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HomeMy WebLinkAbout1996-10-07 City CouncilCity of Palo Alto City Manager’s Report TO: FROM: DATE: SUBJECT: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES OCTOBER 7, 1996 CMR:416:96 OFFER AND AGREEMENT TO PURCHASE REAL PROPERTY -- MEADOWS WELL SITE, 3896 DUNCAN PLACE REOUEST This report transmits an Offer and Agreement to Purchase the Meadows Well site at 3896 Duncan Place and recommends that Council accept the high bid in the amount of $329,025 for the purchase of the site. RECOMMENDATION Staff recommends that Council accept the high bid in the amount of $329,025 for the purchase of the Meadows Well site at 3896 Duncan Place by: Authorizing the Mayor to execute the Offer and Agreement to Purchase Real Property reflecting the high bid submitted by Jeffrey T. Watt and Gwen G. Liang (exact vesting to be determined prior to opening escrow), and the Grant Deed and any other documents necessary to accomplish the conveyance of the property. The documents will be placed into escrow to accomplish the sale. Approve the attached Budget Amendment Ordinance to receive funds from the sale of the property. POLICY IMPLICATIONS The sale of the Meadows Well site does not represent any change to existing City policies. DISCUSSION On June 10, 1996, Council approved a Request for Bid Proposals (RFBP) for the sale of the Meadows Well site, and directed staff to solicit proposals. In June, the RFBP Information CMR:416:96 Page 1 of 3 Flyers were sent to persons on the Surplus Property Mailing list and local realtors; and advertisements of the sale of the property were placed in the Palo Alt0 Weekly, Palo Alto Daily News, and San Jose Mer.cury. In response to this advertising, over fifty RFBP packages were mailed or given to interested parties. Terms of the Offering: The major terms of the offering as contained in the RFBP for the sale of the Meadows Well site were as follows: 1.Minimum bid of $200,000. Sealed written bids, accompanied by a good faith deposit in the amount of $2,000, to be opened on Tuesday, September 10, 1996. Following opening of the written bids, oral bids to be accepted beginning at 5 percent above the highest written bid. Only those submitting written bids were allowed to participate in oral bidding. o Within seven days following notification from the City to the qualified high bidder, that bidder to pay City the difference between the $2,000 good faith deposit and 20 percent of the total amount bid. o Following acceptance of the bid by the City Council, escrow to be opened, and Buyer to pay the balance of the purchase price through escrow within 90 days. 5.Buyer to pay all title and escrow costs. Buyer is responsible for the demolition and removal of any remaining well equipment and any other facilities on the site. Bids Received On September 10, 1996, the following written bids were received: Bidder Bid Amount 2. 3. 4. 5. David Bertelson N. Chung & Minda S. Sizto Norman J. Hart Wellswood Development Jeffi’ey T. Watt & Gwen G. Liang $200,000 $208,000 $225,000 $251,000 $310,500 CMR:416:96 Page 2 of 3 Oral bids were then accepted at $326,025 (5 percent above the highest written bid). The highest oral bid received was $329,025 submitted by Jeffrey T. Watt and Gwen G. Liang, who then submitted the required 20 percent of high bid ($65,805) as set forth in the Offer and Agreement to Purchase Real Property. The Offer and Agreement to Purchase Real Property reflecting the high bid submitted by Jeffrey T. Watt and Gwen G. Liang is attached. FISCAL IMPACT Proceeds from the Sale On June 10, 1996, Council approved a motion that 25 percent of the purchase price for the Meadows Well site be placed in the City’s Housing In-Lieu Residential Fund. Therefore, $82,256 of the $329,025 received for this sale will go to the Housing In-Lieu Residential Fund. The remaining $246,769 will go to the General Fund Budget Stabilization Reserve. ENVIRONMENTAL ASSESSMENT Pursuant to Article 19, Section I5312 of the California Environmental Quality Act (Surplus Government Property Sale), the sale of City property ~s categorically exempt; therefore, no environmental impact assessment is necessary. ATTACHMENTS Offer and Agreement to Purchase Real Property Budget Amendment Ordinance PREPARED BY: Janet Freeland, Senior Financial Analyst Dep/uxty City Manager, A~,d~ai~istrative Se~/i~s ~ Neming ~/ ~.y Manager CC:Elizabeth Indergand Walnut Grove Homeowners Association Carol and William Morrison CMR:416:96 Page 3 of 3 PARCEL NO: 147-25-039 ~ PROJECT: Meadows Well Site OFFER AND AGREEMENT TO PURCHASE REAL PROPERTY (Full Cash Payment) SELLER:, CITY ,OF PASO ALT,0 In consideration of SELLER’S proposal to sell the real property described and shown on the form of Grant Deed labeled Exhibit A, attached hereto, by competitive bids to be received September 10, 1996, BIDDER agrees to purchase said real property for the sum of: H{Arq Or~_EO AND -[’-E.H (Amount in words) (Amount in numbers) and herewith, in accordance with subparagraph 7 below, gives SELLER a good faith deposit (Proposal Deposit) in the amount of $ 2,000.00. This bid is conditioned upon and made with the understanding that:. Upon notice from SELLER’S Real Estate Division that BIDDER is the qualified high bidder, BIDDER shall within 7 days after said notice pay SELLER an additional sum equal to the difference between the good faith deposit and 20% of the total amount bid. Should BIDDER, for any reason whatsoever, fail to pay to SELLER said additional amount, said good faith deposit shall be retained by SELLER.as set forth in subparagraph 7 below. Within twenty-four (24) days after BIDDER has paid SELLER the additional sum referred to in Paragraph 1 above, SELLER shall consider this bid and accept or reject it. o Should this bid be rejected by SELLER or should SELLER fail to accept or reject this bid within the time period set forth in Paragraph 2 above, BIDDER may withdraw this bid and all money paid to SELLER by BIDDER shall be refunded to BIDDER. If this bid be accepted by SELLER, said good faith deposit and the additional sum paid to SELLER as provided in Paragraph 1 above shall constitute a portion of the 5. agreed purchase, price paid to SELLER outside of escrow, with the balance to be paid through escrow as ..set forth below. If this bid is accepted by SELLER, SELLER’S Real Estate Division shall open an escrow with North American Title Company, 431 Florence Street, Palo Alto, Ca. The opening date of escrow shall be the date upon which the escrow holder named above:receives written authorization from SELLER’S Real Estate Division to open said escrow. " . The balance of the purchase price-shall be paid through escrow and the escrow period shall run for a period of ninety (90) days from the opening date of escrow. SELLER shall deliver to said escrow a Grant Deed in the form of Exhibit A and such other documents as are required to transfer title subject only to those exceptions shown in the attached Preliminary Report NO. 4103042, dated March 19, 1996, labeled Exhibit B and made a part hereof, and any reservations, covenants and conditions, if any, set forth in the Grant Deed referred to above. Prior to the date set for close of escrow, . BIDDER shall deposit into escrow the difference between the total purchase price and the total sum paid to SELLER outside of escrow. The close of escrow may occur prior to the time period set forth above ~f it is mutually desirable to SELLER’S Real Estate Division and BIDDER. However, said time periods shall not be extended unless authorized in writing by SELLER’S Real Estate Division staff. Close of escrow shall be the date that the documents are filed for recordation with the County Recorder. The good faith deposit and the additional sum referred to in Paragraph 1 above shall be.in the form of a cashier’s or certified check made payable to the City of Palo Alto. The good faith deposit must be submitted together with this Agreement. Said good faith deposit shall be held by the SELLER as a guarantee securing the obligations BIDDER agrees to.assume in this Agreement. BIDDER agrees that in the event that this Offer and Agreement to Purchase Real Property is accepted by SELLER and BIDDER fails to meet the terms hereof, said good faith deposit and the additional sum referred to in Paragraph 1 represent a fair and reasonable estimate of SELLER’S costs in connection with this transaction, and BIDDER further agrees that. said sum shall be retained by SELLER as compensation for said costs. Title insurance on the subject property shall be supplied by North American Title Company at Buyer’s expense. 2 o 10. Title shall be vested as specified in Paragraph 10 below and shall be s.ubject to the exceptions shown in Pr~eliminary Report No. 4103042, and any reservations, conditions or covenants, if any, set forth in the Grant Deed referred to in Paragraph 6 above. If SELLER is unable to deliver title as specified herein prior to the date set for close of escrow, BIDDER shall have the option to: oO Ao Accept title in the condition in which it exists. Acceptance of such title by BIDDER shall constitute full satisfaction of the terms of this Agree. ment as they relate to title, and SELLER shall in no way be liable for its failure to deliver title as set forth herein, or B.Terminate this Agreement by delivering written notice thereof to SELLER’S REAL ESTATE DIVISION 250 Hamilton Avenue Palo Alto, CA 94301 and to the escrow holder. Thereupon, all monies paid by BIDDER hereunder shall be refunded to BIDDER, and SELLER and BIDDER shall be relieved of further obligations to one an0~her. In the event of termination as provided in this subparagraph, all escrow and title fees incurred shall be paid by SELLER, andBIDDER shall not be liable therefor. Neither Subparagraph 8A nor 8B hereinabove shall apply if SELLER delivers better title than that set out in Paragraph 6 above. In addition to the amount specified in Paragraph 6 above, BIDDER shall deposit into escrow a sum sufficient to pay the total cost of title insurance, escrow fees, Real Property Transfer Tax, and all recording fees applicable to this transaction. Title to the real property conveyed pursuant to this Agreement shall be vested in BIDDER as set forth below. (Please type or print clearly. An example of one of the several ways title may be vested is: John Doe and Jane Doe, husband and wife, as joint tenants.). 11. 12. 13. This Offer and Agreement to Purchase Real Property may be withdrawn at any time prior to the time’set for opening bids except as provided under Paragraph 3 above may not be withdrawn after the time set for such opening. SELLER reserves the right to reject any or all bids and to accept that bid which will, in its opinion, best serve the public interest. ,. All documents, correspondence, ~nd communi~ations concerning this transaction shall be directed as follows: TO: BIDDER TO: SELLER (Name) (Address) Telephone: CITY OF PALO ALTO c/o Real Estate Division 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94301 Attn: Martha Miller Time is of the essence of this Agreement. SELLER’s Representations and Warranties 1. Excepting any matters shown in the Preliminary Report, no leases, occupancies, tenancies, or licenses exist that affect the property. 2. To the best of SELLER’s knowledge, there are not presently any actions, suits, or proceedings .pending or threatened against or affecting the property or SELLER’s interest in the property or its use or that would affect SELLER’s ability to perform under this agreement. 3. The.property shall be purchased by BIDDER :’AS IS," and BIDDER shall purchase the property solely upon the basis of BIDDER’s own investigation and not in reliance upon any representations by SELLER or SELLER’s agents that are not contained in the agreement. Without modifying the generality of the foregoing, SELLER specifically disclaims any knowledge of the condition of the well or well seal located on the property, and BIDDER shall conduct such investigations of the well and well seal as BIDDER deems necessary or advisable to ascertain their condition and suitability for development. BIDDER hereby submits this offer witch full cognizance of the terms and conditions contained herein. SIGNATURE(S) OF BIDDER(S) SELLER has considered and accepts this offer: Date SELLER: CITY OF PALO ALTO By MAYOR, CITY OF PALO ALTO APPROVED AS TO FORM: CITY ATTORNEY By ATTEST: CITY CLERK By APPROVED AS TO AUDIT: CITY AUDITOR By RECOMMENDED FOR APPROVAL: DEPUTY CITY MANAGER By MANAGER, REAL PROPER.I’Y; EXHIBIT A of OFFER AND AGREEMENT TO PURCHASE Recorded at no charge in accordance Government Code Section" 6103 at the request of, and when record- ed return City of Palo Alto/Real Estate 250 Hamilton Avenue PO Box 10250 Palo Alto, CA 94303 SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY A.P. No.: 147-25-039 Project No.: CF 23/17-95/14 Project: Meadows Well Sale of Surplus Property iG R A N T D E FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, THE CITY OF PALO ALTO, a municipal corporation, does hereby grant to: the real property in the City of Palo Alto, County of Santa Clara, State of California, described as: See Exhibit A attached hereto and made.a part hereof for legal description. Excepting therefrom an easement and right of way for construction and maintenance of public utilities and improvements together with the right of ingress and egress thereon and.the right to pass and repass over, along, across, under, and upon said easement whenever and wherever grantee desires for the purposes set forth herein, in perpetuity, in, over, under, across, along, and upon that certain property more particularly described as Parcel 2 and Parce! 3 in Exhibit A, as shown on the map in Exhibit B, attached hereto and by this reference incorporated herein. GRANTOR: City of Palo Alto, a Municipal Corporation Dated:By: ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SANTA CLARA On ....1996, before me, (NOT~Y) personally appeared SIG~R (S) personally known to me -or- proved to me on the basis of satisfactory evidence to be the person(s) whose name is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same 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 instrument. WITNESS my hand and official seal. Approved as to Form Sr. Asst. City Attorney By Approved as to Description Public Works/Engineering APPROVALS NOTARY ’ S SIGNATURE Approved as to Content ASD/Real Property Division Approved as to Content Utilities/Electric By.By. A.P.NO. 147-25-39 MARCH 26,1996 REQUESTED BY: MARTHA MILLER PREPARED BY: JAMES T. BOURQUIN CHECKED BY: JAY E. REMLEY, SR. APPROVED BY: JAMES D. KIEHL PARCEL 1 All that certain real property situated in the City of Pato Alto, County of Santa Clara, State of California more particularly described as follows; All of Lot 7 of Block 2 as shown on that certain map entitled "Tract No. 1128 THE MEADOWS UNIT NO. 1", recorded March 16th, 1953 in Book 41 of Maps, at Page 56 of Santa Clara County Official Records. Said Parcel 1 contains 8,307 square feet (0.1907 acres) more or less. PARCEL 2 PUBLIC UTILITY EASEMENT A portion of real property situated in the City of Palo Alto, County of Santa Clara, State of California more particularly described as follows; Beginning at the most northeasterly comer of Lot 7 of Block 2 as shown on that certain map entitled "Tract No. 1128 THE MEADOWS UNIT NO. 1", recorded March 16th, 1953 in Book 41 of Maps, at Page 56 of Santa Clara County Official Records; THENCE, along the easterly line of said Lot 7, South 2° 41’ 13" East 100.82 feet to Northwesterly line of a 20 foot wide drainage easement as shown on said Tract No. 1128; THENCE, along the northwesterly line of said drainage easement, South 58° 43’ 35" West 27.98 feet to the northeasterly line of a 5.00 foot wide Public Utility Easement as described in the "RESOLUTION 2474, Book 2727 Page 218" on file with the City of Palo Alto Clerks office, and as shown on said Tract No. 1128; TttENCE, along the northeasterly line of said 5.00 foot Public Utility Easement, North 51 ° 36’ 25" West 18.13 feet; THENCE, North 58° 43’ 35" East 32.15 feet; THENCE, northwesterly and parallel with the easterly line of said Lot 7, North 2° 41’ 13" West 1 of 2 87.63 feet to the southerly fight-of-way line of Duncan Place (formerly Oliver Place), said point being on a non-tangent curve, concave northerly having a radius of 70.00 feet and a radial beating of South 5° 31’ 40" West; THENCE, easterly 10.03 feet along said curve through a central angle of 8° 12’ 48" to the Point Of Beginning. Said Parcel 2 contains 1453 square feet more oi- less. PARCEL 3 PUBLIC UTILITY EASEMENT A portion of real property situated in the City of Palo Alto, County of Santa Clara, State of California more particularly described as follows; Beginning at the most northwesterly comer of Lot 7 of Block 2 as shown on that certain map entitled "Tract No. 1128 THE MEADOWS UNIT NO. 1", recorded March 16th, 1953 in Book 41 of Maps, at Page 56 of Santa Clara County Official Records; THENCE, along the northwesterly line of said Lot 7, South 33° 02’ 06" West 6.00 feet; THENCE, South 56° 57’ 54" East 6.00 feet; THENC.E, North 33 ° 02’ 06" East 6.26 feet; to a point on the southerly right-of-way line of Duncan Place (formerly Oliver Place), said point being on a non-tangent curve, concave northerly having a radius of 70.00 feet and a radial bearing of South 28° 06’ 57" West; THENCE, northwesterly 6.00 feet along said curve through a central angle of 4°55’ 01" to the Point Of Beginning. Said Parcel 3 contains 36.15 square feet more or less. Said Parcels 1, 2 and 3 are shown on attached map Exhibit "B" and made a part hereof. END OF DESCRIPTION JDK:jtb . LEGAL: 1472539 PLAT: 1472539.DWG EXHIBIT "A" 2 of 2 A.P.NO. 147-25-37 TRACT NO. 1 THE MEADOWS = 20’ L = 9,52 DELTA = 27" 15’ 58" L = 10.57" DELTA = 8" 38’ 55" "RESOLUTION 2474 BOOK 2727 PAGE 818" ]ELTA =48" ,,,R = 70’L ~.03’ ~ PARCEL 2 ,, ~" --~ ~.’~~"10.0~ ~~ ~,/g A,P.NO 147-~5-40 PARCEL 1 z ~~/ 3896 DUNCAN PLACE ~ ~/%~~,~S./ / N?!_TO_SCA’E \/P,O.B. PARCEL__L.L~ ~"-BELTA = ~ 5~ o1~ ~N 51" 36’ 25" W 15.00’ IPLAT TO ACCOMPANY DESCRIPTIONI P.U.E.L = PUBLIC UTILITY EASEMENT LINE EXHIBIT "B" DRAWN BY: J. KIEHL I CHECKED BY: J, BOURQUIN CHECKED BY: J. REMLEY LEGAL FILENAME: 1472539 DRAWING FILENAHE: 1472539.DWG LOT 7 BLOCK 2 TRACT NO. 1128 THE MEADOWS UNIT NO. 1 CITY OF PAL0 ALTO. CALIFORNIA SCALE: I" = 40’ P.L.S. 715~ APPROVED: REVISION: (4) 3126196 EXHIBIT B of OFFER & AGREEMENT TO PURCHASE North American Title Company 431 FLORENCE STREET, #i00 PALO ALTO, CALIFORNIA 94301 (415) 325-0330 DATE M.ARCH 19, 1996 CITY OF PALO ALTO 250 H/LMILTON AVE. 4TH FL. PALO A.LTO, CA 94301 ATTN: MARTHA MILLER ORDER NO. PROPERTY ADDRESS : 3896 DUNCAN PI_~ACE PALO ALTO, CA 4103042 PRELIMINARY REPORT IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, NORTH AMERICAN TITLE COMPANY, INC. HEREBY REPORTS THAT IT IS PREPARED TO ISSUE, OR CAUSE TO BE ISSUED, As OF THE DATE HEREOF, A POLICY OR POLICIES OF TITLE INSURANCE FROM COMMONWEALTH LAND TITLE INSURANCE COMPANY, A PENNSYLVANIA CORPORATION, DESCRIBING THE LAND AND THE ESTATE OR INTEREST THEREIN HEREINAFTER SET FORTH, INSURING AGAINST LOSS WHICH MAY BE SUSTAINED BY REASON OF ANY DEFECT, LIEN OR ENCUMBRANCE NOT SHOWN OR REFERRED TO AS AN EXCEPTION BELOW OR NOT EXCLUDED FROM COVERAGE PURSUANT TO THE PRINTED SCHEDULES, CONDITIONS AND STIPULATIONS OF SAID POLICY FORM. THE PRINTED EXCEPTIONS AND EXCLUSIONS FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH IN EXHIBIT "A" ATTACHED. COPIES OF THE POLICY FORMS SHOULD BE READ. THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT. THIS REPORT (AND ANY SUPPLEMENTS OR AMENDMENTS THERETO) IS ISSUED SOLELY FOR THE PURPOSE OF FACILITATING THE ISSUANCE OF A POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF A POLICY OF TITLE INSURANCE, A BINDER OR COMMITMENT SHOULD BE REQUESTED. PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW ANDTHE EXCEPTIONS AND EXCLUSIONSSET FORTH IN EXHIBIT AOF THIS REPORT CAREFULLY.THE EXCEPTIONS AND EXCLUSIONS ARE MEANTTO PROVIDE YOU WITH NOTICE OFMATTERS WHICH ARE NOTCOVERED UNDER THE TERMS OFTHE TITLE INSURANCE POLICYAND SHOULD BE CAREFULLY CONSIDERED. IT IS IMPORTANT TONOTE THAT THIS PRELIMINARYREPORT IS NOTA WRITTEN REPRESENTATION AS TOTHE CONDITION OF TITLEAND MAY NOT LIST ALL LIENS,DEFECTS,AND ENCUMBRANCESAFFECTING TITLE .TO THE LAND. EFFECTIVE MARCH I, 1996 AS OF 7:30 A.M. A!qNA MARIE CREAL (ESCROW OFFICER) North American Title Company THE FORM OR FORMS OF POLICY 0~ TITLE INSURANCE CONTEMPLATED BY THIS REPORT IS: American Land Title Association Loan Policy - 1992 THE ESTATE OR INTEREST IN THE LAND HEREINAFTER TO COVERED BY THIS REPORT IS: FEE SIMPLE DESCRIBED OR REFERRED TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: THE CITY OF PALO ALTO, A MUNICIPAL CORPORATION Page 2 of !0 4103042 North American Title Company THE LAND REFERRED TO HEREIN ~S SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SANTA CLARA, CITY OF PALO ALTO, AND IS DESCRIBED AS FOLLOWS: LOT 7 IN BLOCK 2 AS SHOWN UPON THAT CERTAIN MAP ENTITLED, "TRACT NO. 1128, THE MEADOWS, UNIT NO. i" WHICH MAP WAS FILED FOR RECORD IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, ON MARCH 16, 1953 IN. BOOK 41 OF MAPS,PAGE 56. ASSESSOR’S PARCEL NUMBER: 147-25-039 Page 3 of i0 4103042 North American Title Company ON THE DATE HEREOF EXCEPTION~ TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS CONTAINED IN SAID POLICY WOULD BE AS FOLLOWS: o o o o ° Property taxes, including any assessments collected with taxes, to be levied for ~he fiscal year 1996-1997 which are a lien not yet payable. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code of the State of California. TAXES FOR THE FISCAL YEAR 1995-96 WERE NOT ASSESSED. AN EASEMENT FOR THE PURPOSES SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SHOWN OR AS OFFERED FOR DEDICATION ON THE RECORDED MAP SHOWN BELOW: EASEMENT PURPOSE: AFFECTS : PUBLIC UTILITIES EASEMENT SOUTHWESTERLY I0 FEET EASEMENT PURPOSE: AFFECTS : DRAINAGE EASEMENT MOST SOUTHERLY 20 FEET Any adverse claim based upon the assertion that some portion of said land has been brought within the boundaries thereof by an avulsive movement of the ADOBE CREEK, or has been formed by accretion to any such portion. "SDch rights and easements for navigation, fishery or recreation which may exist over that portion of the above described property lying beneath the waters of Lake ADOBE CREEK." Covenants, conditions and restrictions (deleting therefrom any restrictions based on race, color or creed) as set forth in the document Recorded, Official Records : APRIL 20, 1953 Book : 2623 Page : 357 Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of FIRST mortgage or deed of trust made in good faith and for value. Page 4 of !0 4103042 o o North American Title Company An easement for the purpose shown below and rights incidental thereto as set forth in a document Granted To : SANTA CLA/tA COUNTY FLOOD CONTROL AND WATER CONSERVATION DISTRICT Purpose : FLOOD CONTROL AND/OR STORM WATER DRAINAGE Recorded, Official Records : JANUARY 7, 1958 Book ." 3977 Page :564 Instrument No.:1423099 Affects :SOUTHERLY 20 FEET An easement for the purpose shown below and rights incidental thereto as reserved in a document. Purpose : SANITARY SEWER AND PUBLIC UTILITY Recorded, Official Records : JANUARY 7, 1958 Book :3977 Page :564 Instrument No.:142.3099 Affects :SOUTHERLY 20 FEET Page 5 of I0 4103042 North American Title Company There are no conveyances affecting said land recorded within SIX MONTHS of the date of this report. NOTES: CALIFORNIA ASSEMBLY B~LL 512 ("AB512") IS EFFECTIVE ON JANUARY i, 1990. UNDER AB 512, NORTH AMERICAN TITLE COMPANY, INC. ("NATC") MAY ONLY MAKE FUNDS AVAILABLE FOR MONETARY DISBURSAL IN ACCORDANCE WITH THE FOLLOWING RULES: !.SAME DAY AVAILABILITY - DISBURSEMENT ON THAT DATE OF DEPOSIT IS ALLOWED ONLY WHEN FUNDS ARE DEPOSITED TO NORTH AMERICAN TITLE COMPANY ("NATC") IN CASH OR BY ELECTRONIC TRANSFER (WIRE). BEAR IN MIND THAT CASH WILL BE ACCEPTED FROM CUSTOMERS ONLY UNDER SPECIAL CIRCUMSTANCES AS INDIVIDUALLY APPROVED BY MANAGEMENT. 2. NEXT DAY AVAILABILITY - IF FUNDS ARE DEPOSITED TO NATC BY CASHIER’S CHECKS, CERTIFIED CHECKS, OR TELLER’S CHECKS, DISBURSEMENT MAY BE ON THE NEXT BUSINESS DAY FOLLOWING DEPOSIT. A "TELLER’S CHECK" IS ONE DRAWN BY AN INSURED FINANCIAL INSTITUTION AGAINST ANOTHER INSURED FINANCIAL INSTITUTION (E.G., A SAVINGS AND LOAN FUNDING WITH A CHECK DRAWN AGAINST AN FDIC INSURED BANK). 3. 3-7 DAY AVAILABILITY (REGULATION CC)L. IF THE DEPOSIT IS MADE BY CHECKS OTHER THAN THOSE DESCRIBED IN PA/tAGRAPHS 1 .AND 2 ABOVE, DISBURSEMENT MAY OCCUR ON THE DAY WHEN FUNDS MUST BE MADE AVAILABLE TO DEPOSITORS UNDER FEDERAL RESERVE REGULATION CC. THIS’REQUIRES A "HOLD" ON SOME CHECKS OF 2-5 DAYS OR LONGER IN SOME INSTANCES. PERSONAL CHECKS, DRAFTS, PRIVATE CORPORATION AND COMPANY CHECKS, AND F~UN~DING CHECKS FROM MORTGAGE COMPANIES THAT ARE NOT TELLER’S CHECKS ARE AMONG THOSE CHECKS SUBJECT TO SUCH HOLDS. (FOR FURTHER DETAILS, CONSULT CHAPTER 598, STATUTES OF 1989.) NOTE: THE ABOVE GUIDELINES ARE IN CONFORMITY WITH THOSE ISSUED BY THE DEPARTMENT OF INSURANCE FOR ALL CALIFORNIA TITLE INSURANCE AND CALIFORNIA TITLE COMPANIES. NOTE: ON OR AFTER JULY I, 1985, THE COUNTY RECORDER’S OFFICE WILL CHARGE, IN ADDITION TO THE REGULAR CHARGES, AN EXTRA $20.00 RECORDING FEE, UNLESS A DOCUMENT EVIDENCING A CHANGE OF OWNERSHIP IS ACCOMPANIED BY A PRELIMINARY CHANGE OF OWNERSHIP REPORT. IN LIEU OF SAID REPORT, SIGNED BY THE TRANSFEREE, THE RECORDER WILL ACCEPT AN AFFIDAVIT THAT THE TRANSFEREE IS NOT A RESIDENT OF CALIFORNIA. TITLE BILLINGS WILL BE ADJUSTED TO REFLECT SUCH ADDITIONAL FEES WHEN APPLICABLE. THE CHARGE FOR A POLICY OF TITLE INSURANCE, WHEN ISSUED THROUGH THIS TITLE ORDER WILL BE BASED ON THE BASIC (NOT SHORT TERM) TITLE INSURANCE RATE. Page 6 of i0 4103042 North American Title Company IF ANY OF THE DEEDS OF TRUST SHOWN IN THIS PRELIMINARY REPORT SECURES A REVOLVING CREDIT LOAN, THIS COMPANY WILL REQUIRE PRIOR TO CLOSING THAT : (A) THE BORROWER PROVIDE AUTHORIZATION TO THE LENDER TO FREEZE THE LOAN FROM FURTHER DISBURSEMENTS AND THAT WE BE PROVIDED WITH PROOF THAT THE ACCOUNT HAS BEEN FROZEN AND THE EFFECTIVE DATE OF THE FREEZE; AND, (B)THERE A_RE NO OUTSTANDING CHECK~’UNPAID; ]%ND, (C)SHOULD THE COMPANY BE UNABLE TO ASCERTAIN THAT ONE OR MORE OF THE ABOVE HAVE NOT BEEN COMPLIED WITH, WE WILL WITHHOLD FROM THE PROCEEDS THE MAXIMUM AMOUNT OF THE LOAN OBLIGATION UNTIL SUCH TIME AS WE MAY VERIFY THAT THE PAYOFF WAS SUFFICIENT TO OBTAIN A FULL RECONVEYANCE. THIS REPORT IS SUBJECT TO A CANCELLATION CHARGE AND OR MINIMUM CHARGE AS REQUIRED BY SECTIONS 12404, ET. SEQ., OF THE INSURANCE CODE OF THE STATE OF CALIFORNIA AND RULE NO. 2 OF DEPARTMENT OF INSUR!INCE BULLETIN NO. NS. 35 E. THIS IS A NOTICE OF A WITHHOLDING REQUIREMENT (CALIFORNIA REVENUE AND TAXATION CODE SECTIONS 18662) ON SALES OF REAL PROPERTY. BEFORE THE TRANSACTION CONTEMPLATED BY THIS REPORT CAN BE CLOSED, THE SELLER/BORROWER MUST FURNISH A TAXPAYER IDENTIFICATION NUMBER TO US SO THAT WE CAN FILE AN IRS FORM 1099, OR ITS EQUIVALENT, WITH THE INTERNAL REVENUE SERVICE. THIS PROCEDURE IS REQUIRED BY SECTION 6045 OF THE INTERNAL REVENUE SERVICE. IN ACCQRDANCE WITH SECTION 18662 OF THE REVENUE AArD TAXATION CODE, A BUYER MAY BE REQUIRED TO WITHHOLD AN AMOUNT EQUAL TO 3-1/3 PERCENT OF THE SALES PRICE, IN THE CASE OF A DISPOSITION OF CALIFORNIA REAL PROPERTY INTEREST BY EITHER: I. A SELLER WHO IS AN INDIVIDUAL WITH A LAST KNOWN STREET ADDRESS OUTSIDE OF CALIFORNIA OR WHEN THE DISBURSEMENT INSTRUCTIONS AUTHORIZE THE PROCEEDS BE SENT TO A FINANCIAL INTERMEDIARY OF THE SELLER, OR 2. A CORPORATE SELLER WHICH HAS NO PERMANENT PLACE OF BUSINESS IN CALIFORNIA, OR FOR FAILURE TO WITHHOLD, THE BUYER MAY BECOME SUBJECT TO A PENALTY IN AN AMOUNT EQUAL TO THE GREATER OF i0 PERCENT OF THE AMOUNTREQUIREDTO BE WITHHELD OR FIVE HUNDRED DOLLARS ($500). HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION INCLUDED IN THE CALIFORNIA STATUTES REFERENCED ABOVE, NO BUYER WILL BE REQUIRED TO WITHHOLD ANY AMOUNT OR BE SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD IF: !.THE SALES PRICE OF THE CALIFORNIA REAL PROPERTY CONVEYED DOES NOT EXCEED ONE HUNDRED THOUSAND DOLLARS ($i00,000),OR Page 7 of i0 4103042 North American Title Company 2. THE SELLER EXECUTES A WRITTEN CERTIFICATE, UNDER PENALTY OF PERJURY, CERTIFYING THAT THE SELLER ISA RESIDENT OF CALIFORNIA, OR IF A CORPORATION, HAS A PERMANENT PLACE OF BUSINESS IN CALIFORNIA OR 3. THE SELLER, WHO IS AN INDIVIDUAL, EXECUTES A WRITTEN CERTIFICATE, UNDER PENALTY OF PERJI/RY, THAT THE CALIFORNIA REAL PROPERTY BEING CONVEYED IS THE SELLER’S PRINCIPAL RESIDENCE .(AS DEFINED IN SECTION 1034 OF THE INTERNAL REVENUE’CODE). THE SELLER IS SUBJECT TO PENALTY FOR KNOWINGLY FILING A FRAUDULENT CERTIFICATE FOR THE PURPOSE OF AVOIDING THE WITHHOLDING REQUIREMENT. THE CALIFORNIA STATUTES REFERENCE ABOVE INCLUDE PROVISIONS WHICH AUTHORIZE THE FRANCHISE TAX BOARD TO GRANT REDUCED WITHHOLDING AND WAIVERS FROM WITHHOLDING ON A CASE-BY-CASE BASIS. Page 8 of i0 4103042 North American Title Company IN THE EVENT THE BUYER REQUIRES WITHHOLDING OF THE 3-1/3 PERCENT OF SALES PRICE FROM THE SELLERS PROCEEDS, THE BUYER IS REQUIRED TO FILE COPY A OF FORM FTB597 WITH THE FRANCHISE TAX BOAR!] ALONG WITH THE WITHHOLDING AMOUNT DUE NO LATER THAN THE 20TH DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH THE WITHHOLDING OCCURRED, UNLESS THE SELLER HAS REQUESTED A WAIVER. IF THE SELLER HAS REQUESTED A WAIVER, THE FRANCHISE TAX BOARD, WITHIN 45 DAYS, WILL EITHER AUTHORIZE A REDUCED AMOUNT, OR NO AMOUNT, OR DENY THE REQUEST, AT WHICH TIME THE AMOUNT WITHHELD ALONG WITH COPY A OF FORM FTB 597 MUST BE SENT TO THE FRANCHISE TAX BOARD, AT THE FOLLOWING ADDRESS: FRANCHISE TAX BOARD WITHHOLDING AT ~SOURCE UNIT P.O. BOX 651 SACR/LMENTO, CA 95812-0651 (916)369-4900 LENDERS SUPPLEMENTAL REPORT THE A.L.T.A. POLICY, WHEN ISSUED, WILL INCLUDE C.L.T.A. ENDORSEMENT NUMBER I00 AND ENDORSEMENT I16 ~OR 116.2. SAID LAND IS KNOWN AS 3896 DUNCAN PLACE, PALO ALTO, CA, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA. Page 9 of i0 4103042 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1996-97 TO RECEIVE FUNDS FROM THE SALE OF REAL PROPERTY, MEADOWS WELL SITE, 3896 DUNCAN PLACE WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Counci! on June 24, 1996 did adopt a budget for fisca! year 1996-97; and WHEREAS, on June i0, 1996, Council approved a Request for Bid Proposals (RFBP) for the sale of the Meadows Well site; and WHEREAS, staff recommends that Council accept the high bid in the amount of $329,025 for the purchase of the site; and WHEREAS, Council directed that 25 percent of the purchase price for the Meadows Wel! site be placed in the City’s Residentia! Housing In-Lieu Fund; and WHEREAS, City Council authorization is needed to amend the 1996-97 budget as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as fol!ows: ~Eg.<.ION i. Sale of Property revenue in the General Fund is increased by the sum of Two Hundred Forty Six Thousand Seven Hundred Sixty Nine Dollars ($246,769), and the Budget Stabilization Reserve is correspondingly increased. SEC.~..IQN. 2. This transaction will increase the Stabilization Reserve from $15,839,622 to $16,086,391. Budget ~ECT.ION 3. Sale of Property revenue in the Residential Housing In-lieu Fund is increased by the sum of Eighty Two Thousand Two Hundred Fifty Six Dollars ($82,256), and the Housing In-Lieu Fund Reserve is correspondingly increased. SECTION 4. This transaction will repay the loan from the Commercial Housing In-Lieu reserve to the Residential Housing In- Lieu reserve and the Residential In-Lieu Reserve balance will be $30,814. The overall Housing In-Lieu Reserves will increase from $524,172 to $606,428. $.E~TION 5. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 6. The Counci! of the City of Palo Alto hereby finds that the enactment of this ordinance is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. SECTION 7. As provided in Section 2.04.350 of the Palo Alto Municipa! Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Deputy City Administrative Department Manager, Services