MTS Doc. No. L4587.Q-09 ADM160.2
JOINT LICENSE FOR ENCROACHMENTSALONGTHE BAYSIDERAILCORRIDOR
THIS JOINT LICENSE (‘License”), made this / day of -.Jq’v6*’/’I,. 200 /(the “COMMENCEMENTDATE”),between the San Diego &Arizona Eastern Railway Company (SD&AE),a Nevada, nonprofit corporation and whollyowned subsidiary of the San Diego Metropolitan Transit System (hereinafter collectively referred to as “MTS”)and the Redevelopment Agency of the City of San Diego (hereinafter referred to as “Agency”).
RECITALS
A. MTS has constructed certain improvements associated with MTS Bayside Trolley line on Agency property (‘MTS Encroachments”).
B. Agency has constructed certain improvements associated withAgency’s Martin Luther KingJr., Promenade project on MTS property, including the MTS-owned easement area for the transformers at the Children’s Museum (“Agency Encroachments”).
C. The nature and location of the MTS Encroachments and Agency Encroachments are generally shown on that certain “Encroachment Map, Martin Luther King,Jr. Promenade from G Street gth to Avenue” (“Encroachment Map”), prepared by Berggren &Associates and dated February 11, 2002, which Map is incorporated herein by reference. The nature of the Agency Encroachment into the MTS transformer easement is shown on Exhibit“A”attached hereto and incorporated herein by reference.
D. It is the parties’ intention to memorialize the terms and conditions for the continued existence of the Agency and MTS Encroachments on the respective properties of the parties, including but not limitedto the terms for maintenance and relocation thereof, in this License.
NOW, THEREFORE, the parties covenant and agree as follows:
1. Subject to the terms and conditions hereinafter set forth, MTS licenses Agency to maintain the followingimprovements (hereinafter Agency Improvements) across, under, over, or along the property of MTS:
a. Plant materials; trees (including Palm Trees w/tree grates), shrubs, grass and other ground cover. b. Irrigation systems, including water meters, service conduits, electrical conductors, meter pedestals, controller boxes and controllers, back flow preventors, stainless steel cages, valves, sprinkler heads, quick couplers and all other items necessary for an optimal operating irrigationsystem. c. Vinylcovered chain linkfence and wrought iron fence. d. Area storm drains and storm drain pipes. e. Pull boxes for electrical and irrigation purposes. f. Flood lights on catenary poles along with all conduits, conductors, pull boxes and all other items necessary for a proper flood light system. g. Metal edging along planted areas. h. Concrete retaining walls. Pipes and iron sleeves. j. Metal bollards with chains. k. A portion of the special fountain at Gasiamp Park, including a small above ground structure housing a trash dumpster, electrical panel and air compressor, and all other items for optimal function of the fountain. Temporary screening on the inside of the fence surrounding the MTS transformer as shown on Exhibit“A”. The screening shall be removed when vines planted on the outside of the fence are mature enough to provide screening of the transformer, or three years from the Commencement Date of this Agreement, whichever occurs first. Agency shall maintain the vines as required by Paragraph 3.
The general location of the Agency Improvements identified above, except the screening, is shown on the Encroachment Map.
2. Subject to the terms and conditions hereinafter set forth, Agency licenses to MTS the right to maintain the followingimprovements (hereinafter MTS Improvements) across, under, over, or along the property of Agency of the type described below:
a. Electrical underground conduit and conductors. b. Electrical vaults, pull boxes and panels. c. Electrical meter boxes/pedestals with addresses of 301 Harbor Drive, 410 Front Street and 497, 499 and 503 Market Street d. Various cabinets/boxes, conduits, conductors, switches and other electrical items. e. Trafficsignal boxes. f. Catenary poles. g. Transformer control posts.
The general location of the MTS Improvements identified above is shown on the Encroachment Map.
3. Agency shall, at its own cost and subject to the supervision and control of MTS’sappointed representative, maintain the Agency Improvements in such a manner using such material that they willnot at any time be a source of danger or interference withthe present or future operation of any facilities owned and/or operated by MTS, or any of its subsidiaries or agents, on the MTS property. Any damage to such MTS facilities, including but not limitedto railroad tracks, track structure or ballast, caused by the existence or maintenance of the Agency Improvements shall be repaired by MTS at Agency’s expense.
4. MTS shall, at its own cost and subject to the supervision and control of the Agency’s appointed representative, maintain the MTS Improvements in such a manner using such material that they willnot at any time be a source of danger or interference withthe present or future operation of any facilities owned and/or operated by Agency on the Agency property. Any damage to such Agency facilities caused by the existence or maintenance of the MTS Improvements shall be repaired by Agency at MTS’s expense.
5. The parties shall reimburse each other for all costs and expenses incurred during the maintenance or reconstruction of the Agency or MTS Improvements on Agency or MTS Property, as the case may be, including, but not limitedto, plan review and approval, ROE
2 L4587.0-09 permit processing, the expense of furnishing inspectors andlor flagmen, and restoration of Agency or MTS property to its pre-construction condition.
6. insurance. The Agency and MTS shall each maintain the followinginsurance
(a) General Liability
(i) Self-insurance and/or an excess policyfor general liabilitycoverage of $5 million. The coverage described above shall cover bodilyinjury(including death) and property damage liability,owned and non-owned equipment, and blanket contractual liability. The policies shall not have endorsement limitations relating to operations on or near railroad property. (ii) The Agency’s policies shall name in the endorsement San Diego Metropolitan Transit System (MTS), San Diego Trolley, Inc. (SDTI), San Diego and Arizona Eastern Railway (SD&AE),San Diego and Imperial Valley Railroad (SD&IV),San Diego Transit Corporation (SDTC), and their directors, officers, agents, and employees as additional insureds as their interests may appear. (iii) MTS’s policies shall name the Centre City Development Corporation (CCDC) and the Redevelopment Agency of the City of San Diego (Agency), their directors, officers, agents, and employees as additional insureds as their interests may appear.
(b) Automobile Liability
(I) Self-insurance and/or an excess policyfor automobile liabilitycoverage up to $2 miNion. The insurance shall indemnify against loss from liability imposed by law for damages on account of bodily injury,property damage, and personal injury. The automobile coverage shall cover all owned, non-owned and hired automobiles.
(c) Workers Compensation.
(i). The Agency and MTS shall cover or insure under the applicable laws relating to workers’ compensation insurance, all of their employees working on or about the Right-of-Way, all in accordance withthe “Workers’Compensation and Insurance Act,”DivisionIVof the Labor Code of the State of California and any Acts amendatory thereof. Agency and MTS shall provide employers’ liabilityinsurance in the amount of not less than two milliondollars per accident for bodily injuryand disease. By its signature hereunder, the Agency and MTS certify that they are aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liabilityfor workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and willcomply with such provisions in connection with any work performed on any area covered by this License. Any persons providing services with or on behalf of the Agency or MTS shall be covered by workers’ compensation (or qualified self-insurance.) Agency and MTS each waive any rights of subrogation against one
3 L4587.0-09 another or any of their subsidiaries, and the policy form must permit and accept such waiver.
(d) Railroad Protective Insurance. Agency shall remove any exclusions relating to performance of operations withinthe vicinityof any railroad, bridge, trestle, track, roadbed, tunnel, underpass, or crossing from its General LiabilityCoverage for both the self insured and excess policies or purchase a separate Railroad Protective Liabilitypolicy.
(e) For any claims arising out of or connected with this License the negligent party’s insurance shall be primary insurance to the other party whose insurance shall not contribute to it. All policies and coverages shall contain a provision for 30 days written notice by the Insurer(s) to the Agency or the MTS Contracts Specialist of any cancellation or material reduction of coverage. A ten- day notice is required for non-payment of premium.
(f) The Agency and MTS shall each insure that every contractor or subcontractor retained to perform any construction or maintenance of the Agency Encroachments or MTS Encroachments, who enters upon, uses, or performs any work upon the ROW by or on behalf of CITY shall provide evidence of insurance as follows:
(1) Commercial General Liability. At all times during this contract and, with respect to Products and Completed Operations Liability,for 12 months followingthe acceptance of the work the contractor agrees to maintain Commercial General LiabilityInsurance for bodily injuryand property damage in an occurrence form and with insurance companies acceptable to Agency and MTS with minimum policy limits of $2 milliondollars (per occurrence> for any general contractor and $1 milliondollars (per occurrence) for any sub-contractors. Commercial General Liability Insurance must include coverage for the following:
• Premises/Operations Liability • Aggregate Limitsper Project • Products/Completed Operations Liability • No Explosion, Collapse, and Underground (XCU)exclusion • Contractual Liability,with respect to this agreement • Personal InjuryLiability • Broad Form Property Damage • Independent Contractors
Allsuch policies shall name in the endorsement Redevelopment Agency of the City of San Diego (Agency), Centre City Development Corporation (CCDC), San Diego Metropolitan Transit System (MTS), San Diego Trolley Inc (SDTI) San Diego and Arizona Eastern Railway (SD&AE) San Diego and Imperial Valley Railroad (SD&lV),San Diego Transit Corporation (SDTC) the City of San Diego (CITY),and their directors, officers agents and employees as additional insureds as their interests may appear Allgeneral liabilitycoverages required under this Section 9(f) are PRIMARYand that any insurance of Agency CCDC MTS, SDTI SD&AE SD&IV SDTC and the CITYshall be excess and noncontributory (endorsement required)
4 L4587.O-09 Automobile Liability. Atall times during this contract, contractor agrees to maintain Automobile LiabilityInsurance for bodily injuryand property damage including coverage for all owned, nonowned, and hired vehicles at a minimum policy limitof $1 milliondollars. Allsuch policies shall name in the endorsement Redevelopment Agency of the City of San Diego (Agency), Centre City Development Corporation (CCDC), San Diego Metropolitan Transit System (MTS), San Diego Trolley, Inc. (SOT1),San Diego and Arizona Eastern Railway (SD&AE),San Diego and Imperial Valley Railroad (SD&lV),San Diego Transit Corporation (SDTC), the City of San Diego (CITY),and their directors, officers, agents, and employees as additional insureds as their interests may appear.
(ii) Workers’ Compensation/Employer Liability. At all times during this contract, contractor agrees to maintain Workers’ Compensation and Employers’ LiabilityInsurance in compliance with the applicable statutory requirements at a minimum policy limitof $1 milliondollars. contractor waives any rights of subrogation against Agency, MTS, CCDC, SDTI, SD&AE,SD&JV,SDTC, and the CITYand the policyform must permit and accept such waiver.
(iii) Railroad Protective Insurance. Remove any exclusions relating to performance of operations withinthe vicinityof any railroad, bridge, trestle, track, roadbed, tunnel, underpass, or crossing from its General LiabilityCoverage, or purchase a separate Railroad Protective policy in the amount of $1,000,000 in the name of MTS.
(iv) Allpolicies and coverages shall contain a provision for 30 days written notice by the Insurer(s) to the Agency and MTS of any cancellation or material reduction of coverage. A ten-day notice is required for non payment of premium.
7. Indemnification.
a. Agency: Agency shall indemnify, defend and hold harmless MTS, its Board, officers, directors, agents, and employees, RailAmerica, the San Diego and Imperial Valley Railroad (‘SD&IV”),the San Diego and Arizona Eastern Railway (SD&AE),San Diego Trolley, Inc. (SDTI), San Diego Transit Corporation (SDTC) any other entity performing maintenance work on the MTS Property, any other entity providing passenger rail operation services for MTS or SD&AEon the MTS Property, their officers, directors, agents and employees (“MTSIndemnitees”), from any and all liability,loss, expense (including reasonable attorneys’ fees and other defense costs), demands, suits, liens, damages, costs, claims, including, but not limited to, third party claims, claims for bodily injury,death, personal injury,or property damage, that are incurred by or asserted against the MTS Indemnitees arising out of or connected with the Agency Encroachments, the maintenance thereof, or any other device or appurtenance constructed by Agency on the MTS property pursuant to the terms of this License, and any
5 L4587.O-09 negligent acts or omissions on the part of the Agency, its Board, officers, agents, contractors, or employees.
b. MTS: MTS shaH indemnify, defend and hold harmless Agency and Centre City Development Corporation (CCDC), their Board, officers, directors, agents, and employees, any other entity performing maintenance work on the Agency Property, their officers, directors, agents and employees (“Agency Indemnitees”), from any and all liability,loss, expense (including reasonable attorneys’ fees and other defense costs), demands, suits, liens, damages, costs, claims, including, but not limitedto, third party claims, claims for bodily injury,death, personal injury,or property damage, that are incurred by or asserted against the Agency Indemnitees arising out of or connected with the MTS Encroachments, the maintenance thereof, or any other device or appurtenance constructed by MTS on the Agency property pursuant to the terms of this License, and any negligent acts or omissions on the part of MTS, its Board, officers, agents, contractors, or employees.
c. Concurrent Negligence: In the event of an act or acts of concurrent negligence which results in the filingof a demand, claim, or complaint against the parties, each party shall defend and represent itself such that each party shall bear its own costs and attorney’s fees.
8. Each party shall, after receiving written notice from the other party, in a time and manner mutually agreed upon, remove and relocate the MTS or Agency Improvements, as the case may be, constructed pursuant to this License, if it is determined that such Improvements interfere withthe current or future use of the MTS Property by MTS or the Agency Property by Agency. Such relocated Improvements may be relocated within MTS or Agency Property ifit is feasible to do so. The expense of relocating the Improvements shall be borne by the owner of the Improvements.
9. ln the case of eviction by either Agency or MTS by anyone owning or obtaining title to the MTS Property or Agency Property which is the subject of this License, or the sale or abandonment by MTS or Agency of the Property, the parties shall not be liable to each other for any damage of any nature whatsoever or refund or any payments made hereunder.
10. Allnotices to be given hereunder shall be given in writing, by depositing same in the United States mail duly registered or certified, with postage prepaid, and addressed to the Agency or MTS as the case may be at the addresses shown below, or addressed to such other address as the parties hereto may from time to time designate.
ToMTS: MTS Attn: General Counsel 1255 Imperial Avenue, Ste. 1000 San Diego, CA 92101749O
L4587.0-09 To Agency: CCDC Attn: Dave Allsbrook 401 B Street, Ste. 400 San Diego, CA 92101 ii. Allthe covenants and provisions of this instrument shall be binding upon and inure to the benefit of the successors, legal representatives and assigns of the parties to the same extent and effect as the same are binding upon and inure to the benefit of the parties hereto, but no assignment hereof by Agency or MTS, their successors, legal representatives or assigns, or any subsequent assignee, shall be binding upon either party without the written consent of the other party in each instance.
12. Any work performed on the MTS or Agency Property shall be done in a satisfactory workmanlike manner and in accordance with plans and specifications approved by MTS or Agency, as the case may be, and no work shall be permitted untilsaid plans and specifications have been approved.
13. Agency shall obtain a valid Right of Entry permit from MTS as a part of this License priorto entering upon the MTS Property (including the transformer easement) at any time to construct, reconstruct or remove the Agency Improvements and shall comply with the terms, conditions, and requirements of said permit, including the insurance requirements, as a part of this License.
THIS LICENSE DOES NOT GRANT UNLIMITEDACCESS TO THE MTS PROPERTY. FAILURETO OBTAINANDCOMPLYWITHTHE REQUIREMENTSOF A VALIDMTS PROPERTY PERMITWILLBE SUFFICIENT REASON FOR MTS TO TERMINATETHIS LICENSE.
a. Durable Maintenance ROE Permit. Notwithstanding the foregoing, MTS hereby grants to Agency a Durable Maintenance ROE Permit to allowAgency to enter onto the MTS property for routine maintenance of the Agency Encroachments, including, but not limited to, activities such as trash removal, landscape maintenance, cleaning, and similar maintenance activities. Entry into the MTS easement area for maintenance of the vines shall be by prior arrangement with MTS. The Durable Maintenance ROE Permit shall remain effective throughout the lifeof this License and be subject to all of the terms of this License, including but not limitedto the indemnity and insurance provisions. Entry onto the MTS/SDAE property by individuals or entities other than the Agency (such as contractors, agents, and non-Agency employees) shall require a separate ROE Permit as specified above.
14. MTS shall obtain a valid Right of Entry permit from Agency as a part of this license prior to entering upon the Agency Property at any time to construct, reconstruct or remove the MTS Improvements and shall comply with the terms, conditions, and requirements of said permit, including the insurance requirements, as a part of this License.
a. Durable Maintenance ROE Permit. Notwithstanding the foregoing, Agency hereby grants to MTS a Durable Maintenance ROE Permit to allow MTS to enter onto the Agency property for routine maintenance of the MTS Encroachments, including, but not limitedto, activities such as trash removal, cleaning, landscape
7 L4587.0-09 maintenance and similar maintenance activities. The Durable Maintenance ROE Permit shall remain effective throughout the life of this License and be subject to all of the terms of this License, including but not limitedto the indemnity and insurance provisions. Entry onto the Agency property by individuals or entities other than MTS (such as contractors, agents, and non-Agency employees> shall require a separate ROE Permit as specified above.
15. Any contractor or subcontractor performing work on or in connection with this License shall for the purpose of this agreement be conclusively deemed to be the servant and agent of Agency (for work on the MTS Property) or MTS (forwork on the Agency Property) and acting on behalf and withinthe scope of such contractor’s or subcontractor’s employment by Agency or MTS, as the case may be.
16. Dispute Resolution.
(a) The Parties agree that they shall first meet, through their senior staff representatives, to attempt to informallyresolve any dispute that arises under this License.
(b) Ifthe informal efforts are unsuccessful, then the Parties agree to participate in mediation. Withinfive (5) business days of the request of any party, the parties shall mutually agree on the person or alternative dispute resolution agency to conduct the mediation. Ifthe Parties are unable to agree on the person or alternative dispute resolution agency to conduct the mediation, the initiating party may arrange for the office of the American Arbitration Association in downtown San Diego, California, to perform the mediation. The initiatingparty shall then schedule the mediation so that it is conducted withinfive (5) business days of the mediator’s appointment. The costs of the mediation and fees of the mediator, ifany, shall be shared equally by the Parties.
(c) Any dispute not resolved through the mediation requfred by paragraph (b) of this Section, may proceed to litigation unless the Parties agree in writingto submit the dispute to binding arbitration.
(Signature Page to Follow)
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