedicated Lit Service, Subscriber shall pay to City the applicable Lit Services Fee ("Services Fee") outlined in Exhibit "A." 3.2 Fee During Any Extension Term, If Any. In the event of an exercise of the Extension Term, the amount set forth in Exhibit A as "Annual Recurring Charge" (ARC) shall be subject to a five percent increase effective on the anniversary date of the Execution Date ("Adjustment Date") for the Extension Term. 3.3 Rates and Form of Payments. The Lit Services Fee (the "Services Fees") shall be paid, without any prior demand, setoff, counterclaim or deduction for any reason, by check or money order payable to the CITY OF SANTA CLARITA, and shall be mailed or delivered to the following address: CITY OF SANTA CLARITA Attention: Finance Division - Accounts Receivable 23920 Valencia Blvd, Suite 295 Santa Clarita, CA 91355 3.4 Proration. In the event any portion of the Lit Services is in effect for less than a full calendar year, Subscriber shall pay a pro rata portion of the Services Fee for the fraction of the calendar year that the Lit Services are in effect. 3.5 Payments and Invoices. The Services Fees shall be paid in accordance with the following payment schedule: A. Monthly Recurring Charge (MRQ Lit Service. During the Initial Term and any Extension Terms, the City shall invoice Subscriber on a monthly basis in advance for the Monthly Recurring Charge. The City will endeavor to invoice Subscriber within thirty (30) days following the Service Date and each anniversary thereof. Subscriber shall pay such invoiced amount within thirty (30) days of receipt of the City's invoice. B. Non -Recurring Charge (NRC). The City shall invoice Subscriber for the Non -Recurring Charge following the Service Date set forth in Section 1.2. Subscriber shall pay such amount within thirty (30) days of receipt of the City's invoice. 3 of 24 Packet Pg. 263 9.a 3.6 Nonpayment. If Subscriber fails to pay the undisputed portion of the Fees when due, the City may exercise its remedies after compliance with the notice provision set forth in Section 16, below. Additionally, the City may assess a late fee of five percent (5%) per month (or the maximum rate allowed under state law, whichever is less) on all amounts payable under this Agreement if not paid when due. 3.7 Payment Disputes. In the event Subscriber disputes any invoice by City, Subscriber will (a) pay all charges not disputed, and (b) notify City of the dispute in writing, providing the invoice number and an explanation of the issue in dispute. Payment will not prejudice Subscriber's right to dispute charges, so long as they are disputed in the manner specified in this Section. The parties will cooperate in good faith to resolve any such disputes within a sixty (60) day period after the dispute is submitted to City. If the dispute is not resolved during this period, then either party may seek dispute resolution in accordance with Section 13. If both parties agree that a disputed amount is a legitimate charge, Subscriber will pay such amount within ten (10) calendar days of such determination. SECTION 4. TAXES AND ASSESSMENTS 4.1 Definition of Taxes. The term "Taxes" as used herein shall mean and refer to any and all taxes, fees, surcharges and other related charges that may be imposed or levied on Subscriber or City by any federal, state, county and local governmental agency, including, but not limited to, possessory interest tax, business or occupation tax (assessed on Subscriber), commercial, deaf, district, excise, high cost fund, lease, lifeline assistance, low income, occupational, privilege, Public Utility Commission, sales, telecommunications relay service, telephone assistance, universal service funding, use, utility user, value-added, 911, or other similar taxes, fees and surcharges as is or may be levied against City and passed through to its customers. 4.2 Obligation to Pay Taxes. Subscriber shall be obligated to pay any all Taxes assessed, levied or imposed in connection with this Agreement and identified herein. Notwithstanding the foregoing, Subscriber is not responsible for the payment of any type of tax levied on City based upon (a) City's net profit, net income or payroll, or (b) franchise taxes measured by City's capital, capital stock or net worth, or (c) City's property or assets not used in connection with this Agreement, or (d) right-of-way fees, or (e) any business or occupation tax assessed on the City. 4 of 24 Packet Pg. 264 9.a 4.3 Agreement to Cooperate. Subscriber and City agree to make commercially reasonable efforts to cooperate with each other and coordinate their mutual efforts concerning audits, or other such inquiries, filings, reports, etc., as may relate solely to the provision, sale or use of purchases, activities or transactions arising from or under this Agreement, which may be required or initiated from or by Subscriber, City or any duly authorized governmental authority relating to Taxes. SECTION 5. REQUIRED RIGHTS. City represents and warrants that it has secured the rights necessary for the installation and maintenance of the Fiber Optic Network ("Required Rights"). City shall maintain the Required Rights and will, at its cost, exercise any renewal right thereunder, and will use its best efforts to acquire extensions, additions or replacements as are necessary to cause the Required Rights to continue through the Initial Term and any Extension Terms. SECTION 6. ACCESS AND USE OF THE FIBER OPTIC NETWORK. 6.1 Interconnection at the Demarcation Points. Subscriber shall install, or cause to be installed, at its sole cost and expense, fiber optic cabling and any associated infrastructure from the Subscriber's network ("Subscriber Fibers") to the Demarcation Points. To the extent that the City is required to specially construct, relocate, or acquire from third parties any fiber optic cabling or associated infrastructure to provide the Lit Services for Subscriber, whether Subscriber cancels or terminates the Agreement prior to the Service Date, Subscriber shall be responsible for the actual and documented costs for such construction, relocation or acquisition. 6.2 No Access to Other Parts of Fiber Optic Network. Except as required for the Lit Service, which is the subject of this Agreement, Subscriber shall not have access to any part of the Fiber Optic Network without the prior written consent of City, and then only subject to the terms and conditions specified by City. 6.3 Compliance with Applicable Law. Subscriber warrants that its use of the Lit Services shall comply with all applicable governmental codes, ordinances, laws, rules, regulations, orders, policies and restrictions. Subscriber may not (i) tamper with other accounts or commit unauthorized intrusion into the City's Fiber Optic Network;(ii) use Lit Services with the intent to breach or evaluate the City's network security; (iii) use Lit Services to make deliberate attempts to overload the Fiber Optic Network; or (iv) use Lit Services to transmit viruses, malware or other destructive programming code with the intent to interfere with the Fiber Optic Network or related services. Nothing in this Agreement shall be construed to create a public forum and the City shall not be held liable or responsible for any Subscriber or third -party content or data transmitted over the Lit Services. 5 of 24 Packet Pg. 265 9.a 6.4 City Equipment. The telecommunications devices, apparatus and associated equipment owned, leased, or otherwise obtained by City to provide Lit Services ("City Equipment"), shall remain the sole and exclusive property of the City notwithstanding that it may be or become attached or affixed to real property, and nothing contained herein grants or conveys to Subscriber any right, title or interest in any City Equipment. Subscriber may not, and may not permit others to, alter, adjust, encumber, tamper, repair, rearrange, change, remove, relocate, or damage any City Equipment or the Fiber Optic Network without the prior written consent of City. Subscriber may not cause any liens to be placed on any City Equipment or the Fiber Optic Network. Subscriber shall be liable to City for any loss or damage to City Equipment or Fiber Optic Network caused by Subscriber or Subscriber's employees, contractors, agents or end users. Nothing herein shall prevent City from using the Fiber Optic Network and City Equipment to provide services or grant a license to other customers. 6.5 Subscriber Equipment. Subscriber shall, at its sole cost and expense, procure any equipment necessary to implement or receive Lit Services ("Subscriber Equipment"). Subscriber Equipment shall be compatible with the City's requirements and subject to the City's approval prior to installation. City shall have the right to inspect and approve the installation of all Subscriber Equipment prior to commencing any Lit Services. Subscriber shall coordinate with the City to install, maintain, or repair Subscriber Equipment. Promptly upon notice from City, Subscriber shall eliminate any hazard, interference or obstruction that any such Subscriber Equipment is causing or may cause as reasonably determined by City. Subject to the City's consent, which the City may withhold in its sole discretion. Subscriber may install Subscriber Equipment in City owned or leased facilities. 6.6 Damage. If Subscriber or any of its agents, invitees, employees, representatives, contractors, subcontractors or consultants damage the City's Fiber Optic Network or any other property owned by the City, Subscriber shall reimburse the City for all of its reasonable and documented costs of repairing the Fiber Optic Network or other property. Total amounts City may be eligible for upon determination of fault caused by Subscriber is limited to 2 years of the ARC. SECTION 7. MAINTENANCE. 7.1 Maintenance of Structural Aspects. City shall maintain the Lit Services such that they at all times conform to the applicable specifications. The City's maintenance responsibilities under this Agreement shall only apply to network elements under the City's exclusive control and shall not apply beyond Subscriber's demarcation points. Subscriber shall not perform or access the Fiber Optic Network to conduct maintenance or repairs without the express written authorization of the City. 6 of 24 Packet Pg. 266 9.a 7.2 Delegation of Maintenance Services. City may subcontract for testing, maintenance, repair, restoration, relocation, or other operational and technical services for the maintenance of the Fiber Optic Network; however, any delegation or subcontracting by City shall not operate to relieve City of its responsibilities under this Agreement. 7.3 Notification of Problems. Subscriber shall promptly notify City of any matters pertaining to any damage or impending damage to or loss of the use of Lit Services that are known to it and that could reasonably be expected to adversely affect the Fiber Optic Network. City shall promptly notify Subscriber of any matters pertaining to any damage or impending damage to or loss of Lit Services that are known to it and that could reasonably be expected to adversely affect Subscriber's use thereof. 7.4 Third Party Fiber Problems. Subscriber acknowledges that Lit Services will traverse across the Fiber Optic Network and Third Party Fiber that the City possesses the legal right to use, the latter of which shall be subject to the availability and maintenance terms set forth by the owner of the Third Party Fiber. The City does not warrant or guarantee any particular data distortion rate along Third Party Fiber. Subscriber shall promptly notify City of any matters pertaining to any loss of Lit Services that are known to it and that could reasonably be expected to adversely affect Lit Services. City shall promptly notify Subscriber of any matters pertaining to any damage or impending damage to or loss of Lit Services that are known to it and that could reasonably be expected to adversely affect the Lit Services or Subscriber's use thereof. SECTION 8. WARRANTY. 8.1 City warrants and represents that it possesses and will maintain all applicable licenses, approvals, registrations and certifications required under all applicable governmental laws, codes, ordinances, statutes and regulations in order to perform its obligations under this Agreement. 8.2 Subscriber warrants and represents that all network traffic handled by the City is compliant with applicable governmental laws, codes, ordinances, statues and regulations and those established in this Agreement. 8.3 EXCEPT AS OTHERWISE PROVIDED HEREIN, THE SERVICES ARE PROVIDED AS -IS AND THE CITY EXPRESSLY DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY WITH RESPECT TO THE SERVICES PROVIDED UNDER THIS AGREEMENT. THE WARRANTIES AND REMEDIES SET FORTH ABOVE CONSTITUTE THE ONLY WARRANTIES AND REMEDIES WITH RESPECT TO THIS AGREEMENT AND ARE IN LIEU OF ALL OTHER WARRANTIES, WRITTEN OR ORAL, STATUTORY, 7 of 24 Packet Pg. 267 9.a EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. THE CITY FURTHER DISCLAIMS ALL LIABILITY AND RESPONSIBILITY FOR THE CONTENT OF ANY COMMUNICATION TRANSMITTED BY SUBSCRIBER OR OTHERS AND DISCLAIMS ALL LIABILITY AND RESPONSIBILITY FOR UNAUTHORIZED USE OR MISUSE OF THE LIT SERVICES. SECTION 9. INDEMNIFICATION. Subscriber shall indemnify, defend and hold harmless City, its City Council, boards and commissions, employees, and agents from and against all third -party liability, loss, cost, damage, expense, claims or cause of action of any nature whatsoever, including, but not limited to, reasonable attorneys' fees, arising out of or resulting from Subscriber's use of Lit Services under this Agreement; provided, however, that Subscriber shall not have any obligation to indemnify, defend or hold harmless for any claims arising from the sole active negligence or willful misconduct of the City. SECTION 10. LIMITATION OF LIABILITY. 10.1. IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, INCIDENTAL, RELIANCE, OR PUNITIVE DAMAGES OF ANY KIND OR NATURE WHATSOEVER, INCLUDING BUT NOT LIMITED TO ANY LOST PROFITS, LOST REVENUES, LOST SAVINGS, OR HARM TO SUBSCRIBER'S BUSINESS OR SUBSCRIBER'S CUSTOMERS IN CONNECTION WITH THE USE OF LIT SERVICES OR THIS AGREEMENT. EACH PARTY HEREBY RELEASES THE OTHER PARTY FROM ANY SUCH CLAIM. 10.2. Disclaimer of Internet Performance. City does not and cannot control the now of data to and from the City via the internet. Such flow depends in large part on the performance of internet services provided or controlled by third parties. At times, actions or inactions of third parties can impair and disrupt the Lit Services. City will use commercially reasonable efforts to remedy and avoid such events but cannot guarantee that such events will not occur. Accordingly, City disclaims any and all liability resulting from or relating to such events. 10.3. Limitation of Damages. In addition to the limitations set forth above, Subscriber agrees that in the event of any claim or cause of action by Subscriber arising out of connected with this Agreement, the maximum amount of City's liability of loss to Subscriber, regardless of the amount of loss Subscriber may have suffered, shall be the amount of Fees paid by Subscriber to City within the prior year. 10.4. No Personal Liability for City Personnel. In no event will any City board, agency, member, officer, employee, agent, director, contractor, subcontractor or representative be personally liable to Subscriber, its successors or assigns, for any default, breach, other nonperformance or sum unpaid sum by the City. The provisions in this Section 10.4 shall survive this Agreement's revocation, termination or expiration. 8 of 24 Packet Pg. 268 9.a SECTION It. INSURANCE. Upon the Execution Date, Subscriber shall maintain insurance in compliance with the terms set forth in the Insurance Requirements attached hereto as Exhibit "C" and shall provide evidence of such coverage to the City upon written request. In addition, throughout the Term of this Agreement, Subscriber shall also maintain sufficient property insurance to cover any Subscriber Equipment and that Subscriber shall look solely to its own insurance policies for any recovery of damages to Subscriber's Equipment. SECTION 12. DEFAULT AND TERMINATION. 12.1 Notice of Breach. In the event either party fails to perform the obligations set forth in this Agreement, the nondefaulting party must provide written notice of such default including reasonable detail of the default, and thirty (30) days to cure the default. 12.2 Remedies Available Upon Default. Upon the failure by the defaulting party to cure any default in accordance with Section 12.1, the nondefaulting party may do any or all of the following: A. Terminate this Agreement immediately upon written notice of its desire to terminate; B. Subject to Section 10.3 as applied to Subscriber, pursue any legal remedies it may have under this Agreement, as well as applicable law or principles of equity. 12.3 Survival of Remedies. Notwithstanding the foregoing, no termination of this Agreement shall affect the rights or obligations of any party hereto with respect to any payment hereunder for services rendered prior to the date of termination. 12.4 Obligation to Remove Subscriber Equipment Upon Termination. Upon termination, Subscriber will promptly disconnect and remove the Subscriber Equipment in a neat and orderly manner, and repair all damage directly caused by such removal at Subscriber's sole expense, excluding normal wear and tear. 12.5 Survival of Terms. Notwithstanding the provisions of this Section, the expiration or termination of this Agreement shall not affect the rights or obligations of either party hereto with respect to any payment for services rendered prior to the date of termination, or pursuant to the Sections of this 9 of 24 Packet Pg. 269 9.a Agreement entitled Indemnification, Limitation of Liability, Insurance and Taxes with respect to matters or claims arising or accruing prior to expiration or termination hereof, or pursuant to any other provisions of this Agreement that, by their sense and context, are intended to survive termination of this Agreement. SECTION 13. DISPUTE RESOLUTION. Any claim, dispute or controversy arising from or relating to this Agreement, which Y would otherwise require or allow resort to any court, shall be determined exclusively by final and binding arbitration as set forth in this Section. This Section shall apply to all claims and disputes, whether the disputes or claims arise in tort, contract, or pursuant to a statute, regulation, or ordinance now in existence or which may in the future be enacted or recognized. The aggrieved party must submit a written demand for arbitration to the other party within the time prescribed by the state or federal statute of limitations applicable to the claim asserted. Failure to submit and serve a written demand for arbitration within the applicable statutory period shall constitute a waiver and an absolute bar to the raising or prosecution of that claim in any form. The arbitration shall be conducted in accordance with the California Arbitration Act (as set forth in Title 9 of the California Code of Civil Procedure (sections 1280 et seq.) and the rules and procedures for employment disputes set forth by the Employment Arbitration Rules and Procedures (the T L "Rules") of the Judicial Arbitration and Mediation Services ("JAMS"). The arbitration shall take place before a single arbitrator selected in accordance with the Rules. The final decision of the U- r arbitrator shall be binding on the parties and shall not be subject to appellate review. Notwithstanding the foregoing, either party shall be entitled to obtain immediate equitable relief, such as by temporary restraining order or injunction, in Superior Court for the County of Los Angeles to prevent any violation of any covenants, conditions or provisions contained in this Agreement. Q SECTION 14. GOVERNING LAWS. Any action related to this Agreement will be governed the laws of the State of California without regard to choice of laws principles and exclusive venue for any action involving this Agreement must be in accordance with Section 13. SECTION 15. RELATIONSHIP OF THE PARTIES. The relationship between the parties shall not be that of partners, agents or joint venturers for one another, and nothing contained in this Agreement shall be deemed to constitute a partnership or agency agreement between them for any purposes, including, but not limited to federal income tax purposes. In performing any of their obligations hereunder, the parties shall be independent contractors or independent parties and shall discharge their contractual obligations at their own risk. Subscriber acknowledges that the City enters into and performs its obligations under this Agreement solely in its proprietary capacity, and that the City cannot and shall not in any manner guarantee the granting of any regulatory approvals or entitlements pertaining to this Agreement. 10 of 24 Packet Pg. 270 9.a SECTION 16. NOTICES. Any notice, demand or other correspondence required to be given in connection with or pursuant to this Agreement shall be in writing and shall be delivered by personal service or by United States certified or registered mail, with postage prepaid, or by facsimile addressed as follows: To the City: CITY OF SANTA CLARITA Attention: City Manager 23920 VALENCIA BLVD SANTA CLARITA, CA 91355 With a copy to (which copy shall not constitute notice): CITY OF SANTA CLARITA Attention: Technology Services Division - Manager 23920 VALENCIA BLVD SANTA CLARITA, CA 91355 CITY OF SANTA CLARITA Attention: City Attorney 23920 VALENCIA BLVD SANTA CLARITA, CA 91355 To THE MASTER'S UNIVERSITY: THE MASTER'S UNIVERSITY Attention: XXXXXX XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX Either party, by similar written notice, may change the address to which notices shall be sent. SECTION 17. WAIVER. No failure, forbearance, neglect, or delay by either party in regard to enforcing this Agreement or exercising any rights contained in this Agreement shall affect or limit such party's right to strictly enforce same, and shall not constitute or be implied as a waiver of any right to enforce same in the future. I I of 24 Packet Pg. 271 9.a SECTION 18. ASSIGNMENT. Subscriber shall not resell or redistribute access to the Lit Services in any manner, or assign or transfer its rights and obligations under this Agreement or any interest therein, directly or indirectly, by operation of law or otherwise, without the prior written consent of City which may be withheld in the City's sole discretion. Any attempt to do so without the City's consent shall be null and void and be a material default by Subscriber under this Agreement without a requirement for notice and a right to cure. Any assignee or transferee, shall acquire no right by reason of such attempted assignment or transfer. Notwithstanding the foregoing provisions to the contrary, Subscriber may, without City's consent but with notice to the City, assign this Agreement to any entity controlling, controlled by, or under common control with, Subscriber, or to a successor by merger or the purchaser of substantially all of the assets of Subscriber (each a M "Permitted Assignment"). Notwithstanding anything in this Agreement to the contrary, a Permitted Assignment will be subject to all the following conditions: (i) the assignee may use the Lit Services only for the uses permitted under this Agreement and for no other purpose whatsoever; (ii) Subscriber provides the City with notice as soon as reasonably practicable m before the effective date of such Permitted Assignment, stating the contact information for the proposed assignee and providing financial information establishing that the proposed assignee has the capital and fiscal qualifications greater than or equal to Subscriber's as it existed on the Effective Date; (iii) Subscriber is in good standing under this Agreement; (iv) the assignee shall co covenant to perform all Subscriber's obligations under this Agreement and Subscriber will be a� and remain liable jointly and severally with the assignee for all obligations to be performed by `- assignee; and (v) within 30 days after Subscriber receives a written demand from the City, —�- Subscriber shall reimburse the City for all reasonable and documented costs incurred by the City in connection with the Permitted Assignment. SECTION 19. FORCE MAJEURE. If either City, Subscriber or third party under Section 7.4 is delayed in or prevented from the performance of any act required under this Agreement by reason of acts of God, severe weather and storms, earthquakes or other natural occurrences, strikes or other labor unrest, power failures, nuclear or other civil or military emergencies, or acts of legislative, judicial, executive or administrative authorities, then the performance of that act will be excused for the period of the delay, and the period for the performance of that act will be extended for a period equivalent to the period of that delay; provided, however, that the party claiming such delay notifies the other party in writing of such cause of delay within ten (10) days of the commencement of the delay. Nothing in this section shall excuse Subscriber from the prompt payment of any installation costs, license and maintenance fees, taxes, or any other charges that are required of Subscriber under this Agreement. SECTION 20. MISCELLANEOUS. 20.1 The covenants, undertakings, and agreements set forth in this Agreement are solely for the benefit of and enforceable by the parties or their respective successors or permitted assigns. 12 of 24 Packet Pg. 272 9.a 20.2 Except as otherwise expressly provided, the rights and remedies set forth in this Agreement are in addition to, and cumulative of, all other rights and remedies at law or in equity. 20.3 The headings in this Agreement are strictly for convenience and do not amplify or limit any of the terms, provisions or conditions hereof. 20.4 In the event any term of this Agreement is held invalid, illegal or unenforceable, in whole or in part, neither the validity of the remaining part of such term nor the validity of the remaining terms of this Agreement will be in any way affected. 20.5 This Agreement may be amended only by a written instrument executed by the parties. 20.6 No failure to exercise and no delay in exercising, on the part of either party, any right, power or privilege hereunder will operate as a waiver, except as expressly provided herein. 20.7 This Agreement may be executed in multiple counterparts, all of which taken together constitute one and the same instrument 20.8 If any conflict or contradiction exists between the Agreement and an Addendum, the terms of the Addendum shall control. 20.9 The language of each part of this Agreement will be construed simply and according to its fair meaning, and this Agreement will never be construed either for or against either party. 20.10 This Agreement is not intended to (and shall not be construed to) give any third party, which includes without limitation Subscriber's customers or any other third -party beneficiaries, any right, title or interest in this Agreement or the real or personal property(ies) that may be affected by the same. SECTION 21. ACCEPTANCE OF FACSIMILE SIGNATURES. The Parties agree that agreements ancillary to this Agreement and related documents to be entered into in connection with this Agreement will be considered signed when the signature of a party is delivered by facsimile transmission. Such facsimile signature will be treated in all respects as having the same effect as an original signature. 13 of 24 Packet Pg. 273 9.a SECTION 22. ENTIRE AGREEMENT. This Agreement supersedes any and all other agreements and representations respecting the subject matter contained herein and contains all the terms, conditions and obligations of the parties with respect to this Agreement. This Agreement may only be amended or modified in a writing signed by both parties. If any provision of this Agreement is held to be invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect. SECTION 23. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written agreement. City's City Manager, or designee, may execute any such amendment on behalf of City. SECTION 24. CONFLICT OF INTEREST. Subscriber will comply with all applicable conflict of interest laws and regulations including, without limitation, City's Purchasing Standards of Conduct to the extent applicable to this Agreement. SECTION 25. RECITALS AND EXHIBITS. The Recitals set forth above and the following Exhibits are incorporated as a term of this Agreement: Exhibit "A" Lit Services Addendum Exhibit "B" Maintenance and Operations Specifications Exhibit "C" Insurance Requirements In the event of any conflict between or among the provisions of this Agreement or the Exhibits to the Agreement, such conflict shall be resolved in the following order of precedence: (i) Lit Services Addendum; (ii) the Agreement; and (iii) Insurance Requirements; and (iv) remaining Exhibits. 14 of 24 Packet Pg. 274 9.a IN WITNESS WHEREOF, each party has caused this Agreement to be executed on the date set above by its duly authorized representative. APPROVED AS TO FORM: Date: Joseph Montes City Attorney CITY OF SANTA CLARITA a municipal corporation Ken Striplin City Manager L Date: L m r m m m co a� U- r J THE MASTER'S UNIVERSITY By: Date: Name Title: 15 of 24 Packet Pg. 275 9.a EXHIBIT "A" LIT SERVICES ADDENDUM LIT SERVICES ADDENDUM — LIT FEE Demarcation Points Non -Recurring Monthly Recurring Annual Recurring Service Charge Charge Charge A -Location G-Location (NRC) (MRC) (ARC) 22421 Market St, 624 S Grand Ave, Lit Services Santa Clarita, CA 16 Floor, $10,000 $750 $9,000 2 Gbps 91321 Los Angeles, CA (12 x $750) 90017 NRC Total: $10,000 MRC Total: $750 ARC Total: $9,000 INITIAL 3 YEAR TERM AGREEMENT TOTALS Annual Fees Total Three (3) Year Annual Recurring Total Non- Recurring Three (3) Year Agreement Lit Services Fee Charge (ARC) Charge Total: (NRC) $9,000 $27,000 $10,000 $37,000 NOTES 1. Non -recurring charge shall consist of fees necessary to conduct all fiber splices, inspection, device procurement and configuration, and setup. 2. ARC = Monthly Recurring Charge (MRQ x 12 months. 3. Invoices shall be payable for MRC each month. 16 of 24 Packet Pg. 276 9.a EXHIBIT `B" MAINTENANCE AND OPERATIONS SPECIFICATIONS AND PROCEDURES 1. Defined Terms a. "Routine Maintenance" is all preventive maintenance activities, upgrades and repairs, including but not limited to those activities outlined in this Exhibit. b. "Non -Routine Maintenance" is all efforts and activities in response to an emergency circumstance which requires restoration. 2. General a. City shall provide a means for Subscriber to report trouble with Lit Services to trained and qualified personnel on a twenty-four (24) hours a day, (7) seven days a week basis, which may include a City contractor or consultant ("Technician"). Subscriber shall report trouble to the City at 661-255-4388. Helpdesk during normal business hours as defined herein and outside normal business hours in accordance with the escalation list "City Escalation List" described in this Section 2(c). The normal business hours shall mean and refer to the hours between 8:00 a.m. to 5:00 p.m. Pacific Standard Time, Mondays through Fridays, except for City observed holidays. The City shall dispatch a Technician along the Fiber Optic Network to handle and repair problems reported by Subscriber or otherwise discovered by the City. b. The Technician shall be available for dispatch twenty-four (24) hours a day, seven (7) days a week. City shall use best efforts to have its Technician at the site requiring a non - routine maintenance activity within four (4) hours from notification by Subscriber or other discovery by the City, whichever occurs first. In the event that the non -routine maintenance activity involves third party networks, response times and remediation will depend on the third party and the City provides no representation or warranty as to third party response times; provided, however, that the City will provide Subscriber notice as soon as reasonably practicable that the non -routine maintenance activity involves a third party and whether such party has responded to the issue. C. Subscriber shall utilize the City Escalation List provided by City, to report and seek immediate initial redress of exceptions noted in the performance of City in meeting maintenance service objectives. City may update the Operations Escalation List from time to time. CITY OF SANTA CLARITA Escalation Contact List Tier Contact Title Tel. # Email Address 1 City Helpdesk 661-255-4388 helpdesk@santa-clarita.com 2 City Fiber Team 661-286-4070 scfiber@santa-clarita.com 3 Information Services Manager 661-373-1616 bivesAsanta-clarita.com 17 of 24 Packet Pg. 277 9.a d. City shall take workmanlike care to prevent impairment to the signal continuity and performance of the Lit Services. The precautions to be taken by City shall include notification to Subscriber. In addition, City shall reasonably cooperate with Subscriber in sharing information and analyzing the disturbances regarding the Lit Services. e. City shall notify Subscriber at least seven (7) days prior to the date of any planned routine maintenance activity. In the event that a City -planned activity is canceled or delayed for any reason as previously notified, City shall notify Subscriber at City's earliest opportunity and will comply with the provisions of the previous sentence to reschedule any delayed activity. f. Routine maintenance work that is reasonably expected to produce any signal discontinuity must be coordinated between the parties, and performed in accordance with Scheduled Maintenance Procedures. "Scheduled Maintenance Procedures" or "SMP" means a pre -arranged period of time reserved for performing certain work on City's Fiber Optic Network that may impact communication services. Unless otherwise agreed by Subscriber, SMP will be completed after 10:00 p.m. and before 6:00 a.m., local time. Major Fiber Optic Network work such as fiber rolls, relocations, and hot cuts will also be scheduled utilizing SMP. g. Subscriber shall provide and maintain titles and telephone numbers of primary and secondary contact personnel "The Master's University" who are trained in trouble -shooting network problems. These personnel will diagnose potential problems with Subscriber's equipment and determine there are no problems with such equipment prior to making a Non - Routine Maintenance request to City. THE MASTER's UNIVERSITY Escalation Contact List Tier Contact Title Tel. # Email Address Brian Pam — Director of IT 1 Operations 661-362-2345 b am masters.edu Gianna Bisares — Director of IT Service Management and 2 Security 661-362-2206 bisares masters.edu Paul Sedy — Chief 3 Information Officer 661-362-2340 sed masters.edu 3. Fiber Optic Network. City shall maintain the Fiber Optic Network in good and operable condition and shall repair the fiber in workmanlike manner to the extent necessary to provide Lit Services. b. City shall perform appropriate routine maintenance on the Fiber Optic Network in accordance with City's then current preventative maintenance procedures to the 18 of 24 Packet Pg. 278 9.a extent necessary to provide Lit Services. City's maintenance procedures shall not substantially deviate from industry practice. City responsibility ends at demarcation point. Testing would take place from demarcation point A to demarcation location Z. 4. Restoration r a. When restoring a cut fiber, the parties agree to work together to restore all traffic as quickly as possible. City, upon arriving on the site of the cut, shall determine the best course of action to be taken to restore the fiber and shall begin restoration efforts as required in the Agreement. b. It will be the responsibility of City and Subscriber to report to one another respectively of any known environmental hazards that would restrict or jeopardize any maintenance work activities in shelters or right of way areas of operations. C. Upon notification of interruption of fiber service, disrepair, impairment or other co need for repair or restoration of the Lit Services, City shall pursue commercially reasonable efforts to mobilize technicians to achieve necessary repair or restoration, including, but without U_ limitation, to have maintenance personnel at the affected site within four (4) hours after receipt of such notice with the required restoration material and equipment. If Subscriber's use of the Lit Services is interrupted due to the occurrence of a Force Majeure event, repairs and restoration r will be made as expeditiously as possible under the circumstances. d. For purposes of this section, "commercially reasonable efforts" means activities and performances consistent with prudent utility practice, existing contract provisions for City hourly employees, preserving Fiber Optic Network integrity, and response times that do not jeopardize the health and safety of the employees and agents of City and Subscriber. e. City maintenance employees or contractors shall be responsible for correcting or repairing fiber discontinuity or damage, including, but not limited to, the non -routine repair necessary to provide the Lit Services. City shall use commercially reasonable efforts to resume Lit Services after traffic -affecting discontinuity as soon as possible after learning of the discontinuity or the service affecting situation. 5. Network Availability a. City will, to the best of its ability, provide uninterrupted service to Subscriber. b. Network availability of Lit services will be available to Subscriber 99.9% of the available time each month. 19 of 24 Packet Pg. 279 9.a 6. c. Network availability is the number of minutes in a calendar month during which the service is available to exchange data between the two (2) demares and shall be determined as follows: (Total Minutes in Calendar month — Total Minutes of Non -Availability) / Total Minutes in Calendar Month d. Total Minutes in Calendar Month means 30 days x 24 hours x 60 minutes = 43,200 minutes, which equates to 100% Availability L e. Total Minutes of Non -Availability means the total of all minutes of network non - availability in a calendar month. This shall be measured from the time Subscriber's report of service trouble is determined to constitute a service outage until the time; service is restored. a� Credit Allowances a. Service Outage Credit - If Lit Service suffers an outage exhibiting less than 99.9% co Network Availability (Service Outage), Subscriber will be entitled to a credit as (- CD follows, calculated as a percentage of MRC, which is simply ARC / 12 months; and is .0 U_ subject to the requirements and limitations of this agreement: J Network Availability in a Month From To Service Outage Credit Amount 100% 99.9% 0% of the MRC <99.9% 99.7% 5% of the MRC <99.7% 99.2% 10% of the MRC <99.2% 98.2% 15% of the MRC <98.2% 0% 4 25% of the MRC b. Subscriber's total service outage credit(s) in any one (1) month will not exceed one (1) month's MRC and no credits will be applied to future MRC's. Subscriber must notify City and request credit within thirty (30) days after the Service Outage, or will waive its right to such credit allowance for such event. Additionally, to be eligible for service outage credits, Subscriber must be in good standing with the City and current in all of its obligations. Chronic Trouble (as defined below) Subscriber may disconnect Lit Services with thirty (30) days' prior written notice without incurring early termination fees and is released from all contract liability. "Chronic Trouble" is defined as: (i) a single 20 of 24 Packet Pg. 280 9.a service outage in excess of twenty-four (24) hours; or (ii) more than four (4) outages of less than 98.2% Network Availability in any consecutive thirty (30) day period. d. Events Excepted from Service Outage Credit - Subscriber shall not receive any Service Outage Credit for any Service Outage, arising from or caused, in whole or in part, by any of the following events: i. Subscriber's (including its agents, contractors and vendors) acts or omissions; ii. Failure on the part of Subscriber's equipment, iii. Failure of electrical power at the Newhall Community Center iv. City's inability to obtain access required to remedy a defect due to any safety restrictions; V. Scheduled, routine maintenance periods; vi. Scheduled upgrade of Lit Services; vii. Third -party fiber problems viii. Force Majeure Event; or ix. Disconnection or suspension of Lit Services by City pursuant to a right provided under this Agreement. 21 of 24 Packet Pg. 281 9.a EXHIBIT "C" INSURANCE REQUIREMENTS Contractor's Insurance Prior to commencing work, the Contractor shall procure and maintain at Contractor's own cost and expense for the duration of the Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work or services hereunder by the Contractor, his agents, representatives, employees, or subcontractors. The cost of such insurance shall be included in Contractor's bid. Without in any way affecting the indemnity provided, the Contractor shall secure before commencement of the work and throughout the contract the following types and amounts ofinsurance: Minimum Limits of Insurance Contractor shall obtain insurance of the types and in the amounts described below: 1) Commercial General Liability Insurance Contractor shall maintain commercial general liability (CGL) with a limit of not less than $1,000,000 each occurrence/$2,000,000 in the annual aggregate. 2) Business Auto and Umbrella Liability Insurance Contractor shall maintain business auto liability with a limit of not less than $1,000,000 each accident. 3) Workers' Compensation and Employer's Liability Insurance Contractor shall maintain workers' compensation insurance as required by the State of California and Employer's Liability Insurance in the amount of $1,000,000 per accident for bodily injury or disease. Minimum Scope of Insurance 1) CGL insurance shall be written on Insurance Services Office form CG 00 01 (or a substitute form providing equivalent coverage) and shall cover liability arising from premises, operations, independent contractors, products -completed operations, personal injury and advertising injury liability assumed under an insured contract (including the tort liability of another assumed in a business contract), and explosion, collapse and underground hazards. 2) Business Auto Insurance shall cover liability arising out of any auto (including owned, hired, and non -owned autos). Coverage shall be written on Insurance 22 of 24 Packet Pg. 282 9.a Services Office form CA 00 01, CA 00 05, CA 00 12, CA 00 20, or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage equivalent to that provided in the 1990 and later editions of CA 00 01. Deductibles and Self -Insured Retentions Any deductibles or self -insured retentions must be declared to the CITY OF SANTA CLARITA. Contractor shall guarantee that their deductibles do not limit their liability (if any) under this agreement. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1) CITY OF SANTA CLARITA, its officers, officials, employees, and volunteers are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired, or borrowed by or on behalf of the contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. Under the CGL policy, using the Insurance Services Office additional insured endorsement form CG 20 10 or a substitute providing equivalent coverage, and under the commercial umbrella, if any. City and other additional insureds mentioned in this paragraph shall not, by reason of their inclusion as additional insureds, become liable for any payment of premiums to carriers for such coverage. 2) For any claims related to this project, the Contractor's insurance coverage shall be primary as respects the CITY OF SANTA CLARITA, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the CITY OF SANTA CLARITA, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3) Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under subdivision (b) of Section 2782 of the Civil Code. General Liability, Workers' Compensation and Employer's Liability The insurer shall agree to waive all rights of subrogation against the CITY OF SANTA CLARITA, its officers, officials, employees, and volunteers for losses arising from activities and operations of Contractor in the performance of services under the contract. 23 of 24 Packet Pg. 283 9.a All Coverages 1) Each insurance required by this clause shall be endorsed to state that coverage shall not be canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given (add user department and specify specific individual and title) to the City. 2) If Contractor, for any reason, fails to maintain insurance coverage which is required pursuant to this Contract, the same shall be deemed a material breach of contract. City, at its sole option, may terminate this Contract and obtain damages from the Contractor resulting from said breach. Alternatively, City may purchase such coverage (but has no special obligation to do so), and without further notice to the Contractor, City may deduct from sums due to the Contractor any premium costs advanced by the City for such insurance. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:6 unless otherwise approved by the City's Risk Manager. Verification of Coverage Contractor shall furnish the CITY OF SANTA CLARITA with original certificates and amendatory endorsements effecting coverage required by this section. The certificates and endorsements for each policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. The certificates and endorsements should be on forms approved by the CITY OF SANTA CLARITA. All certificates and endorsements are to be received and approved by the CITY OF SANTA CLARITA before work commences. The CITY OF SANTA CLARITA reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time. Subcontractors Contractor shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. Contractor will have the right to select the contractors/subcontractors who will perform work for Contractor under the Agreement, subject to the prior approval of City, which approval will not be unreasonably withheld. 24 of 24 Packet Pg. 284