HomeMy WebLinkAboutVERIZON, INC - 2004-07-19 CITY OF HUNTINCTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY.CLERK
-
JOAN L. FLYNN
CITY.CLERK
LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
DATE: 7 l ZL/0 L/
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Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item.
Remarks:
tity Clerk
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Council/Agency Meeting Held: 0
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied LP'W7 Ci y lerk' Sign re
Council Meeting Date: July 19, 2004 Departmen D Number: PW 04-066
CITY OF HUNTINGTON BEACH X= 5
REQUEST FOR ACTION
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SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL EMBERS -
SUBMITTED BY: PENELOPE CU RET�- F':�74_, "CityAinis r
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PREPARED BY: ROBERT F. BEARDSLEY, PE, Director of Public Works /
SUBJECT: APPROVE REIMBURSEMENT AGREEMENT WITH VERIZON, INC.
FOR FIBER TO THE PREMISES (FTTP) PROJECT
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis, Environmental Status,Attachment(s)
Statement of-Issue:
Verizon, Inc. (Verizon) is embarking on a major project to upgrade its telecommunications
infrastructure by installing fiber-optic cables throughout the City of Huntington Beach. A
Reimbursement Agreement between the City and Verizon has been prepared to cover the
costs to Public Works of engineering plan review, permit issuance, and field inspection
associated with Verizon's Fiber to the Premises (FTTP) project.
Funding Source:
No net cost to the City. An initial deposit amount of $120,000 will be invoiced against and
replenished at established intervals.
Recommended Action: Motion to:
Approve and authorize the Mayor and City Clerk to execute the Reimbursement Public
Works Agreement between the City of Huntington Beach and.Verizon, Inc. for Costs Incurred
for Fiber to the Premises Project.
REQUEST FOR ACTION •
MEETING DATE: July 19, 2004 DEPARTMENT ID NUMBER: PW 04-066
Alternative Action(s):
The City Council may elect not to approve the Reimbursement Agreement. If so, Verizon
will not pay the costs for staff and outside consultants to review engineering plans, issue
permits, and perform field inspections associated with the FTTP project separate from
normal procedures. As a consequence, the FTTP project will not be able to proceed
within the time frame desired by Verizon.
Analysis:
Verizon is embarking on a major project to upgrade its telecommunications infrastructure
by installing fiber-optic cables throughout the majority of the City of Huntington Beach.
Approximately 140 miles of fiber-optic cabling is to be installed to serve residential and
commercial users. Aerial cables will be installed where existing utility lines are overhead
and cables will be installed in subsurface conduits where existing utilities are underground.
The magnitude of the FTTP project greatly exceeds Verizon's normal activities for
maintaining, repairing, and upgrading its facilities in the public rights-of-way. The City and
Verizon recognize that the Public Works Department staff needs to be augmented by
additional personnel from outside consultants for engineering plan review, encroachment
permit issuance, and field inspection to be handled in a timely manner.
The proposed Reimbursement Agreement is the mechanism by which Verizon will pay for
the City's costs associated with the FTTP project in a manner separate from the normal
permit processes. An initial deposit of $120,000 has been made to cover such costs.
Quarterly invoicing and payments will occur, with additional deposits to be made when the
balance falls below $40,000. The estimated cost for a nine-month period totals $350,000.
The work for the City will be substantially performed by outside consultants augmenting
staff. Personnel from two private engineering consulting firms, 1) Willdan and 2)
Engineering Resources of Southern California, will augment the Public Works Department
staff for the FTTP project.
Similar reimbursement agreements have been successfully used in the past for projects
that imposed an extraordinary workload on staff. An example is the reimbursement
agreement with Makar Properties for the Pacific City project approved by the City Council
on December 16, 2002.
Public Works Commission Action:
Not required.
Environmental Status:
G:\R C A\2004\04-066 July 19 Elliott(Reimbursement Agmt for Verizon FTTP).doc -2-
7/1/2004 8:16 AM
• REQUEST FOR ACTION '
MEETING DATE: July 19, 2004 DEPARTMENT ID NUMBER: PW 04-066
Environmental Status:
Categorically exempt from the California Environmental Quality Act pursuant to Class 2,
Section 15302.
Attachment(s):
City Clerk's
Page Number No. Description
1. Reimbursement Agreement
RCA Author: Elliott/Pickart:jg
GAR C A\2004\04-066 July 19 Elliott(Reimbursement Agmt for Verizon FTTP).doc -3-
6I30I20041:44 PM
ATTACHMENT # 1
/C7'LK :S
REIMBURSEMENT—PUBLIC WORKS - AGREEMENT BETWEEN THE
CITY OF HUNTINGTON BEACH AND
VERIZON INC. FOR COSTS INCURRED FOR
FIBER TO THE PREMISES PROJECT
THIS AGREEMENT ("Agreement") is made and entered into by and between the City of
Huntington Beach, a municipal corporation of the State of California, hereinafter referred to as
"CITY," and VERIZON CALIFORNIA, INC. a California corporation hereinafter referred to as
"VERIZON."
WHEREAS, VERIZON is proposing to install communications infrastructure within the
City of Huntington Beach known as "Fiber-to-the-Premises," hereinafter referred to as "FTTP"
Project; and
VERIZON is required to submit applications to CITY for approval of various discretionary
matters, such as entitlements, land use approvals and encroachment permits for public right-of-way;
and
VERIZON desires that all entitlements, land use approvals and encroachment permits for
public right-of-way be processed as soon as possible; and
VERIZON desires to have CITY commit sufficient resources to enable the expeditious
processing of applications and other necessary documentation; and
Pursuant to California Government Code Sections 500.30, and 87103.6 and Utility Code
Sections 7901 and 7901.1, VERIZON is allowed to defray the cost of processing development
applications and entitlements by reimbursing CITY for such costs,
NOW, THEREFORE, in consideration of the promises and agreements hereinafter made and
exchanged, the parties agree as follows:
04agree/verizon reimbursh/26/04 1
1. PAYMENT
VERIZON agrees to reimburse CITY for its professional planning and engineering
permit review services as follows:
A. VERIZON will make an initial payment to CITY in the amount of One
Hundred Twenty Thousand Dollars ($120,000.00) (hereinafter the "Amount of Deposit") on
the first day of each third month. Thereafter, VERIZON shall replenish the Amount of
Deposit by paying to CITY an amount equal to the amount paid to CITY for professional
planning and engineering permit review services funded by this Agreement (the "Quarterly
Payment"). The parties acknowledge that the Amount of Deposit will be used to pay the
professional planning and engineering permit review services funded by this Agreement,
and if, prior to the payment of any Quarterly Payment, the Amount of Deposit is less than
Forty Thousand Dollars ($40,000.00), VERIZON shall make the next Quarterly Payment
within ten (10) days' notice from CITY. VERIZON acknowledges that the amount
referenced in this Agreement is the CITY's best estimate of the costs for the services
described herein, and that the actual cost of said services may be higher. In the event that
the actual cost of said services exceeds the estimated costs, VERIZON agrees to pay the
actual cost within ten (10) days after receiving CITY's invoice for same. In the event the
actual costs of Reimbursement Services are less than the estimated costs, CITY will refund
the difference between the actual and estimated costs.
B. The estimated cost to cover twelve (12) months of professional services from
January through December 2004 is Three Hundred Fifty Thousand Dollars ($350,000.00).
C. A late payment fee of ten percent (10%) will be assessed if CITY receives
any payment later than the thirtieth (30`h) day after that payment is due but unpaid. In
04agree/verizon reimburs/5/26/04 2
addition, one and one-half percent (1'/2) interest per month shall be added for each month the
payment hereunder is due but unpaid.
2. STATEMENT OF INTENT
The amounts reimbursed to CITY pursuant to this Agreement will help defray
CITY's cost-of the professional.planning and engineering permit review services required to process
VERIZON's various development applications and entitlements as set forth herein.
3. EXCLUSIVE CONTROL BY CITY
CITY will maintain exclusive control over the work described herein. Nothing in
this Agreement:
A. Shall be deemed to require CITY to approve any plan, proposal, suggestion,
application or request submitted by VERIZON.
B. Shall be deemed to limit, in any respect whatsoever, CITY's sole authority to
direct and control the planner(s) and engineer(s) assigned to VERIZON's various
development projects.
C. Shall be deemed to impose any liability on CITY different from any liability
as may otherwise be established by law.
4. CITY EMPLOYEES AND OFFICIALS
VERIZON shall employ no CITY official nor any regular CITY employee in the
work performed pursuant to this Agreement. No officer or employee of CITY shall have any direct
financial interest in this Agreement.
5. TIME IS OF THE ESSENCE
CITY agrees that time is of the essence for the performance of the work to be funded
pursuant to this Agreement and therefore, thirty (30) days prior to each quarterly invoice,
04agree/verizon reimburs/5/26/04 3
VERIZON shall submit a list of activities to be performed by the CITY for approval by the Director
of Public Works or his/her designee.
6. TERMINATION OF AGREEMENT
Either party may terminate this Agreement at any time with or-without cause, upon
ten (10) days' prior written notice to the other party. VERIZON shall be responsible for all costs
incurred prior to termination, including any and all costs incurred after notice of termination has
been given.
7. TERM
This Agreement shall be effective on the date of its approval by the City Council of
CITY. This Agreement shall expire when the FTTP Project work has been completed or abandoned
by the VERIZON or when terminated as provided herein.
8. NOTICES
Any notices, certificates, or other communications hereunder shall be given either by
personal delivery to VERIZON's agent or to CITY as the situation shall warrant, or by enclosing the
same in a sealed envelope, postage prepaid, and depositing the same in the United States Postal
Service, to the addresses specified below; provided that CITY and VERIZON, by notice given
hereunder, may designate different addresses to which subsequent notices, certificates or other
communications will be sent:
TO CITY: TO VERIZON:
City of Huntington Beach Verizon California, Inc.
ATTN: Director of Public Works ATTN: Curt Reese
2000 Main Street 112 Lakeview Canyon
Huntington Beach, CA 92648 Thousand Oaks, CA 91362
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9. MODIFICATION
No waiver or modification of any language in this Agreement shall be valid unless in
writing and duly executed by both parties.
10. SECTION HEADINGS
The titles, captions, section, paragraph-and subject headings, and descriptive phrases
at the beginning of the various sections in this Agreement are merely descriptive and are included
solely for convenience of reference only and are not representative of matters included or excluded
from such provisions, and do not interpret, define, limit or describe, or construe the intent of the
parties or affect the construction or interpretation of any provision of this Agreement.
11. INTERPRETATION OF THIS AGREEMENT
The language of all parts of this Agreement shall in all cases be construed as a
whole, according to its fair meaning, and not strictly for or against any of the parties. If any
provision of this Agreement is held by an arbitrator or court of competent jurisdiction. to be
unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the -remaining
covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent
upon any other unless so expressly provided here. As used in this Agreement, the masculine or
neuter gender and singular or plural number shall be deemed to include the other whenever the
context so indicates or requires. Nothing contained herein shall be construed so as to require the
commission of any act contrary to law, and wherever there is any conflict between any provision
contained herein and any present or future statute, law, ordinance or regulation contrary to which
the parties have no right to contract, then the latter shall prevail, and the provision of this
Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to
bring it within the requirements of the law.
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12. DUPLICATE ORIGINAL,
The original of this Agreement and one or more copies hereto have been prepared
and signed in counterparts as duplicate originals, each of which so executed shall, irrespective of the
date of its execution and delivery, be deemed an original.--Each duplicate original shall be deemed
an original instrument as against any party who has signed it.
13. IMMIGRATION
VERIZON shall be responsible for full compliance with the immigration and
naturalization laws of the United States and shall, in particular, comply with the provisions of the
United States Code regarding employment verification.
14. LEGAL SERVICES SUBCONTRACTING PROHIBITED
VERIZON and CITY agree that CITY is not liable for payment of any-subcontractor
work involving legal services, and that such legal services are expressly outside the scope of
services contemplated hereunder. VERIZON understands that pursuant to Huntington Beach City
Charter Section 309, the City Attorney is the exclusive legal counsel for CITY; and CITY shall not
be liable for payment of any legal services expenses incurred by VERIZON.
15. ATTORNEY'S FEES
In the event suit is brought by either party to construe, interpret and/or enforce the
terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear
its own attorney's fees.
16. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the
State of California.
04agree/verizon reimburs/5/26/04 6
17. ENTIRETY
This Agreement, and the attached exhibits, contains the entire agreement between the
parties respecting the subject matter of this Agreement and supersedes all prior understanding and
agreements whether oral or in writing between the parties respecting.the subject matter hereof.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
and through their authorized officers on �(,� L y/ d , 200'
VERIZON CALIFORNIA, INC. CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
By. ,/.t/��itd�'
D. ANZI)0(Z-
print name
ITS: (circle one)Chairman/President/Vice President Mayoif
AND
B : City Clerk 7/ c�or
Y .
John E.. Di xon A PROVED AS TO FORM:
print name �n
ITS: (circle one) Secretary/Chief Financial Officer/ sst.
Secretary Treasurer
City A orney
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REVIEWED AND APPROVED: IN TIAT AND AAPP ED:
C' y Administrator Director of Public Works
APP ED 'T FORM
ID _Zoo
04agree/verizon reimburs/5/26/04 7
RCA ROUTING SHEET
INITIATING DEPARTMENT: Public Works
SUBJECT: APPROVE REIMBURSEMENT AGREEMENT WITH
VERIZON, INC. FOR FIBER TO THE PREMISES
PROJECT
COUNCIL MEETING DATE: July 19, 2004
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Signed in full by the City Attorney) Attached
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attorney) Not Applicable
Certificates of Insurance (Approved by the City Attorney) Not Applicable
Financial Impact Statement (Unbudget, over $5,000) Not Applicable
Bonds (If applicable) Not Applicable
Staff Report (If applicable) Not Applicable
Commission, Board or Committee Report (If applicable) Not Applicable
Findings/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FOR R ED
Administrative Staff ( )
Assistant City Administrator (Initial) ( )
City Administrator Initial )
City Clerk ( )
EXPLANATION FOR RETURN,OF ITEM:
(Below • . For
RCA Author: Elliott/Pickart