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HomeMy WebLinkAbout2001-12-10 City Council (12)City of Palo Alto City Manager’s Report 6 TO: FROM: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: CITY MANAGER’S OFFICE DATE: SUBJECT: DECEMBER 10, 2001 CMR:448:01 TERMAN-CUBBERLEY PROPERTY EXCHANGE AGREEMENT WITH PALO ALTO UNIFIED SCHOOL DISTRICT (LEASE AMENDMENT AND LAND EXCHANGE AGREEMENT, INCLUDING JOINT USE OF TERMAN SITE) RECOMMENDATION Staff recommends that the City Council approves the attached property exchange agreement between the City of Palo Alto and the Palo Alto Unified School District (PAUSD). The property exchange agreement allows the City to swap 8 acres of City- owned property at Ten-nan Community Center to PAUSD for 8 acres of District-owned property at the Cubberley Community Center. BACKGROUND To accommodate PAUSD’s plans to establish the third middle school at Terman, the City Council and the Board of Education jointly approved on January 29, 2001, a conceptual agreement to exchange 8 acres at Terman for 8 acres at Cubberley. (See Attachment A for conceptual agreement.) The property exchange was also a central element in the 4- Party Memorandum. of Understanding (MOU) to address the Middle School Challenge, involving the City, PAUSD, Jewish Cormnunity Center (JCC), and Stanford University. The 4-Party MOU was approved by the City Council on September 10, 2001. Under the provisions of the property exchange agreement, PAUSD receives ownership of 7.97 acres of buildings and parking lots at Terman. In exchange, the City receives 7.97 acres of buildings and parking lots at Cubberley. (See Attachment B for maps.) Other major provisions include the following: CMR:448:01 Page 1 of 2 PAUSD will be the primary user of City-owned playgrounds at Terman during school hours. The parkland will be open for community use and programming after school and on weekends and holidays. Terman Middle School facilities (e.g., gym, pool, auditorium) will be available for joint use under terms of a City-PAUSD joint use agreement which is attached to the Lease Amendment and Land Exchange Agreement. Should the District need to reclaim part of the Cubberley Community Center for a compact high school prior to the expiration of the City’s lease for Cubberley, the District only needs to provide notice to the City and replace lost revenue to the City. POLICY IMPLICATIONS The property exchange agreement is consistent with the many policies and programs in the Comprehensive Plan promoting City-District collaboration and the effective provision of community services. RESOURCE IMPACT No monies are paid by the City or the District pursuant to the property exchange agreement. In terms of the City’s continuing lease of the remaining 27 acres at Cubberley, the City’s lease payments to the District are reduced by the amount equivalent to the City’s lost revenues from the JCC ($276,810 in 2001). PREPARED BY: lenest City Manager CITY MANAGER APPROVAL: City Manager Attachments: Attachment A - Conceptual Agreement Attachment B - Maps Lease Amendment and Land Exchange Agreement CMR:448:01 Page 2 of 2 ’ ATTACHMENT A Palo Alto Unified School District. DATE: January 25, 2001 TO: FROM: SUBJECT: Board of Education City Council .Superintendent Don Phillips City Manager Frank Benest Conceptual Agreement Between Palo of Palo Alto to Exchange Property Alto Unified School District and City Recommendation The Superintendent and City Manager j.ointly recommend that the Board of Educatbn and the City. Council adopt the attached Conceptual Agreement for a Property ExChange and authorize.the two chief executives:to negotiate a final agreement. Backqround ¯ With a growth in enrollment, the School District notified the City that it needed ~o reclaim the Terman Community Center site {or a middle school. This necessitated the relocation of the Jewish Community center (.JCC). For the past 15 mon.ths,, the School District, the City, .the JCC, and Stanford University have been working hard t0 accomplish the following: Transition Terman to the School District for a middle school in order for the School District .to renovate the facilities and open the middle school by September, 2003 ¯Maintain joint use.of Terman facilities Relocate the JCC to a new permanent home and avoid, or minimize any interruption of services Recognize the financial needs of ali parties The Middle School/Community Center challenge has been a very complex challenge because so many institutions, constituencies and interests are involved, and any viable solution must address the interests ofthose involved..Officials from the School ~ District, ¯ City, JCC, and Stanford have met numerous times and have explored in private and in public a full range of options to resolve the Middle SchoollCommunity Center challenge. In the last month, the School Superintendent and City. Manager hav.e both been authoriz6d to mee{ on an intensive basis in order to find the proposal to .meet everyone’s interests. The Superintendent and City Manager both believe that the attached ’iConceptual Agreement" successfully.addresses the challenge. Given that Terman and Cubberley will be used in the future for both educational and community service needs, it is the intent of both the School District and the City to maximize joint use of facilities where appropriate. Advantages In respect to the range of options that We have explored, the "Conceptual Agreeme.nt Between the Palo Alto Unified School District and the City of. Palo to Exchange Property" provides a variety of advantages: 1. .The Conceptual Agreement meets both the ed’ucational and community service needs of the Palo Alto community.- ~ 2.The Agreement is based on an. exchange of property; the School District and the City do not lose any net land and no monetary p~yments are required. 3.There is an emphasis on the joint use of fasilities to meet community needs. 4.The Agreement meets JCC needs. 5.There is certainty for both the School District and the City regarding essential facilities. .The Superintendent and City Manager both wholeheartedly endorse.the Conceptual Agreement and recommend that the School Board and City Council approve .the Agreement and authorize the two chief executives to negotiate a final agreement. Attachment:Proposed Conceptual Agreement-Between Palo"AIto Unified School District and City of Palo Alto to Exchange Property 2 ¯ Proposed Conceptual Agreement Between Palo Alto Unified School District and City of Palo Alto to Exchange Property o The School District and the City will enter into an exchange of ownership of land. The exchange of property will take effect on September 1, 2002. The School District will receive from the City 7.97 acres.of the Terman site (5.94 acres of improvements pluS 2.03 acres of parking).’ In exchange, the City will receive from. the School District 7.97 acres at the northern end of the Cubberley site. o The City and the School District will enter into a joint use agreement regarding the Terman gym, pool, fields, and other facilities to support community needs as appropriate. Regarding the fields, the School District will have use comparable to its other middle schools during the day. The School District will explore with the City a long-term joint use agreement regarding the library. The City will continue operating the Terman branch library as a City library until there is a long-term joint use agreement or District enrollment and program require the space occupied by the existing library to support the educational program. The School District will have use of the City’s 7.66 acres of p!ay fields at Terman. Should the City’s Cubberley’ lease expire, the City will have joint use of 7.66 acres of play fields at Cubberley. Such joint use of these fields at Cubberley will ¯ provide use comparable to the other high schools as well as provide joint use. Given thatthe City no longer will be leasing¯ the.’f.97 acres at Cubberley, the City’s lease payment to the.School District, effective September 1, 2002,.at .Cubberley Will be offset by the sameamount as the JCC lease payment at Ter.man, effective September 1, 2002. This offset will receive the same CPI adjustment as the Cubberley lease. The City agrees to deliver the Terman site free of all tenancies on September 1, 2002. This agreement to deliver Terman.free of all tenancies is based on the School District, .City, and Jewish Community Center .(JCC) entering into a mutually agreeable Memorandum of Understanding (MOU).... The School District, with a 24-month notice, can bring on line a small high school in the space utilized by the Foothill College program on the Cubberley site. The- City’s .lease payment to the School District would be reduced by the same amount as the loss of revenue to the City from the Foothill program. Should the School District open a small high school prior to the expiration of the lease, the School District and City will enter into an agreement regarding joint use of gym, cafeteria, theatre, and fields. .-. The School District and the City have right of first refusal regarding the land exchanged should the other party desire to .dispose of that property or a portion of that property. This exchange agreement is contingent, upon Stanford University providing a long-term lease to the City for a community center on the Mayfield site. Ilillliliil~llt~iil~il "6 III 0 0 0 CD o ATTACHMENT B Exhibit G EXIIIBIT "A. 1". EVALUATION PLAN CUBBERLEY SCHOOL PALO ALTO UNIF~D SCHOOL CUBI~ERLEY SCHOOL ~00 ~D~ RO~P~ ~TO, .C~O~ LEASE AMENDMENT AND LAND EXCHANGE AGREEMENT This Lease Amendment and Land Exchange Agreement is entered into this day of , 2001 by and between the Palo Alto Unified School District ("District") and the City of Palo Alto, a municipal corporation ("City"). RECITALS A. The District is the owner of the certain property as described and shown in Exhibit A attached hereto and commonly referred to as the Cubberley Site. B. The District and the City have entered into a Lease and Covenant Not to Develop dated September i,1989 whereby the District leased to the City the Cubberley Site. C. The District is the legal owner of certain property as shown in Exhibit B attached hereto and commonly referred to as the Terman Site. D. In 1981, the District entered into a Lease to Purchase Agreement (the "Terman Lease Purchase Agreement") with the City whereby the City leased the Terman Site, including both the New Terman School Site and the adjacent Terman Park, from the District for 20 years with the right to acquire the Terman Site on November i, 2000. The City exercised its option under the lease in a timely fashion, but with the consent of City, the District has not yet delivered title to the Terman Site to the City, and the City has remained in possession of the Terman Site. E. The District has determined that in order to provide a quality education experience the desired range of schoo! size for middle schools is 600 to 900 students. The District currently operates two middle schools, one of which has an enrollment of 1,076 students and the other of which has an enrollment of I, 179 students. In order to ensure that middle schoo! students in the District receive the best education possible, the District has determined that it is necessary to open a third middle school in order to reduce the enrollments at the middle schools to the range of 600 to 900 students. F. The District has conducted an extensive search for a site of the new middle school. Based on the residences of 011205 syn 0090986 the current middle schoo! population, the District has determined that a portion of the Terman Site, as shown in Exhibit C attached hereto and incorporated herein ("the New Terman School Site") is the most appropriate location for the middle school. G. In order to permit the District to reopen a middle school at the New Terman School Site the City has agreed~ to exchange its right to acquire the New Terman School Site for a fee interest in a portion of the Cubberley School Site which portion is Of equa! size to the New Terman School Site. H. The City, with the consent of the District, and the Albert L. Schultz Jewish Community Center ("the JCC") entered into a sublease for a portion of the New Terman School Site ("the JCC Sublease") in 1982. The JCC Sublease has not expired. Under the terms of a Lease Termination and Mutual Release Agreement approved by the City Council on September i0, 2001 between the City and the JCC and a separate Settlement and Relocation Agreement between the D±strict and the JCC, the sublease between the City and the JCC will continue in effect after transfer of title to the New Terman School Site. I. The City and the District recognize and acknowledge that if the parties did not enter into this Agreement, andthe parties and the JCC had not entered into the Lease Termination and Mutua! Release Agreement and the Settlement and Relocation Agreement, the District would consider instituting eminent domain action to acquire the New Terman School Si~e and there would likely be opposition to such eminent domain action. NOW, THEREFORE, for good and valuable consideration, the City and the District agree as follow: I.Terman Site The Terman Lease currently provides that upon expiration of the Lease Term, which expiration occurred on November 9, 2000, the District was to have conveyed to the City fee title to the "Terman Site". Due to the District’s determination that a portion of the Terman Site, namely the New Terman School Site, is the most appropriate place to open a middle school that is needed to serve the community, the City and the District hereby agree to amend the Terman Lease as fol!ows: O11205 syn 0090986 (a) The Term of the Terman Lease is hereby extended to September I, 2002. (b)The City shall make no further rental payments. (c)Notwithstanding anything to the contrary in the Terman Lease, the District agrees that on or before September I, 2002, the District shall convey to the City by grant deed fee title to that portion of the Terman Site identified in Exhibit D attached hereto and incorporated herein as Terman Park, subject to those exceptions shown on the Preliminary Report attached hereto as Exhibit E. The City shal! chose the escrow company and title company to be used and shall pay all costs of escrow and title insurance; the District shal! sign and deliver a grant deed and such other documents as are reasonably required to close escrow within thirty days after they are presented to District for signature. (d) Notwithstanding anything to the contrary in the Terman Lease, the City agrees that on or before September I, 2002, the City shall execute a quitclaim deed or such other document as the District may request relinquishing any leasehold rights or rights of ownership the City has to the New Terman School Site, as shown in Exhibit C. (e) The City and the District agree to execute and record in the Official Records of the County of Santa Clara a termination of lease terminating the Terman Lease effective as of September I, 2002. (f) The City shall convey its interest in the New Terman School Site subject to the sublease to the JCC. (g) The City and the District shall enter into a joint use agreement regarding Terman Site in substantially the form attached hereto as Exhibit F. 2.Cubberley Property (a)The District in consideration for the City relinquishing control of the New Terman School Site hereby agrees to convey fee title by way of a grant deed a portion of the Cubberley Site ("Cubberiey Conveyance Property") as set forth in Exhibit G attached hereto and incorporated herein O11205 syn 0090986 simultaneously with City’s relinquishments of its rights to the New Terman School Site subject to those exceptions shown on the Preliminary Report attached hereto as Exhibit H. The City shal! ~chose the escrow company and title company to be used and.shall pay all costs of escrow and title insurance; the District shall sign and deliver a grant deed and such other documents as are reasonably required to close escrow within thirty days after they are presented to District for signature. (b) Prior to the conveyance of the Cubberley Conveyance Property, the City and the District will agree on the legal description and surveyor’s map describing the Cubberley Conveyance Property, which legal description and map shall generall~ conform to the property lines set forth in Exhibit G. At the time the Cubberley Conveyance Property is conveyed to the City, the City and the District shal! execute the Amendment No. 2 to Lease and Covenant Not to Develop attached hereto and incorpora[ed herein as Exhibit I. 3.District Right to Acquire If the City wishes to sell its fee interest in the Cubberley Conveyance Property any time prior to September I, 2022, the City shall give written notice of such intention to the District. The District shall have the option to acquire the Cubberley Conveyance Property for fair market value. If the City and the District are unable to agree on fair market value, the purchase price for the Cubberley Conveyance Property shall be determined as follows: The fair market value of the property shall be determined by a state-certified appraiser acceptable to City and District with the cost of the appraisal tobe~ shared by City and District equally. Should City and PAUSD not agree upon a State certified designated appraiser, one shal! be appointed by the presiding judge of the Superior Court of Santa Clara County. The district must provide the City with written notice of its intent to acquire the Cubberley Conveyance Property within ninety (90) days of receiving notice from the City of its intent to sel! the Cubberley Conveyance Property. 4.City Right to Acquire If the District wishes to sell its fee interest in the New Terman School Site any time prior to September I, 2022, the District shall give written notice of such intention to the City. The City shall have the option to acquire the New Terman Schoo! Site for fair market value. If the District and the City are unable to agree on fair market value, the purchase O1 i205 syn 0090986 price for the District Portion of the Terman Site shall be determined as follows: The fair market value of the property shall be determined by a state-certified appraiser acceptable to City and District with the cost of the appraisal to be shared by City and District equally. Should City and PAUSD not agree upon a State certified appraiser, one shall be appointed by the presiding judge of the Superior. Court of Santa Clara County. The City must provide the District with written notice of its intent to acquire the New Terman School Site within ninety (90) days of receiving notice from the District City of its intent to sell the new Terman School Site. 5.Settlement of Potential Litigation The City and the District acknowledge that this Agreement is being entered into in order to settle potential litigation regarding the possession of the New Terman School Site. The Parties agree that no part of this Agreement will be admissible as evidence in a court of law in the event the District institutes eminent domain actions to acquire possession of the New Terman School Site and that this Settlement Agreement shall be subject to the applicable California Evidence Code Section related to the inadmissibility of settlement discussions. 6.Mutual Release Upon performance of the parties’ obligations under this Agreemen<, and in consideration for the conveyance of the Cubberley Conveyance Property, and other consideration set forth herein, the City hereby releases "and forever discharges, on behalf of the City, and its successors, assigns, heirs, executors and administrators, the District and its board members, officers, directors, emp!oyees, agents, contractors and affiliates from any and all demands, claims or causes of action against the District, including without limitation all claims, demands or causes of action arising out of or pertaining to any occurrence, event, circumstances or matter of any kind or nature arising out of, directly or indirectly, the acquisition of the New Terman School Site by the District, including, but not limited,to any claims for compensation for leasehold value, fixtures and equipment, loss of business goodwil!, severance damages,interest, litigation expenses, attorneys’ fees and costs (including, but not limited to, costs incurred to negotiate this Agreement), loss or damages for inverse condemnation, unreasonable precondemnation delay,unreasonable precondemnation activities and statutory relocation benefits. O11205 syn 0090986 5 Upon performance of the parties’ obligations under this Agreement, and in consideration for the City relinquishing its rights to the New Terman School Site and other consideration herein set forth, the District hereby releases and forever discharges, on behalf of the District, its successors, assigns, heirs, executors and administrators, the City and its council members, officers, directors, employees, agents, c~ntractors and affiliates from any and al! demands, claims or causes of action against the City relating to the City’s occupancy of the New Terman School Site including attorneys’ fees and costs (including costs to negotiate this Agreement). In giving this release, the City and the District expressly waive the protection of Civil Code Section 1542, which statute provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with debtor." District City 7.Headings The title and headings of the various Section of this Agreement are intended for means of reference and are not intended to place any construction on the provisions of this Agreement. 8.Invalidity If any provisions of this Agreement shall be invalid or unenforceable, the remaining provisions shall not be affected thereby, and every provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 9.Entire Agreement The terms of this Agreement are intended by the Parties as a final expression of their agreement and may not be contradicted by evidence of any prior or contemporaneous agreement. No provision of this Agreement may be amended except 011205 syn 0090986 by an agreement in writing signed by the Parties hereto or their respective successors in interest. The Parties were represented by attorneys with regard to the drafting of this Agreement, and neither party shall be deemed to Agreement. i0. be the drafter of this Successors This Agreement shal! be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the Parties hereto. ii.Governing Law This Agreement shall be governed by the laws of the State of California. 12.Execution This Agreement may be executed in multiple counterpart originals. 13. Attorneys’ Fees In the event of a breach of this Agreement, the non-breaching party shall recovery all attorneys’ fees and litigation expenses incurred as a result of such breach and/or to enforce this Agreement, including without limitation costs of appeal. II II II II II II II II II O11205 syn 0090986 IN WITNESS WHEREOF, the Parties have executed this Agreement on or as of the date first above written. ATTEST:CITY OF PALO ALTO, Lessee City Clerk Mayor APPROVED AS TO FORM:PALO ALTO UNIFIED SCHOOL DISTRICT, Lessor Senior Asst. City Attorney President, Board of Education APPROVED:APPROVED: City Manager EXHIBITS: Exhibit A: Exhibit B: Exhibit C: Exhibit D: Exhibit E: Exhibit F: Exhibit G: Exhibit H: Exhibit I: O11205 syn 0090986 Superintendent of Schools Legal Description and Map of entire Cubberley Site Map of the Terman Site, (including both New Terman School Site and Terman Park, both of which are identified on Exhibit B.) Map of New Terman School Site,(which City will quitclaim to District.) Map of Terman Park Preliminary Report on Terman Park Joint Use Agreement for Terman Site Map of Cubberley Conveyance Property Preliminary Report on Cubberley Conveyance Property Amendment No. 2 to Lease and Covenant Not to Deve!op 8 ~U~SELL~Y TE Legal Description EXHIBIT A Beginning at a point on the Southwesterly line of Middlefield Road at the most Northerly corner of that certain parcel of land conveyed by Ralph Grebmeier, etux, to Roll Grebmeier, a married man, by Deed dated August 14, 1954 and recorded October 15, 1954 in Book 2983 of Official Records, Page 211; thence leaving said line of Middlefield Road and running along the Northwesterly line of said Grebmeier parcel, South 57" 42’ 46" West 221.83 .feet; thence leaving said Northwesterly line of said Grebmeier parcel and r~nning North 32" 04’ 46" East 200.00 feet to a point on the Southwesterly line of Middlefield Road; thence along said line of Middlefield Road, South 57° 55’ 14" East 95.97 feet to the point of beginning and being a portion of the Rancho Rincon de San Francisquito. PARCEL____~2 Beginning at the most Southerly corner of Lot iI in Block i, as shown on ~h~ Map of Tract 1310, Greenmeadow, which Map was filed for record in the office of the Recorder of the County of Santa clara, State of California on July 7, 1954 in Book 50 of Maps, Pages 50 and 51; thence along Southwesterly line of said Lot II, North 33" 33’ 18" West 40.00 feet; thence along a Southeasterly line of Lots ll and 12, block i, as shown o~ the Map hereinabove referred to, South 56" 26’ 42" West 50.00 feet; thence along a Northeasterly line of said Lot 12, South 33’ 33’ 18" East 40.00 feet; thence along the Northeasterly prolongation of the most Southerly line of said Lot 12, North 56’ 26’ 42~~-..~..~ East 50.00 feet to .the point of beginning, and being a portion of the Sant~i .... Riza Rancho. PARCEL 3 Beginning at a point on the Northwesterly line of that certain parcel of land conveyed by Ralph Grebmeier, etux, to Roll Grebmeier, a married man by Deed dated August 14, 19S4 and recorded October 15, 1954 in Book 2983 of Officia! Records, Page 2~1, distant thereon, South 57" 42’ 46" West 221.83 fee~ from the point of intersection of said-Northwesterly line with the Southwesterly line of Middlefield Road; thence along the Northwesterly line of said Grebmeier parcel, South 57" 42’ 46" West 2~1.83 feet to the most Westerly corner thereof; thence along the Southwesterly llne of said Grebmeier parcel and parallel with said line of Middlefield Road, South 57" 55’ 14" East 95.97 feet; thence leaving the Southwesterly line of said Grebmeler.parcel and running North 32" 04’ 46" East 200.00 feet to the point of beginning and being a portion of the Rancho Rincon de San Francisquito. Excepting therefrom a portion of Parcel I and Parcel 3 described as follows: Beginning at the most Southerly corner of the above described Parcel thence North 57" 55’ 14" West 95.97. feet; thence South 57’ 42’ 46" West.17.41 feet; thence North 32" 04’ 46" East 53.19 feet; thence South 57’ 55’ 14" Eas I0~.50 feet; thence South B2’ 04, 46" West ~7.50 feet to the point beginning. Containing 0,0905 acres.2 Exhibit A EXHIBIT B EXHIBIT C 0 0 0 0 >>>> ~ z 7 _~ EXHIBIT D CD 0 0 >>>> < <0 ~NORTH AMERICAN~TITLE COMPANY DIRECT ALL INQUIRES TO: Escrow Officer: DEBORAH MINARIK Telephone No. 650-917-5699 Our No.: 50370029 February 8, 2000 CITY OF PALO ALTO 250 HAMILTON AVENUE PALO ALTO, CALIFORNIA 94301 ATTN: ELAINA CHAN Exhibit E PROPERTY ADDRESS NO SITUS GIVEN 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, DESCRIBING THE LAND AND THE ESTATE OR INTEREST 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 FORMS. THE PRINTED EXCEPTIONS AND EXCLUSION FROM THE COVERAGE OF SAID POLI.CY OR POLICIES ARE SET FORTH ON THE ATTACHED COVER, COPIES OF THE POLICY FORMS SHOULD BE READ, THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT. PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW AND THE EXCEPTIONS AND EXCLUSIONS SET FORTH IN EXHIBIT A OF THIS REPORT CAREFULLY. THE EXCEPTIONS AND EXCLUSIONS ARE MEANT TO PROVIDE YOU WITH NOTICE OF MATTERS WHICH ARE NOT COVERED UNDER THE TERMS OF THE TITLE INSURANCE POLICY AND SHOULD BE CAREFULLY CONSIDERED. IT IS IMPORTANT TO NOTE THAT THIS PRELIMINARY REPORT IS NOT A WRITTEN REPRESENTATION AS TO THE CONDITION OF TITLE AND MAY NOT LIST ALL LIENS, DEFECTS, AND ENCUMBRANCES AFFECTING TITLE TO THE LAND. 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 ITIS DESIRED THAT LIABILITY BE ASSUMEDPRIOR TO THE ISSUANCEOF POLICY TITLE INSURANCE,A BINDER OR COMMITMENT SHOULD BE REQUESTED. Dated as of JANUARY 28, 2000 at 7:30 A.M. DONNA HARNDEN Title Officer 419 S. SAN ANTONIO ROAD #106, LOS ALTOS, CA 94022 (650)917-5699 FAX (650)917-8607 The form of policy of title insurance contemplated by this report is: ALTA Loan Policy - Form 1 (10-17-92) and/or CLTA Standard Coverage Policy - 1990 The estate or interest in the land hereinafter described or referred to covered by this report is: A FEE Title to said estate or interest at the date hereof is vested in: PALO ALTO UNIFIED SCHOOL DISTRICT Page 2 of 8 Order No. 50370029 Description: The land referred to herein is situated in the State of California, County of SANTA CLARA, CITY OF PALO ALTO, and is described as follows: PARCELS A AND C AS SHOWN ON PARCEL MAP FILED 12/5/83 IN BOOK 521 OF MAPS AT PAGES 52 AND 53; AND PARCEL 1 AS SHOWN ON PARCEL MAP FILED 7/13/83 IN BOOK 514 OF MAPS AT PAGES 49 AND 50. ASSESSOR’S PARCEL NO.: 167-05-003, 028, 030, 031 Page 3 of 8 Order No. 50370029 At the date hereof exceptions to coverage in addition to the printed exceptions and exclusions contained in said policy form would be as follows: 0 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. A) B) Any adverse claim based upon the assertion that: Some portion of said land has been created by artificial means, or has accreted to such portion so created Some portion of said land has been brought within the boundaries thereof by an avulsive movement of ADOBE CREEK, or has been formed by accretion to any such portion. Said matter affects:PARCEL C An easement affecting the portion of said land and for the purpose stated herein, and incidental purposes. In favor of: No representation is made as to For: Recorded: Book: Page: Affects: CITY OF PALO ALTO the present ownership of said easement. PEDESTRIAN AND BICYCLE RIGHT OF WAY, PUBLIC UTILITIES OCTOBER 17,1974 B135 351 SOUTHEAST CORNER OF PARCEL C, AS SHOWN ON MAP Page 4 of 8 Order No. 50370029 An easement affecting the portion of said land and for the purpose stated herein, and incidental purposes. In favor of:CITY OF PALO ALTO No representation is made as to For: Recorded: Book: Page: Affects: the present ownership of said easement. RIGHT OF WAY FOR BICYCLE,PEDESTRIAN AND PUBLIC UTILITY MAY 9, 1975 B402 297 SOUTHEAST CORNER OF PARCEL C, AS SHOWN ON MAP A Lease executed by and between the parties named herein, for the term and upon the terms, covenants and conditions therein provided. Type of Lease: Dated: Lessor: Lessee: Term: Recorded: Instrument No.: Book: Page: MASTER LEASE NOVEMBER 1, 1981 PALO ALTO UNIFIED SCHOOL DISTRICT CITY OF PALO ALTO JANUARY 12, 1982- NOVEMBER 9, 2000 JANUARY 12,1982 7257350 G549 536 Among other things, said Lease provides for: OPTION TO PURCHASE The present ownership of the Leasehold created by said Lease and other matters affecting the interest of the Lessee are not shown herein. An easement affecting the portion of said land and for the purposes stated herein, and incidental purposes, shown or dedicated by the map of: Subdivision: Book: Page: For: Affects: PARCEL MAP 514M 49-50 EMERGENCY ACCESS ROAD EASEMENT & EASEMENT FOR STREET PURPOSES PORTION OF PARCEL 1, AS SHOWN ON MAP Page 5 of 8 Order No. 50370029 o An easement affecting the portion of said land and for the purposes stated herein, and incidental purposes, shown or dedicated by the map of: Subdivision: Book: Page: For: Affects: PARCEL MAP 521 M 52-53 COMMON ACCESS ROAD AND COMMON AREAS PORTION OF PARCEL A, AS SHOWN ON MAP ....T..he-u4~recerded _ease b;, and between *.he parties named here!n, for they ._._. _..5/ upon the Terms, Covenants and Conditions therein provided: Disclosed by:MEMORANDUM OF LEASE Type of Lease:SUB LEASE Dated:JULY 1, 1982 Lessor:CITY OF PALO ALTO,~H~4UNICIPAL CORPORATION ~ .............. Lessee:UNITED JEWI~4~COMMUNITY CENTERS, A NON- PROFIT C~PORATION Term:NON/E/SHOWN .... Recorded:/.DEdC:EMB_ER 19, 1983 Instrument No.:~ 7922983 Book:~1160 Page:1 1 1 The p ~ the interest of the Less_e~_ar_e_.no.t shown herein. Said ,mattcr cffccts: PARCEL I o REQUIRE RESOLUTION OF BOARD OF TRUSTEES OF SCHOOL DISTRICT AUTHORIZING THIS TRANSACTION. END OF EXCEPTIONS Page 6 of 8 Order No. 50370029 o j OEI3dI’dEI..LS’ffEI’d ...... D EXHIBIT F AGREEMENT FOR JOINT USE OF TERMAN SITE This AGREEMENT FOR JOINT USE OF TERMAN SITE, entered into this day of , 2001, by and between City of Palo Alto and Palo Alto Unified Schoo! District, hereinafter referred to as "City" and "School District". RECITALS !. The City and School District have entered into a property exchange agreement in which the City obtains fee title to approximately eight (8) acres of land at the Cubberley Community Center and the School District obtains fee title to an equivalent area at the Terman Site. At the Terman Site, the City wil! own a dedicated public park, Terman Park, which includes playing fields and tennis courts. The School District will own the Terman Middle School, developed with school buildings, including a gymnasium, a parking lot, and a swimming pool. A map showing the Terman Site, Terman Park, and the Terman Middle Schoo! is attached as Exhibit A. As part of the land exchange agreement, the City and the School District have agreed to enter into this joint ~use agreement for the Terman Site. The purpose of the agreement is to cooperatively use the Terman Site so that both educational and community services can be provided to those living in the City and the School District. 2. The City and the School District also have power to assist each other under Education Code Sections 17051(a) and 35275 and Government Code Section 6500 et seq. of the State of California, which authorize and empower public school districts and municipalities to cooperate with each other and to that end enter into agreements with each other for the purpose of organizing, promoting and conducting such programs of community recreation and education for children and adults of the state. 3. The School District has need of the Terman Park playing fields for its middle school, and the City has need of a portion of the Terman Middle School buildings for its library and related activities. Both City and School District wish to have the City provide recreational programs for middle school children and others that will make use of both the Park and the Middle School. Terman Park is a dedicated park and use of the Park by the School District must be consistent with that designation; Terman Middle School will be a public school 011206 syn 0090.910 facility, and its use as a middle school wil! have priority over all other uses. NOW, THEREFORE, the City and School District mutually covenant and agree with each other as fol!ows: A.Principles I. The City and School District shall cooperate in the use of the Terman Site. 2. The City shall control use of the Terman Park and the School District shall control use of the Terman Middle School, in a manner that is consistent with this Joint Use Agreement. B.Joint Use of the Terman Site. i. The School District shall make Terman Middle School facilities and equipment available to the City as described in Attachment i. The School District shall also make such facilities and equipment available upon application of the City provided that their use for City purposes does not interfere with the Schoo! District’s use of such facilities and equipment for Terman Middle School or constitute a violation of provisions of the California Education or Government Codes. No charges shall be made for such use other than those specifically described in this Agreement. 2. The City shall make Terman Park facilities available to the School District as described in Attachment 2. The City shall also make such facilities and equipment available upon application of the School District, provided that their use for School District purposes does not interfere with the use of the faci~lities or equipment by the City in connection with its stated purposes or with City Charter provisions and ordinances regulating the use of dedicated park land. No charges shall be made for such use other than those specifically described in this Agreement. 3. The City Manager and the Superintendent of Schools do hereby delegate the responsibility for establishing schedules for facilities and equipment use to the City Director of Community Services and the School District Business Manager. 4. Each party using facilities or equipment owned by the other pursuant to this agreement shal! furnish qualified personnel for the proper conduct and supervision of the use. 2 O11206 syn 0090910 5.The party using facilities or equipment of the other under this agreement shall repair, or cause to be repaired, or wil! reimburse the owner for the actual cost of repairing damage done to the facilities or equipment during the period of such use, excluding damage attributed to ordinary wear and tear. C. Scheduling and Supervision I. Subject to the limitations in Section A above and to the specific commitments set forth in Attachment I, in scheduling the use of Terman Middle Schoo!, Terman Middle Schoo! events and programs shal! have first priority and City recreation programs and City co-sponsored programs shal! have second priority. In cases of emergencies ~or errors in scheduling, the Terman Middle Schoo! events and programs shall have first priority for use. Every reasonable attempt will be made to avoid such conflict. City activities shall not be scheduled on Terman Middle School facilities between the hours of seven thirty a.m. and three-thirty p.m. on days when school is in session without the permission of the school principal. 2. Subject to the limitations in Section A above and to the specific commitments set forth in Attachment 2 below, in scheduling the use of Terman Park, City recreation programs and City co-sponsored programs shall have first priority. Terman Middle School events and programs shall have second priority. In cases of emergencies or errors in scheduling, the City programs and events shall have first priority for use. Every reasonable attempt will be made to avoid such conflict. School activities shall not be scheduled before seven thirty a.m. or after three-thirty p.m. 3. The City will have a responsible adult representative present at all times at any City event held on the Terman Middle School. That representative may be a volunteer or a paid City employee responsible to see that School District rules and regulations are observed and complied with and that the facilities and grounds are returned to existing condition upon completion of the activity. The City will have a City employee on cal! at all times that a City-sponsored or scheduled activity is occurring in the Terman Middle School in order to ~respond and investigate any questions or improper action at such activities and events. 4. The School District will have a responsible adult representative present at al! times at a Schoo! District O11206 syn 0090910 activity or event is held in Terman Park. That representative may be a volunteer or a paid School District employee responsible to see that City rules and regulations are observed and complied with and that the facilities and grounds are returned to existing condition upon completion of the activity. The School District will have a School District employee on call at all times that a School District-sponsored or scheduled activity is occurring in Terman Park in order to respond and investigate any questions or improper action at such activities and events. 5. The City and School District shall submit to each other written use requests in advance. Requests for advance scheduling shall be submitted annually according to the following .schedule: July ist for the School Year February Ist for thesummer months The Terman Site Joint Use Committee shall approve a master calendar for each of these periods within thirty (30) days of the submittal of the requests for advance scheduling. Each schedule will be arranged so as to avoid any conflict between the School District’s and City’s uses of the facilities and equipment. The City or the School District shall not schedule other uses until first and second priorities are set as prescribed herein. D.Maintenance of Terman Site Facilities. i. Basic Standard. Facilities jointly used shall be adequately maintained to insure appropriate and safe use, appearance and longevity. 2. Basic Responsibility. Except as may otherwise be specified herein, the responsibility for maintenance, repair and renovation of facilities shal! be the .responsibility of the owner of the rea! property on which the facility is situated. E.Maintenance of Athletic Fields. i.Turf Areas and Tennis Courts on Terman Site. a. The City will continue its existing maintenance program for turf areas of the Terman Site. These areas are shown on Attachment 3. Pursuant to that Master 011206 syn 0090910 Maintenance Agreement, the City will mow, trim, fertilize and irrigate and perform other maintenance work of a general nature at the fields at the frequencies and times in accordance with the field maintenance standards adopted by the City. The Schoo! District will pay one half of the City’s actual cost to maintain the fields. b. The City wil! also maintain the drainage and irrigation systems of the fields under the terms and conditions described in the Master Maintenance Agreement between the City and the District. If these systems need repair or replacement, the City will consult with the School District on the scope of work and estimated cost to perform it, and the School District shall confirm its approva! of the scope of work. The Schoo! District shall pay one half of the City’s actual costs for such approved repair or replacement work. c. The City will continue its existing maintenance program for tennis courts in Terman Park. The City will wash and air blow the surfaces of the courts, repair and/or replace, as reasonably necessary, the tennis nets and screens, and perform other maintenance work of a general nature at the frequencies and times in accordance with the maintenance standards adopted by the City. The City will also resurface and restripe the courts. Such resurfacing and restriping will be scheduled to match the City’s existing tennis court resurfacing program at an approximate five year. interval for such work. The Schoo! District shal! pay one half of the City’s actual cost of maintaining and resurfacing the courts. d. Money owed by the School District to the City under this Agreement will first be credited against any monthly lease payments due and payable by the City under its lease agreement with the District entitled "Lease and Covenant Not to Develop," as amended from time to time. If the sums owed under this agreement exceed those payments, the City shall bill the School District and the School District shall pay the City within forty-five days after receipt of its invoice. 2. Custodial Services. The School District shall provide all custodial services for the Terman Middle School. If the Terman Middle School is used by the City at a time when custodial staff is not regularly on duty, or when a custodian is required to open a facility, the City shall pay the cost of the custodial time to the School. Alternatively, the City may arrange with the Schoo! District to open and c!ose a facility itself. O11206 syn 0090910 F.Library Facilities. City will continue its existing library a£ the Terman Middle School until such time as the District gives it notice that all or a portion of those facilities are needed for district purposes. Upon six months written notice that all or a portion of the facilities are needed for district purposes, the City shall vacate the identified portions of the premises. G.Restrooms at Terman Middle School. i. The restroom facilities located at Terman Middle School shall be available for public use while City programs are scheduled at either Terman Middle School or Terman Park, and while the Terman Library is open to the public. They shall also be available to library staff during their working hours. 2. The School District shall perform custodial maintenance of the restrooms on a daily basis when its custodians are on duty. On days when its custodians are not on duty, the School district shall make arrangements in advance, as part of the scheduling agreements, to provide supplies to the City on site so that is may restock the restrooms on those days. H. Establishment of City and School District Joint Use Committee. The City Manager and the Superintendent shall each designate two staff members to the Terman Joint Use Committee which is hereby established. The. Committee shall meet at least three times a year, but may meet additional times each year as necessary to administer this agreement. The Committee shall be responsible for administering this joint use agreement. I.Term of Aqreement. This agreement shall commence upon the date first entered above and shal! end upon termination of the Cubberley Lease between the City and the School District unless otherwise terminated by consent of the parties. J.Indemnification. The City shall investigate, defend and indemnify the School District from any and all claims, demands, actions or damages arising out of the City’s use of Schoo! District Facilities to which the School District may be subjected as a direct consequence of this agreement except for those claims, O11206 syn 0090910 demands, actions or damages resulting solely from the negligence of the School District, its officers, agents and employees. The School District shall investigate, defend and indemnify the City from any and all claims, demands, actions or damages arising out of the School District’s use ~f City Facilities to which the City may be ~ubjected as a direct consequence of this agreement except for those claims, demands, actions or damages resulting solely from the negligence of the City, its officers, agents and emp!oyees. K. Complete Understanding and Amendments. This agreement and the attached exhibits set forth the complete agreement and understanding of the parties;any modification must be in writing executed by both parties. L.Notices. If at any time after the execution of this agreement, it shall become necessary or convenient for one of the parties hereto to serve any notice, demand or communication upon the other party, such notice, demand or communication shall be in writing and shall be served personally or by depositing the same in the United States mail, return receipt requested, first class postage prepaid and (I) if intended for City shall be addressed to: City Clerk City of Palo Alto p.O. Box 10250 Palo Alto, CA 94301 with a copy to:Director of Community Services Department P.O. Box 10250 Palo Alto, CA 94301 and (2) if intended for PALO ALTO UNIFIED SCHOOL SCHOOL DISTRICT shal! be addressed to: Palo Alto Unified School District 25 Churchill Avenue Palo Alto, CA 94306 011206 syn 0090910 or to such other address as either party may have furnished to the other in writing as a place for the service of notice. Any notice so mailed shal! be deemed to have been given as of the time the same is deposited in the United States mail. IN WITNESS WHEREOF, the parties have executed this agreement on the date and year first above written. CITY OF PALO ALTO A municipal corporation PALO ALTO UNIFIED SCHOOL DISTRICT Frank Benest City Manager Robert Golton Acting Superintendent ATTEST: City Clerk APPROVED AS TO FORM: Ariel Pierre Calonne, City Attorney By. APPROVED AS TO CONTENT: Paul Thiltgen, Parks and Recreation Director By 011206 syn 0090910 8 ATTACHMENT 1 CITY USE OF TERMANMIDDLE SCHOOL ATTACHMENT°I The JCC shall have priority over the City for use of the pool and the gymnasium for its programs year round until it relocates to its permanent facilities or until August 31, 2009, whichever is earlier.Al! exceptions to this can be found in Attachment IA. The C±ty’s use of the Terman site following August 2003 will include: i.Swimming Pool a.School year- After school, evening and weekends for instructional programs and lap swimming. b.Summer- Seven-day and night uses for instructional programs, recreational swimming and. lap swimming. 2.Gymnasium a. School Year- After school for middle school athletics, youth and teen programs evenings; Weeknights for youth and adult programs; Weekend and night use for youth, teen and adult programs. b.Summer- Seven-day and night uses for youth, teen and adult programming. 3.Library Wing Use of that wing as a neighborhood library subject to section F of this agreement.This use may be converted to City/School joint library services at some time in the future. O11206 syn 0090910 ATTACHMENT IA of P ]oA!to Polo Alto, CA 94306 tlm "rermen. ~ym. Sl~ould the City change i~s p.r~emmu~ ~UVlt~e~ Gym, and, whe~vw possibl~ ¢ollabo~ wa~ the JGC ~’st by ~ ~CC. The City ~au sch~ul~ dt o~r t~m~s n~ use4 by ~he K:C have us~ of th~ "fmus~t Gym Monday fiw~ugh lO:~O ’L~ 0,,q h4kldkqMd ATTACHMENT IA Ci off-hlo A th~’ough M,~l’¢h of:’!~tch year, 11:30 a,rll, th!’otl~ll 6:00 p m, ¢~n ~ahrrdlW~:, ltalO Alb~ CA !4,~1 ATTACHMENT 2 SCHOOL DISTRICT USE OF TERMAN PARK School District shall be entitled to the issuance of a City permit under Chapter 22 of the Palo Alto Municipal Code for use of portions of Terman Park during certain hours. School District shall not be required to pay for such permit, and in any case where there is a contradiction between the terms of the permit and the terms of this Agreement, this Agreement shall govern. i.Terman Tennis Courts a. Terman Middle School shall have first call on the tennis courts between the hours of 7:30 a.m. and 3:30 p.m. on days when Terman Middle School is in regular session. b. School District shall pick up all litter and leave courts in good condition at end of every day of use. 2.Terman Playfields. a. Terman Middle School shall have first call on the playing fields between the hours of 7:30 a.m. and 3:30 p.m. on days when Terman Middle School is in regular session. School District wil! not have the right to routinely exclude members of the public from any dedicated playing field or parkland. School District will have the right to take reasonable actions to protect both its first cal! on the playing fields and the safety of the students. No permanent fence or other barriers to public access will be constructed. b. School District shall pick up all litter and leave fields in good condition at end of every day of use. The public will have unrestricted access to those portions of Terman Park not being used by the Terman Middle School. O11206 syn 0090910 10 EXHIBIT G DRAFT MAP OF CUBBERLEY CONVEYANCE PROPERTY [FINAL MAP TO BE SUBMITTED] Exhibit G EXIIIBIT "A.I" EVALUATION PLaN CUBBERLEY SCHOOL PALO ALTO UNWIED SCHOOL DISTRICT C~BERLm" SCHOOL 400 ~D~ RO~ NORTH AMERICAN )MPANY Our No.: Customer No.: 56901-51990229-PRT 4000 Middlefield Road City of Palo Alto Attn: Janet Freeland 250 Hamilton Avenue Palo Alto CA 94303 Exhibit H Property Address: 4000 Middlefield Road Palo Alto, California Preliminary Report IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, North American Title Company, Inc. HEREBY REPORTS THAT IS PREPARED TO ISSUE, OR CAUSE TO BE ISSUED, AS OF THE DATE HEREOF, A POLICY OR POLICIES OF TITLE INSURANCE, DESCRIBING THE LAND AND THE ESTATE OR INTEREST 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 FORMS. THE PRINTED EXCEPTIONS AND EXCLUSION FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH ON THE ATTACHED COVER, COPIES OF THE POLICY FORMS SHOULD BE READ, THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT. PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW AND THE EXCEPTIONS AND EXCLUSIONS SET FORTH IN EXHIBIT A OF THIS REPORT CAREFULLY.THE EXCEPTIONS ARE MEANT TO PROVIDE YOU WITH NOTICE OF MATTERS WHICH ARE NOT COVEREDUNDER THE TERMS OF THE TITLE INSURANCE POLICY AND SHOULD BE CAREFULLY CONSIDERED. IT IS IMPORTANT TO NOTE THAT THIS PRELIMINARY REPORT IS NOTA WRITTEN REPRESENTATION AS TO THE CONDITION OF TITLE AND MAY NOT LIST ALL LIENS,DEFECTS, AND ENCUMBRANCES AFFECTING TITLE TO THE LAND. 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. Dated as of October 15, 2001 at 07:30 am Pam Thompson/pu Title Officer/Examiner 4255 Hopyard Road, Suite 1, Pleasanton, CA 94588 Phone No.: (925) 399-3000 Fax No.: (925) 399-3028 The form of policy of title insurance contemplated by this report is: Preliminary Report Only The estate or interest in the land hereinafter described or referred to covered by this report is: Afee Title to said estate or interest at the date hereof is vested in: Palo Alto Unified School District aka Palo Alto Unified School District of Santa Clara County Page 2 Order No.: 56901-51990229-PRT Description: The land referred to herein is situated in the State of California, County of Santa Clara, City of Palo Alto, and is described as follows: BEGINNING AT THE MOST WESTERLY CORNER OF THE PARCEL OF LAND CONTAINING 42.27 ACRES DESCRIBED IN THE DECREE QF DISTRIBUTION MADE IN THE ESTATE OF JOHN MILLER, RECORDED OCTOBER 7, 1937 IN BOOK 849 OF OFFICIAL RECORDS. AT PAGE 61, RECORDS OF SANTA CLARA COUNTY, CALIFORNIA; THENCE FROM SAID POINT OF BEGINNING NORTH 57° 42’ 46" EAST ALONG THE NORTHWESTERLY LINE OF SAID 42.27 ACRE PARCEL 327.41 FEET TO THE POINT OF INTERSECTION THEREOF WITH A LINE DRAWN PARALLEL WITH AND DISTANT 400 FEET, SOUTHWESTERLY AT A RIGHT ANGLE, FROM THE SOUTHWESTERLY LINE OF MIDDLEFIELD ROAD 60 FEET IN WIDTH; THENCE SOUTH 57° 55’ 14" EAST PARALLEL WITH AND DISTANT 400 FEET SOUTHWESTERLY AT A RIGHT ANGLE FROM SAID SOUTHWESTERLY LINE OF MIDDLEFIELD ROAD 572.04 FEET; THENCE AT RIGHT ANGLES TO THE LAST COURSE SOUTH 320 04’ 46" WEST 373.77 FEET TO THE SOUTHWESTERLY LINE OF THE 42.27 ACRE PARCEL; THENCE NORTH 51° 38’ 17" WEST 717.99 FEET ALONG SAID LINE TO THE POINT OF BEGINNING. PARCEL TWO: BEGINNING AT A POINT ON THE CENTERLINE OF MIDDLEFIELD ROAD AT THE MOST SOUTHERLY CORNER OF TRACT 870 CHARLESTON GARDENS UNIT NO. 1 AS SHOWN ON A MAP THEREOF WHICH WAS FILED IN BOOK 33 OF MAPS AT PAGES 26 AND 27 IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF SANTA CLARA; THENCE FROM SAID POINT OF BEGINNING SOUTH 57° 42’ 46" WEST 804.35 FEET TO AN IRON PIPE ON THE NORTHEASTERLY LINE OF LAND FORMERLY OF D.L. SLOAN; THENCE SOUTH 51° 37’ 17" EAST 224.14 FEET TO A POST MARKED P.S. 7 AT THE MOST NORTHERLY CORNER OF LOT 11 OF THE J. J. MORRIS REAL ESTATE CO’S SUBDIVISION OF THE LOUOKS TRACT, A MAP OF WHICH IS OF RECORD IN THE OFFICE OF THE COUNTY RECORDER OF THE SANTA CLARA, STATE OF CALIFORNIA, IN BOOK "L" OF MAPS, PAGE 35 RECORDS OF SANTA CLARA; THENCE ALONG THE NORTHERLY LINE OF LOTS 10 AND 11 OF SAID SUBDIVISION SOUTH 38° 23’ 31" WEST 657.32 FEET TO A POINT WHICH IS DISTANT ALONG THE NORTHERLY LINE OF LOTS 9 AND 10 OF SAID SUBDIVISION NORTH 38° 23’ 31" EAST 520.00 FEET FROM THE MOST EASTERLY CORNER OF LOT 6 OF SAID SUBDIVISION; THENCE PARALLEL WITH AND DISTANT NORTHEASTERLY 520 FEET FROM THE NORTHEASTERLY LIEN OF LOTS 4, 5 AND 6 NORTH 51° 36’ 25" WEST 941.59 FEET TO A POINT WHICH IS DISTANT NORTHEASTERLY, MEASURED AT RIGHT ANGLES, 260 FEET FROM THE NORTHEASTERLY, BANK OF ADOBE CREEK; THENCE PARALLEL WITH AND DISTANT NORTH EASTERLY 260 FEET FROM SAID CREEK NORTH 14° 12’ WEST 501.67 FEET TO A POINT WHICH IS DISTANT 657 FEET SOUTHEASTERLY MEASURED AT RIGHT ANGLES FROM THE CENTERLINE OF CHARLESTON ROAD; THENCE PARALLEL WITH AND DISTANT 657 FEET SOUTHEASTERLY FROM THE CENTER LINEOF CHARLESTON ROAD NORTH 56° 26’ 42" EAST 340.00 FEET TO A POINT ON THE CENTERLINE OF A 10 FOOT EASEMENT GRANTED TO THE PACIFIC GAS & ELECTRIC COMPANY BY DEED DATED NOVEMBER 21, 1935 AND RECORDED DECEMBER 11, 1935 IN BOOK 748 OF OFFICIAL RECORDS, PAGE 487; THENCE NORTH 43° 26’ 42" EAST 170.00 FEET TO A POINT WHICH BEARS SOUTH 57° 55’ 14" EAST 70.00 FEET; SOUTH32° 04’ 46" WEST 235.00 FEET AND SOUTH 56° 26’ 42" WEST 265.00 FEET FROM A POINT ON THE CENTERLINE OF MIDDLEFIELD ROAD AT THE MOST WESTERLY CORNER OF THE ABOVE MENTIONED CHARLESTON GARDENS UNIT NO. 1; THENCE NORTH 56° 26’ 42" EAST 265.00 FEET; THENCE NORTH 320 04’ 46" EAST 235.00 FEET TO THE CENTERLINE OF MIDDLEFIELD ROAD; THENCE ALONG THE CENTERLINE OF MIDDLEFIELD ROAD SOUTH 52° 55’ 14" EAST 1212.79 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM, THAT PORTION CONVEYED TO ROLF GRABMEIER BY DEED RECORDED APRIL 8, 1955, 3138-82 PARCELTHREE: Page 3 Order No.: 56901-51990229-PRT BEGINNING AT A POINT ON THE NORTHWESTERLY LINE OF THAT CERTAIN PARCEL OF LAND CONVEYED BY RALPH GROBMEIER, ET UX, TO ROLF GROBMEIER, A MARRIED MAN BY DEED DATED AUGUST 14, 1954 AND RECORDED OCTOBER 15, 1954 IN BOOK 2983 OF OFFICIAL RECORDS, PAGE 21 !, DISTANT THEREON, S. 57 DEG. 42’ 46" W. 221.83 FEET, FROM THE POINT OF INTERSECTION OF SAID NORTHWESTERLY LINE WITH THE SOUTHWESTERLY LINE OF MIDDLEFIELD ROAD; THENCE ALONG THE NORTHWESTERLY LINE OF SAID GROBMEIER PARCEL, S. 57 DEG. 42’ 46" W. 221.83 FEET TO THE MOST WESTERLY CORNER THEREOF; THENCE ALONG THE SOUTHWESTERLY LINE OF SAID GROBMEIER PARCEL AND PARALLEL WITH SAID LINE OF MIDDLEFIELD ROAD, S. 57 DEG. 55’ 14" E. 95.97 FEET; THENCE LEAVING THE SOUTHWESTERLY LINE OF SAID GROBMEIER PARCEL AND RUNNING, N. 32 DEG. 04’ 46" E. 200.00 FEET TO THE POINT OF BEGINNING AND BEING A PORTION OF THE RANCHO RINCONDE SAN FRANCISQUITO. F~ARCEL FOUR: BEGINNING AT THE MOST SOUTHERLY CORNER OF LOT 11 IN BLOCK 1, AS SHOWN ON THE MAP OF TRACT 1310, GREENMEADOW, WHICH MAP WAS FILED FOR RECORD IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA ON JULY 7, 1954, IN BOOK 50 OF MAPS, PAGES 50 AND 51; THENCE ALONG A SOUTHWESTERLY LINE OF SAID LOT 1 !, N. 33° 33’ 18" W., 40.00 FEET; THENCE ALONG A SOUTHEASTERLY LINE OF LOTS 11 AND LOT 12, IN BLOCK 1, AS SHOWN ON THE MAP HEREINABOVE REFERRED TO, S. 56° 26’ 42" W., 50.00 FEET; THENCE ALONG A NORTHEASTERLY LINE OF SAID LOT !2, S. 33° 33’ 18" E., 40.00 FEET; THENCE ALONG THE NORTHEASTERLY PROLONGATION OF THE MOST SOUTHERLY LINE OF SAID LOT 12, N. 56° 26’ 42" E., 50.00 FEET TO THE POINT OF BEGINNING, AND BEING A PORTION OF THE SANTA RITA RANCHO. ASSESSOR’S PARCEL NUMBER:147-08-003 Page 4 Order No.: 56901-51990229-PRT At the date hereof exceptions to coverage in addition to the printed exceptions and exclusions contained in said policy form would be as follows: o 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. Rights of the public, county and/or city in that portion lying within the street as it now exists: Middlefield Road. An easement affecting the portion of said land and for the purpose stated herein, and incidental purposes. In Favor of:Pacific Gas and Electric Company, a California corporation No representation is made as to the present ownership of said easement. Purpose:Gas pipeline Recorded:December 11, 1935 Book:748 Page:487 Affects:As therein described An easement affecting the portion of said land and for the purpose stated herein, and incidental purposes. In Favor of:City of Palo Alto No representation is made as to the present ownership of said easement. Purpose:Public street Recorded:July 22, 1954 Book:2920 Page:557 Affects:The Southwesterly boundary of Parcel Two, as therein described Any rights of parties in possession of said land, based on any unrecorded lease or leases, as disclosed by an inspection of said land and/or inquiry. Note: Please submit copies of leases for review. Matters which may be disclosed by an inspection or survey of said land or by inquiry of the parties in possession thereof. Note: An inspection of said land should be ordered prior to close of escrow and upon its completion, we will advise you of our findings. Page 5 Order No.: 56901-51990229-PRT INFORMATIONAL NOTES: Eo There is located on said land a commercial structure known as 4000 Middlefield Road, Palo Alto, California. There are no conveyances affecting said land recorded within twenty-four (24) months of the date of this report. This charge for a policy of title insurance, if issued through this title order, will be based on the basic insurance rate. General/Special Property Taxes for fiscal year 2001 - 2002 and possible prior years were not assessed. In addition to the county transfer tax of $0.55 per $500.00 the land herein also subject to a City of Palo Alto conveyance tax in the amount of $1.65 per $500.00 valuation. This city tax is figured on the full value of the land with no credits for existing loans or bonds. Page 6 Order No.: 56901-51990229-PRT ® 0 EXHIBIT I AMENDMENT NO. 2 TO LEASE AND COVENANT NOT TO DEVELOP BETWEEN THE CITY OF PALO ALTO AND THE PALO ALTO UNIFIED SCHOOL DISTRICT This Amendment No. 2 to Lease and Covenant Not to Deve!op is entered into this day of , 200_ by and between the Palo Alto Unified School District ("District") and the City of Palo Alto, a municipal Corporation ("City"). RECITALS A. The City and the District entered into that certain Lease and Covenant Not to Develop on September i, 1989 ("Lease") which provides in part that the City leases from the District certain property commonly referred to as the Cubberley Site. The parties entered into the Amendment No. 1 to Lease and Covenant Not to Develop on July 20, 1998. B. The City and the District have now entered into a property exchange agreement whereby the City will convey to the District a portion of a site known as the Terman site in exchange for the District conveying fee title to the City of 7.97 acres of the Cubberley Site. The City will continue to lease from the District the remaining portion of the Cubberley Site. C. Pursuant to Section 4.1 of the Lease, District covenants with City and City covenants with District that, in order to prevent further burden on City’s infrastructure and preserve a substantial amount of City’s remaining open space, certain school sites shall not be subdivided, sold or developed with additional square footage to be used for non-school district purposes. D. Section 6.5.2(b) of the Lease provides that in the event District wishes to reopen, as an operating schoo!, any of the Covenanted Sites described in Exhibits D, E, and F, it may do so upon written notice to City, provided that in such event, City and District shal! amend the Lease to include within the Covenant Not to Develop two operating elementary school sites of District within the city limits of the City of Palo Alto. Amendment No. ! to the Lease and Covenant Not to Develop O11206 syn 0090980 substituted the Walter Hays Site and Juana Briones Site as replacements for the "old" Ohlone site which has been renamed "Hoover School." E. The District has now re-opened the Garland Site and wishes to designate Addison and E1 Carmelo as the two operating schoo! sites to be substituted for the Garland Site. F. Section 4.1 of the Lease limits additional development on any Covenanted Site for non-school district purposes to 2,000 square feet. As part of the re-opening of the Terman Middle School, the District will grant a license to use the Greendell Site to the Albert L. Schultz Jewish Community Center (~JCC") for interim childhood development programs. The JCC wishes to use nine (9) portable classrooms and one portable bathroom, each with an area of approximately 960 square feet, on the Greende!l Site. City is willing to amend the Lease to permit the installation and use of these portable facilities by the JCC without additional consideration; however, the installation and use of such portable facilities requires a conditional use permit from the City. G. City and District wish to amend t.he Lease and Covenant Not to Develop to provide for the reduction in area of the Cubberley Sit9 and reduction in rent; the reopening of the Garland Site and the substitution of the Addison site and the E1 Carmelo site within the Covenant Not to Develop; to permit the interim use of portable buildings at the Greendell Site; and to grant to District the right to open a compact high school at Cubberley after the JCC has ceased relocated its operations from Cubberley. NOW, THEREFORE, for consideration, which is acknowledged, the parties agree as follows: receipt of !. Site Description. Section 1.1.5 of the Lease is hereby amended in its entirety to read as follows: "1.1.5 Leased Site-Cubberley Site. Effective September !, 2002, the term ’Leased Site’ means all of that certain real property situated in the City described in Exhibit A attached hereto and made a part hereof, and all improvements thereon as of September i, 2002." O11206 syn 0090980 2. Covenanted Sites. amended to read as follows: Paragraph 1.1.8 is hereby "1.1.8 Covenanted Sites.The term ’Covenanted Sites’ means all that certain property situated in the City described in EXhibits B, C, D-I, D-2, E-I, E-2, F, and G attached hereto and made a part hereof." 3. Reopening of Garland Site. hereby deleted. Paragraph I.I.I0 is 4. Substitution of Addison and E1 Carmelo. Paragraphs I.i. I0.i and 1.1.10.2 are, respectively, are hereby added to read as follows: "i.I.I0.! Addison Site. The term ’Addison Site’ means all that certain real property situated in the City described in Exhibit E-I attached hereto and made a part hereof. 1.1.10.2 E1 Carmelo Site. The term ’El Carmelo Site’ means all that certain real property situated in the City described in Exhibit E-2 hereto and made a part hereof." 5. Covenant Payments. to read as follows: Section 2.2 is hereby amended Walter Hayes/Juana Briones Addison/El Carmelo Greendell Jane Lathrop Stanford Jordan $204,742 $182,804 $182,804 $236,000 $164,000 6. Lease Payments. Section 2.8 is added to the Lease and Covenant Not to Develop to read as follows: "2.8 Reduction in Rent. City obligation to pay rent to the District for the Cubberley Site shall be reduced, commencing September i, 2002, by an amount equal to $23,490 per month, (’the Offset ~Amount.’) Whenever the Payment is adjusted pursuant to Section 2.7, the Offset Amount shall be adjusted by the same method." O11206 syn 0090980 7. Cubberley Lease. Section 3.0 of the Lease is hereby amended in its entirety to read as follows: "3.0 Cubberley Lease. District hereby leases to City and City hereby leases from District for the term, at the rental, and upon all of the conditions set forth herein, the Leased Site commonly known as ’Cubberley Schoo!’ situated in the City of Palo Alto described in Exhibit A attached hereto and made a part hereof and all improvements thereon. As of September I, 2002, the total acreage of the Leased Site is approximately 27.48 acres of which 15.94 acres is outdoor recreation area; the remaining 11.54 acres is comprised of parking lot area, walkways, and approximately 80,150 square feet of buildings; however, it is understood that such acreage and square footage figures are only approximate and have not been precisely detemined. 8. Covenant Not to Develop. Section 4.1 of the Lease is hereby amended in its entirety to read as follows: ~4.1 District hereby covenants with City and City" hereby covenants with District that, in order to prevent a further burden on the City’s infrastructure and in order, to preserve a substantial amount of the City’s remaining open space, which contributes to the welfare of the City’s residents, the Covenanted Sites situated in the City of Palo Alto and described in Exhibits B, C, D-I, D-2, E-I, E-2, F and G attached hereto and made a part hereof, shall not be (I) subdivided, (2) sold or (3) developed with additional square footage to be used for non-school district purposes for the term of this Lease, for the consideration and upon all the conditions set forth herein, provided that the district may add portable non-permanent structures totaling no more than 2,000 square feet per Covenanted Site. If the District adds such square footage on any Covenanted Site, it shall give written notice to the City within 30 days of such addition. Provided, City hereby agrees that placement of up to nine portable class rooms and one portable bathroom, each consisting of approximately 960 square feet, on the Greendell Site, to be used by the JCC as O11206 syn 0090980 an interim relocation site for childhood development programs for not more than eight years, shall not be a violation of this Covenant. City acknowledges that location and use of such facilities by District itself for school-district purposes is not a violation of the Covenant and does not require City consent. JCC may not place or use portable facilities on the Greendell Site prior to obtaining a conditional use permit from City. Upon the expiration or earlier termination of this Lease, except as provided in Section 4.2, the City shall execute and deliver to District a quitclaim deed for the Covenanted Sites, unless otherwise agreed to by the parties." 9. Exhibit E to the Lease is deleted and replaced with Exhibits E-I and Exhibits E-2, respectively; and the Summary of Exhibits is amended accordingly~ I0. District Option to Open Compact High School. Not withstanding any other provision of the Lease, after the JCC has removed its programs from the City-owned property at the former Cubberley Schoo! and from the Leased Site, District may terminate the Lease with respect to all or a portion of the Leased Site so that it may operate a compact high schoo! at Cubberley. District must provide twenty-four (24) months written notice to City of such termination or partial termination. If the District elects a partial termination, the notice shal! include a map and lega! description specifying the new Leased Site, and the City’s payment for the Leased Site, shall be reduced in proportion to the reduction in the land area of the Leased Site. Further, if the District elects a complete or partial termination of the Lease under this Section i0, the District and City shall enter into a joint use agreement regarding the gym, cafeteria, theatre and fields. The Covenant Not to Develop shal! remain in effect. Ii.Effect of Amendment No. 2. (a) As amended herein, the Lease dated September I, 1989 and Amendment No. 1 remain in full force and effect. In case of any conflict between any of the amendments made in this Amendment No. 2 and the remaining provisions of the Lease as entered into September i, 1989 and Amendment No. !, the O11206 syn 0090980 5 Lease and Amendment No. ! shall be interpreted so as to give effect to the provisions of this Amendment No. 2. (b) This Amendment No. 2 shall be effective upon the date first written above. By separate agreement, parties have agreed that prior to September i, 2002, District shal! transfer to City fee title to that portion of the Cubber!ey Site removed from the leasehold by Section 7 of this Amendment No. 2. If, pursuant to that agreement, the transfer of Cubberley property to City and the release of City’s interest in the reduction in City rent will be accelerated to coordinate with that closing, and the transfer to the District of the City’s right to receive renta! income for the Terman Site from the JCC. IN WITNESS WHEREOF, the District and the City have caused this Amendment No. 2 to be executed by their respective officers as of the day and year first above written. ATTEST:CITY OF PALO ALTO City Clerk Mayor~ APPROVED AS TO FORM:PALO ALTO UNIFIED SCHOOL DISTRICT, Lessor Senior Asst. City Attorney President, Board of Education APPROVED:APPROVED: City Manager Superintendent of Schools Exhibit E-I Exhibit E-2 Addison Site E1 Carmelo Site (Legal Description and Map) (Legal Description and Map) O11206 syn 0090980 6 EXHIBIT E-I ADDISON SITE [Legal Description and Map to be provided] 011206 syn 0090980R EXHIBIT E-2 EL CARMELO SITE [Legal Description and Map to be provided] 011206 syn 0090980R City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: COMMUNITY SERVICES 6 DATE:DECEMBER 10, 2001 SUPPLEMENT TO CMR: 448:01 SUBJECT: APPROVAL OF AN AGREEMENT FOR JOINT USE OF TERMAN SITE WITH THE PALO ALTO UNIFIED SCHOOL DISTRICT RECOMMENDATION This report supplements CMR:448:01 relating to the Agreement for Joint Use of Terman Site between the Palo Alto Unified School District (PAUSD) and the City, attached as Exhibit F to the Lease Amendment and Land Exchange Agreement. BACKGROUND An integral element of the proposed Terman for Cubberley property exchange agreement with PAUSD is the continued use of the Terman gymnasium and pool to provide community services to southwest Palo Alto. Additionally, in order for PAUSD to run a full-service middle school at the Terman site, the district will require limited "ftrst call" access to Terman Park fields and tennis courts during school hours. The Joint Use Agreement accomplishes both of these provisions and creates policies and procedures to ensure cooperation between the two agencies. DISCUSSION The agreement specifies that the PAUSD will make Terman Middle School facilities available to the City at no cost. These facilities include the swimming poo!, gymnasium, and library wing. It also specifies that the City will make the Terman Park fields and tennis courts available to the School District. The PAUSD will be required to pay fifty percent of City-provided field and tennis court maintenance as well as mutually agreed upon field and tennis court capital work. The following summarizes the agreement: PAUSD will have priority in scheduling events and programs at the Terman Middle School. Second scheduling priority will go to City of Palo Alto- produced and co-sponsored activities. The City will continue its maintenance of Terman Park fields and tennis courts. PAUSD will pay for one half of the actual cost to maintain and improve the fields and tennis courts. SUPPLEMENT TO CMR:448:01 Page 1 of 3 During non-school hours, the public will continue to have full use of Terman Park. During school hours,, the District will have non-exclusive "first call" on dedicated fields, including the ability to take reasonable steps to assure student safety. Permanent fencing or other barrier will not be allowed. The City will continue its existing library services until such time that PAUSD gives notice that it requires the full site for its middle school. Restroom facilities located at the school site will be made available to the public during City-run programs at Terman Middle School or in Terman Park. A Terman Joint Use Committee will be established to administer this agreement, plan and schedule the facility, and mitigate issues that may arise. RESOURCE IMPACT The City of Palo Alto will receive fifty percent of the costs, an estimated $69,000 annually, associated with the maintenance of the Terman Park fields and tennis courts. The City will also receive fifty percent of costs related to necessary capital improvements to the fields and tennis courts, if approved by both the City and PAUSD. The City is responsible for all repairs caused by the City’s use of PAUSD facilities and any additional custodial costs incurred that are directly related to City sponsored and co-sponsored activities. All money owed to the City will be credited against monthly lease payments payable to the PAUSD. POLICY IMPLICATIONS Terman Park is dedicated parkland. This agreement gives limited exclusive use of the Park to the PAUSD to run middle school operations. However, the park will remain fully open to the community outside of school hours and scheduled school activities. TIMELINE This agreement becomes effective when the Terman Lease Amendment and Land Exchange Agreement between the PAUSD and City of Palo Alto is approved and in effect. ENVIRONMENTAL REVIEW This agreement is categorically exempt from the California Environmental Quality Act (CEQA). SUPPLEMENT TO CMR:448:01 Page 2 of 3 PREPARED BY: DEPARTMENT HEAD: Deputy ;~f Community Services PAUL THILTGEN Director of Community Services CITY MANAGER APPROVAL: EMILY Assistant City Manager SUPPLEMENT TO CMR:448:01 Page 3 of 3