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HomeMy WebLinkAbout25A - BRISTOL STREET CORRIDORREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: SEPTEMBER 2, 2008 TITLE: PURCHASE AGREEMENTS FOR BRISTOL STREET CORRIDOR (PROJECT 06-1500-C) t i~ i --_ CITY MANAGER ''~~tECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15` Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and Clerk of the Council to execute the attached purchase agreements, subject to non-substantive changes approved by the City Manager and City Attorney, with the following: • Clinton Do and Thuat Thi Cao for $117,500 • Sergio H. Esparza and Delia O. Esparza for $92,660 DISCUSSION On March 6, 2006 the City Council approved the cooperative agreement between the City and the Orange County Transportation Authority to fund Bristol Street improvements from McFadden Avenue and Pine Street. Improvements include widening of the street from four lanes to six, construction of landscaping in the parkways and the median islands, traffic improvements, drainage structures, sound walls, and other amenities as outlined in the Specific Plan. To accommodate the widening, the acquisition of a portion of the Do property located at 1305 W. Richland and the Esparza property located at 1306 W. Richland is required (Exhibit 1). The proposed partial acquisition will not impact the building. 25A-1 Purchase Agreements September 2, 2008 Page 2 for 1305 and 1306 W. Richland ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed project has been determined to be adequately evaluated in the previously prepared Environmental Impact Report/Environmental Impact Assessment EIR No. 89-01 approved by City Council in 1990. FISCAL IMPACT Funds are appropriated in the Select Street Construction Fund (account no. 59-553-6611) . ~_ James G. Ross Executive Director Public Works Agency APPROVED AS TO FUNDS AND ACCOUNTS: - r~ .~ ~ ~rancisco Gutierrez Executive Director Finance & Mgmt. Services Agency 25A-2 LEGEND SUBJECT PROPERTY I I I ~ I i i ~ i ~ i ~ , ~,-~ 1 tY-~ I ~ 1 ~ I O 1~ i _ i____ i _ i ~ ~ , --- - RAYMAR ST ~~ ~ ° op i a- i o i r~ ~ `~- i i i I I I --------I --------i--- r- i i i I I ~ I O ~ ~~ AVE ------~--- -r----- --- -I ~ i ~ i ~ o ; ~ ~ I ~ I ~ I i ~ i -L'-- -- ------~--- --~ I I --'-- --- -T-- I I I ' I i ~ i I I i M ~ I I M j ~ j I I ~ / TOLLNER ST I -- ----J--------T--------I , i i i i i i i I ~ i ~ i ~ i N I N I N I L RAYMAR ST ~ ~ ~ I N N ' i I I I I I i I 1 I ~------r-------f --------.~-. I I I I I I I i i i i rn ! a~ ! ~n ~ I N I N_ ~ N ~ - `--I-- -~- - - - ~- RICHLAI~ AVE --- -----T----- i ~ 7a N i --------- -----T--~ 707 L----------- I UNlK -----{ 1 71l ----------- i-- ~----- i -----i ~r~ i i i i ~1~ ~ e. ~ f ~---------~ I (----------~ ' ~ ~~~ ~,~ EXHIBIT 1 SANTA ANA cmr COUNCIL PURCHASE AGREEMENTS FOR Pr W~~ AGENDA DATE BRISTOL STREET CORRIDOR ~, sE~rE~neER 2, Zoos (PROJECT 06-1500-C) PUBLG wnc5 ,~ 25A-3 PURCHASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY AND BILATERAL ESCROW INSTRUCTIONS THIS AGREEMENT (hereinafter "PSA"), entered into this _ day of , 2008, between the CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California (hereinafter "City" or "Buyer"), and Clinton Do and Thuat Thi Cao, (hereinafter "Seller"), regardless of number or gender; THEREFORE, for and in consideration of their promises, covenants and agreements hereinafter set forth, and subject to the terms, conditions and provisions hereinafter set forth, Seller agrees to sell to City, and City agrees to purchase from Seller, all that certain real property located in the State of California, County of Orange, City of Santa Ana, described as follows: (hereinafter "Said Real Property") described as follows: SEE EXHIBIT "A" -Legal Description And EXHIBIT "B" -Graphical Depiction ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HERETO (Commonly known as portion of 1305 W. Richland Avenue, Santa Ana, CA) Said purchase and sale of Said Real Property shall be in accordance with and subject to all of the following terms, conditions, promises, covenants, agreements and provisions, to wit: 1. Convevance by Seller. Seller agrees to convey Said Real Property to City, by Grant Deed, at the office of First American Title Insurance Company, 2 First American Way, Santa Ana, California, within thirty (30) days from and after the date on which the City has approved this Agreement. 2. Title to be Conveyed. (a) Seller agrees that, except as may hereinafter be otherwise expressly provided, Said Real Property shall be conveyed by Seller to City, as aforesaid, free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non-monetary, general or specific, including any and all leasehold interests), liens, clouds or defects in title, except those exceptions shown in Paragraph 15 below. Seller hereby warrants that the title to Said Real Property to be conveyed by Seller to City shall be free and clear as provided above. Seller further agrees that acceptance by City of any deed to Said Real Property, with or without knowledge of any condition, restriction, reservation, exception, easement, assessment, profit, limitation, encumbrance (whether monetary or non-monetary, general or specific, and including any and all leasehold interests), lien, cloud or defect in title, shall not constitute a waiver by City of its right to the full and clear title hereinabove agreed to be conveyed by Seller to City, nor of any right which might accrue to City because of the failure of Seller to convey title as hereinabove provided. 3. Title Insurance. Seller agrees to deliver to City, concurrently with the conveyance of Said Real Property to City, within the time and at the place hereinabove specified for said conveyance of Said Real Property, a policy of title insurance to be issued by the above mentioned title company, with the City therein named as the insured, in the amount of ONE HUNDRED SEVENTEEN THOUSAND, FIVE HUNDRED AND NO/100 DOLLARS ($117,500) insuring City's title to Said Real Property is free and clear of any and all conditions, restrictions, Page 1 of 9 Seller's Initials 2 5A-4 reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non-monetary, general or specific, and including any and all leasehold interests), liens, clouds or defects in title, excepting such specific ones as city may hereinafter expressly agree to take subject to. Acceptance by City of any such policy of insurance, whether such insurance complies with the requirements of this paragraph or not, shall not constitute a waiver by City of its right to such insurance as is herein required of Seller, nor a waiver by the City of any rights of action for damages or any other rights which may accrue to City by reason of the failure of Seller to convey title or to provide title insurance as required in this PSA. 4. Escrow. City agrees to open an escrow at the office of First American Title Insurance Company, 2 First American Way, Santa Ana, California, (hereinafter "Escrow Agent") within five (5) days from and after the date on which the City has approved this PSA. This PSA constitutes the joint escrow instructions of the City and the Seller and a duplicate original of this PSA shall be delivered to the Escrow Agent upon the opening of the escrow. Escrow is to close within 120 days after Owner's execution of this PSA. The Escrow Agent hereby is empowered to act under this PSA, and upon indicating its acceptance of this Section 4 and of the General Provisions described in Exhibit "C" attached hereto and incorporated herein by this reference, in writing, delivered to the City and to the Seller within five (5) days after delivery of this PSA, shall carry out its duties as Escrow Agent hereunder. City agrees to bear and Escrow Agent is hereby authorized to charge to the City the cost of any transfer taxes, recording fees, cost of title insurance, reconveyance fees, document preparation fees, escrow fees and any other closing costs incidental to the conveying of Said Real Property to City. Penalties for prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedures Section 1265.240. The liability to the Escrow Agent under this Agreement is limited to performance of the obligations imposed upon it under Section 4, Section 6, Section 11 and Exhibit "C" of the General Provisions of this PSA. 5. Property Taxes. Such real property taxes, if any, on Said Real Property for the fiscal year within which Said Real Property is conveyed to City as are unpaid at the time of said conveyance shall be cleared and paid in accordance with the provisions of Section 4986 of the Revenue and Taxation Code of the State of California. Seller shall be eligible for a refund under Section 5096.7 of the Revenue and Taxation Code of the State of California for that portion of property taxes on Said Real Property for said fiscal year which have been paid prior to the date the deed conveying Said Real Property to City is recorded which is allocable to that portion of the fiscal year which begins on the date the deed conveying Said Real Property to City is recorded and made uncollectible if unpaid by reason of Section 4986 of the Revenue and Taxation Code of the State of California. All unpaid taxes on Said Real Property for any and all years prior to the fiscal year within which said conveyance is made shall be paid by Seller before conveyance of Said Real Property to City. 6. Payment of Purchase Price. City agrees to pay to Seller, and Seller agrees to accept from City, as and for the full purchase price for Said Real Property, fixtures & equipment (improvements pertaining to the realty), good will (if any), severance damages, and bonus value (if applicable), the total cash sum of ONE HUNDRED SEVENTEEN THOUSAND, FIVE HUNDRED AND NO/100 DOLLARS ($117,500). Page 2 of 9 Seller's Initials 25A-5 City agrees to deposit said purchase price in escrow with the Escrow Agent within Sixty (60) days from and after the date on which the City has approved this Agreement, and the Escrow Agent is hereby authorized to pay said purchase price to Seller only after or concurrent with the satisfaction of the following conditions precedent: (a) Conveyance of Said Real Property by Seller to City as hereinabove provided; (b) Acceptance by City of a Grant Deed conveying Said Real Property to City; (c) Delivery to City of the policy of title insurance as hereinabove provided; (d) Recordation of the Grant Deed conveying Said Real Property to City. (e) Escrow Agent shall not record the Grant Deed until City has deposited with Escrow Agent the Purchase Price in full. 7. Possession. Seller agrees to deliver to City, on the date the Grant Deed conveying Said Real Property to City is recorded, quiet and peaceful possession of Said Real Property. 8. Blank. This section intentionally left blank. 9. Waivers. The waiver by City of any breach of any covenant or agreement herein contained on the part of Seller shall not be deemed or held to be a waiver of any subsequent or other breach of said covenant or agreement nor a waiver of any breach of any other covenants or agreements contained herein. 10. Heirs, Assigns, Successors in Interest. This Agreement, and all the terms, covenants and conditions hereof, shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective parties hereto. 11. Time is of the Essence. In all matters and things hereunder to be done and in all payments hereunder to be made, time is and shall be of the essence. 12. Permission to Enter on Premises. Seller hereby grants City, and its authorized agents, permission to enter upon Said Real Property at all reasonable times prior to close of escrow for the purpose of making necessary inspections. 13. Just Compensation. Seller acknowledges and agrees that said purchase price is just compensation at fair market value for Said Real Property and severance damages. Page 3 of 9 Seller's Initials 25A-6 14. Notices. The mailing address of the City of Santa Ana is 20 Civic Center Plaza, M-36, P.O. Box 1988, in the city of Santa Ana 92702, County of Orange, State of California. The mailing address of the Seller is: 1305 West Richland Avenue Santa Ana, California 92703 15. Exceptions. City agrees to accept title to Said Real Property subject to the following: NONE 16. Agreement. Performance of this Agreement by City shall lay at rest, each, every and all issue(s) that were raised or could have been raised in connection with the acquisition of Said Real Property by City. 17. Hazardous Waste. Neither Seller nor, to the best of Seller's knowledge, any previous owner, tenant, occupant, or user of the Property used, generated, released, discharged, stored, or disposed of any hazardous waste, toxic substances, or related materials ("Hazardous Materials") on, under, in, or about the Property, or transported any Hazardous Materials to or from the Property. Seller shall not cause or permit the presence, use, generation, release, discharge, storage, or disposal of any Hazardous Materials on, under, in, or about, or the transportation of any Hazardous Materials to or from, the Property. The term "Hazardous Material" shall mean any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste", "extremely hazardous waste", or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material", "hazardous substance", or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as a "hazardous substances" pursuant to Section 311 of the Clean Water Act, (33 U.S.C. S1317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. S6901 et sec . (42 U.S.C. S6903) or (xi) defined as a "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, as amended by Liability Act, 42. U.S.C. S9601 et sec.. (42 U.S.C. S9601). 18. Compliance With Environmental Laws. To the best of Seller's knowledge the Property complies with all applicable laws and governmental regulations including, without limitation, all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental matters, including, but not limited to, the Clean Water, Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and Liability Acts, and the California Environment Quality Act, and the rules, regulations, and ordinances of the city within which the subject property is located, the California Department of Page 4 of 9 Seller's Initials 25A-7 Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all applicable federal, state, and local agencies and bureaus. 19. Indemnity. Seller agrees to indemnify, defend and hold the City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (i) the presence, release, use, generation, discharge, storage, or disposal of any Hazardous Material on, under, in or about, or the transportation of any such materials to or from, the Property, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment, or license relating to the use, generation, release, discharge, storage, disposal, or transportation of Hazardous Materials on, under, in, or about, to or from, the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, punitive damage, cost, or expense arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease, or death, tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, pollution, contamination, leak, spill, release, or other adverse effect on the environment). This indemnity extends only to liability created prior to or up to the date this escrow shall close. Seller shall not be responsible for acts or omissions to act post close of this escrow. 20. Contingency. It is understood and agreed between the parties hereto that the enforceability of this PSA, and the escrow created hereby, is contingent upon the express acceptance and approval of this PSA by City. The execution of this PSA by City, and the delivery of same to Escrow Agent, shall constitute said acceptance and approval. 21. Modification and Amendment. This Agreement may not be modified or amended except in writing signed by the Seller and City. 22. Partial Invalidity. Any provision of this Agreement that is unenforceable or invalid or the conclusion of which would adversely affect the validity, legality, or enforcement of this Agreement shall have no effect, but all the remaining provisions of this Agreement shall remain in full force. 23. Captions. Captions and headings in this Agreement, including the title of this Agreement, are for convenience only and are not to be considered in construing this Agreement. 24. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 25. No Reliance By One Party On The Other. Each party has received independent legal advice from its attorneys with respect to the advisability of executing this Agreement and the meaning of the provisions hereof. The provisions of this Agreement shall be construed as to their fair meaning, and not for or against any party based upon any attribution to such party as the source of the language in question. 26. No Third Party Beneficiary. This Agreement is intended to benefit only the parties hereto and no other person or entity has or shall acquire any rights hereunder. Page 5 of 9 Seller's Initials 25A-8 27. Duty To Cooperate Further. Each party hereby agrees that it shall, upon request of the other, execute and deliver such further documents (in form and substance reasonably acceptable to the party to be charged) and do such other acts and things as are reasonably necessary and appropriate to effectuate the terms and conditions of this Agreement, without cost. 28. Applicability of Agreement To Assignees. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties to this Agreement. 29. Authority to Execute Agreement. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. The parties have executed this Agreement as of the date written below. SELLER: By: Clinton Do Date: , 2008 By: Date: ,2008 Thuat Thi Cao APPROVED AS TO FORM: Joseph W. Fletcher City Attorney BY: Date: , 2008 Jose Sandoval Chief Assistant City Attorney CITY !BUYER: CITY OF SANTA ANA BY: David N. Ream City Manager ATTEST: By: Patricia E. Healy Clerk of the Council Date: , 2008 Date: , 2008 Page 6 of 9 Seller's Initials 25A-9 EXH~r~T xcA» LE~~ I~ESGR~PTiUN {APN i71 ~~}22-11 } THAT CERTAIN PARCEL ©F LAND iN THE CITY fli= SANTA ANA, COUNTY fli= ORANGE, STATE QF GALIi"t7RNIA, BEING A PORTION flF L~7T 31 OF TRACT Nfl. 1457, AS RECCiR©Ep iN BC?flK 53, PAGE ~, QF MISCELLANEC3US MAPS. RECC3RDS OF SAID COUNTY, MC}RE PARTICULARLY pECRIBEp AS F{~LLC311VS: BEGINNINCa AT THE SC?UTHEAST CORNER OF SAIb Lt)T 31; THENCE AL~77NG THE EASTERLY LINE C3F SAiD L{~T 31, NORTH {~°38'43" EAST 9.28 FEET TD THE BEGINNING OF A NUN TANGENT CURVE C{~NCAVE TC3 THE SOUTH AND HAVING A RAp1US flF 45.{}~ FEET, A RADIAL LINE TC3 SAiD Pt71NT BEARS NORTH 29°53'62" EAST THENCE WESTERLY ALONG SAIp Nt~N-TANGENT CURVE TMRCIL~GH A CENTRAL ANGLE C3F 61°46'13", AN ARC LENGTH OF 48.51 FEET TD A REVERSE CURVE CONCAVE TO THE NC3RTHEST AND HAVING A RAI3IUS QF 95.t}I~ FEET, THENCE SOUTHWESTERLY ALdNG SAIp REVERSE CURVE THR£~UGH A CENTRAL ANGLE C?F 1t~°2528", AN ARC LENGTH flF 17.28 FEET Tn THE SUU1'NERLY LINE QF SAiL} LOT 31; THENCE ALaNG SAILS SOUTHERLY LINE, SOUTH 89°18"57" EAST 61.52 FEET TC7 Pt)IIdT Ulr BIrGINNiI~IG. THE ABC3VE pESCR1BEp PARCEL OF LAND CC3NTAINS 653 SQUARE FEET {(}.015Q ACRES), MORE CSR. LESS.. ALL AS SHOWN t)N EXHIBIT "B°, ATTACHED HERETC3 ANt~ MADE A FART THI=RE4F. THIS REAL PRfJPERTY DESCRIPTItJN HAS BEEN PREPAREp BY ME OR UNpER MY DIRECTION IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEY~3R'S ACT. ~/ R CHARp C. MAHER, P.L.S. 75fi4 MATE LICENSE EXPIRES 12-31-0? Page 7 of 9 Seller's Initials 25A-10 EXHIBIT "B" PLAT TO ACCOMPANY LEGAL DESCRIPTION i 3 "k `~ _ t atl Y "^ ~ ~ ~~' hAn~9•~rn~ VO' lml ~ ~ ~7 ~~~~~~ Lgh~.J1 R~45.fl0` L1+~61'46~ ~ 3' NO'38'#3"E 9.28 P.L7,.B, o --~---~- ("c-.- ,_ „~.. 589' 18~57"E ,_ T 'L ~1C'H1,~4ND AYE, 4 1 ~~~i ~~Il~it.3(1, ~(~G~ X2541 As~~tn Street, Suits, ~. ~~~~ PLA? AG'CCIh9QA~t3ES ~ LEGAL WR1~TiCIN i.a6t~ ~arest, CA 9263 ~,~~;T7E~; BY E ~i7 llDE? h4Y L?~. „`(~-~, Pnon.: 943-?~$d~?3" fax: 949-78&-3;'31 I3 G~ ~" ~'P'ht C?1C~-O'a~--'11 ~~c~~rz~ c, ~~~~R, ~~.s ,~~4 ~~r~ Page 8 of 9 Seller's Initials jj~ I {} 1~ ,~ [3 S 3 E~tP_ iti~taris~n 25A-11 EXHIBIT "C" GENERAL ESCROW PROVISIONS All disbursements shall be made by Escrow's check. All funds received in this escrow shall be deposited in one or more of your general escrow accounts with any bank doing business in the State of California and may be transferred to any other general escrow account or accounts. The expression "close of escrow" means the perfection of title as of the date on which the transferring instruments referred to herein are recorded in the Office of the Orange County Recorder. All prorations made during escrow are to be made on the basis of a 360-day year and a 30-day month. Recordation of any instruments delivered through this escrow, if necessary or proper in the issuance of a policy of title insurance called for, is hereby authorized. There shall be no prorations of any existing insurance policies in this escrow. Escrow Agent is to furnish a copy of these instructions, amendments thereto, closing statements and/or any other documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the attorney or attorneys involved in this transaction upon request of such lenders, brokers or attorneys. Should Escrow Agent, before or after close of escrow, receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein and affected hereby, Escrow Agent shall have the right to discontinue any or all further acts on its part until such conflict is resolved to its satisfaction, and Escrow Agent shall have the further right to interplead the escrow to any Superior Court of competent jurisdiction, and to commence or defend any action or proceedings for the determination of such conflict. The Parties hereto jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorney's fees, suffered or incurred by Escrow Agent in connection with, or arising out of this escrow, including, but without limiting the generality of the foregoing, a suit in interpleader brought by Escrow Agent. In the event Escrow Agent files a suit in interpleader, it shall ipso facto be fully released and discharged from all obligations imposed upon it in this escrow. If for any reason funds are retained or remain in escrow, you are to deduct therefrom a reasonable monthly charge as custodian thereof of not less than $10.00 per month. Time is declared to be the essence of these instructions. If you are unable to comply within the time specified herein and such additional time as is required to make an examination of the official records, you will return all documents, money or property to the party entitled thereto upon satisfactory written demand and authorization. Any amendment of and/or supplement to any instructions must be in writing. The seller agrees to sell and the buyer agrees to buy the property herein described upon the terms hereof. These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which independently shall have the same effect as if it were the original, and all of which taken together shall constitute one and the same instruction. Page 9 of 9 Seller's Initials 25A-12 PURCHASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY AND BILATERAL ESCROW INSTRUCTIONS THIS AGREEMENT (hereinafter "PSA"), entered into this _ day of , 2008, between the CITY OF SANTA ANA, a charter city and municipal corporation duly organized under the Constitution and laws of the State of California (hereinafter "City" or "Buyer"), and Sergio H. Esparza and Delia O. Esparza, (hereinafter "Seller"), regardless of number or gender; THEREFORE, for and in consideration of their promises, covenants and agreements hereinafter set forth, and subject to the terms, conditions and provisions hereinafter set forth, Seller agrees to sell to City, and City agrees to purchase from Seller, all that certain real property located in the State of California, County of Orange, City of Santa Ana, described as follows: (hereinafter "Said Real Property") described as follows: SEE EXHIBIT "A" -Legal Description And EXHIBIT "B" -Graphical Depiction ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF (Commonly known as portion of 1306 West Richland Avenue, Santa Ana, CA) Said purchase and sale of Said Real Property shall be in accordance with and subject to all of the following terms, conditions, promises, covenants, agreements and provisions, to wit: 1. Convevance by Seller. Seller agrees to convey Said Real Property to City, by Grant Deed, at the office of First American Title Insurance Company, 2 First American Way, Santa Ana, California, within thirty (30) days from and after the date on which the City has approved this Agreement. 2. Title to be Conveyed. (a) Seller agrees that, except as may hereinafter be otherwise expressly provided, Said Real Property shall be conveyed by Seller to City, as aforesaid, free and clear of any and all conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non-monetary, general or specific, including any and all leasehold interests), liens, clouds or defects in title, except those exceptions shown in Paragraph 15 below. Seller hereby warrants that the title to Said Real Property to be conveyed by Seller to City shall be free and clear as provided above. Seller further agrees that acceptance by City of any deed to Said Real Property, with or without knowledge of any condition, restriction, reservation, exception, easement, assessment, profit, limitation, encumbrance (whether monetary or non-monetary, general or specific, and including any and all leasehold interests), lien, cloud or defect in title, shall not constitute a waiver by City of its right to the full and clear title hereinabove agreed to be conveyed by Seller to City, nor of any right which might accrue to City because of the failure of Seller to convey title as hereinabove provided. 3. Title Insurance. Seller agrees to deliver to City, concurrently with the conveyance of Said Real Property to City, within the time and at the place hereinabove specified for said conveyance of Said Real Property, a policy of title insurance to be issued by the above mentioned title company, with the City therein named as the insured, in the amount of NINETY TWO THOUSAND, SIX HUNDRED SIXTY AND NO/100 DOLLARS ($92,660) insuring City's title to Said Real Property is free and clear of any and all conditions, restrictions, reservations, Page ] of 9 Seller's Initials 25A-13 exceptions, easements, assessments, profits, limitations, encumbrances (whether monetary or non-monetary, general or specific, and including any and all leasehold interests), liens, clouds or defects in title, excepting such specific ones as city may hereinafter expressly agree to take subject to. Acceptance by City of any such policy of insurance, whether such insurance complies with the requirements of this paragraph or not, shall not constitute a waiver by City of its right to such insurance as is herein required of Seller, nor a waiver by the City of any rights of action for damages or any other rights which may accrue to City by reason of the failure of Seller to convey title or to provide title insurance as required in this PSA. 4. Escrow. City agrees to open an escrow at the office of First American Title Insurance Company, 2 First American Way, Santa Ana, California, (hereinafter "Escrow Agent") within five (5) days from and after the date on which the City has approved this PSA. This PSA constitutes the joint escrow instructions of the City and the Seller and a duplicate original of this PSA shall be delivered to the Escrow Agent upon the opening of the escrow. Escrow is to close within 120 days after Owner's execution of this PSA. The Escrow Agent hereby is empowered to act under this PSA, and upon indicating its acceptance of this Section 4 and of the General Provisions described in Exhibit "C" attached hereto and incorporated herein by this reference, in writing, delivered to the City and to the Seller within five (5) days after delivery of this PSA, shall carry out its duties as Escrow Agent hereunder. City agrees to bear and Escrow Agent is hereby authorized to charge to the City the cost of any transfer taxes, recording fees, cost of title insurance, reconveyance fees, document preparation fees, escrow fees and any other closing costs incidental to the conveying of Said Real Property to City. Penalties for prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedures Section 1265.240. The liability to the Escrow Agent under this Agreement is limited to performance of the obligations imposed upon it under Section 4, Section 6, Section 11 and Exhibit "C" of the General Provisions of this PSA. 5. Property Taxes. Such real property taxes, if any, on Said Real Property for the fiscal year within which Said Real Property is conveyed to City as are unpaid at the time of said conveyance shall be cleared and paid in accordance with the provisions of Section 4986 of the Revenue and Taxation Code of the State of California. Seller shall be eligible for a refund under Section 5096.7 of the Revenue and Taxation Code of the State of California for that portion of property taxes on Said Real Property for said fiscal year which have been paid prior to the date the deed conveying Said Real Property to City is recorded which is allocable to that portion of the fiscal year which begins on the date the deed conveying Said Real Property to City is recorded and made uncollectible if unpaid by reason of Section 4986 of the Revenue and Taxation Code of the State of California. All unpaid taxes on Said Real Property for any and all years prior to the fiscal year within which said conveyance is made shall be paid by Seller before conveyance of Said Real Property to City. 6. Payment of Purchase Price. City agrees to pay to Seller, and Seller agrees to accept from City, as and for the full purchase price for Said Real Property, fixtures & equipment (improvements pertaining to the realty), good will (if any), severance damages, and bonus value (if applicable), the total cash sum of NINETY TWO THOUSAND, SIX HUNDRED SIXTY AND NO/100 DOLLARS ($92,660). Page 2 of 9 Seller's Initials 25A-14 City agrees to deposit said purchase price in escrow with the Escrow Agent within Sixty (60) days from and after the date on which the City has approved this Agreement, and the Escrow Agent is hereby authorized to pay said purchase price to Seller only after or concurrent with the satisfaction of the following conditions precedent: (a) Conveyance of Said Real Property by Seller to City as hereinabove provided; (b) Acceptance by City of a Grant Deed conveying Said Real Property to City; (c) Delivery to City of the policy of title insurance as hereinabove provided; (d) Recordation of the Grant Deed conveying Said Real Property to City. (e) Escrow Agent shall not record the Grant Deed until City has deposited with Escrow Agent the Purchase Price in full. 7. Possession. Seller agrees to deliver to City, on the date the Grant Deed conveying Said Real Property to City is recorded, quiet and peaceful possession of Said Real Property. 8. Blank. This section infentional/y left blank. 9. Waivers. The waiver by City of any breach of any covenant or agreement herein contained on the part of Seller shall not be deemed or held to be a waiver of any subsequent or other breach of said covenant or agreement nor a waiver of any breach of any other covenants or agreements contained herein. 10. Heirs. Assigns. Successors in Interest. This Agreement, and all the terms, covenants and conditions hereof, shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective parties hereto. 11. Time is of the Essence. In all matters and things hereunder to be done and in all payments hereunder to be made, time is and shall be of the essence. 12. Permission to Enter on Premises. Seller hereby grants City, and its authorized agents, permission to enter upon Said Real Property at all reasonable times prior to close of escrow for the purpose of making necessary inspections. 13. Just Compensation. Seller acknowledges and agrees that said purchase price is just compensation at fair market value for Said Real Property and severance damages. Page 3 of 9 Seller's Initials 25A-15 14. Notices. The mailing address of the City of Santa Ana is 20 Civic Center Plaza, M-36, P.O. Box 1988, in the city of Santa Ana 92702, County of Orange, State of California. The mailing address of the Seller is: 1306 West Richland Avenue Santa Ana, California 92703 15. Exceptions. City agrees to accept title to Said Real Property subject to the following: NONE 16. Agreement. Performance of this Agreement by City shall lay at rest, each, every and all issue(s) that were raised or could have been raised in connection with the acquisition of Said Real Property by City. 17. Hazardous Waste. Neither Seller nor, to the best of Seller's knowledge, any previous owner, tenant, occupant, or user of the Property used, generated, released, discharged, stored, or disposed of any hazardous waste, toxic substances, or related materials ("Hazardous Materials") on, under, in, or about the Property, or transported any Hazardous Materials to or from the Property. Seller shall not cause or permit the presence, use, generation, release, discharge, storage, or disposal of any Hazardous Materials on, under, in, or about, or the transportation of any Hazardous Materials to or from, the Property. The term "Hazardous Material" shall mean any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste", "extremely hazardous waste", or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material", "hazardous substance", or "hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (ix) designated as a "hazardous substances" pursuant to Section 311 of the Clean Water Act, (33 U.S.C. S1317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. S6901 et seg. (42 U.S.C. S6903) or (xi) defined as a "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response, Compensation, as amended by Liability Act, 42. U.S.C. S9601 et seq. (42 U.S.C. S9601). 18. Compliance With Environmental Laws. To the best of Seller's knowledge the Property complies with all applicable laws and governmental regulations including, without limitation, all applicable federal, state, and local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental matters, including, but not limited to, the Clean Water, Clean Air, Federal Water Pollution Control, Solid Waste Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and Page 4 of 9 Seller's Initials 25A-16 Liability Acts, and the California Environment Quality Act, and the rules, regulations, and ordinances of the city within which the subject property is located, the California Department of Health Services, the Regional Water Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all applicable federal, state, and local agencies and bureaus. 19. Indemnity. Seller agrees to indemnify, defend and hold the City harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (i) the presence, release, use, generation, discharge, storage, or disposal of any Hazardous Material on, under, in or about, or the transportation of any such materials to or from, the Property, or (ii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit, judgment, or license relating to the use, generation, release, discharge, storage, disposal, or transportation of Hazardous Materials on, under, in, or about, to or from, the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, punitive damage, cost, or expense arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease, or death, tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, pollution, contamination, leak, spill, release, or other adverse effect on the environment). This indemnity extends only to liability created prior to or up to the date this escrow shall close. Seller shall not be responsible for acts or omissions to act post close of this escrow. 20. Contingency. It is understood and agreed between the parties hereto that the enforceability of this PSA, and the escrow created hereby, is contingent upon the express acceptance and approval of this PSA by City. The execution of this PSA by City, and the delivery of same to Escrow Agent, shall constitute said acceptance and approval. 21. Modification and Amendment. This Agreement may not be modified or amended except in writing signed by the Seller and City. 22. Partial Invalidity. Any provision of this Agreement that is unenforceable or invalid or the conclusion of which would adversely affect the validity, legality, or enforcement of this Agreement shall have no effect, but all the remaining provisions of this Agreement shall remain in full force. 23. Captions. Captions and headings in this Agreement, including the title of this Agreement, are for convenience only and are not to be considered in construing this Agreement. 24. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 25. No Reliance By One Party On The Other. Each party has received independent legal advice from its attorneys with respect to the divisibility of executing this Agreement and the meaning of the provisions hereof. The provisions of this Agreement shall be construed as to their fair meaning, and not for or against any party based upon any attribution to such party as the source of the language in question. Page 5 of 9 Seller's Initials 25A-17 26. No Third Party Beneficiary. This Agreement is intended to benefit only the parties hereto and no other person or entity has or shall acquire any rights hereunder. 27. Duty To Cooperate Further. Each party hereby agrees that it shall, upon request of the other, execute and deliver such further documents (in form and substance reasonably acceptable to the party to be charged) and do such other acts and things as are reasonably necessary and appropriate to effectuate the terms and conditions of this Agreement, without cost. 28. Applicability of Agreement To Assignees. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties to this Agreement. 29. Authority to Execute Agreement. Each undersigned represents and warrants that its signature herein below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and shall indemnify City fully, including reasonable costs and attorney's fees, for any injuries or damages to City in the event that such authority or power is not, in fact, held by the signatory or is withdrawn. The parties have executed this Agreement as of the date written below. SELLER: By: Date: , 2008 Sergio H. Esparza By: Date: ,2008 Delia O. Esparza APPROVED AS TO FORM: Joseph W. Fletcher City Attorney BY: Date: , 2008 Jose Sandoval Chief Assistant City Attorney CITY /BUYER: CITY OF SANTA ANA BY: David N. Ream City Manager ATTEST: By: Patricia E. Healy Clerk of the Council Date: , 2008 Date: , 2008 Page 6 of 9 Seller's Initials 25A-18 EXHIBIT "A" LEGAL DESCRIF*TtON {APN tI3 t}-Q~-t}9~ THAT CERTAIN PARCEL OF LAND IN THE CITY OF SANTA ANA, Ct~L1NTY OF ORANGE, STATE OF CALIFORNIA, BEING A PORTIC3N OF LOT 48 OF TRACT NC3. 1457, AS RECORDED IN BOOK. 53, PAGE OF MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEt31NNINfi AT THE NORTHEAST CORNER OF SAID LCT 48; THENCE ALONG THE EASTERLY LINE OF SAID LOT 48, SOUTH ~~38'43" WEST 9.25 FEET TO THE BEGINNING OF A NC~N TANGENT CURVE CONCAVE T{~ THE NORTH AND HAVING A RADIUS OF 45.I31~ FEET, A RADIAL LINE TO SAID POIN`f BEARS SOUTH 28°34"51" EAST; THENCE WESTERLY ALONG SAID NON TANGENT CURVE THROUGH A CENTRAL ANGLE OF 61 °5{x'47", AN ARC LENGTH OF 48.57 FEET TO A REVERSE CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 95.OC~ FEET; THENCE NORTHWESTERLY ALONG SAiD REVERSE CURVE THR{JUGH A CENTRAL ANGLE OF 1{I°25'28", AN ARC LENGTH OI` 17.28 FEET TO THE NORTHERLY LINE OF SAID LOT 48; THENCE ALONG SAID NORTHERLY LINE, SOUTH 89°18'x7" EAST fi1.a6 FEET TC~ PtIINT C1F BEGINMiMG, THE ABOVE DESCRIBED PARCEL OF LAND CONTAINS 853 SQUARE FEET ~t}.I3156 ACRES), MORE OR LESS, ALL AS SHOWN CEN EXHIBIT "B", ATTACHED HERETO AND MADE A PART THERIEOI=, THIS REAL PROPERTY DESCRIPTION HAS BEEN PREPARED BY ME OR UNpER MY DIRECTION IN Ct3NFORMANCE WITH THE PRC}FESSIONAL LAND SURVEYOR'S ACT. CHAR C. MAHER, P.L.S. 7564 DATE LICENSE EXPIRES 1231-t17` Page 7 of 9 Seller's Initials 25A-19 ~~~~~~ ~~ P.L7.~~ ~ ~ i ~r+^ ry ' {w`'¢~'Usiw11~ ~ t a~'l~B~~~J1J'~O^i ~ ~~."ai IM~~ f~Gi7t t R=95.OC3' 1a=10'25'28" i~ { ~~'tNA {(j ~3 s~~ Asbpn ~~:_ s~,~~. ~ ;.aka rarest "A .0~4 THIS ~~ kT ASuC}MPA~iIES A :.~uA s;£SGRI?T3~N 1J~2T?;:N I3`° M` R UNI3~R h!?' ~I~t~TION, "€~ane. 8~9 -'66- ~' 3 3 ^~xc 94£-7~8-371 ~~ ~~ ,M~'N C'~1E`i-O`er ~;I~:~~~I ~. ~~~~~> ~~s ~~s~ ~~T Page 8 of 9 '~L~ I~ 7 ~ ~iri jff ptP, tt/~tt,ror N~. ?~~~ , Seller's Initials 25A-20 r~r +~ ~t ~iAi11D~ ctBf~ ~~t 1 V ~~L~~~~ ~t7!'1L ~~it7~~~1y EXHIBIT "C" GENERAL ESCROW PROVISIONS All disbursements shall be made by Escrow's check. All funds received in this escrow shall be deposited in one or more of your general escrow accounts with any bank doing business in the State of California and may be transferred to any other general escrow account or accounts. The expression "close of escrow" means the perfection of title as of the date on which the transferring instruments referred to herein are recorded in the Office of the Orange County Recorder. All prorations made during escrow are to be made on the basis of a 360-day year and a 30-day month. Recordation of any instruments delivered through this escrow, if necessary or proper in the issuance of a policy of title insurance called for, is hereby authorized. There shall be no prorations of any existing insurance policies in this escrow. Escrow Agent is to furnish a copy of these instructions, amendments thereto, closing statements and/or any other documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the attorney or attorneys involved in this transaction upon request of such lenders, brokers or attorneys. Should Escrow Agent, before or after close of escrow, receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein and affected hereby, Escrow Agent shall have the right to discontinue any or all further acts on its part until such conflict is resolved to its satisfaction, and Escrow Agent shall have the further right to interplead the escrow to any Superior Court of competent jurisdiction, and to commence or defend any action or proceedings for the determination of such conflict. The Parties hereto jointly and severally agree to pay all costs, damages, judgments and expenses, including reasonable attorney's fees, suffered or incurred by Escrow Agent in connection with, or arising out of this escrow, including, but without limiting the generality of the foregoing, a suit in interpleader brought by Escrow Agent. In the event Escrow Agent files a suit in interpleader, it shall ipso facto be fully released and discharged from all obligations imposed upon it in this escrow. If for any reason funds are retained or remain in escrow, you are to deduct therefrom a reasonable monthly charge as custodian thereof of not less than $10.00 per month. Time is declared to be the essence of these instructions. If you are unable to comply within the time specified herein and such additional time as is required to make an examination of the official records, you will return all documents, money or property to the party entitled thereto upon satisfactory written demand and authorization. Any amendment of and/or supplement to any instructions must be in writing. The seller agrees to sell and the buyer agrees to buy the property herein described upon the terms hereof. These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which independently shall have the same effect as if it were the original, and all of which taken together shall constitute one and the same instruction. Page 9 of 9 Seller's Initials 25A-21 25A-22