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HomeMy WebLinkAboutItem 2j - Amendment to Landscape Maintenance Agreement DATE: September 5, 2017 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Tim Schwehr, Economic Development Analyst SUBJECT: AMENDMENT TO THE LANDSCAPING MAINTENANCE AGREEMENT WITH 7933 AJAY DRIVE L.P. TO INSTALL AND MAINTAIN LANDSCAPING IN THE STATE HIGHWAY RIGHT-OF-WAY ADJACENT TO 610 N. SANTA ANITA AVENUE Recommended Action: Approve SUMMARY The property owners of 610 N. Santa Anita Avenue are requesting an amendment to the Landscape Maintenance Agreement approved by the City Council at the April 4, 2017, regular meeting. The amendment replaces the original condition related to subordination for the project with a condition that requires the property owner to submit a monetary deposit of $2,000 to pay for any future costs that would be incurred by the City to remove the installed landscaping. The City Attorney has reviewed the proposed amendment and found it to be acceptable. It is recommended that the City Council approve, and authorize and direct the City Manager to execute an amendment to the Landscaping Maintenance Agreement with 7933 Ajay Drive L.P. to install and maintain landscaping in the State Highway right-of-way adjacent to 610 N. Santa Anita Avenue. BACKGROUND The property at 610 N. Santa Anita Avenue is an approximately 30,000 square-foot, irregular shaped lot developed with a two-story office building and a surface parking lot. The property abuts the south side of an onramp to the I-210 Freeway. Dense landscaping in the right-of-way adjacent to 610 N. Santa Anita Avenue was removed by Caltrans in 2015, in part to resolve a rodent issue. In November 2016, the owners of 610 N. Santa Anita Avenue requested the City’s cooperation to enter into two agreements that will allow them to install and maintain new landscaping in the Caltrans right–of-way. At the April 4, 2017, regular meeting, the City Council approved agreements with Caltrans and 7933 Ajay Drive L.P. to install and maintain landscaping in the State Highway right-of-way. Following this meeting, the Amendment to Landscaping Maintenance Agreement September 5, 2017 Page 2 of 3 property owners submitted their permit application to Caltrans, and have received final approval of their permit plans. The property owners are now ready to execute the two Landscape Maintenance Agreements with the City, and then install the new landscaping and irrigation in the right-of-way. However, at this time the property owners are unable to obtain subordination from their mortgage lender, Wells Fargo Bank, which is one of the requirements for the City to enter into these agreements per the original landscape agreement approved on April 4, 2017. The property owners are now requesting an amendment to the agreement with the City that will allow them to submit a $2,000 cash deposit in lieu of the subordination requirement. DISCUSSION The agreement with the property owners, 7933 Ajay Drive L.P., included a requirement to obtain subordination from their mortgage lender, Wells Fargo Bank, prior to the City entering into these agreements. This requirement is to ensure that in the event the property is sold, the landscaping installed in the right–of-way will either be removed by the property owner as a condition of the sale, or the new owners will be required to enter into a new Landscape Maintenance Agreement with the City. Because the property owners are not able to obtain subordination from their lender, they are proposing an amendment to the agreement that will allow them to submit an irrevocable, non-refundable cash deposit to City in the amount of $2,000 in lieu of the subordination requirement. The deposit would be available for the City to use, if needed, to pay a contractor to remove the new landscaping and irrigation installed, and return the site to its current vacant state. The cost to do this work is estimated at $600. Accounting for future inflation, the $2,000 deposit will provide adequate funds for the foreseeable future to complete this work. The proposed amendment also includes a stipulation that allows the City to require additional funds to be deposited in the future, as deemed necessary. The City Attorney has reviewed the proposed amendment and found it to be acceptable. No other changes are proposed to this agreement, and no changes are proposed to the Landscape Maintenance Agreement with Caltrans previously approved by the City Council. Entering into the two proposed landscape maintenance agreements will allow the property owners of 610 N. Santa Anita Avenue to improve the aesthetics and value of their property. In turn, this helps contribute to the quality standards and aesthetics of the surrounding business district and the overall commercial stock of the City. As part of the City’s business friendly approach to governance, Economic Development staff has worked with the property owners to guide them through the City’s review process and the drafting of the two agreements. Amendment to Landscaping Maintenance Agreement September 5, 2017 Page 3 of 3 ENVIRONMENTAL ANALYSIS The amendment to the Landscaping Maintenance Agreement with 7933 Ajay Drive L.P. is not considered a project as defined by California Environmental Quality Act (“CEQA”) Section 15378; as a service contract of this nature is considered ministerial. FISCAL IMPACT All costs for permits, installation, and maintenance of landscaping in the Caltrans right- of-way will be paid by the property owners of 610 N. Santa Anita Avenue. The amended agreement between the City and property owners includes indemnification language, and an irrevocable, non-refundable cash deposit to the City in the amount of $2,000 to be used, if necessary, to remove the landscaping and irrigation in the Caltrans right-of-way. The amended agreement also permits the City to require additional funds at a future date to ensure adequate money is available to remove the landscaping and irrigation. The legal costs to draft the original landscape agreements, and the proposed amendment, have been paid by the property owners through a Reimbursement Agreement with the City of Arcadia. As such, the City should not incur any costs either now or in perpetuity as a result of entering into the two landscape maintenance agreements. RECOMMENDATION It is recommended that the City Council approve, and authorize and direct the City Manager to execute an amendment to the Landscaping Maintenance Agreement with 7933 Ajay Drive L.P. to install and maintain landscaping in the State Highway right-of- way adjacent to 610 N. Santa Anita Avenue. Attachment A – Amended Landscaping Maintenance Agreement (7933 Ajay Drive L.P.) Attachment B – Caltrans Landscape Maintenance Agreement (Approved 4-4-17) Attachment C – Site Photos and Conceptual Landscape Plan Attachment D – April 4, 2017, City Council Staff Report 24347.00634\29614636.4 -1- RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Arcadia 240 W. Huntington Drive Arcadia, CA 91066 Attn: City Manager Exempt from Recording Fee per Government Code § 27383 (Space Above Line for Recorder’s Use Only) LANDSCAPING MAINTENANCE AGREEMENT This Landscaping Maintenance Agreement (“Agreement”) made and entered into this _____ day of ___________, 2017, by and between the City of Arcadia, a California municipal corporation (“City”) and 7933 Ajay Drive L.P., a California limited partnership (“Owner”). The parties may, from time to time, be referenced as “Party”, individually, and collectively as “Parties”. RECITALS WHEREAS, Owner owns the property located at 610 N. Santa Anita Avenue, Arcadia, CA 91006 (APN 5773-001-045) (“Property”); WHEREAS, Owner has expressed a desire to install and maintain landscaping along that portion of the State Highway Right-of-Way on Route 210 Eastbound on the south side of the soundwall from the entrance ramp starting at Santa Anita Avenue to the eastern corner of the 610 N. Santa Anita Avenue lot line (“Landscaped Area”) depicted in the attached Exhibit “A” and incorporated herein by reference; WHEREAS, at the request of Owner, the City will obtain a permit from the State of California’s Department of Transportation (“State”) to install and maintain landscaping in the State Highway Right-of-Way; WHEREAS, at the request of Owner, the City will enter into that certain agreement entitled “Landscape Maintenance Agreement Within State Highway Right-of-Way on Route 210 Within the City of Arcadia” with the State attached hereto as Exhibit “B” and incorporated herein by reference; WHEREAS, the Owner desires to assume certain responsibilities relating to the installation and maintenance of landscaping within the Landscaped Area; and WHEREAS, the Parties desire to enter into this Agreement to govern Owner’s responsibilities as to the Landscaped Area. 24347.00634\29614636.4 -2- NOW, THEREFORE, for the purposes set forth herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, the Parties hereby agree as follows: TERMS 1. Incorporation of Recitals. The Parties herby affirm the facts set forth in the Recitals above and agree to the incorporation of the Recitals as though fully set forth herein. 2. Term. The Agreement shall become effective on the date first written above and shall remain effective unless and until the City terminates its agreement with the State. 3. Scope of Work. Owner shall provide all labor, supervision, equipment, and transportation necessary to perform the installation and maintenance of landscaping in the Landscaped Area. Owner agrees to undertake all obligations imposed by the State as set forth in Exhibit “B”. 4. Specifications. 4.1 Plans and Specifications. Owner shall work with a licensed contractor to develop and cause plans and specifications to be filed with the State. Upon approval by the State, Owner, shall install and maintain landscaping in accordance with those plans and specifications. 4.2 General Maintenance. The degree or extent of maintenance work to be performed, and the standards therefore, shall be in accordance with the provisions of Section 72 of the Streets and Highways Code and the then current edition of the State Maintenance Manual. Owner shall conduct daily inspections of the grounds to verify that all work is being done professionally. Owner shall ensure that all landscaping debris is properly disposed of on the day such debris accumulates. Owner shall also ensure there is adequate scheduled routine maintenance necessary to maintain a neat and attractive appearance of the Landscaped Area. 4.3 Unhealthy or Dead Plants; Weeds. Owner shall replace unhealthy or dead plants when observed or within fifteen (15) days when notified in writing by the City. Owner shall ensure that the Landscaped Area, curbs, walks, and gutters are kept free of weeds. Weeding shall be performed regularly to avoid establishment and seeding. Any weed control performed by chemical weed sprays (herbicides) shall comply with all laws, rules, and regulations established by the California Department of Food and Agriculture. All chemical spray operations shall be reported quarterly to the State to: District Maintenance at 100 S. Main Street, Los Angeles, CA 90012. 4.4 Tree, Shrub, and Shrub Bed Maintenance. Owner shall regularly trim shrubbery, plants and trees to contain their size in respect to species, size of planter, or size relative to surroundings and to the best health of the plant. Owner shall control extraneous growth and ensure State standard lines of sight to signs and corners sight distances are always maintained for the safety of the public. All tree trimmings for trees over twelve (12) feet shall be 24347.00634\29614636.4 -3- done on a regular basis to maintain a clean professional appearance. Owner shall provide complete insect and disease control on all shrubs and trees under twelve (12) feet in height. 4.5 Flower Bed and Ground Cover. Owner shall complete trimming, edging, and cultivation of all flower beds and ground cover as needed. Owner shall provide complete insect and disease control on all flower and ground cover beds. 4.6 Irrigation System. Owner shall continually inspect, repair, and operate the irrigation system in a manner than prevents water from flooding or spraying onto State highway, spraying parked and moving automobiles, or leaving surface area that becomes a hazard to vehicular or pedestrian travel. Owner shall adjust all sprinkler heads for full coverage as needed. In the event that there is poor coverage, Owner shall add new sprinklers or new lines and provide repairs when necessary. Owner shall provide all associated materials and labor. Owner shall adjust irrigation controllers for seasonal conditions. 4.7 Fertilization. Owner shall fertilize Landscaped Area twice a year. Rates of coverage shall be based on the manufacturer’s recommendation and the type of fertilizer shall be consistent with the requirements dictated by seasonal changes. Owner shall provide all associated materials and labor. 4.8 Rodent Control. Owner shall provide routine rodent control. 5. Termination. 5.1 This Agreement shall only terminate subsequent to the termination of the agreement between the City and the State. Owner may request that City terminate its agreement with the State by furnishing a written request to City no less than sixty (60) days from the desired date of termination. Upon receipt of the written request to terminate, City shall request that its agreement with the State be terminated. The Parties understand and agree that the termination of the City’s agreement with the State is subject to mutual agreement between the City and the State. 5.2 Upon termination of this Agreement, Owner shall remove all plants, shrubbery, and improvements from the Landscaped Area and restore the Landscaped Area to its original state if the State directs the City to so do pursuant to the City’s agreement with the State. 6. Insurance. Owner shall secure public liability and property damage insurance effective as of the effective date of this Agreement. Said insurance shall be maintained in full force and effect during the term of the Agreement or renewals or extensions thereof. The following shall apply to insurance required hereunder: 6.1 General liability limits of one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) in aggregate, and five million dollars ($5,000,000) in excess for bodily injury, personal injury and property damage. The general liability policy shall be endorsed to state that: the City, its directors, officials, officers, employees, and agents, and the State, shall be covered as additional insureds with respect to this Agreement. The City 24347.00634\29614636.4 -4- may update the applicable general liability limits and require Owner to obtain additional insurance from time to time. 6.2 Each policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, intentionally reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents, and the State. 6.3 Owner and any contractors or subcontractors of Owner, shall furnish the City with original certificates of insurance and copies of all endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms approved by the City. All certificates and endorsements must be received and approved by the City prior to commencement of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. 6.4 The insurance coverage required to be carried hereunder shall be primary and shall not require any contribution by the City or by the City’s insurance carriers. The insurance shall not be deemed a limitation of Owner’s agreement to defend, indemnify, and hold harmless and if Owner becomes liable for an amount in excess of the insurance, Owner will defend, indemnify, and hold the City harmless from the whole thereof. 6.5 In addition to meeting the City’s requirements, Owner shall meet, to the satisfaction of the State, all procedural and substantive requirements pertaining to insurance set forth in the City’s agreement with the State. 7. Indemnity. 7.1 Owner shall, at Owner’s sole expense and with counsel reasonably acceptable to the City, defend, indemnify and hold harmless City, its officers, employees, and agents from and against all claims (including injuries, demands, losses, actions, causes of action, damages, liabilities, expenses, charges, assessments, fines or penalties of any kind, and costs including consultant and expert fees, court costs and attorney’s fees), arising out of: (a) Any and all demands made upon City by the State pursuant to the City’s agreement with the State; (b) Any act, error, omission, or negligence of the Owner, its officers, employees, or agents or any of the Owner’s invitees, guests, and contractors, in, on, or about the Landscaped Area; and (c) Any alterations, activities, work or things done, omitted, permitted, or allowed by Owner, its officers, employees, or agents in, on, or about the Landscaped Area. 24347.00634\29614636.4 -5- 7.2 This indemnification extends to and includes, without limitation, claims for: (a) Injury to any persons (including death at any time resulting from that injury); and (b) Damage to or destruction of the Landscaped Area. 7.3 Owner’s indemnification obligation hereunder shall survive the termination of this Agreement until all claims against the City involving any of the indemnified matters are fully, finally and absolutely barred by the applicable statutes of limitations. 8. Prevailing Wages. By its execution of this Agreement, Owner certifies that it is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the work performed under this Agreement is part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is one thousand dollars ($1,000) or more, Owner agrees to fully comply with such Prevailing Wage Laws. Owner shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Owner shall require its contractors to include prevailing wage requirements in all subcontractors entered into to perform work or services under this Agreement when the work to be performed is a “public work” as defined in Sections 1720(a)(1) and 1771 of the Labor Code. 9. DIR Registration. If the work being performed under this Agreement is part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, Owner and all subconsultants must be registered with the Department of Industrial Relations. If applicable, Owner shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Owner’s sole responsibility to comply with all applicable registration and labor compliance requirements. 10. Miscellaneous Terms. 10.1 Entire Agreement; Assignment. This Agreement constitutes the entire agreement between the Parties. No waiver of any term or condition of this Agreement shall be deemed a continuing waiver hereof. 10.2 Amendments. Any alterations, variations, modifications, or waivers of provisions of the Agreement, unless specifically allowed in the Agreement shall be valid only when they have been reduced to writing, duly signed and approved by authorized representatives of both parties as an amendment to this Agreement. No oral understanding or agreement not incorporated herein shall be binding on any of the Parties hereto. 24347.00634\29614636.4 -6- 10.3 Attorneys’ Fees. If either Party commences an action against the other Party, either legal, administrative, or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall be entitled to have and recover its reasonable attorneys’ fees and all other costs of such action. 10.4 Governing Law; Venue. The interpretation and enforcement of this Agreement shall be governed by the law of the State of California and venue shall be in a court of competent jurisdiction located in Los Angeles County. 10.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 10.6 Captions. The headings or captions contained in this Agreement are for identification purposes only and shall have no effect upon the construction or interpretation of this Agreement. 10.7 Ambiguities. The Parties have each carefully reviewed this Agreement and have agreed to each term of this Agreement. No ambiguity shall be presumed to be construed against either Party. 10.8 Notices. All notices permitted or required under this Agreement shall be given to the respective Parties at the following address or at such other address as the respective Parties may provide in writing for this purpose: City: City of Arcadia 240 West Huntington Dr. P.O. Box 60021 Arcadia, CA 91066 Attn: City Manager Owner: 7933 Ajay Drive L.P. 610 N. Santa Anita Avenue Arcadia, CA 91006 Attn: Rao Yalamanchili 10.9 Successors and Assigns. This Agreement shall be binding on successors and assigns of the Parties. 10.10 Deposit. Upon execution of this Agreement, the Owner shall make an irrevocable, non-refundable cash deposit to City in the amount of two thousand dollars ($2,000) that will be used, if deemed necessary by City in its sole and absolute discretion, to undertake Owner’s obligations set forth in Section 5.2 of this Agreement if Owner fails to do so within fifteen (15) days of City’s demand to do so. Every five (5) years after the date of this Agreement, City shall review and determine if additional funds are needed for this purpose. If City determines in its sole and absolute discretion that additional funds are needed, the City shall make written demand upon Owner for such additional funds and Owner shall deposit such 24347.00634\29614636.4 -7- additional funds with the City within thirty (30) calendar days of the date City made such demand. CITY OF ARCADIA Mayor ATTEST: City Clerk APPROVED AS TO FORM: Stephen P. Deitsch, City Attorney 7933 AJAY DRIVE L.P. By: Name: Its: By: Name: Its: (Owner’s Signatures must be notarized) 24347.00634\29614636.4 EXHIBIT A LANDSCAPED AREA [Attached behind this page] 24347.00634\29614636.4 EXHIBIT B LANDSCAPE MAINTENANCE AGREEMENT WITHIN STATE HIGHWAY RIGHT-OF- WAY ON ROUTE 210 WITHIN THE CITY OF ARCADIA [Attached behind this page] Page 1 of 6 LANDSCAPE MAINTENANCE AGREEMENT WITHIN STATE HIGHWAY RIGHT OF WAY ON ROUTE 210 WITHIN THE CITY OF ARCADIA THIS AGREEMENT is made effective this ______ day of ____________, 20__, by and between the State of California, acting by and through the Department of Transportation, hereinafter referred to as “STATE” and the CITY of Arcadia; hereinafter referred to as “CITY” and collectively referred to as “PARTIES”. SECTION I RECITALS 1. PARTIES desire to work together to allocate their respective obligations relative to newly constructed or revised improvements within STATE’s right of way by Permit Number ____. 2. This Agreement addresses CITY responsibility for the professionally landscape design and implementation (collectively the “LANDSCAPING”) placed within State Highway right of way on State Route 210, as shown on Exhibit A, attached to and made a part of this Agreement. NOW THEREFORE, IT IS AGREED AS FOLLOWS: SECTION II AGREEMENT 1. In consideration of the mutual covenants and promises herein contained, CITY and STATE agree as follows: 1.1. PARTIES have agreed to an allocation of maintenance responsibilities that includes, but is not limited to, inspection, providing emergency repair, replacement, and maintenance, (collectively hereinafter “MAINTAIN/MAINTENANCE”) of LANDSCAPING as shown on said Exhibit “A”. 1.2. When a planned future improvement is constructed and/or a minor revision has been effected with STATE’s consent or initiation within the limits of the STATE’s right of way herein described which affects PARTIES’ division of maintenance responsibility as described herein, PARTIES will agree upon and execute a new dated and revised Exhibit “A” which will be made a part hereof and will thereafter supersede the attached original Exhibit “A” to thereafter become a part of this Agreement. The new exhibit can be executed only upon written consent of the PARTIES hereto acting by and through their authorized representatives. No formal amendment to this Agreement will be required. Page 2 of 6 2. CITY agrees, at CITY expense, to do the following: 2.1. CITY may install, or contract, authorizing a licensed contractor with appropriate class of license in the State of California, to install and thereafter will MAINTAIN LANDSCAPING conforming to those plans and specifications (PS&E) pre-approved by STATE. 2.2. The degree or extent of maintenance work to be performed, and the standards therefore, shall be in accordance with the provisions of Section 27 of the Streets and Highways Code and the then current edition of the State Maintenance Manual. 2.3. CITY will submit the final form of the PS&E, prepared, stamped and signed by a licensed landscape architect, for LANDSCAPING to STATE’s District Permit Engineer for review and approval and will obtain and have in place a valid necessary Encroachment Permit prior to the start of any work within STATE’S right of way. All proposed LANDSCAPING must meet STATE’s applicable standards. 2.4. CITY shall ensure that LANDSCAPED areas designated on Exhibit “A” are provided with adequate scheduled routine MAINTENANCE necessary to MAINTAIN a neat and attractive appearance. 2.5. An Encroachment Permit rider may be required for any changes to the scope of work allowed by this Agreement prior to the start of any work within STATE's right of way. 2.6. CITY contractors will be required to obtain an Encroachment Permit prior to the start of any work within STATE’s right of way. 2.7. To furnish electricity for irrigation system controls, water, and fertilizer necessary to sustain healthy plant growth during the entire life of this Agreement. 2.8. To replace unhealthy or dead plantings when observed or within 30 days when notified in writing by STATE that plant replacement is required. 2.9. To prune shrubs, tree plantings, and trees to control extraneous growth and ensure STATE standard lines of sight to signs and corner sight distances are always maintained for the safety of the public. 2.10. To MAINTAIN, repair and operate the irrigation systems in a manner that prevents water from flooding or spraying onto STATE highway, spraying parked and moving automobiles, spraying pedestrians on public sidewalks/bike paths, or leaving surface water that becomes a hazard to vehicular or pedestrian/bicyclist travel. 2.11. To control weeds at a level acceptable to the STATE. Any weed control performed by chemical weed sprays (herbicides) shall comply with all laws, rules, and regulations established by the California Department of Food and Agriculture. All chemical spray operations shall be reported quarterly (Form LA17) to the STATE to: District Maintenance at 100 S Main St Los Angeles, CA 90012. Page 3 of 6 2.12. To remove LANDSCAPING and appurtenances and restore STATE owned areas to a safe and attractive condition acceptable to STATE in the event this Agreement is terminated as set forth herein. 2.13. To furnish electricity and MAINTAIN lighting system and controls for all street lighting systems installed by and for CITY. 2.14. To inspect LANDSCAPING on a regular monthly or weekly basis to ensure the safe operation and condition of the LANDSCAPING. 2.15. To expeditiously MAINTAIN, replace, repair or remove from service any LANDSCAPING component that has become unsafe or unsightly. 2.16. To MAINTAIN all sidewalks/bike paths within the Agreement limits of the STATE highway right of way, as shown on Exhibit A, at CITY expense. MAINTENANCE includes, but is not limited to, concrete repair, replacement and to grind or patch vertical variations in elevation of sidewalks/bike paths for an acceptable walking and riding surface, and the removal of dirt, debris, graffiti, weeds, and any deleterious item or material on or about sidewalks/bike paths or the LANDSCAPING in an expeditious manner. 2.17. To MAINTAIN all parking or use restrictions signs encompassed within the area of the LANDSCAPING. 2.18. To allow random inspection of LANDSCAPING by a STATE representative. 2.19. To keep the entire landscaped area policed and free of litter and deleterious material. 2.20. All work by or on behalf of CITY will be done at no cost to STATE. 3. STATE agrees to do the following: 3.1. May provide CITY with timely written notice of unsatisfactory conditions that require correction by the CITY. However, the non-receipt of notice does not excuse CITY from maintenance responsibilities assumed under this Agreement. 3.2. Issue encroachment permits to CITY and CITY contractors at no cost to them. 4. LEGAL RELATIONS AND RESPONSIBILITIES: 4.1. Nothing within the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not party to this Agreement, or affect the legal liability of either PARTY to this Agreement by imposing any standard of care respecting the design, construction and maintenance of these STATE highway improvements or CITY facilities different from the standard of care imposed by law. 4.2. If during the term of this Agreement, CITY should cease to MAINTAIN the LANDSCAPING to the satisfaction of STATE as provided by this Agreement, STATE may either undertake to perform that MAINTENANCE on behalf of CITY at CITY’s expense or direct CITY to remove or itself remove LANDSCAPING at CITY’s sole expense and restore STATE’s right of Page 4 of 6 way to its prior or a safe operable condition. CITY hereby agrees to pay said STATE expenses, within thirty (30) days of receipt of billing by STATE. However, prior to STATE performing any MAINTENANCE or removing LANDSCAPING, STATE will provide written notice to CITY to cure the default and CITY will have thirty (30) days within which to affect that cure. 4.3. Neither CITY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE under or in connection with any work, authority or jurisdiction arising under this Agreement. It is understood and agreed that STATE shall fully defend, indemnify and save harmless CITY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this Agreement with the exception of those actions of STATE necessary to cure a noticed default on the part of CITY. 4.4. Neither STATE nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction arising under this Agreement. It is understood and agreed that CITY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by CITY under this Agreement. 5. PREVAILING WAGES: 5.1. Labor Code Compliance- If the work performed on this Project is done under contract and falls within the Labor Code section 1720(a)(1) definition of a "public work" in that it is construction, alteration, demolition, installation, or repair; or maintenance work under Labor Code section 1771, CITY must conform to the provisions of Labor Code sections 1720 through 1815, and all applicable provisions of California Code of Regulations found in Title 8, Chapter 8, Subchapter 3, Articles 1-7. CITY agrees to include prevailing wage requirements in its contracts for public work. Work performed by CITY'S own forces is exempt from the Labor Code's Prevailing Wage requirements. 5.2. Requirements in Subcontracts - CITY shall require its contractors to include prevailing wage requirements in all subcontracts funded by this Agreement when the work to be performed by the subcontractor is a "public work" as defined in Labor Code Section 1720(a)(1) and Labor Code Section 1771. Subcontracts shall include all prevailing wage requirements set forth in CITY contracts 6. INSURANCE - CITY and its contractors shall maintain in force, during the term of this agreement, a policy of general liability insurance, including coverage of bodily injury liability and property damage liability, naming the STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. Coverage shall be evidenced by a certificate of insurance in a form satisfactory to the STATE that shall be delivered to the STATE with a signed copy of this Agreement. Page 5 of 6 6.1. SELF-INSURED - CITY is self-insured. CITY agrees to deliver evidence of self-insured coverage providing general liability insurance, coverage of bodily injury liability and property damage liability, naming the STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. Coverage shall be evidenced by a certificate of insurance in a form satisfactory to the STATE that shall be delivered to the STATE with a signed copy of this Agreement in a form satisfactory to STATE, along with a signed copy of the Agreement. 6.2. SELF-INSURED using Contractor - If the work performed on this Project is done under contract CITY shall require its contractors to maintain in force, during the term of this agreement, a policy of general liability insurance, including coverage of bodily injury liability and property damage liability, naming the STATE, its officers, agents and employees as the additional insured in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. Coverage shall be evidenced by a certificate of insurance in a form satisfactory to the STATE that shall be delivered to the STATE with a signed copy of this Agreement. 7. TERMINATION - This Agreement may be terminated by timely mutual written consent by PARTIES, and CITY’s failure to comply with the provisions of this Agreement may be grounds for a Notice of Termination by STATE. 8. TERM OF AGREEMENT - This Agreement shall become effective on the date first shown on its face sheet and shall remain in full force and effect until amended or terminated at any time upon mutual consent of the PARTIES or until terminated by STATE for cause. PARTIES are empowered by Streets and Highways Code Section 114 & 130 to enter into this Agreement and have delegated to the undersigned the authority to execute this Agreement on behalf of the respective agencies and covenants to have followed all the necessary legal requirements to validly execute this Agreement. Page 6 of 6 IN WITNESS WHEREOF, the PARTIES hereto have set their hands and seals the day and year first above written. THE CITY OF ARCADIA STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION By: __________________________ Mayor/Chairmen MALCOLM DOUGHERTY Director of Transportation Initiated and Approved By: ___________________________ City/County Manager By: ___________________________ Deputy District Director Maintenance District ATTEST: By: __________________________ City Clerk As to Form and Procedure: By: _____________________________ Attorney Department of Transportation By: __________________________ City Attorney POSITIVE INVESTMENTS INC. 610 N SANTA ANITA AVEARCADIA, CA 91006 COMMERCIAL ZONE C-1SUNSET WESTERN CLIMATE ZONE 20USDA PLANT HARDINESS ZONE 10A OCTOBER 28, 2016LANDSCAPE DESIGN CONCEPT POSITIVE INVESTMENTS, INC10.28.2016 LANDSCAPE DESIGN CONCEPT EXISTING TWO STORY OFFICE BUILDING LIGHT POLE EXISTING PARKING LOT EXISTING FREEWAY WALL ON WALL: BOUGAINVILLEA & ANACAPA PINK CALIFORNIA MORNING GLORY AT BASE OF WALL GROUNDCOVER: LANTANA, APRICOT MALLOW, CREEPING SAGE ACCENT PLANTS: YARROW, PENSTEMON, ISLAND SNAPDRAGON, CALIFORNIA FUSCHIA SHRUBS: MATILJA POPPY, NATIVE SAGES, CALIFORNIA BUCKWHEAT DESIGN CONCEPT PROPOSAL A colorful tapestry of blooms extending from the wall to the slope using drought-tolerant and native plants. POSITIVE INVESTMENTS, INC10.28.2016 LANDSCAPE DESIGN CONCEPT PLANTING PROPOSAL - WEST SCALE: 1/8” = 1’ POSITIVE INVESTMENTS, INC10.28.2016 LANDSCAPE DESIGN CONCEPT PLANTING PROPOSAL - CENTER SCALE: 1/8” = 1’ POSITIVE INVESTMENTS, INC10.28.2016 LANDSCAPE DESIGN CONCEPT PLANTING PROPOSAL - EAST SCALE: 1/8” = 1’ POSITIVE INVESTMENTS, INC10.28.2016 LANDSCAPE DESIGN CONCEPT CALYSTEGIA MACROSTEGIA ‘ANACAPA PINK’ANACAPA PINK CA MORNING GLORY OENOTHERA SPECIOSA ‘SISKIYOU’SISKIYOU EVENING PRIMROSE GALVEZIA SPECIOSA ‘BOCAROSA’BOCAROSA ISLAND SNAPDRAGON LANTANA ‘NEW GOLD’NEW GOLD LANTANA ERIOGONUM GIGANTEUMSAINT CATHERINE’S LACEBOUGAINVILLEA ‘ORANGE KING’ORANGE KING BOUGAINVILLEA LANTANA ‘CREAM CARPET’CREAM CARPET LANTANA BOUGAINVILLEA ‘BARBARA KARST’BARBARA KARST BOUGAINVILLEAACHILLEA MILLEFOLIUM ‘ISLAND PINK’ISLAND PINK YARROW BOUGAINVILLEA ‘JAMES WALKER’JAMES WALKER BOUGAINVILLEABOUGAINVILLEA ‘CALIFORNIA GOLD’CALIFORNIA GOLD BOUGAINVILLEA LANTANA ‘CONFETTI’CONFETTI LANTANA PROPOSED PLANT PALETTE POSITIVE INVESTMENTS, INC10.28.2016 LANDSCAPE DESIGN CONCEPT SALVIA ‘POZO BLUE’POZO BLUE SAGE SPHAERALCEA AMBIGUA ‘LOUIS HAMILTON’LOUIS HAMILTON APRICOT MALLOWSPHAERALCEA AMBIGUAAPRICOT MALLOWSALVIA GRACIASCREEPING SAGE ROMNEYA COULTERIMATILJA POPPYPENSTEMON MARGARITA BOPMARGARITA BOP PENSTEMON SALVIA CLEVELANDIICLEVELAND SAGESALVIANA APIANAWHITE SAGE ZAUSCHNERIA CALIFORNICA ‘CATALINA’CATALINA CALIFORNIA FUSCHIA PROPOSED PLANT PALETTE DATE: April 4, 2017 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Tim Schwehr, Economic Development Analyst SUBJECT: LANDSCAPE MAINTENANCE AGREEMENTS WITH CALTRANS AND 7933 AJAY DRIVE L.P. TO INSTALL AND MAINTAIN LANDSCAPING IN THE STATE HIGHWAY RIGHT–OF-WAY ADJACENT TO 610 N. SANTA ANITA AVENUE Recommendation: Approve SUMMARY In November 2016, the property owners of 610 N. Santa Anita Avenue submitted a letter requesting the City’s cooperation to enter into two landscape maintenance agreements to allow them to install and maintain new landscaping in the State highway right-of-way adjacent to their property. This letter is included as Attachment “A”. Staff and the City Attorney have reviewed the specifics of the agreements and found them to be acceptable. It is recommended that the City Council approve, and authorize and direct the City Manager to execute, Landscape Maintenance Agreements with Caltrans and 7933 Ajay Drive L.P. to install and maintain landscaping in the State highway right– of-way. BACKGROUND The property at 610 N. Santa Anita Avenue is an approximately 30,000 square-foot, irregular shaped lot developed with a two-story office building and surface parking lot. The property abuts the south-side of an onramp to the I-210 Freeway. Dense landscaping in the right–of-way adjacent to 610 N. Santa Anita Avenue was removed by the property owners with Caltrans approval in 2015 to resolve a rodent issue. The owners of 610 N. Santa Anita Avenue are now requesting the City’s cooperation to enter into two agreements that will allow them to install and maintain new landscaping in this right-of-way. A conceptual landscape plan has been prepared by the property owners and has received tentative approval from Caltrans. Photos of the subject property and a copy of the conceptual landscape plan are included as Attachment “B”. Landscape Maintenance Agreements April 4, 2017 Page 2 of 3 The property owners first attempted to enter into a direct agreement with Caltrans to install and maintain this landscaping in the right-of-way; however, Caltrans’ policy is not to enter into direct agreements with non-government entities for this purpose. Instead, Caltrans recommended a landscape maintenance agreement between Caltrans and the City of Arcadia, and a second agreement between the City of Arcadia and the property owners, for installation and maintenance of this landscaping. Staff has confirmed this information with Keith Sellers, Caltrans Landscape Architect. Mr. Sellers also confirmed that other cities have entered into similar agreements for this purpose. DISCUSSION Entering into the two proposed landscape maintenance agreements will allow the property owners of 610 N. Santa Anita Avenue to improve the aesthetics and value of their property. In turn, this helps contribute to the quality of the surrounding business district and the overall appearance of the area. As part of the City’s business friendly approach to governance, Economic Development staff has worked with the property owners to guide them through the City’s review process, and the drafting of the two agreements. It is not anticipated that these types of landscape maintenance agreements will be common for other properties in the City as this property is one of only four commercial properties in Arcadia that directly abuts a landscaped highway right-of-way. Additionally, the other three properties abut much larger landscaped right- of-way areas with more mature landscaping surrounded by Caltrans’ chain link fencing. The Landscape Maintenance Agreement between the City of Arcadia and Caltrans will allow for landscaping to be installed in the State highway right-of-way. This agreement was prepared by Caltrans and has been reviewed and approved to form by the City Attorney. A copy of this agreement is included as Attachment “C”. The Landscape Maintenance Agreement between the City of Arcadia and 7933 Ajay Drive L.P. stipulates that all permits, fees, and other obligations associated with the Caltrans Landscape Maintenance Agreement will be the responsibility of the property owners of 610 N. Santa Anita Avenue. This agreement has been drafted by the City Attorney, and includes indemnity language and other terms to ensure the landscaping in the State highway right-of-way is installed and maintained to the satisfaction of Caltrans, and at no expense to the City. The agreement also requires the property owners to obtain subordination from their mortgage lender, Wells Fargo Bank, prior to the City entering into these agreements. This will ensure that in the event the property is sold, the landscaping installed in the right-of-way will be removed by the property owner as a condition of the sale, or the new owners will need to enter into a Landscape Maintenance Agreement with the City to continue maintenance of the landscaping. A copy of this agreement is included as Attachment “D”. Landscape Maintenance Agreements April 4, 2017 Page 3 of 3 FISCAL IMPACT All costs for permits, installation, and maintenance of landscaping in the State right-of- way will be paid by the property owners of 610 N. Santa Anita Avenue. The agreement between the City and the property owners includes indemnification language, a subordination requirement from the mortgage lender, and other terms to protect the City from any future costs associated with maintenance or removal of the landscaping. The property owners have entered into a Reimbursement Agreement with the City through a deposit of $3,000 to cover all City Attorney costs associated with the review, preparation, and execution of the agreements. As such, the City should not incur any costs either now or in perpetuity as a result of entering into the two landscape maintenance agreements. RECOMMENDATION It is recommended that the City Council approve, and authorize and direct the City Manager to execute Landscape Maintenance Agreements with Caltrans and 7933 Ajay Drive L.P. to install and maintain landscaping in the State Highway Right-of-Way adjacent to 610 N. Santa Anita Avenue. Attachment “A” – Agreement Request Letter from Property Owner Attachment “B” – Site Photos and Conceptual Landscape Plan Attachment “C” – Caltrans Agreement Attachment “D” – 7933 Ajay Drive L.P. Agreement