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HomeMy WebLinkAboutC-7224-4 - Temporary Construction EasementTEMPORARY CONSTRUCTION EASEMENT (City Improvements next to Promontory Point Apartments) THIS TEMPORARY CONSTRUCTION EASEMENT (the "Easement Agreement") is made as of January 22, 2019 (the "TCE Commencement Date") by and between Promontory Point Apartments LLC, a Delaware limited liability company ("PPA"), and the City of Newport Beach, a municipal corporation and charter city ("City"). RECITALS A. PPA is the fee owner of certain real property located in the City of Newport Beach, County of Orange, State of California, described as Parcels 1 and 3 as per map filed in Book 49, Page 15 of Parcel Maps, in the Official Records of Orange County, California (the "PPA Property"). PPA operates an apartment community known as "Promontory Point" on the PPA Property. The PPA Property is located adjacent to Bayside Drive and Jamboree Road. The portion of the PPA Property that is subject to this Easement Agreement is described and depicted on Exhibit A attached to this Easement Agreement (the "Easement Area"). B. In connection with City's Bayside Drive, Marine Avenue and Jamboree Road Rehabilitation Project (the "Project"), City desires to perform the following within the Easement Area: (i) modify the slopes on the PPA Property and construct a retaining wall to create room for adjacent sidewalk improvements, (ii) construct sidewalk and drainage improvements, (iii) perform grading as required to construct the Project, and (iv) remove and replace landscaping and landscape irrigation lines impacted by the construction of the retaining wall, sidewalk and drainage improvements (collectively, the "Project Improvements"). The Project Improvements are more specifically described in those certain plans entitled "Bayside Drive, Marine Avenue and Jamboree Road Rehabilitation C-7224-1" dated September 10, 2018, and prepared by Arturo Vivar of Mark Thomas (the "Project Plans"), which Project Plans have been approved by PPA prior to execution of the Easement Agreement. City will obtain access to the Easement Area across and through existing Jamboree Road and Bayside Drive street right-of-way. C. City desires permission to enter the Easement Area to facilitate construction of the Project pursuant to the Project Plans. D. In connection with City's proposed construction of the Project, City has requested that PPA grant to City a temporary easement over the Easement Area for access and construction purposes, and PPA is willing to provide such temporary easement upon the terms and conditions contained herein to facilitate construction of the Project. AGREEMENT NOW, THEREFORE, in consideration of the promises and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: A. Changes to Proiect Plans. In the event of any change to the Project Plans that would (a) require that additional portions of the PPA Property be used for the Project, (b) change the boundaries of the Easement Area under this Easement Agreement or under the permanent easement to be conveyed by PPA to City after completion of construction of the Project, or (c) change the proposed Project Improvements, such as changes to drainage or retaining wall footings (each, a "Proposed Change Affecting PPA Property"), City agrees to provide copies of said proposed changes to PPA for its review and approval prior to City's implementation of such proposed changes. PPA agrees to complete its JR030110-1010\4837-8089-5107 v.3 12/19/2018 review and provide its comments or suggested changes to same to City within ten (10) business days of PPA's receipt of any such Proposed Change Affecting PPA Property provided by City. After receipt of PPA's comments, City shall take any one or more of the following steps: (i) revise the Project Plans in accordance with PPA's comments and resubmit same to PPA for its approval; or (ii) revert to the Project design shown on the Project Plans. The Parties will follow the above process until PPA approves each Proposed Change Affecting PPA Property. If PPA fails to provide its comments to City within ten (10) business days of PPA's receipt of any Proposed Change Affecting PPA Property provided by City, the changes shall be deemed to be approved by PPA. PPA's review of or concurrence in the course of City's preparation of the Project Plans, or PPA's subsequent review of any Proposed Change Affecting PPA Property, shall be only as to the conformity of same with the requirements of this Easement Agreement and their impacts on the PPA Property, and shall not be deemed to be a review of the engineering design or the adequacy or sufficiency of the design or final improvement plans or of the construction contemplated thereby for any use or purpose. Further, by reviewing the Project Plans or approving any Proposed Change Affecting PPA Property, PPA assumes no liability or responsibility therefor or for any defect in the design of the Project or any construction performed by or on behalf of City pursuant to any Project Plans approved by PPA. B. Grant of Temporary Easement. 1. Description of Easement. PPA grants to City a temporary easement (the "Easement") in, on, over and across the Easement Area to construct the Project in accordance with the Project Plans that have been approved by PPA, subject to the terms and conditions set forth in this Easement Agreement. 2. Character of Easement. a. Specific Uses and Purposes. The Easement is granted for and is limited to the following uses and purposes: (i) Construction of the Project Improvements within the Easement Area; (ii) Deposit of tools, implements and other materials necessary in connection with Project construction, but without the right to use the Easement Area for storage of materials, tools or equipment; (v) Ingress and egress over the Easement Area in connection with any of the foregoing activities. All of the uses and activities listed above shall be performed in such a manner that there is no disturbance at any time to any portions of the PPA Property outside of the Easement Area, including without limitation the surface of any parking lot located within the PPA Property or any retail shopping center properties owned by The Irvine Company LLC or any of its affiliates on Bayside Drive (collectively, "Retail Center Property"). Further, unless otherwise approved in writing by PPA, there shall be no barricades (other than as necessary for construction of the Project Improvements in accordance with the Project Plans) of any vehicular or pedestrian entries into the PPA Property or any other activities undertaken within the Easement Area that would preclude use of the parking lots by the tenants and occupants of the apartment buildings on the PPA Property or the Retail Center Property, nor shall there be any parking of vehicles or equipment or storage of materials related to Project construction on the PPA Property or the Retail Center Property. b. Nonexclusive. PPA retains the nonexclusive right to use, and to grant to others the nonexclusive right to use, the Easement Area for all lawful purposes that do not materially interfere with the uses and purposes specified in Section B.2(a) above. JRC\30110-1010\4837-8089-5107 v.3 12/19/2018 2 C. Use of Easement. Use of the Easement shall be limited to City and its construction manager and its and their employees, invitees, contractors, representatives and agents (the "City Parties"). The Easement Area will not be open to the general public. The Easement Area may be used only during hours specified by City ordinance for construction of public improvements. City's use of the Easement shall at all times be conducted in a manner that minimizes disruption of the ongoing operations of all apartments and businesses on the PPA Property and Retail Center Property. d. Limited to the Easement Area. Nothing contained in this Easement Agreement shall be deemed to grant any rights as to any property owned by PPA other than the Easement Area. e. Term. The term (the "Easement Term") of the Easement shall be from the TCE Commencement Date set forth on the first page of this Easement Agreement until the first to occur of any of the following (the "TCE Termination Date"): (i) The date inserted by the PPA Contact Person as defined herein, as the "TCE Termination Date" in the TCE Closure Form after completion of the Project and PPA's inspection of the Easement Area pursuant to Section H below; or (ii) Use of the Easement Area for any purpose not expressly permitted in this Easement Agreement or violation by City of any material term contained in this Easement Agreement where such unpermitted use or violation is not cured within ten (10) business days of City's receipt of written notice from PPA; provided, however, that if such violation is of a type that cannot reasonably be cured within ten (10) business days, it will be deemed cured if City commences to cure the violation within such period and proceeds diligently thereafter to complete the cure of such deficiency. f. Subject to Existing Conditions. The Easement is subject to all easements, covenants, conditions, restrictions, reservations, rights and rights-of-way, of record, apparent by reasonable inspection, or of which City has actual notice, as such matters now affect the Easement Area. g. Incorporation of General Provisions. The General Provisions Regarding Construction of Project ("General Provisions") attached hereto as Exhibit B shall apply to all work performed pursuant to this Easement Agreement. h. Definition of Easement Activities. As used in this Easement Agreement, "Easement Activities" shall mean any and all acts or omissions which result from or relate to, whether directly or indirectly, the rights granted to, and obligations undertaken by, City and the other City Parties pursuant to the terms of this Easement Agreement, whether occurring before or after the TCE Commencement Date. Condition of Easement Area. a. City acknowledges that neither PPA nor any person or entity acting on behalf of such entity has made any representation or warranty, express or implied, as to the condition of the Easement Area or its suitability for the purposes described in this Easement Agreement, and that PPA has no duty to inspect the Easement Area and no duty to warn any person of any latent or patent defect, condition or risk that might be incurred in the exercise of the rights granted in this Easement Agreement. JR0301 10-101 0\4837-8089-5107 v.3 12/19/2018 b. City further acknowledges that it has inspected the Easement Area, is fully aware of the condition thereof and agrees to accept and use the same, if at all, in its "AS IS" condition with any and all defects. C. Compliance with Law; Maintenance; Protection of Facilities. 1. Compliance with Law. City shall, at its sole cost, comply with all applicable laws, regulations and rules with respect to the use of the Easement Area, including, without limitation, any laws, regulations and rules that govern storm water quality and erosion control. 2. Protection of Existing Facilities. a. Protection of Facilities. City shall during the Easement Term, at no cost to PPA, protect in place any existing utilities, pipelines, conduits, irrigation lines, drainage facilities or other improvements existing on the Easement Area, except for any of the foregoing to be altered in accordance with the Project Plans approved by PPA. Unless any temporary or permanent relocation or alteration of such facilities is shown on the Project Plans, any temporary or permanent relocation or alteration of such facilities shall be subject to the prior written approval of PPA. In addition, if applicable, the utility company or any other third party having an existing easement or license over the Easement Area must approve of the temporary or permanent relocation of such facilities. b. Repair of Damage. City shall, at its sole cost, promptly restore (to substantially the same condition as immediately prior to such damage) any improvements located upon, under, over, across or along the Easement Area that are damaged in connection with the Easement Activities, consistent with the requirements of Section 2.13 of the General Provisions. D. Restoration of Easement Area upon Termination; Remedy for Failure to Restore. Upon completion of the Easement Activities within the Easement Area, City shall, at its sole cost, repair or replace utilities, improvements, trees and other landscaping damaged, destroyed or affected by the Easement Activities as nearly as practical to the condition that existed as of the TCE Commencement Date except to the extent such items are required to be altered in connection with construction of the Project Improvements in accordance with the Project Plans. Upon completion of any such restoration work, City shall schedule an inspection of the Easement Area with PPA's Contact Person and submit a copy of the TCE Closure form (completed as to the City portion) in the form of Exhibit C. After PPA inspects the Easement Area and confirms that the restoration has been completed to PPA's reasonable satisfaction, PPA shall execute the TCE Closure Form, insert the TCE Termination Date in the space provided at the bottom of said form, and deliver a signed copy of same to City. The TCE Termination Date shall be the effective date of the Grant of Easement to City, which City shall be responsible to record promptly after insertion of such date and acceptance of the Grant of Easement by City. In the event that City does not accomplish the foregoing restoration work within the time period specified above (or fails to timely undertake any other action required of it under the terms of this Easement Agreement), PPA may provide City with written notice of such failure describing the deficiencies in reasonable detail. If such deficiency is not corrected within ten (10) business days of City's receipt of such notice, PPA 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 City commences to cure the deficiency within such period and proceeds diligently thereafter to complete the cure of such deficiency. If PPA elects to cure the deficiency, City shall reimburse PPA for its costs in curing the deficiency within thirty (30) days of City's receipt of PPA's invoice for such costs, which invoice shall be accompanied by copies of receipts evidencing the actual cost of cure incurred by PPA. Interest shall accrue on any amounts unpaid by City within said thirty -day period at the rate of ten percent (10%) per annum. JR0301 10-1010\4837-8089-5107 v.3 12/19/2018 4 E. Contact Person. The respective contact persons of PPA and City for all matters and other coordination of activities under this Easement Agreement are specified in Section 6 of the General Provisions. F. Miscellaneous. 1. Controlling Law. This Easement Agreement shall be governed by and interpreted in accordance with the laws of the State of California. 2. Notices. All notices, consents, demands, requests and other communications provided herein shall be in writing and shall be deemed to have been duly given if and when personally served or 48 hours after being sent by United States registered mail, return receipt requested, postage prepaid, to the other party at the following respective address (or such other address as PPA or City may designate to the other in writing): If to PPA: Promontory Point Apartments LLC c/o Irvine Company Apartment Communities 131 Theory Irvine, CA 92617 Attn: Dennis Sullivan And to: Irvine Management Company 550 Newport Center Drive Newport Beach, CA 92660 Attn: General Counsel's Office If to City: City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 Attn: Director of Public Works. 3. Severability. If any provision of this Easement Agreement, or the application thereof to any person or circumstances, is found to be invalid, the remainder of the provisions of this Easement Agreement, or the application of such provision to persons or circumstances other than those as to which it is found to be invalid, as the case may be, shall not be affected thereby. 4. Waiver; Remedies. No delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder, nor shall any single or partial exercise of any right, power or privilege hereunder, preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. 5. Successors. The covenants, terms, conditions and restrictions of this Easement Agreement shall be binding upon and inure to the benefit of the parties hereto and each of their respective successors and assigns. 6. Construction. Headings at the beginning of any section, paragraph and subparagraph are solely for the convenience of the parties and are not a part of this Easement Agreement. Any reference to a section herein includes all paragraphs and subparagraphs thereof. This Easement Agreement shall not be construed as if it had been prepared by either party, but rather as if both parties had prepared the same. JRC\30110-1010\4837-8089-5107 v.3 12/19/2018 7. Exhibits. Exhibits A throe, -h C attached hereto are hereby incorporated herein by this reference as if set forth in full in the body of this Easement Agreement. 8. No Third Party Beneficiaries. No person or entity other than the parties to this Easement Agreement shall be deemed to be a third party beneficiary hereof, and nothing in this Easement Agreement (either express or implied) is intended to confer upon any person or entity (other than parties to this Easement Agreement and their respective successors and assigns), any rights, remedies, obligations or liabilities under or by reason of this Easement Agreement. 9. Time of Essence. Time is of the essence of this Easement Agreement and each and every term and provision hereof. 10. Survival. The provisions of this Easement Agreement which by their nature would survive the expiration or earlier termination of this Easement Agreement (including without limitation, the insurance, indemnity and release provisions of Exhibit B) shall survive such expiration or earlier termination. [Signature Page Follows] JRC\301 10-101 0\4837-8089-5107 v.3 12/19/2018 6 [Signature Page to Easement Agreement] IN WITNESS WHEREOF, the parties have executed this Easement Agreement as of the day and year first above written. CITY OF NEWPORT BEACH, a municipal corporation and charter city By: 4= ra K. Leung U ty Manager ATTEST: M Leilani I. Brown �., City Clerk U ZP w - APPROVED AS TO FORM: �� ORN�P Aaron C. Harp (kN o�ltz��1 City Attorney PROMONTORY POINT APARTMENTS LLC, a Delaware limited liability company By: Name: Teresa A. Prestwood Title: Senior Vice President, Community Management Operations By: Name: Vonny Gillette Title: Assistant Secretary JRC\30110-1010\4837-8089-5107 v.3 12/19/2018 7 [Signature Page to Easement Agreement] IN WITNESS WHEREOF, the parties have executed this Easement Agreement as of the day and year first above written. CITY OF NEWPORT BEACH, a municipal corporation and charter city By: ATTEST: Leilani 1. Brown City Clerk APPROVED AS TO FORM: Aaron C. Harp fJ►MO�tLL\�� City Attorney JRCt30110-1010,4537-8089-5107 v.3 12/19/2018 Grace K. Leung City Manager PROMONTORY TPA MENTS' a Delaware limit liability om a By: Name: Teresa A.restwood Title: Senior Vic President, Community Management Operations By: 11 Name: Vonnyviecretary tte Title: Assista CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of G& On o (— W "7-0 tat before me, K ; 1 U" i ormw Date Here Insert Name And Title of th6 Officer t-� personally appeared 1� yjmD teN u> Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the perso whose nam ip re subscri�he o the within instrument and acknowledge e that h /sfe/ y executed th same In hy6�/h�r uthorized capacity(ies), and that by hA/h6r thei ignature s) o instrument the person(s), r they upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph O'sis true and correct. KRISTEN JARECKY Notary Public • California WITNESS my hand and official seal. i ;.•� Orange County i z Commission # 2215432 My Comm. Expires Oct 20, 2021 Signature Signatur o Notary blic Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: 0 (— 9- 2 Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Al. r�w�� Corporate Officer — Title(s)5;N& Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: 6lkvE nnRM-' Number of Pages: 9A'gner's Name: NN Corporate Officer — Tit e(s): ❑ Partner — ❑ Limited ❑ General ❑ Individual ❑ Attorney in Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: G: '✓�✓.v.�.'er: •✓ v.v.C`✓5V' LtiS'rr.'✓1—M •e1'6'.-.— -L6-.-✓.'�:�: :'er '.✓.'� -�.v.'� -�.'e� -n��-� •�4 e�,•er,•er � erb�i � ✓6'✓ti.': O 1 • • • • 0 M• • • • ill • �' I11 S • •S •1 Exhibit A Legal Description and Depiction of Easement Area JRC\30110-1010\4837-8089-5107 v.3 12/19/2018 A111 M111W z w w a w z 0 C) U K H z z O U Y Q 0 O d Qw w � LD F-: U Or LO z 0 0 r F2 2: �w 0 m a wP N H W KI O p) U ,n o g O � T o] a m a d ; u O O p L (n on U Exhibit B General Provisions ReEardine Construction of Project The following General Provisions shall apply to activities under this Temporary Construction Easement: Provisions related to Construction of Improvements. A. Changes to Project Plans. In the event of any changes to the Project Plans, City shall not commence construction of any Project Improvements that are the subject of any such changes within until City has complied with the provisions of Section A of this Easement Agreement. B. Liens. City shall not suffer or permit to be enforced against the Easement Area or any other portion of the PPA Property, any mechanics', materialmen's, contractors' or subcontractors liens or any claim for damage (collectively, "Liens") arising from the work of any construction, excavation, survey, tests, grading, repair, restoration, replacement or improvement, or any other work performed by City or any other City Parties in connection with the Project, but City shall pay or cause to be paid all of said liens, claims or demands before any action is brought to enforce the same against the Easement Area or any other portion of the PPA Property. If a Lien is recorded against the Easement Area or any PPA Property as a result of such activities by the City Parties, City shall, immediately at its own expense, either (1) record or file, or cause its Contractor to record and file, in the Official Records, a bond executed by a good and sufficient surety and reasonably approved by PPA, in a sum equal to one hundred twenty-five (125%) of the amount of the Lien, which bond shall guarantee the payment of any amounts that the claimant may recover on the Lien, together with such claimant's cost of suit in the action if the claimant recovers therein, or (ii) otherwise resolve such matter to PPA's reasonable satisfaction. If City fails to accomplish either such action within ten (10) days following City's receipt of notice of recordation of such Lien, PPA may, at its election, either obtain the bond described above or pay all or a portion of the Lien claim. Any amount paid by PPA either for the premium of the bond or for the removal of the Lien, shall be immediately reimbursed by City together with interest thereon at the rate of 10% per annum. Notwithstanding anything to the contrary set forth above, if City shall in good faith contest the validity of any such lien, claim or demand, then City shall, at its expense, defend itself and PPA against the same and shall pay and satisfy any adverse judgment that may be rendered thereon before any enforcement thereof against PPA or the Easement Area or the PPA Property, but only upon the condition that if PPA shall so require, City shall procure and record or furnish to PPA a surety bond or other acceptable security satisfactory to PPA in an amount at least equal to such contested lien, claim or demand indemnifying PPA against liability for the same, and holding the Easement Area and the PPA Property free from the effect of any such lien or claim. C. Notice of Non -Responsibility. PPA shall have the right to post and maintain notices of non -responsibility adjacent to the Easement Area in locations that do not materially interfere with City's construction of the Project. D. Hazardous Materials. No "hazardous or toxic wastes, substances or materials," as such terms are or may from time to time be defined by Federal, state, county or municipal laws, ordinances, orders or regulations applicable to the use of the Easement Area (which regulated materials are collectively hereinafter referred to as "Hazardous Materials") shall be placed or used or allowed to be placed or used on the Easement Area by the City Parties. In the event any Hazardous Materials are discovered or known to exist on the Easement Area or in the groundwater beneath the Easement Area or otherwise to have escaped or emanated from the Easement Area as a result of either or both the activities of the City Parties or the construction of the Project, City shall at its cost diligently arrange for and complete the immediate removal thereof and all clean-up and remedial measures ordered by any applicable governmental agency. City shall JRC\301 10-1010\4837-8089-5107 v.3 12/19/2018 Exhibit B Page 1 of 5 promptly report to PPA in writing any unusual or potentially important "incidents" involving Hazardous Materials, including spills, fires, revocation of permits and receipts of notices of violation, including but not limited to: (i) all required reports of spills, storage, use or existence of Hazardous Materials, including notices of any release of Hazardous Materials required by Superfund, EPCRA, California Health & Safety Code Section 25359.7, or any other applicable law or regulation, (ii) all spills and other releases of Hazardous Materials and all fires, (iii) all notices of suspension of any permits, (iv) all notices of violation from Federal, state or local authorities, (v) all orders under the Hazardous Waste Control Act and the Hazardous Substance and Account Act, and the corresponding Federal statutes concerning investigations, compliance schedules, clean-up or other remedial action, (vi) all orders under the Porter -Cologne Act, including corrective action orders, cease and desist orders, and clean-up and abatement orders, (vii) any notices of violation from OSHA or Cal -OSHA concerning employees' exposure to Hazardous Materials, and (viii) all complaints and other pleadings filed against any of the City Parties related to the use, storage, disposal or release of Hazardous Materials on or from the Easement Area. E. Protection of Existing Facilities Within Easement Area. City shall, during the term of this Agreement, at no cost to PPA, protect in place any existing utilities, pipelines, sewers, storm drains, irrigation lines, drainage facilities and other improvements (collectively, "Facilities") within the Easement Area of any Temporary Construction Easement (unless as otherwise shown on the Project Plans approved by PPA); provided, however, that City may (a) remove landscaping within the Easement Area provided that it replaces any trees, shrubs or other landscaping with replacement landscaping as specified in the Project Plans, and (b) relocate or otherwise alter existing Facilities after first obtaining approval of same as provided below. Any temporary or permanent relocation or alteration of any Facilities within said Easement Area shall be subject to the prior written approval of PPA and, if applicable, the utility company or any other third party having an existing easement or right over said parcel. With respect to any relocation or alteration of Facilities proposed by City within said Parcel, City shall submit the plans and specifications for the relocation to PPA for review and approval prior to any disruption of the existing Facilities (unless such relocation or alteration is shown on the Project Plans). F. Coordination and Staging of Construction. City shall, or shall cause its contractors to, coordinate their planned construction within the Easement Area with PPA prior to commencement of work within each Easement Area. City acknowledges that a residential apartment community is located on the PPA Property adjacent to the Easement Area, and City will require its contractors to use best efforts to minimize interference with the operations of the apartment community and residents thereof during its activities under the Easement Agreement, including but not limited to, compliance with the following: (1) Access to Easement Area. Unless otherwise agreed by PPA in writing, City shall require its contractors to take access to any Easement Area adjacent to PPA Property from the side of the Easement Area closest to the existing public right-of-way and not from the PPA Property side of the Easement Area; (ii) Use of Restrooms. City shall advise its contractors that restrooms in the leasing office or any other building on PPA Property and the Retail Center Property are for the employees, residents and tenants of such properties, and that contractor and its employees shall not use such facilities. (iii) Parking. Unless otherwise agreed by PPA in writing, City shall require that all City Parties shall not at any time park vehicles or equipment within any portion of the PPA Property or the Retail Center Property. JRC\30110-1010\4837-8089-5107 v.3 12/19/2018 Exhibit B Page 2 of 5 (iv) Work Hours. City shall require that its contractors and their employees comply with work hours established under City ordinances unless otherwise specified in the Project Plans. (v) Lane Closures. In addition to the requirements of the Project Plans, City agrees that in connection with any work that would impair access to the apartment community on the PPA Property, City's contractor shall coordinate with PPA in advance and when PPA approval has been obtained, shall stage its work so that no more than one lane of traffic into the PPA Property is closed at one time, and then only during the work adjacent to such entry. At the end of each work day, contractor shall cover any excavated area over any access points with steel plates or other devices capable of withstanding the weight of vehicles entering the PPA Property, including delivery trucks, thereby permitting access to business on such property until commencement of contractor's work the following work day. (vi) Storage. City shall advise its contractors that they shall not use any portion of the PPA Property outside of the Easement Area for storage of materials, equipment, trailers, portable toilets or any other materials. (vii) Lessee Coordination. City acknowledges that PPA's conveyance of the Easement does not mean that any lessee or resident of the apartments on the PPA Property or the stores within the Retail Center Property has been notified by PPA or the owner of the Retail Center Property of City's construction activities, and that City shall be responsible for responding to any requests for information raised by such lessees and residents at City's sole cost. (viii) Trash Removal, Street Cleaning. At the end of each work day for all activities next to PPA Property, City's contractors shall clean trash from any portion of the Easement Area that may impede access to the PPA Property, and generally clean the Easement Area so that it maintains a neat appearance. Contractor shall dispose of all trash from the Project at locations off the PPA Property and shall not use any trash receptacle or storage containers on the PPA Property for disposal of Trash. In addition, at the end of each work day and during the work day where project work causes mud or dirt within or outside the entry points to the PPA Property, City's contractors shall sweep or otherwise clean such area and parking lot surface to a neat and clean condition acceptable to PPA. 2. Maintenance. Repair and Restoration Obligations. A. Maintenance. City shall, at its sole cost, keep and maintain the Easement Area in a safe condition at all times, and in accordance with any laws, regulations and rules governing the construction of the Project. B. Repair of Damage; Restoration. City agrees at its sole expense to: (i) Repair or replace any damage to any improvements, including, without limitation, walls and facilities located upon, under, over, across or along the Easement Area, as well as any improvements located on PPA Property outside of the Easement Area, that are in any manner whatsoever damaged or removed in connection with the construction of the Project or the exercise by City of the rights granted under this Easement Agreement or any Exhibit hereto, within five business days of any damage thereto (after PPA's approval of the proposed repair plan). Notwithstanding the foregoing, any improvements within the Easement Area covered by any Temporary Construction Easement that are constructed, removed or changed in order to complete the Project in accordance with the Project Plans shall not be considered to (A) be damaged or to require repair or replacement by City, or (B) have 18030110-1010\4837-8089-5107 v.3 12/19/2018 Exhibit B Page 3 of 5 adversely affected any adjacent PPA Property so long has City has complied with the provisions of this Easement Agreement. (ii) Upon completion of the activities and work within the Easement Area or at such times as otherwise agreed by PPA, City shall (A) perform erosion control and other restoration work within the Easement Area in accordance with the requirements of this Easement Agreement, and (B) certify to PPA in writing that the Easement Area and any other PPA Property damaged during the course of constructing the Project have been repaired and restored in accordance with this subsection. (iii) In addition to the foregoing requirements, after PPA's inspection of the Easement Area upon completion of the Project, City shall provide PPA with any environmental assessment or analysis reasonably requested by PPA to confirm that the Easement Area has not been adversely affected by any activity related to the Project and interim uses of the Easement Area that occurred during the City's activities pursuant to the Easement Agreement. In the event any portion of the Easement Area has been so adversely affected by any of such activities, City shall arrange for, contract with licensed contractors, and pay for the cleanup and restoration of the affected portions of the Easement Area to its original condition (other than for improvements constructed in accordance with the Project Plans), all in accordance with all applicable laws, ordinances, regulations and orders of any nature with respect to Hazardous Materials or environmental contamination as soon as practicable after the completion of the applicable environmental assessment or analysis. In the event that City does not accomplish any repair, replacement or restoration required pursuant to this Section within the time periods specified above, PPA may provide City with written notice of such failure describing the deficiencies in reasonable detail. If such deficiency is not corrected within ten (10) business days of City's receipt of such notice, PPA 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 City commences to cure the deficiency within such period and proceeds diligently thereafter to complete the cure of such deficiency. If PPA elects to cure the deficiency, City shall reimburse PPA for its costs in curing the deficiency within thirty (30) days of City's receipt of PPA's invoice for such costs, which invoice shall be accompanied by copies of receipts evidencing the actual cost of cure incurred by PPA. Interest shall accrue on any amounts unpaid by City within said thirty -day period at the rate of ten percent (100/0) per annum. 3. Insurance. City shall comply with the insurance requirements specified in Exhibit B-1 as to insurance required of City, its construction manager and other contractors as described therein. Such insurance shall be obtained prior to commencement of construction of the Project and thereafter maintained at all times until completion of the Project, and in no event will such insurance be terminated or otherwise allowed to lapse prior to City's satisfaction of its obligations under the Easement Agreement or such longer period as may be specified in Exhibit B-1. The insurance required pursuant to the terms of the Easement Agreement shall provide coverage with respect to activities related to the Project occurring both before and after the Commencement Date of the Easement Agreement. 4. Indemnification. City hereby agrees to indemnify, defend with counsel reasonably satisfactory to PPA, protect and hold harmless PPA, The Irvine Company LLC and any person or entity controlling, controlled by or under common control with either such entity, and each of their respective owners, shareholders, partners, members, divisions, officers, directors, employees, representatives and agents, and all of their respective successors and assigns (collectively, the "Indemnitees" and each, an "Indemnitee"), and each of them, and its and their property from all claims, losses, liabilities, damages, penalties, fines, orders, judgments, liens, costs and expenses (including but not limited to, attorneys' fees, court costs and expert witness fees) of any nature (collectively, "Claims"), whether incurred by or made against any Indemnitee, arising out of, based upon or relating to (a) the Project and all other activities JRC\301 10-101 0\4837-8089-5107 v.3 12/192018 Exhibit B Page 4 of 5 related to the construction of the Project, including but not limited to mechanics liens and claims of any nature related to Hazardous Materials. (b) the use of the Easement Area, (c) the presence of the City and the City Parties on the Easement Area and anv other PPA Property, or (d) the performance or nonperformance by City of its obligations under the Easement Agreement. provided, however. that nothing contained in this Section shall operate to relieve an Indemnitee from any Claim to the extent determined by a court of competent jurisdiction to be proximately caused by the negligence or willful misconduct of such hldemnitee. Payment of any claim by all Indemnitee shall not be a condition precedent to City's obligations under this Section. City's obligations under this Section shall not be construed as to negate or otherwise reduce any other right or obligation of indemnity that would otherwise exist at law or in equit}. The indemnity obligations hereunder shall survive termination or expiration of tine Easement Agreement until expiration of the applicable statute of limitations for any Claim. 5. Release. City releases each and all of the Indemnitees of and from and any and all Claims related to matters arising under this Easement Agreement or the Project, whether known or unknown. which may exist as of the date of the Easement Agreement or thereafter. which Cit- has ever had or claimed to have had or now has or claims to have or hereafter may have or claim to have against the Indemnitees (the "Reletised Claims"): provided, however, that the Released Claims shall not include, and no indemnitee shall be released from. any Claim to the extent determined by a court of competent jurisdiction to have been caused by the negligence or willful misconduct of such indemnitee. City covenants that it will not bring any action, suit or proceeding in law or in equity against the indemnitees with respect to any Released Claims. City acknowledges that it has been informed by its attorneys and advisors of the provisions of California Civil Code Section 1542 and that it is familiar with and expressly waives the provisions of said Section, and any similar statute, code, law, or regulation orally state of the United States, or of the United States, to the fullest extent that it may waive such rights and benefits. Said Civil Code Section reads as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TiME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR." 6. Contact Person. City and PPA hereby designate the following persons to act as their respective representatives for purposes of communications, approvals or other matters under this Easement Agreenlent and for coordination of any matters related to this Easement Agreement and the Grant of Easement to be granted fbr the completed sidewalk and drainage improvements. City and PPA agree that execution of any approval or written communication by such person shall be binding on the party upon whose behalf the Contact Person is signing. Either parte may substitute another person in place of the person designated below by providing written notice to the other parte. Cit' Contact Person: Patrick Arciniega City of Newport Beach 100 Civic Center Drive Newport Beach. CA 92660 Phone: (949) 644-3347 E-mail: PArciniega@newportbeachca.gov .114'.30110-1010'4837-8080-5107 v.3 12/ 19,12018 PPA Contact Person: Dennis Sullivan Irvine Company Apartment Communities 131 Theory Irvine. CA 92617 Phone: ( 949) 720-2417 E-mail: dsuilivan@.irvinecompaiiy.com Exhibit B Page 5 0l'; Exhibit B-1 Insurance Requirements Insurance Types. (a) Prior to commencement of construction of the Project, City shall obtain, or shall cause its contractor or third party construction manager ("Contractor") to obtain, all insurance required to be obtained pursuant to the terms of this Exhibit. In addition, City shall require any other contractors undertaking work in connection with the Project on behalf of City ("Other Contractors') to carry the levels of insurance specified in Section 12 below, and shall cause Contractor and the Other Contractors to comply with the provisions of Paragraphs 11 and 12 below. (b) All insurance described in this Exhibit will be maintained at no expense to PPA with insurance carriers authorized to do business in California, having a general policyholder's rating of not less than an "A" and financial rating of not less than "VII" in the most current Best's Key Rating Guide. In no event will such insurance be terminated or otherwise allowed to lapse prior to City's completion of the Project or such longer period as may be specified herein. The insurance described in this Exhibit may be provided in whole or in part through a policy or policies covering other liability and projects; provided, however that (a) the aggregate limit contained in any such policy or policies providing general liability or environmental liability coverage shall apply exclusively to the subject matter of this Easement Agreement, and (b) all such policies shall contain, permit or otherwise unconditionally authorize the waiver contained in Paragraph 9 below. The various limits of liability specified in this Exhibit may be provided by any combination of primary and excess liability insurance policies. 2. Evidence of Insurance. As evidence of specified insurance coverage, City shall deliver, or cause to be delivered, and PPA will accept: (a) certificates issued by the appropriate insurance carrier (not insurance agents) showing such policies in force for the specified period, together with (b) policy endorsements signed by the appropriate insurance carrier (not insurance agents) evidencing: (i) the notice requirements specified below in this Paragraph 2, (ii) the Contractual Liability coverage specified in Paragraph 5 below, (iii) the waiver of subrogation specified in Paragraph 9 below, and (iv) the coverage with respect to "Additional Insureds" required pursuant to Paragraph 10 below; but PPA has the right to require to be submitted for PPA's review certified policies. Such evidence shall be delivered to PPA prior to the Effective Date. Each policy and certificate shall be subject to reasonable approval by PPA and shall provide that such policy shall not be subject to cancellation/non-renewal without thirty (30) days' prior notice in writing to be delivered by registered mail to PPA at the address set forth in the Agreement. JRC\30110-1010\4837-8089-5107v.3121192018 ExhibitB-I Page I of 4 From the cancellation section of the certificate of insurance shall be deleted the words "endeavor to" and "the failure to mail such notice shall impose no obligation or liability of any kind upon PPA." Should any policy expire or be cancelled before the expiration of the period during which the same was to be maintained and City fails immediately to procure, or cause the procurement of, other insurance as specified, PPA reserves the right, but shall have no obligation, to procure such insurance, and any amount paid by PPA for the premium thereof shall be immediately reimbursed by City together with interest thereon at the rate of 10% per annum. 3. Damages. Nothing contained in these insurance requirements is to be construed as limiting the type, quality or quantity of insurance City or any other party should maintain or the extent of City's or such other party's responsibility or liability for payment of damages resulting from Claims (as defined in Exhibit B to this Easement Agreement). The carrying of the insurance as specified herein shall not be construed to be a limitation of liability on the part of the City or any other party, nor shall it relieve City or any other party from any liability under this Easement Agreement or as a matter of law. Further, nothing herein shall be interpreted to waive any rights PPA may have as to City's or any other party's insurance, nor shall PPA be required to make a claim against such insurance. Without limiting the generality of the foregoing, any deductible limit shall be timely satisfied by City, at its sole cost. 4. Workers' Compensation Insurance. There shall be maintained workers' compensation insurance, including: (a) employer's liability at a minimum limit of one million dollars ($1,000,000) for all persons employed in connection with the Project, and (b) a waiver of subrogation by the insurance carrier with respect to PPA. Such insurance shall be in strict accordance with the requirements of the most current and applicable workers' compensation insurance laws in effect from time to time for projects in the City of Newport Beach. 5. Commercial General Liability Insurance. There shall be maintained with respect to all work in connection with the Project, commercial general liability insurance on an "occurrence" basis, with deductibles reasonably acceptable to PPA, with a combined single limit for bodily injury and property damage of five million dollars ($5,000,000), or limit carried, whichever is greater, covering, without limitation: (a) Operations, (b) Independent Contractors, (c) Products and Completed Operations, (d) Broad Form Contractual Liability, (e) Broad Form Property Damage, (f) Separation of Insureds clause (the policy shall not contain any cross liability clause or endorsement that excludes lawsuits between any insured parties), (g) Personal Injury, and (h) Explosion, Collapse and Underground Hazards (X, C, U). 6. Automobile Liability Insurance. There shall be maintained owned, hired and non -owned automobile liability insurance on an "occurrence" basis, with reasonably acceptable deductibles, covering all use of all automobiles, trucks, and other motor vehicles utilized in connection with the Project with a combined single limit for bodily injury and property damage of five million dollars ($5,000,000), or limit carried, whichever is greater. 7. Professional Liability Insurance. With respect to all architectural, design or engineering services undertaken as a part of the Project, there shall be maintained a policy of professional liability insurance, on a claims -made basis, with reasonably acceptable deductibles, with a limit of not less than one million dollars ($1,000,000), or limit carried, whichever is greater, covering prior acts. Such insurance shall be maintained for a period of at least five (5) years after the termination or expiration of this Agreement. 8. Environmental Impairment Liability Insurance. There shall be maintained, with respect to all activities in connection with the Project, environmental impairment insurance on a claims made basis, with reasonably acceptable deductibles, with a combined single limit for bodily injury and property damages of one million dollars ($1,000,000), or limit carried, whichever is greater, covering in substance JR030110-1010\4837-8089-5107 0 12/19/2018 Exhibit B-1 Page 2 of 4 acceptable to PPA: (a) injuries to persons due to actual or alleged exposure to Hazardous Materials, and (b) damage to soil, water, air or other property from Hazardous Materials (including, without limitation, any and all response or remediation costs). 9. Waiver of Subrogation. City hereby waives, on behalf of itself and all contractors and subcontractors performing work in connection with the Project, all rights against the Indemnitees for Claims to the extent covered by City's required policies of insurance. All policies of insurance required herein shall contain a provision under which the insurance carrier waives the right of subrogation with respect to PPA and such other parties specifically listed as "Additional Insureds" below. 10. Additional Insureds. The commercial general liability and the environmental impairment liability insurance policies required to be maintained pursuant to this Exhibit shall contain a provision naming as additional insureds the Indemnitees (collectively, the "Additional Insureds'). For purposes of naming the Indemnitees as additional insureds, the following provisions shall be included within each applicable policy: "It is understood and agreed that coverage afforded by this Policy shall also apply to the following persons as additional insureds, but only with respect to liabilities or claims caused by, resulting from, or arising out of the work of the named insured or of others performing the work on behalf of the named insured.- Promontory Point Apartments LLC, a Delaware limited liability company, Irvine Management Company, and any person or entity controlling, controlled by or under common control with either such entity, together with their respective owners, shareholders, partners, members, division, officers, directors, employees, representatives and agents, and all of their respective successors and assigns. This insurance is primary and any other insurance or self-insurance maintained by such additional insureds is noncontributing with this insurance as respects claims or liability caused by, arising out of or resulting from the acts or omissions or work of the named insured, or of others who performed work on behalf of the named insured. Any of such additional insureds may, at his/her/its election, pay any self-insured retention or deductible amount in connection with any claim or liabilityfor which coverage is or may be provided by such insurance, notwithstanding any other provision of the policy." In addition, such policies shall contain a provision that the naming of an additional insured shall not negate any right that the additional insured would have had as a claimant under the policy if not so named. 11. Contractor Agreements. If Contractor obtains any of the foregoing required insurance, prior to the date of the Easement Agreement, City shall deliver to PPA a copy of Contractor's written agreement to the terms of Paragraph 9 of this Exhibit. Further, prior to the commencement of any construction activity by Contractor and each Other Contractor, City shall deliver to PPA an indemnification and release from Contractor and each Other Contractor in form and substance identical to the indemnity and release set forth in Sections 4 and 5 of Exhibit B. 12. Other Contractor Insurance. The levels of insurance required to be carried by each Other Contractor for the following types of insurance shall be as follows (unless City or Contractor requires higher levels of insurance from such Other Contractors): (a) Workers Compensation: Same as required in Section 4 of this Exhibit. (b) Commercial General Liability: $2,000,000 General Aggregate, $1,000,000 Products and Completed Operations Aggregate; $1,000,000 Personal Injury Liability. Any Contractor responsible for work involving trenching or other work over five feet in depth shall carry $5,000,000 per occurrence and aggregate liability coverages; (c) Automobile Liability: $1,000,000 each occurrence; JR030110-1010W837-8089-51070 12/19/2018 Exhibit B -I Page 3 of 4 (d) Professional Liability: $1,000,000 per claim, and $2,000,000 in the aggregate. In addition to the above, City shall deliver to PPA, prior to the TCE Commencement Date, such Other Contractors' written agreement to the terms of Paragraph 9 of this Exhibit. JR030110-101014837.3089-5107 v.3 12/19/2018 Exhibit B -I Page 4 of 4 Exhibit C TCE CLOSURE FORM To: Dennis Sullivan, PPA Contact Person Re: Bayside Drive, Jamboree Road and Marine Avenue Rehabilitation Project Temporary Construction Easement With respect to the above -referenced Temporary Construction Easement, City hereby confirms that (a) it has completed its activities under said easement and makes the following representations to PPA, and (b) that upon the TCE Termination Date inserted below after PPA's confirmation of the restoration of the Easement Area, City shall have no further right, title or interest in the Easement Area: City Response City City's (circle one) Representation Initials Yes No City has removed all of its materials, equipment, trash or debris from the Easement Area. Yes No N/A All restoration work (including but not limited to erosion control and repair and replacement of damaged improvements and landscaping), has been completed in compliance with the requirements of the Temporary Construction Easement. Yes No All terms of the Temporary Construction Easement have been met by City. Date of Completion of Activities: CITY OF NEWPORT BEACH By: Name: David A. Webb Title: Public Works Director [Space below Double Line to be completed by PPA Contact Person] The undersigned representative of PPA hereby confirms that the above matters have been completed satisfactorily, and that the date set forth beneath the signature below shall be the TCE Termination Date for all purposes under this Temporary Construction Easement. Date: PAA Contact Person TCE Termination Date: , 20 JRC\30110-1010\4837-8089-5107 v.3 12/19/2018