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Home My WebLink About19-Public WorksCITE OF SAN BERNAYtDINO REQUEST' FOR COUNCIL ACTION From: Robert Eisenbeisz, City Engineer Subject: Authorization to Proceed -Sale of a portion of City Water Department property generally located Dept: Public Works northeasterly of Myers Road and west of Martin Ranch Road, and Resolution declaring property Date: September 21, 2010 surplus, establishing fair market value and setting a public hearing. File: 15.05-274 MCC Date: October 18, 2010 Synopsis of Previous Council Action: None. Recommended Motion: 1. That the City Engineer be authorized to proceed with the sale of City Water Department property generally located northeasterly of Myers Road and west of Martin Ranch Road, and being a portion of APN 0348-101-76. AND 2. Adopt Resolution. Robert Eisenbeisz Contact Person: Ryan Sandoval Supporting data attached: Staff Report, Maps, Memo, Reso FUNDING REQUIREMENTS: Amount: None Phone: 5226 Ward(s): 5 Source: (Acct. No.) N/A Acct. Description: N/A Finance: Council Notes: Agenda Item No. ~~'1 ~-~-alU CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION STAFF REPORT Subject: Authorization to Proceed -Sale of a portion of City Water Department property generally located northeasterly of Myers Road and west of Martin Ranch Road, and Resolution declaring property surplus, establishing fair market value and setting a public hearing. Background: On April 22, 2010, the City of San Bernardino Municipal Water Department Board of Water Commissioners ("Board"), declared 5.1 acres of Water Department property as surplus property, generally located northeasterly of Myers Road, and being a portion of APN 0348-101-76. The City acquired the site through a Grant Deed from Frank & Barbara Tostado, and Sant/Tostado #1, a general partnership, for the amount of $30,000 in May 1983, for the future construction of a water storage reservoir. The Grant Deed has no reservations or restrictions on the sale of the land or any portion of the land. The site is currently vacant and is located in the foothills of the San Bernardino mountains. Due to the natural hilly terrain, there is a large slope along the southwesterly portion of the property, and vehicle access to the property is limited. The property is 5.1 acres and consists of approximately 222,160 square feet of sloping land, and is shown more specifically on the attached maps. Water Department ("Department") staff and a consultant completed the Master Plan in 2007 and concluded that this parcel is not necessary for a future reservoir as an alternative site has been identified to meet the 4.0 million gallon water storage requirement. Montecito Equities, Ltd. is planning a proposed residential development (Spring Trails -Tract Map No. 15576) easterly of this City owned parcel. Montecito Equities approached the Water Department to purchase the subject property, which will allow it to be used for a portion of the proposed development's secondary access. A summary appraisal was completed by Inland Empire Consultants, Inc, on behalf of Montecito Equities on March 10, 2010, indicating the estimated market value to be $22,000, based on the terrain and limited access. Section 2.65.030 of the San Bernardino City Municipal Code allows the sale of property valued under $25,000 to be sold by negotiated purchase, so long as the sales price is not less than the fair market value. Since this property has continually been vacant and is of no use to the Department, the Board recommends the City to declare the property as surplus, and to sell this property to Montecito Equities, Ltd. for $22,000, with the condition that a portion of the property will be subject to a deed restriction that indicates such portion may only be used for the construction and maintenance of a roadway. Montecito Equities is agreeable to the purchase and has already executed the Sales and Purchase Agreement. 2 The attached resolution declares the property surplus, establishes the appraised value of $22,000 as the fair market value, and sets a public hearing for November 15, 2010, relative to the proposed sale. At the close of the hearing, a resolution approving the sale and approving a Sales and Purchase Agreement will be submitted for your consideration. Notice of the hearing will be published and posted as required by law. Upon approval of the attached resolution, the City and Montecito Equities, Ltd. will enter into an escrow agreement. The Water Department's net revenue from the sale will be $22,000 as all escrow fees will be paid by the buyer. In conformance with the City Charter, Section 164, the City will receive 10% of all Water Department revenues. Financial Impact: The City of San Bernardino Municipal Water Department will receive $19,800 and the City will receive $2,200 (10%) in conformance with the City Charter from the property sale. Recommendation: Staff recommends that the authorization to proceed with the sale of the property be given and that the attached resolution be adopted. Attachments• - Vicinity Map - Plat Map - Board of Water Commissioners Staff Report - Appraisal Summary Letter - Copy of proposed Sales & Purchase Agreement - Resolution 3 CITY OF SAN BERNARDINO PUBLIC WORKS DEPARTMENT REAL PROPERTY SECTION Indicates un-incorporated areas within City's ® Sphere of Influence PROPOSED SALE OF CITY OWNED PROPERTY (WATER DEPARTMENT USE) GENERALLY LOCATED NORTHEASTERLY OF MYERS ROAD AND WEST OF MARTIN RANCH ROAD, IN THE CITY OF SAN BERNARDINO. Created by: Ryan Sandoval I Date: 09/15/2010 CN~S NAP ~s EDR IRE PURPOS[ Ptn. Rancho Muscupiabe, M.B. 7/23 o3aa- 1 0 DE AD VAIORCN CAxAIIOR ONIr (Sometimes Known as Belmont & Belmont Springs Tracts, Unrecorded) ° --~~ - a~ p9 °9 V0 O ''~~'° w°~~ City of San Bernardino stA.2 0~ w~tio`~,~~s` J°,° ~0~~~~e Son Bernardino Unified a ~, ° 0 4~ e, Tax Rate Area Q J. 0,~ `O ° °° a ° J, 107062,7010,107150 0 o y °9 "~ -~~ ~JJ ~~ d 'to d ., z3° ~ 1E1. e9 `' Z1 ].I ~ N v d _ •IJ J 19° d O'- °~ 4 ~`l~ OT ~ '~`„ 79 J w~ ~~ d \.~ ` \ /ly°°) pOo Isy /~1 Dr ° ~9 6OH ` ~,99 ,1 6p N S1 A. 0 0~~215 'odO ~; 0 ~ J°p t ~ Itio °n ,~ ~ 0\~~~~ { ~.~ $ dO=i 3~J° ~o ~- \' ~ '~ / ~I~O^ ~~ ~~ d.~ 793 h0^ V~'~ 7~ ~~ 06 0~ O v 5I A. 19 0.., O ~ ss7 O h J ~ i~ .., ^ o ~ b' r o O r ~ ^ W ~' OOv+ - d r~ '" / ; y o O 5 '' ~s°0 ~\~1, ~ ~ "sss J e °77 9 ~e° Om ,~`oO~ 6S N ~; 25R .95 STS °71.° a' ~, r9 m 4 '~o ~O ~. t a , J°' ,r Oa L m ~- H JO° tp ~~ ~ r. J°j Oe N ~ J, O SIA. 16 O~ Oa ~ °0 n <+ 7°Jr r _ ~ ~' °o a O'° v `a ° titi~~9 '.° a ~ J77 9° r. '~ ', ~ ~ p 0.~. Parcel Nap No. 5248, P,N. 55/100-101 ' ~° _ a ~ J,° .J PDrcel Nap No 6407, P.N. 65/89 ,.,~ `°~ ~'~° ,, 60a Porcel Nap No. 561(, P.N. 60/98 Iy9 °, ,° _ ~ , Porcel Mop No 4758, P N 45/3 `}5 ° Q,` '° '°s~,aO'<^ ,o o,°,°aO~_ '°~ ° °33 159 t~ ~'ss ,o RE VISCD Porcel Nop No. 4364, P.N. 40183 J°' - 6°~ ' Parcel Nap No 5060, P.N 48/59 ~ o '"~,~ .-+ 4'°6', ~'°~ ry+'' PIn. Porcel Nap No. 3540, P N. 31/84 ~p ~°~' ~ :Og ASSQSSOf~S leap Price{ Nop No 3809, P.N. 44120 JB° ~~~ o, - ne eQ. 800{( 0348 Page jo September 2oo4Pln. Neyers +~ Borcloy Sub., N B 12/18, 2/32 O San Bernardino County IN THE CITY OF SAN BERNdRDINO PRELIMINARY SPRING TRAILS SECONDARY ACCESS ROAD OFSITE OWNERSHIP EXHIBIT .. ... •.•. q .. •,.. VAM HOOK , _ '~-MU.S'C.U.PI.4BE'~rtNCH,L~G ~: ~., ~::.~:~: ~ ..::::::::::::: .. ': ~.. ~~. ~: ~'~-...-....-.-.• ,.......-.._., 0398->O1-9I , --a ... -- ~ *~ ~~ ~ '-: y'~f .,, '. Jr - l~ . ~:. • ~••.c~ : ~ ti. - s, •. . ~ nu n~ uiR i ~ - ~ vv u r ~~ ~ ~ ~ % - . , ~ ~ ~~~ SP~i' LS RA -• ~ RIGHT OF WAY ~0.7 AC SCALE. 1 - 200 '• ~ .. ~• ~ I ~ . . SLOPE AND CONSTRUCTION ' ~ ~ E S ~3.5 AC ~ ~ ~ `~ ~~ . ~ ` ~~ A EMENTS 200 0 200 .. .. 400 ~ 1223 UNIVERSITY AVENUE-SUITE 240 RIVERSIDE CA 925 7 RELIMINARY SECONDARY ACCESS EXHIBIT , 0 s5~.7s2.o7o7 CITY OF SAN BERNARDINO ENGINEERING COMPANY (FAX)951.782.0723 ~dce~inee~ng com 0348-101-76 Rhre~side San Diego orange Sacremenro Phoenix Tucson SCALE: 1'=200' DATE:6-22-2009 G:\d_ 13565\565xbt54_Offisite_Ownershlp.dgn PLOT DATE: 11-AUG-2009 13565C CITY OF SAN BERNARDIN~ MUNICIPAL WATER DEPART E BOARD OF WATER COMMISSIONERS S'T'AFF REPOR 1' 'TC?: Stacey R. Aldstadt, General Manager FROM: Matthew H. Litchfield ~TPR ~7 # ~~ SU$,~ECT: DECLARATION OP SUILPLUS PROPERTY - 5.14 ACRES OF WATER DI~I.'ARTMIL"NT PROPERTY LOCATED NORTH OP IVi8YER8 ROAD AND WEST t3F MARTIN RANCH ROAD - TOSTADO PARCEL DATE: April 22, 2010 COPIES: Greg Gage (w/o attach), Sydney Morrison (w/o attach}, Sally Duran (w/attach} *, l~. The Sxn $emardino Municipal Water laepartrncnt {Department) is requesting Board of Water C:ammissionets {Board) declaration of surplus property fox the Tostado Parcel site (AFN 034&101-7G-0000) located north of Meyers Road and west of Martin Ranch Road in the Verdemorst Area. The surplus portion of land consists of approximately 2Z2,iG4 square feet (5.10 acres} of mildly sloping land. The land is currently not maintained by Depamnent staff due to its rtrnote location. This particular parcel was ariginauy acquired as a future reservoir site for the future 2304 pressure zone. Staff and a consultant competed the Master Plan in 2007 and concluded that this parcel is not necessary for a future reservoir. An alternative site was chosen to meet the 4.0 million gallon water storage requirement. Staff has determined the fair market value of this parcel to be a nominal $22,000.00 based on the following criteria: * The parcel is na longer needed by the Cit}~ or I~epamnent for its intended use. + A property appraisal was conducted by Inland Empire Consultants, Inc, for the patenrial buyer, Monteeito Equities, LLC. The report concludes that the estimated market value of the property as of March 2, 2010 is 522,000,00 based on six {6) comparable sales in the general area is compliance with the Unifotrn Appraisal Standards for Federal Land Acquisitions, the Srate of California Standards for Acquisitions of band as well as USPAP and the Appraisal Institute. • 'The parcel will have a deed restriction for roads, public utilities, and slope areas to be dedicated to the City of San $emardino as part of Tract Map No. 15576 recordation ("Spzing Trails," formerly known as "Martin Ranch"). Agenda item ~~ Stacey R. Aldstadt, General Manager PAge 2 April 22, 2010 SUBJECT: DECt.ARATIOriT OF SURPLUS PROPERTY - 5,14 ACRES OP WATER DEPARTMENT PROPERTY LOCATED NORTH OF MEYERS ROAD AND WEST OP MARTIN RANCH ROAD - TOSTADO PARCEL • The deed testtictiou will allow for a more unrestricted use of the surrounding property as well as secondary access for the Spring Trails ptoyect. Sistce the appraised va]ue of the land is less than ;25,000.00, sale of this property meets the provisions of the City of San Bernardino Municipal Code Section 2.65.030, Negotiated Sale, and may be sold by negotiaoed purchase. It is recommended that the Board of Water Commissioners consider the following, motion for appxoval: +- Declare 5.10 acres of property located north of Meyers Road and west of Martina. Raacb Road (4348-14176-400D} as auiplus; recommend to dtc Mayor and Cotmraoa Councl! that the propetrty be declared surplus; and, fixing the aalcs price at X22,000.00; atzd, apptovitsg a sales a~teement betweet- City/Manrtecita Equitits, LLC anal authorize Staff to subtuit the accessary information to the Mayor and Common Council to declare the property surplus and sell the property to Moueecito Equities, LLC per Section 2.65.030 of the San Serrtardina Municipal Cade in the amount of;22,000.40. Respectfully submitted, '~~ Mat~ihe~xr h~seld, P.la. Director, Water Utility MHL:swd Attach. Vtt:\wUAdmini+nationltiwmi Menw.\Tara~ pared tkehation 5uephu Prorerty Fki Mcnw 414t0.doe j,M. f SUMMARY APPRAISAL REPORT OF VACANT LAND SAN BERNARDINO, CALIFORNIA Location: North of Myers Road and west of Martin Ranch Road, city and county of San Bernardino, California Prepared For: Montecito Equities, LLC 3080 Bristol Street, Suite 630 Costa Mesa, CA 92626 INLAND EMPIRE CONSULTANTS, INC. .~.~,, a~.., INLAND EMPIRE CONSULTANTS, INC. Real Estate Appraisal • Consultation March 10, 2010 Mr. Tom Wilkinson Montecito Equities, LLC 3080 Bristol Street, Suite 630 Costa Mesa, CA 92626 Dear Mr. Wilkinson: In accordance with your request, we have prepared a Suntrriarl~ Appraisal Report pertaining to the property located north of Myers Road and west of Martin Ranch Road in the city and county of San Bernardino, California. The subject property consists of vacant unimproved land totaling 5.1 gross acres, or 222,160± square feet. The subject will be valued on the basis of a fee simple estate. It is zoned RE (Residential Estate) which permits single family dwellings on minimum one acre lots. The subject property was inspected on March 2, 2010, which is our effective date of value. The purpose of this appraisal is to determine market value considering that there will be a deed restriction upon recordation of Tentative Tract Map No. 15576. Areas for road and slopes must be dedicated to the city of San Bernardino as per the deed restriction. This is a Surrernary Appraisal Report, which is intended to comply with the report requirements set forth under Standards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for Summary Appraisal Reports. As such, it presents only summary discussions of the data, reasoning, and analyses that were used in the appraisal process to develop the Appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analysis is retained in our files. The Appraisers are not responsible for unauthorized use of this report. COKPOR~ITE OFFICE. 5-15 W. Sixth Street • Ontario. California 9176'_ • 1909) 98R-3200 • FA\: (9091 98-4--1'_'_6 REGIO.YAL OFFICE 76-686 DaffoOil Drive • Palm Desert, California 92211 • (760) 3~5-6885 ~K Mr. Wilkinson March 10, 2010 Page 2 ~,t This appraisal report is in compliance with the Uniform Appraisal Standards for Federal Land Acquisitions, the State of California Standards for Acquisitions of Land as well as USPAP and the Appraisal Institute. A thorough inspection was made of the subject property and the surrounding area, and the data pertaining thereto was carefully analyzed and incorporated in the following pages and exhibits. Based upon an analysis of all relevant data, we conclude to the following estimate of value: Estimated Market Value of the Subject Property on March 2, 2010, is.........$22,000 TWENTY TWO THOUSAND DOLLARS Respectfully Submitted, INLAND EMPIRE CONSULTANTS, INC. ~ ~~~ Phillip Gottfried, MAI Principal CA #AG007332 Clark N. Gamble Principal CA #AG007305 CERTIFICATE OF THE APPRAISERS We, Phillip Gottfried and Clark N. Gamble certify that to the best of our knowledge and belief: The statements of fact contained in this report are true and correct. The reported analyses, opinions and conclusions are limited only to the reported assumptions and limiting conditions, and are our personal, unbiased professional analyses, opinions and conclusions. We have no present or prospective interest in the property that is the subject of this report and we have no personal interest or bias with respect to the parties involved. Our compensation is not contingent on an action or event resulting from the analyses, opinions or conclusions, or the use, of this report. Our analyses, opinions and conclusions were developed and this report has been prepared in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. This report has also been prepared in conformity with the Uniform Standards of Professional Appraisal Practice. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, Phillip Gottfried has completed the requirements under the continuing education program of the Appraisal Institute. We have made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the persons signing this certification. The Appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. y CERTIFICATE OF THE APPRAISERS We are competent to perform this appraisal assignment, by virtue of previous experience with similar assignments and/ or appropriate research and education regarding the specific property type being appraised. Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. It is the intention of the Appraisers that the report complies with all statues, rules, and regulations prohibiting discrimination on the basis of race, color, religion, sex, national origin, and marital status. Respectfully submitted, INLAND EMPIRE CONSULTANTS, INC. Phillip Gottfrie , MAI Principal CA #AG007332 ~~. - ~ Clark N. Gamble Principal CA #AG007305 ?~o Date 3_z3_~~ Date Ce:.'TY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS This Purchase and Sale Agreement and Joint Escrow Instructions ("Agreement") is dated as of this _ day of September. 2010 ("Effective Date"), by and between Montecito F,quities Ltd., a California limited partnership ("Montecito"), and City of San Bernardino, a Municipal Corporation ("City"). Hereafter, Montecito and City are sometimes referred to as "Party" and collectively as "Parties". RECITALS WHEREAS, City owns for the benefit of the City of San Bernardino Municipal Water Department approximately 5.1 acres of real property in the County of San Bernardino, State of California, as more particularly described in Exhibit "A," attached hereto and incorporated by this reference (the "Property"); WHEREAS, City of San Bernardino Municipal Water Department has deemed the Property as surplus property; WHEREAS, Montecito desires to purchase the Property from City, and City desires to sell the Property to Montecito, on the terms and conditions contained in this Agreement; and WHEREAS, the Parties desire to enter into this Agreement to memorialize the terms and conditions upon which City shall sell, and Montecito shall purchase, the Property. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the foregoing Recitals, which Recitals are incorporated herein by this reference, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and in consideration of the mutual covenants contained herein, the Parties hereby agree as follows: ARTICLE I PURCHASE AND SALE 1.1 Purchase and Sale. Montecito agrees to purchase the Property from City and City, agrees to sell the Property to Montecito, subject to the terms, conditions, and covenants contained in this Agreement. The Property shall be conveyed to Montecito at the Close of F,scrow free of any monetary encumbrances, all of which shall be paid by City on or before the Closing. 1.2 Deed Restriction. The Property shall be conveyed to Montecito at the Closing subject to a deed restriction ("Deed Restriction") that will provide that the portion of the Property described on Exhibit "B", attached hereto and incorporated herein by reference ("Restricted Portion") may only be used for the construction, maintenance and operation of a roadway (which will include all ancillary uses, such as utility easements, slopes and setbacks). Water District Purchase Agreement (0348-101-76) (102 11~•R L~~;' ~I !H~nr~ ARTICLE II PURCHASE PRICE AND DEPOSITS 2.1 Escrow. After this Agreement is executed by both Parties, Montecito shall open an escrow ("Escrow") with First American Title Insurance Company, 330 West Court Street, San Bernardino, California 92401 ("Escrow holder"), by delivering a fully executed copy of this Agreement to Escrow Holder. 2.2 Purchase Price. The Purchase Price for the Property shall be Twenty-Two Thousand and No/l00 Dollars ($22,000.00) ("Purchase Price"), payable as follows: (a) Deposit. Within five (5) business days of the opening of Escrow, Montecito shall deposit with Escrow Holder the sum of Five Thousand and No/100 Dollars ($5,000.00) ("Deposit"). (b) Balance of Purchase Price. At the Closing, Montecito shall deposit into Escrow the sum of Seventeen Thousand and No/100 Dollars ($17,000.00) in cash, or other immediately available funds, which, together with the Deposit, totals the Purchase Price. 2.3 Form of Payment. All money payable under this Agreement shall be paid in cash, by wire transfer, a cashier's check or certified check of immediately available federal funds of the United States. ARTICLE III CITY COUNCIL APPROVAL 3.1 City Council Approval. Within sixty (60) days of the Effective Date, City shall present this Agreement to City council for approval to proceed with the transaction contemplated hereby ("Council Approval"). Both Montecito's and City's obligations hereunder shall be contingent upon the occurrence of Council Approval. Within two (2) days of consideration by the City council, City shall advise Montecito whether it has obtained Council Approval or whether the transaction contemplated hereby was not approved by the City council. Upon the occurrence of Council Approval, the parties shall proceed to the Closing. In the event the City council does not approve of the transaction contemplated hereby, this Agreement shall terminate, the Deposit shall be returned to Montecito, and thereafter neither party shall have any further rights or obligations hereunder. If Council Approval does not occur within two hundred seventy (270) days of the Effective Date, either party hereto may terminate this Agreement by providing written notice to the other, in which event the Deposit shall be returned to Montecito, and thereafter neither party shall have any further rights or obligations hereunder. ARTICLE IV CLOSING 4.1 Closing. The purchase and sale of the Property shall be consummated through a closing ("Closing") in accordance with the following: -2- W ater District Purchase Agreement (034& 10I -76) 0(12 V1nX L~~~17 -~i;xev I A. Close of Escrow. The close of escrow ("Close of Escrow") shall occur thirty (30) days after Council Approval (the "Closing Date"). The Close of Escrow shall occur at the office of the Escrow Holder or such other location as is acceptable to the Parties to this Agreement. B. Closing Documents. (i) City. Prior to the Closing Date, City shall cause to be delivered to Escrow the following: (a) A grant deed ("Deed") conveying the Property to Montecito, which Deed shall include the Deed Restriction on the Restricted Property; (b) Such documents and instruments as Escrow may reasonably require to evidence the due authorization and execution of the documents and instruments to be delivered by City under this Agreement; and through Escrow. (c) City's share of any costs and expenses to be paid to or (ii) Montecito. Prior to the Closing Date, Montecito shall deliver to the Escrow the following: (a) The balance of the Purchase Price payable by Montecito at the Closing pursuant to Section 2.2(b), plus Montecito's share of any costs and expenses to be paid to or through Escrow; and (b) Such documents and instruments as Escrow may reasonably require to evidence the due authorization and execution of the documents and instruments to be delivered by Montecito under this Agreement. 4.2 Fees; Expenses; Prorations. A. Fees, Expenses, Transfer Taxes. Montecito shall pay: (a) Escrow Holder's fee; (b) the cost of any title policy that Montecito elects to purchase; (c) any documentary transfer tax payable on the sale of the Property. Montecito and City shall each pay for their own attorneys' fees. B. Real Property Taxes, Assessments and Rents. Any real property taxes and assessments shall be prorated and adjusted on the basis of the actual days in the calendar year. Montecito shall pay for the date of Closing. Montecito acknowledges that City is not subject to real property taxes and assessments. C. Commissions. Montecito and City each represent to each other that they have not employed or contracted with any other broker on their behalf in connection with this transaction. -3- Water District Purchase Agreement (0348-101-76) 002 \1Pkl ni3-'.11589; ARTICLE V DEFAULT 5.1 Montecito's Default. IF MONTECITO DEFAULTS UNDER THIS AGREEMENT, CITY SHALL BE RELEASED FROM OBLIGATION TO SELL THE PROPERTY TO MONTECITO, BUT CITY, BY INITIALING THIS PARAGRAPH, SHALL HAVE RELEASED MONTECITO FROM ANY CLAIMS OR CAUSES OF ACTION ARISING OUT OF SUCH DEFAULT, AND CITY SHALL HAVE AGREED THAT CITY SHALL RETAIN THE "DEPOSIT" AS LIQUIDATED DAMAGES, AND THAT SUCH RETENTION SHALL BE CITY'S SOLE REMEDY AGAINST MONTECITO IN REGARD TO SUCH DEFAULT. THE PARTIES HERETO HAVE CONSIDERED THE AMOUNT OF DAMAGES WHICH CITY IS LIKELY TO INCUR IN THE EVENT OF A DEFAULT OR BREACH HEREUNDER BY MONTECITO, AND THE PARTIES HERETO HAVE AGREED THAT THE DEPOSIT IS A REASONABLE APPROXIMATION AND LIQUIDATION OF CITY'S POTENTIAL DAMAGES, CONSIDERING ALI, OF THE CIRCUMSTANCES EXISTING ON THE DATE OF THIS AGREEMENT, INCLUDING THE RELATIONSHIP OF THE SUM TO THE RANGE OF HARM TO CITY THAT REASONABLY COULD BE ANTICIPATED AND THE ANTICIPATION THAT PROOF OF ACTUAL DAMAGES WOULD BE COSTLY OR INCONVENIENT. THE RECEIPT AND RETENTION OF SUCH AMOUNT BY CITY IS INTENDED TO CONSTITUTE THE LIQUIDATED DAMAGES TO CITY PURSUANT TO THE CALIFORNIA CIVIL CODE, AND SHALL NOT BE DEEMED TO CONSTITUTE A FORFEITURE OR PENALTY WITHIN THE MEANING OF THE CALIFORNIA CIVIL CODE, OR ANY SIMILAR PROVISION. SAID AMOUNT OF LIQUIDATED DAMAGES SHALL BE IN LIEU OF ANY OTHER REMEDIES, DAMAGES OR SUMS DUE OR PAYABLE TO CITY. IN PLACING THEIR INITIALS AT THE PLACES PROVIDED, EACH PARTY SPECIFICALLY CONFIRMS THE ACCURACY OF THE STATEMENTS MADE ABOVE. MONTECITO CITY 5.2 City's Default. If the transaction contemplated hereby fails to close as the result of City's default under this Agreement, Montecito shall have all remedies available at law and equity, including, without limitation, specific performance. ARTICLE VI REPRESENTATIONS AND WARRANTIES 6.1 City's Representations and Warranties. City represents and warrants to Montecito that, as of the date this Agreement is executed and as of the Closing Date: (i) City has full right, power and authority to execute and deliver this Agreement and to perform the undertakings of City contained in this Agreement; (ii) this Agreements constitutes valid and binding obligations of City that are legally enforceable in accordance with its ternls; (iii) no hazardous materials have been released on the Property; (iv) City- is not aware of any matters that would affect the value or desirability of the Property. -4- N'ater District Purchase Agreement (0348-101-76) 002 ARTICLE VII MISCELLANEOUS 7.1 Assignment. Neither Party shall assign its rights nor delegate its obligations under this Agreement without obtaining the prior written consent of the other Party hereto. 7.2 Attorneys' Fees. If any action, proceeding or arbitration is brought to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover from the other party, in addition to all other damages, all costs and expenses of such action, proceeding or arbitration, including but not limited to actual attorneys' fees, witness fees' and court costs. The phrase "prevailing party" as used in this Section shall include a party who receives substantially the relief desired whether by dismissal, summary judgment or otherwise. 7.3 Notices. All notices and requests under this Agreement shall be in writing and shall be sent by personal delivery, by certified or registered mail, postage prepaid, return receipt requested, or nationally recognized overnight mail carrier such as Federal Express, to the following street addresses: To City: City of San Bernardino Attn: Matthew H. Litchfield, P.E. 300 North D Street, 5`'' Floor San Bernardino, CA 92418 To Montecito: Montecito Equities, Ltd. Attn: Tom Wilkinson 3080 Bristol Street, Suite 630 Costa Mesa, CA 92626 With a copy to: Gresham, Savage, Nolan & Tilden, APC Attn: J. Matthew Wilcox, Esq. 550 E. Hospitality Lane, Suite 300 San Bernardino, CA 92408-4205 All notices shall be effective upon receipt or rejection. 7.4 Cooperation. Each Party shall fully cooperate with the other in connection with the requirements imposed by this Agreement upon the other, to the end that neither Party shall act in any manner to impede the other in performing its obligations under this Agreement. 7.5 lnterpretation/ForumNenue. This Agreement shall be construed and enforced in accordance with the laws of the State of California as applicable to contracts entered into in California among parties doing business therein. The Parties agree that any litigation or dispute concerning this Agreement or the transaction contemplated hereby will be resolved in the Superior Court of the State of California, County of San Bernardino only. 7.6 Successors and Assigns. This Agreement shall be binding upon and inure to the benefits of the heirs, successors and assigns of the parties to this Agreement. -5- Water District Rirchase Agreement (11348-10I-76) l!0? 11nR;-~~I~ _ 511X`"I i 7.7 Severability. If any term or provision of this Agreement is determined to be invalid or unenforceable, the remaining terms and provisions shall not be affected thereby and shall remain in full force and effect to the maximum extent permitted by law. 7.8 Counterparts. This Agreement may be executed in counterparts, all of which shall constitute the same Agreement, notwithstanding that all parties to this Agreement are not signatory to the same or original counterpart. 7.9 Survival. All covenants and agreements of the Parties hereto shall survive the Closing. 7.10 Withholding Requirements. Montecito and City agree to comply with any withholding requirements of Federal or State law. 7.11 Integration. This Agreement, together with all the agreements referenced herein, constitutes the entire agreement between the Parties pertaining to the subject matter contained in it and supersedes all prior and contemporaneous agreements, representations, and understandings of the Parties. No supplement, modification, or amendment of this Agreement will be binding unless executed in writing by all the Parties. No waiver of any of the provisions of this Agreement will be considered, or will constitute, a waiver of any other provision, and no waiver will constitute a continuing waiver. No waiver will be binding unless executed in writing by the Party making the waiver. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first set forth above. MONTECITO" MONTECITO EQUITIES, LTD., a California limited partnership "CITY" CITY OF SAN BERNARDINO, a Municipal corporation By• ' Thomas Wilkinson Its: General Partner Date: < ~ ' ~~ ~ Approved To Form: James F. Penman, City Attorney By: c ~Y Its: Date: -6- Waler District Purchase Agreement (0348-101-76) 002 itr,X; ni= ~~ ~114U~ I EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY All that certain real property located in the County of San Bernardino, more particularly described as follows, and as depicted on Exhibit "A-1 ", attached hereto: PARCEL NO. 1 THAT PORTION OF LOT 15; MEYERS AND BARCLAY SUBDIVIDION, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2 OF MAPS, PAGE 32, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBECD AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 15; THENCE SOUTH 27 DEGREES 15 MINUTES WEST ALONG THE EASTERLY LINE OF SAID LOT 15, 540 FEET, THENCE WESTERLY AT RIGHT ANGLES TO SAID EASTERY LINE TO THE POINT OF INTERSECTION WITH THE WESTERLY LINE OF THE PROPERTY CONVEYED TO SAM STERN AND SHIRLEY STERN, HUSBAND AND WIFE, BY DEED RECORDED IN BOOK 6114, PAGE 14, OFFICIAL RECORDS; THENCE NORTHERLY TO THE POINT OF INTERSECTION OF A LINE PARALLEL TO THE NORTHERLY LINE OF SAID LOT 15, DISTANT 320 FEET THEREFROM WITH A LINE PARALLEL TO THE EASTERLY LINE OF SAID LOT 15, DISTANT 515 FEET THEREFROM, THENCE EASTERLY PARALLEL TO THE NORTHERLY LINE OF SAID LOT, 175 FEET; THENCE NORTH PARALLEL TO THE EASTERLY LINE OF SAID LOT 15 TO A POINT ON THE NORTHERLY LINE OF SAID LOT 15; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID LOT TO THE POINT OF BEGINNING. PARCEL NO. 2: AN EASEMENT FOR ROADWAY, PIPELINE AND RELATED PURPOSES, IN, OVER, UNDER AND ACROSS THE FOLLOWING DESCRIBED PROPERTY: THAT PORTION OF LOT 15, MEYERS AND BARCLAY SUBDIVISION, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2 OF MAPS, PAGE 32, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: A STRIP OF LAND 50 FEET WIDE, THE CENTER LINE OF WHICH IS DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 15, THENCE SOUTH 27 DEGREES 15 MINUTES WEST ALONG THE EASTERLY LINE OF SAID LOT 15, 540 FEET; THENCE WESTERLY AT RIGHT ANGLES TO SAID EASTERLY LINE 280 FEET, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE SOUTHWESTERLY PARALLEL TO SAID EASTERLY LINE OF LOT 15 TO THE INTERSECTION OF SOUTHERLY LINE OF THE PROPERTY CONVEYED TO EMANUEL NEIMAN AND AGNES NEIMAN, HUSBAND AND WIFE, BY DEED RECORDED DECEMBER 14, 1943 IN BOOK 1645, PAGE 136, OFFICIAL RECORDS OF SAID COUNTY, TO THE TERMINATION OF SAID STRIP NOTE: SIDELINES OF SAID EASEMENT SHALL BE SHORTENED OR LENGTHENED IN ORDER TO TERMINATE AT THE SOUTHERLY LINE OF SAID NEIMAN PROPERTY. EXHIBIT "A" ti,~,~~,-~~~-_-;~~s„~, EXHIBIT "A-1" DEPICTION OF PROPERTY EXHIBIT "A" ~jt /,MFR ty k' ~ ~.~ ~~~~ -~_. ~ First American Title ~`ompany Reference No.: 3493450 County: San Bernardino . Location Map - ~E ~ of Legend N W E ~ PARCEL 1 r - L _ _~ PARCEL 2 S ~_. f ~ j ~ / ~ J '°,~..w ~ _ ~ u... 1 ~ .. ~a ~ < r _ ~ ~~ ~. ~,_ ~ .. , ~ ~ ~ • r. ~? ~Q ! ~ w ~ $;, t j £ / ,.. ! ~,~ ~ j ~Y. ,k , ' ! ~~~M ~ ! ~ _,< W , ! ~ ~'~~ j ' ~ ~ ~~.~ u. ~ .. j E ~- ,, , ~ ~ '. Tax ID: 0348-101-76-0-000 This map may or may not be a survey of the land depicted hereon. Map Not You should not rely upon it for any purpose other than orientation " Short I ': A Portion of Lot 15 Sub division Map Bk2 Pg32 To Scale to the general location of the parcel or pares depicted. First American Title expressly disclaims any liab' Ileged loss or damage which may result from relian n this map. Pss •~:ea~rq k~ '~ ut ~~~~ _:~~ N ~. W E S First American Title Company TPOB of Item #6 Reference No,: 3493450 County: San Bernardino f PARCEL 1 ~x 1 r :. ..,~ , r' ~' ~, ~€~ s. Plotted Easements Legend PARCEL 1 07/19/1883 Bk34 Pg196 (Pipelines-Not Plottable) 12/04/1930 Bk677 Pg124 ® (Pole Lines-60' Wide) This map may or may not be a survey of the land depicted hereon. Tax ID:034$-101-76-0-000 Map Not You should not rely upon it for any purpose other than orientation to the general location of the parcel or pare' depicted. First Short ( '~ A Portion of Lot 15 Sub division Ma Bk2 P 32 To Scale American Title expressly disclaims any liab' Ileged loss or p 9 damage which may result from relian ~ this map. EXHIBIT "B" LEGAL DESCRIPTION OF RESTRICTED PORTION All that certain real property located in the County of San Bernardino, more particularly described as below and as depicted on Exhibit "B-1" A PORTION OF LOT 15 OF MEYERS AND BARCLAY SUBDIVISION, AS SHOWN BY MAP ON FILE IN BOOK 2, PAGE 32 OF MAPS, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 15, THENCE ALONG THE EASTERLY LINE OF SAID LOT 15, SOUTH 27°15'00" WEST, A DISTANCE OF 288.18 FEET; THENCE SOUTH 82°09'53" WEST A DISTANCE OF 179.13 FEET; THENCE SOUTH 33°07'56" WEST, A DISTANCE OF 150.20 FEET TO A POINT ON A LINE WHICH IS PERPENDICULAR TO THE EASTERLY LINE OF SAID LOT 15, A POINT OF INTERSECTION, OF THE EASTERLY PROLONGATION OF SAID PERPENDICULAR LINE TO THE EASTERLY LINE OF SAID LOT 15 BEING SOUTH 27°15'00" WEST, A DISTANCE OF 540.00 FEET FROM THE NORTHEAST CORNER OF SAID LOT 15; THENCE NORTH 62°56'38" WEST, A DISTANCE OF 91.19 FEET; THENCE NORTH 24°23'29" EAST, A DISTANCE OF 144.48 FEET; THENCE NORTH 31°07'03" EAST A DISTANCE OF 309.63 FEET; THENCE NORTH 58°13'05" EAST A DISTANCE OF 107.55 FEET TO A POINT ON THE NORTHERLY LINE OF SAID LOT 15; THENCE ALONG SAID NORTHERLY LINE, SOUTH 61°19'37" EAST A DISTANCE OF 184.21 FEET; TO THE TRUE POINT OF BEGINNING. CONTAINING 2.36 ACRES, MORE OR LESS. EXHIBIT "B-1" ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. EXHIBIT "B" Mc~x3-or2--s~ixxr.t Q H ~ U Q4 F~ wz O f"~ a A ~6IUSCUPI.!J8F RAh; LLC 17.,~~8-lllf 19 IN THE CITY ~F SAhJ ERNARDINt~ _ P€~PERTY ~:~~IIT _ ~` ~IR~T AAA ~F.~ER .S 0623-34t?3~a~t? =?~ ~. QAT ~ ~4°-~2-2Q1s~ `, ~;~~py X348-1'I1°°76 `, ~lUSL'UPIQBE RAND LLL' ' _. ` w ~~--ACCESS EA5EMEt~T _ `~ PEF~ PAR~E~. `~' AS C~ESCf~IBED INST. .°" "" . N#~, 83-1385139 REG. 6-23-1983 -' ~ " ` °; ~#/ICHAEL R. & LAURIE E XELLFY ~K B 114, PG, 14 4 4 s ._ ~~ r ~~ LITY Elf ~.`~ SAN BFRNARf}IN~? P06 2.36 AG o.~~a-~rl--~~ ,-~ 3_ Nt{3~RTH~AST coy. ~y~[~ / any 1 LV T 15, ~~. 2t,,.,_ __ ~lit~ ~~p ferry I5 ~ ~~i. ~t ""v ,~- __ ~.,, J ,: ,4;` j j ~ ~l 4~. ~~" 4 t f ~ F 1. I NE T ABt~E ' . _ _ r I1fii~YY1S T. SNARES ~~ _~ ~' r " " AE E3IRECT"I {3N ~ENGTN fAAfILY TRUST '~ j E~ANS N -- ,.' ~`~ _ _________ ___ 17348 117E 35 t7.~48-111-28 - -°' ~~ ~ $~° U~' S3'~ ~ 179.9 3' - - •- _ t.3 N 3~g~7`5Es" ~ 95(3.27` l ~r~ a.~~ ~4 N ~~°56'38" kV 89.19` ~~~ ~~---~..'~'~ L5 N 31°~37`Q3,, ~ 3139.63' j`~ SPRItt~G' TRAILS e'~~~`; ;~-~ ~. r"`~, ~ ~3, L 7 ~1 69 " 19' 3 T " 6Y 184.21 ' ~ - ~. ~ ` t~io. ~0335~! L8 N .2.7° t S' bC~" E 547. (3tl` .. ~~ ~ ~ ~ 1.9 N 24° 23' 25" 144.48 ` , Exp. -3t~- ~3CALE; "~' ° ~~~` ,.=;fit--~'; ~ .~ ~j~~„CiVtS.. a~/` ~at3 Q 2C}C~ 400 ,,.~..~,.,~~_~ ', ~ 111 IIII 'fUNtV~RSITYItvE~UE- ~ize24ti r~ I I Rf d~F25tD~, ~A 925SA7 f ~~ t ?~~ ~7fl~ f~ ~1.X ~a t . 78;x. £b72~ £ ~I\F.F12t`: Ci ~,~~ tF .~..`: .;iclce~en6ersry.rx, ~I "ati.c ~y~ y,~~ i :i~~ M~St `^_..t.1-T%SRQ 'Sly®TKI% ~vLSabn EXHIBIT 'fl` P3~flPQSEt~ RIGHT Of WAY GEEt3 RSTRiCTION 1`-2C3I7` HATE: (14-22-21{7 rN W PA 19 20 21 22 23 24 25 26 27 28 1 2 . RESOLUTION NO. . RESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A FAIR 3 MARKET VALUE AND SALES PRICE OF $22,000 AND DECLARING THE INTENTION OF THE CITY TO SELL CITY OF SAN BERNARDINO MUNICIPAL 4 WATER DEPARTMENT OWNED PROPERTY GENERALLY LOCATED 5 NORTHEASTERLY OF MYERS ROAD AND WEST OF MARTIN RANCH ROAD TO MONTECITO EQUITIES, LTD. AND SETTING A PUBLIC HEARING FOR 6 NOVEMBER 15,2010 AT 4:00 P.M., TO CONSIDER SAID SALE. 7 8 WHEREAS, the City of San Bernardino Municipal Water Department ("Water 9 Department"), a municipal corporation, is the owner of the hereinafter described parcel of real 10 property, generally located northeasterly of Myers Road and west of Martin Ranch Road, in the 11 12 ~ore fully described in ~xhibit "A" attached he!eto and made a part he~eof; and 13 14 15 16 17 18 City of San Bernardino, State of California, known as Assessor's Parcel No. 0348-101-76 and WHEREAS, Montecito Equities, Ltd. has expressed a desire to purchase said Water Department owned parcel described herein; and WHEREAS, the Mayor and Common Council of said City believe it is in the best interest of the City that said parcel of real property be disposed of at fair market value; and WHEREAS, Montecito Equities, Ltd. hired Inland Empire Consultants, Inc., a California Certified General Real Estate Appraiser, to prepare an appraisal of the City property described herein; and WHEREAS, Inland Empire Consultants, Inc. has prepared and submitted a summary appraisal report determining the fair market value of said Water Department property to be in the amount of TWENTY TWO THOUSAND DOLLARS ($22,000.00); and WHEREAS, Water Department staff has accepted the appraisal report of Inland Empire Consultants, Inc. as determination of fair market value of said Water Department property; and 09/16/2010 1 2 3 4 5 6 ESOLUTION OF THE CITY OF SAN BERNARDINO ES'TABLISHING A FAIR MARKET VALUE AND ALES PRICE OF $22,000 AND DECLARING THE INTENTION OF THE CITY TO SELL CITY OF SAN ERNARDINO MUNICIPAL WATER DEPARTMENT OWNED PROPERTY GENERALLY LOCATED ORTHEASTERLY OF MYERS ROAD AND WEST OF MARTIN RANCH ROAD TO MONTECITO QUITIES, LTD. AND SETTING A PUBLIC HEARING FOR NOVEMBER 15, 2010 AT 4:00 P.M., TO ON SIDER SAID SALE. WHEREAS, pursuant to Section 2.65.030 of the San Bernardino Municipal Code, City owned property with a fair market value of less than $25,000 may be sold by negotiated 7 8 purchase, so long as the sales price is not less than the fair market value of said real property. 9 10 11 12 13 14 15 16 17 18 19 20 21 THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The public interest and convenience require the sale of a portion of Water Department owned real property generally located northeasterly of Myers Road, in the City of San' Bernardino, more fully described in said Exhibit "A", and same is hereby declared as surplus real property. SECTION 2. It is therefore the intention of the Mayor and Common Council of the City of San Bernardino to sell said real property to Montecito Equities, Ltd. SECTION 3. The Mayor and Common Council do hereby find and determine that the Fair Market Value and sales price of said real property is in the amount of TWENTY TWO THOUSAND DOLLARS ($22,000.00); and SECTION 4. The Mayor and Common Council of the City of San Bernardino do 22 23 24 25 26 27 28 hereby set a public hearing to be held on November 15,2010, at the hour of 4:00 p.m. or as soon thereafter as the matter can be heard, in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California, relative to the proposed sale. SECTION 5. Notice of the public hearing shall be published in The San Bernardino County Sun, a newspaper of general circulation, at least once prior to the public hearing and 09/16/2010 2 1 ESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A FAIR MARKET VALUE AND 2 ALES PRICE OF $22,000 AND DECLARING THE INTENTION OF THE CITY TO SELL CITY OF SAN ERNARDINO MUNICIPAL WATER DEPARTMENT OWNED PROPERTY GENERALLY LOCATED ORTHEASTERLY OF MYERS ROAD AND WEST OF MARTIN RANCH ROAD TO MONTECITO QUlTIES, LTD. AND SETTING A PUBLIC HEARING FOR NOVEMBER 15, 2010 AT 4:00 P.M., TO ONSIDER SAID SALE. 3 4 5 shall be posted in at least 3 conspicuous places on the property at least (10) days prior to the 6 7 8 hearing. SECTION 6. Written and oral protest to such sale may be submitted and shall be 9 received at or prior to the public hearing. Written protests may also be submitted to the City 10 Clerk's Office, City Hall, 300 N. "D" Street, San Bernardino, California, prior to the public 11 12 13 14 hearing. SECTION 7. It is the intent of the Mayor and Common Council to consider and approve the sale of said property described herein, at said public hearing. 15 III 16 III 17 18 19 20 21 22 23 24 25 26 27 28 09/16/2010 3 1 ESOLUTION OF THE CITY OF SAN BERNARDINO ESTABLISHING A FAIR MARKET VALUE AND 2 ALES PRICE OF $22,000 AND DECLARING THE INTENTION OF THE CITY TO SELL CITY OF SAN ERNARDINO MUNICIPAL WATER DEPARTMENT OWNED PROPERTY GENERALLY LOCATED ORTHEASTERLY OF MYERS ROAD AND WEST OF MARTIN RANCH ROAD TO MONTECITO QUlTIES, LTD. AND SETTING A PUBLIC HEARING FOR NOVEMBER 15,2010 AT 4:00 P.M., TO ONSIDER SAID SALE. 3 4 5 6 7 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a meeting thereof held on the 8 day of , 20_, by the following vote, to 9 wit: AYES NAYS ABSTAIN ABSENT 10 Council Members: 11 12 13 14 15 16 17 18 19 20 21 MARQUEZ DESJARDINS BRINKER SHORETT KELLEY JOHNSON MCCAMMACK City Clerk day of ,20_ 22 The foregoing resolution is hereby approved this 23 24 25 26 27 28 PATRICK J. MORRIS, Mayor City of San Bernardino 09/16/2010 4 ExmBIT "A" LEGAL DESCRIPTION OF PROPERTY All that certain real property located in the County of San Bernardino, more particularly described as follows, PARCEL NO.1 THAT PORTION OF lOT 15; MEYERS AND BARCLAY SUBDIVIDION, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 2 OF MAPS, PAGE 32, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBECD AS FOllOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID lOT 15; THENCE SOUTH 27 DEGREES 15 MINUTES WEST ALONG THE EASTERLY LINE OF SAID lOT 15, 540 ,FEET, THENCE WESTERLY AT RIGHT ANGLES TO SAID EASTERY LINE TO THE POINT OF INTERSECTION WITH THE WESTERLY LINE OF THE PROPERTY CONVEYED TO SAM STERN AND SHIRLEY STERN, HUSBAND AND WIFE, BY DEED RECORDED IN BOOK 6114, PAGE 14, OFFICIAL RECORDS; THENCE NORTHERLY TO THE POINT OF INTERSECTION OF A LINE PARAllEL TO THE NORTHERLY LINE OF SAID lOT 15, DISTANT 320 FEET THEREFROM WITH A LINE PARAllEL TO THE EASTERLY LINE OF SAID lOT 15, DISTANT 515 FEET THEREFROM, THENCE EASTERLY PARALLEL TO THE NORTHERLY LINE OF SAID LOT, 175 FEET; THENCE NORTH PARALLEL TO THE EASTERLY LINE OF SAID LOT 15 TO A POINT ON THE NORTHERLY LINE OF SAID lOT 15; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID lOT TO THE POINT OF BEGINNING. PARCEL NO.2: AN EASEMENT FOR ROADWAY, PIPELINE AND RELATED PURPOSES, IN, OVER, UNDER AND ACROSS THE FOllOWING DESCRIBED PROPERTY: THAT PORTION OF LOT 15, MEYERS AND BARCLAY SUBDIVISION, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA. AS PER MAP RECORDED IN BOOK 2 OF MAPS, PAGE 32, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: A STRIP OF LAND 50 FEET WIDE, THE CENTER LINE OF WHICH IS DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 15, THENCE SOUTH 27 DEGREES 15 MINUTES WEST ALONG THE EASTERLY LINE OF SAID LOT 15, 540 FEET; THENCE WESTERLY AT RIGHT ANGLES TO SAID EASTERLY LINE 280 FEET, SAID POINT BEING THE TRUE POINT OF BEGINNING; THENCE SOUTHWESTERLY PARALLEL TO SAID EASTERLY LINE OF LOT 15 TO THE INTERSECTION OF SOUTHERLY LINE OF THE PROPERTY CONVEYED TO EMANUEL NEIMAN AND AGNES NEIMAN, HUSBAND AND WIFE, BY DEED RECORDED DECEMBER 14, 1943 IN BOOK 1645, PAGE 136, OFFICIAL RECORDS OF SAID COUNTY, TO THE TERMINATION OF SAID STRIP NOTE: SIDELINES OF SAID EASEMENT SHALL BE SHORTENED OR LENGTHENED IN ORDER TO TERMINATE AT THE SOUTHERLY LINE OF SAID NEIMAN PROPERTY. EXHIBIT "A" \1',<