HomeMy WebLinkAbout02-09-1987 Item #F-3bBY Tlif CITY COUNCIL
CITY OF NFRORT BEACH
FEB 9 oaa
MEMORANDUM
Agenda Item No. F -3(b)
4L4�1 L-d—�---OFF I CE OF THE C I TY ATTORNEY
February 4, 1987
TO: Honorable Mayor and Members of the City Council
FROM: Robert H. Burnham, City Attorney
RE: Newport Beach Aquatic Center C —ZZ,jI
On January 26, 1987, the City Council reviewed the
progress of the proposal to construct an Aquatic Center on North
Star Beach. The Council was provided with copies of a proposed
Lease, letter agreement with the Coastal Commission, and Joint
Powers Agreement for the administration of the project. This
Memo explains minor changes made to these documents and
recommends Council approval.
A. Ground Lease:
Minor changes have been made to the ground lease
submitted for Council review on January 26, 1987. The major
features of the ground lease can be summarized as follows:
1. The term of the lease is 25 years;
2. The lease does not become effective until the
Aquatic Center has complied with all conditions to approval and
provided proof of their ability to complete at least 35% of the
project;
3. Construction shall proceed in accordance with
a schedule approved by the Building Director and no more than
three phases of construction are permitted;
4. The Aquatic Center shall maintain the
facilities and premises and pay all possessory interest taxes and
utilities;
Memo to the Honor, --Ie Mayor and
Members of the City Council
Page 2
February 4, 1987
5. During the construction phase, the contractor
shall provide at least $1,000,000 in insurance coverage and,
prior to occupancy, the City must be an additional named insured
on a policy maintained by the Aquatic Center providing at least
$1,000,000 in coverage;
6. The leasehold interest may not be assigned,
transferred, or used as security for any loan;
7. A facility management plan shall be approved
prior to occupancy and failure to conform with the plan
constitutes a material breach of the lease;
8. Upon expiration of the lease, the City becomes
the owner of all of the improvements.
There is a possibility that some minor changes may
need to be made subsequent to Council approval, and for that
reason, we are recommending the Council authorize the Mayor to
execute a lease substantially similar to that attached to this
Memo.
B. Coastal Commission Conditions:
Coastal staff has reviewed the proposed letter
agreement confirming the co -applicant's commitment to comply with
the Commission conditions. They have required certain minor
modifications to the letter. (Exhibit "B" to this Memo.) Staff
does not believe these changes are significant.
C. Joint Powers Agreement:
Conversations with County staff have resulted in
certain changes to the proposed Joint Powers Agreement. The
principal change is a requirement the City hold the County
harmless from any loss or liability resulting from the negligent
or wrongful act of the City in approving the lease, approving the
plans, or conducting building inspections. This indemnification
clause is much more limited than that originally proposed by the
County and staff has no problem with the current language. The
revised Joint Powers Agreement is attached as Exhibit "C."
Recommendation:
It is recommended that:
1. The City Council authorize the Mayor and City Clerk
to execute a Ground Lease for a portion of the North Star Beach
Memo to the HonorL_,le Mayor and
Members of the City Council
Page 3
February 4, 1987
with the Newport Beach Aquatic Center in a form substantially
similar to the lease attached to this Memo as Exhibit "A;"
2. The City Council authorize the Mayor to execute a
letter agreement with the Coastal Commission obligating the City
and Aquatic Center to comply with the conditions of approval to
Coastal Permit No. 5-84-786, unless those conditions are waived
or modified by the Commission, the Agreement to be in
substantially the same form as the letter attached to this Memo
as Exhibit "B;" and
3. The City Council authorize the Mayor and City Clerk
to execute a Joint Powers Agreement with the County of Orange
authorizing the City of Newport Beach to take certain action on
behalf of the County with respect to the project, the Joint
Powers Agreement to be in substantially the same form as the
Agreement attached to this Memo as Exhibit "C."
IL
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Robert H. $,,urnham
pity Attorney
RHB/jc
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