MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF FRESNO AND UP HOLDINGS, LLC FOR THE
CONSTRUCTIONOF SUSTAINABLETRANSPORTATIONINFRASTRUCTUREAND TRANSIT RELATED AMENITIES FOR 3787 N BLACKSTONE AVENUE„ FRESNO, CA 93726
ThisMemorandumofUnderstanding (Agreement) isenteredintothis3nay of March, 2023, byandbetweentheCityOFFRESNO, a municipalcorporation, (City), and Up Holdings, LLC, ( Developer).
RECITALS
WHEREAS, the State of California, the Strategic Growth Council ( SGC) and the Departmentof HousingandCommunityDevelopment (HCD) issueda Noticeof Funding AvailabilitydatedJanuary30, 2023 (theAHSCNOFA), undertheAffordableHousingand SustainableCommunities (AHSC) Programestablishedunder Division44, Part 1 of the Public Resources Code, commencing with Section 75200; and WHEREAS, Developeris applying for AHSC Funds in responseto the AHSC NOFA to provide funding for ( A) construction of the 3787 N Blackstone Avenue affordablehousingprojectin Fresno, California (the HousingProject); (B) the construction of certain housingrelatedinfrastructure (the HRI Improvements); (C) the construction of certain sustainable transportation infrastructure ( the STI Improvements); ( D) the construction of certain transit related amenities (the TRA Improvements); and ( E) certain costs relatedto ongoing programming (the AHSC Programs). These improvements are described in more detail in the Final Application to be submitted by April 4, 2023 collectively, the AHSC Application); and
WHEREAS, the AHSC Application seeks an award to the Developer in an aggregate amount of not to exceed $ 50, 000, 000 in AHSC Funds, as set forth herein and in Exhibit A, consisting of: ( A) up to $ 34, 250, 000of a combination of AHSC loan Funds forapermanentloan (AHSCLoan) whichwillbedisbursedtoa limitedpartnershiptobe formed later ( the Partnership), for construction of the Housing Project, and ( B) AHSC grantfundswhichshallbeusedforthepurposeofreimbursingthecostoftheHRI Improvements; ( C) up to $ 15,000,000 of the AHSC grant funds for the purpose of reimbursingthecostoftheSTIandTRAImprovements; and (D) upto $750,000ofAHSC grantfundsforreimbursingthecostsoftheAHSCPrograms. TheAHSCgrantsshallbe referredto collectivelyastheAHSCGrants. TheAHSCLoanandtheAHSCGrantsare collectivelyreferredto hereinas the AHSC Financing; and WHEREAS, the Cityand Developerare requiredto enterintoan Agreementin ordertocomplywiththespecificAHSCProgramThresholdRequirementstatedthe2023 AHSC Program Guidelines dated December 15, 2022, and subsequent technical amendments which allows applicants to demonstrate the requisite transportation experiencebyusingthepastexperienceofworkcompletedofa non -applicantlocalityso longastheapplicantprovidesanexecutedagreementwiththenon -applicantlocalityfor the completionof the relatedwork in the AHSC Applicationfor which funding is sought. 600310901
ThepurposeofthisAgreementistocomplywiththeTransportationCityPriorExperience Threshold Requirement; and
WHEREAS, theCityis a non -applicant, butwillperformSTIImprovementsand TRA Improvements included in the AHSC Application ( collectively, the Transit Obligations) as set forth in this Agreement and in Exhibit A; and WHEREAS, theCitycandemonstratepriorexperienceandprovideevidenceofat leasttwopriorprojectsthataresimilarinscopeandsizewhichhavebeencompleted duringthetenyearsprecedingApril4, 2023assetforthinthisAgreementandin Exhibit B; and
NOW, THEREFORE, in considerationof the above recitals, which recitals are contractualin nature, themutualcovenantshereincontainedandsuchotherandfurther considerationas is herebyacknowledged, the partiesagree as follows:
1. PARTICIPATINGAGENCIESAND DESIGNATEDCONTACTPERSONS
City Representative: Philip Skei
Assistant Director of Planning & Development
Department
2600 Fresno Street
Fresno, CA 93721
559) 621- 8012
Developer Representative: Jessica H. Berzac
Principal
7370 N. Lincoln Ave, Suite A
Lincolnwood, IL 60712
773) 736- 1244
2. ROLES, CONTRIBUTIONS, AND RESPONSIBILITIES
A. UponfullfundingoftheAHSCGrants, theCity, asa non -applicant, will:
i) Perform up to $ 15,000,000 worth of STI Improvements and bus stop upgrades and bus fleet enhancements ( TRA Improvements) included in the AHSC Application (collectively, theTransitObligations) assetforthin ExhibitA. ii) Demonstratepriorexperienceandprovideevidenceofatleasttwoprojects that are similar in scope and size which have been completed during the ten years proceedingApril4, 2023, assetforthinthisExhibitB.
iii) Assumefinancialresponsibilityfor developing, constructing, andcompleting the Transit Obligationsin accordancewith theterms of the AHSC documents. 2 600310901
iv) ProvideDeveloperwith copies of all requisitionsfor work relatedto their respectiveportionsoftheproject, thenoticeofcompletion, andotherdocumentsrelated to their respectiveworkthat another partymayreasonablyrequest. v) Abideby all requisiteHCDgrantadministrationregulationsthat specify indemnity, payment, performanceschedules, and progressreports.
B. Developer will:
i) Assumefinancialresponsibilityfor constructinganddevelopingthe Housing Project, the HRI Improvements and the AHSC Programs ( together the Developer Obligations), and for all costs and expenses related thereto. ii) Enter into standard agreements, disbursement agreements, and regulatory agreementswith HCDwhere Developerwill be liablefor the full and timely performance bythepartiestocompletetheobligationssetforththerein, includingcompletionofthe HousingProject, HRI, STIandTRAImprovements, andfundingoftheAHSCPrograms, as described in the AHSC Application. The AHSC Application and all standard agreementsrequiredby HCDin connectionwith AHSCFinancingshallbe collectively referred to as " AHSC Documents."
iii) Assumefinancialresponsibilityforpayingallcostsrequiredtocompletethe Housing Projectand all associatedimprovementsincluding, but not limited to HRI Improvements, STIImprovementsandTRAImprovements, irrespectiveofwhethersuch costs exceed the AHSC Loan and AHSC Grant.
iv) ProvideCitywithcopiesofallrequisitionsforworkrelatedtotheirrespective portionsoftheproject, thenoticeofcompletion, andotherdocumentsrelatedtotheir respectiveworkthat anotherparty may reasonablyrequest.
v) Abideby all requisiteHCDgrantadministrationregulationsthat specify indemnity, payment, performanceschedules, and progressreports.
3. EFFECTIVENESS, DURATION AND TERMINATION
This Agreementshallbe effective uponits completeexecutionbythe parties' authorized agentsand shallterminateuponthe earlierof (i) non -awardof AHSCfunds; (ii) Non - appropriation of City funds; ( iii) completion of all obligations under the AHSC documents; or ( iv) mutual written agreement of the parties hereto. Either party may terminate this Agreementwith causeupon written noticeto the other party, includingthe Construction Lender as definedin Section 12, followingthe other party's failure to reasonablycure an eventof non-performancehereunderfollowingthirty (30) dayswrittennoticethereof.
Terminationshallbeeffective (the EffectiveDateofTermination) asof thedatespecified in said noticeof termination. Uponsuchtermination, all rightsand obligationsof each partyunderthisAgreementshallceaseasoftheEffectiveDateofTermination, except for those specificobligationsthat shall surviveterminationas set forth herein. 3 600310901
4. RECORDKEEPING AND PERFORMANCE DATA
Eachpartyshallkeepandmaintainproperrecordsanddocumentationsufficientto substantiateits contributionshereunder and shall make such availablefor review and auditduringnormaloperatinghoursuponthereasonablewrittenrequestoftheotherparty fora periodofthreeyearsfollowingexpirationorearlierterminationofthisAgreement.
5. COMPLIANCE WITH GOVERNING LAW
Eachpartyshallcomplywithallfederal, stateandlocallaws, rulesandregulationsinits pursuithereof. NopartyinitsperformanceofthisAgreementshallemploydiscriminatory practicesonthebasisofrace, religiouscreed, color, nationalorigin, ancestry, physical disability, mentaldisability, medicalcondition, maritalstatus, sex, age, sexualorientation, andethnicity, statusasa disabledveteranorveteranoftheVietnamera.
6. CAPACITY OF CITY AND DEVELOPER
Eachpartyisactinginanindependentcontractorcapacity. NothinginthisAgreementand nothinginthecourseofdealingsbetweenthepartieshereundershallbedeemedto createanyfiduciaryrelationship, trust, partnership, jointventure, agencyoremployment relationship, jointly and severally.
In addition, and without limitation, each party shall be solely responsiblefor all matters relating to payment of its employees, including, but not limited to, compliance with applicablesocialsecuritywithholding, workers' compensationinsurance, benefitsandall otherregulationsgoverningsuchmatters. Personnelsuppliedby Citywillnotfor any purposebeconsideredemployeesoragentsoftheDeveloper. TheCityassumesfull responsibility for the actions of such personnel while they are performing services pursuanttothisAgreement, andshallbesolelyresponsiblefortheirsupervision, daily directionandcontrol, paymentofsalary (includingwithholdingofincometaxesandsocial security), disabilitybenefitsandthelike, asapplicable. Conversely, personnelsupplied byDeveloperwillnotforanypurposebeconsideredemployeesoragentsoftheCity.
Developer assumesfull responsibilityfor the actionsof such personnelwhile they are performingservicespursuanttothisAgreement, andshallbesolelyresponsiblefortheir supervision, daily direction and control, payment of salary ( including withholding of income taxes and social security), disability benefits and the like, as applicable.
TheCityandDeveloperagreeandacknowledgethattheirrelationshipisstrictlyandsolely that of an independentcontractorto each other. The City's employeesand/or agentsare notentitledtoanyemployeebenefitsorinsurance, includingwithoutlimitationanyhealth care, worker's compensation, unemploymentor disability benefits, to be provided by Developer. Developer agrees and acknowledgesthat Developer's employeesand/or agentsarenotentitledto anyemployeebenefitsorinsurance, includingwithoutlimitation any health care, worker' s compensation, unemployment or disability benefits, to be provided by the City.
The partiesfurtheragreeandacknowledgethateachpartyis solelyresponsiblefor determiningthemethodandmeansbywhichitwillfulfillitsobligationshereunder. Each 4 600310901
shallbesolelyresponsibleforpaymentofallsales, use, orothertaxesassessedagainst or associatedwiththe performanceof eachparty's respectiveobligationsor on the exercise of theirrightsunder this Agreement, includingwithout limitationincome, payroll or employment - related taxes and payments.
Neitherpartyshallengageanypersonorentityto servein anycapacity, or incurany expenseor obligationon behalfof the other, withoutthe priorwrittenconsentof both parties.
7. INDEMNIFICATION
To the furthestextentallowedby law, Developershall indemnify, holdharmlessand defendCityandeachofitsofficers, officials, employees, agentsandvolunteersfromany andall loss, liability, fines, penalties, forfeitures, costsanddamages (whetherincontract, tortor strictliability, includingbutnotlimitedto personalinjury, deathat anytimeand property damage) incurredby City, Developeror any other person, andfromany and all claims, demands and actions in law or equity ( including attorney's fees, litigation expenses, andcoststo enforce this agreement), arisingor allegedto havearisendirectly or indirectly out of performance of this Contract. Developer' s obligations under the precedingsentenceshallapplyregardlessofwhetherCityoranyofitsofficers, officials, employees, agentsorvolunteersarepassivelynegligent, butshallnotapplyto anyloss, liability, fines, penalties, forfeitures, costsor damagescausedby the activeor sole negligence, or the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers.
If Developershould subcontractall or any portion of the work to be performed under this Contract, Developer shall require each subcontractor to indemnify, hold harmlessand defendCity and each of its officers, officials, employees, agentsand volunteers in accordance with the terms of the preceding paragraph.
This section shall survive termination or expiration of this Agreement.
8. INSURANCE
a) Throughout the life of this Agreement, Developer shall pay for and maintain in full forceandeffectall insuranceas requiredhereinwith an insurancecompany(ies) either (i) admittedbytheCaliforniaInsuranceCommissionertodobusinessintheState of Californiaandratedno less than "A-VII" inthe Best's InsuranceRatingGuide, or (ii) as maybeauthorizedinwritingbyCity's RiskManagerorhis/herdesigneeatanytimeand in his/ her sole discretion. The requiredpoliciesof insuranceas statedhereinshall maintain limits of liability of not less than those amounts stated therein. However, the insurance limitsavailableto City, its officers, officials, employees, agentsandvolunteers as additionalinsureds, shallbethegreateroftheminimumlimitsspecifiedthereinorthe full limit of any insuranceproceedsto the namedinsured. b) Ifat anytimeduringthelifeoftheAgreementor anyextension, Developer oranyofitssubcontractorsfailtomaintainanyrequiredinsuranceinfullforceandeffect, all servicesandworkunderthis Agreementshallbe discontinuedimmediately, and all 600310901
paymentsdueorthatbecomeduetoDevelopershallbewithhelduntilnoticeisreceived byCitythattherequiredinsurancehasbeenrestoredtofullforceandeffectandthatthe premiumsthereforehavebeenpaidfor a periodsatisfactoryto City. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Agreement. No action taken by City pursuantto this section shall in any way relieve Developer of its responsibilities under this Agreement. The phrase "fail to maintain any required insurance" shall include, without limitation, notificationreceivedby City that an insurerhascommencedproceedings, or hashadproceedingscommencedagainstit, indicating that the insurer is insolvent.
c) The fact that insurance is obtainedby Developershall not be deemedto releaseor diminishtheliabilityof Developer, including, withoutlimitation, liabilityunder theindemnityprovisionsofthisAgreement. Thedutyto indemnifyCityshallapplytoall claims and liability regardless of whether any insurance policies are applicable.
The
policylimitsdonotactasa limitationupontheamountofindemnificationtobeprovided by Developer. Approvalor purchaseof anyinsurancecontractsor policiesshallin no wayrelievefromliabilitynorlimittheliabilityofDeveloper, vendors, suppliers, invitees, contractors, sub- contractors, consultants, or anyoneemployed directlyor indirectly by any of them.
Coverage shall be at least as broad as:
The most current version of InsuranceServices Office (ISO) Commercial General Liability Coverage Form CG 00 01, providing liability coverage arisingoutofyourbusinessoperations. TheCommercialGeneralLiability policyshallbewrittenonanoccurrenceformandshallprovidecoveragefor bodily injury," " propertydamage" and "personalandadvertisinginjury" with coverageforpremisesandoperations (includingtheuseofownedandnon - owned equipment), productsandcompletedoperations, andcontractual liability ( including, without limitation, indemnity obligations under the Agreement) with limits of liability not less than those set forth under Minimum Limits of Insurance."
2. The mostcurrent version of ISO *CommercialAuto CoverageFormCA 00 01, providingliabilitycoveragearisingout of the ownership, maintenanceor use of automobiles in the course of your business operations. The AutomobilePolicyshallbewrittenonanoccurrenceformandshallprovide coveragefor all owned, hired, andnon -ownedautomobilesorotherlicensed vehicles ( Code 1- Any Auto).
3. Workers' Compensationinsuranceas required by the State of California and Employer' s Liability Insurance.
MINIMUM LIMITS OF INSURANCE
Developershallprocureandmaintainforthedurationofthecontract, andforfive 5) yearsthereafter, insurancewithlimitsofliabilitynotlessthanthosesetforthbelow. 0 60031090. 1
However, insurancelimits availableto City, its officers, officials, employees, agents and volunteers as additionalinsureds, shall be the greater of the minimumlimits specified hereinorthefulllimitofanyinsuranceproceedsavailableto thenamedinsured:
i) COMMERCIAL GENERAL LIABILITY insurance which shall be at least as broad as the most current version of InsuranceServicesOffice (ISO) Commercial General Liability Coverage Form CG 00 01 and include insurance for " bodily injury," " property damage" and " personal and advertisinginjury" withcoverageforpremisesandoperations (includingthe use of owned and non -owned equipment), products and completed operations, and contractual liability (including, without limitation, indemnity obligations under the Agreement) with limits of liability of not less than the following:
2,000,000 per occurrencefor bodily injury and propertydamage 2,000,000 per occurrencefor personaland advertisinginjury 4,000,000 aggregate for products and completed operations 4,000,000 general aggregateapplyingseparatelyto work
performedunderthe Agreement
ii) COMMERCIAL AUTOMOBILE LIABILITY insurance which shall be at as board as the most current version of Insurance Service Office ( ISO) Business Auto Coverage Form CA 00 01, and include coverage for all owned, hired, andnon -ownedautomobilesor other licensedvehicles (Code 1-Any Auto) with limits of liabilityof not less than $1,000, 000 per accident for bodily injury and property damage.
iii) WORKERS' COMPENSATION insurance as required under the California Labor Code.
iv) EMPLOYEE LIABILITY insurance with limits of liability of not less than 1,000, 000 each accident, $ 1,000,000 disease policy limit and $1, 000, 000 diseased each employee.
v) BUILDERS RISK ( Course of Construction) insurance, obtained by the Developer or subcontractor in an amount equal to the completion value of the Project with no coinsurance penalty provisions.
vi) CONTRACTOR POLLUTION LIABILITY with coverage for bodily injury, property damageor pollutionclean-up coststhatcouldresultfromof pollutioncondition, both suddenandgradual. Includingadischargeofpollutantsbroughttotheworksite, arelease of pre-existingpollutantsatthesite, orotherpollutionconditionswithlimitsofliabilityof not less than the following:
1,000, 000 per occurrence
2,000,000 general aggregateper annual policyperiod
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Intheeventtheworkinvolvesanylead -based, moldor asbestosenvironmentalhazard, either the AutomobileLiability insurancepolicyor the PollutionLiabilityinsurancepolicy shall be endorsed to include Transportation Pollution Liability insurance covering materialsto betransportedbytheDEVELOPERpursuantto theSLFRFAgreement.
In the eventthe work involves any lead -based environmentalhazard (e.g., lead- based paint), theDEVELOPER'sPollutionLiabilityinsurancepolicyshallbeendorsedtoinclude coverage for lead based environmental hazards. In the event the DEVELOPER involves any asbestos environmentalhazard (e.g., asbestos remediation), the DEVELOPER' s PollutionLiabilityinsurancepolicyshallbe endorsedto includecoveragefor asbestos environmental hazards. In the event the SLFRF Agreement involves any mold environmental hazard ( e. g., mold remediation), the Pollution Liability insurance policy shall be endorsedto includecoveragefor moldenvironmentalhazardsand "microbial matter includingmold" within the definitionof "Pollution" underthe policy.
In the eventthe Developerpurchasesan Umbrellaor Excessinsurancepolicy(ies) to meet the minimumlimits of insurance set forth above, this insurance policy(ies) shall follow form" and afford no less coverage than the primary insurance policy(ies). In addition, suchUmbrellaor Excessinsurancepolicy(ies) shallalsoapplyonaprimaryand non-contributorybasisfor the benefitof the City, its officers, officials, employees, agents and volunteers.
The Developershall be responsible for payment of any deductibles contained in any insurancepoliciesrequiredhereunderandtheDevelopershallalsoberesponsiblefor payment of any self -insured retentions. Any deductiblesor self -insuredretentionsmust be declared to, and approved by, the City's Risk Manageror his/her designee. At the optionof theCity's RiskManageror his/herdesignee, either (i) theinsurershallreduce or eliminatesuchdeductiblesor self -insuredretentionsas respectsto the City, its officers, officials, employees, agentsand volunteers; or (ii) the Developershallprovidea financial guarantee, satisfactoryto the City's RiskManageror his/herdesignee, guaranteeing paymentoflossesandrelatedinvestigations, claimadministrationanddefenseexpenses.
AtnotimeshalltheCityberesponsibleforthepaymentofanydeductiblesorself -insured retentions.
All policiesof insurancerequiredhereundershall be endorsedto providethat the coverage shall not be cancelled, non -renewed, reducedin coverageor in limits except afterthirty (30) calendardaywrittennoticehasbeengiventotheCity. Uponissuanceby the insurer, broker, or agentof a noticeof cancellation, non -renewal, or reductionin coverage or in limits, the Developer shall furnish the City with a new certificate and applicable endorsements for such policy( ies). In the event any policy is due to expire duringtheworktobeperformedfortheCity, theDevelopershallprovideanewcertificate, andapplicableendorsements, evidencingrenewalofsuchpolicynotlessthanfifteen (15) calendar days priorto the expirationdateof the expiringpolicy.
TheGeneralLiability, PollutionandAutomobileLiabilityinsurancepoliciesshallbewritten on an occurrence form. The General Liability, AutomobileLiabilityand PollutionLiability r
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insurancepoliciesshallnametheCity, itsofficers, officials, agents, employeesand volunteers as an additional insured. Allsuchpoliciesof insuranceshallbeendorsedso the Developer's insuranceshallbe primaryandnocontributionshallbe requiredof the City. Thecoverageshallcontainnospeciallimitationsonthescopeofprotectionafforded to the City, its officers, officials, employees, agents and volunteers. If the Developer maintainshigherlimitsofliabilitythantheminimumsshownabove. theCityrequiresand shall be entitledto coveragefor the higherlimitsof liabilitymaintainedby the Developer.
The Generaland PollutionLiabilityinsurancepolicyshall also namethe City, its officers, officials, agents, employeesandvolunteersas additionalinsuredsfor all ongoingand completedoperations. TheBuildersRisk (Courseof Construction) insurancepolicyshall beendorsedto nametheCityaslosspayee. Allinsurancepoliciesrequiredincludingthe Workers' Compensationinsurancepolicyshallcontaina waiverof subrogationasto the City, its officers, officials, agents, employeesandvolunteers.
The Developershall furnish the City with all certificate(s) and applicableendorsements effectingcoveragerequiredhereunder. All certificatesandapplicableendorsementsare tobereceivedandapprovedbytheCity's RiskManagerorhis/herdesigneebeforework commences. Uponrequestof the City, theDevelopershallimmediatelyfurnishtheCity withacompletecopyofanyinsurancepolicyrequiredunderthisAgreement, includingall endorsements, withsaidcopycertifiedbytheunderwritertobeatrueandcorrectcopyof the original policy. This requirement shall survive expiration or termination of this Agreement.
If at anytimeduringthe lifeof theAgreementor anyextension, the Developer, its contractor, oranyofitssubcontractorsfailtomaintainanyrequiredinsuranceinfullforce and effect, all work underthis Agreementshallbe discontinuedimmediately, and all paymentsdueorthatbecomeduetotheDevelopershallbewithhelduntilnoticeis receivedbytheCitythattherequiredinsurancehasbeenrestoredtofullforceandeffect andthatthepremiumsthereforehavebeenpaidforaperiodsatisfactorytotheCity. Any failureto maintainthe requiredinsuranceshall besufficientcauseforthe Cityto terminate the Agreement. No actiontakenby Cityhereundershallin any way relievethe Developer of its responsibilities under the Agreement. The phrase "fail to maintainany required insurance" shall include, withoutlimitation, notificationreceivedby the Citythatan insurer hascommencedproceedings, orhashadproceedingscommencedagainstit, indicating that the insurer is insolvent.
The fact that insuranceis obtainedby the Developershall not be deemedto release or diminishtheliabilityof the Developer, including, withoutlimitation, liabilityunderthe indemnityprovisionsoftheAgreement. ThedutytoindemnifytheCityshallapplytoall claims and liability regardlessof whether any insurance policies are applicable. The policylimitsdonotactasalimitationupontheamountofindemnificationtobeprovided bytheDeveloper. Approvalorpurchaseofanyinsurancecontractsorpoliciesshallinno way relievefrom liabilitynor limitthe liabilityof the Developer, its principals, officers, agents, employees, personsunderthe supervisionof the Developer, vendors, suppliers, invitees, consultants, sub -consultants, subcontractors, or anyone employeddirectly or indirectly by any of them.
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Intheeventofa partialortotaldestructionbytheperilsinsuredagainstofanyorallof theworkand/or materialshereinprovidedfor at anytimepriorto thefinalcompletionof the Agreement and the final acceptance by the City of the work or materials to be performedor suppliedthereunder, the Developershallpromptlyreconstruct, repair, replace, or restoreall work or materialsso destroyedor injuredat his/her sole cost and expense. NothinghereinprovidedforshallinanywayexcusetheDeveloperorhis/her insurancecompanyfromthe obligationof furnishingall the requiredmaterialsand completingtheworkinfullcompliancewiththetermsoftheAgreement.
SUBCONTRACTORS - If Developer subcontracts any or all of the services to be performedunderthisAgreement, Developershallrequire, at thediscretionoftheCity RiskManageror designee, subcontractor(s) to enterinto a separateSideAgreementwith the City to providerequiredindemnificationand insuranceprotection. Any required Side Agreement( s) and associated insurance documents for the subcontractor must be reviewedand preapprovedby City Risk Manageror designee. If no Side Agreement is required, CONTRACTORwill be solely responsiblefor ensuringthat its subcontractors maintaininsurancecoverageat levelsno less than those requiredby applicablelaw and is customary in the relevant industry.
The DEVELOPER shall furnish the CITY with all certificate( s) and applicable endorsements effecting coverage required hereunder. All certificates and applicable endorsementsare to be receivedand approvedby the CITY's Risk Manageror his/her designee before work commences. Upon request of the CITY, the DEVELOPER shall immediatelyfurnishtheCITYwithacompletecopyofanyinsurancepolicyrequiredunder thisAgreement, includingallendorsements, withsaidcopycertifiedbytheunderwriterto bea true and correctcopyof the originalpolicy. This requirementshall surviveexpiration or termination of this Agreement.
Property Insurance. The Developer shall maintain in full force and effect, throughout the remaining life of this Agreement, a policy(ies) of property insurance acceptabletotheCity, coveringtheProjectpremises, withlimitsreflectiveofthevalueof the Projectpremisesuponissuanceof the Certificateof Completionor substantial completionof the projectreferencedin this agreement, includingfire and Extended ComprehensiveExposure (ECE) coveragein an amount, form, substance, andqualityas acceptable to the City's Risk Manager. The City shall be added by endorsement as a loss payee thereon.
9. ATTORNEY' S FEES
Ifa partyisrequiredtocommenceanyproceedingorlegalactiontoenforceorinterpret anyterm, covenantorconditionofthisAgreement, theprevailingpartyinsuchproceeding or action shall be entitled to recover from the other party its/their reasonable attorney's fees and legal expenses.
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10. NOTICES
AnynoticerequiredorintendedtobegiventoaparryunderthetermsofthisAgreement shallbeinwritingandshallbedeemedtobedulydeliveredtheearlierof (a) actualreceipt bypersonaldeliverytotherepresentative (asdefinedherein), as the case may be, or in lieuof suchpersonalservice, bywayof FederalExpress, DHL, or othersimilarcourier addressedto such partyatthe appropriateaddresssetforth herein, (b) the date of receipt byfacsimileto theCityRepresentativeortheDeveloperRepresentative, or (c) three businessdaysafterthedateofmailing (postagepre- paidreturnreceiptrequested). Either partymaychangeitsaddressforthepurposeofthisParagraphbygivingwrittennotice of such change to the other.
11. BINDING
OncethisAgreementissignedbyalltheparties, it shallbe bindingupon, andshallinure to the benefit of, the parties, and each parry's respective heirs, successors, assigns, transferees, agents, servants, employeesandrepresentatives. Thetermsandconditions of this Agreement, expressor implied, exist onlyfor the benefitof the partiesto this Agreement, theirrespectivesuccessorsandassigns, andtheConstructionLenderasset forthinSection12. Nootherpersonorentitywillbedeemedtobeathird -partybeneficiary of this Agreement.
12. ASSIGNMENT
CityherebyacknowledgesandapprovestheassignmentbyDeveloperandUPDakota LP ( the " Partnership") to the HousingProjec:t's seniorlender (ConstructionLender) of all their respectiveright, title and interestin, to and underthe Agreementas collateral securityforthePartnership'sobligationstoConstructionLenderunder, andinconnection with the Construction Lender' s loan to the Partnership. In the event Construction Lender foreclosesuponthe Collateral, CityherebyagreesthatConstructionLendershallhave all of the Developer's rightsand interestsunderthe Agreement. Construction Lender is herebymadean expressthird -partybeneficiaryofthisSection. There shall be no other assignmentbyanypartyofitsrightsorobligationsunderthisAgreementwithouttheprior writtenapprovalof theotherparty. Anyattemptedassignmentbya party, itssuccessors or assigns, shall be null and void unless approved in writing by the other party.
13. WAIVER
ThewaiverbyanypartyofabreachbytheotherofanyprovisionofthisAgreementshall notconstitutea continuingwaiveror a waiverof anysubsequentbreachof eitherthe same or a different provision of this Agreement.
NoprovisionsofthisAgreementmaybewaivedunlessinwritingandapprovedbyand signedbyallpartiestothisAgreement. Waiverofanyoneprovisionhereinshallnotbe deemed to be a waiver of any other provision herein.
Noactionor omissionbyeitherpartyshallconstitutea breachofthisAgreementunless theinjuredpartyfirstnotifiestheotherpartyofthepurportedbreachinwritingsettingforth 11 600310901
the alleged breach or default and said party does not cure the same within a reasonable periodoftime. Thepaymentofanyfeeorcompensationorperformanceofanyobligation hereunderbyeitherpartyshallnotconstitutea waiverofanybreachbytheotherpartyor ofanyoftherightsandremedieswhicheitherpartymayhaveasaresultofsuchbreach.
NowaiverbyeitherpartyofbreachoftheAgreementshallbeimpliedfromanyfailureby theotherpartyto takeactiononaccountof suchbreachif suchbreachpersistsor is repeated. Waiversby eitherpartyof any covenant, termor conditioncontainedherein shall not be construedas a waiverof any subsequentbreachofthe same covenant, term or condition.
14. GOVERNING LAW AND VENUE
ThisAgreementshallbegovernedby, andconstruedandenforcedin accordancewith, the laws of the State of California. Venue for purposes of the filing of any action regarding the enforcementor interpretationof this Agreementand any rightsand duties hereunder shall be Fresno, California.
15. HEADINGS
Thesectionheadingsinthis Agreementarefor convenienceandreferenceonly andshall not be construed or held in any way to explain, modify or add to the interpretationor meaning of the provisions of this Agreement.
16. SEVERABILITY
TheprovisionsofthisAgreementareseverable. Theinvalidityorunenforceabilityofany one provisionin this Agreementshall not affectthe other provisions.
17. INTERPRETATION
ThepartiesacknowledgethatthisAgreementinitsfinalformistheresultofthecombined effortsof thepartiesandthat, shouldanyprovisionof thisAgreementbefoundto be ambiguousinanyway, suchambiguityshallnotberesolvedbyconstruingthisAgreement infavoror againstanyparty, butratherbyconstruingthetermsin accordancewiththeir generally accepted meaning.
18. REPRESENTATIONS AND WARRANTIES
Eachpartyherebyrepresentsandwarrantstotheotherparty, andagrees, thatithasthe full powerandauthorityto enterintothisAgreementandperformeachof itsobligations hereunder, and it is legally authorized and has obtained all necessary regulatory approvalsfor the execution, delivery, and performanceof this Agreement.
19. ENTIRE AGREEMENT
It is mutually understood and agreed that the foregoing constitutes the entire Agreementbetweenthe parties. Any modificationsor amendmentsto this Agreement must be in writing signedby an authorizedagent of each party. 12 600310901
SIGNATURE PAGE TO FOLLOW]
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IN WITNESS THEREOF, the parties have caused their authorized agents to execute this Agreement as of the date first set forth above:
CITY OF FRESNO,
a California municipal corporation
By-
Ge anne A. White
Cityrganager
APPROVED AS TO FORM'
ANDREW JANZ
City Attorney
By-.
qtKristi M. Costa
Senior Deputy City Attorney
ATTEST
TODD STERMER, MMC
City Clerk
Up Holdings, LLC, an
Illinois LLC, dba Up Holdings
California, LLC
By:
Name: Cullen J Davis
Its: Manager
r
By:
k-t uri. 5. TO
Attachments:
Exhibit A — Scope of Work
Exhibit B — Cityof FresnoPriorExperienceofSimilarProjectsCompleted 14 60031090. 1
Responsible
Party
Developer
Typy of Funds
EXHIBIT A
Scope of Work
Amount of
Funds
AHSC Affordable
Housing
Development Loan
and Housing Related
Infrastructure Grant
Developer AHSC Program funds
City of
Fresno
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Sustainable
Transportation
Infrastructure ( STI)
and Transit Related
Amenities
Not to
exceed
34, 250, 000
Not to
exceed
750, 000
Not to
exceed
15, 000, 000
15 Purpose
Construction of
affordable
housing units
and
infrastructure
on and around
housing site
Programs
related to
transit use and
sustainable
transportation
Active
transportation
infrastructure,
electric buses
and transit stop
improvements
Estimated
Date of
Com[) letioi
5 years from
date of AHSC
award
Ongoing for
three years
after the
occupancy of
the project
5 years from
date of AHSC
award
EXHIBIT B
City's PriorExperienceof SimilarProjectsCompleted
1. Van Ness / Wishon Class IV Bike Lanes
TheCityofFresnorecentlyinstalledparkingprotectedClassIVbikelanesonVanNess Avenue from Alhambra Avenue to Weldon Avenue. A secondphaseof this projectwill becompletedinthe nextfewmonthswhen highertemperaturesallowplacingasphaltand paint. ThesecondphasewillconstructClassIVandClassIIbikelanesonWishonfrom McKinley Avenue to Belmont Avenue. Van Ness and Wishon are adjacent one- way streetsthat form a couplet. The completedsectionis approximately4,200 feet in length.
Thesecondphasewilladd5,300feetof classIVandclassII bikelanes.
Date Completed: March 2023
2. Maple Avenue Class IV Bike Lanes
TheCityof FresnoinstalledClassIVbikelanesonMapleAvenuebetweenGettysburg Avenue and Shaw Avenue in 2021. This section of Maple is near Fresno State University and has several multi -family units for student housing. The bike lanes were installed on both sides of the street. The length of the project is 2,500 feet.
Date Completed: June 2022
3. R Street Class IV Bike Lanes
TheCityof FresnoinstalledClassIV bikelanesonR StreetfromTulareAvenueto Ventura Street. The bikelaneswere installedon bothsides of R Street. The lengthof the project is 1,800 feet.
Date Completed: July 2021
4. Ashlan Avenue Sidewalk Installation
TheCityof Fresnoinstalledeight- to ten -footwidesidewalkson bothsidesofAshlan Avenue between Effie Street and State Route 41. The project also included installation of ADA ramps at all of the corners and replacement of several driveways. The project installed 1, 300 feet of new sidewalk.
Date Completed: October 2020
5. Zero Emission Bus Purchases and Bus Stop Improvement Projects As the transit operatorfor the City of Fresno, FAX is well-equipped to purchasezero emission buses and rehabilitatebus stops. FAX has been expandingits zero -emission fleetto meetthegoalssetforthinitsZeroEmissionBus (ZEB) RolloutPlan, approved 16 600310901
bytheFresnoCityCouncilin2020, whichsatisfiesthestateofCalifornia's Innovative Clean Transit (ICT) requirements. To date, FAXhas purchasednine (9) batteryelectric and two (2) hydrogenfuel cell electric buses. FAX has also completed the charging infrastructure to allow for up to forty-six ( 46) battery electric buses to be charged simultaneouslyat the BusMaintenanceYard. FAX's recentexperiencewith busstop improvements includes a $ 32 million Bus Rapid Transit project which covered 54 stops alongBlackstoneandKingsCanyonAvenues (completedin 2018), a $ 2 million project
that covered 19 medianisland bus stopsthroughoutFresno (completedin 2020), and a 4 millionprojectthatcovered63 standardbusstopsalongShawandCedarAvenues anticipatedfor completionby summer2023). The FAXteamiswell-equippedto manage procurements, contracts, andprojectsassociatedwithpurchasingzeroemissionbuses and completing bus stop improvements.
17 60031090. 1
FormLLC-5- 5 Secretary
of StateJesseWhite Deparlment
of BusinessServices Limited
LiabilityDivisionwww.
cyberdriveillinois.com Illinois
Limited
Liability CompanyAct Articles
of OrganizationFiling
Fee: 500 Expedited
Fee: 100 Approved
By: REH 1.
LimitedLiabilityCompanyName: UP HOLDINGS, LLC Pioneer
Place 11/ 7/ 16 FILE #
04758633 FILED
APR
09 2014Jesse
White Secretary
of State2.
Addressof PrincipalPlace of Businesswhere recordsof thecompanywill be kept: 900 W JACKSONBLVD, SUITE 2W CHICAGO,
IL 606073.
Articlesof Organizationeffective on thefilingdate. 4.
RegisteredAgent' s Nameand RegisteredOffice Address: HENRY C. KRASNOW500
N DEARBORNST STE200 CHICAGO,
IL 60654-3372 COOK 5.
Purposefor whichthe LimitedLiabilityCompanyis organized: The transactionof anyor alllawfulbusinessfor whichLimitedLiabilityCompaniesmay be organizedunder this Act" 6.
The LLC is tohaveperpetualexistence. 7.
The LimitedLiability Companyis managedby themanager(s). DAVIS, CULLEN J. 900
W JACKSONBLVD, STE 2W CHICAGO,
IL 606078.
Name and Addressof Organizeraffirm,
underpenaltiesof perjury, havingauthorityto signhereto, that theseArticlesof Organizationare to thebestof myknowledgeand belief, true, correctand complete. Dated:
APRIL 09, 2014ALEX FLORES 500
N DEARBORN, STE 200 CHICAGO,
IL 60654This
documentwas generatedelectronicallyat www.cyberdriveillinois.com t Secretary of State
LLC- 5
Application to Register a Foreign Limited
Liability Company ( LLC)
IMPORTANT — Read Instructions before completing this form.
Must be submitted with a current Certificate of Good Standing issued by the governmentagencywheretheLLCwasformed. SeeInstructions.
Filing Fee — $ 70. 00
Copy Fees — First page $ 1.00; each attachment page $0.50; Certification Fee - $ 5. 00
N t R t d I I Cs in California ma have to pa minimum $800 tax to the 201 9228 70017
FILED / f
S,aetary ofState
State of Califomia
AUG 14 2019
o e. eggs ere y y
California Franchise Tax Board each year. For more information, go to https:// www. ftb. ca. gov. pL ThisSpaceForOfficeUseOnly 1a. LLC Nagle ( Enter the exact name of the LLC as listed on your attached Certificate of Good Standing.)
UP HOLDINGS, LLC
1b. California Alternate Name, If Required ( see Instructions —Onlyenteranalternatenameif the LLCnamein la notavailableinCalifornia.)
UP HOLDINGS CALIFORNIA, LLC
2. LLC History ( SeeInstructions — EnsurethattheformationdateandjurisdictionmatchtheattachedCertificateof GoodStanding.) a. Date LLC was formed in home jurisdiction ( MMlDDNYYY) b. Jurisdiction ( Stale, foreign country or place where this LLC is formed.) 04 / 09 / 2014 Illinois, USA
c. Authority Statement (Do notalterAuthorityStatement)
ThisLLCcurrentlyhaspowersandprivilegestoconductbusinessinthestate, foreigncountryor placeenteredinItem2b.
3. Business Addresses ( Enterthecomplete businessaddresses. Items3a and3bcannotbea P.O. Boxor "in careof anindividualorentity.) a. Street Addressof Principal ExecutiveOffice - Do not enter a P.O. Box City ( no abbreviations) Stale Zip Code 900 W. Jackson Blvd., Suite 2W Chicago IL 60607
b. Street Address of Principal Office in California, if any - Do not enter a P.O. Box City ( no abbreviations) State Zip Code CA
c. MailingAddressof Principal ExecutiveOffice, if different than Item 3a City ( no abbrevlalions) State Zip Code
4. Service of Process ( MustprovideeitherIndividualORCorporation.) I rdnivinl lAl — r` n nIPfP Items 4a and 4h only_ Must include acent' s full name and California street address. a. California Agent' s First Name ( if agent is not a corporation) Middle Name Last Name Suffix b. Street Address ( if agent Is not a corporation) - Do not enter a P.O. Box City ( no abbrevia( ions) State CA I
Zip Code
CORPORATION — Complete Item 4c only. Only include the name of the registered agent Corporation. c. California Registered Corporate Agent' s Name ( if agent is a corporation) — Do not complete Item 4a or 4b COGENCY GLOBAL INC.
5. Read and Si n Below ( See 6ructlons. Titlenotrequired.) I am authorized sign on b aif of the foreign LLC.
Signature
Cullen J. Davis
Type or Print Name
LLC- 5 ( REV 0e/ 2019) 2019CaliforniaSecretaryof Slate
bizrile.sos.ca.gov
State of California
Secretary of State
CERTIFICATE OF REGISTRATION
I, ALEX PADILLA, Secretaryof State of the Stateof California, herebycertify:
That on the 14th day of August, 2019- UP HOLDINGS CALIFORNIA, LLC, compliedwiththerequirementsofCalifornialawineffectonthatdateforthepurposeof registeringtotransactintrastatebusinessintheStateofCalifornia; andfurtherpurports to bea limitedliabilitycompanyorganizedandexistingunderthe lawsof Delawareas UPHOLDINGS, LLCandthatasofsaiddatesaidlimitedliabilitycompanybecameand nowis dulyregisteredandauthorizedto transactintrastatebusinessintheStateof California, subject, however, to anylicensingrequirementsotherwiseimposedbythe laws of this State.
IN WITNESS WHEREOF, I execute
this certificate and affix the Great Seal
of the State of California this day of
August 16, 2019.
00-- Z -
ALEX PADILLA
Secretary of State
GS
NP- 25 ( REV 02/ 2019)