HomeMy WebLinkAboutContracts & Agreements_24-2019AGREEMENT
BY AND AMONG THE INLAND VALLEY DEVELOPMENT AGENCY, SAN
BERNARDINO INTERNATIONAL .AIRPORT AUTHORITY AND THE CITY OF
REDLANDS
This AGREEMENT (this "Agreement"), dated as of the 5`i' day of February, 2019, (the "Effective
Date") is made by and among the Inland Valley Development Agency a_joint powers authority ("NDA")
and the San Bernardino International Airport Authority, a,jomt powers authority ("SBIAA") and the City
of Redlands, a general law city ("Redlands") Redlands, SBIAA the IVDA are each sometimes individually
referred to herein as a "Party" and, collectively, as the "Parties " The IVDA and SBIAA, acting either
together or individually, are sometimes hereinafter referred to as the "Agency "
RECITALS
WEEREAS, the borderline between the cities of San Bernardino and Redlands is located on the
centerline of Mountain View Avenue and NDA and/or SBIAA intend to construct improvements to
Mountain View Avenue to widen the street along both the San Bernardino and Redlands side of Mountain
View The improvements will also require a widening of the bridge over the Mission Creek at Mountain
View, and
WHEREAS, Southern California Gas Company has a gas line located within the Mission Creek
Bridge and other facilities within the Mountain View public right of way that will need to he relocated as
part of widening Mountain View Avenue, and
WHEREAS, for purposes of this Agreement, "Gas Company" means Southern California Gas
Company and any of its subsidiaries or related entities which own or control facilities located within the
Mountain View Avenue right of way or Mission Creek Bridge within Redlands' ,jurisdiction, and
WHEREAS, pursuant to Ordinance No 825, the substance of which is codified in Chapter 5 88 of
the Redlands Municipal Code, Redlands has granted a franchise to the Gas Company in accordance with
the Franchise Act of 1937 (California Public Utilities Code section 6201 et seq) to construct and use pipes
and other facilities for the purpose of transmitting and distributing natural gas and products thereof under,
across, and along public streets and tights -of -way upon terms and conditions provided in the Act and
Ordinance No 825, and
WHEREAS, section 5 88 080 of the Redlands Municipal Code expressly provides that the Gas
Company shall "Remove of relocate, without expense to the City [Redlands], any facilities installed, used
and maintained under the franchise if and when made necessary by any lawful change in grade, alignment
or width of any public street, way, alley or place, including the construction of any subway or viaduct by
the City, ' and
WHEREAS, the phrase "Franchise Rights," for purposes of this Agreement, shall mean all rights
Redlands may have under Californta Public Utilities Code section 6297, Redlands Municipal Code Chapter
5 88, and any applicable case law, to require the Gas Company to relocate its Facilities located within the
Mountain View Avenue right of way or Mission Creek Bridge within Redlands' .jurisdiction, and
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WHEREAS, Public Utilities Code section 6297 and various case law fin-ther provide that a public
utility that installs facilities within a public street has an obligation to relocate those facilities when made
necessary by any lawful change of grade, alignment, or width of the public street, and
WHEREAS, the phrase "Franchise Rights," fol purposes of this Agreement, shall mean all rights
Redlands may have under California Public Utilities Code section 6297, Redlands Municipal Code Chapter
5 88, and any applicable ease law, to require the Gas Company to relocate facilities located within the
Mountain View Avenue right of way or Mission Creek Bridge vaithm Redlands' jurisdiction, and
WHEREAS, the Parties have previously detennmed that the construction of full width
improvements to Mountain View Avenue will be a benefit to any future development of properties
located along or in the vicinity of Mountain View Avenue, and
WHEREAS, Redlands desires by this Agreement, to the extent provided for by lain, to authorize
Agency to exercise Redlands Franchise Rights foi relocation of a gas line and othei facilities owned by
the Gas Company that are located within those portions of Mission Creek Bridge and Mountain View
Avcnue (the "Facilities") within Redlands' jurisdiction, and
WHEREAS, Agency expressly acknowledges and agrees that Redlands makes no representations
to Agency with respect to the authority granted to Agency by this Agreement to request or seeking to
enforce the relocation of the Gas Company's Facilities,
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter
contained and for other good and valuable consideration, the receipt of which are hereby acknowledged,
the Parties agree as follows
AGREEMENT
Section 1 Recitals The Parties agree that the foregoing Recitals are true and correct and are
hereby incorporated into this Agreement by this reference
Section 2 Grant of Authorization
Section 2 1 Redlands hereby authorizes Agency to the extent penriitted by law to
exercise all Franchise Rights that Redlands may have as to the Gas Company foi the limited and sole
purpose to request or require the Gas Company to relocate the Facilities, at the Gas Company's cost, located
within the Mission Creek Bridge or Mountain View Avenue right of way Agency shall have the right to
initiate contact with the Gas Company and undertake negotiations with the Gas Company to relocate the
Gas Company's Facilities under the Franchise Rights Notwithstanding the foregoing, Agency shall not
have the right to take any of the following actions without the express, prior written consent of Redlands
(a) Comirut Redlands to pay any costs associated with the relocation of the Gas
Company's Facilities,
(b) Issue any approvals related to the design, planning, or pennitted of the relocation
of the Gas Company's Facilities, all of which rights are reserved to Redlands,
(c) Bind Redlands to any agreement with the Gas Company or any other person, entity,
or organization, or
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(d) File any action against the Gas Company seeking to enforce the Franchise Rights
The foregoing restnctions shall not prevent Agency, in its individual capacity (as opposed to
exercising its authority rights as Agency hereunder) from entering into any agreement with the Gas
Company to relocate the Facilities or pay any cost thereof so long as (i) such agreement is executed by
Agency (ii) contains provisions protecting the interests of Redlands in satisfaction of section 2 3 hereof,
and substantially in the form set forth in section 2 4 hereof, and (in) no obligation or responsibility is
imposed upon Redlands
Section 2 2 Agency shall pay all costs and expenses associated with exercising any
Franchise Rights of Redlands, and Redlands shall not be liable or responsible for any cost or expense in
connection therewith
Section 2 3 In the event the Gas Company undertakes the relocation of its Facilities
pursuant to this Agreement, Agency shall be responsible and liable to Redlands for ensuring the Gas
Company's compliance with section 5 88 080 of the Redlands Municipal Code which requires the Gas
Company to "Pay to the City, on demand, the cost of all repairs to public property made necessary by any
operations of the grantee [the Gas Company] under the franchise "
Section 2 4 Unless waived by Redlands at the request of Agency, in writing, Agency
shall cause to be incorporated into any agreement between the Gas Company and Agency provisions
relating to insurance and defense and indemnity obligations in substantially the form as follows
(a) Insurance
(i) Insurance to be, Primary All insurance required by this Agreement is to
he maintained by [Gas Company] for the term of this Agreement and shall be primary with
respect to [Redlands] and non-contributing to any insurance or self-insurance maintained
by [Redlands] [Gas Company] shall provide [Redlands] with Certificates of Insurance
evidencing such insurance concurrent with [Gas Company's] execution and delivery of this
Agreement to [Redlands], for [Redlands'] approval
(ii) Worker's Compensation and Employer's Liabili [Gas Company] shall
have Worker's Compensation and Employer's Liability insurance in an amount which
meets the statutory requirement with an insurance carrier acceptable to [Redlands] [Gas
Company] shall execute and provide [Redlands] with Exhibit " " entitled "Workers'
Compensation Insurance Certification," which is attached hereto and incorporated herein
by this reference prior to the relocation a of any Facilities pursuant to this Agreement
(in) Comprehensive General Liability Insurance [Gas Company] shall secure
comprehensive general liability insurance covering all work under this Agreement,
including work done by its subcontractors, with carriers reasonably acceptable to
[Redlands] Minimum coverage of one million dollars ($1,000,000) per occurrence and
two million dollars ($2,000,000) aggregate for public liability, property damage, and
personal injury is required [Redlands] shall be named as an additional insured and the
insurance policy shall include a provision prohibiting modification of the coverage limits
or cancellation of said policy except upon thirty (30) days prior written notice to
[Redlands]
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(iv) Business Auto Liability Insurance [Gas Company] shall secure business
auto liability coverage, with mimmum limits of one million dollars ($1,000,000) per
occurrence, combined single limit for bodily injury liability and property damage liability
Such coverage shall include all [Gas Company] owned vehicles used in connection with
the work performed pursuant to this Agreement, hired and non -owned vehicles, and
employee non -ownership vehicles [Redlands] shall be named as an additional insured and
the insurance policy shall include a provision prohibiting modification of the coverage
Iimits or cancellation of said policy except upon thirty (30) days prior written notice to
[Redlands]
(b ) Indemnification [Gas Company] shall defend, indemnify and hold harmless
[Redlands], and its elected and appointed officials, officers, employees and agents, from
and against any and all claims, damages, suits, losses or liability, including attorneys' fees,
arising from injury or death to any persons or damage to any property occasioned by any
negligent act or omission by, or the willful misconduct of, [Gas Company], or its officers,
employees, and agents, in performing the [relocation work]
Section 3 Term and Termination The term of this Agreement shall be for three (3) years
from and after the Effective Date, unless otherwise terminated or extended by mutual agreement of the
Parties Notwithstanding the foregoing, if any Parry breaches in any material respect any of its material
obligations under this Agreement, in addition to any other right or remedy, the non -breaching Party
may immediately terminate this Agreement in the event that the breach is not cured within thirty (30)
days after receipt by that Party of written notice of the breach
Section 4 No Partnership, Joint Venture, or Agent Nothing in this Agreement is intended
to, or shall be deemed to, establish any partnership or joint venture between Redlands and Agency, or cause
Agency to be deemed the agent of Redlands, nor authorize Agency to make or enter into any commitments
for or on behalf of Redlands
Section 5 Reimbursement of Costs and Expenses Agency shall reimburse Redlands for all
reasonable and actual costs and expenses incurred by Redlands in performing any services requested, or
made necessary by, Agency or the Gas Company in connection the activities of Agency and the Gas
Company in connection with the relocation of the Gas Company's Facilities
Section 6 Indemnity NDA and SBIAA, jointly and severally, hereby each agree to
indemnify, defend (with counsel reasonably approved by Redlands) and hold Redlands free and harmless
from and against any and all costs, expenses (including attorneys' fees), liability, damages, judgments or
awards arising out of Agency's requesting, or seeking to enforce, Redlands' Franchise Rights as to the Gas
Company with respect to improvements to Mission Creek Bridge or Mountain View Avenue and the
relocation of the Gas Company's Facilities
Section 7 Notices Demands and Communications between the Parties
Section 7 1 Formal notices, demands and communications between the Parties shall
be deemed sufficiently given if (i) dispatched by registered or certified mail via the United States Postal
Service, postage prepaid, return receipt requested, as designated in this section, or (n) by messenger service
for immediate personal delivery, or (in) by electronic transmittal, including fax transmissions with
telephonic verification receipt Such written notices, demands and communications maybe sent in the same
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manner to such other addresses as the Parties may from time to time designate by written notice to the other
Parties
Section 7.2 All notices, demands and communications shall be sent, as follows
To Redlands
City of Redlands
Attn City Manager
35 Capon Street, Suite 200
Redlands, CA 92373
To Agency
Inland Valley Development Agency
Attn Executive Director
1601 E Third Street, Suite 100
San Bernardino, CA 92408
Section 8 Amendment This Agreement may be amended at any time by the mutual consent
of the Parties by an instrument in writing signed by all of the Parties
Section 9 Further Actions and Instruments Each of the Parties shall cooperate with and
provide reasonable assistance to the other Parties to the extent contemplated hereunder in the performance
of all obligations under this Agreement and the satisfaction of the conditions of this Agreement
Section 10 Counterparts This Agreement may be signed in counterparts, each of which shall
constitute an original
Section 11 Time is of the Essence For each provision of this Agreement which states a
specific amount of time within which the requirements thereof are to be satisfied, time shall be deemed of
the essence
Section 12 Goveming Law This Agreement shall be governed by the laws of the State of
California without regard to conflicts of laws principles This Agreement shall be deemed to have been
made in the County of San Bernardino, State of California, regardless of the order of the signatures of the
Parties affixed hereto Any litigation or other legal proceedings which anse under or in connection with
this Agreement shall be conducted in a federal or state court located within or for the County, in the State
Section 13 Construction, References, Captions Because the Parties or their agents have
participated fully in the preparation of this Agreement, the language of this Agreement shall be construed
simply, according to its fair meaning, and not strictly for or against any Party Any term referencing time,
days or period for performance shall be deemed calendar days and not work days All references to
Redlands and to Agency include all elected and appointed officials, officers, employees, personnel, agents,
volunteers, contractors and subcontractors of Redlands and Agency, except as otherwise specified in this
Agreement The captions of the various articles and paragraphs of this Agreement are for convenience and
ease of reference only, and do not define, limit, augment or describe the scope, the content, or the intent of
this Agreement
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Section 14 Waiver No delay or omission in the exercise of any right or remedy of a non -
defaulting Party or Parties on any default shall impair such nght or remedy or be construed as a waiver
Any Party's consent or approval of any act by the other Party requiring its consent or approval shall not be
deemed to waive or to render unnecessary its consent to or approval of any subsequent act of the other
Party Any waiver by any Party of any default must be in writing and shall not be a waiver of any other
default concerning the same or any other provision of this Agreement
Section 15 Severability In the event that any one or more of the phrases, sentences, clauses,
paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid
judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect
any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are
hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder
Section 16 Binding Effect The terms of this Agreement shall inure to the benefit of, and shall
be binding upon, each of the Parties and their respective successors and assigns
Section 17 Authorized Representatives The person or persons executing this Agreement on
behalf of the Agency and Redlands warrant and represent that he/she has the authority to execute this
Agreement on behalf of that Party and that they have the authority to bind that Party to the performance of
its obligations hereunder
Section 18 Attorneys' Fees In the event any action is commenced to enforce or interpret any
of the terns, provisions, or conditions of this Agreement, the prevailing Party in such action, in addition to
costs and any other relief, shall be entitled to the recovery of its reasonable attomeys fees, including fees
incurred by a Party for the use of "in-house" counsel
Section 19. No Third Earty Beneficiaries. The provisions of this Agreement are for the sole
benefit of the Partiers and their successors and permitted assigns, and they shall not be construed as
conferring any right to any third party, including any third party beneficiary rights
Section 20 Entire Agreement This Agreement constitutes the entire and integrated agreement
of the Agency and Redlands with respect to the subject matter hereof and supersedes any and all prior and
contemporaneous oral or written negotiations, representations or agreements regarding the same
[SIGNATURES ON THE FOLLOWING PAGE]
b
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AGENCY
Inland Valley Developme ency
By'
Michael B ows, Executive Director
San Bernardino International Airport Authority, a
joint powers authority
;4
By
Michael B s, Executive Director
APPROVED AS TO LEGAL FORM
By Mrrau, Edwards, Cannon, Lewin & Tooke
Agency Counsel
By f
Michael Lewin
ATTEST
By
Jennifek F s, Clerk of the Board
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REDLANDS
City of Redlands
By & l/V l
Paul W Foster, Mayor
APPROVED AS TO LEGAL FORM
By
Dani -en SkUugh, City Attorney
ATTEST
By
anne Donaldson, City Clerk
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