SUBJECT TO THE EXCLUSIONS FROM COVERAGE, AND THE GUARANTEE CONDITIONS ATTACHED HERETO
AND MADE A PART OF THIS GUARANTEE,
CHICAGO TITLE INSURANCE COMPANY
a corporation, herein called the Company
GUARANTEES
the Assured named in Schedule A of this Guarantee
against loss or damage not exceeding the Amount of Liability stated in Schedule A sustained by the Assured by reason of any incorrectness in the Assurances set forth in Schedule A.
Chicago Title Company
7475 N. Palm Avenue, Ste 107
Fresno, CA 93711
Chicago Title Insurance Company
By:
Countersigned By:
Tasha Thompson
Authorized Officer or Agent
Michael J. Nolan, President
Attest:
Marjorie Nemzura, Secretary
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991 ISSUING OFFICE:
Title Officer: Misty Elliott
Chicago Title Company
7475 N. Palm Avenue, Ste 107
Fresno, CA 93711
Phone: 661-410-4700 Fax: 661-410-4660
Main Phone: (661)410-4700
Email: [email protected]
SCHEDULE A
Amount of Liability Fee Title Officer
$5,000.00 $750.00 Misty Elliott
Date of Guarantee: January 26, 2024 at 07:30 AM
1. Name of Assured: Auburn Oak Developers LLC
2. The estate or interest in the Land which is covered by this Guarantee is:
A Fee
3. The Land referred to in this Guarantee is described as follows:
SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF
4. ASSURANCES:
According to the Public Records as of the Date of Guarantee, a. Title to the estate or interest in the Land is vested in:
Auburn Oak Developers LLC, a California Limited Liability Company b. Title to the estate or interest is subject to defects, liens or encumbrances shown in Schedule B which are not necessarily shown in the order of their priority.
END OF SCHEDULE A
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) EXHIBIT "A"
Legal Description
Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
For APN/Parcel ID(s): 189-760-01-00 and 189-760-02-00
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF ARVIN, COUNTY OF KERN, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:
Lot 48 of Tract Map No. 5816 – Phase 11A, in the City of Arvin, County of Kern, State of California, according to map recorded May 3, 2022 in Book 66, Page 44 of Maps, in the office of the County Recorder of said County.
Excepting therefrom all oil, gas, and other hydrocarbon substances and minerals of any kind or character, in, on, or thereunder, as reserved in deeds of record.
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991
SCHEDULE B
Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
1. REAL ESTATE TAXES:
a. Property taxes, including any personal property taxes and any assessments collected with taxes are as follows:
Code Area: 009-020
Tax Identification No.: 189-760-01-00
Fiscal Year: 2023-2024
1st Installment: $591.60 Not paid, + penalty $59.16
2nd Installment: $591.58 Open
Land: $88,000.00
Bill No.: 23-1126641-00
b. Property taxes, including any personal property taxes and any assessments collected with taxes are as follows:
Code Area: 009-026
Tax Identification No.: 189-760-02-00
Fiscal Year: 2023-2024
1st Installment: $2,009.27 Paid, + penalty $200.92
2nd Installment: $2,009.27 Open
Land: $297,500.00
Bill No.: 23-1126642-00
c. Prior to close of escrow, please contact the Tax Collector's Office to confirm all amounts owing, including current fiscal year taxes, supplemental taxes, escaped assessments and any delinquencies. d. The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Chapter 3.5 (commencing with Section 75) or Part 2, Chapter 3, Articles 3 and 4, respectively, of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A or as a result of changes in ownership or new construction occurring prior to Date of Policy.
e. Taxes and assessments levied by the Arvin-Edison Water Storage District.
Assessments levied by said District are payable with and in like manner as the County Taxes of the County of Kern.
2. THE FOLLOWING DEFECTS, LIENS AND ENCUMBRANCES (WHICH ARE NOT NECESSARILY SHOWN IN THEIR ORDER OF PRIORITY) AGAINST THE INTEREST:
a. An unrecorded oil and gas lease for the term therein provided, with certain covenants, conditions and provisions, together with easements, if any, as set forth therein, disclosed by document Entitled: Oil, Gas and Mineral Lease (Short Form)
Dated: February 28, 1993
Lessor: Ann Darby Joy, et al
Lessee: David S. Hartley, dba Hartley Natural Resource Development Recording Date: September 7, 1995
Recording No.: 0195109782 of Official Records
No insurance is made as to the present ownership of the leasehold created by said lease, nor as to other matters affecting the rights or interests of the lessor or lessee in said lease.
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991
SCHEDULE B
(continued)
Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
b. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: public in general
Purpose: ingress, egress and road purposes
Recording Date: September 11, 1998
Recording No.: 0198124415 of Official Records
Affects: said land, as set forth in said document
c. An irrevocable offer to dedicate an easement over a portion of said Land for Purpose(s): public road
Recording Date: September 11, 1998
Recording No.: 0198124415 of Official Records
Affects: said land, as set forth in said document
d. Matters contained in that certain document
Entitled: Well Easement Agreement
Dated: September 28, 2000
Executed by: Sycamore Villas, LLC
Recording Date: December 21, 2000
Recording No.: 0200162270 of Official Records
Reference is hereby made to said document for full particulars. e. Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon age, race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, genetic information, medical condition, citizenship, primary language, and immigration status, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document Recording Date: December 22, 2000
Recording No.: 0200162946 of Official Records
Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. f. Matters contained in that certain document
Entitled: Development Agreement
Dated: February 6, 2003
Executed by: City of Arvin and
Sycamore Villas LLC
Recording Date: July 3, 2003
Recording No.: 0203133456 of Official Records
Reference is hereby made to said document for full particulars.
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991
SCHEDULE B
(continued)
Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
Matters contained in that certain document
Entitled: Amendment to the Development Agreement
Dated: July 24, 2007
Executed by: Sycamore Villas, LLC and the
City of Arvin
Recording Date: October 9, 2007
Recording No.: 0207204984 of Official Records
Reference is hereby made to said document for full particulars.
Matters contained in that certain document
Entitled: Amendment to Development Agreement
Dated: June 12, 2009
Executed by: Sycamore Villas, LLC,
K. Hovnanian at Cielo LLC and the
City of Arvin
Recording Date: December 18, 2009
Recording No.: 0209185187 of Official Records
Reference is hereby made to said document for full particulars.
Matters contained in that certain document
Entitled: Amendment to Development Agreement
Dated: March 20, 2018
Executed by: Westminster Capital, Inc and the
City of Arvin
Recording Date: May 23, 2018
Recording No.: 218063885 of Official Records
Reference is hereby made to said document for full particulars. and Re-Recording Date: October 31, 2018
and Re-Recording No.: 218143949 of Official Records
Matters contained in that certain document
Entitled: Amendment to Development Agreement
Dated: September 18, 2018
Executed by: Auburn Oak Developers, LLC and the
City of Arvin
Recording Date: October 18, 2018
Recording No.: 218137988 of Official Records
Reference is hereby made to said document for full particulars.
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991
SCHEDULE B
(continued)
Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
g. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: City of Arvin
Purpose: temporary turnaround
Recording Date: June 15, 2005
Recording No.: 0205154231 of Official Records
Affects: said land, as set forth in said document
h. Easement(s) for the purpose(s) shown below and rights incidental thereto as delineated or as offered for dedication, on the map of Parcel Map No. 11401:
Purpose: 55 foot irrevocable offer of dedication to the City of Arvin Affects: as shown on said map
Recording No.: Book 54, Page 192 of Parcel Maps
Purpose: 25 foot additional public access
Affects: as shown on said map
Purpose: public access easement and 45 foot irrevocable offer of dedication to the City of Arvin Affects: as shown on said map
Purpose: Continental Oil Co. "Derby 1" 44-8699
Affects: as shown on said map
i. An unrecorded oil and gas lease for the term therein provided, with certain covenants, conditions and provisions, together with easements, if any, as set forth therein, disclosed by document Entitled: Memorandum of Oil, Gas, and Mineral Lease
Dated: June 5, 2017
Lessor: Monica Ann Stockton
Lessee: Petro-Lud Corporation
Recording Date: July 31, 2017
Recording No.: 217098338 of Official Records
No insurance is made as to the present ownership of the leasehold created by said lease, nor as to other matters affecting the rights or interests of the lessor or lessee in said lease. j. An unrecorded oil and gas lease for the term therein provided, with certain covenants, conditions and provisions, together with easements, if any, as set forth therein, disclosed by document Entitled: Memorandum of Oil, Gas, and Mineral Lease
Dated: June 5, 2017
Lessor: Peter Stockton
Lessee: Petro-Lud Corporation
Recording Date: July 31, 2017
Recording No.: 217098339 of Official Records
No insurance is made as to the present ownership of the leasehold created by said lease, nor as to other matters affecting the rights or interests of the lessor or lessee in said lease.
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991
SCHEDULE B
(continued)
Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
k. An unrecorded oil and gas lease for the term therein provided, with certain covenants, conditions and provisions, together with easements, if any, as set forth therein, disclosed by document Entitled: Memorandum of Oil, Gas, and Mineral Lease
Dated: June 5, 2017
Lessor: Barbara Stockton
Lessee: Petro-Lud Corporation
Recording Date: July 31, 2017
Recording No.: 217098340 of Official Records
No insurance is made as to the present ownership of the leasehold created by said lease, nor as to other matters affecting the rights or interests of the lessor or lessee in said lease. l. A deed of trust to secure an indebtedness in the amount shown below, Amount: $1,004,700.00
Dated: January 29, 2019
Trustor/Grantor Auburn Oak Developers LLC
Trustee: Placer Title Company
Beneficiary: Liliana Chavez
Recording Date: February 6, 2019
Recording No.: 219013192 of Official Records
Affects: this and other property
An assignment of the beneficial interest under said deed of trust which names:
Assignee: VPM Properties, LLC
Recording Date: December 27, 2022
Recording No.: 222188453 of Official Records
A substitution of trustee under said deed of trust which names, as the substituted trustee, the following Trustee: VPM Properties, LLC
Recording Date: January 18, 2023
Recording No.: 223007218 of Official Records
Said deed of trust has been partially reconveyed by instrument Recording Date: January 18, 2023
Recording No.: 223007218 of Official Records
The land described in said partial reconveyance is as follows:
land not contained herein
m. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document:
Granted to: Pacific Bell Telephone Company
Purpose: public utilities and incidental purposes
Recording Date: December 13, 2021
Recording No.: 221233132 of Official Records
Affects: the West 5 feet of said land, as set forth in said document
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991
SCHEDULE B
(continued)
Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
n. Notice: Please be aware that due to the conflict between federal and state laws concerning the cultivation, distribution, manufacture or sale of marijuana, the Company is not able to close or insure any transaction involving Land that is associated with these activities.
3. THE FOLLOWING MATTERS ARE DISCLOSED BY NAME ONLY AND THE COMPANY, WITHOUT
ADDITIONAL INFORMATION, IS UNABLE TO DETERMINE WHETHER ANY OR ALL OF THESE MATTERS ARE DEFECTS, LIENS OR ENCUMBRANCES AGAINST THE INTEREST:
none
END OF SCHEDULE B
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991 Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
EXCLUSIONS FROM COVERAGE
Except as expressly provided by the assurances in Schedule A, the Company assumes no liability for loss or damage by reason of the following:
(a) Defects, liens, encumbrances, adverse claims or other matters affecting the title to any property beyond the lines of the Land. (b) Defects, liens, encumbrances, adverse claims or other matters, whether or not shown by the Public Records (1) that are created, suffered, assumed or agreed to by one or more of the Assureds; or (2) that result in no loss to the Assured. (c) Defects, liens, encumbrances, adverse claims or other matters not shown by the Public Records. (d) The identity of any party shown or referred to in any of the schedules of this Guarantee. (e) The validity, legal effect or priority of any matter shown or referred to in any of the schedules of this Guarantee. (f) (1) Taxes or assessments of any taxing authority that levies taxes or assessments on real property; or (2) proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not the matters excluded under (1) or (2) are shown by the records of the taxing authority or by the Public Records.
(g) (1) Unpatented mining claims; (2) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (3) water rights, claims or title to water, whether or not the matters excluded under (1), (2) or (3) are shown by the Public Records.
GUARANTEE CONDITIONS
1. DEFINITION OF TERMS
The following terms when used in the Guarantee mean:
(a) the "Assured": the party or parties named as the Assured in Schedule A, or on a supplemental writing executed by the Company. (b) "Land": the Land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term "Land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways. (c) "Mortgage": mortgage, deed of trust, trust deed, or other security instrument. (d) "Public Records": those records established under California statutes at Date of Guarantee for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (e) "Date of Guarantee": the Date of Guarantee set forth in Schedule A. (f) "Amount of Liability": the Amount of Liability as stated in Schedule A.
2. NOTICE OF CLAIM TO BE GIVEN BY ASSURED
The Assured shall notify the Company promptly in writing in case knowledge shall come to the Assured of any assertion of facts, or claim of title or interest that is contrary to the assurances set forth in Schedule A and that might cause loss or damage for which the Company may be liable under this Guarantee. If prompt notice shall not be given to the Company, then all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of the Assured under this Guarantee unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice.
3. NO DUTY TO DEFEND OR PROSECUTE
The Company shall have no duty to defend or prosecute any action or proceeding to which the Assured is a party, notwithstanding the nature of any allegation in such action or proceeding.
4. COMPANY'S OPTION TO DEFEND OR PROSECUTE ACTIONS; DUTY OF ASSURED TO COOPERATE Even though the Company has no duty to defend or prosecute as set forth in Paragraph 3 above:
(a) The Company shall have the right, at its sole option and cost, to institute and prosecute any action or proceeding, interpose a defense, as limited in Paragraph 4 (b), or to do any other act which in its opinion may be necessary or desirable to establish the correctness of the assurances set forth in Schedule A or to prevent or reduce loss or damage to the Assured. The Company may take any appropriate action under the terms of this Guarantee, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this Guarantee. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (b) If the Company elects to exercise its options as stated in Paragraph 4 (a) the Company shall have the right to select counsel of its choice (subject to the right of the Assured to object for reasonable cause) to represent the Assured and shall not be liable for and will not pay the fees of any other counsel, nor will the Company pay any fees, costs or expenses incurred by an Assured in the defense of those causes of action which allege matters not covered by this Guarantee. (c) Whenever the Company shall have brought an action or interposed a defense as permitted by the provisions of this Guarantee, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from an adverse judgment or order.
(d) In all cases where this Guarantee permits the Company to prosecute or provide for the defense of any action or proceeding, the Assured shall secure to the Company the right to so prosecute or provide for the defense of any action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the Assured for this purpose. Whenever requested by the Company, the Assured, at the Company's expense, shall give the Company all reasonable aid in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or lawful act which in the opinion of the Company may be necessary or desirable to establish the correctness of the assurances set forth in Schedule A or to prevent or reduce loss or damage to the Assured. If the Company is prejudiced by the failure of the Assured to furnish the required cooperation, the Company's obligations to the Assured under the Guarantee shall terminate.
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991 (continued)
Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
5. PROOF OF LOSS OR DAMAGE
(a) In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Assured furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance, or other matter that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. (b) In addition, the Assured may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Guarantee, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Assured shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the Assured provided to the Company pursuant to this paragraph shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Assured to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in the above paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this Guarantee to the Assured for that claim.
6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS: TERMINATION OF LIABILITY In case of a claim under this Guarantee, the Company shall have the following additional options:
(a) To pay or tender payment of the Amount of Liability together with any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay. (b) To pay or otherwise settle with the Assured any claim assured against under this Guarantee. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or
(c) To pay or otherwise settle with other parties for the loss or damage provided for under this Guarantee, together with any costs, attorneys' fees, and expenses incurred by the Assured that were authorized by the Company up to the time of payment and that the Company is obligated to pay.
Upon the exercise by the Company of either of the options provided for in 6 (a), (b) or (c) of this paragraph the Company's obligations to the Assured under this Guarantee for the claimed loss or damage, other than the payments required to be made, shall terminate, including any duty to continue any and all litigation initiated by the Company pursuant to Paragraph 4.
7. LIMITATION OF LIABILITY
(a) This Guarantee is a contract of Indemnity against actual monetary loss or damage sustained or incurred by the Assured claimant who has suffered loss or damage by reason of reliance upon the assurances set forth in Schedule A and only to the extent herein described, and subject to the Exclusions From Coverage of this Guarantee. (b) If the Company, or the Assured under the direction of the Company at the Company's expense, removes the alleged defect, lien, or encumbrance or cures any other matter assured against by this Guarantee in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby.
(c) In the event of any litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom. (d) The Company shall not be liable for loss or damage to the Assured for liability voluntarily assumed by the Assured in settling any claim or suit without the prior written consent of the Company.
8. REDUCTION OF LIABILITY OR TERMINATION OF LIABILITY
All payments under this Guarantee, except payments made for costs, attorneys' fees and expenses pursuant to Paragraph 4 shall reduce the Amount of Liability under this Guarantee pro tanto.
9. PAYMENT OF LOSS
(a) No payment shall be made without producing this Guarantee for endorsement of the payment unless the Guarantee has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions, the loss or damage shall be payable within thirty (30) days thereafter.
10. SUBROGATION UPON PAYMENT OR SETTLEMENT
Whenever the Company shall have settled and paid a claim under this Guarantee, all right of subrogation shall vest in the Company unaffected by any act of the Assured claimant.
The Company shall be subrogated to and be entitled to all rights and remedies which the Assured would have had against any person or property in respect to the claim had this Guarantee not been issued. If requested by the Company, the Assured shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The Assured shall permit the Company to sue, compromise or settle in the name of the Assured and to use the name of the Assured in any transaction or litigation involving these rights or remedies.
If a payment on account of a claim does not fully cover the loss of the Assured the Company shall be subrogated to all rights and remedies of the Assured after the Assured shall have recovered its principal, interest, and costs of collection.
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816) CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FWKN-TO23000991 (continued)
Condition of Title Guarantee
CLTA Guarantee Form No. 28 (06/05/2014) Printed: 02.01.24 @ 01:44 PM
11. ARBITRATION
Either the Company or the Assured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Assured arising out of or relating to this Guarantee, any service of the Company in connection with its issuance or the breach of a Guarantee provision, or to any other controversy or claim arising out of the transaction giving rise to this Guarantee. All arbitrable matters when the amount of liability is Two Million And No/100 Dollars ($2,000,000) or less shall be arbitrated at the option of either the Company or the Assured. All arbitrable matters when the amount of liability is in excess of Two Million And No/100 Dollars ($2,000,000) shall be arbitrated only when agreed to by both the Company and the Assured. Arbitration pursuant to this Guarantee and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction.
12. LIABILITY LIMITED TO THIS GUARANTEE; GUARANTEE ENTIRE CONTRACT (a) This Guarantee together with all endorsements, if any, attached hereto by the Company is the entire Guarantee and contract between the Assured and the Company. In interpreting any provision of this Guarantee, this Guarantee shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, or any action asserting such claim, shall be restricted to this Guarantee. (c) No amendment of or endorsement to this Guarantee can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company.
13. SEVERABILITY
In the event any provision of this Guarantee, in whole or in part, is held invalid or unenforceable under applicable law, the Guarantee shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect.
14. CHOICE OF LAW; FORUM
(a) Choice of Law: The Assured acknowledges the Company has underwritten the risks covered by this Guarantee and determined the premium charged therefor in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of Guaranties of the jurisdiction where the Land is located.
Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims that are adverse to the Assured and to interpret and enforce the terms of this Guarantee. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law.
(b) Choice of Forum: Any litigation or other proceeding brought by the Assured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction.
15. NOTICES, WHERE SENT
All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this Guarantee and shall be addressed to the Company at:
Chicago Title Insurance Company
P.O. Box 45023
Jacksonville, FL 32232-5023
Attn: Claims Department
END OF CONDITIONS
6.A.7
Attachment: 5. Subdivision Guarantee_Redacted (Final Tract Map 5816)
CITY OF ARVIN
STAFF REPORT
TO: The Honorable Mayor Pro Tem, And Members of The City Council FROM: Nathan M. Hodges, City Attorney
Jeff Jones, City Manager
DATE: March 12, 2024
SUBJECT: CITY COUNCIL DISCUSSION OF OPTIONS REGARDING THE PROCESS
FOR FILLING THE VACANCY ON THE CITY COUNCIL AND DIRECTION
TO STAFF REGARDING THE SAME
RECOMMENDATION:
Staff recommends the City Council discuss initial options regarding how to fill the vacancy on the City Council and provide recommendations to Staff regarding the same.
BACKGROUND:
Under State law the City Council is required to fill a vacancy on the City Council either by appointing someone to the vacant position or holding a special election. There are various options for appointment. Staff is requesting direction from the Council as to how to proceed.
By way of background, Mayor Trujillo was elected to office in 2020, and has less than one year remaining in her term of office as Mayor. Mayor Trujillo passed away on March 3 rd
,
2024, thereby creating a vacancy that will need to be filled by the City Council either by appointment or by calling a special election. The person appointed or elected would fill the vacant seat for the remainder of the term of that seat, and that seat would then be up for election in November 2024. This staff report outlines the Council’s options and seeks direction from the City Council regarding how to proceed with filling the vacancy.
Options for Filling Vacancies
Government Code Section 36512 establishes the means by which a City Council vacancy may be filled. The City does not have an ordinance requiring a certain method for filling a vacancy. Consequently, under Section 36512(b), the City Council has the discretion to either (i) fill the vacancy by appointment or (ii) call for a special election.
The City Council must make this decision – to either fill the vacancy by appointment or call for a special election – within 60 days after the vacancy is created.
Consequently, the City Council must either appoint a qualified individual to fill the vacancy or call for a special election by no later than May 2nd, 2024. As a practical matter this
6.B.1
Attachment: Staff Report re Procedure to Fill Vacancy on City Council_031224 (Options re Process for Filling City Council Vacancy) means that the Council only has three regular meetings to act (March 26, and April 9 and 23, 2024) after this current meeting unless a special meeting is called.
Filling Vacancy by Appointment
If the City Council chooses to fill the vacancy by appointment, the specific method of appointment is within in the Council’s discretion, so long at the appointment is made within the 60-day time period. To be eligible, any person appointed must meet the minimum legal requirements required to run for office. For the City of Arvin, these are:
• The candidate must be a registered voter of the City (including age requirements). • The candidate must maintain a legal residence or domicile within the City. • The willingness to be appointed.
In addition to the minimum qualifications, the City Council can consider a wide variety of other factors that may affect a potential appointee’s suitability to serve in office, including experience, background, etc.
When filling a vacancy by appointment, there are three common approaches that are used by many public agencies: (i) applications by interested persons; ii) the candidate with the next highest number of votes (next-highest vote getter); or iii) outright appointment (no application). (i) Application Method.
Under the “application” option, the City Council would establish an application period for appointee hopefuls to submit an official City application with the City Clerk, with the intention of making an appointment at a future Council meeting after consideration of the applications.
If Council wishes to fill the vacancy under this method, Staff request the Council provide direction such as:
• Notice: How notice is to be provided (publication in paper, posting, word of mouth, etc.). • Application content: Would the Council like to make any changes to the application? • Deadline for Submittals: When the applications should be submitted to the City Clerk? • Deadline for Distribution: When the applications should be provided to the Council (either prior to or concurrent with the Agenda for the meeting)? Note: If the City Council opts to fill the vacancy by appointment, the Brown Act requires any interviews conducted by the entire City Council to be held in open session. (ii) Next-Highest-Vote-Getter Method.
Under this option, the City Council would appoint the candidate who received the highest number of votes in the election among the candidates who were not elected.
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Attachment: Staff Report re Procedure to Fill Vacancy on City Council_031224 (Options re Process for Filling City Council Vacancy) (iii) Outright Appointment (No Application) Method.
Under this option, the Council may make an appointment without going through an application process. The appointee is legally required to meet the age, residency, and voter registration requirements, and must be willing to be appointed. If the Council is inclined to pursue this option, it can direct staff to place an item on the agenda for appointment at a future meeting.
(iv) Other.
The City Council could also select another method of appointment, different from those discussed above.
Filling Vacancy by Special Election
Alternatively, the City Council may call a special election to fill the vacancy. The special election shall be held on the next regularly established election date not less than 114 days calculated after the call of the special election. The exact cost of holding a special election is not known at this time. However, they typically start out $15,000 or more depending on the number of voters and other factors (a recent Bakersfield special election to fill a ward seat cost over $100,000).
Due to the cost of holding a special election, most cities fill vacancies by appointment.
City staff also recommend using the appointment method in order to avoid such costs.
However, if the Council is unable to reach consensus on an appointment method or an appointee, staff recommends directing staff to make preparations to call a special election at a future Council meeting by no later than April 23, 2024.
FISCAL IMPACT:
There is a minimal fiscal impact associated with appointment other than certain Staff time, etc. If directed, Staff can attempt to obtain a more detailed estimate from the County as to the cost of holding a special election.
ATTACHMENTS:
- Sample Application
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Attachment: Staff Report re Procedure to Fill Vacancy on City Council_031224 (Options re Process for Filling City Council Vacancy)
APPLICATION FOR APPOINTMENT TO CITY COUNCIL
OF THE CITY OF ARVIN
(Separate page(s) may be attached if additional space is needed however, all sections and all questions on this application form must be completed.)
1. Full legal name: ______________________________
2. Address of legal residence or domicile within the City (attach two utility bills or similar documents as proof of residency):
3. Contact information:
Phone Email
4. Occupation/Employer:
5. Are you a resident of the City of Arvin?
6. How long have you lived in Arvin?
7. Are you a registered voter and over 18 years old?
8. Are you disqualified, or have you been disqualified, by the Constitution or laws of the state from holding a civil office?
9. Have you ever been convicted of a felony involving the giving, accepting, or offering of a bribe, embezzlement or theft of public funds, extortion, perjury, or conspiracy to commit any such crime, under California law or the law of another state, the United States, or another country? If so, have you been granted a pardon in accordance with law?
10. Why do you wish to serve as Mayor of the City of Arvin?
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Attachment: Staff Report re Procedure to Fill Vacancy on City Council_031224 (Options re Process for Filling City Council Vacancy)
11. What would you bring in the way of perspective or experience to the City Council?
12. Describe your qualifications which will assist the City Council in evaluating your application:
13. Describe your involvement with the community in Arvin, including any community service:
14. Describe any prior governmental experience, including any ties to, or experience with, working with the City Council or City staff:
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Attachment: Staff Report re Procedure to Fill Vacancy on City Council_031224 (Options re Process for Filling City Council Vacancy)
15. What is your vision for the City?
16. What do you perceive to be the primary issues facing the community now and over the next 2-4 years? Do you have any ideas of how the community should approach solutions to these issues?
17. What do you believe is the responsibility of a Mayor to the general community? To developers or business? To the City Council?
18. Regular meetings of the City Council are on the 2nd and 4th Tuesdays of each month starting at 6:00 p.m. Will you be able to attend regular Council meetings if appointed?
19. Will you be willing to serve on the City Council including any Council subcommittees or appointments to boards and commissions?
20. Please state any other information you would like to provide:
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Attachment: Staff Report re Procedure to Fill Vacancy on City Council_031224 (Options re Process for Filling City Council Vacancy) Next Steps:
• Please submit your completed application to: Cecilia Vela, City Clerk, Arvin City Hall, 200 Campus Drive, Arvin, CA 93203 or by email to [email protected] • All applications must be received by the City Clerk by no later than 5:00 p.m. on Monday, __________, 2024. City Staff will then distribute the applications to the City Council.
• The Council will be considering this matter at the regular meeting at 6:00 p.m. on Tuesday, __________________, 2024. Please attend the meeting in person and be prepared to participate if requested by the City Council. The agenda and contact information will be posted by no later than Friday evening on _______________, 2024, and can be found at https://www.arvin.org/AgendaCenter/. During the meeting the City Council may conduct any interviews, discuss, appoint, or continue the item to a subsequent meeting as may be appropriate.
Additional Information:
• If appointed, you will need to complete an FPPC conflict of interest form 700. • You may also be subject to a background check.
• If appointed, the City will provide orientation and opportunities for training including any training required by State law.
Acknowledgement:
I declare under the penalty of perjury that I am a registered voter with a legal residence or domicile within the City of Arvin. I also acknowledge and agree that the appointment to fill a vacancy on the City Council is a public process. As a result, this application may be used or released to the public subject to redaction of personal information by the City as appropriate.
Further, I understand that as a potential candidate I may be subject to subsequent public interviews or discussion of the merits by the City Council during City Council meetings which are open to the public. Finally, I confirm that I will be able to attend and participate, including attendance of regular Council meetings, if appointed as Mayor.
Print Name:
Signature:
Date:
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Attachment: Staff Report re Procedure to Fill Vacancy on City Council_031224 (Options re Process for Filling City Council Vacancy)