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HomeMy WebLinkAboutPublic Facilities Corporation - 77-16 (�Czl DTE Huntington Beach Public 17ze ifics Corporation 17371 Gothard Street Huntington Beach, California 92647 RESOLUTION NO. 77-16 A RESOLUTION OF THE BOARD OF DIRECTORS APPROVING EXECUTION OF AN AGREEMENT FOR INDEMNIFICATION BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION WHEREAS, The Board of Directors of The Huntington Beach Public Facilities Corporation have expressed concerns with regard to liabilities which could be incurred in excess of insurance coverages; and WHEREAS , justification for indemnification is provided in Section 19 of the two Lease- Sub Lease Agreements; and WHEREAS , an indemnification agreement was presented to The Board at their regular meeting of .January 19 , 1977; NOW, THEREFORE, BE IT: RESOLVED, that The Board of Directors of The Huntington Beach Public Facilities Corporation approved the agreement by minute action on January 19 , 1977 , directed that the agreement be submitted to the City for execution, and granted authorization for the President and Secretary of the Board to execute the agreement upon receipt from the City. ... .... / Dated: t: ryes.' 6H-E .P.F.C. 1h Secre ry, H.B.P.F.C. Attest: b Donald W.. Kiser Assistant Secretary, H.B.P.F.C'. AGREEMENT THIS AGREEMENT is entered into this day of 1977, by and between the HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION, hereinafter referred to as the "Corporation" , and the CITY OF HUNTINGTON BEACH, a municipal corporation duly organized and existing by virtue of a charter adopted pursuant to the Constitution of the State of California in the State of California, hereinafter referred to as the "City. " W I T N E S S E T H WHEREAS, the City and the Corporation have hereto- fore entered into leases and, subleases dated January 15, 1972.9 and September 1, 1972, for the purpose of constructing and financing of a City Hall, Police Building, and Library Building and related facilities; and WHEREAS, under the terms of such lease and sublease , the corporation has caused to be issued its bonds for the purpose of financing such .facilities; and ZJHEREAS, the Corporation has executed indentures and deeds of trust dated January 15, 1972, and September 1, 1972, with the Bank of America National Trust and Savings Association as Trustee with regard to both indentures; and WHEREAS, by the terms of the leases and the inden tures, Corporation is required to secure various policies of insurance, to wit, such policies of insurance being required by identical Section 6 in the leases referred to and Covenant No. 10 in both indentures of mortgage and deeds of trust`; and . JG: er l 2/8/77 WHEREAS, the cost of said insurance is required to be borne by City; and WHEREAS, City desires to have the insurance required by the leases and indentures and deeds of trust procured by City; NOW, THEREFORE, the parties agree as follows : 1 . Subject to insurance policies being obtainable on the open market from reputable insurance companies, and subject to deductible limits in insurance policies where the amount of the deductible, in the opinion of the City, is deemed reasonable, the City agrees to purchase and continuously maintain at all times all necessary policies of insurance from reputable insurance companies required pursuant to the following: a. Huntington Beach Public Facilities Corporation and City of Huntington Beach Civic Center Lease and Sublease, dated as of January 15, 1972; b. Huntington Beach Public Facilities Corporation and City of Huntington Beach Library Lease and Sublease, dated as of September 1, 1972; C . Indenture of Mortgage and Deed of Trust by and between Huntington Beach Public Facilities Corporation and Bank of America National Trust and Savings Association, dated as of January 15, 1972; and d. Indenture of Mortgage and Deed of Trust by and between Huntington Beach Public Facilities Corporation and Bank of America National Trust and Savings Association, dated as of September 1, 1972. 2. 2. City agrees that it will carry loss payable endorsements in favor of the Bank of America National Trust and Savings Association as Trustee when required, and it further shall comply with all terms of the indentures and deeds of trust referred to in. Section 1(e ) and (d) of this Agreement with regard to notice and .depositing with Trustee of the appropriate policies and evidence of payment of premiums . 3. City further agrees to indemnify and hold harmless Corporation, members of the Board of Directors of Corporation, and the Bank of America National Trust and Savings Association as Trustee for any loss or damage, including attorney' s fees, by reason of the failure of City to purchase and maintain all insurance required by those instruments re- ferred to in Section 1 of this Agreement and for the amounts of the deductibles stated in Section 1 of this Agreement . 4 . Corporation agrees that it will not indepen- dently, without consent of City, negotiate directly for the insurance required pursuant to those documents referred to in Section 1 of this Agreement. IN WITNESS WHEREOF, the Corporation has caused this Agreement to be executed by its duly authorized officers and the City has caused this Agreement to be executed by the Mayor of said City and attested by the City Clerk thereof, as of the day and year first above written. HUNTINGTON BEACH PUBLIC FACILITIES CORPORATION By "s d"e By L/ (Seal) ecretAry 3. CITY OF HUNTINGTON BEACH ATTEST: By Mayor City Clerk REVIEWED AND . APPROVED: APPROVED AS TO FORM: Ci y Administrator City , ttorney INITIATED AND APPROVED AS TO CONTENT: �1 . i RESOLUTION NO: ,?y/ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AUTHORIZING THE EXECUTION OF AN AGREEMENT INDEMNIFYING THE PUBLIC FACILITIES CORPORATION FOR ANY LIABILITIES WHICH MAY BE INCURRED BY THE POSSIBILITY OF CITY'S INADEQUATELY INSURING THE CIVIC CENTER AND NEW LIBRARY t WHEREAS, the City Council of the City of Huntington Beach has entered into Lease/Sublease Agreements with the Public Facilities Corporation dated January 15, 1972 for the -civic center and September 1, 1972 for the new library; and Section 5 of both documents provides that the City shall pay insurance premiums as part of the rent, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach that it .hereby authorizes and directs the Mayor and City Clerk to execute the attached agreement which holds the Public Facilities Corporation harmless by reason of { the failure of the City to purchase and maintain all insurance i. required by said Lease/Sublease Agreements . PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 22nd day of February, 1977 . ATTEST: Mayor City Clerk REVIEWED AND APPROVED AS APPROVED AS TO FORM: INITIATING DEPARTMENT: oel ity Administrator y Attorn /+ JG : cs �PLH PUBLIJ,P t o� Huntington Beach Public Facilities Corporation 6.7 INCORPORATED ,r 17371 Gothard Street i NOVEMBER z7.1970 Huntington Beach, California 92647 - CAL IF 000k January 21, 1977 Honorable Mayor and Members of the City Council Attention: Floyd G. Belsito, City Administrator Transmitted herewith is an Agreement indemnifying the Huntington Beach Public Facilities Corporation, the Board of Directors, and the Trustee for any liabilities which may be incurred as a result of the insurance coverages of the two fa- cilities. Additionally, I have enclosed a copy of the letter from the Corporation' s legal counsel and a copy of a Resolution adopted by the Board at their Regular Meeting of January 19, 1977. The Board of Directors will appreciate the processing, execution, and return of the Agreement within thirty (30) days. Please advise should you need further information. Very truly yours, Donald W. Kiser, Assistant Secretary, HBPFC DWK:ajo cc: File Directors n