However, a subsequent or amended disclosure shall not be required for conditions and material inaccuracies of which Buyer is otherwise aware, or which are discovered by Buyer or disclosed in reports or documents provided to or ordered and paid for by Buyer.
B. LEAD DISCLOSURES:
(1) Seller shall, within the time specified in paragraph 3N(1), for any residential property built before January 1, 1978, unless exempted by Law, Deliver to Buyer a fully completed Federal Lead-Based Paint Disclosures (C.A.R. Form LPD) and pamphlet (“Lead Disclosures”).
(2) Buyer shall, within the time specified in paragraph 3L(3), have the opportunity to conduct a risk assessment or to inspect for the presence of lead-based paint hazards.
C. HOME FIRE HARDENING DISCLOSURE AND ADVISORY: For any transaction where a TDS is required, the property is located in a high or very high fire hazard severity zone, and the home was constructed before January 1, 2010 , Seller shall, within the time specified in paragraph 3N(1), Deliver to Buyer: (i) a home hardening disclosure required by law; and (ii) a statement of features of which the Seller is aware that may make the home vulnerable to wildfire and flying embers; and (iii) a final inspection report regarding compliance with defensible space requirements if one was prepared pursuant to Government Code § 51182 (C.A.R. Form FHDS).
D. DEFENSIBLE SPACE DISCLOSURE AND ADDENDUM: For any transaction in which a TDS is required and the property is located in a high or very high fire hazard severity zone, Seller shall, within the time specified in paragraph 3N(1), Deliver to Buyer (i) a disclosure of whether the Property is in compliance with any applicable defensible space laws designed to protect a structure on the Property from fire; and (ii) an addendum allocating responsibility for compliance with any such defensible space law (C.A.R. Form FHDS).
E. WAIVER PROHIBITED: Waiver of Statutory, Lead, and other Disclosures in paragraphs 11A(1), 11B, 11C, and 11D are prohibited by Law.
F. RETURN OF SIGNED COPIES: Buyer shall, within the time specified in paragraph 3L(4) OR 5 Days after Delivery of any disclosures specified in paragraphs 11 A, B, C or D, and defensible space addendum in paragraph 11D, whichever is later, return Signed Copies of the disclosures, and if applicable, addendum, to Seller.
G. TERMINATION RIGHTS:
(1) Statutory and Other Disclosures: If any disclosure specified in paragraphs 11A, B, C, or D, or subsequent or amended disclosure to those just specified, is Delivered to Buyer after the offer is Signed, Buyer shall have the right to terminate this Agreement within 3 Days after Delivery in person, or 5 Days after Delivery by deposit in the mail, or by an electronic record or email satisfying the Uniform Electronic Transactions Act (UETA), by giving written notice of rescission to Seller or Seller's Authorized Agent. If Buyer does not rescind within this time period, Buyer has been deemed to have approved the disclosure and shall not have the right to cancel.
(2) Defensible Space Compliance: If, by the time specified in paragraph 11F, Buyer does not agree to the terms regarding defensible space compliance Delivered by Seller, as indicated by mutual signatures on the FHDS, then Seller, after first Delivering a Notice to Buyer to Perform, may cancel this Agreement.
H. WITHHOLDING TAXES: Buyer and Seller hereby instruct Escrow Holder to withhold the applicable required amounts to comply with federal and California withholding Laws and forward such amounts to the Internal Revenue Service and Franchise Tax Board, respectively. However, no federal withholding is required if, prior to Close Of Escrow, Seller Delivers (i) to Buyer and Escrow Holder a fully completed affidavit (C.A.R. Form AS) sufficient to avoid withholding pursuant to federal withholding Law (FIRPTA); OR (ii) to a qualified substitute (usually a title company or an independent escrow company) a fully completed affidavit (C.A.R. Form AS) sufficient to avoid withholding pursuant to federal withholding Law AND the qualified substitute Delivers to Buyer and Escrow Holder an affidavit signed under penalty of perjury (C.A.R. Form QS) that the qualified substitute has received the fully completed Seller's affidavit and the Seller states that no federal withholding is required; OR (iii) to Buyer other documentation satisfying the requirements under Internal Revenue Code § 1445 (FIRPTA). No withholding is required under California Law if, prior to Close Of Escrow, Escrow Holder has received sufficient documentation from Seller that no withholding is required, and Buyer has been informed by Escrow Holder.
I. MEGAN'S LAW DATABASE DISCLOSURE: Notice: Pursuant to § 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Agent are required to check this website. If Buyer wants further information, Agent recommends that Buyer obtain information from this website during Buyer's investigation contingency period. Agents do not have expertise in this area.) J. NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES: This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the Property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Website. (Neither Seller nor Agent are required to check this website. If Buyer wants further information, Agent recommends that Buyer obtain information from this website during Buyer's investigation contingency period. Agents do not have expertise in this area.) K. NATURAL AND ENVIRONMENTAL HAZARDS: Seller shall, within the time specified in paragraph 3N(1), if required by Law:
(i) Deliver to Buyer the earthquake guide and environmental hazards booklet, and for all residential property with 1-4 units and any manufactured or mobile home built before January 1, 1960, fully complete and Deliver the Residential Earthquake Risk Disclosure Statement; and (ii) even if exempt from the obligation to provide a NHD, disclose if the Property is located in a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone; State Fire Responsibility Area; Earthquake Fault Zone; Seismic Hazard Zone; and (iii) disclose any other zone as required by Law and provide any other information required for those zones.
L. CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES:
(1) Seller shall, within the time specified in paragraph 3N(1), disclose to Buyer whether the Property is a condominium or is located in a planned development, other common interest development, or otherwise subject to covenants, conditions, and restrictions (C.A.R. Form SPQ or ESD).
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(2) If the Property is a condominium or is located in a planned development or other common interest development with a HOA, Seller shall, within the time specified in paragraph 3N(3), order from, and pay any required fee as specified in paragraph 3Q(12) for the following items to the HOA (C.A.R. Form HOA-IR): (i) Copies of any documents required by Law (C.A.R. Form HOA-RS); (ii) disclosure of any pending or anticipated claim or litigation by or against the HOA; (iii) a statement containing the location and number of designated parking and storage spaces; (iv) Copies of the most recent 12 months of HOA minutes for regular and special meetings; (v) the names and contact information of all HOAs governing the Property; (vi) pet restrictions; and (vii) smoking restrictions (“CI Disclosures”). Seller shall itemize and Deliver to Buyer all CI Disclosures received from the HOA and any CI Disclosures in Seller's possession. Seller shall, as directed by Escrow Holder, deposit funds into escrow or direct to HOA or management company to pay for any of the above.
M. SOLAR POWER SYSTEMS: For properties with any solar panels or solar power systems, Seller shall, within the time specified in paragraph 3N(1), Deliver to Buyer all known information about the solar panels or solar power system. Seller may use the Solar Advisory and Questionnaire (C.A.R. Form SOLAR).
N. KNOWN MATERIAL FACTS: Seller shall, within the time specified in paragraph 3N(1), DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property, including, but not limited to, known insurance claims within the past five years, or provide Buyer with permission to contact insurer to get such information (C.A.R. Form ARC), and make any and all other disclosures required by Law.
12. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY:
A. Buyer shall, within the time specified in paragraph 3L(3), have the right, at Buyer's expense unless Otherwise Agreed, to conduct inspections, investigations, tests, surveys and other studies (“Buyer Investigations”).
B. Buyer Investigations include, but are not limited to:
(1) Inspections regarding any physical attributes of the Property or items connected to the Property, such as:
(A) A general home inspection.
(B) An inspection for lead-based paint and other lead-based paint hazards. (C) An inspection specifically for wood destroying pests and organisms. Any inspection for wood destroying pests and organisms shall be prepared by a registered Structural Pest Control company; shall cover the main building and attached structures; may cover detached structures; shall NOT include water tests of shower pans on upper level units unless the owners of property below the shower consent; shall NOT include roof coverings; and, if the Property is a unit in a condominium or other common interest subdivision, the inspection shall include only the separate interest and any exclusive-use areas being transferred, and shall NOT include common areas; and shall include a report (“Pest Control Report”) showing the findings of the company which shall be separated into sections for evident infestation or infections (Section 1) and for conditions likely to lead to infestation or infection (Section 2). (D) Any other specific inspections of the physical condition of the land and improvements. (2) Investigation of any other matter affecting the Property, other than those that are specified as separate contingencies.
Buyer Investigations include, but are not limited to, an investigation of the availability and cost of general homeowner's insurance, flood insurance and fire insurance. See, Buyer's Investigation Advisory (C.A.R. Form BIA) for more.
C. Without Seller's prior written consent, Buyer shall neither make nor cause to be made: (i) invasive or destructive Buyer Investigations, except for minimally invasive testing required to prepare a Pest Control Report, which shall not include any holes or drilling through stucco or similar material; or (ii) inspections by any governmental building or zoning inspector or government employee, unless required by Law.
D. Seller shall make the Property available for all Buyer Investigations. Seller is not obligated to move any existing personal property.
Seller shall have water, gas, electricity and all operable pilot lights on for Buyer's Investigations and through the date possession is delivered to Buyer. Buyer shall, (i) by the time specified in paragraph 3L(3), complete Buyer Investigations and satisfy themselves as to the condition of the Property, and either remove the contingency or cancel this Agreement, and (ii) by the time specified in paragraph 3L(3) or 3 Days after receipt of any Investigation report, whichever is later, give Seller at no cost, complete Copies of all such reports obtained by Buyer, which obligation shall survive the termination of this Agreement. This Delivery of Investigation reports shall not include any appraisal, except an appraisal received in connection with an FHA or VA loan.
E. Buyer indemnity and Seller protection for entry upon the Property: Buyer shall: (i) keep the Property free and clear of liens; (ii) repair all damage arising from Buyer Investigations; and (iii) indemnify and hold Seller harmless from all resulting liability, claims, demands, damages and costs. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policies of liability, workers' compensation and other applicable insurance, defending and protecting Seller from liability for any injuries to persons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow. Seller is advised that certain protections may be afforded Seller by recording a “Notice of Non-Responsibility” (C.A.R. Form NNR) for Buyer Investigations and work done on the Property at Buyer's direction. Buyer's obligations under this paragraph shall survive the termination of this Agreement.
13. TITLE AND VESTING:
A. Buyer shall, within the time specified in paragraph 3N(1), be provided a current Preliminary Report by the person responsible for paying for the title report in paragraph 3Q(8). If Buyer is responsible for paying, Buyer shall act diligently and in good faith to obtain such Preliminary Report within the time specified. The Preliminary Report is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. The company providing the Preliminary Report shall, prior to issuing a Preliminary Report, conduct a search of the General Index for all Sellers except banks or other institutional lenders selling properties they acquired through foreclosure (REOs), corporations, and government entities.
B. Title is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and other matters, whether of record or not, as of the date of Acceptance except for: (i) monetary liens of record unless Buyer is assuming those obligations or taking the Property subject to those obligations; and (ii) those matters which Seller has agreed to remove in writing. For any lien or matter not being transferred upon sale, Seller will take necessary action to deliver title free and clear of such lien or matter.
C. Seller shall within 7 Days after request, give Escrow Holder necessary information to clear title.
D. Seller shall, within the time specified in paragraph 3N(1), disclose to Buyer all matters known to Seller affecting title, whether of record or not.
E. If Buyer is a legal entity and the Property purchase price is at least $300,000 and the purchase price is made without a bank loan or similar form of external financing, a Geographic Targeting Order (GTO) issued by the Financial Crimes Enforcement Network, U.S. Department of the Treasury, requires title companies to collect and report certain information about the Buyer, depending on where the Property is located. Buyer agrees to cooperate with the title company's effort to comply with the GTO.
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F. Buyer shall, after Close Of Escrow, receive a recorded grant deed or any other conveyance document required to convey title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buyer's vesting instructions. The recording document shall contain Buyer's post-closing mailing address to enable Buyer's receipt of the recorded conveyance document from the County Recorder. THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL.
G. Buyer shall receive a “ALTA Homeowner's Policy of Title Insurance” or equivalent policy of title insurance, if applicable to the type of property and buyer. Escrow Holder shall request this policy. If a ALTA Homeowner's Policy of Title Insurance is not offered, Buyer shall receive a CLTA Standard Coverage policy unless Buyer has chosen another policy and instructed Escrow Holder in writing of the policy chosen and agreed to pay any increase in cost. Buyer should consult with the Title Company about the availability, and difference in coverage, and cost, if any, between a ALTA Homeowner's Policy and a CLTA Standard Coverage policy and other title policies and endorsements. Buyer should receive notice from the Title Company on its Preliminary (Title) Report of the type of coverage offered. If Buyer is not notified on the Preliminary (Title) Report or is not satisfied with the policy offered, and Buyer nonetheless removes the contingency for Review of the Preliminary Report, Buyer will receive the policy as specified in this paragraph.
14. TIME PERIODS; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: The following time periods may only be extended, altered, modified or changed by mutual written agreement. Any removal of contingencies or cancellation under this paragraph by either Buyer or Seller must be exercised in good faith and in writing (C.A.R. Form CR-B or CC).
A. SELLER DELIVERY OF DOCUMENTS: Seller shall, within the time specified in paragraph 3N(1), Deliver to Buyer all reports, disclosures and information ("Reports") for which Seller is responsible as specified in paragraphs 7A, 9B(6), 10, 11A, 11B, 11C, 11D, 11H, 11K, 11L, 11M, 11N, 13A, 13C, and 28.
B. BUYER REVIEW OF DOCUMENTS; REPAIR REQUEST; CONTINGENCY REMOVAL OR CANCELLATION (1) Buyer has the time specified in paragraph 3 to: (i) perform Buyer Investigations; review all disclosures, Reports, lease documents to be assumed by Buyer pursuant to paragraph 9B(6), and other applicable information, which Buyer receives from Seller; and approve all matters affecting the Property; and (ii) Deliver to Seller Signed Copies of Statutory and Other Disclosures Delivered by Seller in accordance with paragraph 11. (2) Buyer may, within the time specified in paragraph 3L(3), request that Seller make repairs or take any other action regarding the Property (C.A.R. Form RR). Seller has no obligation to agree to or respond to Buyer's requests (C.A.R.
Form RR or RRRR). If Seller does not agree or does not respond, Buyer is not contractually entitled to have the repairs or other requests made and may only cancel based on contingencies in this Agreement. (3) Buyer shall, by the end of the times specified in paragraph 3L (or as Otherwise Agreed), Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement (C.A.R. Form CR-B or CC). However, if any report, disclosure, or information for which Seller is responsible is not Delivered within the time specified in paragraph 3N(1), then Buyer has 5 Days after Delivery of any such items, or the times specified in paragraph 3L, whichever is later, to Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement. If Delivery of any Report occurs after a contractual contingency pertaining to that Report has already been waived or removed, the Delivery of the Report does not revive the contingency but there may be a right to terminate for a subsequent or amended disclosure under paragraph 11G. (4) Continuation of Contingency: Even after the end of the time specified in paragraph 3L and before Seller cancels, if at all, pursuant to paragraph 14C, Buyer retains the right, in writing, to either (i) remove remaining contingencies, or (ii) cancel this Agreement based on a remaining contingency. Once Buyer's written removal of contingency is Delivered to Seller before Seller cancels, Seller may not cancel this Agreement based on that contingency pursuant to paragraph 14C(1).
C. SELLER RIGHT TO CANCEL:
(1) SELLER RIGHT TO CANCEL; BUYER CONTINGENCIES: If, by the time specified in this Agreement, Buyer does not Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement, then Seller, after first Delivering to Buyer a Notice to Buyer to Perform (C.A.R. Form NBP), may cancel this Agreement. In such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer. (2) SELLER RIGHT TO CANCEL; BUYER CONTRACT OBLIGATIONS: Seller, after first Delivering to Buyer a Notice to Buyer to Perform, may cancel this Agreement if, by the time specified in this Agreement, Buyer does not take the following action(s):
(i) Deposit funds as required by paragraph 3D(1) or 3D(2) or if the funds deposited pursuant to paragraph 3D(1) or 3D(2) are not good when deposited; (ii) Deliver updated contact information for Buyer's lender(s) as required by paragraph 5C(3); (iii) Deliver a notice of FHA or VA costs or terms, if any, as specified by paragraph 5C(4) (C.A.R. Form RR); (iv) Deliver verification, or a satisfactory verification if Seller reasonably disapproves of the verification already provided, as required by paragraph 5B or 6A; (v) Deliver a letter as required by paragraph 6B; (vi) In writing assume or accept leases or liens specified in paragraph 8G; (vii) Return Statutory and Other Disclosures as required by paragraph 11F; (viii) Cooperate with the title company's effort to comply with the GTO as required by paragraph 13E; (ix) Sign or initial a separate liquidated damages form for an increased deposit as required by paragraphs 5A(2) and 29; (x) Provide evidence of authority to Sign in a representative capacity as specified in paragraph 28; or (xi) Perform any additional Buyer contractual obligation(s) included in this Agreement. In such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer and other expenses already paid by Escrow Holder pursuant to this Agreement prior to Seller's cancellation. (3) SELLER RIGHT TO CANCEL; SELLER CONTINGENCIES: Seller may cancel this Agreement by good faith exercise of any Seller contingency included in this Agreement, or Otherwise Agreed, so long as that contingency has not already been removed or waived in writing.
D. BUYER RIGHT TO CANCEL:
(1) BUYER RIGHT TO CANCEL; SELLER CONTINGENCIES: If, by the time specified in this Agreement, Seller does not Deliver to Buyer a removal of the applicable contingency or cancellation of this Agreement, then Buyer, after first Delivering to Seller a Notice to Seller to Perform (C.A.R. Form NSP), may cancel this Agreement. In such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer and other expenses already paid by Escrow Holder pursuant to this Agreement prior to Buyer's cancellation. (2) BUYER RIGHT TO CANCEL; SELLER CONTRACT OBLIGATIONS: If, by the time specified, Seller has not Delivered any item specified in paragraph 3N(1) or Seller has not performed any Seller contractual obligation included in this Agreement by the time specified, Buyer, after first Delivering to Seller a Notice to Seller to Perform, may cancel this Agreement. (3) BUYER RIGHT TO CANCEL; BUYER CONTINGENCIES: Buyer may cancel this Agreement by good faith exercise of any Buyer contingency included in paragraph 8, or Otherwise Agreed, so long as that contingency has not already been removed in writing.
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E. NOTICE TO BUYER OR SELLER TO PERFORM: The Notice to Buyer to Perform or Notice to Seller to Perform shall: (i) be in writing; (ii) be Signed by the applicable Buyer or Seller; and (iii) give the other Party at least 2 Days after Delivery (or until the time specified in the applicable paragraph, whichever occurs last) to take the applicable action. A Notice to Buyer to Perform or Notice to Seller to Perform may not be Delivered any earlier than 2 Days prior to the Scheduled Performance Day to remove a contingency or cancel this Agreement or meet an obligation specified in paragraph 14, whether or not the Scheduled Performance Day falls on a Saturday, Sunday or legal holiday. If a Notice to Buyer to Perform or Notice to Seller to Perform is incorrectly Delivered or specifies a time less than the agreed time, the notice shall be deemed invalid and void, and Seller or Buyer shall be required to Deliver a new Notice to Buyer to Perform or Notice to Seller to Perform with the specified timeframe.
F. EFFECT OF REMOVAL OF CONTINGENCIES:
(1) REMOVAL OF BUYER CONTINGENCIES: If Buyer removes any contingency or cancellation rights, unless Otherwise Agreed, Buyer shall conclusively be deemed to have: (i) completed all Buyer Investigations, and review of Reports and other applicable information and disclosures pertaining to that contingency or cancellation right; (ii) elected to proceed with the transaction; and (iii) assumed all liability, responsibility and expense for the non-delivery of any Reports, disclosures or information outside of Seller's control and for any Repairs or corrections pertaining to that contingency or cancellation right, or for the inability to obtain financing. (2) REMOVAL OF SELLER CONTINGENCIES: If Seller removes any contingency or cancellation rights, unless Otherwise Agreed, Seller shall conclusively be deemed to have: (i) satisfied themselves regarding such contingency, (ii) elected to proceed with the transaction; and (iii) given up any right to cancel this Agreement based on such contingency.
G. DEMAND TO CLOSE ESCROW: Before Buyer or Seller may cancel this Agreement for failure of the other Party to close escrow pursuant to this Agreement, Buyer or Seller must first Deliver to the other Party a Demand to Close Escrow (C.A.R.
Form DCE). The DCE shall: (i) be Signed by the applicable Buyer or Seller; and (ii) give the other Party at least 3 Days after Delivery to close escrow. A DCE may not be Delivered any earlier than 3 Days prior to the Scheduled Performance Day for the Close Of Escrow. If a DCE is incorrectly Delivered or specifies a time less than the above timeframe, the DCE shall be deemed invalid and void, and Seller or Buyer shall be required to Deliver a new DCE.
H. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written notice of cancellation pursuant to rights duly exercised under the terms of this Agreement, the Parties agree to Sign and Deliver mutual instructions to cancel the sale and escrow and release deposits, if any, to the Party entitled to the funds, less (i) fees and costs paid by Escrow Holder on behalf of that Party, if required by this Agreement; and (ii) any escrow fee charged to that party. Fees and costs may be payable to service providers and vendors for services and products provided during escrow. A release of funds will require mutual Signed release instructions from the Parties, judicial decision or arbitration award. A Party may be subject to a civil penalty of up to $1,000 for refusal to Sign cancellation instructions if no good faith dispute exists as to which Party is entitled to the deposited funds (Civil Code § 1057.3). Note: Neither Agents nor Escrow Holder are qualified to provide any opinion on whether either Party has acted in good faith or which Party is entitled to the deposited funds. Buyer and Seller are advised to seek the advice of a qualified California real estate attorney regarding this matter.
15. REPAIRS: Repairs shall be completed prior to final verification of condition unless Otherwise Agreed. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that the work complies with applicable Law, including governmental permit, inspection and approval requirements. Repairs shall be performed in a good, skillful manner with materials of quality and appearance comparable to existing materials. Buyer acknowledges that exact restoration of appearance or cosmetic items following all Repairs may not be possible. Seller shall: (i) obtain invoices and paid receipts for Repairs performed by others; (ii) prepare a written statement indicating the Repairs performed by Seller and the date of such Repairs; and (iii) provide Copies of invoices and paid receipts and statements to Buyer prior to final verification of condition.
16. FINAL VERIFICATION OF CONDITION: Buyer shall have the right to make a final verification of the Property condition within the time specified in paragraph 3J, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (i) the Property is maintained pursuant to paragraph 7B; (ii) Repairs have been completed as agreed; and (iii) Seller has complied with Seller's other obligations under this Agreement (C.A.R. Form VP).
17. PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless Otherwise Agreed, the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow: real property taxes and assessments, interest, Seller rental payments to third parties, HOA regular assessments due prior to Close Of Escrow, premiums on insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello-Roos and other Special Assessment District bonds and assessments that are now a lien. Seller shall pay any HOA special or emergency assessments due prior to Close Of Escrow. The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment District bonds and assessments and HOA special or emergency assessments that are due after Close Of Escrow. Property will be reassessed upon change of ownership. Any supplemental tax bills delivered to Escrow Holder prior to closing shall be prorated and paid as follows: (i) for periods after Close Of Escrow, by Buyer; and (ii) for periods prior to Close Of Escrow, by Seller (see C.A.R. Form SPT or SBSA for further information). Seller agrees all service fees, maintenance costs and utility bills will be paid current up and through the date of Close Of Escrow. TAX BILLS AND UTILITY BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. Prorations shall be made based on a 30-day month.
18. BROKERS AND AGENTS:
A. COMPENSATION: Seller or Buyer, or both, as applicable, agree to pay compensation to Broker as specified in a separate written agreement between Broker and that Seller or Buyer. Compensation is payable upon Close Of Escrow, or if escrow does not close, as otherwise specified in the agreement between Broker and that Seller or Buyer. If Seller agrees to pay Buyer's Broker (see paragraph 3G(3)), Seller shall be entitled to a copy of the written portion of the compensation agreement between Buyer and Buyer's Broker identifying the compensation to be paid. See C.A.R. Form SPBB for further information.
B. SCOPE OF DUTY: Buyer and Seller acknowledge and agree that Agent: (i) Does not decide what price Buyer should pay or Seller should accept; (ii) Does not guarantee the condition of the Property; (iii) Does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others; (iv) Does not have an obligation to conduct an inspection of common areas or areas off the site of the Property; (v) Shall not be responsible for identifying defects on the Property, in common areas, or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Agent; (vi) Shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vii) Shall not be responsible for identifying the location of boundary lines or other items affecting title; (viii) Shall not be responsible for verifying square footage, representations of others or information contained in Investigation reports, Multiple Listing Service, advertisements, flyers or other promotional material; (ix) Shall not be responsible for determining the fair market value of the Property or any personal property included in the sale; (x) Shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller; and (xi) Shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity.
Buyer and Seller agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals.
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Property Address: Date:
19. JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER:
A. The following paragraphs, or applicable portions thereof, of this Agreement constitute the joint escrow instructions of Buyer and Seller to Escrow Holder, which Escrow Holder is to use along with any related counter offers and addenda, and any additional mutual instructions to close the escrow: paragraphs 1, 3A, 3B, 3D-G, 3N(2), 3Q, 3R, 4A, 4B, 5A(1-2) 5D, 5E, 10B(2)(A), 10B(3), 10C, 11H, 11L(2), 13 (except 13D), 14H, 17, 18A, 19, 23, 25, 27, 28, 32, 33, and paragraph 3 of the Real Estate Brokers Section. If a Copy of the separate compensation agreement(s) provided for in paragraph 18A or paragraph 3 of the Real Estate Brokers Section is deposited with Escrow Holder by Agent, Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Seller's funds, or both, as applicable, the Broker's compensation provided for in such agreement(s).
The terms and conditions of this Agreement not set forth in the specified paragraphs are additional matters for the information of Escrow Holder, but about which Escrow Holder need not be concerned.
B. Buyer and Seller will receive Escrow Holder's general provisions, if any, directly from Escrow Holder. To the extent the general provisions are inconsistent or conflict with this Agreement, the general provisions will control as to the duties and obligations of Escrow Holder only. Buyer and Seller shall Sign and return Escrow Holder's general provisions or supplemental instructions within the time specified in paragraph 3N(2). Buyer and Seller shall execute additional instructions, documents and forms provided by Escrow Holder that are reasonably necessary to close the escrow and, as directed by Escrow Holder, within 3 Days, shall pay to Escrow Holder or HOA or HOA management company or others any fee required by paragraphs 3, 8, 10, 11, or elsewhere in this Agreement.
C. A Copy of this Agreement including any counter offer(s) and addenda shall be delivered to Escrow Holder within 3 Days after Acceptance. Buyer and Seller authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as originals, to open escrow and for other purposes of escrow. The validity of this Agreement as between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. Escrow Holder shall provide Seller's Statement of Information to Title Company when received from Seller, if a separate company is providing title insurance. If Seller delivers an affidavit to Escrow Holder to satisfy Seller's FIRPTA obligation under paragraph 11H, Escrow Holder shall deliver to Buyer, Buyer's Agent, and Seller's Agent a Qualified Substitute statement that complies with federal Law. If Escrow Holder's Qualified Substitute statement does not comply with federal law, the Parties instruct escrow to withhold all applicable required amounts under paragraph 11H.
D. Agents are not a party to the escrow, except for Brokers for the sole purpose of compensation pursuant to paragraph 18A and paragraph 3 of the Real Estate Brokers Section. If a Copy of the separate compensation agreement(s) provided for in either of those paragraphs is deposited with Escrow Holder by Agent, Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Seller's funds, or both, as applicable, the Broker's compensation provided for in such agreement(s).Buyer and Seller irrevocably assign to Brokers compensation specified in paragraph 18A, and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement. Compensation instructions can be amended or revoked only with the written consent of Brokers. Buyer and Seller shall release and hold harmless Escrow Holder from any liability resulting from Escrow Holder's payment to Broker(s) of compensation pursuant to this Agreement.
E. Buyer and Seller acknowledge that Escrow Holder may require invoices for expenses under this Agreement. Buyer and Seller, upon request by Escrow Holder, within 3 Days or within a sufficient time to close escrow, whichever is sooner, shall provide any such invoices to Escrow Holder.
F. Upon receipt, Escrow Holder shall provide Buyer, Seller, and each Agent verification of Buyer's deposit of funds pursuant to paragraphs 5A(1) and 5A(2). Once Escrow Holder becomes aware of any of the following, Escrow Holder shall immediately notify each Agent: (i) if Buyer's initial or any additional deposit or down payment is not made pursuant to this Agreement, or is not good at time of deposit with Escrow Holder; or (ii) if Buyer and Seller instruct Escrow Holder to cancel escrow.
G. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall be delivered to Escrow Holder within 3 Days after mutual execution of the amendment.
20. SELECTION OF SERVICE PROVIDERS: Agents do not guarantee the performance of any vendors, service or product providers (“Providers”), whether referred by Agent or selected by Buyer, Seller or other person. Buyer and Seller may select ANY Providers of their own choosing.
21. MULTIPLE LISTING SERVICE (“MLS”): Agents are authorized to report to the MLS that an offer has been accepted and, upon Close Of Escrow, the sales price and other terms of this transaction shall be provided to the MLS to be published and disseminated to persons and entities authorized to use the information on terms approved by the MLS. Buyer acknowledges that: (i) any pictures, videos, floor plans (collectively, “Images”) or other information about the Property that has been or will be inputted into the MLS or internet portals, or both, at the instruction of Seller or in compliance with MLS rules, will not be removed after Close Of Escrow; (ii) California Civil Code § 1088(c) requires the MLS to maintain such Images and information for at least three years and as a result they may be displayed or circulated on the Internet, which cannot be controlled or removed by Seller or Agents; and (iii) Seller, Seller's Agent, Buyer's Agent, and MLS have no obligation or ability to remove such Images or information from the Internet.
22. ATTORNEY FEES AND COSTS: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorney fees and costs from the non-prevailing Buyer or Seller, except as provided in paragraph 30A.
23. ASSIGNMENT/NOMINATION: Buyer shall have the right to assign all of Buyer's interest in this Agreement to Buyer's own trust or to any wholly owned entity of Buyer that is in existence at the time of such assignment. Otherwise, Buyer shall not assign all or any part of Buyer's interest in this Agreement without first having obtained the separate written consent of Seller to a specified assignee. Such consent shall not be unreasonably withheld. Prior to any assignment, Buyer shall disclose to Seller the name of the assignee and the amount of any monetary consideration between Buyer and assignee. Buyer shall provide assignee with all documents related to this Agreement including, but not limited to, the Agreement and any disclosures. If assignee is a wholly owned entity or trust of Buyer, that assignee does not need to re-sign or initial all documents provided. Whether or not an assignment requires seller's consent, at the time of assignment, assignee shall deliver a letter from assignee's lender that assignee is prequalified or preapproved as specified in paragraph 6B. Should assignee fail to deliver such a letter, Seller, after first giving Assignee an Notice to Buyer to Perform, shall have the right to terminate the assignment. Buyer shall, within the time specified in paragraph 3K, Deliver any request to assign this Agreement for Seller's consent. If Buyer fails to provide the required information within this time frame, Seller's withholding of consent shall be deemed reasonable. Any total or partial assignment shall not relieve Buyer of Buyer's obligations pursuant to this Agreement unless Otherwise Agreed by Seller (C.A.R. Form AOAA). Parties shall provide any assignment agreement to Escrow Holder within 1 Day after the assignment. Any nomination by Buyer shall be subject to the same procedures, requirements, and terms as an assignment as specified in this paragraph.
24. EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance with federal, state and local anti-discrimination Laws.
RPA REVISED 12/22 (PAGE 12 OF 16) Buyer's Initials / Seller's Initials / CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (RPA PAGE 12 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com 4197 Ironwood Avenue S, Seal Beach, CA 90740 February 1, 2024 4197 Ironwood
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
Property Address: Date:
25. DEFINITIONS and INSTRUCTIONS: The following words are defined terms in this Agreement, shall be indicated by initial capital letters throughout this Agreement, and have the following meaning whenever used:
A. “Acceptance” means the time the offer or final counter offer is fully executed, in writing, by the recipient Party and is Delivered to the offering Party or that Party's Authorized Agent.
B. “Agent” means the Broker, salesperson, broker-associate or any other real estate licensee licensed under the brokerage firm identified in paragraph 2B.
C. “Agreement” means this document and any counter offers and any incorporated addenda or amendments, collectively forming the binding agreement between the Parties. Addenda and amendments are incorporated only when Signed and Delivered by all Parties.
D. “As-Is” condition: Seller shall disclose known material facts and defects as specified in this Agreement. Buyer has the right to inspect the Property and, within the time specified, request that Seller make repairs or take other corrective action, or exercise any contingency cancellation rights in this Agreement. Seller is only required to make repairs specified in this Agreement or as Otherwise Agreed.
E. “Authorized Agent” means an individual real estate licensee specified in the Real Estate Broker Section.
F. “C.A.R. Form” means the most current version of the specific form referenced or another comparable form agreed to by the Parties.
G. “Close Of Escrow”, including “COE”, means the date the grant deed, or other evidence of transfer of title, is recorded for any real property, or the date of Delivery of a document evidencing the transfer of title for any non-real property transaction.
H. “Copy” means copy by any means including photocopy, facsimile and electronic.
I. Counting Days is done as follows unless Otherwise Agreed: (1) The first Day after an event is the first full calendar date following the event, and ending at 11:59 pm. For example, if a Notice to Buyer to Perform (C.A.R. form NBP) is Delivered at 3 pm on the 7th calendar day of the month, or Acceptance of a counter offer is personally received at 12 noon on the 7th calendar day of the month, then the 7th is Day “0” for purposes of counting days to respond to the NBP or calculating the Close Of Escrow date or contingency removal dates and the 8th of the month is Day 1 for those same purposes. (2) All calendar days are counted in establishing the first Day after an event. (3) All calendar days are counted in determining the date upon which performance must be completed, ending at 11:59 pm on the last day for performance (“Scheduled Performance Day”). (4) After Acceptance, if the Scheduled Performance Day for any act required by this Agreement, including Close Of Escrow, lands on a Saturday, Sunday, or Legal Holiday, the performing party shall be allowed to perform on the next day that is not a Saturday, Sunday or Legal Holiday (“Allowable Performance Day”), and ending at 11:59 pm. “Legal Holiday” shall mean any holiday or optional bank holiday under Civil Code §§ 7 and 7.1, any holiday under Government Code § 6700. (5) For the purposes of COE, any day that the Recorder's office in the County where the Property is located is closed or any day that the lender or Escrow Holder under this Agreement is closed, the COE shall occur on the next day the Recorder's office in that County, the lender, and the Escrow Holder is open. (6) COE is considered Day 0 for purposes of counting days Seller is allowed to remain in possession, if permitted by this Agreement.
J. “Day" or "Days” means calendar day or days. However, delivery of deposit to escrow is based on business days.
K. “Deliver”, “Delivered” or “Delivery” of documents, unless Otherwise Agreed, means and shall be effective upon personal receipt of the document by Buyer or Seller or their Authorized Agent. Personal receipt means (i) a Copy of the document, or as applicable, link to the document, is in the possession of the Party or Authorized Agent, regardless of the Delivery method used (i.e. e-mail, text, other), or (ii) an Electronic Copy of the document, or as applicable, link to the document, has been sent to any of the designated electronic delivery addresses specified in the Real Estate Broker Section on page 16. After Acceptance, Agent may change the designated electronic delivery address for that Agent by, in writing, Delivering notice of the change in designated electronic delivery address to the other Party. Links could be, for example, to DropBox or GoogleDrive or other functionally equivalent program. If the recipient of a link is unable or unwilling to open the link or download the documents or otherwise prefers Delivery of the documents directly, Recipient of a link shall notify the sender in writing, within 3 Days after Delivery of the link (C.A.R. Form RFR). In such case, Delivery shall be effective upon Delivery of the documents and not the link. Failure to notify sender within the time specified above shall be deemed consent to receive, and Buyer opening, the document by link.
L. “Electronic Copy” or “Electronic Signature” means, as applicable, an electronic copy or signature complying with California Law. Unless Otherwise Agreed, Buyer and Seller agree to the use of Electronic Signatures. Buyer and Seller agree that electronic means will not be used by either Party to modify or alter the content or integrity of this Agreement without the knowledge and consent of the other Party.
M. “Law” means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state or federal legislative, judicial or executive body or agency.
N. "Legally Authorized Signer" means an individual who has authority to Sign for the principal as specified in paragraph 32 or paragraph 33.
O. “Otherwise Agreed” means an agreement in writing, signed by both Parties and Delivered to each.
P. “Repairs” means any repairs (including pest control), alterations, replacements, modifications or retrofitting of the Property provided for under this Agreement.
Q. "Sign" or “Signed” means either a handwritten or Electronic Signature on an original document, Copy or any counterpart.
26. TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the terms and conditions herein. The individual Liquidated Damages and Arbitration of Disputes paragraphs are incorporated in this Agreement if initialed by all Parties or if incorporated by mutual agreement in a Counter Offer or addendum. If at least one but not all Parties initial, a Counter Offer is required until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of Acceptance and to market the Property for backup offers after Acceptance. The Parties have read and acknowledge receipt of a Copy of the offer and agree to the confirmation of agency relationships. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy, may be Signed in two or more counterparts, all of which shall constitute one and the same writing. By signing this offer or any document in the transaction, the Party Signing the document is deemed to have read the document in its entirety.
27. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the essence. All understandings between the Parties are incorporated in this Agreement. Its terms are intended by the Parties as a final, complete and exclusive expression of their Agreement with respect to its subject matter and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Except as Otherwise Agreed, this Agreement shall be interpreted, and disputes shall be resolved in accordance with the Laws of the State of California. Neither this Agreement nor any provision in it may be extended, amended, modified, altered or changed, except in writing Signed by Buyer and Seller.
RPA REVISED 12/22 (PAGE 13 OF 16) Buyer's Initials / Seller's Initials / CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (RPA PAGE 13 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com 4197 Ironwood Avenue S, Seal Beach, CA 90740 February 1, 2024 4197 Ironwood
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
Property Address: Date:
28. LEGALLY AUTHORIZED SIGNER: Wherever the signature or initials of the Legally Authorized Signer identified in paragraph 32 or 33 appear on this Agreement or any related documents, it shall be deemed to be in a representative capacity for the entity described and not in an individual capacity, unless otherwise indicated. The Legally Authorized Signer (i) represents that the entity for which that person is acting already exists and is in good standing to do business in California and (ii) shall Deliver to the other Party and Escrow Holder, within the time specified in paragraph 3N(5), evidence of authority to act in that capacity (such as but not limited to: applicable portion of the trust or Certification Of Trust (Probate Code § 18100.5), letters testamentary, court order, power of attorney, corporate resolution, or formation documents of the business entity).
29. LIQUIDATED DAMAGES (By initialing in the space below, you are agreeing to Liquidated Damages):
If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, as liquidated damages, the deposit actually paid. If the Property is a dwelling with no more than four units, one of which Buyer intends to occupy, then the amount retained shall be no more than 3% of the purchase price. Any excess shall be returned to Buyer. Release of funds will require mutual, Signed release instructions from both Buyer and Seller, judicial decision or arbitration award. AT THE TIME OF ANY INCREASED DEPOSIT BUYER AND
SELLER SHALL SIGN A SEPARATE LIQUIDATED DAMAGES PROVISION INCORPORATING THE INCREASED DEPOSIT AS LIQUIDATED DAMAGES (C.A.R. FORM DID).
Buyer's Initials / Seller's Initials /
30. MEDIATION:
A. The Parties agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration or court action. The mediation shall be conducted through the C.A.R. Real Estate Mediation Center for Consumers (www.consumermediation.org) or through any other mediation provider or service mutually agreed to by the Parties.
The Parties also agree to mediate any disputes or claims with Agents(s), who, in writing, agree to such mediation prior to, or within a reasonable time after, the dispute or claim is presented to the Agent. Mediation fees, if any, shall be divided equally among the Parties involved, and shall be recoverable under the prevailing party attorney fees clause. If, for any dispute or claim to which this paragraph applies, any Party (i) commences an action without first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediate after a request has been made, then that Party shall not be entitled to recover attorney fees, even if they would otherwise be available to that Party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED.
B. ADDITIONAL MEDIATION TERMS: (i) Exclusions from this mediation agreement are specified in paragraph 31B; (ii) The obligation to mediate does not preclude the right of either Party to seek a preservation of rights under paragraph 31C; and (iii) Agent's rights and obligations are further specified in paragraph 31D. These terms apply even if the Arbitration of Disputes paragraph is not initialed.
31. ARBITRATION OF DISPUTES:
A. The Parties agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The Parties also agree to arbitrate any disputes or claims with Agents(s), who, in writing, agree to such arbitration prior to, or within a reasonable time after, the dispute or claim is presented to the Agent. The arbitration shall be conducted through any arbitration provider or service mutually agreed to by the Parties. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of residential real estate Law experience, unless the Parties mutually agree to a different arbitrator. Enforcement of, and any motion to compel arbitration pursuant to, this agreement to arbitrate shall be governed by the procedural rules of the Federal Arbitration Act, and not the California Arbitration Act, notwithstanding any language seemingly to the contrary in this Agreement. The Parties shall have the right to discovery in accordance with Code of Civil Procedure § 1283.05. The arbitration shall be conducted in accordance with Title 9 of Part 3 of the Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered into any court having jurisdiction.
B. EXCLUSIONS: The following matters are excluded from mediation and arbitration: (i) Any matter that is within the jurisdiction of a probate, small claims or bankruptcy court; (ii) an unlawful detainer action; and (iii) a judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contract as defined in Civil Code § 2985.
C. PRESERVATION OF ACTIONS: The following shall not constitute a waiver nor violation of the mediation and arbitration provisions: (i) the filing of a court action to preserve a statute of limitations; (ii) the filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, provided the filing party concurrent with, or immediately after such filing makes a request to the court for a stay of litigation pending any applicable mediation or arbitration proceeding; or (iii) the filing of a mechanic's lien.
D. AGENTS: Agents shall not be obligated nor compelled to mediate or arbitrate unless they agree to do so in writing.
Any Agents(s) participating in mediation or arbitration shall not be deemed a party to this Agreement.
E. “NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING
OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY
NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING
IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL,
UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU
MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.” “WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING
OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION.”
Buyer's Initials / Seller's Initials /
RPA REVISED 12/22 (PAGE 14 OF 16) Buyer's Initials / Seller's Initials / CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (RPA PAGE 14 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com 4197 Ironwood Avenue S, Seal Beach, CA 90740 February 1, 2024 4197 Ironwood
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
Property Address: Date:
32. BUYER'S OFFER
A. EXPIRATION OF OFFER: This offer shall be deemed revoked and the deposit, if any, shall be returned to Buyer unless by the date and time specified in paragraph 3C, the offer is Signed by Seller and a Copy of the Signed offer is Delivered to Buyer or Buyer's Authorized Agent. Seller has no obligation to respond to an offer made.
B. ENTITY BUYERS: (Note: If this paragraph is completed, a Representative Capacity Signature Disclosure (C.A.R.
Form RCSD) is not required for the Legally Authorized Signers designated below.) (1) One or more Buyers is a trust, corporation, LLC, probate estate, partnership, holding a power of attorney or other entity. (2) This Agreement is being Signed by a Legally Authorized Signer in a representative capacity and not in an individual capacity. See paragraph 28 for additional terms.
(3) The name(s) of the Legally Authorized Signer(s) is/are: , . (4) If a trust, identify Buyer as trustee(s) of the trust or by simplified trust name (ex. John Doe, co-trustee, Jane Doe, co-trustee or Doe Revocable Family Trust).
(5) If the entity is a trust or under probate, the following is the full name of the trust or probate case, including case #:
.
C. The RPA has 16 pages. Buyer acknowledges receipt of, and has read and understands, every page and all attachments that make up the Agreement.
D. BUYER SIGNATURE(S):
(Signature) By, Date:
Printed name of BUYER:
Printed Name of Legally Authorized Signer: Title, if applicable, (Signature) By, Date:
Printed name of BUYER:
Printed Name of Legally Authorized Signer: Title, if applicable, IF MORE THAN TWO SIGNERS, USE Additional Signature Addendum (C.A.R. Form ASA).
33. ACCEPTANCE
A. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of the Property or has the authority to execute this Agreement. Seller accepts the above offer and agrees to sell the Property on the above terms and conditions. Seller has read and acknowledges receipt of a Copy of this Agreement and authorizes Agent to Deliver a Signed Copy to Buyer.
Seller's acceptance is subject to the attached Counter Offer or Back-Up Offer Addendum, or both, checked below.
Seller shall return and include the entire agreement with any response.
Seller Counter Offer (C.A.R. Form SCO or SMCO)
Back-Up Offer Addendum (C.A.R. Form BUO)
B. Entity Sellers: (Note: If this paragraph is completed, a Representative Capacity Signature Disclosure form (C.A.R.
Form RCSD) is not required for the Legally Authorized Signers designated below.) (1) One or more Sellers is a trust, corporation, LLC, probate estate, partnership, holding a power of attorney or other entity. (2) This Agreement is being Signed by a Legally Authorized Signer in a representative capacity and not in an individual capacity. See paragraph 28 for additional terms.
(3) The name(s) of the Legally Authorized Signer(s) is/are: , . (4) If a trust, identify Seller as trustee(s) of the trust or by simplified trust name (ex. John Doe, co-trustee, Jane Doe, co-trustee or Doe Revocable Family Trust).
(5) If the entity is a trust or under probate, the following is the full name of the trust or probate case, including case #:
.
C. The RPA has 16 pages. Seller acknowledges receipt of, and has read and understands, every page and all attachments that make up the Agreement.
D. SELLER SIGNATURE(S):
(Signature) By, Date:
Printed name of SELLER:
Printed Name of Legally Authorized Signer: Title, if applicable, (Signature) By, Date:
Printed name of SELLER:
Printed Name of Legally Authorized Signer: Title, if applicable, IF MORE THAN TWO SIGNERS, USE Additional Signature Addendum (C.A.R. Form ASA).
OFFER NOT ACCEPTED: / No Counter Offer is being made. This offer was not accepted by Seller (date) Seller's Initials
RPA REVISED 12/22 (PAGE 15 OF 16)
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (RPA PAGE 15 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com 4197 Ironwood Avenue S, Seal Beach, CA 90740 February 1, 2024 Coastal Capital Homes LLC
Owner of Record
4197 Ironwood
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
Property Address: Date:
REAL ESTATE BROKERS SECTION:
1. Real Estate Agents are not parties to the Agreement between Buyer and Seller.
2. Agency relationships are confirmed as stated in paragraph 2.
3. Cooperating Broker Compensation: Seller's Broker agrees to pay Buyer's Broker and Buyer's Broker agrees to accept, out of Seller's Broker's proceeds in escrow, the amount specified in the MLS, provided Buyer's Broker is a Participant of the MLS in which the Property is offered for sale or a reciprocal MLS. If Seller's Broker and Buyer's Broker are not both Participants of the MLS, or a reciprocal MLS, in which the Property is offered for sale, then compensation must be specified in a separate written agreement (C.A.R. Form CBC). Declaration of License and Tax (C.A.R. Form DLT) may be used to document that tax reporting will be required or that an exemption exists.
4. Presentation of Offer: Pursuant to the National Association of REALTORS® Standard of Practice 1-7, if Buyer's Agent makes a written request, Seller's Agent shall confirm in writing that this offer has been presented to Seller.
5. Agents' Signatures and designated electronic delivery address:
A. Buyer's Brokerage Firm Lic. #
By Lic. # Date
By Lic. # Date
Address City State Zip
Email Phone #
More than one agent from the same firm represents Buyer. Additional Agent Acknowledgement (C.A.R. Form AAA) attached.
More than one brokerage firm represents Buyer. Additional Broker Acknowledgement (C.A.R. Form ABA) attached.
Designated Electronic Delivery Address(es) (Check all that apply):
Email above; Text to Phone # above; Alternate:
B. Seller's Brokerage Firm Lic. #
By Lic. # Date
By Lic. # Date
Address City State Zip
Email Phone #
More than one agent from the same firm represents Seller. Additional Agent Acknowledgement (C.A.R. Form AAA) attached.
More than one brokerage firm represents Seller. Additional Broker Acknowledgement (C.A.R. Form ABA) attached.
Designated Electronic Delivery Address(es) (To be filled out by Seller's Agent) (Check all that apply):
Email above; Text to Phone # above; Alternate: ____________________________________________________ ESCROW HOLDER ACKNOWLEDGMENT:
Escrow Holder acknowledges receipt of a Copy of this Agreement, (if checked, a deposit in the amount of $ ), Counter Offer numbers and , and agrees to act as Escrow Holder subject to paragraph 19 of this Agreement, any supplemental escrow instructions and the terms of Escrow Holder's general provisions.
Escrow Holder is advised by that the date of Acceptance of the Agreement is Escrow Holder Escrow #
By Date
Address
Phone/Fax/E-mail
Escrow Holder has the following license number #
Department of Financial Protection and Innovation, Department of Insurance, Department of Real Estate.
PRESENTATION OF OFFER: / Seller's Brokerage Firm presented this offer to Seller on (date).
Agent or Seller Initials
Buyer's Initials / Seller's Initials /
© 2022, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020
RPA REVISED 12/22 (PAGE 16 OF 16)
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (RPA PAGE 16 OF 16) Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com 4197 Ironwood Avenue S, Seal Beach, CA 90740 February 1, 2024 Fair Trade Real Estate 02190978
Mersad Hatami 02145333
18881 Von Karman Suit 225 Irvine CA 92612
[email protected]
Westridge Commercial Inc. 01353256
Mohammed Baghdadi 01198843
23101 Moulton Pky, Suite 210 Laguna Hills CA 92653
[email protected]
96DBO-112022
4197 Ironwood
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
BUYER'S INVESTIGATION ADVISORY
(C.A.R. Form BIA, Revised 12/21)
Property Address
1. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and improvements being purchased is not guaranteed by either Seller or Brokers. You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts that you know or that are within your diligent attention and observation. A general physical inspection typically does not cover all aspects of the Property nor items affecting the Property that are not physically located on the Property. If the professionals recommend further investigations, including a recommendation by a pest control operator to inspect inaccessible areas of the Property, you should contact qualified experts to conduct such additional investigations.
2. BROKER OBLIGATIONS: Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as those listed below. If Broker gives you referrals to professionals, Broker does not guarantee their performance.
3. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO THE FOLLOWING. IF YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF BROKERS.
A. GENERAL CONDITION OF THE PROPERTY, ITS SYSTEMS AND COMPONENTS: Foundation, roof (condition, age, leaks, useful life), plumbing, heating, air conditioning, electrical, mechanical, security, pool/spa (cracks, leaks, operation), other structural and non-structural systems and components, fixtures, built-in appliances, any personal property included in the sale, and energy efficiency of the Property.
B. SQUARE FOOTAGE, AGE, BOUNDARIES: Square footage, room dimensions, lot size, age of improvements and boundaries. Any numerical statements regarding these items are APPROXIMATIONS ONLY and have not been verified by Seller and cannot be verified by Brokers. Fences, hedges, walls, retaining walls and other barriers or markers do not necessarily identify true Property boundaries.
C. WOOD DESTROYING PESTS: Presence of, or conditions likely to lead to the presence of wood destroying pests and organisms.
D. SOIL STABILITY: Existence of fill or compacted soil, expansive or contracting soil, susceptibility to slippage, settling or movement, and the adequacy of drainage.
E. WATER AND UTILITIES; WELL SYSTEMS AND COMPONENTS; WASTE DISPOSAL: Water and utility availability, use restrictions and costs. Water quality, adequacy, condition, and performance of well systems and components. The type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to sewer, and applicable fees.
F. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, leadbased paint and other lead contamination, radon, methane, other gases, fuel oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, materials, products, or conditions (including mold (airborne, toxic or otherwise), fungus or similar contaminants).
G. EARTHQUAKES AND FLOODING: Susceptibility of the Property to earthquake/seismic hazards and propensity of the Property to flood.
H. FIRE, HAZARD, AND OTHER INSURANCE: The availability and cost of necessary or desired insurance may vary.
The location of the Property in a seismic, flood or fire hazard zone, and other conditions, such as the age of the Property and the claims history of the Property and Buyer, may affect the availability and need for certain types of insurance. Buyer should explore insurance options early as this information may affect other decisions, including the removal of loan and inspection contingencies.
I. BUILDING PERMITS, ZONING, GOVERNMENTAL REQUIREMENTS, AND ADDRESS: Permits, inspections, certificates, zoning, other governmental limitations, restrictions, and requirements affecting the current or future use of the Property, its development or size. Postal/mailing address and zip code may not accurately reflect the city which has jurisdiction over the property.
J. RENTAL PROPERTY RESTRICTIONS: The State, some counties, and some cities impose restrictions that limit the amount of rent that can be charged, the maximum number of occupants, and the right of a landlord to terminate a tenancy. Deadbolt or other locks and security systems for doors and windows, including window bars, should be examined to determine whether they satisfy legal requirements.
K. SECURITY AND SAFETY: State and local Law may require the installation of barriers, access alarms, selflatching mechanisms and/or other measures to decrease the risk to children and other persons of existing swimming pools and hot tubs, as well as various fire safety and other measures concerning other features of the Property.
© 2021, California Association of REALTORS®, Inc.
BIA REVISED 12/21 (PAGE 1 OF 2)
BUYER'S INVESTIGATION ADVISORY (BIA PAGE 1 OF 2)
Phone: Fax:
Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com 4197 Ironwood Avenue S, Seal Beach, CA 90740
Fair Trade Real Estate, 281 N SYCAMORE ST Santa Ana CA 92701 9493025590 4197 Ironwood Mersad Hatami
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
L. NEIGHBORHOOD, AREA, SUBDIVISION CONDITIONS; PERSONAL FACTORS: Neighborhood or area conditions, including schools, law enforcement, crime statistics, registered felons or offenders, fire protection, other government services, availability, adequacy and cost of internet connections or other technology services and installations, commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer.
By signing below, Buyers acknowledge that they have read, understand, accept and have received a Copy of this Advisory. Buyers are encouraged to read it carefully.
Buyer Date
Buyer Date
© 2021, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020
BIA REVISED 12/21 (PAGE 2 OF 2)
BUYER'S INVESTIGATION ADVISORY (BIA PAGE 2 OF 2)
Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com Coastal Capital Homes LLC
4197 Ironwood
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
FAIR APPRAISAL ACT ADDENDUM
(C.A.R. Form FAAA, 6/22)
The following terms and conditions are hereby incorporated in and made a part of the Purchase Agreement, OR Other (“Agreement”),
dated , on property known as ("Property"),
in which is referred to as (“Seller”)
and is referred to as (“Buyer”).
Any appraisal of the property is required to be unbiased, objective, and not influenced by improper or illegal considerations, including, but not limited to, any of the following: race, color, religion (including religious dress, grooming practices, or both), gender (including, but not limited to, pregnancy, childbirth, breastfeeding, and related conditions, and gender identity and gender expression), sexual orientation, marital status, medical condition, military or veteran status, national origin (including language use and possession of a driver's license issued to persons unable to provide their presence in the United States is authorized under federal law), source of income, ancestry, disability (mental and physical, including, but not limited to, HIV/ AIDS status, cancer diagnosis, and genetic characteristics), genetic information, or age.
If a buyer or seller believes that the appraisal has been influenced by any of the above factors, the seller or buyer can report this information to the lender or mortgage broker that retained the appraiser and may also file a complaint with the Bureau of Real Estate Appraisers at https://www2.brea.ca.gov/complaint/ or call (916) 552-9000 for further information on how to file a complaint.
By signing below, Buyer and Seller has each read, understands and acknowledges receipt of a copy of this Fair Appraisal Act Addendum.
Buyer Date
Buyer Date
Seller Date
Seller Date
© 2022, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020
FAAA 6/22 (PAGE 1 OF 1)
FAIR APPRAISAL ACT ADDENDUM (FAAA PAGE 1 OF 1)
Phone: Fax:
Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com 02/01/2024 4197 Ironwood Avenue S, Seal Beach, CA 90740 Owner of Record
Coastal Capital Homes LLC
Coastal Capital Homes LLC
Owner of Record
Fair Trade Real Estate, 281 N SYCAMORE ST Santa Ana CA 92701 9493025590 4197 Ironwood Mersad Hatami
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
CALIFORNIA CONSUMER PRIVACY ACT ADVISORY,
DISCLOSURE AND NOTICE
(C.A.R. Form CCPA, Revised 12/22)
The California Consumer Privacy Act (commencing with Civil Code § 1798.100) (“CCPA”), as amended by California voters in 2020, grants to California residents certain rights in their private, personal information (“PI”) that is collected by companies with whom they do business. Under the CCPA, PI is defined broadly to encompass non-public records information that could reasonably be linked directly or indirectly to you. PI could potentially include photographs of, or sales information about, your property.
During the process of buying and selling real estate your PI will be collected and likely shared with others, including real estate licensees, a Multiple Listing Service, real estate internet websites, service providers, lenders, and title and escrow companies, to name several possibilities. Businesses that are covered by the CCPA are required to grant you various rights in your PI, including the right to know what PI is collected, the right to know what PI is sold or shared and to whom, the right to request that the business correct or delete your PI, the right to “opt out” or stop the transfer of your PI to others, and the right to limit the use of certain PI which is considered “sensitive.” You may get one or more notices regarding your CCPA rights from businesses you interact with in a real estate transaction. However, not all businesses that receive or share your PI are obligated to comply with the CCPA. Moreover, businesses that are otherwise covered under the CCPA may have a legal obligation to maintain PI, notwithstanding your instruction to the contrary. For instance, regardless of whether they are covered by CCPA, under California law, brokers and Multiple Listing Services are required to maintain their records for 3 years. If you wish to exercise your rights under CCPA, where applicable, you should contact the respective business directly.
You can obtain more information about the CCPA and your rights under the law from the State of California Department of Justice (oag.ca.gov/privacy/ccpa). Additionally, the California Privacy Protection Agency is authorized to promulgate regulations which may further clarify requirements of the CCPA (cppa.ca.gov/regulations/).
I/we acknowledge receipt of a copy of this California Consumer Privacy Act Advisory, Disclosure and Notice.
Buyer/Seller/Landlord/Tenant Date
Buyer/Seller/Landlord/Tenant Date
© 2022, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020
CCPA REVISED 12/22 (PAGE 1 OF 1)
CALIFORNIA CONSUMER PRIVACY ACT ADVISORY (CCPA PAGE 1 OF 1) Phone: Fax:
Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com Coastal Capital Homes LLC
Fair Trade Real Estate, 281 N SYCAMORE ST Santa Ana CA 92701 9493025590 4197 Ironwood Mersad Hatami
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
ADDENDUM No.
(C.A.R. Form ADM, Revised 12/21)
The following terms and conditions are hereby incorporated in and made a part of the Purchase Agreement, OR Residential Lease or Month-to-Month Rental Agreement, Transfer Disclosure Statement (Note: An amendment to the TDS may give the Buyer a right to rescind), Other ,
dated , on property known as
(“Property/Premises”),
in which is referred to as ("Buyer/Tenant")
and is referred to as ("Seller/Landlord").
Buyer/Tenant and Seller/Landlord are referred to as the “Parties.” The foregoing terms and conditions are hereby agreed to, and the undersigned acknowledge receipt of a copy of this Addendum.
Buyer/Tenant Date
Buyer/Tenant Date
Seller/Landlord Date
Seller/Landlord Date
© 2021, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020
ADM REVISED 12/21 (PAGE 1 OF 1)
ADDENDUM (ADM PAGE 1 OF 1)
Phone: Fax:
Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com 1 February 1, 2024 4197 Ironwood Avenue S
Seal Beach, CA 90740
Coastal Capital Homes LLC
Owner of Record
1. The buyer is purchasing the property as-is and in its present condition
2. Termite clearance waived
3. Seller(s) will NOT provide any credits or repairs to the buyer
4. Property to be delivered vacant at the close of escrow
5. Sale Must be approved by the Majority of the City Council. The City Council meets twice monthly, and staff report deadlines are two weeks in advance of the meeting. Qualified buyers can expect 3 weeks for closing timeline.
Coastal Capital Homes LLC
Owner of Record
Fair Trade Real Estate, 281 N SYCAMORE ST Santa Ana CA 92701 9493025590 4197 Ironwood Mersad Hatami
Authentisign ID: C46835E4-198D-4BF9-921F-5CA9BDDA1AFE
Agenda Item F
AGENDA STAFF REPORT
DATE: February 26, 2024
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Awarding and Authorizing Execution of a Public Works Agreement with Hardy & Harper, Inc. for the FY 2023-24
Annual Local Paving Program, CIP STO2
________________________________________________________________ SUMMARY OF REQUEST:
That the City Council adopt Resolution 7491:
1. Approving the plans, specifications, and contract documents for FY 2023- 24 Annual Local Paving Program, CIP STO2; and,
2. Approving and awarding a Public Works Agreement to Hardy & Harper, Inc. in the amount of $773,000, and rejecting all other bids; and,
3. Authorizing the City Manager to execute a Public Works Agreement for construction services to Hardy & Harper, Inc.; and,
4. Authorizing the City Manager to approve additional work requests up to $75,000 and inspection services up to $25,000, in connection with the Project, in the cumulative not-to-exceed amount of $100,000.
BACKGROUND AND ANALYSIS:
The City’s Annual Local Paving Program (“Project”) was budgeted in the FY 2023- 24 Capital Improvement Program to improve roadway conditions within the City.
The work will generally include grinding the existing pavement and installing an asphalt overlay to extend the roadways’ serviceable life. Pursuant to the 2020 and 2022 Pavement Management Programs, the following streets were selected:
1. Bluebell Street – Almond Avenue to Birchwood Avenue
2. Banyan Avenue – Camelia Street to Columbine Street
3. Clover Circle – Almond Avenue to end of the cul-de-sac
4. Daisy Circle – Fir Avenue to end of the cul-de-sac
5. Heather Street – Elder Avenue to Lampson Avenue
6. Dogwood Avenue – Fuchsia Street to Marigold Street
7. Marigold Street – Dogwood Avenue to Candleberry Avenue
8. Rose Street – Hazelnut Avenue to Lampson Avenue
9. Primrose Street – Elder Avenue to Dogwood Avenue
10. Elder Avenue – Primrose Street to Violet Street
11. Wisteria Street – Ironwood Avenue to Dogwood Avenue
12. Ironwood Avenue – Wisteria Street to Tulip Street
On January 31, 2024, the City Clerk’s office received eight (8) bids with the following results:
Rank Contractor Total Base Bid
Low Hardy & Harper, Inc. $ 773,000.00
2 Onyx Paving Company, Inc. $ 808,000.00
3 R.J. Noble Company $ 879,337.00
4 All American Asphalt $ 892,614.00
5 Dash Construction Company, Inc. $ 895,798.00
6 Sequel Contractors, Inc. $ 896,610.00
7 Copp Contracting, Inc. $ 943,512.00
8 Palp, Inc. dba Excel Paving $ 953,657.00
Based upon the references, qualifications, work experience, and cost, staff recommends deeming Hardy & Harper, Inc. (“Hardy & Harper”) as the lowest responsible bidder at $773,000 and awarding the Project to Hardy & Harper; and rejecting all other bids. The project plans are available in the City Engineer’s office.
Staff further recommends authorizing the City Manager to approve additional work requests up to $75,000 and inspection services up to $25,000, in the cumulative not-to-exceed amount of $100,000.
Construction is estimated to start in the Spring of 2024 and be completed within 30 working days following the Notice to Proceed.
ENVIRONMENTAL IMPACT:
This project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under section 15301 Class 1, Subsection (c) of the CEQA Guidelines.
LEGAL ANALYSIS:
The City Attorney has reviewed the agreement and approved the resolution as to form.
FINANCIAL IMPACT:
Sufficient funding has been allocated in the FY 2023-24 Capital Improvement Program budget for the FY 2023-24 Annual Local Paving Program, CIP STO2. No budget amendments are recommended.
The table below presents the estimated breakdown of the Project’s construction cost:
Description Amount
Construction $ 773,000
Contingency $ 75,000
Inspection/Testing $ 25,000
Total $ 873,000
Any unspent funds will be returned to the original funding source.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
RECOMMENDATION:
That the City Council adopt Resolution 7491:
1. Approving the plans, specifications, and contract documents for FY 2023- 24 Annual Local Paving Program, CIP ST02; and,
2. Approving and awarding a Public Works Agreement to Hardy & Harper, Inc. in the amount of $773,000, and rejecting all other bids; and,
3. Authorizing the City Manager to execute a Public Works Agreement for construction services to Hardy & Harper, Inc.; and,
4. Authorizing the City Manager to approve additional work requests up to $75,000 and inspection services up to $25,000, in connection with the Project, in the cumulative not-to-exceed amount of $100,000.
SUBMITTED BY: NOTED AND APPROVED:
Iris Lee Jill R. Ingram
Iris Lee, Director of Public Works Jill R. Ingram, City Manager Prepared by: David Spitz, P.E. Associate Engineer
ATTACHMENTS:
A. Resolution 7491
B. Agreement with Hardy & Harper, Inc.
RESOLUTION 7491
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
AWARDING AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A PUBLIC WORKS AGREEMENT WITH HARDY &
HARPER, INC. FOR THE FY 2023-24 ANNUAL LOCAL PAVING
PROGRAM, CIP STO2.
WHEREAS, on January 10, 2024, the City issued a solicitation for bids for the FY 2023-24 Annual Local Paving Program, CIP STO2 (“Project”); and, WHEREAS, on January 31, 2024, the City Clerk’s office received eight (8) bids in response to the solicitation for bids, and Hardy & Harper, Inc. submitted the lowest responsible bid in the amount of $773,000; and,
WHEREAS, upon reviewing the Notice Inviting Bids and Instructions to Bidders, the bids submitted for the work to be performed pursuant to the Agreement and the plans and specifications, the City Council finds that Hardy & Harper, Inc. is a qualified firm to perform the Project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:
SECTION 1. The City Council hereby approves the plans and specifications for the Project.
SECTION 2. Based on the recitals set forth above, the City Council hereby awards a public works agreement to Hardy & Harper, Inc. for the Project in the not-to-exceed amount of $773,000, and rejects all other bids.
SECTION 3. The City Council hereby authorizes and directs the City Manager to execute the public works agreement with Hardy & Harper, Inc. on behalf of the City.
SECTION 4. The City Council hereby authorizes the City Manager to approve payments for additional work requests in connection with the Project in the cumulative not-to-exceed amount of $75,000.
SECTION 5. The City Council hereby authorizes the City Manager to approve payments for inspection and testing in connection with the Project in the cumulative not-to-exceed amount of $25,000.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th day of February 2024 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7491 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of February 2024.
Gloria D. Harper, City Clerk
Agenda Item G
AGENDA STAFF REPORT
DATE: February 26, 2024
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Awarding and Authorizing the Execution of a Public Works Agreement with Hardy & Harper, Inc. for the Almond
Avenue Paving Project, CIP ST2201
________________________________________________________________ SUMMARY OF REQUEST:
That the City Council adopt Resolution 7492:
1. Approving the plans, specifications, and contract documents for Almond Avenue Paving Project, CIP ST2201; and,
2. Approving and awarding a Public Works Agreement to Hardy & Harper, Inc. in the amount of $406,000, and rejecting all other bids; and,
3. Authorizing the City Manager to execute a Public Works Agreement for construction services to Hardy & Harper, Inc.; and,
4. Authorizing the City Manager to approve additional work requests up to $40,000 and inspection services up to $15,000, in connection with the Project, in the cumulative not-to-exceed amount of $55,000.
BACKGROUND AND ANALYSIS:
As part of the I-405 Widening Project, sections of the Almond Avenue wall were relocated, thereby reducing the width of Almond Avenue. A byproduct of the wall relocation was that overhead utilities also had to be relocated. Pursuant to City regulations, all new utility relocations in College Park East must be installed underground. Orange County Transportation Authority (“OCTA”) provided Almond Avenue pavement restoration funding via a Settlement Agreement to mitigate these utility undergrounding impacts.
The City prepared plans for Almond Avenue pavement rehabilitation between the limits of the utility undergrounding and wall relocation work from Columbine Street to Sunflower Circle. The Project will generally include grinding the existing
pavement, installing an asphalt overlay, and constructing new ADA-compliant concrete curb ramps.
On January 31, 2024, the City Clerk’s office received eight (8) bids with the following results:
Rank Contractor Total Base Bid
Low Hardy & Harper, Inc. $ 406,000.00
2 Dash Construction Company, Inc. $ 457,782.50
3 Sequel Contractors, Inc. $ 484,538.00
4 RJ Noble Company $ 497,501.60
5 Onyx Paving Company, Inc. $ 505,000.00
6 All American Asphalt $ 506,498.00
7 L.M.T Enterprises, Inc. dba Tyner Paving $ 532,217.60 8 Palp, Inc. dba Excel Paving $ 533,473.30
Based upon the references, qualifications, work experience, and cost, staff recommends deeming Hardy & Harper, Inc. (“Hardy & Harper”) as the lowest responsible bidder at $406,000 and awarding the Almond Avenue Paving Project to Hardy & Harper; and rejecting all other bids. The project plans are available in the City Engineer’s office.
Staff further recommends authorizing the City Manager to approve additional work requests up to $40,000 and inspection services up to $15,000, in the cumulative not-to-exceed amount of $55,000.
Construction is estimated to start in the Spring of 2024 and be completed within 30 working days following the Notice to Proceed.
ENVIRONMENTAL IMPACT:
This project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under section 15301 (c) of the CEQA Guidelines.
LEGAL ANALYSIS:
The City Attorney has reviewed the agreement and approved the resolution as to form.
FINANCIAL IMPACT:
Sufficient funding has been allocated in the Capital Improvement Program budget, where costs associated with the Almond Avenue Paving Project will be funded by the OCTA Mitigation Payment account. No budget amendments are recommended.
The table below presents the estimated breakdown of the Project’s construction cost:
Description Amount
Construction $ 406,000
Contingency $ 40,000
Inspection/Testing $ 15,000
Total $ 461,000
Any unspent funds will be returned to the original funding source.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
RECOMMENDATION:
That the City Council adopt Resolution 7492:
1. Approving the plans, specifications, and contract documents for Almond Avenue Paving Project, CIP ST2201; and,
2. Approving and awarding a Public Works Agreement to Hardy & Harper, Inc. in the amount of $406,000, and rejecting all other bids; and,
3. Authorizing the City Manager to execute a Public Works Agreement for construction services to Hardy & Harper, Inc.; and,
4. Authorizing the City Manager to approve additional work requests up to $40,000 and inspection services up to $15,000, in connection with the Project, in the cumulative not-to-exceed amount of $55,000.
SUBMITTED BY: NOTED AND APPROVED:
Iris Lee Jill R. Ingram
Iris Lee, Director of Public Works Jill R. Ingram, City Manager Prepared by: David Spitz, P.E., Associate Engineer
ATTACHMENTS:
A. Resolution 7492
B. Agreement with Hardy & Harper, Inc.
RESOLUTION 7492
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
AWARDING AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A PUBLIC WORKS AGREEMENT WITH HARDY &
HARPER, INC. FOR THE ALMOND AVENUE PAVING PROJECT,
CIP ST2201.
WHEREAS, on January 10, 2024, the City issued a solicitation for bids for the Almond Avenue Paving Project, CIP ST2201 (“Project”); and, WHEREAS, on January 31, 2024, the City Clerk’s office received eight (8) bids in response to the solicitation for bids, and Hardy & Harper, Inc. submitted the lowest responsible bid in the amount of $406,000; and,
WHEREAS, upon reviewing the Notice Inviting Bids and Instructions to Bidders, the bids submitted for the work to be performed pursuant to the Agreement and the plans and specifications, the City Council finds that Hardy & Harper, Inc. is a qualified firm to perform the Project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:
SECTION 1. The City Council hereby approves the plans and specifications for the Project.
SECTION 2. Based on the recitals set forth above, the City Council hereby awards a public works agreement to Hardy & Harper, Inc. for the Project in the not-to-exceed amount of $406,000, and rejects all other bids.
SECTION 3. The City Council hereby authorizes and directs the City Manager to execute the public works agreement with Hardy & Harper, Inc. on behalf of the City.
SECTION 4. The City Council hereby authorizes the City Manager to approve payments for additional work requests in connection with the Project in the cumulative not-to-exceed amount of $40,000.
SECTION 5. The City Council hereby authorizes the City Manager to approve payments for inspection and testing in connection with the Project in the cumulative not-to-exceed amount of $15,000.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th day of February 2024 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7492 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of February 2024.
Gloria D. Harper, City Clerk
Agenda Item H
AGENDA STAFF REPORT
DATE: February 26, 2024
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Awarding and Authorizing Execution of a Professional Services Agreement with Circuit Transit, Inc. for the Seal Beach Microtransit Service Pilot Program, and Budget
Amendment BA #24-08-04
________________________________________________________________ SUMMARY OF REQUEST:
That the City Council adopt Resolution 7493:
1. Awarding a Professional Services Agreement to Circuit Transit, Inc. in a notto-exceed fixed monthly amount of $18,205 and a total not-to-exceed amount of $325,783 for the term to provide on-demand transit services for the Seal Beach Microtransit Service Pilot Program; and,
2. Authorizing and directing the City Manager to execute the Agreement; and,
3. Authorizing the City Manager to approve additional work requests up to the total amount of $20,000 in connection with the Program; and,
4. Approving Budget Amendment BA #24-08-04 allocating $182,892 from the Parking In-Lieu fund balance to the Parking In-Lieu Contract Professional account, recognizing $162,891 of grant funding in the Grant Reimbursement account, and increasing the Citywide Grants Contract Professional account by $162,891.
BACKGROUND AND ANALYSIS:
The South Coast Air Quality Management District (“SCAQMD”) created the Mobile Source Air Pollution Reduction Review Committee (“MSRC”) to fund projects related to reducing air pollution from motor vehicles and to implement the California Clean Air Act. MSRC has identified microtransit as a mobility strategy that closely aligns with their objectives. On January 6, 2023, MSRC issued a Microtransit Service Request for Proposals (P2023-07), soliciting for mobility solutions that can enhance transit in areas where deploying transitional fixed-route services would prove challenging.
The City’s Main Street corridor and Seal Beach Pier have historically been a visitor and resident attractor, where access is primarily provided by car and conventional fixed-route transit. In efforts to reduce the number of gas-powered vehicle trips, aid congestion, and alleviate parking demand, the City responded to MSRC’s Microtransit Service Request for Proposal with the Seal Beach Microtransit Service Pilot Program (“Program”).
The Program proposes to partner with Circuit Transit, Inc. (“Circuit”) to operate electric vehicles in the Old Town and The Hill neighborhood through the use of a mobile ride request application. This on-demand program would provide virtual stops to improve efficiency, and effectively circulate riders to reduce impacts to the roadway and parking.
On June 2, 2023, SCAQMD approved funding for the Program in the amount of $162,891. Staff has since been working with SCAQMD on the Program details, as specified on the AB2766/MSRC Microtransit Service Program Grant Agreement.
The general terms include:
• A pilot program duration of twelve (12) months to be completed by April 2025
• A defined service area generally encompassing the Old Town and The Hill neighborhood
• One (1) Americans with Disability Act (“ADA”) accessible vehicle available at all times
• A minimum City matching fund of $162,892, which may be offset by fare and/or advertising revenues
Upon approval of the agreement with Circuit, staff will initiate the microtransit service coordination and outreach.
ENVIRONMENTAL IMPACT:
Approval of a resolution authorizing a grant agreement is not a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to Sections 15061(b)(3) and 15378(b)(4) of the state CEQA Guidelines because it can be seen with certainty that approval of professional services agreement with Circuit Transit, Inc. will not have a significant effect on the environment.
LEGAL ANALYSIS:
The City Attorney has approved the agreement and resolution as to form.
FINANCIAL IMPACT:
Parking in-Lieu fees are collected as development occurs along the Main Street area. Fees are used to create additional parking opportunities. Staff has identified
the unassigned Parking-in-Lieu funds as an appropriate funding source for the Project’s matching funds.
The use of non-grant funds may be offset by revenues generated through net advertising revenue and fares, as detailed in the Scope of Work included in Exhibit A to the Agreement.
Description Amount
Grant $ 162,891
City Matching Funds (Parking In-Lieu) 162,892
Contingency – Matching Funds 20,000
Total $ 345,783
Budget Amendment BA #24-08-04 will allocate $182,892 from the Parking In-Lieu fund balance to the Parking In-Lieu Contract Professional account, recognizing $162,891 of grant funding in the Grant Reimbursement account, and increasing the Citywide Grants Contract Professional account by $162,891. The grant amount of $162,891 will be reimbursed by SCAQMD.
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
RECOMMENDATION:
That the City Council adopt Resolution 7493:
1. Awarding a Professional Services Agreement to Circuit Transit, Inc. in a notto-exceed fixed monthly amount of $18,205 and a total not-to-exceed amount of $325,783 for the term to provide on-demand transit services for the Seal Beach Microtransit Service Pilot Program; and,
2. Authorizing and directing the City Manager to execute the Agreement; and,
3. Authorizing the City Manager to approve additional work requests up to the total amount of $20,000 in connection with the Program; and,
4. Approving Budget Amendment BA #24-08-04 allocating $182,892 from the Parking In-Lieu fund balance to the Parking In-Lieu Contract Professional account, recognizing $162,891 of grant funding in the Grant
Reimbursement account, and increasing the Citywide Grants Contract Professional account by $162,891.
SUBMITTED BY: NOTED AND APPROVED:
Iris Lee Jill R. Ingram
Iris Lee, Director of Public Works Jill R. Ingram, City Manager ATTACHMENTS:
A. Resolution 7493
B. Agreement with Circuit Transit, Inc.
RESOLUTION 7493
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
AWARDING AND AUTHORIZING THE CITY MANAGER
TO EXECUTE A PROFESSIONAL SERVICES
AGREEMENT WITH CIRCUIT TRANSIT, INC. TO
PROVIDE ON-DEMAND TRANSIT SERVICES FOR THE
SEAL BEACH MICROTRANSIT SERVICE PROGRAM
AND APPROVING BUDGET AMENDMENT
BA #24-08-04
WHEREAS, the City of Seal Beach (“City”), in partnership with Circuit Transit, Inc.(“Circuit”), submitted an application in response to the South Coast Air Quality Management District (“SCAQMD”) Microtransit Service Program Grant Request for Proposals, dated March 23, 2023; and,
WHEREAS, the City was selected to receive a Microtransit Service grant in the amount of $162,891, with a minimum match of $162,892 for the Seal Beach Microtransit Service Pilot Program (“Program”); and,
WHEREAS, on December 11, 2023, the City Council adopted Resolution 7467 approving an agreement with the South Coast Air Quality Management District (“SCAQMD”) for the Microtransit Service Program Grant; and, WHEREAS, the City desires to retain Circuit to provide on-demand transit services for the Project pursuant to Grant requirements; and,
WHEREAS, Circuit is qualified to provide transit services.
NOW, THEREFORE, THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
Section 1. The City Council hereby awards a Professional Services Agreement (“Agreement”) to Circuit Transit, Inc. in a not-to-exceed fixed monthly amount of $18,205 and a total not-to-exceed amount of $325,783 for the term to provide transit services for the Seal Beach Microtransit Service Program.
Section 2. The City Council hereby authorizes the City Manager to approve additional work payment requests in connection with the Program in a cumulative not-to-exceed amount of $20,000.
Section 3. The City Council hereby authorizes and directs the City Manager to execute the Agreement on behalf of the City.
Section 4. The City Council hereby approves Budget Amendment BA #24-08- 04 allocating $182,892 from the Parking In-Lieu fund balance to the Parking In-Lieu Contract Professional account, recognizing $162,891 of grant funding in the Grant Reimbursement account, and increasing the Citywide Grants Contract Professional account by $162,891.
The grant amount of $162,891 will be reimbursed by SCAQMD.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th day of February 2024 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7493 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of February 2024.
Gloria D. Harper, City Clerk
Agenda Item I
AGENDA STAFF REPORT
DATE: February 26, 2024
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Notice of Completion for the FY 2023-24 Annual Slurry Seal Program, CIP STO1
________________________________________________________________ SUMMARY OF REQUEST:
That the City Council adopt Resolution 7494:
1. Accepting the FY 2023-24 Annual Slurry Seal Program, CIP STO1, by Petrochem Materials Innovation, LLC in the amount of $243,888.92; and,
2. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within fifteen (15) days from the date of acceptance and to release retention thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.
BACKGROUND AND ANALYSIS:
The FY 2023-2024 Annual Slurry Seal Program (“Project”) consisted of applying a slurry seal coating to selected streets as identified in the 2022 Pavement Management Program report.
On August 14, 2023, the City Council adopted Resolution 7439, and awarded a Maintenance and Repair Services Agreement (“Agreement”) to Petrochem Materials Innovation, LLC (“PMI”), for the Project in the amount of $330,000. The City has the option to extend the Agreement for up to five (5) additional one-year terms after its original term.
The Project utilized the Agreement to resurface and repair the following streets:
College Park East
o Dogwood Avenue – Ironwood Avenue to Daisy Street
o Daisy Street – Dogwood Avenue to Candleberry Avenue
o Guava Avenue – Heather Street to Pansy Street
o Pansy Street – Guava Avenue to Fir Avenue
o Fir Avenue – Heather Street to Sunflower Street
o Rose Street – Fir Avenue to Hazelnut Avenue
College Park West
o Loyola Plaza – College Park Drive to end of the cul-de-sac o Purdue Circle – College Park Drive to end of the cul-de-sac o Harvard Lane – College Park Drive to end of the cul-de-sac o Occidental Drive – Harvard Lane to Standford Lane
o Princeton Circle – Harvard Lane to end of the cul-de-sac o Dartmouth Circle – Harvard Lane to end of the cul-de-sac o Stanford Lane – College Park Drive to College Park Drive o Yale Lane – College Park Drive to College Park Drive
o Yale Circle – Yale Lane to end of the cul-de-sac
The Project was inspected, meets all standards and requirements within the Project specifications, and has been completed to the satisfaction of the City Engineer. It is requested that the City Council formally accept the Project, direct staff to file a Notice of Completion with the Orange County Clerk’s Office and release the retention thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.
ENVIRONMENTAL IMPACT:
This Project complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under Section 15301 Class 1 Subsection (c).
LEGAL ANALYSIS:
The City Attorney has reviewed and approved the resolution as to form.
FINANCIAL IMPACT:
The approved construction contract budget plus established construction contingency totals $330,000. The table below presents a breakdown of the total construction Project cost:
Description Amount
Construction Bid Items $ 243,888.92
Contract Change Orders $ 0.00
Project Cost $ 243,888.92
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
RECOMMENDATION:
That the City Council adopt Resolution 7494:
1. Accepting the FY 2023-24 Annual Slurry Seal Program, CIP STO1, by Petrochem Materials Innovation, LLC in the amount of $243,888.92; and,
2. Directing the City Clerk to file a “Notice of Completion” with the Orange County Clerk-Recorder within fifteen (15) days from the date of acceptance and to release retention thirty-five (35) days after recordation of the Notice of Completion contingent upon no claims being filed on the Project.
SUBMITTED BY: NOTED AND APPROVED:
Iris Lee Jill R. Ingram
Iris Lee, Director of Public Works Jill R. Ingram, City Manager Prepared by: David Spitz, P.E., Associate Engineer
ATTACHMENTS:
A. Resolution 7494
B. Notice of Completion
RESOLUTION 7494
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
ACCEPTING COMPLETION OF THE FY 2023-24 ANNUAL
SLURRY SEAL PROGRAM, CIP STO1
THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
Section 1. The City accepts the completion of the FY 2023-24 Annual Slurry Seal Program (“Project”), CIP STO1, by Petrochem Materials Innovation, LLC in the amount of $243,888.92 for the work performed.
Section 2. The City Clerk is hereby directed to file a “Notice of Completion” for the Project with the Orange County Clerk-Recorder within fifteen (15) days of the date of this resolution and to release retention 35 days after the recordation of the Notice of Completion contingent upon no claims being filed on the Project.
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th day of February 2024 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7494 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of February 2024.
Gloria D. Harper, City Clerk
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO
CITY OF SEAL BEACH
Attn: City Clerk
211 - 8th Street
Seal Beach, CA 90740
Space of above this line for Recorder’s use.
*** No Recording Fee Pursuant to Government Code Sections 6103 and 27383 ****
NOTICE OF COMPLETION
Notice pursuant to Civil Code Section 9204, must be filed within 15 days after completion.
Notice is hereby given that:
1. The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described:
2. The full name of the owner is: City of Seal Beach.
3. The address of the owner is: 211 – 8th Street, Seal Beach, CA 90740.
4. The nature of the interest or estate of the owner is: In Fee. The City of Seal Beach.
5. A work of improvement on the property hereinafter is described as substantially completed on December 21, 2023. The work was FY 2023-24 Annual Slurry Seal Program, CIP STO1.
6. The name of the contractor(s), if any, for such improvement was: Petrochem Materials Innovation, LLC.
7. The date of the Contract Award was August 14, 2023.
8. The property on which said work of improvement was completed in the City of Seal Beach, County of Orange, State of California, and is described as follows: Various Citywide locations, Seal Beach, CA.
Date: _______________
_________________________________________
Iris Lee, Director of Public Works, City of Seal Beach
Signature of owner or corporate officer of owner
named in paragraph 2 or agent.
VERIFICATION
I, the undersigned, say: Iris Lee (Director of Public Works) declarant of the foregoing notice of completion; have read said notice of completion and know the contents thereof; the same is true of my own knowledge.
I declare under penalty of perjury the foregoing is true and correct.
Executed on _____________________, 2024, at Seal Beach, California. (Date of Signature)
_________________________________________
Iris Lee, Director of Public Works, City of Seal Beach
Agenda Item J
AGENDA STAFF REPORT
DATE: February 26, 2024
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Awarding and Authorizing Execution of Design-Build Agreement with KYA Services, LLC for the Heather Park
Play Area Improvements Project, CIP PR2203/O-PR-1
________________________________________________________________ SUMMARY OF REQUEST:
That the City Council adopt Resolution 7495:
1. Approving the conceptual design for Heather Park Play Area Improvements Project, CIP PR2203/O-PR-1 (“Project”), and delegating discretionary authority to the City Engineer to approve the final drawings before construction begins for each phase or portion of the Project; and,
2. Finding the design-build process for design and construction of the Project will provide a reduction of costs and expedite Project completion in a manner not achievable through the design, bid, and build process; and,
3. Approving and awarding a Design-Build Agreement to KYA Services, LLC in the not-to-exceed amount of $767,830.56 for the Project; and,
4. Authorizing the City Manager to execute a Design-Build Agreement to KYA Services, LLC for the Project; and,
5. Authorizing the City Manager to approve additional work requests up to a $23,753.21 and inspection services up to $6,000 in connection with the Project, in the cumulative not-to-exceed amount of $29,753.21.
BACKGROUND AND ANALYSIS:
On October 28, 2019, the City Council adopted Resolution 6971, approving applications for the State Department of Parks and Recreation Proposition 68 Per Capita Program grant (“Grant”) to rehabilitate existing infrastructure in neighborhoods around the City. On January 18, 2022, the State Department of Parks and Recreation awarded the City the Grant for the rehabilitation of existing infrastructure throughout the City. Consistent with the City’s Park Master Plan and
the community’s desire to place Heather Park as a priority, Grant funds were allocated to the Heather Park Play Area Improvements Project (“Project”).
On August 12, 2022, the City entered into a Professional Service Agreement with RJM Design Group, Inc. (“RJM”) to develop a conceptual design for the Project.
On May 24, 2023, Staff presented the conceptual design to the Recreation and Parks Commission. Based on the design and value engineering recommendations received from Commissioners and the public, the conceptual plan was updated accordingly.
The Project includes replacing the existing playground structure, adding freestanding play equipment, installing poured-in-place rubber surfacing, relocating the centennial bricks, installing a shade structure over bench seating, and an outdoor exercise area that is separately funded by the Centennial Fund. The inclusive playground design accommodates both the 2 to 5-year-old as well as 5 to 12-year-old age groups, and includes accessible features throughout.
Due to the scope of work and specialty of the Project, Staff recommends proceeding with the design-build process, by which a single contractor concurrently provides both design and construction services for the Project. This process is different than the design-bid-build process, by which design and construction services are provided sequentially by different contractors.
Section 1010.5 of Seal Beach City Charter authorizes the City to enter into a contract for both the design and construction of a project if the City Council finds that use of the design-build process on a project will accomplish one or more of the following objectives: reduction of project costs; expediting project completion; or provision of design features not achievable through the design, bid, and build process.
Staff recommends the design-build process for the Project on the basis that design-build will:
1. Reduce the cost of the Project; and
2. Expedite completion of the Project.
Finding 1 — Reduction of Project Cost. By selecting the design-build method, a single source company would provide engineering and construction. While in design, material may be ordered to lock in pricing and avoid inflation due to long lead times. Change orders are reduced since the design and construction is under one contract. This puts the accountability solely on the company, which will significantly reduce risk to the City.
Finding 2 — Expediting Project Completion. By selecting a company that has the capabilities of both engineering and construction, it significantly reduces the time of the Project. For example, during the design phase, the necessary appurtenances may be ordered and site demolition may start concurrently. It would
also eliminate the bid period and simplify staff oversight. This design-build method will guarantee the Project will continue on schedule within the grant timeline.
On October 11, 2023, Staff solicited a proposal from KYA Services, LLC (“KYA”) to provide design-build services pursuant to the City of Seal Beach Charter Section 1010.5, to reduce project costs and expedite project completion. Additionally, City will utilize KYA’s California Multiple Award Schedule 4-20-78-0089C (“CMAS”) pricing for the required equipment pursuant to City of Seal Beach Municipal Code Section 3.20.025(D) which provides an exemption from the City’s competitive bidding requirements for purchases made in cooperation with state, county, or another government entity for the purpose of obtaining a lower price upon the same terms, conditions and specifications.
KYA holds the proper “A” General Engineering with a “C-61 / D12” (Synthetic Products) contractor’s license. Based on KYA’s proposal dated January 22, 2024, Staff recommends entering into a Design-Build Agreement with KYA to complete the Project.
ENVIRONMENTAL IMPACT:
This item complies with all requirements of the California Environmental Quality Act (CEQA) and is categorically exempt under Section 15301 Class 1 Subsection (d) as the work involves restoration or rehabilitation of existing facilities.
LEGAL ANALYSIS:
The City Attorney has approved the agreement and resolution as to form.
FINANCIAL IMPACT:
The Project will utilize funds allocated in FY 2023-24 Capital Improvement Program, which includes funds from the Prop 68 Per Capita grant and City’s matching funds. Additionally, Budget Amendment #BA 24-08-01 is requested to fund the balance of the Project costs. Any unused funds will be returned to the original funding source.
The table below represents a breakdown of the total project funding:
Description Amount
CIP PR2203 $213,300.00
CIP O-PR-1 $ 20,000.00
Fund Bal Assigned – Col Prk E $477,000.00
Capital Projects - Centennial $ 52,283.77
Capital Projects – Fitness Equip $ 35,000.00
Total $797,583.77
The table below represents a breakdown of the Project costs:
Description Amount
Design-Build Contract $ 767,830.56
Contingency $ 23,753.21
Inspection Services $ 6,000.00
Total: $ 797,583.77
STRATEGIC PLAN:
This item is not applicable to the Strategic Plan.
RECOMMENDATION:
That the City Council adopt Resolution 7495:
1. Approving the conceptual design for Heather Park Play Area Improvements Project, CIP PR2203/O-PR-1 (“Project”), and delegating discretionary authority to the City Engineer to approve the final drawings before construction begins for each phase or portion of the Project; and,
2. Finding the design-build process for design and construction of the Project will provide a reduction of costs and expedite Project completion in a manner not achievable through the design, bid, and build process; and,
3. Approving and awarding a Design-Build Agreement to KYA Services, LLC in the not-to-exceed amount of $767,830.56 for the Project; and,
4. Authorizing the City Manager to execute a Design-Build Agreement to KYA Services, LLC for the Project; and,
5. Authorizing the City Manager to approve additional work requests up to a $23,753.21 and inspection services up to $6,000 in connection with the Project, in the cumulative not-to-exceed amount of $29,753.21.
SUBMITTED BY: NOTED AND APPROVED:
Iris Lee Jill R. Ingram
Iris Lee, Director of Public Works Jill R. Ingram, City Manager
Prepared by: Kathryne Cho, Deputy Director of Public Works/City Engineer ATTACHMENTS:
A. Resolution 7495
B. Design-Build Agreement with KYA Services, LLC
RESOLUTION 7495
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
AWARDING AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A DESIGN-BUILD AGREEMENT WITH KYA
SERVICES, LLC FOR THE HEATHER PARK PLAY AREA
IMPROVEMENTS, CIP PR2203/O-PR-1
WHEREAS, on October 28, 2019, the City Council adopted Resolution 6971 approving applications for the State Department of Parks and Recreation Proposition 68 Per Capita Program grant (“Grant”); and, WHEREAS, on January 18, 2022, the State Department of Parks and Recreation awarded the Grant to the City for the rehabilitation of existing infrastructure in neighborhoods around the City; and,
WHEREAS, consistent with the City’s Park Master Plan and the community’s desire to place Heather Park as a priority, the funding was allocated to this effort; and,
WHEREAS, on August 12, 2022, the City entered into a Professional Service Agreement with RJM Design Group, Inc. (“RJM”) to develop a conceptual design for the Heather Park Play Area Improvements (“Project”); and, WHEREAS, on May 24, 2023, staff presented the conceptual design to the Recreation and Parks Commission and updated the conceptual design to align with comments and recommendations received from Commissioners and the public; and,
WHEREAS, the City of Seal Beach Charter Section 1010.5 authorizes the City to enter into a design-build contract for both the design and construction of a project in accordance with the Section to reduce project costs and expedite project completion, based on certain findings; and,
WHEREAS, Seal Beach Municipal Code Section 3.20.025(D), provides an exemption from the City’s competitive bidding requirements for purchases made in cooperation with state, county, or another government entity for the purpose of obtaining a lower price upon the same terms, conditions, and specifications; and, WHEREAS, staff solicited a proposal from KYA Services, LLC (“KYA”) to complete the Project via the design-build process and utilize KYA’s California Multiple Award Schedule 4-20-78-0089C (“CMAS”) pricing to expedite the design and procurement time, and reduce Project costs; and,
WHEREAS, on January 22, 2024, KYA provided a proposal for the Project in the not-to-exceed amount of $767,830.56; and,
WHEREAS, KYA holds the proper “A” General Engineering with a “C-61/D12” (Synthetic Products) contractor’s license, and is a qualified firm to perform the Project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE:
SECTION 1. The City Council hereby approves the conceptual plans for the Project and delegates discretionary authority to the City Engineer to approve the final drawings before construction begins for each phase or portion of the project.
SECTION 2. Based on the recitals set forth above, the City Council hereby finds the use of the design-build process will result in a reduction in Project cost and expedite Project completion for the following reasons:
A. By selecting the design-build process for the Heather Park Play Area Improvements Project, a single source company will provide engineering and construction. While in design, material may be ordered to lock in pricing and avoid inflation due to long lead times. Change orders are reduced since the design and construction is under one contract. This process puts the accountability solely on the company, which will significantly reduce risk to the City.
B. By selecting a company that has the capabilities of both engineering and construction, the design-build process significantly reduces the time of the Project. For example, during the design phase, the necessary appurtenances may be ordered and site demolition may start concurrently. This process would also eliminate the bid period and simplify staff oversight. This design-build method will guarantee the Project will continue on schedule within the Grant timeline.
SECTION 3. Based on the recitals set forth above, the City Council hereby awards a Design-Build Agreement to KYA for the Project in a total not-toexceed amount of $767,830.56.
SECTION 4. The City Council hereby authorizes and directs the City Manager to execute the Design-Build Agreement with KYA on behalf of the City.
SECTION 5. The City Council hereby authorizes the City Manager to approve additional work requests up to $23,753.21 and inspection services up to $6,000 in connection with the Project, in the cumulative not-toexceed amount of $29,753.21.
SECTION 6. The City Council hereby approves Budget Amendment #BA 24-08-01 allocating $477,000 as follows:
PASSED, APPROVED AND ADOPTED by the Seal Beach City Council at a regular meeting held on the 26th day of February 2024 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Schelly Sustarsic, Mayor
ATTEST:
Gloria D. Harper, City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the foregoing resolution is the original copy of Resolution 7495 on file in the office of the City Clerk, passed, approved, and adopted by the City Council at a regular meeting held on the 26th day of February 2024.
Gloria D. Harper, City Clerk
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0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) I. RECITALS
This CONTRACT is entered into between the California Department of Parks and IWUdWSf[a` %ZWdW[`SXfWd dWXWddWV fa Se o>I7EKFI'p o;<G7IKD<EKp ad oJK7K<p& S`V City of Seal Beach (herW[`SXfWd dWXWddWV fa Se o>I7EK<<p&) The DEPARTMENT hereby grants to GRANTEE S eg_ %S^ea dWXWddWV fa Se o>I7EK DFE@<Jp& `af fa WjUWWV _$177,952___, subject to the terms and conditions of this AGREEMENT and the 2018/19 California State Budget, Chapter 29, statutes of 2018, Item number n 3790-101-6088 (appropriation chapter and budget item number hereinafter referred to as oG<I 97G@K7 >I7EKp). These funds shall be used for completion of the GRANT SCOPE(S).
The Grant Performance Period is from _July 01, 2018_ to _June 30, 2028_.
II. GENERAL PROVISIONS
A. Definitions
As used in this CONTRACT, the following words shall have the following meanings:
1. KZW fWd_ o79Kp _WS`e fZW 9S^[Xad`[S ;dagYZf' NSfWd' GSd]e 9^[_SfW' 9aSefS^ Protection, and Outdoor Access for All Act of 2018, as referred to in section I of this CONTRACT.
2. KZW fWd_ o7GGC@97K@FEp _WS`e fZW [`V[h[VgS^ bda\WUf 7GGC@97K@FE bSU]Wf Xad S project pursuant to the enabling legislation and/or grant program process guide requirements.
3. KZW fWd_ o;<G7IKD<EKp ad oJK7K<p _WS`e fZW 9S^[Xad`[S ;WbSdf_W`f aX GSd]e and Recreation.
4. KZW fWd_ o;<M<CFGD<EKp _WS`e USb[fS^ [_bdahW_W`fe fa dWS^ bdabWdfk Tk means of, but not limited to, construction, expansion, and/or renovation, of permanent or fixed features of the property.
5. KZW fWd_ o>I7EK<<p _WS`e fZW bSdfk VWeUd[TWV Se the GRANTEE in Section I of this CONTRACT.
6. KZW fWd_ o>I7EK J9FG<p _WS`e fZW [fW_e ^[efWV [` fZW >I7EK J9FG<*9aef Estimate Form or acquisition documentation found in each of the APPLICATIONS submitted pursuant to this grant.
7. KZW fWd_ oGIF9<;LI7C >L@;<p means the document identified as the oGdaUWVgdS^ >g[VW Xad 9S^[Xad`[S ;dagYZf' NSfWd' GSd]e' 9^[_SfW' 9aSefS^ GdafWUf[a`' S`V FgfVaad 7UUWee =ad 7^^ 7Uf aX -+,3 GWd 9Sb[fS GdaYdS_)p KZW 1 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) PROCEDURAL GUIDE provides the procedures and policies controlling the administration of the grant.
B. Project Execution
1. Subject to the availability of GRANT MONIES, the STATE hereby grants to the GRANTEE a sum of money not to exceed the amount stated in Section I of this CONTRACT, in consideration of, and on condition that, the sum be expended in carrying out the purposes as set forth in the scope described in the enabling legislation and referenced in the APPLICATION, Section I of this CONTRACT, and under the terms and conditions set forth in this CONTRACT.
The GRANTEE shall assume any obligation to furnish any additional funds that may be necessary to complete the GRANT SCOPE(S).
The GRANTEE agrees to submit any change or alteration from the original GRANT SCOPE(S) in writing to the STATE for prior approval. This applies to any and all changes that occur after STATE has approved the APPLICATION. Changes in the GRANT SCOPE(S) must be approved in writing by the STATE.
2. The GRANTEE shall complete the GRANT SCOPE(S) in accordance with the time of the Performance Period set forth in Section I of this CONTRACT, and under the terms and conditions of this CONTRACT.
3. The GRANTEE shall comply with the California Environmental Quality Act (Public Resources Code, Section 21000, et seq., Title 14, California Code of Regulations, Section 15000 et seq.).
4. The GRANTEE shall comply with all applicable current laws and regulations affecting DEVELOPMENT projects, including, but not limited to, legal requirements for construction contracts, building codes, health and safety codes, and laws and codes pertaining to individuals with disabilities, including but not limited to the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and the California Unruh Act (California Civil Code §51 et seq.).
C. Project Costs
1. GRANTEE agrees to abide by the PROCEDURAL GUIDE.
2. GRANTEE acknowledges that STATE may make reasonable changes to its procedures as set forth in the PROCEDURAL GUIDE. If STATE makes any changes to its procedures and guidelines, STATE agrees to notify GRANTEE within a reasonable time.
D. Project Administration
1. If GRANT MONIES are advanced for DEVELOPMENT projects, the advanced funds may be placed in an interest bearing account until expended. Interest earned on the advanced funds shall be used on the project as approved by the STATE. If grant monies are advanced and not expended, the unused portion of the grant and 2 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) any interest earned shall be returned to the STATE within 60 days after project completion or end of the Grant Performance Period, whichever is earlier.
2. The GRANTEE shall submit written project status reports within 30 calendar days after the STATE has made such a request. In any event, the GRANTEE shall provide the STATE a report showing total final project expenditures within 60 days of project completion or the end of the grant performance period, whichever is earlier. The Grant Performance Period is identified in Section I of this CONTRACT.
3. The GRANTEE shall make property or facilities acquired and/or developed pursuant to this contract available for inspection upon request by the STATE.
E. Project Termination
1. Project Termination refers to the non-completion of a GRANT SCOPE. Any grant funds that have not been expended by the GRANTEE shall revert to the STATE.
2. The GRANTEE may unilaterally rescind this CONTRACT at any time prior to the commencement of the project. The commencement of the project means the date of the letter notifying GRANTEE of the award or when the funds are appropriated, whichever is later. After project commencement, this CONTRACT may be rescinded, modified or amended only by mutual agreement in writing between the GRANTEE and the STATE, unless the provisions of this CONTRACT provide that mutual agreement is not required.
3. Failure by the GRANTEE to comply with the terms of the (a) PROCEDURAL GUIDE, (b) any legislation applicable to the ACT, (c) this CONTRACT as well as any other grant contracts, specified or general, that GRANTEE has entered into with STATE, may be cause for suspension of all obligations of the STATE unless the STATE determines that such failure was due to no fault of the GRANTEE. In such case, STATE may reimburse GRANTEE for eligible costs properly incurred in performance of this CONTRACT despite non-performance of the GRANTEE. To qualify for such reimbursement, GRANTEE agrees to mitigate its losses to the best of its ability.
4. Any breach of any term, provision, obligation or requirement of this CONTRACT by the GRANTEE shall be a default of this CONTRACT. In the case of any default by GRANTEE, STATE shall be entitled to all remedies available under law and equity, including but not limited to: a) Specific Performance; b) Return of all GRANT MONIES; c) Payment to the STATE of the fair market value of the project property or the actual sales price, whichever is higher; and d) Payment to the STATE of the costs of enforcement of this CONTRACT, including but not limited to court and arbitration costs, fees, expenses of litigation, and reasonable attorney fees.
5. The GRANTEE and the STATE agree that if the GRANT SCOPE includes DEVELOPMENT, final payment may not be made until the work described in the GRANT SCOPE is complete and the GRANT PROJECT is open to the public.
F. Budget Contingency Clause
3 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) If funding for any fiscal year is reduced or deleted by the budget act for purposes of this program, the STATE shall have the option to either cancel this contract with no liability occurring to the STATE, or offer a CONTRACT amendment to GRANTEE to reflect the reduced grant amount. This Paragraph shall not require the mutual agreement as addressed in Paragraph E, provision 2, of this CONTRACT.
G. Hold Harmless
1. The GRANTEE shall waive all claims and recourse against the STATE including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this CONTRACT except claims arising from the concurrent or sole negligence of the STATE, its officers, agents, and employees.
2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, damages, costs, expenses or liability costs arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of the property described as the project which claims, demands or causes of action arise under California Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of the STATE, its officers, agents, or employees.
3. The GRANTEE agrees that in the event the STATE is named as codefendant under the provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the STATE of such fact and shall represent the STATE in the legal action unless the STATE undertakes to represent itself as codefendant in such legal action in which event the GRANTEE SYdWWe fa bSk fZW JK7K<qe litigation costs, expenses, and reasonable attorney fees.
4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction.
Neither party shall request a jury apportionment.
5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, costs, expenses or liability costs arising out of legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE acknowledges that it is solely responsible for compliance with items to which it has certified.
H. Financial Records
1. The GRANTEE shall maintain satisfactory financial accounts, documents, including loan documents, and all other records for the project and to make them available to the STATE for auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, documents and records for five years following project 4 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) termination or issuance of final payment, whichever is later.
2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost of the project in connection with such assistance that is given or used, (c) the amount and nature of that portion of the project cost supplied by other sources, and (d) any other such records that will facilitate an effective audit.
3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any books, records or reports pertaining to this contract or matters related thereto during regular office hours. The GRANTEE shall maintain and make available for inspection by the STATE accurate records of all of its costs, disbursements and receipts with respect to its activities under this contract. Such accounts, documents, and records shall be retained by the GRANTEE for at least five years following project termination or issuance of final payment, whichever is later.
4. The GRANTEE shall use a generally accepted accounting system.
I. Use of Facilities
1. The GRANTEE agrees that the GRANTEE shall operate and maintain the property acquired or developed with the GRANT MONIES, for the duration of the Contract Performance Period.
2. The GRANTEE agrees that, during the Contract Performance Period, the GRANTEE shall use the property acquired or developed with GRANT MONIES under this contract only for the purposes of this grant and no other use, sale, or other disposition or change of the use of the property to one not consistent with its purpose shall be permitted except as authorized by the STATE and the property shall be replaced with property of equivalent value and usefulness as determined by the STATE.
3. The property acquired or developed may be transferred to another entity if the successor entity assumes the obligations imposed under this CONTRACT and with the approval of STATE.
4. Any real Property (including any portion of it or any interest in it) may not be used as security for any debt or mitigation, without the written approval of the STATE provided that such approval shall not be unreasonably withheld as long as the purposes for which the Grant was awarded are maintained. Any such permission that is granted does not make the STATE a guarantor or a surety for any debt or _[f[YSf[a`' `ad VaWe [f iS[hW fZW JK7K<qJ d[YZfe fa W`XadUW bWdXad_S`UW g`VWd the Grant CONTRACT.
5 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*))
5. All real property, or rights thereto, acquired with GRANT MONIES shall be subject to an appropriate form of restrictive title, rights, or covenants approved by the STATE. If the project property is taken by use of eminent domain, GRANTEE shall reimburse STATE an amount at least equal to the amount of GRANT MONIES received from STATE or the pro-rated full market value of the real property, including improvements, at the time of sale, whichever is higher.
6. If eminent domain proceedings are initiated against GRANTEE, GRANTEE shall notify STATE within 10 days of receiving the complaint.
J. Nondiscrimination
1. The GRANTEE shall not discriminate against any person on the basis of sex, race, color, national origin, age, religion, ancestry, sexual orientation, or disability in the use of any property or facility developed pursuant to this contract.
2. The GRANTEE shall not discriminate against any person on the basis of residence except to the extent that reasonable differences in admission or other fees may be maintained on the basis of residence and pursuant to law.
3. All facilities shall be open to members of the public generally, except as noted under the special provisions of this project contract or under provisions of the enabling legislation and/or grant program.
K. Severability
If any provision of this CONTRACT or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of the CONTRACT which can be given effect without the invalid provision or application, and to this end the provisions of this CONTRACT are severable.
L. Liability
1. STATE assumes no responsibility for assuring the safety or standards of construction, site improvements or programs related to the GRANT SCOPE.
KZW JK7K<qJ d[YZfe g`VWd fZ[e 9FEKI79K fa dWh[Wi' [`ebWUf S`V SbbdahW the GRANT SCOPE and any final plans of implementation shall not give rise to any warranty or representation that the GRANT SCOPE and any plans or improvements are free from hazards or defects.
2. GRANTEE will secure adequate liability insurance, performance bond, S`V*ad afZWd eWUgd[fk `WUWeeSdk fa bdafWUf fZW >I7EK<<qe S`V JK7K<qJ interest against poor workmanship, fraud, or other potential loss associated with completion of the grant project.
M. Assignability
6 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) N[fZagf fZW id[ffW` Ua`eW`f aX fZW JK7K<' fZW >I7EK<<qJ [`fWdWef [` S`V responsibilities under this CONTRACT shall not be assignable by the GRANTEE either in whole or in part.
N. Use of Grant Monies
GRANTEE shall not use any grant funds (including any portion thereof) for the purpose of making any leverage loan, pledge, promissory note or similar financial device or transaction, without: 1) the prior written approval of the STATE; and 2) any financial or legal interests created by any such leverage loan, pledge, promissory note or similar financial device or transaction in the project property shall be completely subordinated to this CONTRACT through a Subordination Agreement provided and approved by the STATE, signed by all parties involved in the transaction, and recorded in the County Records against the fee title of the project property.
O. Section Headings
The headings and captions of the various sections of this CONTRACT have been inserted only for the purpose of convenience and are not a part of this CONTRACT and shall not be deemed in any manner to modify, explain, or restrict any of the provisions of this CONTRACT.
P. Waiver
Any failure by a party to enforce its rights under this CONTRACT, in the event of a breach, shall not be construed as a waiver of said rights; and the waiver of any breach under this CONTRACT shall not be construed as a waiver of any subsequent breach.
III. Special Provisions:
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and [`V[h[VgS^e) o<Ua`a_[U JS`Uf[a`ep dWXWde fa eS`Uf[a`e [_baeWV Tk fZW L)J) government in responeW fa Igee[Sqe SUf[a`e [` L]dS[`W' Se iW^^ Se S`k eS`Uf[a`e imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. This Executive order extends to recipients of any State Grants (Grantee). Grantees include those who have contracted or will contract to receive State grants funds. Accordingly, should the State determine that a Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide the Grantee advance written notice of such termination, allowing the Grantee at least 30 calendar days to provide a written response. Termination of any contract found to be in violation of this Executive Order shall be at the sole discretion of the State. 7 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) *#)#&$&'
0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) *#)#&$&'
0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) I. RECITALS
This CONTRACT is entered into between the California Department of Parks and IWUdWSf[a` %ZWdW[`SXfWd dWXWddWV fa Se o>I7EKFI'p o;<G7IKD<EKp ad oJK7K<p& S`V City of Seal Beach (herW[`SXfWd dWXWddWV fa Se o>I7EK<<p&) The DEPARTMENT hereby grants to GRANTEE S eg_ %S^ea dWXWddWV fa Se o>I7EK DFE@<Jp& `af fa WjUWWV _$14,771___, subject to the terms and conditions of this AGREEMENT and the 2019/20 California State Budget, Chapter 23, statutes of 2019, Item number n 3790-1011-6088 (appropriation chapter and budget item number hereinafter referred to as oG<I 97G@K7 >I7EKp). These funds shall be used for completion of the GRANT SCOPE(S).
The Grant Performance Period is from _July 01, 2018_ to _June 30, 2028_.
II. GENERAL PROVISIONS
A. Definitions
As used in this CONTRACT, the following words shall have the following meanings:
1. KZW fWd_ o79Kp _WS`e fZW 9S^[Xad`[S ;dagYZf' NSfWd' GSd]e 9^[_SfW' 9aSefS^ Protection, and Outdoor Access for All Act of 2018, as referred to in section I of this CONTRACT.
2. KZW fWd_ o7GGC@97K@FEp _WS`e fZW [`V[h[VgS^ bda\WUf 7GGC@97K@FE bSU]Wf Xad S project pursuant to the enabling legislation and/or grant program process guide requirements.
3. KZW fWd_ o;<G7IKD<EKp ad oJK7K<p _WS`e fZW 9S^[Xad`[S ;WbSdf_W`f aX GSd]e and Recreation.
4. KZW fWd_ o;<M<CFGD<EKp _WS`e USb[fS^ [_bdahW_W`fe fa dWS^ bdabWdfk Tk means of, but not limited to, construction, expansion, and/or renovation, of permanent or fixed features of the property.
5. KZW fWd_ o>I7EK<<p _WS`e fZW bSdfk VWeUd[TWV Se the GRANTEE in Section I of this CONTRACT.
6. KZW fWd_ o>I7EK J9FG<p _WS`e fZW [fW_e ^[efWV [` fZW >I7EK J9FG<*9aef Estimate Form or acquisition documentation found in each of the APPLICATIONS submitted pursuant to this grant.
7. KZW fWd_ oGIF9<;LI7C >L@;<p means the document identified as the oGdaUWVgdS^ >g[VW Xad 9S^[Xad`[S ;dagYZf' NSfWd' GSd]e' 9^[_SfW' 9aSefS^ GdafWUf[a`' S`V FgfVaad 7UUWee =ad 7^^ 7Uf aX -+,3 GWd 9Sb[fS GdaYdS_)p KZW 1 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) PROCEDURAL GUIDE provides the procedures and policies controlling the administration of the grant.
B. Project Execution
1. Subject to the availability of GRANT MONIES, the STATE hereby grants to the GRANTEE a sum of money not to exceed the amount stated in Section I of this CONTRACT, in consideration of, and on condition that, the sum be expended in carrying out the purposes as set forth in the scope described in the enabling legislation and referenced in the APPLICATION, Section I of this CONTRACT, and under the terms and conditions set forth in this CONTRACT.
The GRANTEE shall assume any obligation to furnish any additional funds that may be necessary to complete the GRANT SCOPE(S).
The GRANTEE agrees to submit any change or alteration from the original GRANT SCOPE(S) in writing to the STATE for prior approval. This applies to any and all changes that occur after STATE has approved the APPLICATION. Changes in the GRANT SCOPE(S) must be approved in writing by the STATE.
2. The GRANTEE shall complete the GRANT SCOPE(S) in accordance with the time of the Performance Period set forth in Section I of this CONTRACT, and under the terms and conditions of this CONTRACT.
3. The GRANTEE shall comply with the California Environmental Quality Act (Public Resources Code, Section 21000, et seq., Title 14, California Code of Regulations, Section 15000 et seq.).
4. The GRANTEE shall comply with all applicable current laws and regulations affecting DEVELOPMENT projects, including, but not limited to, legal requirements for construction contracts, building codes, health and safety codes, and laws and codes pertaining to individuals with disabilities, including but not limited to the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and the California Unruh Act (California Civil Code §51 et seq.).
C. Project Costs
1. GRANTEE agrees to abide by the PROCEDURAL GUIDE.
2. GRANTEE acknowledges that STATE may make reasonable changes to its procedures as set forth in the PROCEDURAL GUIDE. If STATE makes any changes to its procedures and guidelines, STATE agrees to notify GRANTEE within a reasonable time.
D. Project Administration
1. If GRANT MONIES are advanced for DEVELOPMENT projects, the advanced funds may be placed in an interest bearing account until expended. Interest earned on the advanced funds shall be used on the project as approved by the STATE. If grant monies are advanced and not expended, the unused portion of the grant and 2 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) any interest earned shall be returned to the STATE within 60 days after project completion or end of the Grant Performance Period, whichever is earlier.
2. The GRANTEE shall submit written project status reports within 30 calendar days after the STATE has made such a request. In any event, the GRANTEE shall provide the STATE a report showing total final project expenditures within 60 days of project completion or the end of the grant performance period, whichever is earlier. The Grant Performance Period is identified in Section I of this CONTRACT.
3. The GRANTEE shall make property or facilities acquired and/or developed pursuant to this contract available for inspection upon request by the STATE.
E. Project Termination
1. Project Termination refers to the non-completion of a GRANT SCOPE. Any grant funds that have not been expended by the GRANTEE shall revert to the STATE.
2. The GRANTEE may unilaterally rescind this CONTRACT at any time prior to the commencement of the project. The commencement of the project means the date of the letter notifying GRANTEE of the award or when the funds are appropriated, whichever is later. After project commencement, this CONTRACT may be rescinded, modified or amended only by mutual agreement in writing between the GRANTEE and the STATE, unless the provisions of this CONTRACT provide that mutual agreement is not required.
3. Failure by the GRANTEE to comply with the terms of the (a) PROCEDURAL GUIDE, (b) any legislation applicable to the ACT, (c) this CONTRACT as well as any other grant contracts, specified or general, that GRANTEE has entered into with STATE, may be cause for suspension of all obligations of the STATE unless the STATE determines that such failure was due to no fault of the GRANTEE. In such case, STATE may reimburse GRANTEE for eligible costs properly incurred in performance of this CONTRACT despite non-performance of the GRANTEE. To qualify for such reimbursement, GRANTEE agrees to mitigate its losses to the best of its ability.
4. Any breach of any term, provision, obligation or requirement of this CONTRACT by the GRANTEE shall be a default of this CONTRACT. In the case of any default by GRANTEE, STATE shall be entitled to all remedies available under law and equity, including but not limited to: a) Specific Performance; b) Return of all GRANT MONIES; c) Payment to the STATE of the fair market value of the project property or the actual sales price, whichever is higher; and d) Payment to the STATE of the costs of enforcement of this CONTRACT, including but not limited to court and arbitration costs, fees, expenses of litigation, and reasonable attorney fees.
5. The GRANTEE and the STATE agree that if the GRANT SCOPE includes DEVELOPMENT, final payment may not be made until the work described in the GRANT SCOPE is complete and the GRANT PROJECT is open to the public.
F. Budget Contingency Clause
3 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) If funding for any fiscal year is reduced or deleted by the budget act for purposes of this program, the STATE shall have the option to either cancel this contract with no liability occurring to the STATE, or offer a CONTRACT amendment to GRANTEE to reflect the reduced grant amount. This Paragraph shall not require the mutual agreement as addressed in Paragraph E, provision 2, of this CONTRACT.
G. Hold Harmless
1. The GRANTEE shall waive all claims and recourse against the STATE including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this CONTRACT except claims arising from the concurrent or sole negligence of the STATE, its officers, agents, and employees.
2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, damages, costs, expenses or liability costs arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of the property described as the project which claims, demands or causes of action arise under California Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of the STATE, its officers, agents, or employees.
3. The GRANTEE agrees that in the event the STATE is named as codefendant under the provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the STATE of such fact and shall represent the STATE in the legal action unless the STATE undertakes to represent itself as codefendant in such legal action in which event the GRANTEE SYdWWe fa bSk fZW JK7K<qe litigation costs, expenses, and reasonable attorney fees.
4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction.
Neither party shall request a jury apportionment.
5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, costs, expenses or liability costs arising out of legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE acknowledges that it is solely responsible for compliance with items to which it has certified.
H. Financial Records
1. The GRANTEE shall maintain satisfactory financial accounts, documents, including loan documents, and all other records for the project and to make them available to the STATE for auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, documents and records for five years following project 4 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) termination or issuance of final payment, whichever is later.
2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost of the project in connection with such assistance that is given or used, (c) the amount and nature of that portion of the project cost supplied by other sources, and (d) any other such records that will facilitate an effective audit.
3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any books, records or reports pertaining to this contract or matters related thereto during regular office hours. The GRANTEE shall maintain and make available for inspection by the STATE accurate records of all of its costs, disbursements and receipts with respect to its activities under this contract. Such accounts, documents, and records shall be retained by the GRANTEE for at least five years following project termination or issuance of final payment, whichever is later.
4. The GRANTEE shall use a generally accepted accounting system.
I. Use of Facilities
1. The GRANTEE agrees that the GRANTEE shall operate and maintain the property acquired or developed with the GRANT MONIES, for the duration of the Contract Performance Period.
2. The GRANTEE agrees that, during the Contract Performance Period, the GRANTEE shall use the property acquired or developed with GRANT MONIES under this contract only for the purposes of this grant and no other use, sale, or other disposition or change of the use of the property to one not consistent with its purpose shall be permitted except as authorized by the STATE and the property shall be replaced with property of equivalent value and usefulness as determined by the STATE.
3. The property acquired or developed may be transferred to another entity if the successor entity assumes the obligations imposed under this CONTRACT and with the approval of STATE.
4. Any real Property (including any portion of it or any interest in it) may not be used as security for any debt or mitigation, without the written approval of the STATE provided that such approval shall not be unreasonably withheld as long as the purposes for which the Grant was awarded are maintained. Any such permission that is granted does not make the STATE a guarantor or a surety for any debt or _[f[YSf[a`' `ad VaWe [f iS[hW fZW JK7K<qJ d[YZfe fa W`XadUW bWdXad_S`UW g`VWd the Grant CONTRACT.
5 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*))
5. All real property, or rights thereto, acquired with GRANT MONIES shall be subject to an appropriate form of restrictive title, rights, or covenants approved by the STATE. If the project property is taken by use of eminent domain, GRANTEE shall reimburse STATE an amount at least equal to the amount of GRANT MONIES received from STATE or the pro-rated full market value of the real property, including improvements, at the time of sale, whichever is higher.
6. If eminent domain proceedings are initiated against GRANTEE, GRANTEE shall notify STATE within 10 days of receiving the complaint.
J. Nondiscrimination
1. The GRANTEE shall not discriminate against any person on the basis of sex, race, color, national origin, age, religion, ancestry, sexual orientation, or disability in the use of any property or facility developed pursuant to this contract.
2. The GRANTEE shall not discriminate against any person on the basis of residence except to the extent that reasonable differences in admission or other fees may be maintained on the basis of residence and pursuant to law.
3. All facilities shall be open to members of the public generally, except as noted under the special provisions of this project contract or under provisions of the enabling legislation and/or grant program.
K. Severability
If any provision of this CONTRACT or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of the CONTRACT which can be given effect without the invalid provision or application, and to this end the provisions of this CONTRACT are severable.
L. Liability
1. STATE assumes no responsibility for assuring the safety or standards of construction, site improvements or programs related to the GRANT SCOPE.
KZW JK7K<qJ d[YZfe g`VWd fZ[e 9FEKI79K fa dWh[Wi' [`ebWUf S`V SbbdahW the GRANT SCOPE and any final plans of implementation shall not give rise to any warranty or representation that the GRANT SCOPE and any plans or improvements are free from hazards or defects.
2. GRANTEE will secure adequate liability insurance, performance bond, S`V*ad afZWd eWUgd[fk `WUWeeSdk fa bdafWUf fZW >I7EK<<qe S`V JK7K<qJ interest against poor workmanship, fraud, or other potential loss associated with completion of the grant project.
M. Assignability
6 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) N[fZagf fZW id[ffW` Ua`eW`f aX fZW JK7K<' fZW >I7EK<<qJ [`fWdWef [` S`V responsibilities under this CONTRACT shall not be assignable by the GRANTEE either in whole or in part.
N. Use of Grant Monies
GRANTEE shall not use any grant funds (including any portion thereof) for the purpose of making any leverage loan, pledge, promissory note or similar financial device or transaction, without: 1) the prior written approval of the STATE; and 2) any financial or legal interests created by any such leverage loan, pledge, promissory note or similar financial device or transaction in the project property shall be completely subordinated to this CONTRACT through a Subordination Agreement provided and approved by the STATE, signed by all parties involved in the transaction, and recorded in the County Records against the fee title of the project property.
O. Section Headings
The headings and captions of the various sections of this CONTRACT have been inserted only for the purpose of convenience and are not a part of this CONTRACT and shall not be deemed in any manner to modify, explain, or restrict any of the provisions of this CONTRACT.
P. Waiver
Any failure by a party to enforce its rights under this CONTRACT, in the event of a breach, shall not be construed as a waiver of said rights; and the waiver of any breach under this CONTRACT shall not be construed as a waiver of any subsequent breach.
III. Special Provisions:
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and [`V[h[VgS^e) o<Ua`a_[U JS`Uf[a`ep dWXWde fa eS`Uf[a`e [_baeWV Tk fZW L)J) government in responeW fa Igee[Sqe SUf[a`e [` L]dS[`W' Se iW^^ Se S`k eS`Uf[a`e imposed under state law. The EO directs state agencies to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. This Executive order extends to recipients of any State Grants (Grantee). Grantees include those who have contracted or will contract to receive State grants funds. Accordingly, should the State determine that a Grantee is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. The State shall provide the Grantee advance written notice of such termination, allowing the Grantee at least 30 calendar days to provide a written response. Termination of any contract found to be in violation of this Executive Order shall be at the sole discretion of the State. 7 0;4=3769 19>58;<5 20, '.%+')/("+'(0"(%1/"--(("(%%0%%(*-*)) *#)#&$&'
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CITY COUNCIL
FEBRUARY 26, 2024
Agenda Item K
AGENDA STAFF REPORT
DATE: February 26, 2024
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Iris Lee, Director of Public Works
SUBJECT: Proposition 218 Protest Public Hearing – Proposed Water and Sewer Rates Adjustment: Staff Recommendation to (1) Conclude Pending Majority Protest Process Without Action on the Proposed Rates, (2) Set New Public Hearing Date for Consideration of Water and Sewer Rates Adjustment Based on Completed Rate Study, (3) Provide Notice to Customers and Record Owners of New Public Hearing and Majority
Protest Proceedings, and (4) Adopt Procedures Applicable to the Conduct of the New Public Hearing and Majority
Protest Process
________________________________________________________________ SUMMARY OF REQUEST:
1. That the City Council re-open the public hearing that was opened on February 12, 2024 and continued to February 26, 2024, take any remaining public comments, close the public hearing, conclude the pending majority protest process for the water and sewer rates adjustment, and take no further action to adopt the rates adjustment pursuant to the pending process; and,
2. Adopt Resolution 7496 to: (1) set a new public hearing to consider the proposed water and sewer rates adjustment and associated rate study; and (2) authorize the City Manager to notify customers and record owners of the proposed water and sewer rates adjustment in accordance with Proposition 218; and,
3. Adopt Resolution 7497 to adopt procedures applicable to the conduct of the public hearing majority protest proceedings.
BACKGROUND AND ANALYSIS:
Background:
On February 12, 2024, the City Council opened a public hearing to consider proposed adjustments to water and sewer rates based on a rate study dated
December 28, 2023. The proposed rates are outlined in the rate study, a copy of which is attached to this report. The City Council received public comment and accepted protests during the public hearing, then voted unanimously to continue the public hearing to February 26, 2024.
Following the February 12, 2024 public hearing, City staff carefully evaluated the public comments and considered options to address those comments. Some speakers requested more time to evaluate the proposed rates adjustment and rate study. Others requested additional notice about the proposed rates adjustment and information about how to submit a protest. Residents of Leisure World requested greater participation in the majority protest process.
Staff believes that these comments are best addressed by closing the public hearing and concluding the pending majority protest process, setting a new public hearing in May 2024 and providing notice to a greater segment of the City to include customers, record owners of parcels subject to the water or sewer charge and Leisure World co-op residents about the hearing and who can participate in the majority protest process.
Leisure World:
With respect to Leisure World, the City Attorney’s Office spoke with representatives of the Golden Rain Foundation’s finance department in order to better understand Leisure World’s ownership structure and parcelization. The following information was provided to the City Attorney’s Office:
• Leisure World is comprised of 16 mutuals: 15 co-ops and 1 condominium.1 • Each of the 15 co-op mutuals is comprised of between 2 and 17 parcels of real property, for a total of 109 parcels.
o The 15 co-ops are comprised of 6,482 units, and residents purchase stock in the applicable co-op, but do not own their individual unit and the mutual corporation is the record owner of the parcels. o The condominium is comprised of 126 individually-owned units, each of which is assigned an assessor’s parcel number.
• The Golden Rain Foundation owns 14 separate parcels.
• In total, Leisure World is comprised of 249 parcels.
• The Golden Rain Foundation is the only water and sewer customer within Leisure World, meaning that none of the residents have a water or sewer account and, therefore, are not directly responsible to pay the water or sewer charges to the City.
Proposition 218 requires notices to be provided to “record owners” of property that receive water and/or sewer service (“Identified Parcels”). In addition, it requires the City to count written protests from record owners of Identified Parcels and persons directly responsible for the bill (“customers”) in determining the existence 1 There is no “Mutual 13” in Leisure World due to the number 13 being perceived as bad luck.
of a majority protest, but only one protest may be counted for each parcel.
Accordingly, a maximum of 249 written protests may be counted in connection with the 249 parcels in Leisure world:
• 14 from the Golden Rain Foundation
• 109 from the mutuals
• 126 from each individual owner of a condo unit
As the only customer, the Golden Rain Foundation may also submit a written protest in connection with one or more of the Identified Parcels.
City staff had previously noticed the co-op Mutuals and Golden Rain Foundation, as the “record owners” within Leisure World. In order to better inform residents throughout Leisure World, City staff proposes to go beyond the requirements of Proposition 218 and provide a new notice to shareholders of co-op units, all condominium owners, each co-op Mutual, and the Golden Rain Foundation.
Shareholder information will need to be provided by the Golden Rain Foundation.
The notice along with the Procedures will explain Proposition 218’s majority protest process as it applies to Leisure World. Specifically, that each Mutual may submit one written protest per Identified Parcel owned by the Mutual, each condominium owner may submit a written protest (because each condo is a separately owned parcel), and the Golden Rain Foundation may submit a written protest for each parcel it owns, and may also submit one or more written protest as a customer (only one written protest is counted per Identified Parcel in determining the existence of a majority protest). Each co-op Mutual can determine whether to submit a written protest for the parcels its owns, and co-op shareholders should inform their Mutual or the Golden Rain Foundation of their desire for a written protest to be filed.
City staff believes that the new notice will increase the availability of information within Leisure World and enhance resident participation in the rate setting process.
New Public Hearing and Hearing Notice
Staff is proposing to re-notice the water and sewer rates adjustment and to conduct a new public hearing. As a result, staff is recommending to conclude the pending public hearing and majority protest process. The new public hearing will be conducted on May 13, 2024.
At the conclusion of the new public hearing on May 13, 2024, the City Clerk will complete the tabulation of all written protests received from record property owners of Identified Parcels, water customers, and sewer customers, including those received during the prior public hearing that concluded on February 26, 2024. Only one written protest will be counted per property parcel. The City Clerk will then report on the results to the City Council.
As of the date of this Staff Report, approximately 300 written protests have been submitted to the City as part of the current majority protest process. Staff is