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SP]~CIAL MI~ETING
CITY COUNCIL
OF THE
CITY OF SOUTH SAN FRANCISCO
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, California 94083
Meeting to be held at
MUNICIPAL SERVICES BUILDING
CITY COUNCIL COMMUNITY ROOM
33 ARROYO DRIVE
WEDNESDAY, MARCH 8, 2006
6:00 P.M.
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the
State of California, the City Council of the City of South San Francisco will hold a Special Meeting
on Wednesday, the 8th day of March, 2006, at 6:00 p.m., iin the Municipal Services Building,
Community Room, 33 Arroyo Drive, South San Francisco, California.
Purpose of the meeting:
1. Call to Order
2. Roll Call
3. Public Comments - comments are limited to items on the Special Meeting
Agenda
4. Review FY 2006-07 Budget
5. Closed Session: Pursuant to Government Code section 54957.6,
conference with labor negotiator, Elaine Yamani, for all units
6. Adjournment
Isl Sylvia M. Payne
City Clerk
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'<11f21''''~ Staff Report
SP. A GENDA ITEM #4
DATE: March 8,2006
TO: Honorable Mayor and City Council
FROM: Jim Steele, Director of Finance
SUBJECT: PRELIMINARY OVERVIEW OF 2006-07 GENERAL FUND BUDGET
RECOMMENDA TION:
It is recommended that the City Council give staff direction to prepare a General Fund
operating budget for 2006-07 that holds the line on new programs and services, except for
the addition of three police officE~rs.
BACKGROUNDIDISCUSSION:
The contents of this staff report have been discussed with the Budget Subcommittee on February
7th and February 22nd. The Subcommittee, consisting of Mayor Femekes and Councilmember
Matusumoto, reviewed staff's budget overview and concurred with staff's recommendation to
prepare a hold the line budget, with the exceptions listed below. Council concurrence is now
sought prior to staff preparing a 20106-07 budget and budget document for Council review.
A preliminary General Fund projection is attached to this staff report, as are copies of other
materials given to the Budget Subcommittee. It should be emphasized that revenue estimates are
still preliminary and that health premium rates are not available until later in the Spring. While
numbers will change between now and the time the actual budget is brought to Council, staff
believes the changes will be relatively modest, barring some unforeseen event.
Recommended 2006-07 Budget Strategy
If a hold the line budgetl is submitted to the Council for 2006-07, preliminary estimates are that
it would result in a surplus of $4010-500,000, prior to any capital expenditures. However, two
budget increases are recommended, to restore three frozen police officer positions, and to shift a
position back to the General Fund from the Stormwater Fund. When adjusting for those
recommended changes, the budget is balanced with a modest surplus.
1 A hold the line budget means one in which no new services, programs, or positions are added.
Staff Report
Subject: Proposed 2006-07 Budget Strategy
Page 2 of 3
Police Department Funding
The Budget Subcommittee concurred with the City Manager's recommendation that the Council
consider augmentation of Police Department staffing for 2006-07. In 2004-05, three vacant
police officer positions were frozen. Those officers would be an important priority to add back,
because the Department is actuaHy down eleven positions: the three frozen positions, three
officers assigned to county task forces (for which we are reimbursed), three other self-imposed
positions left open to stay within the overtime budget, and two officers who are in Iraq.
The Department has tried to bridge this loss of personnel by reassigning a school resource officer
to patrol and utilizing the motor officers as part of the minimum staffing numbers (having them
work a beat rather than just traffic), and not filling other specialized positions. These
reassignments have impacted Police Department contacts with the schools where gang
intelligence gathering and traffic enforcement has suffered.
Overall calls for service have increased, and gang activity is also on the rise. Based on all the
activity in the County, our officers have done an excellent job in keeping the gangs in check and
meeting the other needs of the community. However, the service is becoming more reactive than
proactive. For all of these reasons, it is recommended that funding be restored for three frozen
Police Officer positions at a cost of $392,000. The preliminary budget attached to this staff
report contains funding for the three officers.
Stormwater Fund
Of concern over the next 1- 2 years is the financial health of the Stormwater Enterprise Fund, as
it is depleting its financial reserv(~s. The Stormwater Fund's annual costs are higher than the
revenue generated by the countywide property tax assessment. Staff projects with this frozen
revenue source and rising staffing costs, the Stormwater Fund will deplete its reserves sometime
during 2007-08.
In addition, except for the Lindenville improvements to be funded by the Redevelopment bond
sale, the current Stormwater Fund revenue stream only contains funding for ongoing operations
and maintenance costs. That is, the revenue does not contain sufficient funding for ongoing
capital rehabilitation and replacement program for our storm drain infrastructure, except for
small repairs. Historically, the City has funded modest annual storm water capital improvements
($25,000 - $50,000) out of Gas Tax funding from the State, funds which could otherwise go to
road improvements.
In the next 1- 2 years, staff projects that some steps will need to be taken to bring Stormwater
expenses into alignment with revenues. This will require a staffing reduction, a shifting of
expenses to the General Fund, new fees/revenue, or some combination of these changes. Staff
will continue to discuss this situation with the Budget Subcommittee and bring back any
recommendations to the full Council in 2007-08.
Staff Report
Subject: Proposed 2006-07 Budget Strategy
Page 3 of 3
Staff recommends for the 2006-07 budget that a fund shift adopted in 2005-06 of .25 FTE from
the General Fund to the Stormwater Fund be discontinued. This will only result in a modest
savings, but one that the General Fund can absorb ($25,,000). The preliminary budget figures
presented to Council assume this shift back to the General Fund already.
Capital Budget Funding
As was presented in the Midyear Budget Review on February 15th, staff recommends spending
extra Educational Reform Augmentation Fund (ERAF) refund dollars received from the County
in 2005-06 on capital improvement needs in 2006-07. Due to uncertainty over the ongoing
stability of this source of revenue, it is appropriate to budget conservatively for an ERAF refund,
and use any extra dollars on the next year's capital budget. Therefore, staff recommends
bringing back a General Funded capital program of approximately $1.0 million for 2006-07.
Priority will be given to projects that protect the City's investment in its existing infrastructure,
with an emphasis likely to be placed on street improvements.
FISCAL IMPACT:
Revenue numbers are still in the preliminary stage of review, but at this point, staff projects that
a balanced operating budget can be achieved for 2006-07 while adding dollars to restore 3 frozen
police officer positions and shifting .25 FTE back to the General Fund from the Stormwater
Fund. Preliminary estimates are that the General Fund Undesignated Reserve will end the 2006-
07 year at approximately $4.9 million.
Prepared by: ~
Jim teele
Fin nce Director
Attachment:
General Fund Summary and Reserves Projection for 2006-07
Copy of Additional Materials Requested by Budget Subcommittee
JSIBN:ed
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Total General Fund Operating and Capital Budget,
& Projected Changes to General Fund RI!SerVes
Preliminary 2006-07 Projection at 3/8/06
Adopted Amended Proiected Proiected
Year End Budget Budget Budget Budget
2004-05 2005-06 2005-06 2005-06 2006-07
Net Operating Budget Impact (from Table I) 803,432 $ (335,750) $ 815,917 $ 2,678,323 $ 60,576
Less Transfers to Capital Projects: (338,493) (82,000) (803,330) (803,330) (1,000,000)
Less Transfers to Debt Service (136,154) (130,000) (130,000) (130,000) (130,000)
Plus (Minus) One-Time Transactions:
Plus Favorable Resolution of Genentech Property Tax
Settlement:
Plus (Minus) Favorable (Unfavorable) Reduction in funds
set aside for legal settlement:
Net Impact on General Fund Reserves 328,785 (547,750) (117,413) 1,744,993 (1,069,424)
'General Fund Reserves Projection ::J
I. Discretionary Reserves!
Liquid Reserves Available
Emergencies 1,100,000 1,-100,000 1,100,000 1,100.000 1,141,000
Economic Contingencies 3,500,000 3,1300,000 3,800,000 3,840,000 3,995,000
Designated for future Economic Development and Capital
Projects 3,600,000 3,EJOO,000 3,600,000 4,620,000 3,620,000
Undesignated Reserve 4,128,893 ~l96.673 3,663.863 5,179,416 4,913.992
II. Non-Discretionary Reserves!
Reserves Already Committed
Encumbrances 381 ,400 371.816
Advances to Other Funds
Inventory and Other 40,300 90,000 90,000 40,000 40,000
Appropriated Capital Projects 283,830 291,330
Subtotal, Non Discretionary (Committed) Reserves 705,530 90,000 753,146 40,000 40,000
Total General Fund Reserves 13,034,423 12,486,673 12,917,009 14,n9,416 13,709,992
CrJy OF SoUTH SAN FRANCISco
FINANCE DEPARTMENT
Memo
To:
Council Budget Subcommittee, Mayor Fernekes and Councilmember Matsumoto
From:
Jim Steele, Finance Director
Date:
February 17, 2006, Revised for Full Council on February 27, 2006
Re:
Responses to Requests for More Information on Budget Items
At the February 8 subcommittee meeting on the budget, several questions were asked. This memo
transmits the responses back to the subcommittee in preparation for our follow-up meeting on February 22
at 5:30 at the MSB.
l. How much has the City been receiving from the special motor vehicle fee assessed in San Mateo
County, and what have the funds been used for?
The City has gotten $59,800 in these funds annually over the past two years, and has used the
dollars to help pay for the City's share of congestion relief funds due to C/CAG. Our annual
assessment to C/CAG have been $169,400, funded as: follows:
Funds Paid for C/CAG Programs:
Motor Vehic1e Assessment
General Fund
Gas Tax Funds from State
$ 59,800
$ 19,400
$ 90,200
Total Payments to C/CAG:
$ 169,400
2. How much have the departments been spending on overtime this year? Please provide the
information by month.
That information is shown in Attachment A.
3. Please provide a breakdown of business- to-business sales tax categories that can be attributable to
the office development east of 101.
Sales taxes are not reported by building type, nor are they aggregated into the geographical
categories of East of 101 vs. "West of 101, but staff has provided an estimate in Attachment Busing
data aggregated by our sales tax consultants, MBIA, from the computer files that the State Board of
Equalization provides.
Memo to Budget Subcommittee
Follow-up Questions for February 22 Meeting
Page 2 of2
4. Please provide a breakdown on the new BLS ambulance revenue and costs, with more detail on the
expenses. Also provide information on the cost of the additional ambulance bay.
That information is shown in Attachment C.
Please feel free to call me at 877-8509 or email [email protected] you have any questions
before our meeting Wed.D.esday night.
Attachments
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Attachment B
Sales Tax for the Year Ended. September 30, 2005
(most recent quarter for whic:h data is available):
($ in OOO's)
Est. for
Office &
Office R&D Only
East of 101 **
Business to Business Categories:
Office and Electronic Equipment
Chemical ProductsIBiotech *
All Other
$
$
$
100
675
10
Total Business to Business Salles Tax:
for East of 101 Office and Office R&D (est):
$
785
* Medical sales are not taxable. Many biotech companies pay use tax when
they purchase expensive lab equipment from out of state vendors.
Use tax receipts vary widely quarter to quarter with equipment purchases, and the
figure above includes recent high quarter for large equipment purchase
** Sales tax data not reported by building type. Figures above
are therefore estimates.
Attachment C
BLS (Program 11611) Preliminary Revenues vs. Expenditures -- FY 05-06
Adopted
BudQet
Year-ta-date
(12-31-05)
Year-to-date
(1-31-06)
Fiscal Year
Proiection
Revenues
BLS Transport
773,200
96,962
155,045
421,419
Expenditures
Employee Costs (1) 254,800 106,029 125,994 216,500
Operating Supplies 30,000 7,201 10,656 18,180
Debt Service 20,148 10,051 10,051 20,148
for BLS ambulance
Total Operating
Expenditures 304,948 123,281 146,701 254,828
Revenues in excess
of Operating
Expenditures
468,252
(26,319)
8,344
166,591
Debt Service on
BLS bay (2)
at new fire station
20,468
20,468
20,468
20,468
Revenues in Excess
of Operating and
Capital
Expenditures:
447,784
(46,787)
(12,124)
146,123
Notes:
1. Contract employees
2. Ambulance Bay Cost = $332,000. Debt service will be paid over 30 years.
Paid from RDA funds.
AGENDA
REDEVELOPMENT AGENCY
CITY OF SOUTH SAN FRANCISCO
REGULAR MEETING
MUNICIPAL SERVICE BUILDING
COMMUNITY ROOM
WEDNESDAY, MARCH 8, 2006
7:00 P.M.
PEOPLE OF SOUTH SAN FRANCISCO
You are invited to offer your suggestions. In order that you may know our method of conducting Agency
business, we proceed as follows:
The regular meetings of the Redevelopment Agency are held on the second and fourth Wednesday of
each month at 7:00 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South
San Francisco, California.
Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please
complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk.
Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment.
California law prevents Redevelopment Agency from taking action on any item not on the Agenda
(except in emergency circumstances). Your question or problem may be referred to staff for investigation
and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive
action or a report. When your name is called, please come to the podium, state your name and address for
the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for
your cooperation.
The Clerk will read successively the items of business appearing on the Agenda. As she completes
reading an item, it will be ready for Board action.
JOSEPH A. FERNEKES
Chair
RICHARD A. GARBARINO, SR.
Vice Chair
MARK N. ADDIEGO
Boardmember
PEDRO GONZALEZ
Boardmember
KARYL MATSUMOTO
Boardmember
RICHARD BATTAGLIA
Investment Officer
SYLVIA M. PAYNE
Clerk
BARRY M. NAGEL
Executive Director
STEVEN T. MATT AS
Counsel
PLEASE SILENCE CELL PHONES AND PAGERS
HEARING ASSISTANCE EQUlPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS
CALL TO ORDER
ROLL CALL
AGENDA REVIEW
PUBLIC COMMENTS
CONSENT CALENDAR
1. Motion to approve the minutes of February 22,2006
2. Motion to confirm expense claims of March 8,2006
ADMINISTRATIVE BUSINESS
3. Resolution authorizing the execution ofa purchase and sale agreement with San
Francisco Public Utilities Commission for property located on Mission Road (APNs:
093-3l2-050 and 060)
CLOSED SESSION
4. Pursuant to Government Code Section 54956.8 real property negotiations related to 80
Chestnut Avenue (California Water Service); Agency Negotiator: Assistant Director Van
Duyn
ADJOURNMENT
REGULAR REDEVELOPJv1ENT AGENCY MEETING
AGENDA
MARCH 8, 2006
PAGE 2
-
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C'41.IFO'F-~\.~
RDA AGENDA ITEM #3
Redevelopment Agency
Staff Report
DATE:
TO:
FROM:
SUBJECT:
March 8, 2006
Redevelopment Agency Board
Marty VanDuyn, Assistant Executive Director
SAN FRANCISCO PUBLIC UTILITIES COMMISSION RIGHT OF WAY:
RESOLUTION AUTHORIZING A PURCHASE AND SALE AGREEMENT FOR SIX
PARCELS, TOTALING 21.30 ACRES, ON SAN FRANCISCO PUBLIC UTILITIES
COMMISSION RIGHT OF WAY, ADJACENT TO THE BART / SFO EXTENSION
RIGHT OF WAY
RECOMMENDATION:
It is recommended that the Redev1elopment Agency Board adopt the attached resolution
authorizing the Agency Director to eJ.ecute the subject Purchase and Sale Agreement, the Grant
Deed and the escrow instructions on behalf of the Redevelopment Agency.
BACKGROUND:
On February 18, 2004, the San Francisco Public Utilities Commission (SFPUC) notified the City of
South San Francisco of the availability of an 7.6 acre site located north of the intersection ofEl Camino
Real and Chestnut Avenue, currently under the jurisdiction of the SFPUC, in accordance with
California Government Code Section 54220 et seq. City staff requested that the SFPUC give the first
priority to the City of South San Francisco and enter into good faith negotiations to determine a
mutually satisfactory sale price for the subject site, in accordance with the California Government Code.
In subsequent discussions, the SFPUC and City staff agreed to expand the proposed purchase area to
include all SFPUC properties adjacent to the existing BART right-of-way and within the City of South
San Francisco boundaries. The proposed property comprises six parcels totaling 21.30 acres. A majority
of the propert lies within the El Camino Corridor Redevelopment.
Property Description
The City is interested in acquiring six parcels, totaling 21.30 acres, along the 2.1 mile SFPUC right-of-
way in the City of South San Francisco to compliment development of the approved Linear Park and
bike path and create a land use plan for parcels located north of Chestnut A venue. The existing assessor
parcel numbers (APN) for the subject parcels are APN 093-331-040, 093-312-050 & 093-312-060. The
proposed purchase property encompasses six parcels, which are shown in Attachment 3 and described
as follows:
Staff Report
To: Redevelopment Agency Board
RE: San Francisco Public Utilities Commission Right-Of-Way: Purchase and Sale Agreement
Date: March 8, 2006
Page 2 of 4
Specific Purchase Parcels
Parcell:
Parcel 2:
Parcel 3:
Parcel 4:
Parcel 5:
Parcel 6:
The parcel comprises a '7.6-acre area located at the northernmost part the proposed
purchase area, west of Mission Road and bisected by Colma Creek.
The 1.8 acre parcel extends from Colma Creek to Chestnut Avenue. This parcel is
located between property owned by Kaiser Medical Center and the BART right of way.
The narrow OA-acre parcel is located along EI Camino Real, between property owned by
Kaiser Medical Center and Chestnut Avenue. Parcel 3 is currently owned by the
Petrocchi Trust. The SFPUC will exchange this parcel for Parcel 7, identified below,
and included as part of the purchase property to South San Francisco.
The long 3.7-acre parcel is located on the west side of the BART/SFO Extension right-
of-way and runs from Orange A venue, at the southern boundary, to 12 Mile Creek, at
the northern boundary.
The long 6.7-acre parcel is located on the west side of the BART/SFO Extension right-
of-way and runs from Spruce A venue, at the southern boundary, to Orange A venue, at
the northern boundary.
A rectangular 1.1-acre parcel that is located on the west side of the BART/SFO
Extension right-of-way lmd faces Spruce Avenue.
Non-Purchase Parcel
Parcel 7:
The SFPUC currently owns a 0.9-acre parcel south of Chestnut Avenue, but it is not
included in the purchase area. The SFPUC parcel will exchange this parcel for Parcel 3,
identified above.
The City and the SFPUC have prepared appraisals for the subject purchase property and negotiated a
fair market value of$22 million. The SFPUC staff is recommending the proposed sale and agreed to
the proposed terms. Over the next few months, the SFPUC staffwill submit the proposed purchase to
the Public Utilities Commission and the San Francisco Board of Supervisors for approval.
DISCUSSION:
The proposed purchase area plays an important role as a conduit for the development of the Linear Park
and bikeway from San Bruno to the South San Francisco BART Station. The area north of Chestnut
Avenue contains several oddly-shaped parcels and the area has been used for a wide range oftemporary
uses (such as overflow parking for Ron Price Motors) during the construction of the BART/SFO
Staff Report
To: Redevelopment Agency Board
RE: San Francisco Public Utilities Commission Right-Of-Way: Purchase and Sale Agreement
Date: March 8, 2006
Page 3 of 4
Extension. The 1999 South San Francisco General Plan calls for an extension of Oak Avenue to relieve
congestion on Chestnut Avenue. In addition, the City recently approved the concept plans for a City
Linear Park/bikeway traversing the entire distance through the city.
The proposed use on the majority of the right-of-way is designated for construction of the City Linear
Park and bike path, which is an open space and for recreational use. On the parcels north of Chestnut
Avenue, the City will prepare a planning document that will specify the locations for a mix of
appropriate uses consistent with the City's General Plan.
Fiscal Impact
The project will be funded through Red(;:velopment Agency sources, including a portion of the low and
moderate housing funds and the sale of Tax Allocation Bonds available this year; as authorized by the
City Council/Redevelopment Agency on February 22, 2006.
General Plan Consistency Report
On February 16,2005, the Planning Commission accepted a General Plan Consistency Report stating
that the proposed sale is consistent with the South San Francisco General Plan and the South San
Francisco Municipal Code.
The 21.30-acre purchase area is located along a 2.t-mile right-of-way that includes "Commercial",
"High Density Residential" and "Open Space" land use designations. The "Commercial" designation
provides for a wide range of uses including retail stores, eating and drinking establishments,
commercial recreation, entertainment ,establishments and theaters, financial, business and personal
services, hotels, educational and social services and government offices. The "High Density"
designation permits residential development up to 30-units per acre. The "Open Space" designation
permits park and recreational uses. Additionally, the following policy in the General Plan supports
enhancement of the connections between downtown and residential neighborhoods with the BART/SFO
Extension right-of-way and the South San Francisco BART Station:
Guiding Policy 3.1-G-4 "Enhance linkages between Downtown and transit centers, and increase street
connectivity with the surrounding neighborhoods."
Guiding Policy 3. 4-G-2 "Encourage development of a mix of uses, with pockets of concentrated activity
that provide foci and identity to the different parts of El Camino Real."
Implementing Policy 4.3 -1-7 "Undertake a program to improve pedestrian connections between the rail
stations - South San Francisco and San Bruno BART stations and the Caltrain Station - and the
surroundings. . . .."
Staff Report
To: Redevelopment Agency Board
RE: San Francisco Public Utilities Commission Right-Of-Way: Purchase and Sale Agreement
Date: March 8, 2006
Page 4 of 4
Implementing Policy 5.1-1-6" Work with Bay Area Rapid Transit (BART), Pacific Gas and Electric
(PG&E), and the SFPUC to lease and de:velop linear parks on existing public utility and transportation
right-of-way in the city, where appropriate and feasible."
CONCLUSION:
Purchase of the 21.30-acre area would facilitate development of the City Linear Park and bikepath,
encourage the creation of a mixed-use planning area north of Chestnut Avenue and facilitate the Oak
Avenue extension. The City and the SFPUC have each prepared appraisals to establish the fair market
value of the property, to which the seller has agreed. Consequently, staff recommends that the
Redevelopment Agency Board adopt the attached resolution to authorize the Redevelopment Agency
Director to execute the Purchase and Sale agreement.
BY:l~~"IL._.._~
Assistant Director
Approved: ,
ATTACHMENTS:
I. Draft Resolution
2. Agreement
3. Property Description
RESOLUTION NO
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO,
STATE OF CALIFORNlA
A RESOLUTION APPROVING A PURCHASE AND
SALE AGREEMENT FOR THE SALE OF
UNIMPROVED PROPERTY FROM THE CITY AND
COUNTY OF SAN FRANCISCO PUBLIC UITLITIES
COMMISSION TO THE CITY OF SOUTH SAN
FRANCISCO, A Mill\TICIP AL CORPORATION
WHEREAS, the City and County of San Francisco owns a certain unimproved
21.30 acre area, consisting of six pareels, of real property located in South San Francisco,
east of the BART SFO Extension right-of-way, more particularly described in Exhibit A,
which is incorporated by reference and attached hereto; and
WHEREAS, the City and C01mty of San Francisco desires to sell the property and
the City of South San Francisco desires to purchase the unimproved real property;
WHEREAS, the Redevelopment Agency of the City of South San Francisco
desires to acquire the property to facilitate development and construction of public
benefits within the El Camino Redev1elopment Project area;
WHEREAS, the Redevelopment Agency has obtained an appraisal of the property
which indicates the property has a fair market value of $22 Million; and
WHEREAS, the Redevelopment Agency and the City and County of San
Francisco have mutually agreed to a purchase price of $22 Million for the unimproved
real property.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the
City of South San Francisco that it hereby approves the purchase of the 21.30-acre
property from the City and County of San Francisco and authorizes the Agency Director
to execute the Purchase and Sale Agreement, the Grant Deed and the escrow instructions
on behalf of the Redevelopment Agency.
*
*
*
*
*
809704-1
I hereby certify that the foregoing Resolution was regularly introduced and
adopted by the Redevelopment Agency of the City of South San Francisco at a meeting
held on the day of , 2006 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
City Clerk
J:\ WPD\MNRSW\405\OO 1 \RES0\2000\April\Saleofproperty.doc
809704-1
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(APN No.
AGREEMENT FOR SALE OF REAL ESTATE
, and portiones) of APN Nos. and
South San Francisco, San Mateo County)
THIS AGREEMENT FOR SALE OF REAL ESTATE (this "Agreement") dated for
reference purposes only as of , 2005 is by and between the CITY AND
COUNTY OF SAN FRANCISCO, a municipal corporation ("City" or "Seller"), and the CITY
OF SOUTH SAN FRANCISCO, a municipal corporation ("Buyer").
THIS AGREEMENT IS MADE WITH REFERENCE TO THE FOLLOWING FACTS
AND CIRCUMSTANCES:
A. City owns the Property located in the City of South San Francisco, County of San
Mateo, described in Section 1 below and more particularly described as Parcels on
Exhibit A attached hereto and incorporated herein by reference.
B. The Public Utilities Commission ("PUC") has recommended sale of the Property
pursuant to Resolution No. 04- dated , 2004.
C. City issued a request for proposals/qualifications dated February 13,2004
("RFP") for the sale of the Property and provided notice thereof to local public entities in
accordance with California Government Code Sections 54200 et seq.
D. Buyer responded to City's notice, and City and Buyer have negotiated a price to
purchase the Property pursuant to California Government Code Section 54220, and that price
equals the full appraised value of the Property.
E. City and Buyer acknowledge that prior to the Closing Date, City plans to acquire
from Charles Petrocchi the property located at 1100 El Camino Real, South San Francisco
("Petrocchi Parcel"), more particularly described as Parcel_ on Exhibit A attached hereto,
which if acquired, will then be included in the Property to be sold to Buyer.
F. Buyer desires to purchase the Property and City is willing to sell the Property,
subject to approval by City's Board of Supervisors and Mayor, on the terms and conditions set
forth hereinbelow.
ACCORDINGLY, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, City and Buyer hereby agree as follows:
1. SALE AND PURCHASE
1.1 Property Included in Sale
Subject to the terms, covenants and conditions set forth herein, City agrees to sell to
Buyer, and Buyer agrees to purchase from City, City's interest in the real property located at
South San Francisco, State of California, and more particularly described in
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Exhibit A attached hereto (the "Property"), as shown generally on the map attached hereto as
Exhibit A-I. The Property includes the following components: (i) approximately 8.7 acres
which the City formerly operated as a driving range, along with adjoining land (the "Driving
Range Parcels"); (ii) the approximately 12,632 square foot Petrocchi Parcel; and (iii) acres
which the City formerly used a municipal railroad right-of-way ("Right of Way Parcels"). In
the event the City does not acquire the Petrocchi Parcel, this Agreement will remain in full force
in effect, provided the Property will only include the Driving Range Parcels and the Right of
Way Parcels and the Purchase Price will be adjusted pursuant to Section 2(c).
2. PURCHASE PRICE
The purchase price for the Property is Twenty-Two Million Dollars ($22,000,000),
subject to adjustment pursuant to the terms of Section 2(c) and Section 2(d) (the "Purchase
Price"). Buyer shall pay the Purchase Price as follows:
(a) On or before the later of five (5) days after the date that it is the later of: (i)
the Effective Date, or (ii) Buyer's transmittal of the Contingency Period Waiver Notice, Buyer
shall deposit in escrow with (the "Title
Company"), the sum of Eleven Million Dollars ($11,000,000) as an earnest money deposit (the
"Deposit"). Once Buyer places the Deposit with Title Company, Five Million Dollars
($5,000,000) of the Deposit (the "Liquidated Damages Amount") shall be non-refundable and, at
the election of City, either immediately transmitted to City or held by Title Company in an
interest-bearing account for the benefit of City, and the remaining Six Million Dollars
($6,000,000) of the Deposit (the "Remaining Deposit") shall be held by the Title Company in an
interest-bearing account for the benefit of the City. At the Closing (as defined below) the
Deposit (but not interest accrued thereon) shall be credited against the Purchase Price.
(b) Buyer shall pay the balance of the Purchase Price (subject to adjustment
pursuant to the terms of Section 2(c) and Section 2(d)) to City at the consummation of the
purchase and sale contemplated hereunder (the "Closing").
All. sums payable hereunder induding, without limitation, the Deposit, shall be paid in
immediately available funds oflawful money ofthe United States of America
(c) In the event the City does not acquire the Petrocchi Parcel, this Agreement
will remain in full force in effect, provided the Property will only include the Driving Range
Parcels and the Right of Way Parcels, and provided further that the Purchase Price shall be
subject to adjustment as follows: Reduce the Purchase Price by $520,000 to a total Purchase
Price of $21,480,000.
(d) If the Closing has not occurred within seventy-five (75) days after the
Effective Date ("Purchase Price Adjustment Date"), the Purchase Price shall be increased by
adding the following to the Purchase Price: the product of (i) _ % (constituting the daily
interest rate) multiplied by the number of days from the Purchase Price Adjustment Date to the
Closing date; multiplied by (ii) the difference between the current Purchase Price and the Deposit
(e.g., $22 million + (L (days) x %_.] x [$22 million - $11 million])). [The Daily Interest
rate will be the Condemnation Interest Rate used by CCSF - to be inserted]
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'I'
3. TITLE
3.1 Conditions of Title
At the Closing, City shall quitclaim interest in and to the Property to Buyer by quitclaim
deed in the form of Exhibit C attached hereto (the "Deed"). Title to the Property shall be
subject to (a) liens of local real estate taxes and assessments, (b) all existing exceptions and
encumbrances, whether or not disclosed by a current preliminary title report or the public records
or any other documents reviewed by Buyer pursuant to Section 5.1 hereof, and any other
exceptions to title which would be disclosed by an accurate and thorough investigation, survey,
or inspection of the Property, (c) all items of which Buyer has actual or constructive notice or
knowledge, and all of the foregoing exc.eptions to title shall be referred to collectively as the
"Conditions of Title." . Without limiting the foregoing, Buyer acknowledges receipt of a
preliminary report issued by the Title Company under Order No. , dated
, covering the Property and approves all of the exceptions contained
therein.
3.2 Buyer's Responsibility for Title Insurance
Buyer understands and agrees that the right, title and interest in the Property shall not
exceed that vested in City, and City is under no obligation to furnish any policy of title insurance
in connection with this transaction. Buyer recognizes that any fences or other physical
monument of the Property's boundary lines may not correspond to the legal description of the
Property. City shall not be responsible for any discrepancies in the parcel area or location of the
property lines or any other matters which an accurate surveyor inspection might reveaL It is
Buyer's sole responsibility to obtain a survey from an independent surveyor and a policy oftitle
insurance from a title company, if desired.
4. "AS IS" PURCHASE; RELEASE OF CITY
4.1 Buyer's Independent Investigation
Buyer represents and warrants to City that Buyer has performed a diligent and thorough
inspection and investigation of each and every aspect of the Property, either independently or
through agents of Buyer's choosing, induding, without limitation, the following matters
(collectively, the "Property Conditions"):
(a) All matters relating to title including, without limitation, the existence,
quality, nature and adequacy of City's interest in the Property and the existence of physically
open and legally sufficient access to the Property.
(b) The zoning and other legal status of the Property, including, without
limitation, the compliance of the Property or its operation with the Subdivision Map Act and any
other applicable codes, laws, regulations, statutes, ordinances and private or public covenants,
conditions and restrictions, and all governmental and other legal requirements such as taxes,
assessments, use permit requirements and building and fire codes.
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(c) The quality, nature, adequacy and physical condition of the Property,
including, but not limited to, the structural elements, foundation, roof, interior, landscaping,
parking facilities, and the electrical, mechanical, HV AC, plumbing, sewage and utility systems,
facilities and appliance, and all other physical and functional aspects of the Property.
(d) The quality, nature, adequacy, and physical, geological and environmental
condition of the Property (including soils and any groundwater), and the presence or absence of
any Hazardous Materials in, on, under or about the Property or any other real property in the
vicinity of the Property. As used in this Agreement, "Hazardous Material" shall mean any
material that, because of its quantity, concentration or physical or chemical characteristics, is
now or hereafter deemed by any federal, state or local governmental authority to pose a present
or potential hazard to human health or safety or to the environment.
(e) The suitability of the Property for Buyer's intended uses.
(t) The economics and development potential, if any, of the Property.
(g) Buyer acknowledges that City has disclosed that neither the Right of Way
Parcels, nor the Petrocchi Parcel are separate legal parcels and that City has represented that it is
exempt from the Subdivision Map Act.
4.2 Hazardous Substance Disclosure
California law requires sellers to disclose to buyers the presence or potential presence of
certain Hazardous Materials. Accordingly, Buyer is hereby advised that occupation of the
Property may lead to exposure to Hazardous Materials such as, but not limited to, gasoline,
diesel and other vehicle fluids, vehicle exhaust, office maintenance fluids, tobacco smoke,
methane and building materials containing chemicals, such as formaldehyde. Buyer
acknowledges that City has disclosed the matters relating to the Property referred to in Schedule
1 attached hereto. Nothing contained in such schedule shall limit any of the provisions of this
Article or relieve Buyer of its obligations to conduct a diligent inquiry hereunder, nor shall any
such matters limit any of the provisions of Section 4.4 ["As Is" Purchase] or Section 4.5
[Release of City].
4.3 Entry and Indemnity
In connection with any entry by Buyer or its Agents onto the Property, Buyer shall give
City reasonable advance written notice of such entry and shall conduct such entry and any
inspections in connection therewith so as to minimize, to the extent possible, interference with
uses being made of the Property and otherwise in a manner and on terms and conditions
acceptable to City. All entries by Buyer or its Agents onto the Property to perform any testing or
other investigations which could affect the physical condition of the Property (including, without
limitation, soil borings) or the uses thereofwill be made only pursuant to the terms and
conditions of a permit to enter in form and substance satisfactory to City substantially in the form
of City's standard permit. Without limiting the foregoing, prior to any entry to perform any on-
site testing, Buyer shall give City written notice thereof, including the identity of the company or
persons who will perform such testing, the precise time and location of the testing, and the
proposed scope of the testing. City shall have the right to approve, disapprove, or condition and
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limit the proposed testing, in City's sole discretion, within ten (10) business days after receipt of
such notice. If Buyer or its agents, employees or contractors take any sample from the Property
in connection with any approved testing, Buyer shall provide to City a portion of such sample
being tested to allow City, if it so chooses, to perform its own testing. City or its representative
may be present to observe any testing or other inspection performed on the Property. Buyer shall
promptly deliver to City copies of any reports relating to any testing or other inspection of the
Property performed by Buyer or its agents, employees or contractors, but shall not deliver copies
of any such reports to any other person or entity without Buyer's prior written approval. Buyer
shall keep all test results and information strictly confidential, and shall indemnify, reimburse,
defend and hold City harmless from and against any loss, cost, expense, or damage resulting
from Buyer's failure to keep any information obtained from an inspection or testing of the
Property strictly confidential; provided, however, Buyer shall not be liable if and to the extent
Buyer is required to disclose such information pursuant to a court order. Buyer shall comply
with all laws, ordinances, rules, regulations, orders and the like in connection with any entry onto
or testing of the Property.
Buyer shall maintain, and shall require that its Agents maintain, public liability and
property damage insurance in amounts and in form and substance adequate to insure against all
liability of Buyer and its Agents, arising out of any entry or inspection of the Property in
connection with the transaction contemplated hereby, and Buyer shall provide City with
evidence of such insurance coverage upon request from City.
To the fullest extent permitted under law, Buyer shall indemnify, defend and hold
harmless City, its Agents, and each of them, from and against any liabilities, costs, damages,
losses, liens, claims and expenses (including, without limitation, reasonable fees of attorneys,
experts and consultants and related costs) arising out of or relating to any entry on, under or
about the Property by Buyer, its Agents, contractors and subcontractors in performing the
inspections, testings or inquiries provided for in this Agreement, whether prior to the date of this
Agreement or during the term hereof, including, without limitation, any injuries or deaths to any
persons (including, without limitation, Buyer's Agents) and damage to any property, from any
cause whatsoever. The foregoing indemnity shall survive beyond the Closing, or, if the sale is
not consummated, beyond the termination of this Agreement.
4.4 "As Is" Purchase
BUYER SPECIFICALLY ACKNOWLEDGES AND AGREES THAT CITY IS
SELLING AND BUYER IS PURCHASING CITY'S INTEREST IN THE PROPERTY ON AN
"AS IS WITH ALL F AUL TS" BASIS. BUYER IS RELYING SOLELY ON ITS
INDEPENDENT INVESTIGATION AND NOT ON ANY REPRESENTATIONS OR
WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, FROM CITY OR
ITS AGENTS AS TO ANY MATTERS CONCERNING THE PROPERTY, ITS SUITABILITY
FOR BUYER'S INTENDED USES OR ANY OF THE PROPERTY CONDITIONS. CITY
DOES NOT GUARANTEE THE LEGAL, PHYSICAL, GEOLOGICAL, ENVIRONMENTAL
OR OTHER CONDITIONS OF THE PROPERTY, NOR DOES IT ASSUME ANY
RESPONSIBILITY FOR THE COMPLIANCE OF THE PROPERTY OR ITS USE WITH
ANY STATUTE, ORDINANCE OR REGULATION. IT IS BUYER'S SOLE
RESPONSIBILITY TO DETERMINE ALL BUILDING, PLANNING, ZONING AND OTHER
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REGULATIONS RELATING TO THE PROPERTY AND THE USES TO WHICH IT MAY
BE PUT.
4.5 Release of City
As part of its agreement to purchase the Property in its "As Is With All Faults" condition,
Buyer, on behalf of itself and its successors and assigns, waives any right to recover from, and
forever releases and discharges, City, its officers, employees, agents, contractors and
representatives, and their respective heirs, successors, legal representatives and assigns, from any
and all demands, claims, legal or administrative proceedings, losses, liabilities, damages,
penalties, fines, liens, judgments, costs or expenses whatsoever (including, without limitation,
attorneys' fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen,
that may arise on account of or in any way be connected with (i) Buyer's and its Agents and
customer's past, present and future use of the Property, (ii) the physical, geological or
environmental condition ofthe Property, including, without limitation, any Hazardous Material
in, on, under, above or about the Property, and (iii) any federal, state, local or administrative law,
rule, regulation, order or requirement applicable thereto, including, without limitation, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA",
also commonly known as the "Superfund" law), as amended by Superfund Amendments and
Reauthorization Act of 1986 ("SARA") (42 U.S.C. Sections 9601-9657), the Resource
Conservation and Recovery Act of 1976, as amended by the Solid Waste and Disposal Act of
1984 (collectively, "RCRA") (42 U.S.c. Sections 6901-6987), the Federal Water Pollution
Control Act, as amended by the Clean Water Act of 1977 (collectively the "Clean Water Act")
(33 U.S.C. Section 1251 et seq.), the Toxic Substances Control Act ("TSCA") (15 U.S.c.
Sections 2601-2629), Hazardous Materials Transportation Act (49 U.S.C. Section 1801 et seq.),
the Carpenter-Presley- Tanner Hazardous Substance Account Law (commonly known as the
"California Superfund" law) (California Health and Safety Code Sections 25300-25395),
Hazardous Waste Control Act (California Health and Safety Code Section 25100 et seq.),
Hazardous Materials Release Response Plans and Inventory Law (commonly known as the
"Business Plan Law") (California Health and Safety Code Section 25500 et seq.), Porter-
Cologne Water Quality Control Act (California Water Code Section 13000 et seq.), Safe
Drinking Water and Toxic Enforcement Act of 1986 (commonly known as "Proposition 65")
(California Health and Safety Code Section 25249.5 et seq.).
In connection with the foregoing release, Buyer expressly waives the benefits of
Section 1542 of the California Civil Code, which provides as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR EXPECT
TO EXIST IN IDS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN TO
HIM OR HER MUST HAVE MATERIALLY AFFECTED
IDS OR HER SETTLEMENT WITH THE DEBTOR.
BY PLACING ITS INITIALS BELOW, BUYER SPECIFICALLY ACKNOWLEDGES
AND CONFIRMS THE VALIDITY OF THE RELEASES MADE ABOVE AND THE
FACT THAT BUYER WAS REPRESENTED BY COUNSEL WHO EXPLAINED, AT
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THE TIME TillS AGREEMENT WAS MADE, THE CONSEQUENCES OF THE
ABOVE RELEASES.
INITIALS: BUYER:
5. CONDITIONS PRECEDENT
5.1 Buyer's Conditions Precedent
Buyer's obligation to purchase the Property is conditioned upon the following
(collectively, "Buyer's Conditions"):
(a) Buyer's review and approval of an updated preliminary title report,
together with copies of the underlying documents, and a current survey in sufficient detail to
support the issuance of the Title Policy as provided in Section 3.2 (the "Survey"). The Survey
shall include a field note description properly certified to Buyer and the Title Company. Buyer
shall provide a copy of the Survey to the City upon Buyer's receipt thereof.
(b) Buyer's review and approval of all tenant leases and any other occupancy
agreements (hereinafter collectively referred to as the "Leases"), if any, affecting the Property.
(c) Buyer's review and approval of the physical condition of the Property.
(d) Buyer issuing bond financing necessary to purchase the Property.
5.2 Contingency Period
Buyer shall have until 5:00 p.m. San Francisco Time on the date that is sixty (60)
business days after the Effective Date to review and approve or waive Buyer's Conditions (such
period being referred to herein as the "Contingency Period"). If Buyer elects to proceed with the
purchase of the Property, then Buyer shall, before the expiration of the Contingency Period,
notify City in writing that Buyer has approved all such matters ("Contingency Period Waiver
Notice"). Ifbefore the end of the Contingency Period Buyer fails to give City the written
Contingency Period Waiver Notice and fails to object to any of Buyer' s Conditions, then Buyer
shall be deemed to have waived Buyer's Conditions. Notwithstanding the foregoing, if Buyer
objects to any of the matters contained within Section 5.1 within the Contingency Period, then
City may, but shall have no obligation to remove or remedy any objectionable matter. If City
agrees to remove or remedy the objectionable matter, it shall notify Buyer within ten (10) days
following Buyer's notice of objection, and the Closing Date shall be delayed for so long as City
diligently pursues such removal or remedy. If and when City elects not to remove or remedy the
objectionable matter, which City may do at any time including following an initial election to
pursue remedial or corrective actions, this Agreement shall automatically terminate, the Deposit
shall be returned to Buyer, and neither party shall have any further rights or obligations
hereunder except as provided in Sections 4.3 [Entry and Indemnity], 8.2 [Brokers], or 9.4
[Authority of Buyer] or as otherwise expressly provided herein.
Notwithstanding the foregoing, City and Buyer agree to reasonably cooperate with
Buyer's efforts, if any, to cause the recordation of a parcel map to separate the Property from any
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adjacent property reserved by City or through a lot line adjustment. Any such recordation or
process shall be initiated, if at all, by Buyer and at Buyer's sole cost.
5.3 City's Condition Precedent
The following are conditions precedent to City's obligation to sell the Property to Buyer
("City's Conditions Precedent"):
(a) Buyer shall have performed all of its obligations hereunder and all of
Buyer's representations and warranties shall be true and correct.
(b) A resolution approving and authorizing the transactions contemplated
hereby and finding that the public interest or necessity demands, or will not be inconvenienced
by the sale of the Property, shall have been adopted by the City's Board of Supervisors and
Mayor, in their respective sole and absolute discretion, and dilly enacted on or before
(c) City's satisfaction or waiver of the requirement to obtain from the City of
South San Francisco approval to subdivide the applicable portions of the Property (in the form of
a Parcel Map, Parcel Map Waiver or by other means) to create legal lots on the Property separate
from the adjacent property which will continue to be owned by City; provided, however, this
condition shall be solely for City's benefit.
5.4 Failure of City's Conditions Precedent
Each of City's Conditions Precedent are intended solely for the benefit of City. If any of
City's Conditions Precedent are not satisfied as provided above, City may, at its option,
terminate this Agreement. Upon any such termination, neither party shall have any further rights
or obligations hereunder except as provided in Sections 4.3 [Entry and Indemnity], 8.2
[Brokers], or 10.4 [Authority of Buyer] or as otherwise expressly provided herein.
6. ESCROW AND CLOSING
6.1 Escrow
Within ten (10) days after the parties hereto execute this Agreement, Buyer and City shall
deposit an executed counterpart of this Agreement with the Title Company, and this instrument
shall serve as the instructions to the Title Company as the escrow holder for consummation of
the purchase and sale contemplated hereby. City and Buyer agree to execute such supplementary
escrow instructions as may be appropriate to enable the Title Company to comply with the terms
of this Agreement; provided, however, in the event of any conflict between the provisions of this
Agreement and any supplementary escrow instructions, the terms of this Agreement shall
control.
6.2 Closing Date
The Closing hereunder shall be held, and delivery of all items to be made at the Closing
under the terms of this Agreement shall be made, at the offices of the Title Company on: (a) the
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date which is the later of thirty (30) days after: (i) the expiration of the Contingency Period and
enactment of the Board of Supervisor's resolution referred to in Section 5.3(b) above, or if such
date is not a business day, then upon the next ensuing business day, before 1:00 p.m. San
Francisco time or (ii) Buyer issues bond financing necessary to purchase the Property or (b) such
earlier date and time as Buyer and City may mutually agree upon in writing (the "Closing
Date"). Notwithstanding anything to the contrary contained herein, in no event shall the Closing
Date be later than three hundred sixty-five (365) days after the date this Agreement is executed
by the parties. Such date and time may not be extended without the prior written approval of
both City and Buyer.
6.3 Deposit of Documents
items:
(a) At or before the Closing, City shall deposit into escrow the following
(i) the duly executed and acknowledged Deed conveying the Real
Property to Buyer subject to the Conditions of Title;
(ll) a duly executed counterpart of the Bill of Sale covering the
Personal Property, in the form attached hereto as Exhibit D; and
(ill) four (4) duly executed counterparts of an Assignment and
Assumption of Leases in the form attached hereto as Exhibit E (the "Assignment of Leases").
items:
(b) At or before the Closing, Buyer shall deposit into escrow the following
(i) the funds necessary to close this transaction;
(ll) a duly executed counterpart of the Bill of Sale; and
(ill) four (4) duly executed counterparts of the Assignment of Leases.
(c) City and Buyer shall each deposit such other instruments as are reasonably
required by the Title Company or otherwise required to close the escrow and consummate the
purchase of the Property in accordance with the terms hereof.
(d) City shall deliver to Buyer originals (or to the extent originals are not
available, copies) of the Leases, and copies of the tenant correspondence files) for the three (3)
most recent years of City's ownership of the Property only), and originals (or to the extent
originals are not available, copies) of any other items which City is required to furnish Buyer
copies of or make available at the Property pursuant to Section 2 above, within five (5) business
days after the Closing Date. City shall deliver to Buyer a set of keys to the Property on the
Closing Date.
6.4 Prorations
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Rents, including, without limitation, percentage rents, if any, and any additional charges
and expenses payable under the Leases, all as and when actually collected (whether such
collection occurs before, on or after the Closing Date); any real property taxes and assessments;
water, sewer and utility charges; amounts payable under any service contracts; annual permits
and/or inspection fees (calculated on the basis of the period covered); and any other expenses
normal to the operation and maintenance of the Property, together with tenant improvement
costs, leasing commissions and free rent, shall all be prorated as of 12:01 a.m. on the date the
Deed is recorded, on the basis of a three hundred sixty-five (365)-day year. Any delinquent rents
collected after the Closing shall be paid immediately to City. Buyer shall use all reasonable
efforts to collect such delinquent rents; provided, however, City reserves its right to sue a tenant
under its Lease for damages suffered by City as a result of such tenant's failure to pay any rents
to City which were payable prior to the Closing Date so long as such a suit does not seek a
termination of such tenant's Lease. The amount of any security deposits received by City and
not applied against tenants' obligations under the Leases shall be credited against the Purchase
Price. The Purchase Price shall be increased by the amount of any utility deposits paid by City
with respect to the Property. City and Buyer hereby agree that if any of the above described
prorations cannot be calculated accurately on the Closing Date, then the same shall be calculated
as soon as reasonably practicable after the Closing Date and either party owing the other party a
sum of money based on such subsequent proration(s) shall promptly pay said sum to the other
party .
7. RISK OF LOSS
7.1 Loss
City shall give Buyer notice of the occurrence of damage or destruction of, or the
commencement of condemnation proceedings affecting, any portion of the Property. In the
event that all or any portion of the Property is condemned, or destroyed or damaged by fire or
other casualty prior to the Closing, then Buyer may, at its option to be exercised within ten (10)
days of City's notice of the occurrence of the damage or destruction or the commencement of
condemnation proceedings, either terminate this Agreement or consummate the purchase for the
full Purchase Price as required by the terms hereof. If Buyer elects to terminate this Agreement
or fails to give City notice within such ten (1 D)-day period that Buyer will proceed with the
purchase, then this Agreement shall terminate at the end of such ten (1 D)-day period, the Title
Company shall return the Deposit to Buyer, and neither party shall have any further rights or
obligations hereunder except as provided in Sections 4.3 [Entry and Indemnity], 8.2 [Brokers],
or otherwise expressly provided herein.
7.2 Self Insurance
Notwithstanding anything to the contrary above, Buyer acknowledges that City self-
insures and shall not be obligated to purchase any third party comprehensive liability insurance
or property insurance.
8. EXPENSES
8.1 Expenses
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Buyer shall pay any transfer taxes applicable to the sale, personal property taxes, escrow
fees, title premiums, survey fees, and recording charges and any other costs and charges of the
escrow for the sale, except City shall reimburse Buyer for 50% of survey, engineering and
mapping work by City related to the transaction contemplated in this Agreement up to a
maximum amount of $50,000.
8.2 Brokers
The parties represent and warrant to each other that no broker or finder was instrumental
in arranging or bringing about this transaction and that there are no claims or rights for brokerage
commissions or finder's fees in connection with the transactions contemplated by this
Agreement. If any person brings a claim for a commission or finder's fee based on any contact,
dealings, or communication with Buyer or City, then the party through whom such person makes
a claim shall defend the other party from such claim, and shall indemnify the indemnified party
from, and hold the indemnified party against, any and all costs, damages, claims, liabilities, or
expenses (including, without limitation, reasonable attorneys' fees and disbursements) that the
indemnified party incurs in defending against the claim. The provisions of this Section shall
survive the Closing, or, if the purchase and sale is not consummated for any reason, any
termination of this Agreement.
9. LIQUIDATED DAMAGES
IF THE SALE OF THE PROPERTY IS NOT CONSUMMATED DUE TO THE CITY'S
DEFAULT HEREUNDER AND BUYER IS NOT THEN IN DEFAULT, THEN THE TITLE
COMP ANY SHALL RETURN THE DEPOSIT THEREON TO BUYER. IF THE SALE IS
NOT CONSUMMATED DUE TO ANY DEF AUL T BY BUYER HEREUNDER AND CITY IS
NOT THEN IN DEF AUL T, THEN THE TITLE COMPANY SHALL DELIVER THE
LIQUIDATED DAMAGES AMOUNT (AS DEFINED IN SECTION 2(a) ABOVE)
TOGETHER WITH ACCRUED INTEREST THEREON TO CITY (OR THE CITY MAY
RETAIN THE DEPOSIT IF ALREADY DELIVERED TO CITY), AND CITY SHALL BE
ENTITLED TO RETAIN SUCH SUM AS LIQUIDATED DAMAGES; AND THE TITLE
COMP ANY SHALL RETURN THE REMAINING DEPOSIT (AS DEFINED IN SECTION
2(a) ABOVE) TO BUYER. THE PARTIES HA VB AGREED THAT CITY'S ACTUAL
DAMAGES, IN THE EVENT OF A FAILURE TO CONSUMMATE THIS SALE AS
SPECIFIED IN THE PRECEDING SENTENCE, WOULD BE EXTREMELY DIFFICULT OR
IMPRACTICABLE TO DETERMINE.. AFTER NEGOTIATION, THE P ARTIES HAVE
AGREED THAT, CONSIDERING ALL THE CIRCUMSTANCES EXISTING ON THE DATE
OF THIS AGREEMENT, THE AMOUNT OF THE LIQUIDATED DAMAGES AMOUNT
TOGETHER WITH ACCRUED INTEREST THEREON IS A REASONABLE ESTIMATE OF
THE DAMAGES THAT CITY WOULD INCUR IN SUCH AN EVENT. BY PLACING
THEIR RESPECTIVE INITIALS BELOW, EACH P ARTY SPECIFICALLY CONFIRMS THE
ACCURACY OF THE STATEMENTS MADE ABOVE AND THE FACT THAT EACH
PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED, AT THE TIME THIS
AGREEMENT WAS MADE, THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES
PROVISION.
INITIALS: CITY:
BUYER:
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10. GENERAL PROVISIONS
10.1 Notices
Any notices required or permitted to be given under this Agreement shall be in writing
and shall be delivered (a) in person, (b) by certified mail, postage prepaid, return receipt
requested, or (c) by U.S. Express Mail or commercial overnight courier that guarantees next day
delivery and provides a receipt, and such notices shall be addressed as follows:
CITY:
BUYER:
Real Estate Division
City and County of San Francisco
25 Van Ness Avenue, Suite 400
San Francisco, CA 94102
Attn: Director of Property
South San Francisco Redevelopment Agency
400 Grand Avenue
South San Francisco, CA 94080
Attn: Executive Director
with a copy to:
Hazel M. Brandt
Deputy City Attorney
Office of the City Attorney
City Hall, Room 234
1 Dr. Carlton B. Goodlett Place
San Francisco, CA 94102
with a copy to:
Steven T. Mattas
Meyers Nave
555 12th Street Suite 1500
Oakland, CA 94607
or such other address as either party may from time to time specify in writing to the other party.
Any notice shall be deemed given when actually delivered if such delivery is in person, two (2)
days after deposit with the U.S. Postal Service if such delivery is by certified or registered mail,
and the next business day after deposit with the U.S. Postal Service or with the commercial
overnight courier service if such delivery is by overnight mail.
10.2 Successors and Assigns
This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and
their respective successors, heirs, legal representatives, administrators and assigns. Buyer's
rights and obligations hereunder shall not be assignable without the prior written consent of City;
provided, however, even if City approves any such proposed assignment, in no event shall Buyer
be released of any of its obligations hereunder.
10.3 Amendments
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This Agreement may be amended or modified only by a written instrument signed by the
Buyer and City.
10.4 Authority of Buyer
Buyer represents and warrants to City that this Agreement and all documents executed by
Buyer which are to be delivered to City at Closing: (a) are or at the time of Closing will be duly
authorized, executed and delivered by Buyer; (b) are or at the time of Closing will be legal, valid
and binding obligations of Buyer; and (c) do not and at the time of Closing will not violate any
provision of any agreement or judicial order to which Buyer is a party or to which Buyer is
subject. Notwithstanding anything to the contrary in this Agreement, the foregoing
representations and warranties and any and all other representations and warranties of Buyer
contained herein or in other agreements or documents executed by Buyer in connection herewith,
shall survive the Closing Date.
10.5 Buyer's Representations and Warranties
Buyer makes the following representations as of the date of this Agreement and at all
times throughout this Agreement:
(a) Buyer has duly authorized by all necessary action the execution, delivery
and performance of this Agreement. Buyer has duly executed and delivered this Agreement and
this Agreement constitutes a legal, valid and binding obligation of Buyer, enforceable against
Buyer in accordance with the terms hereof.
(b) Buyer represents and warrants to City that it has not been suspended,
disciplined or disbarred by, or prohibited from contracting with, any federal, state or local
governmental agency. In the event Buyer has been so suspended, disbarred, disciplined or
prohibited from contracting with any governmental agency, it shall immediately notify the City
of same and the reasons therefore together with any relevant facts or information requested by
City. Any such suspension, debarment, discipline or prohibition may result in the termination or
suspension of this Agreement.
(c) No document or instrument furnished or to be furnished by the Buyer to
the City in connection with this Agreement contains or will contain any untrue statement of
material fact or omits or will omit a material fact necessary to make the statements contained
therein not misleading, under the circumstances under which any such statement shall have been
made.
10.6 Governing Law
This Agreement shall be governed by, subject to, and construed in accordance with the
laws of the State of California and City's Charter and Administrative Code.
10.7 Merger of Prior Agreements
This Agreement, together with the exhibits hereto, contain any and all representations,
warranties and covenants made by Buyer and City and constitutes the entire understanding
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between the parties hereto with respect to the subject matter hereof. Any prior correspondence,
memoranda or agreements are replaced in total by this Agreement together with the exhibits
hereto.
10.8 Parties and Their Agents
The term "Buyer" as used herein shall include the plural as well as the singular. If Buyer
consists of more than one (1) individual or entity, then the obligations under this Agreement
imposed on Buyer shall be joint and several. As used herein, the term "Agents" when used with
respect to either party shall include the agents, employees, officers, contractors and
representatives of such party.
10.9 Interpretation of Agreement
The article, section and other headings of this Agreement and the table of contents are for
convenience of reference only and shall not affect the meaning or interpretation of any provision
contained herein. Whenever the context so requires, the use of the singular shall be deemed to
include the plural and vice versa, and each gender reference shall be deemed to include the other
and the neuter. This Agreement has been negotiated at ann's length and between persons
sophisticated and knowledgeable in the matters dealt with herein. In addition, each party has
been represented by experienced and knowledgeable legal counsel. Accordingly, any rule oflaw
(including California Civil Code Section 1654) or legal decision that would require interpretation
of any ambiguities in this Agreement against the party that has drafted it is not applicable and is
waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect
the purposes of the parties and this Agreement.
10.10 Attorneys' Fees
If either party hereto fails to perform any of its respective obligations under this
Agreement or if any dispute arises between the parties hereto concerning the meaning or
interpretation of any provision of this Agreement, then the defaulting party or the party not
prevailing in such dispute, as the case may be, shall pay any and all costs and expenses incurred
by the other party on account of such default or in enforcing or establishing its rights hereunder,
including, without limitation, court costs and reasonable attorneys' fees and disbursements. For
purposes of this Agreement, the reasonable fees of attorneys of the Office of the City Attorney of
the City and County of San Francisco shall be based on the fees regularly charged by private
attorneys with the equivalent number of years of experience in the subject matter area of the law
for which the City Attorney's services were rendered who practice in the City of San Francisco
in law firms with approximately the same number of attorneys as employed by the City
Attorney's Office.
10.11 Time of Essence
Time is of the essence with respect to the performance of the parties' respective
obligations contained herein.
10.12 No Merger
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The obligations contained herein shall not merge with the transfer of title to the Property
but shall remain in effect until fulfilled.
10.13 Non-Liability of City Officials, Employees and Agents
Notwithstanding anything to the contrary in this Agreement, no elective or appointive
board, commission, member, officer, employee or agent of City shall be personally liable to
Buyer, its successors and assigns, in the event of any default or breach by City or for any amount
which may become due to Buyer, its successors and assigns, or for any obligation of City under
this Agreement.
10.14 Conflicts of Interest
Through its execution of this Agreement, Buyer acknowledges that it is familiar with the
provisions of Section 15.103 or City's Charter, Article III, Chapter 2 of City's Campaign and
Governmental Conduct Code, and Section 87100 et seq. and Section 1090 et seq. of the
Government Code of the State of California, and certifies that it does not know of any facts
which constitute a violation of said provisions and agrees that if it becomes aware of any such
fact during the term of this Agreement, Buyer shall immediately notify the City.
10.15 Notification of Limitations on Contributions
Through execution of this Agreement, Buyer acknowledges that it is familiar with
Section 1.126 of City's Campaign and Governmental Conduct Code, which prohibits any person
who contracts with the City for selling or leasing any land or building to or from the City
whenever such transaction would require approval by a City elective officer or the board on
which that City elective officer serves, from making a contribution to such an officer, or
candidate for such office, or committee controlled by such officer or candidate at any time from
the commencement of negotiations for such contract until the termination of negotiations for
such contract or three (3) months has elapsed from the date the contract is approved by the City
elective officer, or the board on which that City elective officer serves. San Francisco Ethics
Commission Regulation 1.126-1 provides that negotiations are commenced when a prospective
contractor first communicates with a City officer or employee about the possibility of obtaining a
specific contract. This communication may occur in person, by telephone or in writing, and may
be initiated by the prospective contractor or a City officer or employee. Negotiations are
completed when a contract is finalized and signed by the City and the contractor. Negotiations
are terminated when the City and/or the prospective contractor end the negotiation process
before a final decision is made to award the contract.
10.16 Sunshine Ordinance
Buyer understands and agrees that under the City's Sunshine Ordinance (San Francisco
Administrative Code, Chapter 67) and the State Public Records Law (Gov. Code Section 6250 et
seq.), this Agreement and any and all records, information, and materials submitted to the City
hereunder public records subject to public disclosure. Buyer hereby acknowledges that the City
may disclose any records, information and materials submitted to the City in connection with this
Agreement.
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10.17 Tropical Hardwood and Virgin Redwood Ban
The City and County of San Francisco urges companies not to import, purchase, obtain or
use for any purpose, any tropical hardwood, tropical hardwood wood product, virgin redwood or
virgin redwood wood product except as expressly permitted by the application of Sections
802(b) and 803(b) of the San Francisco Environmental Code.
10.18 MacBride Principles - Northern Ireland
The City urges companies doing business in Northern Ireland to move toward resolving
employment inequities and encourages them to abide by the MacBride Principles as expressed in
San Francisco Administrative Code Section 12F.l et seq. The City also urges companies to do
business with corporations that abide by the MacBride Principles. Buyer acknowledges that it
has read and understands the above statement of the City concerning doing business in Northern
Ireland.
10.19 No Recording
Neither this Agreement nor any memorandum or short form thereof may be recorded by
Buyer.
10.20 Effective Date
As used herein, the term "Effective Date" shall mean the date on which the City's Board
of Supervisors and Mayor enact a resolution approving and authorizing this Agreement and the
transactions contemplated hereby, following execution of this Agreement by both parties.
10.21 Acceptance by Buyer
This Agreement shall be null and void unless it is accepted by Buyer and two (2) fully
executed copies hereof are returned to City on or before 5:00 p.m. San Francisco time on
,2005.
10.22 Counterparts
This Agreement may be executed in two (2) or more counterparts, each of which shall be
deemed an original, but all of which taken together shall constitute one and the same instrument.
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS
AGREEMENT, BUYER ACKNOWLEDGES AND AGREES THAT NO OFFICER OR
EMPLOYEE OF CITY HAS AUTHORITY TO COMMIT CITY TO THIS AGREEMENT
UNLESS AND UNTIL A RESOLUTION OF CITY'S BOARD OF SUPERVISORS SHALL
HAVE BEEN DULY ENACTED APPROVING THIS AGREEMENT AND AUTHORIZING
THE TRANSACTIONS CONTEMPLATED HEREBY. THEREFORE, ANY OBLIGATIONS
OR LIABILITIES OF CITY HEREUNDER ARE CONTINGENT UPON THE DUE
ENACTMENT OF SUCH A RESOLUTION, AND THIS AGREEMENT SHALL BE NULL
AND VOID IF CITY'S BOARD OF SUPERVISORS AND MAYOR DO NOT APPROVE
THIS AGREEMENT IN THEIR RESPECTIVE SOLE DISCRETION. APPROVAL OF THE
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TRANSACTIONS CONTEMPLATED HEREBY BY ANY DEPARTMENT, COMMISSION
OR AGENCY OF CITY SHALL NOT BE DEEMED TO IMPLY THAT SUCH ORDINANCE
OR RESOLUTION WILL BE ENACTED NOR WILL ANY SUCH APPROVAL CREATE
ANY BINDING OBLIGATIONS ON CITY.
The parties have duly executed this Agreement as of the respective dates written below.
CITY:
BUYER:
CITY AND COUNTY OF SAN
FRANCISCO, a municipal corporation
CITY OF SOUTH SAN FRANCISCO
a municipal corporation
By:
By:
STEVE LEGNITTO
Director of Property
[NAME]
Its:
APPROVED AS TO FORM:
DENNIS J. HERRERA, City Attorney By:
[NAME]
By:
Its:
[NAME OF DEPUTY]
Deputy City Attorney
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EXHIBIT A
REAL PROPERTY DESCRIPTION
All that certain real property located in the City of South San Francisco, County of San
Mateo, State of California, described as follows:
[NOTE: DESCRIPTION TO COME FROM TITLE REPORT]
008884.0001 \740969.1
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A-1
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EXHIBIT B
008884.0001\740969.1
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B-1
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EXHIBIT C
QUITCLAIM DEED
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
MAIL TAX STATEMENTS TO:
Attn:
Documentary Transfer Tax of$
based on full value of the property conveyed
(Space above this line reserved for Recorder's use only)
QUITCLAIM DEED [WITH RESTRICTIONS
AND EASEMENT RESERVATIONS]
[(Assessor's Parcel No. )]
FOR VALUABLE CONSIDERATION, receipt and adequacy of which are hereby
acknowledged, the CITY AND COUNTY OF SAN FRANCISCO, a municipal corporation
("City"), pursuant to Resolution No. , adopted by the Board of Supervisors on
, 200_ and approved by the Mayor on , 200_, hereby
RELEASES, REMISES AND QUITCLAIMS to ,
any and all right, title and interest City may have in and to the real property located in the City of
South San Francisco, County of San Mateo, State of California, described on Exhibit A attached
hereto and made a part hereof.
008884.0001 \740969.1
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C-1
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Executed as ofthis
day of
,200_.
CITY AND COUNTY OF SAN
FRANCISCO, a municipal corporation
GA VIN NEWSOM
Mayor
GLORIA L. YOUNG
Clerk of the Board of Supervisors
STEVE LEGNITTO
Director of Property
APPROVED AS TO FORM:
DENNIS J. HERRERA, City Attorney
By:
[NAME OF DEPUTY]
Deputy City Attorney
DESCRIPTION CHECKED/APPROVED:
[NAME]
City Engineer
809557-1
T
2
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State of California )
County of San Francisco )
On
appeared
before me,
, personally
, personally
known to me (or 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 hislher/their authorized capacity(ies), and that by hislher/their signature(s)
on the instrument the person( s), or the entity on behalf of which the person( s) acted, executed the
instrument.
WITNESS my hand and official seal.
Signature
(Seal)
809557-1
2
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EXHffiIT D
BILL OF SALE
For good and valuable consideration, the receipt and adequacy of which is hereby
acknowledged, the CITY AND COUNTY OF SAN FRANCISCO, a municipal corporation
("City"), does hereby sell, transfer and convey to , a
("Buyer"), the personal property described in
the attached Schedule 1 and used in connection with the operation of that certain real property
located at , San Francisco, California.
WITHOUT LIMITING ANY OF THE PROVISIONS OF THE AGREEMENT OF
PURCHASE AND SALE BETWEEN CITY AND BUYER, BUYER ACKNOWLEDGES AND
AGREES THAT CITY IS SELLING AND BUYER IS PURCHASING SUCH PERSONAL
PROPERTY ON AN "AS-IS WITH ALL FAULTS" BASIS AND THAT BUYER IS NOT
RELYING ON ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND
WHATSOEVER, EXPRESS OR Th1PLIED, FROM CITY, ITS AGENTS, EMPLOYEES OR
OFFICERS, AS TO ANY MATTERS CONCERNING SUCH PERSONAL PROPERTY,
INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A P ARTICULAR PURPOSE.
Executed as of this
day of
,200_.
CITY AND COUNTY OF SAN
FRANCISCO, a municipal corporation
GAVIN NEWSOM
Mayor
GLORIA L. YOUNG
Clerk of the Board of Supervisors
STEVE LEGNITTO
Director of Property
008884.0001\740969.1
3/2/064:27 PM
D-1
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APPROVED AS TO FORM:
DENNIS 1. HERRERA, City Attorney
By:
[NAME OF DEPUTY]
Deputy City Attorney
809557-1
2
-24-
EXHffiIT E
ASSIGNMENT AND ASSUMPTION OF LEASE(S)
THIS ASSIGNMENT AND ASSUMPTION OF LEASE(S) (this "Assignment") is made
and entered into as of this _ day of , 200_, by and between the CITY AND
COUNTY OF SAN FRANCISCO, a municipal corporation ("Assignor") and
, a ("Assignee").
FOR GOOD AND VALUABLE CONSIDERATION, the receipt of which is hereby
acknowledged, effective as of the date (the "Conveyance Date") City conveys title to that certain
real property commonly known as (the
"Property"), Assignor hereby assigns and transfers to Assignee all of Assignor's right, title,
claim and interest in and under certain lease(s) executed with respect to the Property as more
fully described in Schedule 1 attached hereto (collectively, the "Lease(s)").
ASSIGNOR AND ASSIGNEE FURTHER HEREBY AGREE AND COVENANT AS
FOLLOWS:
As of the Conveyance Date, Assignor hereby agrees to indemnify, defend and hold
Assignee harmless from any and aU costs, liabilities, losses, damages or expenses (including,
without limitation, reasonable attorneys' fees), originating prior to the Conveyance Date and
arising out of the landlord's obligations under the Lease(s).
As of the Conveyance Date, Assignee hereby assumes all of the landlord's obligations
under the Leases and agrees to indemnify Assignor against and hold Assignor harmless from any
and all costs, liabilities, losses, damages or expenses (including, without limitation, reasonable
attorneys' fees), originating on or subsequent to the Conveyance Date and arising out of the
landlord's obligations under the Lease(s).
If either party hereto fails to perform any of its respective obligations under this
Agreement or if any dispute arises between the parties hereto concerning the meaning or
interpretation of any provision of this Agreement, then the defaulting party or the party not
prevailing in such dispute, as the case may be, shall pay any and all costs and expenses incurred
by the other party on account of such default or in enforcing or establishing its rights hereunder,
including, without limitation, court costs and reasonable attorneys' fees and disbursements. For
purposes of this Agreement, the reasonable fees of attorneys of the Office of the City Attorney of
the City and County of San Francisco shall be based on the fees regularly charged by private
attorneys with the equivalent number of years of experience in the subject matter area of the law
for which the City Attorney's services were rendered and who practice in the City of San
Francisco in law firms with approximately the same number of attorneys as employed by the
City Attorney's Office.
This Assignment shall be binding on and inure to the benefit of the parties hereto, their
heirs, executors, administrators, successors in interest and assigns.
008884.0001 \740969.1
3/2/064:27 PM
E-1
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'I'
This Assignment shall be governed by and construed in accordance with the laws of the
State of California and City's Charter.
This Assignment may be executed in two (2) or more counterparts, each of which shall be
deemed an original, but all of which taken together shall constitute one and the same instrument.
Assignor and Assignee have executed this Assignment as of the day and year first written
above.
ASSIGNEE:
a
By:
[NAME]
Its:
By:
[NAME]
Its:
ASSIGNOR:
CITY AND COUNTY OF SAN
FRANCISCO, a municipal corporation
By:
[NAME]
Its:
APPROVED AS TO FORM:
DENNIS 1. HERRERA, City Attorney
By:
[NAME OF DEPUTY]
Deputy City Attorney
809557-1
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008884.0001 \740969.1
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'I'
AGREEMENT FOR SALE OF REAL ESTATE
by and between
CITY AND COUNTY OF SAN FRANCISCO,
as Seller
and
CITY OF SOUTH SAN FRANCISCO,
as Buyer
F or the sale and purchase of
South San Francisco, California
,2005
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TABLE OF CONTENTS
Page
1. SALE .AND PURCHASE ...... ........................... ........................ .................. ............. .......... 2
1.1 Property Included in Sale ........................ .... ..................... ...... .......... ............ .......... 2
2. PURCHASE PRICE ............ ... ..... ................ ....."......................... .... .................. ....... .......... 2
3. TITLE ........... .... ...... ..... ..... .................... ............... ................... ..... ...... ...... .............. ............ 3
3.1 Conditions of Title................................".. ............................................. ................. 3
3.2 Deed Restrictions.................................." ................................................................ 3
3.3 Reservation of Easements ....................."....... ............ ... ...... ........ ........................ .... 3
3.4 Buyer's Responsibility for Title Insurance ............................................................ 3
4. "AS IS" PURCHASE; RELEASE OF CITY .................................................................... 4
4.1 Buyer's Independent Investigation ............................... ....... ........ .................. ........ 4
4.2 Hazardous Substance Disclosure ................................. ..... ..... ................................ 4
4.3 Entry and Indemnity ... ....... .................. .._. ...... ............... ... ........... .... ......... ..... .......... 5
4.4 "As Is" Purchase..................................."................................................................ 6
4.5 Release of City........................... ............_.............................;.................................. 6
5. CONDITIONS PRECEDENT .. ...... ..... ......................................... .................. .................... 8
5.1 Buyer's Conditions Precedent ..... ....... ............. .................. ........ ............................. 8
5.2 Contingency Period. .............................."......... .............................................. ......... 8
5.3 City's Condition Precedent ..................."...... .............................. ............................ 9
5.4 Failure of City's Conditions Precedent.................................................................. 9
6. ESCROW AND CLOSING. ..... ...... .......... ........._... .:..... ............. ....... ................... ........ ....... 9
6.1 Escrow .. ........................................................... ...................................................... 9
6.2 Closing Date .................... .............................................. ....................................... 10
6.3 Deposit of Documents ... ............... ........... ..... .................. ................ ......... ......... .... 10
6.4 Prorations..................................... ........................................................................ 11
7. RISK OF LOSS [NEED TO HAVE REVIEWED BY RISK MANAGER] ................... 11
7.1 Loss.......................................................".............................................................. 11
7.2 Self Insurance ......................................."..... ......................................................... 13
8. EXPENSES.. ..... ....... .... ........... .......... ................... ........... ........ ........ ............ .... ... ..... .......... 13
8.1 Expenses ....................................... ....... .._.............................................................. 13
8.2 Brokers.................................................."....... ....................................................... 13
9 . LIQUIDATED DAMAGES ........ ................... .."....... ......... .......... ......... ........... ................ 13
10. GENERAL PROVISIONS ...... ................... ......._.......... ............ ...... ...... .... ...... .......... ........ 14
10.1 Notices....................................... ....... ....._....... ....................................................... 14
10.2 Successors and Assigns ........................" ............ ................ ..... .............. ....... ........ 15
10.3 Amendments ..... ............ .......... ............ .." ................... ............ .... ......... ..... ......... .... 15
10.4 Authority of Buyer...... ... ......... .............." ..... ...................................... ..... .............. 15
008884.0001 \740969.1
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- 28..
TABLE OF CONTENTS
( continued)
Page
10.5 Buyer's Representations and Warranties ............................................................. 15
10.6 Governing Law.................... ...... ................................... ........ ................. .............. 16
10.7 Merger of Prior Agreem.ents .................................. ...................... .......... .............. 16
10.8 Parties and Their _Agents .......... ...................................... ...................................... 16
10.9 Interpretation of Agreem.ent......... ................................... ...... ................ ............... 16
10.10 Attorneys' Fees .................................................................................................... 17
10.11 Time of Essence.......................... ................................................ ................. ........ 17
10.12 No Merger..................................... ................... .................................................... 17
10.13 Non-Liability of City Officials, Employees and Agents ..................................... 17
10.14 Conflicts of Interest ........................... ...................................................... ............ 17
10.15 Notification of Limitations on Contributions ...................................................... 17
10.16 Sunshine Ordinance ............... ............ ......... ....... .................................................. 18
10.17 Tropical Hardwood and Virgin Redwood Ban .................................................... 18
10.18 MacBride Principles - Northern Ireland ..............................................................18
1 0.19 No Recording.......... ........................... .............................................................. .... 18
10.20 Effective Date......... .......................... ............................................ ........ ............... 19
10.21 Acceptance by Buyer ............... ....................... ...................... ............................... 19
10.22 Counterparts.............. ......................... ......... ......................................................... 19
LIST OF EXHIBITS
EXHIBIT A REAL PROPERTY DESCRIPTION
EXHIBIT B
EXHIBIT C QUITCLAIM DEED
EXHIBIT D BILL OF SALE
EXHIBIT E ASSIGNMENT AND ASSUMPTION OF LEASE(S)
-29-
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AGENDA
CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
REGULAR MEETING
MUNICIP AL SERVICE BUILDING
COMMUNITY ROOM
WEDNESDAY, MARCH 8, 2006
7:30 P.M.
PEOPLE OF SOUTH SAN FRANCISCO
You are invited to offer your suggestions. In order that you may know our method of conducting
Council business, we proceed as follows:
The regular meetings of the City Council are held on the second and fourth Wednesday of each month at
7:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San
Francisco, California.
Public Comment: For those wishing to address the City Council on any Agenda or non-Agendized item,
please complete a Speaker Card located at the entrance to the Council Chamber's and submit it to the
City Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public
comment. California law prevents the City Council fi~om taking action on any item not on the Agenda
(except in emergency circumstances). Your question or problem may be referred to staff for
investigation and/or action where appropriate or the matter may be placed on a future Agenda for more
comprehensive action or a report. When your name is called, please come to the podium, state your
name and address (optional) for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES
PER SPEAKER. Thank you for your cooperation.
The City Clerk will read successively the items of business appearing on the Agenda. As she completes
reading an item, it will be ready for Council action.
JOSEPH A. FERNEKES
Mayor
RICHARD A. GARBARINO, SR
Vice Mayor
MARK N. ADDIEGO
Councilman
PEDRO GONZALEZ
Councilman
KARYL MATSUMOTO
Councilwoman
RICHARD BATTAGLIA
City Treasurer
SYLVIA M. PAYNE
City Clerk
BARRY M. NAGEL
City Manager
STEVEN T. MATT AS
City Attorney
PLEASE SILENCE CELL PHONES AND PAGERS
HEARING ASSISTANCE EQUIPMENT AVAILABLE FOR USE BY THE HEARING IMP AIRED AT CITY COUNCIL MEETINGS
L
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
INVOCATION
PRESENTATIONS
. Certificate of Appreciation - Blue Ribbon Supply, recipient: Ms. Carolyn Dilena
. Certificates of Recognition - Mary Crans and Sue Miller
. Housing Endowment and Regional Trust (HEART) - San Mateo County Supervisor
Richard Gordon
. 2006 Summer Camp Program - Recreation Program Supervisors Kelli Cullinan, Tim
Chenette and Elaine Porter
AGENDA REVIEW
PUBLIC COMMENTS
ITEMS FROM COUNCIL
. Announcements
. Committee Reports
CONSENT CALENDAR
1. Motion to approve the minutes of February 15 and 22,2006
2. Motion to confirm expense claims of March 8,2006
PUBLIC HEARING
3. Community Development Block Grant Program review of proposed activities requesting
CDBG funding; and provide direction regarding funding priorities for the FY 2006-07
program year
COUNCIL COMMUNITY FORUM
CLOSED SESSION
4. Conference with Legal Counsel, pursuant to Government Code section 54956.95 -
liability claims: claimants Pooi, Douthit, ,md Riborozo; Agency claimed against: City
of South San Francisco; and pursuant to Government Code section 54956.9(a) - existing
litigation: Carlino v. City of South San Francisco
ADJOURNMENT:
REGULAR CITY COUNCIL MEETING
AGENDA
MARCH 8, 2006
PAGE 2
AGENDA ITEM #3
Staff Report
DATE: March 8, 2006
TO: Honorable Mayor and City Council
FROM: Marty VanDuyn, Assistant City Manager
SUBJECT: Community Development Block Grant Program
RECOMMENDATION:
It is recommended that City Council: (1) hear public testimony on the City's housing and
community development needs for the One Year Action Plan; (2) review proposed activities
requesting CDBG funding; and (3) provide direction to staff regarding funding priorities for
the 2006-2007 program year.
BACKGROUNDIDISCUSSION:
The purpose ofthis Public Hearing is to: (1) obtain citizens' views on housing and community
development needs for the City's One Year Action Plan; (2) review activities that are under
consideration for funding and past program performance; and (3) give City Council an
opportunity to provide direction to staff regarding funding priorities for fiscal year 2006-2007.
Organizations seeking CDBG funds can make a brief presentation to Council regarding their
projects and City Council may take this opportunity to ask the agencies questions regarding the
proposed activities.
Federal legislation requires citizen participation in all phases of the development of a locality's
CDBG Program. Accordingly, two public hearings have been scheduled, the first to obtain
citizens' views of community needs and the second to adopt the City's Action Plan and make
final allocations for CDBG funding. This public hearing was announced in the San Mateo Times on
February 25,2006. CDBG applications were distributed to the City's standard mailing list and to all
community organizations that expressed an interest. Additionally, an invitation to submit proposals
was published in the San Mateo Times on January 4,2006, pursuant to federal legislation and the
City's adopted Citizen Participation Plan. Requests for Proposals were due by February 3, 2006.
The City has received notification from the Department of Housing and Urban Development
(HUD) regarding a reduction in funding to the Community Development Block Grant entitlement
Staff Report
Subject: Community Development Block Grant Program
Page No 2
for fiscal year 2006-2007. The City received a 10% reduction, decreasing last year's entitlement
of $686,877 to $617,465 for 2006-07.
Pursuant to federal spending limitations, a total of $92,620 or 15% may be allocated for public
service activities; and a total of $123,493 or 20 % may be allocated for administration activities.
Spending limits in those two categories are established by congressional statute and may not be
exceeded. The balance of the entitlement amount, or 65 % ofthe total CDBG entitlement, is
allocated for housing and commercial activities, including improvements to public facilities. This
reduced level of funding will have a significant impact on social service agencies and general
CDBG administration and programs across the board. Although 15% ofthis year's program
income can be used to offset some of the cuts, the public service category will require a reduction
of$5,450 from the current year funding level.
SUMMARY OF PROPOSALS RECEIVED:
There were no new public service requests this year and the majority of public services funded
during the current fiscal year have requested continued funding. Two previously funded agencies
did not submit proposals in the public service category. The Child Care Coordinating Council
submitted a proposal in the public facility category and Ellipse did not submit a proposal.
All agencies currently receiving grant funds were asked to submit an application in the same
amount as the current year's allocation due to the reduction in the City's entitlement amount and
required cuts in that category. The total amount requested in the public service category totals
$124,000 while the total amount available is $111,250. This amount includes 15% of projected
program mcome.
The combined category of housing, commercial and public facilities consists of the city-
sponsored Housing Program, which administers housing development activities, acquisition and
rehabilitation projects, minor home repair, and rehab loans to low-income homeowners; the city-
sponsored Commercial Rehabilitation Program; CID Housing Access Program; and Rebuilding
Together Peninsula. Additionally included in this category are two requests for public facility
funding from the Child Care Coordinating Council and the Family Service Agency.
REDEVELOPMENT AND HOME FUNDS:
Redevelopment Agency housing funds have historically been allocated for housing projects such
as Safe Harbor (emergency shelter), the transitional housing operations of Shelter Network, and
the Human Investment Project's Home Share Program. These projects provide housing to
homeless clients and persons or families at risk of becoming homeless. In fiscal year 2006-2007
these projects will be handled in the same manner by taking advantage of the CDBG allocation
process to solicit and award grants.
Sitike Counseling Center and La Raza Centro Legal (code enforcement project) also submitted
applications for continued funding from the Redevelopment Agency.
Staff Report
Subject: Community Development Block Grant Program
Page No 3
The County of San Mateo HOME Consortium provides yearly administration funds to the City from
the HOME Program, based on a percentage of the County's federal HOME entitlement. In prior
years, the City Council has targeted these funds to undertake fair housing activities that are required
by federal legislation. This strategy enables the City to free up public service dollars, subject to
federal spending limits, for non-legal activities. The HOME entitlement was also cut approximately
10%. This year the allocated amount is $16,757. Although the City will be able to continue funding
La Raza Centro Legal and Project Sentinel for fair housing activities, cuts will be required in this
area as well.
PRELIMINARY FUNDING RECOMMENDATIONS CDBG SUBCOMMITTEE:
The City Council's CDBG Subcommittee will meet to review all proposals, discuss program
accomplishments and prioritize activities for funding.
The Subcommittee will hold it's first meeting on March 20, 2006, to review applications and
prepare preliminary funding recommendations to be presented to City Council at the April 12,
2006 public hearing. At that meeting, City Council will adopt the Annual Plan and make final
funding allocations for the CDBG Program and for the HOME and Redevelopment funds
designated as part of the CDBG budget.
Staff has prepared a worksheet titled "Community Development Block Grant Program Summary
of Funding Requests". The worksheet is attached to this report as "Exhibit B" and provides a
summary of projects, funding for each project for the last two fiscal years, funding requests for
fiscal year 2006-2007 and a blank column Council Members may use for comments or
recommendations. The CDBG Subcommittee would appreciate if Council Members would write
in any funding recommendations or comments/questions in the notes column at the far right. The
Subcommittee will review these worksheets and use them when making their funding
recommendations to City Council.
Please note that Council Members are requested to submit their worksheets to the
Subcommittee directly or via the CDBG Coordinator, no later than Friday, March 10th.
The Subcommittee needs to submit their final recommendations to Council by March 24th.
Preliminary funding recommendations must be published for community review on April I,
2006. The City is required by federal mandate to publish preliminary funding recommendations
at least ten days prior to the public hearing. The deadline for submission to the San Mateo
County Times is March 28,2006.
MATERIALS PROVIDED AS EXHIBITS FOR CITY COUNCIL REVIEW:
A CDBG binder has been prepared for Council Members containing every proposal that was
received and has been placed in the City Council office at City Hall. Additional materials or
copies can be secured at the Office of Economic and Community Development upon request. In
order to assist Council Members to prepare for the first public hearing, several exhibits have been
attached to this staff report, providing detailed information regarding program accomplishments,
Staff Report
Subject: Community Development Block Grant Program
Page No 4
specific project budgets and number of clients served.
The attached exhibits are as follows:
Exhibit "A" Community Development Entitlement Grant Fund Availability
Exhibit "B" Community Development Block Grant Program Summary of Funding Requests
Exhibit "C" 2006-07 CDBG Applicant Budgets and Beneficiary Data
Exhibit "D" Summary of Final Funding Recommendations for 2006-07
ONE YEAR ACTION PLAN:
Each year the City is required to submit a One Year Action Plan to HUD that includes all CDBG
and housing related activities. This Action Plan outlines the City's goals for the coming fiscal
year and includes the CDBG funding allocations determined by Council. The City is required to
hold public hearings on the One Year Action Plan. Because the City is part of the County
Consortium, the City submits its Action Plan along with San Mateo County. The County's
deadline is May 1,2006.
CONCLUSION:
The CDBG Subcommittee prepares the funding recommendations for City Council to adopt at
the final public hearing scheduled for April 12, 2006. This meeting will be the final opportunity
for City Council to take action and authorize submission of the One Year Action Plan to San
Mateo County by May 1,2006. The County is required to submit all CDBG Action Plans to
HUD by May 15,2006.
All funds allocated by City Council on April 12, 2006 will be incorporated into the CDBG
budget for fiscal year 2006-2007.
BY:~N
Marty VanDuyn, .
Assistant City Manager
--,
Attachments: Exhibits A, B, C, D
',.
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SUMMARY OF SOURCES AND FUNDS A VAILABLE FISCAL YEAR 2006-07
CDBG ENTITLEMENT AMOUNT
PROJECTED CDBG PROGRAM INCOME (PI)
TOTAL CDBG FUNDS
15% available for Public Service Projects*
20% available for Program Administration**
Balance available for Housing, Commercial Rehab.&
Public Facilities
TOTAL HOME FUNDS
TOTAL REDEVELOPMENT FUNDS
TOTAL FUNDS ALL SOURCES 06-07
$111,250
$123,493
$507,722
According to HUD guidelines:
*Public Serivces is based on 15% of 06-07 entitlement plus $125,000 in PI
estimated from Fiscal Year 2005-06
**Administration is based on 20% of 06-07 entitlement only
2/23/2006 - 2
'I"
06-07
FUNDS
AVAILABLE
$617,465
$125,000
$742,465
$16,757
$70,300
$829,522
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taff
eport
DATE:
March 8, 2006
TO:
Honorable Mayor and City Council
FROM:
Marty Van DuYll, Assistant City Manager
SUBJECT:
REIMBURSEMENT AGREEMENT FOR REPAIR OF STORM DRAIN LINE AT
479 SOUTH AIRPORT BOULEVARD
RECOMMENDATION
It is recommended that the City Council, by motion, authorize the City Manager to execute the attached
reimbursement agreement for repair of the storm drain line at 479 South Airport Boulevard.
BACKGROUND/DISCUSSION
Costco is currently constructing a gasoline fueling facility and parking lot improven1ents on property it occupies
at 451-479 South Airport Boulevard. A City storm drain which crosses a portion of the property has suddenly
and unexpectedly failed at this location. City staff has determined that failure of this line constitutes an
eInergency and repairs are needed immediately. Since Costco currently has contractors on the site who can
expeditiously retain a subcontractor to perform the necessary repair work, staff and Costco have drafted the
attached reimbursement agreement to allow the City to delegate the repair work to Costco and reimburse then1
accordingly.
FUNDING
As indicated in the attached proposal from REPIPE-Califomia, the required work is estimated to cost
$132,263.82. There are currently funds available in the Stormwater fund for the project.
CONCLUSION
The City is responsible for all costs and expenses pertaining to the storm drain line. Since the line has failed
and needs immediate repair it is mutually beneficial to delegate the repair work to Costco since they have
contractors currently on site and are able to quickly subcontract for this work. Consequently, it is recommended
that the City Council authorize the City Manager to execute the attached reimbursement agreement with Co"stco
to enable the repair work to proceed without delay.
B'
Marty Van DuYll
Assistant City Manag
-,
Attachment: Reimbursement Agreement
Repair Proposal- REPIPE-Califomia dated March 8, 2006
REIMBURSEMENT AGREEMENT
FOR REPAIR OF STORM DRAIN LINE
THIS REIMBURSEMENT AGREEMENT (this "Agreement") is Inade and
entered into this _day of , 2006, by and among the CITY OF
SOUTH SAN FRANCISCO, a municipal corporation of the State of California, herein
referred to as "City", and COSTCO WHOLESALE CORPORATION, a Washington
Corporation, herein referred to as "Costco".
A. Costco is undertaking improvements (the "Project") to portions of the real
property it occupies at 451-479 South Airport Boulevard, South San Francisco,
California, including to land on both sides of Belle Air Road (the "Property").
B. City is the owner of a portion of the Property and has leased it to Costco
pursuant to that certain Ground Lease dated February 26, 1985, by and between City and
Costco (as successor through merger with The Price Company).
C. City and Costco entered into that certain Storm Drain Line Maintenance
License dated June 22,2005, and recorded as Document No. 2005-155023 in the Official
Records of the County of San Mateo (the "License"), which license grants to City the
right to keep in place and to access for maintenance a storm drain line (the "Line")
traversing the Property, as more particularly described in the License, for the remaining
term of the Ground Lease. The License provides that City is responsible for all costs and
expenses pertaining to the Line, including without limitation alteration, maintenance,
repair, replacement, removal and operation thereof.
D. The Line has suddenly and unexpectedly failed and requires immediate
repaIr.
E. Accordingly, City has determined the failure of the Line constitutes an
emergency and has authorized the Line to be repaired without giving notice for bids to let
contracts, in accordance with California Public Contract Code Section 22050.
F. In connection with the Project, Costco currently has contractors on-site
that are experienced and competent in dealing with contaminated soils and that can retain
a subcontractor to repair the Line with appropriate precautions and more expeditiously
than the City could do so acting on its own.
G. City desires to delegate Costco to repair the Line and Costco is willing to
do so on behalf of the City, subject to the terms and conditions herein provided.
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, it is agreed as follows:
1. Estimate for Repair. Costco has submitted to City an estiInate for repair
of the Line (the "Repair Work") from rePipe-Califomia, Inc. (the "Repair
Contractor").
2. Contract for Repair. City's Public Works Department approves said
estimate and authorizes Costco to enter into a contract for the Repair Work (the "Repair
Contract"), which shall include a ten percent (10%) contingency. Costco shall enter into
the Repair Contract either directly or acting through its general contractor, its excavation
contractor or other contractor. The Repair Contract shall be subject to Prevailing Wage
requirements.
3. Change Order Procedure. The contract amount for the Repair Work shall
not be increased by more than the contingency unless the increase is reflected in a change
order approved by Costco and City. Costco may unilaterally increase the contract up to
an amount not to exceed Five Thousand Dollars ($5,000) but shall provide City with a
copy of the change order(s) for such increase. Change orders in excess of Five Thousand
Dollars ($5,000) must be approved by the City Public Works Director. Costco and the
City Public Works Director together may approve a change order if net total of the
change orders approved through and including the then-pending change order will not
exceed the contract amount plus contingency by more than Fifty Thousand Dollars
($50,000.00). Costco and the City Manager together may approve any change orders in
excess thereof. If Costco is prepared to approve a change order, Costco shall submit the
change order proposal to the City for approval. The City's approval shall not be
unreasonably withheld, delayed or conditioned. The City shall accompany any rejection
with a written statement of the basis therefor. Costco may proceed with the work covered
by the change order pending City approval of the change order, or even after City
rejection of the change order, but Costco shall do so at its own risk to the extent that the
City raises valid objections to the change order proposal. Any change order that is
submitted to the City for approval shall be deemed accepted if not accepted or rejected by
the City within five (5) business days of such submittal. Notwithstanding any other
provision of this Agreement, if treatment or removal and replacement of contaminated
soils is required in connection with the Repair Work, that treatment or removal shall be
included within the scope of the Repair Work, whether preformed by the Repair
Contractor or another contractor retained directly by Costco or as a subcontractor to the
Repair Contractor, and the costs ,of treating or removing and replacing contaminated soils
\
shall be processed as a change order and reimbursable to Costco.
4. Reimbursement. City shall inspect the Repair Work upon notice from
Costco or the Repair Contractor that the Repair Work is substantially complete and shall
accept the work as complete if it is consistent with the specifications of the Repair
Contract. If City finds deficiencies in the work, City shall issue a punch list. Within
thirty (30) days following inspection and acceptance of the substantially cOInpleted work,
City shall pay to Costco the amount of the contract price as adjusted by any change
orders approved in accordance with Section 3 hereof, including without limitation any
change orders necessitated by contaminated soils, and subject only to a holdback
sufficient to cover the cost of any punch list items. The holdback shall be paid to Costco
2
within thirty (30) days following City inspection and acceptance of the final completion
of the punch list items.
5. Release and Mutual Indemnity. City acknowledges and agrees that in
performing in accordance herewith and causing the Repair Work to be undertaken,
Costco shall be acting as an agent for the City. Costco shall assign all contractors'
warranties for the Repair Work to the City. City shall indemnify and hold Costco
harmless from and against and hereby release Costco from all common law and statutory
liabilities, damages, obligations, losses, claims, civil actions, costs or expenses, including
attorneys' fees (collectively, "Claims") resulting from any act or omission or negligence
of City and the licensees, agents, servants, employees, guests, invitees, and visitors of
City in or about the Property, or arising from any injury or damage to any person or
property occurring in or about the Property as a result of any act, omission or negligence
of City, licensees, agents, servants, employees, guests, invitees, and visitors. Further,
City hereby releases Costco from any and all Claims resulting from any act or omission
or negligence arising out of or in any way connected with the performance of the Repair
Work by the Repair Contractor and shall look solely to the Repair Contractor with respect
to any deficiencies in the Repair Work. Additionally, Costco shall indemnify and hold
City harmless from and against and hereby releases City from all Claims resulting from
any act or omission or negligence of Costco or Costco' s general contractor retained by
Costco for the Project and the and the licensees, agents, servants, employees, guests,
invites, and visitors of Costco and said general contractor in or about the Property, or
arising from any injury or damage to any person or property occurring in or about the
Property as a result of any act, omission or negligence of Costco or said general
contractor, licensees, agents, servants, employees, guests, invitees, and visitors.
6. Insurance. Prior to commencement of Repair Work, City shall be named
as an additional insured on Costco's insurance liability policy. As evidence of such
coverage, Costco shall provide City with on-demand access to Costco' s Memorandum of
Insurance at the following website: www.marsh.com/moi?client=0847.
7. Notices. Any notice or other communication hereunder shall be in writing
and shall be hand delivered or sent by United States registered or certified mail, postage
prepaid, return receipt requested, addressed to the appropriate party at its address set forth
below, or at such other address as such party shall have last designated by notice to the
other parties. The same shall be deemed given when delivered or three days after
mailing; provided, however, that if any such notice or other communication shall also be
sent by telecopy or fax machine, such notice shall be deemed given at the time and on the
date of machine transmittal if the sending party receives a written send verification on its
machine and forwards a copy thereof with its mailed or courier delivered notice or
communication. The addresses for notices are as follows:
If to City:
City of South San Francisco
400 West Grand Boulevard
South San Francisco, CA 94083
Attention: Public Works Director
Fax No.: (650) 829-6665
3
If to Costco:
Costco Wholesale Corporation
999 Lake Drive
Issaquah, W A 98027
Attention: Legal & Real Estate Department
Fax No: (425) 313-8114
With a Copy to:
Preston Gates & Ellis LLP
55 Second Street, Suite 1700
San Francisco, CA 94105
Attention: David B. Franklin
Fax No.: (415) 882-8119
8. Attorneys Fees. In the event any party hereto brings or commences
litigation for a declaration of the rights of the parties under this Agreement, for injunctive
relief, or for an alleged breach or default of this Agreement, or any other action arising
out of this Agreement, the prevailing party in any such action shall be entitled to an
award of reasonable attorneys' fees and any court costs incurred in such action or
proceeding, in addition to any other damages or relief awarded, regardless of whether
such action proceeds to final judgment.
9. Entire Agreement No Oral Modifications. This Agreement and the
exhibits hereto constitute the final and complete agreement and supersede all prior
correspondence, memoranda or agreements. This Agreement cannot be changed or
modified other than by a written agreement executed by all of the parties.
10. Successors Bound. The provisions of this Agreement shall extend to, bind
and inure to the benefit of the parties hereto and their respective personal representatives,
heirs, successors, and assigns. .
11. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
12. Counterparts. This Agreement may be executed in more than one
counterpart, each of which shall be deemed an original, and all of which together shall
constitute one and the same instrument.
13. Severability. If any term or provision of this Agreement shall, to any
extent, be held invalid or unenforceable, the remaining terms and provisions of this
Agreement shall not be affected thereby, but each remaining term and provision shall be
valid and enforced to the fullest extent permitted by law.
14. Captions. The captions of this Agreement are inserted solely for
convenience of reference only and do not define, describe or limit the scope or intent of
this Agreement or any term hereof.
[SIGNATURES BEGIN ON NEXT PAGE]
4
THIS AGREEMENT is executed as of the date and year first above written.
CITY:
CITY OF SOUTH SAN FRANCISCO
By:
ATTEST:
Audrey Hooper, City Clerk
APPROVED AS TO FORM:
City Attorney
Date:
COSTCO:
COSTCO WHOLESALE CORPORATION
a Washington corporation
By:
Its:
5
83i08!2~8S 82:52
30 '3 2 '~ l.:H37'11
F:EF;I I PE CA
f-ALil:. lJ'i
-CALIF RNIA
~~~ ~",,",es_......rnn~~ -"'="":1:'__
__ ~~rc:l~r~""llPJ\.;:e.er--
M~u'cb 8, 2006
Proposal No. # 06-434..A
LedcoJr Const.ruction Int,
9655 SE 3'6t~ Street, Slllite 210
Mercer I~R$nd, Washington 98040
Ph: (206) 230..B811
F.ax: (206) 230-8833
Atnl: Don Alderman
Proposal for: CleM9 CCTV & Rehabilitation of ~ppro:omately 650 .L.J~'. of existing 21-incb
diameter Cl\'IP pip~ with the Rib Loc Expands Pipe Sy'stem locHted off Airport Bhid.
adj~cellJlt tq1 f,he COSCO.
Dear D011:
RePipe - Ca1Homia:~ Inc. is p'8~sed to offer the. f.0HoVY1ng quotatiQn fQT the clean) (:ctv & rehabilitation of
approxtmatel.y 650 LF. ofexistmg 21~inch diameterCMP with the Ri.b Lac Expanda Pipe SY:5tem..
TIils proposal is based on the .information supplied to us by Le.dcor Construction and our site visit \Vf;
aSSU1fne that the underground pipe line within this project is lw.eable and con.tains no offsets or protrUsic:ms
exceeding 12.5\1/0 of the initial pipe line diameter. .in accordance witb ASTlv1 F 174-1 ~ thes~ cOnditIons
require e1\.~er1'k11 repairs, Any edditiona! work required to renlOve obstructions or make point repairs is
cQrwidered outside tht scope of this proposal.
Proj~ct Des~~riptio1l1:
TJ'lJe existing 21~,inch ClvlP pipelines to be lined art;;: located in lfle in the City of South S<Ul Fra.ncj~c.o
Based on l.YU,f assessmerlt of the pipe~ the existing pipe !s considered t'0 be ITi the ?'fully deterjorated~'
design condition, Accordingly, the installed liner pipe \\till be a structural liner pipe and will not require
StrUCtMIJ support from the exJsdng pipe to support the design .loa.cL..,.
5525 ii. Gibrilll,tar Strnet Ontario, CA ~1764
Ph~ 909-291...4050 flltx: 909-291-4070
83/08/2005 02:52
'3E1'3:2914B7;1:;l
REPIPE Cf:;,
Pt.GE C1.~
Pipl't Lining J\lJ~t~ni81ls:
RePipe-Ca proposes to install the RibLoc Expanda pipe lining system for this projel1:. The; l~ner pipe '\.vW
consi:st c~f a 19.42~inch dia..'l1cte1, RibLoc. 126-20 EX profile llner pipe luateriaJ after insr.allatjon of liner
rUlltef'ial. F oHowing J iner in~taUation\ the ends of the liner pipe bet""veen the lin.er and the existing pipe
will be sealed to prevent infiltra.tion/ex-fUtration. Upon completion of the wor~ the installed liner will be
video inspected, Proposed lining w{lrk for this project will be in accordance ,~ith the Greenbook~ section
500~ 1-13.
r~Pip~~C:alUfornja, Inc. win e()nlplet.e the following s~ope of work for this pro,ieet:
1. ~1~)biJke equipment and persoDnel to jobsit.e.
2. CCTV inspilcil1UlJfJ\ tb.~ eXisting pipelin~ prior to Unmg.
3. Install 19.42..in~b ID R.ibLoc 126..20 EX profile liner pipe ~:o rehabilitate the existing 650 LF
of Zi-inch C1VIP.
4, R.einstate existing!llervice tOrlnep:t1ons b)' use of robotic Internal cutting equipmelmt if needed.
5. Se.al ends of liner pipe betwe.~rn niner and th~ existing pip~ at .t:':sch end.
6. Post CCTV pipe inspedi,lon of the ~babilitated Une segments.
C~mpen8ation sh~n be m~de in aecord~lmce with the f{l\lk~~~tjng unit pri~e ~chedu!e:
I\tobilijze~ Plr'~-C'CTV inspect & Clean, 21..inch Rep.
21~
650 LF
==
$17~13.82
MobUizet Insb4U RibLoc E';;IPuullda liner pipe, sel2l1 ends and Post CCTV Ul!tf(:H.,z.ction of the
Teb~bUitated line s~m~ntv
Zl"
65fB LF'
x
$: .1 77.f.JOLF :::
$1.15,050.00
IPT AL PRI!2E :::
$132~263.82
SS:!5 E. Gibrraltar SttE'Set Ontarivr tA '.\)1164
Ph. 909"'291-4050 Fax: 909~291-4070
C3iU~!~~~b ~~:,~
'j tl'j [:1l. y 1;;' .. i:;.1
r,L..1 ~ I L. ,,_,1""1
Acceptance oftbis proposal will inc.lude the followi.ng conditions and el:cllislou~:
i' Lin.ing \'\-iJl be completed only after the. lines are Cleaned & CeDI and determined to be Jinable 1~rjth
the R.i b toe. Expanda Pipe .Process,
IJl' Repipe-CaJifomia's c.leaning contractor will be allowed to dispose of debris at the plant adjacent to
the job site.
o P~nnits, inspection or engin~erjng fees, testin.g costs and liquidated damages are n.ot included in this
bid.
e This bid is based 0.0. one mobiliz:ation to and one demobilization from. Ontario~ CaHf01nia. There \\~n
be an additional c.harge of$5~OOO.OO for any re.rnobiHzation.
~ Unit prices to prevail f.or pay purposes.
. This quotatio.n is based on award of all items of work Reduction in. quantity and changes in the scope
of work may require a unit price adjustment.
~ Sealing of Servir:.e Connections is net in,eluded iJl the scope of work for this P.r\lp08al
~ It is assumed that all pipes included as part of this project are lineable ~.Jld contain DO major
<obstnH.'jions, bends or offsets that would i.mpact our abUhy to perform the listed scope of work.
~ Any additional 'work and/or exca'vatio.n required for removing obstructions, making point repairs.
exposing dead endsJcleanouis, reinstate/sea.11aterals externally or trim protruding lateralsltaps is
cQ1Jsidere.d to be outside the scope of this proposaL
~ Ac:cess for purposes of lining to be provided by Ledcor or others.
'" Proposal valid for 90-d.aY:::l from date of proposaL
. Requirement for major traffic control is considered to 'be outside the scope of this proposal.
RePipewCalHbrnia, Inc. is pleased to off(;'f this proposal to Ledcor Construction~ Inc. & the City of South
San Francisc.Ql' 3.t'ld looks forvva:rd to working with you in the neat future. 1f you have any question
regarding proposal please feel free to contact me at (909) 291.4054
Sincerely~
rePipe -. California~ Int.
Lic~nse #814303
Joseph P. Dominguez
Proj ect Manager
Acceptance Signature ~_~.
Date:~~
Cc: Mick Fuller - rePip~-California. Inc. GenerallVia.'1ager
5525 E. Gibr.tllitmr Streoat Ontario, CA 917$4
Ph: 909-2,91-4050 Fax~ 909-291-40110