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HomeMy WebLinkAboutF-3b - Newport Beach Aquatic CenterBY 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 } �r Robert H. $,,urnham pity Attorney RHB/jc Attachments