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Home My WebLink About01-19-2016 Item 8, MattinglyMemorandum January 15, 2016 TO: City Council FROM: Carrie Mattingly, Director PREPARED: Jennifer Metz, Utilities Project Manager VIA: Katie Lichtig, City Manager y, 1 Ak SUBJECT: City Council Agenda Item 8 P, ECEIV� -7 JAN 15 2016 COUNCIL MEETING: 0 ITEM NO.: % As part of Agenda Item 8, Well Site Relinquishment at 1460 Call Joaquin (Quiky Car Wash), the City Attorney determined that a resolution declaring the well and related infrastructure as surplus property was required. The amended recommendation for Agenda Item 8 appears below and the Resolution which includes the Quitclaim Deed and Indemnification Agreement Affecting Real Property and Bill of Sale for the well located at 1460 Calle Joaquin is attached. Recommendation Adopt a Resolution entitled "A Resolution of the City Council of the City of San Luis Obispo, California, declaring a Well and Related Infrastructure located at 1460 Calle Joaquin as Surplus Property and authorizing the Mayor to execute a quitclaim deed and Indemnification Agreement Affecting Real Property and Bill of Sale." Attachments 1. Resolution of the City Council of the City of San Luis Obispo, California, declaring a Well and Related Infrastructure located at 1460 Calle Joaquin as Surplus Property and authorizing the Mayor to execute a quitclaim deed and Indemnification Agreement Affecting Real Property and Bill of Sale RESOLUTION NO. (2016 Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, DECLARING A WELL AND RELATED INFRASTRUCTURE LOCATED AT 1460 CALLE JOAQUIN AS SURPLUS PROPERTY AND AUTHORIZING THE MAYOR TO EXECUTE A QUITCLAIM DEED AND INDEMNIFICATION AGREEMENT AFFECTING REAL PROPERTY AND BILL OF SALE WHEREAS, in 1989, the City of San Luis Obispo installed a well and related equipment and infrastructure at 1460 Calle Joaquin, San Luis Obispo, (the "Well "); WHEREAS, since July of 1995, the Well has been placed on "inactive" status and has not been used since; WHEREAS, with some minor exceptions, the City does not currently utilize groundwater as part of its water supply and the City does not foresee the need to utilize the Well in the future; WHEREAS, the overlying property owner is in the process of constructing a car wash at the site and desires to use the Well for its operations; WHEREAS, the City Council finds that transferring ownership of the Well to the overlying property owner is in the best interests of the City because the proposed car wash would use less potable water from the City and the City would no longer need to maintain the Well and related equipment and infrastructure. NOW, THEREFORE, BE IT RESOLVED that the City's Well and related equipment and infrastructure located at 1460 Calle Joaquin, San Luis Obispo, is hereby declared to be surplus property and the Mayor is hereby authorized to sign the Quitclaim Deed and Indemnification Agreement Affecting Real Property and Bill of Sale substantially in the form attached hereto as Exhibit "A" and incorporated herein. Upon motion of and on the following roll call vote: AYES: NOES: ABSENT: , seconded by The foregoing resolution was adopted this day of Mayor Jan Marx 2016. ATTEST: Traci R. McGinley City Clerk APPROVED AS TO FORM: J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this day of Traci R. McGinley City Clerk INDEMNIFICATION AGREEMENT AFFECTING REAL PROPERTY AND BILL OF SALE (Quiky Car Wash Well) FOR VALUABLE CONSIDERATION RECEIVED, BE IT KNOWN that, upon recordation of the executed Quitclaim Deed in the form attached hereto as Exhibit "1 ", the City of San Luis Obispo, a chartered municipal corporation ( "City ") hereby sells, transfers, conveys and assigns forever to ARH Quiky Investments, LLC, a California limited liability company ( "Quiky ") and Quiky's transferees, grantees, assigns and successors in interest, all of City's right, title and interest in and to the underground waterline, building, vault, concrete pad and well and any other related equipment, improvements or personal property attached thereto situated in the location depicted in Exhibit B to the Quitclaim Deed ( "Transferred Property "). Quiky acknowledges and agrees that City makes no representation or warranty whatsoever, express or implied, as to the quality of water underlying the property, the sufficiency of the well or the condition of the Transferred Property and Quiky accepts the Transferred Property on an "AS -IS, WHERE IS, WITH ALL FAULTS" basis. Quiky, and its transferees, grantees, assigns and successors in interest, agree to indemnify, defend and hold City harmless from and against, any and all losses, damages, costs and expenses (including, without limitation, reasonable legal fees and costs) arising out of or incurred with respect to any claims, demands, causes of action of any nature, any expense incident to defense, for injury to or death of persons or loss of or damage to property, including any alleged damages or liability resulting from the pumping and drawing of water from the above - described well, occurring subsequent to the execution of this Bill of Sale resulting from the use, operation or maintenance by Quiky, or its officers, agents, employees, transferees, grantees and successors in interest of the Transferred Property. Quiky acknowledges and agrees that its obligation to indemnify, defend and hold harmless City as set forth herein is a covenant that shall run with the land described in said Quitclaim Deed and shall be binding on Quiky's transferees, grantees, assigns and successors in interest. Quiky and City agree that upon recordation of the Quitclaim Deed a Memorandum of Agreement substantially in the form attached hereto as Exhibit "2" shall be recorded in the Official Records of San Luis Obispo County. Quiky shall pay for all recording fees, if any. Signed January , 2016 City of San Luis Obispo ARH Quiky Investments, LLC Jan Marx, Mayor Attest: Jon Ansolabehere, Interim City Clerk Approved as to Form: J. Christine Dietrick, City Attorney Bv: Its: EXHIBIT "1" Form Quitclaim Deed with Attachments RECORDING REQUESTED BY: and WHEN RECORDED MAIL TO: ARH Quiky Investments, LLC c/o Westpac Investments 835 Aerovista Place Suite 230 San Luis Obispo, CA 93405 DOCUMENTARY TRANSFERS _ SPACE ABOVE THIS LINE FOR RECORDER'S USE () Computed on the consideration or value of property conveyed; OR () Computed on the consideration or value less liens or encumbrances () remaining at time of sale. Firm Name - 053- 412 -017 QUITCLAIM DEED FOR A VALUABLE CONSIDERATION City of San Luis Obispo, a chartered municipal corporation, hereby QUITCLAIMS, GRANTS, and CONVEYS to Signature of Declarant or Agent determining tax - ARH Quiky Investments, LLC, a California limited liability company, Any and all rights, title and interests of record or arising by prescription, in and to the underground waterline, building, vault, concrete pad and well and any other related equipment, improvements or personal property attached thereto, including the right to draw water from the above - described well, situated in the location described in Exhibit "A" and depicted in Exhibit `B" attached hereto. Dated: , 20 City of San Luis Obispo, a municipal corporation, IM MAIL TAX STATEMENTS TO: Same address as shown above Exhibit A PARCEL 1 OF PARCEL MAP NO. SL 91 -227 IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED APRIL 20, 1992 IN BOOK 49, PAGE 40 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. Exhibit B GRAPHIC SCALE 0 20 40 El f) yN . (IN FEET) 11N =40 FT N J � o' Po •P �y uw% LO 7 r' eye t WALLACE GRM? _— APPROXIMATELOCATION OF UNDERGROUND WATER LINE - - BUILDING VAULT ABOVE GROUND PIPING CONCRETEPAD AND WELL DETAIL "A' 1'.10, EXHIBIT "B" QUIKY CAR WASH EXHIBIT WELL SITE SHEET 1 OF 1 OF EXHIBIT "B" JOB Na' 1231 -M DRAWING: IEGN. OM DRAWN BY: JBWA3 Exhibit 2 Memorandum of Agreement RECORDING REQUESTED BY. • and WHEN RECORDED MAIL TO: ARH Quiky Investments, LLC c/o Westpac Investments 835 Aerovista Place Suite 230 San Luis Obispo, CA 93405 053- 412 -017 MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT (this "Memorandum ") is made and entered into this day of , 2016 by and between the City of San Luis Obispo, ( "City ") and ARH Quiky Investments, LLC ( "Quiky "). Notice is hereby given that the City and Quiky entered into an Indemnification Agreement Affecting Real Property and Bill of Sale dated , 2015 ( "Agreement "), which is a covenant that runs with the land described herein below and is binding on Quiky's transferees, grantees, assigns and successors in interest. Real Property: PARCEL 1 OF PARCEL MAP NO. SL 91 -227 IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED APRIL 20, 1992 IN BOOK 49, PAGE 40 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. The terms and conditions of the Agreement is incorporated herein by this reference. Should any party require information concerning said Agreement, they should contact City or Quiky at the following addresses: City of San Luis Obispo ARH Quiky Investments, LLC 990 Palm Street c/o Westpac Investments San Luis Obispo, CA 93401 835 Aerovista Place Suite 230 San Luis Obispo, CA 93405 IN WITNESS WHEREOF, the parties hereto have executed this Memorandum on the day and year first above written. City of San Luis Obispo ARH Quiky Investments, LLC LM Jan Marx, Mayor Attest: Jon Ansolabehere, Interim City Clerk Approved as to Form: J. Christine Dietrick, City Attorney Bv: Its: