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HomeMy WebLinkAboutAdopt Resolution Number 2005-54 Declaring the Disposition of a< r First st American 2 First American Way, Santa Ana CA 92707 Tel:7142503000 Fax: Oran e III IIIIIIIIII III IIII III II IIII III IIII IIIII II IIIII II * 0000029136930232180 * Transmittal Order No: 2557051 Dated: 9/20/2007 Attention: City Clerk City of Huntington Beach PO Box 190 Huntington Beach , CA 92648 Enclosed please find 2 attached documents. Orange Title Page Count 11 Form No. 1402.92(10/17/92) Order Number: OSA-2557051 ALTA Standard Owner's Policy Page Number: 1 Western Regional Exceptions Policy of Title Insurance 4. tiff ISSUED BY First American Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS,FIRST AMERICAN TITLE INSURANCE COMPANY,a California corporation,herein called the Company,insures,as of Date of Policy shown in Schedule A,against loss or damage,not exceeding the Amount of Insurance stated in Schedule A,sustained or incurred by the insured by reason of: I. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs,attorneys'fees and expenses incurred in defense of the title,as insured,but only to the extent provided in the Conditions and Stipulations. AA Firt'tArnrerr'afnt Tiffe histirontre(`a njxar r ICI � }+� ���P V FirstAmerican Title f Form No. 1402.92(10/17/92) Order Number: OSA-2557051 ALTA Standard Owner's Policy Page Number: 2 Western Regional Exceptions SCHEDULE A Premium: $742.00 Amount of Insurance: $143,000.00 Policy Number:OSA-2557051 Date of Policy: December 08, 2006 at 2:42 P.M. 1. Name of insured: Bobbie G. Williams and Vallee J. Williams, Trustees of The Bobbie G. and Vallee J. Williams Trust, U.T.D 10/20/77 2. The estate or interest in the land which is covered by this policy is: A fee. 3. Title to the estate or interest in the land is vested in: Bobbie G. Williams and Vallee J. Williams,Trustees of The Bobbie G. and Vallee J. Williams Trust, U.T.D 10/20/77 4. The land referred to in this policy is described as follows: Real property in the City of Huntington Beach, County of Orange, State of California, described as follows: PARCEL 1: (Portions of APN 111-130-011 &012) THE EASTERLY 20.00 FEET OF LOT 12 IN BLOCK D OF "GARFIELD STREET ADDITION TO HUNTINGTON BEACH", IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 7, PAGES 27 AND 28 OF MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY. EXCEPT THE NORTHERLY 28.00 FEET THEREOF ALSO EXCEPT THAT PORTION LYING NORTHWESTERLY OF A CURVE CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 32.00 FEET AND WHICH IS TANGENT AT ITS SOUTHERLY TERMINUS TO THE WESTERLY LINE OF SAID EASTERLY 20.00 OF LOT 12 AND TANGENT AT ITS EASTERLY TERMINUS TO THE SOUTHERLY LINE OF SAID NORTHERLY 28.00 FEET OF LOT 12. PARCEL 2: (APN 111-130-028) THE PORTION OF LOT 28 IN BLOCK D OF "GARFIELD STREET ADDITION TO HUNTINGTON FirstAmerican Title Form No. 1402.92(10/17/92) Order Number: OSA-2557051 ALTA Standard Owner's Policy Page Number: 3 Western Regional Exceptions BEACH", IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 7, PAGES 27 AND 28 OF MISCELLANEOUS MAPS, RECORDS OF SAID COUNTY, LYING WESTERLY OF THE EAST LINE OF THE WEST HALF OF SAID LOT 28 AND EASTERLY OF A LINE PARALLEL WITH AND 60.00 FEET EAST, MEASURED AT RIGHT ANGLES, FROM THE WEST LINE OF SECTION 2,TOWNSHIP 6 SOUTH, RANGE 11 WEST, SAN BERNARDINO MERIDIAN. First American rtie Form No. 1402.92(10/17/92) Order Number: 0SA-2557051 ALTA Standard Owner's Policy Page Number: 4 Western Regional Exceptions SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: PART ONE SECTION ONE 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. SECTION TWO 1. General and special taxes and assessments for the fiscal year 2006-2007 are exempt. 2. The lien of special tax assessed pursuant to Chapter 2.5 commencing with Section 53311 of the California Government Code for Community Facilities District No. 88-1, as disclosed by Notice of Special Tax Lien recorded October 28, 1988 as Instrument No. 88-553717 of Official Records. 3. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 4. The use and control of cienegas and natural streams of water, if any, naturally upon, flowing across, into or by said described tract, and the right of way for and to construct irrigation or drainage ditches through said tract to irrigate or drain the adjacent land. 5. An easement shown or dedicated on the Map as referred to in the legal description For: Water mains for irrigation purposes, pole lines and incidental purposes. FirstAmerican Title Form No. 1402.92(10/17/92) Order Number: OSA-2557051 ALTA Standard Owner's Polity Page Number: 5 Western Regional Exceptions 6. An easement for pipelines and incidental purposes, recorded September 7, 1920 as Book 377 of deeds, page 303 of Official Records. In Favor of: Standard Oil Company, a corporation Affects: parcel 2 7. Memorandum of City Council Resolution No. 2002-59 Establishing the Holly-Seacliff area of benefit district. Recorded December 8, 2003 as instrument no. 2003001458184 of official records. said resolution states that an area of benefit charge, due and payable upon application for a building permit. $8,376.30 affecting APN 111-130-11 plus any additional amounts due $4,903.20 affecting APN 111-130-12 plus any additional amounts due The map attached, if any, may or may not be a survey of the land depicted hereon. First American expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached. First American Title s Form No.1402.92(10/17/92) Order Number: OSA-2557051 ALTA Standard Owner's Policy Page Number: 6 Western Regional Exceptions EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,costs,attorneys'fees or expenses which arise by reason of: 1.(a)Any law,ordinance or governmental regulation(including but not limited to building and zoning laws,ordinances,or regulations)restricting, regulating,prohibiting or relating to (i)the occupancy,use,or enjoyment of the land; (ii)the character,dimensions or location of any improvement now or hereafter erected on the land; (iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part;or (iv)environmental protection,or the effect of any violation of these laws,ordinances or governmental regulations,except to the extent that a notice of the enforcement thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b)Any governmental police power not excluded by(a)above,except to the extent that a notice of the exercise thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Polity. 2.Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy,but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3.Defects,liens,encumbrances,adverse claims,or other matters: (a)created,suffered,assumed or agreed to by the insured claimant; (b)not known to the Company,not recorded in the public records at Date of Policy,but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c)resulting in no loss or damage to the insured claimant; (d)attaching or created subsequent to Date of Policy;or (e)resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4.Any claim,which arises out of the transaction vesting in the Insured the estate or interest insured by this polity,by reason of the operation of federal bankruptcy,state insolvency,or similar creditors'rights laws,that is based on: (i)the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer;or (ii)the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a)to timely record the instrument of transfer;or (b)of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. CONDITIONS AND STIPULATIONS 1.DEFINITION OF TERMS. The following terms when used in this polity mean: (a)"insured":the insured named in Schedule A,and,subject to any rights or defenses the Company would have had against the named insured,those who succeed to the interest of the named insured by operation of law as distinguished from purchase including,but not limited to,heirs,distributees, devisees,survivors,personal representatives,next of kin,or corporate or fiduciary successors. (b)"insured claimant":an insured claiming loss or damage. (c)"knowledge"or"known":actual knowledge,not constructive knowledge or notice which may be imputed to an insured by reason of any public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d)"land":the land described or referred to in Schedule(A),and improvements affixed thereto which by law constitute real property.The term"land" does not include any property beyond the lines of the area described or referred to in Schedule(A),nor any right,title,interest,estate or easement in abutting streets,roads,avenues,alleys,lanes,ways or waterways,but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e)"mortgage":mortgage,deed of trust,trust deed,or other security instrument. (f)"public records":records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge.With respect to Section 1(a)(iv)of the Exclusions from Coverage,"public records"shall also include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g)"unmarketability of the title":an alleged or apparent matter affecting the title to the land,not excluded or excepted from coverage,which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2.CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land,or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured,or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest.This policy shall not continue in force in favor of any purchaser from the insured of either (i)an estate or interest in the land,or (ii)an indebtedness secured by a purchase money mortgage given to an insured. 3.NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notify the Company promptly in writing First American Title Form No. 1402.92(10/17/92) Order Number: OSA-2557051 ALTA Standard Owner's Policy Page Number: 7 Western Regional Exceptions (i)in case of any litigation as set forth in Section 4(a)below, (ii)in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest,as insured,and which might cause loss or damage for which the Company may be liable by virtue of this policy,or (iii)if title to the estate or interest,an insured,is rejected as unmarketable.If prompt notice shall not be given to the Company,then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required;provided,however,that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4.DEFENSE AND PROSECUTION OF ACTIONS;DUTY OF INSURED CLAIMANT TO COOPERATE. (a)Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations,the Company,at its own cost and without unreasonable delay,shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured but only as to those stated causes of action alleging a defect,lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice(subject to the right of the insured to object for reasonable cause)to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel.The Company will not pay any fees,costs or expenses incurred by an insured in the defense of those causes of action which allege matters not insured against by this policy. (b)The Company shall have the right,at its own cost,to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest,as insured,or to prevent or reduce loss or damage to an insured.The Company may take any appropriate action under the terms of this policy,whether or not it shall be liable hereunder,and shall not thereby concede liability or waive any provision of this policy.If the Company shall exercise its rights under this paragraph,it shall do so diligently. (b) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy,the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right,in its sole discretion,to appeal from any adverse judgment or order. (c)In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding,the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding,and all appeals therein,and permit the Company to use,at its option,the name of the insured for this purpose.Whenever requested by the Company,the insured,at the Company's expense,shall give the Company all reasonable aid(i)in any action or proceeding,securing evidence,obtaining witnesses,prosecuting or defending the action or proceeding,or effecting settlement,and(ii)in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured.If the Company is prejudiced by the failure of the insured to furnish the required cooperation,the Company's obligations to the insured under the policy shall terminate,including any liability or obligation to defend,prosecute,or continue any litigation,with regard to the matter or matters requiring such cooperation. S. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company,a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage.The proof of loss or damage shall describe the defect in,or lien or encumbrance on the title,or other matter insured against by this policy which constitutes the basis of loss or damage and shall state,to the extent possible,the basis of calculating the amount of the loss or damage.If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage,the Company's obligations to the insured under the policy shall terminate,including any liability or obligation to defend,prosecute,or contin ue any litigation,wi th regard to the matter or matters requiring such proof of loss or damage. In addition,the insured claimant may reasonably be required to submit to examination under oath by any authorized representat ive of the Company and shall produce for examination,inspectionand copying,at such reasonable times and places as may be designated by any authorized representative of the Company,all records,books,ledgers,checks,correspondence and memoranda,whether bearing a date before or after Date of Policy,which reasonably pertain to the loss or damage.Further,if requested by any authorized representative of the Company,the insured claimant shall grant its permission,in writing,for any authorized representative of the Company to examine,inspect and copy all records,books,ledgers,checks, correspondence and memoranda in the custody or contro I of a third party,which reasonably pertain to the loss or damage.All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless,in the reasonable judgment of the Company,it is necessary in the administration of the claim.Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS;TERMINATION OF LIABILITY. In case of a claim under this policy,the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the amount of insurance under this policy together with any costs,attorneys'fees and expenses incurred by the insured claimant,which were authorized by the Company,up to the time of payment or tender of payment and which the Company is obligated to pay. Upon the exercise by the Company of this option,all liability and obligations to insured under this policy,other than to make the payment required, shall terminate,including any liability or obligation to defend,prosecute,or continue any litigation,and the policy shall be surrendered to the Company for cancellation. (b)To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy,together with any costs,attorneys'fees and expenses incurred by the insured claimant which were autho rized by the Company up to the time of payment and which the Company is obligated to pay;or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy,together with any costs,attorneys'fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs(b)(i)or(ii),the Company's obligations to the insured under this policy for the claimed loss or damage,other than the payments required to be made,shall terminate,including any liability or obligation to defend, prosecute or continue any litigation. 7. DETERMINATION,EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by.reason of matters insured against by this policy and only to the extent herein described. First American Title ti Form No. 1402.92(10/17/92) Order Number: OSA-2557051 ALTA Standard Owner's Policy Page Number: 8 Western Regional Exceptions (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A;or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land,whichever is less,or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A,then this Policy is subject to the following: (i) where no subsequent improvement has been made,as to any partial loss,the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy;or(11)where a subsequent improvement has been made,as to any partial loss,the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Sch edule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs,attorneys'fees and expenses for which the Company is liable under this policy,and shall only apply to that portion of any loss which exceeds,in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A. (c)The Company will pay only those costs,attorneys'fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. S. APPORTIONMENT. If the land described in Schedule(A)(C)consists of two or more parcels which are not used as a single site,and a loss is established affecting one or more of the parcels but not all,the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole,exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. LIMITATION OF LIABILITY. (a) If the Company establishes the title,or removes the alleged defect,lien or encumbrance,or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title,all as insured,in a reasonably diligent manner by any method,including litigation and the completion of any appeals therefrom,it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation,including litigation by the Company or with the Company's consent,the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction,and disposition of all appeals therefrom,adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE;REDUCTION OR TERMINATION OF LIABILITY. All payments under this policy,except payments made for costs,attorneys'fees and expenses,shall reduce the amount of the insurance pro tanto. 11. LIABILITY NONCUMULATIVE. It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed,assumed,or taken subject,or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A,and the amount so paid shall be deemed a payment under this policy to the insured owner. 12. PAYMENT OF LOSS. (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed,in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations,the loss or damage shall be payable within 30 days thereafter. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy,all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued.If requested by the Company,the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation.The insured claimant shall permit the Company to sue,compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant,the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant,as stated above,that act shall not void this policy,but the Company,in that event,shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount,if any,lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Company's Rights Against Non-insured Obligors. The Company's right of subrogation against non-insured obligors shall exist and shall include,without limitation,the rights of the insured to indemnities,guaranties,other policies of insurance or bonds,notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. ARBITRATION. First American Title t Form No.1402.92(10/17/92) Order Number: OSA-2557051 ALTA Standard Owner's Policy Page Number: 9 Western Regional Exceptions Unless prohibited by applicable law,either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association.Arbitrable matters may include,but are not limited to,any controversy or claim between the Company and the insured arising out of or relating to this policy,any service of the Company in connection with its issuance or the breach of a policy provision or other obligation.All arbitrable matters when the Amount of Insurance is$1,000,000 or less shall be arbitrated at the option of either the Company or the insured.All arbitrable matters when the Amount of Insurance is in excess of$1,000,000 shall be arbitrated only when agreed to by both the Company and the insured.Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or,at the option of the insured,the Rules in effect at Date of Policy shall be binding upon the parties.The award may include attorneys'fees only if the laws of the state in which the land is located permit a court to award attorneys'fees to a prevailing party.Judgment upon the award rendered by the Arbitrator(s)may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY;POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements,if any,attached hereto by the Company is the entire policy and contract between the insured and the Company.In interpreting any provision of this policy,this policy shall be construed as a whole. (b) Any claim of loss or damage,whether or not based on negligence,and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim,shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President,a Vice President,the Secretary,an Assistant Secretary,or validating officer or authorized signatory of the Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law,the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 17. NOTICES,WHERE SENT. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at 1 First American Way,Santa Ana,California 92707,or to the office which issued this policy. First American Title y A First American IMPORTANT - PLEASE READ THIS LETTER CONTAINS INFORMATION ABOUT THE PROPERTY YOU HAVE RECENTLY PURCHASED. READ IT THOROUGHLY AND RETAIN IT WITH YOUR OTHER VALUABLE PAPERS PERTAINING TO THE PROPERTY. Policy No.: OSA-2557051-08 Property: Vacant Land, Huntington Beach, CA Title to the above referenced property is protected with a Policy of Title Insurance issued by First American Title Insurance Company.This insures your ownership of the property. We have assigned the policy number referenced above to assure prompt processing of any future title orders involving the property. If you sell your home within the next Five(5) years, First American Title Company will reduce the Base Policy Rate by Twenty percent(20 %). To take advantage of these savings, instruct your real estate agent, loan agent and/or escrow holder to open the order for title insurance with First American Title Company and reference the policy number above. We appreciate the opportunity to serve you and will be glad to assist you in any way we can, remembering that protection of your property is your first consideration - and ours. Sincerely, Larry Buster Vice President County Manager AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS Escrow No. oZ �s �0,5/ leCB To: Attn: THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS (this "Agreement") is entered into on December 1, 2005 ("Effective Date") by and between THE CITY OF HUNTINGTON BEACH, a California municipal corporation ("Seller"), and BOBBIE G. WILLIAMS AND VALLEE J. WILLIAMS, TRUSTEES OF THE BOBBIE G. AND VALLEE J. WILLIAMS TRUST, U.T.D. 10/20/77 ("Buyer"). A. Seller is the owner in fee of that certain real property consisting of 5,254 square feet of vacant land located in near the southeast corner of Goldenwest Street and Garfield Avenue in the City of Huntington Beach, County of Orange, State of California, including all buildings and improvements located thereon, commonly referred to as Assessor's Parcel Numbers 111-130-11, 111-130-12 and 111-130-28, and as more particularly described in Exhibit A attached to this Agreement (the "Parcels"): SEE EXHIBIT "A" B. Buyer is the owner of certain real property adjacent to the Parcels and Buyer desires to purchase from Seller, upon the terms and conditions set forth in this Agreement, the Parcels, together with all improvements located thereon, and all land entitlements, owned or held by Seller in connection with the Land (collectively, the "Property"). NOW, THEREFORE, in consideration of the mutual agreements set forth herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Seller and Buyer agree as follows: ARTICLE I 1.0 TERMS AND CONDITIONS 1.1 Agreement to Purchase. Subject to all the terms, conditions, and provisions of this Agreement, and for the consideration herein set forth, Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller, the Property. 1.2 Payment of Purchase Price. (a) Amount of Purchase Price. The purchase price for the conveyance and transfer of Seller's interest in the Property to Buyer shall be One Hundred Forty-Three Thousand Dollars (S 143,000.00) ("Purchase Price"). (b) Payment of Purchase Price. The Purchase Price shall be deposited by Buyer into Escrow within fifteen (15) business days following the receipt of the Estimated Closing Statement. Buyer shall deposit the Purchase Price with Escrow Holder in "good funds" payable to Seller at the time of closing. "Good funds" shall mean a wire transfer of funds, cashier's or certified check drawn on or issued by the offices of a financial institution located in the State of California or cash. (c) Interests Conveyed. It is understood and agreed by and between Buyer and Seller that the Purchase Price set forth above is paid as full and final consideration of all of the following: (1) A fee simple interest in and to the Property of all interest Seller may have had or currently holds and owns in the Property excepting therefore any interests in oil, gas, and other hydrocarbon substances and minerals. (ii) All improvements, structures, landscaping, paving and any appurtenances to the Property. 1.2.2 Retention of Cash. All cash received by Escrow Holder will be, until the Close of Escrow, kept on deposit in a federally insured state or national bank. 1.2.3 Interest. Escrow Holder shall be required to hold any and all deposits in an interest-bearing account, with interest accruing for the benefit of the Seller. ARTICLE II 2.0 INSPECTION AND REVIEW 2.1 Delivery of Due Diligence Materials. Within three (3) business days of the Effective Date, Seller shall deliver to Buyer all documents, reports, agreements, or other items in its possession or control relating to the Property, including without limitation the following (collectively, the "Due Diligence Materials"): (1) all licenses, leases, and pen-nits affecting or relating to the ownership, subdivision, possession or development of the Property or the construction of improvements thereon, and all amendments and modifications thereto; (ii) applications and correspondence or other written communications to or from any governmental entity, department or agency other than Buyer regarding any pen-nit, approval, consent or authorization with respect to the development of the Property or the construction of improvements thereon; (ill) the most recent survey, if any, pertaining to the Property or any portion thereof, and (iv) soils reports, engineering data, environmental reports, and other data or studies pertaining to the Property or any portion thereof. 2.2 Inspections. Buyer and its representatives, agents, engineers, consultants, contractors, and designees shall have the right to enter onto the Property from and after the Effective Date through and including the date which is ten (10) days after the Effective Date (the "Due Diligence Period"), for purposes of examining, inspecting and investigating the Property including the site, soil, subsurface soils, drainage, seismic and other geological and topographical matters, location of asbestos, toxic substances, hazardous materials or wastes, if 05agrec/purchase and sale williams 2 any, and, at Buyer's sole and absolute discretion, determining whether the Property is acceptable to Buyer. In the event that Buyer enters upon Property at anytime prior to the Close of Escrow, Buyer hereby agrees to indemnify, defend, and hold Seller harmless from any actions, damages, liability, liens or claims which may be asserted against Seller as a result of entry or activities on or about the Property. After entering onto the Property before the Close of Escrow, Buyer shall, in a timely manner, repair any and all damage to the Property caused by such inspections or investigations. 2.3 Disclaimer of Warranties. Upon the Close of Escrow, Buyer shall acquire the Property in its "AS-IS" condition and shall be responsible for any defects in the Property, whether patent or latent, including, without limitation, the physical, enviromnental and geotechnical condition of the Property, and the existence of any contamination, Hazardous Materials, debris, or other structures located on, under or about the Property. Seller makes no representation or warranty concerning the physical, environmental, geotechnical or other condition of the Property, the suitability of the Property for the Project, or the present use of the Property, and specifically disclaims all representations or warranties of any nature concerning the Property made by it, the District and their employees, agents and representatives. The foregoing disclaimer includes, without limitation, topography, climate air, water rights, utilities, present and future zoning, soil, subsoil, existence of Hazardous Materials or similar substances, the purpose for which the Property is suited, or drainage. The Seller makes no representation or warranty concerning the compaction of soil upon the Property, nor of the suitability of the soil for construction. 2.4 Hazardous Materials. Buyer, and each of the entities constituting Buyer, if any, from and after the Closing, hereby waives, releases, remises, acquits and forever discharges Seller, its directors, officers, shareholders, employees, and agents, and its respective heirs, successors, personal representatives and assigns, of and from any and all Environmental Claims, Environmental Cleanup Liability and Environmental Compliance Costs, as those terns are defined below, and from any and all actions, suits, legal or administrative orders or proceedings, demands, actual damages, punitive damages, loss, costs, liabilities and expenses, which concern or in any way relate to the physical or environmental conditions of the Property, the existence of any Hazardous Material thereon, or the release or threatened release of Hazardous Materials therefrom, whether existing prior to, at or after the Closing. It is the intention of the parties pursuant to this release that any and all responsibilities and obligations of Seller, and any and all rights, claims, rights of action, causes of action, demands or legal rights of any kind of Buyer, its successors, assigns or any affiliated entity of Buyer, arising by virtue of the physical or environmental condition of the Property, the existence of any Hazardous Materials thereon, or any release or threatened release of Hazardous Material therefrom, whether existing prior to, at or after the Closing, are by this Release provision declared null and void and of no present or future force and effect as to the parties. In connection therewith, Buyer and each of the entities constituting Buyer, expressly agree to waive any and all rights which said party may have under Section 1542 of the California Civil Code which provides as follows: 05agree/purchase and sale williams 3 "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." BUYER'S INITIALS: SELLER'S fNITIAI`4�5—�� Buyer and each of the entities constituting Buyer, shall, from and after the Closing, defend, indemnify and hold harmless District and its officers, directors, employees, agents and representatives (collectively, the "Indemnified Parties") from and against any and all Environmental Claims, Environmental Cleanup Liability, Environmental Compliance Costs, and any other claims, actions, suits, legal or administrative orders or proceedings, demands or other liabilities resulting at any time from the physical and/or environmental conditions of the Property whether before or after the Closing or from the existence of any Hazardous Materials or the release or threatened release of any Hazardous Materials of any kind whatsoever, in, on or under the Property occurring at any time whether before or after the Closing, including, but not limited to, all foreseeable and unforeseeable damages, fees, costs, losses and expenses, including any and all attorneys' fees and environmental consultant fees and investigation costs and expenses, directly or indirectly arising therefrom, and including fines and penalties of any nature whatsoever, assessed, levied or asserted against any Indemnified Parties to the extent that the fines and/or penalties are the result of a violation or an alleged violation of any Environmental Law. Buyer further agrees that in the event Buyer obtains, fi-om former or present owners of the Property or any other persons or entities, releases from liability, indemnities, or other forms of hold harmless relating to the subject matter of this section, Buyer shall use its diligent efforts to obtain for District the same releases, indemnities and other comparable provisions. For purposes of this Section 2.4, the following tenns shall have the following meanings. (a) "Environmental Claim" means any claim for personal injury, death and/or property damage made, asserted or prosecuted by or on behalf of any third party, including, without limitation, any governmental entity, relating to the Property or its operations and arising or alleged to arise under any Environmental Law. (b) "Environmental Cleanup Liability" means any cost or expense of any nature whatsoever incurred to contain, remove, remedy, clean up, or abate any contamination or any Hazardous Materials on or under all or any part of the Property, including the ground water thereunder, including, without limitation, (A) any direct costs or expenses for investigation, study, assessment, legal representation, cost recovery by governmental agencies, or ongoing monitoring in connection therewith and (B) any cost, expense, loss or damage incurred with respect to the Property or its operation as a result of actions or measures necessary to implement or effectuate any such containment, removal, remediation, treatment, cleanup or abatement. (c) "Environmental Compliance Cost" means any cost or expense of any nature whatsoever necessary to enable the Property to comply with all applicable Environmental Laws 05agree/purchase and sale williams 4 in effect. "Environmental Compliance Cost" shall include all costs necessary to demonstrate that the Property is capable of such compliance. (d) "Environmental Law" means any federal, state or local statute, ordinance, rule, regulation, order, consent decree, judgment or common-law doctrine, and provisions and conditions of permits, licenses and other operating authorizations relating to (A) pollution or protection of the environment, including natural resources, (B) exposure of persons, including employees, to Hazardous Materials or other products, raw materials, chemicals or other substances, (C) protection of the public health or welfare from the effects of by-products, wastes, emissions, discharges or releases of chemical substances from industrial or commercial activities, or (D) regulation of the manufacture, use or introduction into commerce of chemical substances, including, without limitation, their manufacture, formulation, labeling, distribution, transportation, handling, storage and disposal. (e) "Hazardous Material" is defined to include any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government. The term "Hazardous Material" includes, without limitation, any material or substance which is: (A) petroleum or oil or gas or any direct or derivate product or byproduct thereof, (B) defined as a "hazardous waste," "extremely hazardous waste" or "restricted hazardous waste" under Sections 25115, 25117 or 25122.7, or listed pursuant to Section 25140, of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); (C) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley- Tanner Hazardous Substance Account Act); (D) defined as a "hazardous material," "hazardous substance," or "hazardous waste" under Sections 255010) and (k) and 25501.1 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (E) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (F) "used oil" as defined under Section 25250.1 of the California Health and Safety Code; (G) asbestos; (H) listed under Chapter 11 of Division 4.5 of Title 22 of the California Code of Regulations, or defined as hazardous or extremely hazardous pursuant to Chapter 10 of Division 4.5 of Title 22 of the California Code of Regulations; (1) defined as waste or a hazardous substance pursuant to the Porter-Cologne Act, Section 13050 of the California Water Code; (J) designated as a "toxic pollutant" pursuant to the Federal Water Pollution Control Act, 33 U.S.C. § 1317; (K) defined as a "hazardous waste" pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. § 6903); (L) defined as a "hazardous substance" pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq. (42 U.S.C. § 9601); (M) defined as "Hazardous Material" pursuant to the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq.; or (N) defined as such or regulated by any "Superfund" or "Superlien" law, or any other federal, state or local law, statute, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning Hazardous Materials and/or oil wells and/or underground storage tanks and/or pipelines, as now, or at any time hereafter, in effect. Notwithstanding any other provision of this Agreement, Buyer's release and indemnification as set forth in the provisions of this Section, as well as all provisions of this. Section shall survive the tennination of this Agreement and shall continue in perpetuity. 05agree/purchase and sale williams 5 2.5 Disapproval/Tennination. Buyer shall notify Seller and Escrow Holder in writing ("Buyer's Due Diligence Notice") on or before the expiration of the Due Diligence Period of Buyer's approval or disapproval of the Due Diligence Materials, the condition of the Property and Buyer's investigations with respect thereto. Buyer's disapproval of any of said items shall constitute Buyer's election to terminate this Agreement and cancel the Escrow. Buyer's failure to deliver Buyer's Due Diligence Notice on or before the expiration of the Due Diligence Period shall be conclusively deemed Buyer's approval thereof. 2.6 Title Review. Buyer and Seller are in receipt of a Preliminary Title Report prepared by Chicago Title Company and dated September 15, 2005 ("Title Report"). ARTICLE III 3.0 ESCROW 3.1 Opening of Escrow. The parties shall open escrow on the Effective Date. Escrow shall be deemed open on the date that a fully executed copy of this Agreement is delivered to Escrow Holder (the "Opening of Escrow"). Escrow Holder shall provide each of the parties in Section 4.4 with written confirmation of the date of the Opening of Escrow. fiZt 1N1"K Tift jekraw.L Cb- shall also provide title insurance services related to this Agreement through fkt & 'c4w%R4 J!KykyA t Ca, Tel: 114- )pd- ebb$ Fax: IN-80-0 - 512'8 3.2 Closing Date: Time of Essence. (a) Closing _Date. Unless otherwise terminated Unless otherwise terminated by Buyer as provided below, Escrow shall close within thirty(30) days from the date Escrow is opened. The terms "the Close of Escrow", and/or the "Closing" as used herein shall mean the time Seller's Grant Deed(s) is filed for recording by the Escrow Holder in the Office of the County Recorder of Orange County, California, the Title Company has issued the Title Policy provided for in subsection (c) below, all closing costs and other costs are paid in full, and all disbursements of any remaining funds in Escrow, or other disbursements as may be required to close Escrow, are made by Escrow Holder to the appropriate parties. (b) Time of Essence. Buyer and Seller specifically understand and agree that time is of the essence and Buyer and Sellers specifically agree to strictly comply and perform their obligations herein in the time and manner specified, and waive any and all rights to claim such compliance by mere substantial compliance with the terms of this Agreement. The time for Closing may be extended, but only by way of a writing signed by all parties. (c) Title Policy. Upon Seller's deposit of the Grant Deed(s) in favor of Buyer in recordable condition covering Seller's undivided interest in the Property, and prior to Close of Escrow, Escrow Holder shall cause to be issued and delivered to Buyer as of the Closing a C.L.T.A. standard coverage policy of title insurance ("Title Policy") issued by Fj►'J Aw yM^4,Tf1.( 1Kf%MKLe fie. ("Title Company"), with liability in the amount of the Purchase Price, covering the Property and reflecting the fee simple title to Seller's undivided interest in the Property in favor of Buyer free of encumbrances; except: 05agree/purchase and sale williams 6 (i) The standard printed exceptions and exclusions contained in the CLTA form policy; and (ii) Any exceptions created by or consented to in writing by Buyer. 3.3 Conditions Precedent To Close Of Escrow. (a) Condition to Buyer's Obligations. The obligations of Buyer under this Agreement shall be subject to the satisfaction or written waiver, in whole or in part, by Buyer of each of the following conditions precedent: (1) Issuance by Title Company of the Title Policy reflecting a fee simple undivided interest in the Property granted to Buyer. (ii) Deposit by Buyer of all instruments and funds provided for in this Agreement, necessary to the Closing. (b) Conditions to Seller's Obligations. The obligations of the Seller under this Agreement shall be subject to the satisfaction or written waiver, in whole or in part, by the Seller of each of the following conditions precedent: (1) Delivery by Buyer of all instruments and funds provided for in this Agreement necessary to the Closing. 3.4 Escrow Provisions. This Agreement, when signed by Buyer and Seller, shall also constitute escrow instructions to Escrow Holder. If required by Escrow Holder, Buyer and, Seller agree to execute Escrow Holder's standard escrow instructions, provided that the same are consistent with and do not conflict with the provisions of this Agreement. In the event of any such conflict, the provisions of this Agreement shall prevail. 3.5 Payment of Costs. Buyer shall pay Buyer's and Seller's Escrow fees, any premium charges for the Title Policy, the charge for drawing the Grant Deed(s), and the charges for recording the Grant Deed(s). Clearing of all existing encumbrances,judgments, or liens, including any fees or charges incurred, shall be the sole responsibility of Seller. 3.6 Termination and Cancellation of Escrow. If Escrow fails to close as provided above, any party who then shall have fully complied with their instructions and met their conditions to Close of Escrow may, in writing, demand of Escrow Holder the return of their money, documents, instruments, or property deposited into escrow. If no party has so complied, no demand for return of any money, documents, instruments, or property will be recognized by Escrow Holder until five (5) business days after Escrow Holder has mailed written notice of such demand to all other parties at their respective addresses shown in these instructions, and if any party raises any objection to such return, Escrow Holder is authorized to hold all such money, documents, instruments, or property until instructed by a court of competent jurisdiction or joint instruction of the parties. 05agrec/purchase and sale williams 7 3.7 Brokerage Commissions. Seller represents to Buyer that no third party is owed any payment or commission as a result of the transfer of the property interests provided hereunder. 3.8 Buyer's Written Purchase Offer. To the extent not inconsistent herewith, the terms of Buyer's written purchase offer to Seller dated July 6, 2005, are incorporated herein by- reference into this Agreement. ARTICLE IV 4.0 MISCELLANEOUS 4.1 Possession. Possession of the Property shall be delivered to Buyer at Close of Escrow. 4.2 Amendments and Counterparts. This Agreement and any modifications, amendments, or supplements thereto may be executed in counterparts and shall be valid and binding as if all of the parties' signatures were on one document. 4.3 Attorney's Fees. In any action between the parties hereto, seeking enforcement of any of the terms and provisions of this Agreement or the Escrow, or in connection with the Property, the prevailing party in such action shall not be entitled to recover from the other party its reasonable attorney's fees. Each party shall bear its own attorney's fees. 4.4 Notices. Any notice which either party may desire to give to the other party or to the Escrow Holder must be in writing and may be given by personal delivery or by mailing the same by registered or certified mail, return receipt requested, postage prepaid, to the party to whom the notice is directed at the address of such party hereinafter set forth, or such other address and to such other persons as the parties may hereafter designate: To Seller: Steven Holtz, Real Estate Services Manager- Economic Development Department City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, CA 92648 To Buyer: Bobbie G. Williams and Vallee J. Williams, Trustees of the Bobbie G. and Vallee J. Williams Trust, U.T.D. 10/20/77 c/o B. G. Williams 4952 Warner Avenue, Suite 223 Huntington Beach, CA 92649-5505 05agree/purchase and sale williams g To Escrow Holder: Fim AfryiLmA T'i.{([ Li-swm,ct CO i L. (st BOA CAVX WA V , rAA4 Aga eA 41161 ESae w D iv iS a v► Any notice given by mail shall be deemed received forty-eight (48) hours after such notice is deposited in the United States mail, addressed as provided above, with postage fully prepaid. 4.5 Interpretation: Governing Law. This Agreement shall be construed according to its fair meaning and as if prepared equally by all parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in- effect at the time of the execution of this Agreement. Any action brought in connection with this Agreement shall be brought in a court of competent jurisdiction located in Orange County, California. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and singular or plural number shall each be deerned to include the others wherever and whenever the context so dictates. 4.6 No Waiver. No delay or omission by either party hereto in exercising any right or power accruing upon the compliance or failure of perfonnance by the other party hereto under the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either party hereto of a breach of any of the covenants, agreements restrictions or conditions hereof to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof 4.7 Modifications. Any alteration, change or modification of or to this Agreement, in order-to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto. 4.8 Severability. If any tenn, provision, condition or covenant of this Agreement or application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such teen, provision, condition or covenant to persons or circumstances other- than those as to whom or which it is held invalid or unenforceable, shall be valid and enforceable to the fullest extent permitted by law. 4.9 Merger-of Prior Agreements and Understandings. This Agreement and other documents incorporated herein by reference contain the entire understanding between the parties relating to the transaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect. 05agree/purchase and sale williams 9 4.10 Covenants to Survive Escrow. The covenants and agreements contained herein shall survive the Close of Escrow and shall be binding upon and inure to the benefit of the parties I ereto and their representatives, heirs, successors and assigns. 4.11 I.R.S. Form "W-9". It is further understood and agreed by Seller that closing of this Escrow is subject to and contingent upon Seller executing an Internal Revenue Service Form W-91 1 and 1099-S Form, and depositing same with Escrow Holder no later than one (1) day prior to the Close of escrow. 4.12. Notice of Tax Withholding Requirements. It is further understood and agreed by Buyer and Seller that closing of this Escrow is subject to and contingent upon Seller executing a "Transferor's Affidavit of Non-Foreign Status" and California Form 590 (Withholding Exemption Certificate) and depositing a copy of same with Escrow Holder no later than one (1) day prior to the Close of Escrow. In the event Sellers cannot execute the above-referenced Transferor's Affidavit or California Form 590, Seller shall provide written instructions to Buyer. 4.13 Assignment. Neither Party shall assign this Agreement nor any right or privilege either party might have under this Agreement without the prior written consent of the other Party. 4.14 Third Party Beneficiaries. Nothing in this Agreement shall be construed to confer any rights upon any party not signatory to this Agreement. 4.15 Binding on Heirs. This Agreement shall be binding upon the parties hereto and their respective heirs, representatives, transferees, successors, and assigns. 4.16 Entire Agreement, Waivers and Amendments. This Agreement incorporates all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the Parties with respect to all or part of the subject matter thereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the Party to be charged. 4.17 Effect of Recitals. The Recitals above are deemed true and correct, are hereby incorporated into this Section as though fully set forth herein, and Seller and Buyer acknowledge and agree that they are each bound by the same. 4.18 Section References. Any reference to any section of this Agreement cited without a decimal includes all sections following the cited section. For example, a reference to Section 5 includes 5.1, 5.1(a), et seq. 4.19 Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way. 05agree/purchase and sale williams 10 4.20 Covenants to Survive Escrow. The covenants and agreements contained in this Agreement shall survive the Close of Escrow. IN WITNESS WHEREOF, the parties hereto have executed this Agreement of Purchase and Sale of Real Property and Escrow Instructions on 6Gf Obw Z. LQO 6 ' "BUYER" "SELLER" BOBBIE G. WILLIAMS AND VALLEE J. CITY OF HUNTINGTON BEACH, a WILLIAMS, TRUSTEES OF THE BOBBIE municipal corporation of the State of G. AND VALLEE J. WILLIAMS TRUST, California U.T.D. 10/20/77 B Mayor By City Cler AP OVED AS TO FORM: VVA City Attorney (01n 0 INITIATED AND APPROVED: Director of Econorn evelopment REVIEWED AND APPROVED: Clqty Administrator 05agree/purchase and sale williams t (7) August 15, 2005 - Council/Agency Agenda - Page 7 Dealers'Association Business Improvement District for Fiscal Year 2005-2006;"and 3. Direct the City Clerk to schedule a public hearing to be held on September 6, 2005, and send copies of the Resolution of Intention, BID Boundary Map, and assessment formula to each business to be assessed. Submitted by the Acting Economic Development Director. Funding Source: Not applicable. E-7. (City Council) Approve Huntington Beach Downtown Business Association Improvement District(BID) 2004-2005 Annual Report -Adopt Resolution of Intention No. 2005-53 to Levy an Annual Assessment for Fiscal Year 2005-2006-Schedule Public Hearing for September 6, 2005 (460.30) — 1. Approve the Huntington Beach Downtown Business Association Improvement District Annual Report for Fiscal Year 2004-2005; 2. Adopt Resolution No. 2005-53— `A Resolution of the City Council of the City. of Huntington Beach Declaring the City's Intention to Levy an Annual Assessment For Fiscal Year 2005-2006 within the Huntington Beach Downtown Business Improvement District; and 3. Direct the City Clerk to schedule a public hearing to be held on September 6, 2005, and send copies of the Resolution of Intention, BID Boundary Map, and assessment formula to each business to be assessed. Submitted by the Acting Economic Development Director. Funding Source: Not applicable. E-8. (Redevelopment Agency) Receive and File Annual Report of the Huntington Beach Redevelopment Agency for Fiscal Year 2003-2004 for Submission to the State Controller (400.20) — Receive and file the 2003-2004 State Controller's Report. Submitted by the Acting Assistant Executive Director. Funding Source: Not Applicable. (Report is submitted to the State Controller as required by §33080.1 of the State of California Health and Safety Code ("Redevelopment Law").) E-9. (City Council) Adopt Reso ution Number 2005-54 Declaring the Disposition of Three City Owned Parcels Located Near the Southeast Corner of Goldenwest Street and Garfield Avenue —Accept Offer to Purchase from B. G. Williams — Convey Ownership - Prepare, Execute and Process all Necessary Documents ( . ) — 1. Adopt Resolution Number 2005-54— "A Resolution of the City Council of the City of Huntington Beach Declaring the Disposition of Certain Surplus Property,-"and 2. Accept the Offer to Purchase City owned properties from B. G. Williams dated July 6, 2005; and 3. Authorize the Mayor and City Clerk to execute all necessary documents to convey ownership of those certain properties; and 4. Authorize the Director of Economic Development to prepare, execute, and process all necessary documents to facilitate the transfer of ownership of those certain properties. Submitted by the Acting Economic Development Director. Funding Source: Not applicable. E-10. (City Council) Adopt Resolution Number 2005-55 Establishing Tax Proceeds for Fiscal Year 2005-2006 Gann Annual Appropriation Limit ( . ) —Adopt Resolution Number 2005-55 "A Resolution of the City Council of the City of Huntington Beach Establishing the Appropriation Limit for Fiscal Year 2005-2006"of $512,161,427. Submitted by the Finance Officer. Funding Source: Not applicable. E-11. (City Council) Adopt Resolution No. 2005-56 Levying a Retirement Property Tax Rate for Fiscal Year 2005-2006 of$0.00696 Per $100 of Assessed Valuation Representing Council/Agency Meeting Held: OS Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied C' y ler s Sig ture Council Meeting Date: 8/15/2005 Departmen Number: ED 05-21 CITY OF HUNTINGTON BEACH _ REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR CITY COUNCIL EMBERS Q oJ-�c SUBMITTED BY: PENE COPE CULBRETH-GRAFT CITY ADMINISTRATOR pC:)f; ; �NG DPREPARED BY: ROBERT F. B RDSLEY, ACTI �OMIC DEVE PME r- DIRECT v SUBJECT: DECLARATION AND DISPOSITION OF THREE SURPLUS CITY OWNED PARCELS LOCATED NEAR THE SOUTHEAST CORNER OF GOLDENWEST STREET AND GARFIELD AVENUE Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Adopt a resolution declaring three City owned properties surplus. These properties consist of two small parcels that are remnants from completed street widening projects and one undeveloped alleyway, all of which are located near the southeast corner of Goldenwest Street and Garfield Avenue. The Council is further asked to accept an Offer to Purchase for the three parcels from the adjacent property owner Mr. B.G. Williams for $143,000. Funding Source: Not applicable. Recommended Action: Motion to: 1) Adopt Resolution No. "A Resolution of the City Council of the City of Huntington Beach Declaring The Disposition Of Certain Surplus Property". 2) Accept the Offer to Purchase city owned properties from B.G. Williams dated July 6, 2005. 3) Authorize the Mayor and City Clerk to execute all necessary documents to convey ownership of those certain properties. 4) Authorize the Director of Economic Development to prepare, execute, and process all necessary documents to facilitate the transfer of ownership of those certain properties. Alternative Action(s): 1) Do not adopt Resolution No. 2) Adopt Resolution No. OuS-S and do not accept the offer to purchase from B.G. Williams and direct staff to renegotiate the sale terms of the city owned property. � — 1 REQUEST FOR ACTION MEETING DATE: 8/15/2005 DEPARTMENT ID NUMBER:ED 05-21 Analysis: As a result of street widening projects completed between mid-1997 and late- 1998, the City currently owns two small remnant properties (APN's 111-130-11 & 111-130- 12) that on their own are not developable. Separately, the City acquired a real property interest in an undeveloped alleyway in the same area (APN 111-130-28) from the Southern California Water Company on January 6, 1964. The remnant properties and undeveloped alleyway have inherent value to the adjacent property owner who wishes to aggregate the smaller parcels into a larger more developable parcel. This adjacent property owner, Mr. B.G. Williams, has offered to purchase all three City owned properties for $143,000 (see Attachment 2). Pursuant to the City's Surplus Property Ordinance, Real Estate Services evaluated the above real property interests and determined that no City departments have a need for the parcels. The parcels were appraised to establish the minimum acceptable value to be used in determining the acceptability of Mr. Williams' Offer to Purchase. Real Estate Services evaluated Mr. Williams' Offer to Purchase, and determined that the offer exceeds the fair market value along with the costs of preparing the land for sale (including all related expenses and appraisal fees, as required by the City's Surplus Property Ordinance). Staff therefore recommends that the City Council adopt a resolution declaring the subject parcels surplus property (see Attachment 1). Staff additionally recommends that the Council authorize the sale of these properties to Mr. Williams under the terms of his Offer to Purchase. Environmental Status: Attachment(s): Resolution and Offer to Purchase City Clerk's Page Number No. Description 1. Resolution No. SOS--S , "A Resolution of the City Council of the City of Huntington Beach Declaring The Disposition Of Certain Surplus Property" 2. Offer to Purchase from Mr. B.G. Williams G:\Mike\l5 Aug 05 RCA Surplus Property Resolution.doc -2- 8/2/2005 4:00 PM ATTACHMENT # 1 RESOLUTION NO. 2 0 0 5-5 4 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE DISPOSITION OF CERTAIN SURPLUS PROPERTY WHEREAS, the City of Huntington Beach is the owner of certain real property bounded by Goldenwest Street and Garfield Avenue and more particularly set forth on Exhibit A which is attached hereto and incorporated by this reference and consist of Assessor's Parcel Numbers 111-130-11, 111-130-12, and 111-130-28; and The City acquired said parcels as follows: APN 1 I 1-130-11 and APN I I 1-130-12 are remnants and fee acquisitions as a result of the widening of Goldenwest Street at Garfield Avenue. APN 111-130-28 fee interest was acquired from the Southern California Water Company as part of the certain Resolution No. 1905 passed and adopted by the City Council January 6, 1964; and The City Administrator has recommended to this Council that said property be declared Surplus Property ("the Surplus Property"); and Huntington Beach Municipal Code Section 3.06.010(b) authorizes the City to dispose of Surplus Property, and sets out the procedures therefore, NOW, THEREFORE, the City Council of the City of Huntington Beach does find, determine and resolve as follows: l. That the real property described above is surplus and the public interest and necessity require the disposition thereof. 2. All parcels have been appraised to establish the fair market value. 3. The costs incurred in preparing the land for sale including all related expenses and appraisal fees have been added to and made a part of the value to be paid on the sale of the Surplus Property. 4. The Surplus Property is to be first offered for sale to the adjacent property owner; if there exists no interest, it then will be made available to the general public through a highest sealed bid process subject to a declared reserve. 5. The Surplus Property described herein is to be sold for cash. 05reso/surplus property 1 Reso. 2005-54 6. The City Administrator is hereby authorized and directed to execute all documents and take all steps necessary to dispose of such Surplus Property, pursuant to the determinations of this Council and the procedures set forth in Chapter 3.06 of the Huntington Beach Municipal Code. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 1 5th day of August 1200 5 Or REVIEWED AND APPROVED: APPROVED AS TO FORM: ity Admimstrator 71 ' Attome ,1 20l o S R�Ta� T Anof -�41� V ED irector Economic Development 05reso/surplus property 2 J ItCrAMLV f 1/1 IIV< .:?UNTY ASSESSOR Our. PURPOSES k r. :If ASSESSOR MARES NO GUARANTEE AS TO 1 !S ACCURACY NOR ASSU,ES ANY L IA814 1 rr 1 1 1— 1 jR OTHER USES. NOT TO BE REPRODuC£D. .'.L RIGHTS RESERVED. COPYRIGHT ORANGE COUNTY ASSESSOR 10JO I' = 100' 14 STEWART (SNELTZER AVENUE STREET p �' ee f.s I J GARF/E D STREET I b = I I I 26 ' I 1 e t r6 nl r r! 221 r/ 1O fs 14 Tt Te n Te 19 N r0 � � >• ; 130 29 N R 28 1.11 AC av I as' O e I A I 30 a cc I.79B SAC. T I DD/T/ON • a sw• pr us' (n GOLDEN WEST x STREET 0 s 1 § N 1 O 159-51 159-52 o MARCH 1951 GARFIELD STREET ADD1r1O1V M.M. 7-27,28. NOTE - ASSESSOR'S BLOCK 6 ASSESSOR'S AIAP PARCEL NUMBERS BOOK 111 PAGE 13 SHOWN IN CIRCLES COUNTY Of ORANGE 1 Res. No. 2005-54 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 15th day of August, 2005 by the following vote: AYES: Hansen, Coerper, Sullivan, Hardy, Green, Bohr, Cook NOES: None ABSENT: None ABSTAIN: None ity Clerk and ex-offigo Clerk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 07/06/2005 10: 48 7148406751 S AND C PAGE 02 B. G. Williams 4952 Warner Avenue, Suite 223 Huntington Beach, CA 92649-5505 714.840.0751 July 6, 2005 Mr. Mike Heineke City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re: 20' Portion of Lot 12, Garfield Street Addition & 10' Alley (AP #111-130-28) Dear Mr. Heineke: We own the property adjoining the above subject property (see sketch enclosed). The total square footage of these parcels approximate.5,040 square feet. Please consider this our offer to purchase the above referenced sub standard sized parcels. Included in the purchase would be the release of a 4' easement that runs parallel to Garfield adjacent to the subject parcel. Our offer for this property is $143,000.00 Please give this offer consideration at your earliest convenience as we are developing plans for our property and need to know how to plan around the City's ownership of these parcels. Sincerely, B.G. Williams JUL-06-2005 11: 14 71494OS751 P.02 07/06/2005 10: 38 7146406751 5 AND C PAGE 03 • • . o�Q l lti�T" 57 88 /a/ //7 ' { Z07- I r°� Cor 9 t I LiaLr6 � I I lrof 7 S°� I I So 0 o S G r ) v- ( iv 11 7co FT' ti y Aso s� - TUL-06-2005 11:04 714840G751 98X P.03 RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Declaration and Disposition of Surplus City Owned Property COUNCIL MEETING DATE: August 15, 2005 ............... RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached Not Applicable ❑ Attached ❑ Contract/Agreement (w/exhibits if applicable) Not Applicable Signed in full by the City Attorney) Attached ❑ Subleases, Third Party Agreements, etc. Not Applicable (Approved as to form by City Attorney Certificates of Insurance (Approved b the City Attome Attached ❑ ( pP Y Y Y) Not Applicable Attached ❑ Financial Impact Statement (Unbudget, over $5,000) Not Applicable Attached ❑ Bonds (If applicable) Not A plicable Attached ❑ Staff Report (If applicable) Not Applicable Commission, Board or Committee Re ort If applicable Attached El p ( PP ) Not Applicable s/Conditions for Approval and/or Denial Attached ElFindin 9 PP Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FOR A E Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk ( ) (} EXPLANATION FOR RETURN OF ITEM. Only)(Below Space For City Clerk's Use RCA Author: Heineke (5544) 1