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HomeMy WebLinkAbout07 - Landscape Maintenance Agreement - Bison & MacArthur Right-of-WayCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 7 February 25, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Richard Hoffstadt, Contract Engineer 949 - 644 -3311 dhoffstadt@city.newport-beach.ca.us SUBJECT: ENCROACHMENT AGREEMENT AND LANDSCAPE MAINTENANCE AGREEMENT FOR CONSTRUCTION AND MAINTENANCE OF LANDSCAPE IMPROVEMENTS WITHIN BISON AVENUE AND MAC ARTHUR BOULEVARD RIGHT -OF -WAY WITH THE IRVINE COMPANY OWNER: THE IRVINE COMPANY RECOMMENDATIONS: 1. Approve a Landscape Maintenance Agreement, required by Caltrans, between the City of Newport Beach and The Irvine Company for installation and maintenance of landscape improvements within the MacArthur Boulevard right -of way. 2. Approve an Encroachment Agreement between the City of Newport Beach and The Irvine Company requiring The Irvine Company to maintain all landscape improvements within the MacArthur Boulevard and Bison Avenue right -of -way. 3. Authorize the City Manager and City Clerk to execute the Agreements. 4. Authorize and direct the City Clerk to have the Encroachment Agreement recorded with the Orange County Recorder. DISCUSSION: The Irvine Company is developing the Bluffs Retail Center on the northeasterly comer of Bison Avenue and MacArthur Boulevard and has requested permission to construct and maintain landscape improvements along their MacArthur Boulevard and Bison Avenue frontages. When landscape improvements are constructed within the Caltrans right -of -way, Caltrans requires the City be responsible for maintenance. Therefore, the City has required The Irvine Company to enter into a recordable Encroachment Agreement transferring the SUBJECT: ENCROACHMENT AGREEMENT AND LANDSCAPE MAINTENANCE AGREEMENT FOR CONSTRUCTION AND MAINTENANCE OF LANDSCAPE IMPROVEMENTS WITHIN THE BISON AVENUE AND MACARTHUR BOULEVARD RIGHTS -OF -WAY WITH THE IRVINE COMPANY February 25, 2003 Page 2 maintenance of the MacArthur Boulevard landscape improvements to The Irvine Company, as well as the improvements within the Bison Avenue parkway along their frontage. Execution of the attached Agreements will allow The Irvine Company to .obtain the required Caltrans Encroachment Permit so that they can begin construction. Environmental Review: Environmental Impact Report No. 156 was prepared and certified for the Bonita Canyon Planned Community. An Initial Study was prepared for the shopping center project by staff in conjunction with the approval of the entitlements in July of 2001. A finding was made that the proposed shopping center and appurtenant structures was in substantial conformance with the Bonita Canyon Planned Community; that the analysis contained in EIR No. 156 fully addressed the project as now proposed; and, therefore, EIR No. 156 would serve as the CEQA documentation for the proposed project. Public Notice: No Public posting /notification. Prepared by: Richard L. Hoffstad Contract Engineer Submitted G. Badum of Public Works Attachments: Exhibit Landscape Maintenance Agreement (for Caltrans) Encroachment Agreement (between City and The Irvine Company) EXHIBIT JE FIG I ION Or 'LIJ i S \1 i !-,IL CEN 1 LIB t' 0 0 �I The Keith Companies I=Mc 2955 ,Red .ill Avenue. Costa wesa. G 92626 !714) 540 -0800 t DATE: 091`81,C2 I JCE NC. J1S777.000 LANDSCAPE MAINTENANCE AGREEMENT A This Landscape Maintenance Agreement ( "Agreement ") is made and entered into this 1,0 day of -.e b.- ici. N , 2003, by and between the City of Newport Beach, California, a municipal corporation organized and existing under and by virtue of its Charter and the Constitution and the laws of the State of California ("City'), and The Irvine Company, a Delaware corporation ("TIC'). City and TIC are sometimes collectively referred to herein as the "Parties." RECITALS A. WHEREAS, TIC is the owner of certain real property in Newport Beach, California, described on Exhibit A and depicted on Exhibit B attached hereto (the "Property "). TIC is developing and intends to operate a commercial retail center on the Property known as The Bluffs Retail Center (the "Center "). B. WHEREAS, at TIC's request, City is willing to obtain an encroachment permit and associated Maintenance Agreement (the encroachment permit and Maintenance Agreement are sometimes collectively referred to herein as the "Permit ") from the State of California Department of Transportation ( "Caltrans ") to install landscaping within a slope area owned by Caltrans located between all on -ramp to the San Joaquin Hills Transportation Corridor and the Property. The affected slope area is depicted on Exhibit C attached hereto and is hereinafter referred to as the "Landscape Area." C. WHEREAS, TIC desires to install and maintain landscaping within the Landscape Area to enhance the aesthetic appearance of the Center, and City is willing to allow TIC to perform such installation and maintenance subject to the terms and provisions of this Agreement. NOW, THEREFORE, in consideration of the above recitals and the mutual promises contained herein, TIC and City hereby agree as follows: AGREEMENT I. Incorporation of Recitals. The above Recitals are incorporated into this Agreement by this reference. 2. Effective Date. This Agreement shall be deemed effective on the date first set forth above (the "Effective Date ") and shall continue in effect until terminated as provided herein. 3. Assignment of Permit Rights and Maintenance Obligations. Subject to the terms and provisions contained herein and in the encroachment permit and associated Maintenance Agreement, copies of which are attached as Exhibit D, City hereby assigns to TIC (a) the right to install, maintain, repair and replace the Landscape Improvements (as defined in Section 4 below) during the JRC\30209- 0032VAGRMIV 37141.6 10/23/02 term of this Agreement, and (b) the obligation to maintain the Landscape Improvements in accordance with the requirements of the Permit during the term of this Agreement. 4. Landscape Plans. Prior to execution of this Agreement, City has approved of TIC's plans and specifications for the installation of landscaping and landscape irrigation systems (collectively, the "Landscape Improvements ") within the Landscape Area. The Landscape Plans approved by City are referred to herein as the "Approved Landscape Plans.) 5. Installation of Landscape Improvements. TIC shall install the Landscape Improvements within the Landscape Area in accordance with the Approved Landscape Plans and all applicable terms and conditions of the Permit. 6. Standard of Maintenance. TIC shall, at its sole cost and expense, maintain the Landscape Improvements installed within the Landscape Area in good condition and repair and as required by the Permit during the term hereof. 7. Alteration of Landscape Improvements. TIC shall not materially alter the Landscape Improvements from their original condition as installed per the Approved Landscape Plans without the prior written approval of City. City's approval of the proposed alterations to the Landscape Improvements shall not be unreasonably withheld or delayed. So long as City approves of the changes to the Approved Landscape Plans, City shall, to the extent further approvals are required under the Permit, submit such changes for approval to Caltrans for approval promptly after City's approval of such changes. 8. Failure to Perform. If TIC fails to fulfill its maintenance or other responsibilities under this Agreement or the Permit, City may provide TIC with written notice of such failure describing the deficiencies in reasonable detail (the "Deficiency Notice "). If such deficiency is not corrected within ten (10) business days of TIC's receipt of the Deficiency Notice, City shall have the right, but not the obligation, to cure the deficiency; provided, however, that if the deficiency is of a type that cannot reasonably be cured within ten (10) business days, it will be deemed cured if TIC commences to cure the deficiency within such period and proceeds diligently thereafter to complete the cure of such deficiency. If City elects to cure the deficiency, it shall be performed at City's standard rates and prices. TIC shall reimburse City for its costs incurred in curing the deficiency within fifteen (15) days of TIC's receipt of City's invoice for such costs, which invoice shall be accompanied by copies of receipts evidencing the actual cost of cure incurred by City. 9. Liens. TIC shall not suffer or permit to be enforced against the Landscape Area any mechanics, laborers, materiahnens, contractors, subcontractors, or any other liens, claims or demands arising from any maintenance or other work performed by TIC within the Easement Area, but TIC shall pay or cause to be paid all of said liens, claims and demands before any action is brought to enforce the same against the Landscape Area. 10. Renewal of Permit. City and TIC understand that the Permit issued by Caltrans is limited to a set term of years. Prior to the expiration of the Permit (and prior to the end of any renewed -2- J RC\30209 -0032 VAGRMn337141.6 10/23/02 Permit thereafter), City shall apply for a renewal of the Permit to continue with the maintenance; of the Landscape Area so long as TIC has complied with the terms of this Agreement and the Permit. 11. Term. This Agreement shall remain in effect from the Effective Date for so long as Caltrans continues to reissue Permits for maintenance of the Landscape Improvements within the Landscape Area; provided, however, that (a) City may terminate this Agreement upon ten (10) business days' prior written notice to TIC in the event that TIC fails to perform or cure any failure to perfonn as provided in Section 8 above, and (b) TIC may terminate this Agreement in either of the following situations: (i) prior to installation of the Landscape Improvements, if TIC finds the Permit conditions imposed by Caltrans to be unacceptable to TIC, TIC may terminate this Agreement by providing written notice to City, in which event neither City nor TIC shall have any further obligations hereunder, or (2) after installation of the Landscape Improvements, TIC may terminate this Agreement by providing thirty (30) days prior written notice to City, in which event TIC shall. be responsible for restoring the Landscape Area in accordance with the terms of the Permit and with Caltrans' standard requirements so that City will have no further obligations for maintenance of the Landscape Area. 12. Assignment. TIC may assign its rights and obligations under this Agreement to either (a) a commercial association for the Center responsible for maintenance of common areas within the Property, or (b) a subsequent owner of all or a portion of the Property. Any such assignment must be in writing, must contain the assignee's agreement to be fully bound by the terms and provisions of this Agreement, and a copy of such assignment must be delivered to City. No assignment shall be effective until the proposed assignee provides City with certificates of insurance verifying that the assignee's insurance coverage meets and complies with the insurance requirements of this Agreement. After the effective date of any such assignment by TIC, TIC shall have no further rights or obligations hereunder. 13. Insurance. TIC shall require in its contracts with any contractors that perform any design, installation, maintenance orotherwork in connection with the Landscape Area, that such contractors obtain, provide and maintain at all times during the performance of any such work, at no cost or expense to City, policies of liability insurance of the type and amounts described below and satisfactory to City. Certification of all required policies shall be signed by a person authorized by that insurer to bind coverage on its behalf and must be filed with City prior to performance of any work within the Landscape Area. Except for workers compensation and any errors and omissions coverage, all insurance policies shall, to the extent coverage is provided under such policies, add City, its elected officials, officers, agents, representatives and employees as additional insureds for all liability arising from such work related to the Landscape Area. Insurance policies for the following coverages, with original endorsements related to the Landscape Area work, shall be issued by companies approved or licensed to do business in California and assigned Best's A- VII or other rating acceptable to City: A. Workers compensation insurance, including "Waiver of Subrogation" clause, covering all employees of such contractor, per the laws of the State of California. -3- JRCU 0209 -0032 W GRMI V 37141.6 10!.23/02 B. Commercial general liability insurance, including additional insured and primary and non - contributory wording, covering third party liability risks, including without limitation, contractual liability, in a minimum amount of $1 million combined single limit per occurrence for bodily injury and property damage. If commercial general liability insurance or other form with a general aggregate is used, either the general aggregate shall apply separately to the Landscape Area, or the general aggregate limit shall be twice the occurrence limit. C. Commercial auto liability and property insurance, including additional insured (and primary and non - contributory wording for waste haulers only), covering any owned and rented vehicles of such contractor in a minimum amount of $1 million combined single limit per accident for bodily injury and property damage. D. For any contractors providing design services; professional errors and omissions insurance, which covers the services to be performed in connection with any improvements to be installed within the Landscape Area, in the minimum amount of $1 million. Said policy or policies shall be endorsed to state that coverage shall not be subject or cancellation or non - renewal without thirty (30) days prior written notice to be delivered to City. All contractors providing insurance as required hereunder shall give City prompt and timely notice of claim made or suit instituted arising out of contractor's work on the Landscape Area. Each contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance that in its own judgment may be necessary for its property protection and prosecution of the work. Each contractor will be required to agree that in the event of loss due to any of the perils for which it has agreed to provide comprehensive general and automotive liability insurance, contractor shall look solely to its insurance for recovery. The workers compensation policy and any other policy pertaining to the Landscape Area carved by each contractor will contain a waiver of subrogation with respect to City as to any claims that may be asserted against City by virtue of the payment of any loss under such insurance. 14. Indemnification by TIC. TIC shall indemnify, defend and hold City (and, to the extent required by the Permit, Caltrans) harmless from and against any and all loss, damage, liability, claims, suits, costs and expenses whatsoever, including reasonable attorneys' fees when outside attorneys are used (collectively, the "Claims ") arising from or related to (a) TIC's design, installation and maintenance of the Landscape Improvements, (b) the acts of TIC or its contractors within the Landscape Area, (c) TIC's performance of its obligations hereunder, and (d) TIC's compliance with the requirements of the Permit; provided, however, that TIC's indemnity obligations hereundershall not apply to the extent that any Claim is caused by the negligence or willful misconduct of City (or Caltrans, as the case may be).. Q J RC\30209 -0032 VAGRM3\337141.6 10/23/02 15. Indemnification by City. City shall indemnify, defend and hold TIC harmless from and against any Claims arising from or related to City's performance of its obligations hereunder; provided, however, that City's indemnity obligations hereunder shall not apply to the extent that any Claim is caused by the negligence or willful misconduct of TIC. 16. Notices. All Notices required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given if personally delivered or sent by prepaid first class mail, addressed as follows: If to City: City of Newport Beach Public Works Department 3300 Newport Boulevard (P.O. Box 1768) Newport Beach, California 92658 -8915 Attention: City Engineer If to TIC: The Irvine Company 550 Newport Center Drive Newport Beach, CA 92660 Attn: Vice President & General Counsel Retail Properties 17. Incomoration of Exhibits. Exhibits A, B, C and D, which are attached hereto, are hereby incorporated herein by this reference. 18. Co�tJr. orate Authority. The persons executing this Agreement on behalf of each Party warrant that he/she is duly authorized to execute and deliver this Agreement on behalf of the respective Party for whom they sign, and that by so executing this Agreement, each party is bound by the provisions of this Agreement. 19. Entire Agreement. This Agreement and the exhibits attached hereto constitute the entire Agreement between the Parties pertaining to the subject matter hereof, and all prior and contemporaneous agreements, representations, negotiations and understandings of the Parties, whether oral or written, are hereby superseded and merged herein. [signature page follows] -5- J RC\30209 -0032\AGRMn 37141.6 10/23/02 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written. "TIC" The Irvine Company, a Delaware corporation By: Name: Keith C. Eyrich Title: President, Retail Properties By: Name: Lee Burckle Title: Assistant Secretary "City" City of Newport Beach, a California municipal corporation By: City Manager APPROVED AS TO FORM: By: City Attorney Date: ATTEST: City Clerk Date: -6- 1RC\30209 -0032 VAGRMT,337141.6 10/23/02 CALIFORNIA ALL - PURPOSE ACKNOWLEDGMENT State of California /n ss. County of V r& vita On r- IrUkr�l ��l }CCU, before me, Date personally appeared 1 ckscn tie{-c. le % personally known to me ❑ proved to me on the basis of satisfactory evidence to be the persons) whose name(,a) -is /are subscribed to the within instrument and acknowledged to me that helsi,e /they executed the same in hisfher /their authorized capacity(Les), and that by his/her /their signature( on the instrument the person(s), or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above Sign ure of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document /� Title or Type of Document: i�c(SIC -�T kk I h iC.n It nC � Aq (422 M en f Document Date: 2 b t'lti is r,�Lr� -CD 3 Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual Top of thumb here ❑ Corporate Officer— Title(s): ❑ Partner — ❑ Limited ❑ General ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: 0 1999 National Notary Aeeoa:ahoa • 9350 be Soto Ave., P.O. Box 2402 • ehatsnoM, CA 91313 2402 • w v mt oaalaolary.otg Prof. No 5907 Reader. call Toll -Free 1- 800,8]6-682] kk IJ497.00 \DWG\ PRSE0096.DWG EXHIBIT A DESCRIPTION OF RiE PROPERTY ALL THAT REAL PROPERTY SITUATED IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, BEING SHOWN A5 PARCEL ONE OF PARCEL MAP NO. 2001 -140, FILED IN BOOK 32G AT PAGES 48 THROUGH 50, INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. The Keith Compenieslm<a 2955 Red Hill Avenue. Costa Mesa, CA 92626 (714) 540 -0800 DATE: 09178102 1 J08 N0. 73497.07.000 r I I I I Ir l III IV - _ I 1 r r / r 1 r EXHIBIT B DEPICTION OF Tf1E PROPERTY _I AVENUE Il n' N °o The Keith Companieslln<c 2955 Red Hill Avenue. Costa Mesa. CA 92626 (714) 540 -0800 \1J497.00 \0WG \PRSE0087.0W4 I OA 7E: 09118102 1 JOB NO. 13497.07.000 It I 1 I II 1 I� N I XI I I K\ IM97M \DWG \PRSE0088.DMC EXHIBIT C DEPICTION OF LANDSCAPE AREA i i i IE _ t ( I U I I 1 THI= 13LUFF5 ( / P °°°RETAIL &WFIN (GENT PP I r G AVENUE i .r 0 0 The Keith Companiesl=Mc 2.955 Red Hill Avenue, Costa Mesa, CA 92626 (7f4) 540 -0800 DATE. 08127102 1 JOB NO. 13497.01.000 Exhibit D COPY OF ENCROACHMENT PERMIT & MAINTENANCE AGREEMENT Note: Only the Maintenance Agreement is attached since that is all TIC has received at this time. The attached Maintenance Agreement is acceptable to TIC subject to two changes: 1. The open ingparagraph is setup as a 3 -Party Agreement between Caltrans, City and Permittee. We understand that only the City and Caltrans will be parties to the Permit and the Maintenance Agreement, so a change to thisparagraph should be made and "City "should be substituted inplace of "Permittee." throughout the Agreement. 2. In Section 3, change the words "resulting from accident, storm, neglect or actions of third parties" to "resulting from storm or neglect. " TIC is willing to accept responsibility for matters resulting from storms or its own neglect, but does not wish to waive_ claims against drunk drivers, vandals, etc. that may cause damage to the Project. 7RC\3 02 09- 003 2VAGRMT 37141.6 10/23/02 AUG -07 -2002 14:23 DIST 12 MRINT ENG 949 724 2200 P.02iO4 sTA-rE OFCA - WORNIA- BUSUMS AND TRANSPORTAMON AGENCY MAY DAVIS, Ga M= DEPARTMENT OF TRANSPORTATION DISTRICT 12.3337 MR31EiSON DRIVE SUrrE 390 atVAIE.CA 12612 r MAINTENANCE AGIKUMENT Permit No: Location: This Maintenance Agreement is made and entered into effective this _ day of , 2002 by and between the State of California, acting by and through Department of Transportation, District 12, located at. 33371 Michelson Drive, Irvine, Cnlifornia 92612, hereinafter referred to as "STATE" nr "CAI.TRANS' ; and located at , hereinafter referred to as "PERMITTEE ", and the , located at , hereinafter referred to as "CITY" with reference to the following facts: Permittee desires to Fund State I3ighway improvements consisting of referred to herein as "PROJECT'. Permitlee is willing to fund one hundred (100%) of all design, capital outlay, maintenancc-and staffing costs. NOW, THEREFORE, in consideration of the foregoing facts and the terms and conditions set forth below, the Parties agree as follows: 1. Permittee shall apply for a necessary encroachment permit in accordance with State's standard permit procedures through the Caltrans, District 12, Office of Permits at (949) 724• 2845. Following construction of Project, Permince shall also apply for a maintenance permit, on an annual basis or as otherwise specified in a prior permit, one (1) month prior to expiration of that previous encroachment permit. 2. Upon completion of construction work, Perminee shall assume responsibility for all Project maintenance and the expense thereof, at Permittee's own expense in. P=nittee shall notify State's Permit inspector a minimum of two (2) working days prior to the start of any Project landscape maintenance work. 3. Damage to Project resulting from accident, storm, neglect or actions of third parties is the responsibility of the Permittee. 4. Caltrans shall maintain all highway signs, paved drainage structures and othor non - landscape highway appurtenances installed by Caltrans which are not a part of the Project. S. All planting shall be maintained by the Permittee in such condition that it does not interfere with the free flow of traffic, including maintaining adequate site distances and visibility of all State signs. Trees must be maintained to avoid falling branches and to avoid obscuring advertising signs. Trees shall be pntned on a regular basis using only the hioest SEP 24 '02 09:30 9498515179 PRGE.02 RUG^07 -2002 14:24 DIST 12 MPINT ENO 949 724 2208 P.03iO4 STATE OF CALtiORNtA - BUSINESS AND TTtANSPORTATION A13ENCY GRAY DAVIS.Gaw DEPARTMENT OF TRANSPORTATION DISTRICT 1 t 3,a3r MICIMUON DRME, surre 380 MVPIE. CA 91617 0 Professionally accepted standards and in a manner that will encourage good development while preserving the health. structure and natural appearance of those trees. 6. A monthly schedule of planned landscape maintenance settling out the dates and approximate times when work is to be performed, including names and telephone numbers for 24 -hour emergency contact, shall be provided to The State Permit Inspector following the issuance Of the permit. 7. Permitter- shall provide and maintain all water and irrigation systems and shall pay all utility costs for Project. Irrigation systems will be maintained and operated to avoid slope damage and water run -off or spray onto the pavement and traffic. 8. By execution of this Agreement, it is understood that Permitter- shall not remove eristin� plants. add plants, or modify irrigation Systems) without Caltrans' prim written approval. 9. Landscaping, paving or other unplanted areas along the. roadside within the limits shown on the attached plans. exclusive of paved drainage facilities. wi11 be maintained so as not to obstruct the Flow of water. Caltrans will be responsible for maintaining paved drainage structures. 10. Various futures Caltrans projects may he implemented which may Tetluire the removal andfor modification to all or a portion of Project. Any replacement landscaping installed by Caltrans as part of that work, including new or revised irrigation facilities, may become Permittcc's responsibility depending on whether that replacement landscaping is not part of project's scope. Upon completion of work, which affects the described limits of maintenance. a revised Exhibit will be prepared and delivered to PermTiuce by Caltrans for approval. Once approved, 8xhibit will supersede the original limits shown on the original permit plans. 11. Any changes to the Project affecting public safety or public convenience, all design and specification changes, and all major changes including removal, pruning, or addition of either planting or irrigation system shatl be approved by State in advance of Pormittec performing work. Unless otherwise directed by the State Permit inspector. changes authorized will require an encroachment permit. Failure to notify Caltrans of such changes shall result in the immediate removal of Project or portions of Project at Permittee's expense. 12. Upon notice of completion of all work under this Project, ownership and title to material, equipment and such appurtenances installed within State's right -of -way will automatically be vested in State. No further agreement will be necessary to transfer ownership, 13. Neither Caltrans nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by Permittee and City under or in connection with any work, authority or jurisdiction delegated to Permittee and City under this Agreement. It is understood and agreed that, pursuant to Government Code 2 SEP 24 102 09:31 9498515179 PRGE.03 RUG -217 -2002 14 =24 DIST 12 NRINT ENO 949 724 2208 P.04iO4 STATE OFCALTFVRN1A - BUSINESS AND TRANSPORTATION AGENCY GRAY DAVIS. Gvvtmrw DEPARTMENT OF TRANSPORTATION DISTRICT 113337 MiCHP1SON DRIva, SUITE 390 IRVINE. CA 72012 Section 895.4, Permiltee and City shall defend, indemnify and hold harmless the State of California and Caltrans, all officers and employees from all claims, suits or actions brought for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of any action taken or omission of an act required by this agreement by PeTmittee or in connection with any work, authority or jtiriadiction delegated to Permittce and City under this Agreement. 14. It is understood that if Pennittee at some future date decides to not renew maintenance permit required herein, or if the landscape planting is not maintained at an acceptable level subject to Caltrans' consent, City will maintain all Proicci improvements. Caltrans shell provide City with written notice of Pcrrnittee's Failure to renew its annual permit and/or Caltrans' decision that subject Project is not maintained at a real enable level and City shall respond within thirty (30) days of receipt of said notice by describe the action to be Laken by City to bring the affected areas back into compliance or to reinove the Project improvements slid restore said areas to the pre - landscaped condition. In the event City does not provide such response and take any action, Caltrans will take the necessary actions) to remove the Project and restore the affected areas to their pre - landscaped condition at City's sole expense. IN WITNESS WHEREOF, the parties have executed this Maintenance Agreement in duplicate as of the day and year stated above. peimirrce: Signature: _ Prim Name: Title: Phone: Dare: Cir v Caltrans SEP 24 '02 09:31 9498515179 3 PAGE. 04 RECORDED REQUESTED BY AND WHEN RECORDED, RETURN TO: Public Works Department City of Newport Beach P.O. Box 1768 3300 Newport Boulevard Newport Beach, CA 92659 -1768 WITH A COPY TO: The Irvine Company 550 Newport Center Drive Newport Beach, CA 92660 Arm: Brigid McMahon Legal Affairs Department Exempt recording requested per Gov. Code 6103 for Recordefs use only) ENCROACHMENT AGREEMENT (Maintenance of Non - Standard Landscaping in Street Right -of Way) This Encroachment Agreement ( ".Agreement') is made and entered into this (3� day ( of e -brut ry , 200,-S, by and between the C= OF NT"AIPORT BEACH, a California municipal corporation ( "City "), and THE MV-LvTE COD /2ANY, a Delaware corporation ( "Company "). City and Company are sometimes collectively referred to herein as the "Parties." RECITALS A. WHEREAS, City administers and maintains certain public street rights -of -way located within the city limits of City, including rights -of -way for portions of MacArthur Boulevard and Bison Avenue as depicted on Exhibit A attached hereto (the "Rights of Way "). City owns portions of the Rights of Way in fee and portions in easement, as indicated on Exhibit A. B. ',A=P -EAS, Company is the owner of the Bluffs Retail Center (the "Retail Center "), portions of which border the Rights of Way.. The Retail Center isle 2 ally described on Exhibit B and depicted on Exhibit C attached hereto. C. WHEREAS, in connection with the operation of the Retail Center, Company desires to install and maintain certain landscaping, landscape irrigation systems, lighting, hardscape and related improvements (collectively, the "Company lmprovements") within the pond ons of the Rights of Way depicted on Exhibit D attached hereto (the "Maintenance Area"), which is located between the property line of the Retail Center and the curb bordering the Rights of Way. The Company IR030209 -003 T33 S 793.7 '20/03 Improvements, which must be installed in accordance with plans approved by City as provided below, are considered to be "non- standard improvements" as compared with improvements that Ciiy typically installs within street rights -of -way. D. WHEREAS, various public utility easements, sewer, water, street light, storm drain facilities and/or other public improvements (collectively, the "City Facilities ") are located within the Rights of Way; E. WHEREAS, City is willing to allow Company to install the Company Improvements within the Maintenance Area, subject to the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the above recitals and for good and valuable consideration, the receipt and sufficiency ofwhich is hereby acknowledged, City and Company agree as follows: AGREEMENT 1. Permit. City will permit Company to construct, reconstruct, install, maintain, use, operate, repair and replace the Company Improvements vdthin the Maintenance Area as generally described on Exhibit E attached hereto. City also will allow Company to take all reasonable measures necessary or convenieht in accomplishing such activities. 2. Installation ofComnanvlmnrovements. Company shall install the Company Improvements within the Maintenance Area in accordance with the plans and specifications for such improvements that have been prepared by Kirby &Company, titled "The Bluffs Retail Center," as more specifically listed on Exhibit E attached hereto, which plans and specifications are on file with the City (the ".Approved Plans "). 3. Standard of Maintenance. Company shall, at its sole cost and expense, maintain the Company Improvements installed within the Maintenance Area in accordance with general prevailing standards of maintenance, and pay all costs and expenses incurred in doing so. Company's maintenance obligation shall also include replacement of the Company Improvements, where necessary. All replacements and repairs shall be at least equal in quality to the Company Improvements described in the Approved Plans. In addition, Company is responsible for the cost of providing water and electricity for im, gation of the landscaping and lighting installed within the Maintenance Area in connection with the Company Improvements. Nothing contained herein, however, shall be construed to require Company to maintain, replace or repair any City Facilities within the Right -of -Way, except to the extent that the Company Improvements cause damage to the City Facilities. 4. Alteration of Comnanv Imnrovemems. Company shall not substantially alter the Company Improvements from their original condition as installed per the Approved Plans wgthout the prior written approval of City. JR: ' MO C- 003' -' 7 38103.71 120/03 5. Failure to Perform. If Company fails to fulfill its maintenance or other responsibilities under this Agreement, City may provide Company with written notice of such failure describing the deficiencies in reasonable detail ( the "Deficiency Notice "). If such deficiency is not corrected �Athin thirty (30) days of Company's receipt of the Deficiency Notice, City shall have the right, but not the obligation, to cure the deficiency; provided, however, that if the deficiency is of a type that cannot reasonablybe cured within such period, it will be deemed cured if Company commences to cure: the deficiency within such period and proceeds diligently thereafter to complete the cure of such deficiency. If City elects to cure the deficiency, Company shall reimburse City for its actual and reasonable costs incurred in curing the deficiency within thirty (30) days of Company's receipt of City's invoice for such costs, which invoice shall be accompanied by copies of receipts evidencing the actual cost of cure incurred by City_ 6. Liens. Company shall not suffer or permit to be enforced against the Maintenance Area any mechanics, laborers, matenalmens, contractors, subcontractors, or any other liens, claims or demands arising from any maintenance or other work performed by Company within the Maintenance Area, but Company shall pay or cause to be paid all of said liens, claims and demands before any action is brought to enforce the same against the Maintenance Area. 7. City Maintenance of City Facilities. City acknowledges that it will remain responsible: for maintenance and repair of all City Facilities within the Maintenance Area. In the event that City finds it necessary to enter the Maintenance Area to maintain, repair, replace, remove or enlarge (collectively, the "Repairs' any of the City Facilities, City may, after ten (10) days prior notice to Company (except in case of emergency, in which event no prior notice is required), remove such portions of the Company Improvements within the Maintenance Area as necessary to accomplish the Repairs. In such event: a. City agrees to minimize, to the extent feasible, the portions of the Company Improvements that must be removed to accomplish the Repairs, and to coordinate with Company regarding cutting of irrigation lines and alterations of Company Improvements so as to minimi e disruption of the Company Improvements and the effect of the Repairs on unaffected portions of the Maintenance Area. (The portion of the Maintenance Area affected by the Repairs is referred to herein as the "Affected Area.") b. City shall bear the cost of removing the Company Improvements from the Affected Area to accomplish the Repairs. C., Company shall be responsible for arranging for any replacement or restoration of the Company Improvements within the Affected Area, and for all costs associated thertwith. 8. Term. This Agreement shall remain in effect for so long as the Retail Center is operated; provided, however, that (a) City may terminate this Agreement upon thirty (30) days' prior �xTittm notice to Company in the event that Company fails to perform or cure any failure to perform within JRC130209- 003733S'793.7 1170/03 the times provided in Section 5 above, and (b) Company may terminate this Agreement by provi ding thirty (30) days' prior written notice to City, in which event Company shall be responsible for removing the Company Improvements and replacing them with City's then standard right -of -way improvements, unless City otherwise directs Company to keep the Company Improvements in place. In addition, if City determines that it needs to use any portion or all of the Maintenance Area where the Company Improvements are located, City may, upon sixty (60) days' prior notice to Company, terminate all or any portion of the Maintenance Area as needed by City for public use. However, promptly after giving such notice of intended termination to Company, City agrees to meet with Company to discuss alternatives that would avoid or minimize any such termination. The final determination as to whether to adopt or reject any such alternatives shall be made by City in its sole discretion. 9. Assignment. Company may assign its rights and obligati ons under this Agreement to either (a) a commercial association for the Center responsible for maintenance of common areas within the Retail Center, or (b) a subsequent owner of all of the Retail Center (each, a "Successor "). Any, such assignment must be in writing, must contain the Successor's agreement to be fully bound by the terms and provisions of this Agreement, and a copy of such assignment must be delivered to City. After the effective date of any such assignment b}' Company, Company shall have no further rights or obligations hereunder. 10. Insurance. Any Successor must carry general liability insurance in the amounts specified below for activities within the Retail Center and the Maintenance Area, and shall also require in its contracts with any contractors that perform any design, installation, maintenance or other work in connection with the Maintenance Area, that such contractors obtain, provide and maintain at all times during the performance of any such work, at no cost or expense to City, policies of liability insurance of the type and amounts described below and satisfactory to City. Certification of all required policies shall be signed by a person authorized by that insurer to bind coverage on its behalf and must be filed with City, prior to performance of any work within the Maintenance Area. Except for workers' compensation and any errors and omissions coverage, all insurance policies shall, to the extent coverage is provided under such policies, add City, its elected officials, officers, agents, representatives and employees as additional insures for all liability arising from such work related to the Maintenance Area, Insurance policies for the following coverages, with original endorsements related to the Maintenance Area work, shall be issued by companies approved or licensed to do business in California and assigned Best's A- VII or other rating acceptable to City: A. Workers compensation insurance, including "Waiver of Subrogation" clause, covering all employees of such contractor, per the laws of the State of California B. Commercial general hability insurance, including additional insured and primary and non - contributory wording, covering third party liability risks, including without limitation, contractual liability, in aminimum amount ofS1 million combined single 0 IRC 3G2V- 0032 38703,7 120/03 limit per occurrence for bodily injury and property damage. If commercial general liability insurance or other form with a general aggregate is used, either the general aggregate shall apply separately to the Maintenance Area, or the general aggregate limit shall be twice the occurrence limit. C. Commercial auto liability and property insurance, including additional insured (and primary and non - contributory wording for waste haulers only), covering any owned and rented vehicles of such contractor in aminimum amount of $1 million combined single limit per accident for bodily injury and property damage. D. For any contractors providing design services, professional errors and omissions insurance, which covers the services to be performed in connection with any improvements to be installed within the Maintenance .Area, in the minimum amount of $1 million. City may, from time to time, require increases in the amounts of coverage specified above to conform with the levels of insurance required in City landscape maintenance or similar contracts. Said policy or policies shall be endorsed to state that coverage shall not be subject or cancellation or non - renewal without thirty (K) days prior written notice to be delivered to City. All contractors providing insurance as required hereunder shall give City prompt and timely notice of claim made or suit instituted arising out of contractor's work on the Maintenance Area Each contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance that in its own judgment may be necessary for its property protection and prosecution of the work. Each contractor will be required to agree that in the event of loss due to any of the perils for which it has agreed to provide comprehensive general and automotive liability insurance, contractor shall look solely to its insurance for recovery. The workers compensation policy and any other policy pertaining to the Maintenance Area carried by each contractor will contain a waiver of subroga tion with respect to City as to any claims that may be asserted against City by virtue of the payment of any loss under such insurance. 11. Indemnification. Company shall indemnify, defend and hold Cityharmless from and agaa st any and all loss, damage, liability, claims, suits, costs and expenses whatsoever, including reasonable attorneys' fees when outside attorneys are used (collectively, the "Claims ") arising from or related to (a) Company's design, installation and maintenance of the Company Improvements, (b) the acts of Company or its contractors within the Maintenance Area, and (c) Company's performance outs obligations hereunder; provided, however, that Company's indemnity obligations under this Agreement shall not apply to the extent that any Claim is caused by the active negligence or willful misconduct of City. -5- TR030209- 0032L38 ?93. i 120/03 12. Attonnevs' Fees. In any action between the parties seeking enforcement of any of the terms and provisions of this Agreement, the prevailing party in such action shall be awarded, in addition to any damages, injunctive or other relief, its reasonable costs and expenses, including reasonable attorneys' fees. 13. Notices. All Notices required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given if personally delivered or sent by prepaid first class mail, addressed as follows: If to City: City of Newport Beach Public Works Department 3300 Newport Boulevard (P.O. Box 1768) Newport Beach, California 92658 -8915 Attention: City Engineer If to Company: The Irvine Company 550 Newport Center Drive Newport Beach, CA 92660 Attn: Vice President & General Counsel Retail Properties Either party may change its address for notice by providing written notice of such changed address to the other. 14. Successors and Assigns. Subject to the provisions of Section 9 above, the terms and provisions of this .Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the Parties. 15. Incorporation of Exhibits. Exhibits A. B. C. D and E, which are attached hereto, are hereby incorporated herein by this reference. 16. Corporate Authority. The persons executing this Agreement on behalf of each Party warrant that he /she is duly authorized to execute and deliver this Agreement on behalf of the respective Parry for whom they sign, and that by so executing this Agreement, each parry is bound by the provisions of this Agreement. 17. Amendment. This Agreement may be amended or terminated only by a written instrument approved and executed by the Parties. 18. Entire Agreement. This Agreement and the exhibits attached hereto constitute the entire Agreement between the Parties pertaining to the subject matter hereof; and all prior and IRS rRC'30209- 0032'338793.7 1o2or03- contemporaneous agreements, representations, negotiations and understandings of the Parties, whether oral or written, are hereby superseded and merged herein. IN WITNESS WHEREOF, the Parties have executed this Agreement as of-the day and year fast above written. "Company" The Irvine Company, a Delaware corporation By: CrGuS zcLi ti Keith C. Eyrich President, Retail Properties Lee Burckle Assistant Secretary 'LcitY93 City of Newport Beach, a California municipal corporation By: City Manager APPROVED AS TO FORM: By: City Attorney Date: ATTEST: City Clerk Date: -7- JRC'30209 -003 -'L3fi 793.7 L70/03 STATE OF CALIFORNIA ) ) ss. COUN= OF ORANGE ) On F� br"ru 1?- 200 8, before me, &kx\r nc- t . G-7`.' C.1r5e n , Notary Public, personally appeared Keith C. Eyrich and Lee Burckle, personally known to me erred xa =P es 41P bftRis A€g2tisfarto , ddence to be the person whose nameLs) -is /are subscribed to the within instrument and acknowledged to me that ;fie /they executed the same in his. r /their authorized capacity ie§j and that byh s$er /their signature,(,5,) on the instrument, the persons orthe entity upon behalf of which the persons acted, executed the instrument. uTPlr'ESS my hand and official seal. Notary Public SANDRA L ERICISON (SEAL) - CWWrd = 1245M 3 NofoyRbic- Cagfomin MY �D�acT.?Omr STATE OF CALIFORNIA ) ) ss. COL-TTY OF ORANGE ) On 200_. before me, the undersigned, a NotaryPublic in and for said State, personally appeared , personally knoum to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged that he executed the same in his authorized capacity, and that by his or her signature on the instrument, the person or the entity upon behalf of which the person acted, executed the instrument. R'TTNESS my hand and official seal. (SEAL) 511 Notary Public .R C 30209- 0032`235792.7 1.20/02 II �I I1 I1 1 _ II �I �II y, 1 1 / I l l l 1 / 1 EXHIBIT A Df:-7-PIG i IOx' Or RIGH S Or WAY I / I / a r rn 11 O 1 0 LEGEND CITY .FEE CITY EASEMENT I 3150,N aV�NU_ I The Keith Czmpaniesrin<c 2:55 Red �01 Avenue, cesic Nesc, G 52625 (7)4) 540 -0800 r -•, IS457.00 \Dn,lp ?55005210r I Gk TE.- 0 ?/ 5/02 1 JOB N0. i3457.01.000 I C °. :7!5 ^."•.O, DRV•� °�'"DOE_.DYr.. EXHIBIT B u L DL- S T 10 IN OF DL UFFS KE I "'IL :.ffNT;=rR ALL THAT REAL PROPERTY STUATED IN THE CITY OF NEWPORT 5EACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, MING St DWN AS PARCEL ONE OF PARCEL MAP NO. 2001 -140, FILED IN 3O0K 32G AT PAGES 48 TrIROUG61 50, INCLUSIVE OF FARCEL MAPS. IN T`I_` OFFICE OF 761E COUNTY RECORDER OF SAID COUNTY. The Keith Companies l7wo 2555 Ace Kl A"wc. cstc Mesa, :A S2E2f (71 41? 540 -0800 5A7: 05115/0= I JOE" NO. 7:zc7.0;.000 it �11 1 EXHIBIT C 11 �I �i �I _ D>= FICTION OF BLUE r 5 RrE T AIL CENTER l / 1 i L —� Big AVENUE I -. � - I I a u 0 i The Keith Companies��� 2955 Red KL' avenue, C,sic Mesa CA 52626 OIA) 640 -0800 r' s�-o ow^� arooe mr ( DA 7-E: 091 iE /C2 I JD° N0. i,sfr7.D7.000 EXHIBIT a DEPICTION OF MAINTENANGE AREA f I � � i REiAL 5HOPppPM& r� 7 - l ti ��" %�fi`�i��:! u� g The Keith Compecie =_I=n<c 2888 Fed HiC Avenue, ^cs¢ )A x. CA M26 "714) W -0800 Exhibit E Description of Company Improvements; Plans & Specifications Description of Company Improvements The Company Improvements shall consist of such landscaping, landscape irrigation systems, lighting, signage, sidewalks and other improvements as more specifically described in the Plans and Specifications described below. Plans and Specifications Plans and Specifications entitled "TheBluffs Retail Center," prepared by Kirby & Company, more specifically described as follows: a. Sheet Number L0.1, Title Sheet, dated 2/5/03. b. Sheet Number L2.1, Irrigation Plan, dated 11/20/02. C. Sheet Number L2.2, Irrigation Plan, dated 2 /5/03. d. Sheet Number L2.4, Irrigation Legends & Notes, dated 9/5/02. e. Sheet Number L2.5, Irrigation Details, dated 9/5/02. f Sheet Number L2.6, Irrigation Details, dated 9/5/02. 9. Sheet Number L3.1, Planting Plan, dated 2/5/03. h. Sheet Number L3.2, Planting Plan, dated 2/5/03. i. Sheet Number L3.5, Planting Details, dated 11/20/02. j. Sheet Number L3.6, Planting Details, dated 11 /20/02. k. Sheet Number L3.7, Planting Details, dated 12/6/02. JR030209- 0032\335793.7 1/20'03