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HomeMy WebLinkAbout08/19/2008, C10 - TANK FARM GRAVITY SEWER, LIFT STATION AND FORCE MAIN PROJECT- LATHROP PROPERTIES EASEMENT PURCHASE 1 � � council j acEnaa Repottt CIO CITY OF SAN LU IS OB I S PO FROM: Dave Hix,Acting Utilities Directo1-%4'� Prepared by: Jennifer Metz,Utilities Projects Manager SUBJECT: TANK FARM GRAVITY SEWER, LIFT STATION AND FORCE MAIN PROJECT - LATHROP PROPERTIES EASEMENT PURCHASE CAO RECOMMENDATION 1. Approve a Sewer Facilities Easement Deed with Lathrop Properties and authorize the Mayor to execute the Deed. 2. Approve a Right of Way Agreement with Lathrop Properties in the amount of $26,100 for sewerline improvements and authorize the Mayor to execute the Agreement.. 3. Authorize CAO to execute the necessary supplemental escrow paperwork to complete the transaction. DISCUSSION Work on the Tank Farm Gravity Sewer, Lift Station and Force Main Project (Tank Farm Project) extends along Broad Street, Tank Farm, Sueldo, Bonetti, Empressa, and Prado Roads (Attachment 1). There are four landowners in proximity to the project including Coker Ellsworth Development (265 Meissner Lane), Union Oil Company (276 Tank Farm Road), Hidden Hills Mobilodge (650 Tank Fane Road), and Lathrop Properties (660 and 666 Tank Farm Road). This project involves the purchase of real property (the Lift Station Site), as well as obtaining permanent access easements, sewerline easements,and temporary construction easements from these landowners. This report covers the purchase of easements on the property owned by Lathrop Properties at 660 and 666 Tank Farm Road. It consists of a 20-foot wide by approximately 175-foot long (3,765 square foot)permanent sewerline easement and an adjacent 60-foot wide by approximately 175-foot long (10,714 square foot) temporary (12-month) construction easement. The legal descriptions of the easements are included in Attachment 2, Sewer Facilities Grant Deed. City staff and real estate services consultant Hamner Jewell and Associates have been working with the property owner to negotiate the purchase of real property and the subject easements for the past several weeks. As part of these negotiations, the City commissioned an appraisal for the proposed easements of the property in May 2008, The market value for the properties to be acquired was based upon an appraisal done by a certified and state licensed appraiser, which was prepared in accordance with accepted appraisal principals and procedures. The landowners have agreed to $26,100 compensation wherein approximately $18,100 is for a permanent sewerline easement and approximately$8,000 is for a temporary construction easement as described in Attachment 3, Right of Way Agreement. Based on the appraised value and further negotiations with the property owner, staff feels that it is fair and appropriate compensation for the easements. � �n-1 r Tank Farm Project,Lathrop Properties Easement Purchase Page 2 FISCAL IMPACT Approval of the recommended Lathrop Properties easement purchase agreement for the Project will cost a total of $26,100. The remaining Tank Farm Project easement purchases on the Coker- Ellsworth, Union Oil Company and Hidden Hills Mobilodge properties are the subject of separate reports at this same Council Meeting. The approved Tank Farm Project budget is$12,910,000, as follows: Project Budget Current Budget Proposed Change Revised Budget Study 60,345 0 60,345 Land Acquisition-99703 416,000 50,100 466,100 Land Acquisition-55300-7227 58,167 0 58,167 Design 933,216 0 933,216 Construction and Contingencies 10,446,000 (50,100) 10,395,900 Construction Management/Office Engineering 996,272 01 996,272 Total 1 12,910,000 12,910,000 The total cost of the easement acquisitions collectively for this project is $466,100. . Available contingency funding in the amount of $50,100 will be transferred to the land acquisition phase of the project budget, resulting in a revised land acquisition budget of$466,100. Sufficient budget is available to complete acquisition of the required easements for this project. ATTACHMENTS 1. Tank Farm Gravity Sewer,Lift Station and Force Main Project Map 2. Sewer Facilities Easement Deed 3. Right of Way Agreement GXAR Reports\2008 Council Agenda Reports\Tank Farm Sewer Project\Lathrop Easement Acquisition r io- 2 Attachment 1 City of San Luis Obispo Tank Farm Gravity Sewer,Lift Station, and Force Main Project r y'1 ;�' -,/ •�. ♦ ,:{APP v 75 tiO ras .t r NI . _r_. ��' s.� W a����4 d .�,t♦! .T3nk � 'f l _ �'v• ' �i r 4 _-ei r r r.<3< I ... i f � s P •' � •1Yt�`�(y IUM � LI' `�_\ -���./y.' {L 4 I "�h ` P IT '.. ` sae. \\�\� l ,i ! .1.. „� i�,' �► ,.1�'Ra,�:.S -t osxurr PROJECT ROUTE -•- '�♦ Jr •pct. •; �� 7 ." . I `�. "�` I .. �•.� � A �/ �� ,� /y7< 'r '' '�jy"...`'e =." { _^\ `\ '',` 1 ♦. / 220 .: J ®SewaKe% •e��-'= ,PRADO ROAD Weill A~ Drsposa�.�. ~. 1 i `-!r ,�y�---,� `J 1 :..ci!••�. C�•\ 4, 119 1 i ... / r...z0 � 4i•"�as( � ... . tip_ � �. � e \ well ,.�) woG,�.��afTJ ,� v.p ' •W�1 ? o lY(J•2° '. `gM k re�� �t+'1... x ... . f t' Cif Ye!// - :� �i+ \• r8 ry Coke• s,.. s a ,� • :_ Hidden Hills f . •:�z��' �. Ia� v, Ellsworth _ Union Mobllodge i, s • ,..• o ;► I - Pa Development ;�Pm Oil r .•� �{ • , y$tat TI (TANK FAM ROAD ,r,♦Sn✓J .:q �1 " �. ^. '• ! ........Nh........./.... N... N 3 � ... — iu a _ .. Lathrop - "tt°,�.+~'tty '. ' ! li 1��.. ••Lk t , I a PropeRleS' a Union Union)1. ' u t ABxa^ ; Oil � :. Oil r 7 u ,. R�j f - ; a/ ':e-1i r" r.---: -� �` _ •�vr per. ., , / +w @ �-- irk � aq.:y 11 ♦ �t t, .du' C.E" ,•'__ -.—� —='�zy.u'c r"i �t- )< r � J 'rl ATTACHMENT 1:Tank Farm Gravity Sewer, Lift Station and Force Main Project Map NORTH Not to Scale Glo- � Attachment 2 Recorded at request of and When recorded return to: .Hamner, Jewell &Associates Government Real Estate Services 340 James Way, Suite 150 Pismo Beach, CA 93449 SPACE ABOVE-nus UNE FOR RECORDER'S USE APN: 076-381-009 and 076-381-015 (SLO County) No recording fee per Government Code 6103 No Documentary Transfer Tax per Revenue& Taxation Code 11922 City of San Luis Obispo SEWER FACILITIES EASEMENT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, LATHROP PROPERTIES, LLC, a California Limited Liability Company (hereinafter referred to as "GRANTOR") does hereby GRANT to the CITY OF SAN LUIS OBISPO, a municipal corporation and a charter city in the County of San Luis Obispo, State of California("CITY") the following interests in real property: A. A Permanent Sewerline Easement for the installation, construction, reconstruction, enlargement, operation, maintenance, replacement, and repair of a sewerline, conduit and related appurtenances, including associated utilities, valves, manholes, markers, and related facilities, and ingress and egress rights associated therewith. This Permanent Sewerline Easement ("Permanent Sewerline Easement") shall be in, over, on, along, through, within, under, and across the Permanent Sewerline Easement Area of the Real Property as defined in this paragraph. The "Real Property" is in the County of San Luis Obispo, State of California and is described in Exhibit"A" attached hereto and incorporated by reference herein. The"Permanent Sewerline Easement Area"which comprises the Permanent Sewerline Easement is described and depicted in Exhibits "B" and "D" attached hereto and incorporated by reference herein. a 1 of 4 SLO Cite/Tank Farm Road/Lathrop/Deed rev 7/31/t3 C i o— 7 Attachment 2 The Permanent Sewerline Easement described herein shall be SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS: 1. The facilities and improvements installed.in the Permanent Sewerline Easement Area collectively are referred to herein as "City Facilities." Plans for City Facilities as they exist from time to time shall be maintained at the City's principal offices. 2. City shall have the right of ingress and egress for personnel, vehicles, and construction equipment to, from, and along the Permanent Sewerline Easement Area at anytime, without prior notice, including the right to use lanes, drives, rights-of-way, and roadways within the Real Property which now exist or which hereinafter may be constructed, as shall be convenient and necessary for the purpose of exercising the rights herein set forth; provided, however, that nothing herein shall prevent or limit Grantor's rights to close such roadways, lanes, or rights-of- way, and to provide City with comparable alternative access to the Permanent Sewerline Easement Area, as deemed reasonable by the City. 3. As the amount of earth or other fill over City Facilities can affect the structural integrity of the City's underground facilities, City shall have the right to maintain the height of earth or other fill over City's underground facilities. Grantor shall not temporarily or permanently modify, or allow others to in anyway modify, the ground surface elevation in the Permanent Sewerline Easement Area from the elevation established upon completion of construction of the City Facilities without the City's written consent, which consent shall not be withheld unreasonably. Grantor shall not conduct,or permit others to conduct, grading operations, ripping, stockpiling, or use, or permit others to use, explosives within or proximate to the Permanent Sewerline Easement Area to the extent that City Facilities may be damaged. 4. Subsequent to the grant of this Easement, Grantor shall not grant any easements of any kind whatsoever to others in, over, on, through, within,under and across the Permanent Sewerline Easement Area without prior written consent of the City. 5. The Permanent Sewerline Easement is subject to all existing fencing, canals, irrigation ditches,laterals, pipelines, roads, electrical transmission facilities, telephone and telegraph lines, and all future uses which do not directly or indirectly interfere with or endanger City's exercise of the rights described herein, including the right to use the Permanent Sewerline Easement Area for agricultural purposes which do not include vegetation which endangers the integrity of the City Facilities, provided, however, that City shall have the right to clear and keep clear from the Permanent Sewerline Easement all explosives,buildings, structures, walls, and other facilities of a permanent nature which interfere with City's use of the Permanent Sewerline Easement. Grantor shall not construct, nor permit others to construct, such permanent facilities that conflict with City's ability to access and use the Permanent S.ewerline Easement: City shall have the right of exclusive use and possession within the Permanent Sewerline Easement area for a distance of two (2) feet in every direction around the outside surface of the City Facilities. In addition to any other legal and equitable remedies for violations of this paragraph, City shall have the right to do all things necessary and proper to remove any such vegetation, explosives and improvements that conflict and/or interfere with the rights granted to City herein, at the Grantor's expense. 2 of C �b—S SLO City/Tank Farm Road/Lathroo/Deed rev 7/3 t/0¢ �j Attachment 2 Together with: B. A Temporary Construction Easement for the purposes of facilitating construction of City Facilities, including the right to place equipment and vehicles, pile earth thereon, and utilize said.Temporary Construction Easement for all other related activities and purposes associated with facilitating the construction of City Facilities within the Permanent Sewerline Easement described hereinabove, in, on, over, under, through, and across that certain parcel (or parcels) of land described and depicted as `-`Temporary Construction Easement"in Exhibits "C" and "D", attached hereto and incorporated herein. This Temporary Construction Easement shall commence the day after this Deed is recorded in the San Luis Obispo County Recorder's office, and shall terminate within twelve (12). months after commencement; provided, however, that City shall have the right to extend the Temporary Construction Easement term in additional one(1) month increments if City determines that additional time beyond the twelve month period is necessary for construction completion. In such case, City shall have the unilateral right to extend the Temporary Construction Easement period through construction completion and agrees to compensate Grantor One Thousand Six Hundred Twenty Five Dollars ($1,625.00) for each one month extension term exercised. Payment for any such extensions shall be paid by City to Grantor concurrent with City's written notice to Grantor of City's intent to exercise such extension provisions. In any event, this Temporary Construction Easement shall terminate on or before June 30, 2010. Upon completion of construction of City's Facilities, the Temporary Construction Easement area shall be generally restored to the condition that existed prior to construction; to the extent reasonably practical. GRANTOR: LATHROP PROPERTIES, LLC A Califo Limited Liability Company By . Scott R. Lathrop Title: Managing Member State of California County of San Luis Obispo On T q �, I .ZCO8 before me, I 't a� �' Notary Public, personally appeared SCOTT R. LATHROP, proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is trueand correct. LILLIAN D. JEWELL WITNESS my/hand and official seal. U COMM. #1771011 Q .e NOTARY PUSUC.CALIFORNIA Q SAN LUIS OBISPO COUNTY Cl COMM.EXPIRES SEPT.30,2011 Signatu*49og L(Seal) 3 of C �b_/ _ SLO City/Tank Fanu Road/Lathroo/Deed rev 7/3I/nq l0 Attachment 2 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the Sewer Facilities Easement Deed dated , from Lathrop Properties LLC, a California Limited Liability Company, Grantor therein, to the City of San Luis Obispo ("City"), is hereby accepted by the undersigned officer on behalf of City, and City hereby consents to the recordation thereof by its duly authorized officer or agent. In Witness Whereof, I have set my hand this day of 2008. CITY OF SAN LUIS OBISPO By Name: Dave Romero Title: Mayor APPROVED AS TO FORM: CJon an P. Lowell, City Attorney Attest: City Clerk 4of4 SLO Citv/Tank Farm Roadll..ithron/nf-N t rpv 7/11 mR Attachment 2 EXHIBIT A LEGAL DESCREMON All that real property situate in the County of San Luis Obispo,State of California being a portion of Lot 57 ofthe San Luis Obispo Suburban Tract,said portion of Lot 57 being shown on a Record of Survey recorded in Book 67,Page 93 of Records of Survey;said portion of said Lot 57 being more particularly described as follows: Beginning at the Soudeast coma of said Lot 57 as shown on said Record of Survey,said point being the True Point of Beginning';Thence,along the Easterly line of said Lot as shown on said Record of Survey, N 24°53'50"W462.07 feet;Thence;leaving said Easterly line along the following courses: S21027,20" 5V 97.84 feet; S 9055'32"W 115.43 feet; S 14°44'01"E 275.02 feet; S 24052708"E 22.99 feet to a point m the Wsting right of way of Tank Farm Road as shown on said Record of Survey,Thence,along said right of way along the following courses N 65°07'52"E 16359 feet; S 24°53'50"E 4.87 feet N 65006125"E 20.00 feet to the True Point of Beginning,as descnbed on Certificate of Compliance recorded January 13, 1999 as instrument No. 1999-002652 of Official Records. APN:076,381.009&076,381,015 End of Legal Description E_::'#fl -k PAGEJ O f C ID- $ Attachment 2 EXMIT"B" Permanent Sewer Pipeline Easement Legal Description A portion of Lot 57 of that tract of land referred to locally as the"San Luis Obispo Suburban Tract"according to the map entitled,"Map of the Subdivisions of the Suburban Tract",in the County of San Luis Obispo,State of California,recorded February 70, 1906, filed in Book 1,at Page 92 of Licensed Surveys in the office of the Recorder for said County,being a portion of that parcel of land validated by Certificate of Compliance recorded January 13m 1999, filed as Instrument No. 1999-002652 of Official Records in the office of the Recorder for said County more particularly described as follows: Commencing at a 3"brass disc stamped LS 2019 marking the Northeasterly comer of said Lot 57; Thence,South 23°28'32"East, 1180.58 feet to a 2"brass disc at the Southeasterly comer of said Lot 57,on the Northerly boundary of the Tank Farm Road Right-of-Way(40 foot wide)shown on that map recorded May V% 1992,filed in Book 67,Page 93 of Record of Surveys in the office of the Recorder for said County,being the True Point of Beginning; Thence,along the South boundary of said Lot 57 and the Northerly boundary of said 40 foot wide Right-of-Way,South 66°31'07"West, 19.83 feet to that parcel of land conveyed to the County of San Luis Obispo,in fee,by Grant Deed filed in Book 1848,Page 434 of Official Records in the office of the Recorder for said County; Thence,along the Right-of-Way conveyed to the County of San Luis Obispo,in fee,by said Grant Deed,North 23029'08"West,4.87 feet; Thence,continue along the Right-of-Way conveyed to the County of San Luis Obispo by said Grant Deed, South 66°32'35"West, 163.59 feet to the West line of said parcel of land validated by Certificate of Compliance recorded January 13th, 1999,filed as Instrument No_ 1999-002652; Thence,leaving said Right-of-Way,along said West line,North 23027'25"West,20.00 feet; Thence,leaving said West line,North 66°32'35"East, 183.42 feet to the Northeasterly line of said Lot 57; Thence,along the Northeasterly line of said Lot, South 23°28'32"East, 24.86 feet to the True Point of Beginning. Containing 3,765 square feet more or less. SAND S End Description ~�Z2' HUI�y�o� � N Prepared by: * NO. 5139 a ¢ Daniel S.Hutc inson,PLS 5139(license renewal,06/30/09) Date: Jt�t OFCA111- i F:\proj1Z0021021 121\Survey\Design\Conswction Drasvings\English\(.egal Descriptions\61057}-CurrytPcrmancn[Pipeline j Easement.doc j:.:a Mrr h_PAGE OF I i � io 9 • _ Attachment 2 EXHIBIT "C" Temporary Easement Legal Description A portion of Lot 57 of that tract of land referred to locally as the"San Luis Obispo Suburban Tract"according to the map entitled, "Map of the Subdivisions of the Suburban Tract",in the County of San Luis Obispo, State of California,recorded February 7 , 1906, filed in Book 1, at Page 92 of Licensed Surveys in the office of the Recorder for said County,validated by Certificate of Compliance recorded January 13'', 1999 and filed as Instrument No. 1999-002652 of Official Records in the office of the Recorder for said county more particularly described as follows: A 60.00 foot wide strip of land that lies northerly of and adjoins the northerly boundary of the Permanent Sewer Pipeline Easement described by the hereinabove"Exhibit B'; Furthermore,the sidelines of this strip of land shall be lengthened and/or shortened to intersect property boundaries. Containing 10,714 square feet more or less. End Description Prepared by: Danie S. Hutchinso ,PLS 139 (license renewal, 06/30/09) Date: HU Uyyf S. C NO. 5139 a , ��lF Of CA1140�� - FAproj\2002\021121\Survey\Design\Constmetion Drawtngs\Enghsh\L.egal Descriptions\610573-Curry\Temporary Constmclion Easement.doc ii ;�.A JL PAGE—1.__.CW I Attachment 2 LINE TABLE UNE LENGTH BEARING L1 19.83 S66'31'07_"W ! 3' BRASS DISC L2 4.87 N2.3'29 08=W LOT as §6632' LS 2019 X 053i4o L3 163.59 � LOT 5 35"W L4 20.00 N2327'25'W I I \ L5 183.42 N6632'35'E L6 24.86 N23'28'32"W 076-3a 1-002 I L7 60.00 N23 28'32"W PTN. LOT 57 V L8 173.21 566'32 35'W L9 57.91 S131918E. I ` I \ LOT 054 8 076-381-016 LOT a4 , PTN. LOT 57 BY CERTIFICATE of COMPLIANCE a� / DOC. NO. 1999-002551 i OWNER:HIDDEN HILLS %0 i MOBILODGE, LLC (o LOT 83 � 'tr ua / o ' FTN. DoT 57 I SAH LUIS 00SF0 ; 075-_381--'o 14 SUBURBAN TRACT (1/ 5/92) I APN:076-381=009 CERTIFICATE OF % LOT 82 076-381-Dol COMPLIANCE DOC. NO. , ! PTN. LOT 57 1999-002652 BY CERTIFICATE OF OWNER:CURRY / I COMPLIANCE 1 / DOC. NO. ! 1992-072292 ! OWNER:SANTA FE V I TECHNOLOGIES, LLC PUBLIC ROAD AND ' SLOPE EASEMENT <� L ACCEPTED PER DOC. �/� U T.P.OB 20 BRASS DISC N0. 2005-067240 �j LS 2019 —TANK FARM ROAD -- w 'LOT UNE ADJUSTMENT PER DOC. NO. 1999-002652 OF o OFFICIAL RECORDS w OD PUBLIC ROAD �P EASEMENT ACCEPTED o _ PER 1848/OR/434 -ZC --= TEMPORARY CONSTRUCTION EASEMENT (TCE) = PERMANENT EASEMENT (PE) 200 400 EXHIBIT ® PERMANENT EASEMENT AREA= 3,765 S.F. 1 INCH =200 FEET TEMPORARY EASEMENT AREA= 10,714 S.F. 11"5 pOOItF)Ir us PNEPwIm 8t GI"Ilw wiwowrtS :. am (G)'a.w pmT a e"uesvvui.i¢AXLE cam 3 S, R12E, M.D.8:8cM. ®annQYl 91.4EwawMc.« nv< ME ta.ENr ur PTN. OF SUBURBAN TRACT, T 1 4_SPL!.5 T i S wwwrwx carts rm ww"wmN cam mEaN¢w ___... . NNMf2110N Q6Y wM MR Y(QR rR6CR f1XlMOL _ n ntstet DExEawFur itmvaSS Mwr M.wus m"aonc.nms COUNTY. OF SAN LUIS OBISPO, CALIFORNIA •LAtttt� muwSm0vl"s[ST YNN¢wmvpV¢o tt[Y[rate Nv wmVE OMEA MNIGw.T w:MrVr. M.DWt4 _ QMSEPIp6S w,IM G W IIOMFA NIFflNOw I """nom ""s'°° "a' DRAWN BY: MS THECKED BY: DSH DATE: 10/26/07 t•w N.Nv rnNsnmtEs wwrEwFNr ro MCS rt"";cam Sammons. ' Attachment 3 PARCEL NO. 076-381-009 and 076-381-015 PROJECT: TANK FARM ROAD SEWER PROJECT TITLE REPORT NO. 610573 RIGHT OF WAY AGREEMENT (WITH ESCROW INSTRUCTIONS) THIS AGREEMENT is made and entered into by and between LATHROP PROPERTIES LLC. a California Limited Liability Company hereinafter called "Grantor", and THE CITY OF SAN LUIS OBISPO, a municipal corporation and a charter city in the County of San Luis Obispo,,State of California hereinafter called "City." An instrument in the form of a Sewer Facilities Easement Deed (hereafter"Easement Deed") covering the property particularly described therein, has been executed concurrently with this Agreement and delivered to City representatives. In consideration of which, and other considerations hereinafter set forth, it is mutually agreed as follows: 1. The parties have herein set forth the whole of their agreement. The performance of this Agreement constitutes the entire consideration for said document and shall relieve the City of all further obligation or claims on this account, or on account of the location,grade or construction of the proposed public improvement, except as stated in Paragraphs 2.E. and 2.17. below. 2. The City shall: A. PAYMENT- Pay to the order of the Grantor the sum of TWENTY SIX THOUSAND ONE HUNDRED DOLLARS ($26,100) as consideration in full for the herein real property interests, for the loss, replacement and moving of any improvements, and for entering into this Agreement. Said sum shall be paid upon the close of escrow, which shall occur when title to said real property has vested in City free and clear of all liens, encumbrances, assessments, easements and leases recorded or unrecorded, except for recorded public utility easements and public right of way. Page l of 5 C(0 _ C SLO/Tank Fann Road/Latluop/ROw Agreement 7-27-03 J Attachment 3 B. RECORDATION OF INSTRUMENT- Accept the Easement Deed herein referenced and cause the same to be recorded in the office of the San Luis Obispo County Recorder at such time as when clear title can be conveyed. C. MISCELLANEOUS COSTS - Pay all escrow, title insurance, and recording fees incurred in this transaction. D. CLEARANCE OF BONDS, ASSESSMENTS, OR DELINQUENT TAXES - Have the authority to deduct and pay from the amount shown in Clause 2.A. above any amount necessary to satisfy any bond demands and delinquent taxes due in any year except the year in which this escrow closes, together with penalties and interest thereon, and/or delinquent and unpaid non-delinquent assessments which have become a lien at the close of escrow.. E. PROPERTY RESTORATION AND CONSTRUCTION FENCING- Generally restore Grantor's remaining real property to the condition that existed prior to City's project construction, to the extent reasonably practical. At the commencement of construction on Grantor's property and remaining for the duration of construction on Grantor's property, City or its contractor shall erect and maintain typical temporary construction fencing with access gates at each driveway. F. INDEMNIFICATION -Defend, indemnify, and hold harmless Grantor from any and all claims, damages, costs,judgments, or liability caused by City or its officers,employees or agents specifically arising from City construction and restoration work on Grantor's real property during the temporary easement period specified in the referenced Easement Deed. G. Sian Permit—Acknowledge and allow the construction of a new sign entitled by the County of San Luis Obispo without any additional City reviews or requirements. 3. The Grantor: A. PAYMENT ON MORTGAGE OR DEED OF TRUST- Agrees that any or all monies payable under this Agreement up to and including the total amount of the unpaid principal and interest on the note(s) secured by mortgage(s) or deed(s) of trust, if any, and all other amounts due and payable in accordance with the terms and conditions of said mortgage(s)or deed(s) of trust, shall upon demand(s) be made payable to the mortgagee(s) or beneficiary(s) entitled thereunder. B. LEASE INDEMNIFICATION - Warrants there are no oral or written leases on all or any portion of the herein referenced real property exceeding a period of one month, or if there are such leases, Grantor agrees to hold the City harmless and reimburse City for any and all of its losses and expenses occasioned by reason of any lease of said property held by tenant of Grantor for a period exceeding one month. C. GRANTOR'S KNOWLEDGE OF THE ENVIRONMENTAL CONDITIONS OF THE PROPERTY — Hereby represents and warrants that to the best of Grantor's knowledge and belief, throughout the period of ownership of the Real Property referenced in the Easement Deed ("Property") by Grantor, there has been no spill, discharge, release, cleanup or contamination of or Page 2of5 C1o_ i SLO/Taril.FmI71 RuadlLallu'oo/ROW Anreement z77_ns � Attachment 3 by any hazardous or toxic waste or substance used, generated, treated, stored, disposed of or handled by the Grantor, itsihis/her employees, and/or agents on or around the Property. Further, Grantor agrees to, disclose to City, prior to the close of escrow, all studies, reports, and investigations known to Grantor concerning any pollution, toxic building materials or toxic hazardous substances or wastes located at, on, or under the Property. 4. The Parties agree: A. ESCROW -To open an escrow in accordance with this Agreement at Cuesta Title Company. This Agreement constitutes the joint escrow instructions of City and Grantor, and Escrow Agent to whom these instructions are delivered is hereby empowered to act under this Agreement. The parties hereto agree to do all acts necessary to close this escrow in the shortest possible time. As soon as possible after opening of escrow, City will deposit the executed Easement Deed by Grantor, with Certificate of Acceptance attached, with Escrow Agent on Grantor's behalf. City agrees to deposit the purchase price upon demand of Escrow Agent. City and Grantor agree to deposit with Escrow Agent all additional instruments as may be necessary to complete this transaction. All funds received in this escrow shall be deposited with other escrow funds in a general escrow fund account(s) and may be transferred to any other such escrow trust account in any State or National Bank doing business in the State of California. All disbursements shall be made by check from such account. Any taxes which have been paid by Grantor, prior to opening of this escrow, shall not be pro-rated between City and Grantor, but Grantor shall have the sole right after close of escrow, to apply to the County Tax Collector of said County for any refund of such taxes which may be due Grantor for the period after City's acquisition. i) ESCROW AGENT DIRECTIVES - Escrow Agent is authorized to, and shall: a) .Pay and charge Grantor for any unpaid delinquent taxes and/or any penalties and interest thereon, and for any delinquent assessments or bonds against that portion of Grantor's property subject to this transaction as required to convey clear title. b) Pay and charge City for any escrow fees, charges and costs payable under Paragraph 2.C. of this Agreement. c) Disburse funds and deliver Easement Deed when conditions of this escrow have been fulfilled by City and Grantor. d) Following recording of Easement Deed from Grantor, provide City with a CLTA Standard Coverage Policy of Title Insurance in the amount of$26,100 issued by Cuesta Title Company showing that title to the herein real property is vested in City, subject only to the following exceptions, and the printed exceptions and stipulations in said policy: Paee3of5 C�h_ fL SLOJTunl:F;um Ruad�'Lathroo/ROW Aerrcroment 7-27-03 lJ ( Attachment 3 1) Real Property Taxes for the fiscal year in which escrow closes; 2) Items No. 1, 2, 3, 4, and 5 of the preliminary title report issued by Cuesta Title Company, dated February 7, 2006, referenced as Order No. 610573; and 3) Other items that may be approved by City, in writing, in advance of the close of escrow. ii) CLOSE OF ESCROW -The term "close of escrow," if and,where written in these instructions, shall mean the date necessary instruments of conveyance are recorded in the office of the County Recorder. Recordation of instruments delivered through this escrow is hereby authorized. B. SETTLEMENT PROPOSAL - This Agreement represents Grantor's settlement proposal to City. City shall not be bound to the terms and conditions herein unless and until this Agreement has been approved and ratified by the City Council and has been executed by the appropriate City official(s) acting in their authorized capacity. C. ARTICLE HEADINGS - Article headings in this Agreement are for convenience only and are not intended to be used in interpreting or construing the terms, covenants and conditions of this Agreement. D_ COMPLETE UNDERSTANDING - This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof, superseding all negotiations,.prior discussions, and preliminary agreements or understandings, written or oral. This Agreement may not be amended except in writing by the parties hereto or their successors or assigns. E. COUNTERPARTS - This agreement may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument. F. SUCCESSORS AND ASSIGNS —This Agreement shall apply to and bind the heirs, executors, administrators, assigns and successors of the parties hereto. G. CITY COUNCIL APPROVAL- This Agreement is subject to and conditioned upon approval and ratification by the San Luis Obispo City Council. This Agreement is not binding upon the City until executed by the appropriate City official(s) acting in their authorized capacity. Signatures appear on following page.... Page 4 of S C( 19 SLOiTattk FainRuaeUladvop/RO��'AgreementD 7-27-03 V _J Attachment 3 No Obligation Other Than Those Set Forth Herein Will Be Recognized. GRANTOR: LATHROP PROPERTIES, LLC, A Califo Limited Liability Company Dated: / ' 0 g By e: Scott R. Lathrop GRANTOR'S MAILING ADDRESS: Title: Managing Member Lathrop Properties LLC Attention: Scott R. Lathrop Post Office Box 13938 San Luis Obispo, CA 93401 CITY OF SAN LUIS OBISPO Dated: By Name: Title: MAILING ADDRESS OF CITY: ATTEST: City of San Luis Obispo 990 Palm Street By San Luis Obispo, CA 93401 City Clerk APPROVED AS TO FORM: Dated: Vame: than P. Lowell of San Luis Obispo, Attomey APPROVED AS TO CONTENT: By Dated: Name: David C. Hix Title: Wastewater Division Manager, City of San Luis Obispo Page 5 of 5 SLD/Tank Farm Road/Latluop/ROW Agreement 7-27-03 l IIJJ 1 IG