ANTONIO R. VILLARAlGOSA Mayor

September 22, 2011

The Honorable City Council City of Los Angeles Room 395, City Hall Los Angeles, California 90012

Honorable Members:

Commission THOMAS S. SAYLES, President

ERIC HOLOMAN, !'ice Pmide111

RICHARD F. MOSS CHRISTINA E. NOONAN JONATHAN PARFREY BARBARA E. MOSCHOS,seeretmy

Subject: Sal.e of Easement to the City ofBishop for Public Roadway

Pursuant to Charter Section 675, enclosed for approval by your Honorable Body is

RONALD 0 . NICHOLS General MD11C1ge1·

Resolution No. 012 058, adopted by the Board of Water and Power Commissioners (Board) on September 20, 2011, approved as to form and legality by the City Attorney, which authorizes the sale of easement to the City of Bishop for Public Roadway and Utility Purposes in Bishop, Inyo County, California. As directed by the Board, transmitted to you are supporting documents.

If there are any questi"ofls regarding this item, please contact Ms. Winifred Yancy, Director of Local Government and Community Relations, at (213) 367-0025.

Sincerely,

Barbara E. Moschos Board Secretary

BEM:oja Enclosures: LADWP Resolution

Board Letter CAO Report Ordinance Easement Deed Right-of-Entry

Water and Power Conservation ... a way of life 11 1 North Hope Street, Los Angeles, Californi a 90012-2607 Maililig address: Box 51 I 11, Los. Angeles 9005 1-5700

Telephone: (213) 367-42 11 Cable address: DEWAPOLA ~ Aec)<labla aro.- lnm recycled waste. DQ'

c/enc: Mayor Antonio Villaraigosa Councilmember Jan C. Perry, Chair, Energy and the Environment Committee Mr. Gerry F. Miller, Chief Legislative Analyst Mr. Miguel A. Santana, City Administrative Officer Mr. Rafael Prieto, Legislative Analyst, CLA Mr. William R. Koenig, Chief Administrative Analyst Ms. Winifred Yancy

RESOLUTION NO. ---><--=0-..!:2::__0..:;_::_5_8 __

WHEREAS, the City of Los Angeles owns a parcel of land located in Bishop, lnyo County, California, identified as Assessor's Parcel No. 008-010-41 (hereinafter Property); and

WHEREAS, the Los Angeles Department of Water and Power issued a Right of Entry agreement to allow the City of Bishop to extend Maciver Street through to Spruce Street across said City of Los Angeles-owned parcel to improve traffic flow and circulation; and

WHEREAS, the City of Bishop has requested an easement for roadway and utility purposes over a 0.712-acre portion of said Property.

NOW, THEREFORE, BE IT RESOLVED, that the public interest wi ll be furthered by granting to the City of Bishop, for and in consideration of the sum of $5,000, an easement for roadway and utili ty purposes on said Property owned by the City of Los Angeles and under the control of the Los Angeles Department of Water and Power, further described as:

An easement for roadway and uti lity purposes, all in, over, under, and across that portion of the northeast quarter of Section 6, Township 7 South, Range 33 East, Mt. Diablo Meridian , in the City of Bishop, County of lnyo, State of California, more particularly described as follows:

COMMENCING at the southeast corner of that parcel of land labeled as "AREA= 13.655 acres" on the Map recorded in Record of Survey Book 12, page 50, in the office of the County Recorder of said County; thence South 89°11 '38" West, along the southerly line of said parcel, 60.02 feet to the northwesterly corner of that Roadway Easement described in Easement Deed from th~ CITY OF LOS ANGELES, a municipal corporation, to the CITY OF BISHOP, recorded in Official Records Document No. 98-0125; thence South 00°32'04" West, along the westerly boundary of said Roadway Easement, 280.29 feet to the TRUE POINT OF BEGINNING; thence South 44°51'51" West,, 28.28 feet; thence South 89°11 '38" West, parallel with the southerly line of said parcel, 491.32 feet, to the southeast corner of that parcel of land labeled as "PROPOSED SALE 1.234 acres" on the Map recorded in Record of Survey Book 12, page 8, in said Recorder's Office; thence South 00°31'42" East, 60.00 feet, to the southeasterly corner of Maciver Street (60.00 feet in total width), as shown on said Map recorded in Record of Survey Book 12, page 8; thence North 89°11 '38" East, parallel with the southerly line of said parcel labeled as "AREA = 13.655 acres," 489.7 4 feet; thence South 45°08'09" East, 28.28 feet, to the westerly boundary of said Roadway Easement; thence North 00°32'04" East, 100.02 feet, to the TRUE POINT OF BEGINNING.

Containing 0. 712 acres, more or less.

END OF DESCRIPTION

# C ?.:J~FORWA DATED: ~~?Cf /1 (

SUBJECT TO all outstanding taxes and assessments, if any.

SUBJECT TO any and all easements, covenants, conditions, restrictions, and other matters of record.

SUBJECT TO the condition that the sale and conveyance of the easement is authorized upon the terms and conditions stated herein and upon the further express condition that the same shall be continuously used and maintained by the City of Bishop for roadway and util ity purposes; and that in the event the City of Bishop does not so continuous ly use and maintain said real property for said purposes as hereinabove provided for a period of one year, then, and in that event, upon the expiration of said one year period, all rights shall thereupon be forfeited , extinguished, and terminated, and all interest and rights hereby conveyed shall thereupon automatically revert to and revest in the City of Los Angeles without any further action.

EXCEPTING AND RESERVING unto the City of Los Angeles all water and water rights, whether surface, subsurface, or of any other kind, and all water and water rights appurtenant or in anywise incident to the real property herein described, or used thereon or in connection therewith, together with the right to develop, take, transport , control, regu late, and use al l such water; and reserving unto the Grantor all oi l, gas, petroleum, or other. mineral or hydrocarbon substances in and under said land, without the right to enter upon the surface of said land for such use.

BE IT FURTHER RESOLVED, that the sale and conveyance of an easement is approved by the Board of Water and Power Commissioners and is recommended to the Los Angeles City Council , and that upon approval by the Los Angeles City Council, the General Manager of the Los Angeles Department of Water and Power or his designee shall execute an Easement Deed, approved as to form and legality by the City Attorney, for the sale and conveyance of an easement over said Property and shall execute all other documents and perform all other actions necessary to complete the transaction in accordance with City Charter Section 675 and the terms set forth herein.

I HEREBY CERTIFY that the foregoing is a full, true, and correct copy of a resolution adopted by the Board of Water and Power Commissioners of the City of Los Angeles at its meeting held

SEP 2 0 201 1

APPROVED AS TO FORM AND LEGAUTY CARMEN A. TRUTANICH,CITY ATTORNEY

~kYf)A~ t,~A Secretary

LOS ANGELES DEPARTMENT OF WATER AND POWER 0: BOARD OF WATER AND POWER COMMISSIONERS

JAMES B. McDANIEL RONALD 0. NICHOLS Senior Assistant General Manager- Water System

CITY COUNCil APPROVAL REQUIRED: Yes [gj No

PURPOSE

General Manager

Sale of an Easement to the City of Bishop for Public Roadway and Utility Purposes in

Bishop, lnyo County, California -W-82778

FOR COMMISSION OFFICE USE:

RESOLUTION NO. ___ _

The attached Resolution recommends to the Los Angeles City Council approval of a direct sale of an easement to the City of Bishop for public roadway and utility purposes located in Bishop, lnyo County, California. The easement will provide a right-of-way for the City of Bishop where Maciver Street has been extended approximately 500 feet to the east to connect with Spruce Street to improve traffic flow. The easement tot<? IS 0. 712 acre over a larger parcel owned by the City of Los Angeles (City).

COST AND DURATION

No costs other than an administrative cost to process the sale of an easement. The sale will generate ---an income of $5,000.

BACKGROUND

The City of Bishop has requested a 60-foot-wide easement over vacant City-owned property for the recent extension of Maciver to Spruce Streets. The General Plan for the City of Bishop identifies Maciver Street as a 60-foot public roadway. The City of Bishop received federal and state grant monies through the State of California Department of Transportation to construct the street over City-owned property to connect Maciver to Spruce Streets.

The zoning on the affected portion of City-owned property is classified as R-3 Multiple Residential District. The City of Bishop had the property appraised on February 16, 2007, by K.R. McBay Company, a real estate valuation and consultation company. The easement area will encumber 0.712 acre of City property. K.R. McBay Company valued the R-3 zoned portion of the parcel, a total of 7. 75 acres, at $4,051,000 ($12 per square foot). Without adjustments, this equates to a fee value of $372,000 for the 0.712 acre. However, the title report indicated that the same area where the City of Bishop is requesting the 60-foot easement is already encumbered with an existing 60-foot easement

Board of Water and Power Commissioners Page 2 August 24, 2011

for road purposes, which was reserved by a prior property owner when the property was originally subdivided and sold. Considering this prior roadway encumbrance, along with the road designation in the General Plan and the requirement that the area be dedicated to the City of Bishop upon any development of the site, K.R. McBay Company valued the easement at $500.

Research by LADWP into the prior easement for road purposes noted in the title report indicates that the easement was originally reserved by the property owner prior to the City purchasing the property. It appears that the property owner, at the tfme, reserved the easement when he subdivided the western portion of his property for the purpose of supplying access to his residence and for access to the parcels he intended to sell.

The City of Bishop initiated an action for eminent domain and requested a right of entry to start work. A right of entry was negotiated with input from the Water System, Real Estate, and the City Attorney's Office. The right of entry was signed by the City of Bishop on August 6, 2007 (copy attached) allowing the City of Bishop to proceed with construction of the project. The right of entry was for a period of five years, during which time a permanent easement could be finalized. An administrative fee of $5,000 was proposed· to cover the City's administrative cost for processing an easement. The City of Bishop agreed to pay the $5,000 fee to LADWP.

The sale of the easement will not interfere or impact LADWP's operations or purposes.

ENVIRONMENTAL DETERMINATION

In accordance with the California Environmental Quality Act (CEQA), it has been determined that the sale of surplus City-owned property is categorically exempt pursuant to Article Ill, Class 12, in the CEQA Guidelines, and is further exempt under Title 14, California Code of Regulations, Chapter 3, Section 15312, Class 12, Surplus Government Property Sales.

RECOMMENDATION

It is requested that your Honorable Board adopt the attached Resolution recommending the Los Angeles City Council's approval of a direct sale of an easement to the City of Bishop.

DSM/SC:rjm/wlm Attachments e-c/att: Ronald 0. Nichols

Richard M. Brown Aram Benyamin James B. McDaniel Lorraine A. Paskett Ann M. Santilli Gary Wong Martin L. Adams Scott Cimino

WAtER OPERA1!0NS Dl\ll$10)1

Au0 -f i_~ ZOi1

TRANSMITTAL TO

Ronald 0. Nichols, General Manager Department of Water and Power

l

FROM

The Mayor

AUG 1 9 2011

4t:CUTIVE Oft\G'C.

0150-09630-0000

DATE COUNCIL FILE NO.

COUNCIL DISTRICT

NA I Bishop, CA

PROPOSED RESOLUTION AUTHORIZING THE SALE OF AN EASEMENT OVER 0.712 ACRES OF CITY-OWNED LAND TO THE CITY OF BISHOP FOR PUBLIC ROADWAY

AND UTILITY PURPOSES

Transmitted for further processing and Council consideration.

See the City AJ!~e~ic";Z'-ort attached.

jill4j Mjt:;;v(

MAS:RPR: 10 120022t

GAO 649-d

REPORT FROM

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

Date: August 12, 2011 CAO File No.: 0150-09630-0000 Council File No.: Council District: NA; Bishop, CA

To: The Mayor

From: Miguel A. Santana, City Administrative Offic~ C.~ Reference: Transmittal from the Department of Water and Power dated July 26, 2011; referred by

the Mayor for report on August 1, 2011

Subject: PROPOSED RESOLUTION AUTHORIZING THE SALE OF 0.712 ACRE OF CITY­OWNED LAND TO THE CITY OF BISHOP FOR PUBLIC ROADWAY AND UTILITY PURPOSES

SUMMARY

The Department of Water and Power (DWP; Department) requests approval of a proposed resolution authorizing the sale of an easement across 0.712 acres of City of Los Angeles (City) owned land located in Bishop, CA, excluding all water and water rights, to the City of Bishop (Bishop). The DWP has determined that this vacant land is not necessary for current or future DWP operations, as defined in the City Charter Section 601 -property needed for the production, delivery, or conservation of water or power resources. Charter Section 675(d)(2) requires Council approval to dispose of real property. The City Attorney has approved the proposed resolution as to form and legality.

The City of Bishop has requested to purchase an easement for public roadway and utility purposes over a 0.712 acre portion of a large parcel of a vacant City-owned land located in Bishop, California, for a recent road extension. If approved, the requested easement wlll provide a right-of-way for a 500 foot long road extension connecting Maciver Street to Spruce Street. In August 2007, the DWP and Bishop negotiated a five-year right of entry to allow Bishop to initiate the road project, during which time the permanent easement could be considered. The easement was appraised at $500 by a third party. However, both the DWP and Bishop have agreed to an administrative fee of $5,000 to cover the Department's cost for processing the easement

Upon review of the attached DWP request, it is the opinion of this Office that the item can be approved, as the requested action appears to be reasonable and in accordance with City policies and procedures.

CAO File No. PAGE

0150-09630-0000 2

RECOMMENDATION

That the Mayor approve the proposed resolution authorizing the direct sale of an easement for public roadway and utility purposes over 0.712 acres of City of Los Angeles owned land located in Bishop, California, excluding all water and water rights, to the City of Bishop in the amount of $5,000; and return the proposed resolution to the Department for further processing, including Council consideration.

FISCAL IMPACT STATEMENT

Approval of the proposed resolution will result in revenue to the Water Revenue Fund totaling $5,000. Since the Department of Water and Power is bound only by the City Debt Management Policies, the City Financial Policies are not applicable. Approval of the proposed resolution will have no impact on the City's General Fund.

TIME LIMIT FOR COUNCIL ACTION

Pursuant to Charter Section 675(d)(2), "Powers and Duties of the Board- Real Estate Interests," subject to the water rights of the City, there is no time limit for Council action on agreements for real property or any rights in real property held by DWP that will be sold, leased or withdrawn from the Department's control.

MAS:RPR:10120022

ORDINANCE NO.--------

An Ordinance approving a Resolution of the Board of Water and Power Commissioners for the sale of an easement for roadway and utility purposes to the City of Bishop.

THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS:

Section 1. The action of the Board of Water and Power Commissioners of the City of Los Angeles on the _day of , approving the sale of an easement for roadway and utility purposes over City-owned property is hereby ratified, confirmed, and approved. The approved Resolution reads:

RESOLUTION NO. _______ _

WHEREAS, the City of Los Angeles owns a parcel of !and located in Bishop, lnyo County, California, identified as Assessor's Parcel No. 008-0i 0-4 i (hereinafter Property); and

WHEREAS, the Los Angeles Department of Water and Power issued a Right of Entry agreement to allow the City of Bishop to extend Maciver Street through to Spruce Street across said City of Los Angeles-owned parcel to improve traffic flow and circulation; and

WHEREAS, the City of Bishop has requested an easement for roadway and utility purposes over a 0.712-acre portion of said Property.

NOW, THEREFORE, BE IT RESOLVED, that the public interest will be furthered by granting to the City of Bishop, for and in consideration of the sum of $5,000, an easement for roadway and utility purposes on said Property owned by the City of Los Angeles and under the control of the Los Angeles Departn1ent of Water and Power, further described as:

An easement for roadway and utility purposes, all in, over, under, and across that portion of the northeast quarter of Section 6, Township 7 South, Range 33 East, Mt. Diablo Meridian, in the Clty 'of Bishop, County of lnyo, State of California, more particularly described as follows:

COMMENCING at the southeast corner of that parcel of land labeled as "AREA ::.:: 13.655 acres" on the Map recorded in Record of Survey Book 12, page 50, in the office of the County Recorder of said County; thence South 89°11 '38" West, along the southerly line of said parcel, 60.02 feet to the northwesterly corner of that Roadway Easement described in Easement Deed from the CITY OF LOS ANGELES, a municipal corporation, to the CITY OF BISHOP, recorded in Official Records Document No. 98-0125; thence South 00°32'04" West, along the westerly boundary of said Roadway Easement, 280.29 feet to the TRUE POINT OF BEGINNING; thence South 44°51 '51" West, 28.28 feet; thence South 89°11 '38" West, parallel with the southerly line of said parcel, 491.32 feet, to the southeast corner of that parcel of land labeled as "PROPOSED SALE 1.234 acres" on the Map recorded in Record of Survey Book 12, page 8, in said Recorder's Office; thence South 00°31 '42" East, 60.00 feet, to the southeasterly corner of Maciver Street (60.00 feet in total width), as shown on said Map recorded in Record of Survey Book 12, page 8; thence North 89°11 '38" East,

- 1 -

Sec. 3. The City Clerk shall certify to the passage of this ordinance and have it published in accordance with City Council policy, either in a daily newspaper circulated in the city of Los Angeles or by posting for ten days in three public places in the city of Los Angeles: one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall; one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall East; and one copy on the bulletin board located at the Temple Street entrance to the Los Angeles County Hall of Records.

I hereby certify that the foregoing ordinance was passed by the Council of the City of Los Angeles, at its meeting of~~--------------

JUNE A. LAGMAY, City Clerk

By Deputy

Approved

Mayor

Approved as to Form and legality

CARMEN A TRUTANICH, City Attorney

By

Date

File No.

- 3 -

RECORDING REQUESTED BY: State of California Department of Transportation

WHEN RECORDED, MAIL TO: State of California Department of Transportation 500 South Main Street Bishop, CA 93514

Grantee: EASEMENT DEED

Project:

Portion of APN(s):

THE AREA ABOVE THIS LINE IS FOR RECORDER'S USE

DOCUMENT TITLE(S)

State of California Department of Transportation Wye Road/U.S. Highway 61ntersection Improvement Project- Bishop -lnyo County- California

010-480g01

THIS DOCUMENT IS EXEMPT FROM DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11922 OF THE CALIFORN lA REVENUE AND TAXATION CODE AND EXEMPT FROM FEES FOR RECORDING PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 6103.

As authorized by the Board of Water and Power Commissioners by Resolution No. ___ _ adopted on and approved by the Los Angeles City Council on _________ , for valuable consideration, receipt of which is hereby acknowledged, the CITY OF LOS ANGELES, a municipal corporation, grants to the STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION, an easement for public highway purposes over and across that certain real property owned by the City of Los Angeles and under the management and control of the Los Angeles Department of Water and Power, in the County of lnyo, State of California, described as follows:

That certain real property in the county of lnyo, state of California, being a portion of the southwest quarter of Section 31, Township 6 South, Range 33 East, Mt Diablo Meridian, and said portion also being more particularly described as follows:

COMMENCING at the "2-inch Iron Pipe w/Conc. Plug & Tag RCE 15557 in Hand Hole," as shown on the Record of Survey recorded in Book 11 of Record of Survey Maps, page 30, in the Office of the County Recorder of said County, set to mark the quarter corner common to Section 6, Township 7 South, and Section 31, Township 6 South, both in Range 33 East, Mt. Diablo Meridian; thence North 84°46'24" West, 45.92 feet to a point on the west right-of-way line of U.S. Highway 6 as described in the Easement Deed from the City of Los Angeles to the State of California and recorded in Book 38 of Official Records, page 553, in the Office of the County Recorder of said County, said point on the west right-of-way line also being the TRUE POINT OF BEGINNING; thence, leaving said west right-of~way line, North 89°24'33" West, 245.79 feet;

thence South 00°35'27" West, 3.00 feet to the north right-of-way line as described in the "Deed for State Highway" from W.P. Yaney, et al., to the State of California and recorded April 29, 1921 in Book 2, page 44, of Road Deeds; thence, along said north right-of-way line, North 89°24'33" West, 399.20 feet; thence, leaving said north right-of-way line, North 00°35'27" East, 5.00 feet; thence South 89°24'33" East, 110.00 feet; thence North 00°35'27" East, 15.00 feet; thence South 89°24'33" East, 253.56 feet; thence North 00°35'27" East, 3.00 feet; thence South 89°24'33" East, 261.18 feet; thence North 45°13'37" East, 28.10 feet to said west right-of-way line; thence, along said west right-of-way line, South 00°08'12" East, 40.00 feet to the TRUE POINT OF BEGINNING.

Containing 11,554 square feet of land, more or less.

The Basis of Bearings for the above legal description is a bearing of South 89°58:16" West, between the Point of Commencement and the monument depicted as the "NW Cor. Sec. 6" as shown on the Record of Survey recorded in Book 11 of Record of Survey Maps, page 30, in the Office of the County Recorder of said County.

END OF DESCRIPTION

SUBJECT TO all outstanding taxes and assessments, if any.

SUBJECT TO any and all easements, covenants, conditions, restrictions, and other matters of record.

EXCEPTING AND RESERVING unto the City of Los Angeles all water and water rights, whether surface, subsurface, or of any other kind, and all water and water rights appurtenant or in anywise incident to the real property herein described, or used thereon or in connection therewith, together with the right to develop, take, transport, control, regulate, and use all such water; and reserving unto the Grantor the property and mineral rights to all oil, gas, petroleum, or other mineral or hydrocarbon substances in and under said land, without the right to enter upon the surface of said land for the purpose of development, extraction, taking, or transportation of such substances for use and/or for r~venue production.

API' ROVED AS TO FORM AND LEGALITY CARMEN A. TRUTANICH, CITY ATTORNEY

AUTHORIZED BY:

Resolution No ................... .. Adopted ......................... ..

Approved by Council on ..... . Council File No .................. .

By

DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES BY THE

BOARD OF WATER AND POWER COMMISSIONERS OF THE

CITY OF LOS ANGELES

State of California

County of } ----------------------

On before me, ------------~DA~T~E~---------- Here Insert Name and Title of the Officer

personally appeared

Place Notary Seal Above

NAME(S) OF SlGNER(S)

Who proved to me on the basis of satisfactory evidence to be the person(s) whose name{s) is/are subscribed to the within instrument and acknowledgep to me that he/she/they executed the sarrre in his/her/their (;luthorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature SIGNATURE OF NOTARY PUBLIC

RIGHT OF ENTRY

RIGHT OF ENTRY2.AGT Rev. 3/6/2003

The lOS ANGELES DEPARTMENT OF WATER AND POWER (LADWP) hereby gives permission to the CITY OF BISHOP (Bishop) to access and commence work on the below-described City of Los Angeles (City) property for a roadway project to extend Maciver Street, in the city of Bishop, lnyo County, California. The City property, that is the subject of this Right of Entry, is described as follows:

That portion of the northeast quarter of Section 6, Township 7 South, Range 33 East, Mt. Diablo Meridian, in the city of Bishop, County of lnyo, State of California, more particularly described as follows:

COMMENCING at the southeast corner of that parcel of land labeled as "AREA == 13.655 acres" on the Map recorded in Record of Survey Book 12, page 50, in the office of the County Recorder of said County; thence South 89"11 '38" West, along the southerly line of said parcel, 60.02 feet to the northwesterly corner of that Roadway Easement described in Easement Deed from the CITY OF LOS ANGELES, a municipal corporation, to the CITY OF BISHOP, recorded in Offici;ql Records Document No. 98-0125; thence South 00°32'04" West, along the westerly boundary of said Roadway Easement, 280.29 feet to the TRUE POINT OF BEGINNING; thence South 44"51'51" West, 28.28 feet; thence South 89"11'38" West, parallel with the southerly line of said parcel, 491.32 feet, to the southeast corner of that parcel of land labeled as «PROPOSED SALE 1.234 acres" on the Map recorded in Record of Survey Book 12, page 8, in said Recorder's Office; thence South 00°31'42" East, 60.00 feet, to the southeasterly corner of Maciver Street (60.00 feet in total width), as shown on said Map recorded in Record of Survey Book 12, page 8; thence North 89°11'38n East, parallel with the southerly line of said parcel labeled as "AREA = 13.655 acres," 489.7 4 feet; thence South 45{}08'09" East, 28.28 feet, to the westerly boundary of said Roadway Easement; thence North 00°32'04" East, 100.02 feet, to the TRUE POINT OF BEGINNING.

Containing 0.712 acres, more or less ("Subject Property").

1. The permission given herein shall not imply or confer any greater right or permission than LADWP has or can hereby lawfully give.

2. Bishop has inspected the premises, knows the condition thereof, and on behalf of itself and its successors, assigns and sub~Lessees/sub-Permittees/sub-Ucensees/ sub-Tenants undertakes and agrees to indemnify and hold harmless the City of Los Angeles, the Department of Water and Power, the Board of Water and Power Commissioners of the City of Los Angeles, and all of their officers, employees, agents, successors In interest, insurers, assigns and/or employees {individually and collectively, "lndemnitees"), and at the option of the Landlord, defend by counsel satifactory to the Landlord, the !ndemniteees from and against all liens and claims of lien, suits, causes of action, claims, charges, damages (including but not limited to indirect, consequential,

and incidental), demands, judgements, civil fines, penalties, or losses of any kind or nature whatsoever that are incurred by or asserted against the lndemnitees, for death, bodily injury, or personal injury to any person, including Bishop employees and agents, or damage or destruction or loss of use of any property of either party hereto, or third persons in any manner arising by reason of, incident to, or connected in any manner to the acts, errors, omissions to act, willful misconduct, or non-performance or breach by Bishop of any term and/or condition of this agreement, resulting from or incident to the presence upon or performance of activities by Bishop or its personnel with respect to the Subject Property covered under this agreement, on the part of Bishop, or its officers, agents, employees, or sub-Tenants of any tier, regardless of any negligence on the part of Indemnities, except for the active negligence or willful misconduct of the Deaprtment of Water and Power. This Indemnity shall apply whether occurring during the term of this agreement and any time thereafter, and shall be in addition to any other rights or remedies which Indemnities have under law or under this agreement

3. INSURANCE- APPLICABlE TERMS AND CONDITIONS

A Additionallnsur@d Status Required: Lessee shall procure at its own expense, and keep in effect at an times during the term of this lease, the types and amounts of insurance specified in the Contract Insurance Requirements, marked Exhibit 8, attached hereto and made a part hereof. The specified insurance shall also, either by provisions in the policies, by the City's own endorsement form, or by other endorsement attached to such policies, include and insure the City, its Los Angeles Department of Water and Power, its Board of Commissioners (hereinafter referred to as "Board"), and all of its officers, employees and agents, their successors and assigns, as additional insureds (except for Professional Liability and Workers' Compensation), against the area of risk described herein as respects to Lessee's use and occupancy of the premises hereunder, or other related functions performed by or on behalf of the Lessee. Such insurance shall not limit or qualify the liabilities and obligations of the Lessee assumed under the lease.

B. Severability of Interests and Cross liability Required: Each specified insurance policy (other than Workers' Compensation and Employers' Liability and Property cover,ages) shall contain a Severability of Interest and Cross Liability clause, which states, "It Is agreed that the insurance afforded by this policy shall apply separately to each insured against whom claim is made or suit is brought except with respect to the limits of the company's liability''; and a Contractual Liability Endorsement, which shall state, "Such insurance as is afforded by this policy shall also apply to liability assumed by the insured under this lease with the City of Los Angeles."

C. Primary and Non~Contributory Insurance Required: All such insurance shall be Primary and Noncontributing with any other insurance held by the City's Department where liability arises out of or results from the acts or omissions of the Lessee, Its agents, employees, officers, assigns, or any person or entity acting for or on behalf of Lessee. Any insurance carried by the Department which may be applicable shall be deemed to be excess insurance and the Lessee's insurance is primary for an purposes despite any conflicting provision in the Lessee's policies to the contrary.

2

D. Deductibies Subject to Departmentls Discretion: Deductibles and/or self-insured retentions shall be at the sole discretion of the Risk Manager of the Department (hereinafter referred to as "Risk Manager'). The Department shall have no liability for any premiums charged for such coverage(s). The inclusion of 1he Department of Water and Power, its Board, and all of Its officers, employees and agents, and their agents and assigns, as additional insureds, is not intended to, and shall not, make them, or any of them a partner or joint venturer with the Lessee in Its operations.

E Proof of Insurance for Renewal or Extension Reguired: At least ten (10} days prior to the expiration date of any of the policies required on Exhibit B (Contract Insurance Requirements), documentation showing that the insurance coverage has been renewed or extended shall be filed with the Department. If such coverage is canceled or reduced in coverage, lessee shall, within fifteen (15) days of such cancellation or reduction of coverage, file with the Department evidence that the required insurance has been reinstated or provided through another insurance company or companies.

F. Submission of Acceptable Proof of Insurance and Notice of Cancellation: Lessee shall provide proof to the Department's Risk Manager of all specified insurance and related requirements either by production of the actual insurance po.licy(ies), by use of Department's own endorsement form(s), by other written evidence of insurance acceptable to the Risk Manager, but always in a form acceptable to the Risk Manager and the Office of the City Attorney. The documents evidencing all specified coverages shall be filed with the Department prior to Lessee occupying the premises hereunder. Said proof shall contain at a minimum, the applicable policy number, the inclusive dates of policy coverages, the date the protection begins for the Department of Water and Power, and the insurance carrier's name. It shall bear an original signature of an authorized representative of said carrier, and shall provide that such Insurance shall not be subject to cancellation, material reduction in coverage or non-renewal except after written notice by certified mail, return receipt requested, to the City Attorney of the City of Los Angeles at least thirty {30) calendar days prior to the effective date thereof. The notification shall be sent by registered mail to:

)

The Office of the City Attorney Water and Power Division Room 340- John Ferraro Building Post Office Box 51111 Los Angeles, California 90051~01 00

G. Claims-Made Insurance Conditions: Should any portion of the required insurance be on a "Claims Made" policy, the Lessee shall, at the policy expiration date, provide evidence that the "Claims Made" policy has been renewed or replaced with the same limits, terms and conditions of the expiring pollcy, or that an extended three (3) years discovery period has been purchased on the expirlng policy at least for the lease.

H. Failure to Maintain and Provide Proof as Cause for Termination: Failure to maintain and provide acceptable evidence of the required insurance for the

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required period of coverage shall constitute a breach of lease, upon which the Department may immediately terminate or suspend the lease.

I. Periodic Right to Review/UQdaf.e. insurance R!Quirements: The Department and lessee agree that the insurance policy !lmlts specified on Exhibit B (Contract Insurance Requirements) may be reviewed for adequacy annually throughout the term of this lease by the Risk Manager/City Attorney, who may thereafter require Lessee to adjust the amounts and types of insurance coverage however the Risk Manager/City Attorney deems to be adequate and necessary. The City reserves the right to have submitted to lt, upon request, all pertinent information about the agent and carrier providing such insurance, Including applicable license and ratings.

J. Indemnification: The Lessee has inspected the premises, knows the condition thereof, and on behalf of itself and its successors, assigns and Sub-Lessees undertakes and agrees to indemnify and hold harmless the City of Los Angeles, the Department of Water and Power, the Board of Water and Power Commissioners of the City of los Angeles, and all of their officers, agents, successors in interest, insurers, assigns and/or employees (individually and collectively, "lndemnitees"); and, at the option of the lessor, defend by counsel satisfactory to the Lessor, the lndemnitees from and against any and all liens and cl<;tims of lien, suits, causes of action, claims, charges, damages {including but not limited to indirect, consequential, and incidental), demands, judgments, civil fines, penalties, or losses of any kind or nature whatsoever that are incurred by or asserted against the lndemnrtees, for death, bodily injury or personal injury to any person, including Lessee's employees and agents, or damage or destruction or loss of use of any property of either party hereto, or third persons in any manner arising by reason of, incident to, or connected in any manner to the acts, errors, omlsslons to act, willful misconduct, or non~performance or breach by Lessee of any term and/or condition of this lease, resulting from or incident to the presence upon or performance of activities by lessee or its personnel with respect to the subject area/property covered under this lease, on the part of the Lessee, or the lessee's officers, agents, employees, or Sub-Lessees of any tier, regardless of any negligence on the part of lndemnitiees, except for the active negligence or willful misconduct of the Department of Water and Power. This indemnity shall apply whether occurring during the term of this lease and any time thereafter, and shall be in additjon to any other rights or remedies which lndemnitees have under law or under this agreement.

K. All work In connection with the above-mentioned construction shall be done without cost or liability to LADWP, its officers, employees, or agents.

L. Any future conveyance of any property rights to Bishop with regard to the Subject Property shall be subject to approval by the LADWP Board of Water and Power Commissioners by resolution, and approval by the los Angeles City Council by ordinance, and subject to all applicable provisions of the Los Angeles City Charter and the laws of this state. It is understood and agreed that this permission shall not constitute a waiver of the rights of the City and LADWP for full payment of just compensation for the taking and damaging of said property.

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The exercise of any rights herein by Bishop shall be subject to all existing uses and all matters of record. The permission herein given is further subject to the following conditions:

1. Reserving unto the City all water and water rights, whether surface, subsurface, or of any other kind, and all water and water rights appurtenant or in anywise incident to the real property therein described, or used thereon, or in connection therewith, together with the right to develop, take, transport, control, regulate, and use all such water; and reserving unto the City all oil, gas, petroleum, or other mineral or hydrocarbon substances in and under sald land, without the right to enter upon the surface of said land for such use.

2. Upon termination of the Right of Entry for whatever reason, Bishop shall be responsible, to the extent caused by or Introduced onto the property as a result of the use of the property by Bishop, for all cleanup costs and expenses including, but not limited to, any fines, penalties, judgments, litigation costs, and attorneys' fees incurred as a result of any and all discharge, leakage, spillage, emission of material which is, or becomes, defined as any pollutant, contaminant, hazardous waste or hazardous substance, under all federal, state, focal, or municipal laws, rules, orders, regulations, sta1utes, ordinances, codes, decrees, or requirements of any government authority regulating, or imposing liability or standards of conduct concerning any hazardous substance on, under, or about the property, as now or may at any later time be in effect, including without limitation, the Comprehensive Environmental Response, Compensation and liability Act of 1980 [42 USGS §§9601 et seq.]; the Resource Conservation and Recovery Act of 1976 [42 USGS §§6901 et. seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act {33 USCS §§1251 et seq.]; the Toxic Substances Control Act [15 USGS §§2601 et. seq.]; the Hazardous Materials Transportation Act [49 USCS §§1801 et. seq.]; the Insecticide, Fungicide, Rodenticide Act [7 uses §§136 et seq.]; the Superfund Amendments and Reauthorization Act [42 USCS §§6901 et seq.]; the Clean Air Act [42 USGS §§7401 et seq.]; the Safe Drinking Water Act {42 USCS §§300f et. seq.]; the Solid Waste Disposal Act [42 USCS §§6901 et. seq.]; the Surface Mining Control and Reclamation Act (30 USCS §§1201 et. seq.]; the Emergency Planning and Community Right to Know Act (42 USCS §§11 001 et seq.]; the Occupational Safety and Health Act [29 USCS §§655 and 6'57]; the Callfon1ia Underground Storage of Hazardous Substances Act [H&SC §§25280 et. seq.]; the California Hazardous Substances Account Act (H&SC §§25300 et seq.]; the California Hazardous Waste Control Act [H&SC §§251 00 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act (H&SC §§24249.5 et. seq.]; and the Porter-Cologne Water Quality Act (Wat. C. §§13000 et seq.], together with any amendments of or regulations promulgated under the statutes cited above and any other federal, state, or local law, statute, ordinance, or regulation now in effect or later enacted that pertains to hazardous substances on, under, or about the property, including ambient air, soil, soil vapor, groundwater, surface water, or land use. Said cleanup shall be accomplished to the satisfaction of LADWP and any governmental body having jurisdiction there over.

This Right of Entry shall terminate upon recordation of a permanent easement or within five years of the date of execution. This Right of Entry may be revoked by LAOWP at any time by the giving of 180 days' written notice to Bishop.

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The person exceuting this Right of Entry hereby represents and warranties that they are duly au1horized by the party or entity they represent to execute this Right of Entry on behalf of the party or entity.

By executuion of this Right of Entry, each party hereby acknowledges the receipt and acceptance of the terms and conditions of this Right of Entry.

Dated __ ft=·-r(t ..... ~74-"-u-il-]--~--

Dated August 6, 2007

DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES

By

APPROVED:

·RONALD F. DEATON GENERAL MANAGER

JAMES B. McDANIEL Chief Operating Officer -

Water System

THOMAS M. ERB Director of Water Resources

Title_~ili Administrator

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LAOWP

BISHOP