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HomeMy WebLinkAboutNelson, Aaron & Tina;Thompson, Allyn 2007-05-09 CROSS-REFC,&� 05�� Executed in Duplicate City of Ukiah Public Utilities Department Ukiah Civic Center 300 Seminary Avenue Ukiah, CA. 95482 SEWER LATERAL REPAIR/REPLACEMENT AGREEMENT This Sewer Lateral Repair/Replacement Agreement ("Agreement") between the City of Ukiah, a municipal corporation ("City"), and Allyn Thompson, Aaron Nelson & Tina Nelson ("Buyer"), is entered into on May 9, 2007 ("Effective Date"), in Ukiah, California. City and Buyer hereby acknowledge the following: 1. Buyer is purchasing or acquiring real property described in the attached Exhibit A ("the Property"). The property address is 272 Arlington Avenue, Ukiah, California 95482. The property is currently in escrow for a Change of Ownership, and escrow is scheduled to close on May 11, 2007. 2. Under the applicable ordinance of the City or Ukiah Valley Sanitation District ("District"), subject to exceptions that do no apply to the pending Change of Ownership, the sewer lateral serving a parcel of real property must be inspected and made to comply with applicable sewer lateral standards, whenever there is a Change of Ownership of that property. 3. On May 3, 2007, a sewer lateral inspection (the "Initial Inspection") of the sewer lateral serving the Property was conducted pursuant to [check one] X Ukiah City Code (UCG) §3799.2.D.5 or ❑ District Ordinance No. 29, Sections 29-4 or 29-6 § . The inspection identified conditions in the sewer lateral requiring repair or replacement. 4. Under [checkone] X UCC §3799.4.13 or ❑ District Ordinance No. 29, Sections 29-4 or 29-6 § , any sewer lateral which has been found through testing and/or inspection to require repairs or replacement must be replaced or repaired. Upon completion of the repair and/or replacement of the sewer lateral, re -inspections shall be conducted until the sewer lateral passes the required test. Upon passing the test, the Ukiah Public Utilities Director or his/her designee ("Director") shall issue a Certificate of Sewer Lateral Compliance attesting that the sewer lateral complies with applicable sewer lateral standards. 5. Under [checkone] X UCC §3799.4.B or ❑ District Ordinance No. 29, Section 29-6 § , a deed or other document conveying title to the Property shall not be submitted to the Mendocino County Recorder for recordation until the Director issues a 6. Buyer has elected to comply with the applicable sewer later ordinance by entering this Agreement and providing the security described herein to assure the repair or replacement of the sewer lateral serving the Property. NOW, THEREFORE, and in consideration of the above recitals, and in order to ensure satisfactory performance by Buyer of his or her obligations under the applicable sewer lateral ordinance and this Agreement, the parties hereto, for themselves, their successors, and assigns, hereby agree as follows: Section 1. Definitions The definitions contained in [check one] X UCC §§ 3700.1-3700.46 or ❑ District Ordinance No. 29, Section 29-2,§§(1) —.(45), shall apply to this Agreement. Section 2. Construction of Improvements Unless the time is extended, by no later than November 9, 2007, Buyer shall furnish the Director with a sewer lateral test of the sewer lateral serving the Property, conducted in compliance with standards adopted by the Director demonstrating to the satisfaction of the Director that the sewer lateral complies with the applicable sewer lateral standards. For good cause shown, the Director may extend the time for complying with this Section 2 for a period of time not to exceed ninety (90) days. Such extension is only valid if contained in a writing signed by the Director which states the extended completion date. Not later than fifteen (15) days after his or her approval of the test results and payment in full of the City's costs to make the required replacement or repairs, if the City is required to exercise its rights under subsection 3(d) of this Agreement, the Director shall issue and arrange for the recordation of a Certificate of Sewer Lateral Compliance. The Buyer shall pay the County Recorder's fees for recording the certificate. Section 3. Security (a) Pursuant to [check one] X Ukiah City Code (UCC) §3799.5.C.2 or ❑ District Ordinance No. 29, Section 29-6,§C.2, Buyer shall furnish a surety bond, cash deposit or letter of credit (collectively, the "Security") in the amount of Two Thousand dollars ($2000.00) to the Director. The City shall have no obligation to pay or credit interest to a cash deposit. The Security shall be delivered to and approved by the City Finance Director or his or her designee at the time this Agreement is signed, except that a cash deposit may be composed of funds disbursed by the escrow holder pursuant to the following escrow instruction: Cash security paid to City of Ukiah, see letter attached 2 Escrow holder shall not submit to the County Recorder for recordation a deed conveying title to the Property until it has received a properly completed "Certificate of Compliance Bond (Ukiah City Code §3799.5.C.2 or UVSD Ordinance No. 29, Section 29-6 §_ Upon receipt of said certificate, the escrow holder shall disburse at close of escrow to the City of Ukiah dollars ($ ,_) to be held by the City in compliance with the Sewer Lateral Repair/Replacement Agreement between the City and the Buyer. Upon, but not before, the disbursement of said funds, escrow holder is authorized to record the Certificate of Compliance Bond. (b) If a cash bond funded from the escrow is to be used, the Buyer must furnish satisfactory proof to the Director at the time this Agreement is signed that the above escrow instruction has been signed by the Seller and the Buyer and filed with and approved by the escrow holder. (c) A corporate surety bond or letter of credit shall be issued by corporate sureties or banks or savings and loans chartered by the state or federal government and pursuant to forms, all as approved by the City Finance Director or his or her designee. (d) In the event that the Buyer fails to comply with Section 2 of this Agreement within the time required by said section, the City may use the Security to make such repairs or replacements as the Director determines are necessary and to inspect and test the sewer lateral until it passes the test. (1) The City shall not make demand on the corporate security or the letter of credit or apply any portion of the cash deposit as authorized by this Agreement, until it has given the Buyer not less than thirty (30) days notice that it intends to make the repairs or replacement as authorized herein and of the date on or after which such work may begin. (2) Buyer hereby grants to City and its contractors and subcontractors an irrevocable right of access to and use of the Property for the sole purpose of making the repairs or replacements as authorized by this Agreement. Buyer hereby waives or releases the City and its contractors or subcontractors from any liability for damage to persons or property, including for injury to or death of any person, arising out of the performance of the work authorized by this subparagraph. This waiver and release shall continue after the termination of this Agreement. (e) The City shall pay to the Buyer all or any portion of the cash deposit not required to remedy the Buyer's failure to comply with paragraph 2 of this Agreement. Said payment shall be made not later than sixty (60) days after the Director issues a Certificate of Sewer Lateral Compliance to the Buyer. Within that same time period the City shall execute any documents required to release its interest in any surety bond or letter of credit furnished as Security. (f) If the City's costs to obtain a Certificate of Sewer Lateral Compliance for the sewer lateral serving the Property exceed the amount of the Security, the Buyer shall pay the City that additional amount within thirty (30) days after the City gives the Buyer written notice of that amount, itemizing said costs. If the Buyer fails to pay that amount to the City within said 30 days, without waiving any other rights or remedies available in law or equity to collect the amount owing, the City may assess a surcharge on the monthly sewer fees for sewer service to the Property which may remain in effect until the amount owing is paid in full. The surcharge shall not be less than 1/60 of the difference between the amount of the Security and the unpaid portion of the costs to obtain the Certificate of Sewer Lateral Compliance. Those costs shall include all costs, fees and. expenses incurred by the City to repair or replace and inspect or test the sewer lateral serving the Property, including legal, accounting and administrative fees and. expenses. Those costs may include a reasonable annual interest rate on the amount owing, compounded not more frequently than monthly, not to exceed the City's average rate of return on its invested funds prevailing on the date the payment becomes delinquent. If the City pursues any other legal or equitable remedy to collect any amount owing under this subsection (f), those remedies shall not adversely affect the security interest in the Property of any lender financing the purchase of the Property by Buyer. Section 4. Term This Agreement shall remain in effect until the Director issues a Certificate of Sewer Lateral Compliance for the sewer lateral serving the Property. Section 5. Work Performance (a) Buyer shall test and repair or replace the sewer lateral serving the Property in compliance with all provisions of the applicable sewer lateral ordinance and any sewer lateral or other applicable standards in applicable codes or as adopted by the Director and all other applicable federal, state and local laws and regulations. (b) Neither Buyer, nor any of Buyer's agents or contractors in connection with Buyer's obligations under this Agreement are, or shall be considered to be, agents of the City or the District. Section 6. Indemnity (a) Buyer hereby agrees to save harmless and indemnify the City and the District. The indemnification provided herein shall include, without limitation, defense costs (including the reasonable fees of attorneys consultants, inspectors, experts and investigators), from and against any and all suits, actions, or claims, of any character 4 . 1, whatever, brought for, or on account of any injuries or damages sustained by any person or property resulting or arising, or alleged to have resulted or arisen, from Buyer or Buyer's contractors, subcontractors, agents, or employees activities, omissions or operations pursuant to this Agreement. Should City or District be named in any suit, or should any claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, Buyer will defend City or District, (at City's request and with counsel satisfactory to City) and will indemnify City and District for any judgment rendered against it or any sums paid out in settlement or otherwise. (b) City shall promptly notify the Buyer of any claim, action, or proceeding, and cooperate fully in the defense of any claim, action or proceeding. (c) It is expressly understood and agreed that the foregoing provisions will survive termination of this Agreement. Section 7. Permits and Requisite Fees (a) Before proceeding with any work hereunder, Buyer shall, at Buyer's expense, (1) obtain all permits (such as encroachment and building permits) and licenses required for the performance of the work, (2) give all necessary notices, and (3) pay all fees and taxes required by law. (b) Buyer agrees to procure, at its expense, any necessary permits for improvements outside the City's jurisdiction. Section 8. Law to Govern: Venue The law of the State of California shall govern this Agreement. In the event of litigation between the parties, the action must be filed in the Mendocino County Superior Court. Section 9. Compliance with Law Buyer shall comply with all applicable laws, ordinances, codes and regulations of the federal, state, and local government. Section 10. Waiver Waiver by City or Buyer of any breach of any of the provisions of this Agreement shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of the same or any other provision of this Agreement. Acceptance by City of any work by Buyer shall not be a waiver of any of the provisions of this Agreement. Section 11. Notices (a) All notices to City shall be sent to the following address: 5 Public Utilities Department Ukiah Civic Center 300 Seminary Avenue Ukiah, CA. 95482 FAX: 707-463-6204 (b) All notices to Buyer shall be sent to the following address: Allyn Thompson, Aaron Nelson & Tina Nelson 495 A E. Perkins Street Ukiah, Ca. 95482 FAX: (707)468-9654 (c) All notices herein required shall be in writing and shall be personally delivered or sent by First Class United States mail, postage prepaid, or by fax with acknowledgement of receipt. (d) If one party provides written notice to the other party of a change of address, all further notices to such party shall be addressed and transmitted to the new address. (e) Any notice so given shall be deemed effective on the date of actual delivery or 48 hours after deposit in the United States Mail. Section 12. Performance by Surety or City (a) In the event of a material breach and/or default by Buyer, Buyer's surety shall have the duty to take over and complete the necessary work and obtain the Certificate of Sewer Lateral Compliance. (b) If the surety, within a reasonable time after receiving notice of Buyer's default does not provide City written notice to take over the performance of this Agreement or if the surety does not commence performance thereof within the time specified in such notice to City, City may take over the performance of this Agreement and take all actions and incur all expenses necessary to obtain the Certificate of Sewer Lateral Compliance, by contract or by any method City may deem advisable, on behalf and at the expense of Buyer, and Buyer's surety shall be liable to City for any excess cost or damages incurred by City thereby. In such event, City, without liability for so doing, may take possession of and utilize to complete the work, such materials, appliances, and other property belonging to Buyer as may be on the work site(s) and necessary therefor. Section 13. Successors in Interest This Agreement shall be binding on the Buyer, its successor and assigns. Section 14. Effective Date This Agreement shall be effective on the Effective Date. Section 15. Amendment of Agreement This Agreement may only be amended by mutual consent of the original parties or their successors in interest, provided that any such amendment is executed in writing by the parties to be bound thereby. Copies of any such amendments shall be sent to surety(ies). Section 16. Execution By signing this Agreement, the person signing states that he or she is authorized to enter into contracts on behalf of Buyer. The undersigned, on behalf of Buyer, binds Buyer, its partners, successors, executors, administrators, and assigns with respect to the terms and conditions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. Executed in Duplicate CITY OF U By: Print name: 1'04K3A41Ae> Title: IA/A*rjPz jI&ITXS BUYER Name:��` Signature: t Name: 6 di P� &) k3ek K6tJ Signature: Name: W,-'666? Signature: Exhibit A Legal Description LOT .63, AS NUMBERED AND DESIGNATED UPON THE MAP ENTITLED "SUBDIVISION NO. 1, EMPIRE GARDENS," FILED DECEMBER 19, 1952 AT 9:39 A. M., CASE 1, DRAWER 9, PAGE 121, IN THE OFFICE OF THE COUNTY RECORDER, COUNTY OF MENDOCINO, STATE OF CALIFORNIA. f j A 41 1 City of Ukiah Public Works Dept 300 Seminary Ave. Ukiah, CA 95482. May 9, 2007 Re: 272 Arlington Ave, Ukiah CA Enclosed is a $2,000.00 deposit for repairs to be made to the sewer lateral line from the building to property line pursuant to the City of Ukiah Sewer Lateral Ordinance and stated in the Sewer Lateral Repair/Replace Agreement entered into with the City of Ukiah & buyers, Tina Nelson, Aaron Nelson, & Allyn Thompson executed May 9, 2007. J-01" 41JM- s-gL,-? Tina Nelson ,:z "� A 16 -7 aron Nelson Allyn T son AUL;1. UIJ I HIIJU I MN - AMUUNT H 8059 ------------- AMT. rip` 1 � _ 38.3" DESCRIPTION ❑ BUSINESS LICENSE 3 - ; ❑ BLDG. 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