HomeMy WebLinkAbout20A - AA WATER WELL FACILITYREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
MAY 15, 2018
TITLE:
APPROVE APPROPRIATION
ADJUSTMENT AND PURCHASE
AGREEMENT FOR VACANT LAND FOR
FUTURE WATER WELL FACILITY
(NONGENERAL FUND)
{STRATEGIC PLAN NO. 61 1}
CIT ANAGER
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
❑ As Recommended
❑ As Amended
❑ Ordinance on 1s' Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
Authorize the City Manager and Clerk of the Council to execute a purchase agreement for the
real property located at 202 South Flower Street (APN 008-213-32), and goodwill, if any, with
Thang T. Nguyen, in an amount of $200,000, subject to nonsubstantive changes approved by
the City Manager and City Attorney.
2. Approve an Appropriation Adjustment recognizing $200,000 from prior year fund balance in
the Water Utility revenue account, and appropriating the same into the Water Utility Capital
Projects expenditure account.
DISCUSSION
The City of Santa Ana Public Works Agency manages the Water Enterprise which is charged
with satisfying the water demands of the City's 340,000 -plus residents and businesses. On
average, the City provides about 31 million gallons of high quality potable water per day. The
Water Enterprise meets the water demands of the community primarily from two sources: local
groundwater and imported surface water. The majority of water supplied to the community
(about 75 percent) comes from local groundwater sources, which is less costly than the imported
surface water sources. To accomplish this, the City's Water Enterprise owns and operates 21
active groundwater wells.
In an effort to plan for the continued efficiency and operability of the City's water systems and
supplies for future generations, the Public Works Agency has conducted and completed various
studies, including a Water System Master Plan, an Urban Water Management Plan, and a
computerized water system model. These studies allow the Public Works Agency to responsibly
plan for the future needs of the community and to plan water system infrastructure improvements
necessary to meet those needs. One of the primary needs that have been identified is the
replacement of older ground water wells with new ones to retain groundwater source reliability.
20A-1
Purchase Agreement for Vacant Land for Future Water Well Facility
May 15, 2018
Page 2
Property acquisitions are necessary to accommodate future water system groundwater wells.
Public Works Agency staff has identified ideal areas for future groundwater wells based on water
system hydraulic analyses. An ideal area for the City's next groundwater well is in the vicinity of
the existing Walnut Pump Station near the intersection of Flower and First Streets, and staff has
identified a vacant lot (Exhibit 1) that is suitable for this purpose. A purchase offer was made
based on the appraised value prepared by a State licensed appraiser, and the offer was
accepted by the property owner. The purchase price for the acquisition is $200,000, and is
shown in the corresponding agreement (Exhibit 2).
STRATEGIC PLAN ALIGNMENT
Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities &
Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City
assets).
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action
FISCAL IMPACT
The appropriation adjustment will recognize and appropriate $200,000 of prior year fund balance
in the Water Utility revenue account and facilitate an interfund budgetary expenditure transfer as
follows:
Account Number
Description Revenue Expense
06017002-50001
Water Utility Prior Year Fund Balance $200,000
06017019-68000-66
Water Utility Interfund Transfer $200,000
06617002-59000-60
Water Capital Projects Interfund Transfer $200,000
06617647-66100
Water Utility Capital Projects Land $200,000
The approved appropriation adjustment will make funds available for expenditure in Fiscal Year
= 2017-18.
Edwin "William" Galve , P.E.
Acting Executive Director
Public Works Agency
FWNS/RR
Exhibits: 1. Location Map
2. Agreement for APN 008-213-32
APPROVED AS TO FUNDS & ACCOUNTS:
Francisco Gutierrez
Executive Director
Finance & Management Services Agency
20A-2
WALNUT ST
920 99
sos aPrT o0s-z�=a� ;
208
210
214
218
98 224
I EGEND:
F-1/17,77/1 - SUBJECT PROPERTY
i.
SANTA ANA
P■ `A IC■ CITY COUNCIL
uV f�
PIR WOMAMM
722
2
W
O EXISTING WALNUT
[i I PUMP STATION
WALNUT ST
EXHIBIT 1 N.T.S.
o CITY OF SANTA ANA
0
PUBLIC WORKS AGENCY
APPROVE PURCHASE AGREEMENT OF
VACANT LAND FOR FUTURE WATER WELL PAGE 1 OF 1
FACILrrY (NONGENERAL FUND)
(STRATEGIC PLAN NO. 6,1)
900
915
909
ns
ns
120
WALNUT ST
920 99
sos aPrT o0s-z�=a� ;
208
210
214
218
98 224
I EGEND:
F-1/17,77/1 - SUBJECT PROPERTY
i.
SANTA ANA
P■ `A IC■ CITY COUNCIL
uV f�
PIR WOMAMM
722
2
W
O EXISTING WALNUT
[i I PUMP STATION
WALNUT ST
EXHIBIT 1 N.T.S.
o CITY OF SANTA ANA
0
PUBLIC WORKS AGENCY
APPROVE PURCHASE AGREEMENT OF
VACANT LAND FOR FUTURE WATER WELL PAGE 1 OF 1
FACILrrY (NONGENERAL FUND)
(STRATEGIC PLAN NO. 6,1)
20A-4
PURCHASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY
AND BILATERAL ESCROW INSTRUCTIONS
THIS AGREEMENT (hereinafter "PSA"), entered into on 1 2018,
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, Thang T. Nguyen, as his
sole and separate property (hereinafter "Seller"), regardless of number or gender;
THEREFORE, for and in consideration of their mutual promises, covenants and agreements, and subject
to the terms, conditions and provisions of this PSA, Seller agrees to sell to City, and City agrees to
purchase from Seller, that certain real property (hereinafter "Said ' Real Property') legally described as
follows:
SEE EXHIBIT "A!'— Legal Description
ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF
(Commonly known as 202 S. Flower Street, Santa Ana CA)
(APN: 008-213-32)
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. Conveyance by Seller. Seller agrees to convey said real property to City, by Grant Deed, at the
office of Commonwealth Title Company at 4100 Newport Place Dr. Suite 120 Newport Beach, California,
within sixty (60) days from and after the date on which the City has approved this Agreement.
2. Title to be Conveyed. 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 13 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 TWO HUNDRED THOUSAND DOLLARS ($200,000.00) insuring the
title of the City to said real property is free and clear of any and all conditions, restrictions, 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 Agreement.
Exhibit 2
20A-5
4. Escrow. City agrees to open an escrow at the office of Commonwealth Title Company at 4100
Newport Place Dr. Suite 120 Newport Beach, California, (the Escrow Agent) within five (5) days from and
after the date on which the City has approved this Agreement. This Agreement constitutes the joint escrow
instructions of the City and the Seller and a duplicate original of this Agreement shall be delivered to the
Escrow Agent upon the opening of the escrow. Escrow to close within sixty (60) days of the City's execution
of this Agreement. If escrow is not in a condition to close by the Close of Escrow, and failure to close is due
to unforeseen conditions of title or interest of third parties in the Property that cannot be resolved in Escrow,
then buyer may, at its option, request cancellation of escrow and this Agreement and return of any funds it
has deposited into escrow. Thereupon, all obligations and liabilities of the Parties under this Agreement shall
cease and terminate. If no such request is made, Escrow shall be closed as soon as possible thereafter.
Buyer shall be entitled to possession of the Property immediately upon close of Escrow.
The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance of
this Section 4 and of the General Provisions described in Exhibit "B" 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 Agreement, shall carry out its duties as Escrow Agent hereunder.
City agrees to bear, and Escrow Agent is hereby authorized to charge to the cost of any transfer taxes,
recording fees, cost of title insurance, re -conveyance 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, and Exhibit "B" of the General Provisions of this Agreement.
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 5086 of the Revenue and Taxation Code of the State
of California. To the extent that Seller has prepaid any taxes or assessments attributable to the Property;
Seller shall be solely responsible for obtaining any refund due thereon from the taxing authority. Upon
written request, Buyer shall assist Seller, at Seller's sole cost, in obtaining said refund, if any; however, in no
case shall Buyer credit or otherwise pay Seller for that refund, if any, through or outside of Escrow.
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, severance damages, the total sum of Two Hundred
Thousand Dollars ($200,000.00). City agrees to deposit said purchase price in escrow with the Escrow
Agent within thirty (30) days from and after the date on which the City has approved this Agreement, and the
Escrow Agent is hereby authorized to pay the same to Seller upon and after:
(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 Deed conveying said real property to City
20A-6
7. Possession. Seller agrees to deliver to City, on the date the Deed conveying said real property to
City is recorded, quiet and peaceful possession of said real property, which shall be made free by Seller of all
personal property.
a. No later than three (3) days after close of escrow, Seller shall have removed all merchandise,
inventory, equipment, personal property, and/or removable trade fixtures from the Property,
and shall leave the Property in a broom swept condition. Any merchandise, inventory,
equipment, personal property, and/or removable trade fixtures at the Property as of three days
after close of escrow shall be deemed abandoned by Seller on that date, unless a prior written
agreement has been made with the City or its representatives.
8. Waivers. The waiver by City of any breach of any covenant or agreement herein contained on the
part of the 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.
9. Heirs, Assigns, Successors -in -Interest. This PSA, 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.
10. 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.
11. Acknowledgement of Full Benefits and Release. By execution of this Agreement, Seller hereby
acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer, and
Seller hereby expressly and unconditionally waives any claim for damages, interest, loss of goodwill,
severance damages, or any other compensation or benefits other than as already expressly provided for in
this Agreement, it being understood that this is a complete and full settlement of all acquisition claims,
liabilities, or benefits of any type or nature whatsoever relating to or in connection with the acquisition of the
Property.
12. 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 92701, County of Orange, State of California. The mailing address of the
Seller is 12651 Cardinal Avenue Garden Grove, CA 92843-4207.
13. Exceptions. City agrees to accept title to said real property subject to the following: NONE.
14. Entire Agreement. It is mutually agreed that the Parties hereto have herein set forth the whole of
their Agreement. Performance of this PSA 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.
15. 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
20A-7
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 at seg. (42 U.S.C. S9601).
16. 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 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.
17. 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.
18. Contingency. It is understood and agreed between the parties hereto that the completion of this
transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the
City herein. The execution of these documents and the delivery of same to Escrow Agent constitute said
acceptance and approval.
19. Modification and Amendment. This PSA may not be modified or amended except in writing signed
by the Seller and City.
20. Partial Invalidity. Any provision of this PSA that is unenforceable or invalid or the conclusion of
which would adversely affect the validity, legality, or enforcement of this PSA shall have no effect, but all the
remaining provisions of this PSA shall remain in full force.
21. Captions. Captions and headings in this PSA, including the title of this PSA, are for convenience
only and are not to be considered in construing this PSA.
22. Governing Law. This PSA shall be governed by and construed in accordance with the laws of the
State of California.
20A-8
23. 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 PSA and the meaning of the provisions hereof. The
provisions of this PSA 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.
24. No Third Party Beneficiary. This PSA is intended to benefit only the Parties hereto and no other
person or entity has or shall acquire any rights hereunder.
25. 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 PSA, without cost.
26. Applicability of Agreement To Assignees. This PSA shall be binding upon and shall inure to the
benefit of the successors and assigns of the Parties to this PSA.
27. 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 PSA,
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.
28. Incorporation of Exhibits. All Exhibits referenced herein and attached hereto shall be incorporated as
if fully set forth in the body of this PSA.
IN WITNESS WHEREOF, the Parties hereto have executed this PSA on the date and year first written
above.
(Signatures on Next Page)
20A-9
SIGNATURE PAGE TO
AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS
SELLER:
Thang T. Nguyen
By:
Its: I1W.1 r yc.
CITY/BUYER
City of Santa Ana
Raul Godinez If
City Manager
ATTEST:
Maria D. Huizar
City Clerk
APPROVED AS TO FORM:
, i Q
J M. Funk
L
A istant City Attorney
RECOMMENDED FOR APPROVAL:
Edwin "William" Galvez
Acting Executive Director
Public Works Agency
Date: 4NIIP ,2018
Date: 12018
Date:
MIT[;
Date: j S 2018
Date:
20A-10
2018
EXHIBIT "A"
LEGAL DESRIPTION
Portion of Lots 5 and 6, Block O, Pine Street Tract, per map recorded in Book 8, Page 59 of Maps, in the
office of the County Recorder, County of Orange.
Assessor's Parcel Numbers: 008-213-12
20A-11
EXHIBIT "B" (Commonwealth Land Title Company)
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 date on which instruments referred to herein are filed for record. All adjustments are to be made
on the basis of 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 proration of any existing insurance policies in this escrow.
You are 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 you 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 affected hereby, you shall have the right to discontinue any or all further acts on your part until such
conflict is resolved to your satisfaction, and you shall have the further right 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 you in connection with, or arising out of this escrow, including, but without limiting the generality of the
foregoing, a suit in interpleader brought by you. In the event you file a suit in interpleader, you shall ipso
facto be fully released and discharged from all obligations imposed upon you 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.
20A-12