5195527.1
AMENDED & RESTATED
FACILITY MANAGEMENT AGREEMENT
BY
CITY OF ANAHEIM
AND
ATCM, LLC
FOR THE
ANAHEIM REGIONAL TRANSPORTATION INTERMODAL CENTER
(ARTIC)
DATED AS OF JULY 1, 2022
5195527.1 i
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS
1.1 Definitions ......................................................................................................................................2
ARTICLE II
PROPERTY; TERM; TERMINATION
2.1 Property...........................................................................................................................................2
2.2 Initial Term .....................................................................................................................................2
2.3 Delegated Agreements....................................................................................................................2
2.4 Extension Terms .............................................................................................................................2
2.5 Effect of Termination......................................................................................................................3
2.6 Termination With Cause.................................................................................................................4
2.7 Transition Services at Termination ...............................................................................................4
ARTICLE III
APPOINTMENT
3.1 Appointment ...................................................................................................................................4
3.2 Standard of Care .............................................................................................................................4
ARTICLE IV
SCOPE OF SERVICES
4.1 Facility Management Services........................................................................................................5
4.2 Transportation Management Services.............................................................................................7
4.3 Maintain LEED O&M Platinum Certification................................................................................7
4.4 Preservation of Funding Sources. ...................................................................................................7
4.5 ARTIC Name..................................................................................................................................7
4.6 Information Technology Support Services .....................................................................................8
4.7 Approved Operating Plans..............................................................................................................8
ARTICLE V
MANAGEMENT RESPONSIBILITIES
5.1 Management....................................................................................................................................8
5.2 Manager, Employees and Independent Contractors .......................................................................9
5.3 Compliance with Laws, Agreements, Etc.....................................................................................10
5.4 Tenant Improvements ...................................................................................................................11
5.5 Development and Construction Management Services ................................................................12
5.6 Taxes.............................................................................................................................................12
5.7 Tenant Relations ...........................................................................................................................12
5.8 Environmental...............................................................................................................................12
5.9 City Police Powers........................................................................................................................13 5195527.1 ii
ARTICLE VI
LEASING, SPECIALTY LICENSING AND MARKETING SERVICES
6.1 Description of Services.................................................................................................................13
6.2 Leasing..........................................................................................................................................14
6.3 Execution of Leases ......................................................................................................................14
6.4 Lease Forms..................................................................................................................................14
ARTICLE VII
INSURANCE
7.1 Insurance Requirements................................................................................................................14
ARTICLE VIII
RECORDS AND REPORTS, CITY RIGHT TO AUDIT AND
PROPERTY INSPECTION
8.1 Accounting Records......................................................................................................................17
8.2 Reports ..........................................................................................................................................17
8.3 Financial Statements .....................................................................................................................18
8.4 City’s Right to Audit.....................................................................................................................18
8.5 Audit Period..................................................................................................................................18
8.6 Audit Results.................................................................................................................................18
8.7 Agreements with Subcontractors ..................................................................................................19
8.8 Production of Documents .............................................................................................................19
8.9 Inspections ....................................................................................................................................19
8.10 Outside Audits ..............................................................................................................................19
ARTICLE IX
BUSINESS PLAN AND BUDGET, HANDLING OF FUNDS,
PAYMENT OF EXPENSES AND OTHER AMOUNTS
9.1 Business Plan and Budget.............................................................................................................19
9.2 Handling of Funds. .......................................................................................................................20
9.3 Payment of Expenses and Other Amounts. ..................................................................................20
ARTICLE X
CITY’S RESPONSIBILITIES
10.1 Office and Equipment...................................................................................................................22
10.2 Payment of Taxes..........................................................................................................................22
10.3 All-Risk Property Insurance .........................................................................................................22
ARTICLE XI
REPRESENTATIONS AND WARRANTIES
11.1 Manager’s Representations and Warranties..................................................................................22
11.2 City’s Representations and Warranties.........................................................................................23
11.3 Reliance ........................................................................................................................................23 5195527.1 iii
ARTICLE XII
COMPENSATION
12.1 Compensation ...............................................................................................................................24
ARTICLE XIII
NOTICES
13.1 Notices ..........................................................................................................................................24
ARTICLE XIV
GENERAL PROVISIONS
14.1 No Assignment .............................................................................................................................25
14.2 Non-Conforming Services ............................................................................................................25
14.3 Equal Employment Opportunity...................................................................................................25
14.4 Prevailing Wage............................................................................................................................26
14.5 California Public Records Act ......................................................................................................26
14.6 Conflict of Interest ........................................................................................................................27
14.7 Alteration ......................................................................................................................................27
14.8 Interpretation of Agreement and Venue .......................................................................................27
14.9 Contractor Certification Regarding Debarment, Suspension, and Responsibility (If applicable) ...27
14.10 Lobbying.......................................................................................................................................28
14.11 Disadvantaged Business Enterprise ...........................................................................................28
14.12 Force Majeure ...............................................................................................................................29
14.13 Non-Waiver ..................................................................................................................................29
14.14 Consents and Approvals ...............................................................................................................29
14.15 Pronouns .......................................................................................................................................29
14.16 Headings .......................................................................................................................................30
14.17 Survival.........................................................................................................................................30
14.18 Copies of Agreement and Signatures............................................................................................30
14.19 Special Obligation.........................................................................................................................30
14.20 Complete Agreement ....................................................................................................................30
14.21 Guaranty........................................................................................................................................30
EXHIBITS AND SCHEDULES
EXHIBIT “A” LEGAL DESCRIPTION OF THE ARTIC SITE
EXHIBIT “B” ARTIC SITE PLAN/DESCRIPTION OF THE ARTIC SITE SCHEDULE 1 DEFINITIONS
SCHEDULE 2 PROPERTY AGREEMENTS
SCHEDULE 3 DELEGATED AGREEMENTS
SCHEDULE 4 ADVISORY LETTER/PROCUREMENT
5195527.1 1
AMENDED & RESTATED
FACILITY MANAGEMENT AGREEMENT
THIS AMENDED AND RESTATED FACILITY MANAGEMENT AGREEMENT (this “Agreement”) dated for reference purposes as of July 1, 2022 and is effective as of the Amendment Effective Date (as defined), by and between CITY OF ANAHEIM (“City”) and ATCM, LLC (“Manager”). Owner and Manager are individually referred to as a “Party” and, collectively, as the “Parties” in this Amendment.
RECITALS
A. City owns certain real and personal property as described in Exhibits “A”. as identified in Section 2.1 (referred to in this Agreement as “ARTIC Site”, “ARTIC”, “Facility” or “Property”. The ARTIC Site consists of the ARTIC facility and Rail Platforms, as referenced and further described in Exhibit A. The ARTIC Site also includes 1,082 parking spaces as required pursuant to the ARTIC Conditional Use Permit No. No 2012-046; that certain “Cooperative Agreement No. C-3-2137 between Orange County Transportation Authority and the City of Anaheim for the Operations and Maintenance of the Anaheim Regional Transportation Intermodal Center (ARTIC) effective December 31, 2014; and, that certain “Agreement for the Purchase and Sale of Real Property” between the City and the Orange County Transportation Authority dated July 5, 2012. City and Manager are parties to that certain Facility Management Agreement dated November 20, 2018 (the “Prior Agreement”), with respect to Manager’s management of the Property. Capitalized terms not otherwise defined in this Amendment have the meanings assigned to such terms in the Agreement.
B. City and an affiliate of Manager, Anaheim Real Estate Partners, LLC (“AREP”) are parties to that certain Development Agreement No. 2020-00004 Between The City of Anaheim and Anaheim Real Estate Partners, LLC (the “Development Agreement”).
C. AREP desires to develop the “Project” (as defined in the Development Agreement) and the Property is a part of the Project.
D. The Parties acknowledge that the development and operation of the Project relies upon, in addition to other matters, an amendment to the Prior Agreement.
E. City desires to continue to engage Manager to manage, market, lease to third parties, operate and maintain the Artic Site on the terms and conditions set forth in this Agreement.
Accordingly, City and Manager have agreed to amend and restate the Prior Agreement, to take effect as of the Amendment Effective Date, all as more particularly set forth in this Agreement.
NOW, THEREFORE, the Parties agree as follows:
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ARTICLE I
DEFINITIONS
1.1 Definitions. Capitalized terms not otherwise defined in this Agreement have the meanings set forth in Schedule 1.
ARTICLE II
PROPERTY; TERM; TERMINATION
2.1 Property. The property subject to this Agreement shall consist of all of City’s interest in the real property described in the Recitals and City’s personal property at any time located thereon, provided, however, that in the event that the City subsequent to the Amendment Effective Date, conveys a fee simple interest in any real property then comprising a part of the Property to any third party, including an Affiliate of the Manager, the portion conveyed shall, as of the date of such conveyance, no longer be included in the property subject to the this Agreement.
2.2 Initial Term. Manager’s duties and responsibilities under this Agreement shall begin on July 1, 2018 (“Commencement Date”) and end on June 30, 2053 (the “Initial Term”), unless sooner terminated or extended for one or more Extension Terms, as provided herein, the actual date of termination being the “Termination Date”, and such term of effectiveness being the “Term”).
2.3 Delegated Agreements.. Manager shall in consultation with City and unless and until such agreements are terminated according to their respective terms, represent the interest of City with respect to the contracts listed on Schedule 3 (the “Delegated Agreements”).
Manager has the authority to maintain, modify, and/or terminate (in accordance with the express terms of each) the Delegated Agreements.
2.4 Extension Terms. Manager may extend this Agreement for up to four (4) five-year extension terms (each, an “Extension Term” and, collectively, the “Extension Terms”), by giving City written notice thereof delivered no later than one (1) year prior to the Termination Date; provided, that in the event the Amended and Restated Facility Management Agreement between City and Anaheim Arena Management, LLC dated July 1, 2022, as amended (the “Honda Center Agreement”), is extended for any period following the Initial Term, then this Agreement shall be automatically extended for the same period; and further provided that in the event of termination of the Honda Center Agreement, for any reason, City shall have the right, on thirty (30) days’ prior written notice, to terminate this Agreement.
2.5 Effect of Termination.
Upon the Termination Date:
(1) Manager shall surrender any space in the Property occupied by Manager, shall remove all personal property of Manager, and deliver the Property to City or its designee in 5195527.1 3
Acceptable Condition. On such surrender, Manager shall deliver to City (a) all keys, access codes, combinations, and the like to the ARTIC Site, (b) maintenance records for the Property, (c) such other documents related to operation, maintenance, and leasing of the ARTIC Site as City may reasonably request.
(2) Manager and City shall account to each other for all matters outstanding with respect to this Agreement, and in furtherance of that end, Manager shall deliver to City the following with respect to the Property:
(a) All original records, contracts, leases, receipts for deposits, unpaid bills, broker contacts, and other papers or documents that pertain to the Property in Manager’s possession, provided that any such documents located at the Property shall, unless otherwise directed by City, remain at the Property. All costs associated with delivery of such original documentation to City shall be borne by Manager.
(b) All documents and records, including invoices and records of payment, required in order to conduct the audit permitted by Article VIII. (c) If Manager has entered into any contracts for the Property in accordance with the terms hereof, Manager shall assign, delegate and/or deliver, as appropriate, such contracts to City or City’s designee and City or City’s designee shall assume Manager’s obligations thereunder as of the Termination Date. Notwithstanding anything to the contrary set forth in this Agreement, Manager shall ensure that any contract relating to ARTIC and entered into by Manager shall be fully assignable to City without any consent or approval from the third party contractor and upon no more than thirty (30) days’ notice to such third party. (d) A final leasing status report listing security deposits and prepaid rent, and indicating all tenants, licensees, and any other potential user of the Property with which Manager is in negotiation with respect to the Property as of the Termination Date, including the nature of the negotiation (e.g., new lease, lease renewal, lease termination or modification, or licensee agreement, etc.) and status of related documentation (“Final Leasing Status Report”). (e) Manager shall surrender the Operating Account to City or its designee each of the Accounts, and all other funds held by Manager. (f) A final accounting reflecting the balance of expenses, assets and liability on the Property as of the Termination Date; provided, however if such termination is for cause pursuant to Section 2.7, such accounting shall be provided within sixty (60) days following the Termination Date.
Upon any termination of this Agreement, and following reconciliation and release to City of all amounts held in the Accounts or otherwise, the remaining balance of any Operating Loans, if any, shall be extinguished, and City shall have no obligation thereunder, nor shall future Net Revenues be available to pay any such remaining balances. The termination of this Agreement shall not affect the rights of either party with respect to any damages it has suffered as a result of any breach of this Agreement, nor shall it affect the rights or obligations of either party with respect 5195527.1 4
to liability or claims accrued, or arising out of events occurring prior to the Termination Date, all of which shall survive such termination.
2.6 Termination With Cause. A Breach by either party, following notice and an opportunity to cure as described below, constitutes a Default hereunder. The party not in Breach may terminate this Agreement upon: (a) five (5) Business Days following written notice to the defaulting party in Breach in the event of a monetary Breach which is not cured within five (5) Business Days following receipt by the party in Breach of written notification of such Breach; or (b) thirty (30) days’ written notice to the party in Breach in the event of a non-monetary Breach, unless the Breach is cured within said applicable time period; or in the case of a non-monetary Breach, if the nature of such Breach will not permit it to be cured within said thirty (30) day period, the party in Breach commences to cure such Breach within such thirty (30) day period and thereafter proceeds to complete the same with reasonable diligence; provided however, and notwithstanding the diligence with which such cure is being pursued, such cure must be completed on or before one hundred eighty (180) days following written notice. In the event that either party exercises its right of termination under this Section, it shall submit written notice to the other, specifying the extent of such termination under this Section, the reasons therefor, and the date upon which such termination becomes effective. Upon receipt of such notice, Manager shall take all reasonable actions to discontinue further commitments of funds to the extent that they relate to the terminated portions of this Agreement.
2.7 Transition Services at Termination. During the last six (6) months of the Term, Manager shall cooperate and assist in transitioning the Property, and the leasing, maintenance and operation thereof, to a new property manager or other party or parties designated by City (“New Manager”). Manager shall use all commercially reasonable efforts to provide or cause to be provided to the New Manager any services reasonably requested by City or New Manager in connection with such transition; provided, however, Manager shall not be required to incur any out- of-pocket costs or liability related to such efforts.
ARTICLE III
APPOINTMENT
3.1 Appointment. Subject to the terms and agreements herein contained, City hereby appoints Manager as the facility manager for the Property and hereby authorizes Manager to exercise such powers with respect to the Property as are provided in this Agreement. Manager hereby accepts such appointment on the terms and conditions set forth in this Agreement. Manager shall have no right or authority, express or implied, to commit or otherwise obligate City or to encumber the Property in any manner whatsoever except to the extent specifically provided herein or otherwise expressly consented to by City. The services to be provided by Manager are specifically described in Articles IV through VI, and as further described and supplemented elsewhere in this Agreement, including the Exhibits and Schedules attached (individually, and collectively, each of which is a “Service” and collectively, the “Services”).
3.2 Standard of Care. Manager acknowledges and agrees that by entering into this Agreement it accepts a fiduciary relationship of trust and confidence between Manager and City. 5195527.1 5
In performing its obligations and providing the Services set forth in this Agreement, Manager shall exercise a standard of care, skill, diligence, knowledge, judgment and quality of Services so as to maintain the Property, to the extent the responsibility of Manager pursuant to this Agreement, in a condition and state of repair commensurate with and at a standard consistent with other world class venues in the City.
ARTICLE IV
SCOPE OF SERVICES
4.1 Facility Management Services. Manager shall provide the Services necessary to support the management, operation, and maintenance of the Property as an inter-modal transportation facility serving the public, and related and other City approved uses. (1) Representation; Coordination with Third Parties.
(a) Business Coordination. Manager shall manage, supervise and direct the business associated with or related to the daily operations and maintenance of the Facility, as described in more detail below, complying with the terms of all Delegated Agreements and Property Agreements, unless and until terminated according to their respective terms. (b) Act as City Representative. Manager shall act as City’s contracted representative for business interaction with the parties to all Delegated Agreements (during the terms of the respective agreements) and the Property Agreements, and all other tenants, contractors and licensees at the Property, transportation providers serving the Property, other service providers hired to provide services at the Property (including but not limited to the Advertising, Sponsorship Naming Rights Providers), adjacent property owners and/or operators, and other third parties with contractual rights and/or obligations relating to the Property; provided, Manager may not amend, modify or terminate any Property Agreement without the prior express written consent of City, in its sole discretion.
(c) Coordination with Advertising, Sponsorship and Naming Rights Providers. Manager shall facilitate implementation of all contracts, and coordinate related marketing, promotional and advertising events and display advertising at the ARTIC Site, including at the bus shelter area and train platform areas. All proceeds of such contracts and such events (the “Outdoor Sponsorship and Advertising Revenues”) shall be held in the Outdoor Sponsorship and Advertising Revenues Account. Notwithstanding the preceding, all exterior advertising signage located on, in or adjacent to the ARTIC Garage is subject to the terms of Section 4.1 (f), Governmental Requirements and the applicable requirements set forth in the Development Agreement, provided however, that the revenues derived from exterior signage located on or near the ARTIC Garage will be included in Gross Revenues but will not be considered Outdoor Sponsorship and Advertising Revenues, with the exception of revenues from the Spectacular which will remain as part of Outdoor Sponsorship and Advertising Revenues. . (d) Future Mixed-Use Development. Future mixed-use development of office, retail and/or residential space is contemplated on and around the ARTIC Site. In the event that such development occurs during the Term, Manager will be responsible for interfacing with 5195527.1 6
the selected future developer(s) to ensure the mixed-use development does not cause disruptions for ARTIC passengers, customers and tenants before, during and after construction. All development at the ARTIC Site: is subject to City approval as to concept, and compatibility with the design, uses and purposes of the Facility, in addition to all other applicable Governmental Requirements; such development must not conflict with the approved purposes of the project or interfere with the intended transit uses of the project property. (e) Parking and Parking Areas. Manager may not reduce the number or size of parking spaces or otherwise reconfigure the Parking Areas without the express written approval of City and shall at all times cause the Parking operations to comply with all requirements of the Property Agreements and Delegated Agreements.
(f) Signage. Subject to Section 5.4, Manager may propose installation of signage and a Spectacular on the ARTIC Site including exterior signage located on the ARTIC Garage, providing specifications and renderings in compliance with applicable Governmental Requirements and the applicable requirements set forth in the Development Agreement. (2) Contracts. Manager shall (i) make and execute (in Manager’s name) contracts for utilities, telephone, security services, wireless internet networks for all public areas, janitorial services, pest extermination and/or other necessary services, and (ii) purchase equipment, tools, appliances, materials, and supplies necessary to enable Manager to perform the Services, with City’s prior approval and/or as provided in the Approved Budget. Such purchases shall be made by Manager. Such purchased property shall be owned by City and be part of the Property subject to this Agreement. Manager shall also be responsible for the management and oversight of any contracts that Manager enters into at its own discretion in accordance with this Agreement (such as, but not limited to, ATMs and vending machines). Manager shall obtain and maintain complete, current insurance certificates for all contractors and other parties to agreements with City or Manager relating to ARTIC.
(3) Maintenance. Manager shall cause the Facility and the ARTIC Site (including the ARTIC Garage if built) to be maintained (including Major Maintenance) in Acceptable Condition and in strict compliance with all Property Agreements and applicable Governmental Requirements.
(4) Utility Services. Manager agrees to utilize City services for electrical power, water, trash collection and other utilities that are provided by the City to residents and businesses in the City. Manager shall provide regular updates on the use of energy and other utilities at the and by the ARTIC Facility and Site for the purpose of verifying utility costs/invoices; monitoring trends; and development management strategies that reduce costs and comport with LEED objectives.
(5) Security Operations. Manager shall manage and implement security services at the ARTIC Site (including the ARTIC Garage if built). (6) Emergency Management and Response. Manager shall manage all emergency situations and maintain emergency protocols (including staff trainings). 5195527.1 7
(7) Trash and Recycling. Manager shall manage waste collection and disposal, and endeavor to maximize recycling collection, and comply with all Governmental Requirements relating to the disposal of Hazardous Materials, waste management, and recycling. Manager will be responsible for coordinating with City staff and Republic Waste Management Services DBA Anaheim Disposal (or such other waste management services provider designated by the City).
Manager shall participate in a recycling program for at least four broad types of recyclable materials at the Property and shall favor the purchase of recycled products in its procurement processes for the ARTIC Site.
(8) Warranty Administration. Manager shall maintain in effect all warranties covering all major building components and equipment.
(9) Indoor Air Quality. Manager shall cause the Facility to meet or exceed indoor air quality industry standards, and, subject to the Approved Budget, cause regular monitoring and testing of air quality in accordance with industry standards.
4.2 Transportation Management Services. Manager shall coordinate and manage transportation services at ARTIC and interface with all transportation service providers in strict compliance with all Property Agreements and applicable Governmental Requirements, expressly including, but not limited to, FTA regulations.
4.3 Maintain LEED O&M Platinum Certification. Manager shall implement all procedures needed to maintain the LEED Platinum Certification at ARTIC in accordance with the operation and maintenance requirement of the U.S. Green Building Council.
4.4 Preservation of Funding Sources. The terms of this Agreement have been negotiated with the expectation of the continued availability and provision of funding from the United States (including the FTA), the State of California (including Caltrans), and other third party funding sources to the extent expressly provided in any of the Property Agreements (for the term of such agreements), and the appropriation of funds by the City Council of the City for City Contributions (as applicable, to the extent required under the terms of this Agreement). In the event funding for the contracted goods and services is no longer available from the expected or other sources, or, if applicable, is not appropriated by the City Council of the City, the parties shall meet and confer to determine appropriate adjustments to this Agreement. Notwithstanding the preceding, the parties agree that Manager shall, as part of Manager’s Services, comply in all respects with all Property Agreements and the terms of all grants, third party funding and other reimbursement sources so as to assure the continued availability of such funding as is made available from time to time, provided, however, that any cost or reimbursement required by the FTA, the State of California or the OCTA as a result of facts, circumstances or conditions existing prior to the Commencement Date shall be borne solely by the City.
4.5 ARTIC Name. Except as City otherwise expressly agrees in its discretion, and subject to express prior approval by the Anaheim City Council, Manager shall use the name “ARTIC” or “Anaheim Regional Transportation Intermodal Center” when referring to or identifying the Facility.
5195527.1 8
4.6 Information Technology Support Services. Manager shall be required to learn, manage and maintain a number of information technology-based systems that are integral to the ARTIC Facility and rely on both hardware and software components. Notwithstanding the preceding, Manager shall not be responsible for server and other information technology equipment owned and used by Amtrak.
4.7 Approved Operating Plans. Manager acknowledges that the following programs have been approved by City in connection with the operations at the ARTIC Site (each, an “Approved Operating Plan” and collectively, the “Approved Operating Plans”):
(i) Operations and Maintenance Plan
(ii) Utility Analysis Report
(iii) Emergency Management and Response Plan
(iv) Security Operations Plan
(v) On-Site Conveyance Plan
(vi) Information Technology and Telecommunications
(vii) Transport Operations and Maintenance Plan
(viii) Signage, Directional Signage & Wayfinding Plan
(ix) Peak Use & Special Event Plan
(x) Financial and Accounting Plan
(xi) Marketing Plan
(xii) Retail Master Plan
(xiii) Trash Conveyance Plan
Manager shall perform all Services under this Agreement in strict compliance with the applicable Approved Operating Plans, and from time to time recommend appropriate changes and/or updates to Approved Operating Plans, for review and approval by City, which such approval shall not be unreasonably withheld or delayed.
ARTICLE V
MANAGEMENT RESPONSIBILITIES
5.1 Management. Without limiting any of the forgoing provisions of this Agreement regarding the Services to be provided by Manager as described in Article IV, and as contained or described elsewhere in this Agreement, including in the Exhibits and Schedules, City and Manager further agree as follows:
(1) Manager agrees (i) to generally do and perform, or cause to be done and performed, all things necessary, required or desirable in Manager’s reasonable business judgment for the proper and efficient management, operation, maintenance, leasing, marketing and development of the Property (e.g., the performance of the Services), and (ii) to render the Services faithfully and diligently on its part to be performed hereunder during the term of this Agreement.
Manager shall act in a commercially responsible capacity with respect to the proper protection of and accounting for City’s assets. In this capacity, Manager shall act in City’s best interests at all times.
5195527.1 9
5.2 Manager, Employees and Independent Contractors. Manager shall at all times have in its employ or contract for sufficient qualified, experienced personnel to enable it to properly, adequately, safely and economically manage, lease, market, operate, maintain in Acceptable Condition, account for the Property and provide the Services. All matters pertaining to the selection, training, direction, employment, supervision, compensation(subject to the Approved Budget), promotion and discharge of such personnel are the sole responsibility of Manager or Manager’s subcontractor, as the case may be, which shall be in all respects the employer of such personnel, except that Manager shall have total responsibility for and shall fully comply with all applicable laws and regulations having to do with workers’ compensation, social security, unemployment insurance, hours of labor, wages, working conditions, and other employer- employee related subjects. Manager shall, at the time of providing the proposed budget and business plan to City for approval pursuant to Section 9.1, provide a proposed staffing plan for City’s review and approval for the upcoming Operating Year, and provide names, title designations, and duties for all personnel identified. At City’s request, Manager shall provide background information and qualifications of all management and supervisory personnel. (1) Independent Contractor. This Agreement is not one of agency by Manager for City; rather, Manager is engaged independently in the business of employing individuals on its own behalf as an independent contractor and City shall have no liability with respect to Manager’s employees. Nothing contained in this Agreement is intended or should be construed as creating the relationship of agents, partners, joint venturers, or associates between the parties hereto or as constituting Manager as an employee of City for any purpose or in any manner whatsoever.
Manager is an independent contractor and neither Manager nor its employees, agents, or representatives are employees of City. From any amounts due from City, there will be no deductions for federal income tax or FICA payments, nor for any state income tax, nor for any other purposes which are associated with an employer-employee relationship unless required by law. Payment of federal income tax, FICA payments, and state income tax are the responsibility of Manager.
(2) Employees. Manager shall employ either directly or through an Affiliated entity or subcontractor all necessary employees to successfully manage and operate the Property.
Manager shall provide the necessary supervision and training to develop and maintain a customer service-oriented and professional staff in alignment with needs and operational requirements of the ARTIC Site. All staff assigned to the Property must pass a background check as described in a security operations plan to be prepared by Manager and otherwise meet all standards set forth in any of the Property Agreements.
5.3 Compliance with Laws, Agreements, Etc.
(1) Governmental Requirements. Manager shall operate the Property in compliance with all Governmental Requirements that are now or hereafter promulgated insofar as they relate to Manager’s performance of this Agreement and overall operation of the ARTIC Site.
Manager shall give prompt notice to City of any violation or notice of alleged violation of any Governmental Requirements. Manager shall promptly remedy any and all violations of any applicable Governmental Requirement at the Property, except in cases where City is contesting or intends to contest such Governmental Requirement (in which case City shall give Manager prompt 5195527.1 10
written notice of its decision to so contest) or in those cases where City directs otherwise. City and Manager agree to cooperate with each other to cause the Property to be operated at all times in compliance with all applicable Governmental Requirements and shall not knowingly, directly or indirectly, suffer, permit or make any use of the Property that is prohibited by any such Governmental Requirements.
(2) Licenses and Permits. Manager shall obtain and maintain, either directly or in conjunction with City as necessary or appropriate, all necessary licenses and permits required by any governmental agency for the operation and maintenance of the Property and as may be necessary to provide the Services. The cost of such licenses and permits shall be reimbursable to Manager from the Operating Account.
(3) Property Agreements. City has advised Manager that the Property is currently subject to the agreements, covenants, conditions and restrictions contained in those certain deeds, mortgages, ground leases, easements, operating agreements and other instruments listed in Schedule 2 (collectively, the “Property Agreements”). True, correct, and complete copies of the Property Agreements have been delivered to Manager by City. Manager covenants and agrees that, in providing Services, it will comply with the applicable provisions of the Property Agreements (and such other agreements as may be entered into by City and delegated to, and accepted in writing by, Manager from time to time) and perform all obligations of City under the Property Agreements, including, but not limited to, preparing and submitting all required notices, certifications and reports and other monitoring requirements. Subject to the foregoing, City shall remain liable thereunder. Also, as to the Property Agreements already in effect, City consents to Manager seeking to add itself as an additional insured, to the extent that City has secured same for itself.
(4) CUP Compliance. Manager shall ensure that all uses and activities at the Site shall comply with each conditional use permit applicable to the uses and activities at the Site from time to time, including CUP No 2012-046.
(5) Expenses. Expenses incurred in complying with, or remedying violations of any Governmental Requirements or Property Agreements will be paid as provided in the Approved Budget. Notwithstanding anything to the contrary set forth in this Agreement, Manager shall be solely responsible for paying any and all costs and expenses incurred to remedy violations of any Governmental Requirements or Property Agreements to the extent such violations are caused by Manager or any employee, contractor, subcontractor, consultant, sub consultant, agent, representative or other person acting on behalf of or under the supervision of Manager. Manager shall be authorized to enter into contracts for the Services required under this Agreement in accordance with this Section 5.3, and as provided in the Approved Budget, provided that City’s consent shall be required prior to Manager entering into or amending any agreement with an Affiliate of Manager, such consent not to be unreasonably withheld or delayed so long as the terms and conditions of such arrangements with an Affiliate are competitive with the market and are not binding on City for any period following expiration of the Term and (to the extent required by Governmental Requirements for procurements, including, but not limited to, FTA requirements as set forth in FTA Circular 4220.1F and Department of Transportation advisory letter dated June, 2016) have been competitively bid. All service contracts shall: (a) be signed by Manager; (b) be 5195527.1 11
assignable, at City’s option, to City or City’s nominee; (c) include a provision for cancellation thereof by Manager or, if Manager fails in its duty to cancel at direction of City, by City directly for cause, or without cause, upon not more than 30 days’ written notice (unless such provision is waived by City); (d) and shall contain necessary language to (1) name Manager and City (and, to the extent required by a particular Property Agreement, a third party) as additional insureds, and (2) ensure that City is protected under the indemnification provision, specifically as a third-party beneficiary, to an extent at least equal to the indemnity protection afforded to Manager; (e) require that all contractors provide evidence of the insurance set forth below unless waived by Manager and City and (f) as applicable, comply with all Property Agreements. Manager shall use competitive bidding or other similar commercially reasonable process to select vendors for all such contracts and provide City with documentation showing that the methodology for selecting vendors who are the most responsive and responsible providers, and providing competitive pricing with respect to such contracts, and Manager shall annually review the selection process and contracts with City. At any time, City shall have the right, on request, to review the terms and conditions of all contracts contemplated under this Section 5.3 and all such contracts shall terminate upon thirty (30) days’ notice from City to Manager that City has determined in its discretion that the contract is unacceptable to City. Without limiting in any manner Manager’s obligations hereunder or the terms of this Agreement, all such contracts shall be in accordance with the requirements of Sections 14.3, 14.4, 14.5, 14.6, 14.7, 14.9, 14.10, and 14.11.
5.4 Tenant Improvements. Manager shall supervise and coordinate the planning, design and construction of all tenant alterations and improvements to be performed at the Property, and all alterations and improvements which affect the exterior of the Facility or the structure or building systems of the Facility, or which are located on the ARTIC Site outside of the Facility, shall be subject to City’s discretionary review and approval (in additional to applicable Governmental Requirements). In connection with such tenant alterations and improvements, Services shall include (i) reviewing all plans and specifications for any authorized tenant construction for compliance with the Property’s design criteria and review the structural, engineering, mechanical and electrical requirements of the tenant’s premises and operations, and shall mark each tenant’s submittal for correction and revisions prior to commencement of construction, regardless of whether such work is to be performed by tenant or by Manager on tenant’s or City’s behalf; (ii) monitoring the progress of all tenant construction work for the purpose of identifying and resolving potential problems or delays associated with disputes with contractors and/or subcontractors or inconsistencies with approved plans, and established construction procedures; (iii) obtaining and reviewing all draw requests and lien waivers from the tenants, and/or general contractors and subcontractors; (iv) where Manager is performing construction work, obtaining or causing to be obtained all permits required for the construction and occupancy of the Property; and (v) where tenant is performing such construction, confirming the date of substantial completion, the acquisition of all needed permits and licenses, and the completion of punch list or corrective items; and (vi) implementing completion procedures such as obtaining appropriate certificates of occupancy, supervising corrective action, conducting final inspection. Manager shall ensure that adequate insurance coverage is provided consistent with each tenant’s lease prior to commencement of any such alterations or improvements.
5.5 Development and Construction Management Services. Manager shall act as construction manager for tenant improvements with respect to any tenant lease or license, as 5195527.1 12
established by the lease or license and for all extraordinary repair and maintenance to the Property approved by City. Manager shall (i) review and recommend for approval or disapproval by City all plans and specifications for any authorized construction (which review shall include, but not be limited to, determination, with the assistance of licensed architects or engineers if necessary in Manager’s reasonable discretion, that the plans and specifications comply with applicable laws and ordinances and the structural design of the Property), (ii) enter into contracts, (iii) schedule and coordinate the performance of all authorized construction, (iv) ensure that adequate insurance coverage is maintained consistent with the requirements of Manager and City, (v) obtain, review and process all draw requests and lien waivers from contractors, and (vii) obtain or cause to be obtained all permits required for the construction and occupancy of the Property.
5.6 Taxes. Manager shall obtain, verify and pay bills for real estate and personal property taxes, improvement assessments and other like charges which are or may become liens against the Property as provided in the Approved Budget (provided that the parties acknowledge that City is generally exempt from payment of property taxes). Manager shall coordinate with each tenant responsible for taxes (real or personal) assessed with respect to the tenant premises to determine, monitor and coordinate the timely payment of such tax bills and shall coordinate and monitor such payments and report to City. Manager shall ensure that all such bills are paid before any fine or penalty attaches and to coordinate with tenants to make sure real estate taxes are paid by tenants directly or as a common area charge.
5.7 Tenant Relations. Manager shall enforce the provisions of all leases affecting the Property and promptly handle all complaints and requests from tenants and licensee. At City’s request, Manager shall cause appropriate proceedings to be filed and prosecuted in the event of a breach by a tenant of its obligations under its lease.
5.8 Environmental. This Agreement and Manager’s performance of the Services shall be subject to the following:
(1) Procedures, Training, Permits and Licenses. Manager shall develop procedures and provide training to staff in the identification, handling, clean up and proper disposal of Hazardous Materials encountered on the ARTIC Site and shall obtain and maintain all necessary permits and licenses and Material Safety Data Sheets (MSDS). (2) Prohibition. Manager shall not, nor shall it authorize or permit any Person to, use any portion of the Property to generate, manufacture, refine, transport, treat, store, use, sell, recycle, handle, dispose of, transfer, produce or process any Hazardous Materials, except for such Hazardous Materials in such quantities as are useful and appropriate for the operation and maintenance of the Property, and in such event, in a manner commensurate with the operation of similar transit centers and in compliance with all applicable Governmental Requirements and Environmental Laws. Manager shall not cause, authorize or permit the release, spill, leaking, pumping, pouring, emitting, discharging, leaching, disposing or dumping of any Hazardous Materials on, in, under, about or from any portion of the Property. Notwithstanding the foregoing, nothing contained in this Agreement shall be construed as requiring Manager to prevent or supervise any action of, nor shall Manager have any liability or responsibility with respect to 5195527.1 13
OCTA, SCRRA, Amtrak, Greyhound or other transit providers, including freight carriers, or any other Person acting on behalf of such entities, with respect to Hazardous Materials. (3) Notice. Manager shall promptly advise City in writing promptly upon (i) Manager’s discovery of the presence or release of any Hazardous Materials in, on, under, about or from any portion of the Property (except as permitted under Section 5.8(2)); (ii) any remediation Manager believes may be required to remedy such Hazardous Materials contamination; (iii) Manager’s discovery of any occurrence or condition in, on, under, about or from any portion of the Property that could cause ARTIC or any portion thereof to be subject to any regulation of or restrictions on the ownership, occupancy, transferability or use of the ARTIC Site or any portion thereof under any Governmental Requirement or Environmental Laws. Manager and City shall provide each other with copies of any notices received by either party from any government agency relating to the environmental condition of, or activity on or about, any portion of the ARTIC Site, within three (3) days after receipt of same. Manager shall not engage in investigation or remediation work relating to any Hazardous Materials and shall not meet or consult with any government agency, without the prior written consent of City.
5.9 City Police Powers. Nothing in this Article V is intended to limit or restrict City’s exercise of its municipal powers to approve all development and improvements, including, without limitation, plan and site approval and issuance and enforcement of building permits in accordance with all applicable Governmental Requirements.
ARTICLE VI
LEASING, SPECIALTY LICENSING AND MARKETING SERVICES
6.1 Description of Services. Manager will provide a full service, integrated approach to marketing, developing and activating ARTIC as a transportation, retail, merchandising, events and cultural facility, subject to the limitations of the Approved Budget. These Services are principally described in this Article VI, and are in conjunction with, in addition to, or are supplementary to the Services described in Articles IV and V and elsewhere in this Agreement and will include the following:
(1) Marketing Plan and Retail Master Plan. Manager shall conduct all leasing and marketing activities relating to ARTIC.
(2) Marketing. Manager’s project team for ARTIC will deliver consistent, high-quality recommendations, supported by thorough market analysis, feasibility testing, assessment of potential tenants, transportation, cultural and special events and an understanding of City’s goals for ARTIC first and foremost as a transportation facility. Manager’s strategic approach will focus on maximizing value for the Facility. Manager will maintain a wide network of retail and community/cultural programming contacts to capitalize on these relationships for the benefit of City and will develop effective strategies to secure tenants, which meet the needs of the traveling public, City residents and visitors.
5195527.1 14
(3) Special Events. Manager will implement and oversee a program to encourage and implement cultural and special events at ARTIC that will generate traffic, publicity and additional revenue and draw additional traffic to the ARTIC Site beyond that of the traveling public. Manager shall ensure that special events at ARTIC do not interfere with the normal transit functions at the ARTIC Site.
6.2 Leasing. Subject to the limitations of the Approved Budget, Manager shall make every reasonable effort to obtain and keep tenants consistent with the Approved Budget, and the provisions of this Agreement. All leasing at ARTIC shall comply with Conditional Use Permit No. 2012-046, as it may be amended, satisfy all applicable FTA and OCTA requirements, and comply with zoning and all other applicable provisions of the Anaheim Municipal Code. All non- transit uses shall constitute “incidental uses” within the meaning of FTA Circular 5010.1E and not conflict with the approved purposes of the Facility, interfere with the intended transit uses of the Facility, or affect ARTIC’s transit capacity or use. Except for Amtrak, Metrolink, Greyhound, intercity passenger bus service, and other transportation services and public agencies (as directed by City), Manager shall negotiate all leases, renewals of leases and other lease-related documents, provided that all leases whose term (including options and extensions) may survive the term of this Agreement shall be subject to City’s review, approval and action. Manager shall make every reasonable effort to obtain and keep tenants satisfactory to City, consistent with the Approved Operating Budget, and the provisions of this Agreement.
6.3 Execution of Leases. All leases and lease renewals, extensions and modifications are to be prepared by counsel retained by Manager and either executed by City or, following City’s determination that the requirements of Section 6.2 have been met and express authority to execute, executed by Manager as City’s authorized representative. Leasing costs shall be an Operating Expense pursuant to an Approved Budget.
6.4 Lease Forms. All leases, licenses and similar agreements for use of the Property shall be on the form approved in writing by City.
ARTICLE VII
INSURANCE
7.1 Insurance Requirements.
(1) Manager agrees to secure and maintain in full force and effect for the full Term of this Agreement, at Manager’s sole cost and expense, except the extent set forth in the Approved Budget hereunder, the insurance coverage, with the required terms and conditions, set forth in this Section 7.1:
(a) Workers Compensation Insurance in compliance with the laws of the State of California, including Employers Liability Insurance, in an amount not less than $1,000,000 per occurrence.
5195527.1 15
(b) Manager has the responsibility to manage, operate, conduct day-to- day maintenance, and coordinate and oversee other parties’ work on the Property. Its Commercial General Liability Insurance shall cover such responsibilities and shall be written on an occurrence form, CG 00 01 or equivalent, with defense costs in addition to limits, insuring Bodily Injury, Personal Injury, and Property Damage, including Premises and Operations coverage for the entire ARTIC Site (except for any areas otherwise specifically carved out of Manager’s area of responsibility), Product and Completed Operations coverage, Contractual Liability coverage, in an amount not less than $2,000,000 per occurrence, and not less than $4,000,000 in the aggregate for this location and Agreement. The City (as named insured means, the City of Anaheim, its elected and appointed officials, officers, employees and agents) and the Manager shall each be specifically and separately included as named as named insureds on such policies as respects operating and managing the ARTIC Site in accordance with the terms of this Agreement. Such insurance shall be the primary coverage, shall provide coverage for the Premises risk for the entire ARTIC Site (except for any areas otherwise specifically carved out of Manager’s area of responsibility) and shall not seek contribution from any insurance or self-insurance maintained by the additional insureds. Such Commercial General Liability Insurance shall provide coverage for third-party injuries and losses which may occur, have occurred, or are alleged to have occurred, and shall respond whether or not a claimed loss has, or has not, been proven to be valid; such to the terms and conditions of the policy and pursuant to this Agreement. Comprehensive Automobile Liability Insurance on all owned, non- owned, hired or leased automotive equipment used in the performance of the Services, in an amount not less than $2,000,000 per occurrence, combined single limit, written on an occurrence form.
(c) Excess or Umbrella Liability Insurance excess of the underlying Commercial General, Automobile, and Employer’s Liability, in an amount not less than $10,000,000 per occurrence, written on an occurrence form, and not less than $10,000,000 in the aggregate for this location and Agreement. The policy shall be concurrent with and follow the form of the underlying insurance, including named insured provisions and shall be primary and noncontributing with any insurance maintained by the City or any additional insureds. Should this insurance have claims filed against it that are reasonably expected to erode 70% of the aggregate limits for any policy period, Manager shall notify City’s Risk Manager to discuss procurement of coverage to reinstate the limits.
(d) All-Risk Property Insurance in an amount equal to the replacement value of Manager’s personal property and equipment at the Property, if any. (e) Crime Insurance for the benefit of City, including both first-party and third-party fidelity coverage, covering all of Manager’s employee involved in handling or accounting for cash and other types of monetary instruments taken in by Manager in the course of business (including but not limited to checks and credit card transaction records), and covering Manager’s collection and retention of funds received in the course of business for loss exposures including, but not limited to, theft (inside and outside), robbery, mysterious disappearance, computer fraud, and depositor’s forgery.
(2) If Manager’s work includes professional design or engineering services, by professionals on staff or under a consulting agreement, Manager must secure, acquire and 5195527.1 16
maintain, or require its independent consultant to acquire and maintain, Professional Liability Insurance in limits not less than $1,000,000, per occurrence and aggregate, covering the professional services performed in connection with the Property and continuing in force by renewal or extended reporting provision for not less than three years after completion of such professional design or engineering services. This coverage form may be “claims made” and include defense expense within the limit of liability.
(3) On insurance policies where the City is named as an insured, the City shall be an insured to the full limits of liability purchased by the Manager, even if such limits of liability are in excess of those required by this Agreement. If a policy has language to the contrary, Manager must secure and provide to City an endorsement removing such limitation. Any agreements entered into by either Manager or City, subsequent to the effective date of this Agreement with respect to the Property shall name City and Manager as additional insureds (on all applicable coverages) and, to fullest extent obtainable, shall provide for a waiver of subrogation. (4) The limits of coverage set forth herein are only minimum requirements and shall not serve to limit any higher levels of coverage otherwise purchased by Manager. (5) Manager’s insurance coverages required herein must include a waiver of the insurance companies’ rights of subrogation against City and the Indemnitees and City hereby agrees to cause its insurance companies to waive their rights to subrogation against Manager. (6) Prior to beginning work under this Agreement, Manager shall submit to City evidence of the coverages required in this Section 7.1, and within 30 days of the effective date of this Agreement shall submit endorsements to Manager’s coverage in form and substance satisfactory to City as required in this Section 7.1, including additional insured requirements. If the insurance information is not submitted within ten (10) days from the due dates set forth herein, then following three (3) business days prior written notice to Manager for an opportunity to cure, this Agreement may be terminated for cause at City’s option. In the event of cancellation or non- renewal of any insurance coverage or insurance policy required in this Section 7.1, Manager agrees to provide at least thirty (30) days prior written notice of such cancellation or non-renewal to City, and ten (10) days prior written notice of cancellation if cancellation is for non-payment of premium. Such written notice of cancellation shall be delivered by certified or registered mail to City. Should any policy expire or be canceled before final payment to Manager and Manager fails to immediately procure other insurance as specified, City reserves the right, but shall not have the obligation, to procure such insurance as will protect City from such failure, and to charge the Manager for such costs and/or deduct the cost from any sum due Manager under this Agreement.
Exercise of the remedies set forth herein, however, are alternatives to other remedies City may have and are not the exclusive remedy for Manager’s failure to maintain insurance or secure and provide appropriate certificates and endorsements.
(7) All insurance required by this Agreement shall be written by insurance carriers licensed to do business in the State of California, and such carriers must be rated no less than A VII by the most current listing in Best’s Key Rating Guide. The insurance required herein may contain a deductible not to exceed $100,000 per occurrence and any such deductible shall be disclosed to City. Self-insurance of any coverage, or part thereof, will only be permitted upon 5195527.1 17
written consent of City, in its sole discretion. Manager shall have the responsibility to pay any deductibles or self-insured retentions.
(8) Nothing herein shall be construed as limiting in any way the extent to which Manager may be held responsible for payments of damages to persons or property resulting from Manager’s, (or Manager’s contractors/subcontractor, if any) performance of the Services provided under this Agreement.
(9) In the event that a claim or other legal action is filed against City, and the Manager denies that the claim is covered by insurance provided pursuant to this Agreement, then City has the right to demand, and to receive within a reasonable time period, copies of the insurance policies related to such required insurance; provided, however, that this provision shall not apply if the parties agree that Manager shall fully indemnify and hold harmless City against any such claim or other legal action
(10) In the event Manager hires other persons or firms to perform some of the work related to this Agreement, Manager shall ensure that such firms maintain insurance equal to or better than, and subject to the same limits, terms and conditions as, the insurance required of Manager under this Agreement (except for firms which are not performing professional services- such firms shall not be required to carry the above- referenced professional liability insurance); and in either instance, Manager may be required, at City’s option, to provide, or cause to be provided, evidence of such insurance coverage, reasonably acceptable to City. Manager must be aware that for work to be performed by its contractor(s) on the rail platforms, such contractor(s) shall be required to secure and carry Railroad Protective Liability Insurance and such insurance shall meet the responsibilities of Manager and City to provide such insurance. (11) The City’s Risk Manager is authorized to reduce the requirements set forth herein in the event the City’s Risk Manager determines that such reduction is in City’s best interest.
ARTICLE VIII
RECORDS AND REPORTS, CITY RIGHT TO AUDIT AND
PROPERTY INSPECTION
8.1 Accounting Records. Manager shall keep complete and accurate books and records of the transactions and operations of the Facility. These books and records shall be kept at the Facility or another location within Orange County and made available at the Facility at City’s request for review and copying.
8.2 Reports. Within thirty (30) days after the end of each calendar month, Manager shall provide to City, in a format acceptable to the City, a month-to-date and year-to-date report, through the preceding month end, of income and expenses, balance sheet, a comparison of income and expenses to the Approved Budget (including a statement showing variance from the budget), a statement of all current Operating Loans made by Manager and reimbursed to Manager, and a current rent roll (setting forth the names of all tenants, the amount of security deposits, if any, current rents, all delinquencies, the date rent was last paid and balances due, if any), together with 5195527.1 18
a description of leases entered into during such calendar month, and other statements, reports and information that City reasonably requests from time to time.
8.3 Financial Statements. Within ninety (90) days following the end of each Operating Year, Manager shall provide City with financial statements prepared in accordance with generally accepted accounting principles, consistently applied, in a manner which fairly presents an accurate statement of the financial operations of the Facility, containing balance sheets of Manager as of the end of such Operating Year and statements of cash flow and income for such Operating Year (“Financial Statements”) prepared by Manager, all in reasonable detail. As soon as available and in any event within ninety (90) days after the end of each Operating Year, Manager shall provide City an opinion of a nationally known independent certified public accountant selected by Manager and accepted by City as to such Financial Statements. The cost of such opinion is an Operating Expense. The date such opinion is delivered to City shall be deemed the “Accounting Date”.
8.4 City’s Right to Audit. City reserves the right to audit and to examine any cost, revenue, payment, charges, claim, other record, or supporting documentation resulting from any items set forth in this Agreement. Any such audit(s) shall be undertaken by City or City’s representative(s) at reasonable times and in conformance with generally accepted auditing standards. City’s rights to audit shall include the right to contact third parties to confirm entries in Manager’s supporting documentation. Manager agrees to fully cooperate with any such audits and shall make office and support facilities available to City representatives as may be reasonably necessary to complete any such audits and inspections. At City’s request, Manager shall make its books and records available to the City or its representatives. Manager shall also provide City or its representative with copies of specifically identified books and records.
8.5 Audit Period. This right to audit shall extend during the length of this Agreement and for a period of four (4) years following the date of final payment under this Agreement, or until any on-going audit is completed. Manager agrees to retain all necessary records and documentation for the entire length of this audit period and for the period required by OCTA and FTA, where applicable.
8.6 Audit Results. Manager will be notified in writing of any exception taken as a result of an audit. Should an audit discover either weaknesses in internal control or errors in recordkeeping, Manager shall correct such discrepancies either upon discovery or within a reasonable period of time. Manager shall inform City in writing of the action taken to correct any audit discrepancies. Any adjustments and/or payments which must be made as a result of any such audit or inspection of Manager’s records shall be made within thirty (30) days from presentation of City’s finding to Manager. If an audit inspection or examination in accordance with this Article discloses overcharges and/or underpayment (of any nature) by Manager to City in excess of one percent (1%) of the total billings for the period being audited, the actual cost of City’s audit shall be reimbursed to City by Manager.
8.7 Agreements with Subcontractors. Manager shall include a clause in its agreements with subcontractors reserving the right for audits to be performed by its own employee representative(s) or its contracted representatives, and representatives from City, or its contracted 5195527.1 19
representative(s), who shall have the right to audit and examine any cost, revenue, payment, charges, claim, other record, or supporting documents resulting from any items set forth in its agreements. The clause shall further set forth that this right to audit shall extend during the length of this Agreement and for a period of four (4) years following the date of final payment under this Agreement, or until any on-going audit is completed, and such subcontractor agrees to retain all necessary records and documentation for the entire length of this audit period.
8.8 Production of Documents. Manager shall, upon City’s written request from time to time, submit copies of any contract, bill, license, agreement or any other document relating to the Property or to this Agreement in Manager’s possession to City. sent to City, promptly upon execution thereof.
8.9 Inspections. City (and City’s designees) shall be entitled to inspect the Property at any and all times, and from time to time, without notice. Manager shall fully cooperate with City (and City’s designees) to facilitate any such inspection.
8.10 Outside Audits. Nothing in this Article VIII is intended to supersede the Governmental Requirements, the provisions of any Property Agreements or the terms of any other funding source with respect to record-keeping, reporting, preservation of records and audit rights, and Manager shall comply with all such terms and requirements. Without limiting the foregoing, Manager shall maintain all documents for the periods required by the OCTA and the FTA and shall cooperate with City to facilitate OCTA and FTA audits.
ARTICLE IX
BUSINESS PLAN AND BUDGET, HANDLING OF FUNDS,
PAYMENT OF EXPENSES AND OTHER AMOUNTS
9.1 Business Plan and Budget. Within ninety (90) days after the Commencement Date for the initial Operating Year (and within sixty (60) days prior to the expiration of each succeeding Operating Year during the Term), Manager shall prepare and provide to City for its review and approval a proposed business plan, operating budget and five-year Capital Expenditure plan for the Property containing projections of estimated income and expenses and estimated Facility profit on a monthly and yearly basis (the “Approved Budget”). The Approved Budget shall set forth on a line item basis all Operating Expenses, Capital Reserve Fund payments of up to $150,000 per year payable from funds available pursuant to Section 9.3(2)(iv) into the Reserve Account and proposed Capital Expenditures for the current Operating Year and proposed Capital Expenditures for succeeding Operating Years. Any parking fees (other than for special events) described in the Approved Budget shall be discussed with City in advance of inclusion in the Approved Budget and shall be considered with due regard for the primary purpose of the Facility as a transportation center; without City’s prior consent, no parking fees shall be assessed to users of any transit providers. Such information shall be presented in such format as agreed between City and Manager. Manager shall operate the Property substantially in accordance with the Approved Budget, provided, however, that City shall be responsible for the payment of all Capital Expenditures shown in the Approved Budget which are not included within the definition of Operating Expenses. Except to the extent included within the definition of Operating Expenses, Manager will not incur any Capital Expenditures without the express written agreement of the City to fund (either by contracting directly or, if acceptable to Manager, reimbursement of the Manager in the event the Manager contracts for the work directly in accordance with the Approved Budget). 5195527.1 20
9.2 Handling of Funds.
(1) All funds received (with the exception of Third Party Deposits and Outdoor Sponsorship and Advertising Revenues) by Manager in connection with operation of the Facility shall be deposited promptly by Manager in accounts held and controlled by Manager for the benefit of City in accordance with this Agreement at a financial institution selected by Manager from time to time and reasonably acceptable to City (the “Operating Account”). (2) Third Party Deposits shall be held in a segregated account (the “Third Party Account”) pending application pursuant to the specific contract under which each such Third Party Deposit is made; any Third Party Deposit forfeited by the applicable third party shall be transferred to the Operating Account.
(3) Outdoor Sponsorship and Advertising Revenues shall be held in a segregated account (the “Outdoor Sponsorship and Advertising Revenues Account”, and shall be applied from time to time to Operating Expenses as and when due; provided, Outdoor Sponsorship and Advertising Revenues not required to pay Operating Expenses shall be retained in the Outdoor Signage Revenues Account in compliance with the ordinance establishing the ARTIC Special Sign District, and shall not be distributed to Manager. (4) Reserves shall be held in a segregated account (the “Reserve Account”) pending application thereof as provided in this Agreement. Amounts held in the Reserve Account shall be used to pay cost for which such funds were reserved including Maintenance and Repairs. (5) Manager shall have the right to invest cash on hand in Permitted Investments from time to time.
9.3 Payment of Expenses and Other Amounts.
(1) All Gross Revenues and proceeds of Operating Loans are the property of City and during the Term, City grants Manager the power and authority, and directs Manager to collect, deposit and distribute Gross Revenues and proceeds of Operating Loans in strict accordance with the terms of this Agreement.
(a) Manager agrees to make an Operating Loan if and as required to pay Operating Expenses with respect to each such Operating Year pursuant to 9.3(2), provided however that beginning with the Operating Year commencing July 1, 2019 and continuing thereafter Manager’s obligation to make an Operating Loan shall be limited to $2,500,000 during each Operating Year (prorated for any partial Operating Year), (such amount being the “Maximum Annual Operating Loan Amount”).
(b) In the event that in any Operating Year (prorated for any partial Operating Year), Manager verifies to City’s satisfaction that the total of Gross Revenues received in such Operating Year, Operating Loans (in the amount of the Maximum Annual Operating Loan Amount for that Operating Year) made by Manager for 5195527.1 21
such Operating Year and funds available in the Reserve Account for such purposes, if any, are insufficient to pay all Operating Expenses with respect to such Operating Year (such unpaid amount for that Operating Year being the “Current Deficit”), City agrees to pay an amount equal to the Current Deficit within thirty (30) days of Manager providing such verification. City’s payment amount (the “City Contribution”) shall be applied solely to pay the Current Deficit. The City Contribution shall bear interest at the same rate as the Operating Loans for such Operating Year bear interest.
(c) Notwithstanding the preceding clauses (a) and (b), commencing on the Commencement Date City shall, through and including June 30, 2019, the Current Deficit for such period shall be paid by City.
(2) From time to time during the Term, Manager shall pay amounts as and when specified below during each Operating Year from and to the extent of cash available in the Operating Account, and, as applicable, in the Reserve Account, and, to the extent necessary, from the proceeds of Operating Loans made as described in clause (1)(a) and City Contributions made as described in clause (1)(b), in the following order of priority:
(i) First, as and when due, payment of Operating Expenses; Thereafter, solely to the extent of cash available in the Operating Account, the following:
;
(ii) Second, repayment of outstanding principal of and interest on Operating Loans made by Manager and City Contributions, payable to Manager and City, respectively, in the same proportion that outstanding principal and accrued interest on Operating Loans bears to the amount of unreimbursed City Contributions and the interest accrued thereon; and
(iii) Third, on each Accounting Date, after payment into the Capital Reserve Account of the first $150,000 of remaining available amounts, payment to City and Manager of their respective shares of Net Revenues for the Operating Year just ended as follows:
60% to the City and 40% to Manager.
ARTICLE X
CITY’S RESPONSIBILITIES
10.1 Office and Equipment. City shall provide to Manager suitable office space free of any rent or other charges, in order for Manager to properly fulfill its duties and obligations under this Agreement with respect to the Property. Any repair, renovation or replacement of Manager’s office space, furniture and/or equipment shall be subject to the Approved Budget. Upon termination of this Agreement, the office space, furniture and/or equipment shall be in good 5195527.1 22
condition, reasonable wear and tear excepted. Notwithstanding anything herein to the contrary, Manager shall have only a right to use the space, furniture and equipment hereunder and not an interest in property with respect thereto.
10.2 Payment of Taxes. Manager recognizes and understands that this Agreement may create a possessory interest subject to property taxation, and Manager may be subject to the payment of property taxes levied on such interests. In such a case, Manager shall be entitled to treat the actual cost of any property or possessory interest taxes as an Operating Expense, and on Manager’s request, City shall cooperate with Manager in challenging an assessment which the parties agree is properly subject to a protest, with all costs incurred constituting an Operating Expense. However, in no event shall any net income or franchise tax assessed against Manager be deemed an Operating Expense, and such taxes shall be the responsibility of Manager.
10.3 All-Risk Property Insurance. Throughout the term of this Agreement, City shall carry, or shall cause to be carried, All-Risk Property Insurance covering the Facility and any City- owned equipment permanently affixed thereto (in the amount of the full replacement cost thereof), and covering City’s personal property, subject to the same coverage terms and conditions as City procures for the rest of its insured property. Such Property Insurance may be combined with, or provided under, the City’s blanket property insurance on all of its structures and facilities. At present, and possibly in the future at City’s sole and absolute discretion, the City does not insure its property against the perils of land movement/subsidence (including without limitation the peril of earthquake), flood, or terrorism. In addition, some property coverages such as landscaping, are subject to sub limits, a list of which are available for Manager upon request to City. It is understood and acknowledged that Manager shall not be liable to City for any uninsured first-party property losses (sometimes referred to as casualty losses or events) to the property referenced in this Section
10.3; provided, however, that such non-liability shall not extend to losses resulting from Manager’s willful misconduct and the City’s property insurance does not generally cover hardscape.
ARTICLE XI
REPRESENTATIONS AND WARRANTIES
11.1 Manager’s Representations and Warranties.
(1) Manager’s Expertise. Manager represents and warrants that it has or will retain skilled, experienced and sophisticated employees in each of the areas of expertise included in the Services.
(2) Power. Manager has the full power, authority and legal right to enter into this Agreement and to consummate the transactions contemplated hereby and the individuals executing this Agreement on behalf of Manager have the corporate power, right and actual authority to bind Manager to the terms and conditions hereof. (3) Conflicts. The execution and delivery of this Agreement, the incurring of the obligations set forth herein and compliance by Manager with the terms of this Agreement and the documents referenced herein (i) do not conflict with the articles of organization or the operating 5195527.1 23
agreement of Manager, (ii) do not, to the knowledge of Manager, violate any Governmental Requirements, and (iii) do not conflict with and will not result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note, or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, partnership agreement, lease or other agreement or document to which Manager is a party. (4) General Representation. No representation, warranty or statement of Manager in this Agreement, or in any document, certificate or schedule furnished or to be furnished to City by Manager (whether before or after the Commencement Date) contains or will contain any untrue statement of a material fact or intentionally omits or will intentionally omit to state a material fact necessary to make the statements or facts contained therein not misleading.
11.2 City’s Representations and Warranties.
(1) Power. City has the full power, authority and legal right to enter into this Agreement and all documents referenced herein, and to consummate the transactions contemplated hereby and the individuals executing this Agreement on behalf of City have the corporate power, right and actual authority to bind City to the terms and conditions hereof. (2) Conflicts. The execution and delivery of this Agreement, the incurring of the obligations set forth herein and compliance by City with the terms of this Agreement (i) do not conflict with the charter or legal authority of City, (ii) do not, to the knowledge of City, violate any Governmental Requirements, and (iii) do not conflict with and will not result in the material breach of any terms, conditions or provisions of, or constitute a default under, any bond, note, or other evidence of indebtedness or any contract, indenture, mortgage, deed of trust, loan, partnership agreement, lease or other agreement or document to which City is a party. (3) General Representation. No representation, warranty or statement of City in this Agreement or in any document, certificate or schedule furnished or to be furnished to Manager by City (whether before or after the Commencement Date) contains or will contain any untrue statement of a material fact or intentionally omits or will intentionally omit to state a material fact necessary to make the statements or facts contained therein not misleading.
11.3 Reliance. Manager acknowledges and agrees that City is relying upon the representations and warranties set forth in Section 11.1 in entering into this Agreement, and City acknowledges and agrees that Manager is relying upon the representations and warranties set forth in Section 11.2 in entering into this Agreement.
ARTICLE XII
COMPENSATION
12.1 Compensation. Subject to the other terms of this Agreement, Manager shall receive remuneration for its services in accordance with the terms of this Agreement. Manager shall receive a management fee in the amount of $125,000 for each Operating Year (“Management Fee”), provided, however, that Manager shall not be entitled to a Management 5195527.1 24
Fee for an Operating Year in which the Net Revenue is less than -$1,500,000 (i.e., the Operating Loss is $1,500,000 or more).
ARTICLE XIII
NOTICES
13.1 Notices. All notices, demands, consents and reports provided for in this Agreement shall be in writing and shall be given to City or Manager at the address set forth below or at such other address as they individually may specify thereafter in writing:
City: City of Anaheim
Convention, Sports and Entertainment
800 W. Katella
Anaheim, CA 92802
Attention: Tom Morton, Executive Director
With copies to: City of Anaheim
200 South Anaheim Boulevard, Suite 356
Anaheim, CA 92805
Attention: Robert Fabela, City Attorney
City Clerk
200 South Anaheim Boulevard,
Second Floor
Anaheim, CA 92805
Attention: Theresa Bass, City Clerk
Manager: ATCM, LLC
1500 S. Douglass Road, Suite 100
Anaheim, CA 92806
Attention: Chief Executive Officer
With a copies to: H & S Ventures, LLC
2101 East Coast Hwy, Third Floor
Corona del Mar, CA 92625
Attention: Michael Schulman
H & S Ventures, LLC
2101 East Coast Hwy, Third Floor
Corona del Mar, CA 92625
Attention: General Counsel
5195527.1 25
Anaheim Real Estate Partners, LLC
2695 E. Katella Avenue
Anaheim, CA 92806
Attention: Legal Department
Such notice or other communication may be mailed by United States registered or certified mail, return receipt requested, postage prepaid and may be deposited in a United States Post Office or a depository for the receipt of mail regularly maintained by the Post Office. Such notices, demands, consents and reports may also be delivered by hand or by nationally recognized overnight courier service. For purposes of this Agreement, notices will be deemed to have been given upon receipt or rejection of receipt whether given by personal delivery, overnight courier service or the United States mails as provided above.
ARTICLE XIV
GENERAL PROVISIONS
14.1 No Assignment. Manager shall not assign or transfer any interest in this Agreement, whether by subcontract, assignment or novation, without the prior written consent of City, provided City’s consent to Manager’s assignment of its rights and obligations under this Agreement to an Affiliate of Manager shall not be unreasonably withheld so long as the Guaranty is reaffirmed concurrently with such assignment.
14.2 Non-Conforming Services. The acceptance by City of any non-conforming services under the terms of this Agreement or the foregoing or waiver by City of any of the rights or remedies arising under the terms of this Agreement shall not constitute a waiver of City’s right to conforming services or any rights and/or remedies in respect to any subsequent Breach or Default of the terms of this Agreement. In the event of any Default or Breach of this Agreement by Manager, City shall have the right to pursue any rights and remedies available at law or in equity. The rights and remedies of City provided or referred to under the terms of this Agreement are cumulative and not mutually exclusive.
14.3 Equal Employment Opportunity. Manager agrees to comply with all federal, state and local laws, resolutions, ordinances, rules, regulations and executive orders pertaining to unlawful discrimination on account of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, sexual orientation, disability, or age. When required by law, Manager shall furnish a written affirmative action plan.
14.4 Prevailing Wage. In connection with Manager’s performance of the Services, Manager shall comply with all applicable federal, state and local labor laws and regulations, including, without limitation, as applicable, the requirements to pay prevailing wages under federal law (the Davis Bacon Act, 40 U.S.C. Section 3141, et seq., and the regulations promulgated thereunder set forth at 29 CFR Part 1 (collectively, “Davis Bacon”)) and California law (Labor Code Section 1720, et seq.) (and together with Davis Bacon, the “Prevailing Wage Laws”). City and Manager acknowledge and agree that federal and/or state funding sources used in connection with the construction and operation of ARTIC may trigger compliance with applicable Prevailing 5195527.1 26
Wage Laws. Manager shall be solely responsible, expressly or impliedly, for determining and effectuating compliance with all applicable federal, state and local public works requirements, Prevailing Wage Laws, labor laws and standards, and City makes no representation as to the applicability or non-applicability of any federal, state and local laws to ARTIC. Manager expressly, knowingly and voluntarily acknowledges and agrees that City has not previously represented to Manager or to any representative, agent or Affiliate of Manager or any subcontractor(s) hired by Manager for the performance of Services hereunder, in writing or otherwise, that the Services to be undertaken pursuant to this Agreement is (or is not) a “public work,” as defined in Section 1720 of the Labor Code or under Davis Bacon. Manager knowingly and voluntarily agrees that Manager shall have the obligation to provide any and all disclosures or identifications with respect to ARTIC as required by Labor Code Section 1781 and/or by Davis Bacon, as the same may be amended from time to time, or any other similar law or regulation.
Manager shall indemnify, protect, pay for, defend (with legal counsel acceptable to City) and hold harmless the City (and its Mayor, Council Members and members of City staff), from and against any and all loss, liability, damage, claim, cost, expense and/or “increased costs” (including reasonable attorneys’ fees, court and litigation costs, and fees of expert witnesses) which, in connection with the provision of the Services hereunder by Manager, including, without limitation, construction or maintenance of any and all public works (as defined by applicable law), results or arises in any way from any of the following: (i) the noncompliance by Manager with any applicable local, state and/or federal law or regulation, including, without limitation, any applicable federal and/or state labor laws or regulations (including, without limitation, if applicable, the requirement to pay state and/or federal prevailing wages); (ii) the implementation of Section 1781 of the Labor Code and/or of Davis Bacon, as the same may be amended from time to time, or any other similar law or regulation; and/or (iii) failure by Manager to provide any required disclosure or identification as required by Labor Code Section 1781 and/or by Davis Bacon, as the same may be amended from time to time, or any other similar law or regulation. The parties agree that, in connection with the provision of Services under this Agreement, including construction or maintenance (as defined by applicable law or regulation) of ARTIC (to the extent such construction or maintenance work is a required Service hereunder), including, without limitation, any and all public works (as defined by applicable law or regulation), Manager shall bear all risks of payment or non-payment of prevailing wages under applicable Prevailing Wage Laws, as the same may be amended from time to time, and/or any other similar law or regulation. “Increased costs,” as used in this Section, shall have the meaning ascribed to it in Labor Code Section 1781, as the same may be amended from time to time. The foregoing indemnity shall survive termination of this Agreement.
14.5 California Public Records Act. All data and documentation collected, created, received, maintained or disseminated for any purpose in the course of Manager’s performance of this Agreement is governed by the California Public Records Act, Government Code Section 6250, et seq. (“CPRA”) and any other applicable state statutes, any regulations adopted to implement the CPRA and any federal statutes and regulations on data privacy. Manager shall take all reasonable measures to secure the computers or any other storage devices in which City data is contained or which are used to access City data for the ARTIC Site or this Agreement.
Additionally, subject to the CPRA, access to City data shall be limited to those persons with a need to know for the provision of services by Manager. These measures include, but are not limited to, authenticated access to network data storage, use of up-to-date anti-virus software, controlled 5195527.1 27
access to the physical location of the hardware, and the encryption of computers and storage devices, all in accordance with industry standards.
14.6 Conflict of Interest. Organizational conflict of interest means that because of other activities or relationships with other persons, a person is unable or potentially unable to render impartial assistance or advice to the owner, or the person’s objectivity in performing the contract work is or might be otherwise impaired, or a person has an unfair competitive advantage. Manager agrees that if, after award, an organizational conflict of interest is discovered, Manager must make a prompt and full written disclosure to City that includes a description of the action Manager has taken or proposes to take to avoid or mitigate such conflicts. If an organizational conflict of interest is determined to exist, and Manager does not promptly cure the same, City may, at its discretion, terminate this Agreement. If Manager was aware of an organizational conflict of interest prior to the award of the date of this Agreement and did not disclose the conflict to City, City may terminate this Agreement for Default without liability.
14.7 Alteration. Any alteration, variation, modification, or waiver of the provisions of this Agreement shall be valid only after it has been reduced to writing and duly signed by both parties.
14.8 Interpretation of Agreement and Venue. This Agreement shall be interpreted and construed according to the laws of the State of California. All litigation regarding this Agreement shall be in the Orange County Superior Court or the federal district court for the Central District of California. This Agreement shall be interpreted in accordance with the fair meaning of the provisions hereof, and not strictly for or against either party.
14.9 Contractor Certification Regarding Debarment, Suspension, and Responsibility (If applicable). Federal Regulation 45 CFR 92.35 prohibits City from purchasing goods or services with federal money from vendors who have been suspended or debarred by the federal government.
By signing this Agreement, Manager certifies that it and its principals:
(1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from transacting business by or with any federal, state or local governmental department or agency; and
(2) Have not within a three-year period preceding this Agreement:
a. been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain or performing a public (federal, state or local) transaction or contract; b. violated any federal or state antitrust statutes; or c. committed embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property; and 5195527.1 28
(3) Are not presently indicted or otherwise criminally or civilly charged by a governmental entity for:
a. commission of fraud or a criminal offense in connection with obtaining, attempting to obtain or performing a public (federal, state or local) transaction; b. violating any federal or state antitrust statutes; or c. committing embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property; and (4) Have not had one or more public transactions terminated within the preceding three years for cause or default; and
(5) Shall not knowingly enter into any transaction with a subcontractor who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, and that they will require any subcontractor that receives more than $100,000 to make a similar certification as set forth herein; and
(6) Are not aware of any information and possess no knowledge that any subcontractor(s) that will perform work pursuant to this Agreement are in violation of any of the certifications set forth above; and
(7) Shall immediately give written notice to City should Manager come under investigation for allegations of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local government) transaction; violating any federal or state antitrust statutes; or committing embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property.
14.10 Lobbying. For all contracts involving over $100,000 in federal funds, Manager must sign a Certification Regarding Lobbying for Contracts, Grants, Loans, and Cooperative Agreements.
14.11 Disadvantaged Business Enterprise . In accordance with federal financial assistance agreements with the U.S. Department of Transportation (U.S. DOT), City has adopted a Disadvantaged Business Enterprise (DBE) Policy and Program, in conformance with Title 49 CFR Part 26, “Participation by Disadvantaged Business Enterprises in Department of Transportation Programs, Federal Highway Administration” (the “Regulations ”). The City’s DBE program is available at the following website:
http://www.anaheim.net/depts_serve/pub_works/con_adm/projadvnew.asp All construction and engineering Services under this Agreement are subject to the Regulations; in addition, other Services may become subject to the Regulations and Manager shall comply with the Regulations if and to the extent directed to do so by City from time to time. 5195527.1 29
14.12 Force Majeure. Subject to the party’s compliance with the notice requirements as set forth below, performance by a party hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended, where delays or defaults are due to causes beyond the control and without the fault of the party claiming an extension of time to perform, which may include, without limitation, the following: war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, assaults, acts of God, acts of the public enemy, epidemics, quarantine restrictions, freight embargoes, lack of transportation, governmental restrictions or priority, litigation, unusually severe weather, inability to secure necessary labor, materials or tools, acts or omissions of the other party, or acts or failures to act of any public or governmental entity (except that City’s acts or failures to act shall not excuse performance of City hereunder). An extension of the time for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause.
14.13 Non-Waiver. Nothing in this Agreement shall constitute a waiver by City of any statutory or common law immunities, limits, or exceptions on liability.
14.14 Consents and Approvals. City’s consents or approvals may be given only by representatives of City from time to time and who shall, initially, be the Executive Director – Convention, Sports and Entertainment or his duly authorized representative(s) shall have the authority to make approvals and consents, issue interpretations, waive provisions, request issuance of warrants and make payments authorized hereunder, make and execute further agreements and/or enter into amendments of this Agreement on behalf of City so long as such actions do not materially or substantially change or modify the uses permitted on the Site, or materially or substantially add to the costs, responsibilities, or liabilities incurred or to be incurred by City as specified herein. All material and/or substantive interpretations, waivers, or amendments shall require the consideration, action and written consent of the City Council. Further, Executive Director – Convention, Sports and Entertainment shall maintain the right to submit to the City Council for consideration and action any non-material or non-substantive interpretation, waiver or amendment, if in his reasonable judgment he elects to do so.
14.15 Pronouns. The pronouns used in this Agreement referring to City and Manager shall be understood and construed to apply whether City or Manager be an individual, co- partnership, corporation or an individual or individuals doing business under a firm or trade name.
14.16 Headings. All headings herein are inserted only for convenience and ease of reference and are not to be considered in the construction or interpretation of any provision of this Agreement.
14.17 Survival. The provisions of Articles II, VII, Sections 8.4-8.9 inclusive, XI, and XIII and Section 5.9(4) of this Agreement shall survive the expiration or termination of the Term of this Agreement.
5195527.1 30
14.18 Copies of Agreement and Signatures. The parties agree that a copy of the fully executed Agreement shall be considered an original instrument, and each, together or separately, shall become binding and enforceable as if original and the parties may rely on the same to prove the authenticity of the Agreement. This Agreement may be executed in one or more counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement and shall become binding when one or more counterparts have been signed by each of the party and delivered to the other party.
14.19 Special Obligation. Notwithstanding anything to the contrary contained herein, and excluding the City’s obligation to pay the City Contribution to the extent required by Section
9.3, the obligation of City to make any payment to Manager to pay or reimburse Manager for payment of the Spectacular Loan or Operating Loans under Section 9.3 is a special obligation of City payable solely from the Gross Revenues otherwise available therefor in accordance with the priority of payment set forth in Section 9.3 of this Agreement and not from any other funds or monies of City. The Parties understand and agree that the only obligation of the City as to the Spectacular Loan is to allow the payment of the principal and interest on the Spectacular Loan from the actual revenue received from the outdoor advertising signs on the exterior of ARTIC excluding the Spectacular. The full faith and credit of City is not available for or pledged to pay or reimburse Manager to pay or repay the Spectacular Loan or Operating Loans.
14.20 Complete Agreement. This Agreement, and the Exhibits and Schedules which are attached to it and are by this reference confirmed as a part of it, constitutes the entire agreement between the parties with respect to the activities described in this Agreement and the Property, and this Agreement (and the Exhibits and Schedules attached) supersedes and takes the place of any and all previous discussions and agreements by and between the parties relating to the subject matter of this Agreement and the Property. Except as set forth in this Agreement or otherwise agreed in writing, in no event shall any party other than the Manager and City have any rights or benefits under this Agreement nor shall any other person or entity have any third party beneficiary status with respect thereto.
14.21 Guaranty. Manager’s obligations hereunder (including the obligation of any successor manager which is an Affiliate of Manager) are guaranteed by Anaheim Arena Management LLC, a California limited liability company pursuant to the certain Unconditional Guaranty of Payment and Performance of even date (the “Guaranty”). [Signatures appear on following page.]
5195527.1 Facility Management Agreement
[Signature Page]
This Amended and Restated Facility Management Agreement is executed as of the date set forth above.
CITY OF ANAHEIM, a municipal
corporation and charter city
ATCM, LLC
By:
Name:
Title:
By:
William Foltz,
Chief Executive Officer
ATTEST:
THERESA BASS, CITY CLERK
By:
Theresa Bass, City Clerk
APPROVED AS TO FORM:
By:
Robert Fabela, City Attorney
5192941.1 Exhibit “A”
EXHIBIT “A”
LEGAL DESCRIPTION OF THE ARTIC SITE
[To conform to new legal following re-parceling and swaps] 5192941.1 Exhibit “B” – Page 1
EXHIBIT “B”
ARTIC SITE PLAN/DESCRIPTION OF THE ARTIC SITE
[To conform both the Site Plan and the description to include the ARTIC Garage (including potential Expanded ARTIC Garage), Meadow Park, ARTIC Improvements, ARTIC Expansion and ARTIC Signs (all as defined in the Development Agreement)] 5195527.1 Schedule 1 – Page 1
SCHEDULE 1
DEFINITIONS
“Acceptable Condition” shall mean a condition no worse than that existing on the Commencement Date, reasonable wear and tear excepted, and at least comparable to the standards of maintenance and level of service at the Honda Center (making allowances for differences in the age of ARTIC and the Honda Center), giving effect to the standard of care described in this Agreement, and taking into account all maintenance, repairs and improvements otherwise contemplated by this Agreement.
“Accounting Date” is defined in Section 8.3.
“Accounts” shall mean, collectively, the Operating Account, the Reserve Account, the Third Party Account, the Outdoor Signage Revenues Account and any other account established under this Agreement.
“Advertising, Sponsorship and Naming Rights Providers” means the third party consultants to be contracted with by Manager to provide services with respect to the sale of signage, advertising, sponsorship and naming rights at ARTIC on terms and conditions reasonably acceptable to the Manager and the City in compliance with all applicable Governmental Requirements and the applicable requirements set forth in the Development Agreement. “Affiliate” shall mean any person or entity directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with Manager, which shall include each of the constituent members of Manager’s limited liability company. The term “control,” as used in the immediately preceding sentence, means, with respect to a person that is a corporation, the right to exercise, directly or indirectly, at least 50% of the voting rights attributable to the shares of the controlled corporation, and, with respect to a person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled person.
“Agreement” means this Amended and Restated Facility Management Agreement. “Amendment Effective Date” means July 1, 2022.
“Amtrak” means the National Railroad Passenger Corporation, which operates passenger trains that will stop at ARTIC.
“Approved Budget” is defined in Section 9.1.
“Approved Operating Plan” and “Approved Operating Plans” are defined in Section
4.7. 5195527.1 Schedule 1 – Page 2
“ARTIC” and “ARTIC Site” mean the property subject to this Agreement, as defined in Recital A and described in Exhibit “A”.
“ARTIC Garage” has the same meaning as defined in Sections 1.13 and 1.37 of the Development Agreement.
“Breach” means a failure or delay by either to perform any material term or provision of this Agreement.
“Business Day(s)” means Monday through Friday, excluding state and federal holidays during which the City is closed.
“Capital Expenditure” means expenditures for property, components, systems and structures with a useful life of not less than three (3) years or which extend the life of the structure or improvement into which incorporated by not less than three (3) years, having a unit cost of not less than $10,000.
“CHSR” means California High Speed Rail.
“City” means the City of Anaheim, a California municipal corporation. “City Contribution” is defined in Section 9.3 (1)(b).
“Commencement Date” is defined in Section 2.2.
“CPRA” is defined in Section 14.5.
“Current Deficit” is defined in Section 9.3 (1)(b).
“Davis Bacon” is defined in Section 14.4.
“Development Agreement” is defined in Recital B.
“Default” is defined in Section 2.7.
“Environmental Laws” means all laws, ordinances and regulations relating to Hazardous Materials, including, without limitation: the Clean Air Act, as amended, 42 U.S.C. Section 7401, et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901, et seq.; the Comprehensive Environment Response, Compensation and Liability Act of 1980, as amended (including the Superfund Amendments and Reauthorization Act of 1986, “CERCLA”), 42 U.S.C.
Section 9601, et seq.; the Toxic Substances Control Act, as amended, 15 .U.S.C. Section 2601 et seq.; the Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651 , the Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Mine Safety and Health Act of 1977, as amended, 30 U.S.C. Section 801 et seq.; the Safe Drinking Water Act, as amended, 42 U.S.C. Section 300f et seq.; all comparable state and local laws, laws 5195527.1 Schedule 1 – Page 3
of other jurisdictions or orders and regulations; and all laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States, the State of California, the County of Orange, the City, or any other political subdivision in which the ARTIC Site is located, and of any other political subdivision, agency or instrumentality exercising jurisdiction over City, Manager, or the ARTIC Site.
“Extension Term” and “Extension Terms” are defined in Section 2.4. “Facility” is defined in Recital A.
“Final Leasing Status Report” is defined in Section 2.5(2)(d). “FTA” means the Federal Transit Authority.
“Governmental Requirements” means any and all applicable laws, ordinances, statutes, codes, rules, regulations, orders and decrees of the United States (including the FTA and Amtrak), the State of California (including CHSR), the County of Orange (including Metrolink and OCTA), the City or any other political subdivision in which the ARTIC Site is located, and of any other political subdivision, agency or instrumentality exercising jurisdiction over City, Manager, or ARTIC, including all applicable federal, state and local occupation, safety and health laws, rules, regulations and standards, applicable federal and state and labor standards, applicable prevailing wage requirements, the City zoning and building standards, building, plumbing, mechanical and electrical codes, as they apply to ARTIC and the ARTIC Site, all other ordinances and requirements of the City and its Municipal Code, and all applicable disabled and handicapped access requirements, including, without limitation, the Americans With Disability Act, 42 U.S.C. 12101, et seq., Government Code 4450, et seq., and the Unruh Civil Rights Act, Civil Code 51, et seq.
“Greyhound” means Greyhound Lines, Inc., which company operates intercity passenger bus services.
“Gross Revenues” means collectively, on a cash basis, for any period, any and all payments, fees and deposits of every nature received by Manager or City (including those from revenue streams not presently contemplated by the Agreement) for use of the Facility or other portions of the ARTIC Site, services at or in respect of rights granted by the Facility or ARTIC Site including Spectacular revenues, rent, advertising revenues, signage revenues, Outdoor Sponsorship and Advertising Revenues (subject to the limitations of Section 9.2(3)), payments from food and beverage concessionaires if other than pursuant to a Lease and, in any case, other than with respect to revenues received as a result of the sale of beer, wine or spirits, parking fees (if any), all funds received from any other source in connection with events held at the Facility, revenues derived from any future mixed use development of the ARTIC Site and earnings on Permitted Investments, but excluding amounts properly held or deposited in a Third Party Account. “Guaranty” is defined in Section 14.21.
5195527.1 Schedule 1 – Page 4
“Hazardous Materials” means any substance, material, or waste which is or becomes regulated by any local governmental authority, the County of Orange, the Regional Water Quality Control Board, the State of California (including the Department of Toxic Substances Control), other state, regional or local governmental authority, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a “hazardous waste,” “extremely hazardous waste,” or “restricted hazardous waste” under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter- Presley-Tanner Hazardous Substance Account Act), (iii) defined as a “hazardous material,” “hazardous substance,” or “hazardous waste” under Section 255501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a “hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) friable asbestos, (vii) polychlorinated biphenyls, (viii) designated as “hazardous substances” pursuant to Section 311 of the Clean Water Act (33 U.S.C. §1317), (ix) defined as a “hazardous waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq. (42 U.S.C. §6903) or (x) defined as “hazardous substances” pursuant to Chapter 103, Subchapter I of the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §9601, et seq. Notwithstanding the foregoing, “Hazardous Materials” shall not include such products in quantities as are customarily used in the construction, maintenance, rehabilitation, management and/or operation of transit facilities and/or commercial/retail centers, associated buildings and grounds, or typically used in commercial retail or transportation activities in a manner typical of other comparable developments, or substances commonly ingested by a significant population living within the County, including without limitation alcohol, aspirin, tobacco and saccharine.
“Initial Term” is defined in Section 2.2.
“Maintenance and Repairs” means maintenance, repair, restoration and replacement of Facility assets (with the exception of items constituting Capital Expenditures), in accordance with usual and customary industry practices consistent with those of other multi-modal transportation facilities of similar age, size and facilities.
“Major Maintenance” means maintenance work, including work required by the Property Agreements, that goes beyond the day-to-day, routine maintenance of the ARTIC SITE. Major Maintenance work, by example, includes but is not limited to repair of or required maintenance to the structure, installed equipment, elevators, escalators, HVAC system, the electrical system, the plumbing system, the roofing material, the flooring material (in the event of actual damage or necessary replacement).
“Management Fee” is defined in Section 12.1.
“Manager” means ATCM, LLC, a California limited liability company. “Maximum Annual Operating Loan Amount” is defined in Section 9.3(1)(a). 5195527.1 Schedule 1 – Page 5
“Metrolink” means the operator of passenger trains that stop at ARTIC. Metrolink is operated by OCTA, on behalf of SCRRA.
“Net Revenue” means, for any period, the positive number, if any, determined by computing Gross Revenues for each period minus Operating Expenses for such period. “New Manager” is defined in Section 2.8.
“OCTA” means the Orange County Transportation Authority. “Operating Account” is defined in Section 9.2(a).
“Operating Expenses” means collectively, on a cash basis, for any period, all Capital Expenditures related to the ARTIC Site (not to exceed $150,000 during each Operating Years commencing on and after July 1, 2019), direct expenses of conducting events for third parties at the Facility, equipment leases, expenses of licensing, operating, maintaining, repairing and replacing portions of the Facility and otherwise incurred in and necessary to the provision of the Services, including (but not limited to) utilities, costs of insurance, wages of employees of the Facility and related payroll expense and all costs of entering into service and other contracts (including with an Affiliate of the Manager as otherwise permitted by this Agreement), Management Fees, costs of leasing portions of the Facility including brokerage commissions paid to Facility broker representatives and tenant broker representatives and to Advertising, Sponsorship and Rights Providers, costs of material and supplies, advertising and promotional cost and other direct expenses, costs of third party claims relating to the use and operation of the Facility and not covered by insurance; without duplication, payments made during such period, or deposits made during such period to the Reserve Account as reasonable Reserves, for Maintenance and Repairs, all charges assessments, fees and taxes which may now or at any future time be imposed by any governmental body having jurisdiction on the uses and operation of the Facility (including specifically possessory interest taxes with respect to Manager’s possession of any portion of the ARTIC Site under this Agreement, but excluding possessory interest taxes assessed to any tenant of the ARTIC Site); legal and other professional fees incurred in the ordinary course of operation of the Facility but specifically excluding (i) legal fees and other expenses of either party in connection to the negotiation, documentation, interpretation or enforcement of this Agreement; (ii) taxes assessed against Manager or an Affiliate of Manager other than as specifically described in this Agreement; (iii) interest and principal payments on Operating Loans, the Spectacular Loan and the City Contribution; (iv) Capital Expenditures approved by the City (in excess of $150,000 in any Operating Year commencing on and after July 1, 2019), the cost of which shall be borne by City; (v) amounts expended from a reserve for Maintenance and Repairs; and (vi) amounts paid from the Third Party Account.
“Operating Loan” and “Operating Loans” means one or more loans by Manager or an Affiliate of Manager required to be made pursuant to this Agreement, on terms and conditions reasonably acceptable to the Manager and City and with an interest rate not to exceed the “prime rate” as shown from time to time in the Wall Street Journal, plus one percent (1%), the proceeds of which are used to pay Operating Expenses.
5195527.1 Schedule 1 – Page 6
“Operating Loss” means, for any period, the positive number, if any, determined by computing Operating Expenses for each period minus Gross Revenues for such period. “Operating Year” means, initially, the period from the Commencement Date to June 30. 2019, and thereafter the period from July 1 of each calendar year to June 30 of the following calendar year, except that the final Operating Year shall terminate on the Termination Date. “Outdoor Sponsorship and Advertising Revenues” is defined in Section 4.1(1)(c). “Outdoor Sponsorship and Advertising Revenues Account” is defined in Section
9.2 (3).
“Permitted Investments ” means (i) direct obligations of the United States of America and agencies guaranteed by the United States government having a final maturity of one year or less from date of purchase thereof; (ii) certificates of deposit (including those offered in conjunction with the Certificate of Deposit Account Registry Services (CDARS®)) which are fully insured by the Federal Deposit Insurance Corporation and having a final maturity of one year or less from the date of purchase thereof; (iii) certificates of deposit issued by, or bankers’ acceptances of, or time deposits with, any bank, trust company or national banking association incorporated or doing business under the laws of the United States of America or one of the states thereof having combined capital and surplus and retained earnings as of its last report of condition of at least $500,000,000 and having a short-term deposit debt rating of “A1” by S&P or “P1” by Moody’s (or, if neither such organization shall rate such short-term deposits at any time, a rating equal to the highest ratings assigned by any nationally recognized rating organization in the United States of America) and having a final maturity of one year or less from date of purchase thereof; (iv) commercial paper of any holding company of a bank, trust company or national banking association described in clause (iii) and commercial paper of any corporation or finance company incorporated or doing business under the laws of the United States of America or any state thereof having a rating assigned to such commercial paper of “A1” by S&P or “P1” by Moody’s (or, if neither such organization shall rate such commercial paper at any time, a rating equal to the highest ratings assigned by any nationally recognized rating organization in the United States of America) and having a final maturity of 270 days or less from the date of purchase thereof; (v) demand deposit accounts that are fully insured by the Federal Deposit Insurance Corporation, provided that except for investments described in clause (i) and (ii) above, no more than the greater of $10,000,000 or 50% of amounts invested under this Agreement (excluding earned interest) may be invested as “Permitted Investments” in any one corporation, bank holding company, bank, trust company or national banking association at any given time, (vi) money market funds rated in one of the two highest rating categories by Moody’s or S&P; and (vii) bank money market accounts or mutual funds that invest exclusively in any one or more of the foregoing. “Person” means any individual, partnership, limited partnership, limited liability company, joint venture, syndicate, sole proprietorship, company, corporation or body corporate with or without share capital, unincorporated association, trust, trustee, executor, administrator or 5195527.1 Schedule 1 – Page 7
other legal personal representative, regulatory body or agency, government or governmental agency.
“Prevailing Wage Laws” is defined in Section 14.4.
“Prior Agreement” is defined in Recital A.
“Property” is defined in the introductory paragraph of this Agreement. “Property Agreements” is defined in Section 5.3(3).
“Regulations” is defined in Section 14.11.
“Reserve” means amounts set aside in the Reserve Account as reserves for the payment of Maintenance and Repairs (with the exception of any expenditure for Maintenance and Repairs constituting Capital Expenditures in excess of $150,000 in any Operating Year which shall be borne by City) or Operating Expenses.
“Reserve Account” is defined in Section 9.2 (e).
“SCRRA” means the Southern California Regional Rail Authority. “Service” and “Services” are defined in Section 3.1.
“Spectacular” means one or more outdoor advertising signs and structures located at the Property as permitted by the Transit Special Sign District Coordinated Sign Program (as defined in the Development Agreement).
“Spectacular Loan” means a loan made by Manager, or an Affiliate of Manager, to fund the construction of a Spectacular and on terms and conditions reasonably acceptable to the Manager and City.
“Third Party Account” is defined in Section 9.2(2)
“Term” is defined in Section 2.2.
“Termination Date” is defined in Section 2.2.
5195527.1 Schedule 2 – Page 1
SCHEDULE 2
PROPERTY AGREEMENTS
The following is a list of currently identified real estate encumbrances, agreements and contracts relating to the use and/or at the ARTIC Site operations. This list is intended to serve for illustrative purposes only, and is not an exhaustive list, provided that Manager shall not have any obligation with respect to any agreement which is not provided to Manager in true, correct and complete form. Additional agreements may be negotiated between the City and various transit service providers from time to time.
1. Lease between the Atchison, Topeka and Santa Fe Railway Company and National Railroad Passenger Corporation dated as of February 18, 1982.
2. Notice of Exercise of Option to Renew Lease to Atchison, Topeka and Santa Fe Railway Company from City dated as of February 18, 1982.
3. Agreement for the Construction, Operation and Maintenance of a Rail Passenger Station and Parking Area at Anaheim, California between City and the National Railroad Passenger Corporation dated as of October 26, 1982.
4. Assignment of Lease by National Railroad Passenger Corporation to City dated as of November 1, 1982.
5. Amended and Restated Lease Agreement by and between City and the California Angels, LP dated as of May 15, 1996, as amended.
6. Parking License Agreement re Parking Operations/Sun Theater (formerly Tinseltown Studios) between City and Ogden Entertainment dated as of September 1, 1997.
7. Letter Agreement between City and the Anaheim Angels re Edison International Field of Anaheim - Confirmation of Parking Plan and Fireworks Landing Area dated August 1, 1998.
8. Declaration of Restrictions by and among City, Anaheim Angels L.P. and Ogden Entertainment, Inc. dated as of September 17, 1999.
9. Letter Agreement re Amendment to Section 3.12(d) of Parking Agreement (Sportstown Office Development) between City and HPMC Stadium Gateway Associates, LLC, as successor in interest to Stadium Gateway Associates, L.L.C dated April 7, 2000.
10. Parking Agreement between City and Stadium Gateway Associates L.L.C. dated for purposes of identification only April 7, 2000.
11. Declaration of Covenants, Conditions and Restrictions and Grant of Reciprocal Easements for Sportstown Anaheim recorded April 10, 2000.
5195527.1 Schedule 2 – Page 2
12. Agreement between City and Anaheim Arena Management, LLC re Honda Center Parking dated December 16, 2003.
13. Amended and Restated Facility Management Agreement by and between City and Anaheim Arena Management LLC dated for reference purposes as of _______, 2022 as amended and restated.
14. License Agreement (Restaurant Customer Parking) between City and Lewis R. Schmid and Judith E. Schmid, as Trustees of the Schmid Family Trust, established Under the Declaration of Trust dated September 5, 1997, dated November 20, 2012.
15. License Agreement (Restaurant Employee Parking) between City and Lewis R. Schmid and Judith E. Schmid, as Trustees of the Schmid Family Trust, established Under the Declaration of Trust dated September 5, 1997, dated November 20, 2012.
16. Purchase and Sale Agreement among City, Lewis R. Schmid and Judith E. Schmid, as trustees of the Schmid Family Trust, established Under the Declaration of Trust dated September 5, 1997, and JT Restaurants LP, dated November 20, 2012.
17. Sixth Amended and Restated Solid Waste Franchise between City and Republic Waste Services of Southern California, LLC, dba Anaheim Disposal for Solid Waste Management Services dated February 7, 2012.
18. Agreement for the Purchase and Sale of Real Property and Grant Deed from OCTA to City with respect to a portion of the Property dated July 5, 2012.
19. Construction and Maintenance Agreement for Anaheim Regional Transportation Intermodal Center (ARTIC) between City and Southern California Regional Rail Authority (SCRRA) dated as of September 18, 2012.
20. License Agreement between City and Electric Transportation Engineering Corporation OBA ECOtality North American, a California Corporation, dated September 25, 2012 and Amended on January 7, 2013.
21. California High-Speed Rail Memorandum of Understanding approved by CHSR on February 7, 2013.
22. Lease Agreement between City and Orange County Water District relating to well MBI-2 dated June 18, 2013.
23. Agreement between City and National Railroad Passenger Corporation Regarding the Anaheim Regional Transportation Intermodal Center Signage Procurement dated June 10, 2014.
24. Agreement between City and National Railroad Passenger Corporation Regarding the Anaheim Regional Transportation Intermodal Center Passenger Information Display System Hardware and Software Installation dated August 12, 2014. 5195527.1 Schedule 2 – Page 3
25. Lease Agreement between City and National Railroad Passenger Corporation dated December 16, 2014.
26. Agreement Between City and National Railroad Passenger Corporation Regarding the Anaheim Regional Transportation Intermodal Center Passenger Information Display System Operations and Maintenance dated December 8, 2014.
27. License Agreement between OCTA and City dated December 23, 2014 (use of rail crossings).
28. License Agreement (Event Parking) between City and JT Restaurants LP DBA JT Schmid’s Restaurant & Brewery dated July 1, 2015.
29. Right of Entry/Hold Harmless Agreement between City and Anaheim Transportation Network DBA Anaheim Resort Transportation (ATN) dated July 14, 2014, as amended by First Amendment dated November 2, 2017.
30. Lease Agreement between City and Anaheim Transportation Network DBA Anaheim Resort Transportation (ATN) dated October 28, 2014, as amended by First Amendment dated March 18, 2016 and Second Amendment dated July 19, 2017.
31. Right of Entry/Hold Harmless Agreement between City and Greyhound Lines, Inc. dated December 10, 2014.
32. Bus Bay License Agreement between City and Flixbus, Inc. dated May 2, 2018. 5195527 Schedule 3 – Page 1
SCHEDULE 3
DELEGATED AGREEMENTS
1. Lease Agreement between City and All Triple Lee Corporation d/b/a Auntie Anne's and Pinkberry dated April 1, 2015, as amended.
2. Warranty Agreement related to construction of ARTIC Ethylene Tetraflouroethylene (ETFE) Roof System with Vector Foiltec, as assignee from Clark Construction Group, LP, dated October 11, 2013.
3. Lease agree with Katella Avenue Partners, LLC dated February 15, 2020, as amended. 5195527.1 Schedule 4 – Page 1
SCHEDULE 4
ADVISORY LETTER/PROCUREMENT
5195527.1 Schedule 4 – Page 2
5195527.1 Schedule 4 – Page 3
5195527.1 Schedule 4 – Page 4
5195527.1 Schedule 4 – Page 5
5195527.1 Schedule 4 – Page 6
5195527.1 Schedule 4 – Page 7
5195527.1