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Home My WebLink AboutPCH BEACH RESORT, LLC - 2001-09-17 1 Council/Agency Meeting Held: Deferred/Continued to: Approved 0 Con ' ionaiiy Approved ❑ Denied 1&� y Cte Signature Council Meeting Date: September 17, 2001 Department ID Number: CS01-063 CITY OF HUNTINGTON BEACH Q L REQUEST FOR COUNCIL ACTION =� ti SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS tz ,- rn SUBMITTED BY: RAY SILVER, City Administratorau,/ PREPARED BY: RON HAGAN, Director, Community Service SUBJECT: APPROVE REIMBURSEMENT AGREEMENT WITH PCH BEACH: RESORT, LLC FOR COSTS INCURRED IN CHANGING THE SOUTH BEACH PHASE I IMPROVEMENTS PLAN IFI-tIM11-101 Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: There is a need to approve an agreement with PCH Beach Resort, LLC (PCH) for reimbursement to the city of costs incurred during the South Beach Phase I Improvements to accommodate the view corridor of the new Hyatt Regency Huntington Beach, Resort & Spa (Hyatt). Funding Source: NIA; PCH will reimburse the city for all costs. Funds will be abated to South Beach Phase I Improvements Project Account #30187003-82200. Recommended Action: Motion to: Approve the Reimbursement Agreement with PCH Beach Resort, LLC, and direct the Mayor and City Clerk to execute same. Alternative Actions : Do not approve the reimbursement agreement with PCH and absorb the costs of the changes in the South Beach Phase I Improvements Project. Analysis: The South Beach Phase I Improvements began construction in advance of the construction of the new Hyatt Regency Huntington Beach, Resort & Spa (Hyatt). During meetings with PCH and Hyatt representatives, it was discovered that the rest room facility adjacent to The Beach Hut food concession on the beach was scheduled to be located in the direct site line of the lobby entrance of the Hyatt. Consequently, PCH requested that the city flip flop the open space adjacent to the rest room with the rest room itself in order to facilitate the view corridor. The cost of this change order is as follows: Design engineering permits $13,600 Change order 21,000 $34,600 f • REQUEST FOR COUNCIL ACTT MEETING DATE: September 17, 2001 DEPARTMENT ID NUMBER: CS01-063 The reimbursement agreement requiring PCH to pay for the costs of this change order is for up to $50,000. If some unknown is encountered during the construction change and the cost actually exceeds $50,000, PCH will reimburse the city for the additional cost upon first securing PCH's approval. Time is of the essence in order not to incur additional costs resulting from construction delays. This change will not affect parking, beach trail, access or any other elements of the South Beach Phase I Improvements. The change simply flip-flops an open space element with the proposed rest room in order to move the rest room south of the view corridor of the lobby of the Hyatt Regency Huntington Beach, Resort & Spa. Attachment 1 shows the design change. Environmental Status: NIA Attachment(s): City Clerk's P. . - NumberDescription 1 Reimbursement Agreement w/PCH Beach Resort, LLC .. ...........:::............: .........::.> 2 Design change RCA Author: RH:cr cs01-063 reimbursement by Mayer.doc -2- 09/12/01 11:45 AM Fj CITY OF HUNTINGTON BEACH e 2000 MAIN STREET CALIFORNIA 92648 , OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/ REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DATE: — September 27`-2001 TO: PCH Beach Resort, LLC ATTENTION: Robert L. Mayer Name 660 Newport Center Dr. , Suite 1050 DEPARTMENT: street Newport Beach, CA 92660 REGARDING: Reimbursement City,State,Zip Agreement See Attached Action Agenda Item B-16 Date of Approval 09-17-01 Enclosed For Your Records Is An Executed Copp Of The Above Referenced Agenda Item. 6, Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page, x Agreement x Bonds Insurance RCA Deed Other CC: R. Hagan Cam. Serv. x x Nazne Department RCA Agreement insurance Other tune Deputtnent. RCA Ageemcr; iasttrance Other Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Name ^� Department RCA Insurance (Telephone:714-536-5227) ATTACHMENT # 1 REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND PCH BEACH RESORT, LLC FOR COSTS INCURRED IN CHANGING THE SOUTH BEACH PHASE I IMPROVEMENTS PLAN THIS AGREEMENT ("Agreement") is made and entered into this 17th day of September__ , 2001, by and between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California, hereinafter referred to as "City," and PCH BEACH RESORT, LLC, a California limited liability company, hereinafter referred to as "PCH." WHEREAS, City has existing plans to construct a concession stand, rest room facility, and art display in the South Beach Phase I Improvements adjacent to the Beach Hut concession along a beach front within the City of Huntington Beach; and PCH has plans to build a Hyatt Regency Grand Resort hotel and conference center across Pacific Coast Highway from this same beach front; and As currently planned, City's rest room facility will be within the line of sight of the Hyatt Regency Grand Resort's entry lobby, main restaurant and lobby lounge; and PCH considers a view of a rest room facility to be a visual blight and an eyesore for guests and visitors inside the Hyatt Regency Grand Resort; and PCH desires that City exchange the location of the rest room facility with that of the art display, so that the art display, and not the rest room facility, will be in the line of sight of the Hyatt Regency Grand Resort's entry lobby, main restaurant and lobby lounge; NOW, THEREFORE; in consideration of the promises and agreements hereinafter made and exchanged, the parties agree as follows: 1 01 agree/South Beach Improvement agreement with Hyatt.doc 9:1 M I 1. STATEMENT OF INTENT The parties anticipate that the total cost for any and all changes resulting from PCH's request to switch the locations of the rest room facility and art display will be less than Fifty Thousand Dollars (550,000.00). PCH will reimburse City for all of these costs, up to a limit of $50,000.00. If these costs exceed more than 550,000.00, then City will seek PCH's prior approval before proceeding with the changes, which exceed the 550,000.00 limit. 2. PAYMENT Upon completion of the construction of the subject restroom facility and art display, City will send PCH a bill for all of the costs associated with the changes set forth in this Agreement. Within thirty(30) days of receiving this bill, PCH will pay City in full the amount therein noted. A late payment fee of ten percent (10%)will be assessed if City receives the payment later than the thirtieth (30th) day after PCH receives City's bill. In addition, one and one-half percent (I % %) interest per month shall be added for each month the payment hereunder is due but unpaid. 3. EXCLUSIVE CONTROL BY CITY City will maintain exclusive control over the work described herein. Nothing in this Agreement: A. Shall be deemed to require City to approve any plan, proposal, suggestion, application, or request submitted by PCH. B. Shall be deemed to impose any liability on City different from any liability as may otherwise be established by law. 2 01agreeiSouth Beach Improvement agreement with Hyatt.doc:`9 12/01 4. TERMINATION The parties may terminate this Agreement by mutual agreement. 5. NON-RECORDING PCH will not record this Agreement. 6. HOLD HARMLESS PCH shall protect, defend, indemnify and save and hold harmless City, its officers, official, employees, and agents from and against any and all liability, loss, damage, expenses, costs (including without limitation, costs and fees of litigation of every nature) arising out of or in connection with this Agreement and/or the switch of the locations of the rest room facility and art display, except such loss or damage which was caused by the active negligence, sole negligence or willful misconduct of City. City shall be reimbursed by PCH for all costs and attorney's fees incurred by City in enforcing this obligation. 7. MODIFICATIONS No waiver or modification of any language in this Agreement shall be valid unless in writing and duly executed by both parties. 8. NOTICES All notices, certificates, or other communications hereunder shall be sufficiently given and shall be deemed received when (a)personally delivered; or(b) three (3) business days after being deposited in the United States mail in registered form with postage fully prepaid; or (c) one (1)business day after being sent by reputable overnight courier, in each case to the addresses specified below; provided that City and PCH,by notice given hereunder, may designate different addresses to which subsequent notices, certificates, or other communications will be sent: 3 Olaereelsouth Beach Improvement agreement with Hyatt.doc/9:1 2/0 1 To City: To PCH: Director of Community Services Robert L. Mayer, Chairman City of Huntington Beach PCH Beach Resort, LLC 2000 Main Street, Box 190 660 Newport Center Drive, Suite 1050 Huntington Beach CA 92648 Newport Beach CA 92660 9. SECTION HEADINGS The titles, captions, section, paragraph, subject headings and descriptive phrases at the beginning of the various sections in this Agreement are merely descriptive and are included solely for convenience of reference only and are not representative of matters included or excluded from such provisions, and do not interpret, define, limit or describe, or construe the intent of the parties or affect the construction or interpretation of any provision of this Agreement. 10, INTERPRETATION OF THIS AGREEMENT The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties. If any provision of this Agreement is held by an arbitrator or court of competent jurisdiction to be unenforceable, void, illegal or invalid, such holding shall not invalidate or affect the remaining covenants and provisions of this Agreement. No covenant or provision shall be deemed dependent upon any other unless so expressly provided here. As used in this Agreement, the masculine or neuter gender and singular or plural number shall be deemed to include the other whenever the context so indicates or requires. Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is any conflict between any provision contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no right to contract, then the latter shall prevail, and the 4 0 1 agree/South Beach Improvement agreement with Hyatt.doc.:9/12101 provision of this Agreement which is hereby affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 11. DUPLICATE ORIGINAL The original of this Agreement and one or more copies hereto have been prepared and signed in counterparts s duplicate originals, each of which so executed shall, irrespective of the date of its execution and delivery,be deemed an original. Each of the parties hereto shall retain an originally signed copy hereof. Each duplicate original shall be deemed an original instrument as against any party who has signed it. 12. ATTORNEY'S FEES Except as expressly set forth herein, in the event suit is brought by either party to enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees. 13. GOVERNING LAW AND VENUE This Agreement shall be governed by the laws of the State of California and any and all actions initiated under or as a result of this Agreement shall be brought solely and exclusively in a court of competent jurisdiction in the County of Orange, State of California and no other court. 14. ENTIRETY The Agreement contains the entire agreement between the parties respecting the subject matter of this Agreement and supercedes all prior understanding and agreements whether oral or in writing between the parties respecting the subject matter hereof. [SIGNATURES ON NEXT PAGE] 5 Olaeree.%South Beach Improvement agreement with Hyatt.doc.'91'12.,Ol LN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized offices the day, month and year first above written. PCH BEACH RESORT, LLC, CITY OF HUNTLNGTON BEACH, a California limited liability company, a municipal corporation of the State of California By. GRAND RESORT, LLC, a California limited liability company, MalWr Managing Member By: RLM Management, Inc., a California corporation, Manager ATTEST: By: d.�V .G ��w obert L. Mayer, Ch an City Clerk APPROVED AS TO FORM: By: �\ Robert L. a14 Secretary ity Attorney INITIATED A PROVED: Director of C6Rimumty Services REVIEWED AND APPROVED: City inistrator G 01 agree South Beach Improvement agreement with Hyatt.doc.%`12 01 ATTACHMENT #2 TRASH(F.�..Sr5;- ;=i' ;;��.:.: ,:.:_...yy.�y-i-�-=1,,• : :'fie:. :;• • .� ART. ENCLOSURE .,a k s. �+ ' .c.•i "`, t '•;t•,._�i- +_ 'i' RAMP FROM TR9C1 G -:�� :' t• TO CON PtA#FTEn PLANTER AREA AREA 4 �. WS S r C JAMP) 41 .. ,.::'Gam':_ .• '� ..-. - ._....,.... .. `.�';-, r.R.,.'r'•':;;. +'r � +'�`.nyr't+N.M.�j,'. ':�'�• ..}�'{:r 'ir.}. •,fir r. ..__ � �� :•a - - - _ . . _ .. ti .p ,. SHOWER _.._._._ .,__..__._.. _ ... c &1Cn& TRA+L' k VOICE F; `N OF RES ROOM - FROM -• FAX NO. u 1. 05 2001 04:16PM P3 F � C . I f (� a� I .. ...... ........ ....... f RCA ROUTING SHEET INITIATING DEPARTMENT: COMMUNITY SERVICES SUBJECT: APPROVE REIMBURSEMENT AGREEMENT WITH ROBERT J. MAYER CORP. COUNCIL MEETING DATE: September 17, 2001 .............. . . . .............. . .................................. ... ................... RCA ....... .. .................................... STATUS..... ............ Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Attached Contract/Agreement (wlexhibits if applicable) (Signed in full by the City Attomey) Attached Subleases, Third Party Agreements, etc. (AppLoved as to form by qLtZ Attomey)_ Not Applicable Certificates of Insurance (Approved by the City Attomg) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Not Applicable Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable ...... .. . ......... . .. .... . ......... .. ...... . .......... ... .................. M 1EXPLANATIOWFOR ISSING-AT-T.ATTACHMENTS .. . . . .. .... . . .... .............. .......REVIEWE.D...... ..... ...... ........... .... E URN ED FORWARDED' .............. Administrative Staff Assistant City Administrator (Initial) City Administrator (initial) City Clerk ............................................ ........................ ............ ...... .......... . .......... . .......... ............ ............ EXPLANATION-:FOR-: RET- -,URN'0F.---.JTE-M ...... .. ..... .. .. ................ ..................... (Below Space For City Clerk's Use Only) RCA Author RH:cr