The City has adopted a Reasonable Accommodations Policy that provides a procedure for receiving and resolving requests for accommodation to participate in this meeting. Please visit yubacity.net ADA & Accessibility Resources page. If you need assistance in order to attend the City Council meeting, or if you require auxiliary aids or services, e.g., hearing aids or signing services to make a presentation to the City Council, the City is happy to help. Accommodations should be requested as early as possible as additional time may be required in order to provide the requested accommodation; 72 hours in advance is suggested. Please contact City offices at (530) 822-4817 or (TTY: 530-822-4732), so such aids or services can be arranged. Requests may also be made by email at [email protected] or [email protected] or mail City Clerk, 1201 Civic Center Blvd, Yuba City, CA 95993.
AGENDA
MAY 7, 2024
REGULAR MEETING OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY AND
CITY COUNCIL
CITY OF YUBA CITY
6:00 P.M. REGULAR MEETING
COUNCIL CHAMBERS/VIRTUAL
MAYOR ● Shon Harris
VICE MAYOR ● Dave Shaw
COUNCILMEMBER ● Marc Boomgaarden
COUNCILMEMBER ● Wade Kirchner
COUNCILMEMBER ● Michael Pasquale
CITY MANAGER ● Diana Langley
CITY ATTORNEY ● Shannon L. Chaffin
1201 Civic Center Blvd
Yuba City CA 95993
Wheelchair Accessible
AGENDA
REGULAR MEETING OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY AND
CITY COUNCIL - CITY OF YUBA CITY
MAY 7, 2024
6:00 P.M. REGULAR MEETING
COUNCIL CHAMBERS/VIRTUAL
Materials related to an item on this Agenda submitted to the Council and the Successor Agency to the Redevelopment Agency after distribution of the agenda packet are available for public inspection in the City Clerk’s office at 1201 Civic Center Blvd., Yuba City, during normal business hours. Such documents are also available on the City of Yuba City’s website at www.yubacity.net, subject to staff’s availability to post the documents before the meeting.
The Council Chambers will be open for public attendance and participation. The meeting will also be live-streamed for public viewing, but not participation, at the following link:
https://yubacity-net.zoom.us/webinar/register/WN_dCUbb8hRReyJ-AiLjmjbtg. Emailed comments sent to [email protected] at least 24 hours before the meeting will be distributed to the City Council and the Successor Agency to the Redevelopment Agency prior to the meeting. Please identify the Agenda item(s) addressed in the comments.
Regular Meeting
Call to Order
Roll Call
__ Mayor Harris
__ Vice Mayor Shaw
__ Councilmember Boomgaarden
__ Councilmember Kirchner
__ Councilmember Pasquale
Invocation/Inspiration
Pledge of Allegiance to the Flag
Agenda Modifications/Approval of Agenda
Ceremonial Presentations
1. Housing Infill Analysis Project
2. Regional Waste Management Authority - SB 1383 Compliance Update
3. Sutter Animal Services Presentation
4. Potential November 2024 Revenue Measure Update
Public Communication
5. Appearance of Interested Citizens
You are welcome and encouraged to participate in this meeting. Public comment is taken on action items appearing on the Consent Calendar or Business Items on the Agenda when they are called. Public comment on any other items within the scope of the City’s jurisdiction, including items not listed on the Agenda will be considered at this time. Public comment is limited to three minutes per speaker. Members of the public submitting written requests at least 24 hours prior to the meeting will be allotted five minutes to comment per speaker. Repetitive comments may be limited, and large groups are encouraged to select representatives to express the opinions of the group.
Consent Calendar
All matters listed under Consent Calendar are considered to be routine and can be enacted in one motion. There will be no separate discussion of these items prior to the time that Council votes on the motion unless members of the City Council request specific items to be discussed or removed from the Consent Calendar for individual action.
6. Minutes from the April 16, 2024 Regular Meeting of the Successor Agency to the Redevelopment Agency and the City Council
Recommendation: Approve the Minutes from the April 16, 2024 Regular Meeting of the Successor Agency to the Redevelopment Agency and the City Council
7. Benefit Agreements
Recommendation: Adopt a Resolution to authorize continued use of benefit agreements previously approved under City Manager authority
8. Compliance Report for State Mandated Annual Fire Inspections Recommendation: Adopt a Resolution acknowledging receipt of the Yuba City Fire Department’s annual inspections report and recognizing the Department’s level of compliance with California Health and Safety Code Sections 13146.2, 13146.3, and 13146.4
9. Presentation of Investment Report – Quarter Ended March 31, 2024 Recommendation: Note & File Quarterly Investment Report
10. Agreement for Purchase and Sale of Real Property located at 454 Stevens Avenue (APN 052-401-014) to Sukhvinder Bassi and Brett Scheidel Recommendation: Adopt a Resolution authorizing the City Manager as Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City to execute an Agreement for Purchase and Sale of Real Property located at 454 Stevens Avenue (APN 052-401-014), and all other necessary documents, in the amount of $40,000 to Sukhvinder Bassi and Brett Scheidel, and authorize the Finance Director to remit the proceeds to the Sutter County Auditor-Controller for distribution to the taxing entities per the Long Range Property Management Plan
11. Agreement for Purchase and Sale of 356 Wilbur Avenue (APN 052-401-009) to Sukhvinder Bassi and Brett Scheidel
Recommendation: Adopt a Resolution authorizing the City Manager to execute an Agreement for Purchase and Sale of Real Property located at 356 Wilbur Avenue (APN 052-401-009), and all other necessary documents, in the amount of $40,000 to Sukhvinder Bassi and Brett Scheidel, and authorize the Finance Director to place sale proceeds in the General Fund
12. Agreement for Purchase and Sale of Real Property located at the northwest corner of Percy Avenue and Plumas Boulevard (APN 053-194-013) to Gursharan Mann
Recommendation: Adopt a Resolution authorizing the City Manager as Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City to execute an Agreement for Purchase and Sale of Real Property located at the northwest corner of Percy Avenue and Plumas Boulevard (APN 053-194-013), and all other necessary documents, in the amount of $67,500 to Gursharan Mann, and authorize the Finance Director to remit the proceeds to the Sutter County Auditor-Controller for distribution to the taxing entities per the Long Range Property Management Plan
13. Agreement for Purchase and Sale of 265 Percy Avenue (APN 053-220-030) to Gursharan Mann
Recommendation: Adopt a Resolution authorizing the City Manager to execute an Agreement for Purchase and Sale of Real Property located at 265 Percy Avenue (APN 053-220-030), and all other necessary documents, in the amount of $62,500 to Gursharan Mann, and authorize the Finance Director to place sale proceeds in the General Fund
14. Agreement for Purchase and Sale of Real Property located at the southwest corner of C Street and Wilbur Avenue (APN 052-380-017) to Sutter Valley Medical Foundation
Recommendation: Adopt a Resolution authorizing the City Manager as Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City to execute an Agreement for Purchase and Sale of Real Property located at the southwest corner of C Street and Wilbur Avenue (APN 052-380-017), and all other necessary documents, in the amount of $335,000 to Sutter Valley Medical Foundation, dba Sutter Medical Foundation, and authorize the Finance Director to remit the proceeds to the Sutter County Auditor-Controller for distribution to the taxing entities per the Long Range Property Management Plan
15. Sutter County 2023 CDBG - Pathway to Work Program - Extension Recommendation: Adopt a Resolution amending the Agreement between the City of Yuba City and Sutter County for the Pathway to Work Program, to allow for an extension to expend the 2023 CDBG funding allocation
16. Fleet Maintenance Budget Adjustments
Recommendation: Authorize the Finance Director to make a supplemental appropriation and related transfers of $200,000 from various City divisions to the Fleet Maintenance Division operating budget (Account No. 6605) for vehicle and equipment services for the remainder of Fiscal Year 23/24
17. First Amended Improvement Agreement Final Map of Harter Marketplace Recommendation: Adopt a Resolution authorizing the City Manager to approve the execution of the First Amended Improvement Agreement Final
Map of Harter Marketplace with Harter Packing Group, LLC, a California Limited Liability Company and Dharni Lada Yuba City, LLC, a California Limited Liability Company [Development is located on the west side of the Harter Parkway and north of State Route 20]
18. Sutter Bike Path Extension - Grant of Easement Deed Recommendation: Adopt a Resolution authorizing the Mayor to execute an Easement Deed granting an easement to PG&E for operations and maintenance of their facilities and associated equipment on City-owned property
19. Sutter County Planning Commissioner Appointment
Recommendation: Reappoint Karri Campbell to the Yuba City Planning Commission for a third term
20. Code Enforcement Officer Safety Guidelines
Recommendation: Adopt a Resolution of the City Council of the City of Yuba City establishing Code Enforcement Officer Safety Guidelines pursuant to State Senate Bill 296
Business Items
21. Tierra Buena Community – Traffic Ad Hoc Committee
Recommendation: Establish and designate two (2) Councilmembers to steer the Tierra Buena Community Ad Hoc Committee for a period not to exceed one (1) year, unless additional action is taken by Council
22. Recycling Industries – Amendment to Use Permit (UP 17-05) and Development Plan (DP 17-03)
Recommendation: Adopt a Resolution of the City Council of the City of Yuba City denying an amendment to Use Permit 17-05 and Development Plan 17-03 based on the findings contained in the Resolution; Recycling Industries; located at 140 Epley Drive, Assessor’s Parcel 54-083-026
23. Boat, Trailer, RV Parking Ordinance Update
Recommendation: A. Conduct a Public Hearing; then
B. Introduce an Ordinance of the City Council of the City of Yuba City amending regulations for the parking of boats, trailers, and recreational vehicles in one and two family residential districts by title only and waive the first reading, and approve exemptions pursuant to CEQA Guidelines Section 15061(b)(3) and 15301 (Existing Facilities)
24. City-County Cooperative Agreement - FY 2023-24 Sutter County Road Overlay Project
Recommendation: Adopt a Resolution authorizing the execution of a Cooperative Agreement with the County of Sutter for the roadway and roadway component improvements associated with the FY 2023- 24 Sutter County Road Overlay Project
25. Police Department Evidence Storage Building (1545 Poole Blvd, Yuba City, CA 95993) - Contract Award
Recommendation: Adopt a Resolution which takes the following actions:
A. Awards a construction contract to Frank Webb Construction of Wheatland, CA in the amount of their total base bid of
$797,110.89, and adopts a CEQA Class 3 Categorical
Exemption
B. Authorizes the City Manager to execute the contract on behalf of the City, subject to review and approval as to legal form by the City Attorney
C. Authorize the Finance Director to make a supplemental appropriation in the amount of $155,000.00 from unallocated General Funds to CIP Account No. 901278 (Police Department Evidence Storage Building)
Future Agenda Items
26. Future Agenda Items
Reports and Communications
The following reports and communication items are provided for the Council’s information. No action can be taken on items under this section unless the Council agrees to include it on a subsequent agenda
27. City Manager's Report
28. City Council Reports
Adjournment
Ashley Potočnik, Development Liaison, will present on the Infill Housing Analysis conducted over the last two years in collaboration with SACOG. James Corless will be attending the meeting as well and plans to briefly address the Council following the presentation.
apotoč[email protected] | (office) 530-822-5195 | (mobile) 530-845-2532
Sutter Animal Services Authority
Presentation by:
Megan Anderson
Animal Services Manager
Potential November 2024
Revenue Measure Update
Presentation by:
Diana Langley
City Manager
CITY OF YUBA CITY
Public Communication
Members of the public may address the City Council on items of interest that are within the City’s jurisdiction. Individuals addressing general comments are encouraged to limit their statements.
Procedure
You are welcome and encouraged to participate in this meeting. Complete a Speaker Card located in the lobby and give to the Clerk, public comment is taken on action items appearing on the Consent Calendar or Business Items on the Agenda when they are called. Public comment on any other items within the scope of the City’s jurisdiction, including items not listed on the Agenda, will be considered at this time.
When a matter is announced, wait to be recognized by the Mayor to provide your comments to the Council. Comments should begin by providing your name and place of residence. A three minute limit is requested when addressing Council.
Request for additional time to address Council
Members of the public submitting written requests at least 24 hours prior to the meeting will be allotted 5 minutes to comment per speaker. Repetitive comments may be limited, and large groups are encouraged to select representatives to express the opinions of the group.
Procedure
When requesting to comment, please indicate your name and the topic and mail to:
City of Yuba City
Attn: City Clerk
1201 Civic Center Blvd
Yuba City CA 95993
Or email to:
Jackie Sillman, City Clerk
[email protected]
Agenda Item 6
CITY OF YUBA CITY
STAFF REPORT
Date: May 7, 2024
To: Honorable Mayor & Members of the City Council;
From: Administration Department
Presentation By: Ciara Wakefield, City Clerk Administrator Summary
Subject: Minutes from the April 16, 2024 Regular Meeting of the Successor Agency to the Redevelopment Agency and the City Council
Recommendation: Approve the Minutes from the April 16, 2024 Regular Meeting of the Successor Agency to the Redevelopment Agency and the City Council Fiscal Impact: None
Attachments:
1. 04-16-2024 Regular Meeting Minutes (DRAFT)
Prepared By: Submitted By:
Ciara Wakefield
City Clerk Administrator
Diana Langley
City Manater
ATTACHMENT 1
MINUTES (DRAFT)
REGULAR MEETING OF THE SUCCESSOR AGENCY
TO THE REDEVELOPMENT AGENCY AND
CITY COUNCIL - CITY OF YUBA CITY
APRIL 16, 2024
6:00 P.M. REGULAR MEETING
COUNCIL CHAMBERS/VIRTUAL
Regular Meeting
The Regular Meeting of the City Council and the Successor Agency to The Redevelopment Agency was called to order by Vice-Mayor Shaw at 6:00 PM Roll Call
Present: Councilmembers Kirchner, Pasquale, and Vice-Mayor Shaw
Absent: Councilmembers Boomgaarden and Mayor Harris
Invocation/Inspiration
Spencer Fennell – Calvary Christian Center Youth Pastor Pledge of Allegiance to the Flag
Tony Kurlan
Agenda Modifications/Approval of Agenda
No changes were made
Ceremonial Presentations
1. Child Abuse Awareness Month Proclamation
Vice-Mayor Shaw presented a proclamation to Mina York, Community Engagement Coordinator for Casa de Esperanza
2. Sexual Assault Awareness Month Proclamation
Vice-Mayor Shaw presented a proclamation to Mina York, Community Engagement Coordinator for Casa de Esperanza
3. National Public Safety Telecommunicators Week Proclamation Vice-Mayor Shaw presented a proclamation to Commander Jim Runyen, Lieutenant Kim Slade, Communications Center Supervisor Deidra Geddis, and the Yuba City Dispatch team Public Communication
4. Appearance of Interested Citizens
No public comment
Consent Calendar
Councilmember Kirchner moved and Councilmember Pasquale seconded the motion to approve Consent Calendar items 5-8
5. Minutes from the April 2, 2024 Regular Meeting of the Successor Agency to the Redevelopment Agency and the City Council
Approve the minutes of the April 2, 2024 Regular Meeting of the Successor Agency to the Redevelopment Agency and the City Council
6. Proposition 1 Integrated Regional Water Management Round 2 Grant Adopt Resolution 24-034 authorizing the City Manager to enter into an Agreement with Sutter County, allowing the allocation of Proposition 1 Integrated Regional Water Management Round 2 grant funds for the City’s Spiva Avenue Water Main Replacement project
7. Spiva Avenue Waterline Replacement Project
Adopt Resolution 24-035 adopting CEQA Class 1 and Class 2 Categorical Exemptions, approving the plans and specifications for the Spiva Avenue Waterline Replacement Project and authorizing advertisement for bids on the project
8. Sale of 1480 Williamsburg Drive to Frank and Lynn Hopkins Adopt Resolution 24-036 that:
A. Authorizes the City Manager to execute an Agreement for Purchase and Sale of Real Property located at 1480 Williamsburg Drive (APN 062-250- 040), and all other necessary documents, in the amount of $28,000 to Frank and Lynn Hopkins
B. Authorizes the Finance Director to place sale proceeds in the Water Fund
9. Community Sponsorship Request
Consider the sponsorship request from Shri Guru Ravidass Temple, and if approved:
Adopt Resolution 24-037 to approve a monetary sponsorship request from the Shri Guru Ravidass Temple of $2,500.00 to assist in funding the Cultural Community Parade
The motion was passed with 3 votes [Boomgaarden & Harris absent] Business Items
There were no business items on the agenda
Future Agenda Items
10. Future Agenda Items
No suggestions were made
Reports and Communications
11. City Manager's Report
12. City Council Reports
- Councilmember Kirchner
- Councilmember Pasquale
- Vice-Mayor Shaw
Adjournment
Vice-Mayor Shaw adjourned the Regular Meeting of the City Council and the Successor Agency to The Redevelopment Agency at 6:24 PM
Agenda Item 7
CITY OF YUBA CITY
STAFF REPORT
Date: May 7, 2024
To: Honorable Mayor & Members of the City Council;
From: Human Resources Department
Presentation By: Natalie Springer, Human Resources Director Summary
Subject: Benefit Agreements
Recommendation: Adopt a Resolution to authorize continued use of benefit agreements previously approved under City Manager authority
Fiscal Impact: Benefit premiums are approved through the annual approval of the budget.
Additionally, the annual cost for each benefit vendor varies on the monthly enrollment count. It is estimated that the 2024 administrative fee for PRISM Health is $5,000, CBA is $17,100, and CalPERS Health $6,000.
Purpose:
To approve a Resolution to proactively obtain Council approval to continue to use benefit agreements that were approved under the City Manager's authority.
Council's Strategic Goal:
This staff report addresses the City Council's Strategic Goal of public safety and business friendly. Having a competitive benefits package allows the City to remain as an employer of choice and retain employees who provide service to the public.
Background:
The City is obligated to provide benefits due to the Memorandum of Understandings (MOUs) with the eight (8) bargaining units and resolution or agreements with unrepresented employee groups (Confidentials and Department Heads). Additionally, the City's Personnel Rules and Regulations, 2.07, Benefit Program, states that City Council is responsible for the implementation and modification of the compensation and benefit program.
Providing benefits is generally acceptable for large employers as it ensures the employer can compete for employees. If the City were not to provide benefits in line with other local public agencies, it would be determinantal to the recruitment and retention of employees.
While benefits are required under the MOUs, resolution or agreements, and the City Rules and Regulations, offering common benefits such as health care, dental and vision, retirement, long term and short term disability, etc. supports employees and their families. By offering essential benefits such as these, the City ensures a strong organizational foundation for recruiting and retaining staff.
The City Manager previously approved certain benefit agreements under the authority granted by the Council and consistent with the budget and MOUs approved by the City Council. However, it is anticipated that in the near future that the ongoing cost of the various benefit agreements will exceed the City Manager's authority as to each agreement. This item is before the Council for approval to continue to utilize the benefit agreements.
Retirement Contributions
As numerous public employers, the City offers retirement benefits through the California Public Employees' Retirement System (CalPERS). CalPERS plays a vital role in securing retirement for public employees across California. CalPERS does not have a direct administrative fee for retirement. The City also offers a 457 deferred compensation plan and retirement health savings (RHS) account through Mission Square.
Depending on the bargaining unit/unrepresented employee group, the City may provide a contribution to the deferred compensation plan or retirement health savings account.
In late 2023, as part of the Yuba City's Police Officers Association (POA), Police First Level Managers (PFLM), and Police Mid-Managers (PMM) MOUs, City Council approved three (3) new RHS accounts with the specific contributions identified in the MOU. With the approved MOUs, staff will establish the RHS accounts with Mission Square, resulting in three (3) new accounts under the current RHS plan.
Medical Plans
Offering medical coverage as part of permanent employment is a common benefit for a large public employer such as the City. As such, the City offers two (2) different plans based on the bargaining unit or unrepresented employee group.
The City joined the PRISM (Public Risk Innovation, Solutions, and Management) program in 2008. PRISM is a Joint Powers Authority (JPA) comprised of California counties, cities, and public agencies organized to jointly develop and fund insurance and related programs with the most favorable terms and costs. Each public entity participating in the PRISMHealth Program receives service support from a dedicated program management team. The City provides PRISMHealth to Public Employees' Union, Local #1 (Local 1), First Level Managers (FLM), Mid-Managers (MM), unrepresented Confidentials, civilian Department Heads including the Fire Chief and City Manager.
Additionally, the City is transitioning to a new third party administrator/benefit administration vendor under the PRISMHealth Program effective January 1, 2025. The PRISMHealth Program provides a limited selection of third party administrators/benefit administration vendors. For PRISMHealth, the City incurs a monthly administrative fee of $2.00 for active employees and the same rate of $2.00 for retirees. Monthly premium invoices are sent by the program for the third party administrator vendor costs.
POA, PFLM, PMM, and Police Chief are eligible for CalPERS Health. For CalPERS Health, the City incurs a monthly administrative fee of 0.32% on the total active premiums and the same rate of 0.32% on the total retiree premiums. Also, please note that Police employees are eligible for PEHMCA (Public Employees' Medical & Hospital Care Act) minimum payments towards retiree medical.
Dental/Vision
Another piece of a general benefits package is dental and vision insurance for employees. The City is selfinsured for dental and vision, meaning the City doesn't contract with a third-party insurance company. The City utilizes a third party administrator, CBA (Custom Benefit Administrators), for administration of dental and vision claims. For CBA, the City incurs a monthly administrative fee of $4.90 for active employees and the same rate of $4.90 for retirees.
Disability Programs
On February 20, 2024, the City Council authorized staff to transition to new external short-term disability
programs. State Disability Insurance (SDI) was selected by the bargaining units for for Local 1, FLM, and civilian employees in PFLM and UNUM was selected for MM and unrepresented employees. Currently, the City maintains life insurance, accidental death & dismemberment (AD&D) and long-term disability insurance for City employees (benefits provided vary by bargaining unit) with UNUM. According to the City's benefits broker, EPIC, UNUM does not charge any administrative fees and the rates are based on the premium cost.
Benefit Broker
The City retains a benefits broker, EPIC, that offers specialized services and cost-saving bundled services that otherwise would not be available to staff. PRISM pays EPIC commission for medical, life and disability enrollments. Part of EPIC's role is to competitively shops benefit plans for the City and serve as a resource for staff and employees on benefit questions. They also help develop strategies for an everchanging benefit horizon.
Other Benefits
The City provides other benefits to employees such as flexible spending accounts as well as other optional benefits paid for by employees, like AFLAC. A full listing of the benefits provided can be found in the City's Benefit Summaries by bargaining unit that is available on the City's website.
Analysis:
During the transition to a new external short-term disability programs and a new third party administrator, staff reviewed multi-year professional services with benefit vendors to determine if the combined total possibly exceeded any authorization levels identified in the purchasing policy.
In conjunction with City Attorney consultation, Staff prepared this Resolution to ensure multi-year benefit vendor agreements are contained in one Resolution for Council approval for the identified benefit providers:
• PRISM - PRISMHealth Program Third Party Administrator • UNUM - Life insurance, AD&D short-term and long-term disability insurance • Combined Benefit Administrator - dental/vision
• CalPERS retirement and medical
• MissionSquare Retirement
Fiscal Impact:
Benefit premiums are approved through the annual approval of the budget. Additionally, the annual cost for each benefit vendor varies on the monthly enrollment count. It is estimated that the 2024 administrative fee for PRISM Health is $5,000, CBA is $17,100, and CalPERS Health $6,000.
Alternatives:
If this Resolution is not approved, this will have an immediate impact on employees' benefits. City Council will need to provide direction to Staff to ensure this decision doesn't impact the stability of the organization.
Recommendation:
Adopt a Resolution to authorize continued use of benefit agreements previously approved under City Manager authority.
Attachments:
1. Benefit Vendors Resolution Final
Prepared By: Submitted By:
Sheleen Loza
Administrative Analyst
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO. _______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY
AUTHORIZING THE CONTINUED USE OF PROFESSIONAL SERVICES
AGREEMENTS PREVIOUSLY AUTHORIZED UNDER CITY MANAGER
AUTHORITY
WHEREAS, City Council adopted Purchasing Policy that provides direction to staff on all professional service and sole source agreements and;
WHEREAS, such process promote the efficient use of public resources, and is in the best interest of the City and;
WHEREAS, the City Manager previously approved certain agreements under the authority granted by the Council and consistent with the budget and Memorandums of Understanding approved by the City Council; and
WHEREAS, it is anticipated that in the near future that the ongoing cost of the benefit agreements will exceed the City Manager's authority; and WHEREAS, the City Council now desires to approve the continued use of the professional services agreements for benefits as set forth herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yuba City as follows:
1) The City Council approves the ongoing use of the following benefit agreements that were previously approved by the City Manager under the City Manager’s authority:
a. PRISMHealth Program Third Party Administrator
b. Combined Benefit Administrator
c. UNUM
d. CalPERS
e. MissionSquare
2) The City Council finds that the pre-authorization as provided for herein promotes the efficient use of public resources, and is in the best interest of the City.
The foregoing Resolution of the City Council of the City of Yuba City was duly introduced, passed and adopted at a regular meeting thereof held on the 7nd day of May 2024.
AYES:
NOES:
ABSENT:
________________________
Shon Harris, Mayor
ATTEST:
_______________________
Ciara Wakefield, Deputy City Clerk
APPROVED AS TO FORM
COUNCIL FOR YUBA CITY:
__________________________
Shannon Chaffin, City Attorney
Aleshire & Wynder, LLP
Agenda Item 8
CITY OF YUBA CITY
STAFF REPORT
Date: May 7, 2024
To: Honorable Mayor & Members of the City Council;
From: Fire Department
Presentation By: Jesse Alexander, Fire Chief
Summary
Subject: Compliance Report for State Mandated Annual Fire Inspections Recommendation: Adopt a Resolution acknowledging receipt of the Yuba City Fire Department’s annual inspections report and recognizing the Department’s level of compliance with California Health and Safety Code Sections 13146.2, 13146.3, and 13146.4 Fiscal Impact: None
Purpose:
Provide a review of the Fire Department’s efforts to meet its mandated annual Educational and Residential inspection obligations.
Council's Strategic Goal:
This report addresses the City Council’s Public Safety Strategic Goal, by performing life safety inspections by the Fire Department.
Background:
California Senate Bill 1205 (SB 1205) was signed into law on September 27, 2018, after the tragic Ghost Ship Fire in December 2016 brought national attention to California and put a spotlight on fire safety laws as well as the performance of fire inspections. This law amends preceding law such that an annual report on state mandated inspections is now required to be submitted to the governing body of each jurisdiction having authority for inspections. The law also requires the report to be delivered when the City Council discusses its annual budget or at another time determined by the City Council. City Council shall acknowledge receipt of the report made in a Resolution or a similar formal document.
State mandated inspections were enacted by California Health & Safety Code Sections 13146.2 and 13146.3 and requires all fire departments that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, lodging house, apartment house, and certain residential care facilities for compliance with building standards. California Health & Safety Code Section 13146.4 requires all fire departments that provide fire protection services to report annually to its administering authority on its compliance with sections 13146.2 & 13146.3 Although there are no penalties identified in the law, adoption of this Resolution will establish Yuba
City’s intent to fulfill the requirements of SB 1205 by acknowledging the Fire Department’s compliance with California Health and Safety Code Sections 13146.2 and 13146.3, which identifies the state mandated inspections.
Analysis:
Annually, the Fire Department is required to conduct inspections of all public and private schools, hotels, motels, lodging houses, and apartment/condominium buildings, in accordance with California Health and Safety Code Section 13146.2 and 13146.3. The purpose of annual fire inspections is to mitigate known hazards, reduce risk to the community, and ensure reasonable compliance with the California Fire Code. The Fire Department has completed its initial annual inspection of all mandated buildings that are included within the mandate for fiscal year 2023-2024.
California Health and Safety Code Section 13146.2 mandates that the local fire department inspect all hotels, motels, and lodging houses once annually. The Fire Department has inspected (11) hotels/motels, which includes an additional (5) buildings associated with these facilities.
California Health and Safety Code Section 13146.2 also mandates that the local fire department inspect all apartment buildings. The California Building Code also specifies that condominiums should be considered apartments for building code application. An apartment shall consist of three or more attached units, and excludes all duplex-style buildings. The Fire Department has inspected (305) apartment complexes, which includes an additional (75) buildings associated with these facilities.
California Health and Safety Code Section 13146.3 mandates that the local Fire Department inspect all public, private and commercial day care schools once annually. The Fire Department has inspected (45) school facilities that total (244) buildings within these facilities.
In total, the Fire Department has conducted (361) mandated annual inspections during the 2023-2024 fiscal year, and has completed initial inspections of all known buildings and structures required to be inspected within the California Health and Safety Code mandate. Furthermore, the acceptance of this compliance report and the recommended resolution fulfill the statutory requirements contained in California Health and Safety Code Section 13146.2, 13146.3, and 13146.4, as amended by SB 1205.
Fiscal Impact:
None
Alternatives:
1. Do not adopt the Resolution
2. Provide further direction to staff
Recommendation:
Adopt a Resolution acknowledging receipt of the Yuba City Fire Department’s annual inspections report and recognizing the Department’s level of compliance with California Health and Safety Code Sections 13146.2, 13146.3 and 13146.4.
Attachments:
1. SB 1205 Resolution 2024
2. Senate Bill 1205
3. Health & Safety Code Sec 13146.4
Prepared By: Submitted By:
Jesse Frias
Fire Marshal
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO. ___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY ACKNOWLEDGING THE YUBA CITY FIRE DEPARTMENT’S COMPLIANCE WITH SECTIONS 13146.2, 13146.3, and 13146.4 OF THE CALIFORNIA
HEALTH AND SAFETY CODE
WHEREAS, California Health and Safety Code Section 13146.4 requires all fire departments that provide fire protection services to report annually to its administering authority on its compliance with Sections 13146.2 and 13146.3; and
WHEREAS, California Health and Safety Code Sections 13146.2 and 13146.3 require all fire departments that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, lodging house, and apartment house for compliance with building standards; and
WHEREAS, the City Council of Yuba City intends this Resolution to fulfill the requirements of the California Health and Safety Code regarding acknowledgment of the Yuba City Fire Department’s compliance with California Health and Safety Code Sections 13146.2, 13146.3, and 13146.4.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Yuba City expressly acknowledges the measure of compliance of the Yuba City Fire Department with the California Health and Safety Code Sections 13146.2, 13146.3, and 13146.4, and accepts the annual report from the Fire Department.
The foregoing Resolution was duly and regularly introduced, passed, and adopted by the City Council of the City of Yuba City at a regular meeting thereof held on the 7th day of May, 2024 AYES:
NOES:
ABSENT:
Shon Harris, Mayor
ATTEST:
Ciara Wakefield, City Clerk
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY:
SHANNON CHAFFIN, CITY ATTORNEY
ALESHIRE & WYNDER, LLP
ATTACHMENT 2
ATTACHMENT 3
Agenda Item 9
CITY OF YUBA CITY
STAFF REPORT
Date: May 7, 2024
To: Honorable Mayor & Members of the City Council;
From: Finance/IT Department
Presentation By: Spencer Morrison, Finance Director
Summary
Subject: Presentation of Investment Report – Quarter Ended March 31, 2024 Recommendation: Note & File Quarterly Investment Report Fiscal Impact: Informational item only
Purpose:
To provide information regarding the investment of City funds.
Council's Strategic Goal:
This staff report addresses the City Council’s Strategic Goal of fiscal responsibility.
Background:
In accordance with the City’s adopted Investment Policies, staff prepared the attached investment report for City Council review for the previous quarter (January, February, March 2024).
Analysis:
Portfolio Highlights:
• As of March 31, 2024, the City's overall investment portfolio (estimated market value) totaled $155,224,074, an increase of $10,123,765 from the previous quarter. • Notable transactions during the quarter that affected cash flow included:
1. Property tax remittance, assessments, and CSA-G revenue, $11.7 million
2. SBFCA expenses $3.4 million; revenue and assessments, $4.8 million;
3. Gas tax, SB1, TDA/LTF and other streets & roads receipts, $2.7 million;
4. Sales tax receipts, $4.6 million;
• The portfolio shows a “paper loss” of $1,072,825 as of March 31st. This represents the amount of value that the City would lose if it were to liquidate its entire portfolio at the end of the reporting period. However, such losses will not be realized if the investments are held until
maturity (which is the City’s general investment strategy). • The City’s portfolio is still replacing lower yield instruments with higher yields with each maturing bond in this fixed income market, and the overall portfolio yield increased compared to past quarters. The portfolio remains positioned for a higher yield environment by keeping the maturity dates of our purchases in a longer position, currently 1.24 weighted average years to maturity, while remaining watchful for signs of an economic shift. For the quarter ended 3/31/24, 52 investments matured or sold, partially or in whole, with an average yield of 0.97%.
Exclude asset-backed securities and six investments matured or sold with an average yield of
1.48%. These funds, along with LAIF holdings, were invested in 11 instruments with an average yield of 4.48%. The Weighted Average Yield to Maturity of the City’s total investment portfolio increased from 3.62% to 3.83% for the quarter. • The City’s cash flow needs will be met by roughly $65.3 million in liquid assets as of March 31st (approximately 42.9% of the City Held Investments portfolio value) that is currently invested in LAIF, CAMP, First American money management funds, and in the City’s Wells Fargo checking account.
Outlook: Cautiously optimistic that more than one or two rate cuts will be warranted, the City’s portfolio remains positioned for longer maturities to hang onto the higher interest revenue for as long as we can. Positive outlooks in economic growth, consumer spending, and labor markets seem to be outweighing inflation, monetary policy and financial conditions issues and fixed income yields remain strong making US Treasury Bonds attractive for the foreseeable future.
Summary Overview: The City’s investment portfolio continues to remain safe and stable. Each investment complies with state law and the City’s formal Investment Policies. Our three primary objectives for the City’s portfolio are safety, liquidity, and then yield. Staff continues to conservatively look for opportunities in today’s marketplace while remaining focused on our primary objectives.
Fiscal Impact:
Informational item only
Recommendation:
Note and file the Quarterly Investment Report for the period ending March 31, 2024.
Attachments:
1. Investment Report
Prepared By: Submitted By:
Spencer Morrison
City Treasurer
Spencer Morrison
City Treasurer
Attachment 1
City of Yuba City
Treasurer’s Quarterly
Investment Report
AS PRESCRIBED BY CALIFORNIA GOVERNMENT CODE SECTION 53646 March 31, 2024
City of Yuba City – Month-By-Month Comparison Report
March 31, 2024
The following table provides a comparison of the portfolio for the quarter ending December, and the previous quarters ended June, September, and December 2023.
Portfolio Comparison
6/30/23 9/30/23 12/31/23 3/31/24
Cost Basis $168,112,812 $151,626,311 $146,021,344 $156,296,899Estimated Market Value 164,713,193 148,653,751 145,100,309 155,224,074 Unrealized Gains/(Losses) (1) (3,399,620) (2,972,560) (921,034) (1,072,825) Liquidity 50.93% 45.14% 42.52% 42.93% Weighted Average Years: Maturity of City Held Funds 1.11 years 1.19 years 1.20 years 1.24 years LAIF Interest Rate 3.167% 3.534% 4.000% 4.300% CAMP Interest Rate 5.24% 5.24% 5.550% 5.480% Portfolio: Weighted Average Yield to Maturity at Market 3.11% 3.31% 3.62% 3.83% CPI (Annualized) 3.0% 3.7% 3.4% 3.5% Note: (1) This represents the amount of money that the City would gain (or lose) if it were to liquidate its entire portfolio at the end of the reporting period. However, such gains (or losses) will not be realized if the investments are held until maturity (which is the City’s historical investment strategy).
1
City of Yuba City – Quarterly Investment Report
March 31, 2024
Federal Home Loan Bank
2.50%
Federal Natl Mtg Assn
0.93% Federal Farm Credit Bank
3.14%
Federal Home Loan
Mortgage Corp
0.64%
US Treasury Notes
33.39%
City Held Assessment
Districts/Munis
Corporate Bonds & Asset- 1.26%
Backed Sec.
13.98%
California Asset Mgmt Program
11.18%
Local Agency Investment
Fund
27.52%
Certificates of Deposit
0.69%
Cash/Money Market
4.23%
Supranationals
0.54%
Composition of City Held Investments
2
City of Yuba City – Quarterly Investment Report
March 31, 2024
$-
$10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00
In Millions
City Held Investment Portfolio Maturity Distribution
Cash Equiv 0-6 Months 6-12 Months 1-3 Years 3+ Years
42.5%
17.3%
9.8%
20.4%
10.0%
3
City of Yuba City
Monthly Investment Statement
City Held Investments
CUSIP Maturity Coupon Yield Estimated Unrealized
No. Description of Security NO. Date Rate to Maturity Cost Basis Market Value Gain/(Loss) U.S. Consumer Price Index (Inflation) 03/01/24 3.500%
1 Local Agency Investment Fund (LAIF) N/A Daily 4.300% 4.300% $ 42,101,818 $ 41,829,972 $ (271,846)2 Calif. Asset Management Program (CAMP) N/A Daily 5.480% 5.480% $ 17,000,326 $ 17,000,326 -3 Wells Fargo Money Market & Checking Accts. N/A Daily (Sweep) 5.180% 5.180% $ 5,916,965 $ 5,916,965 -4 First American Institutional Prime 26200630S Daily 4.840% 4.840% $ 519,149 $ 519,149 -5 US Treasury Notes 912828W71 03/31/24 2.125% 1.673% $ 662,443.58 $ 650,000 (12,444)6 Federal Home Loan Bank 3130AMQQ8 04/23/24 0.350% 0.350% $ 1,500,000.00 $ 1,495,530 (4,470)7 US Treasury Notes 912828X70 04/30/24 2.000% 1.591% $ 509,003.91 $ 498,650 (10,354)8 IBM Corporate Notes 459200JY8 05/15/24 3.000% 0.538% $ 540,180.00 $ 500,489 (39,691)9 IBM Corporate Notes 459200JY8 05/15/24 3.000% 0.715% $ 535,390.00 $ 496,051 (39,339) 10 Caterpillar Mtn 14913R2L0 05/17/24 0.450% 0.497% $ 998,750.00 $ 993,490 (5,260)11 American Honda Finance Corp Med Term Notes 02665WCZ2 06/27/24 2.400% 2.430% $ 249,602.50 $ 248,140 (1,463)12 US Treasury Notes 912828XX3 06/30/24 2.000% 1.653% $ 456,714.85 $ 440,124 (16,590)13 US Treasury Notes 912828XX3 06/30/24 2.000% 1.419% $ 1,127,113.28 $ 1,086,170 (40,943)14 US Treasury Notes 912828XX3 06/30/24 2.000% 1.566% $ 422,578.13 $ 407,228 (15,350)15 US Treasury Notes 91282CEX5 06/30/24 3.000% 3.490% $ 49,574.22 $ 50,338 76416 US Treasury Notes 91282CEX5 06/30/24 3.000% 4.260% $ 2,251,214.84 $ 2,285,914 34,69917 US Treasury Notes 91282CCL3 07/15/24 0.375% 0.409% $ 649,367.41 $ 640,803 (8,565)18 US Treasury Notes 91282CCT6 08/15/24 0.375% 0.410% $ 1,198,921.88 $ 1,178,136 (20,786)19 Walt Disney Co Corporate Bonds 254687FK7 08/30/24 1.750% 1.836% $ 273,878.00 $ 270,845 (3,033)20 US Treasury Notes 912828YE4 08/31/24 1.250% 5.230% $ 3,436,031.25 $ 3,540,420 104,38921 Darrough Drive AD 09/02/24 6.000% 6.000% $ 12,246 $ 12,246 -22 Deere John Mtn 24422EVU0 09/10/24 0.625% 0.650% $ 89,941.50 $ 88,160 (1,781)23 Caterpillar Finl Mtn 14913R2P1 09/13/24 0.600% 0.650% $ 224,694.00 $ 220,100 (4,595)24 Toyota Motor Credit Corp 89236TJN6 09/13/24 0.625% 2.770% $ 522,549.50 $ 538,302 15,75225 Plumas Bank CD 269101799 09/17/24 0.000% 0.000% $ 1,049,560.48 $ 1,049,560 -26 Inter Amer Bk Mtn 4581X0DZ8 09/23/24 0.500% 0.520% $ 584,567.10 $ 571,586 (12,981)27 US Treasury Notes 912828YH7 09/30/24 1.500% 0.474% $ 154,763.67 $ 147,237 (7,527)28 Federal Farm Credit Bank 3133EMCN0 10/15/24 0.400% 0.432% $ 948,812.50 $ 925,158 (23,655)29 California St Dept Wtr Res Cent 13067WPG1 12/01/24 2.751% 1.486% $ 179,348.30 $ 167,348 (12,000)30 US Treasury Notes 912828YY0 12/31/24 1.750% 0.326% $ 1,224,794.92 $ 1,129,940 (94,855)31 US Treasury Notes 912828YY0 12/31/24 1.750% 0.180% $ 961,945.31 $ 887,447 (74,499)32 US Treasury Notes 912828YY0 12/31/24 1.750% 0.270% $ 1,092,425.78 $ 1,007,822 (84,604)33 US Treasury Notes 912828YY0 12/31/24 1.750% 0.280% $ 955,792.97 $ 881,771 (74,022)34 US Treasury Notes 912828YY0 12/31/24 1.750% 0.290% $ 424,031.25 $ 391,192 (32,839)35 US Treasury Notes 912828YY0 12/31/24 1.750% 2.940% $ 387,875.00 $ 357,836 (30,039)36 Federal Home Loan Mortgage Corp (Freddie Mac) 3137EAEP0 02/12/25 1.500% 5.280% $ 951,970.00 $ 969,110 17,14037 US Treasury Notes 91282CDZ1 02/15/25 1.500% 2.840% $ 337,927.73 $ 339,196 1,26838 American Express Co Corp Note 025816CQ0 03/04/25 2.250% 2.290% $ 79,919.20 $ 77,752 (2,167) March 2024
4
City of Yuba City
Monthly Investment Statement
City Held Investments
CUSIP Maturity Coupon Yield Estimated Unrealized
No. Description of Security NO. Date Rate to Maturity Cost Basis Market Value Gain/(Loss) March 2024
39 John Deere Med Term Notes 24422EWB1 03/07/25 2.125% 3.030% $ 975,850.00 $ 972,060 (3,790)40 Roche Holdings Inc. (Callable) Corporate 771196BT8 03/10/25 2.130% 2.130% $ 365,000.00 $ 354,707 (10,293)41 Home Depot Inc Corporate Notes 437076CM2 04/15/25 2.700% 2.760% $ 24,956.25 $ 24,376 (581)42 US Treasury Notes 91282CEH0 04/15/25 2.625% 4.650% $ 1,318,201.17 $ 1,317,519 (682)43 Bank of New York Mellon 06406RAN7 04/24/25 1.600% 0.841% $ 437,401.50 $ 408,765 (28,637)44 US Treasury Notes 912828ZL7 04/30/25 0.375% 2.710% $ 838,409.26 $ 856,620 18,21145 Cintas Corporation 17252MAP5 05/01/25 3.450% 3.460% $ 59,986.80 $ 58,808 (1,179)46 USAA Capital Corp 90327QD89 05/01/25 3.375% 3.490% $ 214,296.95 $ 210,898 (3,399)47 Chevron Corp New Notes 166764BW9 05/11/25 1.554% 3.200% $ 572,040.00 $ 576,996 4,95648 Apple Inc. 037833BG4 05/13/25 3.200% 0.814% $ 436,332.00 $ 391,856 (44,476)49 The Goldman Sachs Group 38148LAE6 05/22/25 3.750% 1.026% $ 222,856.00 $ 196,276 (26,580)50 National Australia 63254ABD9 06/09/25 3.500% 3.500% $ 250,000.00 $ 245,305 (4,695)51 National Rural Med Term Notes 63743HFE7 06/15/25 3.450% 3.460% $ 44,987.85 $ 44,042 (945)52 US Treasury Notes 912828ZW3 06/30/25 0.250% 0.360% $ 760,883.79 $ 731,647 (29,237)53 US Treasury Notes 912828ZW3 06/30/25 0.250% 3.030% $ 551,627.01 $ 566,436 14,80954 JP Morgan Chase & Co 46625HMN7 07/15/25 3.900% 1.024% $ 450,500.00 $ 393,400 (57,100)55 IBM Corporate Notes 459200KS9 07/27/25 4.000% 4.000% $ 200,000.00 $ 196,862 (3,138)56 Federal National Mortgage (Fannie Mae) 3135G05X7 08/25/25 0.375% 0.410% 499,070.00 $ 469,665 $ (29,405)57 Federal National Mortgage (Fannie Mae) 3135G05X7 08/25/25 0.375% 3.050% 918,880.00 $ 939,330 $ 20,45058 Buttes Vista 2000-1 AD, 2013 Refunding 09/02/25 2.730% 2.730% $ 89,774 $ 89,774 -59 Walmart Inc. Corporate Notes 931142EW9 09/09/25 3.900% 3.920% $ 164,884.50 $ 163,081 (1,803)60 Walmart Inc. Corporate Notes 931142EW9 09/09/25 3.900% 4.070% $ 398,160.00 $ 393,805 (4,355)61 Federal Farm Credit Bank 3133ENP95 09/30/25 4.250% 4.191% $ 1,101,808.40 $ 1,090,320 (11,488)62 United Health Group 91324PEN8 10/15/25 5.150% 5.150% $ 69,993.70 $ 70,085 9163 National Rural Med Term Notes 63743HFF4 10/30/25 5.450% 5.500% $ 64,912.90 $ 65,218 30664 Citigroup Inc. Corporate Notes (Callable) 172967ND9 11/03/25 1.281% 1.281% $ 135,000.00 $ 131,325 (3,675)65 HAROT 2021-3 A3 43815EAC8 11/18/25 0.410% 0.410% $ 48,954.35 $ 47,956 (998)66 Amazon 023135CN4 12/01/25 4.600% 4.600% $ 624,962.50 $ 622,506 (2,456)67 Bank of America Corp Notes (Callable) 06051GKE8 12/06/25 1.530% 1.530% $ 225,000.00 $ 218,675 (6,325)68 US Treasury Notes 91282CBC4 12/31/25 0.380% 0.728% $ 368,964.85 $ 347,813 (21,152)69 US Treasury Notes 9128285T3 12/31/25 2.625% 4.834% $ 526,175.67 $ 530,772 4,59670 HART 2021-B A3 44934KAC8 01/15/26 0.380% 0.390% $ 58,726.24 $ 57,839 (887)71 HAROT 2021-4 A3 43815GAC3 01/21/26 0.880% 0.885% $ 70,620.41 $ 68,914 (1,707)72 Bank of America Corp F/R 06051GGZ6 01/23/26 3.366% 1.326% $ 219,558.00 $ 196,332 (23,226)73 Morgan Stanley 61746BDZ6 01/27/26 3.875% 1.270% $ 224,686.00 $ 195,350 (29,336)74 State Street Corp 857477BR3 02/06/26 1.746% 1.750% $ 65,000.00 $ 62,828 (2,172)75 Federal Farm Credit Bank 3133EPCF0 03/02/26 4.500% 5.060% $ 1,086,581.10 $ 1,096,128 9,54776 HART 2021-C A3 44935FAD6 05/15/26 0.740% 0.745% $ 53,207.96 $ 52,033 (1,175)77 Carmx 2021-3 A3 14317DAC4 06/15/26 0.550% 0.550% $ 85,748.12 $ 83,403 (2,345) 5
City of Yuba City
Monthly Investment Statement
City Held Investments
CUSIP Maturity Coupon Yield Estimated Unrealized
No. Description of Security NO. Date Rate to Maturity Cost Basis Market Value Gain/(Loss) March 2024
78 MBART 2021-1 A3 58772WAC7 06/15/26 0.460% 0.463% $ 92,267.94 $ 89,962 (2,306)79 TAOT 2022A A3 89239KAC5 06/15/26 0.000% 1.230% $ 115,823.98 $ 112,960 (2,864)80 GM Fin Cons Auto Rec TR 2021 A-3 380140AC7 06/16/26 0.480% 0.480% $ 48,661.51 $ 47,508 (1,153)81 Toyota Motor Credit Corp 89236TJK2 06/18/26 1.125% 1.204% $ 224,145.00 $ 207,097 (17,048)82 VALET 2021-1 A3 92868KAC7 06/22/26 1.020% 1.021% $ 87,588.61 $ 85,549 (2,040)83 COMET 2021-A1 14041NFW6 07/15/26 0.550% 0.550% $ 279,988.66 $ 275,884 (4,105)84 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.030% $ 910,781.25 $ 925,247 14,46685 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.040% $ 1,274,984.38 $ 1,295,235 20,25086 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.330% $ 405,544.92 $ 411,986 6,44187 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.460% $ 807,785.16 $ 820,615 12,83088 US Treasury Notes 91282CCP4 07/31/26 0.625% 3.930% $ 1,998,632.81 $ 2,030,377 31,74489 Federal Home Loan Bank 3130AWTQ3 09/11/26 4.625% 4.750% $ 647,679.50 $ 651,066 3,38790 COPAR 2021-1 A3 14044CAC6 09/15/26 0.770% 0.770% $ 76,287.11 $ 74,136 (2,151)91 DCENT 2021-A1 A1 254683CP8 09/15/26 5.500% 4.751% $ 249,946.48 $ 244,368 (5,579)92 TAOT 2022-B A3 89238FAD5 09/15/26 2.931% 2.931% $ 78,033.07 $ 76,736 (1,297)93 GM Fin Cons Auto Rec TR 2021-4 A-3 362554AC1 09/16/26 0.680% 0.681% $ 64,261.82 $ 62,402 (1,859)94 Citigroup Inc. Corporate Notes 172967NX5 09/29/26 5.610% 5.610% $ 150,000.00 $ 150,239 23995 WOART 2021-D A3 98163KAC6 10/15/26 0.810% 0.813% $ 86,309.23 $ 84,040 (2,270)96 US Treasury Notes 912828U24 11/15/26 2.000% 4.060% $ 857,648.44 $ 868,344 10,69597 COMET 2021-A3 A3 14041NFY2 11/16/26 1.040% 1.043% $ 324,955.22 $ 316,037 (8,919)98 Federal Home Loan Bank 3130AQF65 12/21/26 1.250% 4.122% $ 625,591.40 $ 642,593 17,00299 Target Corporation 87612EBM7 01/15/27 1.950% 1.990% $ 39,932.00 $ 37,181 (2,751) 100 Microsoft Corp 594918BY9 02/06/27 3.300% 4.360% $ 673,813.00 $ 678,503 4,690101 Berkshire Hathaway Financial Notes 084664CZ2 03/15/27 2.300% 2.690% $ 417,260.75 $ 400,201 (17,060)102 US Treasury Notes 91282CEF4 03/31/27 2.500% 4.404% $ 795,715.74 $ 804,780 9,064103 CARMAX 2022-3 A3 14318MAD1 04/15/27 0.000% 3.970% $ 209,995.04 $ 207,144 (2,851)104 US Treasury Notes 91282CEN7 04/15/27 2.750% 3.730% $ 841,572.27 $ 833,236 (8,336)105 UnitedHealth Group 91324PEG3 05/15/27 3.700% 3.710% $ 39,978.40 $ 38,784 (1,194)106 NAROT 2022-B A3 65480JAC4 05/17/27 4.580% 4.460% $ 174,963.79 $ 173,308 (1,656)107 US Treasury Notes 91282CEW7 06/30/27 3.250% 4.544% $ 478,810.27 $ 482,850 4,040108 US Treasury Notes 91282CFB2 07/31/27 2.750% 3.510% $ 2,523,015.63 $ 2,519,503 (3,513)109 US Treasury Notes 91282CFB2 07/31/27 2.750% 4.060% $ 1,663,798.83 $ 1,661,482 (2,317)110 US Treasury Notes 91282CFB2 07/31/27 2.750% 4.150% $ 2,463,804.69 $ 2,460,374 (3,431)111 US Treasury Notes 91282CFB2 07/31/27 2.750% 4.420% $ 1,385,750.98 $ 1,383,821 (1,929)112 US Treasury Notes 91282CFB2 07/31/27 2.750% 4.550% $ 1,568,873.05 $ 1,566,689 (2,184)113 MBART 2022-1 A3 58768PAC8 08/16/27 5.210% 5.210% $ 349,930.77 $ 349,629 (302)114 Buttes Vista 2002-1 AD, 2013 Refunding 09/02/27 2.730% 2.730% $ 177,822 $ 177,822 -115 Apple Inc 037833DB3 09/12/27 2.900% 3.940% $ 286,863.00 $ 284,040 (2,823)116 Apple Inc 037833DB3 09/12/27 2.900% 4.135% $ 473,730.00 $ 473,400 (330)117 DCENT 2022-A4 A 254683CX1 10/15/27 0.001% 5.030% $ 239,969.11 $ 239,539 (430) 6
City of Yuba City
Monthly Investment Statement
City Held Investments
CUSIP Maturity Coupon Yield Estimated Unrealized
No. Description of Security NO. Date Rate to Maturity Cost Basis Market Value Gain/(Loss) March 2024
118 Pepsico 713448DY1 10/15/27 3.000% 4.238% $ 711,060.00 $ 710,438 (623)119 US Treasury Notes 91282CFZ9 11/30/27 3.875% 4.770% $ 1,063,132.81 $ 1,059,240 (3,893)120 US Treasury Notes 91282CFZ9 11/30/27 3.875% 4.200% $ 3,755,617.19 $ 3,741,864 (13,753)121 US Treasury Notes 91282CFZ9 11/30/27 3.875% 4.060% $ 1,440,371.09 $ 1,435,096 (5,275)122 US Treasury Notes 91282CFZ9 11/30/27 3.875% 3.983% $ 1,887,308.59 $ 1,880,397 (6,911)123 US Treasury Notes 91282CGC9 12/31/27 3.875% 3.983% $ 747,043.53 $ 737,903 (9,141)124 Federal Farm Credit Bank 3133EN5N6 01/06/28 4.000% 3.891% $ 433,098.97 $ 425,388 (7,711)125 American Honda Finance 02665WED9 01/12/28 4.700% 4.341% $ 608,940.00 $ 597,468 (11,472)126 Bristol Myers Squibb 110122DE5 02/20/28 3.900% 4.930% $ 334,379.50 $ 339,896 5,516127 US Treasury Notes 91282CGP0 02/29/28 4.000% 4.200% $ 1,613,383.79 $ 1,606,020 (7,364)128 Astrazeneca Finance 04636NAF0 03/03/28 4.875% 4.920% $ 324,343.50 $ 325,783 1,440129 Mastercard 57636QAW4 03/09/28 4.875% 4.900% $ 324,684.75 $ 329,258 4,573130 Federal Home Loan Bank 3130ATS57 03/10/28 4.500% 4.114% $ 1,017,260.00 $ 1,004,280 (12,980)131 Nestle Holdings, Inc 641062BF0 03/14/28 5.000% 5.010% $ 674,824.50 $ 683,114 8,289132 Home Depot Inc Corporate Notes 437076CE0 03/15/28 0.900% 4.193% $ 511,974.00 $ 521,340 9,366133 JP Morgan Chase & Co 46647PDA1 04/26/28 4.323% 4.800% $ 466,288.50 $ 464,037 (2,252)134 Merck & Co Inc Corp Notes 58933YBH7 05/17/28 4.050% 4.070% $ 139,886.60 $ 137,621 (2,265)135 US Treasury Notes 91282CCE9 05/31/28 1.250% 3.991% $ 1,228,395.32 $ 1,238,622 10,227136 DCENT 2023-A2 A 254683CZ6 06/15/28 0.000% 4.930% $ 349,952.72 $ 349,321 (632)137 Bank of America Medium Term Notes 06051GKW8 07/22/28 4.985% 4.970% $ 449,568.00 $ 446,567 (3,002)138 US Bancorp MTNS Bank Notes 91159HJF8 07/22/28 4.548% 4.903% $ 988,920.00 $ 980,090 (8,830)139 US Treasury Notes 912810FE3 08/15/28 5.500% 4.751% $ 722,503.91 $ 734,615 12,111140 Citibank NA Senior Notes 17325FBB3 09/29/28 5.803% 4.850% $ 571,521.50 $ 569,344 (2,178)141 John Deere Med Term Notes 24422EXH7 01/16/29 4.500% 4.550% $ 399,036.00 $ 396,040 (2,996)142 Federal Farm Credit Bank 3133EP5U5 03/20/29 4.125% 4.284% $ 1,241,137.50 $ 1,241,875 738143 Staple/Ashley/Cornwell AD 09/02/30 6.000% 6.000% $ 69,309 $ 69,309 -144 WWTP Solar System (DS, June 30) 06/30/33 4.000% 4.000% $ 1,405,736 $ 1,405,736 - --
Total City Held Investments $ 152, 153,098,376 $ (1 025,552 $ ,072,825) 7
City of Yuba City Investment Report
Investments Held By Trustees
Description of Maturity Coupon Yield Estimated Unrealized No. Description of Debt Issuance Account Type Security Date Rate to Maturity Cost Basis Market Value Gain/(Loss) 144 2013 Water Rev COP Debt Service Blackrock T-Fund Daily 5.190% 5.190% 315 $ 315 - 145 Interest Blackrock T-Fund Daily 5.000% 5.000% 0 0 -146 TABs Refunding - 2015 Debt Service Blackrock T-Fund Daily 5.200% 5.200% 766 766 - 147 Interest Blackrock T-Fund Daily 5.190% 5.190% 252 252 -148 Interest Blackrock T-Fund Daily 0.000% 0.000% - - -149 Principal Blackrock T-Fund Daily 5.260% 5.260% 1,103 1,103 -150 Reserve Blackrock T-Fund Daily 0.330% 0.330% 128,876 128,876 -151 Reserve Assured Guaranty Daily 0.000% 0.000% 1,870,568 1,870,568 -152 Reserve Blackrock T-Fund Daily 5.200% 5.200% 480,433 480,433 -153 Gauche Park Refunding - 2015 Debt Service Blackrock T-Fund Daily 5.200% 5.200% 137 137 - 154 Debt Service Blackrock T-Fund Daily 0.000% 0.000% - - -155 Reserve Assured Guaranty Daily 0.000% 0.000% 650,031 650,031 -156 CFD Refund 2015 Debt Service Blackrock T-Fund Daily 5.200% 5.200% 1,387 1,387 -157 Reserve Blackrock T-Fund Daily 5.200% 5.200% 42,777 42,777 -158 I-Bank Paymnt Blackrock T-Fund Daily 5.190% 5.190% 108 108 - 159 Wastewater Revenue Bonds (CREBS) - 2017 Bond Blackrock T-Fund Daily 5.200% 5.200% 156 156 -160 Authority 2018 Wastewater Revenue Bonds Bond Blackrock T-Fund Daily 0.000% 0.000% - - 161 Bond Blackrock T-Fund Daily 0.000% 0.000% 544 544
162 Project First Am Treas Obl Daily 4.920% 4.920% 21,070 21,070 Total Trustee-Held Investments $ 3,198,522 $ 3,198,522 $ - TOTAL CITY & TRUSTEE-HELD INVESTMENTS $ 156,296,899 $ 155,224,074 $ (1,072,825) Signed: Date:
Spencer Morrison, City Treasurer/s/ Spencer Morrison 4/17/2024 March 2024
I certify to the best of my knowledge: (i) That this statement reflecting all City investments is accurate and complete; (ii) That each investment conforms with the City's investment policies,as well as California's Government Code; and (iii) That sufficient cash flow liquidity is available to meet the next six months of estimated disbursements. 8
Balance Balance Period
Account Types 12/31/2023 3/31/2024 Activity
City Held Investments Local Agency Investment Fund 35,764,322 $ 41,829,972 $ 6,065,650 $ California Asset Management Program 12,782,354 17,000,326 4,217,972 Cash/Money Market 11,829,166 6,436,114 (5,393,052) Federal Agency Securities 11,203,939 10,950,443 (253,496) US Treasuries 45,990,209 50,769,325 4,779,116 Certificates of Deposit 1,049,560 1,049,560 0 Corporate Bonds and Asset Backed Sec. 20,657,610 21,250,686 593,076 City-held Assessment Districts & Municipals 1,921,519 1,922,235 716 Supranationals 811,919 816,891 4,972
Total City Held Investments 142,010,598 $ 152,025,552 $ 10,014,954 $ Trustee Held Investments Water Refunding 2013 311 $ 315 $ 4 $ TABs Refunding - 2015 2,372,910 2,481,997 109,087 Gauche Park Refunding 650,167 650,168 2 Sunsweet CFD Refund 44,819 44,272 (547) Wastewater Revenue Bonds - 2017 154 156 2Wastewater Revenue Bonds - 2018 21,350 21,614 264 Total Trustee Held Investments 3,089,711 3,198,522 108,811 $ Total 145,100,309 $ 155,224,075 $ 10,123,765 $
City of Yuba City - Quarterly Investment Transaction Report March 2024 - Market Value Summary
9
Settlement Maturity Trade Activity Coupon Yield to
Description of Security Broker Date Date Date Type Rate Maturity Cost Basis US Treasury Notes 01/16/24 01/15/24 01/15/24 Matured 0.125% 0.443% 700,000BMW Vehicle Lease Trust 01/02/24 01/27/25 12/26/23 Sale 0.430% 0.431% 94,699 US Treasury Notes 01/08/24 06/30/24 01/04/24 Matured 2.000% 1.566% 1,083,457GM Financial Consolidated Auto Receivables 01/16/24 09/16/26 01/16/24 Sale 0.680% 0.681% 4,989 GM Financial Consolidated Auto Receivables 01/16/24 06/16/26 01/16/24 Sale 0.480% 0.480% 4,929 Mercedes Benz Auto Receivables Trust 01/16/24 11/15/24 01/16/24 Sale 0.400% 0.400% 11,719Toyota Auto Receivables Owner Trust 01/16/24 09/15/26 01/15/24 Sale 2.930% 2.930% 1,708Capital One Prime Auto Receivables Trust 01/16/24 09/15/26 01/15/24 Sale 0.770% 0.770% 6,184 Carmax Auto Receivables Owner Trust 01/16/24 06/15/26 01/15/24 Sale 0.550% 0.550% 7,274 Hyundai Auto Receivables Trust 01/16/24 01/15/26 01/15/24 Sale 0.380% 0.380% 9,207 Hyundai Auto Receivables Trust 01/16/24 05/15/26 01/15/24 Sale 0.740% 0.740% 5,319 Toyota Auto Receivables Owner Trust 01/16/24 06/15/26 01/15/24 Sale 1.230% 1.230% 9,260World Omni Auto Receivables Trust 01/16/24 10/15/26 01/15/24 Sale 0.810% 0.810% 7,204 Honda Auto Receivables Owner Trust 01/18/24 11/18/25 01/18/24 Sale 0.410% 0.410% 6,048 GM Financial Consolidated Auto Receivables 01/22/24 07/21/25 01/20/24 Sale 0.500% 0.500% 31,817 Honda Auto Receivables Owner Trust 01/22/24 01/21/26 01/21/24 Sale 0.880% 0.880% 6,755 Volkswagen Auto Loan Enhanced Trust 01/22/24 06/22/26 01/20/24 Sale 1.020% 1.020% 8,176 BMW Vehicle Lease Trust 01/25/24 01/27/25 01/25/24 Sale 0.430% 0.430% 275,301 US Bancorp Medium Term Notes 02/05/24 02/05/24 02/05/24 Sale 3.375% 2.075% 1,000,000 Fannie Mae 02/05/24 02/05/24 02/05/24 Matured 2.500% 2.600% 400,000 US Bancorp Medium Term Notes 02/05/24 02/05/24 02/05/24 Matured 3.375% 3.190% 450,000 Toyota Auto Receivables Owner Trust 02/15/24 09/15/26 02/15/24 Sale 2.930% 2.930% 5,305Capital One Prime Auto Receivables Trust 02/15/24 09/15/26 02/15/24 Sale 0.770% 0.770% 6,215 Carmax Auto Receivables Owner Trust 02/15/24 06/15/26 02/15/24 Sale 0.550% 0.550% 7,494 Hyundai Auto Receivables Trust 02/15/24 01/15/26 02/15/24 Sale 0.380% 0.380% 8,945 Hyundai Auto Receivables Trust 02/15/24 05/15/26 02/15/24 Sale 0.740% 0.740% 5,382 Mercedes Benz Auto Receivables Trust 02/15/24 06/15/26 02/15/24 Sale 0.460% 0.460% 9,752 Toyota Auto Receivables Owner Trust 02/15/24 06/15/26 02/15/24 Sale 1.230% 1.230% 9,781 World Omni Auto Receivables Trust 02/15/24 10/15/26 02/15/24 Sale 0.810% 0.810% 7,391US Treasury Notes 02/15/24 02/15/24 02/15/24 Sale 2.750% 2.750% 275,000GM Financial Consolidated Auto Receivables 02/16/24 09/16/26 02/16/24 Sale 0.680% 0.680% 4,986 GM Financial Consolidated Auto Receivables 02/16/24 06/16/26 02/16/24 Sale 0.480% 0.480% 4,821GM Financial Consolidated Auto Receivables 02/20/24 07/21/25 02/20/24 Sale 0.500% 0.500% 34,911 Honda Auto Receivables Owner Trust 02/20/24 11/18/25 02/18/24 Sale 0.410% 0.410% 6,089 Volkswagen Auto Loan Enhanced Trust 02/20/24 06/22/26 02/20/24 Sale 1.020% 1.020% 9,037Honda Auto Receivables Owner Trust 02/21/24 01/21/26 02/21/24 Sale 0.880% 0.880% 6,724Federal Farm Credit Banks Funding Corp 03/28/24 03/28/24 03/28/24 Matured 0.300% 0.322% 1,100,000Toyota Auto Receivables Owner Trust 03/15/24 09/15/26 03/15/24 Sale 3.178% 3.178% 4,951Capital One Prime Auto Receivables Trust 03/15/24 09/15/26 03/15/24 Sale 0.770% 0.770% 5,919Carmax Auto Receivables Owner Trust 03/15/24 06/15/26 03/15/24 Sale 0.550% 0.550% 7,177 Investment Activity
January, February, March 2024
SALES/REDEMPTIONS
10
Settlement Maturity Trade Activity Coupon Yield to
Description of Security Broker Date Date Date Type Rate Maturity Cost Basis Hyundai Auto Receivables Trust 03/15/24 01/15/26 03/15/24 Sale 0.380% 0.380% 8,630 Hyundai Auto Receivables Trust 03/15/24 05/15/26 03/15/24 Sale 0.740% 0.740% 5,131Mercedes Benz Auto Receivables Trust 03/15/24 06/15/26 03/15/24 Sale 0.460% 0.460% 9,033Toyota Auto Receivables Owner Trust 03/15/24 06/15/26 03/15/24 Sale 1.230% 1.230% 9,203World Omni Auto Receivables Trust 03/15/24 10/15/26 03/15/24 Sale 0.810% 0.810% 6,999 GM Financial Consolidated Auto Receivables 03/18/24 09/16/26 03/16/24 Sale 0.680% 0.680% 5,009Honda Auto Receivables Owner Trust 03/18/24 11/18/25 03/18/24 Sale 0.410% 0.410% 5,889 GM Financial Consolidated Auto Receivables 03/18/24 06/16/26 03/16/24 Sale 0.480% 0.480% 4,793Charles Schwab 03/18/24 03/18/24 03/18/24 Matured 0.750% 0.770% 85,000GM Financial Consolidated Auto Receivables 03/20/24 07/21/25 03/20/24 Sale 0.500% 0.500% 3,040Volkswagen Auto Loan Enhanced Trust 03/20/24 06/22/26 03/20/24 Sale 1.020% 1.020% 8,101 Honda Auto Receivables Owner Trust 03/21/24 01/21/26 03/21/24 Sale 0.880% 0.880% 6,437 5,801,193
US Treasury Notes BMO Capital Markets 01/17/24 12/31/27 01/16/24 Buy 3.875% 3.983% 747,044 US Treasury Notes HSBC Securities, Inc. 01/08/24 11/30/27 01/04/24 Buy 3.875% 4.060% 1,440,370John Deere Medium Term Note Marketaxess Corp 01/31/24 01/16/29 01/29/24 Buy 4.500% 4.550% 399,036 Citibank NA Senior Notes Marketaxess Corp 01/31/24 09/29/28 01/29/24 Buy 5.803% 4.850% 571,522Bank of America Medium Term Note Goldman Sachs & Co LLC 01/31/24 07/22/28 01/29/24 Buy 4.985% 4.970% 449,568 JP Morgan Chase Co Marketaxess Corp 01/31/24 04/26/28 01/29/24 Buy 4.323% 4.800% 466,289 US Treasury Notes BMO Capital Markets 01/31/24 11/30/27 01/29/24 Buy 3.875% 3.983% 1,887,309 US Treasury Notes JP Morgan Securities LLC 01/31/24 04/15/25 01/29/24 Buy 2.625% 4.650% 1,318,201US Bankcorp Medium Term Notes US Bancorp Investments 02/05/24 07/22/28 02/01/24 Buy 4.548% 4.903% 988,920Federal Farm Credit Banks Funding Corp Wells Fargo Securities 03/28/24 03/20/29 03/25/24 Buy 4.125% 4.284% 1,241,138US Treasury Notes Citigroup Global Markets Inc 03/11/24 02/29/28 03/07/24 Buy 4.000% 4.200% 1,613,384 Total Purchases $ 11,122,779
Total Sales/Redemptions
PURCHASES
11
Agenda Item 10
CITY OF YUBA CITY
STAFF REPORT
Date: May 7, 2024
To: Honorable Mayor & Members of the City Council;Honorable Chairperson and Directors of the Successor Agency to the Redevelopment Agency of the City of Yuba City
From: Administration Department
Presentation By: Diana Langley, City Manager
Summary
Subject: Agreement for Purchase and Sale of Real Property located at 454 Stevens Avenue (APN 052-401-014) to Sukhvinder Bassi and Brett Scheidel Recommendation: Adopt a Resolution authorizing the City Manager as Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City to execute an Agreement for Purchase and Sale of Real Property located at 454 Stevens Avenue (APN 052-401-014), and all other necessary documents, in the amount of $40,000 to Sukhvinder Bassi and Brett Scheidel, and authorize the Finance Director to remit the proceeds to the Sutter County Auditor-Controller for distribution to the taxing entities per the Long Range Property Management Plan Fiscal Impact: Sale Price - $40,000
Purpose:
To facilitate and encourage the development of infill property located in the Town Center area.
Council’s Strategic Goal:
This project addresses multiple City Council Strategic Goals, primarily maintaining the financial stability and sustainability of the City and enhancing the business-friendly environment for the City.
Background:
454 Stevens Avenue is a 0.2-acre vacant parcel located at the southwest corner of Wilbur Avenue and Stevens Avenue (Site), and currently owned by the Successor Agency to the Redevelopment Agency of the City of Yuba City (Successor Agency). Based on a 2011 California Supreme Court decision, all redevelopment agencies in California were dissolved as of February 1, 2012. As a result, all redevelopment agencies were required to dissolve and transfer any assets and liabilities to “Successor Agencies” that would bring to a close the redevelopment agencies’ business matters. On January 10, 2012, the City Council elected to become the Successor Agency, and in November 2014, the Site was transferred to the Successor Agency.
In 2015, a Long Range Property Management Plan was prepared by Fraser & Associates. The plan recommended the Site be sold for private development. On August 16, 2022, the City Council, acting
as the Successor Agency, declared the Site to be surplus land and directed the City Manager to follow procedures set forth in the Surplus Land Act (SLA) for the sale of the property. Through the SLA process, no housing sponsors or developers submitted a letter of interest to purchase the property and the California Department of Housing and Community Development (HCD) cleared the property for sale.
Analysis:
In August 2023, an appraisal was prepared by Owen & Associates Valuation, Inc., in which the appraised amount was $40,000. The City contracted with Coldwell Banker Commercial Valley Brokers (Coldwell Banker) to represent the City and place the property for sale for $40,000. Coldwell Banker received an offer from Sukhvinder Bassi and Brett Scheidel to purchase the Site "as is" for $40,000.
The attached Agreement for Purchase and Sale details the terms of the transaction.
Fiscal Impact:
The proposed purchase price is $40,000 with net proceeds being less due to sales commission, title, and escrow fees. Per the Long Range Property Management Plan, the City will remit the net proceeds to the Sutter County Auditor-Controller for distribution to the taxing agencies, of which the City will receive approximately 16% back.
Alternatives:
Do not authorize the City Manager to sign the Agreement and provide direction for the disposition of the property.
Recommendation:
Adopt a Resolution authorizing the City Manager as Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City to execute an Agreement for Purchase and Sale of Real Property located at 454 Stevens Avenue (APN 052-401-014), and all other necessary documents, in the amount of $40,000 to Sukhvinder Bassi and Brett Scheidel, and authorize the Finance Director to remit the proceeds to the Sutter County Auditor-Controller for distribution to the taxing entities per the Long Range Property Management Plan.
Attachments:
1. Resolution - 454 Stevens Avenue
2. Exhibit A - 454 Stevens Avenue - APN 52-401-014
3. Location Map
Prepared By: Submitted By:
Diana Langley
City Manager
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO.
RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF
THE CITY OF YUBA CITY
AUTHORIZING THE CITY MANAGER AS THE EXECUTIVE DIRECTOR TO THE
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF YUBA CITY
TO EXECUTE AN AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY LOCATED AT 454 STEVENS AVENUE (APN 52-401-014), AND ALL OTHER NECESSARY DOCUMENTS, IN THE AMOUNT OF $40,000 TO SUKHVINDER BASSI AND BRETT
SCHEIDEL, AND AUTHORIZE THE FINANCE DIRECTOR TO REMIT THE PROCEEDS TO
THE SUTTER COUNTY AUDITOR-CONTROLLER FOR DISTRIBUTION TO THE TAXING
ENTITIES PER THE LONG RANGE PROPERTY MANAGEMENT PLAN
WHEREAS, in January 2012, the City Council elected to become the Successor Agency to the Redevelopment Agency of the City of Yuba City (Successor Agency); and WHEREAS, in November 2014, ownership of the Site was transferred by grant deed to the Successor Agency; and
WHEREAS, in 2015, a Long Range Property Management Plan was prepared by Fraser & Associates and recommended the Site be sold for private development; and WHEREAS, in August 2022, the Successor Agency declared the Site to be surplus and directed the City Manager/Executive Director to follow procedures set forth in the Surplus Land Act for the sale of the property; and
WHEREAS, in accordance with the Surplus Land Act, staff issued a notice of availability and did not receive any interest from any housing sponsors; and WHEREAS, the Department of Housing and Community Development has determined that staff met all the requirements under the Surplus Land Act and the Successor Housing Agency is permitted to proceed with the sale or lease of the property; and WHEREAS, an appraisal was prepared by Owen & Associates Valuation, Inc., and the appraised value is $40,000; and
WHEREAS, the City received an offer from Sukhvinder Bassi and Brett Scheidel to purchase the property for $40,000 in “as is” condition; and
WHEREAS, staff recommends that the Successor Agency accept the offer and authorize the City Manager to execute an Agreement for Purchase and Sale; and WHEREAS, per the Long Range Property Management Plan, the net proceeds from the sale of the property are to be remitted to the Sutter County Auditor-Controller for distribution to the taxing agencies.
NOW, THEREFORE, the Successor Agency of the Yuba City Redevelopment Agency, California, does hereby resolve as follows:
1. The City Manager as the Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City is authorized to execute an Agreement
for Purchase and Sale of Real Property located at 454 Stevens Avenue (APN 052-401- 014), and all other necessary documents, in the amount of $40,000 to Sukhvinder Bassi and Brett Scheidel.
2. The Finance Director is authorized to remit the net proceeds to the Sutter County AuditorController.
The foregoing Resolution was duly and regularly introduced, passed and adopted by the Successor Agency to the Yuba City Redevelopment Agency, at a regular meeting thereof held on the 7th day of May, 2024.
AYES:
NOES:
ABSENT:
Shon Harris, Chair of Successor Agency
ATTEST:
Ciara Wakefield, Deputy Agency Secretary
APPROVED AS TO FORM
COUNSEL FOR SUCCESSOR AGENCY
________________________
Shannon Chaffin
Agency Counsel
Exhibit A: Purchase and Sale Agreement
01248.0012/919634.1 1
EXHIBIT A
01248.0012/919634.1 2
AGREEMENT FOR PURCHASE AND SALE
OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS
THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made this 7th day of May, 2024 (“Agreement Date”) by and among Sukhvinder Bassi and Brett Scheidel (the “Buyer”), City of Yuba City as Successor Agency to the former Redevelopment Agency of the City of Yuba City, a public agency (“Seller”) and PLACER TITLE COMPANY, a corporation (“Escrow Holder” and “Title Company”).
R E C I T A L S:
A. Seller owns those certain real property located at 454 Stevens Avenue, Yuba City, State of California (APN 052-401-014) legally described as set forth on Exhibit A ("Property").
B. Buyer is willing to purchase the Property in AS-IS condition pursuant to the terms of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and incorporating the recitals above, the parties hereto agree as follows:
TERMS AND CONDITIONS:
1. PURCHASE AND SALE OF PROPERTY. Buyer hereby agrees to purchase from Seller, and Seller agrees to sell to Buyer, the Property in AS-IS condition.
2. OPENING OF ESCROW. Within five (5) days after the execution of this Agreement by both Buyer and Seller, the parties shall open an escrow (“Escrow”) with Placer Title Company (Escrow Holder) by causing an executed copy of this Agreement to be deposited with Ana Campos, escrow officer (“Escrow Officer”) at Placer Title Company, 1425 Butte House Road, Yuba City, [email protected], (530) 671-5040 (“Escrow”) together with the Deposit (as defined in Section 3.2(a)) (“Opening of Escrow”).
3. PURCHASE PRICE.
3.1 Purchase Price. The Purchase Price for the Property is Forty Thousand Dollars ($40,000) (“Purchase Price”).
3.2 Payment of Purchase Price. The Purchase Price shall be paid as follows:
(a) Deposit. At Opening of Escrow, Buyer shall deposit the sum of Four Thousand Dollars ($2,000) with Escrow Holder (“Deposit”). (b) Balance of Funds. At least one (1) business day prior to the Closing, Buyer shall deposit balance of the Purchase Price with Escrow Holder in Good Funds (as defined below).
3.3 Disbursement of Seller’s Net Proceeds. At the Closing, the net proceeds (as determined by the Seller settlement statement) shall be disbursed to Seller.
01248.0012/919634.1 3
3.4 Good Funds. All funds deposited in Escrow shall be in “Good Funds” which means a wire transfer of funds, cashier's or certified check drawn on or issued by the offices of a financial institution located in the State of California.
4. ADDITIONAL FUNDS AND DOCUMENTS REQUIRED FROM BUYER AND SELLER.
4.1 Seller. Seller agrees that on or before 12:00 noon on the day preceding the Closing Date, Seller will deposit with Escrow Holder such funds and other items and instruments (executed and acknowledged, if appropriate) as may be necessary in order for the Escrow Holder to comply with this Agreement, including without limitation:
a. Executed and acknowledged grant deed in the form of Exhibit B (“Grant Deed”). b. A Non-Foreign Affidavit as required by federal law.
c. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement. d. Executed and acknowledged Deed Restriction in the form of Exhibit C (“Deed Restriction”).
4.2 Buyer. Buyer agrees that on or before 12:00 noon on the date preceding the Closing Date, Buyer will deposit with Escrow Holder all additional funds and/or documents (executed and acknowledged, if appropriate) which are necessary to comply with the terms of this Agreement, including without limitation:
a. A Preliminary Change of Ownership Statement completed in the manner required in Sutter County.
b. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement.
4.3 Recordation, Completion and Distribution of Documents. Escrow Holder will cause Grant Deed to be recorded when it can issue the Owner’s Title Policy in accordance with Section 6, and holds for the account of Buyer and Seller, respectively, the funds and items described above to be delivered to Buyer and Seller, respectively, through Escrow, less costs, expenses and disbursements chargeable to Seller pursuant to the terms hereof.
5. CLOSING DATE; TIME IS OF ESSENCE.
5.1 Closing Date. Escrow shall close within seventy-five (75) days after Buyer has provided the Buyer's Due Diligence Approval Notice by the Outside Due Diligence Date (pursuant to Section 7), but no later than ninety (90) days after the Opening of Escrow (“Closing Date”) unless extended as evidenced by a writing signed by both parties. The terms “Close of Escrow” and/or “Closing” are used herein to mean the time Grant Deed is filed for recording by the Escrow Holder in the Office of the County Recorder of Sutter County, California.
5.2 Possession. Upon the Close of Escrow, exclusive possession and occupancy of the Property shall be delivered to Buyer free and clear of all claims of possession and all debris.
01248.0012/919634.1 4
5.3 Time is of Essence. Buyer and Seller specifically agree that time is of the essence.
5.4 Executive Director’s Authority. Seller by its execution of this Agreement hereby agrees that its Executive Director or designee (who has been designated by Executive Director’s written notice delivered to Buyer and Escrow Holder) shall, in Executive Director’s sole and exclusive discretion, have authority:
(i) to execute documents on behalf of Seller including, but not limited to, issuing approvals, disapprovals and extensions. Any such approval, disapproval or extension executed by the Executive Director or their designee shall be binding on Seller. (ii) make minor modifications to this Agreement in order to fulfill the direction of the Successor Agency Board, provided that such minor modifications are approved by the Agency’s legal counsel.
6. TITLE POLICY.
6.1 Approval of Title.
(a) Promptly following execution of this Agreement but in no event later than five (5) days following Opening of Escrow, a preliminary title report shall be issued by Placer Title Company (“Title Company”), describing the state of title of the Property, together with copies of all exceptions specified therein and a map plotting all easements specified therein (“Preliminary Title Report”). Within five (5) days after Buyer's receipt of the Preliminary Title Report, Buyer shall notify Seller in writing (“Buyer's Title Notice”) of Buyer's disapproval of any matters contained in the Preliminary Title Report (“Disapproved Exceptions”). (b) In the event Buyer delivers Buyer's Title Notice within said period, Seller shall have a period of five (5) days after receipt of Buyer's Title Notice in which to notify Buyer of Seller's election to either (i) agree to attempt to remove the Disapproved Exceptions prior to the Close of Escrow; or (ii) decline to remove any such Disapproved Exceptions (“Seller's Notice”).
If Seller notifies Buyer of its election to decline to remove the Disapproved Exceptions, or if Seller is unable to remove the Disapproved Exceptions, Buyer may elect either to terminate this Agreement and the Escrow or to accept title to the Property subject to the Disapproved Exception(s). Buyer shall exercise such election by delivery of written notice to Seller and Escrow Holder within five (5) days following the earlier of (i) the date of written advice from Seller that such Disapproved Exception(s) cannot be removed; or (ii) the date Seller declines to remove such Disapproved Exception(s).
(c) Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement, provided, however, that Buyer's initial period of review and approval or disapproval of any such additional exceptions shall be limited to ten (10) days following receipt of notice of such additional exceptions. (d) Nothing to the contrary herein withstanding, Buyer shall be deemed to have automatically objected to all leases, deeds of trust, mortgages, judgment liens, federal and state income tax liens, delinquent general and special real property taxes and assessments and similar monetary encumbrances affecting the Property, and Seller shall discharge any such nonpermitted title matter of record prior to or concurrently with the Close of Escrow.
01248.0012/919634.1 5
6.2 Title Policy. At the Close of Escrow, Escrow Holder shall furnish Buyer with an ALTA/CLTA Homeowner’s Owner's Policy of title insurance (“Owner’s Title Policy”) insuring title to the Property vested in Buyer in the amount of the Purchase Price, containing only exceptions approved or waived by Buyer in accordance with this Section. The cost of the Owner’s Title Policy to Seller shall be paid by Buyer.
7. TRANSFER DISCLOSURE STATEMENT, STATUTORY DISCLOSURES & DUE DILIGENCE.
7.1 Natural Hazard Disclosure Report with Tax Disclosures. Within two (2) days after the Opening of Escrow, Escrow Holder shall order and deliver to Buyer a comprehensive natural hazard disclosure and tax report from Disclosure Source (“NHD Report”) for Buyer’s review and approval. If Buyer disapproves the NHD Report, Buyer shall notify Seller with a copy to Escrow Holder within the Due Diligence Period. If Buyer does not disapprove the NHD Report within the Due Diligence Period, Buyer shall be deemed to have approved it. Buyer shall execute the acknowledgement statement that accompanies the NHD Report and deliver a copy to Seller.
7.2 Material Facts & Insurance Claims. Within two (2) days of the Opening of Escrow, Seller shall disclose to Buyer in writing all known material facts and defects including known insurance claims within the last five (5) years preceding the Agreement Date
7.3 Other Statutory Disclosures. Within two (2) days of Opening of Escrow, Seller shall deliver to Buyer all other applicable statutory disclosures (including, but not limited to, notice or actual knowledge of release of illegal controlled substance, etc.) as required by law for Buyer’s review and approval. If Buyer disapproves any such disclosures, Buyer shall notify Seller with a copy to Escrow Holder within the Due Diligence Period. If Buyer does not disapprove a statutory disclosure within the Due Diligence Period, Buyer shall be deemed to have approved it and Buyer shall execute any documents reasonably required by Seller to evidence same and deliver same to Seller.
7.4 Due Diligence. For a period of up to sixty (60) days following the Opening of Escrow ("Due Diligence Period"), Buyer shall have the right to review and inspect the Property and conduct such tests as reasonably determined by Buyer. Buyer shall make reasonable efforts to expediate any and all investigations provided same does not involve additional cost to Seller. Seller grants to Buyer, its agents and employees, upon reasonable notice to Seller, a limited license to enter the Property for the purpose of conducting such due diligence as reasonably required by Buyer at Buyer's sole cost and expense. As a condition to Buyer's entry and inspection, Buyer shall keep the Property free and clear of all materialmen's liens, lis pendens or any other liens arising out of the entry and any work performed under this Agreement. Buyer shall notify Seller in writing ("Buyer's Due Diligence Notice") on or before the expiration of the Due Diligence Period of Buyer's approval of the condition of the Property as well as the TDS, NHD Report, Lead Paint Disclosure and all other disclosures and notices delivered to Buyer under this Agreement, which approval may be withheld in Buyer's sole discretion. Failure of Seller to provide access to the Property to make inspect the Property at a day and time requested by Buyer shall be a material breach of this Agreement and Buyer shall have the right to immediately terminate this Agreement and the escrow.
7.5 Indemnity: Buyer agrees to defend and indemnify Seller for any claims that arise out of Buyer’s inspection or testing of the Property.
01248.0012/919634.1 6
7.6 Statutory Disclosures. As required by law, Seller makes the following disclosures to Buyer:
a. No HOA. The Property is subject to certain covenants, conditions and restrictions.
However, there is no homeowner association and there are no HOA assessments to which the Property is subject.
b. Megan’s Law. “Notice: Pursuant to Section 290.46 of the Penal Code information about specified registered sex offenders is made available to the public via an internet website maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on a sex offender’s criminal history, this information will include either an address at which the offender resides or the community of residence and ZIP code in which he or she resides. (Neither Seller or Broker are required to check this website).”
c. 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 at 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 lines 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 Web site.”
8. CONDITIONS PRECEDENT TO CLOSE OF ESCROW.
8.1 Conditions to Buyer's Obligations. The obligations of Buyer under this Agreement are subject to the satisfaction or written waiver, in whole or in part, by Buyer of each of the following conditions precedent (“Buyer’s Conditions Precedent”):
(a) Title Company will issue the Owner’s Title Policy as specified in Section 6.2. (b) Escrow Holder holds and will deliver to Buyer the instruments accruing to Buyer pursuant to this Agreement.
(c) Seller is not in default of its obligations under this Agreement.
8.2 Conditions to Seller's Obligations. The obligations of Seller under this Agreement are subject to the satisfaction or written waiver, in whole or in part, by Seller of the following conditions precedent:
(a) Escrow Holder holds and will deliver to Seller the instruments and funds accruing to Seller pursuant to this Agreement.
(b) Buyer shall have executed all documents required under this Agreement and delivered same to Seller.
(c) Buyer is not in default of its obligations under this Agreement.
01248.0012/919634.1 7
9. LIMITED REPRESENTATIONS AND WARRANTIES.
9.1 Limited Representations and Warranties. Seller hereby makes the following representations and warranties to Buyer to the best of its knowledge and without the duty to investigate, each of which is true in all respects as of the Agreement Date and the Opening of Escrow and shall be true in all respects on the date of Close of Escrow on the Property:
a. Seller has received no notice and/or has no knowledge that any governmental authority or any employee or agent thereof considers the present or proposed operation, use or ownership of the Property to violate or have violated any ordinance, rule, law, regulation or order of any government or agency, body or subdivision thereof, or that any investigation has been commenced or is contemplated respecting such possible violations. b. There are no pending or threatened lawsuits or claims which would affect the Property.
c. The Property is not subject to a homeowner’s association nor any such association assessments.
d. The Property is not in violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and ground water conditions. e. Seller has received no written notice from any third parties, prior owners of the Property, or any federal, state or local governmental agency indicating that any hazardous waste remedial or clean-up work will be required on the Property. There are no environmental, health or safety hazards on, under or about the Property, including but not limited to soil and groundwater conditions.
f. There are no contracts, leases, claims or rights affecting the Property and no agreements entered into by or under Seller that shall survive the Close of Escrow. g. Until the Closing, Seller shall not do anything which would impair Seller’s title to any of the Property.
h. Seller is not, and as of the Close of Escrow will not be, a foreign person within the meaning of Internal Revenue Code Section 1445 or an out-of-state seller under California Revenue and Tax Code Section 18805 and that it will deliver to Buyer through Escrow a nonforeign affidavit on Escrow Holder's standard form pursuant to Internal Revenue Code Section 1445(b)(2) and the Regulations promulgated thereunder and a California Form 590-RE (“Nonforeign Affidavit”). i. Until the Closing, if Seller learns of any fact or condition which would cause any of the warranties and representations in this Section not to be true as of the Closing, Seller shall immediately give written notice of such fact or condition to Buyer. j. No construction or repair work has been done on the Property within the six (6) months prior to the Opening of Escrow.
9.2 Breach; Indemnification. If a breach of a representation, warranty or covenants occurs before Closing and Buyer is aware that such a breach has occurred, the breach shall be
01248.0012/919634.1 8
grounds to terminate this Agreement in Buyer’s sole discretion. If Buyer does not elect to terminate this Agreement, Buyer shall be deemed to have waived any such breach.
10. ESCROW PROVISIONS.
10.1 Escrow Instructions. Sections 1; 2 through 6 inclusive, 8, 10, 12 and 13 constitute the escrow instructions to Escrow Holder. If required by Escrow Holder, Buyer and Seller agree to execute Escrow Holder's standard escrow instructions, provided that the same are consistent with and do not conflict with the provisions of this Agreement. In the event of any such conflict, the provisions of this Agreement shall prevail. The terms and conditions in sections of this Agreement not specifically referenced above are additional matters for information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder’s general provisions directly from Escrow Holder and will execute such provision upon Escrow Holder’s request. To the extent that 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 agree to execute additional instructions, documents and forms provide by Escrow Holder that are reasonably necessary to close Escrow.
10.2 General Escrow Provisions. Escrow Holder shall deliver the Owner’s Title Policy to Buyer and instruct the Sutter County Recorder to mail the Grant Deed to Buyer at the address set forth in Section 12 after recordation. All funds received in this Escrow shall be deposited in one or more general escrow accounts of the Escrow Holder with any bank doing business in Sutter County, California, and may be disbursed to any other general escrow account or accounts. All disbursements shall be according to that party's instructions.
10.3 Utilities. Buyer and Seller shall cause all utilities which are in the name of Seller to be transferred to the name of Buyer as of the Close of Escrow or as soon thereafter as practicable. Utilities shall be prorated to the Close of Escrow. In the event final amounts with respect to said prorations are not available as of Close of Escrow, the proration shall be done on an estimated basis and the parties shall prepare a final proration within sixty (60) days following Close of Escrow. Any party who is obligated to pay net amounts based on said final proration shall reimburse the other party said amount within thirty (30) days after completion of the final proration.
10.4 Real Property Taxes. Seller is a public agency and exempt from real property taxes so no prorations will be required at Closing.
10.5 Payment of Costs.
a. Cost Allocation. Seller shall pay the costs for the Owner’s Title Policy, onehalf of escrow costs and recording fees (“Buyer’s Charges”). Seller shall pay the cost of the NHD Report, documentary transfer taxes, one-half of the escrow costs and any fees and costs charged by any lender to obtain releases or consents or otherwise put title in the condition described in Section 6 (“Seller’s Charges”). All other costs of Escrow not otherwise specifically allocated by this Agreement shall be apportioned between the parties in a manner consistent with the custom and usage of Escrow Holder. b. Closing Statement. At least three (3) business days prior to the Closing Statement. At least three (3) business days prior to the Closing Date, Escrow
01248.0012/919634.1 9
Holder shall furnish Buyer and Seller with a preliminary Escrow closing statement which shall include each party’s respective shares of costs. The preliminary closing statement shall be approved in writing by the parties. As soon as reasonably possible following the Close of Escrow, Escrow Holder shall deliver a copy of the final Escrow closing statement to the Parties.
10.6 Termination and Cancellation of Escrow. If Escrow fails to close as provided above, either party may elect to cancel this Escrow upon written notice to the other party and Escrow Holder. Upon cancellation, Escrow Holder is instructed to return all funds and documents then in Escrow to the respective depositor of the same with Escrow Holder.
Cancellation of Escrow, as provided herein, shall be without prejudice to whatever legal rights Buyer or Seller may have against each other arising from the Escrow or this Agreement.
10.7 Information Report. Escrow Holder shall file and Buyer and Seller agree to cooperate with Escrow Holder and with each other in completing any report (“Information Report”) and/or other information required to be delivered to the Internal Revenue Service pursuant to Internal Revenue Code § 6045(e) regarding the real estate sales transaction contemplated by this Agreement, including without limitation, Internal Revenue Service Form 1099-B as such may be hereinafter modified or amended by the Internal Revenue Service, or as may be required pursuant to any regulation now or hereinafter promulgated by the Treasury Department with respect thereto. Buyer and Seller also agree that Buyer and Seller, their respective employees and attorneys, and escrow Holder and its employees, may disclose to the Internal Revenue Service, whether pursuant to such Information Report or otherwise, any information regarding this Agreement or the transactions contemplated herein as such party reasonably deems to be required to be disclosed to the Internal Revenue Service by such party pursuant to Internal Revenue Code Section 6045(e), and further agree that neither Buyer nor Seller shall seek to hold any such party liable for the disclosure to the Internal Revenue Service of any such information.
10.8 No Withholding as Foreign Seller. Seller represents and warrants to Buyer that Seller is not, and as of the Close of Escrow will not be, a foreign person within the meaning of Internal Revenue Code § 1445 or an out-of-state seller under California Revenue and Tax Code § 18805 and that it will deliver to Buyer on or before the Close of Escrow a non-foreign affidavit on Escrow Holder's standard form pursuant to Internal Revenue Code §1445(b)(2) and the Regulations promulgated thereunder and a California Form 590-RE.
10.9 Brokerage Commissions. Both parties are represented by a broker. Buyer and Seller each agree to indemnify and hold the other parties harmless from and against all liabilities, costs, damages and expenses, including, without limitation, attorneys' fees, resulting from any claims or fees or commissions, based upon agreements by it, if any, to pay a broker's commission and/or finder's fee except as specified above.
11. LIQUIDATED DAMAGES.
IF BUYER SHOULD MATERIALLY DEFAULT UNDER THIS AGREEMENT, BUYER AND
SELLER AGREE THAT SELLER WILL INCUR DAMAGES BY REASON OF SUCH
DEFAULT WHICH DAMAGES SHALL BE IMPRACTICAL AND EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE, TO ASCERTAIN. THEREFORE, BUYER AND SELLER, IN A REASONABLE EFFORT TO ASCERTAIN WHAT SELLER’S DAMAGES
WOULD BE IN THE EVENT OF SUCH DEFAULT BY BUYER HAVE AGREED BY
PLACING THEIR INITIALS BELOW THAT THE DEPOSIT SHALL CONSTITUTE A
01248.0012/919634.1 10
REASONABLE ESTIMATE OF SELLER’S DAMAGES UNDER THE PROVISIONS OF SECTIONS 1671 AND 1677 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE FOR A BREACH PRIOR TO THE CLOSING. IF BUYER FAILS TO PROMPTLY DELIVER THE
SUM SPECIFIED ABOVE TO SELLER, SUCH FAILURE SHALL CONSTITUTE A
MATERIAL BREACH OF THIS PROVISION AND SELLER MAY ELECT TO SUE BUYER
UNDER THIS PROVISION OR TO WAIVE THIS PROVISION AND PROCEED AGAINST BUYER FOR ALL APPLICABLE DAMAGES RESULTING FROM BUYER’S DEFAULT. ___________________ ___________________
Seller’s Initials Buyer’s Initials
12. NOTICES. Any notices, demands or communications under this Agreement between the parties shall be in writing, and may be given by (i) personal service, (ii) overnight delivery, or (iii) mailing via United States mail, certified mail, postage prepaid, return receipt requested (“US Mail”), addressed to each party as set forth below or such other address as may be furnished in writing by a party, and such notice or communication shall, if properly addressed, be deemed to have been given (a) as of the date so delivered under delivery methods (i) or (ii) above, or (b) three (3) business days after deposit into the U.S. Mail.
To Seller: City of Yuba City as Successor Agency
1201 Civic Center Boulevard
Yuba City, CA 95993
Attn: Diana Langley, Executive Director
With a Copy to: Aleshire & Wynder, LLP
2440 Tulare Street Suite 410
Fresno, CA 93721
Attn: Shannon Chaffin, Agency Counsel
To Buyer: Sukhvinder Bassi
1635 Hastings Court
Yuba City, CA 95991
Brett Scheidel
1510 W. Catlett Road
Pleasant Grove, CA 95668
To Escrow Holder: Placer Title Company
1425 Butte House Road
Yuba City, CA 95993
Ana Campos, Senior Escrow Officer
13. GENERAL PROVISIONS.
13.1 Assignment. Neither party shall have the right to assign this Agreement or any interest or right hereunder or under the Escrow without the prior written consent of the other party. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective heirs, personal representatives, successors and assigns.
01248.0012/919634.1 11
13.2 Attorney’s Fees. In any action between the parties hereto, seeking enforcement of any of the terms and provisions of this Agreement or the Escrow, or in connection with the Property, the prevailing party in such action shall be entitled, to have and to recover from the other party its reasonable attorneys' fees and other reasonable expenses in connection with such action or proceeding, in addition to its recoverable court costs.
13.3 Interpretation; Governing Law. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates.
13.4 No Waiver. No delay or omission by either party in exercising any right or power accruing upon the compliance or failure of performance by the other party under the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either party of a breach of any of the covenants, conditions or agreements hereof to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof.
13.5 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto.
13.6 Severability. If any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such term, provisions, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
13.7 Merger. This Agreement and other documents incorporated herein by reference contain the entire understanding between the parties relating to the transaction contemplated hereby and all prior to contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect.
13.8 Execution in Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart.
13.9 Exhibits. Exhibits A, B, and C attached hereto are incorporated herein by reference.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for Purchase and Sale of Real Property and Escrow Instructions as of the date set forth above.
Note: Section 11 needs to be separately initialed by the parties.
01248.0012/919634.1 12
BUYER: SELLER:
__________________________
Sukhvinder Bassi
__________________________
Brett Scheidel
Accepted and agreed to:
ESCROW HOLDER:
PLACER TITLE
By: _________________________
Ana Campos, Escrow Officer
Dated: ________________, 2024
CITY OF YUBA CITY AS SUCCESSOR
AGENCY
By: _______________________________
Diana Langley, Executive Director
_________________, 2024
ATTEST:
__________________________________
Ciara Wakefield, Deputy Agency Secretary
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
By: ___________________________
Shannon Chaffin, Agency Counsel
01248.0012/919634.1 1
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
Being a portion of the lot or parcel of land conveyed by Julia A. Tankersley to Franklin R. Merrill and Margaret Merrill, his wife, dated August 13, 1936 and recorded August 31, 1936, in Book 92 of Official Records, page 141, Sutter County records, more particularly described as follows:
Beginning at a point on the West line of Wilbur Avenue, South 12° East (mag. Var.15° 20' East)
5.90 chains distant from the Southeast corner of the lot formerly owned by Sutter packing and canning company; and run thence South 88° West, 120 feet; thence Southerly in a direct line to a point in the Southerly line of the parcel of land so conveyed to Franklin R. Merrill and Margaret Merrill, his wife, as aforesaid, said less mentioned point being distant North 88° East along said Southerly line 10 feet from the Southwest corner of said parcel of land; thence North 88° East along said Southerly line 140 feet to the West line of Wilbur Avenue; thence North 12° West along said last mentioned line 84.76 feet to the point of beginning.
Excepting therefrom all that certain real property as contained in deed executed by John W.
Ramsaur, et al, to the City of Yuba City, a municipal corporation, dated May 15,1985 and recorded July 9, 1985, in Book 1141 of Official Records, page 619, Sutter County records, more particularly described as follows:
Beginning at the intersection of the Westerly line of Wilbur Avenue with the Southerly line of Stevens Avenue as described in the Deed to the City of Yuba City, recorded in Book 52 of deeds, page 46, Sutter County records; thence South 11° 26' 40" East along said Westerly line of Wilbur Avenue, a distance of 64.38 feet to the Southeast corner of the land described in the Deed to John W. Ramsaur, Jane Ramsaur, and William B. Ramsaur, recorded in Book 961 of Official Records, page 575, Sutter County records; thence South 89° 32' 20" West along the South line of said Ramsaur Parcel, a distance of 2.22 feet to a line parallel with, Westerly of, and 30 feet measured at right angles to the monumented center line of Wilbur Avenue; thence North 11° 24' 04" West along said line, a distance of 44.03 feet to the beginning of a tangent curve concave to the Southwest having a radius of 20 feet; thence along said curve through a central angle of 49° 44' 47", a distance of 17.36 feet; thence North 61° 08' 51" West, a distance of 13.39 feet to the said South line of Stevens Avenue; thence North 89° 32' 20" East along said South line of Stevens Avenue, a distance of 19.79 feet to the point of beginning.
APN: 052-401-014-000
01248.0012/919634.1 1
EXHIBIT B
GRANT DEED
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Sukhvinder Bassi
1635 Hastings Court
Yuba City, CA 95991
____________________________________________________________________________
GRANT DEED
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, CITY OF YUBA CITY AS SUCCESSOR AGENCY to the former Redevelopment Agency of City of Yuba City, a public agency (“Grantor”), hereby grants to Sukhvinder Bassi and Brett Scheidel as __________________ (“Grantee”), that certain real property in the City of Yuba City, County of Sutter, State of California, legally described on Exhibit A attached hereto and incorporated herein by reference (“Property”).
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on its behalf by its respective officers or agents hereunto as of the date below.
GRANTOR:
DATED: _______________, 2024
CITY OF YUBA CITY AS SUCCESSOR
AGENCY to the former Redevelopment
Agency of the City of Yuba City, a public
agency
By: _____________________________
Diana Langley,
Executive Director
ATTEST:
__________________________________
Ciara Wakefield, Deputy Agency Secretary
APN 052-401-014 (Space Above This Line for Recorder’s Office Use Only) THE UNDERSIGNED GRANTOR DECLARES:
Documentary Transfer Tax is: $___
(Exempt from Recording Fee per Gov. Code §6103)
Not to be executed until closing
01248.0012/919634.1 1
EXHIBIT A TO GRANT DEED
LEGAL DESCRIPTION OF PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
Being a portion of the lot or parcel of land conveyed by Julia A. Tankersley to Franklin R. Merrill and Margaret Merrill, his wife, dated August 13, 1936 and recorded August 31, 1936, in Book 92 of Official Records, page 141, Sutter County records, more particularly described as follows:
Beginning at a point on the West line of Wilbur Avenue, South 12° East (mag. Var.15° 20' East)
5.90 chains distant from the Southeast corner of the lot formerly owned by Sutter packing and canning company; and run thence South 88° West, 120 feet; thence Southerly in a direct line to a point in the Southerly line of the parcel of land so conveyed to Franklin R. Merrill and Margaret Merrill, his wife, as aforesaid, said less mentioned point being distant North 88° East along said Southerly line 10 feet from the Southwest corner of said parcel of land; thence North 88° East along said Southerly line 140 feet to the West line of Wilbur Avenue; thence North 12° West along said last mentioned line 84.76 feet to the point of beginning.
Excepting therefrom all that certain real property as contained in deed executed by John W.
Ramsaur, et al, to the City of Yuba City, a municipal corporation, dated May 15,1985 and recorded July 9, 1985, in Book 1141 of Official Records, page 619, Sutter County records, more particularly described as follows:
Beginning at the intersection of the Westerly line of Wilbur Avenue with the Southerly line of Stevens Avenue as described in the Deed to the City of Yuba City, recorded in Book 52 of deeds, page 46, Sutter County records; thence South 11° 26' 40" East along said Westerly line of Wilbur Avenue, a distance of 64.38 feet to the Southeast corner of the land described in the Deed to John W. Ramsaur, Jane Ramsaur, and William B. Ramsaur, recorded in Book 961 of Official Records, page 575, Sutter County records; thence South 89° 32' 20" West along the South line of said Ramsaur Parcel, a distance of 2.22 feet to a line parallel with, Westerly of, and 30 feet measured at right angles to the monumented center line of Wilbur Avenue; thence North 11° 24' 04" West along said line, a distance of 44.03 feet to the beginning of a tangent curve concave to the Southwest having a radius of 20 feet; thence along said curve through a central angle of 49° 44' 47", a distance of 17.36 feet; thence North 61° 08' 51" West, a distance of 13.39 feet to the said South line of Stevens Avenue; thence North 89° 32' 20" East along said South line of Stevens Avenue, a distance of 19.79 feet to the point of beginning.
APN: 052-401-014-000
01248.0012/919634.1 1
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2023 before me, ___________________________, a notary public, personally appeared _______________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________________
Notary Public
SEAL:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
01248.0012/919634.1 2
EXHIBIT C
DEED RESTRICTION
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Yuba City
1201 Civic Center Boulevard
Yuba City, CA 95993
Attn: City Manager
____________________________________________________________________________
DEED RESTRICTION
If ten (10) or more residential units are developed on the Property, not less than 15 percent of the total number of residential units developed on the property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. Rental units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision © of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in-interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code.
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on its behalf by its respective officers or agents hereunto as of the date below.
APN 052-401-014-000 (Space Above This Line for Recorder’s Office Use Only) THE UNDERSIGNED GRANTOR DECLARES:
Documentary Transfer Tax is: $___
(Exempt from Recording Fee per Gov. Code §6103)
01248.0012/919634.1 3
GRANTOR:
DATED: _______________, 2024
CITY OF YUBA CITY AS SUCCESSOR
AGENCY to the former Redevelopment
Agency of the City of Yuba City, a public
agency
By: _____________________________
Diana Langley
City Manager
ATTEST:
__________________________________
Ciara Wakefield, Deputy Agency Secretary
Not to be executed until closing
01248.0012/919634.1 1
EXHIBIT A TO DEED RESTRICTION
LEGAL DESCRIPTION OF PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
Being a portion of the lot or parcel of land conveyed by Julia A. Tankersley to Franklin R. Merrill and Margaret Merrill, his wife, dated August 13, 1936 and recorded August 31, 1936, in Book 92 of Official Records, page 141, Sutter County records, more particularly described as follows:
Beginning at a point on the West line of Wilbur Avenue, South 12° East (mag. Var.15° 20' East)
5.90 chains distant from the Southeast corner of the lot formerly owned by Sutter packing and canning company; and run thence South 88° West, 120 feet; thence Southerly in a direct line to a point in the Southerly line of the parcel of land so conveyed to Franklin R. Merrill and Margaret Merrill, his wife, as aforesaid, said less mentioned point being distant North 88° East along said Southerly line 10 feet from the Southwest corner of said parcel of land; thence North 88° East along said Southerly line 140 feet to the West line of Wilbur Avenue; thence North 12° West along said last mentioned line 84.76 feet to the point of beginning.
Excepting therefrom all that certain real property as contained in deed executed by John W.
Ramsaur, et al, to the City of Yuba City, a municipal corporation, dated May 15,1985 and recorded July 9, 1985, in Book 1141 of Official Records, page 619, Sutter County records, more particularly described as follows:
Beginning at the intersection of the Westerly line of Wilbur Avenue with the Southerly line of Stevens Avenue as described in the Deed to the City of Yuba City, recorded in Book 52 of deeds, page 46, Sutter County records; thence South 11° 26' 40" East along said Westerly line of Wilbur Avenue, a distance of 64.38 feet to the Southeast corner of the land described in the Deed to John W. Ramsaur, Jane Ramsaur, and William B. Ramsaur, recorded in Book 961 of Official Records, page 575, Sutter County records; thence South 89° 32' 20" West along the South line of said Ramsaur Parcel, a distance of 2.22 feet to a line parallel with, Westerly of, and 30 feet measured at right angles to the monumented center line of Wilbur Avenue; thence North 11° 24' 04" West along said line, a distance of 44.03 feet to the beginning of a tangent curve concave to the Southwest having a radius of 20 feet; thence along said curve through a central angle of 49° 44' 47", a distance of 17.36 feet; thence North 61° 08' 51" West, a distance of 13.39 feet to the said South line of Stevens Avenue; thence North 89° 32' 20" East along said South line of Stevens Avenue, a distance of 19.79 feet to the point of beginning.
APN: 052-401-014-000
01248.0012/919634.1 1
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2024 before me, ___________________________, a notary public, personally appeared _______________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________________
Notary Public
SEAL:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
ATTACHMENT 2
52-380-019
52-380-025
52-380-017
53-194-013
52-401-014
53-220-030
52-401-009
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WILBUR
PLUMAS
PERCY
FRANKLIN
A
MOORE
NIELSON
ELM
DEL MONTE
WOODBRIDGE
PALM
DORMAN
TABER
MORTON
ROWE
JEWELL
WILLOW
SPRUCE
BROOKS
EMERSON
MAIN
CAMPBELL
BOYD
BENNETT
TOWN SQUARE
STEVENS
PERCY
DEL MONTE
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TABER
1 inch = 300 feet
Legend
City owned parcels
Successor Agency owned parcels
Parcels
VICINITY MAP
Agenda Item 11
CITY OF YUBA CITY
STAFF REPORT
Date: May 7, 2024
To: Honorable Mayor & Members of the City Council;
From: Administration Department
Presentation By: Diana Langley, City Manager
Summary
Subject: Agreement for Purchase and Sale of 356 Wilbur Avenue (APN 052-401-009) to Sukhvinder Bassi and Brett Scheidel
Recommendation: Adopt a Resolution authorizing the City Manager to execute an Agreement for Purchase and Sale of Real Property located at 356 Wilbur Avenue (APN 052- 401-009), and all other necessary documents, in the amount of $40,000 to Sukhvinder Bassi and Brett Scheidel, and authorize the Finance Director to place sale proceeds in the General Fund
Fiscal Impact: Sale Price - $40,000 plus savings associated with no longer maintaining the property
Purpose:
To facilitate and encourage the development of infill property located in the Town Center area.
Council's Strategic Goal:
This item addresses multiple City Council Strategic Goals, primarily maintaining the financial stability and sustainability of the City and enhancing the business-friendly environment for the City.
Background:
356 Wilbur Avenue is a 0.19-acre vacant parcel located at the northwest corner of Wilbur Avenue and Stevens Avenue. On November 1, 2022, City Council formally declared the property to be surplus and staff initiated the Surplus Land Act (SLA) process. Through the SLA process, no housing sponsors or developers submitted a letter of interest to purchase the property and the California Department of Housing and Community Development (HCD) cleared the property for sale.
Analysis:
In August 2023, an appraisal was prepared by Owen & Associates Valuation, Inc., in which the appraised amount was $40,000. The City contracted with Coldwell Banker Commercial Valley Brokers (Coldwell Banker) to represent the City and place the property for sale for $40,000. Coldwell Banker received an offer from Sukhvinder Bassi and Brett Scheidel to purchase the Site "as is" for $40,000.
The attached Agreement for Purchase and Sale details the terms of the transaction.
Fiscal Impact:
The proposed purchase price is $40,000 with net proceeds being less due to sales commission, title, and escrow fees. Upon transfer of the property, the net proceeds will be placed in the General Fund.
Alternatives:
Do not authorize the City Manager to sign the Agreement and provide direction for the disposition of the property.
Recommendation:
Adopt a Resolution authorizing the City Manager to execute an Agreement for Purchase and Sale of Real Property located at 356 Wilbur Avenue (APN 052-401-009), and all other necessary documents, in the amount of $40,000 to Sukhvinder Bassi and Brett Scheidel, and authorize the Finance Director to place sale proceeds in the General Fund.
Attachments:
1. Resolution -356 Wilbur Avenue
2. Exhibit A - Purchase and Sale Agreement - 356 Wilbur Avenue - APN 052-401-009
3. Location Map
Prepared By: Submitted By:
Diana Langley
City Manager
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY LOCATED AT 356 WILBUR AVENUE (APN 52-401-009), AND ALL OTHER NECESSARY DOCUMENTS, IN THE AMOUNT OF $40,000 TO
SUKHVINDER BASSI AND BRETT SCHEIDEL, AND AUTHORIZE THE FINANCE
DIRECTOR TO PLACE SALE PROCEEDS IN THE GENERAL FUND
WHEREAS, on November 1, 2022, the City Council declared 356 Wilbur Avenue to be surplus property; and
WHEREAS, in accordance with the Surplus Land Act, staff issued a notice of availability and did not receive any interest from any housing sponsors; and WHEREAS, the Department of Housing and Community Development has determined that staff met all the requirements under the Surplus Land Act and the Successor Housing Agency is permitted to proceed with the sale or lease of the property; and WHEREAS, an appraisal was prepared by Owen & Associates Valuation, Inc., and the appraised value is $40,000; and
WHEREAS, the City received an offer from Sukhvinder Bassi and Brett Scheidel to purchase the property for $40,000 in “as is” condition; and
WHEREAS, staff recommends that the City Council accept the offer and authorize the City Manager to execute an Agreement for Purchase and Sale; and NOW, THEREFORE, the City Council of the City of Yuba City does hereby resolve as follows:
1. The City Manager is authorized to execute an Agreement for Purchase and Sale of Real Property located at 356 Wilbur Avenue (APN 52-401-009), and all other necessary documents, in the amount of $40,000 to Sukhvinder Bassi and Brett Scheidel.
2. The Finance Director is authorized to place sale proceeds in the General Fund.
The forgoing Resolution of the City Council of the City of Yuba City was duly introduced, passed and adopted at a regular meeting thereof held on the 7th day of May, 2024.
AYES:
NOES:
ABSENT:
Shon Harris, Mayor
ATTEST:
Ciara Wakefield, Deputy City Clerk
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY
________________________
Shannon Chaffin
City Attorney
Exhibit A: Purchase and Sale Agreement
01248.0012/919634.1 1
Exhibit A
01248.0012/919634.1 2
AGREEMENT FOR PURCHASE AND SALE
OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS
THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made this 7th day of May, 2024 (“Agreement Date”) by and among Sukhvinder Bassi and Brett Scheidel (the “Buyer”), City of Yuba City, a public agency (“Seller”) and PLACER TITLE COMPANY, a corporation (“Escrow Holder” and “Title Company”).
R E C I T A L S:
A. Seller owns that certain residential real property located at 356 Wilbur Avenue in Yuba City, State of California (APN 52-401-009) legally described as set forth on Exhibit A ("Property").
B. Buyer is willing to purchase the Property in AS-IS condition pursuant to the terms of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and incorporating the recitals above, the parties hereto agree as follows:
TERMS AND CONDITIONS:
1. PURCHASE AND SALE OF PROPERTY. Buyer hereby agrees to purchase from Seller, and Seller agrees to sell to Buyer, the Property in AS-IS condition.
2. OPENING OF ESCROW. Within five (5) days after the execution of this Agreement by both Buyer and Seller, the parties shall open an escrow (“Escrow”) with Placer Title Company (Escrow Holder) by causing an executed copy of this Agreement to be deposited with Ana Campos, escrow officer (“Escrow Officer”) at Placer Title Company, 1425 Butte House Road, Yuba City, [email protected], (530) 671-5040 (“Escrow”) together with the Deposit (as defined in Section 3.2(a)) (“Opening of Escrow”).
3. PURCHASE PRICE.
3.1 Purchase Price. The Purchase Price for the Property is Forty Thousand Dollars ($40,000) (“Purchase Price”).
3.2 Payment of Purchase Price. The Purchase Price shall be paid as follows:
(a) Deposit. At Opening of Escrow, Buyer shall deposit the sum of Two Thousand Dollars ($2,000) with Escrow Holder (“Deposit”). (b) Balance of Funds. At least one (1) business day prior to the Closing, Buyer shall deposit balance of the Purchase Price with Escrow Holder in Good Funds (as defined below).
3.3 Disbursement of Seller’s Net Proceeds. At the Closing, the net proceeds (as
01248.0012/919634.1 3
determined by the Seller settlement statement) shall be disbursed to Seller.
3.4 Good Funds. All funds deposited in Escrow shall be in “Good Funds” which means a wire transfer of funds, cashier's or certified check drawn on or issued by the offices of a financial institution located in the State of California.
4. ADDITIONAL FUNDS AND DOCUMENTS REQUIRED FROM BUYER AND SELLER.
4.1 Seller. Seller agrees that on or before 12:00 noon on the day preceding the Closing Date, Seller will deposit with Escrow Holder such funds and other items and instruments (executed and acknowledged, if appropriate) as may be necessary in order for the Escrow Holder to comply with this Agreement, including without limitation:
a. Executed and acknowledged grant deed in the form of Exhibit B (“Grant Deed”). b. A Non-Foreign Affidavit as required by federal law.
c. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement. d. Executed and acknowledged Deed Restriction in the form of Exhibit C (“Deed Restriction”).
4.2 Buyer. Buyer agrees that on or before 12:00 noon on the date preceding the Closing Date, Buyer will deposit with Escrow Holder all additional funds and/or documents (executed and acknowledged, if appropriate) which are necessary to comply with the terms of this Agreement, including without limitation:
a. A Preliminary Change of Ownership Statement completed in the manner required in Sutter County.
b. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement.
4.3 Recordation, Completion and Distribution of Documents. Escrow Holder will cause Grant Deed and Deed Restriction to be recorded when it can issue the Owner’s Title Policy in accordance with Section 6, and holds for the account of Buyer and Seller, respectively, the funds and items described above to be delivered to Buyer and Seller, respectively, through Escrow, less costs, expenses and disbursements chargeable to Seller pursuant to the terms hereof.
5. CLOSING DATE; TIME IS OF ESSENCE.
5.1 Closing Date. Escrow shall close within seventy-five (75) days after Buyer has provided the Buyer's Due Diligence Approval Notice by the Outside Due Diligence Date (pursuant to Section 7), but no later than ninety (90) days after the Opening of Escrow (“Closing Date”) unless extended as evidenced by a writing signed by both parties. The terms “Close of Escrow” and/or “Closing” are used herein to mean the time Grant Deed is filed for recording by the Escrow Holder in the Office of the County Recorder of Sutter County, California.
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5.2 Possession. Upon the Close of Escrow, exclusive possession and occupancy of the Property shall be delivered to Buyer free and clear of all claims of possession and all debris.
5.3 Time is of Essence. Buyer and Seller specifically agree that time is of the essence.
5.4 City Manager’s Authority. Seller by its execution of this Agreement hereby agrees that its City Manager or designee (who has been designated by City Manager’s written notice delivered to Buyer and Escrow Holder) shall, in City Manager’s sole and exclusive discretion, have authority:
(i) to execute documents on behalf of Seller including, but not limited to, issuing approvals, disapprovals and extensions. Any such approval, disapproval or extension executed by the City Manager or their designee shall be binding on Seller. (ii) make minor modifications to this Agreement in order to fulfill the direction of the City Council, provided that such minor modifications are approved by the City Attorney.
6. TITLE POLICY.
6.1 Approval of Title.
(a) Promptly following execution of this Agreement but in no event later than five (5) days following Opening of Escrow, a preliminary title report shall be issued by Placer Title Company (“Title Company”), describing the state of title of the Property, together with copies of all exceptions specified therein and a map plotting all easements specified therein (“Preliminary Title Report”). Within five (5) days after Buyer's receipt of the Preliminary Title Report, Buyer shall notify Seller in writing (“Buyer's Title Notice”) of Buyer's disapproval of any matters contained in the Preliminary Title Report (“Disapproved Exceptions”). (b) In the event Buyer delivers Buyer's Title Notice within said period, Seller shall have a period of five (5) days after receipt of Buyer's Title Notice in which to notify Buyer of Seller's election to either (i) agree to attempt to remove the Disapproved Exceptions prior to the Close of Escrow; or (ii) decline to remove any such Disapproved Exceptions (“Seller's Notice”).
If Seller notifies Buyer of its election to decline to remove the Disapproved Exceptions, or if Seller is unable to remove the Disapproved Exceptions, Buyer may elect either to terminate this Agreement and the Escrow or to accept title to the Property subject to the Disapproved Exception(s). Buyer shall exercise such election by delivery of written notice to Seller and Escrow Holder within five (5) days following the earlier of (i) the date of written advice from Seller that such Disapproved Exception(s) cannot be removed; or (ii) the date Seller declines to remove such Disapproved Exception(s).
(c) Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement, provided, however, that Buyer's initial period of review and approval or disapproval of any such additional exceptions shall be limited to ten (10) days following receipt of notice of such additional exceptions. (d) Nothing to the contrary herein withstanding, Buyer shall be deemed to have automatically objected to all leases, deeds of trust, mortgages, judgment liens, federal and state
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income tax liens, delinquent general and special real property taxes and assessments and similar monetary encumbrances affecting the Property, and Seller shall discharge any such nonpermitted title matter of record prior to or concurrently with the Close of Escrow.
6.2 Title Policy. At the Close of Escrow, Escrow Holder shall furnish Buyer with an ALTA/CLTA Homeowner’s Owner's Policy of title insurance (“Owner’s Title Policy”) insuring title to the Property vested in Buyer in the amount of the Purchase Price, containing only exceptions approved or waived by Buyer in accordance with this Section. The cost of the Owner’s Title Policy to Seller shall be paid by Buyer.
7. TRANSFER DISCLOSURE STATEMENT, STATUTORY DISCLOSURES & DUE DILIGENCE.
7.1 Natural Hazard Disclosure Report with Tax Disclosures. Within two (2) days after the Opening of Escrow, Escrow Holder shall order and deliver to Buyer a comprehensive natural hazard disclosure and tax report from Disclosure Source (“NHD Report”) for Buyer’s review and approval. If Buyer disapproves the NHD Report, Buyer shall notify Seller with a copy to Escrow Holder within the Due Diligence Period. If Buyer does not disapprove the NHD Report within the Due Diligence Period, Buyer shall be deemed to have approved it. Buyer shall execute the acknowledgement statement that accompanies the NHD Report and deliver a copy to Seller.
7.2 Material Facts & Insurance Claims. Within two (2) days of the Opening of Escrow, Seller shall disclose to Buyer in writing all known material facts and defects including known insurance claims within the last five (5) years preceding the Agreement Date
7.3 Other Statutory Disclosures. Within two (2) days of Opening of Escrow, Seller shall deliver to Buyer all other applicable statutory disclosures (including, but not limited to, notice or actual knowledge of release of illegal controlled substance, etc.) as required by law for Buyer’s review and approval. If Buyer disapproves any such disclosures, Buyer shall notify Seller with a copy to Escrow Holder within the Due Diligence Period. If Buyer does not disapprove a statutory disclosure within the Due Diligence Period, Buyer shall be deemed to have approved it and Buyer shall execute any documents reasonably required by Seller to evidence same and deliver same to Seller.
7.4 Due Diligence. For a period of up to sixty (60) days following the Opening of Escrow ("Due Diligence Period"), Buyer shall have the right to review and inspect the Property and conduct such tests as reasonably determined by Buyer. Buyer shall use reasonable efforts to expediate any and all investigations provide same does not involve additional cost to Seller.
Seller grants to Buyer, its agents and employees, upon reasonable notice to Seller, a limited license to enter the Property for the purpose of conducting such due diligence as reasonably required by Buyer at Buyer's sole cost and expense. As a condition to Buyer's entry and inspection, Buyer shall keep the Property free and clear of all materialmen's liens, lis pendens or any other liens arising out of the entry and any work performed under this Agreement. Buyer shall notify Seller in writing ("Buyer's Due Diligence Notice") on or before the expiration of the Due Diligence Period of Buyer's approval of the condition of the Property as well as the TDS, NHD Report, Lead Paint Disclosure and all other disclosures and notices delivered to Buyer under this Agreement, which approval may be withheld in Buyer's sole discretion. Failure of Seller to provide access to the Property to inspect the Property at a day and time requested by Buyer shall be a material breach of this Agreement and Buyer shall have the right to immediately terminate this Agreement and the escrow.
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7.5 Indemnity: Buyer agrees to defend and indemnify Seller for any claims that arise out of Buyer’s inspection or testing of the Property.
7.6 Statutory Disclosures. As required by law, Seller makes the following disclosures to Buyer:
a. No HOA. The Property is subject to certain covenants, conditions and restrictions.
However, there is no homeowner association and there are no HOA assessments to which the Property is subject.
b. Megan’s Law. “Notice: Pursuant to Section 290.46 of the Penal Code information about specified registered sex offenders is made available to the public via an internet website maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on a sex offender’s criminal history, this information will include either an address at which the offender resides or the community of residence and ZIP code in which he or she resides. (Neither Seller or Broker are required to check this website).”
c. 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 at the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at www.npms.phmsa.dot.gov. To seek further information about possible transmission lines 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 Web site.”
8. CONDITIONS PRECEDENT TO CLOSE OF ESCROW.
8.1 Conditions to Buyer's Obligations. The obligations of Buyer under this Agreement are subject to the satisfaction or written waiver, in whole or in part, by Buyer of each of the following conditions precedent (“Buyer’s Conditions Precedent”):
(a) Title Company will issue the Owner’s Title Policy as specified in Section 6.2. (b) Escrow Holder holds and will deliver to Buyer the instruments accruing to Buyer pursuant to this Agreement.
(c) Seller is not in default of its obligations under this Agreement.
8.2 Conditions to Seller's Obligations. The obligations of Seller under this Agreement are subject to the satisfaction or written waiver, in whole or in part, by Seller of the following conditions precedent:
(a) Escrow Holder holds and will deliver to Seller the instruments and funds accruing to Seller pursuant to this Agreement.
(b) Buyer shall have executed all documents required under this Agreement and delivered same to Seller.
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(c) Buyer is not in default of its obligations under this Agreement.
9. LIMITED REPRESENTATIONS AND WARRANTIES.
9.1 Limited Representations and Warranties. Seller hereby makes the following representations and warranties to Buyer to the best of its knowledge and without the duty to investigate, each of which is true in all respects as of the Agreement Date and the Opening of Escrow and shall be true in all respects on the date of Close of Escrow on the Property:
a. Seller has received no notice and/or has no knowledge that any governmental authority or any employee or agent thereof considers the present or proposed operation, use or ownership of the Property to violate or have violated any ordinance, rule, law, regulation or order of any government or agency, body or subdivision thereof, or that any investigation has been commenced or is contemplated respecting such possible violations. b. There are no pending or threatened lawsuits or claims which would affect the Property.
c. The Property is not subject to a homeowner’s association nor any such association assessments.
d. The Property is not in violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and ground water conditions. e. Seller has received no written notice from any third parties, prior owners of the Property, or any federal, state or local governmental agency indicating that any hazardous waste remedial or clean-up work will be required on the Property. There are no environmental, health or safety hazards on, under or about the Property, including but not limited to soil and groundwater conditions.
f. There are no contracts, leases, claims or rights affecting the Property and no agreements entered into by or under Seller that shall survive the Close of Escrow. g. Until the Closing, Seller shall not do anything which would impair Seller’s title to any of the Property.
h. Seller is not, and as of the Close of Escrow will not be, a foreign person within the meaning of Internal Revenue Code Section 1445 or an out-of-state seller under California Revenue and Tax Code Section 18805 and that it will deliver to Buyer through Escrow a nonforeign affidavit on Escrow Holder's standard form pursuant to Internal Revenue Code Section 1445(b)(2) and the Regulations promulgated thereunder and a California Form 590-RE (“Nonforeign Affidavit”). i. Until the Closing, if Seller learns of any fact or condition which would cause any of the warranties and representations in this Section not to be true as of the Closing, Seller shall immediately give written notice of such fact or condition to Buyer. j. No construction or repair work has been done on the Property within the six (6) months prior to the Opening of Escrow.
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9.2 Breach; Indemnification. If a breach of a representation, warranty or covenants occurs before Closing and Buyer is aware that such a breach has occurred, the breach shall be grounds to terminate this Agreement in Buyer’s sole discretion. If Buyer does not elect to terminate this Agreement, Buyer shall be deemed to have waived any such breach.
10. ESCROW PROVISIONS.
10.1 Escrow Instructions. Sections 1; 2 through 6 inclusive, 8, 10, 12 and 13 constitute the escrow instructions to Escrow Holder. If required by Escrow Holder, Buyer and Seller agree to execute Escrow Holder's standard escrow instructions, provided that the same are consistent with and do not conflict with the provisions of this Agreement. In the event of any such conflict, the provisions of this Agreement shall prevail. The terms and conditions in sections of this Agreement not specifically referenced above are additional matters for information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder’s general provisions directly from Escrow Holder and will execute such provision upon Escrow Holder’s request. To the extent that 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 agree to execute additional instructions, documents and forms provide by Escrow Holder that are reasonably necessary to close Escrow.
10.2 General Escrow Provisions. Escrow Holder shall deliver the Owner’s Title Policy to Buyer and instruct the Sutter County Recorder to mail the Grant Deed to Buyer at the address set forth in Section 12 after recordation. All funds received in this Escrow shall be deposited in one or more general escrow accounts of the Escrow Holder with any bank doing business in Sutter County, California, and may be disbursed to any other general escrow account or accounts. All disbursements shall be according to that party's instructions.
10.3 Utilities. Buyer and Seller shall cause all utilities which are in the name of Seller to be transferred to the name of Buyer as of the Close of Escrow or as soon thereafter as practicable. Utilities shall be prorated to the Close of Escrow. In the event final amounts with respect to said prorations are not available as of Close of Escrow, the proration shall be done on an estimated basis and the parties shall prepare a final proration within sixty (60) days following Close of Escrow. Any party who is obligated to pay net amounts based on said final proration shall reimburse the other party said amount within thirty (30) days after completion of the final proration.
10.4 Real Property Taxes. Seller is a public agency and exempt from real property taxes so no prorations will be required at Closing.
10.5 Payment of Costs.
a. Cost Allocation. Buyer shall pay the costs for the Owner’s Title Policy, onehalf of escrow costs and recording fees (“Buyer’s Charges”). Seller shall pay the cost of the NHD Report, documentary transfer taxes, one-half of the escrow costs and any fees and costs charged by any lender to obtain releases or consents or otherwise put title in the condition described in Section 6 (“Seller’s Charges”). All other costs of Escrow not otherwise specifically allocated by this Agreement shall be apportioned between the parties in a manner consistent with the custom and usage of Escrow Holder.
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b. Closing Statement. At least three (3) business days prior to the Closing Date, Escrow Holder shall furnish Buyer and Seller with a preliminary Escrow closing statement which shall include each party’s respective shares of costs.
The preliminary closing statement shall be approved in writing by the parties.
As soon as reasonably possible following the Close of Escrow, Escrow Holder shall deliver a copy of the final Escrow closing statement to the Parties.
10.6 Termination and Cancellation of Escrow. If Escrow fails to close as provided above, either party may elect to cancel this Escrow upon written notice to the other party and Escrow Holder. Upon cancellation, Escrow Holder is instructed to return all funds and documents then in Escrow to the respective depositor of the same with Escrow Holder.
Cancellation of Escrow, as provided herein, shall be without prejudice to whatever legal rights Buyer or Seller may have against each other arising from the Escrow or this Agreement.
10.7 Information Report. Escrow Holder shall file and Buyer and Seller agree to cooperate with Escrow Holder and with each other in completing any report (“Information Report”) and/or other information required to be delivered to the Internal Revenue Service pursuant to Internal Revenue Code § 6045(e) regarding the real estate sales transaction contemplated by this Agreement, including without limitation, Internal Revenue Service Form 1099-B as such may be hereinafter modified or amended by the Internal Revenue Service, or as may be required pursuant to any regulation now or hereinafter promulgated by the Treasury Department with respect thereto. Buyer and Seller also agree that Buyer and Seller, their respective employees and attorneys, and escrow Holder and its employees, may disclose to the Internal Revenue Service, whether pursuant to such Information Report or otherwise, any information regarding this Agreement or the transactions contemplated herein as such party reasonably deems to be required to be disclosed to the Internal Revenue Service by such party pursuant to Internal Revenue Code Section 6045(e), and further agree that neither Buyer nor Seller shall seek to hold any such party liable for the disclosure to the Internal Revenue Service of any such information.
10.8 No Withholding as Foreign Seller. Seller represents and warrants to Buyer that Seller is not, and as of the Close of Escrow will not be, a foreign person within the meaning of Internal Revenue Code § 1445 or an out-of-state seller under California Revenue and Tax Code § 18805 and that it will deliver to Buyer on or before the Close of Escrow a non-foreign affidavit on Escrow Holder's standard form pursuant to Internal Revenue Code §1445(b)(2) and the Regulations promulgated thereunder and a California Form 590-RE.
10.9 Brokerage Commissions. Neither party is represented by a broker. Buyer and Seller each agree to indemnify and hold the other parties harmless from and against all liabilities, costs, damages and expenses, including, without limitation, attorneys' fees, resulting from any claims or fees or commissions, based upon agreements by it, if any, to pay a broker's commission and/or finder's fee except as specified above.
11. LIQUIDATED DAMAGES.
IF BUYER SHOULD MATERIALLY DEFAULT UNDER THIS AGREEMENT, BUYER AND
SELLER AGREE THAT SELLER WILL INCUR DAMAGES BY REASON OF SUCH
DEFAULT WHICH DAMAGES SHALL BE IMPRACTICAL AND EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE, TO ASCERTAIN. THEREFORE, BUYER AND SELLER, IN A REASONABLE EFFORT TO ASCERTAIN WHAT SELLER’S DAMAGES
WOULD BE IN THE EVENT OF SUCH DEFAULT BY BUYER HAVE AGREED BY
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PLACING THEIR INITIALS BELOW THAT THE DEPOSIT SHALL CONSTITUTE A REASONABLE ESTIMATE OF SELLER’S DAMAGES UNDER THE PROVISIONS OF SECTIONS 1671 AND 1677 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE FOR A BREACH PRIOR TO THE CLOSING. IF BUYER FAILS TO PROMPTLY DELIVER THE
SUM SPECIFIED ABOVE TO SELLER, SUCH FAILURE SHALL CONSTITUTE A
MATERIAL BREACH OF THIS PROVISION AND SELLER MAY ELECT TO SUE BUYER
UNDER THIS PROVISION OR TO WAIVE THIS PROVISION AND PROCEED AGAINST BUYER FOR ALL APPLICABLE DAMAGES RESULTING FROM BUYER’S DEFAULT. ___________________ ___________________
Seller’s Initials Buyer’s Initials
12. NOTICES. Any notices, demands or communications under this Agreement between the parties shall be in writing, and may be given by (i) personal service, (ii) overnight delivery, or (iii) mailing via United States mail, certified mail, postage prepaid, return receipt requested (“US Mail”), addressed to each party as set forth below or such other address as may be furnished in writing by a party, and such notice or communication shall, if properly addressed, be deemed to have been given (a) as of the date so delivered under delivery methods (i) or (ii) above, or (b) three (3) business days after deposit into the U.S. Mail.
To Seller: City of Yuba City
1201 Civic Center Boulevard
Yuba City, CA 95993
Attn: Diana Langley, City Manager
With a Copy to: Aleshire & Wynder, LLP
2440 Tulare Street Suite 410
Fresno, CA 93721
Attn: Shannon Chaffin, City Attorney
To Buyer: Sukhvinder Bassi
1635 Hastings Court
Yuba City, CA 95991
Brett Scheidel
1510 W. Catlett Road,
Pleasant Grove, CA 95668
To Escrow Holder: Placer Title Company
1425 Butte House Road
Yuba City, CA 95993
Ana Campos, Senior Escrow Officer
13. GENERAL PROVISIONS.
13.1 Assignment. Neither party shall have the right to assign this Agreement or any interest or right hereunder or under the Escrow without the prior written consent of the other party. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective heirs, personal representatives, successors and assigns.
01248.0012/919634.1 11
13.2 Attorney’s Fees. In any action between the parties hereto, seeking enforcement of any of the terms and provisions of this Agreement or the Escrow, or in connection with the Property, the prevailing party in such action shall be entitled, to have and to recover from the other party its reasonable attorneys' fees and other reasonable expenses in connection with such action or proceeding, in addition to its recoverable court costs.
13.3 Interpretation; Governing Law. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates.
13.4 No Waiver. No delay or omission by either party in exercising any right or power accruing upon the compliance or failure of performance by the other party under the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either party of a breach of any of the covenants, conditions or agreements hereof to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof.
13.5 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto.
13.6 Severability. If any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such term, provisions, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
13.7 Merger. This Agreement and other documents incorporated herein by reference contain the entire understanding between the parties relating to the transaction contemplated hereby and all prior to contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect.
13.8 Execution in Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart.
13.9 Exhibits. Exhibits A, B, and C are attached hereto are incorporated herein by reference.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for Purchase and Sale of Real Property and Escrow Instructions as of the date set forth above.
Note: Section 11 needs to be separately initialed by the parties.
01248.0012/919634.1 12
BUYER: SELLER:
__________________________
Sukhvinder Bassi
__________________________
Brett Scheidel
Accepted and agreed to:
ESCROW HOLDER:
PLACER TITLE
By: _________________________
Ana Campos, Escrow Officer
Dated: ________________, 2024
CITY OF YUBA CITY
By: _______________________________
Diana Langley, City Manager
_________________, 2024
ATTEST:
__________________________________
Ciara Wakefield, Deputy City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
By: ___________________________
Shannon Chaffin, City Attorney
01248.0012/919634.1 1
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
A portion of Subdivision "D" of Yuba City, California, particularly described as follows:
Beginning at the intersection of the Westerly line of Wilbur Avenue with the Northerly line of Stevens Avenue, said point of intersection being 1,027,91 feet Southerly measured along said Westerly line of Wilbur Avenue from an iron pin marking the intersection of said Westerly line of Wilbur Avenue with the Southerly line of "B" Street; running thence Westerly along said Northerly line of Stevens Avenue, 150.00 feet; thence Northerly at right angles to said Northerly line of Stevens Avenue, 63,81 feet; thence Easterly parallel to said Northerly line of Stevens Avenue 137.64 feet to said Westerly line of Wilbur Avenue and thence Southerly along said Westerly line of Wilbur Avenue, 65, 00 feet to the point of beginning.
Excepting therefrom, that portion of the above-described land as conveyed to the City of Yuba City, in the deed recorded July 9, 1985, in Book 1141, page 599, Official Records, described as follows:
Beginning at the intersection of the Westerly line of Wilbur Avenue with the Northerly line of Stevens Avenue as described in the deed to the City of Yuba City, recorded in Book 52 of Deeds, Page 46, Sutter County records; thence North 11° 26' 40" West along said Westerly Line of Wilbur Avenue a distance of 65.00 feet to the Northeast corner of the land described in the Deed to James E. Granneman recorded in Book 831, page 463 of Official Records of Sutter County , California; thence South 89° 32' 20” West, along the Northerly line of said Granneman Parcel, a distance of 2.09 feet to a line parallel with, Westerly of, and 30 feet measured at right angles to the monumented center line of Wilbur Avenue; thence South 11° 24' 04" East along said line a distance of 36.69 feet to the beginning of a tangent curve concave to the Northwest having a radius of 20 feet; thence along said curve through a central angle of 100° 56' 24" a distance of 35.23 feet, to a line parallel with Northerly of and 4 feet measured at right angles to the Northerly line of said Stevens Avenue; thence South 00° 27’ 40” East, a distance of 4.00 feet to the North line of said Stevens Avenue; thence North 89° 32' 20" East, along said North line a distance of 27.15 feet to the Point of Beginning, containing.366 square feet more or less APN: 052-401-009-000
01248.0012/919634.1 1
EXHIBIT B
GRANT DEED
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Sukhvinder Bassi
1635 Hastings Court
Yuba City, CA 95991
____________________________________________________________________________
GRANT DEED
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, CITY OF YUBA CITY, a public agency (“Grantor”), hereby grants to Sukhvinder Bassi and Brett Scheidel as __________________ (“Grantee”), that certain real property in the City of Yuba City, County of Sutter, State of California, legally described on Exhibit A attached hereto and incorporated herein by reference (“Property”).
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on its behalf by its respective officers or agents hereunto as of the date below.
GRANTOR:
DATED: _______________, 2024
CITY OF YUBA CITY, a public agency
By: _____________________________
Diana Langley,
City Manager
ATTEST:
__________________________________
Ciara Wakefield, Deputy City Clerk
APN 052-401-009-000 (Space Above This Line for Recorder’s Office Use Only) THE UNDERSIGNED GRANTOR DECLARES:
Documentary Transfer Tax is: $___
(Exempt from Recording Fee per Gov. Code §6103)
Not to be executed until closing
01248.0012/919634.1 1
EXHIBIT A TO GRANT DEED
LEGAL DESCRIPTION OF PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
A portion of Subdivision "D" of Yuba City, California, particularly described as follows:
Beginning at the intersection of the Westerly line of Wilbur Avenue with the Northerly line of Stevens Avenue, said point of intersection being 1,027,91 feet Southerly measured along said Westerly line of Wilbur Avenue from an iron pin marking the intersection of said Westerly line of Wilbur Avenue with the Southerly line of "B" Street; running thence Westerly along said Northerly line of Stevens Avenue, 150.00 feet; thence Northerly at right angles to said Northerly line of Stevens Avenue, 63,81 feet; thence Easterly parallel to said Northerly line of Stevens Avenue 137.64 feet to said Westerly line of Wilbur Avenue and thence Southerly along said Westerly line of Wilbur Avenue, 65, 00 feet to the point of beginning.
Excepting therefrom, that portion of the above-described land as conveyed to the City of Yuba City, in the deed recorded July 9, 1985, in Book 1141, page 599, Official Records, described as follows:
Beginning at the intersection of the Westerly line of Wilbur Avenue with the Northerly line of Stevens Avenue as described in the deed to the City of Yuba City, recorded in Book 52 of Deeds, Page 46, Sutter County records; thence North 11° 26' 40" West along said Westerly Line of Wilbur Avenue a distance of 65.00 feet to the Northeast corner of the land described in the Deed to James E. Granneman recorded in Book 831, page 463 of Official Records of Sutter County , California; thence South 89° 32' 20” West, along the Northerly line of said Granneman Parcel, a distance of 2.09 feet to a line parallel with, Westerly of, and 30 feet measured at right angles to the monumented center line of Wilbur Avenue; thence South 11° 24' 04" East along said line a distance of 36.69 feet to the beginning of a tangent curve concave to the Northwest having a radius of 20 feet; thence along said curve through a central angle of 100° 56' 24" a distance of 35.23 feet, to a line parallel with Northerly of and 4 feet measured at right angles to the Northerly line of said Stevens Avenue; thence South 00° 27’ 40” East, a distance of 4.00 feet to the North line of said Stevens Avenue; thence North 89° 32' 20" East, along said North line a distance of 27.15 feet to the Point of Beginning, containing.366 square feet more or less APN: 052-401-009-000
01248.0012/919634.1 1
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2024 before me, ___________________________, a notary public, personally appeared _______________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________________
Notary Public
SEAL:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
01248.0012/919634.1 2
EXHIBIT C
DEED RESTRICTION
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Yuba City
1201 Civic Center Boulevard
Yuba City, CA 95993
Attn: City Manager
____________________________________________________________________________
DEED RESTRICTION
If ten (10) or more residential units are developed on the Property, not less than 15 percent of the total number of residential units developed on the property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. Rental units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision © of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in-interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code.
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on its behalf by its respective officers or agents hereunto as of the date below.
GRANTOR:
DATED: _______________, 2024
CITY OF YUBA CITY, a public agency
By: _____________________________
Diana Langley
City Manager
ATTEST:
__________________________________
Ciara Wakefield, Deputy City Clerk
APN 052-401-009 (Space Above This Line for Recorder’s Office Use Only) THE UNDERSIGNED GRANTOR DECLARES:
Documentary Transfer Tax is: $___
(Exempt from Recording Fee per Gov. Code §6103)
Not to be executed until closing
01248.0012/919634.1 1
EXHIBIT A TO DEED RESTRICTION
LEGAL DESCRIPTION OF PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
A portion of Subdivision "D" of Yuba City, California, particularly described as follows:
Beginning at the intersection of the Westerly line of Wilbur Avenue with the Northerly line of Stevens Avenue, said point of intersection being 1,027,91 feet Southerly measured along said Westerly line of Wilbur Avenue from an iron pin marking the intersection of said Westerly line of Wilbur Avenue with the Southerly line of "B" Street; running thence Westerly along said Northerly line of Stevens Avenue, 150.00 feet; thence Northerly at right angles to said Northerly line of Stevens Avenue, 63,81 feet; thence Easterly parallel to said Northerly line of Stevens Avenue 137.64 feet to said Westerly line of Wilbur Avenue and thence Southerly along said Westerly line of Wilbur Avenue, 65, 00 feet to the point of beginning.
Excepting therefrom, that portion of the above-described land as conveyed to the City of Yuba City, in the deed recorded July 9, 1985, in Book 1141, page 599, Official Records, described as follows:
Beginning at the intersection of the Westerly line of Wilbur Avenue with the Northerly line of Stevens Avenue as described in the deed to the City of Yuba City, recorded in Book 52 of Deeds, Page 46, Sutter County records; thence North 11° 26' 40" West along said Westerly Line of Wilbur Avenue a distance of 65.00 feet to the Northeast corner of the land described in the Deed to James E. Granneman recorded in Book 831, page 463 of Official Records of Sutter County , California; thence South 89° 32' 20” West, along the Northerly line of said Granneman Parcel, a distance of 2.09 feet to a line parallel with, Westerly of, and 30 feet measured at right angles to the monumented center line of Wilbur Avenue; thence South 11° 24' 04" East along said line a distance of 36.69 feet to the beginning of a tangent curve concave to the Northwest having a radius of 20 feet; thence along said curve through a central angle of 100° 56' 24" a distance of 35.23 feet, to a line parallel with Northerly of and 4 feet measured at right angles to the Northerly line of said Stevens Avenue; thence South 00° 27’ 40” East, a distance of 4.00 feet to the North line of said Stevens Avenue; thence North 89° 32' 20" East, along said North line a distance of 27.15 feet to the Point of Beginning, containing.366 square feet more or less APN: 052-401-009-000
01248.0012/919634.1 1
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2024 before me, ___________________________, a notary public, personally appeared _______________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________________
Notary Public
SEAL:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
ATTACHMENT 2
52-380-019
52-380-025
52-380-017
53-194-013
52-401-014
53-220-030
52-401-009
B
C
WILBUR
PLUMAS
PERCY
FRANKLIN
A
MOORE
NIELSON
ELM
DEL MONTE
WOODBRIDGE
PALM
DORMAN
TABER
MORTON
ROWE
JEWELL
WILLOW
SPRUCE
BROOKS
EMERSON
MAIN
CAMPBELL
BOYD
BENNETT
TOWN SQUARE
STEVENS
PERCY
DEL MONTE
C
TABER
1 inch = 300 feet
Legend
City owned parcels
Successor Agency owned parcels
Parcels
VICINITY MAP
Agenda Item 12
CITY OF YUBA CITY
STAFF REPORT
Date: May 7, 2024
To: Honorable Mayor & Members of the City Council;Honorable Chairperson and Directors of the Successor Agency to the Redevelopment Agency of the City of Yuba City
From: Administration Department
Presentation By: Diana Langley, City Manager
Summary
Subject: Agreement for Purchase and Sale of Real Property located at the northwest corner of Percy Avenue and Plumas Boulevard (APN 053-194-013) to Gursharan Mann
Recommendation: Adopt a Resolution authorizing the City Manager as Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City to execute an Agreement for Purchase and Sale of Real Property located at the northwest corner of Percy Avenue and Plumas Boulevard (APN 053-194-013), and all other necessary documents, in the amount of $67,500 to Gursharan Mann, and authorize the Finance Director to remit the proceeds to the Sutter County Auditor-Controller for distribution to the taxing entities per the Long Range Property Management Plan
Fiscal Impact: Sale Price - $67,500
Purpose:
To facilitate and encourage the development of infill property located in the Town Center area.
Council’s Strategic Goal:
This project addresses multiple City Council Strategic Goals, primarily maintaining the financial stability and sustainability of the City and enhancing the business-friendly environment for the City.
Background:
The northwest corner of Percy Avenue and Plumas Boulevard (APN 053-194-013) is a 0.41-acre vacant parcel (Site), currently owned by the Successor Agency to the Redevelopment Agency of the City of Yuba City (Successor Agency). Based on a 2011 California Supreme Court decision, all redevelopment agencies in California were dissolved as of February 1, 2012. As a result, all redevelopment agencies were required to dissolve and transfer any assets and liabilities to “Successor Agencies” that would bring to a close the redevelopment agencies’ business matters. On January 10, 2012, the City Council elected to become the Successor Agency, and in November 2014, the Site was transferred to the Successor Agency.
In 2015, a Long Range Property Management Plan was prepared by Fraser & Associates. The plan recommended the Site be sold for private development. On August 16, 2022, the City Council, acting as the Successor Agency, declared the Site to be surplus land and directed the City Manager to follow procedures set forth in the Surplus Land Act (SLA) for the sale of the property. Through the SLA process, no housing sponsors or developers submitted a letter of interest to purchase the property and the California Department of Housing and Community Development (HCD) cleared the property for sale.
Analysis:
In August 2023, an appraisal was prepared by Owen & Associates Valuation, Inc., in which the appraised amount was $65,000. The City contracted with Coldwell Banker Commercial Valley Brokers (Coldwell Banker) to represent the City and place the property for sale for $65,000. Coldwell Banker received an offer from Gursharan Mann to purchase the Site "as is" for $67,500. The attached Agreement for Purchase and Sale details the terms of the transaction.
Fiscal Impact:
The proposed purchase price is $67,500 with net proceeds being less due to sales commission, title, and escrow fees. Per the Long Range Property Management Plan, the City will remit the net proceeds to the Sutter County Auditor-Controller for distribution to the taxing agencies, of which the City will receive approximately 16% back.
Alternatives:
Do not authorize the City Manager to sign the Agreement and provide direction for the disposition of the property.
Recommendation:
Adopt a Resolution authorizing the City Manager as Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City to execute an Agreement for Purchase and Sale of Real Property located at the northwest corner of Percy Avenue and Plumas Boulevard (APN 053-194- 013), and all other necessary documents, in the amount of $67,500 to Gursharan Mann, and authorize the Finance Director to remit the proceeds to the Sutter County Auditor-Controller for distribution to the taxing entities per the Long Range Property Management Plan.
Attachments:
1. Resolution - Northwest Corner of Percy Avenue and Plumas Boulevard
2. Exhibit A - APN 53-194-013
3. Location Map
Prepared By: Submitted By:
Diana Langley
City Manager
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO.
RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF
THE CITY OF YUBA CITY AUTHORIZING THE CITY MANAGER AS THE EXECUTIVE
DIRECTOR TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE
CITY OF YUBA CITY TO EXECUTE AN AGREEMENT FOR PURCHASE AND SALE OF
REAL PROPERTY LOCATED AT THE NORTHWEST CORNER OF PERCY AVENUE AND PLUMAS BOULEVARD (APN 053-194-013), AND ALL OTHER NECESSARY DOCUMENTS, IN THE AMOUNT OF $67,500 TO GURSHARAN MANN, AND AUTHORIZE THE FINANCE DIRECTOR TO REMIT THE PROCEEDS TO THE SUTTER COUNTY AUDITORCONTROLLER FOR DISTRIBUTION TO THE TAXING ENTITIES PER THE LONG RANGE
PROPERTY MANAGEMENT PLAN
WHEREAS, in January 2012, the City Council elected to become the Successor Agency to the Redevelopment Agency of the City of Yuba City (Successor Agency); and WHEREAS, in November 2014, ownership of the Site was transferred by grant deed to the Successor Agency; and
WHEREAS, in 2015, a Long Range Property Management Plan was prepared by Fraser & Associates and recommended the Site be sold for private development; and WHEREAS, in August 2022, the Successor Agency declared the Site to be surplus and directed the City Manager/Executive Director to follow procedures set forth in the Surplus Land Act for the sale of the property; and
WHEREAS, in accordance with the Surplus Land Act, staff issued a notice of availability and did not receive any interest from any housing sponsors; and WHEREAS, the Department of Housing and Community Development has determined that staff met all the requirements under the Surplus Land Act and the Successor Housing Agency is permitted to proceed with the sale or lease of the property; and WHEREAS, an appraisal was prepared by Owen & Associates Valuation, Inc., and the appraised value is $65,000; and
WHEREAS, the City received an offer from Gursharan Mann to purchase the property for $67,500 in “as is” condition; and
WHEREAS, staff recommends that the Successor Agency accept the offer and authorize the City Manager to execute an Agreement for Purchase and Sale; and WHEREAS, per the Long Range Property Management Plan, the net proceeds from the sale of the property are to be remitted to the Sutter County Auditor-Controller for distribution to the taxing agencies.
NOW, THEREFORE, the Successor Agency of the Yuba City Redevelopment Agency, California, does hereby resolve as follows:
1. The City Manager as the Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City is authorized to execute an Agreement
for Purchase and Sale of Real Property located at the northwest corner of Percy Avenue and Plumas Boulevard (APN 053-194-013), and all other necessary documents, in the amount of $67,500 to Gursharan Mann.
2. The Finance Director is authorized to remit the net proceeds to the Sutter County AuditorController.
The foregoing Resolution was duly and regularly introduced, passed and adopted by the Successor Agency to the Yuba City Redevelopment Agency, at a regular meeting thereof held on the 7th day of May, 2024.
AYES:
NOES:
ABSENT:
Shon Harris, Chair of Successor Agency
ATTEST:
Ciara Wakefield, Deputy Agency Secretary
APPROVED AS TO FORM
COUNSEL FOR SUCCESSOR AGENCY
________________________
Shannon Chaffin
Agency Counsel
Exhibit A: Purchase and Sale Agreement
01248.0012/919634.1 1
EXHIBIT A
01248.0012/919634.1 2
AGREEMENT FOR PURCHASE AND SALE
OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS
THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made this 19th day of March, 2024 (“Agreement Date”) by and among Gursharan Mann (the “Buyer”), City of Yuba City as Successor Agency to the former Redevelopment Agency of the City of Yuba City, a public agency (“Seller”) and PLACER TITLE COMPANY, a corporation (“Escrow Holder” and “Title Company”).
R E C I T A L S:
A. Seller owns those certain real property located on the north side of the intersection of Main Street/Morton Street/Plumas Boulevard, Yuba City, State of California (APN 053-194- 013) legally described as set forth on Exhibit A ("Property").
B. Buyer is willing to purchase the Property in AS-IS condition pursuant to the terms of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and incorporating the recitals above, the parties hereto agree as follows:
TERMS AND CONDITIONS:
1. PURCHASE AND SALE OF PROPERTY. Buyer hereby agrees to purchase from Seller, and Seller agrees to sell to Buyer, the Property in AS-IS condition.
2. OPENING OF ESCROW. Within five (5) days after the execution of this Agreement by both Buyer and Seller, the parties shall open an escrow (“Escrow”) with Placer Title Company (Escrow Holder) by causing an executed copy of this Agreement to be deposited with Ana Campos, escrow officer (“Escrow Officer”) at Placer Title Company, 1425 Butte House Road, Yuba City, [email protected] (530) 671-5040 (“Escrow”) together with the Deposit (as defined in Section 3.2(a)) (“Opening of Escrow”).
3. PURCHASE PRICE.
3.1 Purchase Price. The Purchase Price for the Property is Sixty-Seven Thousand Five Hundred Dollars ($67,500) (“Purchase Price”).
3.2 Payment of Purchase Price. The Purchase Price shall be paid as follows:
(a) Deposit. At Opening of Escrow, Buyer shall deposit the sum of Fifteen Thousand Five Hundred Dollars ($15,500) with Escrow Holder (“Deposit”). (b) Balance of Funds. At least one (1) business day prior to the Closing, Buyer shall deposit balance of the Purchase Price with Escrow Holder in Good Funds (as defined below).
3.3 Disbursement of Seller’s Net Proceeds. At the Closing, the net proceeds (as determined by the Seller settlement statement) shall be disbursed to Seller.
01248.0012/919634.1 3
3.4 Good Funds. All funds deposited in Escrow shall be in “Good Funds” which means a wire transfer of funds, cashier's or certified check drawn on or issued by the offices of a financial institution located in the State of California.
4. ADDITIONAL FUNDS AND DOCUMENTS REQUIRED FROM BUYER AND SELLER.
4.1 Seller. Seller agrees that on or before 12:00 noon on the day preceding the Closing Date, Seller will deposit with Escrow Holder such funds and other items and instruments (executed and acknowledged, if appropriate) as may be necessary in order for the Escrow Holder to comply with this Agreement, including without limitation:
a. Executed and acknowledged grant deed in the form of Exhibit B (“Grant Deed”). b. A Non-Foreign Affidavit as required by federal law.
c. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement. d. Executed and acknowledged Deed Restriction in the form of Exhibit C (“Deed Restriction”).
4.2 Buyer. Buyer agrees that on or before 12:00 noon on the date preceding the Closing Date, Buyer will deposit with Escrow Holder all additional funds and/or documents (executed and acknowledged, if appropriate) which are necessary to comply with the terms of this Agreement, including without limitation:
a. A Preliminary Change of Ownership Statement completed in the manner required in Sutter County.
b. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement.
4.3 Recordation, Completion and Distribution of Documents. Escrow Holder will cause Grant Deed to be recorded when it can issue the Owner’s Title Policy in accordance with Section 6, and holds for the account of Buyer and Seller, respectively, the funds and items described above to be delivered to Buyer and Seller, respectively, through Escrow, less costs, expenses and disbursements chargeable to Seller pursuant to the terms hereof.
5. CLOSING DATE; TIME IS OF ESSENCE.
5.1 Closing Date. Escrow shall close within twenty (20) days after Buyer has provided the Buyer's Due Diligence Approval Notice by the Outside Due Diligence Date (pursuant to Section 7), but no later than thirty (30) days after the Opening of Escrow (“Closing Date”) unless extended as evidenced by a writing signed by both parties. The terms “Close of Escrow” and/or “Closing” are used herein to mean the time Grant Deed is filed for recording by the Escrow Holder in the Office of the County Recorder of Sutter County, California.
5.2 Possession. Upon the Close of Escrow, exclusive possession and occupancy of the Property shall be delivered to Buyer free and clear of all claims of possession and all debris.
5.3 Time is of Essence. Buyer and Seller specifically agree that time is of the
01248.0012/919634.1 4
essence.
5.4 Executive Director’s Authority. Seller by its execution of this Agreement hereby agrees that its Executive Director or designee (who has been designated by Executive Director’s written notice delivered to Buyer and Escrow Holder) shall, in Executive Director’s sole and exclusive discretion, have authority:
(i) to execute documents on behalf of Seller including, but not limited to, issuing approvals, disapprovals and extensions. Any such approval, disapproval or extension executed by the Executive Director or their designee shall be binding on Seller. (ii) make minor modifications to this Agreement in order to fulfill the direction of the Successor Agency Board, provided that such minor modifications are approved by the Agency’s legal counsel.
6. TITLE POLICY.
6.1 Approval of Title.
(a) Promptly following execution of this Agreement but in no event later than five (5) days following Opening of Escrow, a preliminary title report shall be issued by Placer Title Company (“Title Company”), describing the state of title of the Property, together with copies of all exceptions specified therein and a map plotting all easements specified therein (“Preliminary Title Report”). Within five (5) days after Buyer's receipt of the Preliminary Title Report, Buyer shall notify Seller in writing (“Buyer's Title Notice”) of Buyer's disapproval of any matters contained in the Preliminary Title Report (“Disapproved Exceptions”). (b) In the event Buyer delivers Buyer's Title Notice within said period, Seller shall have a period of five (5) days after receipt of Buyer's Title Notice in which to notify Buyer of Seller's election to either (i) agree to attempt to remove the Disapproved Exceptions prior to the Close of Escrow; or (ii) decline to remove any such Disapproved Exceptions (“Seller's Notice”).
If Seller notifies Buyer of its election to decline to remove the Disapproved Exceptions, or if Seller is unable to remove the Disapproved Exceptions, Buyer may elect either to terminate this Agreement and the Escrow or to accept title to the Property subject to the Disapproved Exception(s). Buyer shall exercise such election by delivery of written notice to Seller and Escrow Holder within five (5) days following the earlier of (i) the date of written advice from Seller that such Disapproved Exception(s) cannot be removed; or (ii) the date Seller declines to remove such Disapproved Exception(s).
(c) Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement, provided, however, that Buyer's initial period of review and approval or disapproval of any such additional exceptions shall be limited to ten (10) days following receipt of notice of such additional exceptions. (d) Nothing to the contrary herein withstanding, Buyer shall be deemed to have automatically objected to all leases, deeds of trust, mortgages, judgment liens, federal and state income tax liens, delinquent general and special real property taxes and assessments and similar monetary encumbrances affecting the Property, and Seller shall discharge any such nonpermitted title matter of record prior to or concurrently with the Close of Escrow.
01248.0012/919634.1 5
6.2 Title Policy. At the Close of Escrow, Escrow Holder shall furnish Buyer with an ALTA/CLTA Homeowner’s Owner's Policy of title insurance (“Owner’s Title Policy”) insuring title to the Property vested in Buyer in the amount of the Purchase Price, containing only exceptions approved or waived by Buyer in accordance with this Section. The cost of the Owner’s Title Policy to Seller shall be paid by Buyer.
7. TRANSFER DISCLOSURE STATEMENT, STATUTORY DISCLOSURES & DUE DILIGENCE.
7.1 Natural Hazard Disclosure Report with Tax Disclosures. Within two (2) days after the Opening of Escrow, Escrow Holder shall order and deliver to Buyer a comprehensive natural hazard disclosure and tax report from Disclosure Source (“NHD Report”) for Buyer’s review and approval. If Buyer disapproves the NHD Report, Buyer shall notify Seller with a copy to Escrow Holder within the Due Diligence Period. If Buyer does not disapprove the NHD Report within the Due Diligence Period, Buyer shall be deemed to have approved it. Buyer shall execute the acknowledgement statement that accompanies the NHD Report and deliver a copy to Seller.
7.2 Material Facts & Insurance Claims. Within two (2) days of the Opening of Escrow, Seller shall disclose to Buyer in writing all known material facts and defects including known insurance claims within the last five (5) years preceding the Agreement Date
7.3 Other Statutory Disclosures. Within two (2) days of Opening of Escrow, Seller shall deliver to Buyer all other applicable statutory disclosures (including, but not limited to, notice or actual knowledge of release of illegal controlled substance, etc.) as required by law for Buyer’s review and approval. If Buyer disapproves any such disclosures, Buyer shall notify Seller with a copy to Escrow Holder within the Due Diligence Period. If Buyer does not disapprove a statutory disclosure within the Due Diligence Period, Buyer shall be deemed to have approved it and Buyer shall execute any documents reasonably required by Seller to evidence same and deliver same to Seller.
7.4 Due Diligence. For a period of up to thirty (30) days following the Opening of Escrow ("Due Diligence Period"), Buyer shall have the right to review and inspect the Property and conduct such tests as reasonably determined by Buyer. Buyer shall make reasonable efforts to expediate any and all investigations provided same does not involve additional cost to Seller. Seller grants to Buyer, its agents and employees, upon reasonable notice to Seller, a limited license to enter the Property for the purpose of conducting such due diligence as reasonably required by Buyer at Buyer's sole cost and expense. As a condition to Buyer's entry and inspection, Buyer shall keep the Property free and clear of all materialmen's liens, lis pendens or any other liens arising out of the entry and any work performed under this Agreement. Buyer shall notify Seller in writing ("Buyer's Due Diligence Notice") on or before the expiration of the Due Diligence Period of Buyer's approval of the condition of the Property as well as the TDS, NHD Report, Lead Paint Disclosure and all other disclosures and notices delivered to Buyer under this Agreement, which approval may be withheld in Buyer's sole discretion. Failure of Seller to provide access to the Property to make inspect the Property at a day and time requested by Buyer shall be a material breach of this Agreement and Buyer shall have the right to immediately terminate this Agreement and the escrow.
7.5 Indemnity: Buyer agrees to defend and indemnify Seller for any claims that arise out of Buyer’s inspection or testing of the Property.
01248.0012/919634.1 6
7.6 Statutory Disclosures. As required by law, Seller makes the following disclosures to Buyer:
a. No HOA. The Property is subject to certain covenants, conditions and restrictions.
However, there is no homeowner association and there are no HOA assessments to which the Property is subject.
b. Megan’s Law. “Notice: Pursuant to Section 290.46 of the Penal Code information about specified registered sex offenders is made available to the public via an internet website maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on a sex offender’s criminal history, this information will include either an address at which the offender resides or the community of residence and ZIP code in which he or she resides. (Neither Seller or Broker are required to check this website).”
c. 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 at 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 lines 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 Web site.”
8. CONDITIONS PRECEDENT TO CLOSE OF ESCROW.
8.1 Conditions to Buyer's Obligations. The obligations of Buyer under this Agreement are subject to the satisfaction or written waiver, in whole or in part, by Buyer of each of the following conditions precedent (“Buyer’s Conditions Precedent”):
(a) Title Company will issue the Owner’s Title Policy as specified in Section 6.2. (b) Escrow Holder holds and will deliver to Buyer the instruments accruing to Buyer pursuant to this Agreement.
(c) Seller is not in default of its obligations under this Agreement.
8.2 Conditions to Seller's Obligations. The obligations of Seller under this Agreement are subject to the satisfaction or written waiver, in whole or in part, by Seller of the following conditions precedent:
(a) Escrow Holder holds and will deliver to Seller the instruments and funds accruing to Seller pursuant to this Agreement.
(b) Buyer shall have executed all documents required under this Agreement and delivered same to Seller.
(c) Buyer is not in default of its obligations under this Agreement.
01248.0012/919634.1 7
9. LIMITED REPRESENTATIONS AND WARRANTIES.
9.1 Limited Representations and Warranties. Seller hereby makes the following representations and warranties to Buyer to the best of its knowledge and without the duty to investigate, each of which is true in all respects as of the Agreement Date and the Opening of Escrow and shall be true in all respects on the date of Close of Escrow on the Property:
a. Seller has received no notice and/or has no knowledge that any governmental authority or any employee or agent thereof considers the present or proposed operation, use or ownership of the Property to violate or have violated any ordinance, rule, law, regulation or order of any government or agency, body or subdivision thereof, or that any investigation has been commenced or is contemplated respecting such possible violations. b. There are no pending or threatened lawsuits or claims which would affect the Property.
c. The Property is not subject to a homeowner’s association nor any such association assessments.
d. The Property is not in violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and ground water conditions. e. Seller has received no written notice from any third parties, prior owners of the Property, or any federal, state or local governmental agency indicating that any hazardous waste remedial or clean-up work will be required on the Property. There are no environmental, health or safety hazards on, under or about the Property, including but not limited to soil and groundwater conditions.
f. There are no contracts, leases, claims or rights affecting the Property and no agreements entered into by or under Seller that shall survive the Close of Escrow. g. Until the Closing, Seller shall not do anything which would impair Seller’s title to any of the Property.
h. Seller is not, and as of the Close of Escrow will not be, a foreign person within the meaning of Internal Revenue Code Section 1445 or an out-of-state seller under California Revenue and Tax Code Section 18805 and that it will deliver to Buyer through Escrow a nonforeign affidavit on Escrow Holder's standard form pursuant to Internal Revenue Code Section 1445(b)(2) and the Regulations promulgated thereunder and a California Form 590-RE (“Nonforeign Affidavit”). i. Until the Closing, if Seller learns of any fact or condition which would cause any of the warranties and representations in this Section not to be true as of the Closing, Seller shall immediately give written notice of such fact or condition to Buyer. j. No construction or repair work has been done on the Property within the six (6) months prior to the Opening of Escrow.
9.2 Breach; Indemnification. If a breach of a representation, warranty or covenants occurs before Closing and Buyer is aware that such a breach has occurred, the breach shall be
01248.0012/919634.1 8
grounds to terminate this Agreement in Buyer’s sole discretion. If Buyer does not elect to terminate this Agreement, Buyer shall be deemed to have waived any such breach.
10. ESCROW PROVISIONS.
10.1 Escrow Instructions. Sections 1; 2 through 6 inclusive, 8, 10, 12 and 13 constitute the escrow instructions to Escrow Holder. If required by Escrow Holder, Buyer and Seller agree to execute Escrow Holder's standard escrow instructions, provided that the same are consistent with and do not conflict with the provisions of this Agreement. In the event of any such conflict, the provisions of this Agreement shall prevail. The terms and conditions in sections of this Agreement not specifically referenced above are additional matters for information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder’s general provisions directly from Escrow Holder and will execute such provision upon Escrow Holder’s request. To the extent that 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 agree to execute additional instructions, documents and forms provide by Escrow Holder that are reasonably necessary to close Escrow.
10.2 General Escrow Provisions. Escrow Holder shall deliver the Owner’s Title Policy to Buyer and instruct the Sutter County Recorder to mail the Grant Deed to Buyer at the address set forth in Section 12 after recordation. All funds received in this Escrow shall be deposited in one or more general escrow accounts of the Escrow Holder with any bank doing business in Sutter County, California, and may be disbursed to any other general escrow account or accounts. All disbursements shall be according to that party's instructions.
10.3 Utilities. Buyer and Seller shall cause all utilities which are in the name of Seller to be transferred to the name of Buyer as of the Close of Escrow or as soon thereafter as practicable. Utilities shall be prorated to the Close of Escrow. In the event final amounts with respect to said prorations are not available as of Close of Escrow, the proration shall be done on an estimated basis and the parties shall prepare a final proration within sixty (60) days following Close of Escrow. Any party who is obligated to pay net amounts based on said final proration shall reimburse the other party said amount within thirty (30) days after completion of the final proration.
10.4 Real Property Taxes. Seller is a public agency and exempt from real property taxes so no prorations will be required at Closing.
10.5 Payment of Costs.
a. Cost Allocation. Seller shall pay the costs for the Owner’s Title Policy, onehalf of escrow costs and recording fees (“Buyer’s Charges”). Seller shall pay the cost of the NHD Report, documentary transfer taxes, one-half of the escrow costs and any fees and costs charged by any lender to obtain releases or consents or otherwise put title in the condition described in Section 6 (“Seller’s Charges”). All other costs of Escrow not otherwise specifically allocated by this Agreement shall be apportioned between the parties in a manner consistent with the custom and usage of Escrow Holder. b. Closing Statement. At least three (3) business days prior to the Closing Statement. At least three (3) business days prior to the Closing Date, Escrow
01248.0012/919634.1 9
Holder shall furnish Buyer and Seller with a preliminary Escrow closing statement which shall include each party’s respective shares of costs. The preliminary closing statement shall be approved in writing by the parties. As soon as reasonably possible following the Close of Escrow, Escrow Holder shall deliver a copy of the final Escrow closing statement to the Parties.
10.6 Termination and Cancellation of Escrow. If Escrow fails to close as provided above, either party may elect to cancel this Escrow upon written notice to the other party and Escrow Holder. Upon cancellation, Escrow Holder is instructed to return all funds and documents then in Escrow to the respective depositor of the same with Escrow Holder.
Cancellation of Escrow, as provided herein, shall be without prejudice to whatever legal rights Buyer or Seller may have against each other arising from the Escrow or this Agreement.
10.7 Information Report. Escrow Holder shall file and Buyer and Seller agree to cooperate with Escrow Holder and with each other in completing any report (“Information Report”) and/or other information required to be delivered to the Internal Revenue Service pursuant to Internal Revenue Code § 6045(e) regarding the real estate sales transaction contemplated by this Agreement, including without limitation, Internal Revenue Service Form 1099-B as such may be hereinafter modified or amended by the Internal Revenue Service, or as may be required pursuant to any regulation now or hereinafter promulgated by the Treasury Department with respect thereto. Buyer and Seller also agree that Buyer and Seller, their respective employees and attorneys, and escrow Holder and its employees, may disclose to the Internal Revenue Service, whether pursuant to such Information Report or otherwise, any information regarding this Agreement or the transactions contemplated herein as such party reasonably deems to be required to be disclosed to the Internal Revenue Service by such party pursuant to Internal Revenue Code Section 6045(e), and further agree that neither Buyer nor Seller shall seek to hold any such party liable for the disclosure to the Internal Revenue Service of any such information.
10.8 No Withholding as Foreign Seller. Seller represents and warrants to Buyer that Seller is not, and as of the Close of Escrow will not be, a foreign person within the meaning of Internal Revenue Code § 1445 or an out-of-state seller under California Revenue and Tax Code § 18805 and that it will deliver to Buyer on or before the Close of Escrow a non-foreign affidavit on Escrow Holder's standard form pursuant to Internal Revenue Code §1445(b)(2) and the Regulations promulgated thereunder and a California Form 590-RE.
10.9 Brokerage Commissions. Both parties are represented by a broker. Buyer and Seller each agree to indemnify and hold the other parties harmless from and against all liabilities, costs, damages and expenses, including, without limitation, attorneys' fees, resulting from any claims or fees or commissions, based upon agreements by it, if any, to pay a broker's commission and/or finder's fee except as specified above.
11. LIQUIDATED DAMAGES.
IF BUYER SHOULD MATERIALLY DEFAULT UNDER THIS AGREEMENT, BUYER AND
SELLER AGREE THAT SELLER WILL INCUR DAMAGES BY REASON OF SUCH
DEFAULT WHICH DAMAGES SHALL BE IMPRACTICAL AND EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE, TO ASCERTAIN. THEREFORE, BUYER AND SELLER, IN A REASONABLE EFFORT TO ASCERTAIN WHAT SELLER’S DAMAGES
WOULD BE IN THE EVENT OF SUCH DEFAULT BY BUYER HAVE AGREED BY
PLACING THEIR INITIALS BELOW THAT THE DEPOSIT SHALL CONSTITUTE A
01248.0012/919634.1 10
REASONABLE ESTIMATE OF SELLER’S DAMAGES UNDER THE PROVISIONS OF SECTIONS 1671 AND 1677 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE FOR A BREACH PRIOR TO THE CLOSING. IF BUYER FAILS TO PROMPTLY DELIVER THE
SUM SPECIFIED ABOVE TO SELLER, SUCH FAILURE SHALL CONSTITUTE A
MATERIAL BREACH OF THIS PROVISION AND SELLER MAY ELECT TO SUE BUYER
UNDER THIS PROVISION OR TO WAIVE THIS PROVISION AND PROCEED AGAINST BUYER FOR ALL APPLICABLE DAMAGES RESULTING FROM BUYER’S DEFAULT. ___________________ ___________________
Seller’s Initials Buyer’s Initials
12. NOTICES. Any notices, demands or communications under this Agreement between the parties shall be in writing, and may be given by (i) personal service, (ii) overnight delivery, or (iii) mailing via United States mail, certified mail, postage prepaid, return receipt requested (“US Mail”), addressed to each party as set forth below or such other address as may be furnished in writing by a party, and such notice or communication shall, if properly addressed, be deemed to have been given (a) as of the date so delivered under delivery methods (i) or (ii) above, or (b) three (3) business days after deposit into the U.S. Mail.
To Seller: City of Yuba City as Successor Agency
1201 Civic Center Boulevard
Yuba City, CA 95993
Attn: Diana Langley, Executive Director
With a Copy to: Aleshire & Wynder, LLP
2440 Tulare Street Suite 410
Fresno, CA 93721
Attn: Shannon Chaffin, Agency Counsel
To Buyer: Gursharan Mann
807 Anna Drive
Yuba City, CA 95993
To Escrow Holder: Placer Title Company
1425 Butte House Road
Yuba City, CA 95993
Ana Campos, Senior Escrow Officer
13. GENERAL PROVISIONS.
13.1 Assignment. Neither party shall have the right to assign this Agreement or any interest or right hereunder or under the Escrow without the prior written consent of the other party. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective heirs, personal representatives, successors and assigns.
13.2 Attorney’s Fees. In any action between the parties hereto, seeking enforcement of any of the terms and provisions of this Agreement or the Escrow, or in connection with the Property, the prevailing party in such action shall be entitled, to have and to recover from the other party its reasonable attorneys' fees and other reasonable expenses in connection with
01248.0012/919634.1 11
such action or proceeding, in addition to its recoverable court costs.
13.3 Interpretation; Governing Law. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates.
13.4 No Waiver. No delay or omission by either party in exercising any right or power accruing upon the compliance or failure of performance by the other party under the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either party of a breach of any of the covenants, conditions or agreements hereof to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof.
13.5 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto.
13.6 Severability. If any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such term, provisions, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
13.7 Merger. This Agreement and other documents incorporated herein by reference contain the entire understanding between the parties relating to the transaction contemplated hereby and all prior to contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect.
13.8 Execution in Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart.
13.9 Exhibits. Exhibits A, B, and C attached hereto are incorporated herein by reference.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for Purchase and Sale of Real Property and Escrow Instructions as of the date set forth above.
Note: Section 11 needs to be separately initialed by the parties.
01248.0012/919634.1 12
BUYER: SELLER:
__________________________
Gursharan Mann
Accepted and agreed to:
ESCROW HOLDER:
PLACER TITLE COMPANY
By: _________________________
Ana Campos, Escrow Officer
Dated: ________________, 2024
CITY OF YUBA CITY AS SUCCESSOR
AGENCY
By: _______________________________
Diana Langley, Executive Director
_________________, 2024
ATTEST:
__________________________________
Ciara Wakefield, Deputy Agency Secretary
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
By: ___________________________
Shannon Chaffin, Agency Counsel
01248.0012/919634.1 1
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
All that portion of Lot 430 as shown on that certain map entitled “Ledford’s Subdivision No. 5” filed in the Office of the Sutter County Recorder on July 16, 1945 in Book 8 of Surveys, Page 4 and Percy Avenue, more particularly described as follows:
Commencing at the Northeasterly corner of said Lot 430, thence South 72° 40’ 00” West, along the Northerly line of said Lot 430 a distance of 49.41 feet to the Point of Beginning; thence from said Point of Beginning, and leaving said Northerly line of said Lot 430, run South 13° 32’ 29” West, a distance of 14.77, to the beginning of a curve, concave to the East, with a radius of 251.52 feel; thence along said curve to the left through an included angle of 05° 24’ 30”, 23.74 feet, to the beginning of a curve, concave to the West, with a radius of 198.88 feet; thence along said curve to the right through an included angle of 14° 12' 11”, 49.30 feet, to the beginning of a curve, concave to the West, with a radius of 199.00 feet; thence along said curve to the right through an included angle of 07° 24’ 09’ 25.71 feet, to the beginning of a curve, concave to the Northwest, with a radius of 47.95 feet; thence along said curve to the right, through an included angle of 46° 59’ 44” 39.33 feet, to the beginning of a curve, concave to the Southeast, with a radius of 87.67 feet; thence along said curve to the left through an included angle of 23° 59' 53”
36.72 feet, to the beginning of a curve, concave to the Northwest, with a radius of 106.75 feet; thence along said curve to the right through an included angle of 22° 21' 55", 41.67 feet, to the beginning of a curve, concave to the North, with a radius of 108.00 feet; thence along said curve to the right through an included angle of 06° 41' 23”, 12.61 feet, to the beginning of a curve, concave to the Northeast, with a radius of 23.00 feet; thence along said curve to the right through an included angle of 101° 28' 53" 40.73 feet, thence North 03° 16' 36" East, a distance of 71.74 feet; thence North 06° 18' 20 East, a distance of 20.23 feet to the Northerly line of said Lot 430, thence North 72° 40 00" East, along the Northerly line of said Lot 430 a distance of 173.03 feet to the Point of Beginning.
Except any portion thereof lying within Plumas Avenue and Percy Avenue as they presently exist
APN: 053-194-013
01248.0012/919634.1 1
EXHIBIT B
GRANT DEED
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Gursharan Mann
807 Anna Drive
Yuba City, CA 95993
____________________________________________________________________________
GRANT DEED
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, CITY OF YUBA CITY AS SUCCESSOR AGENCY to the former Redevelopment Agency of City of Yuba City, a public agency (“Grantor”), hereby grants to Gursharan Mann as __________________ (“Grantee”), that certain real property in the City of Yuba City, County of Sutter, State of California, legally described on Exhibit A attached hereto and incorporated herein by reference (“Property”).
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on its behalf by its respective officers or agents hereunto as of the date below.
GRANTOR:
DATED: _______________, 2024
CITY OF YUBA CITY AS SUCCESSOR
AGENCY to the former Redevelopment
Agency of the City of Yuba City, a public
agency
By: _____________________________
Diana Langley,
Executive Director
ATTEST:
__________________________________
Ciara Wakefield, Deputy Agency Secretary
APN 053-194-013 (Space Above This Line for Recorder’s Office Use Only) THE UNDERSIGNED GRANTOR DECLARES:
Documentary Transfer Tax is: $___
(Exempt from Recording Fee per Gov. Code §6103)
Not to be executed until closing
01248.0012/919634.1 1
EXHIBIT A TO GRANT DEED
LEGAL DESCRIPTION OF PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
All that portion of Lot 430 as shown on that certain map entitled “Ledford’s Subdivision No. 5” filed in the Office of the Sutter County Recorder on July 16, 1945 in Book 8 of Surveys, Page 4 and Percy Avenue, more particularly described as follows:
Commencing at the Northeasterly corner of said Lot 430, thence South 72° 40’ 00” West, along the Northerly line of said Lot 430 a distance of 49.41 feet to the Point of Beginning; thence from said Point of Beginning, and leaving said Northerly line of said Lot 430, run South 13° 32’ 29” West, a distance of 14.77, to the beginning of a curve, concave to the East, with a radius of 251.52 feel; thence along said curve to the left through an included angle of 05° 24’ 30”, 23.74 feet, to the beginning of a curve, concave to the West, with a radius of 198.88 feet; thence along said curve to the right through an included angle of 14° 12' 11”, 49.30 feet, to the beginning of a curve, concave to the West, with a radius of 199.00 feet; thence along said curve to the right through an included angle of 07° 24’ 09’ 25.71 feet, to the beginning of a curve, concave to the Northwest, with a radius of 47.95 feet; thence along said curve to the right, through an included angle of 46° 59’ 44” 39.33 feet, to the beginning of a curve, concave to the Southeast, with a radius of 87.67 feet; thence along said curve to the left through an included angle of 23° 59' 53”
36.72 feet, to the beginning of a curve, concave to the Northwest, with a radius of 106.75 feet; thence along said curve to the right through an included angle of 22° 21' 55", 41.67 feet, to the beginning of a curve, concave to the North, with a radius of 108.00 feet; thence along said curve to the right through an included angle of 06° 41' 23”, 12.61 feet, to the beginning of a curve, concave to the Northeast, with a radius of 23.00 feet; thence along said curve to the right through an included angle of 101° 28' 53" 40.73 feet, thence North 03° 16' 36" East, a distance of 71.74 feet; thence North 06° 18' 20 East, a distance of 20.23 feet to the Northerly line of said Lot 430, thence North 72° 40 00" East, along the Northerly line of said Lot 430 a distance of 173.03 feet to the Point of Beginning.
Except any portion thereof lying within Plumas Avenue and Percy Avenue as they presently exist
APN: 053-194-013
01248.0012/919634.1 1
01248.0012/919634.1 1
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2023 before me, ___________________________, a notary public, personally appeared _______________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________________
Notary Public
SEAL:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
01248.0012/919634.1 2
EXHIBIT C
DEED RESTRICTION
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Yuba City
1201 Civic Center Boulevard
Yuba City, CA 95993
Attn: City Manager
____________________________________________________________________________
DEED RESTRICTION
If ten (10) or more residential units are developed on the Property, not less than 15 percent of the total number of residential units developed on the property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. Rental units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision © of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in-interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code.
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on its behalf by its respective officers or agents hereunto as of the date below.
APN 053-194-013-000 (Space Above This Line for Recorder’s Office Use Only) THE UNDERSIGNED GRANTOR DECLARES:
Documentary Transfer Tax is: $___
(Exempt from Recording Fee per Gov. Code §6103)
01248.0012/919634.1 3
GRANTOR:
DATED: _______________, 2024
CITY OF YUBA CITY AS SUCCESSOR
AGENCY to the former Redevelopment
Agency of the City of Yuba City, a public
agency
By: _____________________________
Diana Langley
City Manager
ATTEST:
__________________________________
Ciara Wakefield, Deputy Agency Secretary
Not to be executed until closing
01248.0012/919634.1 1
EXHIBIT A TO DEED RESTRICTION
LEGAL DESCRIPTION OF PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
All that portion of Lot 430 as shown on that certain map entitled “Ledford’s Subdivision No. 5” filed in the Office of the Sutter County Recorder on July 16, 1945 in Book 8 of Surveys, Page 4 and Percy Avenue, more particularly described as follows:
Commencing at the Northeasterly corner of said Lot 430, thence South 72° 40’ 00” West, along the Northerly line of said Lot 430 a distance of 49.41 feet to the Point of Beginning; thence from said Point of Beginning, and leaving said Northerly line of said Lot 430, run South 13° 32’ 29” West, a distance of 14.77, to the beginning of a curve, concave to the East, with a radius of 251.52 feel; thence along said curve to the left through an included angle of 05° 24’ 30”, 23.74 feet, to the beginning of a curve, concave to the West, with a radius of 198.88 feet; thence along said curve to the right through an included angle of 14° 12' 11”, 49.30 feet, to the beginning of a curve, concave to the West, with a radius of 199.00 feet; thence along said curve to the right through an included angle of 07° 24’ 09’ 25.71 feet, to the beginning of a curve, concave to the Northwest, with a radius of 47.95 feet; thence along said curve to the right, through an included angle of 46° 59’ 44” 39.33 feet, to the beginning of a curve, concave to the Southeast, with a radius of 87.67 feet; thence along said curve to the left through an included angle of 23° 59' 53”
36.72 feet, to the beginning of a curve, concave to the Northwest, with a radius of 106.75 feet; thence along said curve to the right through an included angle of 22° 21' 55", 41.67 feet, to the beginning of a curve, concave to the North, with a radius of 108.00 feet; thence along said curve to the right through an included angle of 06° 41' 23”, 12.61 feet, to the beginning of a curve, concave to the Northeast, with a radius of 23.00 feet; thence along said curve to the right through an included angle of 101° 28' 53" 40.73 feet, thence North 03° 16' 36" East, a distance of 71.74 feet; thence North 06° 18' 20 East, a distance of 20.23 feet to the Northerly line of said Lot 430, thence North 72° 40 00" East, along the Northerly line of said Lot 430 a distance of 173.03 feet to the Point of Beginning.
Except any portion thereof lying within Plumas Avenue and Percy Avenue as they presently exist
APN: 053-194-013
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STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2024 before me, ___________________________, a notary public, personally appeared _______________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________________
Notary Public
SEAL:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
ATTACHMENT 2
52-380-019
52-380-025
52-380-017
53-194-013
52-401-014
53-220-030
52-401-009
B
C
WILBUR
PLUMAS
PERCY
FRANKLIN
A
MOORE
NIELSON
ELM
DEL MONTE
WOODBRIDGE
PALM
DORMAN
TABER
MORTON
ROWE
JEWELL
WILLOW
SPRUCE
BROOKS
EMERSON
MAIN
CAMPBELL
BOYD
BENNETT
TOWN SQUARE
STEVENS
PERCY
DEL MONTE
C
TABER
1 inch = 300 feet
Legend
City owned parcels
Successor Agency owned parcels
Parcels
VICINITY MAP
Agenda Item 13
CITY OF YUBA CITY
STAFF REPORT
Date: May 7, 2024
To: Honorable Mayor & Members of the City Council;
From: Administration Department
Presentation By: Diana Langley, City Manager
Summary
Subject: Agreement for Purchase and Sale of 265 Percy Avenue (APN 053-220-030) to Gursharan Mann
Recommendation: Adopt a Resolution authorizing the City Manager to execute an Agreement for Purchase and Sale of Real Property located at 265 Percy Avenue (APN 053- 220-030), and all other necessary documents, in the amount of $62,500 to Gursharan Mann, and authorize the Finance Director to place sale proceeds in the General Fund
Fiscal Impact: Sale Price - $62,500 plus savings associated with no longer maintaining the property
Purpose:
To facilitate and encourage the development of infill property located in the Town Center area.
Council's Strategic Goal:
This item addresses multiple City Council Strategic Goals, primarily maintaining the financial stability and sustainability of the City and enhancing the business-friendly environment for the City.
Background:
365 Percy Avenue is a 0.38-acre vacant parcel located at the northwest corner of Percy Avenue and Plumas Boulevard. On November 1, 2022, City Council formally declared the property to be surplus and staff initiated the Surplus Land Act (SLA) process. Through the SLA process, no housing sponsors or developers submitted a letter of interest to purchase the property and the California Department of Housing and Community Development (HCD) cleared the property for sale.
Analysis:
In August 2023, an appraisal was prepared by Owen & Associates Valuation, Inc., in which the appraised amount was $60,000. The City contracted with Coldwell Banker Commercial Valley Brokers (Coldwell Banker) to represent the City and place the property for sale for $60,000. Coldwell Banker received an offer from Gursharan Mann to purchase the Site "as is" for $62,500. The attached Agreement for Purchase and Sale details the terms of the transaction.
Fiscal Impact:
The proposed purchase price is $62,500 with net proceeds being less due to sales commission, title, and escrow fees. Upon transfer of the property, the net proceeds will be placed in the General Fund.
Alternatives:
Do not authorize the City Manager to sign the Agreement and provide direction for the disposition of the property.
Recommendation:
Adopt a Resolution authorizing the City Manager to execute an Agreement for Purchase and Sale of Real Property located at 265 Percy Avenue (APN 053-220-030), and all other necessary documents, in the amount of $62,500 to Gursharan Mann, and authorize the Finance Director to place sale proceeds in the General Fund.
Attachments:
1. Resolution -265 Percy Avenue
2. Exhibit A - Purchase and Sale Agreement - 265 Percy Avenue - APN 53-220-030
3. Location Map
Prepared By: Submitted By:
Diana Langley
City Manager
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUBA CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY LOCATED AT 265 PERCY AVENUE (APN 053-220-030), AND ALL OTHER NECESSARY DOCUMENTS, IN THE AMOUNT OF $62,500 TO
GURSHARAN MANN, AND AUTHORIZE THE FINANCE DIRECTOR TO PLACE SALE
PROCEEDS IN THE GENERAL FUND
WHEREAS, on November 1, 2022, the City Council declared 265 Percy Avenue to be surplus property; and
WHEREAS, in accordance with the Surplus Land Act, staff issued a notice of availability and did not receive any interest from any housing sponsors; and WHEREAS, the Department of Housing and Community Development has determined that staff met all the requirements under the Surplus Land Act and the Successor Housing Agency is permitted to proceed with the sale or lease of the property; and WHEREAS, an appraisal was prepared by Owen & Associates Valuation, Inc., and the appraised value is $60,000; and
WHEREAS, the City received an offer from Gursharan Mann to purchase the property for $62,500 in “as is” condition; and
WHEREAS, staff recommends that the City Council accept the offer and authorize the City Manager to execute an Agreement for Purchase and Sale; and NOW, THEREFORE, the City Council of the City of Yuba City does hereby resolve as follows:
1. The City Manager is authorized to execute an Agreement for Purchase and Sale of Real Property located at 265 Percy Avenue (APN 053-220-030), and all other necessary documents, in the amount of $62,500 to Gursharan Mann.
2. The Finance Director is authorized to place sale proceeds in the General Fund.
The forgoing Resolution of the City Council of the City of Yuba City was duly introduced, passed and adopted at a regular meeting thereof held on the 7th day of May, 2024.
AYES:
NOES:
ABSENT:
Shon Harris, Mayor
ATTEST:
Ciara Wakefield, Deputy City Clerk
APPROVED AS TO FORM
COUNSEL FOR YUBA CITY
________________________
Shannon Chaffin
City Attorney
Exhibit A: Purchase and Sale Agreement
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Exhibit A
01248.0012/919634.1 2
AGREEMENT FOR PURCHASE AND SALE
OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS
THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made this 19th day of March, 2024 (“Agreement Date”) by and among Gursharan Mann (the “Buyer”), City of Yuba City, a public agency (“Seller”) and PLACER TITLE COMPANY, a corporation (“Escrow Holder” and “Title Company”).
R E C I T A L S:
A. Seller owns that certain residential real property located at 265 Percy Avenue in Yuba City, State of California (APN 53-220-030) legally described as set forth on Exhibit A ("Property").
B. Buyer is willing to purchase the Property in AS-IS condition pursuant to the terms of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and incorporating the recitals above, the parties hereto agree as follows:
TERMS AND CONDITIONS:
1. PURCHASE AND SALE OF PROPERTY. Buyer hereby agrees to purchase from Seller, and Seller agrees to sell to Buyer, the Property in AS-IS condition.
2. OPENING OF ESCROW. Within five (5) days after the execution of this Agreement by both Buyer and Seller, the parties shall open an escrow (“Escrow”) with Placer Title Company (Escrow Holder) by causing an executed copy of this Agreement to be deposited with Ana Campos, escrow officer (“Escrow Officer”) at Placer Title Company, 1425 Butte House Road, Yuba City, [email protected], (530) 671-5040 (“Escrow”) together with the Deposit (as defined in Section 3.2(a)) (“Opening of Escrow”).
3. PURCHASE PRICE.
3.1 Purchase Price. The Purchase Price for the Property is Sixty-Two Thousand Five Hundred Dollars ($62,500) (“Purchase Price”).
3.2 Payment of Purchase Price. The Purchase Price shall be paid as follows:
(a) Deposit. At Opening of Escrow, Buyer shall deposit the sum of Fourteen Thousand Five Hundred Dollars ($14,500) with Escrow Holder (“Deposit”). (b) Balance of Funds. At least one (1) business day prior to the Closing, Buyer shall deposit balance of the Purchase Price with Escrow Holder in Good Funds (as defined below).
3.3 Disbursement of Seller’s Net Proceeds. At the Closing, the net proceeds (as
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determined by the Seller settlement statement) shall be disbursed to Seller.
3.4 Good Funds. All funds deposited in Escrow shall be in “Good Funds” which means a wire transfer of funds, cashier's or certified check drawn on or issued by the offices of a financial institution located in the State of California.
4. ADDITIONAL FUNDS AND DOCUMENTS REQUIRED FROM BUYER AND SELLER.
4.1 Seller. Seller agrees that on or before 12:00 noon on the day preceding the Closing Date, Seller will deposit with Escrow Holder such funds and other items and instruments (executed and acknowledged, if appropriate) as may be necessary in order for the Escrow Holder to comply with this Agreement, including without limitation:
a. Executed and acknowledged grant deed in the form of Exhibit B (“Grant Deed”). b. A Non-Foreign Affidavit as required by federal law.
c. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement. d. Executed and acknowledged Deed Restriction in the form of Exhibit C (“Deed Restriction”).
4.2 Buyer. Buyer agrees that on or before 12:00 noon on the date preceding the Closing Date, Buyer will deposit with Escrow Holder all additional funds and/or documents (executed and acknowledged, if appropriate) which are necessary to comply with the terms of this Agreement, including without limitation:
a. A Preliminary Change of Ownership Statement completed in the manner required in Sutter County.
b. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement.
4.3 Recordation, Completion and Distribution of Documents. Escrow Holder will cause Grant Deed and Deed Restriction to be recorded when it can issue the Owner’s Title Policy in accordance with Section 6, and holds for the account of Buyer and Seller, respectively, the funds and items described above to be delivered to Buyer and Seller, respectively, through Escrow, less costs, expenses and disbursements chargeable to Seller pursuant to the terms hereof.
5. CLOSING DATE; TIME IS OF ESSENCE.
5.1 Closing Date. Escrow shall close within twenty (20) days after Buyer has provided the Buyer's Due Diligence Approval Notice by the Outside Due Diligence Date (pursuant to Section 7), but no later than thirty (30) days after the Opening of Escrow (“Closing Date”) unless extended as evidenced by a writing signed by both parties. The terms “Close of Escrow” and/or “Closing” are used herein to mean the time Grant Deed is filed for recording by the Escrow Holder in the Office of the County Recorder of Sutter County, California.
5.2 Possession. Upon the Close of Escrow, exclusive possession and occupancy of
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the Property shall be delivered to Buyer free and clear of all claims of possession and all debris.
5.3 Time is of Essence. Buyer and Seller specifically agree that time is of the essence.
5.4 City Manager’s Authority. Seller by its execution of this Agreement hereby agrees that its City Manager or designee (who has been designated by City Manager’s written notice delivered to Buyer and Escrow Holder) shall, in City Manager’s sole and exclusive discretion, have authority:
(i) to execute documents on behalf of Seller including, but not limited to, issuing approvals, disapprovals and extensions. Any such approval, disapproval or extension executed by the City Manager or their designee shall be binding on Seller. (ii) make minor modifications to this Agreement in order to fulfill the direction of the City Council, provided that such minor modifications are approved by the City Attorney.
6. TITLE POLICY.
6.1 Approval of Title.
(a) Promptly following execution of this Agreement but in no event later than five (5) days following Opening of Escrow, a preliminary title report shall be issued by Placer Title Company (“Title Company”), describing the state of title of the Property, together with copies of all exceptions specified therein and a map plotting all easements specified therein (“Preliminary Title Report”). Within five (5) days after Buyer's receipt of the Preliminary Title Report, Buyer shall notify Seller in writing (“Buyer's Title Notice”) of Buyer's disapproval of any matters contained in the Preliminary Title Report (“Disapproved Exceptions”). (b) In the event Buyer delivers Buyer's Title Notice within said period, Seller shall have a period of five (5) days after receipt of Buyer's Title Notice in which to notify Buyer of Seller's election to either (i) agree to attempt to remove the Disapproved Exceptions prior to the Close of Escrow; or (ii) decline to remove any such Disapproved Exceptions (“Seller's Notice”).
If Seller notifies Buyer of its election to decline to remove the Disapproved Exceptions, or if Seller is unable to remove the Disapproved Exceptions, Buyer may elect either to terminate this Agreement and the Escrow or to accept title to the Property subject to the Disapproved Exception(s). Buyer shall exercise such election by delivery of written notice to Seller and Escrow Holder within five (5) days following the earlier of (i) the date of written advice from Seller that such Disapproved Exception(s) cannot be removed; or (ii) the date Seller declines to remove such Disapproved Exception(s).
(c) Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement, provided, however, that Buyer's initial period of review and approval or disapproval of any such additional exceptions shall be limited to ten (10) days following receipt of notice of such additional exceptions. (d) Nothing to the contrary herein withstanding, Buyer shall be deemed to have automatically objected to all leases, deeds of trust, mortgages, judgment liens, federal and state income tax liens, delinquent general and special real property taxes and assessments and
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similar monetary encumbrances affecting the Property, and Seller shall discharge any such nonpermitted title matter of record prior to or concurrently with the Close of Escrow.
6.2 Title Policy. At the Close of Escrow, Escrow Holder shall furnish Buyer with an ALTA/CLTA Homeowner’s Owner's Policy of title insurance (“Owner’s Title Policy”) insuring title to the Property vested in Buyer in the amount of the Purchase Price, containing only exceptions approved or waived by Buyer in accordance with this Section. The cost of the Owner’s Title Policy to Seller shall be paid by Buyer.
7. TRANSFER DISCLOSURE STATEMENT, STATUTORY DISCLOSURES & DUE DILIGENCE.
7.1 Natural Hazard Disclosure Report with Tax Disclosures. Within two (2) days after the Opening of Escrow, Escrow Holder shall order and deliver to Buyer a comprehensive natural hazard disclosure and tax report from Disclosure Source (“NHD Report”) for Buyer’s review and approval. If Buyer disapproves the NHD Report, Buyer shall notify Seller with a copy to Escrow Holder within the Due Diligence Period. If Buyer does not disapprove the NHD Report within the Due Diligence Period, Buyer shall be deemed to have approved it. Buyer shall execute the acknowledgement statement that accompanies the NHD Report and deliver a copy to Seller.
7.2 Material Facts & Insurance Claims. Within two (2) days of the Opening of Escrow, Seller shall disclose to Buyer in writing all known material facts and defects including known insurance claims within the last five (5) years preceding the Agreement Date
7.3 Other Statutory Disclosures. Within two (2) days of Opening of Escrow, Seller shall deliver to Buyer all other applicable statutory disclosures (including, but not limited to, notice or actual knowledge of release of illegal controlled substance, etc.) as required by law for Buyer’s review and approval. If Buyer disapproves any such disclosures, Buyer shall notify Seller with a copy to Escrow Holder within the Due Diligence Period. If Buyer does not disapprove a statutory disclosure within the Due Diligence Period, Buyer shall be deemed to have approved it and Buyer shall execute any documents reasonably required by Seller to evidence same and deliver same to Seller.
7.4 Due Diligence. For a period of up to thirty (30) days following the Opening of Escrow ("Due Diligence Period"), Buyer shall have the right to review and inspect the Property and conduct such tests as reasonably determined by Buyer. Buyer shall use reasonable efforts to expediate any and all investigations provide same does not involve additional cost to Seller.
Seller grants to Buyer, its agents and employees, upon reasonable notice to Seller, a limited license to enter the Property for the purpose of conducting such due diligence as reasonably required by Buyer at Buyer's sole cost and expense. As a condition to Buyer's entry and inspection, Buyer shall keep the Property free and clear of all materialmen's liens, lis pendens or any other liens arising out of the entry and any work performed under this Agreement. Buyer shall notify Seller in writing ("Buyer's Due Diligence Notice") on or before the expiration of the Due Diligence Period of Buyer's approval of the condition of the Property as well as the TDS, NHD Report, Lead Paint Disclosure and all other disclosures and notices delivered to Buyer under this Agreement, which approval may be withheld in Buyer's sole discretion. Failure of Seller to provide access to the Property to inspect the Property at a day and time requested by Buyer shall be a material breach of this Agreement and Buyer shall have the right to immediately terminate this Agreement and the escrow.
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7.5 Indemnity: Buyer agrees to defend and indemnify Seller for any claims that arise out of Buyer’s inspection or testing of the Property.
7.6 Statutory Disclosures. As required by law, Seller makes the following disclosures to Buyer:
a. No HOA. The Property is subject to certain covenants, conditions and restrictions.
However, there is no homeowner association and there are no HOA assessments to which the Property is subject.
b. Megan’s Law. “Notice: Pursuant to Section 290.46 of the Penal Code information about specified registered sex offenders is made available to the public via an internet website maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on a sex offender’s criminal history, this information will include either an address at which the offender resides or the community of residence and ZIP code in which he or she resides. (Neither Seller or Broker are required to check this website).”
c. 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 at the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at www.npms.phmsa.dot.gov. To seek further information about possible transmission lines 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 Web site.”
8. CONDITIONS PRECEDENT TO CLOSE OF ESCROW.
8.1 Conditions to Buyer's Obligations. The obligations of Buyer under this Agreement are subject to the satisfaction or written waiver, in whole or in part, by Buyer of each of the following conditions precedent (“Buyer’s Conditions Precedent”):
(a) Title Company will issue the Owner’s Title Policy as specified in Section 6.2. (b) Escrow Holder holds and will deliver to Buyer the instruments accruing to Buyer pursuant to this Agreement.
(c) Seller is not in default of its obligations under this Agreement.
8.2 Conditions to Seller's Obligations. The obligations of Seller under this Agreement are subject to the satisfaction or written waiver, in whole or in part, by Seller of the following conditions precedent:
(a) Escrow Holder holds and will deliver to Seller the instruments and funds accruing to Seller pursuant to this Agreement.
(b) Buyer shall have executed all documents required under this Agreement and delivered same to Seller.
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(c) Buyer is not in default of its obligations under this Agreement.
9. LIMITED REPRESENTATIONS AND WARRANTIES.
9.1 Limited Representations and Warranties. Seller hereby makes the following representations and warranties to Buyer to the best of its knowledge and without the duty to investigate, each of which is true in all respects as of the Agreement Date and the Opening of Escrow and shall be true in all respects on the date of Close of Escrow on the Property:
a. Seller has received no notice and/or has no knowledge that any governmental authority or any employee or agent thereof considers the present or proposed operation, use or ownership of the Property to violate or have violated any ordinance, rule, law, regulation or order of any government or agency, body or subdivision thereof, or that any investigation has been commenced or is contemplated respecting such possible violations. b. There are no pending or threatened lawsuits or claims which would affect the Property.
c. The Property is not subject to a homeowner’s association nor any such association assessments.
d. The Property is not in violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to the environmental conditions on, under or about the Property including, but not limited to, soil and ground water conditions. e. Seller has received no written notice from any third parties, prior owners of the Property, or any federal, state or local governmental agency indicating that any hazardous waste remedial or clean-up work will be required on the Property. There are no environmental, health or safety hazards on, under or about the Property, including but not limited to soil and groundwater conditions.
f. There are no contracts, leases, claims or rights affecting the Property and no agreements entered into by or under Seller that shall survive the Close of Escrow. g. Until the Closing, Seller shall not do anything which would impair Seller’s title to any of the Property.
h. Seller is not, and as of the Close of Escrow will not be, a foreign person within the meaning of Internal Revenue Code Section 1445 or an out-of-state seller under California Revenue and Tax Code Section 18805 and that it will deliver to Buyer through Escrow a nonforeign affidavit on Escrow Holder's standard form pursuant to Internal Revenue Code Section 1445(b)(2) and the Regulations promulgated thereunder and a California Form 590-RE (“Nonforeign Affidavit”). i. Until the Closing, if Seller learns of any fact or condition which would cause any of the warranties and representations in this Section not to be true as of the Closing, Seller shall immediately give written notice of such fact or condition to Buyer. j. No construction or repair work has been done on the Property within the six (6) months prior to the Opening of Escrow.
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9.2 Breach; Indemnification. If a breach of a representation, warranty or covenants occurs before Closing and Buyer is aware that such a breach has occurred, the breach shall be grounds to terminate this Agreement in Buyer’s sole discretion. If Buyer does not elect to terminate this Agreement, Buyer shall be deemed to have waived any such breach.
10. ESCROW PROVISIONS.
10.1 Escrow Instructions. Sections 1; 2 through 6 inclusive, 8, 10, 12 and 13 constitute the escrow instructions to Escrow Holder. If required by Escrow Holder, Buyer and Seller agree to execute Escrow Holder's standard escrow instructions, provided that the same are consistent with and do not conflict with the provisions of this Agreement. In the event of any such conflict, the provisions of this Agreement shall prevail. The terms and conditions in sections of this Agreement not specifically referenced above are additional matters for information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder’s general provisions directly from Escrow Holder and will execute such provision upon Escrow Holder’s request. To the extent that 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 agree to execute additional instructions, documents and forms provide by Escrow Holder that are reasonably necessary to close Escrow.
10.2 General Escrow Provisions. Escrow Holder shall deliver the Owner’s Title Policy to Buyer and instruct the Sutter County Recorder to mail the Grant Deed to Buyer at the address set forth in Section 12 after recordation. All funds received in this Escrow shall be deposited in one or more general escrow accounts of the Escrow Holder with any bank doing business in Sutter County, California, and may be disbursed to any other general escrow account or accounts. All disbursements shall be according to that party's instructions.
10.3 Utilities. Buyer and Seller shall cause all utilities which are in the name of Seller to be transferred to the name of Buyer as of the Close of Escrow or as soon thereafter as practicable. Utilities shall be prorated to the Close of Escrow. In the event final amounts with respect to said prorations are not available as of Close of Escrow, the proration shall be done on an estimated basis and the parties shall prepare a final proration within sixty (60) days following Close of Escrow. Any party who is obligated to pay net amounts based on said final proration shall reimburse the other party said amount within thirty (30) days after completion of the final proration.
10.4 Real Property Taxes. Seller is a public agency and exempt from real property taxes so no prorations will be required at Closing.
10.5 Payment of Costs.
a. Cost Allocation. Buyer shall pay the costs for the Owner’s Title Policy, onehalf of escrow costs and recording fees (“Buyer’s Charges”). Seller shall pay the cost of the NHD Report, documentary transfer taxes, one-half of the escrow costs and any fees and costs charged by any lender to obtain releases or consents or otherwise put title in the condition described in Section 6 (“Seller’s Charges”). All other costs of Escrow not otherwise specifically allocated by this Agreement shall be apportioned between the parties in a manner consistent with the custom and usage of Escrow Holder.
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b. Closing Statement. At least three (3) business days prior to the Closing Date, Escrow Holder shall furnish Buyer and Seller with a preliminary Escrow closing statement which shall include each party’s respective shares of costs.
The preliminary closing statement shall be approved in writing by the parties.
As soon as reasonably possible following the Close of Escrow, Escrow Holder shall deliver a copy of the final Escrow closing statement to the Parties.
10.6 Termination and Cancellation of Escrow. If Escrow fails to close as provided above, either party may elect to cancel this Escrow upon written notice to the other party and Escrow Holder. Upon cancellation, Escrow Holder is instructed to return all funds and documents then in Escrow to the respective depositor of the same with Escrow Holder.
Cancellation of Escrow, as provided herein, shall be without prejudice to whatever legal rights Buyer or Seller may have against each other arising from the Escrow or this Agreement.
10.7 Information Report. Escrow Holder shall file and Buyer and Seller agree to cooperate with Escrow Holder and with each other in completing any report (“Information Report”) and/or other information required to be delivered to the Internal Revenue Service pursuant to Internal Revenue Code § 6045(e) regarding the real estate sales transaction contemplated by this Agreement, including without limitation, Internal Revenue Service Form 1099-B as such may be hereinafter modified or amended by the Internal Revenue Service, or as may be required pursuant to any regulation now or hereinafter promulgated by the Treasury Department with respect thereto. Buyer and Seller also agree that Buyer and Seller, their respective employees and attorneys, and escrow Holder and its employees, may disclose to the Internal Revenue Service, whether pursuant to such Information Report or otherwise, any information regarding this Agreement or the transactions contemplated herein as such party reasonably deems to be required to be disclosed to the Internal Revenue Service by such party pursuant to Internal Revenue Code Section 6045(e), and further agree that neither Buyer nor Seller shall seek to hold any such party liable for the disclosure to the Internal Revenue Service of any such information.
10.8 No Withholding as Foreign Seller. Seller represents and warrants to Buyer that Seller is not, and as of the Close of Escrow will not be, a foreign person within the meaning of Internal Revenue Code § 1445 or an out-of-state seller under California Revenue and Tax Code § 18805 and that it will deliver to Buyer on or before the Close of Escrow a non-foreign affidavit on Escrow Holder's standard form pursuant to Internal Revenue Code §1445(b)(2) and the Regulations promulgated thereunder and a California Form 590-RE.
10.9 Brokerage Commissions. Neither party is represented by a broker. Buyer and Seller each agree to indemnify and hold the other parties harmless from and against all liabilities, costs, damages and expenses, including, without limitation, attorneys' fees, resulting from any claims or fees or commissions, based upon agreements by it, if any, to pay a broker's commission and/or finder's fee except as specified above.
11. LIQUIDATED DAMAGES.
IF BUYER SHOULD MATERIALLY DEFAULT UNDER THIS AGREEMENT, BUYER AND
SELLER AGREE THAT SELLER WILL INCUR DAMAGES BY REASON OF SUCH
DEFAULT WHICH DAMAGES SHALL BE IMPRACTICAL AND EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE, TO ASCERTAIN. THEREFORE, BUYER AND SELLER, IN A REASONABLE EFFORT TO ASCERTAIN WHAT SELLER’S DAMAGES
WOULD BE IN THE EVENT OF SUCH DEFAULT BY BUYER HAVE AGREED BY
01248.0012/919634.1 10
PLACING THEIR INITIALS BELOW THAT THE DEPOSIT SHALL CONSTITUTE A REASONABLE ESTIMATE OF SELLER’S DAMAGES UNDER THE PROVISIONS OF SECTIONS 1671 AND 1677 OF THE CALIFORNIA CODE OF CIVIL PROCEDURE FOR A BREACH PRIOR TO THE CLOSING. IF BUYER FAILS TO PROMPTLY DELIVER THE
SUM SPECIFIED ABOVE TO SELLER, SUCH FAILURE SHALL CONSTITUTE A
MATERIAL BREACH OF THIS PROVISION AND SELLER MAY ELECT TO SUE BUYER
UNDER THIS PROVISION OR TO WAIVE THIS PROVISION AND PROCEED AGAINST BUYER FOR ALL APPLICABLE DAMAGES RESULTING FROM BUYER’S DEFAULT. ___________________ ___________________
Seller’s Initials Buyer’s Initials
12. NOTICES. Any notices, demands or communications under this Agreement between the parties shall be in writing, and may be given by (i) personal service, (ii) overnight delivery, or (iii) mailing via United States mail, certified mail, postage prepaid, return receipt requested (“US Mail”), addressed to each party as set forth below or such other address as may be furnished in writing by a party, and such notice or communication shall, if properly addressed, be deemed to have been given (a) as of the date so delivered under delivery methods (i) or (ii) above, or (b) three (3) business days after deposit into the U.S. Mail.
To Seller: City of Yuba City
1201 Civic Center Boulevard
Yuba City, CA 95993
Attn: Diana Langley, City Manager
With a Copy to: Aleshire & Wynder, LLP
2440 Tulare Street Suite 410
Fresno, CA 93721
Attn: Shannon Chaffin, City Attorney
To Buyer: Gursharan Mann
807 Anna Drive
Yuba City, CA 95993
To Escrow Holder: Placer Title Company
1425 Butte House Road
Yuba City, CA 95993
Ana Campos, Senior Escrow Officer
13. GENERAL PROVISIONS.
13.1 Assignment. Neither party shall have the right to assign this Agreement or any interest or right hereunder or under the Escrow without the prior written consent of the other party. Subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective heirs, personal representatives, successors and assigns.
13.2 Attorney’s Fees. In any action between the parties hereto, seeking enforcement of any of the terms and provisions of this Agreement or the Escrow, or in connection with the Property, the prevailing party in such action shall be entitled, to have and to recover from the other party its reasonable attorneys' fees and other reasonable expenses in connection with
01248.0012/919634.1 11
such action or proceeding, in addition to its recoverable court costs.
13.3 Interpretation; Governing Law. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates.
13.4 No Waiver. No delay or omission by either party in exercising any right or power accruing upon the compliance or failure of performance by the other party under the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either party of a breach of any of the covenants, conditions or agreements hereof to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof.
13.5 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto.
13.6 Severability. If any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such term, provisions, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law.
13.7 Merger. This Agreement and other documents incorporated herein by reference contain the entire understanding between the parties relating to the transaction contemplated hereby and all prior to contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect.
13.8 Execution in Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart.
13.9 Exhibits. Exhibits A, B, and C are attached hereto are incorporated herein by reference.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement for Purchase and Sale of Real Property and Escrow Instructions as of the date set forth above.
Note: Section 11 need to be separately initialed by the parties.
01248.0012/919634.1 12
BUYER: SELLER:
__________________________
Gursharan Mann
Accepted and agreed to:
ESCROW HOLDER:
PLACER TITLE COMPANY
By: _________________________
Ana Campos, Escrow Officer
Dated: ________________, 2024
CITY OF YUBA CITY
By: _______________________________
Diana Langley, City Manager
_________________, 2024
ATTEST:
__________________________________
Ciara Wakefield, Deputy City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
By: ___________________________
Shannon Chaffin, City Attorney
01248.0012/919634.1 1
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
Lots 5 and 6, as shown on that certain Map entitled "Map of Rowe Tract," filed in the office of the County Recorder of Sutter County, California on July 12, 1948, in Book 8 of Surveys, Page
24. Also, all that portion of Lot 7, as shown on that certain Map entitled "Map of Rowe Tract ", filed in the office of the County Recorder of Sutter County, California on July 12, 1948 in Book 8 of Surveys Page 24, lying Southerly of the following described line:
Beginning at the Northeast corner of Lot 5 of said Rowe Tract; thence North 89° 32' 25" East, a distance of 67.221 feet to the Easterly line of said Lot 7 and the terminus of said line.
APN: 053-220-030
01248.0012/919634.1 1
EXHIBIT B
GRANT DEED
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
Gursharan Mann
807 Anna Drive
Yuba City, CA 95993
____________________________________________________________________________
GRANT DEED
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, CITY OF YUBA CITY, a public agency (“Grantor”), hereby grants to Gursharan Mann as __________________ (“Grantee”), that certain real property in the City of Yuba City, County of Sutter, State of California, legally described on Exhibit A attached hereto and incorporated herein by reference (“Property”).
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on its behalf by its respective officers or agents hereunto as of the date below.
GRANTOR:
DATED: _______________, 2024
CITY OF YUBA CITY, a public agency
By: _____________________________
Diana Langley,
City Manager
ATTEST:
__________________________________
Ciara Wakefield, Deputy City Clerk
APN 053-220-030 (Space Above This Line for Recorder’s Office Use Only) THE UNDERSIGNED GRANTOR DECLARES:
Documentary Transfer Tax is: $___
(Exempt from Recording Fee per Gov. Code §6103)
Not to be executed until closing
01248.0012/919634.1 1
EXHIBIT A TO GRANT DEED
LEGAL DESCRIPTION OF PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
Lots 5 and 6, as shown on that certain Map entitled "Map of Rowe Tract," filed in the office of the County Recorder of Sutter County, California on July 12, 1948, in Book 8 of Surveys, Page
24. Also, all that portion of Lot 7, as shown on that certain Map entitled "Map of Rowe Tract ", filed in the office of the County Recorder of Sutter County, California on July 12, 1948 in Book 8 of Surveys Page 24, lying Southerly of the following described line:
Beginning at the Northeast corner of Lot 5 of said Rowe Tract; thence North 89° 32' 25" East, a distance of 67.221 feet to the Easterly line of said Lot 7 and the terminus of said line.
APN: 053-220-030-000
01248.0012/919634.1 1
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2024 before me, ___________________________, a notary public, personally appeared _______________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________________
Notary Public
SEAL:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
01248.0012/919634.1 2
EXHIBIT C
DEED RESTRICTION
FREE RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Yuba City
1201 Civic Center Boulevard
Yuba City, CA 95993
Attn: City Manager
____________________________________________________________________________
DEED RESTRICTION
If ten (10) or more residential units are developed on the Property, not less than 15 percent of the total number of residential units developed on the property shall be sold or rented at affordable housing cost, as defined in Section 50052.5 of the California Health and Safety Code, or affordable rent, as defined in Section 50053 of the California Health and Safety Code, to lower income households, as defined in Section 50079.5 of the California Health and Safety Code. Rental units shall remain affordable to and occupied by lower income households for a period of 55 years for rental housing and 45 years for ownership housing. The initial occupants of all ownership units shall be lower income households, and the units shall be subject to an equity sharing agreement consistent with the provisions of paragraph (2) of subdivision © of 65915 of the California Government Code. These requirements shall be covenants or restrictions running with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor-in-interest who continues the violation by any of the entities described in subdivisions (a) to (f), inclusive, of Section 54222.5 of the California Government Code.
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on its behalf by its respective officers or agents hereunto as of the date below.
GRANTOR:
DATED: _______________, 2024
CITY OF YUBA CITY, a public agency
By: _____________________________
Diana Langley
City Manager
ATTEST:
__________________________________
Ciara Wakefield, Deputy City Clerk
APN 053-220-030 (Space Above This Line for Recorder’s Office Use Only) THE UNDERSIGNED GRANTOR DECLARES:
Documentary Transfer Tax is: $___
(Exempt from Recording Fee per Gov. Code §6103)
Not to be executed until closing
01248.0012/919634.1 1
EXHIBIT A TO DEED RESTRICTION
LEGAL DESCRIPTION OF PROPERTY
That certain real property in the City of Yuba City, County of Sutter, State of California legally described as follows:
Lots 5 and 6, as shown on that certain Map entitled "Map of Rowe Tract," filed in the office of the County Recorder of Sutter County, California on July 12, 1948, in Book 8 of Surveys, Page
24. Also, all that portion of Lot 7, as shown on that certain Map entitled "Map of Rowe Tract ", filed in the office of the County Recorder of Sutter County, California on July 12, 1948 in Book 8 of Surveys Page 24, lying Southerly of the following described line:
Beginning at the Northeast corner of Lot 5 of said Rowe Tract; thence North 89° 32' 25" East, a distance of 67.221 feet to the Easterly line of said Lot 7 and the terminus of said line.
APN: 053-220-030-000
01248.0012/919634.1 1
STATE OF CALIFORNIA )
) ss.
COUNTY OF ____________ )
On _________________, 2024 before me, ___________________________, a notary public, personally appeared _______________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
_________________________________________
Notary Public
SEAL:
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
ATTACHMENT 2
52-380-019
52-380-025
52-380-017
53-194-013
52-401-014
53-220-030
52-401-009
B
C
WILBUR
PLUMAS
PERCY
FRANKLIN
A
MOORE
NIELSON
ELM
DEL MONTE
WOODBRIDGE
PALM
DORMAN
TABER
MORTON
ROWE
JEWELL
WILLOW
SPRUCE
BROOKS
EMERSON
MAIN
CAMPBELL
BOYD
BENNETT
TOWN SQUARE
STEVENS
PERCY
DEL MONTE
C
TABER
1 inch = 300 feet
Legend
City owned parcels
Successor Agency owned parcels
Parcels
VICINITY MAP
Agenda Item 14
CITY OF YUBA CITY
STAFF REPORT
Date: May 7, 2024
To: Honorable Mayor & Members of the City Council;Honorable Chairperson and Directors of the Successor Agency to the Redevelopment Agency of the City of Yuba City
From: Administration Department
Presentation By: Diana Langley, City Manager
Summary
Subject: Agreement for Purchase and Sale of Real Property located at the southwest corner of C Street and Wilbur Avenue (APN 052-380-017) to Sutter Valley Medical Foundation
Recommendation: Adopt a Resolution authorizing the City Manager as Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City to execute an Agreement for Purchase and Sale of Real Property located at the southwest corner of C Street and Wilbur Avenue (APN 052-380-017), and all other necessary documents, in the amount of $335,000 to Sutter Valley Medical Foundation, dba Sutter Medical Foundation, and authorize the Finance Director to remit the proceeds to the Sutter County Auditor-Controller for distribution to the taxing entities per the Long Range Property Management Plan Fiscal Impact: Sale Price - $335,000
Purpose:
To facilitate and encourage the development of infill property located in the Town Center area.
Council’s Strategic Goal:
This project addresses multiple City Council Strategic Goals, primarily maintaining the financial stability and sustainability of the City and enhancing the business-friendly environment for the City.
Background:
The southwest corner of C Street and Wilbur Avenue is a 1.09-acre vacant parcel, currently owned by the Successor Agency to the Redevelopment Agency of the City of Yuba City (Successor Agency).
Based on a 2011 California Supreme Court decision, all redevelopment agencies in California were dissolved as of February 1, 2012. As a result, all redevelopment agencies were required to dissolve and transfer any assets and liabilities to “Successor Agencies” that would bring to a close the redevelopment agencies’ business matters. On January 10, 2012, the City Council elected to become the Successor Agency, and in November 2014, the Site was transferred to the Successor Agency.
In 2015, a Long Range Property Management Plan was prepared by Fraser & Associates. The plan
recommended the Site be sold for private development. On August 16, 2022, the City Council, acting as the Successor Agency, declared the Site to be surplus land and directed the City Manager to follow procedures set forth in the Surplus Land Act (SLA) for the sale of the property. Through the SLA process, no housing sponsors or developers submitted a letter of interest to purchase the property and the California Department of Housing and Community Development (HCD) cleared the property for sale.
Analysis:
In August 2023, an appraisal was prepared by Owen & Associates Valuation, Inc., in which the appraised amount was $235,000. The City contracted with Coldwell Banker Commercial Valley Brokers (Coldwell Banker) to represent the City and place the property for sale for $335,000. Coldwell Banker received an offer from Sutter Valley Medical Foundation, dba Sutter Medical Foundation, to purchase the Site "as is" for $335,000. The attached Agreement for Purchase and Sale details the terms of the transaction.
Fiscal Impact:
The proposed purchase price is $335,000 with net proceeds being less due to sales commission, title, and escrow fees. Per the Long Range Property Management Plan, the City will remit the net proceeds to the Sutter County Auditor-Controller for distribution to the taxing agencies, of which the City will receive approximately 16% back.
Alternatives:
Do not authorize the City Manager to sign the Agreement and provide direction for the disposition of the property.
Recommendation:
Adopt a Resolution authorizing the City Manager as Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City to execute an Agreement for Purchase and Sale of Real Property located at the southwest corner of C Street and Wilbur Avenue (APN 052-380-017), and all other necessary documents, in the amount of $335,000 to Sutter Valley Medical Foundation, dba Sutter Medical Foundation, and authorize the Finance Director to remit the proceeds to the Sutter County Auditor-Controller for distribution to the taxing entities per the Long Range Property Management Plan.
Attachments:
1. Resolution - Southwest Corner of C Street and Wilbur Avenue
2. Exhibit A - SMF - Agreement for Purchase and Sale
3. Location Map
Prepared By: Submitted By:
Diana Langley
City Manager
Diana Langley
City Manager
ATTACHMENT 1
RESOLUTION NO.
RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF
THE CITY OF YUBA CITY AUTHORIZING THE CITY MANAGER AS THE EXECUTIVE
DIRECTOR TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE
CITY OF YUBA CITY TO EXECUTE AN AGREEMENT FOR PURCHASE AND SALE OF
REAL PROPERTY LOCATED AT THE SOUTHWEST CORNER OF C STREET AND WILBUR AVENUE (APN 052-380-017), AND ALL OTHER NECESSARY DOCUMENTS, IN THE AMOUNT OF $335,000 TO SUTTER VALLEY MEDICAL FOUNDATION, DBA SUTTER
MEDICAL FOUNDATION, AND AUTHORIZE THE FINANCE DIRECTOR TO REMIT THE
PROCEEDS TO THE SUTTER COUNTY AUDITOR-CONTROLLER FOR DISTRIBUTION TO
THE TAXING ENTITIES PER THE LONG RANGE PROPERTY MANAGEMENT PLAN WHEREAS, in January 2012, the City Council elected to become the Successor Agency to the Redevelopment Agency of the City of Yuba City (Successor Agency); and WHEREAS, in November 2014, ownership of the Site was transferred by grant deed to the Successor Agency; and
WHEREAS, in 2015, a Long Range Property Management Plan was prepared by Fraser & Associates and recommended the Site be sold for private development; and WHEREAS, in August 2022, the Successor Agency declared the Site to be surplus and directed the City Manager/Executive Director to follow procedures set forth in the Surplus Land Act for the sale of the property; and
WHEREAS, in accordance with the Surplus Land Act, staff issued a notice of availability and did not receive any interest from any housing sponsors; and WHEREAS, the Department of Housing and Community Development has determined that staff met all the requirements under the Surplus Land Act and the Successor Housing Agency is permitted to proceed with the sale or lease of the property; and WHEREAS, an appraisal was prepared by Owen & Associates Valuation, Inc., and the appraised value is $235,000; and
WHEREAS, the City received an offer from Sutter Valley Medical Foundation, dba Sutter Medical Foundation, to purchase the property for $335,000 in “as is” condition; and WHEREAS, staff recommends that the Successor Agency accept the offer and authorize the City Manager to execute an Agreement for Purchase and Sale; and WHEREAS, per the Long Range Property Management Plan, the net proceeds from the sale of the property are to be remitted to the Sutter County Auditor-Controller for distribution to the taxing agencies.
NOW, THEREFORE, the Successor Agency of the Yuba City Redevelopment Agency, California, does hereby resolve as follows:
1. The City Manager as the Executive Director to the Successor Agency to the Redevelopment Agency of the City of Yuba City is authorized to execute an Agreement
for Purchase and Sale of Real Property located at the southwest corner of C Street and Wilbur Avenue (APN 052-380-017), and all other necessary documents, in the amount of $335,000 to Sutter Valley Medical Foundation, dba Sutter Medical Foundation.
2. The Finance Director is authorized to remit the net proceeds to the Sutter County AuditorController.
The foregoing Resolution was duly and regularly introduced, passed and adopted by the Successor Agency to the Yuba City Redevelopment Agency at a regular meeting thereof held on the 7th day of May, 2024.
AYES:
NOES:
ABSENT:
Shon Harris, Chair of Successor Agency
ATTEST:
Ciara Wakefield, Deputy Agency Secretary
APPROVED AS TO FORM
COUNSEL FOR SUCCESSOR AGENCY:
________________________
Shannon Chaffin
Agency Counsel
Exhibit A: Purchase and Sale Agreement
{01722451 v.4} 01248.0021/968879.2 1
AGREEMENT FOR PURCHASE AND SALE
OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS
THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is made this 7th day of May, 2024 (“Agreement Date”) by and among Sutter Valley Medical Foundation, dba Sutter Medical Foundation (SMF) (the “Buyer”), City of Yuba City as Successor Agency to the former Redevelopment Agency of the City of Yuba City, a public agency (“Seller”) and PLACER TITLE COMPANY, a corporation (“Escrow Holder” and “Title Company”).
R E C I T A L S:
A. Seller owns that certain real property located at the southwest corner of Wilbur Avenue and C Street, Yuba City, State of California (APN 052-380-017) legally described on Exhibit A ("Property").
B. Except as otherwise expressly set forth herein, Buyer is willing to purchase the Property in AS-IS condition pursuant to the terms of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and incorporating the recitals above, the parties hereto agree as follows:
TERMS AND CONDITIONS:
1. PURCHASE AND SALE OF PROPERTY. Buyer hereby agrees to purchase from Seller, and Seller agrees to sell to Buyer, the Property in AS-IS condition.
2. OPENING OF ESCROW. Within five (5) days after the mutual execution of this Agreement by both Buyer and Seller, Seller shall open an escrow (“Escrow”) with Placer Title Company (Escrow Holder) by causing a fully executed copy of this Agreement to be deposited with Ana Campos, escrow officer (“Escrow Officer”) at Placer Title Company, 1425 Butte House Road, Yuba City, [email protected], (530) 671-5040 (“Escrow”) (“Opening of Escrow”).
3. PURCHASE PRICE.
3.1 Purchase Price. The Purchase Price for the Property is Three Hundred ThirtyFive Thousand Dollars ($335,000) (“Purchase Price”).
3.2 Payment of Purchase Price. The Purchase Price shall be paid as follows:
(a) Deposit. Within two (2) business days following the Opening of Escrow, Buyer shall deposit the sum of Twenty-Five Thousand Dollars ($25,000) with Escrow Holder (“Deposit”). The Deposit shall be applicable to the Purchase Price. (b) Balance of Funds. At least one (1) business day prior to the Closing, Buyer shall deposit balance of the Purchase Price with Escrow Holder in Good Funds (as defined below).
3.3 Disbursement of Seller’s Net Proceeds. At the Closing, the net proceeds (as
{01722451 v.4} 01248.0021/968879.2 2
determined by the Seller settlement statement) shall be disbursed to Seller.
3.4 Good Funds. All funds deposited in Escrow shall be in “Good Funds” which means a wire transfer of funds, cashier's or certified check drawn on or issued by the offices of a financial institution located in the State of California.
4. ADDITIONAL FUNDS AND DOCUMENTS REQUIRED FROM BUYER AND SELLER.
4.1 Seller. Seller agrees that on the day preceding the Closing Date, Seller will deposit with Escrow Holder such funds and other items and instruments (executed and acknowledged, if appropriate) as may be necessary in order for the Escrow Holder to comply with this Agreement, including without limitation:
a. Executed and acknowledged grant deed in the form of Exhibit B (“Grant Deed”). b. A Non-Foreign Affidavit as required by federal law.
c. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement. d. Executed and acknowledged Deed Restriction in the form of Exhibit C (“Deed Restriction”).
4.2 Buyer. Buyer agrees that on the date preceding the Closing Date, Buyer will deposit with Escrow Holder all additional funds and/or documents (executed and acknowledged, if appropriate) which are necessary to comply with the terms of this Agreement, including without limitation:
a. A Preliminary Change of Ownership Statement completed in the manner required in Sutter County.
b. Such funds and other items and instruments as may be necessary in order for Escrow Holder and the Title Company to comply with this Agreement.
4.3 Recordation, Completion and Distribution of Documents. Escrow Holder will cause Grant Deed to be recorded when it can issue the Owner’s Title Policy in accordance with Section 6, and holds for the account of Buyer and Seller, respectively, the funds and items described above to be delivered to Buyer and Seller, respectively, through Escrow, less costs, expenses and disbursements chargeable to Seller pursuant to the terms hereof.
5. CLOSING DATE; TIME IS OF ESSENCE.
5.1 Closing Date. Escrow shall close within seven (7) business days after Buyer has provided the Buyer's Due Diligence Approval Notice by the Outside Due Diligence Date (pursuant to Section 7), but no later than ninety (90) days after the Opening of Escrow (“Closing Date”) unless extended as evidenced by a writing signed by both parties. The terms “Close of Escrow” and/or “Closing” are used herein to mean the time Grant Deed is filed for recording by the Escrow Holder in the Office of the County Recorder of Sutter County, California.
5.2 Possession. Upon the Close of Escrow, exclusive possession and occupancy of
{01722451 v.4} 01248.0021/968879.2 3
the Property shall be delivered to Buyer free and clear of all claims of possession and all debris.
5.3 Time is of Essence. Buyer and Seller specifically agree that time is of the essence.
5.4 Executive Director’s Authority. Seller by its execution of this Agreement hereby agrees that its Executive Director or designee (who has been designated by Executive Director’s written notice delivered to Buyer and Escrow Holder) shall, in Executive Director’s sole and exclusive discretion, have authority:
(i) to execute documents on behalf of Seller including, but not limited to, issuing approvals, disapprovals and extensions. Any such approval, disapproval or extension executed by the Executive Director or their designee shall be binding on Seller. (ii) make minor modifications to this Agreement in order to fulfill the direction of the Successor Agency Board, provided that such minor modifications are approved by the Agency’s legal counsel.
6. TITLE POLICY.
6.1 Approval of Title.
(a) Promptly following execution of this Agreement but in no event later than five (5) days following Opening of Escrow, a preliminary title report shall be issued by Placer Title Company (“Title Company”), describing the state of title of the Property, together with copies of all exceptions specified therein and a map plotting all easements specified therein (“Preliminary Title Report”). Within fifteen (15) days after Buyer's receipt of the Preliminary Title Report, Buyer shall notify Seller in writing (“Buyer's Title Notice”) of Buyer's disapproval of any matters contained in the Preliminary Title Report (“Disapproved Exceptions”). Notwithstanding the foregoing, Buyer shall automatically be deemed to object to, and Seller shall automatically be deemed to agree to remove, any deeds of trust, mortgages or other monetary liens on title to the Property.
(b) In the event Buyer delivers Buyer's Title Notice within said period, Seller shall have a period of ten (10) days after receipt of Buyer's Title Notice in which to notify Buyer of Seller's election to either (i) agree to attempt to remove the Disapproved Exceptions prior to the Close of Escrow; or (ii) decline to remove any such Disapproved Exceptions (“Seller's Notice”).
If Seller notifies Buyer of its election to decline to remove the Disapproved Exceptions, fails to timely respond to Buyer's Title Notice, or if Seller is unable to remove the Disapproved Exceptions, Buyer may elect either to terminate this Agreement and the Escrow or to accept title to the Property subject to the Disapproved Exception(s) or deemed Disapproved Exceptions.
Buyer shall exercise such election by delivery of written notice to Seller and Escrow Holder within five (5) days following the earlier of (i) the date of written advice from Seller that such Disapproved Exception(s) cannot be removed; or (ii) the date Seller declines or is deemed to decline to remove such Disapproved Exception(s).
(c) Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement, provided, however, that Buyer's initial period of review and approval or disapproval of any such additional exceptions shall be limited to ten (10) days following receipt of notice of such additional exceptions.