HomeMy WebLinkAboutCIVITAS (2)INSURANCE NOT REQUIRED
WORK MAY PROCEED
CLERK OF COUNCIL
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MAR 1 3 2020
NON -DISCLOSURE AGREEMENT
N-2020-063
This NON -DISCLOSURE AGREEMENT ("Agreement") is entered into and effective as
of March 10, 2020 ("Effective Date"), by and between the Civitas Advisors, Inc., a California
corporation ("Civitas" or "Recipient"), and the City of Santa Ana, a charter city and municipal
corporation organized and existing under the Constitution and laws of the State of California ("City"
or "Discloser"). Each of the foregoing are hereinafter referred to as "Party" and together as the
"Parties."
WHEREAS, the City intends to provide Hotel Visitors' Tax information to Civitas for the
purpose of assisting the City with formation of a proposed Santa Ana Tourism Marketing District
("SATMD") in accordance with that certain agreement (N-2020-025) entered into between the City
and Civitas on January 1, 2020, attached hereto as Exhibit "I"; and
WHEREAS, the California Public Records Act (California Government Code §§ 6250
through 6276.48) as incorporated in Article 1, Section 3(b) of the California Constitution, addresses
the disclosure of public information, a matter of state-wide concern and represents a statewide
statutory scheme superseding local ordinance provisions relating to the discloseability of local agency
information, the disclosure of local agency information pursuant to an authorized nondisclosure
agreement may be made; and
WHEREAS, the Public Records Act does not require the disclosure of, "(i) Information
required from any taxpayer in connection with the collection of local taxes that is received in
confidence and the disclosure of the information to other persons would result in unfair competitive
disadvantage to the person supplying the information." (Government Code §6254(i)); and
WHEREAS, disclosure of public records that are otherwise exempt constitutes a waiver
of the exemption, except in specific situations, including disclosures "made to a governmental
agency that agrees to treat the disclosed material as confidential. Only persons authorized in writing
by the person in charge of the agency shall be permitted to obtain the information. Any information
obtained by the agency shall only be used for purposes that are consistent with existing law."
(Government Code §6254.5(e)); and
WHEREAS, the City desires to provide Civitas with Confidential Information for the
purpose of Civitas assisting the City with formation of a proposed SATMD ("Purpose"), but the City
does not intend to waive the exemption to disclosure of the Confidential Information under the Public
Records Act, so Recipient must comply with Government Code §6254.5(e) when handling the
Confidential Information in order to preserve said exemptions.
NOW, THEREFORE, in consideration of the mutual promises and covenants herein
contained, Discloser and Recipient agree as follows:
l . "Confidential Information" shall mean any business or technical information relating to the
formation of a proposed SATMD disclosed by Discloser in any form (written, visual, electronic,
aural, or otherwise) to Recipient that is treated by Discloser as proprietary, confidential, or a trade
secret, including but not limited to, any information, registration statements, financial statements,
social security information, tax returns, processes, methods, know-how, trade secrets, technical
information, drawings, graphs, analytical data, data analyses, copyrighted information, techniques,
equipment, software programs, costs, profit and loss information, operating procedures, analytical
protocols and equipment, friancial information, purchasing lists, customer lists, corporate alliance
agreements, internal memoranda, investor lists, capitalization tables, business and contractual
relationships, business forecasts, cost and pricing analyses and forecasts, marketing plans, and
information regarding third parties disclosed by Discloser to Recipient or obtained by Recipient
through observation or examination of information or developments.
2. The purpose of this Agreement is to enable Recipient to evaluate and/or carry out assisting
the City in formation of a proposed SATMD. Upon execution of this Agreement, Discloser agrees
to disclose to Recipient such items of its Confidential Information, which City determines is needed
for Recipient to carry out the Purpose of this Agreement. The following items will be excluded from
production:
(a) General Exclusion. Excluded from this Agreement generally with respect to Hotel Visitors'
Taxes, shall be any confidential data or information not maintained by the City or accessible
by the City in an electronic database format. Document attachments or links to ancillary
databases or archives are likewise excluded.
(b) Specific Exclusions — Hotel Visitors' Tax. Excluded from this Agreement specifically, shall
be confidential data or information relating to individual Hotel Visitors' Tax record data in
connection with gross taxable room receipts, deductions claimed; tax penalties, interest,
charges, fees, costs, applied; and deposits posted. Also specially excluded are:
refunds/adjustments made, detailed payment history, audits, account balances, permit
issuance dates, suspension, appeal, or revocation information, collection status, third -party
proprietary information, account memos, work -product, correspondence, non -business
address information, non -business telephone numbers, email addresses, and anything else the
City determines in its sole discretion is restricted from production.
(c) Exception to Specific Hotel Visitors' Tax Exclusions - Aggregated Information/Data.
Single Account Record: Information/data aggregated across a single account record for
a twelve (12) month period or longer beginning July 1, 2018, relating to the aggregate
net amount of taxes paid during such period (including tax penalties and interest), and
average monthly number of rentable rooms, may be disclosable if City determines, in its
sole discretion, that the disclosure of aggregated data is reasonably feasible and will not
result in the disclosure of specifically excluded Hotel Visitors' Tax record data.
ii. Multiple Account Records. Information/data aggregated across multiple records for a
twelve (12) month period or longer beginning July 1, 2018, based on common selection
criteria relating to gross taxable room receipts, deductions claimed, assessment of tax,
amount of tax, tax penalties, interest, fees, costs, deposits, amounts paid, account
balances, and other account information/data reasonably capable of aggregation by the
City, may be disclosable if City determines, in its sole discretion, that the disclosure of
aggregated data is reasonably feasible and will not result in the disclosure of specifically
excluded Hotel Visitors' Tax record data.
3. Subject to Section 7 below, Recipient agrees to hold any and all Confidential Information
provided to Recipient pursuant to this Agreement in confidence, and to not disclose the Confidential
Information to any other parties; provided, however, that Recipient may disclose Confidential
Information to those of its respective directors, officers, members, employees, attorneys, and
consultants (collectively, the "Representatives") who reasonably require access the Confidential
Information in order to evaluate the proposed SATMD contemplated herein, provided, however, that
Recipient shall cause its Representatives to comply with and be bound by the terms of confidentiality
and non-use contained herein. Recipient further agrees to not use the Confidential Information in any
way, including for the commercial benefit of Recipient or any other party, outside of the express
purpose for which it was disclosed to Recipient by Discloser.
4. Within ninety (90) days after the date of receipt of a written notice by the Discloser,
Recipient must (i) destroy or return all of Discloser's Confidential Information then in its
possession or control, and (ii) destroy all copies containing the Discloser's Confidential
Information and any other items that may have been produced by Recipient that incorporate
Discloser's Confidential Information, and upon the written request of Discloser, will furnish the
Discloser with written certification of such destruction under this Section. Notwithstanding the
foregoing, the Recipient (i) may retain one copy of the Confidential Information, for the purpose
of certifying the scope and nature of the docmnents received under this Agreement, and (ii) will
not be required to destroy any computer files stored securely by the Recipient that are created during
automatic system back-up or retained for legal purposes by the Recipient's legal division.
5. All reproductions, copies, or embodiments, in whole or in part, of the Confidential
Information created by Recipient shall carry a confidential or proprietary notice similar to that, if any,
with which it was submitted to the Recipient.
6. Confidential Infornation disclosed to Recipient hereunder is and shall remain the exclusive
property of Discloser. The confidentiality and use obligations set forth above apply to all or any
part of any Confidential Information provided after the Effective Date of this Agreement except to
the extent that such Confidential Information:
(a) was publicly known prior to disclosure by Discloser of such Confidential
Information to Recipient;
(b) is or becomes publicly known, without fault on the part of Recipient, subsequent to
disclosure by Discloser of such Confidential Information to Recipient;
(c) was otherwise known by Recipient prior to communication by Discloser to Recipient
of such Confidential Information as evidenced by written records;
(d) becomes available to the Recipient on a non -confidential basis from a source other
than the Discloser who is not, to the Recipient's knowledge, after reasonable inquiry,
under any obligation of confidentiality to the Discloser; and
(e) has been independently developed by Recipient without access to such Confidential
Information, as evidenced by written records.
7. In the event that Recipient is requested or required pursuant to applicable law, regulation
or order issued by any administrative, governmental, regulatory or judicial authority, or in response
to a request from or requirement of the Recipient's auditors, regulators or rating agencies, to
disclose any Confidential Information, Recipient may disclose such Confidential Information,
subject to this Section 7. Prior to responding to such request or requirement, the Recipient will
provide the Discloser with prompt notice of any such requests or requirements (unless prohibited
by applicable law from doing so), so that the Discloser may seek an appropriate protective order
or, if appropriate, waive Recipient's compliance with the provisions of this Agreement. Recipient
intends to treat the disclosed information as confidential. Accordingly, the intention of the
Discloser in releasing this Confidential Information to Recipient for the specific purpose of
assisting the City with formation of a proposed SATMD, and no other purpose, is to preserve the
exemption to disclosure of the Confidential Information under the California Public Records Act
(Government Code §6254.5(e)).
8. Nothing in this Agreement shall be deemed, by implication or otherwise, to convey to
Recipient any license or other rights under any patents, patent applications, copyrights, trademarks,
trade secrets, inventions or any other intellectual property owned by Discloser, nor shall this
Agreement be deemed a commitment of any kind by either Party to enter into any further agreement
with the other. Should the Parties enter into any such further agreement, this Agreement shall not
terminate but shall continue in full force and effect according to the terns and conditions hereof,
unless otherwise agreed upon in writing by both Parties.
9. Either Party may terminate this Agreement with thirty (30) days' prior written notice to the
other Party. The obligations of confidentiality and non-use hereunder will survive for a period of
one (1) year from the disclosure of any such Confidential Information provided, however, that such
obligations with respect to trade secrets included in the Confidential Information and identified and
maintained as trade secrets by the Discloser will continue for so long as such trade secrets retain
their legal status as trade secrets.
10. This Agreement shall be governed and construed in accordance with the laws of the State of
California, without regard to conflicts of law provisions. In the event any legal action becomes
necessary to enforce or interpret the terms of this Agreement, the Parties agree that such action will
be brought in the Orange County Superior Court or U.S. District Court for the Central District of
California (Southern Division), as appropriate, and the Parties hereby submit to the jurisdiction of
said courts.
11. Recipient agrees that: (a) money damages may not be a sufficient remedy for any breach
of this Agreement by Recipient, any of its affiliates, or any of its or their Representatives; (b) in
addition to any other remedies at law or in equity that Discloser may have, Discloser shall be
entitled to equitable relief, including injunction and specific performance in the event of any breach
or threatened breach of the provisions of this Agreement; and the Recipient hereby acknowledges
that the Discloser is entitled to seek, in accordance with all legal requirements, any preliminary or
ex parte applications for such relief to any court of competent jurisdiction. Such remedies shall not
be deemed to be exclusive remedies for the breach or threatened breach of this Agreement but shall
be in addition to all other remedies at law or in equity.
12. This Agreement contains the entire understanding and agreement of the Parties with respect
to the subject matter hereof, and there are no representations, warranties, promises or undertakings
other than those contained herein. As to the subject matter hereof, this Agreement supersedes and
cancels all previous agreements between the Parties hereto. No course of conduct or dealing between
the Parties shall act as a modification or waiver of any provision of this Agreement, and only a
modification or waiver which is contained in a single document signed by both Parties shall be
effective; provided, however, no such waiver shall be construed as any other waiver of any tern,
condition or obligation of this Agreement.
13. This Agreement is binding on Recipient, its officers, agents, employees, consultants, and
Representatives. This Agreement is not assignable or transferable by Recipient without prior written
authorization from Discloser, and any such attempted transfer is null and void.
14. If any provision of this Agreement is invalid or unenforceable in any jurisdiction, such
provision shall be fully severable from this Agreement and the other provisions hereof shall remain
in full force and effect in such jurisdiction and the remaining provisions hereof shall be liberally
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construed to carry out the provisions and intent hereof. The invalidity or unenforceability of any
provision of this Agreement in any jurisdiction shall not affect the validity or enforceability of such
provision in any other jurisdiction, nor shall the invalidity or unenforceability of any provision of this
Agreement with respect to any person or entity affect the validity or enforceability of such provision
with respect to any other person or entity.
15. This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same instrument
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement, and its
effectiveness shall date from the Effective Date.
ATTEST:
/DAISY GONITZW
OF •
APPROVED AS TO FORM:
SONIA R. CARVALHO
CITY ATTOIWEY^
RECOMMENDED FOR APPROVAL:
KATHERI DOWNS
EXECUTIVE DIRECTOR
FINANCE AND MANAGEMENT
SERVICES AGENCY
STEVEN A. MENDOZA
EXECUTIVE DIRECTOR
COMMUNITY DEVELOPMENT
AGENCY
CITY OF SANTA ANA
TINE RI GE
CITY MANAGER
RECIPIENT
AOLM-IPJ-11�1
PRESIDENT
CIVITAS ADVISORS, INC.