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HomeMy WebLinkAboutHuntington Beach City School District - 2015-12-07AGREEMENT FOR ACQUISITION AND ESCROW INSTRUCTIONS This AGREEMENT FOR ACQUISITION AND ESCROW INSTRUCTIONS ("Agreement") is made and entered into as of this 8th day of December 2015, and constitutes an agreement by which HUNTINGTON BEACH CITY SCHOOL DISTRICT, a California public school district ("Seller" or "District") agrees to sell, and the CITY OF HUNTINGTON BEACH, a California municipal corporation ("Buyer" or "City"), agrees to purchase on the terns and conditions hereinafter set forth: That certain real property described in Exhibit "A-1" and depicted in Exhibit "A-2" attached hereto,(the "Recreational Property" or "Open Space Parcel") representing approximately 6.61 acres of the approximate 10.14 acre former Education Center of the District, more commonly referred to as the LeBard Property. The District is concurrently selling the remaining approximate 3.53 acres of the LeBard Property for residential use (the "Residential Property") in accordance with the competitive bidding requirements of Education Code section 17455 et M., and consistent with the City's approved entitlements consisting of (a) Tentative Tract Map Number 17801 for a total of fifteen (15) single-family residential lots; (b) Zoning Map Amendment No. 12-001; and (c) General Plan Amendment No. 12-002 (collectively, the "Project Site Entitlements"). Seller and Buyer are sometimes hereinafter referred to individually as a "Party" and collectively as the "Parties." The terms and conditions of this Agreement and the instructions to First American Title Company, located at 4 First American Way, Santa Ana, CA 92707 ("Escrow Holder") with regard to the escrow ("Escrow") created pursuant hereto are as follows: 1. Purchase and Sale. For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller agrees to sell the Recreational Property to Buyer, and Buyer agrees to purchase the Recreational Property from Seller, upon the terms and conditions herein set forth: 2. Purchase Price. The purchase price ("Purchase Price) for the Recreational Property shall be THREE MILLION, ONE HUNDRED SIXTY-EIGHT THOUSAND DOLLARS ($3,168,000). This sum shall be full payment for the Recreational Property and for all damages of every kind and nature, including, but not limited to, pre -condemnation damages, loss of rental income and severance damages suffered, any and all claims suffered, or to be suffered, by reason of the acquisition of the Recreational Property. 3. Acknowledgnent of Full Benefits and Release. a. By execution of this Agreement, Seller, on behalf of itself and its respective successors and assigns, hereby acknowledges that this Agreement provides full payment for the acquisition of the Recreational Property by Buyer, and Seller hereby expressly and unconditionally waives any and all claims for damages, relocation assistance benefits, severance damages, interest, loss of goodwill, claims for inverse condemnation or unreasonable pre - condemnation conduct, or any other compensation or benefits, other than as already expressly Page 1 of 60 19981v1 /HBC76 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 Buyer's acquisition of the Recreational Property. b. This Agreement arose out of Buyer's efforts to acquire the Recreational Property on a voluntary basis Seller acknowledges and agrees that said purchase price is just compensation based on the Seller's appraisal price as adjusted by the provisions of the Naylor Act and includes any and all fixtures and equipment, goodwill (if any) and severance. The Parties acknowledge the Naylor Act allows cities to purchase surplus recreational and open - space school property at twenty-five percent (25%) of the appraised value, and that not more than thirty percent (30%) of the total surplus recreational and open -space school acreage owned by the District may be purchased at the reduced value Buyer and Seller agree that the acreage was calculated as detailed in Section 2 of the Memorandum of Understanding executed on May 5, 2014 ("MOU") between the Parties Seller, on behalf of itself and its successors and assigns, hereby fully release Buyer, its successors, agents, representatives, and assigns, and all other persons and associations, known or unknown, from all claims and causes of action by reason of any damage which has been sustained, or may be sustained, as a result of Buyer's efforts to acquire the Recreational Property or to construct works of improvement thereon, or any preliminary steps thereto. Seller further releases and agrees to hold Buyer harmless from any and all claims by reason of any leasehold interest in the Recreational Property. This release shall survive the Close of Escrow. C. The Parties hereto hereby agree that all rights under Section 1542 of the Civil Code of the State of California are hereby waived. Civil Code Section 1542 provides as follows "A general release does not extend to claims which the creditor does not know or suspect to exist in his/her favor at the time of executing the release, which if known by him/her must have materially affected his/her settlement with the debtor " Notwithstanding the provisions of Civil Code Section 1542, Seller hereby irrevocably and unconditionally releases and forever discharges the Buyer and each and all of its officers, agents, directors, supervisors, employees, representatives, and its successors and assigns and all persons acting by, through, under, or in concert with the Buyer from any and all charges, complaints, claims, and liabilities of any kind or nature whatsoever, known or unknown, suspected or unsuspected (hereinafter referred to as "claim" or "claims") which Seller at any time heretofore had or claimed to have or which Seller at any time hereafter may have or claim to have, including, without limitation, any and all claims related or in any manner incidental to this transaction. I HAVE READ AND UNDERSTOOD PARAGRAPH 3 Acknowledgment of Full Benefits and Release. Seller's Initials CA _U Page 2 of 60 19252v1 / HBC 76 4. Payment of Purchase Price The Purchase Price for the Recreational Property shall be payable by Buyer as follows Within ten (10) days of the Opening of Escrow, Buyer shall deposit or cause to be deposited with Escrow Holder, in cash or by a certified or bank cashier's check made payable to Escrow Holder or a confirmed wire transfer of funds, the first annual installment of SIX HUNDRED THIRTY-THREE THOUSAND, SIX HUNDRED DOLLARS ($633,600) plus or minus Escrow Holder's estimate of Buyer's closing costs, prorations and charges payable pursuant to this Agreement. All escrow, recording and title insurance costs, if applicable, are to be paid by Buyer. Prior to the first anniversary of the date of Opening, and annually thereafter until entire Purchase Price is paid, regardless of Close of Escrow, Buyer shall make four (4) additional installment payments of SIX HUNDRED THIRTY-THREE THOUSAND, SIX HUNDRED DOLLARS ($633,600). Upon Close of Escrow, any remaining annual payments shall be made to District 5. Escrow a Opening of Escrow. For purposes of this Agreement, the Escrow shall be deemed opened on the date Escrow Holder shall have received an executed counterpart of this Agreement from both Buyer and Seller ("Opening Date"). Escrow Holder shall notify Buyer and Seller, in writing, of the date Escrow is opened and the estimated Closing Date, as defined in Paragraph 5(b), below. In addition, Buyer and Seller agree to execute, deliver, and be bound by any reasonable or customary supplemental escrow instructions of Escrow Holder, or other instruments as may reasonably be required by Escrow Holder, in order to consummate the transaction contemplated by this Agreement. Any such supplemental instructions shall not conflict with, amend, or supersede any portion of this Agreement. If there is any inconsistency between such supplemental instructions and this Agreement, this Agreement shall control. b. Close of Escrow. For purposes of this Agreement, "Close of Escrow" shall be defined as the date that the Grant Deed, conveying the Recreational Property to Buyer, is recorded in the Official Records of Orange County, California. This Escrow shall close within thirty (30) days after the completion of all improvements to the Open Space Parcel as set forth in the MOU and more particularly described in this Paragraph 5 ("Closing Date"). c Use of Escrow Funds During Escrow, District may use Escrow funds for District improvements related to parking and other Open Space Parcel improvements as agreed to within Section 4 of the MOU, as more specifically described in Paragraph 6 below (collectively, the "Park Site Improvements"). In the event of any conflict or irregularity between the required improvements described in the MOU and this Agreement, the description of said improvement(s) contained in this Agreement shall supercede all prior agreements and understandings, including the MOU, between the Parties relative to the Park Site Improvements. 6 Park Site Improvements District shall cause the successful bidder for the purchase of the Residential Property following the close of escrow for the Residential Property to design and construct or cause the construction of the following Park Site Improvements to those portions of the Residential Property, Recreational Property, and City's adjacent LeBard Park and public right-of-way (the "City Property") as generally depicted on the site map attached hereto as Exhibit "B". Page 3 of 60 19252v1 / HBC 76 a Within ninety (90) days following the close of escrow for the Residential Property, the successful buyer of the Residential Property (the "Residential Buyer") shall be responsible for preparing and submitting to City for its review and approval the plans and specifications for the construction of the Park Site Improvements. Upon approval of the plans and specifications for the Park Site Improvements by City, the Residential Buyer shall diligently pursue to completion all such Park Site Improvements. b The Park Site Improvements to be constructed by the Residential Buyer will be performed on the Residential and Recreational Properties comprising the LeBard Property as well as on the City Property as required by the Project Site Entitlements as more particularly described below (1) Public Right -of -Way Improvements (a) Grading and construction of street improvements to Craimer Lane and Warwick Drive adjacent to the Residential and Recreational Properties. Improvements to half section of a portion of Craimer Lane and Warwick Drive to include the curb and gutter which will be removed and replaced These improvements include the entry returns, sewer and water laterals for the Residential Property and a new driveway into the City Park parking lot, sewer and water laterals and new landscaped parkways with curb separated sidewalks (+/- 0.4 acres). Installation of "under walk drains" on Cynthia Drive (2) LeBard Property Park Site Improvements. (a) Construction of proposed landscape planter and water quality basin (0 5 acres) on the Residential Property as further described in Paragraph 6c(l) below (b) Construction of restroom/concession/storage building (1,500 sf) (the "Multi -Purpose Building") in support of use of sports fields on Recreational Property. (c) Construction of paved area surrounding the Multi -Purpose Building (+/- 2,500 sf) on Recreational Property (d) Recreational Property. (e) Recreational Property (g) sf) on Recreational Property. Construction of a portion of proposed parking lot (+/- 450 sf) on Construction of proposed drainage swale (+/- 0.3 acres) on Relocation of bullpen (+/- 1,000 sf) on Recreational Property. Construction of a portion of water quality basin and swale (+/- 350 Page 4 of 60 19252v1 / HBC 76 (h) Replacement and upgrade of the existing walkways within the sport field areas to ADA accessible walkways and the relocation of bleachers (+/- 0 5 acres) on Recreational Property ONLY during the August through February off-season for the Sea View Little League when the sports fields are not being used. (3) City Park Site Improvements (a) The existing City Park parking lot will be removed, replaced and restriped to provide the appropriate ADA accessible parking spaces and to surface dram to the water quality basin being constructed by the Residential Buyer in accordance with Paragraph 6b(1)(a) (+/- 0 4 acres) (b) Grading and construction of ADA walkways and landscape improvements to the existing City Park (+/- 0 4 acres). (c) Grading and construction of a water quality basin and Swale to treat run-off from the City Park parking lot (+/- 0.1 acres). C. Formation of Homeowners Association. Following the close of escrow on the Residential Property and upon recordation of Final Map 17801, the Residential Buyer shall be required to create a homeowners association ("H.O.A ") in compliance with the Davis -Stirling Common Interest Development Act, commencing with California Civil Code Section 4000, for the purpose of maintaining the common areas within the Residential Property, including, but not limited to (1) Water Quality Basin Area Following the close of escrow for the Residential Property and concurrent with the recordation of Final Map 17801 or issuance of the first grading permit for the Residential Property, the Residential Buyer shall construct a water quality basin, drainage swale and "under sidewalk drain" on the southerly portion of the Residential Property and a portion of the Recreational Property as depicted on Exhibit "B" to serve the water quality for Residential Property. Buyer or HOA shall be responsible for the maintenance of the Water Quality Basin d. Construction Improvements on City Property Following the close of escrow on the Residential Property and prior to the commencement of any residential building construction activities following the recordation of Final Map 17801, the Residential Buyer shall, at its sole cost and expense, construct or cause the construction of those City Park Site Improvements described in Paragraph 6b(3) above (collectively, the "City Park Site Improvements") City shall grant the Residential Buyer a Temporary Construction Easement in the form substantially attached hereto at Exhibit "C" authorizing the Residential Buyer to construct the City Park Site Improvements (the Temporary Construction Easement"). e. Construction Improvements on LeBard Property Following the close of escrow on the Residential Property and prior to the commencement of any residential building construction activities following the recordation of Final Map 17801, the Residential Buyer shall be required, at its sole cost and expense, construct the LeBard Property Park Site Improvements Page 5 of 60 19252v1 / HBC 76 described in Paragraph 6b(2) above (collectively, the "LeBard Property Park Site Improvements") District shall grant the Residential Buyer a Temporary Construction Easement in the form substantially attached hereto at Exhibit "D" authorizing the Residential Buyer to construct those LeBard Property Park Site Improvements located on the Recreational Property (the "District Temporary Construction Easement"). 7 Conditions of Title. It shall be a condition to the Close of Escrow and a covenant of Seller that title to the Recreational Property shall be conveyed to Buyer by Seller by the Grant Deed, subject only to the following Approved Conditions of Title ("Approved Condition of Title"): a. A lien to secure payment of real estate taxes, not delinquent. b. The lien of supplemental taxes assessed pursuant to Chapter 3 5, commencing with Section 75 of the California Revenue and Taxation Code ("Code"), but only to the extent that such supplemental taxes are attributable to the transaction contemplated by this Agreement. Seller shall be responsible for, and hereby indemnifies Buyer and the Recreational Property against, any supplemental taxes assessed pursuant to the Code, to the extent that such taxes relate to events (including, without limitation, any changes in ownership and/or new construction) occurring prior to the Close of Escrow. C. Matters affecting the Approved Condition of Title created by or with the written consent of Buyer. d. Exceptions which are disclosed by the Report described in Paragraph 9a(1) hereof and which are approved or deemed approved by Buyer in accordance with Paragraph 9a(l) hereof. Seller covenants and agrees that during the term of this Escrow, Seller will not cause or permit title to the Recreational Property to differ from the Approved Condition of Title described in this Paragraph 7. Any liens, encumbrances, easements, restrictions, conditions, covenants, rights, rights -of -way, or other matters affecting the Approved Condition of Title which may appear of record or be revealed after the date of the Report described in Paragraph 9a(l) below, shall also be subject to Buyer's approval and must be eliminated or ameliorated to Buyer's satisfaction by Seller prior to the Close of Escrow as a condition to the Close of Escrow for Buyer's benefit. Buyer hereby objects to all liens evidencing monetary encumbrances affecting the Recreational Property (other than liens for non -delinquent property taxes) and Seller agrees to cause all such liens to be eliminated at Seller's sole cost and expense prior to the Closing Date 8. Title Policy. Title shall be evidenced by the willingness of the Title Company to issue its CLTA Standard Form Policy or Binder of Title Insurance ("Title Policy") in the amount of the Purchase Price showing title to the Recreational Property vested in Buyer subject only to the Approved Condition of Title Page 6 of 60 19252v I / HBC 76 9. Conditions to Close of Escrow. a. Conditions to Buyer's Obligations. The Close of Escrow and Buyer's obligation to consummate the transaction contemplated by this Agreement are subject to the satisfaction of the following conditions for Buyer's benefit on or prior to the dates designated below for the satisfaction of such conditions: (1) Preliminary Title Report and Exceptions. Immediately after escrow is opened as provided herein, Buyer agrees to cause First American Title Company ("Title Company") to issue a Preliminary Title Report relating to the Recreational Property. Within fifteen (15) days after escrow has been opened, the Buyer will cause Title Company to issue an Amendment to Escrow Instructions, which indicates those title exceptions that the Buyer will accept. Seller will have ten (10) days after receipt of such amendment to review and approve it. In the event of non -approval, escrow will fail and each party will instruct Title Company to cancel the escrow. (2) ReRresentations Warranties and Covenants of Seller. Seller shall have duly performed each and every agreement to be performed by Seller hereunder and Seller's representations, warranties, and covenants set forth in Paragraph 15 shall be true and correct as of the Closing Date. (3) No Material Changes. At the Closing Date, there shall have been no material adverse changes not otherwise provided for in this agreement or mutually agreed to by both Parties in the physical or financial condition of the Recreational Property. (4) • Inspections and Studies. On or before thirty (30) days after Opening Date ("Due Diligence Period"), Buyer shall have approved the results of any and all inspections, investigations, tests and studies (including, without limitation, investigations with regard to governmental regulations, engineering tests, soil and structure investigation and analysis, seismic and geologic reports) with respect to the Recreational Property (including all structural and mechanical systems and leased areas) as Buyer may elect to make or obtain. The failure of Buyer to disapprove said results on or prior to the expiration of the Due Diligence Period shall be deemed to constitute Buyer's approval of the results. The cost of any such inspections, tests and studies shall be borne by Buyer. During the term of this Escrow, Buyer, its agents, contractors and subcontractors shall have the right to enter upon the Recreational Property, at reasonable times during ordinary business hours, to make any and all inspections and tests as may be necessary or desirable in Buyer's sole judgment and discretion. Buyer shall use care and consideration in connection with any of its inspections. Buyer shall indemnify and hold Seller and the Recreational Property harmless from any and all damage arising out of, or resulting from the negligence of Buyer, its agents, contractors and/or subcontractors in connection with such entry and/or activities upon the Recreational Property. (5) Governing Body Approval. The completion of this transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the Buyer by action of the Buyer's City Council and of the Seller by action of the Seller's Board of Trustees. Page 7 of 60 19981v1 /HBC.76 b. Conditions to Seller's Obligation. For the benefit of Seller, the Close of Escrow shall be conditioned upon the occurrence and/or satisfaction of each of the following conditions (or Seller's waiver thereof, it being agreed that Seller may waive any or all of such conditions): (1) Buyer's Obligations. Buyer shall have timely performed all of the obligations required by the terms of this Agreement to be performed by Buyer, and (2) Buyer's Representations. All representations and warranties made by Buyer to Seller in this Agreement shall be true and correct as of the Close of Escrow. 10 Deposits b Ste. At least one (1) business day prior to the Close of Escrow, Seller shall deposit or cause to be deposited with Escrow Holder the following documents and instruments. a. Seller's Certificate Federal. A Certificate of Nonforeign Status (Seller's Certificate), duly executed by Seller in the form attached hereto as Exhibit "E." b California Withholding Exemption Certificate. A California Withholding Exemption Certificate (or in the event the Seller is a non -California resident, a certificate issued by the California Franchise Tax Board) pursuant to the Revenue and Taxation Code Sections 18805 and 26131, as may be amended, stating either the dollar amount of withholding required from Seller's proceeds or that Seller is exempt from such withholding requirement C. Grant Deed The Grant Deed and Agreement conveying the Recreational Property to Buyer substantially in the form attached as Exhibit "F" duly executed by Seller, acknowledged and in recordable form. 11. Deposits by Buyer. Buyer shall deposit, or cause to be deposited with Escrow Holder, the funds which are to be applied toward the payment of the Purchase Price in the amounts and at the times designated in Paragraph 4 above (as reduced or increased by the prorations, debits and credits hereinafter provided). 12 Costs and Expenses. The cost and expense of the Title Policy attributable to CLTA coverage shall be paid by Buyer The escrow fee of Escrow Holder shall be paid by Buyer Buyer shall pay all documentary transfer taxes, if any, payable in connection with the recordation of the Grant Deed. The amount of such transfer taxes shall not be posted on the Grant Deed, but shall be supplied by separate affidavit Buyer shall pay the Escrow Holder's customary charges to Buyer and Seller for document drafting, recording, and miscellaneous charges. If, as a result of no fault of Buyer or Seller, Escrow fails to close, Buyer shall pay all of Escrow Holder' s fees and charges Penalties for prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedure Section 1265 240. 13 Prorations. The following prorations shall be made between Seller and Buyer on the Closing Date, computed as of the Closing Date: Page 8 of 60 19252vI / HBC 76 a. Taxes The Parties hereto acknowledge that both Seller and Buyer are public entities and are exempt from payment of real property taxes. There will be no proration of taxes through Escrow. After the Close of Escrow, the Buyer will file any necessary documentation with the County Tax Collector/Assessor to maintain the property tax exemption. b. No Rental Pro -rations. Pursuant to Paragraph 23(n) Seller warrants that there are no tenants or written or oral leases on all or any portion of the Recreational Property and the Escrow Holder is hereby instructed not to perform any rental pro -rations at the Close of Escrow. 14. Disbursements and Other Actions by Escrow Holder. Upon the Close of Escrow, the Escrow holder shall promptly undertake all of the following in the manner indicated a. Prorations. Prorate all matters referenced herein, based upon the statement delivered into Escrow signed by the parties b. Recording. Cause the Grant Deed and any other documents, which the parties hereto may mutually direct, to be recorded in the Official Records of Orange County, California, in the order set forth in this subparagraph. Escrow Holder is instructed not to affix the amount of documentary transfer tax on the face of the Deed, but to supply same by separate affidavit C. Funds. Disburse from funds deposited by Buyer with Escrow Holder toward payment of all items chargeable to the account of Buyer, pursuant thereto in payment of such costs, and disburse the balance of such funds, if any, to Buyer. d. Documents to Buyer Deliver the Seller's Certificate and Bill of Sale, executed by Seller, and, when issued, the Title Policy to Buyer. e Pax demands of existing lienholders. Escrow Holder is hereby authorized and instructed to cause the reconveyance, or partial reconveyance, as the case may be, of any such monetary exceptions to Buyer's title to the Recreational Property at or prior to the Close of Escrow 15. Sellers' Representations and Warranties. In consideration of Buyer entering into this Agreement, and as an inducement to Buyer to purchase the Recreational Property, Seller makes the following representations and warranties, each of which is material and is being relied upon by Buyer (and the continued truth and accuracy of which shall constitute a condition precedent to Buyer's obligations hereunder): a Authorization. This Agreement has been duly and validly authorized, executed and delivered by Seller, and no other action is requisite to the execution and delivery of this Agreement by Seller. b. Threatened Actions There are no actions, suits or proceedings pending against, or, to the best of Seller's knowledge, threatened or affecting the Recreational Property in law or equity Page 9 of 60 19252v1 / HBC 76 C. Third Party Consents No consents or waivers of, or by, any third party are necessary to permit the consummation by Seller of the transactions contemplated pursuant to this Agreement. d. No Violation of Law. To the best of Seller's knowledge, there is no violation of law or governmental regulation by Seller with respect to the Recreational Property. e. Condemnation There is no pending, or, to the best of Seller's knowledge, threatened proceedings in eminent domain or otherwise, which would affect the Recreational Property or any portion thereof. f. Compliance with Law To the best of Seller's knowledge, all laws, ordinances, rules, and requirements and regulations of any governmental agency, body, or subdivision thereof bearing on the Recreational Property have been complied with by Seller g. Agreements. There are no agreements (whether oral or written) affecting or relating to the right of any party with respect to the possession of the Recreational Property, or any portion thereof, which are obligations which will affect the Recreational Property, or any portion thereof subsequent to the recordation of the Grant Deed, except as may be reflected in the Condition of Title, which shall have been approved by Buyer pursuant to the terms of this Agreement. h. Documents. To the best of Seller's knowledge, all documents delivered to Buyer and Escrow Holder pursuant to this Agreement are true and correct copies of originals, and any and all information supplied to Buyer by Seller is true and accurate. 1. Licenses and Permits To the best of Seller's knowledge, Seller has acquired all licenses, permits, easements, rights -of -way, including without limitation, all building and occupancy permits from any governmental authority having jurisdiction j Hazardous Substances. Except as revealed by Seller to Buyer herein, Seller has no actual knowledge that there are hazardous substances (as defined below) in existence on or below the surface of the Recreational Property, including without limitation, contamination of the soil, subsoil or groundwater, which constitutes a violation of any law, rule, or regulation of any governmental entity having jurisdiction thereof, or which exposes Buyer to liability to third parties Seller has not used the Recreational Property, or any portion thereof, for the production, disposal, or storage of any hazardous substances, and Seller has no actual knowledge that there has been such prior use of the Recreational Property, or any portion thereof, or that there has been any proceeding or inquiry by any governmental authority with respect to the presence of such hazardous substances on the Recreational Property or any portion thereof. Without limiting the other provisions of this Agreement, Seller shall cooperate with Buyer's investigation of matters relating to the foregoing provisions of this paragraph, and provide access to, and copies of, any data and/or documents dealing with potentially hazardous substances used at the Recreational Property and any disposal practices followed. Seller agrees that Buyer may, with Seller's prior approval, make inquiries of governmental agencies regarding such matters, without liability to Seller for the outcome of such discussions. For purposes of this Agreement, the term Page 10 of 60 19252v I / HBC 76 "hazardous substances" means: (i) any substance, product, waste, or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environment Response, Compensation and Liability Act (CERCLA), 42 United States Code Section 9601 et seq.; the Hazardous Material Transportation Conservation and Recovery Act, 42 United States Code Section 1801 et seq.; the Resources Conservation and Recovery Act, 42 United States Code Section 6901 et seq., the Clean Water Act, 33 United States Code Section 1251 et seq ; the Toxic Substances Control Act, 15 United States Code Section 2601 et seq.; the California Hazardous Waste Control Act, Health and Safety Code Section 25100 et seq.; the California Hazardous Substance Account Act, Health and Safety Code Section 25330 et seq; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Section 25249 5 et seq ; California Health and Safety Code Section 25280 et seq. (Underground Storage or Hazardous Substances), the California Hazardous Waste Management Act, Health and Safety Code Section 25170 1 et seq., California Health and Safety Code Section 25501 et seq. (Hazardous Materials Release Response Plans and Inventory), or the California Porter -Cologne Water Quality Control Act, Water Code Section 13000 et seq., all as amended (the above -cited California state statue are hereinafter collectively referred to as "the State Toxic Substances Laws") or any other federal, state, or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any hazardous or toxic substance hereafter in effect; (ii) any substance, product, waste, or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common law theory based on negligence, trespass, intentional tort, nuisance or strict liability or under any reported decisions of a state or federal court; (iii) petroleum or crude oil other than petroleum and petroleum products which are contained within regularly operated motor vehicles; and (iv) asbestos. k. Indemnity. Seller agrees to indemnify, defend with counsel selected by Buyer, protect and hold harmless Buyer, its City Council members, its directors, officers, staff, employees, agents, contractors, assigns, and any successor or successors to Buyer's interest from and against all claims, actual damages (including, but not limited to, special and consequential damages), punitive damages, injuries, costs, response costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties, and expenses (including, but not limited to, attorneys' and expert witness' fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the Recreational Property, or any indemnified party directly or indirectly arising from or attributable to: (i) any breach by Seller of any of its agreement warranties or representations set forth in this Agreement; or (ii) any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure, or other plan concerning any hazardous substance on, under, or about the Recreational Property, regardless of whether undertaken due to governmental action To the fullest extent permitted by law, the foregoing indemnification shall apply regardless of the fault, active or passive negligence, breach of warranty or contract of Buyer. The foregoing indemnity is intended to operate as an agreement pursuant to CERCLA Section 107(e), of 42 United States Code Section 9607(E), and California Health and Safety Code Section 25364, to insure, protect, hold harmless and indemnify Buyer from any liability pursuant to such sections. Page 11 of 60 19252v 1 / HBC 76 I Pollutants. To the best of Seller's knowledge, no pollutants or waste materials from the Recreational Property have ever been discharged by Seller into any body of water, and Seller has no actual knowledge of any such pollution emission by any other person or entity M. Waste Disposal. To the best of Seller's knowledge, no portion of the Recreational Property has ever been used by Seller as a waste storage or disposal site, and Seller is not aware of any such prior uses. n. No Notices. Seller has received no written notice of any change contemplated in any applicable laws, ordinances or restrictions, or any judicial or administrative action, or any action by adjacent landowners, or natural or artificial conditions upon the Recreational Property which would prevent, impede, limit, or render more costly Buyer's contemplated use of the Recreational Property 16. Buyer's Representations and Warranties. In consideration of Seller entering into this Agreement, and as an inducement to Seller to sell the Recreational Property to Buyer, Buyer makes the following representations and warranties, each of which is material and is being relied upon by Seller (the continued truth and accuracy of which shall constitute a condition precedent to Seller's obligations hereunder): a. This Agreement and all documents executed by Buyer under this Agreement which are to be delivered to Seller are, or at the time of Close of Escrow will be, duly authorized, executed, and delivered by Buyer, and are, or at the Close of Escrow will be legal, valid, and binding obligations of Buyer, and do not, and at the Close of Escrow will not violate any provisions of any agreement or judicial order to which Buyer is a party or to which it is subject b. The representations and warranties of Buyer set forth in this Agreement shall be true on and as of the Close of Escrow as if those representations and warranties were made on and as of such time 17. Damage or Condemnation Prior to Closing Seller shall promptly notify Buyer of any knowledge by Seller of casualty to the Recreational Property or any condemnation proceeding commenced prior to the Close of Escrow If any such damage or proceeding relates to, or may result in, the loss of any material portion of the Recreational Property, Seller or Buyer may, at their option, elect either to: (a) terminate this Agreement, in which event all funds deposited into Escrow by Buyer shall be returned to Buyer and neither party shall have any further rights or obligations hereunder, or (b) continue the Agreement in effect, in which event upon the Close of Escrow Buyer shall be entitled to any compensation, awards, or other payments or relief resulting from such casualty or condemnation proceeding. 18. Notices. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail, postage prepaid, Page 12 of 60 19252v 1 / HBC 76 return receipt requested, telegraphed, delivered, or sent by telex, telecopy, or cable, and shall be deemed received upon the earlier of (a) if personally delivered, the date of delivery to the address of the person to receive such notice, (b) if mailed, four business days after the date of posting by the United States post office, (c) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (d) if given by telex or facsimile, when sent. Any notice, request, demand, direction, or other communication sent by cable, telex, or facsimile must be confirmed within 48 hours by letter mailed or delivered in accordance with the foregoing The Buyer's mailing address is City of Huntington Beach Attn. City Manager 2000 Main Street, P O. Box 190 Huntington Beach, CA 92648 The Seller's mailing address is - Huntington Beach City School District 17011 Beach Boulevard, Suite 560 Huntington Beach, CA 92647 Attn: Assistant Superintendent, Administrative Services Notice of change of address shall be given by written notice in the manner detailed in this paragraph Rejection or other refusal to accept, or the inability to deliver because of changed address of which no notice was given, shall be deemed to constitute receipt of the notice, demand, request, or communication sent. 19 Legal Fees In the event suit is brought by either party to construe, Interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing party. 20 Assignment. Neither Party may assign, transfer or convey its rights or obligations under this Agreement without the prior written consent of the other Party, and then only if that Party's assignee assumes In writing all of that Party's obligations hereunder, provided, however, neither Party shall in any event be released from its obligations hereunder by reason of such assignment. 21. Indemnification. Each Party hereby agrees to indemnify, defend and hold harmless the other Party from and against any and all obligations, liabilities, claims, liens, encumbrances, losses, damages, costs and expenses, including without limitation, attorneys' fees, whether direct, contingent, or consequential, incurred by that Party relating to the Recreational Property and arising or accruing from acts, occurrences, or matters that take place on or before the Close of Escrow or resulting from any breach by the defaulting Party of its representations, warranties and covenants contained in this Agreement Page 13 of 60 19252v I / HBC 76 22. Brokerage Commissions. Neither Party has had any contact or dealings regarding the Recreational Property, or any communication in connection with the subject matter of this transaction, through any real estate broker or other person who can claim a right to a commission or finder's fee in connection with the sale contemplated herein. In the event that any broker or finder claims a commission or finder's fee based upon any contact, dealings or communication, the party through whom the broker or finder makes its claim shall be responsible for said commission or fee and all costs and expenses (including, without limitation, reasonable attorneys' fees) incurred by the other Party in defending against the same. The Party through whom any other broker or finder makes a claim shall hold harmless, indemnify and defend the other Party hereto, its successors and assigns, agents, employees, officers and directors, and the Recreational Property from and against any and all obligations, liabilities, claims, demands, liens, encumbrances and losses (including, without limitation, attorneys' fees), whether direct, contingent or consequential, arising out of, based on, or incurred as a result of such claim. The provisions of this Paragraph shall survive the termination of this Agreement 23 Miscellaneous. a. Survival of Covenants The covenants, representations and warranties of both Buyer and Seller set forth in this Agreement shall survive the recordation of the Grant Deed and the Close of Escrow. b. Required Actions of Buyer and Seller. Buyer and Seller agree to execute such instruments and documents and to diligently undertake such actions as may be required in order to consummate the purchase and sale herein contemplated, and shall use their best efforts to accomplish the Close of Escrow in accordance with the provisions hereof. c Time of Essence Time is of the essence of each and every term, condition, obligation, and provision hereof d. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. e Captions. Any captions to, or headings of, the paragraphs or subparagraphs of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof f. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the Parties hereto, to any person or entity other than the Parties hereto. g Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference Page 14 of 60 19252v 1 / HBC 76 h. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the Parties hereto 1. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof J. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, with the exception of definitions to be construed under Federal laws cited in Paragraph 150). k Fees and Other Expenses Except as otherwise provided herein, each of the parties shall pay its own fees and expenses in connection with this Agreement. 1 Entire Agreement. Except for Section 2 of the MOU, this Agreement supersedes any prior agreements, negotiations, and communications, oral or written, and contains the entire agreement between Buyer and Seller as to the subject matter hereof No subsequent agreement, representation, or promise made by either Party hereto, or by or to an employee, officer, agent or representative of either party shall be of any effect unless it is in writing and executed by the Party to be bound thereby. in. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties hereto. n Leases. Seller warrants that there are no tenants or written or oral leases on all or any portion of the Recreational Property and Seller further agrees to hold Buyer harmless and reimburse Buyer for any and all of its losses and expenses, including relocation assistance costs, occasioned by reason of any lease of said property held by any tenant of Seller Page 15 of 60 19252v1 / HBC 76 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written DATED. D64MO%8= 8 ! 201S Seller• HUNTINGTON BEACH CITY SCHOOL DISTRICT, a California public school istrict RO D AS TO FORM COUNTERPART PARKER & COVERT LLP Douglas N. Yeoman iW'4T A66 Attorney for District DATED: ��ECL"7y)�2 7�/� Buyer - CITY OF HUNTINGTON BEACH A California municipal corporation REVIEW/ED AND APPROVED C Page 16 of 60 lerk 19252v1 / HBC 76 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. DATED. DATED. REVIEWED AND APPROVED: City Managet Seller: HUNTINGTON BEACH CITY SCHOOL DISTRICT, a California public school district APPROVED AS TO FORM PARKER 8-COVERT' LLP Douglas . Yeoniay Attorney for District Buyer: CITY OF HUNTINGTON BEACH A California municipal corporation Mayor City Clerk APPROVED AS TO NORM: City Attorney INITIATED AND APPROVED: Assistant City Manager Page 16 of 60 19252v! ! 1113C 76 EXHIBIT "A-1" Legal Description of Property Page 17 of 60 19252v1 / HBC 76 TY That portion of the northwest quarter and southwest quaff South, Range 10 West in the Rancho Las Bolsas, described Beginning at a point on the south line of the northwest q'i point also being common to the southeast corner of Lot 66I corner of Lot 11, Tract 6003 in the City of Huntington, C said point also being the Point of Beginning (POB), thence, said Tract 5128 North 1 ° 15' 10" West, 376.43' to a point lol way for Crailet Drive, thence along said right of way N thence South 1 ° 15' 10" East, 110.00' along a property line 5128, thence along the southerly boundary of Tract 5128 N thence North 82°12'00" East, 129.35', thence North 77' leaving said boundary South 1°20'20" East, 336.03', thi 10.62', thence South 1°25' 14" East, 26.61', thence North 8 South 57°09' 16" East, 11.60', thence North 88°34'46" East; East, 10.25', thence North 88°37'33" East, 77.21', North 2 North 61°55'22" West, 12.65', thence North 1°55'36" 47°49'03" East, 32.27', thence North 70°17'17" East, 68, East, 9.17', thence South 1°04'30" East, 128.96' to the i section, thence North 88°55'31" East, 30.01' along the r section, thence South 1 ° 15' 08" East, 267.00' to the center South 88°55'31" West, 764.52' along said centerline, tr 267 00' to the POB. See Exhibit "A-2" for a plat depicting the above described The parcel contains approximately 6.61 acres. All dimensions and areas are based on record measurements on the ground. Page 18 of 60 of Section 8, Township 6 follows• iarter of said Section 8, said Tract 5128 and the northeast ounty of Orange, California, long the easterly boundary of ated on the southerly right of )rth 88044'50" East, 15.00', common to Lot 61 of Tract )rth 86048'20" East, 128.71', ;4'00" East, 66.28', thence nce South 47036' 14" West, �022'42" East, 48.67', thence 154.67', thence N 59°23'41" 048' 12" East, 50 91', thence Nest, 102.57', thence North 36', thence North 88036'01" orth line of the said quarter orth line of the said quarter ine of Cynthia Drive, thence ence North 1 ° 15' 08" West, and can vary from QROFESS�O� ANO�� CO m No C26821 A 19252vI / HBC 76 EXHIBIT "A-2" Map of Property Page 19 of 60 19252v1 / HBC 76 EXHIBIT "A-2" IT N 88°44'50" E 15 00 ' _ 1 i S 1°1g1O' E E 128I1' 12935 g626, 11°34pO N86°4»2O" N8212oo 1 AS• F 9 1 1 m s�7 1 °' C. Ohs, S 1°04'30" E 128 96 ' w I � ••,• I I N 88°55'31" E 30 01 ' 1 ' ! 1 N U • NOp� LINE OF THISS t3�'MY9,1%A 10Wj-- 1 S 57°09'16 E 1160 J_ _ _ 1?BS • °- — - - B S 1°25'14" E 26 61 '--! N 8--8°34'46" E ' L7 w I I� !Z I 15467' lu± m Z I o N 88°22'42" E 48 ,. --•_- 'S9"2'i$�''�°id2� a� � 8°37'33" E 77 21 ' ! m own ! w Recreational Proper ! I 6 61 AC (Gross) i$ o N!m 4 1 I $ (S 89235'27" W PER TR 6003) i ! S 88°55'31" W 764 52' • - ! -_ -1 --- - - — w - _- `---- --- --- --- ---- - - --- - __ CYNTHIA --- --- --- --- ------ --- DRIVE _-- - -•-- --•- —,- - - — SCALE 1"=120' MSA Land Solutions` Inc 30854Hamilton Trail, Trabuco Canyon, CA92679 Page 20 of 60 19252v 1 / HBC 76 EXHIBIT "B" Site Map of Park Site Improvements Page 21 of 60 ] 9252v 1 / HBC 76 EXHIBIT "B" RESIDENTIAL PROPERTY MULTI -PURPOSE BLDG WATER QUALITY BASIN WATER QUALITY SWALE BULLPEN INJ PROPERTY WALKWAYS I j lF--_PqBUC_RlGHT_OP WAY It#ROVEhiiNTS Page 22 of 60 PARKINGLOT----- - ATER QUALITY BASIN & SWALE CITY PARK SITE 19252v I / HBC 76 EXHIBIT "C" City Temporary Construction Easement Page 23 of 60 19252v1 / HBC 76 EXHIBIT "D" District Temporary Construction Easement Agreement Page 35 of 60 19252v1 / HBC 76 EXHIBIT "E" Transferor's Certification of Non -Foreign Status Page 51 of 60 19252v1 / HBC 76 EXHIBIT "F" Grant Deed and Agreement Page 53 of 60 19252v1 / HBC 76 5. Time of Essence. Time is of the essence of each and every term, condition, obligation and provision hereof. 6. Provisions Severable. In the event any portion of this Agreement shall be declared by any court of competent jurisdiction to be invalid, illegal or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining parts hereof shall remain in full force and effect, as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 7. Counterparts. This Deed may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. Huntington Beach City School District M. Its "Grantor" City of Huntington Beach By: Its. By: Its: Page 55 of 60 "Grantee" 19252v1 / HBC 76 STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) On , 2016, before me, the undersigned, a Notary Public in and for said County and State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the came in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument. WITNESS my hand and official seal. Notary Public STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) On , 201_, before me, the undersigned, a Notary Public in and for said County and State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the came in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument. WITNESS my hand and official seal. Notary Public Page 56 of 60 19252v1 / HBC 76 SCHEDULEI LEGAL DESCRIPTION OF PROPERTY Page 57 of 60 19252v1 / HBC 76 LEGAL DESCRIPTION OF RECREATIONAL PROPERTY That portion of the northwest quarter and southwest quarter of Section 8, Township 6 South, Range 10 West in the Rancho Las Bolsas, described as follows: Beginning at a point on the south line of the northwest quarter of said Section 8, said point also being common to the southeast corner of Lot 66, Tract 5128 and the northeast corner of Lot 11, Tract 6003 in the City of Huntington, County of Orange, California, said point also being the Point of Beginning (POB), thence along the easterly boundary of said Tract 5128 North 1 ° 15' 10" West, 376.43' to a point located on the southerly right of way for Crailet Drive, thence along said right of way North 88144'50" East, 15.00', thence South 1 ° 15' 10" East, 110.00' along a property line common to Lot 61 of Tract 5128, thence along the southerly boundary of Tract 5128 North 86048120" East, 128.71', thence North 82°12'00" East, 129.35, thence North 77°34'00" East, 66.28', thence leaving said boundary South 1120'20" East, 336.03', thence South 47036'14" West, 10.62', thence South 1°25'14" East, 26.61', thence North 88°22'42" East, 48.67', thence South 57009' 16" East, 11.60', thence North 88034'46" East, 154.67', thence N 59023'41" East, 10.25', thence North 88037'33" East, 77.21', North 21048'12" East, 50.91', thence North 61°55'22" West, 12.65', thence North 1°55'36" West, 102.57', thence North 47049'03" East, 32 27', thence North 70017'17" East, 68 36', thence North 88036'01" East, 9.17', thence South 1004'30" East, 128.96' to the north line of the said quarter section, thence North 88055'31" East, 30.01' along the north line of the said quarter section, thence South 1015'08" East, 267 00' to the centerline of Cynthia Drive, thence South 88055'31" West, 764.52' along said centerline, thence North 1015'08" West, 267.00' to the POB. See Exhibit "A-2" for a plat depicting the above described land. The parcel contains approximately 6.61 acres. All dimensions and areas are based on record information and can vary from measurements on the ground. Page 58 of 60 QR0VESS/O 9 ACO No 6 °y m m 2T No C26821 A CIVI\- ���� CF cpx\� 19252v1 / HBC 76 SCHEDULE2 PLAT OF PROPERTY Page 59 of 60 19252v1 / HBC 76 _ f N 88°44'S0' E_15 00' -_- i 49 12SA V, sett 77°34� I` �-• cn IT9, F ITO y9 12896' 3001 ' NORTH UNE OF THE SW 114 SEC 8, T 6S R 10W S 47°361a" W 10 62' z _. _ � Z S 1°25'14" E 26 61 ' N 88°34146_E y 15467' �cn cw 1 N 88°22'42" E 48 67' 00 ca oa I W N 59°23'41" E 10 25' N 8B°3T33" E 77 21 'm rn ro m o �o CA) (S 89035'27" W PER TR 6003) — -- _ — S 88°55'31"W-764 52'— i -- — - -- ------------ -- CYN i DRIVE � r r r MSA /Land Solutions, Inc 3W54HamiitcnTrail TtabucnCargon G'192679 Page 60 of 60 19252v1 / HBC 76 Dept ID City Manager's Office Page 1 of 2 Meeting Date 12/7/2015 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 12/7/2015 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: Ken Domer, Assistant City Manager SUBJECT: Approve and authorize execution of an Agreement for Acquisition and Escrow Instructions between the City of Huntington Beach and the Huntington Beach City School District regarding 6 61 acres of the former LeBard Elementary School for recreational purposes Statement of Issue Per a Memorandum of Understanding entered into on May 5, 2014, between the City and the Huntington Beach City School District (District), the City and District have finalized an Agreement for Acquisition and Escrow Instructions (Agreement) in order for the City to purchase 6 61 acres'of District property formerly used for LeBard Elementary School The purchased acres will remain recreational in nature, hosting fields utilized by Seaview Little League, and will be added to the adjacent LeBard Park. Financial Impact The purchase price is $3,168,000 to be payable in five annual payments of $633,600 The annual payments will be split equally between the non -departmental business unit of the General Fund (10040101 88030) and Park Development Impact — Non Residential Fund business unit (23545001 81100) which is used for park acquisitions Recommended Action Approve and authorize the Mayor and City Clerk to execute the "Agreement for Acquisition and Escrow Instructions" to purchase 6 61 acres from the Huntington Beach City School District (former LeBard Elementary School site) for recreational purposes Alternative Action(s) Do not approve the Agreement for Acquisition and Escrow Instructions and provide direction to Staff Analysis LeBard Elementary School was built in the 1960's for utilization by the Huntington Beach City School District Due to declining enrollment, the District closed the school in 1480 and began to use the facility as their District headquarters. The District permits Seaview Littler League (SLL) to utilize a portion of the school grounds for baseball fields on a temporary, year-to-year basis, at a minimal cost Currently, the SLL maintains six baseball fields on the District property. The City owns and maintains the adjacent LeBard Park, which is approximately three -acres in size. The park has 38 parking spaces, two tennis courts, meeting room/concession building, tot lot and general open space Between the City park and the Santa Ana River is an accessible Southern Item 11. - 1 HB -410- Dept ID City Manager's Office Page 2 of 2 Meeting Date 12/7/2015 California Edison (SCE) easement area of approximately two -acres This easement area contains two electrical towers and is generally vacant space However, there are plans for "phase II" improvements to LeBard Park which show it being improved with an open turf area, walking paths, and general landscaping improvements. On March 10, 2008, the City received notice from the District that LeBard School was declared surplus property. On April 7, 2008, the City Council approved Resolution 2008-22, which resolved that public land in the vicinity of the school site was inadequate to meet existing and future needs of the community for recreational purposes, and authorized the City Manager to begin negotiations with the District for purchase of the site General discussions between the District and City regarding the LeBard School have taken place for several years and only most recently have the two parties, along with major input from the adjacent community and facility users, come to an understanding of the site's future This understanding includes utilizing the existing footprint of the school buildings and blacktop area for the development of fifteen (15) single family residential homes on lots comparable to the adjacent neighborhoods, and within the development standards of the low -density residential (RL) zoning designation The intent was to create a residential development that fits within the current residential neighborhoods to include public streets and sidewalks separated from the street by landscaped parkways As part of the overall process, the development of a Memorandum of Understanding (MOU) between the District and City was agreed to in order to provide a framework for the terms and conditions of an eventual agreement for the acreage to be purchased by the City The Memorandum of Understanding was approved by the City Council on May 5, 2014, and the deal terms of that MOU have been incorporated into the proposed Agreement. Since the approval of the MOU on May 5, 2014, the District submitted entitlement plans through the City's Planning & Building Department which included a Planning Commission Study Session on May 26, 2015, Planning Commission approval on June 9, 2015, City Council Public Hearing on July 6, 2015, and City Council approval of all entitlements (General Plan Amendment, Zoning Map Amendment, Tentative Tract Map, and Environmental Impact Report) on July 20, 2015 At this time, the City and District have finalized an Agreement and that Agreement is ready for consideration by each governing board The District is prepared to consider the item at their meeting on December 8, 2015 Environmental Status Not applicable for acquisition Mitigated Negative Declaration was 12-008 was approved by the City Council on July 20, 2015, for applicable entitlements Strategic Plan Goal Improve quality of life Attachment(s) 1 Agreement for Acquisition and Escrow Instructions 2 July 6, 2015, City Council entitlement package approval Request for Council Action xB -411- Item 11. - 2 AGREEMENT FOR ACQUISITION AND ESCROW INSTRUCTIONS This AGREEMENT FOR ACQUISITION AND ESCROW INSTRUCTIONS ("Agreement") is made and entered into as of this 8th day of December 2015, and constitutes an agreement by which HUNTINGTON BEACH CITY SCHOOL DISTRICT, a California public school district ("Seller" or "District") agrees to sell, and the CITY OF HUNTINGTON BEACH, a California municipal corporation ("Buyer" or "City"), agrees to purchase on the terms and conditions hereinafter set forth That certain real property described in Exhibit "A-1" and depicted in Exhibit "A-2" attached hereto,(the "Recreational Property" or "Open Space Parcel") representing approximately 6 61 acres of the approximate 10 14 acre former Education Center of the District, more commonly referred to as the LeBard Property The District is concurrently selling the remaining approximate 3 53 acres of the LeBard Property for residential use (the "Residential Property") in accordance with the competitive bidding requirements of Education Code section 17455 et sec, and consistent with the City's approved entitlements consisting of (a) Tentative Tract Map Number 17801 for a total of fifteen (15) single-family residential lots, (b) Zoning Map Amendment No 12-001, and (c) General Plan Amendment No 12-002 (collectively, the "Project Site Entitlements") Seller and Buyer are sometimes hereinafter referred to individually as a "Party" and collectively as the "Parties " The terms and conditions of this Agreement and the instructions to Lawyers Title Company ("Escrow Holder") with regard to the escrow ("Escrow") created pursuant hereto are as follows- 1 Purchase and Sale For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller agrees to sell the Recreational Property to Buyer, and Buyer agrees to purchase the Recreational Property from Seller, upon the terms and conditions herein set forth 2. Purchase Price The purchase price ("Purchase Price") for the Recreational Property shall be THREE MILLION, ONE HUNDRED SIXTY-EIGHT THOUSAND DOLLARS ($3,168,000) This sum shall be full payment for the Recreational Property and for all damages of every kind and nature, including, but not limited to, pre -condemnation damages, loss of rental income and severance damages suffered, any and all claims suffered, or to be suffered, by reason of the acquisition of the Recreational Property 3 Acknowledgment of Full Benefits and Release a By execution of this Agreement, Seller, on behalf of itself and its respective successors and assigns, hereby acknowledges that this Agreement provides full payment for the acquisition of the Recreational Property by Buyer, and Seller hereby expressly and unconditionally waives any and all claims for damages, relocation assistance benefits, severance damages, interest, loss of goodwill, claims for inverse condemnation or unreasonable pre - condemnation conduct, or any other compensation or benefits, other than as already expressly Page 1 of 60 19252v 1 / HBC 76 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 Buyer's acquisition of the Recreational Property b This Agreement arose out of Buyer's efforts to acquire the Recreational Property on a voluntary basis Seller acknowledges and agrees that said purchase price is just compensation based on the Seller's appraisal price as adjusted by the provisions of the Naylor Act and includes any and all fixtures and equipment, goodwill (if any) and severance The Parties acknowledge the Naylor Act allows cities to purchase surplus recreational and open - space school property at twenty-five percent (25%) of the appraised value, and that not more than thirty percent (30%) of the total surplus recreational and open -space school acreage owned by the District may be purchased at the reduced value Buyer and Seller agree that the acreage was calculated as detailed in Section 2 of the Memorandum of Understanding executed on May 5, 2014 ("MOU") between the Parties Seller, on behalf of itself and its successors and assigns, hereby fully release Buyer, its successors, agents, representatives, and assigns, and all other persons and associations, known or unknown, from all claims and causes of action by reason of any damage which has been sustained, or may be sustained, as a result of Buyer's efforts to acquire the Recreational Property or to construct works of improvement thereon, or any preliminary steps thereto Seller further releases and agrees to hold Buyer harmless from any and all claims by reason of any leasehold interest in the Recreational Property This release shall survive the Close of Escrow. c The Parties hereto hereby agree that all rights under Section 1542 of the Civil Code of the State of California are hereby waived Civil Code Section 1542 provides as follows. "A general release does not extend to claims which the creditor does not know or suspect to exist in his/her favor at the time of executing the release, which if known by him/her must have materially affected his/her settlement with the debtor " Notwithstanding the provisions of Civil Code Section 1542, Seller hereby irrevocably and unconditionally releases and forever discharges the Buyer and each and all of its officers, agents, directors, supervisors, employees, representatives, and its successors and assigns and all persons acting by, through, under, or in concert with the Buyer from any and all charges, complaints, claims, and liabilities of any kind or nature whatsoever, known or unknown, suspected or unsuspected (hereinafter referred to as "claim" or "claims") which Seller at any time heretofore had or claimed to have or which Seller at any time hereafter may have or claim to have, including, without limitation, any and all claims related or in any manner incidental to this transaction I HAVE READ AND UNDERSTOOD PARAGRAPH 3 Acknowledgment of Full Benefits and Release Seller's Initials Page 2 of 60 19252v 1 / HBC 76 4 Payment of Purchase Price The Purchase Price for the Recreational Property shall be payable by Buyer as follows Within ten (10) days of the Opening of Escrow, Buyer shall deposit or cause to be deposited with Escrow Holder, in cash or by a certified or bank cashier's check made payable to Escrow Holder or a confirmed wire transfer of funds, the first annual installment of SIX HUNDRED THIRTY-THREE THOUSAND, SIX HUNDRED DOLLARS ($633,600) plus or minus Escrow Holder's estimate of Buyer's closing costs, prorations and charges payable pursuant to this Agreement All escrow, recording and title insurance costs, if applicable, are to be paid by Buyer Prior to the first anniversary of the date of Opening, and annually thereafter until entire Purchase Price is paid, regardless of Close of Escrow, Buyer shall make four (4) additional installment payments of SIX HUNDRED THIRTY-THREE THOUSAND, SIX HUNDRED DOLLARS ($633,600) Upon Close of Escrow, any remaining annual payments shall be made to District 5 Escrow a Opening of Escrow For purposes of this Agreement, the Escrow shall be deemed opened on the date Escrow Holder shall have received an executed counterpart of this Agreement from both Buyer and Seller ("Opening Date") Escrow Holder shall notify Buyer and Seller, in writing, of the date Escrow is opened and the estimated Closing Date, as defined in Paragraph 5(b), below In addition, Buyer and Seller agree to execute, deliver, and be bound by any reasonable or customary supplemental escrow instructions of Escrow Holder, or other instruments as may reasonably be required by Escrow Holder, in order to consummate the transaction contemplated by this Agreement Any such supplemental instructions shall not conflict with, amend, or supersede any portion of this Agreement If there is any inconsistency between such supplemental instructions and this Agreement, this Agreement shall control b Close of Escrow For purposes of this Agreement, "Close of Escrow" shall be defined as the date that the Grant Deed, conveying the Recreational Property to Buyer, is recorded in the Official Records of Orange County, California This Escrow shall close within thirty (30) days after the completion of all improvements to the Open Space Parcel as set forth in the MOU and more particularly described in this Paragraph 5 ("Closing Date") c Use of Escrow Funds During Escrow, District may use Escrow funds for District improvements related to parking and other Open Space Parcel improvements as agreed to within Section 4 of the MOU, as more specifically described in Paragraph 6 below (collectively, the "Park Site Improvements") In the event of any conflict or irregularity between the required improvements described in the MOU and this Agreement, the description of said improvement(s) contained in this Agreement shall supercede all prior agreements and understandings, including the MOU, between the Parties relative to the Park Site Improvements 6 Park Site Improvements District shall cause the successful bidder for the purchase of the Residential Property following the close of escrow for the Residential Property to design and construct or cause the construction of the following Park Site Improvements to those portions of the Residential Property, Recreational Property, and City's adjacent LeBard Park and public right-of-way (the "City Property") as generally depicted on the site map attached hereto as Exhibit "B" Page 3 of 60 19252vl / HBC 76 a Within ninety (90) days following the close of escrow for the Residential Property, the successful buyer of the Residential Property (the "Residential Buyer") shall be responsible for preparing and submitting to City for its review and approval the plans and specifications for the construction of the Park Site Improvements Upon approval of the plans and specifications for the Park Site Improvements by City, the Residential Buyer shall diligently pursue to completion all such Park Site Improvements b The Park Site Improvements to be constructed by the Residential Buyer will be performed on the Residential and Recreational Properties comprising the LeBard Property as well as on the City Property as required by the Project Site Entitlements as more particularly described below (1) Public Right -of -Way Improvements (a) Grading and construction of street improvements to Craimer Lane and Warwick Drive adjacent to the Residential and Recreational Properties Improvements to half section of a portion of Craimer Lane and Warwick Drive to include the curb and gutter which will be removed and replaced These improvements include the entry returns, sewer and water laterals for the Residential Property and a new driveway into the City Park parking lot, sewer and water laterals and new landscaped parkways with curb separated sidewalks (+/- 0 4 acres) Installation of "under walk drains" on Cynthia Drive (2) LeBard Property Park Site Improvements (a) Construction of proposed landscape planter and water quality basin (0 5 acres) on the Residential Property as further described in Paragraph 6c(1) below (b) Construction of restroom/concession/storage building (1,500 sf) (the "Multi -Purpose Building") in support of use of sports fields on Recreational Property (c) Construction of paved area surrounding the Multi -Purpose Building (+/- 2,500 so on Recreational Property Recreational Property Recreational Property (d) Construction of a portion of proposed parking lot (+/- 450 sf) on (e) Construction of proposed drainage swale (+/- 0 3 acres) on (f) Relocation of bullpen (+/- 1,000 sf) on Recreational Property (g) Construction of a portion of water quality basin and swale (+/- 350 sf) on Recreational Property Page 4 of 60 19252v 1 / HBC 76 (h) Replacement and upgrade of the existing walkways within the sport field areas to ADA accessible walkways and the relocation of bleachers (+/- 0 5 acres) on Recreational Property ONLY during the August through February off-season for the Sea View Little League when the sports fields are not being used (3) City Park Site Improvements (a) The existing City Park parking lot will be removed, replaced and restriped to provide the appropriate ADA accessible parking spaces and to surface drain to the water quality basin being constructed by the Residential Buyer in accordance with Paragraph 6b(1)(a) (+/- 0 4 acres) (b) Grading and construction of ADA walkways and landscape improvements to the existing City Park (+/- 0.4 acres) (c) Grading and construction of a water quality basin and swale to treat run-off from the City Park parking lot (+/- 0 1 acres) c Formation of Homeowners Association Following the close of escrow on the Residential Property and upon recordation of Final Map 17801, the Residential Buyer shall be required to create a homeowners association ("H O A.") in compliance with the Davis -Stirling Common Interest Development Act, commencing with California Civil Code Section 4000, for the purpose of maintaining the common areas within the Residential Property, including, but not limited to (1) Water Quality Basin Area Following the close of escrow for the Residential Property and concurrent with the recordation of Final Map 17801 or issuance of the first grading permit for the Residential Property, the Residential Buyer shall construct a water quality basin, drainage swale and "under sidewalk drain" on the southerly portion of the Residential Property and a portion of the Recreational Property as depicted on Exhibit "B" to serve the water quality for Residential Property Buyer or HOA shall be responsible for the maintenance of the Water Quality Basin d Construction Improvements on City Property Following the close of escrow on the Residential Property and prior to the commencement of any residential building construction activities following the recordation of Final Map 17801, the Residential Buyer shall, at its sole cost and expense, construct or cause the construction of those City Park Site Improvements described in Paragraph 6b(3) above (collectively, the "City Park Site Improvements) City shall grant the Residential Buyer a Temporary Construction Easement in the form substantially attached hereto at Exhibit "C" authorizing the Residential Buyer to construct the City Park Site Improvements (the Temporary Construction Easement") e Construction Improvements on LeBard Property Following the close of escrow on the Residential Property and prior to the commencement of any residential building construction activities following the recordation of Final Map 17801, the Residential Buyer shall be required, at its sole cost and expense, construct the LeBard Property Park Site Improvements Page 5 of 60 19252v I / HBC 76 described in Paragraph 6b(2) above (collectively, the "LeBard Property Park Site Improvements) District shall grant the Residential Buyer a Temporary Construction Easement in the form substantially attached hereto at Exhibit "D" authorizing the Residential Buyer to construct those LeBard Property Park Site Improvements located on the Recreational Property (the "District Temporary Construction Easement"). 7 Conditions of Title It shall be a condition to the Close of Escrow and a covenant of Seller that title to the Recreational Property shall be conveyed to Buyer by Seller by the Grant Deed, subject only to the following Approved Conditions of Title ("Approved Condition of Title") a A lien to secure payment of real estate taxes, not delinquent b The lien of supplemental taxes assessed pursuant to Chapter 3 5, commencing with Section 75 of the California Revenue and Taxation Code ("Code"), but only to the extent that such supplemental taxes are attributable to the transaction contemplated by this Agreement Seller shall be responsible for, and hereby indemnifies Buyer and the Recreational Property against, any supplemental taxes assessed pursuant to the Code, to the extent that such taxes relate to events (including, without limitation, any changes in ownership and/or new construction) occurring prior to the Close of Escrow c Matters affecting the Approved Condition of Title created by or with the written consent of Buyer d Exceptions which are disclosed by the Report described in Paragraph 9a(1) hereof and which are approved or deemed approved by Buyer in accordance with Paragraph 9a(1) hereof. Seller covenants and agrees that during the term of this Escrow, Seller will not cause or permit title to the Recreational Property to differ from the Approved Condition of Title described in this Paragraph 7 Any liens, encumbrances, easements, restrictions, conditions, covenants, rights, rights -of -way, or other matters affecting the Approved Condition of Title which may appear of record or be revealed after the date of the Report described in Paragraph 9a(1) below, shall also be subject to Buyer's approval and must be eliminated or ameliorated to Buyer's satisfaction by Seller prior to the Close of Escrow as a condition to the Close of Escrow for Buyer's benefit Buyer hereby objects to all liens evidencing monetary encumbrances affecting the Recreational Property (other than liens for non -delinquent property taxes) and Seller agrees to cause all such liens to be eliminated at Seller's sole cost and expense prior to the Closing Date 8 Title Policy Title shall be evidenced by the willingness of the Title Company to issue its CLTA Standard Form Policy or Binder of Title Insurance ("Title Policy") in the amount of the Purchase Price showing title to the Recreational Property vested in Buyer subject only to the Approved Condition of Title Page 6 of 60 19252v1 / HBC 76 9 Conditions to Close of Escrow a Conditions to Buyer's Obligations_ The Close of Escrow and Buyer's obligation to consummate the transaction contemplated by this Agreement are subject to the satisfaction of the following conditions for Buyer's benefit on or prior to the dates designated below for the satisfaction of such conditions (1) Preliminary Title Report and Exceptions Immediately after escrow is opened as provided herein, Buyer agrees to cause Lawyers Title Company to issue a Preliminary Title Report relating to the Recreational Property Within fifteen (15) days after escrow has been opened, the Buyer will cause Lawyers Title Company to issue an Amendment to Escrow Instructions, which indicates those title exceptions that the Buyer will accept Seller will have ten (10) days after receipt of such amendment to review and approve it In the event of non - approval, escrow will fail and each party will instruct Lawyers Title Company to cancel the escrow (2) Representations Warranties and Covenants of Seller Seller shall have duly performed each and every agreement to be performed by Seller hereunder and Seller's representations, warranties, and covenants set forth in Paragraph 15 shall be true and correct as of the Closing Date (3) No Material Changes At the Closing Date, there shall have been no material adverse changes not otherwise provided for in this agreement or mutually agreed to by both Parties in the physical or financial condition of the Recreational Property (4) Inspections and Studies On or before thirty (30) days after Opening Date ("Due Diligence Period"), Buyer shall have approved the results of any and all inspections, investigations, tests and studies (including, without limitation, investigations with regard to governmental regulations, engineering tests, soil and structure investigation and analysis, seismic and geologic reports) with respect to the Recreational Property (including all structural and mechanical systems and leased areas) as Buyer may elect to make or obtain The failure of Buyer to disapprove said results on or prior to the expiration of the Due Diligence Period shall be deemed to constitute Buyer's approval of the results The cost of any such inspections, tests and studies shall be borne by Buyer During the term of this Escrow, Buyer, its agents, contractors and subcontractors shall have the right to enter upon the Recreational Property, at reasonable times during ordinary business hours, to make any and all inspections and tests as may be necessary or desirable in Buyer's sole judgment and discretion Buyer shall use care and consideration in connection with any of its inspections Buyer shall indemnify and hold Seller and the Recreational Property harmless from any and all damage arising out of, or resulting from the negligence of Buyer, its agents, contractors and/or subcontractors in connection with such entry and/or activities upon the Recreational Property (5) Governing Body Approval The completion of this transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the Buyer by action of the Buyer's City Council and of the Seller by action of the Seller's Board of Trustees Page 7 of 60 19252v1 / HBC 76 b Conditions to Seller's Obligation For the benefit of Seller, the Close of Escrow shall be conditioned upon the occurrence and/or satisfaction of each of the following conditions (or Seller's waiver thereof, it being agreed that Seller may waive any or all of such conditions) (1) Buyer's Obligations Buyer shall have timely performed all of the obligations required by the terms of this Agreement to be performed by Buyer, and (2) Buyer's Representations All representations and warranties made by Buyer to Seller in this Agreement shall be true and correct as of the Close of Escrow 10 Deposits by Seller At least one (1) business day prior to the Close of Escrow, Seller shall deposit or cause to be deposited with Escrow Holder the following documents and instruments a Seller's Certificate Federal A Certificate of Nonforeign Status (Seller's Certificate), duly executed by Seller in the form attached hereto as Exhibit "E " b California Withholding Exemption Certificate A California Withholding Exemption Certificate (or in the event the Seller is a non -California resident, a certificate issued by the California Franchise Tax Board) pursuant to the Revenue and Taxation Code Sections 18805 and 26131, as may be amended, stating either the dollar amount of withholding required from Seller's proceeds or that Seller is exempt from such withholding requirement c Grant Deed The Grant Deed and Agreement conveying the Recreational Property to Buyer substantially in the form attached as Exhibit "F" duly executed by Seller, acknowledged and in recordable form 11 Deposits by Buyer Buyer shall deposit, or cause to be deposited with Escrow Holder, the funds which are to be applied toward the payment of the Purchase Price in the amounts and at the times designated in Paragraph 4 above (as reduced or increased by the prorations, debits and credits hereinafter provided) 12 Costs and Expenses The cost and expense of the Title Policy attributable to CLTA coverage shall be paid by Buyer The escrow fee of Escrow Holder shall be paid by Buyer Buyer shall pay all documentary transfer taxes, if any, payable in connection with the recordation of the Grant Deed The amount of such transfer taxes shall not be posted on the Grant Deed, but shall be supplied by separate affidavit Buyer shall pay the Escrow Holder's customary charges to Buyer and Seller for document drafting, recording, and miscellaneous charges If, as a result of no fault of Buyer or Seller, Escrow fails to close, Buyer shall pay all of Escrow Holder' s fees and charges Penalties for prepayment of bona fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code Procedure Section 1265 240 13, Prorations The following prorations shall be made between Seller and Buyer on the Closing Date, computed as of the Closing Date Page 8 of 60 19252v1 / HBC 76 a Taxes. The Parties hereto acknowledge that both Seller and Buyer are public entities and are exempt from payment of real property taxes There will be no proration of taxes through Escrow After the Close of Escrow, the Buyer will file any necessary documentation with the County Tax Collector/Assessor to maintain the property tax exemption b No Rental Pro -rations Pursuant to Paragraph 23(n) Seller warrants that there are no tenants or written or oral leases on all or any portion of the Recreational Property and the Escrow Holder is hereby instructed not to perform any rental pro -rations at the Close of Escrow 14 Disbursements and Other Actions by Escrow Holder Upon the Close of Escrow, the Escrow holder shall promptly undertake all of the following in the manner indicated a Prorations Prorate all matters referenced herein, based upon the statement delivered into Escrow signed by the parties b Recording Cause the Grant Deed and any other documents, which the parties hereto may mutually direct, to be recorded in the Official Records of Orange County, California, in the order set forth in this subparagraph Escrow Holder is instructed not to affix the amount of documentary transfer tax on the face of the Deed, but to supply same by separate affidavit c Funds. Disburse from funds deposited by Buyer with Escrow Holder toward payment of all items chargeable to the account of Buyer, pursuant thereto in payment of such costs, and disburse the balance of such funds, if any, to Buyer d Documents to Buyer Deliver the Seller's Certificate and Bill of Sale, executed by Seller, and, when issued, the Title Policy to Buyer e Pay demands of existingLlienholders. Escrow Holder is hereby authorized and instructed to cause the reconveyance, or partial reconveyance, as the case may be, of any such monetary exceptions to Buyer's title to the Recreational Property at or prior to the Close of Escrow 15 Sellers' Representations and Warranties In consideration of Buyer entering into this Agreement, and as an inducement to Buyer to purchase the Recreational Property, Seller makes the following representations and warranties, each of which is material and is being relied upon by Buyer (and the continued truth and accuracy of which shall constitute a condition precedent to Buyer's obligations hereunder) a Authorization This Agreement has been duly and validly authorized, executed and delivered by Seller, and no other action is requisite to the execution and delivery of this Agreement by Seller b Threatened Actions There are no actions, suits or proceedings pending against, or, to the best of Seller's knowledge, threatened or affecting the Recreational Property in law or equity Page 9 of 60 19252v1 / HBC 76 c Third Party Consents No consents or waivers of, or by, any third party are necessary to permit the consummation by Seller of the transactions contemplated pursuant to this Agreement d No Violation of Law To the best of Seller's knowledge, there is no violation of law or governmental regulation by Seller with respect to the Recreational Property e Condemnation There is no pending, or, to the best of Seller's knowledge, threatened proceedings in eminent domain or otherwise, which would affect the Recreational Property or any portion thereof f Compliance with Law To the best of Seller's knowledge, all laws, ordinances, rules, and requirements and regulations of any governmental agency, body, or subdivision thereof bearing on the Recreational Property have been complied with by Seller g Agreements There are no agreements (whether oral or written) affecting or relating to the right of any party with respect to the possession of the Recreational Property, or any portion thereof, which are obligations which will affect the Recreational Property, or any portion thereof subsequent to the recordation of the Grant Deed, except as may be reflected in the Condition of Title, which shall have been approved by Buyer pursuant to the terms of this Agreement h Documents To the best of Seller's knowledge, all documents delivered to Buyer and Escrow Holder pursuant to this Agreement are true and correct copies of originals, and any and all information supplied to Buyer by Seller is true and accurate i Licenses and Permits To the best of Seller's knowledge, Seller has acquired all licenses, permits, easements, rights -of -way, including without limitation, all building and occupancy permits from any governmental authority having jurisdiction J Hazardous Substances Except as revealed by Seller to Buyer herein, Seller has no actual knowledge that there are hazardous substances (as defined below) in existence on or below the surface of the Recreational Property, including without limitation, contamination of the soil, subsoil or groundwater, which constitutes a violation of any law, rule, or regulation of any governmental entity having jurisdiction thereof, or which exposes Buyer to liability to third parties Seller has not used the Recreational Property, or any portion thereof, for the production, disposal, or storage of any hazardous substances, and Seller has no actual knowledge that there has been such prior use of the Recreational Property, or any portion thereof, or that there has been any proceeding or inquiry by any governmental authority with respect to the presence of such hazardous substances on the Recreational Property or any portion thereof Without limiting the other provisions of this Agreement, Seller shall cooperate with Buyer's investigation of matters relating to the foregoing provisions of this paragraph, and provide access to, and copies of, any data and/or documents dealing with potentially hazardous substances used at the Recreational Property and any disposal practices followed Seller agrees that Buyer may, with Seller's prior approval, make inquiries of governmental agencies regarding such matters, without liability to Seller for the outcome of such discussions For purposes of this Agreement, the term Page 10 of 60 19252v1 { HBC 76 "hazardous substances" means (i) any substance, product, waste, or other material of any nature whatsoever which is or becomes listed, regulated, or addressed pursuant to the Comprehensive Environment Response, Compensation and Liability Act (CERCLA), 42 United States Code Section 9601 et seq , the Hazardous Material Transportation Conservation and Recovery Act, 42 United States Code Section 1801 et seq , the Resources Conservation and Recovery Act, 42 United States Code Section 6901 et seq, the Clean Water Act, 33 United States Code Section 1251 et seq , the Toxic Substances Control Act, 15 United States Code Section 2601 et seq , the California Hazardous Waste Control Act, Health and Safety Code Section 25100 et seq , the California Hazardous Substance Account Act, Health and Safety Code Section 25330 et seq , the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code Section 25249 5 et seq , California Health and Safety Code Section 25280 et seq (Underground Storage or Hazardous Substances), the California Hazardous Waste Management Act, Health and Safety Code Section 25170 1 et seq , California Health and Safety Code Section 25501 et seq (Hazardous Materials Release Response Plans and Inventory), or the California Porter -Cologne Water Quality Control Act, Water Code Section 13000 et seq , all as amended (the above -cited California state statue are hereinafter collectively referred to as "the State Toxic Substances Laws") or any other federal, state, or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any hazardous or toxic substance hereafter in effect; (ii) any substance, product, waste, or other material of any nature whatsoever which may give rise to liability under any of the above statutes or under any statutory or common law theory based on negligence, trespass, intentional tort, nuisance or strict liability or under any reported decisions of a state or federal court, (iii) petroleum or crude oil other than petroleum and petroleum products which are contained within regularly operated motor vehicles, and (iv) asbestos k Indemnity Seller agrees to indemnify, defend with counsel selected by Buyer, , protect and hold harmless Buyer, its City Council members, its directors, officers, staff, employees, agents, contractors, assigns, and any successor or successors to Buyer's interest from and against all claims, actual damages (including, but not limited to, special and consequential damages), punitive damages, injuries, costs, response costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties, and expenses (including, but not limited to, attorneys' and expert witness' fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the Recreational Property, or any indemnified party directly or indirectly arising from or attributable to (i) any breach by Seller of any of its agreement warranties or representations set forth in this Agreement, or (n) any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure, or other plan concerning any hazardous substance on, under, or about the Recreational Property, regardless of whether undertaken due to governmental action. To the fullest extent permitted by law, the foregoing indemnification shall apply regardless of the fault, active or passive negligence, breach of warranty or contract of Buyer. The foregoing indemnity is intended to operate as an agreement pursuant to CERCLA Section 107(e), of 42 United States Code Section 9607(E), and California Health and Safety Code Section 25364, to insure, protect, hold harmless and indemnify Buyer from any liability pursuant to such sections Page 11 of 60 19252v1 / HBC 76 I Pollutants. To the best of Seller's knowledge, no pollutants or waste materials from the Recreational Property have ever been discharged by Seller into any body of water, and Seller has no actual knowledge of any such pollution emission by any other person or entity in Waste Disposal To the best of Seller's knowledge, no portion of the Recreational Property has ever been used by Seller as a waste storage or disposal site, and Seller is not aware of any such prior uses n No Notices Seller has received no written notice of any change contemplated in any applicable laws, ordinances or restrictions, or any judicial or administrative action, or any action by adjacent landowners, or natural or artificial conditions upon the Recreational Property which would prevent, impede, limit, or render more costly Buyer's contemplated use of the Recreational Property 16 Buyer's Representations and Warranties In consideration of Seller entering into this Agreement, and as an inducement to Seller to sell the Recreational Property to Buyer, Buyer makes the following representations and warranties, each of which is material and is being relied upon by Seller (the continued truth and accuracy of which shall constitute a condition precedent to Seller's obligations hereunder). a This Agreement and all documents executed by Buyer under this Agreement which are to be delivered to Seller are, or at the time of Close of Escrow will be, duly authorized, executed, and delivered by Buyer, and are, or at the Close of Escrow will be legal, valid, and binding obligations of Buyer, and do not, and at the Close of Escrow will not violate any provisions of any agreement orjudicial order to which Buyer is a party or to which it is subject b The representations and warranties of Buyer set forth in this Agreement shall be true on and as of the Close of Escrow as if those representations and warranties were made on and as of such time 17 Damage or Condemnation Prior to Closing Seller shall promptly notify Buyer of any knowledge by Seller of casualty to the Recreational Property or any condemnation proceeding commenced prior to the Close of Escrow If any such damage or proceeding relates to, or may result in, the loss of any material portion of the Recreational Property, Seller or Buyer may, at their option, elect either to (a) terminate this Agreement, in which event all funds deposited into Escrow by Buyer shall be returned to Buyer and neither party shall have any further rights or obligations hereunder, or (b) continue the Agreement in effect, in which event upon the Close of Escrow Buyer shall be entitled to any compensation, awards, or other payments or relief resulting from such casualty or condemnation proceeding 18 Notices All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by registered or certified mail, postage prepaid, Page 12 of 60 19252v1 / HBC 76 return receipt requested, telegraphed, delivered, or sent by telex, telecopy, or cable, and shall be deemed received upon the earlier of (a) if personally delivered, the date of delivery to the address of the person to receive such notice, (b) if mailed, four business days after the date of posting by the United States post office, (c) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (d) if given by telex or facsimile, when sent Any notice, request, demand, direction, or other communication sent by cable, telex, or facsimile must be confirmed within 48 hours by letter mailed or delivered in accordance with the foregoing The Buyer's mailing address is City of Huntington Beach Attn: City Manager 2000 Main Street, P O Box 190 Huntington Beach, CA 92648 The Seller's mailing address is Huntington Beach City School District 17011 Beach Boulevard, Suite 560 Huntington Beach, CA 92647 Attn. Assistant Superintendent, Administrative Services Notice of change of address shall be given by written notice in the manner detailed in this paragraph Rejection or other refusal to accept, or the inability to deliver because of changed address of which no notice was given, shall be deemed to constitute receipt of the notice, demand, request, or communication sent 19 Legal Fees In the event suit is brought by either party to construe, interpret and/or enforce the terms and/or provisions of this Agreement or to secure the performance hereof, each party shall bear its own attorney's fees, such that the prevailing party shall not be entitled to recover its attorney's fees from the non -prevailing party 20 Assignment Neither Party may assign, transfer or convey its rights or obligations under this Agreement without the prior written consent of the other Party, and then only if that Party's assignee assumes in writing all of that Party's obligations hereunder, provided, however, neither Party shall in any event be released from its obligations hereunder by reason of such assignment 21 Indemnification Each Party hereby agrees to indemnify, defend and hold harmless the other Party from and against any and all obligations, liabilities, claims, liens, encumbrances, losses, damages, costs and expenses, including without limitation, attorneys' fees, whether direct, contingent, or consequential, incurred by that Party relating to the Recreational Property and arising or accruing from acts, occurrences, or matters that take place on or before the Close of Escrow or resulting from any breach by the defaulting Party of its representations, warranties and covenants contained in this Agreement Page 13 of 60 19252v 1 / HBC 76 22 Brokerage Commissions Neither Party has had any contact or dealings regarding the Recreational Property, or any communication in connection with the subject matter of this transaction, through any real estate broker or other person who can claim a right to a commission or finder's fee in connection with the sale contemplated herein In the event that any broker or finder claims a commission or finder's fee based upon any contact, dealings or communication, the party through whom the broker or finder makes its claim shall be responsible for said commission or fee and all costs and expenses (including, without limitation, reasonable attorneys' fees) incurred by the other Party in defending against the same The Party through whom any other broker or finder makes a claim shall hold harmless, indemnify and defend the other Party hereto, its successors and assigns, agents, employees, officers and directors, and the Recreational Property from and against any and all obligations, liabilities, claims, demands, liens, encumbrances and losses (including, without limitation, attorneys' fees), whether direct, contingent or consequential, arising out of, based on, or incurred as a result of such claim The provisions of this Paragraph shall survive the termination of this Agreement 23 Miscellaneous a. Survival of Covenants The covenants, representations and warranties of both Buyer and Seller set forth in this Agreement shall survive the recordation of the Grant Deed and the Close of Escrow b. Required Actions of Buyer and Seller. Buyer and Seller agree to execute such instruments and documents and to diligently undertake such actions as may be required in order to consummate the purchase and sale herein contemplated, and shall use their best efforts to accomplish the Close of Escrow in accordance with the provisions hereof c Time of Essence Time is of the essence of each and every term, condition, obligation, and provision hereof d Counterparts This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. e Captions Any captions to, or headings of, the paragraphs or subparagraphs of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof f. No Obligations to Third Parties Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the Parties hereto, to any person or entity other than the Parties hereto g Exhibits and Schedules The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference Page 14 of 60 19252vI / HBC 76 h Amendment to this Agreement The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the Parties hereto i Waiver The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof J Applicable Law This Agreement shall be governed by and construed in accordance with the laws of the State of California, with the exception of definitions to be construed under Federal laws cited in Paragraph 150) k Fees and Other Expenses Except as otherwise provided herein, each of the parties shall pay its own fees and expenses in connection with this Agreement 1 Entire Agreement Except for Section 2 of the MOU, this Agreement supersedes any prior agreements, negotiations, and communications, oral or written, and contains the entire agreement between Buyer and Seller as to the subject matter hereof No subsequent agreement, representation, or promise made by either Party hereto, or by or to an employee, officer, agent or representative of either party shall be of any effect unless it is in writing and executed by the Party to be bound thereby m Successors and Assigns This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties hereto n Leases Seller warrants that there are no tenants or written or oral leases on all or any portion of the Recreational Property and Seller further agrees to hold Buyer harmless and reimburse Buyer for any and all of its losses and expenses, including relocation assistance costs, occasioned by reason of any lease of said property held by any tenant of Seller Page 15 of 60 19252vl / HBC 76 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written DATED Seller• HUNTINGTON BEACH CITY SCHOOL DISTRICT, a California public school district APPROVED AS TO FORM PARKER & COVERT LLP Douglas N. Yeoman Attorney for District DATED Buyer CITY OF HUNTINGTON BEACH A California municipal corporation Page 16 of 60 erk 19252v1 / HBC 76 EXHIBIT "A-V Legal Description of Property Page 17 of 60 19252v1 / HBC 76 LEGAL DESCRIPTION OF RECREATIONAL PROPERTY That portion of the northwest quarter and southwest quarter of Section 8, Township 6 South, Range 10 West in the Rancho Las Bolsas, described as follows - Beginning at a point on the south line of the northwest quarter of said Section 8, said point also being common to the southeast corner of Lot 66, Tract 5128 and the northeast corner of Lot 11, Tract 6003 in the City of Huntington, County of Orange, California, said point also being the Point of Beginning (POB), thence along the easterly boundary of said Tract 5128 North 1 ° 15' 10" West, 376 43' to a point located on the southerly right of way for Crailet Drive, thence along said right of way North 88°44'50" East, 15.00', thence South 1 ° 15' 10" East, 110 00' along a property line common to Lot 61 of Tract 5128, thence along the southerly boundary of Tract 5128 North 86°48'20" East, 128 71', thence North 82°12'00" East, 129 35', thence North 77°34'00" East, 66.28', thence leaving said boundary South 1°20'20" East, 336.03', thence South 47°36'14" West, 10 62', thence South 1°25' 14" East, 26.61', thence North 88°22'42" East, 48.67', thence South 57°09' 16" East, 11.60', thence North 88°34'46" East, 154 67', thence N 59°23'41" East, 10.25', thence North 88°37'33" East, 77 21', North 21°48'12" East, 50 91', thence North 61°55'22" West, 12.65', thence North 1°55'36" West, 102 57', thence North 47°49'03" East, 32 27', thence North 70°17'17" East, 68.36', thence North 88°36'01" East, 9.17', thence South 1°04'30" East, 128 96' to the north line of the said quarter section, thence North 88°55'31" East, 30 01' along the north line of the said quarter section, thence South 1°15'08" East, 267 00' to the centerline of Cynthia Drive, thence South 88°55'31" West, 764 52' along said centerline, thence North 1°15'08" West, 267 00' to the POB See Exhibit "A-2" for a plat depicting the above described land The parcel contains approximately 6 61 acres. All dimensions and areas are based on record information and can vary from measurements on the ground Page 18 of 60 Q�yOFESS !p� O S ANON < m No C26821 A ®T� O��CIV11. � T® OF cp'0 19252v1 / HBC 76 EXHIBIT "A-2" Map of Property Page 19 of 60 19252v1 / HBC 76 EXHIBIT "A-211 s CRp,11.E� pR1�E N 88°44'50" E 15.00-' 1 1°1510 E 1100 0a11` E 12935 6626 1 S N36°482(o) 12X4B- T o 11°3400 Z 1 1 4 07 - - - Cn 1 � �p6 O' i • io u'e 8 , 0 1 1 No ti7° FO �6. 1 m Q1 1 M S 1'04'30" E 128 96 w ro 1 4,�i° 1 N 88'55'31" E 30 01 N 1 1 so 1 B� SS. 1 N0PT1 LINE OF THfs$iZ°*�� $kV9 11���i OW • O�' 557° 9'16"E 1160'1�6S. 1 -- B S 1*25'14" E 26 61 ' N 88°34'46" E i cn 1 !� !Z 1 15467 ' ����� log Z l o N 88°22'42" E 48 1 ' 8°37'33" E 77 21 ' 1 m C, 1 w Recreational Proper o :E6 61 AC (Gross) 1c' NJ m 1 M 1� o - rn (S 89935'27" W PER TR 6003) 1 g S 88'55'31" W 764 52' 1 �•�--•-_•�_•__•_- •--•- CYNTHIA DRIVE �.__._- •- •--•-.� MSA and Solutions, Inc 30054 Hamilton Trail, Traiucc Cary CA9 79 Page 20 of 60 SCALE 1"=120' Cn w w m v m 0 0 19252v1 / HBC 76 EXHIBIT "B" Site Map of Park Site Improvements Page 21 of 60 19252vl / HBC 76 EXHIBIT "B" I , RESIDENTiAL PRQPFRTY MULTI -PURPOSE BLDG I WATER QUALITY BASIN I I WATERQUALITYSWALE J r.m BULLPEN 1 F t :OPERTY WALKWAYS - s w -- PgBaRTGHT_dly/AYIMPROVEMENTS I' 77 Page 22 of 60 PARKING LOT _ ATER QUALITY BASIN & SWALE CITY c,TE t.' 19252v I / HBC 76 EXHIBIT "C" City Temporary Construction Easement Page 23 of 60 19252v1 / HBC 76 TEMPORARY CONSTRUCTION EASEMENT AGREEMENT THIS TEMPORARY CONSTRUCTION EASEMENT AGREEMENT (the "Agreement") is made and entered into as of the _ day of , 2016, by and between CITY OF HUNTINGTON BEACH, a California municipal corporation ("Grantor"), and ("Grantee"). A. Grantor is the owner of that certain approximate five (5) acre piece of real property commonly referred to as LeBard Park, more particularly depicted on Schedule 1 attached hereto and by this reference made a part hereof (referred to as "Grantor Property" or "City Park") B. Grantee is the owner of that certain approximate three and fifty-three hundredths (3 53) acre piece real property located adjacent to the Grantor Property, more particularly described on Schedule 2 and depicted on Schedule 3 attached hereto and by this reference made a part hereof (the "Residential Property"). C Grantee, as part of its development of the Residential Property, is required to construct certain improvements to the Grantor Property (collectively, the "City Park Site Improvements") D Grantor desires to grant to Grantee, and Grantee desires to receive from Grantor, in accordance with the terms and provisions set forth herein, a temporary easement over and upon the Grantor Property, to enable Grantee to construct the City Park Site Improvements. NOW, THEREFORE, Grantor hereby agrees as follows 1 Grant of Easement Grantor hereby grants to Grantee, subject to the terms and provisions set forth herein, a temporary easement over and upon the Grantor Property for the following purposes. (a) Improvements to half section of a portion of Craimer Lane and Warwick Drive to include the curb and gutter which will be removed and replaced These improvements include the driveway for the Residential Property and a new driveway into the City Park parking lot and new landscaped parkways with curb separated sidewalks (0 4 acres) (b) The existing City Park parking lot will be removed, replaced and restriped to provide the appropriate ADA accessible parking spaces and to surface drain to the water quality basin being constructed by Buyer (0 4 acres) Page 24 of 60 19252v1 / HBC 76 (c) Grading and construction of ADA walkways and landscape improvements to the existing City Park (0 4 acres) (d) Grading and construction of a water quality basin and Swale to treat run-off from the City Park parking lot (0.1 acres) 2 Term The term of this Temporary Construction Easement Agreement shall commence on the date hereof and shall terminate on the earlier to occur of (1) the date on which the City Park Site Improvements have been satisfactorily completed and accepted by Grantor, and (n) the date that is twelve (12) months after the recordation of Final Map 17801 for the Residential Property 3 Liens Grantee shall not suffer or permit to be enforced against the Grantor Property, or any part thereof, any mechanics', materialmen's, contractors' or subcontractors' liens or any claim for damage arising from or related to Grantee's activities on Grantor's Property 4 Insurance. In addition to the workers' compensation and employer's liability insurance and Grantee's covenant to defend, hold harmless and indemnify Grantor, Grantee shall obtain and furnish to City, a policy of general public liability insurance, including motor vehicle coverage covering Grantee's activities on Grantor's Property This policy shall indemnify Grantee, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out of or in connection with Grantee's activities on Grantor's Property, and shall provide coverage in not less than the following amount combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence. If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for Grantee's activities on Grantor's Property. This policy shall name City, its officers, elected or appointed officials, employees, agents, and volunteers (the "Additionally Insured Parties") as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to Grantee's activities on Grantor's Property shall be deemed excess coverage and that Grantee's insurance shall be primary and non-contributory with any other valid and collectible insurance or self-insurance available to the Additionally Insured Parties Any available insurance proceeds in excess of the minimum coverage amount specified herein shall be available to the Additionally Insured Parties. All coverage available to Grantee shall also be available to the Additionally Insured Parties Under no circumstances shall said above -mentioned insurance contain a self -insured retention without the express written consent of City, however an insurance policy "deductible" of $5,000 is permitted Page 25 of 60 19252v1 / HBC 76 Grantee shall be responsible for causing all subcontractors to maintain the same types and limits of insurance coverage as that required of Grantee by this Agreement Prior to commencing any activities on Grantor's Property, Grantee shall furnish to Grantor certificates of insurance subject to approval of the City Attorney evidencing the foregoing insurance coverage as required by this Agreement; the certificates shall. (a) provide the name and policy number of each carrier and policy; (b) state that the policy is currently in force, and (c) promise to provide that such policies will not be canceled or modified without thirty (30) days' prior written notice of Grantor. Grantee shall maintain the foregoing insurance coverage in force at all times while performing any activities on Grantor's Property The requirement for carrying the foregoing insurance coverage shall not derogate from the Grantor's defense, hold harmless and indemnification obligations as set forth under this Agreement Grantor or its representatives shall at all times have the right to demand the original or a copy of all policies of insurance Grantee shall pay, in a prompt and timely manner, the premiums on all insurance hereinabove required Grantee shall provide a separate copy of the additional insured endorsement to each of Grantee's insurance policies, naming the Additionally Insured Parties as Additional Insureds, to the City Attorney for approval prior to performing any activities on Grantor's Property A statement on an insurance certificate will not be accepted in lieu of the actual endorsement. Grantee shall require all subcontractors to name Grantor, its officers, employees and agents, and the Additionally Insured Parties as Additional Insureds on all subcontractor insurance policies using ISO form number CG 20 38 04 13 or coverage at least as broad. Grantee shall verify that every subcontractor policy endorsement complies with the requirements set forth herein 5 Indemnity Grantee hereby agrees to defend, indemnify and hold harmless Grantor and its officers, employees and agents from any actions, suits, liens, claims, damages, expenses, losses and liabilities (including reasonable attorneys' fees and expenses) ( collectively, "Claims") arising from or related to Grantee's use of Grantor's Property pursuant to the terms of this Agreement, provided, however, that the foregoing Page 26 of 60 19252v1 / HBC 76 indemnity shall not apply to any Claims arising from or related to the acts or omissions of Grantor on or with respect to Grantor's Property 6. Notices Any approval, disapproval, demand, document or other notice ("notice") which any party may desire to give to any other party shall be in writing and shall be delivered by hand delivery, by overnight courier, or by U.S. certified or registered mail (postage prepaid) and shall be deemed received when receipted for at the addressee's place of business (in the case of hand delivery), on the date of delivery confirmed by the overnight courier service (in the case of overnight courier delivery), and two (2) days after being posted with the U S. mail (in the case of certified or registered mail delivery). All such notices shall be delivered to the following addresses (or at any other address as a party may later designate): If to Grantor City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Attn• City Manager If to Grantee 7. Governing Law. The laws of the State of California shall govern the validity, enforcement, and interpretation of this Agreement. 8 Modifications, Waiver. Except as otherwise provided herein, this Agreement may be amended or modified, or any of the terms hereof waived, except by a written instrument executed by the party against whom enforcement of the modification or waiver is sought 9 Further Acts In addition to the acts recited in this Agreement to be performed by Grantor and Grantee, Grantor and Grantee agree to perform or cause to be performed any and all such further acts as may be reasonably necessary to consummate the transactions contemplated hereby Page 27 of 60 19252vI / HBC 76 IN WITNESS WHEREOF, Grantor and Grantee have executed this Agreement as of the date set forth above. CITY OF HUNTINGTON BEACH By Name Its GRANTEE: By - Name Its By Name - Its. Page 28 of 60 ]9252v] / HBC 76 SCHEDULEI SITE MAP OF GRANTOR PROPERTY Page 29 of 60 19252v 1 / HBC 76 Page 30 of 60 19252vI / HBC 76 SCHEDULE2 DESCRIPTION OF RESIDENTIAL PROPERTY Page 31 of 60 19252v1 / HBC 76 LEGAL DESCRIPTION OF RESIDENTIAL PROPERTY That portion of the northwest quarter and southwest quarter of Section 8, Township 6 South, Range 10 West in the Rancho Las Bolsas, described as follows: Beginning at the southeasterly corner of Lot 50 of Tract 5128, City of Huntington, County of Orange, California (Bk 211, pg 23) , said point also being located on the westerly right of way for Craimer Lane and the Point of Beginning (POB), thence along the southerly boundary of said Tract 5128 South 76° 13' 49" West, 122 76', thence South 69°34'26" West, 127.32', thence South 72°56'00" West, 129 35', thence South 77°34'00" West, 63 09', thence leaving said boundary South 1°20'20" East, 336.03', thence South 47°36' 14" West, 10.62', thence South 1 °25' 14" East, 26 61', thence North 88°22'42" East, 48 67', thence South 57°09'16" East, 11 60', thence North 88°34'46" East, 154.67', thence N 59°23'41" East, 10 25', thence North 88°37'33" East, 77.21', North 21 °48' 12" East, 50 91', thence North 61 °55'22" West, 12 65', thence North 1°55'36" West, 102.57', thence North 47°49'03" East, 3227', thence North 70°17'17" East, 68 36', thence North 88°36'01" East, 9 17', thence North 1°04'30" West, 76.10' to a point on the westerly right of way for Craimer Lane said point also being the beginning of a tangent curve concave southeasterly with a radial bearing of North 88°55'30" East, 820.00', thence northerly along said curve 214.09' to the POB ending with a radial bearing of North 76°06'58" West The parcel contains approximately 3 53 acres All dimensions and areas are based on record information and can vary from measurements on the ground Page 32 of 60 rNo OFESSIN S q/Vco0C26 8211 s� q� CIVIC- o���Q R of CAI-'F 19252vl / HBC 76 SCHEDULE3 SITE MAP OF RESIDENTIAL PROPERTY Page 33 of 60 19252v1 / HBC 76 SCHEDULE 3 CRp1LE! pFtNE 6�p� •�� �� N 16 T Angle=145732" I R=820 00' ! L=214 09' i - Resdental Property 3 53AC N88"55'30"E N c W 761'0 (390 O - w /ir46, de, �c Ns7, ??�, ! NORTH LINE OFTHE5v,)V7$* 'i �yT%00W 509� 12sS22+ S57-°09'16-E-1-1-60-- --- - ~ - -- S 1"25'14" E 2661 ' N 88"34'46" E 154 67 ' N 88"22'42" E 48 ! 37'33" E 77 21 ' _ CYNI-HIAL DRIVE 1 — MSA Land Solunona Inc 9i�Y,;.4 Flar ,its. —1 i r.— C— , Cr. Kt Page 34 of 60 SCALEI"=120' 19252v1 / HBC 76 EXHIBIT "D" District Temporary Construction Easement Agreement Page 35 of 60 19252vl / HBC 76 y TEMPORARY CONSTRUCTION EASEMENT AGREEMENT THIS TEMPORARY CONSTRUCTION EASEMENT AGREEMENT (the "Agreement") is made and entered into as of the day of , 2016, by and between HUNTINGTON BEACH CITY SCHOOL DISTRICT, a California public school district ("Grantor" or "District"), and ("Grantee") A Grantor is the owner of that certain approximate six and sixty-one hundredths (6.61) acre (gross) portion of the District's former Education Center, commonly referred to as the "LeBard Property") as more particularly described in Exhibit "A-1" and depicted on Exhibit "A-2" attached hereto and by this reference made a part hereof (referred to as "Grantor Property" or "Recreational Property"). B. Grantee is the owner of the remaining approximate three and fifty-three hundredths (3 53) acre portion of the LeBard Property located adjacent to the Grantor Property, more particularly described on Exhibit "B-1" and depicted on Exhibit "B-2" attached hereto and by this reference made a part hereof (the "Residential Property"). C Grantee, as part of its development of the Residential Property, is required to construct certain improvements to the Residential Property and Grantor Property (collectively, the "LeBard Property Park Site Improvements"), as well as to the adjacent City Park and public right-of-way The LeBard Property Park Site Improvements together with the required improvements to the City Park and public right-of-way shall collectively be referred to as the "Park Site Improvements". D. Upon Grantee completing the construction of the Park Site Improvements, escrow for the sale of the Recreational Property between the District and City shall close E. Grantor desires to grant to Grantee, and Grantee desires to receive from Grantor, in accordance with the terms and provisions set forth herein, a temporary easement over and upon the Grantor Property, to enable Grantee to construct the LeBard Park Site Improvements NOW, THEREFORE, Grantor hereby agrees as follows. 1 Grant of Easement. Grantor hereby grants to Grantee, subject to the terms and provisions set forth herein, a temporary easement over and upon the Grantor Property to perform the following improvements as generally depicted on the site map attached as Exhibit "C" and by this reference made a part hereof Page 36 of 60 19252vl / HBC 76 (a) Construction of a water quality basin, drainage swale and "under sidewalk drain" on the southerly portion of the Residential Property and a portion of the Recreational Property to serve the water quality for Residential Property. (b) Construction of restroom/concession/storage building (1,500 sf) (the "Multi -Purpose Building") in support of use of sports fields on Recreational Property (c) Construction of paved area surrounding the Multi -Purpose Building 2,500 sf) on Recreational Property (d) Construction of a portion of proposed parking lot (+/- 450 sf) on Recreational Property (e) Construction of proposed drainage swale (+/- 0 3 acres) on Recreational Property (f) Relocation of bullpen (+/- 1,000 sf) on Recreational Property (g) Construction of a portion of water quality basin and swale (+/- 350 sf) on Recreational Property. (h) Replacement and upgrade of the existing walkways within the sport field areas to ADA accessible walkways and the relocation of bleachers (+/- 0 5 acres) on Recreational Property ONLY during the August through February off-season for the Sea View Little League when the sports fields are not being used 2 Term. The term of this Temporary Construction Easement Agreement shall commence on the date hereof and shall terminate on the earlier to occur of (i) the date on which the LeBard Park Site Improvements have been satisfactorily completed and accepted by Grantor, and (11) the date that is twelve (12) months after the recordation of Final Map 17801 for the Residential Property. 3, Liens Grantee shall not suffer or permit to be enforced against the Grantor Property, or any part thereof, any mechanics', materialmen's, contractors' or subcontractors' liens or any claim for damage arising from or related to Grantee's activities on Grantor's Property 4 Insurance In addition to the workers' compensation and employer's liability insurance and Grantee's covenant to defend, hold harmless and indemnify Grantor, Grantee shall obtain and furnish to District, a policy of general public liability insurance, including motor vehicle coverage covering Grantee's activities on Grantor's Property. This policy shall indemnify Grantee, its officers, employees and agents while acting within the scope of their duties, against any and all claims arising out of or in Page 37 of 60 19252v 1 / HBC 76 connection with Grantee's activities on Grantor's Property, and shall provide coverage in not less than the following amount. combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of One Million Dollars ($1,000,000) per occurrence If coverage is provided under a form which includes a designated general aggregate limit, the aggregate limit must be no less than One Million Dollars ($1,000,000) for Grantee's activities on Grantor's Property. This policy shall name District, its officers, elected or appointed officials, employees, agents, and volunteers (the "Additionally Insured Parties") as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to Grantee's activities on Grantor's Property shall be deemed excess coverage and that Grantee's insurance shall be primary and non-contributory with any other valid and collectible insurance or self-insurance available to the Additionally Insured Parties. Any available insurance proceeds in excess of the minimum coverage amount specified herein shall be available to the Additionally Insured Parties All coverage available to Grantee shall also be available to the Additionally Insured Parties Under no circumstances shall said above -mentioned insurance contain a self -insured retention without the express written consent of District; however an insurance policy "deductible" of $5,000 is permitted Grantee shall be responsible for causing all subcontractors to maintain the same types and limits of insurance coverage as that required of Grantee by this Agreement Prior to commencing any activities on Grantor's Property, Grantee shall furnish to Grantor certificates of insurance subject to approval of the District evidencing the foregoing insurance coverage as required by this Agreement; the certificates shall* (a) provide the name and policy number of each carrier and policy, (b) state that the policy is currently in force, and (c) promise to provide that such policies will not be canceled or modified without thirty (30) days' prior written notice of Grantor Grantee shall maintain the foregoing insurance coverage in force at all times while performing any activities on Grantor's Property. The requirement for carrying the foregoing insurance coverage shall not derogate from the Grantor's defense, hold harmless and indemnification obligations as set forth under this Agreement Grantor or its representatives shall at all times have the right to demand the original or a copy of all policies of insurance Grantee shall pay, in a prompt and timely manner, the premiums on all insurance heremabove required. Page 38 of 60 19252v 1 / HBC 76 Grantee shall provide a separate copy of the additional insured endorsement to each of Grantee's insurance policies, naming the Additionally Insured Parties as Additional Insureds, to the District for approval prior to performing any activities on Grantor's Property. A statement on an insurance certificate will not be accepted in lieu of the actual endorsement Grantee shall require all subcontractors to name Grantor, its officers, employees and agents, and the Additionally Insured Parties as Additional Insureds on all subcontractor insurance policies using ISO form number CG 20 38 04 13 or coverage at least as broad Grantee shall verify that every subcontractor policy endorsement complies with the requirements set forth herein. 5. Indemnity Grantee hereby agrees to defend, indemnify and hold harmless Grantor and its officers, employees and agents from any actions, suits, liens, claims, damages, expenses, losses and liabilities (including reasonable attorneys' fees and expenses) (collectively, "Claims") arising from or related to Grantee's use of Grantor's Property pursuant to the terms of this Agreement, provided, however, that the foregoing indemnity shall not apply to any Claims arising from or related to the acts or omissions of Grantor on or with respect to Grantor's Property 6 Notices Any approval, disapproval, demand, document or other notice ("notice") which any party may desire to give to any other party shall be in writing and shall be delivered by hand delivery, by overnight courier, or by U.S. certified or registered mail (postage prepaid) and shall be deemed received when receipted for at the addressee's place of business (in the case of hand delivery), on the date of delivery confirmed by the overnight courier service (in the case of overnight courier delivery), and two (2) days after being posted with the U S. mail (in the case of certified or registered mail delivery). All such notices shall be delivered to the following addresses (or at any other address as a party may later designate) If to Grantor Huntington Beach City School District 17011 Beach Boulevard, Suite 560 Huntington Beach, California 92647 Attn: Assistant Superintendent, Administrative Services If to Grantee Attn Page 39 of 60 19252v 1 / HBC 76 7 Governing. The laws of the State of California shall govern the validity, enforcement, and interpretation of this Agreement. 8 Modifications, Waiver Except as otherwise provided herein, this Agreement may be amended or modified, or any of the terms hereof waived, except by a written instrument executed by the party against whom enforcement of the modification or waiver is sought 9 Further Acts In addition to the acts recited in this Agreement to be performed by Grantor and Grantee, Grantor and Grantee agree to perform or cause to be performed any and all such further acts as may be reasonably necessary to consummate the transactions contemplated hereby IN WITNESS WHEREOF, Grantor and Grantee have executed this Agreement as of the date set forth above. GRANTOR: HUNTINGTON BEACH CITY SCHOOL DISTRICT By- _ Name Its GRANTEE: By Name. Its _ By Name: Its Page 40 of 60 ] 9252v 1 / HBC 76 EXHIBIT "A-1" DESCRIPTION OF RECREATIONAL, PROPERTY Page 41 of 60 19252v1 / HBC 76 LEGAL DESCRIPTION OF RECREATIONAL PROPERTY That portion of the northwest quarter and southwest quarter of Section 8, Township 6 South, Range 10 West in the Rancho Las Bolsas, described as follows Beginning at a point on the south line of the northwest quarter of said Section 8, said point also being common to the southeast corner of Lot 66, Tract 5128 and the northeast corner of Lot 11, Tract 6003 in the City of Huntington, County of Orange, California, said point also being the Point of Beginning (POB), thence along the easterly boundary of said Tract 5128 North 1 ° 15' 10" West, 376 43' to a point located on the southerly right of way for Crailet Drive, thence along said right of way North 88°44'50" East, 15.00', thence South 1°15'10" East, 110.00' along a property line common to Lot 61 of Tract 5128, thence along the southerly boundary of Tract 5128 North 86°48'20" East, 128.71', thence North 82112'00" East, 129 35', thence North 77°34'00" East, 66 28', thence leaving said boundary South 1°20'20" East, 336.03', thence South 47°36'14" West, 10 62', thence South 1°25'14" East, 26 61', thence North 88°22'42" East, 48 67', thence South 57°09' 16" East, 11 60', thence North 88°34'46" East, 154 67', thence N 59°23'41" East, 10 25', thence North 88°37'33" East, 77 21', North 21°48'12" East, 50 91', thence North 61055'22" West, 12 65', thence North 1055'36" West, 102 57', thence North 47049'03" East, 32.27', thence North 70017'17" East, 68.36', thence North 88036'01" East, 9 17', thence South 1004'30" East, 128 96' to the north line of the said quarter section, thence North 88055'31" East, 30 01' along the north line of the said quarter section, thence South 1 ° 15' 08" East, 267 00' to the centerline of Cynthia Drive, thence South 88055'31" West, 764.52' along said centerline, thence North 1015'08" West, 267 00' to the POB. See Exhibit "A-2" for a plat depicting the above described land. The parcel contains approximately 6 61 acres All dimensions and areas are based on record information and can vary from measurements on the ground Page 42 of 60 PROFESSION, �p S ANON F CO � m No C26821 Q sT� q cl V l - 0��� F CF CAL�� 19252v I / HBC 76 EXHIBIT "A-2" SITE MAP OF RECREATIONAL PROPERTY Page 43 of 60 ] 9252v] / HBC 76 EXHIBIT "A-211 GRP11.E1 pRNE ._ N 88°44'50" E 15 00' 1 1.1510 110p0° 1A " S 48 0"E 12a 8212p0 E 129TT00 E 6626 N g6°N —•� 1 4, '�, 1 cn F � i o tip°LO v 1 W 1 C.0 �2 ° 1p2s, ��� 1 S 1 °04'$0" E 128 96 ' N 89'5531" E 30 01' i Aso i 'V 610 1 NOP� jl LINE OF THL t���L��,11�i 10W , S57°09'16"E 1160?—�_ —c;--- -� B— S 1 °25'14" E 26 61 ' N 88°34'46" E ; 65 cn w 1 , IZ 1 15467' Ic>n m I o N 88°2242" E 48 _ _ — _ ° _ _ °Z m i w 3S°°L3'$�' i`•'rd`2 8037'33" E 77 21 ' m I.i 02 1 `° Recreational Proper y o N I m 6 61 AC (Gross) i- w �1x 1 00 X (S 8993527" W PER TR. 6003) i t o S 88°5531" W 764 52' I_ _ 1 CYNTHIA DRIVE _F MSA Land Solutions, Inc >0aS4Ham0tonTrai1 Trc,u�Canyon CA9267y Page 44 of 60 SCALEI"=120' 19252v 1 / HBC 76 EXHIBIT "B-1" DECRIPTI®N OF RESIDENTIAL, PROPERTY Page 45 of 60 19252v1 / HBC 76 LEGAL DESCRIPTION OF RESIDENTIAL PROPERTY That portion of the northwest quarter and southwest quarter of Section 8, Township 6 South, Range 10 West in the Rancho Las Bolsas, described as follows Beginning at the southeasterly corner of Lot 50 of Tract 5128, City of Huntington, County of Orange, California (Bk 211, pg 23) , said point also being located on the westerly right of way for Craimer Lane and the Point of Beginning (POB), thence along the southerly boundary of said Tract 5128 South 76°13'49" West, 122 76', thence South 69°34'26" West, 127 32', thence South 72°56'00" West, 129 35', thence South 77°34'00" West, 63 09', thence leaving said boundary South 1°20'20" East, 336.03', thence South 47°36' 14" West, 10 62', thence South 1 °25' 14" East, 26 61', thence North 88°22'42" East, 48 67', thence South 57°09' 16" East, 11 60', thence North 88°34'46" East, 154 67', thence N 59°23'41" East, 10.25', thence North 88°37'33" East, 77.21', North 21°48' 12" East, 50.91', thence North 61°55'22" West, 12 65', thence North 1°55'36" West, 102.57', thence North 47°49'03" East, 32.27', thence North 70°17'17" East, 68 36', thence North 88°36'01" East, 9 17', thence North 1°04'30" West, 76 10' to a point on the westerly right of way for Craimer Lane said point also being the beginning of a tangent curve concave southeasterly with a radial bearing of North 88055'30" East, 820 00', thence northerly along said curve 214 09' to the POB ending with a radial bearing of North 76006'58" West The parcel contains approximately 3.53 acres. All dimensions and areas are based on record information and can vary from measurements on the ground Page 46 of 60 eof Ess /' N ���� S A OFRS0�2G� ( `s 2 m m No C26821 A � l OF CAO 19252v1 / HBC 76 EXHIBIT "B-2" SITE MAP OF RESIDENTIAL PROPERTY Page 47 of 60 19252v 1 / HBC 76 EXHIBIT "B-2" cv-0-E1 ORNE p°J 58 vv V' 5 I Angle=145732" R=820 00' L=214 09' -' Resdental PropErty f-------- - - 3 53AC N88°55'30"E - - cn W 76110 o rn N 0 i w 70 ?S,>Fy' ti ?� N67s ?1. NORTH LINE OFTHE�'i�f $&3p *TONOW �`97 _ --5 5 7°09'16° E 1 6 -1-0' S 1 *25'14" E 26 61 ' N 88"34'46" E 154 67 ' N 88"22'42" E 48 I j 37-33" E 77 21 ' I I CYNTHIA_DMVE- - � — - SCALE I"=120' MSA ."Land SolaTlons Inc it 54Harr,ltv,Trml T,dc , Cxrr,al CiLKt,7� Page 48 of 60 19252v1 / HBC 76 EXHIBIT "C" SITE MAP OF PARK SITE IMPROVEMENTS Page 49 of 60 19252v1 / HBC 76 EXHIBIT "C" 1 1 � �� 1- � RESIDENTIAL PUBLIC RIGHT OFWAYIMPROVEMEN_TS PROPERTY MULTI -PURPOSE BLDG 1 WATERQUAIITY BASIN ARKINGLOT r WATERQUAIITY S WALE WATERQUALITY BASIN &SWALE RECREATION L CITY PARK i � BULLPEN PROPERTY WALKWAY SITE rr i i IV - Page 50 of 60 19252v1 / HBC 76 EXHIBIT "E" Transferor's Certification of Non -Foreign Status Page 51 of 60 19252vl / HBC 76 TRANSFEROR'S CERTIFICATION OF NON -FOREIGN STATUS To inform City of Huntington Beach ("Transferee"), that withholding of tax under Section 1445 of the Internal Revenue Code of 1986, as amended ("Code"), will not be required upon the transfer of certain real property to the Transferee by Huntington Beach City School District ("Transferor"), the undersigned hereby certifies the following on behalf of the Transferor. 1 The Transferor is not a foreign corporation, foreign partnership, foreign trust, foreign estate or foreign person (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder), 2 The Transferor's U S employer or tax (social security) identification number is 95-6001643 The Transferor understands that this Certification may be disclosed to the Internal Revenue Service by the Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both The Transferor understands that the Transferee is relying on this Certification in determining whether withholding is required upon said transfer The Transferor hereby agrees to indemnify, defend and hold the Transferee harmless from and against any and all obligations, liabilities, claims, losses, actions, causes of action, rights, demands, damages, costs and expenses of every kind, nature or character whatsoever (including, without limitation, reasonable attorneys' fees and court costs) incurred by the Transferee as a result of. (i) the Transferor's failure to pay U S Federal income tax which the Transferor is required to pay under applicable U.S law, or (11) any false or misleading statement contained herein Under penalty of perjury I declare that I have examined this Certification and to the best of my knowledge and belief it is true and correct and complete, and I further declare that I have authority to sign this document on behalf of the Transferor. Date , 201 TRANSFEROR. Page 52 of 60 19252v1 / HBC 76 EXHIBIT "F" Grant Deed and Agreement Page 53 of 60 19252v1 / HBC 76 5 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO• Attention• MAIL TAX STATEMENT TO. SAME AS ABOVE (Space above Line for Recorder's Use Only) GRANT DEED AND AGREEMENT THIS GRANT DEED AND AGREEMENT ("Agreement") is made and entered into as of the day of , 2016, by and between HUNTINGTON BEACH CITY SCHOOL DISTRICT ("Grantor"), and CITY OF HUNTINGTON BEACH ("Grantee") In consideration of the mutual promises contained in this Agreement, the parties hereto agree as follows. 1 Grant For a valuable consideration, receipt of which is hereby acknowledged, Grantor hereby grants to Grantee that certain real property in fee simple absolute situated in the City of Huntington Beach, County of Orange, State of California, described on Schedule 1 and depicted on Schedule 2 attached hereto and by this reference incorporated herein (the "Property") SUBJECT TO: 2 Non -delinquent general and special real property taxes and assessments for the current fiscal year, and supplemental assessments accruing after the recordation of this Agreement, 3 Covenants, conditions, restrictions, easements, reservations, rights and rights -of -way, dedications and offers of dedication, and all other matters of record, 4 Successors and Assigns This Agreement shall be binding upon and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. Page 54 of 60 19252v 1 / HBC 76 5 Time of Essence Time is of the essence of each and every term, condition, obligation and provision hereof 6 Provisions Severable. In the event any portion of this Agreement shall be declared by any court of competent jurisdiction to be invalid, illegal or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining parts hereof shall remain in full force and effect, as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 7. Counterparts This Deed may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written Huntington Beach City School District By - Its "Grantor" City of Huntington Beach By Its By Its "Grantee" Page 55 of 60 19252vl / HBC 76 STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) On , 2016, before me, the undersigned, a Notary Public in and for said County and State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the came in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument WITNESS my hand and official seal Notary Public STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) On , 201_, before me, the undersigned, a Notary Public in and for said County and State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the came in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument. WITNESS my hand and official seal Notary Public Page 56 of 60 19252v1 / HBC 76 SCHEDULE I LEGAL DESCRIPTION OF PROPERTY Page 57 of 60 19252v1 / HBC 76 LEGAL DESCRIPTION OF RECREATIONAL PROPERTY That portion of the northwest quarter and southwest quarter of Section 8, Township 6 South, Range 10 West in the Rancho Las Bolsas, described as follows. Beginning at a point on the south line of the northwest quarter of said Section 8, said point also being common to the southeast corner of Lot 66, Tract 5128 and the northeast corner of Lot 11, Tract 6003 in the City of Huntington, County of Orange, California, said point also being the Point of Beginning (POB), thence along the easterly boundary of said Tract 5128 North 1 ° 15' 10" West, 376 43' to a point located on the southerly right of way for Crailet Drive, thence along said right of way North 88°44'50" East, 15 00', thence South 1 ° 15' 10" East, 110.00' along a property line common to Lot 61 of Tract 5128, thence along the southerly boundary of Tract 5128 North 86148'20" East, 128.71', thence North 82°12'00" East, 129 35', thence North 77°34'00" East, 66 28', thence leaving said boundary South 1°20'20" East, 336.03', thence South 47036'14" West, 10.62', thence South 1025' 14" East, 26 61', thence North 88°22'42" East, 48 67', thence South 57°09' 16" East, 11 60', thence North 88134'46" East, 154 67', thence N 59°23'41" East, 10 25', thence North 88°37'33" East, 77 21', North 21°48' 12" East, 50 91', thence North 61°55'22" West, 12 65', thence North 1°55'36" West, 102.57', thence North 47°49'03" East, 32 27', thence North 70117' 17" East, 68 36', thence North 88°36'01" East, 9 17', thence South 1°04'30" East, 128 96' to the north line of the said quarter section, thence North 88055'31" East, 30 01' along the north line of the said quarter section, thence South 1015'08" East, 267 00' to the centerline of Cynthia Drive, thence South 88055'31" West, 764.52' along said centerline, thence North 1015'08" West, 267 00' to the POB See Exhibit "A-2" for a plat depicting the above described land The parcel contains approximately 6 61 acres All dimensions and areas are based on record information and can vary from measurements on the ground Page 58 of 60 rN.C268'210� FESS� AND < 0 A Q' S CIVIC- OF 19252v I / HBC 76 SCHEDULE2 PLAT OF PROPERTY Page 59 of 60 19252v1 / HBC 76 N 88°44'50" E 15 00' - 129����„E �26` Q 'Y O���Jo v� �A F Vol F� -_ N A�,' " 1 '96. m 6�Zo 1 10 1 j W S 1°04'30" E 12896' f 1 1 I N 88.5631" E 30 01 ' 1 NORTH LINE OF THE SW 114 SEC 8, T 6S R 10W • i \ 61150- �s��� ( S 47°36'14" W 10 62' 72 S�2•� in cg i z z l o w° j S 1°25'1 W E 26 61 ' 1 N 88°34'446" E_ .^— --•y _ _• 154 67' �� N 88°22'42" E 48 67 ' 11 a, 00 W m W N 59°23'41" E 10 25' N g8°37'33" E 77 21 ' Im n on !j E Ino m rn i ]mp "I� 10 MO $ m g I (S 89035'2T' W PER TR 6003) S 88°5631"W 764 52' � MSA and Solutions Inc ?CC�Hamdt_�iaN Tra'�Jct ttt+Yon Gs9? �9 Page 60 of 60 19252vl / HBC 76 ATTACHMENT #2 Dept ID PL 15-013 Page 1 of 7 Meeting Date 7/6/2015 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING 7/6/2015 DATE: SUBMITTED Honorable Mayor and City Council Members TO: SUBMITTED Fred A. Wilson, City Manager BY: PREPARED Scott Hess, AICP, Director of Planning and Building BY: SUBJECT: Approve Mitigated Negative Declaration No. 12-008, Resolution No. 2015- 30 approving General Plan Amendment No. 12-002, and Ordinance No. 4065 approving Zoning Map Amendment No 12-001 (LeBard Park and School Site Land Use Chanqe to Residential — 20451 Craimer Lane) Statement of Issue: Transmitted for Council consideration is Mitigated Negative Declaration No 12-008, General Plan Amendment No. 12-002 and Zoning Map Amendment No. 12-001; and a request by the Huntington Beach City School District (HBCSD) to amend the General Plan land use and Zoning designations on the closed LeBard School site from Public (P) to Residential Low Density (RL) and Open Space — Park (OS-P)/ Open Space — Park and Recreation (OS -PR). The requested amendments would ,allow the HBCSD to re -purpose the approximately 10-acre surplus LeBard School site for public recreation and residential uses The Planning Commission and staff are recommending approval. Financial Impact Not Applicable Recommended Action: PLANNING COMMISSION AND STAFF RECOMMENDATION Motion to: A) Approve Mitigated Negative Declaration No. 12-008 with findings for approval, and, B) Approve General Plan Amendment No. 12-002 by adopting City Council Resolution No. 2015-30, "A Resolution of the City Council of the City of Huntington Beach Approving General Plan Amendment No. 12-002;" and, C) Approve Zoning Map Amendment No. 12-001 with findings for approval and approve for introduction Ordinance No. 4065, "An Ordinance of the City of Huntington Beach Item 11. - 63 HB -472- Dept ID PL 15-013 Page 2 of 7 Meeting Date 7/6/2015 Amending District Map 8 (Sectional Map 8-6-10) of the Huntington Beach Zoning and Subdivision Ordinance to Rezone the Real Property At LeBard School Located at 20451 Craimer Lane from Public/Semi-Public to Residential Low Density (RL) and Open Space - Park and Recreation (OS -PR) (Zoning Map Amendment No. 2012-001)." Alternative Action(s). The City Council may make the following alternative motion(s) 1. Deny Mitigated Negative Declaration No. 12-008, General Plan Amendment No. 12-002 and Zoning Map Amendment No. 12-001, with findings for denial. 2 Continue Mitigated Negative Declaration No 12-008, General Plan Amendment No 12- 002 and Zoning Map Amendment No 12-001 and direct staff accordingly Analysis A PROJECT PROPOSAL: Applicant/ Property Owner LeBard School site: Huntington Beach City School District, 20451 Craimer Lane, Huntington Beach, CA 92646; LeBard Park site: City of Huntington Beach Location: 20451 and 20461 Craimer Lane, Huntington Beach, CA 92646 (closed LeBard School site and LeBard Park) Mitigated Negative Declaration No 12-008 represents a request to analyze the potential environmental impacts associated with the project pursuant to Chapter 240 — Environmental Review of the Huntington Beach Zoning and Subdivision Ordinance (HBZSO) and the California Environmental Quality Act (CEQA). General Plan Amendment No. 12-002 represents a request to amend the existing General Plan land use designation for the LeBard Elementary School portion of the project site from Public (underlying Residential Low Density) (P(RL)) to Residential Low Density — 7 units per acre (RL-7) on 3.2 acres and Open Space — Park (OS-P) on 6.5 acres where the sports fields are currently developed. Zoning Map Amendment No. 12-001 represents a request to amend the existing zoning designation for the LeBard Elementary School portion of the project site from Public - Semipublic (PS) to Residential Low Density (RL) on 3 2 acres and Open Space — Parks and Recreation (OS -PR) on 6 5 acres to be consistent with the proposed General Plan Land Use Element designation pursuant to Chapter 247 — Amendments of the HBZSO. The proposed MND, GPA, and ZMA are requested to allow the HBCSD to re -purpose the approximately 10-acre surplus LeBard School site for public recreation and residential uses. It should be noted that the proposed project also included Tentative Tract Map No 17801, Conditional Use Permit No. 12-039 and Variance No. 15-001 to permit construction HB -473- Item 11. - 64 Dept ID PL 15-013 Page 3 of 7 Meeting Date 7/6/2015 of a single-family residential development on the approximately 3 2 acres to be designated RL as well as improvements within LeBard Park. The Planning Commission approved the development entitlements at their meeting on June 9, 2015 No appeals of the Planning Commission's action on the development entitlements were filed within the 10 day appeal period that ended on June 19, 2015 These entitlements were conditioned so they do not become effective until the GPA and ZMA have been approved and in effect. Project Description The City would acquire 6.5 acres of the LeBard Elementary School site that are currently developed with sports fields as an addition to the adjoining approximately three -acre developed portion of LeBard Park. Improvements within the sports fields and existing park area would include a new concession/restroom/storage building, relocation of bleachers and bullpens, and accessibility upgrades. The HBCSD had proposed an expansion of the existing parking lot at LeBard Park, but the Planning Commission eliminated this aspect of the project in its approval of the associated development entitlements Other improvements include grading and drainage within the park and sports fields area and a new passive recreational area The existing amenities in LeBard Park would remain. The HBCSD also proposes a 15-lot, low -density single-family residential subdivision in the 3 2-acre area where the original school building and pavement/parking area are currently developed Residential lot sizes would average approximately 7,216 square feet in total area Associated Infrastructure would also be constructed, to include a public street with access from Craimer Lane The residential lots would be sold to a private home builder for construction of the homes in the future. Because approximately half of the proposed residential lots would not meet the minimum 60-foot lot width required in the RL zoning district, the HBCSD is proposing a PUD subdivision, which requires provision of a public benefit. The HBCSD proposes to provide a new restroom/concession/storage building for the expanded park as well as upgraded passive park amenities B. BACKGROUND The LeBard Elementary School and LeBard Park were developed with the original residential subdivision of this area of Huntington Beach in the 1960's In 1981, the elementary school was closed for educational purposes. However, upon its closure, the Huntington Beach City School District (HBCSD) elected to retain the school in reserve, utilizing the building as a temporary administration office. This use continued until the HBCSD moved out of the building and to a temporary location earlier this year. In 2008, after a comprehensive review of its holdings and finances, the Huntington Beach City School District Board concluded that LeBard Elementary School was no longer needed as a school site and that the deteriorating school building had exceeded its useful life. On March 11, 2008, the City of Huntington Beach received formal notification from the HBCSD of their intent to sell the approximately 10-acre closed LeBard school site. The City Council subsequently approved Resolution 2008-22, which, in part, authorized the City Manager to begin negotiations with the District for purchase of the site pursuant to the Naylor Act. The City and the HBCSD met several times during the next several years although no agreement was reached. In 2013, the City Council formed a subcommittee related to the re -use and acquisition of the closed LeBard school site. On May 5, 2014, the City Council approved a Memorandum of Understanding between the City and the HBCSD outlining the Item 11. - 65 xB -474- Dept ID PL 15-013 Page 4 of 7 Meeting Date 7/6/2015 terms for a project that includes the development of 15 single-family homes and an option for the City to purchase approximately 6.5 acres (area of existing sports fields) pursuant to the Naylor Act. C PLANNING COMMISSION MEETING AND RECOMMENDATION: On June 9, 2015, the Planning Commission held a public hearing on the draft MND, the two land use amendments, and the associated development entitlements for the LeBard Park and Residential Project. Staff gave a presentation and overview of the proposed project and answered questions from the Planning Commission. Greg Haulk, Superintendent of the HBCSD, and the district's project consultant provided additional history and information on the project. In total, there were 25 speakers that spoke at the public hearing Most of the speakers were residents of the two existing neighborhoods north and south of the school site (Meredith Gardens and Suburbia) Most of the speakers were generally in support of the project conceptually, but voiced concerns related to traffic, speeding, parking, and safety impacts in the Meredith Gardens neighborhood. A couple of Suburbia residents also voiced concerns regarding existing drainage issues in the neighborhood and the project's potential drainage impacts Many speakers spoke in support of eliminating the proposed parking lot expansion in favor of keeping the existing space for use as a passive park area. Those residents that supported removing the parking lot expansion from the project expressed varying viewpoints as to how parking could be alternatively addressed. Several residents expressed that parking could be addressed during the peak Little League season on the existing adjacent Southern California Edison right-of-way (SCE ROW) Several other residents believe that the neighborhood streets could absorb the Little League parking demand, while another group of residents submitted a conceptual plan for providing additional parking in the southwest portion of the sports field area with access from Cynthia Street. The president of the Sea View Little League, the Little League organization that primarily uses the existing sports fields, also spoke in support of the project. The Planning Commission approved several straw vote motions to eliminate the parking lot expansion (17 parking spaces) from the project, require replacement trees to be shade trees rather than palm trees, and require the final design of the 15 homes to be reviewed by the Design Review Board. The Planning Commission also approved, by minute action, a recommendation to the City Council to investigate the use of the SCE ROW for overflow parking during the peak Little League season and the provision of traffic calming measures in the surrounding neighborhoods. A more detailed description and analysis of the project is provided in the Planning Commission staff report dated June 9, 2015, (ATTACHMENT NO. 6) Planning Commission Action on June 9, 2015: THE MOTION MADE BY CROWE, SECONDED BY BRENDEN, TO APPROVE MITIGATED NEGATIVE DECLARATION NO. 12-008 WITH FINDINGS AND MODIFIED MITIGATION MEASURES, xB -475- Item 11. - 66 Dept ID PL 15-013 Page 5 of 7 Meeting Date 7/6/2015 THE MOTION MADE BY KALMICK, SECONDED BY SEMETA, TO APPROVE GENERAL PLAN AMENDMENT NO 12-002 AND FORWARD TO THE CITY COUNCIL; THE MOTION MADE BY KALMICK, SECONDED BY BRENDEN, TO APPROVE ZONING MAP AMENDMENT NO 12-001 WITH FINDINGS AND FORWARD TO THE CITY COUNCIL, THE MOTION MADE BY SEMETA, SECONDED BY BRENDEN, TO APPROVE TENTATIVE TRACT MAP NO 17801 WITH FINDINGS AND MODIFIED CONDITIONS OF APPROVAL, THE MOTION MADE BY KALMICK, SECONDED BY SEMETA, TO APPROVE CONDITIONAL USE PERMIT NO 12-039 WITH FINDINGS AND MODIFIED CONDITIONS OF APPROVAL, AND THE MOTION MADE BY KALMICK, SECONDED BY BRENDEN, TO APPROVE VARIANCE NO 15-001 WITH FINDINGS AND MODIFIED CONDITIONS OF APPROVAL, ALL MOTIONS CARRIED BY THE FOLLOWING VOTE AYES BRENDEN, CROWE, HOSKINSON, KALMICK, MANDIC, PINCHIFF, SEMETA NOES NONE ABSTAIN NONE ABSENT NONE ALL MOTIONS PASSE® THE PLANNING COMMISSION ALSO APPROVED FORWARDING THE FOLLOWING REQUEST TO THE CITY COUNCIL VIA MINUTE ACTION REQUEST THE CITY COUNCIL TO DIRECT STAFF TO INVESTIGATE USING THE SOUTHERN CALIFORNIA EDISON RIGHT-OF-WAY FOR TEMPORARY OVERFLOW PARKING AND TO INVESTIGATE TRAFFIC CALMING MEASURES IN THE NEIGHBORHOODS SURROUNDING LEBARD PARK. D ANALYSIS AND RECOMMENDATION General Plan Amendment The proposed General Plan Land Use designation Is Residential Low Density (RL-7) for the residential subdivision, which allows for single-family residential developments at a maximum density of seven dwelling units per acre The amendment to the land use designation Is consistent with the existing density and uses in the vicinity of the project site. In addition, the existing underlying designation on the closed school site is Residential Low Density (RL) indicating that this Is an appropriate designation should the school site permanently transition to another use, such as this request. The subject site is surrounded by single-family neighborhoods (maximum seven dwelling units per acre) The amendment to change the land use designation on the existing sports fields from Public to Open Space — Park (OS-P) is an appropriate designation for the existing use and would be consistent with the land use designation of the current LeBard Park area, and the City's parks designation in general. The proposed land use designation will continue an existing designation presently located within the surrounding area. The proposed land use designation and project will be consistent with the goals, policies, and objectives of the Land Use, Housing, and Recreation and Community Services Elements of the General Plan by contributing to the City's housing stock and parkland Item 11. - 67 HB -476- Dept ID PL 15-013 Page 6 of 7 Meeting Date 7/6/2015 inventory by preserving existing sports fields/recreation area through acquisition of a closed school site. The proposed RL-7 designation is sensitive to the existing character of the surrounding residential neighborhoods by providing a land use that is compatible and harmonious with the surrounding development. The proposed project will not conflict with the identified goals, policies, and objectives contained in the General Plan and with implementation of identified mitigation measures will not have significant impacts on the environment. Staff and the Planning Commission recommend approval of the General Plan Land Use designation amendment request to Residential Low Density for the residential subdivision portion and Open Space — Park for the existing sports fields. Zoning Map Amendment The proposed zoning designation for the subject site is Residential Low Density (RL) This designation permits single-family residential land use in neighborhoods Development standards require a minimum parcel size of 6,000 square feet and minimum lot width of 60 feet Properties in the immediate vicinity of the project site vary from 5,500 square feet to over 8,000 square feet with most in the 6,000 — 7,000 square foot range The proposed single family residential lots range from 6,000 square feet to over 9,000 square feet with the an average of approximately 7,000 square feet. Although not all of the lots meet the minimum 60-foot frontage width requirement, all lots have a width dimension of at least 60 feet Additionally, deviations from the minimum lot size and width requirements are permitted when a project is proposed as a Planned Unit Development (PUD), as is the case with the proposed residential subdivision Properties to the north, south, and west are zoned and developed with single-family residential uses. The proposed zoning map amendment to RL would be compatible with existing zoning designations surrounding the project site as well as the proposed General Plan Land Use Element designation. The amendment of the zoning designation for the subject site from Public -Semipublic to Residential Low Density implements the proposed General Plan Land Use designation of Residential Low Density. The residential zoning designation is the appropriate zoning for the site because it provides a continuation of a compatible zoning designation that allows for a traditional detached single-family residential development consistent with the single-family residential character of the surrounding area. The proposed zoning permits development to be compatible in density, design, layout, and character to the adjacent single-family residential uses Staff and the Planning Commission recommend approval of the zoning map amendment to Residential Low Density. The amendment to change the zoning designation on the existing sports fields from Public to Open Space — Park and Recreation (OS -PR) is an appropriate designation for the existing use and would be consistent with the land use designation of the current LeBard Park area and the City's parks designation in general. The proposed zoning designation will continue an existing designation presently located within the surrounding area. Environmental Status: Draft Mitigated Negative Declaration (MND) No. 12-008 (ATTACHMENT NO. 7) was prepared with mitigation measures pursuant to Section 240.04 of the HBZSO and the provisions of the California Environmental Quality Act (CEQA). The draft MND concludes that the project would result in environmental impacts that are less than significant or less HB -477- Item 11. - 68 Dept ID PL 15-013 Page 7 of 7 Meeting Date 7/6/2015 than significant with mitigation incorporated. Draft MND No. 12-008 was made available for a 30-day public review and comment period from April 16, 2015 through May 15, 2015. 29 comment letters were received on the MND and responses to comments and errata are provided as Attachment No. 8 to this report. On June 9, 2015 the Planning Commission approved MND No. 12-008 and recommended adoption to the City Council. Prior to any action on the project, it is necessary for the City Council to review and act on Mitigated Negative Declaration No. 12-008. Staff in its initial study of the project is recommending that the MND be approved with findings and mitigation measures It should be noted that the project modifications made by the Planning Commission, specifically elimination of the parking lot expansion, would not change the conclusions of the draft MND. The impact to traffic/transportation (i.e — project's potential to result in inadequate parking) was determined to be less than significant. Currently, the Little League utilizes existing parking at LeBard Park, the LeBard school site and the surrounding neighborhood streets to accommodate the parking demand generated during the peak season The elimination of the parking lot expansion, which provides approximately 17 additional parking spaces, from the project would potentially increase the number of vehicles utilizing available on -street parking spaces during the peak little league season However, this potential increase would not change the level of significance of the impact Thus, the modification would not result in new impacts or require additional mitigation measures not identified in the MND. Strategic Plan Goal: Improve quality of life Attachment(s): 1. Findings for Approval — Mitigated Negative Declaration No 12-008, Zoning Map Amendment No 12-001 2 City Council Resolution No 2015-30 for General Plan Amendment No. 12-002 3 City Council Ordinance No. 4065 for Zoning Map Amendment No 12-001 4 Existing and Proposed General Plan Land Use Designation Maps 5 Existing and Proposed Zoning Maps 6 Planning Commission Staff Report dated June 9, 2015 7. Mitigated Negative Declaration No. 12-008 — Not Attached refer to website, http://www.huntingtonbeachca.gov/files/users/planning/LeBardPark DISMND 2015- 04-16 web.pdf 8 Mitigated Negative Declaration No. 12-008 — Response to Comments and Errata 9 Tentative Tract Map No. 17801 and Site Plan dated January 21, 2015 — FOR REFERENCE ONLY 10 Planning Commission Late Communications 11.Communications received since June 9, 2015 12. Planning Commission Notice of Action dated June 10, 2015 13. PowerPoint Presentation Item 11. - 69 xB -478- December 6, 2015 Mayor & City Council City of Huntington Beach Ref LeBard Park Agreement for Acquisition & Escrow Instructions Please pull consent calendar item 11 on the December 7, 2015 council agenda and address the issue presented below. 1 In 2014 the Meredith Gardens Homeowners Association board of directors voted to oppose extending the parking lot into the park and put the savings into park amenities In July 2015 the City Council approved the school district development plan without two proposed parking lots and ball field relocations and requested staff to pursue use of the resulting savings Meredith Gardens and Suburbia park residents also spoke to this at the Planning Commission and City Council public hearings The subject agreement does not contain or reference park site improvements requested by the public, the mayor and council members when the entitlements were approved in July Recommendation Add an item (d) on page 5 under City Park Site Improvements "Install an overhead picnic structure and amenities as depicted in the LeBard Park phase 2 plan approved in 2008" Thank you for your consideration of this matter Ed Kerins Secretary Meredith Gardens Homeowners Association SUPPLEMENTAL COMMUNICATION Meeting Gate: L-7 1A6 /-5-- Agenda Item No. Dombo, Johanna From: Alan Walls <alandwalls@aol com> Sent: Sunday, December 06, 2015 5 02 PM To: CITY COUNCIL, city@aol com Subject: Acquisition and Escrow Agreement Honorable Mayor and City Council Members Please pull Item 11 of the Consent Calendar from tomorrow's agenda to resolve how much of the School District's $607,000 estimate in the MOU of 5/5/14 for improvements to LeBard Park was saved when the following were deleted by request of the surrounding community 1 A 50 car parking lot that required two T-Ball fields be dismantled and the resultant space regraded, paved, and lined 2, One T-Ball field wholly rebuilt together with backstop and associated grading 3 Creation of a second practice area for T-Ball That community agreed to accept increased street parking precisely so that the savings could be used to enhance the park as referred to by the Mayor at the entitlement hearings Those same improvements are now estimated by the School District to be $850,000, a suspicious 40% increase which would eliminate the savings and negate the sacrifice of the neighborhoods This is money the City can use to begin the Phase 11 upgrade envisioned back in 2008 Thanks for your consideration Alan Walls, Suburbia Park Committee to Save LeBard COMMUNICATION V,me mg Date: W11-r- Ag,anda Item No. 4