HomeMy WebLinkAbout16 - Insurance Requirements for Balboa Theater Lease�dEw�Rr
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CITY OF NEWPORT BEACH
COMMUNITY AND ECONOMIC
DEVELOPMENT
PLANNING DEPARTMENT
3300 NEWPORT BOULEVARD
NEWPORT BEACH, CA 92658
(714) 644 -3200; FAX (714) 644 -3250
Hearing Date:
Agenda Item
No.:
Staff Person:
REPORT TO THE MAYOR AND CITY COUNCIL
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16
Sharon Z. Wood
(949) 644 -3222
SUBJECT: Amendment to Insurance Requirements of Balboa Theater Lease
SUGGESTED
ACTION: Approve amendment reducing comprehensive general liability
insurance to $2,000,000.
The City Council approved a lease agreement with the Balboa Performing Arts Theatre
Foundation on November 23, 1998. The lease requires the lessee to maintain comprehensive
general liability insurance in an amount not less than $5,000,000.
The Foundation has requested that the insurance amount be reduced to $2,000,000, so that the
cost of premiums can be reduced from $6,000 to $2,500. The City's Risk Manager recommends
that $2,000,000 is sufficient because the lease limits use of the property to performances, events
and fund - raising activities. The only third parties that the Foundation may allow to use the
theater are nonprofit civic, charitable, educational and community organizations for fund - raising,
education or community events. The proposed lease amendment requires that such third parties
provide the same comprehensive general liability insurance as the Foundation.
SHARON Z. WOOD
Assistant City Manager
Attachment: First Amendment to Lease By and Between the City of Newport Beach and the Balboa Performing Arts
Theatre Foundation
M
FIRST AMENDMENT TO
LEASE BY AND BETWEEN THE CITY OF NEWPORT BEACH
AND
THE BALBOA PERFORMING ARTS THEATRE FOUNDATION
This Amendment, entered into as of September , 1999, (Effective Date) by
between the City of Newport Beach, a Charter City and municipal corporation ( "Lessor")
and Balboa Performing Arts Theatre Foundation ( "Lessee "), is made with reference to
the following:
RECITALS
A. Lessor and Lessee entered into the subject lease as of November 23, 1998.
B. The parties agree that the insurance requirements in the original Lease are
greater than needed for protection of the public interest, and desire to amend
those requirements so as to increase the Foundation's economic viability and
ability to meet the other requirements of the Lease.
NOW, THEREFORE, Lessor and Lessee hereby agree as follows:
ARTICLE 1 AMENDMENT TO ARTICLE 16, INSURANCE
Paragraph 16.1.1 of the Lease is amended to read as follows:
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16.1.1 Comprehensive General Liability in an amount not less than two
million dollars ($2,000,000) combined single limit per occurrence.
Lessor and its officials, employees and representatives shall be
covered as additional insureds with respect to liability arising out of
activities by or on behalf of Lessee or in connection with the use or
occupancy of the Property. Coverage shall be in a form acceptable
to Lessor and shall be primary and non - contributing with any
insurance or self- insurance maintained by Lessor or Lessee. Any
third party permitted to use the Property pursuant to Paragraph 8.1
of this Lease shall provide the same insurance, unless this
requirement is waived or modified, in writing, by Lessor's City
Manager.
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ARTICLE 2 NO AMENDMENTS TO REMAINDER OF LEASE
is All other provisions of the Lease shall remain in force and effect in their original form.
FOR LESSOR
CITY OF NEWPORT BEACH
Dennis O'Neil
Mayor
FOR LESSEE
BALBOA PERFORMING ARTS
THEATRE FOUNDATION
Dayna Pettit
President
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APPROVED AS TO FORM
CITY OF NEWPORT BEACH
Robert H. Burnham
City Attorney
ATTEST:
CITY OF NEWPORT BEACH
LaVonne Harkless
City Clerk
Dated
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