HomeMy WebLinkAboutCC AG PKT 2009-01-12 #NAGENDA STAFF REPORT
DATE: January 12, 2009
TO: Honorable Mayor and Ciry Council
THRU: David Carmany, City Manager
FROM: Jill R. Ingram, Assistant to the City Manager
SUBJECT: CONFIDENTIALITY AND NON-DISCLOSURE
AGREEMENT BETWEEN THE CITY OF SEAL BEACH
AND TIME WARNER CABLE
SUMMARY OF REQUEST:
That the City Council receive and file the attached Confidentiality and Non-
Disclosure Agreement between the City of Seal Beach and Time Warner Cable.
BACKGROUND:
The City has a franchise agreement with Time Warner Cable LLC that authorizes
the construction, operation, and maintenance of a cable television system within
the City of Seal Beach. Section 2.3 of the franchise agreement allows the City to
perform an audit once every three years. In that regard, the City Council adopted
Resolution No. 5780 at their regular meeting of September 8, 2008, approving an
agreement between the City of Seal Beach and Diehl, Evans, and Company, for
auditing services of the cable television franchise agreement.
In order to facilitate the conducting of an audit, Time Warner Cable and the City
of Seal Beach have subsequently entered into a Confidentiality and Non-
Disclosure Agreement that provides that the Ciry of Seal Beach will not release
any confidential and proprietary information which is disclosed during the audit
process, unless otherwise required by the Public Records Act or other applicable
law.
The City Manager executed the Confidentiality and Non-Disclosure Agreement
on December 29, 2008, and this report supports his action on behalf of the City
and the City Council.
Agenda Item N
Page 2
FINANCIAL IMPACT:
There is no financial impact.
RECOMMENDATION:
That the City Council receive and file the attached Confidentiality and Non-
Disclosure Agreement between the City of Seal Beach and Time Warner Cable.
SUBMITTED BY:
Jil .Ingram,
ssistant to the City an
NOTED AND APPROVED:
Davi~ar~many, City Manager
Attachment:
A. Copy of Signed Confidentiality and tJon-Disclosure Agreement
CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT
This Confidentiality and Non-Disclosure Agreement (hereinafter "Agreement") is entered
into as of December 29 , 2008 (the "Effective Date") by and between Time Warner NY Cable
LLC a.k.a. Time Warner Cable, and its parents and subsidiaries (hereinafter collectively referred to
as the "Disclosing Parties"), on the one hand, and CITY OF SEAL BEACH (hereinafter referred to
as the "Financial Auditor and Receiving Party"), on the other hand.
WHEREAS, the parties hereto agree that to facilitate the conducting of an audit of the
Disclosing Parties' activities related to their business in the City of Seal Beach, California, it will
be necessary for the Disclosing Parties to disclose to the Financial Auditor and Receiving Party
certain information, all of which disclosed information shall be treated as Confidential and
Proprietary Information, as hereinafter defined;
NOW, THEREFORE, in consideration of the disclosure of such Confidential and
Proprietary Information (as defined herein below), the Disclosing Parties and the Financial Auditor
and Receiving Party agree as follows:
1. As used herein:
"Information" is defimed to include communications or data, in any form, including,
but not limited to, oral, written, graphic or electromagnetic forms.
"Financial Auditor and Receiving Party" is defined to further include any parent,
subsidiary, affiliate, employee, and independent contractor of Financial Auditor and
Receiving Party, as well as other third party or parties to whom such Confidential
and Proprietary Information necessarily has been provided.
"Confidential and Proprietary Information" is defined as that Information which the
Disclosing Parties provide to Financial Auditor and Receiving Party, all of which
such Information the parties hereto agee shall be treated as Confidential and
Proprietary Information by Financial Auditor and Receiving Party.
2. All Information that is disclosed by the Disclosing Parties to Financial Auditor and
Receiving Party shall be protected hereunder as Confidential and Proprietary Information
unless otherwise agreed to in a written document executed by the Disclosing Parties.
Further, Financial Auditor and Receiving Party hereby agrees that should it be required to
disseminate such Confidential and Proprietary Information to complete this audit, it shall (i)
first provide to Disclosing Parries an opportunity to review what information it intends to
provide to the City prior to provision of the same so as to insure the accwacy and
appropriateness of the content thereof, and (ii) fully disclose the terms of this Agreement
and obtain iiom each such recipient to which such information is to be disseminated a
written, dated and executed consent to be bound by all of the terms and provisions set forth
herein.
-1-
3. Financial Auditor and Receiving Party hereby agrees that Disclosing Parties' Confidential
and Proprietary Information shall be treated and safeguarded by Financial Auditor and
Receiving Party, using, at a minimum, the same degree of care that it uses to protect its own
confidential and/or proprietary information. Financial Auditor and Receiving Party further
hereby warrant that it will safeguazd against the unauthorized disclosure of Confidential and
Proprietary Information with a high degree of reasonable care.
4. Financial Auditor and Receiving Parry expressly agrees that (i) any Confidential and
Proprietary Information disclosed hereunder shall be used by Financial Auditor and
Receiving Party solely for the purpose of conducting the audits of Disclosing Parties'
activities in the areas duly noted hereinabove; (ii) it shall not use the Confidential and
Proprietary Information disclosed hereunder for any other purpose; and (iii) it shall not
distribute, disclose, or disseminate to anyone other than the party/parties for whom the
subject audit is being conducted, by any manner or means, such Confidential and
Proprietary Information, unless and until such time as:
(a) Such Confidential and Proprietary Information is or becomes generally available to
the public, through no fault of Financial Auditor and Receiving Party or those to
whom disseminated for purposes of completion of this audit and without breach of
this Agreement; or
(b) Disclosure of such Confidential and Proprietary Information is required by
applicable law. Within a reasonable time period prior to any such disclosure,
Financial Auditor and Receiving Party shall notify the Disclosing Parties of such
request and of Financial Auditor and Receiving Party's intent to provide such
information to enable Disclosing Parties to take such legal action to prevent such
disclosure. Unless otherwise required by law, Financial Auditor and Receiving
Party shall independently exercise reasonable best efforts to assist Disclosing
Parties' efforts to obtain a protective order or other similar protective arrangement
covering the Confidential and Proprietary Information
5. This Agreement shall continue in perpetuity in full force and effect from the Effective Date
forward, regardless of the successful or unsuccessful completion of the underlying audits,
until the Financial Auditor and Receiving Party or those to which such information has been
disseminated aze released in writing from this Confidentiality and Non-Disclosure
Agreement by the Disclosing Parties. Notwithstanding the foregoing, if this Agreement is
terminated at any time earlier than seven (7) years from the Effective Date, Financial
Auditor and Receiving Party shall be permitted, at its option, to retain the Confidential and
Proprietary Information until the expiration of seven (7) years from the Effective Date, at
which time the provisions of Section g herein below shall govern the return of all
Confidential and Proprietary Information from Financial Auditor and
-a-
Receiving Party to Disclosing Parties.
6. Financial Auditor and Receiving Party shall advise all employees, consultants, advisors,
agents and other representatives (collectively, "representatives") who will have access to
the Confidential and Proprietary Information as to the obligations contained herein.
7. The failure of Disclosing Parties, by waiver or otherwise, to require performance of arty
provision hereof shall in no manner affect its rights at a later time to enforce such provision
or any other provision.
8. Upon termination of this Agreement and/or at Disclosing Parties' written request and
instruction, all Information, including all Confidential and Proprietary Information in the
possession of Financial Auditor and Receiving Party, shall be returned to the Disclosing
Parties within thirty (30) business days of such request and instruction, all at the Financial
Auditor and Receiving Party's expense, provided, however, that Disclosing Parties may not
make such request until the underlying audits have been respectively completed or
terminated.
9. Without the prior written consent of Disclosing Parties, Financial Auditor and Receiving
Party shall not, and shall direct all who are given access to the Confidential and Proprietary
Information not to, disclose to any person (other than a person authorized hereunder) the
fact that the Confidential and Pmprietary Information has been made available to Financial
Auditor and Receiving Party. The term "person" as used herein includes, without
limitation, any corporation, company, partnership or individual.
10. It is agreed that money damages may not be a sufficient remedy for any breach of this
Agreement by Financial Auditor and Receiving Party or their representatives and may
result in immediate and irreparable harm to Disclosing Parties. Accordingly, Disclosing
Parties shall be entitled to equitable and injunctive relief, specific performance and/or any
other appropriate equitable remedy in the event of a determination by a court of competent
jurisdiction of any breach of the provisions of this Agreement. Such remedies shall not be
deemed to the exclusive remedy for Financial Auditor and Receiving Parry's breach of this
Agreement, but shall be in addition to all other remedies available at law or in equity.
1 ] . This Agreement shall inure to the benefit of and be binding upon the parties hereto and
their respective successors and assigns.
12. This Agreement shall constitute the entire agreement between the parties hereto with
regard to the subject matter hereof. No modification, amendment or waiver shall be
binding without the written consent of the parties. Each party hereto represents and
wamarrts that it has full power and authority to enter into this Agreement and to perform its
obligations hereunder.
13. This Agreement and any dispute relative hereto shall be governed by, interpreted by, and
construed in accordance with the laws of the State of California, without regazd to the
principals of conflicts of law. Any legal action with respect to this Agreement shall be filed
in the appropriate court within the County of Orange, State of California.
14. With respect to this Agreement, the parties shall bear their own attorney fees and costs.
Should any legal action or arbitration or other proceeding be brought for the enforcement
of this Agreement or by reason of any asserted breach thereof, the prevailing party shall be
entitled to recover all costs and expenses, including reasonable attorneys' fees incurred in
enforcing or attempting to enforce any of the terms, covenants or conditions of this
Agreement, in addition to any other relief.
15. This Agreement contains the entire agreement between the parties to this Agreement with
respect to the subject matter of this Agreement, is intended as a fmal expression of such
parties' agreement with respect to such terms as are included in this Agreement, is intended
as a complete and exclusive statement of the terms of such agreement, and supersedes all
negotiations, stipulations, understandings, agreements, representations and warranties, if
any, with respect to such subject matter, which precede or accompany the execution of this
Agreement.
16. Each provision of this Agreement shall be valid and enforceable to the fullest extent
permitted by law. If any provision of this Agreement or the application of such provision to
any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder
of this Agreement, or the application of such provision to persons or circumstances other
than those as to which it is held invalid or unenforceable, shall not be affected by such
invalidity or unenfotceability, unless such provision or such application of such provision
is essential to this Agreement.
17. Any waiver of a default under this Agreement must be in writing and shall not be a waiver
of any other default concerning the same or any other provision of this Agreement. No
delay or omission in the exercise of any right or remedy shall impair such right or remedy
or be construed as a waiver. A consent to or approval of any act shall not be deemed to
waive or render unnecessary consent to or approval of any other or subsequent act.
18. In resolving any dispute or construing any provision hereunder, there shall be no
presumptions made or inferences drawn because a party, or the attameys for one of the
parties, drafted this Agreement or any provision thereof.
19. Each of the parties executing this Agreement represents that they have (a) been advised to
obtain legal advice from an attorney of their choice regarding this Agreement; (b) had the
opportunity to obtain such independent legal advice regarding this Agreement; (c) made
an investigation of the facts pertaining to this Agreement; and (d) read this Agreement
and signed it of their own free will.
20. This Agreement may be executed in counterparts, each of which so executed will be
deemed to be an original and such counterparts together will constitute one and the
same agreement.
TIME WARNER 1V1' CABLE LLC d/b/a TIME WARNER CABLE
sy: _
Name:
Title:
Date:
CITY OF SEAL BEACH
Name: David rmanv
Title: City Manaqer
Date: December 29. 2008