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2011-R-57 Lease with Union Pacific RailoadRESOLUTION NO. 11-R-57 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AUTHORIZING A LEASE AGREEMENT WITH UNION PACIFIC RAILROAD, AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City staff of the City of Schertz (the "City") has recommended that the City enter into a Lease of Property agreement with Union Pacific Railroad relating to an existing paved parking lot adjacent to Main Street; and WHEREAS, the City Council has determined that it is in the best interest of the City to contract with Union Pacific Railroad pursuant to the Lease of Property agreement attached hereto as Exhibit A (the "Agreement"). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. The City Council hereby authorizes the City Manager to execute and deliver the Agreement with Union Pacific Railroad in substantially the form set forth. on Exhibit A. Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the judgment and findings of the City Council. Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions of this Resolution shall be and remain controlling as to the matters resolved herein. Section 4. This Resolution shall be consri•ued and enforced in accordance with the laws of the State of Texas and the United States of America. Section 5. If any provision of this Resolution or the application thereof to any person or circumstance shall be held to be invalid, the r•emainder• of this Resolution and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Resolution would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Chapter 551, Texas Government Code, as amended. Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. soass~ai.r PASSED AND ADOPTED, this 29th day of November, 2011. CITY OF SC RTZ, T S Ma or ATTEST: Tn~61k,1~ City Secretary (CITY SEAL) soasai~~.i OEC 2 ~ 2011 Folder: 2572-73 MR. JOHN E. BIERSCHWALE ASST. CITY MANAGER CITY OF SCHERTZ 1400 SCHERTZ PARKWAY SCHERTZ, TX 78154 RE: Lease Covering Use of Railroad Property at Schertz, Texas Dear Mr. Bierschwale: Attached for your permanent record is a fully executed original of the above-referenced Lease. The Railroad Company has authorized the installation of fiber optic cable facilities oo its property in certain areas. Prior to digging on the Railroad's property you must contact the Railroad Company at 1-800-336-9193 to determine if this property contains fiber optic cable. In any event, you should thm•oughly review the terms and conditions of this Lease. In compliance with the Internal Revenue Service's policy regarding Form 1099, please be advised that 94-6001323 is Union Pacific Railroad Company's Federal Taxpayer Identification Number and we are doing business as a corporation. m rely, J' Mat enior Manager-Real Estate (402)544-8562 Union Pacific Railroad Real Estate 1400 Douglas Street Stop 1690 Omaha, Nebraska 68179-1690 fz. (402) 507-0340 Industrial Lease (Year To Year) 09-01-06 Folder No.2572-77 (Unimproved Property) Aadit No.~. Form Approved, Law LEASE OF PROPERTY (INDUSTRIAL LEASE -UNIMPROVED -YEAR TO YEAR) THIS LEASE ("Lease") is entered into on December 1, 2011, between UNION PACIFIC RAILROAD COMPANY ("Lessor") and CITY OF SCHERTZ, a Texas municipal corporation, whose address is 1400 Schertz Parkway, Schertz, Texas 78154 ("Lessee"). IT IS AGREED BETWEEN THE PARTIES AS FOLLOWS: Article 1. PREMISES; USE. Lessor leases to Lessee and Lessee leases from Lessor the premises ("Premises") at Schertz, Texas, shown on the print dated October 28, 2011, marked Exhibit A, hereto attached and made a part hereof, subject to the provisions of this Lease and of Exhibit B attached hereto and made a pats hereof. The Premises inchtded in this Lease is defined by the following: 1) Property along the track, depicted on the attached print in orange screen, to be used by Lessee for weed /h•ash and debris control within the corporate limits of Schertz, and purposes incidental thereto, only, and for no other puraose. Property to be used For weed/trash and debris control includes the outer 25 feet of Lessor's 100 foot wide right-of--way. If Lessee needs to get within 25 feet of the track, they should contact Mr. Russell Mrazek, Union Pacific's Manager -Track Maintenance, 402-501-4333 (office) and 512-227-2075 (cell). 2) In exchange for Lessee performing weed/hash and debris control, as mentioned above, Lessor grants Lessee use of the property depicted on the attached print in green, to be used by the City as a public parking lot located on the east side of First Street. Article 2. TERM. The term of this Lease shall commence December 1, 2011, and, unless sooner terminated as provided in this Lease, shall extend for one year and thereafter shall automatically be extended from year to year. Article 3. RENT. In lieu of rent, Lessee will maintain Premises. Article 4. INSURANCE. A. Before commencement of [he tern of this Lease, Lessee shall provide to Lessor a certrtificate issued by its insurance carrier evidencing the insm~ance coverage required under Exhibit C hereto attached and made a part hereof. B. Not more frequently than once every hvo years, Lessor may reasonably modify the required insurance coverage to reflect then-current risk management practices in the railroad indushy and unde~tivriting practices iu the insurance indusGy. C. All insurance correspondence, certificates and endorsements shall be directed to: Real Estate Department, 1400 Douglas Street STOP 1690, Omaha, Nebraska 68179-1690, Folder No. 2572- 73. Article 5. DECORATIVE WALL AS SAFETY BARRIER Lessee, at Lessee's expense, will install a decorative wall, not to exceed tlu~ee feet in height along the south line of the parking lot, measured 50 feet north from centerline of the hack. In addition, Lessee will also install decorative wall across curb cut into parking parcel at First Sleet. Decorative wall location is shown depicted by red line on the attached print. Invitees to parking lot will only gain ingress/egress to parking lot from Main Street. IN WITNESS WHEREOF, the pasties have executed this Lease as of the day and year first herein written. Lessor: UNION PACIFIC RAILROAD COMPANY Lessee: CITY OF SCHERTZ By: ~ ~~ , enior M~auager -Real stafd By: Tit sty Manager NOTE: New Lease S ~~ ~~ ~ N LEASE AREA =228,590 S.F. F.M. l 0' \~ V1 ~y . O o~ ~ ry~ u: 0~ QM/ NI 0~I ~~ ~! QI N,p LEASEAREA=178,940 S.F. ~o 0 E`Q! K` ~~ o~ ,~ . 0~~~$ . / ~' ~ ~rce ,- o ~P' a19 Tp M~+~.~~ ~~ ._ ~o N, 0 1 ~_ _ ~. - ~.;,, LEASE AREA = 410.757 S.F. +/- PARKING AREA = 14.305 S.F. +/- TOTAL AREA = 425.062 S.F. +/- ~soeMO~ LEASE AREA SHOwN ••••-••--- PARKING AREA •••••-•••••••••-• wAll/BARRICADE ••••--••••••••• ~~~~~~~ UPRRCO.R/W OUTLINED -------- -••-^-••- 0257273.dgn SCAN c:/work/txv4a045-2572-73.tif FILENAME c:/work/txv4a044-2572-73.tif ~? q0 ~, ~k t~~ ~" ~~b~ `~ ,P ~O i~~•y~`.. ~a Jo~~ r~ ~~ #~ ~~c e 11 1~ ~. P V `A, ~~,_ P NOTE: BEFORE YOU BEGIN ANY WORN. SEE AGREEMENT FOR FIBER OPTIC PROVISIONS. E%HIBIT "A" UNION PACIFIC RAILROAD COMPANY SCHERTZ. GUADALUPE COUNTY. T% APPROX. M. P. 191.37 TO 193.14 - GLIDDEN SUB. TO ACCOMPANY AGREEMENT WITH CITY OF SCHERTZ GHSA V-4 / 44 8 45 SCALE: 1" = 400' OFFICE OF REAL ESTATE OMAHA. NEBRASKA DATE: 1lh-2$'-2011 NLP FILE: 2572-73 0 s, oen,~ m LEASE \ ~~- \ 5,Yt7 S.F; .~` \ •' ~' ~ ~~ ~~ ~ 16 N •~\ ~~h- ~ \ ~!~ ~ ~\ ~ ~~ ~~~~ ~ N n4=~\ ~c F: V ~~. . ~~~ "~ ` v ~~„~ J M/m ~~rcr.tz M & W s~'n~rrt & w v ~ h •y •~ w ~~ G~~ t- WALUE ~ N •.iv bo, cn /UT 5~' .er N J` r k~ a~ PARKING AREA / ~' 10 AREA = 14,30.5 S~ ~ \ ~~ H ~~ ~ s ~: ~- j 1 3 ~! ~ ~ ~G 4 s\ ' I W r^O °1 ' c 7 .C G i U AREA C V v .~ 0 ,, i`~; fi •~ o~ a m jyo 3 7~ ~ ___ _ ~~ N° ~ ~ ,fl ~~ :t ~, r ~~ 1 I Industrial Lcase (Year To Ycar) 09-01-06 (Unimprovcd Property) Form Approved, Law EXHH3IT B TO INDUSTRIAL LEASE (UNIMPROVED YEAR TO YEAR) Section 1. IMPROVEMENTS. No improvements placed upon the Premises by Lessee shall become a part of the realty. Sectimr 2. RESERVATIONS, TITLE AND PRIOR RIGHTS. A. Lessor reserves to itself, its agents and contractors, the right to enter the Premises at such times as will not unreasonably interfere with Lessee's use of the Premises. B. Lessor reserves (i) the exclusive right to permit third party placement of advertising signs on the Premises, and (ii) the right to construct, maintain and operate new and existing facilities (including, without limitation, trackage, fences, communication facilities, roadways and utilities) upon, over, across or under the Premises, and to grant to others such rights, provided that Lessee's use of the Premises is not interfered with unreasonably. C. Lessee acknowledges that Lessor makes no representations or warranties, express or implied, concerning the title to the Premises, and that the rights granted to Lessee under this Lease do not extend beyond such right, title or interest as Lessor may have in and to the Premises. Without limitation of the foregoing, this Lease is made subject to all outstanding rights, whether or not of record. Lessor reserves the right to renew any such outstanding rights granted by Lessm• or Lessor's predecessors. D. Without limitation of Subparagraphs B. and C. above, Lessee shall not interfere in any manner with the use or operation of any signboards now or hereafter placed on the Premises or with any property uses in connection with such signboards (such as, by way of example and not in limitation, roadways providing access to such signboards). In no event may Lessee consG'uct on the Premises any improvements that interfere in any mamrer with the visibility or operation of any signboards now or hereafter on the Premises or on property in proximity to the Premises. Section 3. PAYMENT OF RENT. hi this instance, in lieu of cash rent, Lessee maintains Premises. Section 4. TAXES AND ASSESSMENTS. A. Lessee shall pay, prior to delinquency, all taxes levied during the life of this Lease on all personal property and improvements on the Premises not belonging to Lessor. If such taxes are paid by Lessor, either separately or as a part of the levy on Lessor's real property, Lessee shall reimburse Lessor in full within thirty (30) days after rendition of Lessor's bill. B. If the Premises are specially assessed for public improvements, the annual rent will be automatically increased by ] 2% of the full assessment amount. Section 5. WATER RIGHTS. This Lease does not include any right to the use of water under any water right of Lessor, or to establish any water rights except in the name of Lessor. Section 6. CARE AND USE OF PREMISES. A. Lessee shall use reasonable care and caution against damage or destruction to the Premises. Lessee shall not use or permit the use of the Premises for any unlawful purpose, maintain any nuisance, permit any waste, or use the Premises iu any way that creates a hazard to persons or property. Lessee shall keep the sidewalks and public ways on the Premises, and the walkways appurtenant to any railroad spur track(s) on or sewing the Premises, free and clear from any substance which might create a hazard. B. Lessee shall not permit any sign on the Premises, except signs relating to Lessee's business. C. If any improvement on the Premises other than the Lessor Improvements is damaged or destroyed by fire or other casualty, Lessee shall, within thirty (30) days after such casualty, remove all debris resulting therefrom. If Lessee fails to do so, Lessor may remove such debris, and Lessee agrees to reimburse Lessor for all expenses incurred within thirty (30) days after rendition of Lessor's bill. D. Lessee shall comply with all governmental laws, ordinances, rules, regulations and orders relating to Lessee's use of the Premises and this Lease, including, without limitation, any requirements for subdividing or platting the Premises. Section 7. HAZARDOUS MATERIALS, SUBSTANCES AND WASTES. A. Without the prior written consent of Lessor, Lessee shall not use or permit the use of the Premises for the generation, use, treatment, manufachu~e, production, storage or recycling of any Hazardous Substances, except that Lessee may use, if lawful, small quantities of common chemicals such as adhesives, lubricants and cleaning fluids in order to conduct business at the Premises. The consent of Lessor may be withheld by Lessor for any reason whatsoever, and may be subject to conditions in addition to those set forth below. It shall be the sole responsibility of Lessee to determine whether or not a contemplated use of the Premises is a Hazardous Substance use. B. In no event shall Lessee (i) release, discharge or dispose of any Hazardous Substances, (ii) bring any hazardous wastes as defined in RCRA onto the Premises, (iii) install or use on the Premises any underground storage tanks, or (iv) store any Hazardous Substances within one hundred feet (100') of the center line of any main track. C. If Lessee uses or permits the use of the Premises for a Hazardous Substance use, with or without Lessor's consent, Lessee shall furnish to Lessor copies of all permits, identification numbers and notices issued by governmental agencies in connection with such Hazardous Substance use, together with such other information on the Hazardous Substance use as may be requested by Lessor. If requested by Lessor, Lessee shall cause to be performed an environmental assessment of the Premises upon termination of the Lease and shall furnish Lessor a copy of such report, at Lessee's sole cost and expense. D. Without limitation of the provisions of Section 12 of this Exhibit B, Lessee shall be responsible for all damages, losses, costs, expenses, claims, fines and penalties related in any manner to any Hazardous Substance use of the Premises (or any property in proximity to the Premises) during the term of this Lease or, if longer, during Lessee's occupancy of the Premises, regardless of Lessor's consent to such use or any negligence, misconduct or sG•ict liability of any Indemnified Pasty (as defined in Section 12), and including, without limitation, (i) any diminution in the value of the Premises and/or any adjacent property of any of the Indemnified Parties, and (ii) the cost and expense of clean-up, restoration, containment, remediation, decontamination, removal, investigation, monitoring, closure or post-closure. Notwithstanding the foregoing, Lessee shall not be responsible fa' Hazardous Substauces (i) existing on, in or under the Premises prior to the earlier to occur of the commencement of the term of the Lease or Lessee's taking occupancy of the Premises, or (ii) migrating from adjacent property not controlled by Lessee, or (iii) placed on, in or under the Premises by any of the Indemnified Pasties; except where the Hazardous Substance is discovered by, or the contamination is exacerbated by, any excavation or investigation undertaken by or at the behest of Lessee. Lessee shall have the burden of proving by a preponderance of the evidence that any of the foregoing exceptions to Lessee's responsibility for Hazardous Substances applies. E. In addition to the other rights and remedies of Lessor under this Lease or as may be provided by law, if Lessor reasonably determines that the Premises may have been used during the term of this Lease or any prior lease with Lessee for all or any portion of the Premises, or are being used for any Hazardous Substance use, with or without Lessor's consent thereto, and that a release or other contamination may have occurred, Lessor may, at its election and at any time during the life of this Lease or thereafter (i) cause the Premises and/or any adjacent premises of Lessor to be tested, investigated, or monitored for the presence of any Hazardous Substance, (ii) cause any Hazardous Substance to be removed from the Premises and any adjacent lands of Lessor, (iii) cause to be performed any restoration of the Premises and any adjacent lands of Lessor, and (iv) cause to be performed any remediation of, or response to, the environmental condition of the Premises and the adjacent lands of Lessor, as Lessa• reasonably may deem necessary or desirable, and the cost and expense thereof shall be reimbursed by Lessee to Lessor within thirty (30) days after rendition of Lessor's bill. In addition, Lessor may, at its election, require Lessee, at Lessee's sole cost and expense, to perform such work, in which event, Lessee shall promptly commence to perform and thereafter diligently prosecute to completion such work, using one or more contractors and a supervising consulting engineer approved in advance by Lessor. F. For purposes of this Section 7, the term "Hazardous Substance" shall mean (i) those substances included within the definitions of "hazardous substance", "pollutant", "contaminant", or "hazardous waste", in the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. §§ 9601, et sec ., as amended or in RCRA, the regulatious promulgated pursuant to either such Act, or state laws and regulations similar to or promulgated pursuant to either such Act, (ii) any material, waste or substance which is (A) petroleum, (B) asbestos, (C) flammable or explosive, or (D) radioactive; and (iii) such other substances, materials and wastes which are or become regulated or classified as hazardous or toxic under airy existing or future federal, state or local law. Section 8, UTILITIES. A. Lessee will arrange and pay for all utilities and services supplied to the Premises for Lessee's use or to Lessee. Lessee will not pay for electricity to signs on Premises, except Lessee's signs. B. All utilities and services for Lessee's use will be separately metered to Lessee. If not separately metered, Lessee shall pay its proportionate share as reasonably determined by Lessor. Section 9. LIENS. Lessee shall not allow any liens to attach to the Premises for any services, labor or materials furnished to the Premises or otherwise arising from Lessee's use of the Premises. Lessor shall have the right to discharge any such liens at Lessee's expense. Section 10. ALTERATIONS AND IMPROVEMENTS: CLEARANCES. A. No alterations, improvements or installations may be made on the Premises without the prior consent of Lessor. Such consent, if given, shall be subject to the needs and requirements of the Lessor in the operation of its Railroad and to such other conditions as Lessor determines to impose. In all events such consent shall be conditioned upon sG•ict conformance with all applicable governmental requirements and Lessor's then-current clearance staodards. B. All alterations, improvements or installations shall be at Lessee's sole cost and expense C. Lessee shall comply with Lessa•'s then-current clearance standards, except (i) where to do so would cause Lessee to violate an applicable governmental requirement, or (ii) for any improvement or device in place prior to Lessee taking possession of the Premises if such improvement or device complied with Lessor's clearance standards at the time of its installation. D. Any actual or implied knowledge of Lessor of a violation of the clearance requirements of this Lease or of any governmental requirements shall not relieve Lessee of the obligation to comply with such requirements, nor shall any consent of Lessor be deemed to be a representation of such compliance. Section 11. AS-IS. Lessee accepts the Premises in its present condition with all faults, whether patent or latent, and without warranties or covenants, express or implied. Lessee acknowledges that Lessor shall have no duty to maintain, repair or improve the Premises. Section 12. RELEASE AND INDEMNITY. A. As a material part of the consideration for this Lease, Lessee, to the extent it may lawfully do so, waives and releases any and all claims against Lessor for, and agrees to indemnify, defend and hold harmless Lessor, its affiliates, and its and their officers, agents and employees ("hndemnified Pasties") fi'oro and against, any loss, damage (including, without limitation, punitive or consequential damages), injury, liability, claim, demand, cost or expense (including, without limitation, attorneys' fees and court costs), fine or penalty (collectively, "Loss") incurred by any person (including, without limitation, Lessor, Lessee, or any employee of Lessor or Lessee) for personal injury or property damage arising from or related to any use of the Premises by Lessee or any invitee or licensee of Lessee, any act or omission of Lessee, its officers, agents, employees, licensees or invitees, or any breach of this Lease by Lessee. B. The foregoing release and indemnity shall apply regardless of any negligence, misconduct or strict liability of any Indemnified Party, except that the indemnity, only, shall not apply to any Loss determined by final order of a court of competent jm•isdiction to have been caused by the sole active direct negligence of any Indemnified Party. C. Where applicable to the Loss, the liability provisions of any contract between Lessor and Lessee covering the carriage of shipments or trackage sewing the Premises shall govern the Loss and shall supersede the provisions of this Section 12. D. No provision of this Lease with respect to insurance shall limit the extent of the release and indemnity provisions of this Section 12. Section 13. TERMINATION. A. Lessor may terminate this Lease for Lessee's default by giving Lessee notice of termination, if Lessee (i) defaults under any obligation of Lessee under this Lease and, after written notice is given by Lessor to Lessee specifying the default, Lessee fails either to immediately commence to cure the default, or to complete the cure expeditiously but in all events within thirty (30) days after the default notice is given, or (ii) Lessee abandons the Premises for a period of one hundred hveuty (120) consecutive days. B. Norivithstanding the terms of this Lease set forth in Article II, Lessor or Lessee may terminate this Lease without cause upon thirty (30) day's written notice to the other pasty; provided, however, that at Lessor's election, no such termination by Lessee shall be effective unless and until Lessee has vacated and restored the Premises as required in Section 15A, at which time Lessor shall refund to Lessee, on a pro rata basis, any unearned rental paid in advance. Notwithstanding anything to the cm~tra~y in this Lease, if Lessee has not complied with the requirements of Section 15 A, this Lease, together with alt terms cmrtained herein (including payment of rent) will remain in effect until the requirements of Section 15A are met, unless Lessor, in its sole discretion, elects to terminate this Lease. Sectim~ 14. LESSOR'S REMEDIES Lessor's remedies for Lessee's default are to (a) enter and take possession of the Premises, without terminating this Lease, and relet the Premises on behalf of Lessee, collect and receive the rent from reletting, and charge Lessee for the cost of reletting, and/or (b) terminate this Lease as provided in Section 13 above and sue Lessee for damages, and/or (c) exercise such other remedies as Lessor may have at law or in equity. Lessor may enter and take possession of the Premises by self-help, by changing locks, if necessary, and may lock out Lessee, all without being liable for damages. Section 15. VACATION OF PREMISES; REMOVAL OF LESSEE'S PROPERTY A. Upon termination howsoever of this Lease, Lessee (i) shall have peaceably and quietly vacated and surrendered possession of the Premises to Lessor, without Lessor giving any notice to quit or demand for possession, and (ii) shall have removed from the Premises all structures, property and other materials not belonging to Lessor, including all personal property and restored the surface to as good a condition as the same was in before such struchires were erected, including, without limitation, the removal of foundations, the filling in of excavations and pits, and the removal of debris and rubbish. B. If Lessee has not completed such removal and restoration prior to termination of this Lease, Lessor may, at its election, and at any time or times, (i) perform the work and Lessee shall reimburse Lessor for the cost thereof within thirty (30) days after bill is rendered, (ii) take title to all or any portion of such structures or property by giving notice of such election to Lessee, and/or (iii) treat Lessee as a holdover tenant at will until such removal and restoration is completed. Section 16. FH1;ER OPTICS. Lessee shall telephone Lessor during normal business hours (7:00 a.m. to 9:00 p.m., Central Time, Monday through Fridays, except for holidays) at 1-800-336-9193 (also a 24-hour, 7-day number for emergency calls) to determine if fiber optic cable is buried on the Premises. Lessor may change the telephone number and hours of operation by giving Lessee notice of the change. If cable is buried on the Premises, Lessee will telephone the telecommunications compaoy(ies), arrange for a cable locator, and make arrangements for relocation or other protection of the cable. Norivithstanding compliance by Lessee with this Section 16, the release and indemnity provisions of Section 12 above shall apply fully to any damage or destruction of any telecommunications system. Section 17. NOTICES. Any notice, consent or approval to be given under this Lease shall be in writing, and personally sewed, sent by facsimile to (402) 501-0340, by email or by reputable courier service, or sent by certified mail, postage prepaid, return receipt requested, to Lessor at: Union Pacific Railroad Company, Attn: General Manager -Real Estate, Real Estate Department, 1400 Douglas Street, Stop 1690, Omaha, Nebraska 68179; and to Lessee at the above address, or such other address as a pasty may designate in notice given to the other party. Mailed notices shall be deemed served five (5) days after deposit in the U.S. Mail. Notices which are faxed, emailed, are personally served or sent by courier service shall be deemed served upon receipt. Section 18. ASSIGNMENT. A. Lessee shall not sublease the Premises, in whole or in pact, a' assign, encumber or transfer (by operation of law or otherwise) this Lease, without the prior consent of Lessor, which consent may be denied at Lessor's sole and absolute discretion. Any purported transfer or assignment without Lessor's consent shall be void and shall be a default by Lessee. B. Subject to this Section 18, this Lease shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns. Section 19. CONDEMNATION. If, as reasonably determined by Lessor, the Premises cannot be used by Lessee because of a condemnation or sale in lieu of condemnation, then this Lease shall automatically terminate. Lessor shall be entitled to the entire award or proceeds for any total or partial condemnation or sale in lieu thereof, including, without limitation, any award or proceeds for the value of the leasehold estate created by this Lease. Notwithstanding the foregoing, Lessee shall have the right to pursue recovery from the condemning authority of such compensation as may be separately awarded to Lessee for Lessee's relocation expenses, the taking of Lessee's personal property and fixtures, and the interruption of or damage to Lessee's business. Section 20. ATTORNEY'S FEES. If either pasty retains an attorney to enforce this Lease (including, without limitation, the indemnity provisions of this Lease), the prevailing pasty is entitled to recover reasonable attorney's fees. Section 21. RIGHTS AND OBLIGATIONS OF LESSOR. If any of the rights and obligations of Lessor under this Lease are substantially and negatively affected by any changes iu the laws applicable to this Lease, whether statutory, regulatory or under federal or state judicial precedent, then Lessor may require Lessee to enter into an amendment to this Lease to eliminate the negative effect on Lessor's rights and obligations to the extent reasonably possible. Section 22. ENTIRE AGREEMENT. This Lease is the entire agreement between the parties, as to the subject matter hereof, and supersedes all other oral or written agreements between the parties pertaining to this transaction, including, without limitation, Lease Audit No. and any other lease under which all or any portion of the Premises was leased to Lessee. Norivithstandingthe prior sentence, Lessee shall retain auy and all obligations and liabilities which may have accrued under any other such agreements prior to the commencement of the teem of this Lease. This Lease may be amended only by a written instrument signed by Lessor and Lessee, Approved: Insurance Gronp Created: 2110/06 Last Modlfled: 7/2/07 EXHIBIT C Uniml Pacific Railroad Couh•act Insuraace Requirements Lease of Land Lessee shall, at its sole cost and expense, procure and maintain during the life of this Lease (except as otherwise provided in this Lease) the following insurance coverage: A. C_ ommercial General Liability insurance. Commercial general liability (CGL) with a limit of not less than $1,000,000 each occurrence and an aggregate limit of not less than $2,000,000. CGL insurance must be written on ISO occurrence form CG 00 01 12 04 (or a substitute form providing equivalent coverage). The policy must also contain the following endorsement, which must be stated on the certificate of insurance: Contractual Liability Raih~oads ISO form CG 24 17 l0 O1 (or a substitute Fonn providing equivalent coverage) showing "Premises" as the Designated Job Site. B. Business Automobile Coverat=_e insurance. Business auto coverage written on ISO form CA 00 Ol 10 01 (or a substitute form providing equivalent liability coverage) with a combined single limit of not less $2,000,000 for each accident, and coverage must include liability arising out of any auto (including owned, hired, and non-owned autos). The policy must contain the following endorsements, which must be stated on the certificate of insurance: • Coverage For Certain Operations In Connection With Railroads ISO fam CA 20 70 10 O1 (or a substitute form providing equivalent coverage) showing "Premises" as the Designated Job Site. • Motor Carrier Act Endorsement -Hazardous materials clean up (MCS-90) if required by law. C. Workers Comnensation and Employers Liability insurance. Coverage must include but not be limited to: Contractor's statutolry liability under the workers' compensation laws of the state(s) affected by this Agreement. Employers' Liability (Part B) with limits of at least $500,000 each accident, $500,000 disease policy limit $500,000 each employee. If Lessee is self-insured, evidence of state approval and excess workers compensation coverage must be provided. Coverage must include liability arising out of the U. S. Longshoremen's and Harbor Workers' Act, the Jones Act, and the Outer Continental Shelf Land Act, if applicable. In any and all Claims against Lessor by any employee of Lessee, Lessee's indemnification obligation under this section shall not be limited in any way by any limitation on the amount or type of damages, compensation or benefits payable under any workers compensation acts, disability benefits acts or other emalovee benefits acts. D. Pollution Liability insurance. If permitted use as defined in this Lease includes any generation, handling, enrichment, storage, manufacture, or production of hazardous materials pollution liability insurance is required. Pollution liability coverage must be written on ISO fm•m Pollution Liability Coverage Form Designated Sites CG 00 39 12 04 (or a substitute form providing equivalent liability coverage), with limits of at least $5,000,000 per occurrence and an aggregate limit of $10,000,000. If hazardous materials are disposed of from the Premises, Lessee must furnish to Lessor evidence of pollution legal liability insurance maintained by the disposal site operator for losses arising from the insured facility accepting the materials, with coverage in minimum amounts of $1,000,000 per loss, and an annual aggregate of $2,000,000. >J. Umbrella or 1/xcess insurance. If Lessee utilizes umbrella or excess policies, these policies must "follow form" and afford no less coverage than the primacy policy. Other Requirements F. All policy(ies) required above must include Lessor as "Additional Insured" using ISO Additional Insured Endorsement CG 20 I1 (or a substitute form providing equivalent coverage), The coverage provided to Lessor as additional insured shall, to the extent provided under ISO Additional Insured Endorsement CG 20 11, provide coverage for Lessor's negligence whether sole or partial, active or passive, and shall not be limited by Lessee's liability under the indemnity provisions of this Lease. G. Lessee waives all rights against Lessor and its agents, officers, directors and employees for recovery of damages to the extent these damages are covered by the workers compensation and employers' liability or commercial umbrella or excess liability insurance obtained by Lessee required by this agreement. H. Punitive damages exclusion, if any, must be deleted (aud the deletion indicated on the certificate of insurance), unless (a) insurance coverage may not lawfully be obtained for any punitive damages that may arise under this Lease, or (b) all punitive damages are prohibited by all states in which the Premises are located. I. Prior to execution of this Lease, Lessee shall furnish Lessor with a certificate(s) of insurance, executed by a duly authorized representative of each insurer, showing compliance with the insurance requirements in this Lease. J. All insurance policies must be written by a reputable insurance company acceptable to Lessor or with a current Best's Insurance Guide Rating of A- and Class VII or better, and authorized to do business in the state where the Premises are located. K. The Fact that insurance is obtained by Lessee, a• by Lessor on behalf of Lessee, will not be deemed to release or dimiuislr the liability of Lessee, including, without limitation, liability under the indemnity provisions of this Lease. Damages recoverable by Lessor from Lessee or any third party will not be limited by the amount of the required insurance coverage. NOTE: BEFORE YOU BEGIN ANY WORK, SEE AGREEMENT FOR FIBER OPTIC PROVISION. EXHIBIT "A" UNION PACIFIC RAILROAD COMPANY SCHERTZ,TX M.P. -Subdivision Lease to SCHERTZ, CITY OF SCALE: 1" = 200' REAL ESTATE DEPARTMENT OMAHA, NE Date: April 14, 201 I Folder: 02572-73 'LEGEND" Lease Area Shown ..................................................................... Dot Screen (RR)R/W Outlined .................................................................... TOP OF FILE -AGREEMENT SHEET ROUTIAG: FOLDER 3 a- 3 - TO FOR EXECUTION L TO OPERATION SUPPORT FOR DISTRiBU170N (CHECK ATT'D -) - TO OPERAT]ON SUPPORT FOR TO'/~'~- FOR PIATI7NG - TO FOR FORM 72pp7 FOR USF. iN CMS_ (1dGR TO FURN]SH INFO) >~ CONTACT: 1~'EE PHONE: RE-EVAL DATE: 11ANAGER /~ 7/acs/~ ~ G2fl~%~nlc5 rF~.~n9 -'ASC APPROVALS RF.C'D: ~~ R SShr~l/ ,Qf111~~iNG ,gip; ~ ~~ APPRAISAL- OTHER APPRALSAL• NSTD7CAIlON: RENTAL COI,IPUTA?~ON; ~p X i % t~S = f (AREA) (DNff VALDE) NEVV RENTAL s rER (rRNo) FROti ~to~ Ray r~o~ DATE DATE DAiE DATE