HomeMy WebLinkAbout07 - Amendment No. 1 To Lease Agreement for Harbor Day SchoolQ �EwPpRT
CITY OF
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z NEWPORT BEACH
<,FORN'P City Council Staff Report
July 14, 2020
Agenda Item No. 7
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Lauren Wooding Whitlinger, Real Property Administrator
Iwooding@newportbeachca.gov
PHONE: 949-644-3236
TITLE: Amendment No. One To Lease Agreement Between the City of
Newport Beach and Harbor Day School
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In August 2014, the City of Newport Beach ("City") and Harbor Day School ("Harbor Day")
entered into a Lease Agreement Between the City and Harbor Day ("Lease") for use of a
portion of the City -owned Big Canyon Reservoir site for queueing of vehicles during
student morning drop-off and afternoon pick-up, along with parking during school events.
Harbor Day is rebuilding its campus and is seeking City Council consideration for
Amendment No. One to the Lease ("Amendment"), to temporarily allow Harbor Day
employees to park on a portion of the Big Canyon Reservoir site during construction.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Authorize the City Manager and City Clerk to execute Amendment No. One To Lease
Agreement Between the City of Newport Beach and Harbor Day School, in a form
substantially similar to the agreement attached to the staff report.
FUNDING REQUIREMENTS:
There is no fiscal impact related to this item.
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Amendment No. One To Lease Agreement Between the City of Newport Beach and
Harbor Day School
July 14, 2020
Page 2
DISCUSSION:
Background
The existing Harbor Day campus, located at 3443 Pacific View Drive, was approved by
Use Permit No. UP1540 on September 2, 1971, with subsequent project approvals during
the 1980s and 1990s for the addition of offices, classrooms, restrooms, a gymnasium,
labs and studio areas. In April 2014, the Planning Commission approved Conditional Use
Permit UP2013-024 to allow an increase in the enrollment at Harbor Day, and the addition
of off-site parking.
Big Canyon Reservoir, located at 3300 Pacific View Drive ("Property"), is across the street
from Harbor Day's campus, and is owned by the City. The Property is subject to certain
covenants, conditions, restrictions and easements reserved for the benefit of The Irvine
Company. In 2014, pursuant to authorization from The Irvine Company, the City and
Harbor Day entered into a Lease for use of a portion of the Property, for queueing of
vehicles during student morning drop-off and afternoon pick-up along with parking during
school events. The queuing lot has improved access and traffic circulation on Pacific View
Drive and the surrounding streets.
Last year, the Planning Commission approved a major site development review and minor
use permit to allow the demolition of the existing facility and construction of new buildings
totaling approximately 99,607 square feet in gross building area, including a new
performing arts/gymnasium building. In order to continue operating the school during the
extensive redevelopment of the Harbor Day campus, several changes will be made during
construction including temporary portable classrooms and relocation of employee
parking. To accommodate these temporary operational changes, Harbor Day requested
a modification to the Lease.
The Irvine Company provided a written consent to temporarily allow Harbor Day to modify
use of the queuing and parking lot during construction, which proposed changes are
outlined in Exhibit B-1 of the Amendment (Attachment A).
Summary of Terms
The proposed terms of Amendment No. One To Lease Agreement Between the City of
Newport Beach and Harbor Day School are summarized below:
The Amendment will allow Harbor Day to temporarily operate a portion of the
Property to accommodate employee parking, subject to the modified queueing
plan, for three (3) years from the date of the Amendment.
2. Harbor Day is required to restripe the Property back to its current condition, upon
completion of construction.
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Amendment No. One To Lease Agreement Between the City of Newport Beach and
Harbor Day School
July 14, 2020
Page 3
3. Harbor Day shall bear all costs associated with the modifications to the Property
as a result of parking lot restriping.
4. Harbor Day shall indemnify, defend and hold the City harmless related to this
Amendment.
The Amendment has been reviewed by the City Attorney's Office and has been approved
as to form.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING -
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — Amendment No. One To Lease Agreement
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ATTACHMENT A
AMENDMENT NO. ONE TO LEASE AGREEMENT
BETWEEN THE CITY OF NEWPORT BEACH AND
HARBOR DAY SCHOOL
This AMENDMENT NO. ONE TO LEASE AGREEMENT ("Amendment No. One")
is made and entered into as of this 14t� day of July, 2020 ("Effective Date"), by and
between the City of Newport Beach, a California municipal corporation and charter city
("City"), and Harbor Day School, a California nonprofit corporation ("Tenant"). City and
Tenant may be individually referred to herein as a "Party," and collectively referred to
herein as the "Parties."
RECITALS
A. City is the owner of the property, structures, and improvements commonly known
as Big Canyon Reservoir located at 3300 Pacific View Drive, Newport Beach,
California [Assessor's Parcel Number 458-331- 01] ("Property"). The Property is
approximately 4.68 acres and depicted on Exhibit "A" of the Lease Agreement, as
defined herein.
B. City owns the Property, subject to certain covenants, conditions, restrictions and
easements, pursuant to that Indenture Agreement executed by and between the
City and The Irvine Company ("Irvine"), dated December 18, 1957, recorded
December 20, 1957, as Instrument No. 164527, in Book 4143, and Page 395, of
the Official Records in the Office of the County Recorder, County of Orange, State
of California ("Deed").
C. The Deed required the City to construct a reservoir on the Property and contained
other covenants and restrictions regarding use of the Property which was
subsequently amended to allow limited use of a portion of the Property by Tenant
for a school drop-off and queuing area, pursuant to that Amendment to Indenture
Covenants and Restrictions & Quitclaim of Road Easement dated October 7, 2013,
and recorded August 26, 2014, as Instrument No. 2014000345410, in the Official
Records in the Office of the County Recorder, County of Orange, State of
California ("Amendment").
D. Tenant is the owner of the property, structures, and improvements commonly
known as Harbor Day School, located at 3443 Pacific View Drive, Newport Beach,
California ("Harbor Day School"). Harbor Day School is operated as a private
school with instruction for kindergarten through eighth grade.
E. On August 6, 2014, the City entered into that certain Lease Agreement with Tenant
("Lease Agreement"), concerning approximately 0.69 acres of the Property
("Premises") to construct a parking lot (including improvements reasonably related
thereto, such as gates, bollards and driveways) for: (i) temporary parking for the
dropping off and picking up students who attend Harbor Day School; (ii) parking
for events associated with Harbor Day School activities; and (iii) incidental lighting
related to such purposes so long as all lighting is screened to minimize glare to
Harbor Day School
Page 1
7-4
neighboring residents (collectively, "Parking Lot"). The Premises is depicted and
legally described on Exhibit "B" of the Lease Agreement.
F. Tenant is rebuilding Harbor Day School and requests a modification to the Lease
Agreement to temporarily allow Harbor Day School employees to park at the
Premises during construction.
G. Irvine granted a Consent to Temporary Construction Uses Within the Big Canyon
Reservoir Site amending the Deed to temporarily allow a modification to use of the
Premises during construction.
H. Tenant requested and the City agrees to enter into this Amendment No. One to
amend the Lease Agreement to temporarily allow and add an Exhibit B-1, which is
attached hereto and incorporated herein by reference subject to the following
conditions.
F -11M V 444 J 14 i► `I
NOW, THEREFORE, in consideration of the benefits set forth herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties mutually agree as follows:
A Section 5.2.1 is hereby added to the Lease Agreement with the following:
5.2.1. Temporary Operation of Premises.
For three (3) years from the Effective Date of this Amendment
No. One, Tenant may temporarily allow employees to park in
the Parking Lot, while maintaining a revised queuing plan for
student pick up and drop off, in connection with a
redevelopment project at the Harbor Day School property,
and conditionally approved by the City as described and
depicted in Exhibit B-1, attached hereto and incorporated
herein by reference. Tenant shall be responsible for
temporarily re -striping the Parking Lot to accomplish a safe
and harmonious use of the Parking Lot by those utilizing it for
both parking and queuing. Upon the conclusion of the three
years from the Effective Date of this Amendment No. One,
Tenant shall be responsible for re -striping the Parking Lot to
return the Parking Lot to its original condition that preceded
this Amendment No. One, in accordance with Exhibit B and
the Lease Agreement. All requirements of Section 5.2
("Operation of Premises") of the Lease Agreement remain in
full force and effect.
Harbor Day School
Page 2
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2. A Section 8.9 is hereby added to the Lease Agreement with the following:
8.9. Costs of Temporary Construction. Tenant shall
bear all costs and expenses of the design, construction,
maintenance, and removal thereof associated with the
temporary operation of the Premises, as described in Section
5.2.1, including but not limited to the temporary re -striping of
the Parking Lot. Notwithstanding the terms set forth in Section
8.6 (Payment of Costs) of the Lease Agreement, City shall not
be responsible for any costs or liability associated with
temporary operation of or construction thereon the Premises.
3. A Section 8.10 is hereby added to the Lease Agreement with the following:
8.10 Disposition of Temporary Construction and Alteration
at Expiration or Amendment No. One Termination. All re -
striping of the Parking Lot shall be complete and the original
queueing plan as set forth in Exhibit B of the Lease Agreement
shall resume on September 1, 2023. A true and correct copy
of the original queueing plan from Exhibit B of the Lease
Agreement is reproduced within Exhibit B-1 for ease of
reference.
4. A Section 10.4 is hereby added to the Lease Agreement with the following:
10.4 Hold Harmless Clause for Temporary Operation of the
Premises and Construction Thereon. In addition to the
indemnification and insurance obligations set forth in Sections
10.1 through 10.3, Tenant agrees to indemnify, defend and
hold harmless the City, its City Council, Boards,
Commissions, Committees, officers, agents, volunteers, and
employees (collectively, the "Indemnified Parties") from and
against any and all claims (including, without limitation, claims
for bodily injury death or damage to property), demands,
obligations, damages, actions, causes of action, suits, losses,
judgments, fines, penalties, liabilities, costs and expenses
(including, without limitation, attorney's fees disbursements
and court costs) of every kind and nature whatsoever
(individually, a "Claim," collectively, "Claims"), which may
arise from or in any manner relate (directly or indirectly) to
Tenant's, Tenant's employees, contractor, subcontractor,
agents, guests, invitees, in connection with the temporary
Harbor Day School
Page 3
7-6
queueing, re -striping, operation and construction
contemplated under this Amendment No. One.
5. Except as expressly modified herein, all other provisions, terms, covenants
and conditions set forth in the Lease Agreement shall remain unchanged and shall be in
full force and effect.
[Signatures on Next Page]
Harbor Day School Page 4
7-7
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
One as of the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:
By: q474_�
.aron C. rp N+^ o4�ldlao
City Attorne
ATTEST:
Date:
By:
Leilani I. Brown
City Clerk
CITY: CITY OF NEWPORT BEACH, a
California municipal corporation and
charter city
Date:
By:
Grace K. Leung
City Manager
TENANT: HARBOR DAY SCHOOL, a
California nonprofit corporation
Date:
By:
Angela Evans
Chief Executive Officer
Date:
By:
Mark Dubeau
Chief Financial Officer
[End of Signatures]
Attachments: Exhibit B-1 — Interim Queueing Plan
Harbor Day School Page 5
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
One as of the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date:
By:
Aaron C. Harp
City Attorney
ATTEST:
Date:
31
Leilani I. Brown
City Clerk
CITY: CITY OF NEWPORT BEACH, a
California municipal corporation and
charter city
Date:
Grace K. Leung
City Manager
TENANT: HARBOR DAY SCHOOL, a
California nonprofit corporation
Date: 2-b
By:
Angela Evans
Chief Executive Officer
Date: (a /15_/2v
By:
wh`JY�C� OMC z
Pres] C�Cyfr
[End of Signatures]
Attachments: Exhibit B-1 — Interim Queueing Plan
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EXHIBIT B-1
INTERIM QUEUEING PLAN
1. Drop-off and pick-up operations are proposed to remain unchanged: morning drop-
off occurs from approximately 7:40 a.m. to 8:00 a.m. and afternoon pick-up occurs
from approximately 2:55 p.m. to 3:20 p.m. The Interim Queueing Plan, as
described and depicted herein, will function almost exactly the same as it has since
inception, but it will allow for the parking of 34 staff vehicles during construction of
the on-site parking lot.
2. When arriving to pick up students, cars will line up in four (4) lines in the Carpool
Queueing Area. At 3:00 p.m., two (2) teachers (orange dots) will be positioned in
the Carpool Queueing Area. Seven (7) teachers (red dots) and a Carpool Pickup
Area Captain (magenta dot) will be positioned in the Pickup Area. The Queueing
Captain will motion cars when it is safe and time to leave the Interim Queueing
Area and enter the School Pickup Area.
3. Furthermore, the two (2) teachers (orange dots) that are positioned in the Carpool
Queueing Area will manage the five (5) queueing lanes by directing each lane to
filter through the queue and into the two (2) designated lanes in the Pickup Area
when directed by the Queueing Captain.
4. Tenant is prepared to institute additional means and methods to mitigate
congestion on Pacific View or Marguerite Avenue should an issue arise when the
Interim Queueing Plan is in effect.
5. Tenant's faculty and staff will continue to monitor students exiting and loading into
cars. They will also direct the traffic flow between the off-site and on-site parking
lots, as queue vehicles cross Pacific View Drive from the Big Canyon Reservoir
parking lot to the school parking lot. The temporary construction and operation of
the Premises will not change the way carpool operations are currently managed.
Harbor Day School Page B-1
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Interim Queueing Plan: Effective July 2020 through August 30, 2023
INTERIM QUEUING PLAN
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Harbor Day School Page B-2
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Original Queueing Plan: Effective prior to this Amendment No. One and August 2023 though
termination of the Lease Agreement. (Reproduced from Exhibit B of the Lease Agreement).
'
Harbor Day School
Page B-3
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