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HomeMy WebLinkAbout06 - Lease Agreement with Newport Ridge Community Association to Develop, Operate and Maintain Pickleball Courts at Newport Ridge ParkQ �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report May 24, 2022 Agenda Item No. 6 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Sean Levin, Interim Recreation and Senior Services Director - 949- 644-3159, slevin@newportbeachca.gov PREPARED BY: Justin Schmillen, Recreation and Senior Services Manager jchmillen@newportbeachca.gov PHONE: 949-644-3160 TITLE: Lease Agreement with Newport Ridge Community Association to Develop, Operate and Maintain Pickleball Courts at Newport Ridge Park The sport of pickleball has grown in popularity in Newport Beach and around the country in recent years. The City of Newport Beach (City) has four pickleball courts for public use and due to the increase in demand from residents, an opportunity to add a new pickleball courts complex has been identified at Newport Ridge Park. Following the City Council's November 2021 approval of authorization to apply for grant funds from the State of California for park development, a lease agreement was negotiated with Newport Ridge Community Association (NRCA), and is submitted for the City Council's consideration. The lease will allow the City to use a portion of Newport Ridge Park to develop eight pickleball courts, with six courts maintained and operated by the City to meet the public demand for more courts, and the remaining two courts to be maintained and operated by N RCA. RECOMMENDATION: a) Determine this project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 and 15303 under Class 1 (Existing Facilitates) and Class 3 (New Construction or Conversion of Small Structures), respectively, of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. The exceptions to the Class 3 categorical exemption under Section 15300.2 are not applicable; b) Authorize the City Manager and City Clerk to execute a 30-year Lease Agreement by and between the Newport Ridge Community Association and the City of Newport Beach for the Development, Operation, and Maintenance of Pickleball Courts Complex at Newport Ridge Park (Lease) (Attachment A), in a form substantially similar to the agreement prepared by the City Attorney; and 6-1 Lease Agreement with Newport Ridge Community Association to Develop, Operate, and Maintain Pickleball Courts at Newport Ridge Park May 24, 2022 Page 2 c) Review and approve the Conceptual Design (Attachment B) and direct staff to proceed with final construction documents. DISCUSSION: Pickleball continues to rise in popularity among Newport Beach residents, maintaining its reputation as one of the fastest growing sports in the country. In fall 2017, the City constructed four dedicated Pickleball courts at Bonita Canyon Sports Park Field #6 to meet the community need and growing interest in the sport. As the sport continues to gain momentum as a mainstream recreational activity, the outdoor courts at Bonita Canyon Sports Park have become heavily impacted and do not meet the increasing demand for available court time. Adding new courts in the City would fulfill the public need for more open court times and could also support recreational programs such as league play, group/private lessons, and tournaments for all skill levels and ages. NRCA approached the City to partner in the development of pickleball courts at Newport Ridge Park, a 11.32-acre private park site located at 6331 Newport Ridge Drive in the Newport Coast area of the city. The park is owned and managed by NRCA, the homeowner's association for the Newport Ridge housing development, and presents itself as the most viable park location in the City that meets important site conditions: 1. Distanced from homes to diminish noise impact from pickleball play. 2. Existing parking that is sufficient to support the new recreational amenity. 3. Does not displace or impact any existing recreational programs. Project Design In June 2021, the Parks, Beaches & Recreation Commission (PBR) appointed three commissioners to serve on the Newport Ridge Park Pickleball Courts Ad Hoc Committee to assist with conceptual design and community outreach. The Ad Hoc Committee, NRCA Board Members, the Recreation & Senior Services Department, and the Public Works Department have worked collectively to develop plans for the eight unlit courts, which will be located along the eastern edge of the park, adjacent to the City -owned Newport Coast Community Center parking lot, and other various associated site amenities. All of the courts are designed to USA Pickleball Association (USAPA) specifications and the site will be furnished with shaded viewing areas, benches, trash cans, a bike rack and a bottle filling station. The two northern most courts will be fitted with a key fob system for NRCA resident access. The existing Newport Coast Community Center parking lot (120 spots) and restrooms will be utilized to support public use of the site. NRCA Pickleball players will access the courts by utilizing the community association parking lot and restrooms along the western edge of the park. The closest home to the proposed pickleball courts is approximately 340 feet away and located on the opposite side of San Joaquin Hills Road, south of the courts. The closest home east of the courts is approximately 650 feet away and the closest home on the west side is over 670 feet away, and both are elevated significantly higher than the park. Undeveloped open space and Highway 73 provide over a mile buffer from homes to the north. 6-2 Lease Agreement with Newport Ridge Community Association to Develop, Operate, and Maintain Pickleball Courts at Newport Ridge Park May 24, 2022 Page 3 In December 2021, the Conceptual Designs included in Attachment B were presented to PBR and the Commission voted to approve and forward design plans to City Council for final approval. On March 31, 2022, NRCA Board of Directors notified their membership about the project, including the design parameters and received no opposition to the project. A copy of the notice is included as Attachment C. Project Costs Preliminary design and construction estimates are projected to be $1,000,000 and funds are included in the FY 2021-2022 Capital Improvement Project budget. The City of Newport Beach has also been awarded Per Capita and Urban County Per Capita Grant Funds in the amount of $177,952 and $53,284, respectively, and the grant funds are committed to the development of pickleball courts at Newport Ridge Park, and were previously approved by Council in November 2021 (Attachment D) and will supplement the budgeted CIP funds. Project Entitlements On April 29, 2022, pursuant to PA2022-091 (Attachment E), the Community Development Director approved Staff Approval No. SA2022-003, allowing conversion of a portion of an existing baseball field into eight outdoor pickleball courts, finding the proposed development is consistent with all applicable provisions of the zoning code, does not change the total square footage or operational characteristics of Newport Ridge Park, and provides new park amenities with portions designated for public use. Previously, the County of Orange authorized Newport Ridge Park under Site Development Permit No. PA95-0043 before the property's annexation into the City of Newport Beach in 2000. The Site Development Permit allowed the development of a local park and related park amenities. Condition of Approval No. 3 in PA95-0043 authorizes changes to the approved plan, including location and alteration of any use or structures, provided the change complies with the provisions and spirit and intent of the approval action and that the action would have been the same for the changed plan as the approved plat plan. In this case, the proposed change involves altering an existing baseball field to accommodate eight pickleball courts. Pickleball is an increasingly popular sport and is a common recreational amenity in parks today. A pickleball court could have been part of the original plan based on the sport's current popularity. As a result, altering the existing baseball field to accommodate pickleball courts complies with the original approval's provisions, intent, and spirit. Lease Agreement Following is a summary of the proposed Lease terms 1. The initial term is 30 years, with two automatic five-year options to extend, unless not renewed by the City, or terminated earlier as provided by the Lease. 2. In consideration of the City's use of the land, the City will fund design and construction for eight courts and maintain and operate six courts for public use, with dedicated use of the two remaining courts for NRCA. 6-3 Lease Agreement with Newport Ridge Community Association to Develop, Operate, and Maintain Pickleball Courts at Newport Ridge Park May 24, 2022 Page 4 3. NRCA may, by following the standard application process and payment of fees, obtain a Special Event Permit to reserve the City's public courts for special events. 4. City may, with no less than 90 days prior written notice, reserve the NRCA courts for public events. City events may not exceed two per quarter or 16 days in a 12-month period. 5. Each party is responsible for the regular cleaning, maintenance and repair of their respective courts. 6. City shall be responsible for maintenance, repair and/or replacement of the playing surfaces, fencing, windscreens, and the outer improvements of the pickleball courts complex like the immediately adjacent sidewalk and landscaping. 7. After the City's initial installation, NRCA shall be responsible for the ongoing utility service costs for the courts. 8. City has a first right of refusal to purchase the property should NRCA decide to transfer its ownership of the property. 9. NRCA shall be responsible for any property taxes levied or assessed against the property, including any changes in value resulting from the project. 10.If the Lease is terminated early, NRCA shall reimburse the City for a prorated amount of the cost of the improvements, based on a 30-year amortization schedule. 11. Construction must commence before December 31, 2023, and must be completed by December 31, 2024. The Lease has been reviewed by the City Attorney's Office and has been approved as to form. NRCA has agreed to the terms of the Lease and executed the document. FISCAL IMPACT: The adopted Capital Improvement Program includes sufficient funding for the project and is in the Facilities Financing Plan. Fund sources are General Fund and State grant funds and will be expensed to the Newport Coast Pickleball Courts Project in the Adopted FY 2021-2022 CIP Budget Account No. 56201-980000-22P13. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15301 and 15303 under Class 1 (Existing Facilitates) and Class 3 (New Construction or Conversion of Small Structures), respectively, of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential to have a significant effect on the environment. Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Class 3 exempts new commercial construction of less than 10,000 square feet in floor area, if zoned for such use, if not involving the use of significant amounts of hazardous substances where all necessary public services and facilities are available and the surrounding area is not environmentally sensitive. The project includes an agreement and conceptual approval to alter an existing baseball field with eight (8) pickleball courts at an existing park and thus the project is categorically exempt from CEQA. rem Lease Agreement with Newport Ridge Community Association to Develop, Operate, and Maintain Pickleball Courts at Newport Ridge Park May 24, 2022 Page 5 The exceptions to the Class 3 categorical exemption under Section 15300.2 are not applicable. The developed project site does not impact an environmental resource of hazardous or critical concern, does not result in cumulative impacts, does not have a significant effect on the environment due to unusual circumstances, does not damage scenic resources within a state scenic highway, is not a hazardous waste site, and is not identified as a historical resource. 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 — Lease Agreement Attachment B —Conceptual Design Attachment C — Newport Ridge Community Association March 31, 2022 Notice Attachment D — Resolution No. 2021-108 Attachment E — PA2022-091 CDD Action Letter 6-5 Attachment A Lease Agreement by and between the Newport Ridge Community Association and the City of Newport Beach for the Development, Operation, and Maintenance of Pickleball Courts Complex at Newport Ridge Park • • DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 LEASE AGREEMENT BY AND BETWEEN THE NEWPORT RIDGE COMMUNITY ASSOCIATION AND THE CITY OF NEWPORT BEACH FOR THE DEVELOPMENT, OPERATION, AND MAINTENANCE OF PICKLEBALL COURTS COMPLEX AT NEWPORT RIDGE PARK THIS LEASE AGREEMENT ("Lease") is made and entered into this day of , 2022 ("Effective Date") between the NEWPORT RIDGE COMMUNITY ASSOCIATION, a California nonprofit mutual benefit corporation ("NRCA"), and the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"). City and NRCA are collectively referred to as "Parties" herein. RECITALS This Lease is made with reference to the following facts: A. NRCA owns and operates that certain real property and improvements consisting of a community park with a playground area, restroom facilities, outdoor seating, walking paths and sidewalks, landscaping, parking lot, outdoor lighting, tennis courts, basketball courts, and baseball field, commonly referred to as the Newport Ridge Park located at 6331 Newport Ridge Drive E, Newport Coast, CA 92657, Assessor's Parcel Number 461-152-13 ("NRCA Property"). The NRCA Property is more particularly depicted in the attached Exhibit "A", which is incorporated herein by reference. B. City owns that certain real property and improvements adjacent to NRCA Property, consisting of a public community center building, parking lot, landscaping and outdoor lighting, commonly referred to as Newport Coast Community Center located at 6401 San Joaquin Hills Road, Newport Coast, CA 92657, Assessor's Parcel Number461-152-12 ("City Property"). The City Property is more particularly depicted in the attached Exhibit "B", which is incorporated herein by reference. C. The Parties desire to convert a portion of the baseball field ("Field") on NRCA Property into pickleball courts ("Pickleball Courts Complex") for the use and enjoyment by NRCA and City under the terms and conditions explicitly set forth under this Lease. The Pickleball Courts Complex will comprise eight (8) pickleball courts ("Courts") and their surrounding improvements, which may consist of sidewalks, benches, picnic tables, water fountains, shade mechanisms, landscaping and/or hardscape ("Outer Improvements"). The Courts will be allocated between City and NRCA, with six (6) pickleball courts designated for City's use ("City Courts") and two (2) pickleball courts designated for NRCA's exclusive use ("NRCA Courts"). D. This Lease sets forth the terms and conditions for the development, construction, operation, and maintenance of the Pickleball Courts Complex. 6-7 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 AGREEMENT NOW THEREFORE, the Parties agree that: 1. AGREEMENT TO LEASE 1.1 Purpose of Lease. NRCA hereby grants access and right of entry to the Field to City to design, develop, construct and install, at City's sole cost and expense, the Pickleball Courts Complex. City desires to lease from NRCA and NRCA desires to lease to City that portion of the Field on which the Pickleball Courts Complex will be constructed, as will be more fully described and depicted in amended exhibits to this Lease. 1.2 Lease Amendment to Incorporate Final Design. The Parties understand that the final design and details for the Pickleball Courts Complex, including the final location and layout of NRCA Courts and City Courts, do not exist at the time of execution of this Lease and that the document(s) will be adopted later. The Parties expressly intend, and hereby agree, to timely amend this Lease to incorporate the final approved design and details for the Pickleball Courts Complex and the maintenance obligations for the Outer Improvements. Notwithstanding the following, the approximate design, location and layout of the Pickleball Courts Complex is depicted in the attached Exhibit "C", which is incorporated herein by reference. 1.3 Net Lease. This Lease is a net lease, pursuant to which City has no obligation with respect to the payment of taxes, insurance, the cost of maintenance, utilities, repairs or other costs or obligations associated with NRCA Property or the Field, except as expressly stated herein. 1.4 Termination of Prior Lease(s). NRCA affirmatively represents that: (a) to the best of its knowledge, no other person/entity has any interest, whether by lease or otherwise, in the Field; and (b) the person(s) executing this Lease have the authority to bind NRCA and be bound by the terms herein. Upon the Effective Date of this Lease, any lease(s) between City and NRCA or any other party covering the Field shall automatically terminate and be of no further effect. NRCA shall execute and record any document(s) that may be required to evidence the termination of any prior lease(s) covering the Field. City shall owe no compensation to NRCA or any other party for the termination of a lease under this Section. NRCA shall indemnify and hold City harmless from any and all liability, loss, expense, damage, or claims which may arise directly or indirectly from or in connection with any allegation that the representations made in this Section are false. 2. TERM 2.1 Initial Term. NRCA hereby leases to City the property described in Section 1.1. above, for the purposes described herein this Lease, and subject to the terms and NEWPORT RIDGE COMMUNITY ASSOCIATION Page 2 .: DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 conditions herein contained, for an initial term of thirty (30) years beginning on the Effective Date ("Initial Term"). 2.2 Option to Extend. Provided City is in full compliance with the terms and conditions of the Lease, and is not then in default beyond applicable notice and cure periods provided herein, this Lease shall renew automatically for two (2) additional successive terms of five (5) years (each an "Option Term"), on the same terms and conditions as contained in this Lease as it may be amended from time to time, unless City gives NRCA written notice of its intention not to exercise the Option Term at least ninety (90) days prior to expiration of the Term. 2.3 Term of Lease. The "Term" as used herein is defined as the Initial Term and, as exercised, any Option Term. 2.4 Amendments. The Parties may amend the terms of this Lease at any time during the Term hereof to better serve the public interest and/or better accomplish the purposes of the Lease; provided, however, that the Term may not be extended by the Parties beyond the express provisions of this Lease. Any amendment made to this Lease must be in writing and executed by the Parties, and approved as to form by the City Attorney. 3. PICKLEBALL COURTS COMPLEX DESIGN AND CONSTRUCTION 3.1 Pickleball Courts Complex Design and Development; Costs. The conversion and development of the Field into the Pickleball Courts Complex, which includes but is not limited to the design, installation and construction work (including installation of the electronic key fob system), shall be performed by City at its sole cost and expense. The Pickleball Courts Complex shall be designed and constructed by qualified and licensed (where required) architectural, design, engineering and construction firms selected by City at its sole and absolute discretion. NRCA shall have an opportunity to provide input in the Pickleball Courts Complex design process and suggest changes, which City may at its sole discretion incorporate into the final design. Notwithstanding the foregoing, City and NRCA must mutually agree and determine the final placement of City Courts, NRCA Courts and Outer Improvements, which shall be made part of the final design for the Pickleball Courts Complex. The final design shall also include installation of the gate(s) at the point of entry to the NRCA Courts, to be accessible through an electronic key fob system to secure the entrance to NRCA Courts and addition of an electronic key fob system at the two park entry gates adjacent to the Courts. 3.2 Pre -Construction Due Diligence. 3.2.1 No later than thirty (30) calendar days following execution of this Lease, NRCA shall deliver to City copies of any and all documents in its possession relating to the area proposed for construction of the Pickleball Courts Complex and the surrounding NRCA Property, which may include any environmental reports, natural NEWPORT RIDGE COMMUNITY ASSOCIATION Page 3 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 hazard disclosure reports, engineering reports, surveys, title materials, geotechnical reports, soils studies, environmental audits and reports, environmental impact reports or mitigated negative declarations, and any other documents that may assist the City in the design and construction of the Pickleball Courts Complex (collectively the "NRCA Property Documents"). 3.2.2 City's construction of the Pickleball Courts Complex shall be contingent upon completion of its due diligence and determining, to its sole satisfaction, that the Field is sound and safe for the construction of the Pickleball Courts Complex. City shall have a period of one hundred twenty (120) calendar days after NRCA delivers the NRCA Property Documents to City to complete such due diligence and determination. If the City does not provide written notice of satisfactory completion of its due diligence to NRCA within the one hundred twenty (120) calendar days (which the Parties may extend by mutual agreement), then this Lease shall terminate and the Parties shall have no further obligations hereunder. The City's determination of the feasibility of construction of the Pickleball Courts Complex is a material condition of this Lease. 3.3 Notice of Commencement of Construction. At least thirty (30) calendar days prior to taking possession of the Field to commence construction of the Pickleball Courts Complex, City shall provide NRCA written notice of the same and NRCA shall provide written notice to its residents/members of the commencement of construction. 3.4 Preservation of NRCA Property. City may utilize a portion of the NRCA Property outside of and immediately adjacent to the Pickleball Courts Complex and Outer Improvements for construction staging and access, which area shall be identified on the design documents. City agrees to take all prudent action to protect NRCA Property from any damage or injury during construction and installation of the Pickleball Courts Complex. City shall repair or cause to be repaired any damage to NRCA Property outside of the Pickleball Courts Complex directly caused by City or its contractors or subcontractors during the construction and installation of the Pickleball Courts Complex. 3.5 Prevailing Wages. The City, its contractors and subcontractors shall comply with all State of California labor laws, rules and regulations, including those governing the payment of prevailing wage. 3.6 Permits and Approvals. Unless restricted by law, City shall obtain, and be responsible for the costs for all building permits, health department permits and other required permits prior to the commencement of construction of the Pickleball Courts Complex and its operations. If applicable, City shall be responsible, at its sole cost and expense, for compliance with the California Environmental Quality Act ("CEQA") in connection with construction and operation of the Pickleball Courts Complex. NEWPORT RIDGE COMMUNITY ASSOCIATION Page 4 6-10 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 3.7 Acceptance. The date upon which the City formally accepts the completed construction work of the Pickleball Courts Complex shall be the "Commencement Date." 4. OPERATION AND USE OF THE PICKLEBALL COURTS COMPLEX The Pickleball Courts Complex shall commence operations and be open for use as of the Commencement Date. NRCA Courts shall be available at the same time for the exclusive use by its members and residents, except as set forth herein. City Courts and the Outer Improvements shall be open for use by the general public. 4.1 City Courts and Outer Improvements. 4.1.1 City Courts shall be reserved for the City to make available for the general public's use and benefit, which includes public recreational programs, classes, and events. The City Courts shall be managed by the City's Recreation and Senior Services Department ("RSS") comparable to the City's other public park facilities. 4.1.2 NRCA may reserve the City Courts for NRCA private events ("NRCA Event"). NRCA shall make its reservation request in advance, in writing, through a Special Event Permit from the City, and/or any other permits or approvals as may be required for the use of any City public facility. The Special Event Permit and any other required approvals must be obtained prior to the commencement of any NRCA Event. The NRCA Event shall be in compliance with the approved hours of operation of public facilities as set forth in the Newport Beach Municipal Code. NRCA shall promptly repair any damage and remove any rubbish resulting from an NRCA Event, at its sole cost and expense. 4.1.3 The Outer Improvements shall be available for the general public's use and benefit. 4.2 NRCA Courts. 4.2.1 NRCA Courts shall be reserved for the exclusive use of the NRCA and its residents/members. NRCA shall conduct its use and operation of NRCA Courts in compliance with Chapter 11.04 of the Newport Beach Municipal Code. 4.2.2 NRCA shall provide City with a copy of its key fob to access NRCA Courts. 4.2.3 City may reserve the NRCA Courts for public event(s) ("City Event"). No less than ninety (90) calendar days prior to the City Event, City shall provide NRCA with a written request to use the NRCA Courts, stating the date(s) and time(s), description, and contact person for the proposed City Event. NRCA shall provide NEWPORT RIDGE COMMUNITY ASSOCIATION Page 5 6-11 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 City a written notice of approval or disapproval no less than thirty (30) calendar days prior to the first date of the proposed City Event, or if the City Event is in conflict with a previously scheduled NRCA Event, then NRCA shall, using its reasonable efforts and following good faith negotiations with City, determine a time to reschedule the City Event, which shall take priority over any other NRCA Event. City Events may not exceed more than two (2) in any calendar quarter or more than sixteen (16) days in the aggregate in any consecutive twelve (12) month period. City shall promptly repair any damage and remove any rubbish resulting from a City Event, at its sole cost and expense. 4.2.4 NRCA shall not modify, alter, add or remove any permanent feature or aspect of the NRCA Courts, or install any improvements on the NRCA Courts without prior written approval by City. 4.2.5 NRCA shall fully comply with its Covenants, Conditions and Restrictions (CC&Rs) as may be amended from time to time, and which are recorded against the NRCA Property. 4.3 New Improvements. Neither Party may install, construct, maintain, or allow any signs, permanent or non -permanent fixtures or improvements on the Pickleball Courts Complex that were not otherwise specified in the final design of the Pickleball Courts Complex, unless approved in writing by the other Party and in strict compliance with the provisions of the Newport Beach Municipal Code. 4.4 Signage and Information. City may post signs, messaging and other information in the Pickleball Courts Complex that may include, but is not limited to, City's rules of conduct, public programming, and class schedule information. NRCA may post NRCA information about the NRCA Courts, as preapproved in writing by City. 4.5 Lawful Use of the Pickleball Courts Complex. The Parties agree that no business shall be conducted on or near the Pickleball Courts Complex in violation of the terms of this Lease or of any regulation, order, law, statute, bylaw, charter provision, or ordinance of any governmental agency having jurisdiction. 4.6 Waste or Nuisance. NRCA shall not commit or knowingly permit the commission of any waste on the Pickleball Courts Complex. NRCA shall not maintain, commit, or knowingly permit any public or private nuisance as defined in Section 3479 of the California Civil Code on the Courts. 4.7 Protective Action. Each Party shall take all prudent action to protect the Pickleball Courts Complex from any damage or injury resulting from its use, maintenance or repair of the Pickleball Courts Complex. NEWPORT RIDGE COMMUNITY ASSOCIATION Page 6 6-12 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 5. MAINTENANCE OF THE PICKLEBALL COURTS COMPLEX 5.1 City Courts; NRCA Courts. Each Party shall be responsible for and perform at its sole cost and expense regular ongoing general upkeep and minor repairs of its respective City Courts or NRCA Courts and ensure that they are in clean and good working condition at all times. In general, each Parry's general upkeep and repair duties shall encompass cleaning and graffiti removal and include the netting and shading mechanism. NRCA shall be responsible, at its sole cost and expense, for maintenance and repair, and any future modification or replacement of the electronic key fob system to access the NRCA Courts. All work shall be performed in strict compliance with the specifications and requirements of the final approved design for the Pickleball Courts Complex. 5.2 Courts. City shall be responsible for and perform at its sole cost and expense any maintenance, repair, and/or replacement of the Courts playing surfaces, fencing, and windscreens, consistent with the repairs and maintenance performed at other City public recreational facilities and to ensure they are kept in an attractive, safe and good working condition. 5.3 Outer Improvements. City shall be solely responsible for and perform at its sole cost and expense regular ongoing maintenance and minor repairs of the Outer Improvements, including that easterly portion between the Pickleball Courts Complex up to the adjacent City Property. The specific details of the Outer Improvements and their maintenance and repair requirements shall be set forth in a Lease amendment that will be executed after the approval of the final design of the Pickleball Courts Complex. 5.4 Refuse Disposal. City shall be solely responsible for the scheduling, costs and expenses of refuse collection services for the Pickleball Courts Complex. 5.5 Sound Attenuation Measures. If the Courts require sound attenuation measures, as determined in the City's reasonable discretion, then the Parties will proportionally share the costs for the acquisition, installation, construction, maintenance, repair and replacement. 5.6 Option to Assume Maintenance. In the event NRCA fails to complete, or commence and diligently pursue to completion, any maintenance or repairs required to keep the NRCA Courts in a condition reasonably acceptable to City within thirty (30) calendar days of delivery of the City's written notice of the need for maintenance or repair, City may perform the maintenance or repair and charge the cost to NRCA. If NRCA repeatedly (i.e., more than three (3) times in any twelve (12) month period after written notice thereof) fails to fulfill its obligations hereunder, City has the option to assume the maintenance and repair obligation and perform it at NRCA's sole cost and expense. 5.7 Site Walk; Annual Report. The Parties shall perform an annual joint inspection of the Pickleball Courts Complex by July 15th to determine the necessary repairs and maintenance for the following calendar year. Prior to the joint inspection, NRCA shall provide to City a written report listing any and all maintenance, repairs, or NEWPORT RIDGE COMMUNITY ASSOCIATION Page 7 6-13 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 other work completed, including the costs incurred thereof, for the preceding calendar year. 6. DAMAGE OR DESTRUCTION 6.1 City Courts: NRCA Courts. 6.1.1 If either City Courts or NRCA Courts are rendered totally or partially inaccessible or unusable due to damage or destruction ("Destruction"), then subject to Section 6.2 below, the Party having the right of exclusive use thereof shall repair and restore its respective area of the Courts to substantially the same condition as existed immediately prior to the Destruction. However, for any such Destruction directly caused by an NRCA Event or City Event, the Party conducting that event shall bear the sole cost and expense for promptly repairing and restoring those premises to substantially the same condition as existed immediately prior to the Destruction. 6.1.2 Notwithstanding the foregoing, if Destruction renders a majority of City Courts or a majority of NRCA Courts inaccessible or unusable and which cannot within twelve (12) months from the date of the Destruction reasonably be repaired or restored to substantially the same condition as existed immediately prior to the Destruction, then either Party may terminate this Lease in accordance with the procedure in Section 6.2. 6.2 Courts. If a major portion or the entirety of the Courts are rendered inaccessible or unusable due to Destruction, then the Parties shall share on a pro rata basis the costs to repair and restore the Courts to substantially the same condition as existed immediately prior to such Destruction. The pro rata costs shall be determined based on the proportion of City Courts to NRCA Courts affected. However, either Party may, in its sole and absolute discretion, elect to terminate this Lease by giving written notice to the other Party within thirty (30) calendar days of the date of occurrence of the Destruction if: (a) the cost for repair and restoration exceeds the amount of any insurance proceeds available to the terminating Party; (b) the Destruction was caused by an uninsured casualty or event; or (c) the terminating Party reasonably estimates that repairs will take more than twelve (12) months. Upon such termination, NRCA shall reimburse City in accordance with Section 19 and the terminating Party shall, at its sole cost and expense, remove any damaged property or debris from its respective portion of the Courts, and thereafter neither Party shall have any further liability or obligations to the NEWPORT RIDGE COMMUNITY ASSOCIATION Page 8 6-14 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 other Party under this Lease, except as otherwise expressly provided herein (e.g. indemnity, insurance). 7. RIGHT TO ENTER; EMERGENCY City and its authorized representative(s) shall provide NRCA at least one (1) business day notice before entering NRCA Courts for inspection or any purpose other than maintenance. City shall use reasonable efforts to not interfere with NRCA's use of the NRCA Courts. City shall not be required to provide notice in the case of an emergency. 8. UTILITIES City shall provide for the installation of electrical, including electrical connectivity for the NRCA Courts key fob system, water, and, if applicable, gas service (collectively, the "utilities") for the Pickleball Courts Complex as part of the construction work. Beginning on the Commencement Date, NRCA shall pay for ongoing utilities service for the Pickleball Courts Complex for the Term. Maintenance and repair of utility lines within the Courts shall be the sole responsibility of NRCA. Utilities services maintenance shall occur between 7:00 a.m. and 6:00 p.m. on non -holiday weekdays. NRCA shall provide City with not less than thirty (30) calendar days' prior written notice before commencing any work that may occur during regular hours of operation, or would impact City's regular use of City Courts. 9. REDEVELOPMENT OF NRCA PROPERTY NRCA shall provide City with a minimum of six (6) months' prior written notice for any plans to redesign, redevelop or otherwise substantially modify any portion of the NRCA Property near or surrounding the Pickleball Courts Complex ("NRCA Redevelopment"). If, in the City's sole determination, the NRCA Redevelopment will interfere with the City's ability to occupy or use all or a portion of the City Courts, then NRCA shall modify the NRCA Redevelopment to City's satisfaction, which City shall not unreasonably withhold. If the Parties are unable to mutually agree upon changes to the NRCA Redevelopment, then City may, at its sole discretion, terminate this Lease and NRCA shall reimburse City in accordance with Section 19 of this Lease. 10. EASEMENTS Subject to applicable provisions of law, it is understood that all rights granted under this Lease are subject to easements, rights -of -way, and similar burdens, if any, now existing or heretofore granted by NRCA or its predecessors, in, to, over, or under the NRCA Property for any purpose. 11. TRANSFER OR SALE OF PROPERTY 11.1 Assignment by NRCA. The provisions of this Lease shall run with the land and be binding upon and inure to the benefit of the Parties, their legal representatives, successors, and assigns (collectively "successors"). NRCA may, after providing City with one hundred twenty (120) calendar days prior written notification, assign its rights and NEWPORT RIDGE COMMUNITY ASSOCIATION Page 9 6-15 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 obligations under this Lease to another homeowners' association established by the owners of the lands comprising the NRCA Property, provided said association meets any and all qualifications as required by law to be a legally recognized homeowner's association. Any proposed successors shall fully and unconditionally assume the covenants, provisions and obligations, including all maintenance and repair, of NRCA herein including, without limitation, the indemnification obligations. Such assignment shall be by written assignment executed by NRCA. Upon assignment, NRCA shall have no further liability under this Lease to the extent first arising from and after the effective date of the assignment. Any proposed assignment to any other shall require prior written approval of the City, which City may, in its sole discretion, withhold for any reason or no reason at all. 11.2 Change in Management. NRCA shall promptly notify City of any change in management of the NRCA Property, with a minimum of forty-five (45) calendar days' prior written notice to City of such intended assignment. Any assignment or transfer made without City's prior written consent or not otherwise strictly permitted under this Section shall be null and void. 11.3 Purchase Option. NRCA shall, in good faith and upon the same material terms as would be offered to other private Parties, grant City a continuing First Right of Refusal (FROR) to purchase, should NRCA elect to transfer the Pickleball Courts Complex. For purposes of this Lease, "transfer" and similar terms mean and include, without limitation, a sale or other transfer of all or any part of the Pickleball Courts Complex, or interest therein, either alone, or as part of a larger sale, provided, however, that "transfer" shall not include the granting of a license, an easement or similar right on all or a portion of the Pickleball Courts Complex that would not materially interfere, disrupt, or frustrate City's contemplated use pursuant to this Lease. 11.4 Assignment by City. City shall not assign this Lease or any right acquired hereunder without the prior written consent of NRCA. Any assignment without the prior written consent of NRCA is null and void. 12. ENVIRONMENTAL MATTERS AND HAZARDOUS MATERIALS 12.1 Environmental Law. "Environmental Law" shall include all federal, state, and local environmental, health, and safety laws, statutes, ordinances, regulations, rules, judgments, orders, and notice requirements, which were in effect as of the date of closing, which regulate or relate to (a) the protection or clean-up of the environment; (b) the use, treatment, storage, transportation, handling or disposal of hazardous, toxic or otherwise dangerous substances, wastes or materials; (c) the quality of the air and the discharge of airborne wastes, gases, particles, or other emissions; (d) the preservation or protection of waterways, groundwater, or drinking water; (e) the health and safety of persons or property; or (f) impose liability with respect to any of the foregoing, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) [42 USC section 9601 et seq.]; the Resource Conservation and Recovery Act of 1976 (RCRA) [42 USC section 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act (FWPCA) [33 USC section 1251 et NEWPORT RIDGE COMMUNITY ASSOCIATION Page 10 6-16 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 seq.]; the Toxic Substances Control Act (TSCA) [15 USC section 2601 et seq.]; the Hazardous Materials Transportation Act (HMTA) [49 USC section 1801 et seq.]; the Insecticide, Fungicide, Rodenticide Act [7 USC section 136 et seq]; the Superfund Amendments and Reauthorization Act [42 USC section 6901 et seq.]; the Clean Air Act [42 USC section 7401 et seq.]; the Safe Drinking Water Act [42 USC section 300f et seq.]; the Solid Waste Disposal Act [42 USC section 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 USC section 1201 et seq.]; the Emergency Planning and Community Right to Know Act [42 USC section 11001 et seq]; the Occupational Safety and Health Act [29 USC sections 655 and 6571; the California Underground Storage of Hazardous Substances Act [California Health and Safety Code section 25280 et seq.]; the California Hazardous Substances Account Act [California Health and Safety Code section 25300 et seq.]; the California Hazardous Waste Control Act [California Health and Safety Code section 25100 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [California Health and Safety Code section 24249.5 et seq.]; the Porter - Cologne Water Quality Act [California Water Code section 13000 et seq.] together with any amendments of or regulations promulgated under the statutes cited above. 12.2 Hazardous Materials. "Hazardous Materials" shall include any substance which falls within the definition of hazardous substance, hazardous waste, hazardous material, toxic substance, solid waste, or pollutant or contaminant, under any Environmental Law. 12.3 Hazardous Materials Indemnification. 12.3.1 City shall defend, indemnify and hold harmless NRCA, its officers, directors, employees, agents and representatives from and against any and all legal or administrative proceedings, claims, reasonable attorneys' fees and costs, expenses, penalties, actual damages, including indemnity claims, in any way related to (a) the use, release, generation, storage or disposal of Hazardous Materials in, on or around City Courts by City or any agent of City, (b) City's compliance or non-compliance with any federal, state or local environmental law, ordinance, rule or regulation, (c) the removal, clean-up, encapsulation, detoxification or any other action taken by City or any agent of City, directly or indirectly arising out of the presence of Hazardous Materials in, on or around the City Courts. If the storage, use and disposal of Hazardous Materials in, on or around City Courts is caused by City or any agent of City and results in contamination or deterioration of water or soil resulting in a level of contamination greater than maximum allowable levels established by any governmental agency having jurisdiction over such contamination, City shall promptly take any and all action required by such agency to investigate and clean-up such contamination. 12.3.2 NRCA shall defend, indemnify, and hold harmless City, its City Council, officers, employees, agents and representatives from and against any and all legal or administrative proceedings, claims, NEWPORT RIDGE COMMUNITY ASSOCIATION Page 11 6-17 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 reasonable attorney fees and costs, expenses, penalties, actual damages, including indemnity claims, in any way related to (a) the use, release, generation, storage or disposal of Hazardous Materials in, on or around NRCA Courts by NRCA or any agent of NRCA; (b) NRCA's compliance or non-compliance with any federal, state or local environmental law, ordinance, rule or regulation, (c) the removal, clean-up, encapsulation, detoxification or any other action taken by NRCA or any agent of NRCA, directly or indirectly arising out of the presence of Hazardous Materials in, on or around NRCA Courts. If the previous, current and future storage, use and disposal of Hazardous Materials in, on or around the Courts is caused by the NRCA or any agent of NRCA and results in contamination or deterioration of water or soil resulting in a level of contamination greater than maximum allowable levels established by any governmental agency having jurisdiction over such contamination, NRCA shall promptly take any and all action required by such agency to investigate and clean-up such contamination. 12.4 City's Obligations. City will not use, occupy, or permit any portion of the City Courts to be used or occupied in violation of any Environmental Law or to store any Hazardous Material. 13. TAXES, LICENSES AND OTHER OBLIGATIONS 13.1 Payment of Taxes. NRCA shall pay directly to the appropriate taxing authorities all taxes applicable to this Lease, improvements, NRCA's Property, and the Pickleball Courts Complex, that are levied or assessed against NRCA during the Term. NRCA shall pay, before delinquency, all taxes, assessments, license fees and other charges ("Taxes") that are levied or assessed against NRCA's interest in the Pickleball Courts Complex or any personal property installed on the Pickleball Courts Complex. 13.2 Challenge to Taxes. NRCA shall have the right in good faith, at its sole cost and expense, to contest the amount or legality of any Taxes on or attributable to this Lease, the Pickleball Courts Complex, NRCA's personal property, or NRCA's occupation and use of the Pickleball Courts Complex, including the right to apply for reduction. If NRCA seeks a reduction or contests such taxes, NRCA's failure to pay the taxes shall not constitute a default as long as NRCA complies with the provisions of this Section. City shall not be required to join in any proceeding or contest brought by NRCA unless the provisions of any law require that the proceeding or contest be brought by or in the name of City or any owner of the Pickleball Courts Complex. In that case, City shall join in the proceeding or contest or permit it to be brought in City's name as long as City is not required to bear any cost. If requested by NRCA, City shall execute any instrument or document necessary or advisable in connection with the proceeding or contest. NRCA, on final determination of the proceeding or contest, shall immediately pay or discharge NEWPORT RIDGE COMMUNITY ASSOCIATION Page 12 ME DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 any decision or judgment rendered, together with all related costs, charges, interest and penalties. 14. INDEMNITY AND EXCULPATION 14.1 NRCA Hold Harmless. NRCA agrees to indemnify, defend and hold harmless City, its City Council, boards, commissions, committees, officers, agents, volunteers, and employees (collectively, "City 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 the occupation or use of any part of NRCA Courts by NRCA, its residents, guests, employees, contractors, subcontractors, agents, invitees, or volunteers (collectively, "NRCA Parties"), including without limitation any claim, liability, loss or damage arising by reason of: 14.1.1 The death or injury of any person or damage to personal property caused or allegedly caused by the condition of the NRCA Courts or an act or omission of the NRCA Parties; 14.1.2 Any work performed on the Courts or materials furnished to the NRCA Courts, at the request of the NRCA Parties; and 14.1.3 NRCA's failure to perform any provision of this Lease or to comply with any requirement of law or any requirement imposed on the NRCA Courts by any duly authorized governmental agency or political subdivision. 14.1.4 NRCA's challenge or contest of Taxes under Section 13. NRCA's indemnity obligations herein shall not extend to any Claim arising from or in any manner relating to the sole gross negligence, willful misconduct or unlawful or fraudulent conduct on the part of City Indemnified Parties. The indemnity obligations herein shall survive the termination of this Lease. 14.2 City Hold Harmless. City agrees to indemnify, defend and hold harmless NRCA, its board, committees, officers, agents, volunteers, and employees (collectively, "NRCA Indemnified Parties") from and against any and all Claims, which may arise from or in any manner related (directly or indirectly) to the occupation or use of any part of City Courts by City, its residents, guests, employees, contractors, subcontractors, agents, invitees, or volunteers (collectively, "City Parties"), including without limitation any claim, liability, loss or damage arising by reason of: 14.2.1 The death or injury of any person or damage to personal property caused or allegedly caused by the condition of City Courts or an act or omission of City Parties; NEWPORT RIDGE COMMUNITY ASSOCIATION Page 13 6-19 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 14.2.2 Any work performed on the Courts or materials furnished to City Courts, at the request of City Parties; and 14.2.3 City's failure to perform any provision of this Lease. City's indemnity obligations herein shall not extend to any Claim arising from or in any manner relating to the sole gross negligence, willful misconduct or unlawful or fraudulent conduct on the part of NRCA Indemnified Parties. The indemnity obligations herein shall survive the termination of this Lease. 14.3 Not Limited bV Insurance. NRCA's indemnity obligations herein shall not be contingent upon or limited by the availability of any insurance policies. 15. NO DAMAGES Each Party acknowledges that it would not enter into this Lease if it were to be liable for consequential damages, lost profits, loss of rents or other revenues, loss of business opportunity, loss of goodwill or loss of use (collectively herein "Damages") under, or relating to, this Lease or any of the matters referred to in this Lease, including, without limitation, any and all plans, permits, licenses or regulatory approvals, CEQA documents, or any future amendments or enactments thereto related to the Courts (collectively herein "Lease Matters"). Accordingly, each Party covenants and agrees on behalf of itself and its successors and assigns, not to sue the other party for Damages. 16. INSURANCE NRCA shall maintain insurance in the types and amounts specified in Exhibit "E," attached hereto and incorporated herein by this reference. 17. CONDEMNATION OF THE NRCA PROPERTY If the use or possession of the entire NRCA Property or any material portion thereof shall be taken in condemnation proceedings, then City may terminate this Lease by giving written notice to NRCA within thirty (30) calendar days after the date of such taking. 18. TERMINATION, DEFAULT AND REMEDIES 18.1 Default; Termination. A Party's failure to perform any of the terms, conditions or covenants of this Lease or failure to perform such obligations within thirty (30) calendar days after written notice from the other Party shall constitute a default and material breach of this Lease. If the nature of an obligation is such that more than thirty (30) calendar days are reasonably required for performance, then a Party shall not be in default and breach if it provides the other Party with a written plan to cure and commences performance to cure within such thirty (30) calendar day period and thereafter diligently prosecutes the same to completion. Upon a Party's default and breach, the other Party NEWPORT RIDGE COMMUNITY ASSOCIATION Page 14 6-20 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 may terminate the Lease with thirty (30) calendar days' written notice to the defaulting Party. 18.2 Stay of Obligations. Neither Party hereto shall be under any obligation to perform or comply with its obligations pursuant to this Lease after the date of any default by the other Party. 18.3 Waiver of Rights. The failure or delay of either Party hereto to exercise any right or remedy shall not be construed as a waiver of such right or remedy or any default by the other Party. 18.4 Waiver of Right of Redemption. City waives any right of redemption or relief from forfeiture pursuant to California Code of Civil Procedure Sections 1174 and 1179 and pursuant to any existing or future statutory or decisional law in the event City is evicted or NRCA takes possession of the City Courts by reason of any default by City. 18.5 Construction Milestones. If construction of the Pickleball Courts Complex does not commence on or before December 31, 2023, or if construction is not completed by December 31, 2024, NRCA may terminate this Lease by providing written notice to City of such termination, and neither Party shall have any further obligations hereunder. 19. REIMBURSEMENT UPON TERMINATION OF LEASE Should this Lease terminate for any reason during the Initial Term, NRCA shall reimburse City for City's total costs and expenses incurred to date related to the design, implementation and management, installation and construction of the Pickleball Courts Complex. However, after the Commencement Date, the amount of NRCA's obligated reimbursement for City's costs shall be adjusted annually to reflect depreciation of the improvements based on an amortization schedule from the Commencement Date. The amortization period shall be thirty (30) years less the construction period, which shall be from the Effective Date until the Commencement Date. City shall have the right to change the amortization schedule subject to the terms of any grant funding that City receives for the construction of the Courts. 20. SURRENDER OF POSSESSION UPON EXPIRATION OR TERMINATION Upon the expiration or lawful termination of this Lease, the Pickleball Courts Complex shall remain on the NRCA Property, and City agrees to peaceably deliver possession of, and agrees to vacate without contest, legal or otherwise, the City Courts and Outer Improvements. NRCA, at its sole discretion, with the City's cooperation, may record a document evidencing the expiration or termination of the leasehold interest. 1+4 i!lei 1140 All notices pursuant to this Lease shall be deemed given when personally delivered or deposited in the United States mail, first class postage prepaid, and addressed as follows: NEWPORT RIDGE COMMUNITY ASSOCIATION Page 15 6-21 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 NRCA: NRCA c/o First Service Residential Attention: Lisa Barrett, Senior Community Manager 15241 Laguna Canyon Road Irvine, CA 92618 City: City of Newport Beach Attention: Real Property Administrator 100 Civic Center Drive Newport Beach, CA 92660 22. STANDARD CONDITIONS 22.1 Successors in Interest. This Lease shall be binding upon the successors of both Parties. 22.2 Compliance with all Laws. The Parties shall at their own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. 22.3 Waiver. A waiver by either Party hereto of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 22.4 Integrated Contract. This Lease represents the full and complete understanding of every kind or nature whatsoever between the Parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 22.5 Conflicts or Inconsistencies. In the event there are any conflicts or inconsistencies between this Lease and any other attachments attached hereto, the terms of this Lease shall govern. 22.6 Interpretation. The terms of this Lease shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party hereto by reason of the authorship of the Lease or any other rule of construction which might otherwise apply. 22.7 Severability. If any term or portion of this Lease is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Lease shall continue in full force and effect. 22.8 Controlling Law and Venue. The laws of the State of California shall govern this Lease and all matters relating to it and any action brought relating to this Lease shall NEWPORT RIDGE COMMUNITY ASSOCIATION Page 16 6-22 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 be adjudicated in a court of competent jurisdiction in the County of Orange, State of California. 22.9 No Attorney's Fees. In the event of any dispute or legal action arising under this Lease between the Parties, the prevailing Party to such dispute or legal action shall not be entitled to attorney's fees. 22.10 Counterparts. This Lease maybe executed in two (2) or more counterparts, each of which shall be deemed an original and all of which together shall constitute one (1) and the same instrument. Lease. 22.11 Time of Essence. Time is expressly declared to be of the essence in this [SIGNATURES ON NEXT PAGE] NEWPORT RIDGE COMMUNITY ASSOCIATION Page 17 6-23 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1 D1 B1 8E1 8E48 IN WITNESS WHEREOF, we have executed this Lease as of the day and year written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: 3 - —2,-4— CITY OF NEWPORT BEACH, A California municipal corporation Date: By: By: a n C. H Grace K. Leung Ity Attorney City Manager ATTEST: Date: Leilani I. Brown City Clerk NRCA: NEWPORT RIDGE COMMUNITY ASSOCIATION, a California nonprofit mutual benefit corporation Date: 4/7/2022 By: Signe Keller President Date: 4/7/2022 By: ?4" Jamie Gruweli Treasurer [END OF SIGNATURES] Attachments: Exhibit A: Depiction of NRCA Property Exhibit B: Depiction of City Property Exhibit C: Draft Depiction of Pickleball Courts Complex Exhibit D: [Reserved] Exhibit E: Insurance NEWPORT RIDGE COMMUNITY ASSOCIATION Page 18 6-24 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 Exhibit "A" Depiction of NRCA Property NEWPORT RIDGE COMMUNITY ASSOCIATION Exhibit A-1 6-25 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D11318E18E48 EXHIBIT "A" DEPICTION OF NRCA PROPERTY EXHIBIT A-1 6-26 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1 D1 B1 8E1 8E48 Exhibit "B" Depiction of City Property NEWPORT RIDGE COMMUNITY ASSOCIATION Exhibit B-1 6-27 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1 D1 B1 8E1 8E48 EXHIBIT "B" DEPICTION OF CITY PROPERTY EXHIBIT 13-1 6-28 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 Exhibit "C" Draft Depiction of Pickleball Courts Complex NEWPORT RIDGE COMMUNITY ASSOCIATION Exhibit C-1 6-29 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 EXHTSTT "C" DRAFT DEPICTION OF COMPLEX R i SEE MID -COURT DETAIL LEGEND LANDSCAPE 0 SRADE:CLOTH NEW AC SIOEWALN WATERFOUNTAIN TRASHCAN TABLE BENCH FENCE AREA DRAIN DRAINAGE PATH EXISTING SIDEWALK �VT CONNECT PROPOSED AREA DRAIN TO EXISTINGCATCH BASIN 'EXIST. FENCE :� EXISTING 1 SIDEWALK io y. 1 PROPOSED AREA DRAIN MID -COURT DETAIL NTS . P PRKING Loy ENTFMNCE GATE 15,E ,. E53 ? EXISTING / SIDEWALK - EXIST. FENCE PROPOSED. AREA DRAIN -. AEBUILP GATE 7MIT.WATE11011TAIN LAYOUT #7 0, THE CITY OF NEWPORT BEACH PICKLEBALL COURTS ° NEWPORT BEACH, CALIFORNIA NTS 6-30 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1 D1 B1 8E1 8E48 Exhibit "D" [RESERVED] NEWPORT RIDGE COMMUNITY ASSOCIATION Exhibit D-1 6-31 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 Exhibit "E" Insurance 1. Provision of Insurance. Without limiting NRCA's indemnification of City, and prior to commencement of any installation of the Courts (the "Pickleball Courts Complex"), NRCA shall obtain, provide and maintain at its own expense during the term of this Lease, policies of insurance of the type and amounts described below and in a form satisfactory to City. NRCA agrees to provide insurance in accordance with requirements set forth here. If NRCA uses existing coverage to comply and that coverage does not meet these requirements, NRCA agrees to amend, supplement or endorse the existing coverage. 2. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. 3. Coverage Requirements. A. Workers' Compensation Insurance. NRCA shall maintain Workers' Compensation Insurance providing statutory benefits and Employer's Liability Insurance with limits of at least one million dollars ($1,000,000) each employee for bodily injury by accident and each employee for bodily injury by disease in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, NRCA shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with California law for all of the subcontractor's employees. The insurer issuing the Workers' Compensation insurance shall amend its policy by endorsement to waive all rights of subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers. NRCA shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its elected or appointed officers, agents, officials, employees, and volunteers. B. General Liability Insurance. NRCA shall maintain commercial general liability insurance, and if necessary umbrella liability insurance, with coverage at least as broad as provided by Insurance Services Office form CG 00 01, in an amount not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000,000) general aggregate and two million dollars ($2,000,000) completed operations aggregate. The policy shall cover liability arising from premises, operations, products -completed operations, personal and advertising injury, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). NEWPORT RIDGE COMMUNITY ASSOCIATION Exhibit E-1 6-32 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 C. Automobile Liability Insurance. NRCA shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of NRCA arising out of or in connection with the Project to be performed under this Contract, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each accident. D. Builder's Risk Insurance. For Contracts with property exposures during construction, NRCA shall maintain Builders Risk insurance or an installation floater as directed by City, covering damages to the Project for "all risk" or special causes of loss form with limits equal to 100% of the completed value of contract, with coverage to continue until final acceptance of the Project by City. At the discretion of City, the requirement for such coverage may include additional protection for Earthquake and/or Flood. City shall be included as an insured on such policy, and NRCA shall provide City with a copy of the policy. 4. Other Insurance Requirements. The policies are to contain, or be endorsed to contain, the following provisions: A. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this Lease shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow NRCA or others providing insurance evidence in compliance with these requirements to waive their right of recovery prior to a loss. NRCA hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. B. Additional Insured Status. All liability policies including general liability, products and completed operations, excess liability, pollution liability, and automobile liability, if required, shall provide or be endorsed to provide that City, its elected or appointed officers, agents, officials, employees, volunteers shall be included as additional insureds under such policies. C. Primary and Non -Contributory. NRCA's insurance coverage shall be primary insurance and/or the primary source of recovery with respect to City, its elected or appointed officers, agents, officials, employees, and volunteers. Any insurance or self-insurance maintained by City shall be excess of NRCA's insurance and shall not contribute with it. D. Notice of Cancellation. All policies shall provide City with thirty (30) calendar days' notice of cancellation or nonrenewal of coverage (except for nonpayment for which ten (10) calendar days' notice is required) for each required coverage except Builders Risk Insurance, which shall contain an endorsement with said required notices. NEWPORT RIDGE COMMUNITY ASSOCIATION Exhibit E-2 6-33 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 5. Additional Agreements Between the Parties. The parties hereby agree to the following: A. Evidence of Insurance. NRCA shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation and other endorsements as specified herein for each coverage. Insurance certificates and endorsements must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Lease. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, NRCA shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B. City's Right to Revise Requirements. The City reserves the right at any time during the term of the Lease to change the amounts and types of insurance required by giving NRCA ninety (90) calendar days advance written notice of such change. C. Right to Review Subcontracts. NRCA agrees that upon request, all agreements with subcontractors or others with whom NRCA enters into contracts with on behalf of City will be submitted to City for review. Failure of City to request copies of such agreements will not impose any liability on City, or its employees. NRCA shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and NRCA shall ensure that City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a format at least as broad as CG 20 38 04 13. D. Enforcement of Contract Provisions. NRCA acknowledges and agrees that any actual or alleged failure on the part of City to inform NRCA of non-compliance with any requirement imposes no additional obligations on City nor does it waive any rights hereunder. E. Requirements not Limiting. Requirements of specific coverage features or limits contained in this Exhibit are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a NEWPORT RIDGE COMMUNITY ASSOCIATION Exhibit E-3 6-34 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 waiver of any type. If the NRCA maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for higher limits maintained by the NRCA. Any available proceeds in excess of specified minimum limits of insurance and coverage shall be available to the City. F. Self -Insured Retentions. NRCA agrees not to self -insure or to use any self - insured retentions on any portion of the insurance required herein and further agrees that it will not allow any indemnifying party to self -insure its obligations to City. If NRCA's existing coverage includes a self -insured retention, the self - insured retention must be declared to City. City may review options with NRCA, which may include reduction or elimination of the self -insured retention, substitution of other coverage, or other solutions. NRCA agrees to be responsible for payment of any deductibles on their policies. G. City Remedies for Non -Compliance. If NRCA or any of its subcontractors fails to provide and maintain insurance as required herein, then City shall have the right but not the obligation, to purchase such insurance, or to suspend NRCA's right to proceed until proper evidence of insurance is provided. H. Timely Notice of Claims. NRCA shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from NRCA's performance under this Lease, and that involve or may involve coverage under any of the required liability policies. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. I. Coverage not Limited. All insurance coverage and limits provided by NRCA and available or applicable to this Lease are intended to apply to the full extent of the policies. Nothing contained in this Lease or any other agreement relating to City or its operations limits the application of such insurance coverage. J. Coverage Renewal. NRCA will renew the coverage required here annually as long as NRCA continues to provide any work under this Lease. NRCA shall provide proof that policies of insurance required herein expiring during the term of this Lease have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from NRCA's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City with five (5) calendar days of the expiration of the coverages. K. Maintenance of General Liability Coverage. NRCA agrees to maintain commercial general liability coverage for a period of ten (10) years after termination of the Lease. NEWPORT RIDGE COMMUNITY ASSOCIATION Exhibit E-4 6-35 ATTACHMENT B 6-36 ATTACHMENT C I E TP RT RIDGE --� AT NE4VPORT COAST March 31, 2022 TO: The Newport Ridge Community Association Membership FROM: The Newport Ridge Community Association Board of Directors Dear Members, The Newport Ridge Community Association Board of Directors wanted to update you on the status of the pickleball courts in partnership with the City of Newport Beach, Recreation, Senior Services Department. With all funding coming from the City of Newport Beach. • There will be eight (8) pickleball courts • Two (2) courts dedicated to Newport Ridge that will use the Association's key fob • All eight (8) courts will be used for tournaments a few times a year • The field remains multi -purpose and can accommodate both softball, soccer and pickleball for all age groups • The Pickleball center will be landscaped appropriately • Parking for Pickleball center will be at the Newport Coast Community Center parking lot • Bike racks will be provided at the pickleball courts The Board of Directors is pleased to note that the construction will start January 2023 with estimated completion of June 2023. Should you have any further questions regarding this matter, please email our Community Manager, Lisa Barrett, at lisa.barrett@fsresidential.com. A FirstService Residential Supported Community 15241 Laguna Canyon Road, Irvine, CA 92618 * (949) 448-6000 * FAX (949) 448-6400 www.fsresidential.com 6-37 ATTACHMENT D RESOLUTION NO. 2021-108 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING APPLICATIONS FOR PER CAPITA GRANT FUNDS UNDER THE CALIFORNIA DROUGHT, WATER, PARKS, CLIMATE, COASTAL PROTECTION, AND OUTDOOR ACCESS FOR ALL ACT OF 2018 WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California ("State") for the administration of the Per Capita Grant Program, setting up necessary procedures governing application(s); WHEREAS, said procedures established by the State Department of Parks and Recreation require the grantee's governing body to certify by resolution the approval of project application(s) before submission of said applications to the State; and WHEREAS, the City of Newport Beach ("City"), as grantee, will enter into a contract(s) with the State to complete Per Capita Grant Program project(s). NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby approve the filing of project application(s) for Per Capita Grant Program project(s). Section 2: The City Council certifies that said grantee has or will have available, prior to commencement of project work utilizing Per Capita Grant Program funding, sufficient funds to complete the project(s). Section 3: The City Council certifies that the grantee has or will have sufficient funds to operate and maintain the project(s). Section 4: Pursuant to Public Resources Code ("PRC") Section 80063(a), the City Council certifies that all projects proposed will be consistent with the recreation element of the City's general plan. Section 5: The City Council certifies that these funds will be used to supplement, not supplant, local revenues in existence as of June 5, 2018 (PRC Section 80062(d)). Section 6: The City Council certifies that the grantee will comply with the provisions of Section 1771.5 of the State Labor Code. AM Resolution No. 2021-108 Page 2 of 4 Section 7: Pursuant to PRC Section 80001(b)(8)(A)-(G), to the extent practicable, as identified in the "Presidential Memorandum --Promoting Diversity and Inclusion in Our National Parks, National Forests, and Other Public Lands and Waters," dated January 12, 2017, the City will consider a range of actions that include, but are not limited to, the following: a) Conducting active outreach to diverse populations, particularly minority, low-income, and disabled populations and tribal communities, to increase awareness within those communities and the public generally about specific programs and opportunities. b) Mentoring new environmental, outdoor recreation, and conservation leaders to increase diverse representation across these areas. c) Creating new partnerships with State, local, tribal, private, and nonprofit organizations to expand access for diverse populations. d) Identifying and implementing improvements to existing programs to increase visitation and access by diverse populations, particularly minority, low- income, and disabled populations, and tribal communities. e) Expanding the use of multilingual and culturally appropriate materials in public communications and educational strategies, including through social media strategies, as appropriate, that target diverse populations. f) Developing or expanding coordinated efforts to promote youth engagement and empowerment, including fostering new partnerships with diversity -serving and youth -serving organizations, urban areas, and programs. g) Identifying possible staff liaisons to diverse populations. Section 8: Pursuant to PRC Section 80001(b)(5), the City agrees that to the extent practicable, the project(s) will provide workforce education and training, as well as contractor, and job opportunities for disadvantaged communities. Section 9: The City Council certifies that the grantee shall not reduce the amount of funding otherwise available to be spent on parks or other projects eligible for funds under this division in its jurisdiction. A one-time allocation of other funding that has been expended for parks or other projects, but which is not available on an ongoing basis, shall not be considered when calculating a recipient's annual expenditures, pursuant to PRC Section 80062(d). 6-39 Resolution No. 2021-108 Page 3 of 4 Section 10: The City Council certifies that the grantee has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Procedural Guide. Section 11: The City Council delegates authority to the City Manager, Recreation and Senior Services Director, or their designees, to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the grant scopes. Section 12: That the City agrees to comply with all applicable federal, State and local laws, ordinances, rules, regulations and guidelines. Section 13: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 14: If any section, subsection, sentence, clause or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 15: The City Council finds the adoption of this resolution 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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. . -X Resolution No. 2021-108 Page 4 of 4 Section 16: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 16th day of November, 2021. n Br ery ATTEST: 1.w Leilani I. Brown ? M City Clerk wu C`q�'FO RN% APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aa n C. Harp City Attorney 6-41 STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2021-108 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 16th day of November, 2021; and the same was so passed and adopted by the following vote, to wit: AYES: Mayor Brad Avery, Mayor Pro Tern Kevin Muldoon, Council Member Noah Blom, Council Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield, Council Member Will O'Neill NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 17th day of November, 2021. v�_ f vi . . Leilani I. Brown City Clerk Newport Beach, California 6-42 Attachment E PA2022-091 CDD Action Letter 6-43 COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658-8915 949-644-3200 www.newportbeachca.gov COMMUNITY DEVELOPMENT DIRECTOR ACTION LETTER Subject: Newport Ridge Park Pickleball Courts (PA2022-091) ■ Staff Approval No. SA2022-003 Site Location: 6331 East Newport Ridge Drive Applicant: Newport Ridge Community Association and The City of Newport Beach Legal Description: Parcel 1 of Lot Line Adjustment No. LL 94-006. See Attachment No. CD 1 for property depiction, incorporated herein by reference. On April 29, 2022, the Community Development Director approved Staff Approval No. SA2022-003 allowing the conversion of a portion of an existing baseball field into eight (8) outdoor pickleball courts. This approval is based on the following findings and subject to the following conditions. LAND USE AND ZONING Zone: PC53 (Newport Ridge), Planning Area 10 — Recreation General Plan: PR (Parks and Recreation) SUMMARY AND PROJECT DESCRIPTION The Applicant requests the conversion of a portion of an existing baseball field at Newport Ridge Park into eight (8) outdoor pickleball courts. The outdoor pickleball courts will be allocated between the City and Newport Ridge Community Association (NRCA), with six (6) courts designated for public use managed by the City and two (2) courts designated for NRCA's exclusive use. The project also includes new park amenities such as sidewalks, benches, picnic tables, water fountains, shade mechanisms, landscape, and hardscape. The Applicant's request does not change the total square footage or operational characteristics approved for Newport Ridge Park. No additional on -site improvements are proposed. BACKGROUND Newport Ridge Park. The County of Orange Planning Commission approved Planning Application No. PA95-0043 on March 30, 1995, for a site development permit to establish a 26-acre local park (Newport Ridge Park). The approval included grading and landscaping with the following major attractions: a sand volleyball court, a family picnic area, shade _ structures, play equipment, two (2) outdoor basketball courts, two (2) outdoor tennis courts, a multi -purpose sports field, restrooms, and connecting walkways. Pickleball Popularity. The sport of pickleball continues to rise in popularity among Newport Beach residents and is one of the fastest growing sports in the country. In Fall 2017, the City constructed four (4) dedicated pickleball courts at Bonita Canyon Sports Park Field No. 6 to address the growing community need and interest in the sport. As the sport continues to gain momentum as a mainstream recreational activity, the outdoor courts at Bonita Canyon Sports Park have become heavily impacted and do not meet the increasing demand for available court time. Adding new courts in the City would help fulfill the public demand for more open court times and could also support recreational programs such as league play, group/private lessons and tournaments for all skill levels and ages. NRCA and City Partnership. The Newport Ridge Community Association (NRCA) approached the City to partner in the development of pickleball courts at Newport Ridge Park. The park is owned and managed by NRCA and presents itself as the most viable park location in the City that meets important site conditions: 1. Distanced from homes to diminish potential noise impacts from pickleball play. 2. Existing parking that is sufficient to support the new recreational amenity. 3. Does not displace or impact any existing recreational programs. Lease Agreement. City staff is in the process of negotiating a thirty (30)-year lease with NRCA for use of land in exchange for development and maintenance costs of eight (8) pickleball courts along the eastern edge of the park, adjacent to Newport Coast Community Center parking lot. Per the agreement, the City will fund, design and construct eight (8) courts. Six (6) courts of which will be maintained and operated for public use. The remaining two (2) courts will be dedicated for NRCA use. In June 2021, the Parks, Beaches & Recreation (PB&R) Commission appointed three (3) commissioners to serve on the Newport Ridge Park Pickleball Courts Ad Hoc Committee to assist with conceptual design and community outreach. The Ad Hoc Committee, NRCA Board Members, Recreation & Senior Services and Public Works Departments have worked collectively to develop plans for the eight (8) unlit courts and site amenities. Proposed Improvements. The outdoor pickleball courts are designed to USA Pickleball Association (USAPA) specifications and the site will be furnished with shaded viewing areas, benches, trash cans, a bike rack and a bottle filling station. The two (2) northernmost courts will be fitted with a key fob system securing and limiting these two courts for NRCA resident access and use. The existing Newport Coast Community Center parking lot (122 spots) and restrooms will be utilized to support public use of the site. NRCA pickleball players will also have access to their community association parking lot and restrooms along the western edge of the park. In December 2021, the PB&R Commission voted to approve and forward design plans to City Council for final approval. On March 31, 2022, the Newport Ridge Community Association Board of Directors noticed their membership about the project and design parameters (Attachment No. CD 4) and received no opposition to the project. 6-45 II. FINDINGS AND FACTS Pursuant to Section 20.54.070 (Changes to an Approved Project) of the Newport Beach Municipal Code (NBMC), the Community Development Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use, without a public hearing, and waive the requirement for a new use permit application. This staff approval is based on the following findings and facts in support of the findings. In this case, the Director determined the proposed changes: Finding: A. Are consistent with all applicable provisions of this Zoning Code. Facts in Support of Finding: 1. Newport Ridge Park will continue to be utilized as a recreational use. The outdoor pickleball courts are typical accessory uses within a recreational park and are permitted within Area 10 of PC53 (Newport Coast Planned Community Text) designated for the subject property. 2. The Project provides new public accommodations in the form of outdoor pickleball courts to serve the recreational needs of Newport Beach's visitors and residents. The Project design will enhance the Recreation and Senior Services Department's service capabilities to fulfill the public need for more open court times and could also support recreational programs such as league play, group/private lessons and tournaments for all skill levels and ages. 3. Pursuant to Chapter X (Permit Regulations and Procedures) of the Newport Ridge Planned Community (PC53), a Changed Plan may make minor amendments or changes regarding the location or alteration of any use or structure and may be approved by the Planning Director pursuant to Orange County Zoning Code Section 7-9-150.3. The property has since been annexed to the City. The City Community Development Director serves in the capacity of the Planning Director. 4. The Project emphasizes a use that enables Newport Beach to continue as a self- sustaining community. The Project minimizes the need for residents to travel outside of the community to look for recreational services. The pickleball courts will complement existing recreational infrastructure at Newport Ridge Park and the Newport Coast Community Center. 5. The Project would adhere to interior and exterior noise standards of the Municipal Code. Per Condition of Approval No. 8, all noise generated by the Project must comply with the provisions of Chapter 10.26 (Community Noise Control) and other applicable noise control requirements of the NBMC. 6. The pickleball courts are unlit, unenclosed, and do not increase the total square footage or overall capacity for the project. The proposed changes are consistent • 1 • with the applicable conditions of approval of the original County Site Development Permit No. PA95-0043. 7. Sufficient parking will continue to be available to serve all uses on -site. The outdoor pickleball courts would not reduce existing parking. An on -site parking lot with 66 spaces (including accessible stalls) is adjacent to the multipurpose field. The 122 parking spaces at Newport Coast Community Center will also remain useable to serve the site. Finding: B. Do not involve a feature of the project that was a basis for or subject of findings or exemptions in a negative declaration or Environmental Impact Report for the project Facts in Suaaort of Findina: 1. No square footage or other new sports facilities are proposed at Newport Ridge Park. The pickleball courts and new park amenities will provide for existing patrons and will not result in excessive increased daily trips to the site. 2. The outdoor pickleball courts will replace an existing portion of a baseball field and does not involve grading of any previously undisturbed land. 3. There is no substantial evidence that the proposed pickleball courts will have any significant adverse impacts upon the environment. Final Environmental Impact Report (EIR) 517, certified on February 26, 1991, was determined adequate to serve as a Program EIR for Site Development Permit No. PA95-0043. The pickleball courts do not affect any basis for findings or Applicable Mitigation Measures of Final EIR 517 for PA95-0043. Finding: C. Do not involve a feature of the project that was specifically addressed or was the subject of a condition(s) of approval for the project or that was a specific consideration by the applicable review authority in the project approval. Facts in Support of Finding- 1. The proposed changes do not negatively impact a feature that was specifically addressed in staff reports or minutes prepared for Planning Application No. PA95- 0043. The recreational park was approved to serve the public with sports courts, picnic areas, and play structures. The proposed pickleball courts and park amenities do not substantially change the operation of the use, traffic, or parking for the site as was originally authorized under the original Site Development Permit No. PA95-0043. 6-4 7 2. Condition of Approval No. 3 in Site Development Permit No. PA95-0043 authorizes changes to the approved plan, including location and alteration of any use or structures, provided the change complies with the provisions and spirit and intent of the approval action and that the action would have been the same for the changed plan as the approved plan. In this case, the proposed change involves removing an existing baseball field to accommodate eight (8) pickleball courts, which are common recreational amenities in public and private parks today. If the sport had the popularity as it does today, it is reasonable to assume that the pickleball courts would have been included at the time the park was originally developed. As a result, altering the existing baseball field to accommodate pickleball courts complies with the original approval's provisions, intent, and spirit. 3. The proposed pickleball courts do not result in any additional impacts beyond those analyzed prior to original project approval as documented in Planning Application No. PA95-0043. The project does not displace or impact any existing recreational programs, but serve to enhance existing amenities for residents and visitors of Newport Beach. 4. No conflict exists between the project and identified Natural Community Conservation Planning (NCCP) area. Development of the courts and park amenities are on an existing baseball field and adheres to the mitigation measures and conditions of approval of the approved park. 5. The proposed outdoor pickleball courts are approximately 300 feet away from the nearest residential use and separated by San Jaoquin Hills Road. Existing parking is sufficient to support the new recreational amenity. Since the courts are unlit and no amplified noise is permitted, negative impacts to residential uses are not anticipated. 6. Off-street parking will be maintained as established in the County of Orange Zoning Code. The Director has determined sufficient parking will be provided in the existing 122-space surface parking lot at Newport Coast Community Center and 66-space surface parking lot at Newport Ridge Park. Finding D. Do not result in an expansion or change in operational characteristics of the use. Facts in Suaaort of Findina: 1. The Project's size and operational characteristics complement the existing park amenities such as the tennis and basketball courts on -site. The addition of the pickleball courts will not result in a change in the operational characteristics of the park but will instead provide additional amenities to complement the existing facilities. The pickleball courts are typical athletic facilities found at parks. 2. The Recreation and Senior Services Department, Public Works Department, and the Parks, Recreation, and Beach Commission reviewed the application. The . ., Project is required to obtain all applicable permits from the appropriate City Departments and must comply with the most recent, City -adopted version of the California Building Code. III. DETERMINATION The Community Development Director determined that the proposed pickball courts and park amenities are consistent with the plans approved by the Orange County Planning Commission in conjunction with the review and approval of Planning Application No. PA95- 0043. IV. CONDITIONS 1. The development shall be in substantial conformance with the approved site plan, floor plans, materials board, and elevations stamped and dated with the date of this approval (except as modified by these conditions of approval). 2. The development shall be in substantial conformance with all applicable conditions of the County of Orange's Site Development Permit No. PA95-0043. 3. The use of amplified sound within the outdoor pickleball courts area shall be prohibited. 4. This approval shall expire unless exercised within twenty-four (24) months from the date of approval as specified in Section 20.54.060 (Time Limits and Extensions) of the NBMC, unless an extension is otherwise granted. 5. The Applicant is required to obtain a building permit from the City's Building Division and Fire Department. The construction plans must comply with the most recent, City - adopted version of the California Building Code. The construction plans must meet all applicable State Disabilities Access requirements. 6. The Applicant shall comply with all project design features, mitigation measures, and standard conditions contained within the approved Mitigation Monitoring Reporting Program (MMRP) as approved by the County of Orange in Planning Application No. PA95-0043 for the project. 7. Any modification to the parking lot and/or number of parking spaces shall be reviewed and approved by the Planning Division. 8. All noise generated by the proposed use shall comply with the provisions of Chapter 10.26 and other applicable noise control requirements of the Newport Beach Municipal Code (NBMC). The maximum noise shall be limited to no more than depicted below for the specified time periods unless the ambient noise level is higher - EMU Between the hours of 7:OOAM and 10:OOPM Between the hours of 10:OOPM and 7:OOAM Location Interior Exterior Interior Exterior Residential Property 45dBA 55dBA 40dBA 50dBA Residential Property located within 100 feet of a commercial property 45dBA 60dBA 45dBA 50dBA Mixed Use Property 45dBA 60dBA 45dBA 50dBA Commercial Property N/A 65dBA N/A 60dBA 9. To the fullest extent permitted by law, Applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, employees, and agents from and against any and all claims, 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 which may arise from or in any manner relate (directly or indirectly) to City's approval of the Newport Ridge Park Pickleball Courts including, but not limited to, Staff Approval No. SA2022-003 (PA2022-091). This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorneys' fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by Applicant, City, and/or the parties initiating or bringing such proceeding. The Applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The Applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. APPEAL PERIOD: An appeal may be filed with the Director of Community Development or City Clerk, as applicable, within fourteen (14) days following the date the action or decision was rendered. For additional information on filing an appeal, contact the Planning Division at 949 644-3200. On behalf of Seimone Jurjis, P.E., C.B.O., Community Development Director By: a "I "- �� Patrick Achis Assistant Planner JC / pda Attachments: CD 1 Property's Legal Depiction CD 2 Vicinity Map CD 3 Excerpt of PA95-0043 Conditions of Approval and Findings CD 4 Project Plans 6-50 Attachment No. CD 1 Property's Legal Depiction 6-51 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D11318E18E48 EXHIBIT "A" DEPICTION OF NRCA PROPERTY EXHIBIT A-1 6-52 Attachment No. CD 2 Vicinity Map 6-53 VICINITY MAP Staff Approval No. SA2022-003 PA2022-09 6331 East Newport Ridge Drive 6-54 Attachment No. CD 3 Excerpt of PA95-0043 Conditions of Approval and Findings 6-55 f�a.. � County of Orange Q&J(b FILE; PA 95-0043 DATE TO: 'ilefRecordfApplicant FROM: Michael M. Ruane, Director EMA SUBJECT: Planning Application PA 95-0043 for Site Development Pexrnit APPLICANT: Coastal Community Builders I. NATURE OF PROTECT, Site plan approval for development of a local park (Newport Ridge LooaZ Park) in Planning Area 10 of the San Joaquin Hills Planned Community (marketed and more commonly known as Newport Ridge). Planning Area 10 has a land use designation of R "Recreation" and the proposed park is a permitted use subject to the approval of a site Development Permit. The 26 acre park, in addition to grading and landscaping has the following major attractions: a sand volleyball court; a family picnic area with four picnic tables; a group picnic area with shade structure; a tot lot/play area, with play equipment; two basketball oourt5; two tennis courts; a multipurpose field that can be configured into a soccer field or two softball fields; a restroom; and, conneating walkways with seating areas throughout the park. A parking lot with 66 spaces (including three handicapped spaces) is located adjacent to the multipurpose field. Newport Ridge Park is located on the north side of San Joaquin Fills Road and is bordered by Newport midge Drive East and the now closed Coyote Canyon Landfill. Park construction is by Coastal Community Builders and the maintenance will be the responsibility of the Newport Ridge Community associations. This park and two view parks located in Planning Area 17 {Planning Application PA 95-0044) satksfies the local park requirements for the San Joaquin Hills Planned community. l-T. REFERENCE, (Authority for AdmInistrative action is given by what ordinance, regulation, etc.) San Joaquin Hills Planned Community Chapters IV and x; and, Orange county Zoning Code Section 7-9-150. 6-56 l .I PA 95-004e3 Neport Ridge Park Page i of 7 III. ENVIROMMENTAL DOCUMENTATION: The proposed project is covered by Final EIR 517. section V of this report, contains the required CEQA Finding. IV. CERTIFICATION. I hereby certify that the subject proposal has been conditionally Approved as noted below. Michael X. Ruane, Director EMA By: Charles M. Shq4naker, Chief Date;h� Site Plannin, Section WVH V. FTNDING$: I. The use or project proposed is consistent with the objectives, policies, general land uses and programs specified by the General Plan. II. The use, activity or improvement(s) proposed, subject to the specified condition$, is consistent with the provisions of the Zoning Code and the San Joaquin Hills Flanged, Community regulations applicable to the property. III. Final RIR 517, previously certified on February 26, 1991, was considered prior to approval of the project, was determined adeglaate to serve as a Program EIR far this projaot, and- satisfies all the requirements of CEQA. IV. The location, size, design and operating characteristics of the proposed use will not create unusual noise, traffic or other conditions or situations that may be objectionable, detrimental or incompatible with other permitted uses in the vicinity. 6-5 7 4 PA 95-0043 report Ridge Park Page 3 of 7 V. The application will not result in conditions or circumstances contrary to the public health and safety and the general welfare. VI. That the permit would not allow development of a project that would contribute to the need for a fire station or library facility for which a faa is requirad, as that term in dc:£ined in 8oction 7-9-701. V1I. That the proposed use will not significantly change the traffic generation characteristics ❑f the existing use, with respect to the San Joaquin Hills Transportation Corridor Major Thoroughfare and Bridge Fee Program, thus corridor fees are found not tc be appropriate in this instance. 1. LU NA NA BASIC f ZQNYNG REQUL.3,TIQNS This approval constitutes approval of the proposed project only to the extent that the project complies with the Orange County Zoning Code and any other applicable zonirng regulations. Approval does not include any action or finding as to Compliance of approval of the project regarding any other applicable ordinance, regulation or requirement. 2. LU IAA NA BASIC/TIME LIMIT Thic approval is valid for a period of 24 months from the date of final determination. If the use approved by this action is gat established within such period of time, this approval shall be terminated and shall thereafter be null and void. 3. LU NA NA BASIC/PRECISE PLAN Except as otherwise provided herein, this permit is approved as a precise plan. After any application has been approved, if changes are proposed regarding the location or alteration of any use or structure, a changed plan may be submitted to the Director-EMA for approval. If the Director determines that the proposed grange complies with the provisions and the spirit and intent of the approval action, and that the action would have been the same for the changed plan as for the approved plot plan, he may approve the changed plan without requiring a new public hearing. 4. LU NA NA BASICICOMPLIANCE Failure to abide by and faithfully comply with any and all conditions attached to this approving action shall constitute grounds for the revocation of said action by the Orange County Planning Commission. PA 95-0043 Keport Midge park Page 4 of 7 5. LU NA NA BASICfOBLIGATIONS Applicant shall defend at his/her sole expense any action brought against the County becauss of issuance of this permit or, in the alternative, the relinquishment of such permit. Applicant will reimburse the County for any court costs and attorney's fees which the County may be required by a court to pay as a result of such action. County may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve applicant of his obligations under this condition. 6. DS DS G GEOLMY RPT Prior to the issuance of a grading permit, the applicant shall submit a geotechnical report to the Manager, Development Services, for approval. The report shall include the information and be in a form as required by the Grading Manual. 7. DS DS G GRADING DEVIATION Prior to the ic!�uance of any grading permits, if review of the grading plan for this property by the Manager, Development Services, indicates significant deviation from the proposed grading illustrated on the approved tentative tract map, specifically with regard to slows heights, slope ratios, and pad elevations and configuration, the plan shall be reviewed by the Subdivision Committee for a finding of substantial conformance. Failure to acbleve such a finding will require processing a revised tentative tract map; or, if a final tract/parcel map has been recorded, a new tentative tract/parcel map or a site development permit application per Orange County Zoning Cade section 7-9-139 and 7-9-150. S . lip HIS Gib GRADING ADJ PRK Prior to the recordation of the first final tractfparael map or issuance of the first grading permit for projects located immediately adjacent to or including portions of regional parks, significant open space corridors, or other environmentally sensitive areas, the project proponent shall provide evidence acceptable to the Manager, Development Services, in consultation with the Manager, HB&P/Program Planning, that graded areas will be compatible with natural land characteristics of the adjacent areau. 'Treat- ment to achieve the desired effect Shall include: A. Smooth and gradual transition between graded slopes and existing grades using variable slopes ratios (2:1-4.1); and B. Urban Edge Treatment/Landscaping Plan(s) for all graded areas adjacent to open space; and C. Incorporating architectural and design techniques into the project in order to enhance off -site views attained from within parks and other environmentally sensitive areas, 9. 2P D5 G EROSION CONTROL Prior to the issuance of grading permits, the project proponent shall submit to the Manager, Development services, for review and approval, an Erocicn Control. Plan. 6-59 PA 95-0043 report Midge Paris Page 5 of 7 10. F F G WATER IMPV PLANS Prior to the issuance of grading permits, water improvement plans shall be submitted to and approved by the Fire Chief to ensure adequate fire protection and financial security is posted for the installation. The water system design, location of valves, and the distribution of fire hydrants will be evaluated and approved by the Fire Chief. 11. F F E COMBSTELE CQNST Prior to the issuance of any building permits for combustible construction, a letter and plan From the developer shall. be submitted to and approved by the Fire Chief. This letter and plan shall state that water for fire fighting purposes and an all weather fire access road shall be in place before any combustible materials are placed on the site. 12. F F E WATER AVAILABILITY Prior to the issuance of any building permits, an Orange County Fire Department Water Availability Form shall be submitted to and approved by the Engineering Section of the Orange County Fare Department. If sufficient water to meet fire flow requirements is not available, an automatic fire extinguishing system shall be installed in each structure, ] F F U FIRE 8YDPANT MARi{riR Prior to the issuance of any certificates of use and occupancy, all fire hydrants shall have a "Blue Reflective Pavement Marker" indicating its location on the street or drive per the Orange County Fire Department Standard. on private property these markers are to be maintainers in good condition by the property owner. 14. F F S BUILDING USB Prior to the issuance of any building permits, the applicant shall submit a detailed letter of intended use for each building to the Fire Chief. 25. F F G STREET PLANS Prior to the issuance of any grading permits, plans for all street and courts, public or private, shall be submitted to and approved by the Fire Chief. The plans shall include sectional view, and indicate the width measured flow line to flow line. All proposed fire apparatus turnarounds shall be clearly marked. 16. F F R ?IRE HAZARD Prior to the recordation of a final tract/parcel map, a note shall be placed on the map meeting the approval of the Fire Chief that the property is in a (high) fire hazard due to wildland exposure. 17. F F GB FUEL MOD PLAN Prior to the issuance of any grading permits, a fuel modification plan and program shall be submitted and approved by the Fire Chief. Contact the wi.ldland Fire Defense Planning Section at 744-0498 for requirements and clearance of thi.e condition. The plan shall indicate the proposed means of achieving an acceptable level of risk to structures by vegetation. Include the method {mechanical or hand labor) for removal of flammable vegotation on Me Fa 95-0043 Deport Ridge Park Page 6 of 7 and the planting of drought tolerant fire resistant plants. The approved fuel modification plan shall be installed prior to the issuance of building permit$, under the supervision of the Fire Chief, and completed prior to the issuance of any use and occupancy permits. The CC&R's shall contain provision for maintaining the fuel modification zones including the removal of all dead and daring vegetation and the inspection and correction of any deficiencLea in the it.rigation system three times a year. is. TE TR G SPECIAL - DRIVEWAY Prior to the issuance of grading permits, the driveway located along San Joaquin Hills Road near its intersection with Newport Coast Drive shall be removed and replaced with curb, gutter and sidewalk in a manner meeting the approval of the Manager, Traffic Engineering. 19. BP BP a CONST NOISE A. Prior to the issuance of any grading permits, the project proponent shall produce evidence acceptable to the Manager, Building Permits, that: (1) All coristzuvtion vehicles or acluipment, fixed or mobile, operated within 1,000' of a dwelling shall be equipped with properly operating and maintained mufflers. (2) All operations shall comply with orange County Codified ordinance Division 6 (Noise Control). (3) Stockpiling and/or vehicle staging areas shah be located as far as practicable from [swelling's. B. notations in the above format, appropriately numbered and included with other notations on the front sheet of grading plans, will be considered as adequate evidence of compliance with this condition. 20. EP HP G PALED GRD OBS 1f required by the Manager, HBtP/Program Manning, prior to the issuance of a grading permit, the project applicant small provide written evidence to the Manager, Development Services, that a County -certified paleontologist has been retained to observe grading activities and salvage and catalogue fossils as necessary. 21. EP BV B LIGHT AND GLARE Prior to issuance of any building permit, the applicant shall demonstrate that all exterior lighting has been designed and Located so that all direct rays are confined to the property in a manner meeting the approval Of the Manager, Building Permits. 22. ER SD B POLLUTANT RUNOFF Prior to issuance of building permits, permit applicant shall submit for approval, of the Manager, Development Services, a Water Quality Management Plan (WQMP) specifically identifying Best Management Practices (BMPS) that will be used on site to control predictable pollutant runoff. 6-61 PA 95-0043 Report Ridge Park Page 7 of 7 23. HF BI U PVT LANDS? Prior to the issuance of certificates of use and occupancy, landscape plans for privately maintained landscape areas shah, be prepared by a licensed landscape architect taking into account an approved preliminary landscape plan (if arty), RMJk Standard plans, adopted planned community, scenic corridor and specific plan requirements, Grading and Excavation Cade, recreation trail and erosion control requirements, Subdivision Code, zoning Code, conditions of approval, Water Conservation Measures contained in Board Resolution 90--487 (Water Conservation Meaijures),Wand Board Reaulutl4n 90-1341 (water Conservation implementation Plan). The plans shall be certified by the landscape architect or the licensed landscape contractor, as applicable, as to compliance witt said requirements. Furthermore, applicant shall have installed said landscaping and irrigation system and shall have a licensed landscape architect verify that the landscaping and irrigation system was installed in accordance with the certified plan. Applicant shall furnish a landscape plan certification and installation verification, including an irrigation management report for each landscape irrigation system, ,and any other required implementation report determined applicable, in writing to the Manager, Building Inspection, prior to the issuance of any certificates of use and occupancy. 6-62 Attachment No. CD 4 Project Plans 6-63 DocuSign Envelope ID: EAF6CE4A-0293-4FD8-8C69-1D1B18E18E48 -- XHIBIT °C° DRAFT DEPICTION OF COMPLEX SEE MILL -COURT DETAIL LE3END uwrYlr�F! 9wCl QOrn E3 NEPYACSIDERkK a WATfRPww mw Trmmc*w TrBi! ".r BENCH FEW3= +AEF UMN E79STING SIDEWALK CQWWT PRQPWIED AREA DP uN .. TOEY,STgGCATN9A.SiN - VMT FE ExISind.- SIDEWALK , POSE0 ARFA DALApi MID -COURT DETAIL KP VI El{W-MCF GATE Cx1%ThG a�EWALK E71>ST HENCE 'FRDPDGED ,yiEk PRAIN R@Q b!LD GATE } 1p - EXIST WATER PDLINTAIN LAYOUT #7 THE CITY QF NEWPORT BEACH PICKLEBALL COURTS NEWPORT BEACH, CALIFORNIA 1,}Tg