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HomeMy WebLinkAboutStaff Report 5.G 4/7/2014DATE: April 7, 2014 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan St. John, RASCE — Director, Public Works and Utilities Curt Bates, P.E. — City Engineer SUBJECT: Introduction (First Reading) of an Ordinance Authorizing the City Manager to Execute an Agreement with the Sonoma Marin Area Rail Transit District (SMART) for the Conveyance of Real Property located at Haystack Landing (APN: 005-060-062), Construction of Undercrossing Improvements and Reservation and Grant of Easements for Planned Pedestrian and Bicycle Trail RECOMMENDATION It is recommended that the City Council introduce the attached ordinance authorizing the City Manager to execute an agreement with the Sonoma Marin Area Rail Transit District (SMART) for the conveyance of real property located at Haystack Landing (APN: 005-060-062), construction of undercrossing improvements and reservation and grant of easements for planned pedestrian and bicycle trail. BACKGROUND The SMART sales tax measure, Measure Q. was approved by voters in November of 2008. The SMART rail commuter line will service Sonoma and Marin Counties between Santa Rosa and San Rafael, with possible expanded service and station sites in the future. The SMART project has been under construction for several years, including segments within the City of Petaluma, and is expected to commence passenger rail service starting in 2016. A major component of the SMART project is the removal of the existing swing bridge and installation of a bascule bridge over the Petaluma River immediately east of the US 101 freeway bridge. According to SMART representatives, the existing railroad swing bridge is over 100 years old, has exceeded its useful life and does not operate quickly enough for the anticipated passenger trains. Therefore, a bascule bridge will be installed for greater reliability and improved service. As part of the project, the bridge and rail tracks immediately north of the Petaluma River will be realigned, and the tracks will be relocated partially onto the City property known as "Haystack Landing." (See attached location map.) The realignment will maximize the navigable channel width in the Petaluma River pursuant to discussions with the United States Coast Guard and conurercial shipping company, Jerico Products, hic. To accommodate the new tracks and modified alignment, SMART is requesting that the City convey to SMART approximately 1.65 Agenda Revi . City Attorney Finance Director City Manager acres of Haystack Landing, identified as Assessor Parcel Number 005-060-062. In the process of negotiating the conveyance of the property, City staff identified the need to acquire future easements and construct an undercrossing structure to accommodate the future River Trail in the area of the SMART project. This is necessary to comply with the transportation element of the City's General Plan 2025 and the City's Pedestrian and Bicycle Plan, which call for a bicycle and pedestrian connection between the industrial area on Hopper Street and the Petaluma Marina. The proposed agreement addressed herein would convey the necessary property to SMART for their railroad bridge improvement while securing the needed easements and railroad undercrossing for the future River Trail in the area. DISCUSSION As part of the proposed property transfer and SMART rail and bridge reconstruction, City staff requested that SMART install an undercrossing structure to accommodate a future public access pathway, aka "River Trail" connection as shown in Exhibit A, and provide the needed easements for the future trail. The proposed undercrossing structure would connect the leg of the future pathway to be routed under the US 101 Bridge on Caltrans property and serve the proposed Riverfront property development with the leg crossing over to the Marina and Alman Marsh, Shollenberger Park, and Ellis Creek conservation areas. When completed, the River Trail would connect Lucchesi Park, through downtown, to Ellis Creek. A future pedestrian and bicycle bridge would be needed to cross a narrow drainage channel to connect the Haystack property to an existing trail on the Marina peninsula. It is critical to install the undercrossing structure as part of SMART's construction project while the new railroad embankment is being constructed and tracks are being re-laid, as opposed to waiting to install the structure after SMART's work is done and passenger rail service has commenced. Staff has specified in the subject agreement that the ped/bike undercrossing be 8 feet high and 10 feet wide, be constructed to exceed current ADA standards, have a sump to manage internal drainage, and be suitable for lighting in the future. The preliminary siting of the trail and undercrossing is the result of an initial alignment study and has been reviewed and recommended by PBAC. Two alternatives to connect the trail over to the Marina were considered, one including a bridge over a small drainage channel connecting to the existing path on the "Marina Peninsula" and the other running up the west side of the channel to Lakeville Road and then through the parking lot to the Marina. The bridge alternative is recommended because it provides a more aesthetic and economical solution. The attached agreement will reserve a right to a 20 -foot wide public access easement and a 50 - foot wide temporary construction easement for the future pathway. These easements are necessary for the City to build and maintain the undercrossing structure and future connecting pathway segments. The final alignment of the River Trail has not yet been exactly established through a final design process. SMART prepared an appraisal dated July 16, 2013 for the Haystack Landing property which sets the appraised value at $27,470 based on existing land use and development potential. The City's right-of-way appraiser provided a peer review of the analysis and concurred with SMART's appraisal. The original estimated cost to the City for construction of the undercrossing structure and grant of easements was approximately $39,700, which would have left a balance of $12,230 owed by the City to SMART. However, as a result of subsequent revisions to design of SMART's plamied railroad bridge, the estimated undercrossing construction costs have been reduced. Accordingly, City and SMART staff agree it is appropriate for the City to convey the Haystack Landing property required by SMART, reserving easements needed for the River Trail, and for SMART to construct the undercrossing improvements and convey easements required for the River Trail, with no additional payment required from the City. FINANCIAL IMPACTS SMART provided the City with an original cost estimate in the amount of $39,700 to design and construct the pathway undercrossing structure and related improvements, and provide easements for the River Trail. However, as a result of subsequent revisions to design of SMART's planned railroad bridge, the estimated undercrossing constriction costs have been reduced. The appraisal report for the City's Haystack Landing property valued the property at $37,470. City and SMART staff agree it is appropriate for the City and SMART to exchange the Haystack Landing property, with reservation of River Trail easements, for construction of the undercrossing improvements, and grant of River Trial easements, with no further consideration exchanged between the agencies. This results in a savings to the City of $12,230 that no longer must be paid to SMART and that would have been charged to Traffic Impact Mitigation Fees. ATTACHMENTS 1. Ordinance. 2. Exhibit A — Draft Conveyance Agreement EFFECTIVE DATE OF ORDINANCE Introduced by Attaclunent 1 ORDINANCE NO. N.C.S. Seconded by AN ORDINANCE APPROVING AN AGREEMENT WITH THE SONOMA MARIN AREA RAIL TRANSIT DISTRICT (SMART) FOR THE CONVEYANCE OF REAL PROPERTY LOCATED AT HAYSTACK LANDING (APN: 005-060-062)1 CONSTRUCTION OF UNDERCROSSING IMPROVEMENTS AND RESERVATION AND GRANT OF EASEMENTS FOR A PLANNED PEDESTRIAN AND BICYCLE TRAIL (SMART) WHEREAS, the Sonoma Marin Area Rail Transit District (SMART) requires the acquisition of a portion of City -owned property referred to as the Haystack Landing property as identified in the attached agreement to install railroad track bridge and related improvements in order for SMART to operate passenger rail service in Sonoma and Marin Counties; and, WHEREAS, the City of Petaluma recognizes the importance of regional passenger rail service to Petaluma and Sonoma and Marin Counties, and desires to cooperate with SMART to facilitate said rail service; and, WHEREAS, it is desirable as part of construction of SMART's railroad track bridge and related improvements to have constructed a concrete undercrossing structure and related improvements ("Undercrossing Improvements") in the new railroad embankment to accommodate the future City River Trail alignment in the area of SMART's project within the Haystack Landing property in accordance with the terms of the attached agreement for a firture pedestrian and bicycle trail identified in the Petaluma General Plan as the River Trail; and, WHEREAS, it is desirable in consideration of the conveyance of part of the City -owned Haystack Landing property to reserve from such conveyance a 20 -foot wide public access easement and a temporary construction access easement of sufficient size necessary for future River Trail pathway construction, at no additional charge to the City, to accommodate construction and operation of the undercrossing and associated future pathway segments, including a future pedestrian and bicycle bridge with approach(s), and/or abutment(s) on the Haystack Landing property, in accordance with the Petaluma General Plan; and WHEREAS, it is desirable in consideration of the conveyance of part of the City -owned Haystack Landing property for the City to obtain from SMART a 20 -foot wide public access easement and a temporary construction access easement of sufficient size necessary for future River Trail pathway construction, across SMART -owned property adjacent to the Haystack Landing property, at no additional charge to the City, to accommodate construction and operation of the undercrossing and associated future pathway segments, including a future pedestrian and bicycle bridge, in accordance with the Petaluma General Plan; and WHEREAS, the City of Petaluma has not identified existing or foreseeable uses for the Haystack Landing property other than the proposed River Trail public bicycle and pedestrian facilities, and conveyance of part of the Haystack Landing property for installation of railroad track bridge and related improvements for SMART operation of passenger rail service in Sonoma and Marin Counties and construction of undercrossing improvements and establishment of easements for the planned River Trail conflict with no City plans for the Haystack Landing property and are consistent with the Petaluma General Plan; and. WHEREAS, Section 46 of the Petaluma City Charter requires that actions providing for expenditures of $3,000 or more for acquisition or sale of real property be taken by ordinance, except where action is taken pursuant to general state law; and WHEREAS, on July 19, 2006, the SMART Board certified a Final Environmental Impact Report ("FEIR") pursuant to the California Environmental Quality Act ("CEQA") for SMART's 5 passenger rail project, including replacement of numerous bridges, including the Haystack Landing Bridge over the Petaluma River; and WHEREAS, on February 19, 2014, by Resolution No. 2014-01, the SMART Board adopted an Addendum to the FEIR addressing potential environmental impacts of proposed modifications to the Haystack Landing Bridge Replacement project, which modifications include the Undercrossing Improvements for the fature River Trail pedestrian and bicycle pathway, and the SMART Board found that the bridge replacement project modifications will not result in any new significant environmental effects or a substantial increase in the severity of the effects examined in the FEIR and the 2008 Supplemental EIR; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: 1. The City Council hereby introduces this ordinance authorizing the City Manager to execute an agreement with the Sonoma Marin Area Rail Transit District (SMART) for the conveyance of real property located at Haystack Landing (APN: 005-060-062), construction of undercrossing improvements and reservation and grant of easements for a planned pedestrian and bicycle trail. 2. The City Manager is hereby authorized and directed to sign an agreement with the Sonoma Marin Area Rail Transit District (SMART) for the conveyance of real property located at Haystack Landing (A -PN: 005-060-062), construction of undercrossing improvements and reservation and grant of easements for planned pedestrian and bicycle substantially in the form attached to and made a part of this ordinance as Attaclunent A. 3. The signed agreement shall be recorded with the Sonoma County Recorder's Office within 30 days after signature by all parties. C7 Recording requested by and when recorded return to: Sonoma -Marin Area Rail Transit District 5401 Old Redwood Highway, 2"' Floor Petaluma, CA 94954 Exempt from recording fees Gov. Code §6103 USE AGREEMENT OF FEE ACQUISITION, GRANT OF EASEMENT, AND CONSTRUCTION OF UNDERCROSSING IMPROVEMENTS SUMMARY Grantors/Grantees: City of Petaluma, a California charter city Sonoma -Marin Area Rail Transit District (SMART) Grantors'/Grantees' City of Petaluma Addresses: 11 English Street Petaluma, CA 94952 SMART 5401 Old Redwood Highway — 2"d Floor Petaluma, CA 94954 Property Address: Lakeville Highway, Petaluma, CA 94952 Assessor's Parcel 005-060-062 (portion), 005 -060 - Nos.: 081 (portion) Acquisition: SMART proposes to acquire a portion of City -owned property in fee from City, subject to easements reserved by the City for a bicycle and pedestrian Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 undercrossing and trail. SMART to construct undercrossing to City specifications on SMART property at Haystack Bridge. City proposes to acquire easements from SMART on SMART -owned property for construction and operation of the planned bicycle and pedestrian trail to traverse the City and SMART -owned property. Consideration: Quitclaim of Future Railway Property with appraised value of $27,500 subject to reservation of pathway easement in exchange for construction of undercrossing improvements and grant of pathway easements. Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-063 005-060-081 Exhibits: Exhibit A - Legal Description of Future Railway Property to be acquired by SMART Exhibit B - Quitclaim Deed for Future Railway Property to be acquired by SMART with reservation of City easement Exhibit C — Grant of Easement to City for bicycle and pedestrian trail across SMART property Exhibit D - Diagram and specifications for undererossing improvements to be constructed by SMART on SMART property and planned location of bicycle and pedestrian trail AGREEMENT OF FEE ACQUISITION (PARTIAL FEE), GRANT OF EASEMENT, AND CONSTRUCTION OF UNDERCROSSING IMPROVEMENTS THIS AGREEMENT (this "Agreement") is entered into as of the day of 3014, by and between CITY OF PETALUMA, a California charter city ("City"), and the SONOMA-MARIN AREA RAIL TRANSIT DISTRICT, a public agency ("SMART"). City and SMART are sometimes referred to herein individually as a "party," and collectively as the "parties." THE PARTIES ENTER INTO THIS AGREEMENT on the basis of the following facts, understanding, and intentions: A. City is the owner of certain real property located in the City of Petaluma, County of Sonoma, State of California. The real property is bordered by the Petaluma River, the Petaluma Marina, Lakeville Highway, and real property owned by SMART, described below, real property owned by the Sonoma County Water Agency, and other property, and is identified by Sonoma County Assessor's Parcel Number 005- 060-063 and is more particularly described in Article 1 below (the "City Property'). 0 Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 B. SMART is the owner of certain real property located in the County of Sonoma, State of California. The real property is bordered by the Petaluma River, the City Property, Lakeville Highway, real property owned by the Sonoma County Water Agency, and other property, and is identified by Sonoma County Assessor's Parcel Number 005-060-081, and is more particularly described in Article 1—below (the "SMART Property"). C. SMART desires to acquire fee title to a portion of the City Property, together with all buildings, structures, improvements, landscaping, irrigation systems, machinery, fixtures and equipment affixed or attached to the City Property to be acquired, and all easements and rights appurtenant to the City Property (as more particularly described in Article 1 below), and SMART desires to acquire the City Property from City, on the terms and conditions set forth herein, to facilitate relocation of SMART's railway and a bridge across the Petaluma River supporting SMART's railway. City agrees to convey the portion of the City Property described in Exhibit A to SMART, subject to reservation of easements described in Exhibit A as needed for planned construction of a bicycle and pedestrian pathway described below. D. SMART agrees to construct undercrossing improvements beneath SMART's railway improvements to be located on the property to be acquired from the City. SMART will construct the undercrossing improvements ("Undercrossing Improvements") in accordance with this Agreement, including the specifications in Exhibit D within the easement to be reserved by the City from the City Property to be conveyed to SMART. E. SMART agrees to convey to the City easements on the SMART Property as described in Exhibit C as needed for planned construction and operation of a bicycle and pedestrian pathway ("Pathway") traversing the City Property and the SMART property via the Undercrossing Improvements. NOW THEREFORE in consideration of the mutual covenants and promises of the parties, the parties hereto agree as follows: ARTICLE I — FUTURE RAILWAY PROPERTY, TITLE 1.1 Property Included in Conveyance to SMART. City hereby agrees to convey to SMART, and SMART hereby agrees to acquire from City, subject to the terms and conditions set forth herein, the following: a. in fee simple interest, a portion of that certain real property identified by Sonoma County Assessor's Parcel Number 005-060-062, and more particularly 10 Project: SMART Transit System Property Owners: City ofPetaluma SMART APNs: 005-060-062 005-060-081 and legally described in Exhibit A attached hereto (the "Future Railway Property"); and b. all rights, privileges and easements appurtenant to the Future Railway Property, including, without limitation, all minerals, oil, gas and other hydrocarbon substances on and under the Future Railway Property, as well as all development rights, air rights, water, water rights, and water stock relating to the Future Railway Property, and any other easements, rights-of-way, or appurtenances used in connection with the beneficial use and enjoyment of the Future Railway Property (all of which are collectively referred to as the "Appurtenances"); and c. reserving therefrom to the City easements on the Future Railway Property for construction and operation of the Under Crossing Improvements and the Pathway, which easements are more particularly and legally described in Exhibit C, which easements to be reserved from the Future Railway Property are collectively referred to as the Undercrossing Easements. 1.2 Title to Property. On the Closing Date, City shall convey to SMART and SMART shall acquire by quitclaim deed from City, all of City's interest in the Future Railway Property in accordance with the terns and conditions of this Agreement and the exhibits attached hereto, subject to the reserved Undercrossing Easements and the exceptions described in Section 6.1 .2 of Article 6 (the "Permitted Exceptions"). Evidence of delivery of fee title shall be the issuance by the Title Company (as defined hereinafter) of the CLTA Owner's Policy of Title Insurance described in Section .2.3, in the full amount of the Appraised Value of the Future Railway Property, insuring fee simple title to the Future Railway Property and the Appurtenances, in SMART, subject to the Undercrossing Easements and the Pennitted Exceptions. ARTICLE 2 - PATHWAY EASEMENTS 2.1 Property Included in Grant. On the Closing Date, SMART shall convey to City and City shall acquire by grant from SMART the Pathway Easements as described in Exhibit C in accordance with the terms of this Agreement and the exhibits attached hereto. ARTICLE 3 — UNDERCROSSING IMPROVEMENTS 3.1 SMART will construct the Undercrossing Improvements as described in Exhibit D at the same time SMART constructs its Future Railway project at no cost to the City. Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 3 2 SMART will contract for construction of the Undercrossing Improvements in accordance with SMART's requirements for such work and applicable law. 3.3 SMART's construction agreement covering the Undercrossing Improvements must provide that SMART's contractor(s) shall indemnify, defend with counsel acceptable to City, and hold harmless to the full extent permitted by law, City and its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, claims, expenses and costs (including, without limitation, attorney fees and costs and fees of litigation) (collectively, "Liability") of every nature arising out of or in connection with the performance of the Undercrossing Improvement work or the failure by SMART's contractor or contractors to comply with any of the obligations contained in the agreement awarded by SMART, except such Liability caused by the active negligence, sole negligence or willful misconduct of the City. ARTICLE 4 - CONSIDERATION 4.1 Future Railway Property Acquisition. The consideration for SMART's acquisition of the Future Railway Property with an appraised value of $27,500.00 ("Appraised Value") shall be SMART's construction of the Undercrossing Improvements and conveyance to the City of the Pathway Easements. The City's reservation of the Undercrossing Easements from the Future Railway Property is part of the bargained -for consideration between the City and SMART and no additional compensation shall be due SMART for the Undercrossing Easements. 4.2 SMART is granting to the City the Pathway Easements as part consideration for the City's arranging to transfer the Future Railway Property to SMART. 4.3 Construction Cost. SMART shall install the Undercrossing Improvements as described in Exhibit D at no cost to the City in consideration of the City's arrany_ing to transfer the Future Railway Property to SMART.. ARTICLE 5 - CONDITIONS TO CONVEYANCE 5.1 Conditions Precedent to Citv's Obligations to Convey. The obligation of the City to convey the Future Railway Property to SMART is expressly conditioned upon the satisfaction prior to Close of Escrow of each of the conditions set forth in this Section 5. 1, each of which is for the benefit of the City and any or all of which may be waived by City, in writing, at City's option. If any condition set forth in this Section 5.1 is not fully satisfied or waived in writing by City, this Agreement shall terminate, but without l� Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 releasing SMART from liability if SMART defaults in the performance of any such covenant or agreement to be performed by SMART before such termination. 5.1.1 On the Closing Date (defined below), SMART shall not be in default in the performance of any covenant or agreement to be performed by SMART under this Agreement, including its obligation to deliver into escrow the documents referenced in Section 6.1.2 below. 5.1.2 On the Closing Date, all representations made by SMART in Article 7 hereof shall be true and correct as if made on and as of the Closing Date, without exceptions. 5.2 Conditions Precedent to SMART's Obligations to Acquire. The obligation of SMART to acquire the Future Railway Property from City is expressly conditioned upon the satisfaction prior to the Close of Escrow of each of the conditions set forth in this Section 53, each of which is for the benefit of SMART and any or all of which may be waived by SMART, in writing, at SMART's option. If any condition set forth in this Section 5.2 is not fully satisfied or waived in writing by SMART, this Agreement shall terminate, but without releasing City from liability if City defaults in the performance of any such covenant or agreement to be performed by City before such termination. 5.2.1 On the Closing Date, City shall not be in default in the performance of any covenant or agreement to be performed by City under this Agreement. 5.2.2 On the Closing Date, all representations made by City in Article 5 hereof shall be true and correct as if made on and as of the Closing Date, without exceptions. 5.23 On the Closing Date, the Title Company shall be unconditionally and irrevocably committed to issue to SMART a California Land Title Association Owner's Policy Form (Amended 6/17/06) of title insurance, with creditors rights exceptions or exclusions removed and with liability in the amount of the Appraised Value, containing all endorsements requested by SMART, insuring SMART that fee simple title to the Future Railway Property is vested in SMART subject to the Undercrossing Easements and the Permitted Exceptions (collectively, the "Title Policy'). 5.3 Construction of Undercrossing Improvements: As a condition of conveyance of the Future Railway Property, SMART agrees to construct the Undercrossing Improvements as described in Exhibit D during construction of SMART's project to replace the bridge at Haystack Bridge Landing on the Future Railway Property. The cost of such Undercrossing Improvements shall be borne by SMART. I9 Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 5.4 Prior to completion and public use of the Pathway Improvements SMART and City agree to work cooperatively in developing an agreement to define maintenance responsibilities concerning the Undercrossing and Pathway Improvements on SMART's property ("Maintenance Agreement"). The Maintenance Agreement will provide for coordination of SMART and City rights and responsibilities regarding maintenance of the Undercrossing and Pathway Improvements. City shall have no liability concerning maintenance or use of the Undercrossing Improvements until completion of the Undercrossing Improvements, City's acceptance of the Undercrossing Improvements as satisfying the requirements of Exhibit D and execution by SMART and City of the Maintenance Agreement providing for maintenance of the Undercrossing and Pathway Improvements. ARTICLE 6 - CLOSING AND ESCROW 6.1 Deposits Into Escrow. Within ten (10) days after execution of this Agreement by SMART and City, SMART shall establish an escrow with Fidelity National Title Company (the "Title Company"), at its office located at 11050 Olson Drive, Suite 200, Rancho Cordova, California 95670. A copy of this Agreement, duly executed by both parties, shall be deposited therein. Prior to or on the Closing Date, the following shall be deposited into escrow with the Title Company: 6.1.1 SMART. SMART shall deposit funds in an amount necessary for closing costs and SMART's share of prorations, as set forth below. In addition, SMART shall deposit a Grant of Easement substantially in the form of Exhibit C attached hereto ("Grant of Pathways Easements") duly executed and acknowledged by SMART. 6.1.2 Com. City shall deposit into escrow prior to the Closing Date a quitclaim deed substantially in accordance with Exhibit B ("Quitclaim Deed") relinquishing City's interest in the Future Railway Property, subject to reservation of the Undercrossing Easements and the following exceptions which SMART hereby approves (the "Permitted Exceptions"): • Exception 1 — "Property taxes, which are a lien not yet due and payable..:" • Exception 2 — "The lien of supplemental taxes, if any, assessed pursuant to the provisions..." • Exception 3 — "Any adverse claim based on the assertion that:.." • Exception 4 — "Rights and easements for navigation and fishery which may exist..." • Exception 5 — "Any rights in favor of the public which may exist on It Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 said land..." • Exception 6 — "Easement(s) for the purpose(s) shown below and rights incidental thereto..." • Exception 7 — "The lack of legal right of access to and from a public street of highway." • Exception 8 — "Water rights, claims or title to water, whether or not disclosed by the public records." City shall deposit the Quitclaim Deed duly executed and acknowledged by City. 6.13 Escrow Instructions. City hereby authorizes SMART to prepare and file escrow instructions with the escrow agent on behalf of City in accordance with this Agreement. 6.2 Close of Escrow. 6.2.1 Escrow shall close within sixty (60) days of execution of this Agreement (the "Outside Closing Date") unless extended by SMART at SMART's sole option. SMART shall give City and the Title Company written notice specifying the actual Closing Date selected by SMART at least five (5) business days prior to such Closing Date. 6.2.2 Closing of Escrow. When all conditions precedent specified in Article 5 hereof have been either satisfied or waived by City or SMART, and the Title Company has received all necessary cash and documents, but in any event prior to the Outside Closing Date, the Title Company shall immediately cause the following to occur (the "Close of Escrow"): 6.2.2.1 Recording. This Agreement, the Quitclaim Deed, and the Grant of Easement shall be recorded in the Official Records of the County where the Future Railway Property is located. The date the documents are recorded is the "Closing Date." 6.2.2.2 Tax Filing. If applicable, the Title Company shall file the information return for the sale of the Future Railway Property required by Section 6045 of the Internal Revenue Code of 1986, as amended, and the Income Tax Regulations thereunder, which requires that a tax return be filed with the Internal Revenue Service in connection with the sale of real property in which a broker is involved. ,6 Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 6.2.23 Title Policy. The Title Company shall issue to SMART the Title Policy described in Section 533. 6.3 Closing Costs. 63.1 Closing Costs. SMART and City each shall pay its own attorney's and broker's fees in connection with negotiating this Agreement and closing the transactions contemplated hereby. SMART shall pay recording costs, if any, escrow fees and the title insurance premium for the Title Policy (if a policy of title insurance is desired by SMART). ARTICLE 7 - REPRESENTATIONS AND WARRANTIES 7.1 Authority. 7.1.1 City's Authority. City is a charter city created under the laws of the State of California. City has full power and authority to enter into this Agreement and to perform this Agreement. The execution, delivery and performance of this Agreement by City have been duly and validly authorized by all necessary action on the part of City and all required consents and approvals have been duly obtained. This Agreement is a legal, valid, and binding obligation of City, enforceable against City in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting the rights of creditors generally. 7.1.2 SMART's Authority. SMART is a public agency created under the laws of the State of California. SMART has full power and authority to enter into this Agreement and to perform this Agreement. The execution, delivery and performance of this Agreement by SMART has been duly and validly authorized by all necessary action on the part of SMART and all required consents and approvals have been duly obtained. This Agreement is a legal, valid and binding obligation of SMART, enforceable against SMART in accordance with its terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws affecting the rights of creditors generally. 7.13 Limited Representation Regarding Condition of Future Railway Propertv and Citv Disclaimer of Liability. City represents to SMART that as of the Close of Escrow, City is not aware that the Future Railway Property is in violation of any federal, state, or local law, ordinance, or regulations relating to the environmental conditions on, under, or about the Future Railway Property including, but not limited to, soil and ground water conditions. The City further represents that the City is aware of no proceeding or inquiry by any governmental authority (including without limitation, the California State 1lo Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 Department of Health Services) with respect to the presence of such Hazardous Waste on the Future Railway Property or the migration thereof from or to other property. For the purpose of this Agreement, Hazardous Material shall include but not be limited to substances defined as "hazardous substances," "hazardous material," or "toxic substances" in the Comprehensive Enviromnental Response, Compensation and Liability Act of 1980, as amended, 42 USC Section 9601 et seq.; the Hazardous Wastes Transportation Act 49 USC Section 1801, et seq.; the Resources Conservation and Recovery Act, 42 USC Section 6901, et seq.; and those substances defined as "hazardous wastes" in Section 25117 of the California Health and Safety Code or as `hazardous substances" in Section 25316 of the California Health and Safety Code; and in the regulations adopted and publications promulgated pursuant to said laws. Except for these limited representations, the City disclaims any and all representations, warranties or liability of any kind concerning the Future Railway Property. The Future Railway Property, regarding which the City is relinquishing its interest for the benefit of SMART pursuant to this Agreement, is conveyed to SMART pursuant to this Agreement "as -is" and "with all faults." SMART understands and agrees that it is the responsibility of SMART to make whatever investigation of the Future Railway Property that SMART's Railway Project, applicable law and sound business practice may require, and City agrees to cooperate with SMART regarding any such investigation concerning the condition of the future Railway Property. 7.2 Brokers. City has not dealt with any investment adviser, real estate broker or finder, or incurred any liability for any commission or fee to any investment adviser, real estate broker or finder, in connection with the sale of the Future Railway Property to SMART under this Agreement. SMART has not dealt with any investment adviser, real estate broker or finder, or incurred any liability for any commission or fee to any investment adviser, real estate broker or finder, in connection with the purchase of the Future Railway Property by SMART or this Agreement. ARTICLE 8 - COVENANTS 8.1 Operation of Future Railway Property. Between the date of this Agreement and the Closing Date, City shall not execute any lease affecting the Future Railway Property, without the prior approval of SMART, which approval may be withheld in the sole and absolute discretion of SMART. Between the date of this Agreement and the Closing Date, City shall make no alterations to the Future Railway Property without the prior approval of SMART, which approval may be withheld in the sole and absolute discretion of SMART. 8.2 Survival of Representations and Disclaimers of Liability. The limited representations and disclaimers of liability of City in Article 7 hereof shall survive the 11 Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 Close of Escrow. City shall indemnify and defend SMART against and hold SMART harmless from all claims, demands, liabilities, losses, damages, costs and expenses, including reasonable attorneys' fees and disbursements, that may be suffered or incurred by SMART if City was aware any representation made by City in Article 7 hereof was untrue or incorrect in any respect when made. 8.3 Transfers Prohibited. Between the date of this Agreement and the Closing Date, City shall not in any manner sell, convey, assign, transfer, encumber or otherwise dispose of the Future Railway Property, or any part thereof or interest therein. ARTICLE 9 — REMEDIES 9.1 If the Close of Escrow does not occur because of a party's default under or breach of this Agreement, then the other party shall have the right to pursue any and all remedies available to the non -defaulting party at law or in equity, including the right to seek damages or to require specific performance of this Agreement. ARTICLE 10 - GENERAL PROVISIONS 10.1 Binding on Successors. The terms, covenants, and conditions herein contained shall be binding upon and insure to the benefit of the successors and assigns of the parties hereto. 10.2 Entire Agreement. This Agreement contains all of the covenants, conditions, and agreements between the parties and shall supersede all prior correspondence, agreements, and understandings both verbal and written. No addition or modification of any term or provision shall be effective tmless set forth in writing and signed by authorized representatives of City and SMART. 103 Attorney's Fees. In the event either party to this Agreement institutes legal action to interpret or enforce the terms hereof, or to obtain money damages, the prevailing party shall be entitled to recover from the other, in addition to costs and judgment as awarded by the court, its attorney's fees and disbursements incurred by such prevailing party in such action or proceeding and in any appeal in connection therewith. If such prevailing party recovers a judgment in any such action, proceeding or appeal, all such costs, expenses and attorneys' fees and disbursements incurred shall be included in and as a part of such judgment. The prevailing party shall include without limitation a party who dismisses an action or proceeding for recovery hereunder in exchange for consideration substantially equal to the relief sought in the action or proceeding. Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 10.4 Notices. All notices or other communications required or permitted hereunder shall be in writing and either delivered by hand (including by courier or reputable overnight delivery service) or deposited in the United States mail first-class, postage prepaid and addressed as follows: To City: City of Petaluma, a California charter city 11 English Street Petaluma, CA 94952 Attention: Public Works Director To SMART: SONOMA-MARIN AREA RAIL TRANSIT DISTRICT 5401 Old Redwood Highway — 2°d Floor Petaluma, CA 94954 Attention: Real Estate Manager Notices which are delivered by hand shall be deemed received upon delivery; notices which are deposited in the United States Mail in accordance with the terms of this Section shall be deemed received three (3) days after the date of mailing. The foregoing addresses may be changed by notice to the other party as herein provided. 10.5 Governing Law: Venue. This Agreement shall be governed by, and construed in accordance with the laws of the State of California. In any suit, action, or proceeding arising out of or related to this Agreement, or the documentation related hereto, the parties hereby submit to the jurisdiction and venue of the Superior Court in and for the County of Sonoma. 10.6 Captions. All captions and headings in this Agreement are for the purposes of reference and convenience and shall not limit or expand the provisions of this Agreement. 10.7 Time. Time is of the essence with respect to every provision herein contained in this Agreement. 10.8 Counterparts. This agreement may be executed in counterparts, each of which shall be an original, but all counterparts shall constitute one agreement. 10.9 Exhibits. All Exhibits and attaclmlents hereto are hereby incorporated herein by reference thereto. 10.10 Construction. City and SMART acknowledge that each party has reviewed and revised this Agreement and that the rule of construction to the effect that any �q Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any document executed and delivered by either party in connection with the transactions contemplated by this Agreement. The captions in this Agreement are for convenience of reference only and shall not be used to interpret this Agreement. 10.11 Terms Generally. The defined terms in this Agreement shall apply equally to both the singular and the plural forms of the terms defined. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The words "approval," "consent' and "notice" shall be deemed to be preceded by the word "written." 10.12 Further Assurances. From and after the date of this Agreement, City and SMART agree to do such things, perform such acts, and make, execute, acknowledge and deliver such documents as may be reasonably necessary or proper and usual to complete the transactions contemplated by this Agreement and to carry out the purpose of this Agreement in accordance with this Agreement. 10.13 Partial Invalidity. If any provision of this Agreement is determined by a proper court to be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement and this Agreement shall remain in full force and effect without such invalid, illegal or unenforceable provision. 10.14 Waivers. No waiver of any provision of this Agreement or any breach of this Agreement shall be effective unless such waiver is in writing and signed by the waiving party and any such waiver shall not be deemed a waiver of any other provision of this Agreement or any other or subsequent breach of this Agreement. Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the date(s) set forth below, effective as of the day and year first above written. CITY OF PETALUMA, a California charter city By: John C. Brown City Manager KW4181uiU MUN D Eric Danly City Attorney Date: Date: SONOMA-MARIN AREA RAIL TRANSIT DISTRICT, a public agency BY: Farhad Mansourian General Manager RECOMMENDED BY: Date: James Flageollet Special Counsel EXHIBIT A LEGAL DESCRIPTION OF FUTURE RAILWAY PROPERTY TO BE ACQUIRED BY SMART '� Exhibit "A" Legal Description Lying within the City of Petaluma, County of Sonoma, State of California and being a portion of Parcel One of the lands of City of Petaluma as described by Grant Deed recorded under Document Number 1990-026493, Official Records of Sonoma County, said portion being more particularly described as follows Beginning at the southwest corner of said lands of City of Petaluma; thence along the westerly line of said lands North 24°45'40" West 1008.91 feet; thence contimting alone said westerly line, along a curve to the right with a radius of 353.20 Feet, through a central angle of 24°11'33", Far an are length of 148.71 feet to a point of cusp; thence South 29°08'38" East 398.94 feet; thence South 24°44'54" East 604.80 feet; thence South 39°37'58" East 256.49 feet to the southerly line of said lands; thence along said southerly line the following courses and distances: thence. South 86°20'27" West 77.33 feet; thence North 07°03'20" East 30.00 feet; thence North 82°52'48" West 83.30 feet to the POINT OP BEGINNING. END Of DESCRIPTION Basis of Bearings: Record of Survey for the Sonoma—Marin Area Rail Transit District filed for record in Book 741 of Maps, Pages I through 24, Sonoma County Records. Containing 71,675 Square Peet or 1.65 Acres, more or less. Being a portion of APN 005-060-062. R Passarino, Inc. _ „afLLgA/p 793" No.''93s Date E;.p.i?'31-%7'. 1360 North Dutton Avenue, Suite 150, Santa Rosa, CA 95401 Tel: (707) 542-6268 No.: (707) 542=_'106 wtvw. cin qu in ipassari no. con CPI No.: 6167-09 Page 1 of I \\ l LEGEND 'D.N. DOCUMENT NUMBER \ P.O.B. POINT OF BEGINNING O.R. OFFICIAL RECORDS `t Vil o� =352.20' 1 a L=14E.71''' A=24'11'33 11 N t LANDS G= STATE OF CA. 005-060-059 DN 1988-02214'. LANDS OF A \ \ S.M.A.R.T.D. \ \ 1 019-220-039 DISI 2004-028629 fir' ,>;: LAI,.IDS OF CITY OF PETALUMA \ _10 360-062 \ ` \\\ FN 1 a_1C-0"64+x=. tst,rAOda s 1 � S. LINE TABLE LINE BEARING LEPGT`, P. O. F. 1'E'T, ZlJ&A fi'IWI 3 c E P fi \ 0 � OWNER NAME & ADDRESS SONOMA-MARIN AREA RAIL TRANSIT DISTRICT CITY OF PETALUMA AREAS FEE SIMPLE ACQUISTION 11 ENGLISH STREET CITY OF PETALUMA PETALUMA, CA 94952 71.675 S.F. TO A.P. No, 005-060-062 ACQUISITION AREA: 1.65 ACRES S. M. A. R. T. D. O.R. No. D.N. 1990-026493 Scale: 1"=150 Date: 8/6/'13 l.1 SBa'30 2' 7d 77.33 M110TG3'^G"= L3 N82'52'48"V,- &13 V P. O. F. 1'E'T, ZlJ&A fi'IWI 3 c E P fi \ 0 � OWNER NAME & ADDRESS SONOMA-MARIN AREA RAIL TRANSIT DISTRICT CITY OF PETALUMA AREAS FEE SIMPLE ACQUISTION 11 ENGLISH STREET CITY OF PETALUMA PETALUMA, CA 94952 71.675 S.F. TO A.P. No, 005-060-062 ACQUISITION AREA: 1.65 ACRES S. M. A. R. T. D. O.R. No. D.N. 1990-026493 Scale: 1"=150 Date: 8/6/'13 Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 EXHIBIT B QUITCLAIM DEED FOR FUTURE RAILWAY PROPERTY TO BE ACQUIRED BY SMART WITH RESERVATION OF CITY EASEMENT 0 Recording requested by and when recorded return to: Sonoma -Marin Area Rail Transit District 5401 Old Redwood Highway, 2'd Floor Petaluma, CA 94954 Exempt from recording fees Gov. Code §6103 SPACE ABOVE THIS QUIT CLAIM DEED This Quitclaim Deed (Quitclaim Deed), dated and effective as of , 2014, is by and between the City of Petaluma, a California Charter City ("CITY") and Sonoma -Marin Area Rail Transit District ("SMART"). RECITALS WHEREAS, City is the owner of certain real property located in the City of Petaluma, County of Sonoma, State of California bordered by the Petaluma River, the Petaluma Marina, Lakeville Highway, and real property owned by SMART, described below, real property owned by the Sonoma County Water Agency, and other property, and is identified by Sonoma County Assessor's Parcel Number 005-060-062 (the "City Property"); and WHEREAS, SMART is the owner of certain real property located in the County of Sonoma, State of California, bordered by the Petaluma River, the City Property, Lakeville Highway, real property owned by the Sonoma County Water Agency, and other property, and is identified by Sonoma County Assessor's Parcel Number 005-060-081, (the "SMART Property"); and WHEREAS, SMART desires to acquire fee title to a portion of the City Property, together with all buildings, structures, improvements, landscaping, irrigation systems, machinery, fixtures and equipment affixed or attached to the City Property to be acquired, and all easements and rights appurtenant to the City Property (as more particularly in Exhibit A, which is attached to and made a part of this Quitclaim Deed), and SMART desires to acquire such portion of the City Property from City, on the terms and conditions set forth in the Agreement of Fee Acquisition, Grant of Easement and Construction of Undererossing Improvements between the City and SMART to facilitate relocation of SMART's railway and a bridge across the Petaluma River supporting SMART's railway; and WHEREAS, City agrees to convey its interest in the portion of the City Property described in Exhibit A to SMART, subject to reservation of easements described below and in Exhibit B, which is attached to and made a part of this Quitclaim Deed, as needed for planned construction of a bicycle and pedestrian pathway, in accordance with the terms of the Agreement of Fee Acquisition, Grant of Easement and Construction of Undercrossing Improvements between the City and SMART; �-Ip WITNESSETH NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City does hereby remise, release and forever quitclaim unto SMART any and all right, claim, title, or interest City has in the real property described in Exhibit A, excepting therefrom springing, non-exclusive public access, construction and drainage easements to, from time to time, construct, reconstruct, inspect, maintain, replace, remove, access, and use facilities for a public pathway and undercrossing facilities, underground conduits, pipes, drainage sumps, pumps and piping systems, lighting and lighting conduits and related facilities ('Public Pathway Easements"). The general location, length, width and dimensions of the reserved Public Pathway Easements are as described in Exhibit B. The final, precise location and dimensions of the Public Pathway Easements are to be determined based on the final design for the undercrossing and public pathway improvements pursuant to the Agreement of Fee Acquisition, Grant of Easement and Construction of Undercrossing Improvements between the City and SMART. City of Petaluma By: John C. Brown, City Manager Approved as to form: Eric W. Danly, City Attorney Attest: By: Claire Cooper, City Clerk 0 Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 EXHIBIT C GRANT OF PATHWAY EASEMENT TO CITY FOR BICYCLE AND PEDESTRIAN TRAIL ACROSS SMART PROPERTY q; Recording requested by and when recorded return to: City Clerk City of Petaluma 11 English Street Petaluma, CA 94952 Exempt from recording fees Gov. Code {6103 GRANT OF EASEMENT This Grant of Easement ("Easement Grant") dated and effective as of 2014, is by and between Sonoma -Marin Area Rail Transit District ("SMART") and the City of Petaluma, a California Charter City ("CITY"). RECITALS WHEREAS, City is the owner of certain real property located in the City of Petaluma, County of Sonoma, State of California bordered by the Petaluma River, the Petaluma Marina, Lakeville Highway, and real property owned by SMART, described below, real property owned by the Sonoma County Water Agency, and other property, and is identified by Sonoma County Assessor's Parcel Number 005-060-062 (the "City Property"); and WHEREAS, SMART is the owner of certain real property located in the County of Sonoma, State of California, bordered by the Petaluma River, the City Property, Lakeville Highway, real property owned by the Sonoma County Water Agency, and other property, and is identified by Sonoma County Assessor's Parcel Number 005-060-081, (the "SMART Property"); and WHEREAS, SMART desires to acquire fee title to a portion of the City Property, together with all buildings, structures, improvements, landscaping, irrigation systems, machinery, fixtures and equipment affixed or attached to the City Property to be acquired, and all easements and rights appurtenant to the City Property, and SMART desires to acquire such portion of the City Property from City, on the terms and conditions set forth in the Agreement of Fee Acquisition, Grant of Easement and Construction of Undercrossing Improvements between the City and SMART to facilitate relocation of SMART's railway and a bridge across the Petaluma River supporting SMART's railway; and WHEREAS, the City Property and the SMART property and the portion of the City Property sought by SMART are depicted on Exhibit A which is attached to and made a part of this Easement Grant; and WHEREAS, City has agreed to convey its interest in the portion of the City Property sought by SMART, subject to reservation of easements as needed for planned construction of a bicycle and pedestrian pathway ("Public Pathway Improvements"), in accordance with the terms of the Agreement of Fee Acquisition, Grant of Easement and Construction of Undercrossing Improvements between the City and SMART; and WHEREAS, City's agreement to convey its interest in the portion of the City Property sought by SMART is conditioned on, among other things, SMART granting to City easements across the SMART Property as needed for construction, public use, and maintenance of the Public Pathway Improvements; WITNESSETH NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, SMART does hereby grant to City springing, non-exclusive public access, construction and drainage easements appurtenant to the City Property to, from time to time, construct, reconstruct, inspect, maintain, replace, remove, access, and use the Public Pathway Improvements facilities and related facilities ("Public Pathway Easements") on the SMART Property. The general location, length, width and dimensions of the Public Pathway Easements granted hereby are as described in Exhibit A. The final, precise location and dimensions of the Public Pathway Easements are to be determined based on the final design for the Public Pathway Improvements pursuant to the Agreement of Fee Acquisition, Grant of Easement and Construction of Undercrossing Improvements between the City and SMART. City of Petaluma By: Farhad Mansourian, General Manager Approved as to form: Bv: Tom Lyons, General Counsel Attest: By: J� Project: SMART Transit System Property Owners: City of Petaluma SMART APNs: 005-060-062 005-060-081 EXHIBIT D DIAGRAM AND SPECIFICATIONS FOR UNDERCROSSING IMPROVEMENTS TO BE CONSTRUCTED BY SMART ON SMART PROPERTY AND PLANNED LOCATION OF BICYCLE AND PEDESTRIAN TRAIL �l