Wired Telecommunications License and ROW Use Agreement
Extracted text (via pymupdf)
122315 characters
1
WIRED TELECOMMUNICATIONS LICENSE
AND
RIGHT-OF-WAY USE AGREEMENT
This Wired Telecommunications License ("License") and Right-of-Way Use
Agreement (“Agreement”) is effective as of this ___ day of __________, 20__ (the
“Effective Date”), by and between the City of El Mirage, an Arizona municipal corporation
(“City”) and Cablevision Lightpath LLC, a Delaware limited liability company (“Licensee”).
RECITALS
WHEREAS, Licensee has approached the City for a telecommunications license and
permission to use public right-of-way to enable it to provide services in the City subject to the
requirements of this License and Agreement; and
WHEREAS, City is authorized to regulate its streets, alleys, and public utility easements,
and to grant, renew, deny, amend, and terminate licenses for and otherwise regulate the
installation, operation, and maintenance of telecommunications facilities within the City's
boundaries pursuant to the City’s police powers, El Mirage City Code, and by virtue of federal
(47 U.S.C. § 253) and state statutes (including, but not limited to A.R.S. §§ 9-581, 9-582, and 9-
583), and other governmental powers and authority, which provide City authority over public
right-of-way; and
WHEREAS, City desires to reserve rights to construct, use, and allow others to construct
and use all manner of additional improvements in the public right-of-way, while granting
Licensee a License to install, operate, maintain, and repair its telecommunications facilities (i.e.,
cable containing bundles of multiple optical fibers) within the right-of-way; and
WHEREAS Licensee desires a wired telecommunications license and agrees to provide
and maintain accurate maps showing the location of its facilities in the City’s right-of-way and
other reasonable mapping requirements the City may establish from time to time to ensure
accurate information regarding the location of such facilities;
NOW THEREFORE, in consideration of the foregoing and the covenants and agreements
contained in this License and Agreement, and for other good and valuable consideration, the City
hereby grants to Licensee a License pursuant to the terms and conditions set forth herein.
AGREEMENT
SECTION 1. Definitions
ACC means the Arizona Corporation Commission.
A.R.S. means Arizona Revised Statutes.
2
Backbone means a high-speed network that interconnects smaller, independent networks and is
the through-portion of a transmission network (not the spurs that branch off).
Call means the operations required to set up or establish, maintain, and terminate or release a
connection through a telephone network in support of a communication between two or more
stations. A call comprises a sequence of events that begins when an end user at an originating
station initiates a call request to a switch that may work in conjunction with other switches to
establish a connection to an end user at a destination station, and concludes when one party
(user) terminates the connection.
Claim(s) means and includes losses, claims, damages, suits, actions, payments, judgments,
demands, expenses and costs, including, but not limited to, attorney's fees incurred through all
appeals.
Coarse Wavelength Division Multiplexing ("CWDM") is a variation of WDM that carries four
to eight wavelengths per fiber or more that is designed for short- to medium-haul networks
(regional and metropolitan areas).
Commercial Mobile Radio Services means two-way voice commercial mobile radio service as
defined by the FCC in 47 CFR 20.3.
Common Carrier means a private company offering interstate or foreign communication by wire
or radio or the interstate or foreign transmission of energy to the general public on a non-
discriminatory basis.
Conduit means a pipe of either metal, ceramic or plastic that protects buried cables.
Conduit System means any combination of Ducts, Conduits, Manholes, and handholes joined to
form an integrated whole.
Contractor means any person, firm, partnership, corporation, association or other
organization, or a combination of any of them, that performs services or provides goods relating
to this Agreement. Contractor shall include any subcontractor hired and/or used for the
performance of services or provision of goods relating to this Agreement.
Dark Fiber means fiber optic strands that are not connected to transmission equipment.
Dense Wavelength Division Multiplex ("DWDM") is a variation of WDM but with much
higher bandwidth and density. Using DWDM, up to 80 or more separate wavelengths or
channels of data can be multiplexed on a single optical fiber. Each channel carries a time
division multiplexed (TDM) signal. Since each channel can carry up to 2.5 Gbps, up to 200
billion bits per second can be delivered by the optical fiber simultaneously.
3
Duct means a single enclosed tube, pipe, or channel for enclosing and carrying cables, wires
and other Facilities.
Equipment means any tangible asset used to install, repair, or maintain Facilities in any ROW.
Facilities means the plant, equipment, and property used in the provision of communication and
telecommunication services and not owned by the City, including, but not limited to, poles,
wires, pipe, conduits, pedestals, antenna, and other appurtenances placed in, on, or under Public
Highways.
FCC means the Federal Communications Commission.
Fiber-Optic Network is a communication system consisting of an optical transmitter to convert
an electrical signal into an optical signal to send into the optical fiber, a cable containing bundles
of multiple optical fibers that are routed through underground conduits and buildings, multiple
kinds of amplifiers, and an optical receiver to recover the signal as an electrical signal.
Information Service means the offering of a capability for generating, acquiring, storing,
transforming, processing, retrieving, utilizing, or making available information via
telecommunications.
Inner-Duct means a pathway created by subdividing a Duct into smaller channels.
Intrastate Call means a call in a conventional circuit-switched network that originates and
terminates in a single state.
Interstate Call means a call in a conventional circuit-switched network that originates in one
state and terminates in a different state (or country).
Interstate Telecommunications Services Provider means a Telecommunications Corporation
that places underground or above ground Facilities in the Public Highway for interstate
telecommunications services.
Interstate Traffic means a communication or transmission that originates in any state, territory,
possession of the United States, or the District of Columbia and terminates in another state,
territory, possession, the District of Columbia, or Country.
Manhole means an enclosure, usually below ground level and entered through a hole on the
surface covered with a cast iron or concrete manhole cover, which personnel may enter and use
for the purpose of installing, operating and maintaining cable and fiber in a Conduit.
4
Multichannel Video System includes:
A.
A “cable system,” as the term is defined in Title VI of the Federal
Communications Act of 1934, providing service within the City;
B.
An “Open Video System,” as the term is defined in Title VI of the Federal
Communications Act of 1934, 47 U.S.C. § 573 and implementing regulations (47
CFR § 76.1500), providing service within the City;
C.
Any other system providing Multichannel Video Programming Services within
the City, where the service is transmitted in whole or in part via wires or lines that
are in or cross any ROW within the City. The preceding sentence shall apply
whether the provider owns, leases or otherwise obtains the right to use the wires
or lines, including wires or lines of a telecommunications provider used pursuant
to tariff or otherwise for that purpose;
D.
Any other system providing Multichannel Video Programming Services within
the City where a license or similar permission or approval from the City is
required under applicable law.
For purposes of this License “Multichannel Video Programming Services” means multiple
channels of video programming where some or all of the video programming is generally
considered comparable to programming provided by a television broadcast station or by a direct
to home satellite service. Multichannel Video Programming Services specifically includes but is
not limited to "cable service" as the term is used in Title VI of the Federal Communications Act
of 1934.
Parties shall collectively mean the City and Licensee.
Point of Presence (POP) means a telecommunications facility where network equipment is
located to be used to connect customers to a network Backbone.
Provider means a Telecommunications Corporation that constructs, installs, operates of
maintains telecommunications Facilities in the City Public Highways.
Public Emergency means any condition which, in the opinion of City officials, poses an
immediate threat to the lives or property of the citizens of El Mirage or others caused by any
natural or man-made disaster, including but not limited to, storms, floods, fire, accidents,
explosions, major water main breaks, hazardous material spills, etc.
Public Highway means all the roads, streets and alleys and all other public rights-of-way and
public easements of the City.
Public Service Corporation means a corporation engaged in furnishing gas, oil, or electricity for
light, fuel, or power; or in furnishing water for irrigation, fire protection, or other public
purposes; or in furnishing, for profit, hot or cold air or steam for heating or cooling purposes; or
engaged in collecting, transporting, treating, purifying and disposing of sewage through a
system, for profit; or in transmitting messages or furnishing public telecommunication services,
5
and all corporations other than municipal, operating as common carriers. However, a message
transmitting company is only a public service corporation if it is a common carrier.
Public Utility Easement means an easement or other real property right that is granted,
dedicated, reserved or otherwise conveyed for the use of utility facilities, regardless of the
language used in creating such right, and regardless of the inclusion of other authorized uses.
Right-of-way ("ROW") means an area of land, which by deed, conveyance, agreement,
easement, dedication, usage or process of law, is reserved or dedicated to the City for public
purposes, including, but not limited to, street, highway, alley, public utility, pedestrian walkway,
bikeway, or drainage.
Service Lateral means an underground facility that is used to transmit, distribute, or furnish
communications from a common source to an end-use customer.
Telecommunications means the transmission, between or among points specified by the user or
information of the user’s choosing, without change in the form or content of the information as
sent and received. However, the term does not include commercial mobile radio services,
pay phone services, interstate services, cable services, information services, or the leasing of
dark fiber for transmission purposes.
Telecommunications Corporation means any Public Service Corporation to the extent that it
provides telecommunications services in this state.
Telecommunications Services means the offering of telecommunications for a fee directly to the
public, or to such users as to be effectively available directly to the public, regardless of the
facilities used.
Wavelength Division Multiplexer ("WDM") means a device that combines optical signals from
multiple different single-wavelength end devices onto a single fiber. WDM carries two to four
wavelengths per fiber.
SECTION 2. Permission to Use Right-of-Way
2.1
Grant of License. Subject to the provisions of this Agreement, the El Mirage City Code,
and Arizona and federal law, City grants to Licensee permission through a telecommunication
license to use the designated “Use Area” portions of the ROW subject to and conditioned upon
Licensee's full, timely, complete, and faithful performance of all terms and conditions of this
Agreement.
2.1.1 Use Areas Defined. The Use Areas are the portion of ROW within the City's
corporate boundaries as shown on Exhibit A attached hereto and incorporated
herein by reference. The ROW is limited to the public street and alley rights-of-
way and public utility easements that are owned by City from time to time
comprising City's Public Utility Easement network. The land comprising the
ROW will decrease, increase, and otherwise change over time due to
abandonments, dedications, annexations, de-annexations, and other events that
6
affect the amount of land included in City's public utility ROW network
inventory. This Agreement does not allow Licensee to use ROW that is
abandoned, condemned, removed from the City's corporate boundaries, or is
otherwise no longer part of the City's public utility easement network. It is the
obligation of the Licensee to, from time to time, confirm that the Use Area is
City ROW.
2.1.2 Non-Use Areas. Licensee shall not use or occupy any area other than as
permitted pursuant to this Agreement or as may be mutually agreed between the
Parties. The Facilities shall be confined to the Use Areas. The Use Areas do not
include any third-party areas. Licensee agrees that its use of the third-party areas
is dependent upon third party permission, which permission is outside of the
control of the City.
2.2
Conditions of Grant; Permitted Uses. Licensee’s use and occupation of the ROW shall in
all respects conform to all and each of the following provisions:
2.2.1 Permitted Uses. Licensee shall use the portions of the ROW solely for the uses
allowed under this License and Agreement and shall conduct no other activity at
or from those designated portions of the ROW where it has permission to be. The
permitted uses are limited to the following:
2.2.1.1 Constructing, maintaining, repairing, and operating the Facilities as
described in this Agreement.
2.2.1.2 To the extent that any Fiber Optic Networks within the route within the
City carry intrastate and/or interstate Calls as referenced by A.R.S. §§ 9-
582 and 9-583, the City hereby grants Licensee a revocable and
nonexclusive Telecommunications License ("Nonexclusive License") to
run concurrently with the term of this Agreement. The permission granted
herein shall be limited to the Fiber Optic Network routes identified in the
map submitted to the City as part of Licensee's application and to future
expansions or extensions that are done by Licensee in accordance with
Section 12.
2.2.1.3 Such additional related uses for which City may give consent from time to
time. Such additional uses may only be conducted following City's giving
to Licensee notice of such consent. City may terminate or impose
conditions and limitations on such consent from time to time in City's sole
and absolute discretion.
2.3
Prohibited Uses. All other uses of the ROW are prohibited. Licensee may not allow
third parties to use the Facilities for any use that Licensee itself does not have the authority under
this License and Agreement to use the Facilities for. The Telecommunications License granted
by this Agreement does not allow Licensee to provide one-way transmissions by anyone directly
to customers or any other type of video programming or other programming or transmission that
may be subject to a cable television or video services system license or franchise. This License
7
does not allow a Multichannel Video System and/or the providing of Multichannel Video
Programming Services and the Parties agree that a separate agreement would be needed in order
to have such a system or to provide such services.
2.4
Facilities Limited. The authority to install and construct any Conduit System and/or
Fiber Optic Networks on City property granted herein authorizes Licensee only to install such
fiber as is necessary to construct and operate the infrastructure described in this Agreement in
order to provide the authorized services and does not authorize Licensee to install or construct
any Facilities not expressly provided for in this Agreement. Future expansions may be approved
by a site license, if determined appropriate by the City Engineer in his discretion, however, the
terms and conditions of this Agreement shall apply to any such expansion area and Licensee
shall provide to the City an updated Exhibit A depicting the area by map. Any expansion
requesting payment-in-kind of any nature in lieu of any part of the right-of-way use fee shall
require Council approval and amendment of this Agreement to specify the terms of payment.
2.5
Empty Conduit. To the extent that Licensee occupies the ROW with solely empty
Conduit and/or leased Dark Fiber and/or uses ROW to provide services other than
telecommunication services as defined by A.R.S. § 9-581, such use and/or occupation of the
ROW is subject to the terms and conditions of this Agreement and any applicable fees, permits
and laws.
2.6
Compliance with Applicable Law. Licensee shall comply with all applicable laws as
amended from time to time, including but not limited to, the El Mirage City Code and Arizona
and federal law in the exercise and performance of its rights and obligations under this
Agreement.
SECTION 3. Non-Exclusive Rights/Priority Rights
3.1
Non-Exclusive Grant. This grant is not exclusive, and nothing herein contained shall be
construed to prevent City from granting other like or similar grants or privileges to any other
person, firm or corporation, or to deny to or lessen the powers and privileges granted to the City
under the Constitution and laws of the State of Arizona.
3.2
Subject to City’s Use or Occupancy. Any and all rights granted to Licensee shall be
subject to the prior and continuing right of City to use the ROW exclusively or concurrently,
with any other person or persons, and to manage City's owned facilities. Any and all rights to
occupy the ROW granted to Licensee shall also be subject to all deeds, easements, dedications,
conditions, covenants, restrictions, encumbrances, and claims to title which may affect public
property. Nothing in this License shall be construed to grant, convey, create, or vest a perpetual
real property interest in land to Licensee, including any fee or leasehold interest, easement, or
any franchise rights.
3.3
Subject to Others' Use or Occupancy. Any right or privilege claimed pursuant to this
Agreement by Licensee for any use of any ROW shall be subordinate to: A) any prior or
subsequent lawful occupancy or use thereof by the City or any other governmental entity; B)
any prior lawful occupancy or use thereof by any other person; C) and to any prior easements
8
therein, provided however, that nothing herein shall extinguish or otherwise interfere with
property rights established independently of this Agreement.
3.4
Rights Reserved to City. There is hereby reserved to City every right and power
required pursuant to this Agreement to be herein reserved or provided by any lawful ordinance
and Licensee by its execution of this Agreement agrees to be bound thereby and to comply with
any lawful action or lawful requirements of the City in its exercise of such rights or power,
heretofore or hereinafter enacted or established. Neither the granting of any Agreement nor any
provision hereof shall constitute a waiver or bar to the exercise of any lawful governmental right
or power of City.
3.5
City's Modification Rights. Nothing in this Agreement shall be construed to prevent
the City from abandoning, altering, improving, repairing, or maintaining its Facilities and/or the
ROW, and for that purpose to require Licensee, at no expense to the City, to remove, relocate or
abandon in place Licensee's Facilities in order to accommodate the reasonable activities of the
City. The City shall not be liable for lost revenues sustained by Licensee, however caused,
because of damage, modification, alteration, or destruction of its Facilities in the ROW, when
such costs or lost revenues result from the construction, operation, and/or maintenance of City
facilities and/or the ROW, provided that the activities resulting in such costs or lost revenues are
conducted in accordance with applicable laws and regulations and do not result due to the City's
gross negligence or willful misconduct. City will give Licensee ninety (90) days’ notice of any
modification describe in this Section 3.5.
SECTION 4. Notice of Other Users
4.1
Third Party Contracts. Licensee may enter into contracts with unrelated third parties
(“Users”) in the ordinary course of Licensee's business for use of the Conduit Systems and/or
Fiber Optic Networks within the portions of the ROW subject to this Agreement. Such contracts
("User Contracts") shall be subject to all requirements and provisions of this Agreement and the
following:
4.1.1 No person shall transmit voice, video, or data over the Fiber Optic Networks or
otherwise use the Conduit System(s) except under a User Contract with Licensee.
4.1.2 Such Users shall not perform any construction, maintenance, repair or other work
of any kinds in the ROW related to the Fiber Optic Networks or Conduit
System(s) and the identity of such Users must be disclosed to the City upon
request but such information will be considered Confidential and Proprietary
under Section 31. All User Contracts shall prohibit such Users from performing
any construction, maintenance, repair, or other work of any description in the
ROW related to the Fiber Optic Networks or Conduit System(s), unless such
Users have an agreement with the City.
4.1.3 In the event the User Contract provides for the User to construct, install, operate
or maintain any portion of the Fiber Optic Networks or Conduit System(s) within
the route in the ROW, no such arrangement shall proceed until the User enters
into an Agreement with the City for use of the City's ROW.
9
4.2
Responsible for Third Party Users. Licensee shall cause to comply with this Agreement
all persons using the ROW through or under Licensee or this Agreement. Licensee is responsible
for any violations of this Agreement by persons using the ROW through or under Licensee or
this Agreement.
4.3
Dark Fiber Leases. Should Licensee lease Dark Fiber or Conduit to a User within the
ROW, Licensee shall inform the City within forty-five (45) business days of the location and
length of the Dark Fiber or Conduit route that is being leased through an indefeasible right of use
agreement or similar contractual arrangement. A pro-rated ROW use fee will be calculated from
the installation date to the anniversary date of the Agreement and such amount will be added on
to the annual fee that will be due on the anniversary date of the Agreement. This additional
footage will be added to any current leased Dark Fiber or Conduit footage and used in the
calculation of the total annual fee owed on the anniversary date of this Agreement. Identification
of the Dark Fiber lessee will be kept confidential to the extent allowed by law. If there is a public
records request for such information, City will contact Licensee to allow it an opportunity to seek
judicial relief to prevent the disclosure of the lessee's identity.
SECTION 5. Description of the Services and Routes
Licensee does not currently use its Fiber Optic Network in the City of El Mirage, but intends to
provide the following services after license approval: internet services, ethernet services, conduit
and dark fiber services.
SECTION 6. Regulatory Conditions Relating to Right-of-Way Usage
For purposes of this Agreement, whenever work is done in the ROW relating to any of the
Facilities, Licensee agrees that it is solely responsible for the acts, errors, omissions, and any
negligence of any or all of its Contractors and that the obligations of Sections 6 and 7 are
imposed on both Licensee and any of its Contractors, who will be considered Licensee's agents
and for whom Licensee will be responsible. Licensee will ensure that Licensee and its agents
comply with ROW use requirements as follows:
6.1
Registration. Licensee agrees to register with the City by completing an application or
renewal form and paying the applicable application fee.
6.2
Notice of Changes. Licensee shall file a proposed amendment to the registration before it
makes any change that would render the registration information incomplete or inaccurate. A
change of Licensee's name or address must be filed at least 10 days prior to the date the change
becomes effective; a change in the telephone number must be filed 10 days before the change
becomes effective.
6.3
Facilities Construction. Licensee is completely responsible for ensuring that its Facilities
are constructed, installed, operated and/or maintained in accordance with the El Mirage City
Code and established practices with respect to such ROW and easements such as the proper
permits being applied for prior to commencing any work and that the terms and conditions of
such permits are strictly follows.
10
6.4
Plan Approval. Licensee’s use of the ROW and easements under the control of the City
shall be according to plans approved by the City Engineer, provided that such approval shall not
be unreasonably withheld or delayed.
6.5
Interference Minimized. The Facilities to be constructed, installed, operated maintained,
upgraded, and removed hereunder, shall be so located or relocated as to interfere as little as
possible with traffic or other authorized uses within said ROW and easements. Any phases of
construction and/or installation relating to traffic control, backfilling, compaction, and paving, as
well as the location or relocation of said Facilities shall be subject to regulation by the City
Engineer.
6.6
City's Reserved Powers. Licensee and its agents shall be subject to the City's exercise of
such police, regulatory, and other powers as it now has or may later obtain. City shall have
continuing jurisdiction and supervision over any Facilities located within or on ROW. Daily
administrative, supervisory, and enforcement responsibilities shall be delegated and entrusted to
the City Manager or designee to interpret, administer, and enforce the provisions of this License
and Agreement.
SECTION 7. Plan Approval, Permits, and Inspection
7.1
Required Approvals. No Facilities shall be installed, constructed, located on, or attached
to any property within the City until Licensee has applied for and received approval for permits
from the City Engineer. Licensee shall be solely responsible for any and all acts, errors,
omissions and negligence of its Contractor(s) who are involved in the installation, construction,
maintenance, repair, location, relocation and any other activity involving Licensee's Facilities
subject to this License and Agreement. Additionally, Licensee and its Contractor(s) shall comply
with all other provisions of the El Mirage City Code, regarding streets and sidewalks, and other
applicable City and/or county regulations, as applicable. All rights hereunder are granted under
the express condition that the City shall have the power at any time to impose lawful restrictions
and limitations upon, and to make regulations as to Licensee's use of the ROW as may be
deemed best for the public interest, safety, or welfare to the same extent that such restrictions and
limitations are applied to all non-governmental users of the ROW.
7.2
Permits; Licenses. Licensee shall submit the applicable permit application(s) together
with the details, plans, and specifications for City review and approval, and pay all applicable
application, review and inspection fees prior to any and all construction work performed
pursuant to the rights granted under this Agreement. Licensee and/or its Contractor(s) shall abide
by all stipulations of all licenses and permits issued. If Licensee desires to change the location of
any portion of the Conduit System(s) and/or Fiber Optic Network(s), including any related
Facilities or Equipment, from that set forth in the initial Permit Application, Licensee shall apply
for and obtain approval for an amendment to the permit prior to installation or construction.
7.3
Multiple Permit Policy. The City may issue reasonable policy guidelines to all
licensees/users to establish procedures for determining how to control issuance of
engineering permits to multiple licensees/users for the same one-mile segments of their
Facilities. Licensee agrees to cooperate with the City in establishing such policy and comply
11
with the procedures established by the City Engineer or designee to coordinate the issuance of
multiple engineering permits in the same one-mile segments.
7.4
Approval; Denial. City will approve or deny such applications based on the availability
of space at the location sought by Licensee, safety, and other considerations in accordance with
the City's Code, applicable ROW construction regulations, and other applicable law. Licensee
and/or its Contractor(s) agree to comply with the terms of City-issued licenses and permits.
7.5
Construction Standards. Any new Conduit or other Facilities placed in the ROW will be
constructed using industry standards horizontal directional drilling and trenching construction
methods. Micro-trenching may also be allowed with permission from the City. If allowed, any
micro-trenching activity shall comply with the standards set forth in Exhibit C, which are
incorporated by reference into this License. Other material placed in the ground may include
concrete manholes and fiber optic cable, splice cases, tracer wire, grounding material, mule tape,
jet string, pull boxes, handholes, and conduit plugs and shall be installed in an organized fashion
approved by the City. Construction shall be in full compliance with Uniform Standard
Specifications and Details for Public Works Construction sponsored and distributed by the
Maricopa Association of Governments as amended (hereinafter referred to as "MAG"), any City
supplements to MAG, and the City of El Mirage encroachment and other permit regulations, as
may be applicable.
7.6
System Component Changes. If Licensee desires to change the components of any of the
Fiber Optic Network and such would require Licensee to obtain a permit, written approval of
such change must be obtained from the City Engineer.
7.7
Specifications. The City shall have the right to inspect all construction or installation
work performed subject to the provisions of this License and to make such tests as it shall find
necessary to meet City standards and the MAG Uniform Standard Specifications and Details for
Public Works Construction to ensure compliance with the terms of this License and other
pertinent provisions of law.
7.8
New System Installation. Any new Conduit system(s) and/or Fiber Optic Network(s)
shall be installed as agreed upon by Licensee and the City. If portions of this project will take
place on the major arterial streets in City, Licensee and City will work to minimize the
inconvenience to the citizens of City and others who use those major arterial streets impacted by
the project by developing segments of the project to be completed in sequence.
7.9
Minimal Interference with City Uses. Any Conduit systems and/or Fiber Optic
Network(s) to be constructed, installed, operated, and maintained under this Agreement shall be
located or relocated so as to not unreasonably interfere with traffic, existing utilities, existing or
future fire, emergency, or other Equipment, methodology, or technology (i.e., voice or other data
carrying receiving of transmitting equipment), or other authorized uses over, under, or through
said streets and public ways. If such unreasonable interference should occur, Licensee shall
immediately discontinue using the Equipment, methodology, or technology that causes the
interference until Licensee takes corrective measures to alter or eliminate such interference to the
satisfaction of City. Any such corrective measures shall be made at no cost to City.
12
7.10
Co-location. Licensee's installation of the Facilities shall be reasonably coordinated with
other utilities and City to accommodate opportunities for common installation along Licensee's
route as set forth in this Agreement. All installations of cable and/or fiber shall be in Conduit or
Inner-duct as reasonably approved by the City Engineer. Provided, however, nothing herein shall
require Licensee to incur any additional expense to accommodate common installations.
7.11
Facility Location Street Opening. Although the exact placement and location of any
additional Facilities shall be determined by City through the permit process, City has expressed
its desire to have any Facilities installed outside of the paved street areas whenever such location
is feasible and reasonable. Arterial streets shall not be bored unless approved by the City
Engineer. In the event that a street opening in new pavement or resurfaced pavement cannot be
avoided, Licensee agrees to pay a reasonable surcharge fee to cover damages and early
deterioration will be assessed for cutting new or resurfaced pavements according to all applicable
City standards, including, but not limited to City Code § 151.009. Once installation is complete,
Licensee shall restore the property, improvements or landscaping disturbed by Licensee or its
Contractors to a condition substantially comparable to the condition before the opening or
alteration in compliance with City standards, as applicable, and the restoration shall be
performed with due diligence within a reasonably prompt time.
7.12
Representative. Licensee shall also provide and identify a representative, such as a
project manager, who shall be the contact person for the City during any construction periods.
7.13
Neighbor Notification. Prior to the start of any construction work, Licensee shall provide
written notice to the businesses and/or residences adjacent to the work being done. If an
emergency requires activity without such written notice, Licensee shall use reasonable best
efforts to provide timely actual notice to the owners or other persons having lawful control of the
adjoining property.
7.14
Opening or Alteration. Whenever Licensee or its Contractors shall cause any opening or
alteration to be made for any purpose in any public streets, or public places, the opening or
alteration shall be completed and restored with due diligence within seven (7) business days, or
such time as allowed by the City Engineer. Licensee shall upon the completion of the opening or
alteration, restore the property, improvements, or landscaping disturbed to a condition
substantially comparable to the condition before the opening or alteration and in compliance with
any City standards, as applicable, and the restoration shall be performed with due diligence
within a reasonably prompt time.
7.15
Traffic Control
All traffic shall be regulated in accordance with MAG standards and applicable City policies and
regulations, with a plan for such traffic control provided to the City for review and approval.
Traffic control plans must be reviewed and approved by the City and may require a separate fee.
Licensee shall designate an American Traffic Safety Services Association (ATSSA) certified
individual who is well-qualified and experienced in construction traffic control and safety, to be
responsible for implementing, monitoring, and altering traffic control measures as necessary to
13
insure that traffic is carried through the work area in an effective manner and that motorists,
pedestrians, bicyclists, and workers are protected from hazard and accidents. Licensee shall have
full responsibility and liability for traffic control for work performed by Licensee or their
Contractors. City will make no payment for traffic control. In the event Licensee or its
Contractor(s) damage any traffic signal equipment, traffic signal conduit, loop detectors, and/or
circuits, it shall have them repaired immediately at its expense by an electrical contractor that has
had traffic signal experience which is approved by the City. Any damage caused by Licensee or
its Contractor(s) or subcontractors that are repaired by the City will be billed to Licensee at two
times the cost.
7.16
Clean Up/Return to Condition. Licensee and/or its Contractor(s) shall, during
construction and upon completion of the work, remove all temporary construction facilities,
debris, and unused materials provided for in the work, and keep the work site of the work and
ROW in a safe, neat and clean condition. Following maintenance or construction activities,
Licensee and/or its Contractor(s) shall restore all public and private property disturbed by the
work to the same or better condition than existed prior to the work, in accordance with City
standards.
7.17
Safety. Licensee and Licensee's Contractor(s) shall be solely and completely responsible
for the conditions of any job site where the infrastructure is being placed, including safety of all
persons (including employees) and property during performance of the work. This requirement
shall apply continuously and not be limited to normal working hours. Safety provisions shall
conform to all applicable federal (including OSHA), state, county, and local laws, ordinances,
codes, and regulations. Where any of these are in conflict, the more stringent requirement shall
be followed.
7.18
Blue Stake. Licensee and its Contractor(s) shall comply with A.R.S. §§ 40-360.21
through 40-360.32.
SECTION 8. Hazardous Substances
8.1
Applicable Law. Licensee's and its Contractor(s)' activities upon or about the ROW shall
be subject to the following regarding any hazardous or toxic substances, waste, or materials, or
any substance now or hereafter subject to regulation under the Comprehensive Environmental
Response Compensation and Liability Act, 42 U.S.C. §§ 9601, et. seq., the Arizona Hazardous
Waste Management Act, A.R.S. §§ 49-901, et. seq., the Resource Conservation and Recovery
Act, 42 U.S.C. §§ 6901, et. seq. or the Toxic Substances Control Act, 15 U.S.C. § 2601, et. seq.
or any other federal, state, county or local law pertaining to hazardous substances, waste or toxic
substances and their reporting requirements (collectively "Toxic Substances").
8.2
Toxic Substance Restrictions. Licensee and/or its Contractor(s) shall not produce,
dispose, transport, treat, use or store any Toxic Substances upon or about the ROW. The
prohibitions of the preceding sentence only shall not apply to:
8.2.1 Vehicle Use. Ordinary gasoline, diesel fuel or other fuels or lubricants necessary
for ordinary use in motor vehicles and ordinary construction machinery permitted
14
upon the ROW. Such materials must be properly and lawfully contained in
ordinary quantities in ordinary tanks and receptacles that are permanently
installed in such vehicles and machinery, or small portable tanks that are being
used for fueling permitted construction machinery.
8.2.2 Batteries. Electric backup batteries.
8.3
Disposal. Licensee and/or its Contractor(s) shall dispose of any Toxic Substances away
from the ROW as required by law and as reasonably required by City.
8.4
Use Restriction. Licensee and/or its Contractor(s) shall not use the ROW in a manner
inconsistent with regulations issued by the Arizona Department of Environmental Quality, or in a
manner that would require a permit or approval from the Arizona Department of Environment
Quality or any other governmental agency. The preceding sentence does not prohibit ordinary
permits for control of dust during construction permitted by this Agreement.
8.5
City Held Harmless. In addition to and without limitation of any other indemnities or
obligations, Licensee shall pay, indemnify, defend and hold City harmless against any loss or
liability incurred by reason of any Toxic Substance on or affecting the portion of the ROW used
that is attributable to or directly caused by Licensee, its Contractor(s) or anyone using the ROW
under this Agreement.
8.6
Notice to City. Licensee and/or its Contractor(s) shall immediately notify City of any
Toxic Substance at any time discovered or existing upon the ROW. Licensee is not responsible
for Toxic Substances that may exist at the ROW if Licensee's Contractors and/or any other
persons using the ROW under this Agreement did not do any of the following: (A) Participate in
the Toxic Substance coming to the ROW; (B) Fail to immediately report the Toxic Substance to
City; (C) Participate in spreading or otherwise disturbing the Toxic Substance; or (D) Exacerbate
the effects of the Toxic Substance or the difficulty or cost of dealing with the Toxic Substance.
8.7
Acknowledgement of Potential Toxic Substances. Licensee understands the hazards
presented to persons, property, and the environment by dealing with Toxic Substances. Licensee
acknowledges the possibility that the ROW may contain actual or presumed asbestos and other
Toxic Substances containing materials.
8.8
Notice of Violation. Within twenty-four (24) hours after any violation by Licensee
and/or by its Contractor(s) of this Agreement pertaining to Toxic Substances, Licensee shall give
City notice reporting such violation.
SECTION 9. On-Call Assistance
Licensee shall be available to staff employees of any City department having jurisdiction over
Licensee's activities twenty-four (24) hours a day, seven (7) days a week, regarding problems or
complaints resulting from the installation, operation, maintenance, or removal of its Facilities.
Licensee shall use reasonable efforts to respond to any issues within the time frames specified in
15
its service level agreements. Licensee shall make arrangements with a local entity to handle any
necessary problems or complaints.
SECTION 10. Mapping Requirement
10.1
As-Built Drawings. Licensee shall maintain As-Built Drawings of its Facilities located
within the ROW and furnish a copy both electronically (or in a mapping format compatible with
the current City electronic mapping format as specified by the City) and in hard copy form on an
annual basis or upon reasonable request by the City. Licensee shall create and maintain maps of
any of its Conduit System and/or Fiber Optic Network routes, new routes, and any above ground
Equipment located in the ROW and precise and verifiable horizontal and vertical location
information and will make this information available to the City. Licensee will also provide
surface-location marking of any of Licensee's Facilities that are located underground within any
public ROW within 10 business days of installation. The information provided by Licensee
under this section shall be accurate to the best of Licensee's knowledge. Licensee shall make
every reasonable effort to provide accurate and useful information. Licensee shall be permitted to
remove any information from the drawings provided hereunder that is not required for the City's
purposes or is otherwise confidential to Licensee.
10.2
Failure to Provide Updates. If complete updates are not provided in a compatible format,
Licensee shall pay the actual, reasonable costs the City incurs to update the City's electronic
mapping format due to the location or relocation of Licensee's Facilities.
10.3
Incorrect Format Records. In the event Licensee fails to supply records in the City
specified format and there is a cost to the City in converting Licensee provided files, Licensee
will be responsible for the conversion costs and will pay such costs within 30 days of the date of
the bill from the City invoicing the amount due.
10.4
Confidentiality. The files and drawings provided by Licensee to the City shall be
considered confidential and subject to the restrictions in Section 31 below and disclosed as a
public record only to the extent required by A.R.S. § 39-126.01.
SECTION 11. Relocation
11.1
Relocation Costs. Licensee shall relocate at no expense to the City any Facilities or other
encroachment installed or maintained in, on or under any public place or ROW, as may be
necessary to facilitate any public purpose and City project whenever directed to do so by City.
The City shall provide reimbursement only to the extent that may be mandated by applicable
state or federal law. Licensee shall not hold the City liable for failure to request or file a claim for
any funds for the relocation of the Licensee’s Facilities.
Within 90 days after service of notice by the City, Licensee shall remove the designated portions
of the Facilities, or in the event that, by the nature of the removal such removal cannot be
performed within the 90-day period, Licensee shall take reasonable steps to remove the Facilities
and diligently prosecute the removal to completion, and, if requested, restore the sidewalks and
other ROW to a condition comparable to the condition before the construction of the public
16
improvement at no cost and expense to the City. City agrees to cooperate with Licensee to
identify alternate locations where available within the ROW.
11.2
Relocation Permits. Licensee agrees to obtain a permit as required by this Agreement
prior to removing, abandoning, relocating or reconstructing any portion of its Conduit System(s)
or Fiber Optic Network(s) on public property or ROW. Notwithstanding the foregoing, City
understands and acknowledges there may be instances when Licensee is required to make repairs
that are of an emergency nature or in connection with an unscheduled disruption of the Facilities.
Licensee shall apply for separate permits for any maintenance work unless they have obtained an
annual “Blanket Permit” from the City.
11.3
City Self-Help. If the City needs to perform any part of the necessary relocation or
removal work that has not been done within the time required by the City, it shall be entitled to
seek payment for such relocation costs by drawing upon the letter of credit or security fund
required by this Agreement pursuant to Section 25.
11.4
Consent. Except as otherwise provided herein, City shall not, without the prior written
approval of Licensee, intentionally alter, remove, relocate, or otherwise interfere with any
portion of Licensee's Facilities unless otherwise allowed by this Agreement. Any written
approval required shall be promptly reviewed and processed by Licensee and shall not be
unreasonably withheld.
SECTION 12. Expansion or Extension of the Current Use Area
12.1
Approval Required. Any further expansion and/or extension of Licensee's Fiber Optic
Network and or empty Conduit placement shall require written approval from City, which may
be approved by a site license approved by the City Engineer so long as any expansion requesting
payment-in-kind of any nature in lieu of any part of the right-of-way use fee shall require
Council approval and amendment of this Agreement to specify the terms of payment.
12.2
Expansions Governed by this Agreement. Licensee agrees that such further expansions
and/or extensions shall be at all times governed by the terms and conditions of this Agreement.
12.3
Information Required. Requests for expansions and/or extensions should identify the
route, number of conduits, size of conduits, fiber count, and intended use.
SECTION 13. Damage to Public Property
13.1
Duty to Restore Damage. In addition to any indemnity obligation under this License and
Agreement, whenever the installation, use, maintenance, removal, or relocation of any of
Licensee's Facilities is required or permitted under this Agreement, and such installation,
removal or relocation damages or disturbs the surface or subsurface of any ROW or public
property or the public improvement located thereon, therein, or thereunder, however such
damage or disturbance was caused, Licensee, at its sole cost and expense, shall promptly restore
the surface or subsurface of the ROW or public property and/or repair or replace the surface,
subsurface and/or public improvement therein, or thereunder, in as good a condition as before in
17
accordance with applicable laws, normal wear and tear excepted, reasonably satisfactory to the
City Engineer. If Licensee does not repair the damage or disturbance as just described, then City
shall have the option, upon 10 days prior written notice to Licensee, to perform or cause to be
performed such reasonable and necessary work on behalf of Licensee and to charge Licensee for
the proposed costs to be incurred or the actual costs incurred by the City at City's standard rates.
13.2
Emergency Restoration. Notwithstanding the notice provision above, in the event of a
Public Emergency, the City shall have the right to immediately perform, without prior written
notice to Licensee, such reasonable and necessary work on behalf of Licensee to repair and
return public property to a safe and satisfactory condition in accordance with applicable laws,
normal wear and tear excepted, reasonably satisfactory to the City Engineer. The City shall
provide written notice to Licensee of the repairs as soon as practicable after the work has begun.
Licensee agrees that any severed City-owned Conduit and/or fiber must be completely repaired
or replaced to the nearest splice point. If the City needs to perform any part of the necessary
repairs, relocation and/or removal work, it shall be entitled to seek payment for such repairs,
relocation and/or removal costs from Licensee and may draw upon a bond and/or letter of credit
or security fund required by this Agreement in full or partial satisfaction of such costs, if
payment is not made by Licensee as required by Section 13.3 below.
13.3
Pavement Restoration Costs. Licensee agrees to restore the pavement and to reimburse
the City for all costs arising from the reduction in the service life of any public road for any
pavement cuts by Licensee pursuant to City Code, including, but not limited to, City Code §
151.009. Licensee agrees to pay within 30 days from the date of issuance of an invoice from
City. Failure to do so shall entitle City to draw upon the letter of credit or security fund and/or
performance bond.
13.4
Payment Deadline. Upon the receipt of a demand for payment by City, Licensee shall,
within 30 days, reimburse City for any costs.
SECTION 14. Public Emergency Disruption by City
City shall have the right, because of a Public Emergency, to sever, disrupt, remove, tear out, dig-
up, or otherwise damage and/or destroy Facilities of Licensee without any prior notice if the
action is deemed necessary by the City Manager, Fire Chief, Police Chief, City Engineer, or
Public Works Director. In such event, neither the City nor any agent, contractor, or employee of
the City shall be liable to Licensee, its Contractors or its customers or their parties for any harm
so caused to them or the Facilities, unless such damages are caused by City's gross negligence or
willful misconduct. When practical and if possible, City will consult with Licensee in advance
to assess the necessity of such actions and to minimize to the extent practical damage to and
disruption of operation of the Fiber Optic Networks. City shall inform Licensee of any actions
taken. Licensee shall be responsible for repair at its sole expense of any of its Facilities damaged
pursuant to any such action taken by City.
18
SECTION 15. Public Safety/Hazards
If any of Licensee's Facilities or activities present any immediate hazard or impediment to the
public, to the City, to other improvements or activities within or outside of the route area(s), or to
City's ability to safely and conveniently operate the ROW or perform City's utility, public safety
and/or other public health, safety and welfare functions, then Licensee shall immediately remedy
the hazard at no expense to City to remove any such hazard or impediment. If the Licensee's
response is delayed or the work cannot be completed within a reasonably practicable time, the
City may take action to remove any immediate hazard or impediment to the public.
SECTION 16. Contractors
The specific independent Contractors and/or subcontractors identified and used by Licensee for
the construction activities to expand and extend Licensee's Facilities and Service Area will need
to be approved by the City Engineer or designee prior to issuance of construction permit.
Approval shall not be unreasonably withheld, delayed, conditioned, or denied. Any Contractors
performing construction work within the ROW or public easements shall comply with licensing
requirements of the Arizona General Contractors. Licensee represents and warrants all
independent Contractors maintain coverages the same as all the requirements stated herein for
Licensee.
SECTION 17. Legal Workers
If, and to the extent A.R.S. § 41-4401 is applicable to this Agreement, Licensee shall comply
with laws regarding workers as follows:
17.1
Warranty of Compliance. Licensee warrants to City that Licensee and all of its
Contractors will comply with federal immigration laws and regulations that relate to their
employees and that there is compliance with the E-Verify Program under A.R.S. § 23-214.
17.2
Breach of Warranty. A breach of the foregoing warranty by Licensee shall be deemed a
material breach of this Agreement that is subject to penalties up to and including termination of
this Agreement.
17.3
Inspection of Records. City retains the legal right to inspect records to ensure
compliance with the warrant given above.
17.4
Warranty of Violations. Licensee shall indemnify, defend, and hold City harmless for,
from, and against all losses and liabilities arising from any and all violations of the warranty
given above.
SECTION 18. Effective Date and Validity of Agreement
Licensee shall acknowledge that as a condition of acceptance of this Agreement, Licensee was
required to be represented throughout the negotiations of the Agreement by its own attorneys and
Licensee had the opportunity to consult with its own attorneys about its rights and obligations
19
regarding the Agreement. Licensee acknowledges and accepts the right and authority of City to
execute this Agreement and to enforce the terms herein.
SECTION 19. Term of Agreement
The original term of this License and Agreement shall terminate 11:59 p.m. on the date prior to
the date that is the fifth (5th) annual anniversary of the Effective Date of this Agreement, unless
sooner terminated as set forth in this Agreement.
SECTION 20. Modification, Renewal, Extension
20.1
Renewal Process. At the end of the original Term, this License and Agreement shall be
renewed for an additional five (5) years ("Extension Term"), if Licensee has complied with the
License and Agreement's terms and conditions. Such Extension Term would expire at 11:59 p.m.
on the fifth (5th) anniversary of the beginning date of the Extension Term (same day and month
as the original Term's anniversary date), unless either party provides written notice of non-
extension to the other party at least ninety (90) days prior to the expiration of the Extension
Term.
20.2
Renewal Fee. The City’s renewal fee shall be paid at the time of the submission of the
application.
20.3
Agreement Changes. City shall have the right to renegotiate any of the terms that may be
required by applicable federal, state or local law or regulations. Licensee understands that the
City may adopt future code amendments and/or fee schedules relating to Facilities located within
the ROW, which may replace in its entirety the current fees and other costs imposed under this
Agreement. Licensee acknowledges the right of the City to adopt and implement such lawful
code amendments and/or fee schedules.
20.4
Holdover Term. If Licensee's Facilities remain in the ROW, and Licensee continues to
use such Facilities beyond the expiration of the license term and pay the annual fees, the License
shall be considered to be in a "Holdover Term," subject to the terms and conditions of this
Agreement. Such Holdover Term, however, shall not exceed sixty (60) days beyond the
expiration of the term or until the date of the first City Council meeting scheduled immediately
after the expiration of the term, and no permits will be issued to Licensee by the City until a new
License has been approved by the City Council.
20.5
Expiration of Holdover Term. Failure by Licensee to have a valid License and
Agreement to use the ROW by the expiration of the Holdover Term shall result in immediate
withdrawal and revocation of any existing permits issued by the City to Licensee and the
liquidated damages amount set forth in Section 33 shall apply. If, however, Licensee has timely
filed its application and is in active negotiations with the City prior to the expiration of the
License and Agreement, the City may, in its discretion, grant, extend, or take no action on
permits issued to Licensee prior to the expiration of the Agreement.
20
SECTION 21. Payments
21.1
No Rights Waived. By entering into this Agreement, neither party waives any current or
future rights reserved under the Telecommunications Act of 1996, including but not limited to,
those rights set forth in Section 253(c), reserving the City's right to manage the public ROW and
to require fair, non-discriminatory and reasonable compensation for use of the public ROW.
21.2
Payments to City. Licensee shall be solely responsible for payment to City as follows:
21.2.1 Application Fee. Licensee shall pay City an application fee in the amount of five
hundred dollars ($500.00) for the administrative costs involved in the issuance of
this License, which shall be due after execution of this Agreement at the time of
the submittal of the application.
21.2.2 Transaction Privilege Tax. Licensee will owe transaction privilege tax on any
qualifying services under the El Mirage City Code.
21.2.3 ROW Usage Fee for Provision of Interstate Telecommunications Services. A
Fiber Optic Network in the ROW that carries interstate traffic between and among
Licensee's interstate points of presence exclusive of the Fiber Optic Network used
by the local network and the portion of the interstate network that carries
intrastate calls is subject to an annual fee based on the number of linear feet of
trench in the ROW. The annual fee is $1.11 per linear foot of trench in the ROW,
which may be adjusted annually based on the United States Department of Labor,
Bureau of Labor Statistics, Consumer Price Index-All Urban Consumers, West
Region for All Items (CPI). If there is no increase in the CPI, the fee shall remain
what it was for the prior year. The term “per linear feet of trench” includes all
methods of installation including standard trenching, boring, micro-trenching, etc.
21.2.4 Compensation for Use of ROW. Licensee agrees to pay an annual fee for the
portion of the ROW used by Licensee for Dark Fiber or Conduit leasing to Users,
empty Conduit occupation of the ROW, and any other uses other than those
conforming to the definition of Telecommunication Services as defined in A.R.S.
§ 9-581. Unless a different calculation for fair and reasonable compensation is
agreed to by the City, the fee will be calculated at the same linear foot rate as in
Section 21.2.3 above.
21.2.4.1
Licensee warrants and represents that at the time of the execution of
this Agreement, it is not leasing Dark Fiber or Conduit to third party
Users within the ROW. In the future, should Licensee lease any of its
Dark Fiber or Conduits to a third-party User, Licensee shall
immediately notify the City of the location and footage of such leased
Dark Fiber or Conduit route(s) and pay a pro-rated linear foot fee that
is due for the length of such route(s), unless a different calculation for
fair and reasonable compensation is agreed to by the City.
21
21.3
Annual Payments. For any annual payment(s) owed, Licensee shall make such
payment(s) to the City within 30 business days of the Effective date of this Agreement and by
the anniversary of such Effective Date thereof for the duration of the term.
21.4
Arrearage. As of the date of this Agreement, the City agrees that Licensee has no
outstanding amounts owed to the City and will begin this Agreement in good standing.
21.5
Permit Fees. Licensee shall pay all applicable plan review and construction permit fees
to place Facilities in the ROW, which includes charges for encroachment permit applications,
traffic control plans, issuance, inspection, testing, plan review and any other fees adopted by City
and applicable to persons doing work and/or encroaching in the City's ROW pursuant to El
Mirage City Code.
21.6
Damage Fees. Licensee shall pay any reasonable costs associated with any damage
caused to the ROW or public property.
21.7
Pro-rated Fees. Within thirty (30) days after the issuance of a permit for the installation
of additional footage of Conduit(s), if such installation subjects Licensee to an annual fee
pursuant to Section 21.2.3 or Section 21.2.4 above (if applicable), Licensee will pay a pro-rated
portion of the annual fee, as adjusted, per linear foot for that section of its expanded route. The
prorated annual fee shall be determined by multiplying the annual footage fee, as adjusted, for
the year of payment, by a fraction, the numerator of which is the number of full months between
the month installation and the next following anniversary date of this Agreement and the
denominator of which is 12. In the event, Licensee cancels or returns a permit and does not
construct or install Facilities, which had been approved by such a permit, the footage fees
previously paid for ROW or public property used or occupied by Licensee shall be applied as a
credit toward any annual fee or refunded to Licensee by City.
21.8
Checks. Any checks should be sent to the City at 10000 N El Mirage Rd, El
Mirage, AZ 85335, or as otherwise directed by the City, Attn: Finance Department.
21.9
Interest. Licensee agrees that if it fails to pay any amounts owed to the City by the time
prescribed for payment, Licensee shall pay interest on the amounts owed, at the rate of one
percent (1%) per month. If the dispute is later resolved in favor of the City, Licensee will owe
the interest on the amount determined to be owed.
SECTION 22. In-Kind Payment as an Offset to Fees Owed
This section is not applicable.
SECTION 23. Taxes
Licensee shall pay any applicable City, county, and state transaction privilege and use tax. Such
taxes are in addition to any non-tax amounts owed by Licensee pursuant to Section 21. Licensee
consents to the disclosure of information reported on Licensee's transaction privilege tax returns
by authorizing the City's tax collector to release information to the City Manager or designee.
22
SECTION 24. Performance Bond
24.1
Bond Requirements. Prior to receiving any permit to construct, install, maintain or
perform any work on public property that requires a permit from the City pursuant to applicable
City codes, Licensee shall cause to be filed and maintain until either completion of the
construction or termination of this Agreement as determined by Licensee, a faithful performance
bond in favor of City in the sum of One Hundred Thousand Dollars ($100,000) or 125% of the
amount of the construction costs (whichever is greater) to guarantee that Licensee shall observe,
fulfill and perform each and every term of this Agreement. In case of any breach of any
condition of this Agreement, any amount of the sum in the bond, up to the whole thereof, may be
forfeited to compensate City for any damages it may suffer by reason of such breach. Said bond
shall be acknowledged by Licensee, as principal, and shall be issued by a surety with an AM
Best rating of A-VII or better for the last four quarters. City and Licensee agree that the process
and procedure for drawing upon, curing, and replenishing the performance bond shall be the
same as set forth below for the security fund and/or letter of credit.
24.2
Bond Release. If Licensee has completed the above construction and wants the bond
released, the City will need to inspect and approve the construction prior to such release.
However, a performance bond will be required for each subsequent or additional construction
project and/or work on public property.
SECTION 25. Security Fund
25.1
Deposit Required. Upon application for use of the ROW, but no later than five (5)
business days before this Agreement is submitted to the City Council for approval, Licensee
shall provide either a cash deposit or domestic irrevocable standby letter of credit to the City
Engineer in the initial amount of Fifty Thousand Dollars ($50,000) as a security fund that is in
a form as approved by the City Attorney. Said cash deposit or letter of credit shall be
maintained with the City for the term of this Agreement as security for the faithful
performance by Licensee of all the provisions of this Agreement, and compliance with all
lawful orders, permits and directions of any department or office of the City having jurisdiction
over its acts or defaults under this Agreement and any permit issued pursuant thereto, and the
payments by Licensee of any fees, claims, liens and taxes due the City which arise by reason of
the construction, operation or maintenance of the Facilities. Upon material default that remains
uncured (after written notice) for greater than 30 days the City shall have the full power of
withdrawal of funds from the cash deposit put into the security fund account or letter of credit
except that all interest accrued on any cash deposit shall be payable to Licensee on demand.
No withdrawals shall be made from the security fund account without the prior written
approval of the City Manager and 60 days prior written notice of intent to withdraw to
Licensee.
25.2
Withdrawal. Within 20 days after notice to Licensee that any amount has been
withdrawn by City from the security fund account or letter of credit, Licensee shall deposit a
sum of money sufficient to restore such security fund account to the original amount or present
to the City an additional irrevocable letter of credit in said amount so that the total amount of
funds available to the City is Fifty Thousand Dollars ($50,000).
23
25.3
Restoration of Deposit Amounts. If Licensee fails, within 10 business days of a
notice of intent to draw on either the security fund account or on the letter of credit, to either
dispute the notice in writing; or pay City any taxes or fees due and unpaid; or fails to repay to
City, within such 10 business days of such notice, any damages, costs or expenses which City
shall be compelled to pay by reason of any act or default of Licensee in connection with this
Agreement; or fails, within 30 days of such notice of failure by City to dispute the notice in
writing, or comply with any provision of this Agreement which City reasonably determines
can be remedied by an expenditure of funds from the cash deposit in the security fund account
or letter of credit, City may immediately withdraw the amount thereof, with interest from the
security fund account. Upon such withdrawal, City shall notify Licensee of the amounts and
date thereof.
25.4
Erroneous Withdrawal. Any funds that City erroneously or wrongfully withdraws shall
be returned to Licensee, within 30 business days of such a determination. If the Licensee
believes any funds have been erroneously or wrongfully discharged, the Licensee shall provide
written notice to the City and allow the City an opportunity to resolve the issue in good faith.
25.5. Rights Reserved. The rights reserved to City, with respect to the security fund account
and/or letter of credit, are in addition to all other rights of City whether reserved by this
Agreement or authorized by law, and no action, proceeding or exercise of a right with respect to
such security fund account or letter of credit shall affect any other right City may have.
SECTION 26. Insurance
26.1
Minimum Limits of Insurance. Licensee shall at all times during the term of this
Agreement, at its own cost and expense, carry and maintain for the mutual benefit of the City
and Licensee, general public liability insurance against claims for bodily injury, death or
property damage, products/completed operations and personal and advertising injury, which
insurance shall cover claims as may be occasioned by the operations, act, omission or negligence
of Licensee or its officers, agents, representatives, employees or servants during all times that
this License and Agreement is in effect. Insurance limits are inclusive of umbrella coverage.
Licensee shall maintain limits no less than those stated herein for each type of insurance.
26.2
General Requirements. Licensee's insurance, the types and amounts required in this
section, shall be from companies possessing a current A.M. Best, Inc. rating of A-VII, or better
and legally authorized to do business in the State of Arizona.
26.2.1 All insurance required herein shall be maintained in full force and effect until all
work or services required to be performed under the terms of this Agreement is
satisfactorily completed and formally accepted. Failure to do so may, at the sole
discretion of City, constitute a material breach of this Agreement and may result
in termination of this Agreement.
26.2.2 The insurance coverage, except workers' compensation, required by this
Agreement, shall name City, its agents, representatives, directors, officials, and
employees, as additional insureds, and shall specify that insurance afforded
Licensee shall be primary insurance, and that any self-insured retention and/or
24
insurance coverage carried by City, or its employees shall not contribute to the
coverages provided by Licensee. This provision and the naming of the City as an
additional insured shall not be construed as giving rise to responsibility or liability
of the City for applicable deductible amounts under such policy(ies).
26.2.3 The insurance policies shall contain a waiver of transfer rights of recovery
(subrogation) against City, its agents, representatives, officers, directors, officials
and employees for any claims arising out of Licensee 's acts, errors, mistakes,
omissions, work or service.
26.2.4 The insurance policies may provide coverage, which contain deductibles or self-
insured retentions. Such deductible and/or self-insured retention shall be assumed
by and be for the account of, and at the sole risk of Licensee who shall be solely
responsible for the deductible and/or self-insured retention. The amounts of any
self-insured retentions shall be noted on the Certificate of Insurance. Self-insured
retentions of up to One Million Dollars ($1,000,000) shall be accepted.
26.2.5 All policies shall contain an endorsement providing that the coverage afforded
under such policies shall not be reduced, canceled or allowed to expire until at
least thirty (30) days prior written notice has been given to City ten (10) days
prior to a written notice for non-payment of premiums.
26.2.6 Licensee shall be responsible for ensuring that the City is notified within the
above noted time period of the occurrence of any reduction in the insurance
coverage amounts, cancellation or expiration of any of the policies as required by
this License and Agreement.
26.2.7 Licensee shall include all Contractors as additional insureds under its policies or
shall furnish separate certificates and endorsements for each subcontractor. All
coverages for Contractors shall be subject to all the requirements stated herein for
Licensee.
26.2.8 City reserves the right to periodically review said insurance limits to ensure
coverage based on market and risk requirements throughout the effective term of
this Agreement.
26.3
Proof of Insurance-Certificates of Insurance.
26.3.1 Prior to or upon execution of this Agreement, Licensee shall furnish to City
Certificates of Insurance issued by Licensee's agent or broker, as evidence that
policies providing the required coverages, conditions and limits required by this
Agreement are in full force and effect and obtain from the City's Risk
Management Division approval of such Certificates. Such certificate(s) shall
include the endorsement listing the City as an Additional Insured pursuant to
Section 26.2.2 and shall be attached as Exhibit B to this Agreement.
25
26.3.2 If a policy does expire during the life of this Agreement, a renewal certificate
must be sent to the City prior to the expiration date. Failure to provide the City
with such a certificate, and failure by the City to demand the filing of such a
certificate before such a permit is issued, shall not be deemed to waive the
Licensee’s obligation to provide the insurance. The insurance certificate shall
remain in effect and be kept on file with the City until all work to be performed
by the permittee under the permit has been completed. When an encroachment
involves a permanent obstruction, the insurance certificate requirements shall
remain in effect until the construction is removed.
26.3.3 All Certificates of Insurance shall identify the required policies in effect on
behalf of Licensee, their policy period(s), and limits of liability. Coverage
shown on the Certificate of Insurance must coincide with the requirements in the
text of the Agreement documents. Information required to be on the Certificate
of Insurance may be typed on the reverse of the Certificate and countersigned by
an authorized representative of the insurance carrier or agent. Copies of the
initial Certificate of Insurance and any and all subsequent renewals that are
required under this Agreement shall be sent to:
City of El Mirage
Attn: Risk Manager
10000 N El Mirage Rd
El Mirage, AZ 85335
26.3.4. City reserves the right to request, within 10 business days, certified copies of any
or all of the herein required insurance endorsements. City shall not be obligated,
however, to review same or to advise Licensee of any deficiencies in such policies
and endorsements, and such receipt shall not relieve Licensee from, or be deemed
a waiver of City's right to insist on, strict fulfillment of Licensee's obligations
under this Agreement.
26.4
Required Coverage.
26.4.1 Such insurance shall protect Licensee from claims set forth below that may arise
out of or result from the operations of Licensee under this Agreement and for
which Licensee may be legally liable, whether such operations be by Licensee or
by a consultant or Contractor or by anyone directly or indirectly employed by any
of them, or by anyone for whose acts Licensee may be legally liable. Coverage
under the policy will be at least as broad as Insurance Services Office, Inc., policy
form CG 00 01 and CG 20 37 or equivalent thereof, including, but not limited to,
severability of interest and waiver of subrogation clauses.
26.4.2 Claims for damages because of bodily injury, sickness or disease, or death of any
person other than the Licensee's employees;
26.4.3 Claims for damages insured by usual personal and advertising injury liability
coverage;
26
26.4.4 Claims for damages, because of injury to or destruction of tangible property,
including loss of use resulting therefrom;
26.4.5 Claims involving contractual liability insurance applicable to Licensee's
obligations under the Indemnification Agreement subject to policy terms and
conditions.
26.5
Commercial General Liability – Minimum Coverage Limits. The Commercial General
Liability insurance required herein shall be written for not less than Five Million Dollars
($5,000,000) limits of liability. Any combination between general liability and excess general
liability alone amounting to a minimum of Five Million Dollars ($5,000,000) per occurrence and
an aggregate of Ten Million Dollars ($10,000,000) in coverage will be acceptable. The
Commercial General Liability additional insured endorsement shall be as broad as the Insurance
Services, Inc.'s (ISO) Additional Insured, Form B, CG 20 10 and CG 20 37, and shall include
coverage for Licensee's completed operations and products.
26.6
Worker's Compensation and Employer's Liability. Licensee shall maintain Worker's
Compensation insurance to cover obligations imposed by federal and state statutes having
jurisdiction over Licensee's employees engaged in the performance of the work or services; and
Employer's Liability insurance of not less than One Million Dollars ($1,000,000) for each
accident, One Million Dollars ($1,000,000) disease coverage for each employee, and One
Million Dollars ($1,000,000) disease policy limit. In case any work is subcontracted, Licensee
will require the Contractor to provide Worker's Compensation and Employer's Liability to at
least the same extent as required of Licensee.
26.7
Automobile Liability. If Licensee owns and/or operates vehicles in Arizona, Licensee
shall maintain Commercial/Business Automobile Liability insurance with a combined single
limit for bodily injury and property damage of not less than One Million Dollars ($1,000,000)
each occurrence, together with a Five Million ($5,000,000) umbrella overlaying that coverage,
with respect to any owned, hired, and non-owned vehicles assigned to or used in performance of
Licensee's work. Coverage shall be at least as broad as coverage Symbol 1, "any auto",
(Insurance Service Office, Inc. Policy Form CA 0001 0306, or any replacements thereof). Such
insurance shall include coverage for pollution for upset/overturn/collision of the automobile(s)
and loading and offloading hazards if hazardous substances, materials or wastes are to be
transported and, if so, a MCS 90 endorsement shall be included with coverage limits of Five
Million Dollars ($5,000,000) per accident for bodily injury and property damage. For
automobile liability insurance, contractors may require limits usual and customary for the
operations but no less than One Million Dollars ($1,000,000).
SECTION 27. Indemnity
27.1
Generally. Licensee acknowledges that it has liability for any and all of its Facilities
installed in the public ROW and for its use of the ROW and for its exercise of its rights under
this License and Agreement directly or through its Contractor(s), except to the extent of
intentional acts or gross negligence on the part of the City. To the fullest extent permitted by
law, Licensee, shall defend, indemnify and hold harmless the City, or its officials, boards,
27
commissions, agents or employees, individually and collectively, from and against any and all
Claims as defined in Section 1 arising out of or alleged to have resulted from or materially
related to the acts, errors, mistakes, omissions of Licensee, its employees, agents, or any tier of
Contractors or any other person for whose acts, errors, mistakes, or omissions Licensee may be
legally liable and from any Claims or amounts arising or recovered under workers compensation
laws or any other law, bylaw, or ordinance, order or decree related to any failure on the part of
Licensee, its agent, employees or representatives to fulfill Licensee's obligations under this
Agreement, whether resolution of the above Claim(s) proceeds to judgment or not. The
provisions of this paragraph shall survive termination of this Agreement. This indemnification
applies even if the party seeking damages makes a claim against the City or brings a claim
against the City based on vicarious liability or non-delegable duty.
27.2
Defense Costs. Licensee further agrees to indemnify and hold harmless the City, its
officers and its employees from and against all costs, damages, and expenses incurred by the
City, its officers and its employees in the defense of any litigation brought by third parties
challenging the right of the City to enter into this Agreement with Licensee under City or other
applicable law.
27.3
Tender of Defense. In the event that any notice of claim is served, or litigation is
commenced, City shall tender the defense of the litigation to Licensee, who shall immediately
defend the litigation. Licensee shall have the right to retain counsel of its own choice, to settle
all or any part of the litigation on terms acceptable to Licensee (and, where such terms directly
obligate or affect City, acceptable to City). Licensee agrees to keep the El Mirage City Attorney
informed of the status and progress of all litigation involving the City that has been tendered to
Licensee or its insurance carrier.
27.3.1 Notice. The Parties shall promptly notify each other in writing of any claims,
demands, or lawsuits which may involve the City and provide copies of all
relevant accident reports, incident reports, statements or other documents relevant
to or which may lead to relevant materials or information, in the possession of the
other party, its employees, agents, subcontractors, and/or others, promptly upon
request.
27.3.2 Relevant Information. Both Parties agree to make their employees, agents, and
Contractors available to the other party to gather any relevant information relating
to an incident in which claims, demands, or lawsuits arise from.
27.4
Construction of Interpretation. It is the purpose of this section to provide maximum
indemnification to City under the terms and conditions expressed and, in the event of a dispute,
this section shall be construed (to the greatest extent permitted by law) to provide for the
indemnification of the City by Licensee against any and all Claims. The sole exception shall be
an express determination by a court of competent jurisdiction upon full adjudication of the case
that the damages arose only from City's sole gross negligence or intentional acts. Only in this
event may Licensee then commence an action against City for damages related to that portion
judicially determined to be City's fault.
28
27.5
Survival. The provisions of Section 27 shall be and remain a binding right and obligation
of the City and Licensee. It is the intent of Licensee and the City upon the Effective Date of this
Agreement that this Section serves as any such declaration and shall be a binding obligation of
and inure to the benefit of Licensee and the City and their respective successors and assigns, if
any. Any failure by Licensee to indemnify the City as required under this Section 27 shall be
considered a material breach of this License and Agreement. Notwithstanding anything to the
contrary herein, Licensee shall not be obligated to indemnify the City on any provision of this
Agreement that is later determined to be invalid.
27.6
Insurance No Limit. The amount and type of insurance coverage requirements set forth
in this Agreement will in no way be construed as limiting the scope of the indemnity in this
Section 27.
27.7
Reformation. As a condition to Licensor's executing this Agreement, Licensee
specifically agrees that to the extent any provision of this paragraph is not fully enforceable
against Licensee for any reason whatsoever, this paragraph shall be deemed automatically
reformed to the minimal extent necessary to cause it to be enforceable to the fullest extent
permitted by law.
SECTION 28. Limitation of Liability
28.1
Limitation. The City and its officers, agents, elected or appointed officials, employees,
departments, boards and commissions, shall not be liable to Licensee or to its affiliates or
customers for any interference with or disruption in the operations of Licensee's Fiber Optic
Networks or the provision of services, or for any damages arising out of or materially related to
Licensee's use of the ROW, except to the extent of intentional misconduct or gross negligence on
the part of the City its officers, agents, elected or appointed officials, employees, departments,
boards and commissions.
28.2
No Liability for Agreement Enforcement. Licensee also agrees that it shall have no
recourse whatsoever against the City or its officials, boards, commissions, agents or employees
for any loss, costs, expense or damages arising out of or materially related to any provision or
requirement of the City because of the enforcement of this License and Agreement.
28.3
Assumption of Risk. Licensee shall assume the risk of, and hereby relinquishes any
claim against the City in connection with any final, non-appealable determination by a court of
competent jurisdiction that the City lacked the current statutory authority under Arizona law to
issue this License.
SECTION 29. Transferability of License and Agreement
29.1
Personal License. This License is personal to Licensee.
29.2
Transfer to Related Entity. Notwithstanding the foregoing, Licensee may transfer or
assign this Agreement to any affiliate entity under common corporate control, or to the surviving
entity in the event of a merger or acquisition of Licensee without City's prior consent. Licensee
shall however give notice to the City of any such transfer or assignment.
29
29.3
Transfer to Unrelated Entity. Any transfer or assignment for reasons other than provided
for in Section 29.2 above shall require the City's prior consent, which shall not be unreasonably
withheld, conditioned, or delayed provided that Licensee agrees that it will provide reasonable
documentation about the proposed transfer or assignment.
29.4
Transfer Conditions. In making a determination as to whether to approve a transfer or
assignment, the City may consider the following:
29.4.1 The same information required on an original application for the License.
29.4.2 Whether Licensee is in compliance with its License and El Mirage City Code and
if not, the proposed transferee's commitment to cure such noncompliance.
29.4.3 Whether the proposed transfer or assignment would result in an evasion of other
applicable provisions of law or impair lawful contracts.
29.4.4 The effect of the transfer or assignment on the City's interests.
29.5
Acceptance by Assignee. No application for a transfer of a license shall be granted
unless the proposed transferee or assignee agrees in writing that it will abide by and accept all
terms of the License and the El Mirage City Code and that it will assume all obligations,
liabilities, and responsibility for all acts and omissions, known and unknown, of Licensee under
the El Mirage City Code and this License for all purposes, including renewal.
29.6
Approval not Waiver. Approval of the City of a transfer or assignment of this License
does not constitute a waiver or release of any of the rights of the City, whether arising before or
after the date of the transfer or assignment.
29.7
Transfer Remedies. When consent is required, any transfer without City's consent shall
be void and shall not result in the transferee obtaining any rights or interests in, under or related
to this License and Agreement. City may, in its sole discretion and in addition to all other lawful
remedies available to City under this Agreement or otherwise, and in any combination, terminate
this Agreement, collect any fees owed from Licensee and/or declare the transfer to be void, all
without prejudicing any other right or remedy of City under this Agreement. No cure or grace
periods shall apply to transfers or assignments prohibited by this Agreement or to enforcement of
any provision of this Agreement against an assignee who did not receive City's consent.
29.8
Transfer Fee. Licensee shall pay to City in advance a nonrefundable fee for legal,
administrative and other expenses related to every transfer (other than the sale of publicly
traded stock) or to any request for a consent to transfer, whether or not City grants such
request, in an amount approved by City in its fee schedule.
SECTION 30. No Third-Party Beneficiaries
No person or entity shall be a third-party beneficiary to this Agreement or shall have any right or
cause of action hereunder. City shall have no liability to third parties for any approval of plans,
Licensee's construction of improvements, Licensee's negligence, Licensee's failure to comply
30
with the provisions of this Agreement (including any absence or inadequacy of insurance)
required to be carried by Licensee, or otherwise as a result of the existence of this Agreement.
SECTION 31. Records
31.1
Recordkeeping. During the entire term of this License and Agreement, Licensee shall
keep records and provide information to City regarding the following:
31.1.1 The status of the construction, repair, location or relocation of Licensee's
Facilities.
31.1.2 Information relating to any Fiber Optic Networks on portions of the route that are
not exempt from a fee imposed for occupation of the ROW.
31.1.3 Information relating to this License and Agreement and/or to City's or Licensee's
rights or obligations under this License and/or Agreement.
31.2
Record Form. Licensee shall make available to City the requested reports or records in
the formats in which they are customarily prepared by Licensee.
31.3
Inspection. If necessary for the City to determine Licensee's compliance with the terms
of this License and Agreement or other applicable law, Licensee shall provide relevant
documentation as requested by the City and respond to questions in a format and time period to
be decided by the Parties based on the nature of the request. Licensee shall also require its
employees, agents, and accountants to give their cooperation and assistance in connection with
City's access to such records.
31.3.1 Such documentation can include information on the type of services Licensee is
offering its customers (but not necessarily information disclosing any particular
service being provided to a specific customer) and/or the financial information
used in calculating any payments or taxes due to the City under this Agreement.
If Licensee determines that in order to respond to City's request for
documentation, it must reasonably provide Proprietary Information, Licensee
shall so mark such documentation as "Confidential."
31.3.2 Proprietary Information disclosed by Licensee to the City, or its constituent
departments shall be regarded as Proprietary as to third parties. If the City
receives a request to disclose such information, the City shall notify Licensee of
such request and allow Licensee a reasonable opportunity to defend its
information from disclosure.
31.3.3 Information that is already in the public domain shall not be considered
Proprietary Information. If public domain information is included with
Proprietary Information on the same document, the City shall only disclose those
portions within the public domain.
31
31.3.4 Notwithstanding any provision in this License, Licensee acknowledges and
understands that the City is subject to the disclosure requirements of Arizona's
Public Records Law (A.R.S. § 39-121 et seq).
31.4
Reports. Upon request and subject to any necessary confidentiality requirements,
Licensee shall provide to City copies of any communications and reports submitted by Licensee
to the FCC or any other federal or state regulatory commission or agency having jurisdiction in
respect to any matters directly affecting enforcement of this Agreement.
SECTION 32. Penalties for Violation of Terms
32.1
Cumulative Remedies. City may pursue any remedy at law, including but not limited to
injunctive relief, civil trespass, and withholding other City permits and authorizations until
Licensee complies with the terms of the License, Agreement or the applicable law. Such
remedies are cumulative and may be pursued in the alternative.
32.2
No Special Damages. Neither party will be liable under this Agreement for lost revenues
or indirect, special, incidental, consequential, exemplary, or punitive damages, even if the party
knew or should have known that such damages were possible and even if direct damages do not
satisfy a remedy.
SECTION 33. Liquidated Damages for Violations
33.1
No Reduction of Indemnity or Insurance. Licensee's obligation to pay liquidated
damages does not in any way detract from Licensee's indemnity and insurance obligations under
this Agreement, which shall apply according to their terms in addition to Licensee's obligation to
pay liquidated damages.
33.2
Liquidated Damages Calculated. Licensee understands and agrees that failure to comply
with any time and performance requirements in this Agreement or the requirements of the El
Mirage City Code will result in damage to the City, and that it is and will be impracticable to
determine the actual amount of such damage in the event of delay or nonperformance; therefore,
the Parties hereby agree to the liquidated damages specified below. The following amounts per
day or part thereof may be chargeable to the security fund for the following concerns:
33.2.1 Each failure to properly restore the public ROW or to correct related violations of
specifications, code ordinance or standards within 15 business days of having
been notified by the City to correct such defects – Five Hundred Dollars ($500)
per day. Such amount is in addition to any cost the City may incur to restore the
ROW or correct the violation.
33.2.2 Each failure to make Licensee's books and records available as required by this
Agreement and such failure continues for 15 business days after receipt of notice
of failure to provide from the City – Two Hundred Fifty Dollars ($250) per day.
33.2.3 Any unauthorized partial or total transfer of this Agreement – Four Thousand
Dollars ($4,000) per transfer.
32
33.2.4 Failure to provide a valid Certificate of Insurance as required by Section 26.2.2
that is not cured after five (5) days' notice – Fifty Dollars ($50) per day.
33.3
Assessment. If the City Engineer concludes that Licensee may be liable for liquidated
damages, the City Engineer shall issue to Licensee a Notice of Intention to Assess Liquidated
Damages and allow Licensee an opportunity to cure in the time period specified in Sections
33.2.1 through 33.2.4. The Notice shall set forth the nature of the violation and the amount of the
proposed assessment. Licensee shall pay the liquidated damage amount within 10 business days
of receipt, or the City shall deduct the amount from the security fund.
33.3.1 If, however, the liquidated damages exceed Five Thousand Dollars ($5,000), then
the following shall apply:
33.3.2 Licensee shall have 30 days of receipt of such notice to pay the liquidated damage
amount or give City notice contesting the assertion of noncompliance.
33.3.3 In the event that Licensee contests the City's assertion of violation or fails to
respond to the City's notice of intent to assess liquidated damages, City shall
schedule a public hearing to determine whether the liquidated damages were
properly assessed. City shall provide Licensee with at least 10 business days'
notice of such hearing, which shall specify the time, place, and purpose of the
hearing. At the hearing, Licensee will be given the opportunity to be heard and
present evidence. If the result of the hearing is that Licensee is responsible for the
liquidated damage amount, then the amount determined at the hearing will be due
10 days after the hearing decision is announced.
33.3.4 Licensee may appeal the outcome of the hearing to an appropriate court. Such
appeal to the appropriate court must be taken within 60 days after the issuance of
City's hearing decision. Otherwise, the outcome of the hearing shall be final and
conclusive.
SECTION 34. Revocation/Termination
34.1
Early Termination. The License granted hereunder may be revoked and/or the Agreement
terminated prior to its date of expiration by the City for the following reasons:
34.1.1 Licensee fails to comply with the material terms and conditions of the Agreement
or applicable law, including, but not limited to, failing to maintain any insurance,
security fund, letter of credit, and/or a performance bond.
34.1.2 Licensee fails to make payments in the amounts and at the time specified in this
Agreement after a final determination that the payments were owed.
34.1.3 Licensee ceases doing business in the City.
34.1.4 Licensee fails to provide current, accurate as-built plans and maps showing the
location of all Facilities installed or constructed in the City.
33
34.1.5 Licensee is or becomes insolvent or is a party to a voluntary or involuntary
bankruptcy, reorganization, or receivership case or proceeding, makes an
assignment for the benefit of creditors, is subject to other actions by creditors that,
in the reasonable, good faith opinion of the City, threaten the financial viability of
Licensee as a going concern, or if there is any similar action that affects
Licensee's capability to perform its obligations under this License and/or
Agreement.
34.1.6 Licensee fails to obtain or maintain any licenses, permits, or other governmental
approvals pertaining to the ROW or timely pay any taxes pertaining to the ROW.
34.1.7 A court has issued an injunction that in any way prevents or restrains Licensee's
use of any portion of the ROW and remaining in force for a period of at least 30
consecutive days.
34.2
Cure Period. Before terminating the Agreement under Sections 34.1.1, 34.1.2, 34.1.4,
and 34.1.6, the City Manager or a designee, shall give prior written notice to Licensee of the
defect in performance and give Licensee 60 days within which to cure the defect in performance.
34.3
Cure Period Waived for Misconduct. The City need not provide a 60-day cure period
prior to termination if the City finds that the defect in performance under the Agreement is due to
intentional misconduct, is a violation of criminal law, or is a part of a pattern of repeated and
persistent violations where Licensee has already had notice and opportunity to cure.
34.4
Manager Authority. The City Manager has the authority to terminate, subject to
Licensee's right to notice and cure where provided, this License and/or Agreement.
34.5
Hearing Prior to Revocation of License. Prior to the revocation or refusal to renew the
License, the City will hold a hearing if requested by Licensee.
34.6
Termination by Mutual Agreement. This License and/or Agreement may be terminated
prior to its date of expiration by Licensee by providing the City with 90 days written notice and
only upon making arrangements satisfactory with the City Engineer to remove all Licensee's
Facilities from public property and the ROW, unless the City Engineer agrees in writing to allow
Licensee to abandon part or all of its Facilities in place. If the City Engineer agrees to allow
Licensee to abandon its Facilities in place, the ownership of such Facilities, including everything
permitted by City to be abandoned in place, shall transfer to City and Licensee shall cooperate to
execute any documents necessary to accomplish such transfer within 30 days of such allowance
of abandonment.
34.7
Equipment Removal. Notwithstanding anything in Section 34.6 above, upon termination
of this Agreement, Licensee shall remove all of its optical repeaters, DWDM and CWDM
multiplexers, antennae, fiber optic cables, wires, and related equipment within ninety (90) days.
34
SECTION 35. Non-use/Abandonment of the Facilities
35.1
Removal on Abandonment. An "Abandoned Facility" will mean a Facility no longer in
service or physically disconnected from a portion of the operating Facility or from any other
Facility that is in use or still carries service. If Licensee ceases to provide services or abandons
use of any of its Facilities, upon cancellation or termination of the Agreement, Licensee shall
notify the City and may, subject to the City's approval, permanently abandon the Facilities in
place. In such event, the City, at its option, may acquire ownership of the Facilities. In lieu of
permanent abandonment, the City may require Licensee, to the reasonable satisfaction of the
City and without cost or expense to the City, to promptly remove the Facilities and to restore
the public property and ROW to a reasonable condition under the supervision of the City.
35.2
City Property. Upon permanent abandonment, if the City does not require removal,
Licensee shall submit to the City a proposal and instruments for transferring ownership to the
City. Any such Facilities, which are not removed as required by the City within ninety (90) days
of either such date of termination or cancellation or of the date the City issued a permit
authorizing removal, whichever is later, automatically shall become the property of the City.
Licensee will notify the Arizona Blue Stake Center to record the Facilities that have been
abandoned.
35.3
Title to Property. Title to any and all personal property installed by Licensee upon the
ROW that is not removed during the period set forth in Section 35.2 shall automatically vest in
City.
35.4
On-going Use. Nothing in Section 35.1 shall be deemed to require Licensee to remove
Facilities that the Licensee uses for the provision of services other than Telecommunications
Services or Interstate Telecommunications Services, so long as such use of Facilities for the
provisions of the ongoing other services is authorized by the City.
SECTION 36. Cancellation for Conflict of Interest
This Agreement is governed by A.R.S. § 38-511, which is incorporated herein by reference.
SECTION 37. Gratuities
City may, by written notice, terminate this Agreement, in whole or in part, if City determines that
employment or a gratuity was offered or made by Licensee or a representative of Licensee to any
officer or employee of City for the purpose of influencing the outcome of the procurement or
securing the Agreement, an amendment to the Agreement, or favorable treatment concerning the
Agreement, including the making of any determination or decision about Agreement
performance. City, in addition to any other rights or remedies, shall be entitled to recover
exemplary damages in the amount of three times the value of the gratuity offered by Licensee.
35
SECTION 38. Condemnation
38.1
Generally. The following shall govern any condemnation of any part of or interest in
the area used and/or occupied by Licensee and any conveyance to City or another condemnor
in avoidance or settlement of condemnation or a threat of condemnation:
38.1.1 Termination for Condemnation. This Agreement shall terminate as to the portion
taken on the date that is the earlier of the date title vests in the condemnor, or the
date upon which the condemnor is let into possession.
38.1.2 Power to Condemn. Licensee acknowledges that City and others from time to
time may sue and exercise its power to condemn the area used by Licensee or any
interest therein or rights thereto.
38.1.2.1
City reserves the right of condemnation or eminent domain over the
area used and/or occupied by Licensee. City does not warrant that it
will not condemn the area(s) used and/or occupied by Licensee during
the term of this Agreement, but City does not presently have intentions
to condemn such area(s).
38.1.2.2
City also reserves the right through its powers of eminent domain to
acquire all or any portion of the Facilities owned by Licensee in
accordance with the applicable conditions set forth in the Arizona
Revised Statutes. However, under no circumstances shall any
valuation be made for any right or privilege granted by this Agreement
should the City acquire the property of Licensee.
SECTION 39. Notice
39.1
All notices, which shall or may be given pursuant to this Agreement, shall be in writing
and transmitted through the U.S. certified or registered mail, postage prepaid, by means of
prepaid private delivery systems, or by facsimile or email transmission showing a valid delivery
receipt if a hard copy of the same is followed by delivery through the U.S. mail or by private
delivery systems, addressed as follows:
CITY OF EL MIRAGE:
City of El Mirage
Attn: City Engineer
10000 N El Mirage Rd.
El Mirage, Arizona 85335
36
With a copy to:
Pierce Coleman PLLC
Attn: Justin Pierce, Esq.
City Attorney
17851 N. 85th St Suite 175
Scottsdale, Arizona 85255
LICENSEE:
Cablevision Lightpath LLC
1111 Stewart Avenue
Bethpage NY 11714
Attn: Legal
legal@lightpathfiber.com
With copy to:
Cablevision Lightpath LLC
3638 E Southern Ave Suite 4
Phoenix, AZ 85040
Attn: Nat Tafuri, VP Construction
nat.tafuri@lightpathfiber.com
39.2
Notices shall be deemed sufficiently given and served upon the other party if delivered
personally or by facsimile or email transmission (provided with respect to facsimile or email that
such transmissions are received on a business day during normal business hours), the first (1st)
business day after deposit if sent by private delivery systems and the fifth (5) business day after
deposit in U.S. Mail.
39.3
Either party may from time to time designate any other address for this purpose by
written notice to the other party in the manner set forth above.
39.4
Licensee shall notify the City within ten (10) business days of any change in address.
SECTION 40. Governing Law
It is mutually understood and agreed that this Agreement shall be governed by the laws of the
State of Arizona. Any action at law, suit in equity, or judicial proceeding for the enforcement of
this Agreement shall be instituted only in Maricopa County, Arizona.
SECTION 41. Partial Invalidity
If any section, paragraph, subdivision, clause, phrase or provision of this Agreement shall be
adjudged invalid or unenforceable, or is preempted by federal or state laws or regulations, the
same shall not affect the validity of this Agreement as a whole or any part of the provisions of
this Agreement other than the part adjudged to be invalid, unenforceable or preempted.
37
SECTION 42. No Warranty
42.1
As to License. The issuance of a license, permit or other authorization by the City is not
a representation or warranty that such license, permit, or authorization is a legally sufficient
substitute for a franchise, and is not a representation of warranty that a franchise is not required.
42.2
As to ROW. LICENSEE ACKNOWLEDGES AND AGREES THAT CITY DOES
NOT WARRANT THE CONDITION OR SAFETY OF ITS ROW OR THE PREMISES
SURROUNDING THE SAME, AND LICENSEE HEREBY ASSUMES ALL RISKS OF
ANY DAMAGE, INJURY OR LOSS OF ANY NATURE WHATSOEVER CAUSED BY OR
IN CONNECTION WITH THE USE OF ANY CITY ROW.
SECTION 43. Non-Waiver
Neither party shall be excused from complying with any of the terms and conditions of this
Agreement by any failure of the other party upon any one or more occasions to insist upon or to
seek compliance with any such terms or conditions.
SECTION 44. Remedies Not Exclusive
The remedies set forth in this License and Agreement are not exclusive. Election of one
remedy does not preclude the use of other remedies.
SECTION 45. Force Majeure
With respect to any provision of this Agreement, the violation or non-compliance of which could
result in the imposition of a financial penalty, liquidated damages, forfeiture or other sanction
upon Licensee, such violation or non-compliance shall be excused where such violation or non-
compliance is the result of acts of God, war, civil disturbance, strike or other labor unrest, or
other events, the occurrence of which was not reasonably foreseeable by Licensee and is beyond
its reasonable control.
SECTION 46. Dispute Resolution
In the event of a dispute between the Parties regarding a provision of this Agreement, a Party's
performance of its obligations as stated in this Agreement or any other matter governed by the
terms of this Agreement, the Parties shall meet in good faith to attempt to resolve the dispute,
and may use mediation to facilitate such resolution, with any costs of mediation to be shared
equally by the Parties. If the dispute is not resolved within a reasonable time, the disputing
Parties shall be free to use other remedies such as litigation to resolve the dispute.
SECTION 47. Exhibits
All Exhibits referred to in this Agreement and any addenda, attachments, and schedules which
may, from time to time, be referred to in any duly executed amendment to this Agreement are by
such reference incorporated in this Agreement and shall be deemed a part of this Agreement.
38
SECTION 48. Survival of Liability
All obligations of Licensee and City hereunder and all warranties and indemnities of Licensee
hereunder shall survive termination of this Agreement.
SECTION 49. Complete Agreement
This Agreement, including any Exhibits, are incorporated into this Agreement and all of which
constitutes the entire agreement between the Parties with respect to the subject matter hereof and
supersedes any and all prior or contemporaneous agreements whether written or oral.
SECTION 50. Modification or Amendment
This Agreement cannot be modified or amended except in writing signed by both Parties.
SECTION 51. Incorporation of Recitals
The recitals set forth above are hereby incorporated into this Agreement by this reference as if
fully set forth herein.
[SIGNATURES ON FOLLOWING PAGE]
39
City of El Mirage, Arizona,
Licensee: Cablevision Lightpath LLC,
an Arizona municipal corporation
a Delaware limited liability company
By
By
Alexis Hermosillo, Mayor
Title:
ATTEST:
ATTEST:
Jill A. Boltz, City Clerk
Title:
APPROVED AS TO FORM
Justin Pierce, City Attorney
Pierce Coleman PLLC
40
EXHIBIT A
Map of Use Areas
The map will be kept on file in the City Clerk’s Office and will be released publicly only
pursuant to Section 31 of this License.
41
EXHIBIT B
Insurance Certificate
[See following page(s).]
Holder Identifier :
7777777707070700077761616045571110766606117214556207442137762407210072651577057321120726045442167551207477055273334442074626231325237640736005557005675207726055532076570076727242035772000777777707000707007
7777777707070700073525677115456000723101516137112007023337343172011071333273431730010703323724207311007123336252173000070233363530731100702233635207311007022227252073110077756163351765540777777707000707007
Certificate No :
570116318739
CERTIFICATE OF LIABILITY INSURANCE
DATE(MM/DD/YYYY)
10/22/2025
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on
this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE
DOES
NOT
AFFIRMATIVELY
OR
NEGATIVELY
AMEND,
EXTEND
OR
ALTER
THE
COVERAGE
AFFORDED
BY
THE
POLICIES
BELOW.
THIS
CERTIFICATE
OF
INSURANCE
DOES
NOT
CONSTITUTE
A
CONTRACT
BETWEEN
THE
ISSUING
INSURER(S),
AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
PRODUCER
Aon Risk Services Northeast, Inc.
Connecticut Office
800 Connecticut Ave
Norwalk CT 06854 USA
PHONE
(A/C. No. Ext):
E-MAIL
ADDRESS:
INSURER(S) AFFORDING COVERAGE
NAIC #
(866) 283-7122
INSURED
24554
XL Insurance America Inc
INSURER A:
22322
Greenwich Insurance Company
INSURER B:
INSURER C:
INSURER D:
INSURER E:
INSURER F:
FAX
(A/C. No.):
(800) 363-0105
CONTACT
NAME:
Cablevision Lightpath LLC
1111 Stewart Avenue
Bethpage NY 11714 USA
COVERAGES
CERTIFICATE NUMBER:
570116318739
REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.
NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY
PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY
HAVE BEEN REDUCED BY PAID CLAIMS.
Limits shown are as requested
POLICY EXP
(MM/DD/YYYY)
POLICY EFF
(MM/DD/YYYY)
SUBR
WVD
INSR
LTR
ADDL
INSD
POLICY NUMBER
TYPE OF INSURANCE
LIMITS
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE
OCCUR
POLICY
LOC
EACH OCCURRENCE
DAMAGE TO RENTED
PREMISES (Ea occurrence)
MED EXP (Any one person)
PERSONAL & ADV INJURY
GENERAL AGGREGATE
PRODUCTS - COMP/OP AGG
X
X
X
GEN'L AGGREGATE LIMIT APPLIES PER:
$1,000,000
$500,000
Excluded
$1,000,000
$2,000,000
$2,000,000
A
01/01/2025 01/01/2026
SIR applies per policy terms & conditions
US00085635LI25A
PRO-
JECT
OTHER:
AUTOMOBILE LIABILITY
ANY AUTO
OWNED
AUTOS ONLY
SCHEDULED
AUTOS
HIRED AUTOS
ONLY
NON-OWNED
AUTOS ONLY
BODILY INJURY ( Per person)
PROPERTY DAMAGE
(Per accident)
X
BODILY INJURY (Per accident)
$5,000,000
B
01/01/2025 01/01/2026
COMBINED SINGLE LIMIT
(Ea accident)
RAD943783008
EXCESS LIAB
X
OCCUR
CLAIMS-MADE
AGGREGATE
EACH OCCURRENCE
DED
$10,000,000
$10,000,000
01/01/2025
SIR applies per policy terms & conditions
UMBRELLA LIAB
A
01/01/2026
US00085636LI25A
RETENTION
X
X
E.L. DISEASE-EA EMPLOYEE
E.L. DISEASE-POLICY LIMIT
E.L. EACH ACCIDENT
$1,000,000
X
OTH-
ER
PER STATUTE
A
01/01/2025 01/01/2026
$1,000,000
Y / N
(Mandatory in NH)
ANY PROPRIETOR / PARTNER / EXECUTIVE
OFFICER/MEMBER EXCLUDED?
N / A
N
WORKERS COMPENSATION AND
EMPLOYERS' LIABILITY
If yes, describe under
DESCRIPTION OF OPERATIONS below
$1,000,000
RWD300133708
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
CANCELLATION
CERTIFICATE HOLDER
AUTHORIZED REPRESENTATIVE
City of El Mirage
Attn: Risk Manager
10000 N. El Mirage Rd.
El Mirage AZ 85335 USA
ACORD 25 (2016/03)
©1988-2015 ACORD CORPORATION. All rights reserved
The ACORD name and logo are registered marks of ACORD
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION
DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
42
EXHIBIT C
Micro-Trenching Standards
A. Micro-Trenching. Upon request from the Licensee, the City may allow micro-trenching.
Micro-trenching is a construction technique for placing micro-conduits and fiber optic cables.
The advantages of micro-trenching must be balanced with the impact that its use may have on
public highways defined by Arizona Revised Statues and City Code. Micro-trenching may not be
suitable for all types of roadways. Deployment will depend on the composition of the road and
the location of the buried infrastructure. If micro-trenching is allowed, all Sections of this Exhibit
and License must be adhered to.
B. Construction. Licensee must follow all City of El Mirage Notes and Details for micro-
trenching. All work performed shall be completed in compliance with the latest version of the
Uniform Standard Specifications and Details for Public Works Construction published by
Maricopa Association of Governments (MAG), any City supplements to MAG, the City’s
Design & Development Standards Manual (D&DS Manual) and City supplemental Notes and
Details. Licensee shall retain an independent testing company, approved by the City at its
reasonable discretion, to test all materials used for restoring the rights-of-way. The testing
company and materials testing methods are subject to, and shall be done in accordance with
MAG Standards and City supplements to MAG. The work cannot be accepted until all testing
results are reviewed and approved by the City. Material testing does not apply to materials that
will be owned by the Licensee.
Conduit restraining may be required due to shallow depth. Conduit restraining shall be
completed by backer rod to ensure conduit adheres to the bottom of the trench. Each portion of
backer rod used shall not exceed 6-inches in one location and no more than 12-inches total of
backer rod shall be used within a 5-foot section of trench. No metal shall be placed in a trench to
restrain the conduit.
Curb markers shall be placed on the curb to mark the location of the lateral service. Conduit shall
be installed separate from other existing utilities. For City utilities (water, wastewater,
interconnect conduit, etc.), the installation of the small diameter conduit shall maintain a 12-
inches vertical separation and a 6-foot horizontal separation.
After work is complete, the City shall notify the Licensee in writing if the backfill and/or over
band seal settles at any time, causing subsidence in the pavement ¼-inch or more, vertically
measured from the adjacent road surface, per MAG Section 336.2.4.1. During the entire term of
the License Agreement, the Licensee is responsible to safeguard and immediately repair
subsidence once it is determined that the subsidence was caused or as a result of the construction
by the Licensee.
C. Pavement Matching Modifications. The slurry seal coat as required by MAG Section 336
will not be required for the Licensee installing the micro-trench path, 10-inch diameter or small
core for junction with service lateral, and 10-inch diameter or smaller potholes that reside in the
micro-trench path due to the asphaltic sealant material, also known as the over band seal, placed
over the entire top of the micro-trench, lateral service, and potholes. The over band seal must
43
meet MAG Specification 337 to be exempt from MAG Specification 336.2.2. Micro-trenching
will be subject to comply with the pavement restoration requirements for cutting pavement as
outlined in Section 151.009 of the City Code. The City requires all pavement cut requirements to
have an approved permit and be restored in accordance with City standards and specifications.
Section 151.009 and the City’s latest version of the Fee Schedule establishes a requirement to
pay pavement restoration fees for cutting pavement with the established rate structure is based on
pavement age and size of cut or pavement disturbance. For additional information, please review
the City’s Pavement Cut Policy within the D&DS Manual. All micro-trenches placed within the
limits of the City’s bike lane will require the contractor to mill and pave the bike lane and replace
all markings within the limits of the micro-trench.
D. Notes and Details. All micro-trenching must strictly adhere to the notes and details
provided in City Details EM-172-1 through EM-172-8. The City Engineer or designee may, in
his/her sole discretion, approve alternative requirements and specifications based on specific
findings that the proposed alternative: i) will provide an equivalent level of service for the health,
safety and welfare for the general public, and ii) adequately protects public and private property,
and iii) would not unreasonably increase the City’s future maintenance or replacement costs; and
iv) is not otherwise contrary to public interest.
E. City Roadway Projects and Maintenance. When the City has a project that includes any
roadway reconstruction, alteration, widening, maintenance, etc. in the vicinity of a Facility
installed via micro-trenching by the Licensee, the City will alert the Licensee as soon as
reasonably practicable to allow the Licensee to plan for the removal and/or relocation of the
Facility. Licensee shall remove and/or relocate at no expense to the City any Facilities or other
encroachment installed or maintained in, on or under any public place or ROW whenever
directed to do so by City.
Within 90 days after service of notice by the City, Licensee shall remove and/or relocate the
designated portions of the Facilities, or in the event that, by the nature of the removal such
removal cannot be performed within the 90-day period, Licensee shall take reasonable steps to
remove the Facilities and diligently prosecute the removal to completion, and, if requested,
restore the sidewalks and other ROW to a condition comparable to the condition before the
construction of the public improvement at no cost and expense to the City. City agrees to
cooperate with Licensee to identify alternate locations where available within the ROW.
F. Projects by Others. The City has no obligation to notify public or private entities about
the Licensee’s Facilities within the ROW. The Licensee is solely responsible for ensuring that its
Facilities are properly blue-staked or otherwise marked in the field prior to the start of any
construction.
G. Fees. The fees for micro-trenching are the same as those outlined in the License including
the cost per linear foot of trench referred to in Paragraph 21.2.3.