HomeMy WebLinkAboutHUNTINGTON BEACH PUBLIC FACILITIES CORPORATION - 1977-02-22THIS AGREEMENT!' is entered ;into this V 1.4day of
XA_ , 1977, by and between the HUNTINGTON BEACH
PUBLIC FACILITIES CORPORATION, hereinafter referred to as
the "Corporation", and the CIT'. OF HUNTINGTON BEACH, a municipal
corporation duly organized and existing by virtue of a charter
adf)pted puyzuant to the Constitution of the State of California
in the State of California, hereinafter referre(: to as the "'City."
W I T N E S S E T H:
NHEREAS, the City and the Corporation have hereto-
fore entered into leases and subleases dated January 15, 1972,
and September 1, 1972, for the purpose of constructing and
financing of a City Hall, Police Building, and LibrarJ Building
and related facilities; and
ITHERFAS, 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
IMEREAS, the Corporation has executed indentures
and deeds of trust dated January 15, 19T2, and September 1, 1972,
with the Bank of America National Trust and Savings Association
as Trustee with regard to both indenture:,,; and
WHEREAS, by the terms of the leases and the ii,den-
tures, Corporation is required to secure various policies of
insurance, to wit, such policies of insurance being required
by identical Section 6 in the Teases -eferred to and Covenant
No. 10 -'s. both indentures of mortgage and deeds of trust; and
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2/8/77
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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 tiie 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 Hu6,Ington Beach Public. Facilities Corporation and
Bank of America National Trust and Savings Association, dated
as of Ja aary 1.5, 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(c) and (d) of this
Agreement with regard to notice and depositing rTith 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 rea-son 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 exe. ted by the
Mayor of said City and attested by the City Clerk thereof,
as of the day and year first above written.
(Seal)
HUNTINGTON BEACH PUBLIC
FACILITIES CORPORATION
Byf,
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CITY OF HUNTINGTON BEACH
ATTEST:
Alicia M. Wentworth _ By e(
City Cleric Mayor
Deputy City Clerk
REVIEWED AND APPROVED: APPROVED AS TO FOPM:
City Administrator City Attorney
INITIATED AND APPROVED AS TO CONTENT:
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Pu8tr" 4�
C7 INCORPORATED �
NOVEMs E.R 27.1 L70
�CAt IF OR��i'
February 15, 1977
Huntington Beach Public Facilities Corporation
17371 Gothard Street
Huntington Beach, California 92647
TO: HONORABLE MAYOR AND MEMBERS
OF THE CITY COUNCIL
ATTENTION: FT,OYD G. BELSITO
Transmitted herewith is an Agreement between the City of Hunt-
ington Beach and the Huntington Beach Public Facilities Corporation,
accompanied by a Resolution of your Honorable Body authorizing execu-
tion of the Agreement. The Agreement provides for idemnification of
the HBPFC and the Trustee for the bond monies of the Civic Center and
Central Library in the event the City provides insurance coverage of
the facilities which may be Less than that required by the Covenants
of the Lease/Sublease and Indenture for each project.
It is recommended that your Honorable Body adopt the Resolution
and execute the Agreement.
The basic need for this N.greement lies in the fact that the bond
documents require specific coverajes of insurance and any amount less
than that could effect a liability on the Corporation or the Trustee.
As cost;: of insurance are increasing and recent policy changes in the
area of Risk Management can save the City substantial sums by arrang-
ing for high deductible policies, this Agreement will allow the city
to pursue economical coverage and indemnify the HBPFC and the Trustee.
Very truly yours,
Donald W. Kiser,
Assistant Secretary -
HBPFC
DWK:ajo
Encl.2
cc: PFC Directors
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RESOLUTION NO. 4417
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HUNT1""TON BEACH AUTHORIZING THE EXECUTION OF AN
AGRE:`MrVT INDEMNIFYING THE PUBLIC FACILITIES
CORPORHTION FOR ANY LIABILITIES WHICH MAY BE
INCURRED BY THE POSSIBILITY OF CITY'S INADEQUATELY
INSURING THE CIVIC CENTER AND NEW LIBRARY
WHEREAS, the City Council of the City of Huntington Beach
has entered into Lease/Sublease Agreements wit), ne Public
Facilities Corporation dated January 15, 1972 the civic
center and September 1, 1972 fer the new librar.; 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
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:
Alicia M. Wentworth
City Clerk _ Mayor
Deputy City Clerk
REVIEWED AND APPROVED AS
INITIATING DEPARTMENT:
ity Administrator
JG:cs
APPROVED AS TO FORM:
cam: it r�rT
J
. No. 4417
STATE OF CALIFORNIA )
COUNTY OF ORANGE
CITY OF HUNTING'TON BEACH )
s.
I, ALICIA M. WENTWORTH, the dull elected, qualified City
Clerk of the City of Huntington Beach, and ex-officio Clerk of the
City Council of said City, do hereby certify that the whole number of
members of the City Council of the City of Huntington Beach is seven;
that the foregoing resolution was passed and adopted by the affirmative
vote Gf more than a majority of all the members of said City Council
at a regular meeting thereof held on the 22nd day
of February_, 19 77 , by the following vote:
AYES: Councilmen:
Bartlett, Pattinson, Coen, Gibbs, Siebert, Wieder
NOES: Councilmen:
None
ABSENT: Councilmen:
Shenkman
Alicia M. Wentworth
City Clerk and ex-officio Clerk
of the City Council of the City
of Huntington Beach, California
By
Deputy* City Clerk
-.%- - -�� 0 0
Huntington Desch Ifs Ue Faeflafles Corporan"®.
f,7 IMCDRPUt1ATED m 17371 Gothard Street
MONEMGEA:1.1970 yr Huntington Beach, California 92647
d 4 ,
�ItRESOLUTION NO.77-15
'A11F' 09'3"
A RESOLUTION OF THE BOARD OF DIRECTORS
APPROVING EXECUTION OF AN AGREEMENT
FOR INDEMNIFICATION BETWEEN THE CITY
OF HUNTINGTON 3EACH 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 liabi?.itie: 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 '-'ity for execution, and granted authorization
for the President and Secretary of the Board to execute the
agreement upon receipt from the City.
Dated:
Secre( ry, H.B.P.F.C.
Attest:
Donal W. Kiser
Assistant Secretary,
H.B.P.F'.C.