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Resolution No. 83851 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Ir:A 19 20 21 22 23 24 25 26 27 28 r r RESOLUTION NO. 8385 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON. APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT NO. 02 OPTICAL FIBER USE AGREEMENT AND SHORT FORM IRU-02.1 INDEFEASIBLE RIGHT OF USE AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND CLOUGHERTY PACKING COMPANY FOR PILOT FIBER OPTIC PROGRAM WHEREAS, the City of Vernon ("City") has installed a fiber- optic cable network around the perimeter of the City and has studied the feasibility of providing excess unactiviated or dark fibers to businesses in the City to enable such businesses to have access to voice, data and/or video services; and WHEREAS, the City has determined that taking advantage of the existing fiber-optic network provides businesses in the City with access to enhanced communication services; and WHEREAS, the City has developed a pilot program to provide businesses with building -to -building fiber-optic connections; and WHEREAS, the City and Clougherty Packing Company ("Clougherty") have negotiated agreements to provide Clougherty with the use of four new fiber optic laterals to connect two buildings of Clougherty with strands of the City's dark fiber; and WHEREAS, Clougherty has requested the interconnection of three additional buildings, for a total of five buildings, and the City and Clougherty are in the process of conducting an advanced engineering study to interconnect the three additional buildings; and WHEREAS, by letter dated February 11, 2004, Bruce V. Malkenhorst, the City Administrator/City Clerk, has recommended that an Optical Fiber Use Agreement and Short Form Indefeasible Right of Use Agreement be approved and executed with Clougherty. tr t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Optical Fiber Use Agreement and Short Form Indefeasible Right of Use Agreement with Clougherty Packing Company, a copy which is attached hereto as Exhibit "A" and made a part hereof. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor and the City Clerk to execute said Agreement for, and on behalf of, the City of Vernon. SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or his designee, to send one fully executed Agreement to: Clougherty Packing Company Attn. James B. Stephenseon, Vice President, Finance 3049 Vernon Avenue Vernon, CA 90058 SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 18th day of February, 2004. ATTEST: BRUCE V. MALKENHORST, City Clerk r CLEONIS C. MALBURG, M yor - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 8385, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, February 18, 2004, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, City Clerk - 3 - EXHIBIT AGREEMENT NO. 02 OPTICAL FIBER USE AGREEMENT By and Between THE CITY OF VERNON and CLOUGHERTY PACKING COMPANY v a' TABLE OF CONTENTS Page 1. DEFINITIONS:...........................................................:...........................................................1 2. TERM:......................................................................................................................................2 3. TAXES:.............................................................................................................................2 4. MAINTENANCE: .................................................................................................................. 2 5. FREEDOM OF ACTION: ....................................................................................................... 3 6. COMPLIANCE WITH LAWS:.............................................................................................. 4 7. RELOCATION OF THE FACILITIES:................................................................................. 4 8. EVENTS OF TERMINATION: .............................................................................................. 4 9. ADMINISTRATION OF THIS AGREEMENT:................................................................... 7 10. INDEMNIFICATION: ....................................................................................................... 7 11. INSURANCE: .............................................................................................. ........................... 8 12. DEFAULT:............................................................................................................................8 13. FORCE NWEURE:................................................................................... ......................... 9 14. ASSIGNMENT: ........................................................................................... ......................... 10 15. WAIVER: ............................................................................................................................. 10 16. RELATIONSHIP NOT A PARTNERSHIP OR AN AGENCY: ......................................... 10 17. NO THIRD -PARTY BENEFICIARIES:............................................................................ 11 18. NOTICES:.............................................................................................................................11 19. GOVERNING LAW: ............................................................................................................ 11 20. FORUM SELECTION: ........................................................................................................ 11 21. USE OF THE CUSTOMER SYSTEM: ............................................................................... 11 22. PLURALS:............................................................................................................................12 23. PARTS OF AGREEMENT:................................................................................................ 12 24. COUNTERPARTS:.............................................................................................................12 25. ACCEPTANCE TESTING: .................................................................................................. 12 26. BILLING AND PAYMENT:.............................................................................................. 12 27. TITLE:.................................................................................................................................13 28. ENTIRE AGREEMENT:..................................................................................................... 13 29. RECITALS:.........................................................................................................................13 30. SEVERABILITY:................................................................................................................13 EXHIBIT A: Short Form IRU Agreement EXHIBIT B: Trouble Reporting Procedure EXHIBIT C: Insurance (i) AGREEMENT NO. 02 OPTICAL FIBER USE AGREEMENT THIS OPTICAL FIBER USE AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into and executed in duplicate originals, either copy of which may be considered and used as the original hereof for all purposes, as of the day of , 2004, between the THE CITY OF VERNON (hereinafter referred to as the "CITY"), having its offices at 4305 Santa Fe Avenue, Vernon, California 90058, and CLOUGHERTY PACKING COMPANY (hereinafter referred to as "CUSTOMER"), a corporation, having an office at 3049 Vernon Avenue, Vernon, California 90058, and which are sometimes referred to individually as "Party" and collectively as "Parties." RECITALS WHEREAS, the CITY has an existing optical fiber cable system or "Cable System" (as hereinafter defined) throughout the City of Vernon, State of California; and WHEREAS, the CITY has excess unactivated or dark fibers in the Cable System and is willing, from time to time, to provide such dark fibers to CUSTOMER and to grant CUSTOMER an Indefeasible Right of Use or IRU (as hereinafter defined) in and to such dark fibers for the purpose of providing voice, data, and/or video services; and WHEREAS, in connection with the grant to CUSTOMER of an IRU in and to such dark fibers, the CITY is willing to allow CUSTOMER to use certain other specified CITY -owned property, including, but not limited to, the CITY's Cable System; and WHEREAS, the CITY will provide fibers in the Cable System to CUSTOMER in connection with undertaking one or more projects; and WHEREAS, the Parties have agreed to enter into this Agreement which embodies the mutual covenants and agreements for the long term relationship between the Parties hereto and for each such project; and WHEREAS, the Parties have agreed to enter into separate Short Form IRU Agreement(s) as hereinafter defined. NOW, THEREFORE, for and in consideration of the mutual 'covenants and agreements set forth in this Agreement, the Parties hereto do hereby agree as follows: 1. DEFINITIONS: 1.1 The following terms, whether in the singular or in the plural, when in this Agreement and initially capitalized, shall be the meaning specified: a. Agreement: This Optical Fiber Use Agreement. b. Short Form IRU Agreement: Any number of short form agreements between the CITY and CUSTOMER which identify the specific optical fiber strands and facilities to be provided to CUSTOMER and which set forth the associated fees, terms and conditions for CUSTOMER'S use of such optical fiber strands and facilities. When executed, each Short Form IRU Agreement shall be attached hereto as Exhibit "A" and made a part hereof. C. CUSTOMER System: The optical fiber strands, innerduct, conduit, building entrance facilities and associated appurtenances, to be provided to CUSTOMER under the terms of this Agreement and the applicable Short Form IRU Agreement(s) and the associated rights to access such fiber strands at demarcation points as specified in the applicable Short Form IRU Agreement(s). d. Cable System: All hardware, including but not limited to, fiber cable, poles, pole attached hardware, conduit, innerduct, enclosures, building and facilities owned and operated by the CITY for its use. 2. TERM: 2.1 Unless terminated sooner in accordance with the terms and conditions of this Agreement, the duration of this Agreement is three (3) years (hereinafter referred to as the "Term"), commencing on the date of this Agreement (hereinafter referred to as the "Commencement Date"). The duration of each Short Form IRU Agreement, and any renewal or extension thereof, shall be set forth in the applicable Short Form IRU Agreement for each portion of the CUSTOMER System. With the written mutual consent of the two parties, this Agreement can be renewed for two additional three (3) years terms. 3. TAXES: 3.1 The CITY shall be responsible for all taxes and fees based on the physical location of the Cable System and/or the construction thereof in, on, across, along or through public or private roads, highways or rights -of -way. 3.2 The CUSTOMER shall be responsible for paying all taxes, and franchise, license and permit fees (hereinafter collectively referred to as "Tames") assessed against it for the conduct of its business and for its use of the CUSTOMERSystem during the Term of this Agreement. 4. MAINTENANCE: 4.1 All scheduled and emergency maintenance to and repair of the Cable System, and all facilities through which the Cable System passes, shall be performed by or N under the direction of the CITY with reasonable notice to CUSTOMER at CITY's sole cost. Except as otherwise provided in the Short Form IRU Agreement, CUSTOMER is prohibited from performing any maintenance or repair on the Cable System or CUSTOMER System. CUSTOMER shall have the right to have an employee or representative available to assist the CITY in any maintenance or repair of the CUSTOMER System. The CITY shall maintain the CUSTOMER System in accordance with the technical specifications (hereinafter referred to as the "Specifications") attached to and made a part of the Short Form IRU Agreement as its Schedule-D. a. Emergency Maintenance: The CITY shall respond to any failure, interruption or impairment in the operation of the CUSTOMER System within four (4) hours after receiving a report of any such failure, interruption or impairment. The CITY shall use its best efforts to perform emergency maintenance and repair to correct any failure, interruption or impairment in the operation of the CUSTOMER System when reported by CUSTOMER in accordance with the procedures set forth in Exhibit `B" attached hereto and made a part hereof. b. Scheduled Maintenance: The CITY from time to time will schedule and perform periodic maintenance to protect the integrity of the Cable System and/or CUSTOMER System to maintain dark fibers within Specification at City's sole cost. The City will perform changes or modifications to the Cable System and/or CUSTOMER System at CUSTOMER'S request. CUSTOMER may request Scheduled Maintenance by delivering to the CITY a statement of work detailing the service CUSTOMER desires to have performed, including the time schedule for such services. Upon receipt of such statement of work, the CITY will provide an estimate of the price and timing of such Scheduled Maintenance. Following CUSTOMER's acceptance of such estimate, the CITY will schedule and perform such Scheduled Maintenance. The CITY will perform CUSTOMER requested Scheduled Maintenance on a time -and -materials basis at the standard CITY rates in effect at the time services are performed. CITY rates in effect will be those identified in Schedule -A of the most recent Short Form IRU Agreement. Such rates are subject to change at a rate not to exceed the cumulative CPI rates of previous years since the last rate change. 5. FREEDOM OF ACTION: Nothing in this Agreement shall restrict the CITY's right to conduct its business and it may, without limitation, construct and install additional optical fiber cable systems for any purpose whatsoever. 3 6. COMPLIANCE WITH LAWS: CUSTOMER shall comply with all applicable federal, state, and local laws, ordinances and regulations pertaining to this Agreement. 7. RELOCATION OF THE FACILITIES: CUSTOMER recognizes that, from time to time, the CITY may elect or be required by parties other than the CUSTOMER to relocate the Cable System and/or the CUSTOMER System, or a portion thereof The CITY shall be solely.., responsible for all costs incurred in relocating the Cable System and/or the CUSTOMER System and shall use its best efforts to do so in a manner that will not cause any material interruption in CUSTOMER'S use thereof. The CITY agrees to give CUSTOMER at least thirty (30) days prior written notice of any relocation plans. 8. EVENTS OF TERMINATION: 8.1 Condemnation a. If at any time during the Term of this Agreement, all or any significant portion of the Cable System or the CUSTOMER System shall be taken for any public or quasi publicpurpose by any lawful power or authority by the exercise of the right of condemnation or eminent domain, either party may elect to terminate this Agreement and/or the affected Short Form IRU Agreement upon giving the other parry sixty (60) days prior written notice. In the event this Agreement and/or the affected Short Form IRU Agreement is terminated in accordance with this section, both parties shall be entitled to participate in any condemnation proceedings to seek to obtain compensation via separate awards for the economic value of their respective interest in the Cable System or CUSTOMER System. b. Upon its receipt of a formal notice of condemnation', or taking, the CITY shall notify CUSTOMER immediately of any condemnation proceeding filed against the Cable System, including the CUSTOMER System. The CITY shall also notify CUSTOMER of any similar threatened condemnation proceeding and agrees not to sell the CUSTOMER System to such acquiring agency, or other party in lieu of condemnation without prior written notice to CUSTOMER. 8.2 Damage or Destruction of the Cable System or the CUSTOMER System: If at any time during the Term of this Agreement and/or specific Short Form IRU Agreement all or any significant portion of the Cable System and/or CUSTOMER System provided by specific Short Form IRU 4 Agreement shall be made inoperable and beyond feasiblerepair, a party may terminate the specific Short Form IRU Agreement upon giving (30) days written notice to the other Party. In the event this Agreement and/or specific Short Form IRU Agreement is terminated under this section, both Parties shall be entitled to seek to recover the economic value of their respective interest in the Cable System or the CUSTOMER System (1) under any insurance policy carried by either Party, or (2) seek recovery from any third party which may be legally responsible for causing such damage or destruction. 8.3 Catastrophic Outage: If at any time during the Term of this Agreement, the ability of the Cable System and/or CUSTOMER System, provided by specific Short Form IRU Agreement, to transmit voice, data, and/or video services is interrupted or degraded below the specifications in the Short Form IRU Agreement Schedule-D by (1) a force majeure event that lasts for thirty (30) consecutive days, or (2) a non -force majeure event that lasts for five (5) consecutive days, then either Party may elect to terminate the specific Short Form IRU Agreement upon giving thirty (30) days written notice to the other Party. In the case of non -force majeure event, each Party shall be entitled to seek legal remedies that may be available. 8.4- Relocation: If the CITY, in accordance with Section 7, after using its best efforts to undertake such relocation, cannot relocate the CUSTOMER System or affected portion thereof, CUSTOMER may terminate the applicable Short Form IRU Agreement upon giving at least thirty (30) days written notice to the CITY. 8.5 Obsolete Cable System: If at any time during the Term of this Agreement, CUSTOMER can demonstrate to the CITY's satisfactionthat the Cable System and/or any portion or portions thereof have become technically obsolete, the CUSTOMER shall have the right to elect to terminate this Agreement or the affected Short Form IRU Agreement by giving at least thirty (30) days written notice to the CITY. 8.6 Poor Service: If at any time during the Term of this Agreement or a specific Short Form IRU Agreement, CUSTOMER can demonstrate to the CITY's satisfaction the Cable System and/or any portions thereof, fail to perform in accordance with the specifications set forth in',Schedule-D of the affected Short Form IRU Agreement over a period of at least three (3) consecutive months, and the CITY's efforts during this period have failed to restore the Cable System to the required Specifications, then the CUSTOMER has the right to terminate this Agreement or the affected Short Form IRU Agreements by giving at least thirty (30) days written notice to the CITY. Notwithstanding any provision contained in this Agreement to the contrary, the CITY shall have the right to terminate any Short Form IRU 5 Agreement upon three (3) months written notice to CUSTOMER if the CUSTOMER System provided by such Short Form IRU Agreement is needed in connection with the CITY's telecommunications needs related to CITY business. At the time of such notice of termination, the CITY shall waive the remaining annual payment of the Short Form IRU Agreement that the CITY elects to terminate. If the CITY terminates, it will use its best efforts to relocate CUSTOMER System or any segment under the affected Short Form IRU Agreement, and if a satisfactory relocation reroute can be identified, CUSTOMER and CITY shall enter into a new Short Form IRU Agreement. 8.7 CUSTOMER Sole Discretion: Notwithstanding any provision contained in this Agreement to the contrary, at any time after the effective date of this Agreement, CUSTOMER shall have the option, in its sole discretion and for any reason, to terminate this Agreement or any Short Form IRU Agreement upon three (3) months prior written notice to the CITY. 8.8 Termination Settlement Charges: a. No termination, as provided for in the Agreement, shall be effective until the CUSTOMER has paid all required sums due under any affected Short Form IRU Agreement up to and including the effective date of termination and Termination Settlement Charges, if any, as defined in Sections 8.8.b, 8.8.c and 8.8.d. b. In the event CUSTOMER elects to terminate this Agreement and/or any Short Form IRU Agreement under the terms of the provisions of Section 8.7, the annual payments shall be recalculated to reflect the termination date and, therefore, the new Term of the Agreement. The recalculated annual payments shall use the appropriate discount or premium and shall be retroactive to all CUSTOMER IRU payments from commencement to the termination of each Short Form IRU Agreement. The cumulated difference between the annual IRU payments made by the CUSTOMER to the CITY under the CUSTOMER's originally selected Term of the Agreement (including any discounts) and the recalculated payments applicable for the effective Term of the Agreement shall hereinafter be known as "Termination Adjustment Charge." The Termination Adjustment Charge shall apply as part of the Termination Settlement Charges. C. Furthermore, in the event CUSTOMER elects to terminate any Short Form IRU Agreement under the terms of the provisions of Section 8.7, a termination charge of half the remaining payments due if the Short Form IRU Agreement were to reach its full Term shall apply as part of the Termination Settlement Charges. rol d. The Termination Settlement Charges shall be calculated as follows: TSC = TAC + %2 (remaining $ of original Short Form IRU Agreement). e. CITY shall transfer the ownership of the demarcation patch panels at end of the initial Term. The CITY shall remove CUSTOMER system from CITY cable system by physically removing optical fiber cables from the splicing enclosure on public rights -of -way to the demarcation point leaving the patch panel in place at CUSTOMER's request. 9. ADMINISTRATION OF THIS AGREEMENT: 9.1 Within thirty (30) calendar days after the effective date of this Agreement, CUSTOMER and the City Administrator shall designate, by written notice to the other, a representative who is authorized to act in the respective Party's behalf with respect to those matters delegated to the authorized representatives. Each Party may designate an alternate representative with full authority to act in the absence of the authorized representative. Each Party shall have the right to change its representative or alternate by written notice. 9.2 The authorized representatives shall have the following responsibilities, among others: a. Perform those functions and duties assigned to them in this Agreement. b. Review and attempt to resolve any disputes between the Parties arising under this Agreement. C. Arrange for the development and completion of procedures to implement the provisions of this Agreement. 9.3 Any expenses incurred by the authorized representative in connection with his/her duties shall be paid by the Party he/she represents. 9.4 The authorized representative shall have no authority to modify this Agreement. 10. INDEMNIFICATION: 10.1 The CUSTOMER undertakes and agrees to indemnify, defend and hold harmless the CITY, the Department of Community Services & Water, the City Council of the CITY, and all of its officers and employees, and, at the option of the CITY, defend the CITY, and any and all of its Boards, officers, agents, representatives, employees, assigns and successors in 7 interest from and against any and all suits and causes of action, claims, charges, damages, demands, judgments, civil fines and penalties, or losses or any kind or nature whatsoever, for death, bodily injury or personal injury to any person, including CUSTOMER's employees and agents, or damage or destruction to any property of either party hereto, or third persons in any manner arising by reason of the negligent acts, errors, omissions or willful misconduct incident to the performance of this Agreement on the part of the CUSTOMER, or the CUSTOMER's officers, agents, employees or subcontractors of any tier, except for the active negligence or willful misconduct of the CITY, its officers, agents, representatives or employees. 10.2 Except for any payment due to the CITY in accordance with Section 25 of this Agreement, neither party shall be liable for any indirect, special, punitive or consequential damages, (including, but not limited to, any claim for loss of services) arising under this Agreement or from any breach or partial breach of the provisions of this Agreement or arising out of any act or omission hereto, its employees, contractors and/or agents. The CUSTOMER shall include in any agreement with any third party relating to the use of the Cable System or the CUSTOMER System a waiver by such third party of any claim for indirect, special, punitive or consequential damages (including, but not limited to, any claim from any CUSTOMER for loss of services) arising out of or as a result of any act or omission by either party hereto, its employees, contractors and/or agents. The parties' respective obligations to include such a provision waiving indirect, special, punitive or consequential damages in any agreement with any third party shall be subject to any and all regulatory or other legal limitations, as well as applicable tariffs. 11. INSURANCE: CUSTOMER agrees to provide insurance in the amounts and forms specified in Exhibit " C," which is attached hereto and made a part hereof by reference. CUSTOMER shall submit to the CITY documentation indicating compliance with these minimum requirements no less than one (1) day prior to the beginning of performance under this Agreement. 12. DEFAULT: 12.1 CUSTOMER shall not be in default under this Agreement or in breach of any provision hereof unless and until the CITY shall have given CUSTOMER written notice of a breach and CUSTOMER shall have failed to cure the same within thirty (30) days after receipt of a notice, other than any default in payment which must be cured within fifteen (15) business days after receipt of a notice; provided, however, that where such non -monetary breach cannot reasonably be cured within such thirty (30) H., day period, if CUSTOMER shall proceed promptly to cure the same and prosecute such curing with due diligence, the time for curing such breach shall be extended for a reasonable period of time to complete such curing. Upon the failure by CUSTOMER to timely cure any such breach after notice thereof from the CITY, the CITY shall have the right to take such action as it may determine, in its sole discretion, to be necessary to cure the breach or terminate this Agreement or pursue such other remedies as may be provided by law or in equity. 12.2 The CITY shall not be in default under this Agreement or in breach of any provision hereof unless and until CUSTOMER shall have given the CITY written notice of such breach and the CITY shall have failed to cure the same within thirty (30) days after receipt of such notice; provided, however, that where such breach cannot reasonably be cured within such thirty (30) day period, if the CITY shall proceed promptly to cure the same and prosecute such curing with due diligence, the time for curing such breach shall be extended fora reasonable period of time to complete such curing. Upon the failure by the CITY to timely cure any such breach after notice thereof from CUSTOMER, CUSTOMER shall have the right to take such action as it may determine, in its sole discretion, to be necessary to cure the breach or terminate this Agreement or pursue such other remedies as may be provided at law or in equity. 12.3 If CUSTOMER or the CITY, as the case may be, shall file a petition in bankruptcy or for reorganization or for an arrangement pursuant to any present or future federal or state bankruptcy law or under any similar federal or state law, or shall be adjudicated as bankrupt or insolvent, or shall make a general assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts generally as they become due, or if any involuntary petition proposing the adjudication of CUSTOMER or the CITY, as the case may be, as a bankrupt or its reorganization under any present or future federal or state bankruptcy law or any similar federal or state law shall be filed in any court and such petition shall not be discharged or denied within ninety (90) days after the filing thereof, or if a receiver, trustee or liquidator of CUSTOMER or the CITY, as the case may be, of all or substantially all of the assets of CUSTOMER or the CITY, as the case may be, and shall consent to or acquiesce in such appointment, then the other party hereto may, at its sole option, immediately terminate this Agreement upon written notice. 13. FORCE MAJEURE: Neither party shall be considered to be in default in any of its obligations under this Agreement when a failure of performance shall be due to an uncontrollable force. The terms "uncontrollable force" shall mean any cause beyond the control of the party affected, including, but not restricted to, flood, earthquake, storm, fire, lightening, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor material 0 shortage, sabotage, federal, state, or municipal action, statute, ordinance, or regulation, embargoes of the United States Government or any other government, which by exercise of due diligence such party could not reasonably have been expected to avoid and by exercise of due diligence has been unable to overcome. Either party rendered unable to fulfill any of its obligations under this Agreement by reason of an uncontrollable force, shall give written notice within five (5) business days of such fact to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch. 14. ASSIGNMENT: 14.1 This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors or assigns; provided, however, that no assignment hereof or sublease, assignment or licensing (hereinafter collectively referred to as a "Transfer") of any rights or obligations hereunder shall be valid for any purpose without the prior written consent of each party hereto, provided, further, however, that without such consent, CUSTOMER shall have the right to assign this Agreement to any parent, subsidiary or affiliate of CUSTOMER or to any person, firm or corporation which shall control, be under the control of, or be under common control with CUSTOMER or to any person, firm or corporation into or with which CUSTOMER may be merged or consolidated or which purchases all or substantially all of the assets or stock of CUSTOMER. 14.2 In the event of any assignment or Transfer by either party undertaken pursuant to Section 14.1 herein, the assigning or transferring party shall remain liable for all its obligations under this Agreement, unless: (a) the other party consents to release by written instrument, the assigning or transferring party from such obligations, and (b) the assignee or transferee shall have affirmatively assumed in writing all of the obligations of the assigning or transferring party under this Agreement. 15. WAIVER: Any waiver at any time by either Party of its rights with respect to a default under this Agreement, or with respect to any other matters arising in connection with this Agreement, shall not be deemed a waiver with respect to subsequent default or other matter. 16. RELATIONSHIP NOT A PARTNERSHIP OR AN AGENCY: Except where specifically stated in this Agreement to be otherwise, the duties, obligations, and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall be construed to create an association, trust, partnership, or joint venture or impose a trust or partnership duty, 10 obligation, or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. 17. NO THIRD -PARTY BENEFICIARIES: This Agreement shall not be construed to create rights in, or to grant remedies to, any third party (except as specified herein) as a beneficiary to this Agreement or of any duty, obligation or undertaking established herein. 18. NOTICES: Any written notice under this agreement shall be deemed properly given if sent by registered or certified snail, postage prepaid, or by nationally recognized overnight delivery service or by facsimile to the address specified below, unless otherwise provided for in this Agreement: CITY: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST CITY ADMINISTRATOR 4305 SANTA FE AVENUE VERNON, CA 90058-0805 CUSTOMER: 19. GOVERNING LAW: The validity, interpretation and performance of this Agreement shall be controlled and construed under the laws of the State of California. 20. FORUM SELECTION: Any action brought relating to this Agreement shall be brought and held exclusively in a State Court in the County of Los Angeles, California. 21. USE OF THE CUSTOMER SYSTEM: CUSTOMER shall have exclusive control over its provisioning of voice, data, and/or other video services and other services including, without limitation, CUSTOMER premise and nodal electronics, electronics installation, configuration, operation, maintenance and monitoring. 11 22. PLURALS: In construction of this Agreement, words used in the singular shall include the plural and the plural the singular, and/or is used in the inclusive sense, in all cases where such meanings would be appropriate. 23. PARTS OF AGREEMENT: All Short Form IRU Agreements, attachments, exhibits and appendices attached hereto shall be deemed a part of this Agreement, and shall have full force and effect. Short Form IRU Agreements shall be identified and named with a numeric designator by chronological date of execution, e.g., -01, Short Form IRU Agreement, and attached chronologically following this Agreement and its exhibits and made a part of this Agreement. 24. COUNTERPARTS: This Agreement may be executed in any number of counterparts, each and all of which shall be deemed for all purposes to be one agreement. However, this Agreement shall not become effective unless and until all Parties hereto have executed either the original or a counterpart of the Agreement. 25. ACCEPTANCE TESTING: The CITY will submit an acceptance testing plan to CUSTOMER for approval within thirty (30) days of signing any Short Form IRU Agreement. CUSTOMER will review and provide comments within twenty (20) days of receipt. The CITY and CUSTOMER will jointly agree on the final acceptance testing plan, such plan to include non- destructive attenuation tests and optical time domain reflectometer tests on each segment. CUSTOMER shall accept each deliverable in writing within seven (7) days of successful completion of the final acceptance testing plan. 26. BILLING AND PAYMENT: 26.1 The CITY shall invoice CUSTOMER for all fees and charges hereunder as determined by the Short Form IRU Agreement(s) and this Agreement as follows: a. CITY shall invoice CUSTOMER per Short Form IRU upon CUSTOMER acceptance of each deliverable. b. CUSTOMER shall submit payment in full within thirty (30) days after receipt of the CITY's invoice. C. CUSTOMER agrees to pay the CITY the fees set forth in the Short Form IRU Agreement payable on a quarterly basis of the calendar 12 year. Payment shall be made in advance by the 15th day of the month preceding the beginning of the quarter. d. Notwithstanding any provision contained in this Agreement to the contrary, CUSTOMER shall have the right to dispute any fees, charges, costs, expenses or payments for which it is invoiced by the CITY. In the event CUSTOMER disputes any invoice, or portion thereof, received from the CITY, CUSTOMER shall promptly pay that portion of the invoice which is undisputed. CUSTOMER shall have the right to withhold payment of any disputed amount, provided that CUSTOMER gives written notice to the CITY of the amount so disputed and the reason for the dispute on or before the due date of the invoice. 27. TITLE: CUSTOMER agrees that all right, title, and interest in all the CUSTOMER System provided by the CITY hereunder and as specified in the Short Form IRU Agreement shall at all times remain exclusively with the CITY. The CITY agrees that all right, title and interest in CUSTOMER System associated equipment provided by CUSTOMER as specified in the Short Form IRU Agreements shall at all times remain exclusively with CUSTOMER. The CITY acknowledges that CUSTOMER has contracted for the indefeasible right to use the CUSTOMER System at the time CUSTOMER executes each Short Form IRU Agreement and agrees that it will not take any action which shall be inconsistent with CUSTOMER's IRU interest. 28. ENTIRE AGREEMENT: This Agreement constitutes the complete and final expression of the agreement of the Parties and is intended as a complete and exclusive statement of the terms of their agreement and supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications and agreements which may have been made in connection with the subject matter hereof. All exhibits and schedules are incorporated by reference. CUSTOMER represents that in entering into this Agreement it has not relied on any previous representations or understandings of any kind or nature. 29. RECITALS: All recitals are incorporated by reference. 30. SEVERABILITY: If any portion of this Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of 13 this Agreement containing any provision held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or enforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, void, or unenforceable. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized representatives as of this day and year first above written. ATTEST: BRUCE V. MALKENHORST, City Clerk APPROVED AS TO FORM: ERIC T. FRESCH, City Attorney LI-A CITY OF VERNON LEONIS C. MALBURG, Mayor CUS' *Y'E By: Print Name: A the RqAkksC� Title: Ili E10 T Fi(i)4AJe —<' i By: Print Name D1. " Title:i� 14 EXHIBIT EXHIBIT "A" ALL SHORT FORM IRU AGREEMENTS AN is :� SHORT FORM IRU-02.1 Indefeasible Right of Use Agreement THIS SHORT FORM IRU-02.1 INDEFEASIBLE RIGHT OF USE AGREEMENT (herein referred to as "IRU-02.1 Agreement") is made, entered into and executed in duplicate originals, either copy of which may be considered as the original hereof for all purposes, as of this day of , 2004, between the City of Vernon (hereinafter referred to as the "CITY") having its offices at 4305 Santa Fe Avenue, Vernon, California 90058, and Clougherty Packing Company (hereinafter referred to as "CUSTOMER"), a corporation with its office at 3049 Vernon Avenue, Vernon, California 90058, and upon execution shall be a part of the CUSTOMER Optical Fiber Use Agreement ("Agreement") dated RECITALS WHEREAS, the CITY leases certain optical dark fiber strands and associated facilities in its Cable System for voice, data, and/or other video services, and CUSTOMER desires to lease such Cable System components for its business; and WHEREAS, the CITY optical fiber strands and facilities used by CUSTOMER are identified in the Agreement as CUSTOMER System and likewise shall be referred to as "CUSTOMER System" in this IRU-02.1 Agreement. THEREFORE, in consideration of the mutual agreements herein, the parties agree as follows: The CITY hereby grants to CUSTOMER an Indefeasible Right of Use (IRU) of the following CITY Cable System components: Fiber strand numbers 1 through 4 of the CITY Cable System terminating in each CUSTOMER facility and dedicated for CUSTOMER exclusive use, as identified in IRU-02.1-Schedule—E; and These individual CITY Cable System components collectively shall be the CUSTOMER System for this IRU-02.1 Agreement. The CUSTOMER System shall be inclusive of the CITY'S fiber optic Cable System between and including the CITY'S sides of the originating and terminating demarcation points. 2. The CITY will construct, install, and/or provide the CUSTOMER System for CUSTOMER'S use in accordance with the terms of the Agreement and this IRU-02.1 Agreement. The CITY shall use reasonable efforts to comply with the project schedule that is mutually agreed by both Parties. 3. CUSTOMER'S indefeasible right of use in each component of the CUSTOMER System shall commence when CUSTOMER notifies the CITY that it accepts, in accordance with the Section 25 of the Agreement, that component of the CUSTOMER System that meets the specifications set forth in the attached IRU-02.1-Schedule-D and operating effectively, and shall be valid for the remainder of the Term. During the Term, the CITY reserves the right to increase the recurring IRU fees at a rate not to exceed the Consumer Price Index, All Urban Consumers (CPI-U), published by the United States Department of Labor, Bureau of Labor Statistics (1982-84=100). The recurring fee may be increased on each anniversary of the effective date of the IRU-02.1 Agreement in which CUSTOMER will receive the IRU, by the increase, if any, in the CPI-U for the preceding twelve (12) month period. In the event such index shall cease to be computed or published, CITY may, in its reasonable discretion, designate a successor index to be used in determining any increase to the recurring fee. 4. The CITY shall provide the following items for the CUSTOMER System service: 4.1 A demarcation point at each CUSTOMER access location. The demarcation points consist of City furnished and installed patch panels on the CUSTOMER's existing 19" racks; 4.2 Optical fiber cable extension segments from splice enclosure in the public Right of Way to the demarcation point in CUSTOMER access location; and 4.3 One innerduct which will house fiber optic cable extension segments, inside the CUSTOMER furnished conduit, where applicable, from the conduit entry to the demarcation point. 5. CUSTOMER shall provide the following items for the CUSTOMER System service: 5.1 Provide the CITY access to the CUSTOMER's existing conduit system leading to the demarcation point inside the CUSTOMER location(s); 5.2 Provide the CITY access to the demarcation room for placement of necessary demarcation accessories and perform Scheduled or Emergency maintenance; 5.3 Bring its connecting optical fiber patch cords to the demarcation connection points; 5.4 Specify the type of optical connector needed at the demarcation termination point. The CITY shall install ultra SC type connector unless otherwise specified by the CUSTOMER; and 5.5 CUSTOMER shall be responsible for purchase, installation and maintenance of any and all electronic, optronic and other equipment, materials and facilities used by CUSTOMER on the CUSTOMER side of the demarcation points in connection with the operation of the CUSTOMER System, none of which is included in this IRU-02.1 Agreement. 2 6. The charges and application rules are identified in IRU-02.1-Schedule —B. A pro forma invoice setting forth a summary of the one-time non -recurring fee elements and the base charges for the monthly recurring fee elements under the IRU-02.1 Agreement is attached hereto as IRU-02.1-Schedule-C. The payments and charges shall be in accordance with Section 26 of the Agreement and as specifically identified in the following subparagraphs: 6.1 CUSTOMER shall pay a one time advanced engineering fee of (waived) which payment is due upon receipt of CUSTOMER's written request for service and shall be credited against the connection fee. 6.2 CUSTOMER shall pay a one time construction and installation fee of (waived) which payment is due upon CUSTOMER acceptance. 6.3 One-time lateral connection charge of (waived_ which payment is due upon CUSTOMER acceptance. 6.4 CUSTOMER shall pay quarterly IRU fee payments based on a monthly base rate of $680.00 with first quarterly payment due to the CITY upon CUSTOMER acceptance. 6.5 CUSTOMER shall pay one-time building or external network service connection and disconnection charges for each building service added or deleted after the initial establishment and cutover of a CUSTOMER System cable segment. One- time CUSTOMER service charges also apply if the CUSTOMER requires installation of a new distribution ring or concentrator in an already established Cable System or Customer System distribution cable segment, rearrangement of existing service connections, and rearrangement of a ring or concentrator operation. 6. All maintenance and repair functions on the CUSTOMER System and all facilities through which the CUSTOMER System passes, including, but not limited to, the CITY's Cable System, shall be performed by the CITY. 7.1 Section 4 of the Agreement applies. 7.2 CITY shall maintain the CUSTOMER System to the specifications provided in IRU-02.1-Schedule—D. 7.3 CITY shall provide to the CUSTOMER a twenty-four (24) hour a day, three hundred sixty-five (365) days per year, trouble -reporting telephone number. CUSTOMER shall provide the CITY a twenty-four (24) hour a day trouble coordination telephone number. 7.4 Any impairment or outage reasonably suspected to be caused by CUSTOMER System components on the CITY'S side of the demarcation point shall require a response from the CITY. During CUSTOMER System impairments or outages affecting CUSTOMER'S service, CITY shall keep CUSTOMER advised and updated. The CITY'S personnel will be on site no later than four (4) hours from notification by CUSTOMER of an impairment or outage materially affecting service. 7.5 CUSTOMER shall be charged with any false maintenance call outs at the standard CITY rate in effect at the time services are performed. The CITY'S rates in effect at the time of execution of this IRU-02.1-Schedule-A and are subject to change. 7.6 CUSTOMER shall be responsible for all installation, configuration, monitoring and maintenance associated with any CUSTOMER owned active electronics operating on the dark fiber leased strands located on the CUSTOMER side of the demarcation points. 7. The CITY will grant a credit allowance on monthly recurring IRU charges for service interruption calculated and credited in one (1) hour increments. A service interruption will be deemed to have occurred only if. 8.1 Service becomes unusable to CUSTOMER as a result of failure of CITY equipment, facilities, or personnel used to provide the service; and 8.2 The interruption is not the result of: 8.2.1 The negligence or acts of CUSTOMER or its agents, employees suppliers or contractors; 8.2.2 The failure or malfunction of non -CITY equipment, facilities, or system; 8.2.3 Any circumstances or causes beyond the control of the CITY; or 8.2.4 A service interruption caused by scheduled maintenance, alteration, or completion of such maintenance or alteration beyond normal time requirements. 8.3 Such credits will accumulate during a calendar year and be credited against the CUSTOMER invoiced service charge for the next quarter and will apply only to those segments experiencing the service interruption. 9. This IRU-02.1 Agreement, including IRU-02.1-Schedule-A, IRU-02.1-Schedule-B, IRU- 02.1-Schedule-C, IRU-02.1-Schedule-D, IRU-02.1-Schedule-E, which are attached are hereby incorporated into the Agreement, dated , 2004 and all of which constitutes the entire agreement between the Parties with respect to the subject matter. This IRU-02.1 Agreement cannot be modified except in writing signed by both Parties. 4 IN WITNESS HEREOF the Parties have executed and delivered this IRU-02.1 . Agreement effective the day and year first above written: ATTEST: BRUCE V. MALKENHORST, City Clerk APPROVED AS TO FORM: ERIC T. FRESCH, City Attorney CITY OF VERNON By: LEONIS C. MALBURG, Mayor CUSTO R ?tName S 56 C.8&J Title: k C ,F S 1 17�iEAF1 / i •C� gAkE By:L W60. d, r 4 Print Name: Title: 5 IRU-02.1-SCHEDULE A IRU-02.1-SCHEDULE B DARK FIBER PRICING 1.0 APPLICABILITY: IRU-02.1-Schedule-B The schedule specifies that connection fees must be agreed upon by the customer prior to connection of its facilities or buildings to the City's dark fiber network Cable System. The schedule also specifies the monthly usage fees in return for the privilege of using the Cable System. 2.0 TERRITORTY: Within the limits of the City of Vernon. 3.0 FEES: The IRU Agreement Fees consist of: A) One-time non -recurring fee elements. They include: 1) Advanced Engineering Fees: The advanced engineering fee is a non-refundable fee required for preparing an engineering study, which produces a detailed estimate of the cost and time required for the City to provide customers dark fiber connectivity. If the project is constructed, the advanced engineering fee will be credited against the connection fee. Advanced Engineering Fee $ 500.00 Special Condition By Estimate 2) Dark Fiber Lateral Connection Fees: The dark fiber lateral connection fee includes the cost of installing lateral connections and associated equipment as identified in the advanced engineering study. The lateral connection starts from an aerial or underground splice enclosure on the fiber backbone and terminates at the customer demarcation point. At the demarcation point, the City will place an accessible patch panel where the customer can have access to the terminated IRU dark fiber strands. 3) Construction and Installation Fees: If the point to point connection between the customer buildings cannot be installed in existing conduit, or attached to existing poles from the first demarcation point to the second demarcation point, then the customer may RM IRU-02.1-Schedule-B request that the City install new poles, conduit and cable at the customer's sole expense. 4) Future re -configuration Fees requested by the customer: The reconfiguration fee includes the costs associated with the connection/disconnection/re-arrangement of the CUSTOMER System. The fee shall apply for the initial establishment and cutover of a customer's point-to-point or distribution Cable System (ring or segment). The customer shall pay for all services added or deleted, or rearranged subsequent to the cutover date and shall pay for all connection services. The fees are: Service Addition: $300.00 per strand Service Deletion: $150.00 per strand Service Re -arrangement: Project specific. 5) Other Fees: 5.1 Early Termination Fees: Early termination of the Agreement is subject to the Termination Settlement Charges described in Section 8.8 of the Optical Fiber Use Agreement. 5.2 Annual Fee Adjustments: All fees are subject to annual consumer price index (CPI) adjustments at each anniversary of the effective date of the IRU Agreement. B) Monthly recurring fee elements. They include: 1) Building Entry Management Fees: The Building Entry Management Fee is a monthly recurring fee associated with the lateral cable management practices. It covers the routine and preventive maintenance practices associated with the lateral connections. The monthly fees are $100.00 per building entry. 2) Dark Fiber backbone IRU Fees: The table below describes the City Fiber Optic Backbone strand pricing for a point-to-point building connections. The monthly rate per strand varies depending on the system availability and other factors such as quantity of fiber strands requested, the length of the fiber path, and the topology. IRU-02.1-Schedule-B PRIMARY PATH - PROTECT (REDUNDANT)PATH Fiber Quantities First Mile per strand per month Additional miles per strand per month First Mile per strand per month Additional miles per strand per month 1-2 $ 180 $ 90 $ 90 $ 45 3-4 $ 140 $ 70 $ 70 $ 35 5-6 $ 100 $ 50 $ 50 $ 25 7-12 $ 40 $ 20 $ 20 $ 10 The discounted pricing applies when a customer signs up for more than one pair of fiber strands. Customer can sign up for a protect path point-to- point circuit to obtain physical redundancy in the Cable System for its primary path point-to-point circuit. The primary and protect path circuit end points terminate in the same demarcation point at each customer site. A complete circuit consists of two strands of a fiber optic cable terminated at each customer site demarcation point, there shall be two ports available each for the primary and protect paths for the customer to use. The following discounts apples a) Route Length Discount: The Route length discount ranges from $0 to $90.00 per fiber mile per month. For the purpose of this IRU-02.1 Agreement, a "Route" is that portion of the Cable System that extends between the customer points of connections. The Route will include lateral extension into the customer building, as identified in IRU-02.1- Schedule-E. Route miles shall be actual number of fiber strand miles connecting customer connection points, identified as customer System. b) Fiber quantity discount: The discount for quantities of fiber leased on a specific Route ranges from $0 to $140.00. c) Ring topology discount: The ring topology discount ranges from $0 to $135.00 per fiber mile per month. I: c IRU-02.1-SCHEDULE C IRU-02.1-Schedule-C SUMMARY IRU-02.1 Agreement INVOICE The summary IRU-02.1 Agreement Invoice provides a summary of all transactions of this IRU-02.1 Agreement. C.1 Transactions Invoice: ITEM Description IRU Fees 1 One-time Advanced Engineering Fee Waived 2 One-time Construction and Installation Fee Waived 3 One time Connection Fee Waived 4 Quarterly IRU-02.1 Base Charges $ 2,040.00 (March 2004 through May 2004) Total IRU-02.1 Agreement Fees $ 2,040.00 Note: Transaction invoices reflect the services purchased from the CITY by the CUSTOMER and shall be the amount due the CITY upon CUSTOMER acceptance. This invoice reflects no federal, state, or local taxes. Taxes, as may be appropriate, shall be added or invoiced separately. C-1 IRU-02.1-SCHEDULE D IRU-02.1-Schedule-D CABLE SYSTEM SPECIFICATIONS 1. General The CITY shall install and maintain the CUSTOMER System within the CITY'S Cable System in accordance with the criteria and specifications that follows: 2. Design Criteria The CITY will endeavor to keep the number of splices in a span to a minimum. 3. Optical Fiber Specifications The CITY will meet the optical specifications as detailed below for all cable installed for the Term of this Short Form IRU Agreement: Single Mode Fiber: Parameter Specifications Units Maximum attenuation, 1310nm Maximum attenuation, 1550nm Cladding diameter Core diameter Cutoff Wavelength Zero dispersion wavelength Maximum dispersion (1285-1330 nm) 4. Splice Loss 0.5 dB/Km 0.4 dB/Km 125 +/- 3 um 8.3 um 1250 +/- 100 nm 1310 +/- 12 nm 3.5 ps/(nm-km) Splice loss on CITY cables will average less than or equal to 0.15 dB for all splices the CITY makes under this IRU-02.1 Agreement. The 0.15 dB splice average will only apply to splices between cables of identical physical and optical properties (i.e., core and cladding dimensions, reflective index and optical loss characteristics). All splices shall be measured using bi-directional methods and averages. 5. End -to -End Attenuation Test Criteria The CUSTOMER System will be tested at both wavelengths specified for the installed cable type as specified below unless , otherwise stated in this IRU-02.1 Agreement: D-1 K • • i � y IRU-02.1-Schedule—D (Continued) Single Mode Fiber 1310 nm and 1550 nm The end -to -end attenuation test criteria will be based on the following formula: Maximum acceptable end -to -end attenuation = (A X Lx) + (0.15 X Nsp) + C Where: A = Max. attenuation at each wavelength as specified in Section 3 above Lx = Installed length of cable in kilometers (km) Nsp = Number of fiber splices in the cable sysem C = Connector/pigtail loss. The attenuation contribution of each pigtail with associated connector is considered to be 1.0 dB comprised of 0.85 dB connector loss and 0.15 dB splice loss (pigtail to OSP cable splice). Therefore, C = 1.0 dB if the span is connectorized on one end and 2.0 dB if connectorized on both ends. 5.1 The parameters above are guaranteed unless otherwise specified. 5.2 In the event that the fiber measured attenuation values change after the cable is installed and is degraded by 2db or greater than specified above, the CITY will perform corrective maintenance pursuant to IRU-02. 1 -Schedule — D of this original specified attenuation values. AnalogVideo The CITY will not warrant CUSTOMER analog video transmission within the foregoing system parameters. D-2 IRU-02.1-SCHEDULE E 0 Z 0 m z Z 13 �u w - zi >F QHQ a FW> t0 o .. - F m J o �... .. ,. _ 7 W IL a J x i m c m p d q CO _p y_m w w p 00 is < w ca z a h a ` _- o z o z _ x w 2 G J ® U LL Z... m Z a IL- F i. F ap > ® n Q n w m Z 4 Y- Z Y F W U J IX > �. D J K W Z p G J 0 m K Z O 0 4. Z > �, o 13 a z t W W Y ® 3 J 13 Q Z W Q na ® 0 a W o n EXHIBIT 1 ccBr» TROUBLE -REPORTING PROCEDURE Exhibit `B" ■ TROUBLE -REPORTING PROCEDURE The CITY maintains its fiber .optic network (Cable System) in accordance with industry standards. Should a problem or trouble with the service arise, please call 323- 826-1461 (24 hours) to report trouble. This is the number of the CITY'S Technical Control Center (TCC). The TCC will inform the maintenance and management group of all trouble calls. The acting Maintenance Supervisor will initiate the indicated trouble into the restoral action and coordinate all restoration activity. The CUSTOMER can obtain the name and telephone number of the acting Maintenance Supervisor from the TCC at the time of trouble reporting. Upon clearance of the trouble, the TCC will notify the trouble -reporting location of clearance and reason for trouble. The CITY shall within four (4) hours of notification of the trouble -reporting be on site and begin investigating and correcting the reported condition. The CITY, at four- hour intervals, shall provide the CUSTOMER a report of progress or lack thereof in restoring the system to operation in accordance with the Customer System/Cable System Specifications of the Short Form IRU Agreement's Schedule-D. Exhibit `B" EXHIBIT C (06C99 INSURANCE ENDORSEMENT FORMS EXHIBIT "C" EXHIBIT C INSURANCE SCHEDULE Customer shall provide proof of insurance, including a standard certificate of insurance, in at least the following amounts and coverage (combined single limit permitted): I. Coverage and Limits Bodily jury Property Damag Hazards Each Person Each Accident Each Accident Automobile Liability Owned Automobiles $ 500,000 $1,000,000 $ 500,000 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 Non -Owned Automobiles $ 500,000 $1,000,000 $ 500 000 Workers' Compensation $ Statutory Employers' Liability $1,000,000 per employer II. Liability General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 Elevators (If Applicable) $1,000,000 $2,000,000 $1,000,000 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 Contractual Liability $1,000,000 $2,000,000 $1,000,000 Umbrella Liability $2,000,000 $2,000,000 $2,000,000 a . The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: 1. An endorsement naming the City of Vernon, its officers, and employees as additional insureds under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material reduction of coverage. 3. An endorsement providing coverage for all operations under this Agreement. 4. Such other endorsement as may be required by addendum hereto. b. In addition to the standard certificate of insurance, proof of liability coverage shall be furnished in the form checked below. X For each policy, a notarized letter from the underwriter or carrier certifying that the coverage and statements in the standard certificate of insurance (attached thereto) are true and correct and that the signator is an officer authorized to so certify. OR A copy of each policy certified by an officer of the underwriter or carrier and notarized. City will not accept the above proofs of insurance when certified by an insurance agent or broker. 19MOVII-Y&M SUPPORTING DOCUMENTS � w � AGREEMENT NO.02 OPTICAL FIBER USE AGREEMENT By and Between THE CITY OF VERNON and CLOUGHERTY PACKING COMPANY I- TABLE OF CONTENTS 1. DEFINITIONS: --_------.----..-------_--.^----------.-.---.--------------'.l 2' '�IB0�' ----'----'----'---^'''-'-------'--------------.------.-----------'2 3' TAXES: --...----..----.----.-_----------------.---------.-------'----- zi z°uANTzNAnCE.' --------.---.----..-.--_-----------,--'------------''--2 5��I��I�K����������I�0�� ' ..........................................................-----'—.---_--------3 6' COMPLIANCE WITH LAWS: .............................................................................................. 4 7' RELOCATION OF THEFACILITIES: ................................................................................. 4 8' EVENTS OF __---_-----------'--''-----------------'----' 9' ADMINISTRATION OF THISAGREEMENT: ................................................................... 7 10. ^mDExuN/rICATION:-----_----.,---___-___,___------------------_--_-'7 11. uNmurANCo' -------_-_-----.---------------_-----------------------'8 12. DEFgkTJLI:-----_----.-_--�.-.--...--------'-----'-'-----'-------------'-' 13. FORCE MAJEJRE:.---_--.-.---__---------_----.-'--'---'----''--------''-9 14. ASSIGNMENT: ..................................................................................................................... l0 15. WAIVER: --'—'-------------'-'---------------__-_-_.---.----------l0 16. RELATIONSHIP NOT PARTNERSHIP OR ANAGENCY: ......................................... l0 17. NO ' THIRD -PARTY BENEFICIARIES: ............................................................................. ll 10' 'y�K��I���' --'-------'---''--------''-''-'-----'-------_---------------_-'ll 19. GOVERNING IAW-----__—__—___--__-___--_._-------.--------------'}l 20. FORUM SELECTIOrv:------..--_—_----------_----..--_----.----------...11 Zy' USE OFTHE CUSTOMERSYSTEM: ............................................................................... ll 22' PLURALS: -''-''-------'---'-------'-'-----------_-_-----------.-----_..l2 23. PARTS OFAGREEMENT: ................................................................................................. l2 24' COUNTERPARTS: .............................................................................................................. l2 25' ACCEPTANCE TESTING: .................................................................................................. l2 26' BILLING AND PAYMENT: 27' '�3�I�I' --'''--'----------------------------.--_----_------------------l3 28' ENTIRE AGREEMENT: ...................................................................................................... l3 29' RECITALS: .......................................................................................................................... l3 30. ' �' ���+��n���KT ��-------- -- ~^~~^^~~`~~~~~~Agreement EXHIBIT B: Trouble Reporting Procedure EXHIBIT C: Insurance 6\ ,, A t b. Short Form IRU Al eement: Any number of short form agreements between the CITY and CUSTOMER which identify the specific optical fiber strands and facilities to be provided to CUSTOMER and which set forth the associated fees, terms and conditions for CUSTOMER'S use of such optical fiber strands and facilities. When executed, each Short Form IRU Agreement shall be attached hereto as Exhibit "A" and made a part hereof. C. CUSTOMER System: The optical fiber strands, innerduct, conduit, building entrance facilities and associated appurtenances, to be provided to CUSTOMER under the terms of this Agreement and the applicable Short Form IRU Agreement(s) and the associated rights to access such fiber strands at demarcation points as specified in the applicable Short Form IRU Agreement(s). d. Cable System: All hardware, including but not limited to, fiber cable, poles, pole attached hardware, conduit, innerduct, enclosures, building and facilities owned and operated by the CITY for its use. 2. TERM: 2.1 Unless terminated sooner in accordance with the terms and conditions of this Agreement, the duration of this Agreement is three (3) years (hereinafter referred to as the "Term"), commencing on the date of this Agreement (hereinafter referred to as the "Commencement Date'). The duration of each Short Form IRU Agreement, and any renewal or extension thereof, shall be set forth in the applicable Short Form IRU Agreement for each portion of the CUSTOMER System. With the written mutual consent of the two parties, this Agreement can be renewed for two additional three (3) years terms. 3. TAXES: 3.1 The CITY shall be responsible for all taxes and fees based on the physical location of the Cable System and/or the construction thereof in, on, across, along or through public or private roads, highways or rights -of -way. 3.2 The CUSTOMER shall be responsible for paying all taxes, and franchise, license and permit fees (hereinafter collectively referred to as "Taxes") assessed against it for the conduct of its business and for its use of the CUSTOMER System during the Term of this Agreement. 4. MAINTENANCE: 4.1 All scheduled and emergency maintenance to and repair of the Cable System, and all facilities through which the Cable System passes, shall be performed by or 2 under the direction of the CITY with reasonable notice to CUSTOMER at CITY's sole cost. Except as otherwise provided in the, Short Form IRU Agreement, CUSTOMER is prohibited from performing any maintenance or repair on the Cable System or CUSTOMER System. CUSTOMER shall have the right to have an employee or representative available to assist the CITY in any maintenance or repair of the CUSTOMER System. The CITY shall maintain the CUSTOMER System in accordance with the technical specifications (hereinafter referred :to as the "Specifications") attached to and made a part of the Short Form IRU Agreement as its Schedule-D. a. Emergency Maintenance: The CITY shall respond to any failure, interruption or impairment in the operation of the CUSTOMER System within four (4) hours after receiving a report of any such failure, interruption or impairment. The CITY shall use its best efforts to perform emergency maintenance and repair to correct any failure, interruption or impairment in the operation of the CUSTOMER System when reported by CUSTOMER in accordance with the procedures set forth in Exhibit `B" attached hereto and made a part hereof. b. Scheduled Maintenance: The CITY from time to time will schedule and perform periodic maintenance to protect the integrity of the Cable System and/or CUSTOMER System to maintain dark fibers within Specification at City's sole cost. The City will perform changes or modifications to the Cable System and/or CUSTOMER System at CUSTOMER'S request. CUSTOMER may request Scheduled Maintenance by delivering to the CITY a statement of work detailing the service CUSTOMER desires to have performed, including the time schedule for such services. Upon receipt of such statement of work, the CITY will provide an estimate of the price and timing of such Scheduled Maintenance. Following CUSTOMER's acceptance of such estimate, the CITY will schedule and perform such Scheduled Maintenance. The CITY will perform CUSTOMER requested Scheduled Maintenance on a time -and -materials basis at the standard CITY rates in effect at the time services are performed. CITY rates in effect will be those identified in Schedule -A of the most recent Short Form IRU Agreement. Such rates are subject to change at a rate not to exceed the cumulative CPI rates of previous years since the last rate change. 5. FREEDOM OF ACTION: Nothing in this Agreement shall restrict the CITY's right to conduct its business and it may, without limitation, construct and install additional optical fiber cable systems for any purpose whatsoever. 3 6. COMPLIANCE WITH LAWS: CUSTOMER shall comply with all applicable federal, state, and local laws, ordinances and regulations pertaining to this Agreement. 7. RELOCATION OF THE FACILITIES• CUSTOMER recognizes that, from time to time, the CITY may elect or be required by parties other than the CUSTOMER to relocate the Cable System and/or the CUSTOMER System, or a portion thereof. The CITY shall be solely responsible for all costs incurred in relocating the Cable System and/or the CUSTOMER System and shall use its best efforts to do so in a manner that will not cause any material interruption in CUSTOMER'S use thereof The CITY agrees to give CUSTOMER at least thirty (30) days prior written notice of any relocation plans. 8. EVENTS OF TERMINATION: 8.1 Condemnation a. If at any time during the Term of this Agreement, all or any significant portion of the Cable System or the CUSTOMER System shall be taken -for any public or quasi public purpose by any lawful power or authority by the exercise of the right of condemnation or eminent domain, either party may elect to terminate this Agreement and/or the affected Short Form IRU Agreement upon giving the other party sixty (60) days prior written notice. In the event this Agreement and/or the affected Short Form IRU Agreement is terminated in accordance with this section, both parties shall be entitled to participate in any condemnation proceedings to seek to obtain compensation via separate awards for the economic value of their respective interest in the Cable System or CUSTOMER System. b. Upon its receipt of a formal notice of condemnation or taking, the CITY shall notify CUSTOMER immediately of any condemnation proceeding filed against the Cable System, including the CUSTOMER System. The CITY shall also notify CUSTOMER of any similar threatened condemnation proceeding and agrees not to sell the CUSTOMER System to such acquiring agency, or other party in lieu of condemnation without prior written notice to CUSTOMER. 8.2 Damage or Destruction of the Cable System or the CUSTOMER System: If at any time during the Term of this Agreement and/or specific Short Form IRU Agreement all or any significant portion of the Cable System and/or CUSTOMER System provided by specific Short Form IRU 4 Agreement shall be made inoperable and beyond feasible repair, a party may terminate the specific Short Form IRU Agreement upon giving (30) days written notice to the other Party. In the event this Agreement and/or specific Short Form IRU Agreement is terminated under this section, both Parties shall be entitled to seek to recover the economic value of their respective interest in the Cable System or the CUSTOMER System (1) under any insurance policy carried by either Party, or (2) seek recovery from any third party which may be legally responsible for causing such damage or destruction. 8.3 Catastrophic Outage: If at any time during the Term of this Agreement, the ability of the Cable System and/or CUSTOMER System, provided by specific Short Form IRU Agreement, to transmit voice, data, and/or video services is interrupted or degraded below the specifications in the Short Form IRU Agreement Schedule-D by (1) a force majeure event that lasts for thirty (30) consecutive days, or (2) a non -force majeure event that lasts for five (5) consecutive days, then either Party may elect to terminate the specific Short Form IRU Agreement upon giving thirty (30) days written notice to the other Party. In the case of non -force majeure event, each Party shall be entitled to seek legal remedies that may be available. 8.4 Relocation: If the CITY, in accordance with Section 7, after using its best efforts to undertake such relocation, cannot relocate the CUSTOMER System or affected portion thereof, CUSTOMER may terminate the applicable Short Form IRU Agreement upon giving at least thirty (30) days written notice to the CITY. 8.5 Obsolete Cable System: If at any time during the Term of this Agreement, CUSTOMER can demonstrate to the CITY's satisfaction that the Cable System and/or any portion or portions thereof have become technically obsolete, the CUSTOMER shall have the right to elect to terminate this Agreement or the affected Short Form IRU Agreement by giving at least thirty (30) days written notice to the CITY. 8.6 Poor Service: If at any time during the Term of this Agreement or a specific Short Form IRU Agreement, CUSTOMER can demonstrate to the CITY's satisfaction the Cable System and/or any portions thereof, fail to perform in accordance with the specifications set forth in Schedule-D of the affected Short Form IRU Agreement over a period of at least three (3) consecutive months, and the CITY's efforts during this period have failed to restore the Cable System to the required Specifications, then the CUSTOMER has the right to terminate this Agreement or the affected Short Form IRU Agreements by giving at least thirty (30) days written notice to the CITY. Notwithstanding any provision contained in this Agreement to the contrary, the CITY shall have the right to terminate any Short Form IRU 5 Agreement upon three (3) months written notice to CUSTOMER if the CUSTOMER System provided by such Short Form IRU Agreement is needed in connection with the CITY's telecommunications needs related to CITY business. At the time of such notice of termination, the CITY shall waive the remaining annual payment of the Short Form IRU Agreement that the CITY elects to terminate. If the CITY terminates, it will use its best efforts to relocate CUSTOMER System or any segment under the affected Short Form IRU Agreement, and if a satisfactory relocation reroute can be identified, CUSTOMER and CITY shall enter into a new Short Form IRU Agreement. 8.7 CUSTOMER Sole Discretion: Notwithstanding any provision contained in this Agreement to the contrary, at any time after the effective date of this Agreement, CUSTOMER shall have the option, in its sole discretion and for any reason, to terminate this Agreement or any Short Form IRU Agreement upon three (3) months prior written notice to the CITY. 8.8 1Termination Settlement Charges: a. No termination, as provided for in the Agreement, shall be effective until the CUSTOMER has paid all required sums due under any affected Short Form IRU Agreement up to and including the effective date of termination and Termination Settlement Charges, if any, as defined in Sections 8.8.b, 8.8.c and 8.8.d. b. In the event CUSTOMER elects to terminate this Agreement and/or any Short Form IRU Agreement under the terms of the provisions of Section 8.7, the annual payments shall be recalculated to reflect the termination date and, therefore, the new Term of the Agreement. The recalculated annual payments shall use the appropriate discount or premium and shall be retroactive to all CUSTOMER IRU payments from commencement to the termination of each Short Form IRU Agreement. The cumulated difference between the annual IRU payments made.by the CUSTOMER to the CITY under the CUSTOMER's originally selected Term of the Agreement (including any discounts) and the recalculated payments applicable for the effective Term of the Agreement shall hereinafter be known as "Termination Adjustment Charge." The Termination Adjustment Charge shall apply as part of the Termination Settlement Charges. C. Furthermore, in the event CUSTOMER elects to terminate any Short Form IRU Agreement under the terms of the provisions of Section 8.7, a termination charge of half the remaining payments due if the Short Form IRU Agreement were to reach its full Term shall apply as part of the Termination Settlement Charges. 0 d. The Termination Settlement Charges shall be calculated as follows: TSC = TAC + % (remaining $ of original Short Form IRU Agreement). e. CITY shall transfer the ownership of the demarcation patch panels at end of the initial Term. The CITY shall remove CUSTOMER system from CITY cable system by physically removing optical fiber cables from the splicing enclosure on public rights -of -way to the demarcation point leaving the patch panel in place at CUSTOMER's request. 9. ADMINISTRATION OF THIS AGREEMENT: 9.1 Within thirty (30) calendar days after the effective date of this Agreement, CUSTOMER and the City Administrator shall designate, by written notice to the other, a representative who is authorized to act in the respective Party's behalf with respect to those matters delegated to the authorized representatives. Each Party may designate an alternate representative with full authority to act in the absence of the authorized representative. Each Party shall have the right to change its representative or alternate by written notice. 9.2 The authorized representatives shall have the following responsibilities, among others: a. Perform those functions and duties assigned to them in this Agreement. b. Review and attempt to resolve any disputes between the Parties arising under this Agreement. C. Arrange for the development and completion of procedures to implement the provisions of this Agreement. 9.3 Any expenses incurred by the authorized representative in connection with his/her duties shall be paid by the Party he/she represents. 9.4 The authorized representative shall have no authority to modify this Agreement. 10. INDEMNIFICATION: 10.1 The CUSTOMER undertakes and agrees to indemnify, defend and hold harmless the CITY, the Department of Community Services & Water, the City Council of the CITY, and all of its officers and employees, and, at the option of the CITY, defend the CITY, and any and all of its Boards, officers, agents, representatives, employees, assigns and successors in 7 interest from and against any and all suits and causes of action, claims, charges, damages, demands, judgments, civil fines and penalties, or losses or any kind or nature whatsoever, for death, bodily injury or personal injury to any person, including CUSTOMER's employees and agents, or damage or destruction to any property of either party hereto, or third persons in any manner arising by reason of the negligent acts, errors, omissions or willful misconduct incident to the performance of this Agreement on the part of the CUSTOMER, or the CUSTOMER's officers, agents, employees or subcontractors of any tier, except for the active negligence or willful misconduct of the CITY, its officers, agents, representatives or employees. 10.2 Except for any payment due to the CITY in accordance with Section 26 of this Agreement, neither party shall be liable for any indirect, special, punitive or consequential damages, (including, but not limited to, any claim for loss of services) arising under this Agreement or from any breach or partial breach of the provisions of this Agreement or arising out of any act or omission hereto, its employees, contractors and/or agents. The CUSTOMER shall include in any agreement with any third party relating to the use of the Cable System or the CUSTOMER System a waiver by such third party of any claim for indirect, special, punitive or consequential damages (including, but not limited to, any claim from any CUSTOMER for loss of services) arising out of or as a result of any act or omission by either party hereto, its employees, contractors and/or agents. The parties' respective obligations to include such a provision waiving indirect, special, punitive or consequential damages in any agreement with any third party shall be subject to any and all regulatory or other legal limitations, as well as applicable tariffs. I L INSURANCE: CUSTOMER agrees to provide insurance in the amounts and forms specified in Exhibit " C," which is attached hereto and made a part hereof by reference. CUSTOMER shall submit to the CITY documentation indicating compliance with these minimum requirements no less than one (1) day prior to the beginning of performance under this Agreement. 12. DEFAULT: 12.1 CUSTOMER shall not be in default under this Agreement or in breach of any provision hereof unless and until the CITY shall have given CUSTOMER written notice of a breach and CUSTOMER shall have failed to cure the same within thirty (30) days after receipt of a notice, other than any default in payment which must be cured within fifteen (15) business days after receipt of a notice; provided, however, that where such non -monetary breach cannot reasonably be cured within such thirty (30) day period, if CUSTOMER shall proceed promptly to cure the same and prosecute such curing with due diligence, the time for curing such breach shall be extended for a reasonable period of time to complete such curing. Upon the failure by CUSTOMER to timely cure any such breach after notice thereof from the CITY, the CITY shall have the right to take such action as it may determine, in its sole discretion, to be necessary to cure the breach or terminate this Agreement or pursue such other remedies as may be provided by law or in equity. 12.2 The CITY shall not be in default under this Agreement or in breach of any provision hereof unless and until CUSTOMER shall have given the CITY written notice of such breach and the CITY shall have failed to cure the same within thirty (30) days after receipt of such notice; provided, however, that where such breach cannot reasonably be cured within such thirty (30) day period, if the CITY shall proceed promptly to cure the same and prosecute such curing with due diligence, the time for curing such breach shall be extended for a reasonable period of time to complete such curing. Upon the failure by the CITY to timely cure any such breach after notice thereof from CUSTOMER, CUSTOMER shall have the right to take such action as it may determine, in its sole discretion, to be necessary to cure the breach or terminate this Agreement or pursue such other remedies as may be provided at law or in equity. 12.3 If CUSTOMER or the CITY, as the case may be, shall file a petition in bankruptcy or for reorganization or for an arrangement pursuant to any present or future federal or state bankruptcy law or under any similar federal or state law, or shall be adjudicated as bankrupt or insolvent, or shall make a general assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts generally as they become due, or if any involuntary petition proposing the adjudication of CUSTOMER or the CITY, as the case may be, as a bankrupt or its reorganization under any present or future federal or state bankruptcy law or any similar federal or state law shall be filed in any court and such petition shall not be discharged or denied within ninety (90) days after the filing thereof, or if a receiver, trustee or liquidator of CUSTOMER or the CITY, as the case may be, of all or substantially all of the assets of CUSTOMER or the CITY, as the case may be, and shall consent to or acquiesce in such appointment, then the other party hereto may, at its sole option, immediately terminate this Agreement upon written notice. 13. FORCE MAJEURE: Neither party shall be considered to be in default in any of its obligations under this Agreement when a failure of performance shall be due to an uncontrollable force. The terms "uncontrollable force" shall mean any cause beyond the control of the party affected, including, but not restricted to, flood, earthquake, storm, fire, lightening, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor material 0 shortage, sabotage, federal, state, or municipal action, statute, ordinance, or regulation, embargoes of the United States Government or any other government, which by exercise of due diligence such party could not reasonably have been expected to avoid and by exercise of due diligence has been unable to overcome. Either party rendered unable to fulfill any of its obligations under this Agreement by reason of an uncontrollable force, shall give written notice within five (5) business days of such fact to the other party and shall exercise due diligence to remove such inability with all reasonable dispatch. 14. ASSIGNMENT: 14.1 This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors or assigns; provided, however, that no assignment hereof or sublease, assignment or licensing (hereinafter collectively referred to as a "Transfer") of any rights or obligations hereunder shall be valid for any purpose without the prior written consent of each party hereto, provided, further, however, that without such consent, CUSTOMER shall have the right to assign this Agreement to any parent, subsidiary or affiliate of CUSTOMER or to any person, firm or corporation which shall control, be under the control of, or be under common control with CUSTOMER or to any person, firm or corporation into or with which CUSTOMER may be merged or consolidated or which purchases all or substantially all of the assets or stock of CUSTOMER. 14.2 In the event of any assignment or Transfer by either party undertaken pursuant to Section 14.1 herein, the assigning or transferring party shall remain liable for all its obligations under this Agreement, unless: (a) the other party consents to release by written instrument, the assigning or transferring party from such obligations, and (b) the assignee or transferee shall have affirmatively assumed in writing all of the obligations of the assigning or transferring party under this Agreement. 15. WAIVER: Any waiver at any time by either Party of its rights with respect to a default under this Agreement, or with respect to any other matters arising in connection with this Agreement, shall not be deemed a waiver with respect to subsequent default or other matter. 16. RELATIONSHIP NOT A PARTNERSHIP OR AN AGENCY: Except where specifically stated in this Agreement to be otherwise, the duties, obligations, and liabilities of the Parties are intended to be several and not joint or collective. Nothing contained in this Agreement shall be construed to create an association, trust, partnership, or joint venture or impose a trust or partnership duty, 10 obligation, or liability on or with regard to either Party. Each Party shall be individually and severally liable for its own obligations under this Agreement. 17. NO THIRD -PARTY BENEFICIARIES: This Agreement shall not be construed to create rights in, or to grant remedies to, any third party (except as specified herein) as a beneficiary to this Agreement or of any duty, obligation or undertaking established herein. 18. NOTICES: Any written notice under this agreement shall be deemed properly given if sent by registered or certified mail, postage prepaid, or by nationally recognized overnight delivery service or by facsimile to the address specified below, unless otherwise provided for in this Agreement`. CITY: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST CITY ADMINISTRATOR 4305 SANTA FE AVENUE VERNON, CA 90058-0805 CUSTOMER: ATTN: �a _S H E,tii s o.c7 v 19. GOVERNING LAW: The validity, interpretation and performance of this Agreement shall be controlled and construed under the laws of the State of California. 20. FORUM SELECTION: Any action brought relating to this Agreement shall be brought and held exclusively in a State Court in the County of Los Angeles, California. 21. USE OF THE CUSTOMER SYSTEM: CUSTOMER shall have exclusive control over its provisioning of voice, data, and/or other video services and other services including, without limitation, CUSTOMER premise and nodal electronics, electronics installation, configuration, operation, maintenance and monitoring. 11 22. PLURALS: In construction of this Agreement, words used in the singular shall include the plural and the plural the singular, and/or is used in the inclusive sense, in all cases where such meanings would be appropriate. 23. PARTS OF AGREEMENT: All Short Form IRU Agreements, attachments, exhibits and appendices attached hereto shall be deemed a part of this Agreement, and shall have full force and effect. Short Form IRU Agreements shall be identified and named with a numeric designator by chronological date of execution, e.g., -01, Short Form IRU Agreement, and attached chronologically following this Agreement and its exhibits and made a part of this Agreement. 24. COUNTERPARTS: This Agreement may be executed in any number of counterparts, each and all of which shall be deemed for all purposes to be one agreement. However, this Agreement shall not become effective unless and until all Parties hereto have executed either the original or a counterpart of the Agreement. 25. ACCEPTANCE TESTING: The CITY will submit an acceptance testing plan to CUSTOMER for approval within thirty (30) days of signing any Short Form IRU Agreement. CUSTOMER will review and provide comments within twenty (20) days of receipt. The CITY and CUSTOMER will jointly agree on the final acceptance testing plan, such plan to include non- destructive attenuation tests and optical time domain reflectometer tests on each segment. CUSTOMER shall accept each deliverable in writing within seven (7) days of successful completion of the final acceptance testing plan. 26. BILLING AND PAYMENT: 26.1 The CITY shall invoice CUSTOMER for all fees and charges hereunder as determined by the Short Form IRU Agreement(s) and this Agreement as follows: a. CITY shall invoice CUSTOMER per Short Form IRU upon CUSTOMER acceptance of each deliverable. b. CUSTOMER shall submit payment in full within thirty,(30) days after receipt of the CITY's invoice. C. CUSTOMER agrees to pay the CITY the fees set forth in the Short Form IRU Agreement payable on a quarterly basis of the calendar 12 year. Payment shall be made in advance by the 15a' day of the month preceding the beginning of the quarter. d. Notwithstanding any provision contained in this Agreement to the contrary, CUSTOMER shall have the right to dispute any fees, charges, costs, expenses or payments for which it is invoiced by the CITY. In the event CUSTOMER disputes any invoice, or portion thereof, received from the CITY, CUSTOMER shall promptly pay that portion of the invoice which is undisputed. CUSTOMER shall have the right to withhold payment of any disputed amount, provided that CUSTOMER gives written notice to the CITY of the amount so disputed and the reason for the dispute on or before the due date of the invoice. 27. TITLE: CUSTOMER agrees that all right, title, and interest in all the CUSTOMER System provided by the CITY hereunder and as specified in the Short Form IRU Agreement shall at all times remain exclusively with the CITY. The CITY agrees that all right, title and interest in CUSTOMER System associated equipment provided by CUSTOMER as specified in the Short Form IRU Agreements shall at all times remain exclusively with CUSTOMER. The CITY acknowledges that CUSTOMER has contracted for the indefeasible right to use the CUSTOMER System at the time CUSTOMER executes each Short Form IRU Agreement and agrees that it will not take any action which shall be inconsistent with CUSTOMER's IRU interest. 28. ENTIRE AGREEMENT: This Agreement constitutes the complete and final expression of the agreement of the Parties and is intended as a complete and exclusive statement of the terms of their agreement and supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications and agreements which may have been made in connection with the subject matter hereof. All exhibits and schedules are incorporated by reference. CUSTOMER represents that in entering into this Agreement it has not relied on any previous representations or understandings of any kind or nature. 29. RECITALS: All recitals are incorporated by reference. 30. SEVERABILITY: If any portion of this Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of 13 this Agreement containing any provision held to be invalid, void or otherwise unenforceable, that is not itself invalid, void or enforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, void, or unenforceable. IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized representatives as of this day and year first above written. CITY OF VERNON By: �ON�ISC.MALBUR Mayor ATTEST• BRUCE V. MALKENHORST, City Clerk APPROVED AS RM: ERIC T. FRES H, City Attorney 14 T- CUS M] By: Print Name: S Title: V-Lr e y-ces moGJ FlAanee IC By: &,Z4 ._K 4 'b e' LAB Print Name:�I ��,o ur EXHIBIT "A" ALL SHORT FORM IRU AGREEMENTS SHORT FORM IRU-02.1 Indefeasible Right of Use Agreement THIS SHORT FORM IRU-02.1 INDEFEASIBLE RIGHT OF USE AGREEMENT (herein referred to as "IRU-02.1 Agreement") is made, entered into and executed in duplicate originals, either copy of which may be considered as the original hereof for all purposes, as of this day of , 2004, between the City of Vernon (hereinafter referred to as the "CITY") having its offices at 4305 Santa Fe Avenue, Vernon, California 90058, and Clougherty Packing Company (hereinafter referred to as "CUSTOMER'), a corporation with its office at 3049 Vernon Avenue, Vernon, California 90058, and upon execution shall be a part of the CUSTOMER Optical Fiber Use Agreement ("Agreement") dated RECITALS WHEREAS, the CITY leases certain optical dark fiber strands and associated facilities in its Cable System for voice, data, and/or other video services, and CUSTOMER desires to lease such Cable System components for its business; and WHEREAS, the CITY optical fiber strands and facilities used by CUSTOMER are identified in the Agreement as CUSTOMER System and likewise shall be referred to as "CUSTOMER System" in this IRU-02.1 Agreement. THEREFORE, in consideration of the mutual agreements herein, the parties agree as follows: 1. The CITY hereby grants to CUSTOMER an Indefeasible Right of Use (IRU) of the following CITY Cable System components: Fiber strand numbers 1 through 4 of the CITY Cable System terminating in each CUSTOMER facility and dedicated for CUSTOMER exclusive use, as identified in IRU-02.1-Schedule—E; and These individual CITY Cable System components collectively shall be the CUSTOMER System for this IRU-02.1 Agreement. The CUSTOMER System shall be inclusive of the CITY'S fiber optic Cable System between and including the CITY'S sides of the originating and terminating demarcation points. 2. The CITY will construct, install, and/or provide the CUSTOMER System for CUSTOMER'S use in accordance with the terms of the Agreement and this IRU-02.1 Agreement. The CITY shall use reasonable efforts to comply with the project .schedule that is mutually agreed by both Parties. 3. CUSTOMER'S indefeasible right of use in each component of the CUSTOMER System shall commence when CUSTOMER notifies the CITY that it accepts, in accordance with the Section 25 of the Agreement, that component of the CUSTOMER System that meets the specifications set forth in the attached IRU-02.1-Schedule-D and operating effectively, and shall be valid for the remainder of the Term. During the Term, the CITY reserves the right to increase the recurring IRU fees at a rate not to exceed the Consumer Price Index, All Urban Consumers (CPI-U), published by the United States Department of Labor, Bureau of Labor Statistics (1982-84=100). The recurring fee may be increased on each anniversary of the effective date of the IRU-02.1 Agreement in which CUSTOMER will receive the IRU, by the increase, if any, in the CPI-U for the preceding twelve (12) month period. In the event such index shall cease to be computed or published, CITY may, in its reasonable discretion, designate a successor index to be used in determining any increase to the recurring fee. 4. The CITY shall provide the following items for the CUSTOMER System service: 4.1 A demarcation point at each CUSTOMER access location. The demarcation points consist of City furnished and installed patch panels on the CUSTOMER's existing 19" racks; 4.2 Optical fiber cable extension segments from splice enclosure in the public Right of Way to the demarcation point in CUSTOMER access location; and 4.3 One innerduct which will house fiber optic cable extension segments, inside the CUSTOMER furnished conduit, where applicable, from the conduit entry to the demarcation point. CUSTOMER shall provide the following items for the CUSTOMER System service: 5.1 Provide the CITY access to the CUSTOMER's existing conduit system leading to the demarcation point inside the CUSTOMER location(s); 5.2 Provide the CITY access to the demarcation room for placement of necessary demarcation accessories and perform Scheduled or Emergency maintenance; 5.3 Bring its connecting optical fiber patch cords to the demarcation connection points; 5.4 Specify the type of optical connector needed at the demarcation termination point. The CITY shall install ultra SC type connector unless otherwise specified by the CUSTOMER; and 5.5 CUSTOMER shall be responsible for purchase, installation and maintenance of any and all electronic, optronic and other equipment, materials and facilities used by CUSTOMER on the CUSTOMER side of the demarcation points in connection with the operation of the CUSTOMER System, none of which is included in this IRU-02.1 Agreement. 2 6. The charges and application rules are identified in IRU-02.1-Schedule —B. A pro forma invoice setting forth a summary of the one-time nori-recurring fee elements and the base charges for the monthly recurring fee elements under the IRU-02.1 Agreement is attached hereto as IRU-02.1-Schedule-C. The payments and charges shall be in accordance with Section 26 of the Agreement and as specifically identified in the following subparagraphs: 6.1 CUSTOMER shall pay a one time advanced engineering fee of (waived) which payment is due upon receipt of CUSTOMER's written request for service and shall be credited against the connection fee. 6.2 CUSTOMER shall pay a one time construction and installation fee of (waived) which payment is due upon CUSTOMER acceptance. 6.3 One-time lateral connection charge of (waived) which payment is due upon CUSTOMER acceptance. 6.4 CUSTOMER shall pay quarterly IRU fee payments based on a monthly base rate of $680.00 with first quarterly payment due to the CITY upon CUSTOMER acceptance. 6.5 CUSTOMER shall pay one-time building or external network service connection and disconnection charges for each building service added or deleted after the initial establishment and cutover of a CUSTOMER System cable segment. One- time CUSTOMER service charges also apply if the CUSTOMER requires installation of a new distribution ring or concentrator in an already established Cable System or Customer System distribution cable segment, rearrangement of existing service connections, and rearrangement of a ring or concentrator operation. 6. All maintenance and repair functions on the CUSTOMER System and all facilities through which the CUSTOMER System passes, including, but not limited to, the CITY's Cable System, shall be performed by the CITY. 7.1 Section 4 of the Agreement applies. 7.2 CITY shall maintain the CUSTOMER System to the specifications provided in IRU-02.1-Schedule—D. 7.3 CITY shall provide to the CUSTOMER a twenty-four (24) hour a day, three hundred sixty-five (365) days per year, trouble -reporting telephone number. CUSTOMER shall provide the CITY a twenty-four (24) hour a day _trouble coordination telephone number. 7.4 Any impairment or, outage reasonably suspected to be caused by CUSTOMER System components on the CITY'S side of the demarcation point shall require a response from the CITY. During CUSTOMER System impairments or outages affecting CUSTOMER'S service, CITY shall keep CUSTOMER advised and updated. The CITY'S personnel will be on site no later than four (4) hours from notification by CUSTOMER of an impairment or outage materially affecting service. 7..5 CUSTOMER shall be charged with any false maintenance call outs at the standard CITY rate in effect at the time services are performed. The CITY'S rates in effect at the time of execution of this IRU-02.1-Schedule-A and are subject to change. 7.6 CUSTOMER shall be responsible for all installation, configuration, monitoring and maintenance associated with any CUSTOMER owned active electronics operating on the dark fiber leased strands located on the CUSTOMER side of the demarcation points. 7. The CITY will grant a credit allowance on monthly recurring IRU charges for service interruption calculated and credited in one (1) hour increments. A service interruption will be deemed to have occurred only if. 8.1 Service becomes unusable to CUSTOMER as a result of failure of CITY equipment, facilities, or personnel used to provide the service; and 8.2 The interruption is not the result of. 8.2.1 The negligence or acts of CUSTOMER or its agents, employees suppliers or contractors; 8.2.2 The failure or malfunction of non -CITY equipment, facilities, or system; 8.2.3 Any circumstances or causes beyond the control of the CITY; or 8.2.4 A service interruption caused by scheduled maintenance, alteration, or completion of such maintenance or alteration beyond normal time requirements. 8.3 Such credits will accumulate during a calendar year and be credited against the CUSTOMER invoiced service charge for the next quarter and will apply only to those segments experiencing the service interruption. 9. This IRU-02.1 Agreement, including IRU-02.1-Schedule-A IRU-02.1-Schedule-B IRU- 02.1-Schedule-C IRU-02.1-Schedule-D IRU-02.1-Schedule-E, which are attached are hereby incorporated into the Agreement, dated , 2004 and all of which constitutes the entire agreement between the Parties with respect to the subject matter. This IRU-02.1 Agreement cannot be modified except in writing signed by both Parties. 4 IN WITNESS HEREOF the Parties have executed and delivered this IRU-02.1 Agreement effective the day and year first above written: ATTEST: BRUCE V. MALKENHORST, City Clerk APPROVED AS TO FORM: ERIC T. FRESCH, City Attorney CITY OF VERNON By: LEONIS C. MALBURG, Mayor CUSTOnR r , .1, etXanme','JA,,t4A-,", �SQ-c Title:_dC [c E'S 1 1�)IF� /-i.CjAAkE By: 1,19AD. 19"66 Print Name bw. o,-F� Title: &en5 Q� IRU-02.1-SCHEDULE A IRU-02.1-Schedule-A MAINTENANCE AND REPAIR Charges for Time and Material Service The CITY shall perform maintenance service at the rates established below, which rates are subject to change. Unless specifically authorized by the CUSTOMER, no scheduled Maintenance will be performed outside of normal working hours, detailed below: Normal Working Hours 7:00 am. to 3:30 p.m., Monday through Friday (except for CITY observed holidays) Overtime Hours 6:00 a.m. to 7:00 a.m., and 3:30 p.m. to 12:00 midnight, Monday through Friday (except for CITY observed holidays) Holiday Hours and Special Call out Any time during a CITY observed holiday or any time during Saturday or Sunday, or any time between the hours of 12:00 Midnight and 6:00 a.m., Monday through Friday Hourly Rate $ 85.00 Hourly Rate $ 105.00 Hourly Rate $ 130.00 Charges will be made for travel time to the location where maintenance is to be performed. If maintenance carries over after 3:30 p.m. or any maintenance during holiday hours of special call out, charges will also be made for travel time from the said location. Charges will be for a minimum of two (2) hours for normal and overtime hours and for a minimum of four (4) hours for holiday hours and special call out. CITY Holiday Schedule: New Year's Day President's Day Veterans Day Independence Day Labor Day Lincoln's Birthday Columbus Day Memorial Day Thanksgiving Day and Day After Christmas Day Admission's Day All rate, charges, and holiday schedule are subject to change. A-1 IRU-02.1-SCHEDULE B IRU-02.1-Schedule-B DARK FIBER PRICING 1.0 APPLICABILITY: The schedule specifies that connection fees must be agreed upon by the customer prior to connection of its facilities or buildings to the City's dark fiber network Cable System. The schedule also specifies the monthly usage fees in return for the privilege of using the Cable System. 2.0 TERRITORTY: Within the limits of the City of Vernon. 3.0 FEES: The IRU Agreement Fees consist of: A) One-time non -recurring fee elements. They include: 1) Advanced En 'neerin Fees: The advanced engineering fee is a non-refundable fee required for Preparing an engineering study, which produces a detailed estimate of the cost and time required for the City to provide customers dark fiber connectivity. If the project is constructed, the advanced engineering fee will be credited against the connection fee. Advanced Engineering Fee $ 500.00 Special Condition By Estimate 2) Dark Fiber Lateral Connection Fees: The dark fiber lateral connection fee includes the cost of installing lateral connections and associated equipment as identified in the advanced engineering study. The lateral connection starts from an aerial or underground splice enclosure on the fiber backbone and terminates at the customer demarcation point. At the demarcation point, the City will place an accessible patch panel where the customer can have access to the terminated IRU dark fiber strands. 3) Construction and Installation Fees: If the point to point connection between the customer buildings cannot be installed in existing conduit, or attached to existing poles from the first demarcation point to the second demarcation point, then the customer may B4 IRU-02.1-Schedule-B request that the City install new poles, conduit and cable at the customer's sole expense. 4) Future re -configuration Fees requested by the customer: The reconfiguration fee includes the costs associated with the connection/disconnection/re-arrangement of the CUSTOMER System. The fee shall apply for the initial establishment and cutover of a customer's point-to-point or distribution Cable System (ring or segment). The customer shall pay for all services added or deleted, or rearranged subsequent to the cutover date and shall pay for all connection services. The fees are: Service Addition: $300.00 per strand Service Deletion: $150.00 per strand Service Re -arrangement: Project specific. 5) Other Fees.. 5.1 Early Termination Fees: Early termination of the Agreement is subject to the Termination Settlement Charges described in Section 8.8 of the Optical Fiber Use Agreement. 5.2 Annual Fee Adjustments: All fees are subject to annual consumer price index (CPI) adjustments at each anniversary of the effective date of the IRU Agreement. B) Monthly recurring fee elements. They include: 1) Building Entry Management Fees: The Building Entry Management Fee is a monthly recurring fee associated with the lateral cable management practices. It covers the routine and preventive maintenance practices associated with the lateral connections. The monthly fees are $100.00 per building entry. 2) Dark Fiber backbone IRU Fees: The table below describes the City Fiber Optic Backbone strand pricing for a point-to-point building connections. The monthly rate per strand varies depending on the system availability and other factors such as quantity of fiber strands requested, the length of the fiber path, and the topology. IRU-02.1-Schedule-B PRIMARY PATH PROTECT DUNDANT) PATH Fiber Ouantities First Mile per strand per month Additional miles per strand per month First Mile per strand per month Additional miles per strand per month 1-2 $ 180 $ 90 $ 90 $ 45 34 $ 140 $ 70 $ 70 $ 35 5-6 $ 100 $ 50 $ 50 $ 25 7-12 $ 40 $ 20 $ 20 $ 10 The discounted pricing applies when a customer signs up for more than one pair of fiber strands. Customer can sign up for a protect path point-to- point circuit to obtain physical redundancy in the Cable System for its primary path point-to-point circuit. The primary and protect path circuit end points terminate in the same demarcation point at each customer site. A complete circuit consists of two strands of a fiber optic cable terminated at each customer site demarcation point, there shall be two ports available each for the primary and protect paths for the customer to use. The following discounts aDplv: a) Route Length Discount: The Route length discount ranges from $0 to $90.00 per fiber mile per month. For the purpose of this IRU-02.1 Agreement, a "Route" is that portion of the Cable System that extends between the customer points of connections. The Route will include lateral extension into the customer building, as identified in IRU-02.1- Schedule-E. Route miles shall be actual number of fiber strand miles connecting customer connection points, identified as customer System. b) Fiber quantity discount: The discount for quantities of fiber leased on a specific -Route ranges from $0 to $140.00. c) Ring topology discount: The ring topology discount ranges from $0 to $135.00 per fiber mile per month. M IRU-02.1-SCHEDULE C IRU-02.1-Schedule-C SUMMARY IRU-02.1 Agreement INVOICE The summary IRU-02.1 Agreement Invoice provides a summary of all transactions of this IRU-02.1 Agreement. C.1 Transactions Invoice: ITEM Description IRU Fees I One-time Advanced Engineering Fee Waived 2 One-time Construction and Installation Fee Waived 3 One time Connection Fee Waived 4 Quarterly IRU-02.1 Base Charges $ 2,040.00 (March 2004 through May 2004) Total IRU-02.1 Agreement Fees $ 2,040.00 Note: Transaction invoices reflect the services purchased from the CITY by the CUSTOMER and shall be the amount due the CITY upon CUSTOMER acceptance. This invoice reflects no federal, state, or local taxes. Taxes, as may be appropriate, shall be added or invoiced separately. C-1 IRU-02.1-SCHEDULE D IRU-02.1-Schedule-D CABLE SYSTEM SPECIFICATIONS 1. General The CITY shall install and maintain the CUSTOMER System within the CITY'S Cable System in accordance with the criteria and specifications that follows: 2. Design Criteria The CITY will endeavor to keep the number of splices in a span to a minimum. 3. Optical Fiber Specifications The CITY will meet the optical specifications as detailed below for all cable installed for the Term of this Short Form IRU Agreement: Single Mode Fiber: Parameter_ Specifications Units Maximum attenuation, 1310nm 0.5 dB/Km Maximum attenuation, 1550nm 0.4 dB/Km Cladding diameter 125 +/- 3 um Core diameter 8.3 um Cutoff Wavelength 1250 +/- 100 mn Zero dispersion wavelength 1310 +/- 12 nm Maximum dispersion (1285-1330 run) 3.5 ps/(nm-km) 4. dice Loss Splice loss on CITY cables will average less than or equal to 0.15 dB for all splices the CITY makes under this IRU-02.1 Agreement. The 0.15 dB splice average will only apply to splices between cables of identical physical and optical properties (i.e., core and cladding dimensions, reflective index and optical loss characteristics). All splices shall be measured using bi-directional methods and averages. 5. End -to -End Attenuation Test Criteria The CUSTOMER System will be tested at both wavelengths specified for the installed cable type as specified below unless . otherwise stated in this IRU-02.1 Agreement: D-1 IRU-02.1-Schedule-D (Continued) Single Mode Fiber 1310 nm and 1550 nm The end -to -end attenuation test criteria will be based on the following formula: Maximum acceptable end -to -end attenuation = (A X Lx) + (0.15 X Nsp) + C Where: A = Max. attenuation at each wavelength as specified in Section 3 above Lx = Installed length of cable in kilometers (km) Nsp = Number of fiber splices in the cable sysem C = Connector/pigtail loss. The attenuation contribution of each pigtail with associated connector is considered to be 1.0 dB comprised of 0.85 dB connector loss and 0.15 dB- splice loss (pigtail to OSP cable splice). Therefore, C = 1.0 dB if the span is connectorized on one end and 2.0 dB if connectorized on both ends. 5j The parameters above are guaranteed unless otherwise specified 5.2 In the event that the fiber measured attenuation values change after the cable is installed and is degraded by 2db or greater than specified above, the CITY will perform corrective maintenance pursuant to IRU-02.1-Schedule - D of this original specified attenuation values. Analo2 Video The CITY will not warrant CUSTOMER analog video transmission within the foregoing system parameters. D-2 IRU-02.1-SCHEDULE E QI �i ►�i O r W z a C4 _U Ey O z O z a w 0 z m z ° Ir m W gyp` N 4 Ip W M C _o wJ 1 n m J n m f Y r ■ } ■ ■ z • J ■ ° O Y O o °z z o R ° D ¢ Y • i ILz � < c ¢ r Y o ] Y Y j Y < Q z 4 Y O Y J [ ZO < F • Y z ° ■ 6 Y Q ■ = C Y J¢ Z O Y O a > n Y YI B z [ r O 4 z o < z f ■ 3 J O N ■ A ■ yXj ] ¢ ¢ }°} <_ ■ r ¢ Y 4. O < Z < w • 01 o t O W O D moo J EXHIBIT B «B" TROUBLE -REPORTING PROCEDURE Exhibit `B" EXHIBIT `B" TROUBLE -REPORTING PROCEDURE The CITY maintains its fiber optic network (Cable System) in accordance with industry standards. Should a problem or trouble with the service arise, please call 323- 826-1461 (24 hours) to report trouble. This is the number of the CITY'S Technical Control Center (TCC). The TCC will inform the maintenance and management group of all trouble calls. The acting Maintenance Supervisor will initiate the indicated trouble into the restoral action and coordinate all restoration activity. The CUSTOMER can obtain the name and telephone number of the acting Maintenance Supervisor from the TCC at the time of trouble reporting. Upon clearance of the trouble, the TCC will notify the trouble -reporting location of clearance and reason for trouble. The CITY shall within four (4) hours of notification of the trouble -reporting be on site and begin investigating and correcting the reported condition. The CITY, at four- hour intervals, shall provide the CUSTOMER a report of progress or lack thereof in restoring the system to operation in accordance with the Customer System/Cable System Specifications of the Short Form IRU Agreement's Schedule-D. Exhibit "B" EXHIBIT C 6GC99 INSURANCE ENDORSEMENT FORMS EXHIBIT "C" A EXHIBIT C INSURANCE SCHEDULE Customer shall provide proof of insurance, including a standard certificate of insurance, in at least the following amounts and coverage (combined single limit permitted): I. Coverage and Limits Bodilv Iniury P_ ropgU Damage Hazards Each Person Each Accident Each Accident Automobile Liability Owned Automobiles $ 500,000 $1,000,000 $ 500,000 Hired Automobiles $ 500,000 $1,000,000 $ 500,000 Non -Owned Automobiles $ 500 000 $1 000 000 $ 500 000 Workers' Compensation $ Statutory Employers' Liabiliiv $1 000 000 per employer 11. Liabili General Liability $1,000,000 $2,000,000 $1,000,000 Premises Operations $1,000,000 $2,000,000 $1,000,000 Elevators (If Applicable) $1,000,000 $2,000,000 $1,000,000 Independent Contractors $1,000,000 $2,000,000 $1,000,000 Products - Completed Operations $1,000,000 $2,000,000 $1,000,000 Contractual Liabilitv $1 000 000 $2 000 000 $1,000,000 Umbrella Liability $2 Al 000 $2 000,000 $2,000,000 a . The general liability policy shall contain the following special endorsements which shall be noted on or attached to the standard certificate of insurance: I. An endorsement naming the City of Vernon, its officers, and employees as additional insureds under the policy. 2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or material reduction of coverage. 3. An endorsement providing coverage for all operations under this Agreement. 4. Such other endorsement as may be required by addendum hereto. b. In addition to the standard certificate of insurance, proof of liability coverage shall be furnished in the form checked below. X For each policy, a notarized letter from the underwriter or carrier certifying that the coverage and statements in the standard certificate of insurance (attached thereto) are true and correct and that the signator is an officer authorized to so certify. OR A copy of each policy certified by an officer of the underwriter or carrier and notarized. City will not accent the above proofs of insurance when certified by an insurance agent or broker. EXHIBIT "C"