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HomeMy WebLinkAboutStaff Report 3.A 03/19/2012 Agenda/Itevw#3. 1 ORDINANCE NO. 2428 N.C.S FFECTIVE DATE. OF ORDINANCE 1 Introduced by Seconded by 2 3' 4 - 5 6 • 7 8 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING 9 PURCHASE,AND,SALE.AGREEMENT, AS AMENDED, BETWEEN 10 DALE H. VESTERFELT AND ALICE M. VESTERFELT, TRUSTEES, DIANNA MAE CORRALEJO, 11 TRUSTEE, AND THE CITY'OF PETALUMA REGARDING REAL PROPERTY 12 COMMONLY KNOWN AS 431 PAULA LANE (APN 019-080-009 AND,APN 019-080-01) 13' 14 15, WHEREAS, Section 46 of the Charter of the City of Petaluma requires that actions for the 16 acquisition, sale or lease of real property be taken by ordinance; and, 17 18 WHEREAS, pursuant to Resolutions No. 2006-160 N.C.S. and 2008-068 N.C.S., the City of 19 Petaluma (City) submitted applications to the Competitive Matching Grant Program (Program) 20 of the Sonoma County Agricultural Preservation and Open Space District (District) for matching 21 grant funds to be used in part for the acquisition of certain real property commonly known as 22 431 Paul Lane, County of Sonoma (APN 019-080-0009 and APN 019-080-01) (the Property); and, 23 24 WHEREAS, the City subsequently resubmitted the application for grant funds for 25 acquisition of the Property to the Program for the 2009-2010 Program cycle; and, 26 27 WHEREAS, theCity has been notified by District that Program funding in the amount of 28 $1,000,000°has been approved by the District Board of Directors for acquisition of the Property; 29 and, 30 31 WHEREAS, the City has been notified by District that the District Board of Directors has 32 requested the ability to consider awarding an additional $50,000 in Program funding for 33 acquisition of the Property; and, 34 35 WHEREAS, the City has negotiated a purchase and sale agreement between the City 36 and Dale H. Vesterfelt and Alice M. Vesterfelt, Trustees, and Dianna Mae Corralejo, Trustee, 37 owners of the Property, in the amount of$1,050,000 (Agreement), a copy of which is attached 38 as Exhibit A and incorporated herein by reference; and, I • 1 2 WHEREAS, the;City and the Paula Land Action Network (PLAN) are in the process of 3 developing a work plan to operate and manage the Property as an open space preserve and 4 educational nature facility; and, 5 6 WHEREAS, this action is exempt from the California Environmental Quality Act (CEQA) 7 pursuant to title 14, Chapter 3 of the California Code of Regulations (CEQA Guidelines), 8 including but not limited to sections 15313 (Acquisition of Land for Wildlife Conservation 9 Purposes), 15317 (Open Space Contracts or Easements), and/or 15325 (Transfers of Ownership 10 Interest in Land to Preserve Existing Natural Conditions). 11 12 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS 13 FOLLOWS: 14 15 Section 1. The City Council approves the purchase and sale agreement between the 16 City of Petaluma and Dale H. Vesterfelt and Alice M. Vesterfelt, Trustees, and Dianna Mae 17 Corralejo, Trustee in the amount of$1,050,000 (Agreement), a copy of which is attached as 18 Exhibit A and incorporated herein by reference. 19 20 Section 2. The city manager is authorized and directed to execute the Agreement and 21 all other documents reasonably necessary to complete the purchase and sale, according to the 22 terms of the Agreement. 23 24 Section 3. If any section,,subsection, sentence, clause, phrase or word of this ordinance 25. is for any reason held to,be unconstitutional, unlawful or otherwise invalid by a court of 26 competent jurisdiction or preempted by state legislation, such decision or legislation shall not 27 affect the validity of the remaining portions of this ordinance. The City Council of the City of 28 Petaluma hereby declares that it would have passed and adopted this ordinance and each 29 and all provisions thereof irrespective of the fact that any one or more of said provisions be 30 declared unconstitutional, unlawful or otherwise invalid. 31 32 Section 4. This ordinance:shall become effective thirty (30) days after the date of its 33 adoption by the Petaluma City Council. 34 35 Section 5, The City Clerk,is hereby directed to publish or post this ordinance or a synopsis 36 for the period and in the manner provided by the City Charter and any other applicable law. 37 38 INTRODUCED and ORDERED posted/published this 51h day of March 2012. 39 40 ADOPTED this of March 2012, by the following vote: 41 42 Ayes: 43 Noes: 44 Abstain: 45 Absent: 46 47 • cL 1 2 3 4 5 Mayor 6 7 8 9 ATTEST: APPROVED AS TO FORM: 10 '11 12 13 14 15 City Clerk City Attorney 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39. 40 41 42 43 44 45 46 47 48 49 50 51 52• 3 Exhibit A to Ordinance 2428 N.C.S. FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT This First Amendment to Purchase and Sale Agreement ("First Amendment")is made and entered into as of.\... .._.. '4 , 2017-between DALE H. VESTERFELT and ALICE M. VESTERFELT, Trustees of the 2000 Vesterfelt Family Trust dated November 1, 2000, as town undivided one-half interest;DIANNA MAE CORRALEJO, Trustee of the Dianna M. Corralejo Trust dated August 1, 1995, as to'an undivided one-half interest..(collectively "Sellers") and the CITY OF PETALUMA, a municipal corporation and charter city ("Purchaser"). Sellers and Purchaser are sometimes referred to hereafter as a "Party" or the "Parties." RECITALS: A. Sellers and Purchaser entered into that certain Purchase and Sale Agreement ("Agreement") dated September:'6;;2011, concerning the sale,and purchase of real property located at 431 Paula Lane in the unincorporated area of the County of Sonoma, at Petaluma California, within the sphere of influence of the City of Petaluma, more particularly described as Sonoma County Assessor's Parcel Nos. 019-080-009 (10:10 acres) and 019-080-010 (1.12 acres), and the improvements thereon consisting of two single family residences and outbuildings ("the Property"). The Property consists of a total of 11.22 acres, more or less, as more particularly Exhibit A to the Agreement. B. Seller and Purchaser wish to amend the terms of the Agreement in the manner set forth in this First Amendment. ACCORDINGLY, for good and valuable consideration, receipt of which is hereby acknowledged, Seller and Purchaser agree to amend the Agreement as follows: 1. Section 2(b) "Escrow," of the Agreement shall be amended to read in full as follows: (b) Unless the Parties otherwise mutually agree in writing to an extension, the escrow shall close ("Close of Escrow") on or before March30, 2012. In the event that the Parties are not then able to close escrow, the Sellers may; but need not, agree to extend the date for Close of Escrow without additional consideration. 2.- Section 4(e), "Sellers' Tenants," of the Agreement shall be amended to read in full as follows: (e) Upon Close of Escrow, Sellers shall relinquish and assign to.Purchaser all right and,responsibilities with respect to tenancies and/or occupancies accepted by Purchaser except as expressly provided herein. Sellers represent that the tenancy of Stephen and/or Vincent Fontano, aka Steve Fontano and/or Vince Fontano, and all others claiming under them ("Fontano Parties") has been terminated prior to the executionof this Amendment, and the Fontano Parties have vacated the Property. Purchaser agrees that Seller shall retain all rights and obligations relating to the tenancy of the Fontano Parties, including but not limited to receipt of past due rent, if 1 any;and that such rights,and;obligations shall'not;be assigned or relinquished to Purchaser. Upon Close of Escrow, Purchaser may, at its election and without cost or liability"to Sellers,enter into a separate agreement with one or more of the tenants and/or occupants then on the Property,and otherwise act as the owner of the Property affecting such occupants, tenants and/or tenancies, subject to applicable law. 3. Except as expressly amended herein, all provisions of the Agreement remain in full force and effect. The Parties have executed this Amendment as of the date fast written above. SELLERS: (Z.4 7)1- Alice M. Vesterfelt, Co-Trustee ' Dated: i '/.. — Dale H. Vesterfelt,Co-Trustee Co-Trustees, and any successor trustees, of the 2000 Vesterfelt Family Trust Dated: �2/H//, Dianna Mae Corralejo, Trustee Trustee, and any successor trustee, of the Dianna M. Corralejo Trust Dated: /J `F -( l • PURCHASER: CITY OF PETALUMA Y Print Name: JohnBrown Title: City Manager Dated: t-3.t2. 5 PURCHASE AND SALE AGREEMENT This Purchase and Sale Agreement ("Agreement") is entered into as of --C 4'-'C- ' eit( � 201'1 between DALE H. VESTERFELT and ALICE M. VESTERFELT,Trustees of the 2000 Vesterfelt Family Trust.dated November 1 , 2000, as to an undivided one-half interest; DIANNA MAE CORRALEJO, Trustee of the Dianna M. Corralejo Trust dated August 1, 1995, as to an undivided.one-half interest (collectively "Sellers") and the CITY OF PETALUMA, a municipal,corporation and charter city ("Purchaser"). Sellers and Purchaser are sometimes referred to hereafter as a "Party" or the "Parties." This Agreement is entered into in consideration of each of the following Recitals: RECITALS A. Sellers are the owners of two parcels of real property located at 431 Paula Lane in the unincorporated area of the County of Sonoma, at Petaluma California, within the sphere of influence of the City of Petaluma, more particularly described as Sonoma County Assessor's Parcel Nos. 0f9-080-009 (10. 10 acres) and 019-080-010 (1 .12 acres), and the improvements thereon consisting of two single family residences and outbuildings ("the Property"). The Property consists of a total of 1 1 .22 acres, more or less, as more particularly described in the attached Exhibit A. B. Purchaser is purchasing the Property to be developed as the Paula Lane Open Space Preserve with public access amenities, educational opportunities and habitat restoration and enhancement ("the Project"). C. Purchaser is negotiating with the Sonoma County Agricultural Preservation and Open Space District ("District") to obtain grant funding necessary for Purchaser's acquisition of the Property and implementation of the Project equal to or greater than One Million Fifty Thousand Dollars ($1,050,000) ("Grant Funding"). It is anticipated'that the Grant Funding will be conditioned upon Purchasers grant to the District of a conservation easement over the Property and Purchaser's acquisition of fee title to the Property. D. Sellers presently have two tenants on the Property, each on a month to month rental agreement. E. Purchaser desires to purchase and Sellers desire to sell the Property on the terms and conditions in this Agreement, including but not limited to contingencies stated in Section 8 hereof. SELLERS AND PURCHASER THEREFORE AGREE AS FOLLOWS: Section 1. Purchase and Sale. For good and valuable consideration, the receipt and adequacy of which are acknowledged, Sellers agree to sell and Purchaser agrees to purchase the Property, contingent upon Purchaser's receipt of Grant Funding equal to or greater than One Million Fifty Thousand Dollars ($1,050,000), execution of an operation and maintenance agreement for the Project satisfactory to Purchaser between the Paula Lane Action Network (PLAN) and Purchaser, execution of a grant administration agreement between Purchaser, PLAN and District, and subject to the terms and conditions in this Purchase and Sale Agreement (the "Agreement"). Section 2. Purchase Price The total purchase price for the Property shall be the sum of One Million Fifty Thousand ($1,050,000) Dollars, payable in cash at Close of Escrow. Section 3. Escrow. (a) Escrow shall be opened to consummate the sale of the Property pursuant to this Agreement at Old Republic Title Company, Att'n: Julie James, 201 First St., Petaluma, CA 94952 ("Escrow Agent") within five (5) business days from Sellers' acceptance of this Agreement. The Parties shall deliver signed escrow instructions to Escrow Agent within thirty (30) calendar days of Sellers' acceptance. The escrow instructions shall not modify or amend this Agreement, provided,however, that the Parties shall execute any additional instructions requested by Escrow Agent in a manner consistent with the Agreement. (.b) Unless the Parties otherwise mutually agree in writing to an extension, the escrow shall close ("Close of Escrow") on or before December 20, 2011 . In the event that the Parties are not then able to close escrow, the Seller may, but need not, agree to extend the, date for Close.of Escrow without additional consideration. Section 4. Sellers' Tenants (a) Sellers represent that as of the date of this Agreement, the improvements on the Property consist of two single family residences, which are not untenantable dwellings as defined in Civil Code section 1941 and are presently occupied. Sellers shall assume the responsibility for and pay and hold Purchaser free and harmless from any cost or expense relating to the existence or removal of such tenants and any damage to the Property caused by such tenants up to and including Close of Escrow. In the event that costs or expenses related to the existence or removal of tenants and/or any damage to the Property caused by 1- such tenants exceeds $2,500; Sellers shall have the right to decline to expend more than $2,500 to remove tenants or correct said damage upon written notification to Purchaser. If Sellers so notify Purchaser, Purchaser shall have the right to terminate this Agreement. In the event of termination, both Purchaser and Sellers shall be relieved of all further obligation and liability to each other under this Agreement, and execute instructions necessary to the refund and/or return of all funds and documents deposited with Escrow Agent, which funds and documents shall he promptly refunded or returned, as the case may be, by Escrow Agent to the depositing Party.. Upon and after Close of Escrow, Purchaser shall assume the responsibility for and hold Seller free and harmless from any cost or expense relating to the existence or removal of such tenants and any damage to the Property caused by such tenants. (b) Sellers represent that written agreements with regard to tenancy, or occupancy of the Property exist with the following persons or entities: Steve Fontano; Vince Fontano Steve Pedersen (c) Sellers represent that the following individuals presently reside on the Property without a written agreement: Heidi Stevenson, Sadie and Huxley, wife and children of Steve Pedersen. NONE. (c) Sellers further represent that no other individuals or entities than those disclosed herein reside on and/or hold a tenancy interest in the Property. (d) Within five (5) days of execution of this Agreement, Sellers shall provide to Purchaser,copies of each and every document, agreement and/or writing relating to any occupant and/or tenant on the Property. Purchaser shall have ten (10) business days from receipt of said documents to approve or disapprove said documents and/or any tenancy or occupancy of the Property disclosed in this Section. If Purchaser does not provide written approval of said documents and/or all tenancy or occupancy of the Property within ten (10) business days of receipt of said documents, the written agreements and/or documents and all tenancies or occupancies of the Property shall be deemed approved by Purchaser. In the event of disapproval of any written agreement or document relating to tenancy or occupancy and/or any tenancy or occupancy of the Property by Purchaser, Purchaser shall have the right to: (i) Waive in writing the disapproved document; agreement, tenancy and/or occupancy and proceed with Close of Escrow, accepting said document, agreement, occupancy or tenancy; or (ii) Provide written notice to Sellers of Purchasers' intention to terminate this Agreement. The Sellers shall have fourteen (14) business days from the date of Purchasers' notice to modify or adjust agreements, documents, tenancies or occupancies that are subject to Purchasers' disapproval and provide written evidence of same to Purchaser. Purchaser shall have ten (10) business days from receipt of written evidence of modified agreements, documents, tenancies or occupancies to accept or reject such modified agreements, documents, tenancies or occupancies. Failure of Purchaser to provide Sellers with a written waiver or acceptance of said modifications shall not be construed as a waiver pursuant.to subsection 4(d)(1), and shall terminate this Agreement. In the event of termination of this Agreement, both Purchaser and Sellers shall be relieved of all further obligation and liability to each other under this Agreement, and execute instructions necessary to the refund and/or return of all funds and documents deposited with Escrow Agent, which funds and documents shall be promptly refunded or returned, as the case may be, by Escrow Agent to the depositing Party. (e) Upon Close of Escrow, Sellers shall relinquish and assign to Purchaser all rights and responsibilities with respect to.tenancies and/or occupancies accepted by Purchaser. Upon Close of Escrow, Purchaser may, at its election and without cost or liability to Sellers, enter into a separate agreement with one or more of the tenants and/or occupants on the Property and otherwise act as the owner of the Property affecting such occupants, tenants and/or tenancies, subject to applicable law. Section 5. Access and Inspection (a) Access to the Property during the escrow period shall be provided to Purchaser, its agents, employees, or contractors during normal business hours upon at least two (2) business day's notice to Dale or Alice Vesterfelt, at Purchaser's own cost and risk, for purposes,of Purchaser's inspection, surveys and other activities in support of evaluation of the Property and/or implementation of the Project, including but not limited to a Phase I environmental assessment and any further environmental assessment deemed necessary in Purchaser's discretion. To the extent inspection involves occupied_structures, Purchasers shall notify Dale or Alice Vesterfelt at least four (4) business days prior to the requested inspection and Sellers shall notify tenants in writing or as provided in Civil Code section 1954(d)(2) of the date, approximate time and purpose of any such inspection no less than twenty-four (24) hours prior to the conduct of the inspection. Purchaser shall indemnify and defend Sellers against claims arising out of or related to Purchaser's entry onto the Property or any activity thereon by Purchaser or its agents, employees or contractors, including any waste caused thereby prior to the Close of Escrow unless such losses, costs, 9 damages, liabilities and expenses arise out of the gross negligence or willful acts of Sellers or failure of Sellers to notify tenants as required. The provisions of this Section shall survive the Close of Escrow. (b) In addition to the provisions in Section 5(a), Purchaser and its agents, employees, or contractors shall have the right, from the date of this Agreement until the Close of Escrow, to contact any federal state, or local governmental authority or agency to investigate any matters relating to the Property as part of such inspection and environmental assessment(s). Sellers agree to cooperate reasonably with Purchaser and its agents, employees or contractors in such contacts and the inspection of the Property and agree to deliver to Purchaser any information in Sellers' possession or control pertaining to the ownership and condition of the Property, including engineering and environmental reports, studies, tests, monitoring results, and related documentation. (c) In addition to the Provisions in Sections 5(a) and (b), Purchaser and its agents, employees or contractors shall have the permission of Sellers to interact with fire prevention mowing entities for the purposes of protection of wildlife habitat areas on the Property during annual fire prevention mowing that shall occur in 2011 on the Property. (d) Purchaser shall reject or accept all conditions disclosed by the inspections and assessments provided for in this Section no later than forty-five (45) days from the date on which Purchaser is notified by District that Grant Funding has been approved by District. Should Purchaser reject any condition of the Property disclosed by its inspection and/or assessments, Purchaser has the right to terminate this Agreement upon written notification to Seller. Section 6. Sellers' Cooperation with Funding Sources Sellers shall cooperate with Purchaser and undertake such acts and execute such documents as reasonably necessary to assist Purchaser in obtaining the Grant Funding from District:which is a condition precedent to Purchaser's performance under this Agreement. Any such acts requested by Purchaser shall be at Purchaser's expense,and at no cost or liability to Sellers. Sellers shall execute the conservation easement only at dose of escrow. Section 7. Title (a) Immediately following the execution of this Agreement, Purchaser shall cause to be prepared and issued to Purchaser (with a copy to Sellers) a CLTA Preliminary Title Report for the Property, setting forth all liens, encumbrances, easements, restrictions, conditions, pending litigation,judgments, administrative proceedings, and other matters affecting 10 Seller's title to the Property ("Preliminary Report"), together with copies of all documents relating to title exceptions referred to'in the Preliminary Report. (b) Purchaser shall approve or disapprove all exceptions shown on the Preliminary Report within ten (10) business days following receipt of the Preliminary Report. Purchaser's failure to disapprove within the ten (10) business days shall be deemed an approval of the Exceptions. (c) If an exception is disapproved ("Disapproved Exception"), Seller shall, within thirty (30) days following expiration of the ten (10) day period provided under- Section 7(b) above, use its best efforts to cause each Disapproved Exception to be discharged, satisfied, released, or terminated, as the case may be, of record, in a form that is reasonably satisfactory to Purchaser and Escrow Agent, all at Sellers' sole cost and expense. If Sellers are unable or unwilling to obtain a discharge, satisfaction, release or termination within the period specified above, or conclude that the cost of doing so is, in Sellers' sole discretion, too high, Purchaser shall have the right to: (i) Waive the Disapproved Exception and proceed with Close of Escrow, accepting Title to the Property subject to the Disapproved Exception; or, (ii) Terminate this Agreement, in which event both Purchaser and Sellers shall be relieved of all further obligation and liability to each other under this Agreement, and shall execute instructions necessary to the refund and/or return of all funds and documents deposited with Escrow Agent, which funds and documents shall be promptly refunded or returned, as the case may be, by Escrow Agent to the depositing Party. Section 8. Conditions of Escrow The Close of Escrow and the obligations of each Party pursuant to this Agreement are conditioned on: a. The understanding that "as is" means the Property is accepted by Purchaser in its current condition with whatever physical defects may currently exist, whether known to any Party or not However, the Parties acknowledge that Civil Code sections 1102 et seg. require that a Real Estate Transfer Disclosure Statement (TDS) as specified in Civil Code section 1102.6 be completed by Sellers. Sellers and Purchaser agree that the time limit for Purchaser to reject the TDS pursuant to Civil Code section 1102.3 shall be extended to ten (10) business days from either first class mailing or hand delivery. Rejection of the TDS shall terminate this Agreement. Failure to reject the TDS shall not waive or otherwise affect any other inspection or acceptance rights of Purchaser pursuant to other provisions of this Agreement. Sellers will truthfully and fully complete the TDS form and deliver it II to Buyer as soon as possible, but in no event more than 21 days from the date of execution of this agreement. b. Notification by Purchaser to Sellers in writing within forty-five (45) days of the execution of this Agreement that Purchaser has received notification from the District that the Grant Funding has been;approved by District. If Purchaser fails to so notify Sellers within forty-five (45) days of the execution of this Agreement, Sellers may, at Sellers' exclusive option, terminate this Agreement by giving written notification of such termination to Purchaser. c. Purchaser's approval of all inspections and assessments conducted by Purchaser pursuant to Section 5 above and removal in writing of this condition precedent no later than forty-five (45) days from the date on which Purchaser is notified by District that the Grant Funding has been approved by District. d. Conveyance to Purchaser of title to the Property, as evidenced by a standard form California Land Title Association (CLTA) title insurance policy, issued by Title Company - in the full amount of the purchase price, subject only to the exceptions to title approved by Purchaser pursuant to Section 7(b) and 7(c), above. e. In addition to Purchaser's approval or disapproval of title exceptions, as set forth herein, Purchaser's determination that there have not been,prior to close of escrow, any liens or encumbrances of any kind placed on the Property by any third party not within Purchaser's control which are not acceptable to Purchaser. f. Purchaser's receipt of the Grant Funding and approval of necessary grant agreements by resolution of the City Council of the City of Petaluma and by District. g. City Council approval by resolution of an operation and maintenance agreement for the Project between Purchaser and the Paula Lane Action Network (PLAN) no later than. sixty (60) days from the date on which Purchaser is notified by District that the Grant Funding has been approved by District. h. City Council approval by resolution of a written grant administration agreement between Purchaser, the District and PLAN no later than sixty (60) days from the date:on which Purchaser is notified by District that the Grant Funding has been approved by District. i. City Council Approval of this Agreement by ordinance no later than sixty (60) days from the date on which Purchaser is notified by District that the Grant Funding has been approved by District. Section 9. Prorations Title Company shall prorate°the. following costs at the Close of Escrow: (a) Sellers shall pay: (i) Documentary transfer tax due upon transfer of the Property. (b) Purchaser shall pay: (i) The recording charges in connection with recordation of the Deed; (ii) All charges in connection with issuance of a CLTA Standard Policy of Title Insurance in the amount of the total Purchase Price; (iii) The escrow fee charged by Escrow Agent. (c) Property taxes shall be prorated at Close of Escrow based on the most current property tax bill available, but proration shall include any additional property taxes that may be assessed up to but not longer than one year after Close of Escrow which relate to a period prior to Close of Escrow, regardless of when notice of those taxes is received or who receives the notice. (d) Sellers represent and warrant%that as of execution of this Agreement by Sellers there are, to their knowledge, no bonds or assessments that constitute a lien upon the Property other,than as disclosed in the Preliminary Title Search and any Residential Property Disclosure Reports in regard to the Property. In the event that there are any bonds or assessments imposed as a lien upon the Property other than as disclosed in the Preliminary Title Search and any Residential Property Disclosure.Reports in regard to the.Property, unless the pro-rated portion is fully paid by Sellers, Purchaser may, at its discretion, close escrow and take title subject to such bonds or assessments, or elect not to close escrow and terminate this Agreement. Section 10. Possession Possession of the Property shall be delivered to Purchaser at Close:of Escrow. Section 11. Real Estate Representation and Commission Sellers are exclusively represented by Listing Agent Vonne Irish. Seller's obligation to pay any real estate commission is governed by Seller's separate agreement with Listing Agent and/or Listing Agent's broker and is the sole responsibility of Seller. Seller agrees that its obligation to pay a Listing Agent and/or broker commission shall be satisfied solely by Seller as part of Close of Escrow. 13 Section 12. Disclaimer of Representations'and Warranties by Sellers (a) There are no representations, agreements, arrangements, or circumstances, oral or written, between the parties relating to the subject matter contained in this Agreement that are not fully expressed in the Agreement; and Sellers have not made and do not make any representation or warranty concerning any matter or thing affecting or relating to the Property not expressed in this Agreement. (b) Purchaser warrants that Purchaser is familiar and experienced with ownership of real property for public purposes. Purchaser's rights to examine the Property, its physical condition, and approve or accept the Property in an "as is" condition are subject to the conditions and provisions set forth in this Agreement. (c) Purchaser has conducted or will conduct an independent investigation with respect to zoning and subdivision laws, ordinances, resolutions, and regulations of all governmental authorities having jurisdiction over the Property, and the use and preservation of the Property, and Sellers have not made representations to Purchaser on any of these matters. Section 13. Sellers' Covenants Commencing with the full execution of this.Agreement by both parties and until the Close of Escrow: (a) Sellers shall not permit any liens, encumbrances, or easements to be placed on the Property, other than the approved exceptions, nor shall Seller enter into any agreement regarding the sale, rental, occupancy, management, repair, improvement, or any other matter affecting the Property that would be binding on.Purchaser or the Property after the Close of Escrow without the prior written consent of Purchaser. (b) Sellers,'shall not permit any act of waste or act that would tend to diminish the value of the Property for any reason, except that caused by ordinary wear and tear. Section 14. Sellers' Representations and Warranties To the best of the Sellers' knowledge, Sellers represent and warrant to Purchaser that, as of the date of this Agreement, and as of the date of Close of Escrow: (a) Except for the tenants and/or occupants described in Recital E and Section 4 above, no leases, licenses, or other agreements allowing any third party right to use the Property are or will be in force. (b) There is no pending or threatened litigation, administrative proceeding, or other legal or governmental action with respect to the Property. Sellers reserve their rights to evict any tenant or occupant of the Property and/or collect all obligations due from said tenant(s) or occupants prior to close of escrow. Section 15. Authority of the Parties (a) Sellers warrant that this Agreement and all other documents delivered prior to or at the Close of Escrow: (i) Have been authorized, executed, and delivered by Sellers; (ii) Are binding obligations of Sellers; and (iii) Do not violate the provisions of any agreement prior in time to which Sellers are a party or which affects the Property,-nor violate the provisions of the 2000 Vesterfelt Family Trust (with Dale H. Vesterfelt and Alice M. Vesterfelt Trustees) or the Dianna M. Corralejo Trust (with Dianna Mae Corralejo as Trustee), subject, however, to applicable bankruptcy, insolvency, and other similar laws affecting the enforcement of creditors' rights and to principles of equitable remedies. (b) Purchaser warrants that this Agreement and all other documents delivered prior to or on the Close of Escrow (i) Have been authorized, executed, and delivered by Purchaser; (ii) Are binding obligations of Purchaser; and (iii), Do,not violate the provisions of any agreement prior in time to which Purchaser is ia party subject, however, to applicable bankruptcy, insolvency, and other similar laws for enforcement of creditors' rights and to principles of equitable remedies. Section 16. Notices All notices to be given under this Agreement shall be in writing and either: (a) Sent by certified mail, return receipt requested, in which case notice shall be deemed • delivered three (3) business days after deposit, postage prepaid in the United States Mail, • (b) Sent by a nationally recognized overnight courier, in which case notice shall be deemed delivered one (1) business day after deposit with this courier, or (c) By facsimile, email or similar means, if a copy oldie notice is also sent by United States Certified Mail, in which case notice shall be deemed delivered on transmittal by facsimile, email or other similar means provided that a transmission report is generated by reflecting the accurate transmission of the notices, as follows: PURCHASER: City of Petaluma City Manager 11 English Street Petaluma, CA 94952 Telephone: (707) 778-4360 Facsimile: (707) 778-4554 WITH COPY TO: Leslie A. Thomsen Meyers Nave 401 Mendocino Avenue, Suite 100 Santa Rosa, CA 95401 Facsimile: 707 545.6617 lthomsen @meyersnave.com SELLERS: Dale H. and Alice M. Vesterfelt as Co-Trustees of the 2000 Vesterfelt Family Trust 14654 Acacia Street San Leandro, CA 94579-1250 and Dianna Mae Corralejo as Trustee of the Dianna M. Corralejo Trust 14642 Acacia Street San Leandro, CA 94579-1250 WITH COPY TO: George Martinez, Esq. Law Offices of George Martinez #10 Deer Island Lane Novato, CA 94945 These addresses may be changed by written notice to the other Party, provided that the notice of a change of address shall not be effective until actual receipt by the Parties of the notice. Copies of notices are for•infornational purposes only, and a failure to give or receive copies of any notice shall not be deemed a failure to give notice. Section 17. Attorney Fees If either Party commences an action against the other to interpret or enforce this Agreement, or because of the breach by either Party of this Agreement, the prevailing • Party in this action whether or not brought to trial or final judgment, shall be entitled to recover reasonable attorney fees and costs incurred in connection with the prosecution or defense of this action, including any appeal of the action, in addition to all other relief Prevailing Party within the meaning of this Section shall include, without limitation, a Party who successfully brings an action against the other Party for sums allegedly due or performance of covenants allegedly breached, or that Party who obtains substantially the relief sought in the action. Section 18. Entire Agreement This Agreement, including the exhibits attached hereto and incorporated herein, constitutes the entire agreement between the Parties with respect to the Property, and supersedes all prior agreements or understandings, negotiations or discussions, oral or written, between the Parties in this regard. This Agreement shall not be modified in any manner except by an instrument in writing executed by the Parties or their respective successors in interest. Section 19. Severability If any term or provision of this Agreement shall, to any extent, be held invalid or unenforceable, the remainder of this Agreement shall not be affected. Section 20. Waivers A waiver or breach of covenant or provision in this Agreement shall not be deemed a waiver of any other covenant or provision in this Agreement, and no waiver shall be valid unless in writing and executed by the waiving Party. An extension of time for performance of any obligation or act shall not be deemed an extension of the time for performance of any other obligation or act. Section 21. Construction The section headings and captions of this Agreement are, and the arrangement of this r� instrument is, for the sole convenience of the Parties to This Agreement. The section headings, captions, and,arrangement of this instrument do not in any way affect, limit, amplify, or modify the terms and provisions of this Agreement. The singular form shall include plural, and vice versa. Notwithstanding Civil Code Section 1654 this Agreement shall.•not be construed as if it had been prepared by one of the Parties, but rather as if both Parties have prepared it. Unless otherwise indicated, all references to sections are to this Agreement. All exhibits referred to in this Agreement are attached to it and incorporated in it by this reference. Section 22. Merger All of the terms, provisions, representations, warranties, and covenants of the Parties pursuant to this Agreementshall survive the Close of Escrow and shall not be merged in the Deed or other documents. Section 23. Counterparts This Agreement may be executed in one or more counterparts, duplicate copies or facsimile copies. Each shall be deemed an original and all taken together shall constitute one and the same instrument. The execution of this Agreement is deemed to have occurred, and this Agreement shall be enforceable and effective only on the complete execution of this Agreement by the Parties. Section 24. Time of the Essence Time is of the essence in this Agreement. Section 25. Successors This Agreement shall inure to the benefit of and shall be binding upon the Parties to this Agreement and their respective heirs, personal representatives, successors, and assigns. Section 26. Governing Law This Agreement shall be governed and construed in accordance with California law. Venue for any action relating to this Agreement shall be in Sonoma County, California. Section 27. Tax Deferred Exchange In the event that Sellers wish to enter into a tax deferred exchange or tax deferred transfer of the property, Purchaser agrees to reasonably cooperate with Sellers in connection with • such•exchange:or transfer and execute such documents as:may reasonably be necessary to complete the exchange provided, however, that: (a) The exchange or transfer will not cause a delay to the close of escrow; (b) All additional costs in connection with the tax deferred exchange or the tax deferred transfer will be borne by the Sellers requesting the exchange or transfer; (c) Purchaser will not be obligated to execute any note, contract, deed or other document which would create a.liability to Purchaser. Sellers shall assume the responsibility for,pay, indemnify and hold Purchaser free and harmless from any damage, loss or liability which is asserted or claimed against it on account of the Sellers' tax deferred exchange or tax deferred transfer. The Parties have executed this Agreement as of the date first written above. SELLERS: O'er K . Alice M. Vesterfelt, Co-Trustee KY Dated: " — / — / / Dale H. Vesterfelt, Co-Trustee Co-Trustees, and any successor trustees, of the 2000 Vesterfelt Family Trust Dated: C3�` 1 " LC Diana Mae Corralejo, Trustee (.J Trustee, and any successor trustee, of the Dianna M. Corralejo Trust Dated: PURCHASER: CITY OF PETALUMA By: j C Print Name: John Brown_ Title: City Manager :. Dated: r �k�- Jt I/ ATTEST: CCY ULL) Ott ' City Clerk APPROVED AS TO FORM: % n n City Attorney APPROVED: Depai it Director APPROVED: Risk Manager APPROVE I : Director it n EXHIBIT A TO PURCHASE AND SALE AGREEMENT Legal Description The land referred to herein is situated in the State of California, County of Sonoma, UNINCORPORATED AREA, as described as follows: BEGINNING AT THE SOUTHEASTERLY CORNER OF THE PAULA TRACT, SAID POINT OF BEGINNING BEING IN THE MIDDLE OF THE PAULA LANE SO-CALLED; THENCE ALONG THE MIDDLE OF SAID LANE, THE EASTERLY BOUNDARY OF SAID TRACT, NORTH 13 3/4 DEGREES EAST, 8.93 CHAINS TO THE MIDDLE OF A LANE; THENCE LEAVING THE FIRST, AND ALONG THE MIDDLE OF THE LAST MENTIONED LANE, NORTH 75° 08' WEST, 12.58 CHAINS; THENCE LEAVING SAID LANE, SOUTH 15° 20' WEST, 8.75 CHAINS TO THE SOUTHERLY BOUNDARY OF THE AFORESAID PAULA TRACT; AND THENCE ALONG SAID BOUNDARY, SOUTH 74°15'EAST, 12.82 CHAINS TO THE PLACE OF BEGINNING. SAVING AND EXCEPTING THEREFROM:THAT CERTAIN FORTY FOOT STRIP OR LAND DESCRIBED IN THE DEED FROM JOHN PAULI AND MARY PAULI, HIS WIFE, TO ELLEN LOUISE FERGUSSON, DATED OCTOBER 1.9, 1895, AND RECORDED OCTOBER 26, 1895 IN LIBER 162 OF DEEDS, PAGE 352, SONOMA COUNTY RECORDS. ALSO EXCEPTING THEREFROM ALL THAT PORTION LYING SOUTHERLY OF THE NORTHERLY LINE OF THE MAP OF FULTON TRACT FILED MARCH 11, 1893 IN BOOK 10 OF MAPS, PAGE 1, IN THE SONOMA COUNTY RECORDERS OFFICE. APN: 019-080-009 & 010 END OF DOCUMENT 1694750.10 EFFECTIVE DATE ORDINANCE NO 2429:N.C.S, OF ORDINANCE 1, Introduced by Seconded by 2 3 4 5 6 7 8 ORDINANCE OF THE CITYCOUNCIL OF THE CITY OF PETALUMA APPROVING DEED AND 9 AGREEMENT'BETWEEN THECITY OF PETALUMA AND THESONOMA COUNTY AGRICULTURAL 10, PRESERVATION AND OPEN SPACE DISTRICT CONVEYING A CONSERVATION EASEMENT 11 AND ASSIGNING DEVELOPMENT RIGHTS REGARDING REAL,PROPERTY COMMONLY 12 KNOWN AS 431 PAULA LANE (APN 019-080-009 AND'APN 019-080-01) I3 14 15 WHEREAS, Section 46 of the Charter of the City of Petaluma requires that actions for the 16 acquisition, sale or lease of real property be taken by ordinance; and, 17 18 WHEREAS, pursuant to.Resolutions No. 2006-160 N.C.S. and 2008-068 N.C.S., the City of 19 Petaluma (City) submitted applications to the Competitive Matching Grant Program (Program) 20 of the Sonoma County Agricultural Preservation and Open Space District (District) for matching 21 grant funds to be used in part for the acquisition of certain real property commonly known as 22 431 Paul Lane, County of Sonoma (APN 019-080-0009 and.APN 019-080-01) (the Property); and, 23 24 WHEREAS, the City subsequently resubmitted the application for grant funds for 25 acquisition of the Property to the Program for the 2009-2010 Program cycle; and, 26 27 WHEREAS, theCity has;been notified by Districtthat Program funding in the'amountlof 28; $1,000;000rhas been approved by the District Board of Directors for acquisition of the Property; 29 and, 30 31 WHEREAS, the.City has been notified by District that the District Board of Directors has 32 requested the ability to consider awarding an additional $50,000 in Program funding for 33 acquisition of the Property; and, 34 35 WHEREAS, the City has.negotiated a purchase and sale agreement between the City 36 and Dale H. VesterfelT and Alice M. Vesferfelt, Trustees, and.Dianna.Mae Corralejo, Trustee, 37 owners of the Property, imthe amount of $1,050,000 (Agreement); and, 38 aa- 1 WHEREAS, the City Council has introduced an ordinan"ce.approving the Agreement; and, 2. 3 WHEREAS; a condition of Districts Program'funding is£a requirement to convey to District 4 a Conservation Easement over the Property and to assign to District development rights over the 5 Property; and, 6 7 WHEREAS, the City has negotiated the terms of a Deed and Agreement Between the City 8 of Petaluma and the Sonoma.County Agricultural Preservation and Open Space District 9 Conveying a Conservation Easement and Assigning Development Rights (Conservation 10 Easement), a copy of which is attached hereto as'Exhibit A and incorporated herein by 11 reference; and, 12 13 WHEREAS, the Agreement requires the City to complete the+purchase and sale of the 14 Property and grant of the Conservation Easement over the Property through an joint escrow 15 transaction; and, 16 17 WHEREAS,the City and the Paula Lane Action Network (PLAN) are in the process of 18 developing a work plan to operate and manage the Property as an open space preserve and 19 educational nature facility; and, 20 21 WHEREAS, this action is exempt from the California Environmental Quality Act (CEQA) 22 pursuant to title 14, Chapter 3 of the California Code:of Regulations (CEQA Guidelines), 23 including but not limited to sections 15313 (Acquisition of Land for Wildlife'Conservation 24 Purposes), 15317 (Open Space Contracts or Easements), and/or 15325 (Transfers of Ownership 25 Interest in Land to Preserve Existing Natural Conditions). 26 27 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS 28 FOLLOWS: 29 30 Section 1. The City Council approves the execution of the Deed and Agreement 31 Between the City of Petaluma and the Sonoma County Agricultural Preservation and Open 32 Space District Conveying a Conservation Easement and Assigning Development Rights 33 (Conservation Easement), a copy of which is attached as.Exhibit A and incorporated herein by 34 reference. 35 36 Section 2. The city manager is authorized and directed to execute the Conservation 37 Easerrient.and`all other documents reasonably necessary to implement the escrow for transfer 38 of the Conservation Easement. 39 40 Section 3. If any section, subsection,sentence, clause, phrase'or word of this ordinance 41 is for any reason held to be,unconstitutional, unlawful or otherwise invalid by a court of 42 competent jurisdiction or preempted by state legislation, such decision or legislation shall not 43 affect the validity of the remaining portions of this ordinance. The City Council of the City of 44 Petaluma hereby declares that it would have passed and adopted this ordinance and each 1 and all provisions thereof irrespective of the fact that"any one or more of said provisions be 2 declared unconstitutional, unlawful br'othef vise invalid. 3 4 Section 4. This ordinance shall become effective thirty (30) days after the date of its 5 adoption by the Petaluma City Council. 6 7 Section 5. The City Clerk is hereby directed to publish or post this ordinance or a synopsis 8 for the period and in the manner provided by the City Charter and any other applicable law. 9 10 INTRODUCED and order posted/published this 51h day of March, 2012. 11 12 ADOPTED this day of , 2012 by the following vote: 13 14 AYES: 15 NOES: 16 ABSENT: 17 ABSTAIN: 18 19 20 21 22 23 David Glass, Mayor 24 25 26 ATTEST: APPROVED AS TO FORM: 27 28 .29 3,0 Claire Cooper, City Clerk Eric Danly, City Attorney 31 32 33 34 35 36 37 38 39 40 41 024 Exhibit A to Ordinance 2429 N.C.S. • RECORDING REQUESTED BY AND RETURN TO: Clerk of the Board of Directors Sonoma County Agricultural. Preservation and Open Space District 575 Administration Drive, Room 102A Santa Rosa, CA 95403 DEED AND AGREEMENT BY AND BETWEEN CITY OF PETALUMA AND THE SONOMA COUNTY AGRICULTURAL PRESERVATION AND OPEN SPACE DISTRICT CONVEYING A CONSERVATION EASEMENT AND ASSIGNINGDEVELOPMENT RIGHTS CITY OF PETALUMA ("GRANTOR") and the Sonoma County Agricultural Preservation and Open Space DISTRICT,a public agency formed pursuant to the provisions of Public Resources Code sections 5500 et seq. ("DISTRICT"), agree as follows: RECITALS A. GRANTOR is the owner in fee simple of that certain real property located in Sonoma County and more particularly described in Exhibit A, attached hereto and incorporated herein by this reference ("the Property"). B. In 1990 the voters of Sonoma County approved the creation of DISTRICT and the imposition of a transactions and use tax by the Sonoma County Open Space Authority ("the Autliority). The purpose for the creation of DISTRICT and the imposition of the tax by the Authority was to provide for the preservation of agriculture and open'space through the acquisition of interests in appropriate properties from willing sellers. The District was created and the tax imposed''in order to further the state policy for the preservation of agricultural and open:space'lands„to meet the mandatory requirements imposed on the County and each of its cities by Government Code sections 65560 et seq., and to advance the implementation of the open space elements of their respective general plans. In order to accomplish those purposes, DISTRICT and the Authority entered into a contract-whereby, in consideration of the Authority's financing of DISTRICT's acquisitions, DISTRICT agreed to and did adopt an acquisition program that was in conformance with the Authority's voter approved Expenditure Plan. In 2006, the voters of Sonoma County approved an extension of the transaction and use tax and an update of the Expenditure Plan. The DISTRICT's acquisition program remains in full compliance with that updated voter-approved Expenditure Plan. Paula Lane conservation easement November 28, 2011 as C. On {Date], DISTRICT's Board:of Directors; pursuant to Government Code section 65402 and Sonoma County Ordinance No 5180,:deterniined, by its Resolution No [Nurri)5!], that the acquisition of a conservation easement over the"Property was consistent with•the Sonoma County General,Plan (specifically the Plan's Agricultural Resources and Open Space Elements) because; (1) habitat for multiple wildlifespecies will be protected; (2) a wildlife corridor for movement and connectivity will be preserved; (3) agricultural activities will be supported; (4) opportunities for passive recreational enjoyment and outdoor education related to,agriculture, and wildlife habitat restoration and enhancement will be provided; and (5) the Property's primarily undeveloped character'is an important open space resource, contributing to the county's rural character. By that same resolution, the DISTRICT's Board of Directors determined that its funding of the.Project is consistent with the voter-approved Expenditure Plan. D. DISTRICT has the authority to acquire conservation easements by virtue of Public • Resources Code section 5540 and possesses the ability and intent to enforce the terms of this Easement. THEREFORE, in consideration of the foregoing recitations and of the mutual covenants, terms, conditions, and restrictions herein set forth and other valuable consideration receipt of which is hereby acknowledged, GRANTOR and DISTRICT agree as follows: EASEMENT PART ONE: GRANT OF EASEMENT 1. Grant and Acceptance of Conservation Easement and Assignment of Development Rights. Pursuant to the common and statutory law of the State of California including the provisions of Civil Code sections815'to 816, inclusive,GRANTOR hereby grants to DISTRICT and DISTRICT accepts.a conservation easement over the Property in perpetuity under the terms and conditions set forth herein.("the:Easement"). GRANTOR hereby irrevocably assigns to DISTRICT all development rights•associated with the Property, except those rights which are specifically reserved by GRANTOR through this Easement. 2. Conservation Values. The Property is located in Petaluma'swestem hills, and is primarily composed of annual,grasslands. Critical resources on the/Property (collectively "the Conservation Values"), include natural resources, open space,recreation and education, and agriculture. These Include, but are not limited to the following: 2.1 Natural Resources. The Property consists of annual grasslands, with several mature oaks, and an east-west swale with wetland characteristics that all provide upland habitat and foraging for multiple species. The Property is part of a critical wildlife movement area connecting the southwest Petaluma area to the north and northwest of Petaluma, in proximity to Marin Creek. Special-status species known to use the Property at the time of the conservation easement acquisition include;Atnerican Badger (Takidea taxus), a.California Species of Special Concern. The Property is also important for numerous other wildlife species, including resident and migratory avian,species'that use the Property as a migratory wintering area. These resident and migratory avian species;include the following special-status species: Allen's and Rufous Paula Lane conservation easement November 28, 2011 Hummingbirds, Sharp=shinned;Hawk; White tai]edKite, Cooper's Hawk, Nuttall's Woodpecker, Oak Titmouse, Red-breasted Sapsucker, Snowy Egret, Great Egret, Great Blue Heron, Black- crowned Night Heron.and Long-billed Curlew. 2.2 Open Space Resources, Located at the urban edge, the:Property's primarily undeveloped character is an important open'space resource, contributing to the county's rural character. 2.3 Recreation and Education. The Property'provides opportunity for the public's passive recreational enjoyment of its natural features and the opportunity for outdoor education related to agriculture, wildlife habitat restoration,and enhancement, and the relationship and interdependence of plant life, animal life and human life: The Ring Trail planned for the Petaluma Area is expected to pass adjacent to the Property. 2.4 Agriculture. The Property is located in an historic agricultural area of Sonoma County and Petaluma, representing the remainder of the first faun on Paula Lane, settled in the late 1800s. The Property provides opportunity for multiple agricultural uses, including orchards, row crops, and gardens. 3. Conservation Purpose.: a'is the purpose of this Easement to preserve and protect forever the Conservation Values of the Property, as described in Section 2. This purpose shall hereinafter be referred to as "the,.Conservation Purpose of this Easement." GRANTOR and DISTRICT intend that this Easement Will confine the use of the Property to activities that are consistent with the Conservation Purpose of this Easement and will prohibit and prevent any use of the Property that will materially impair or interfere with the Conservation Values of the Property. GRANTOR and DISTRICT intend that all Conservation Values of the Property will be fully preserved and protected in perpetuity. In the event, however, that the preservation and protection of one Conservation Value becomes irreconcilably inconsistent with the preservation and protection of another Conservation Value, the following priorities shall be followed: preservation and protection of natural resources shall take precedence over preservation and protection of open space resources, which shall take precedence over recreation and educational uses, which shall take precedence over agricultural uses. PART TWO: RESERVED AND RESTRICTED RIGHTS 4. Affirmative Rights of DISTRICT. DISTRICT,shall have the following affirmative rights'under this Easement: 4.1 Protecting Conservation Values. DISTRICT shall have the right to preserve, protect and document in perpetuity the Conservation Values of the Property. 4.2 Property InspectionsDISTRICT shalllhave the:right to enter upon the Property and to inspect, observe, and study the Property for the purposes of(i) identifying the current activities and uses thereon and the condition thereof, (ii) inonitoring the activities and uses thereon to determine whether.they are consistent with the terms, conditions and Conservation Purpose of this Easement, (iii) enforcing the terms, conditions and Conservation Purpose of this Easement, and (iv) exercising its other rights under this Easement. Such entry shall be permitted Paula Lane conservation easement November 28,2011 at least once a year at reasonable times, upon one week prior notice to GRANTOR, and shall be made in a manner that will notkunreasonably interfere with GRANTOR:s:use and quiet enjoyment of the Property pursuant to the terms and conditions of this Easement. Each entry shall be for only so long a duration as is reasonably necessary to achieve the purposes of this Section 4.2, but shall not necessarily be limited to a single physical entry during a single twenty- four hour period. Notwithstanding the foregoing, should DISTRICT's General Manager have a reasonable belief that GRANTOR is in breach of this Easement, DISTRICT shall-have the right at anytime, upon twenty-four hours' prior notice to GRANTOR to enter upon the.Property for the purpose of determining whether such breach has occurred. The rights of entry provided by this Section 4.2 shall extend to the officers, agents, consultants, and volunteers of DISTRICT. Notwithstanding any reasonable belief of DISTRICT that a breach of this Easement is occurring, prior to any entry by DISTRICT into residential dwelling units.on the Property for purposes of inspection, DISTRICT shall provide at least forty-eight (48) hours prior notice to GRANTOR during normal business hours of GRANTOR of DISTRICT's intent-to enter into such dwelling units, absent an emergency requiring immediate action or other exception contained in California Civil Code Section 1954 or any successor statute then in effect relating to notification of tenants inhabiting and/or leasing residential ("Section 1954"). This additional time is to allow GRANTOR to comply with Section 1954. DISTRICT shall limit its inspection of inhabited or leased dwelling units on the Property to inspection during normal business hours except as otherwise provided in Section 1954. 4.3 Enforcement. DISTRICT shall have the right to enforce the rights herein granted and to prevent or,stop, by any legal means, any activity or use on the Property that is inconsistent with the terms, conditions or'Conservation Purpose of this Easement and to require restoration of such areas or features as may be damaged by such activities or uses. 4.4 Approval of Certain Uses. DISTRICT shall have the right to review and approve proposed uses and activities on the Property as more specifically set forth in Section 5 and Section 6. 4.5 DISTRICT Signage. DISTRICT shall have the right to erect and maintain a sign or other appropriate marker ina location on the Property acceptable to GRANTOR, visible from a public road, bearing information,indicating that the Property is protected by DISTRICT and acknowledging the-sources of DISTRICT funding for the acquisition of this Easement. The wording and design of the sign and marker shall be determined by DISTRICT with consent of GRANTOR. Nonsuch sign or marker-shall`exceed thirty-two (32y square feet in size. 'DISTRICT shall be,responsible for the cost of erecting and maintaining such sign or marker. 5. GRANTOR's•Reserved•and.Restricted Rights. Use of the Property shall be confined to activities andusesthat are consistent with the Conservation Purpose of this Easement. Any activity or use that is inconsistent with the Conservation:Purpose of this Easement is prohibited. Without limiting the generality of the'foregoing,the following activities and uses are expressly reserved, restricted or prohibited as set forth below. GRANTOR and DISTRICT acknowledge that the following,list does not constitute an exhaustive recital of consistent and inconsistent activities and uses, but rather (i) establishes specific allowed activities and uses, (ii) establishes specific prohibited activities and uses, and (iii) provides guidance for determining the Paula Lane conservation easement November 28, 2011 a8 consistency of similarractivities-and uses with.this Easement, in accordance with the procedures set forth in Section:6. 5.1 General Requirement's.:for All Uses. 5.1.1 Compliance with Governmental Regulations. All activities and uses on the Property shall be-undertaken in a manner consistent With all applicable federal, state, and local statutes, ordinances, rules, and regulations. 5.1.2 Compliance.with Terms, Conditions and Conservation Purpose of this Easement. All activities and uses on the Property shall be undertaken in a manner consistent with the terms, conditions and Conservation,Purpose of this Easement. 5.1.3 Protection of Conservation Values. All activities and uses on the Property shall be undertaken in a manner reasonably designed to protect and preserve the Conservation Values. 5.1.4 Protection of Soil and Water. No activity-or use on the Property shall be undertaken in a manner thafresults in significant soil degradation or pollution, or significant degradation or pollution of any surface or subsurface waters. 5.1.5 Criteria for Use. (a) Use of the Property shall ensure preservation and protection of the natural resources of the Property in perpetuity; and (b) Public outdoor recreational and educational uses and activities on the Property shall be designed and undertaken in a manner compatible with natural resource protection; and (c) No use or;improvement shall materially impair GRANTOR's ability to provide for public outdoor recreational and educational use of the Property as provided herein; and (d),Structures'and,improvements"shall not result in impervious surfaces on, cumulatively, more than 3% of the Property; and (e) No structure or improvement on the Property shall exceed 24 feet in height. (f) Use of the Property shall preserve opportunities for agricultural use in areas designated,Agricultural.Area in theBaseline.Documentation Report Site Map (Baseline Site Map) as identified'in Section 9. Paula Lane conservation easement November 28, 2011 ael 5.1.6 Notice:and'•Approval Procedures. Whenever-in,this Section 5, prior notice to and approval;by`DISTRICT6is required, such notice shall be given and approval shall be obtained in accordance with,Section 6 of;this,Easement. 5.1.7 Management.Plan. GRANTOR-may develop and implement a Management Plan for the Property. The Management Plan and future updates and amendments will'be subject to review and approval by DISTRICT in accordance with Section 6 of the Easement, The Management Plan shall not be implemented on the Property until the District's approval is obtained. DISTRICT's review and approval of the Management Plan shall be based on the Management Plan's consistency with the terms, conditions and Conservation Purpose of this Easement. Once the Management Plan is approved by DISTRICT, uses and improvements described in that approved Management Plan, and all development necessary'to implement those described uses and improvements, shall be deemed to be consistent with the Conservation Purpose of this Easement and,shall be permitted on.the Property without further notice to or approval by DISTRICT required. All such uses and improvements shall be undertaken in accordance with the terms and conditions of this Easement and in compliance with all applicable laws and regulations. 5.2 Land Uses. Use of the Property is restricted solely to natural resource protection, habitat restoration and enhancement, recreational and educational, agricultural and residential uses as defined in this Section 5:2. Commercial or industrial use of or activity on the Property is prohibited except for those commercial uses expressly reserved in Sections 5.2.4,5.2.5 and 5.2.6. 5.2.1 Natural Resource Protection. GRANTOR may take all actions necessary or appropriate to preserve and protect the natural resources of the Property in accordance with sound, generally-accepted conservation practices. GRANTOR and DISTRICT acknowledge that the Property and its natural features are protected by this Easement and shall not be available to mitigate for the environmental impacts of projects located off site. • 5.2.2 HabitatRestoration and Enhancement. GRANTOR may undertake conservation and habitat restoration and enhancement activities in accordance with Section 5.5.5. 5.2.3, Recreational and Educational Use. GRANTOR shall make the Property available to the public for passive public outdoorrecreational and educational purposes except as forth in Section 5.6. Such uses may include, but are not limited to, walking, picnicking,;gardening, native habitat installation, public educational and passive recreational activities:including but not limited to nature study, placement and use of environmental research support instruments, environmental or outdoor education, habitat restoration training, and other such uses similar in nature and intensity. 5.2.4 Agricultural Use. GRANTOR reserves the right to engage in agricultural uses, as defined below, within the designated Agricultural Area.and'Building Envelope designated on the Baseline Site Map in accordance with sound, generally-accepted Paula Lane conservation easement November 28, 2011 agricultural and soil conse •vation'practices, provided however that no agricultural use shall.be undertaken ilia manner that significantly impairs the long-term agricultural productive capacity of the Property. Agricultuf= l uses shall be limited to the following: a) Livestock for the,Production•of Food and Fiber. GRANTOR reserves the right to breed, raise, pasture, and graze livestock of every nature and description•for'the production of food and fiber. b) Bees, Poultry and Fowl. GRANTOR reserves the right to breed and raise bees, poultry, and other fowl. c) Crops. GRANTOR reserves the right to plant, raise, harvest, and produce agricultural and horticultural crops and products of every nature and description. d) Sale of Harvested Crops and Products. GRANTOR reserves the right to store and sell, including direct retail sale to°the public of crops and products principally harvested and produced on the Property. e) Processing of Crops and Products. GRANTOR reserves the right to process agricultural crops and products principally harvested and produced on the Property. • 5.2.5 Residential Use. GRANTOR reserves the'right to reside on the Property and lease or rent, for residential or other permitted uses, the residential buildings within the Building Envelope as designated on the Baseline Site Map. 5.2.6 Commercial Use. GRANTOR reserves the right to use the Property for commercial uses and activities identified below. Any revenue generated from commercial activities and uses shall be used toward the cost of operating, maintaining, restoring, and enhancing the Property, and towards educational, recreational or agricultural programs that take place on the Property. i) Agricultural uses as defined in Section 5.2.4. ii) Leases or rentals for residential use as defined in Section 5.2:5. iii) Special Events and Fundraising Activities. Subject to prior written notice to DISTRICT, GRANTOR may use the Property for public special events, including but not limited to educational and recreational events, art shows, music and music programs, dance and cultural activities and other similar special events. GRANTOR may also use the Property for fundraising activities that educate the public and promote the preservation and restoration of open space,and natural resources in Sonoma County. Special events and fundraising activities shall occur, in total, no more than six times per year and shall not result in any temporary or permanent alteration of the Property nor Paula Lane conservation easement November 28, 2011 3 f have any detrimental impact on-the natural resources of the Property. No noise amplifieatiomor night lighting is permitted: iv) Concessions. Food and beverage sales and other similar concessions may be operated on the Property in connection with permitted special events and fundraising activities on the day or days of the event. v) Other Ancillary Uses. Subject to prior written DISTRICT approval, GRANTOR May use the Property for other minor ancillary commercial uses found:to be consistent with the Conservation Values of this Easement. 5.2.7 Emergency Activities. In the event of a-natural disaster or similar emergency condition, GRANTOR may undertake temporary activities as may become necessary or appropriate to protect public health or safety of persons in the local area, so long as such activities, to the greatest extent feasible, are undertaken in a manner that does not hinder the Conservation Purpose of this Easement. 5.3 Subdivision.andParcels. GRANTOR and DISTRICT acknowledge and agree that the Property is now and=shall.always remain one legal parcel under one common ownership. GRANTOR shall not divide,the,Property, whether by subdivision, conveyance, lot line adjustment, or any other means, nor shall GRANTOR gain or seek to gain recognition, by certificate of compliance under the Subdivision Map Act or otherwise, of additional parcels which may have previously-been.created on the Property by prior patent or deed conveyances, subdivisions, or surveys, nor shall GRANTOR place or convey any portion of the Property into ownership separate from the whole of the Property. 5.3.1 Exceptions, This prohibition against division of the Property shall be inapplicable to: a) Conveyance to Government or Non-Profit Entity. Subject to prior written approval by DISTRICT, GRANTOR may voluntarily convey a portion of the Property to a government or non-profit entity exclusively for conservation or public accessrpurposes. b) Leases. GRANTOR reserves the right to lease a portion(s) of the Property for the permitted residential, recreational and educational, and agricultural uses described in Section 5.2. 5.32 Historic Parcels. GRANTOR acknowledges that one or more additional historic parcels may exist on the Property, previously created by patent or deed conveyances, subdivisions, loyline.adjustments, surveys, recorded or unrecorded maps or other documents. GRANTOR waives all rights to recognition of such historic parcels, whether through certificate of corripliance'under the Subdivision Map Act or otherwise. 5.4 Structures and Improvements.. GRANTOR may repair, replace, construct, place and,maintain structures and improvements on the Property only as provided below. At no time shall structures:and improvements on the Property result in impervious surfaces on, Paula Lane conservation easement November 28, 2011 3a cumulatively, more than 3%o.ofthe Property: Furthermore,<no;structure or improvement shall exceed:24 feet in height. 5.4.1 Maintenance, Repairi'or Replacement of Structures and Improvements. GRANTOR may maintain, repair or replace structures and improvements existing at the date hereof or constructed subsequently pursuant to the provisions of Section 5.4, as follows: (a) If the maintenance, repair or replacement does not increase the height of the structure or improvement, increase the land surface area it occupies or change its location or function, no notice to or approval by DISTRICT shall be required. (b) Any maintenance, repair or replacement that increases the height of the structure or improvement, increases the land surface:area.it occupies, or changes its location or function shall be+=treated as new construction'and shall be subject to the provisions of Sections'5.4.2 through Section 5.4.9. 5.4.2 Primary.Residences.. There currently exist on the Property two primary residences. Residential'use may continue or the use of the structures may be converted to educational, recreational or agricultural uses. No such structure shall be greater than 2,000 square feet in size, exclusive of garage. All garages, whether attached or detached, shall be subject to Section 5.4.3. In no case shall there be more than two primary residences, whether used for residential or other purposes,located on the Property. 5.4.3 Structures Accessory to Residential Use. Subject to prior written notice to DISTRICT. GRANTOR may place or construct additional accessory structures and improvements reasonably related to permitted residential use of the Property including, without limitation, guest house; garage, and shed. All such"structures must be placed or constructed within the Building Envelope. The total cumulative square footage of the structures accessory to residential use shall not exceed 3,000 square feet. No single structure accessory to the residential use shall exceed 1,000 square feet. 5.4.4 Non-residential Agricultural Structures. Subject to prior written notice to DISTRICT, GRANTORmay place or construct within the Agricultural Area or Building Envelope non-residential accessory structures and improvements reasonably necessary for the permitted agricultural use of the Property, including, without limitation,barns, • sheds, greenhouses, native plant propagation shade houses and small storage facilities. 5.4.5 Structures and Improvements for Recreational and Educational Uses. GRANTOR may construct or place improvements associated with permitted outdoor recreational and educational uses, including, but not limited to: (a) Within the Agricultural Area or Building Envelope, GRANTOR may construct or place trails, pathways, benches, gazebo, bird blinds, interpretive kiosks, drinking fountains, refuse and recycling containers, bicycle racks, public art, and other similar minor improvements without any notice to or approval from DISTRICT. Paula Lane conservation easement November 28,2011 W (b) Within the.Bu l°ding Envelope, GRANTOR;niay construct or;place educational-or interpretive facilities, restrooms, lighting, and other similar significant improvements only with prior written notice'to DISTRICT. (c) Outside of the Agricultural Areaand-Building Envelope, GRANTOR may construct or place benches, bird,blinds, interpretive kiosks and other similar minor improvements located only with prior written approval of DISTRICT. Such improvements shall be located primarily on the perimeter of the Property. 5.4.6 Public Parking and Access Roads. Subject to prior written approval of DISTRICT, GRANTOR may construct, improve and maintain a public parking area within the Building Envelope and access roads as minimally necessary for the permitted uses of the Property. 5.4.7 Fences and Gates. GRANTOR may construct, place and erect fencing and gates only as necessary for-permitted uses of the Property. Fencing must be the minimum necessary for such use and may include hedge rows and other living fences comprised of native plants. All fencing and gates must i) preserve the,scenic values of the Property; and ii) not impede wildlife movement except in cases where necessary to protect the allowed recreational, educational and agricultural uses described in this Easement, and except where such impediment is necessary for management, restoration or enhancement of natural,resources, such as to protect new native plantings. In the event of destruction or deterioration of any fences and gates, whether existing at the date hereof or constructed subsequently pursuant to the provisions of this Easement, GRANTOR may maintain and/or replace such fencing and gates only in accordance with the provisions of this Section 5.4.7.. In the event any fence or gate, or portion thereof, becomes obsolete or unnecessary for the uses described in this Section 5.4.7, GRANTOR shall remove such fencing or gate from the Property, provided, however, that fencing existing as of the date of this Easement may remain. 5.4.8 Utilities and-Energy Resources. GRANTOR may place or construct utilities on the Property only`as follows: (a) Subject to prior written approval of DISTRICT, GRANTOR may expand existing ordevelop or construct new utilities, including but not limited to electric power, septic Or sewer, communication lines, and water collection, storage and delivery systems provided that such utilities are directly required for permitted uses on the Property and are reasonably scaled to serve only those uses. (b) Notwithstanding the limitations of subparagraph (a), subject to prior written notice to DISTRICT, GRANTOR may install above-ground water collection, storage or delivery systemmithin the Agricultural Area or Building Envelope provided that such system is directly-required for permitted uses on the Property and is reasonably scaled to serve only those uses. Paula Lane conservation easement November 28, 2011 I (c) In addition,.subject to prior-writtemapproval of DISTRICT, GRANTOR may place or,construct improvements for the development and utilization of renewable energy resources, including but not limitedEto solar-, wind and geothermal, provided that such area impacted by such improvements cover no more than 2% of the Property, provided that such use.does not hinder GRANTOR's ability to comply with Section 5.1.5. Such improvements remain subject to the impervious surface'limitations of Section 5.4. Notwithstanding the foregoing, GRANTOR may, without notice to or approval of DISTRICT, place or construct solar panels on.the:roofstof existing structures or any future additional structures placed on the Property pursuant to Sections 5.4.2 through 5.4.7, provided that such solar panels do not cause the structure or improvement to exceed the height limitations set forth in those sections. 5.4.9 Signs. GRANTOR reserves the right to construct signs as set forth in this Section 5.4.9 in connection with the allowed uses herein. No sign shall be artificially illuminated. a) Without prior written notice or approval of DISTRICT, GRANTOR reserves the right tox construct or place two signs not to exceed 32 square feet in size in connection'with allowed uses. b) Withoutprior written notice or approval of DISTRICT, GRANTOR reserves the right to construct or place signs less than 6 square feet in size to (i) mark the boundary of the,Property; (ii) provide directional, interpretive and educational information; and (iii)set forth rules or regulations applicable to use of the Property, provided that the size and number of such signs shall be limited to that which is reasonably necessary to accomplish the permitted uses herein, and further provided that such signs are sited and constructed in a manner that does not create a significant visual impact. c) Subject to prior written approval of DISTRICT, GRANTOR may construct or place additional signs necessary orappropriate for allowed uses, provided that such additional signs are sited and constructed in a manner that does not create a significant visual impact. 5.5. Land and Resource Management. All land and.resource management activities shall be designed and implemented in accordance with sound, general ly-accepted conservation practices. 5:5.1 Surface Alteration. Alteration of the;contour of the Property in any manner whatsoever is prohibited,including, but not.limited to, excavation, removal or importation of soil, sand, gravel, rock,peat or sod, except as reasonably necessary in connection with the Uses.allowedurder Section 5 of this Easement In connection with allowed uses, movement of over-50 cubic yards of material in any calendar year is subject to prior DISTRICT approval. Paula Lane conservation easement November 28,2011 5.5.2 Water Resources. Draining, filling,,dredging,diking, damming or other alteration, development:or manipulation of watercourses, subsurface water,springs, ponds and wetlands is prohibited except as,reasonably necessary in connection with (i) the maintenance, replacement, development and expansion of water storage and delivery systems allowed under Section 5.4.8, and (ii) the restoration and enhancement of natural resources allowed under Section 5.5.5. Subject to the limitations of this Section 5.5.2, GRANTOR reserves all rights and entitlements to use of surface and subsurface water as may exist under,state;or federal law. 5:5.3 Mineral Exploration. Exploration for, or development and extraction of, minerals and hydrocarbons by any surface or sub-surface mining or any other method is prohibited. 5.5.4 Fire Management. GRANTOR reserves the right to undertake vegetation managementactivities for:the purpose of fire control provided the techniques used minimize harm to native wildlife and plants and are in accordance with all applicable laws. Fire management methods are limited to: (a) limited brush,removal, limited mowing and limited grazing of the Property, or other methods of similar nature and intensity, without need for notice to or approval from DISTRICT, and (b) prescriptive burning undertaken in a manner consistent with the standards and requirements of the local:fire protection agency having jurisdiction, subject to prior written notice to DISTRICT. The requirement for notice under this Section 5.5.4 may be satisfied by the submission of an annual fire management plan. 5.5.5 Preservation, Restoration and Enhancement. GRANTOR reserves the right to undertake conservation and restoration activities, including, but not limited to, bank and soil stabilization, practices to reduce erosion, enhancement of water quality, plant and wildlife habitat, and activities which promote biodiversity. 5.5.6 Native Tree Removal. Harvesting, cutting, removal or destruction of any native trees is prohibited, except as reasonably necessary (i) to control insects and disease, (ii) to prevent personal injury and property damage, (iii) for the purpose of fire management, in accordance with.Section 5.5.4; and (iv) for natural resource management, including native seed collection and plant propagation for use on the Property as set forth in Section 5.5.5 of this Easement. 5.5.6 Native Vegetation Removal. Removal or destruction of any native vegetation is prohibited, except as reasonably necessary (i) within footprint of permitted recreational and educational structures and improvements,.(ii) to control insects and disease, (iii) to prevent personal injury and property damage, (iv) for the purpose of fire management, in accordance with Section 5.5.4; and (v) for natural resource management, Paula Lane conservation.easement November 28, 2011 3.W including native,seed collection!and plant propagation'for use on the Property as set forth in Section 5.5.5 of this Easement. 5.5.7 Native Animal Removal. Killing, hunting, trapping,injuring or removing native animals is prohibited except (i) under imminent threat:to human life or safety; and (ii) as reasonably necessary topromote or sustain biodiversity in accordance with restoration and enhancement activities in connection with Section 5.5.5, using selective control techniques consistent"with the policies of the Sonoma County Agricultural Commissioner and';other governmental entities having jurisdiction. 5.5.8 Non-Native Plant and Animal Removal. GRANTOR reserves the right to remove or control invasive, non-native plant and animal species (i) to further the Conservation Purpose of this Easement; (ii) to foster the growth of native species and promote biodiversity; (iii) to control insects and disease; (iv) to prevent personal injury and property damage; (v) for the purpose of fire management, in accordance with Section 5.5.4; and (vi) for natural resource management as set forth in Section 5.5.5. Techniques used shall minimize harm to native wildlife and plants and shall be in accordance with all applicable laws. 5.5.9 Off-road Motorized Vehicle Use. Use of motorized vehicles off roadways is prohibited, except when necessary for permitted agricultural, construction, maintenance, emergency access and property management activities. 5.5.10 Dumping. Dumping, releasing, burning or other disposal of wastes, refuse, debris, non-operative motorized vehicles/or hazardous substances is prohibited, except that agricultural products and by-products generated on the Property may be disposed on site, consistent with sound generally accepted agricultural practices. 5.5.11 Outdoor Storage. (a) Materials Required For Permitted Uses. GRANTOR may store materials and supplies required for permitted uses within the Agricultural Area or Building Envelope, provided such storage shall be located so as to minimize visual impacts. (b),Storage of Construction Materials. GRANTOR may store construction and other work,materials needed during construction of permitted structures and improvements on the Property while work is in progress and for a period not to exceeththirty (30) days after completion or abandonment of construction. Construction shall be deemed abandoned if work ceases for a period of 180 days. 5;6. Public Access Limitations. GRANTOR and DISTRICT understand and agree that the Property will be,developed for and will continue to be a public preserve in perpetuity. GRANTOR, however, reserves the,right to exclude the public from the Property on a temporary basis to.the extent necessary for public health or safety or for preservation of the Conservation Values of the Property. Nothing in this Easement shall be construed to preclude GRANTOR's Paula Lane conservation easement November 28,2011 3 • right to grant accessto third parties to the Property consistent with the.terrns, conditions and Conservation Purpose ofithis Easement. 5.7. Easenients. GRANTOR may continue the use of existing easements of record. granted prior to this Easement. The granting of new temporary or permanent easements, and the modification or amendment of existing,easements is prohibited without the prior written approval of the DISTRICT. It is the duty of GRANTOR to prevent the use of the Property by third parties that may result in the creation of prescriptive rights. PART THREE: PROCEDURES AND REMEDIES 6. Notice and Approval Procedures. Some activities and uses permitted by this Easement require that prior written notice be given by GRANTOR to DISTRICT, while other activities and uses permitted by this Easement require the prior written approval of DISTRICT. Unless and until such notice is given or approval is obtained in accordance with this Section 6, any such activity or use shall be deemed'to'be prohibited on the Property. GRANTOR shall use the following procedures to provide-notice to DISTRICT or to obtain DISTRICT's approval. All notices and requests for approval shall include all information necessary to permit DISTRICT to make an informed judgment as to'the consistency of the GRANTOR's request with the terms, conditions and Conservation Purpose of this Easement. 'Forms for notices and requests for approval shall be available at DISTRICT's offices. 6.1 Approval,,Amendments,Revisions and Updates of Management Plan. GRANTOR may prepare;a_Management Plan for the Property to define and guide future use and development of the Property and to streamline DISTRICT approvals under this Easement. For purposes of this Easement, it is that the Management Plan and any amendments, revisions or updates (collectively "Revisions") will be deemed sufficient for its purpose provided the plan identifies (a) all major components of property use (including resource management, recreational, educational, agricultural, and residential), (b)the-nature of each proposed use and its intended location, (c5 all proposed structures, and (d) all actions to be taken to protect natural resources. Pursuant to Section 5.1.7 of this Easement, such.Management Plan and Revisions require DISTRICT's approval prior to their.implementation. DISTRICT's approval shall be based upon its reasonable determination as to whether the Management Plan or Revisions are consistent with,the terms, conditions and Conservation Purpose of this Easement. DISTRICT acknowledges that; in!'light:of the public processes required for development of the.Property for recreation and educational use and natural resource preservation, time is of the essence and DISTRICT's approval shall not be unreasonably withheld or delayed. GRANTOR shall use the following procedure to obtain DISTRICT's approval for the Management Plan and Revisions: 6.1.1 GRANTOR may, at its discretion,,at,any time, submit a.draft Management Plan or Revisions ("Draft Plan") to DISTRICT for.itsreview and tentative approval. DISTRICT shall have forty-five (45) days from the receipt of the Draft Plan, plus fourteen (14)"days from any subsequent or follow up submittal, to review the Draft Plan and either tentatively approve the Draft Plan or notify GRANTOR of any objection thereto. Disapproval or objection, if any, shall be based on DISTRICT's determination that the proposed activity or use is inconsistent with the terms, conditions or Paula Lane conservation easement November 28, 2011 33 Conservation Purpose of this Easement or that GRANTOR'S request is incomplete or contains material inaccuracies. 'DISTRICT's.response, whether tentative approval or objection, shall be"in writing and deliveredtto GRANTOR in accordance with Section 19. If DISTRICT has',`anyobjections^to the Draft Plan,it,shall state such objections in sufficient detail to enable GRANTOR to modify the Draft Plan so as to bring it into compliance with the terms, conditions and Conservation Purpose of this Easement. 6.1.2 In connection with any environmental review of the Management Plan or Revisions under the California Environmental Quality Act ("CEQA") or any successor statute then in effect, GRANTOR shall provide DISTRICTwith notification of and opportunity to comment on any draft enviromnental.document made public under the statute, prior to adoption or-certification of that environmental document. 6.1.3 Prior to adoption_of a final Management Plan or Revisions ("Final Management Plan"), GRANTOR shall submit the Final Management Plan to DISTRICT for its review and approval. If Draft Plan was tentatively approved by DISTRICT and the Final Management Plan is in substantial conformity with the approved Draft Plan, with no material revisions;DISTRICT shall grant approval to the Final Management Plan. If no Draft Plartwastentatively approved.by DISTRICT or if material revision(s) have been made, DISTRICT's approval of the Final Management Plan shall be based solely upon the Final Management Plan's consistency with the terms, conditions and Conservation Purpose of this Easement: In all cases, DISTRICT shall have forty-five (45) days from the receipt of the Final Management Plan, plus fourteen (14) days from any subsequent or follow-up submittal, to review and either approve the Final Management Plan or notifyGRANTOR of any objection thereto. Disapproval or objection, if any, shall be based on DISTRICT's determination that the proposed activity or use is inconsistent with the'terms,.conditions or Conservation Purpose of this Easement or thatGRANTOR's request is incomplete or contains material inaccuracies. DISTRICT's response, whether approval or objection, shall be in writing and delivered to GRANTOR in accordance with Section 19. If DISTRICT has any objections to the Final Management Plan, it shall state such objections in sufficient detail to enable GRANTOR to modify the Final Management;Plan so as to bring it, if possible, into compliance with the terms, conditions-and'Conservation Purpose of this Easement. 6.1.4 Upon.DISTRICT's;approval and GRANTOR's adoption of a-Final Management Plan, all uses and improvements described therein and all development reasonably necessary to implement those described uses and improvements, shall be deemed to be consistent with the terms, conditions and Conservation Purpose,of this Easement and shall be permitted onthe Property with no further notice to or approval by DISTRICT required. All such uses,;development, improvements and activities shall at all times remain subject to the substantive limitations of.Section 5. Any update or amendment to the Final Management Plan shall be subject to District approval. 6.2 Uses/Activities,Requiring Notice or Approval to DISTRICT. In the absence of a Final Management Plan approved by DISTRICT, or for uses and activities not described in a Final Management Planapproved by DISTRICT, the following procedures shall be followed for Paula Lane conservation easement November 28, 2011 39 giving notice or obtaining DISTRICT;approval where such notice or,approval is required by this Easement. Unless and until suchnotice is given or approval is obtained In accordance°with this Section 6.2, any such activity or use shall be deemed';to be prohibited on the,Property. In any instance in which DISTRICT approval is required, DISTRICT'S approval shall be based solely upon its reasonable determination astto whether the activity or use is consistent with the terms, conditions and Conservation Purpose of this Easement. DISTRICT acknowledges that time is of the essence and DISTRICT's approval"shall not be unreasonably withheld or delayed. 6.2.1 Uses/Activities Requiring Notice to DISTRICT. For any activity or use that requires prior writtenrnotice to DISTRICT, GRANTOR shall deliver such notice to DISTRICT at least forty-five (45) days prior to the commencement of such activity or use. That forty-five (45) day time period provides DISTRICT an opportunity to evaluate whether the proposed activity or use is consistent-with the terms, conditions and Conservation Purpose of this Easement before the activity or use is begun. 6.2.2 Uses/Activities.Requiring Prior Approval from DISTRICT. For any activity or use that requires prior written approval from DISTRICT, GRANTOR shall file a request for such approval ("GRANTOR's request") at least forty-five (45) days prior to the intended commencement of such activity or use. DISTRICT shall have forty-five (45) days from the receipt ofa.eomplete.request.for approval to review the request and to, approve, conditionally approve,,disapprove or notify GRANTOR of any objection thereto. Disapproval pr objection, if any, shall be based on DISTRICT's determination that the proposed activity or use is inconsistent with the terms, conditions or Conservation Purpose of this Easement or that GRANTOR's request is incomplete or contains material inaccuracies. If, in DISTRICT's judgment, the proposed activity or use would not be consistent with the terms, conditions or Conservation Purpose of this Easement or the request is incompleteor contains material inaccuracies, DISTRICT's notice to GRANTOR shall inform GRANTOR of the reasons for DISTRICT's disapproval or objection. Only upon DISTRICT's express written approval, given by DISTRICT's General Manager,may the proposed activity or use be commenced, and then only in accordance with the terms and conditions of DISTRICT's approval. 6.2.3 DISTRICT's Failure to Respond. Should.DISTRICT fail to respond to GRANTOR'.s request for approval within forty-five (45) days of the receipt of GRANTOR's request, GRANTOR may, after giving DISTRICT ten (10) days written notice by registered or certified mail, commence an action in a court of competent jurisdiction to`compelDISTRICT to respond to GRANTOR's request. In the event that such legal action becomes necessary to compel DISTRICT to respond and GRANTOR prevails in that action, DISTRICT shall reimburse GRANTOR for all reasonable attorney fees incurred in that action. In the alternative, GRANTOR may commence a.proceeding in arbitration under Section 12. 6.2.4 Uses Not Expressly Addressed: DISTRICT'S Approval. In the event GRANTOR desires to commence an activity or use on the Property that is neither expressly reserved nor expressly prohibited in Section 5, GRANTOR shall seek DISTRICT's prior written approval of such activity or use in accordance with the procedure set forth in this Section 6.2. The exercise of any activity or use not expressly Paula Lane conservation easement November 28, 2011 O reserved in Section 5 may constitute'abreach;of'this Easement and may be subject to the provisions of Section 10. 7. Costs and Liabilities Related to the Property. 7.1 Operations and Maintenance of the Property. GRANTOR agrees to bear all costs and liabilities of any kind related to the operation, upkeep, and maintenance of the Property and does hereby indemnify and hold DISTRICT harmless therefrom. Without limiting the foregoing, GRANTOR agrees.to pay any and all real property taxes, fees, exactions, and assessments levied or imposed by local,state or federal authorities on the Property. GRANTOR further agrees to maintain general liability insurance or adequate self-insurance covering acts on the Property. Except as specifically set forth in Section 8.2 below, DISTRICT shall have no responsibility whatever for the operation of the Property,the monitoring of hazardous conditions thereon, or the protection of GRANTOR, the public, or any third parties from risks relating to conditions on the Property. Except as otherwise provided in Section 8.1, GRANTOR hereby agrees to indemnify and hold,,"DISTRICT harmless from and against any damage, liability, claim, or expense, including attorneys' fees, relating to such matters. 7.2 Hazardous Materials. 7.2.1 No DISTRICT Obligation or Liability. Notwithstanding any other provision of this Easement to the contrary, the parties do not intend and this Easement shall not be construed such that it creates in DISTRICT: a) The obligations-or liabilities of an "owner" or "operator" as those words are defined and used in environmental laws, as defined below, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Mt of 1980, as amended (42 United States Code, sections 9601 et seq.) ("CERCLA"); b) The obligations or liabilities of a person described in 42 United States Code section 9607(a)(3) or any successor statute then in effect; c) The right to investigate and remediate any hazardous materials, as defined below, on or associated with the Property; or d) Any control over GRANTOR's ability to investigate and.remediate any hazardous materials, asdefined below, on or associated with the Property. 7.2.2 Warranty of Compliance. GRANTOR represents, warrants, and covenants to DISTRICT that-GRANTOR's use of the Property shall comply with all environmental laws, as defined below. 7.2.3 Definitions. For the purposes of this Easement: Paula Lane conservation easement November 28,2011 3I a) The term "hazardous materials" includes; but is notlimited to,.any flammableiexplosives, radioactive:materials, hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined.in CERCLA, the Hazardous Materials Transportation Act, as amended(49 United States Code sections 1801 et seq.),'the Resource Conservation.and Recovery Act of 1976, as amended (42 United States Code^sections 6901 et seq.),:sections 25117 and 25316 of the California Health,&Safety Code, and intheregulations adopted and publications promulgated pursuant to them, or any other federal, state, or local environmental laws,,ordinances, rules; or regulations.concerning,the environment, • industrial hygiene or public health or safety now'io'effector enacted after the date of this Easement. b). The term "environmental laws" includes, but is not limited to, any federal, state, local or administrative agency statute, regulation, rule, ordinance, order or requirement relating to environmental conditions or hazardous materials. 8. Indemnification. 8.1 GRANTOR's Indemnity. GRANTOR shall hold harmless, indemnify, and defend DISTRICT, its agents, employees, volunteers, successors and assigns, from and against all damages, liabilities, claims and expenses, including reasonable attorneys' fees, arising from or in any way connected with (i)'injuty to or'the,death of any person, or physical damage to any property resulting from any act, omission, condition orothenmatterrelated to or occurring on or about the Property, except to the extent that such damage, liability, claim or expense is the result of the negligence, gross negligence, or intentional misconduct of DISTRICT (it being the intent of this provision to limit:GRANTOR's indemnity to the proportionate part of DISTRICT's damage, liability, claim or expense,for which GRANTOR is responsible); and (ii) the obligations specified in Section 7; and (in).any approvals given under Section 6. In the event of any claim, demand, or legal coniplaint;against•DISTR'ICT, the right to the indemnification provided by this Section 8:1 shall not apply to any cost, expense, penalty, settlement payment, or judgment, including attorneys' fees,incurred prior to DISTRICT's written notice of such claim, demand, or legal complaint to GRANTOR, unlessGRANTOR has acquired knowledge of the matter by other means, nor to any costs;,expenses, or settlement payment, including attorneys' fees, incurred subsequent to that notice unless such cost, expense, or settlement payment shall be approved in writing by GRANTOR, which approval shall not be unreasonably withheld. 8.2 DISTRICT's;Indemnity. DISTRICT shall hold harmless, indemnify, and defend GRANTOR, its heirs, devisees, successors and assigns, from and against all damages, liabilities, claims and expenses, including reasonable attorneys' fees, arising from or in any way connected with injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property and attributable to DISTRICT, except to the extent that such damage, liability, claim or expense is the result of the negligence, gross negligence, or intentional misconduct of GRANTOR (it being the intent of this provision to limit DISTRICT's indemnity to the proportionate part of GRANTOR's damage, liability, claim or expense for which DISTRICT is responsible). In the event of any claim, demand, or legal complaint against GRANTOR, the right to the indemnification provided by this Section 8.2 shall not apply to any cost, expense, penalty, Paula Lane conservation easement November 28, 2011 gad settlement payment, or judgment, including attorneys'fees, incurred prior id GRANTOR's written.notice,of such claim, demand, or legal complaint to DISTRICT, nor to any costs, expenses,,or settlement payment, including attorneys' fees, incurred subsequent to that notice unless such-cost, expense, or settlement payment shall be approved in writing by DISTRICT, which approval shall not be unreasonably withheld. DISTRICT hereby also agrees to hold harmless, indemnify and defend GRANTOR from and against all.damages,liabilities, claims and expenses, including attorneys'fees, asserted against GRANTOR by any officer, agent, employee, or volunteer of DISTRICT, for personal injury and/or property damage arising out of any inspection or visit to the Property by any such officer, agent, employee or volunteer on.behalf of DISTRICT, except to the extent that such injury is attributable to the negligence, intentional act or willful misconduct of GRANTOR. 9. Baseline Documentation for Enforcement. In order to establish the present condition of the Property, DISTRICT has prepared a Baseline Documentation Report which will be maintained on file with DISTRICT and which is intended to serve as an objective information baseline for monitoring compliance with the terms of this Easement. A copy of the Baseline Documentation Report has been reviewed and approved by GRANTOR. The parties agree that the Baseline Documentation Report provides an accurate representation of the Property at the time of the execution of this Easement. The Baseline Report will be supplemented through periodic monitoring reports as:the-DISTRICT performs its regular monitoring of the Property. 10: Remedies for Breach. 10.1 DISTRICT's Remedies. In the event of violation or threatened violation by GRANTOR of any term, condition or restriction contained in this Easement, DISTRICT may, following notice to GRANTOR, institute a suit to enjoin and/or recover damages for such violation and/or to require the restoration of the Property to the condition that existed prior to such violation. The DISTRICT's notice to GRANTOR shall contain a general description of the condition claimed by DISTRICT to be a violation and shall contain a reasonable and specific cure period by which the violation.is to cease and the Property is to be restored to the condition that existed prior to the-violation. The notice shall be provided in accordance with Section 19. If DISTRICT reasonably determines that circumstances require immediate action to prevent or mitigate significant damage to.the Conservation Values protected by this Easement, DISTRICT (a) may pursue any and all remedies available under law without waiting for the cure period to expire, and (b) shall have the right,upon the giving of.24 hours' notice, to enter the Property for the purpose of assessing damage or threat to the Conservation Values protected by this Easement and determining the nature'of curative or mitigation actions that should be taken. Notwithstanding the foregoing, should DISTRICT's General Manager have a reasonable belief that GRANTOR is in breach of this Easement,DISTRICT shall have the right at any time upon twenty-four-hours' prior notice to GRANTOR to enter upon the Property for the purpose of determining whether such breach has occurred. The rights of entry provided by this Section 4.2 shall extend to the officers, agents, consultants,,and volunteers of DISTRICT, Notwithstanding any reasonable belief of DISTRICT that a breach of this Easement is occurring, prior to any entry by DISTRICT into,residential dwelling units on the Property for purposes of inspection, DISTRICT shall provide at least forty-eight (48) hours prior notice to GRANTOR during normal business hours of GRANTOR of DISTRICT's intent to enter into such dwelling units, absent an Paula Lane conservation easement November 28, 2011 143 emergency'requiring immediate action.or other exception:contained in California Civil Code Section 1954 or any successor statute then in effect relating to notification of tenants inhabiting • and/or leasing residential structures ("Section 1.954") Bus additional1time is to allow GRANTORto com p y' 1 with Section 1954.. DISTRICT shall limit its inspection of inhabited or leased dwelling units on the Property to inspection during normal business hours;except as otherwise providedin Section 1954. DISTRICT's rights under this Section 10 shall apply equally in'the event of either actual or threatened violations of the terms of this Easement. GRANTOR agrees that DISTRICT's remedies at law for any violation of the terms of this Easement are inadequate and that DISTRICT shall be entitled to injunctive relief, both prohibitive and mandatory and including specific performance, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies.Nothing in this Section 10 shall preclude•DISTRICT from seeking such other relief, including damages, to which DISTRICT may be entitled. 10.2 DISTRICT's.Discretion. Enforcement of the terms of this Easement shall beat the sole discretion of DISTRICT, and any forbearance by DISTRICT to exercise its rights under this Easement in the event of violation or threatened violation of any term of this Easement shall not be deemed or construed to.be a waiver by DISTRICT of such term or of any subsequent violation or threatened violation of thesame or any other tern of this-Easement. Any failure by DISTRICT to act shall not,be deemed.a waiver or forfeiture of DISTRICT's'right to enforce any terms or conditions of this Easement in the future. 10.3 Liquidated Damages. Inasmuch as the actual damages that would result from the loss or deprivation of the Conservation Values of the Property caused by a violation by GRANTOR of the terms of-this Easement are uncertain and would be impractical or extremely difficult to measure, GRANTOR and DISTRICT agree that the damages allowed by Civil Code section 815.7(c) shall be measured as follows: a) For an improvement prohibited by this Easement, an amount equal to the product of(i) the market value of the improvement, (ii) the:length of time that the improvement exists on the Property (in terms of years or portion thereof) after notice of violation has been given, and (iii) the then current annual interest rate for post judgment interest; and b) For an activity or change in use prohibited by this Easement,whether or not it involves an improvement, an amount equal to any economic gain realized by GRANTOR because;of the activity:or change in use; and c) For an activity or change in use prohibited by this Easement, whether or not it involves an improvement and where there is no measurable economicgain realized by GRANTOR,the product of(i) the cost of restoration, as set forth in a written estimate by a qualified person selected by DISTRICT, (ii) the length of time that the prohibited activity or use continues (in terms of years or portion thereof) after notice of the violation has been given, and (iii)'the then current annual interest rate for post judgment interest. 10.4 GRANTOR's-Compliance. If DISTRICT, in the notice to GRANTOR, demands that GRANTOR remove.an improvement, discontinue a use or both and claims the damages Paula Lane conservation easement November 28, 2011 allowed byCivil Code section 815.7(c),1hen GRANTOR may mitigate damages by fully complying with DISTRICT's notice within the cure_period provided therein. If GRANTOR so complies, then in the event of litigationbarising out:of the notice, brougftt either by GRANTOR or by DISTRICT, if GRANTOR prevails, then GRANTOR shall be entitled to economic damages, if any, resulting from its compliance with DISTRICT's notice. Neither DISTRICT nor GRANTOR shall be entitled to damages where D ISIRICT has not claimed damages in its notice. 10.5 Remedies Nonexclusive. The remedies set forth in this Section 10.5 are in addition to and are notintended to displace, any other remedy available to either party as provided by this Easement, Civil Codesections 815 et seq. or any other applicable local, state or federal law. 11. Acts Beyond GRANTOR's Control. Nothing contained in this Easement shall be construed to entitle DISTRICT.to bring any action against GRANTOR for any injury to or change in the Property resulting from causes beyond GRANTOR's control, including, but not limited to, fire, flood, storm, and earth movement, or a tortious or criminal act of a third party which GRANTOR could notreasonablyhave prevented, or from any prudent action taken by GRANTOR under emergency conditions to prevent, abate, or mitigate significant injury to the Property resulting from such causes so long as such action; to the extent that GRANTOR has control, is designed and carried out in,such a way as to further the Conservation Purpose of this Easement. 12. Arbitration. If a.dispute•arises between the parties concerning the consistency of any activity or use, or any proposed activity or use with the terms; conditions or Conservation Purpose of this Easement, or any other matter arising under or in connection with this Easement or its interpretation, either party, with the written consent of the other, may refer the dispute to arbitration by a request made in writing upon the other. Provided that GRANTOR agrees not to proceed with any activity or use that is the subject of thedispute pending resolution of the dispute, the parties shall select a single arbitrator to hear the matter. If the parties are unable to agree on the selection of a single arbitrator, then each party shall name one arbitrator and the two arbitrators thus selected'shall_selecta third arbitrator who shalibera retired United States District Court or California Superior'Court judge; provided, however, if either party fails to select an arbitrator within fourteen(14) days of delivery of the request for arbitration, or if the two arbitrators fail to select a third arbitrator within fourteen (14) days after the appointment of the second arbitrator, then in each such instance, a proper court on petition of any party,shall appoint the-second or third arbitrator or both, as the case may be, in accordance with California Code of Civil.Procedure sections 1280:etseq., or any successor statutesthen,in effect. The arbitration shall be conducted inaccordance:with said statute;including,without limitation, the provisions of Section.1283.05 of the Code of Civil Procedure which are incorporated into, made a part of, and made applicable to-any arbitration pursuant to this Section. The Conservation Purpose of this Easement, the terms and conditions of this Easement, and the applicable laws of the State of California shall be the bases for determination and resolution, and ajudgment of the arbitration award may be entered in any court having jurisdiction thereof. The prevailing party shall be entitled, in addition to:such other relief as may be granted, to a reasonable sum as and for all its costs and expenses related to such,arbitration, including, but not limited to, the fees and Paula Lane conservation easement November 28,2011 expenses of the arbitrators, but excluding attorneys' fees, which sum shall be.determined by the arbitrators and any court of competent jurisdiction that may be called upon to enforce or review the award. 13. Condemnation. 13.1 Condemnation. If all or any part of the Property is taken by exercise of the power of eminent domain or acquired by purchase in lieu of condemnation; whether by public, corporate, or other authority, so as to'.terminate this Easement in whole or in part, either GRANTOR or DISTRICT (or both, on such conditions as they may agree) may commence appropriate actions to recover the full value of the Property (or portion thereof) subject to the condemnation or in-lieu purchase and all direct or incidental damages resulting therefrom. Any expense incurred by GRANTOR or DISTRICT in any such action shall first be reimbursed out of the recovered proceeds; the remainder of such proceeds shall be divided between GRANTOR and DISTRICT in proportion to their interests in the Property, as established by Section 13.2. 13.2 Property Interest and Fair Market Value. This Easement constitutes a real property interest immediately vested in DISTRICT. For the purpose of this Section 13, the parties stipulate that, in the event of condemnation of the Property or anyportion thereof, the fair market value of the Property for purposes of just compensation shall be determined as though this Easement did not exist. GRANTOR and DISTRICT shall share the compensation in proportion to their interests in-the condemned Property as agreed upon by them in writing or, in the absence of such an agreement, as ordered by the court in the action recovering the proceeds. In the apportionment of the.proceeds from any eminent domain proceeding, an adjustment shall be made in GRANTOR's favor for any increase in value attributable to improvements made on the Property after the date of,this Easement, provided that such improvements were not made or funded by DISTRICT and further provided that such improvements do not constitute a breach of this Easement. PART FOUR: MISCELLANEOUS 14. Approvals. Whenever in this Easement the consent or approval of one party is required for an act of the other party, such consent or approval shall not be unreasonably withheld, conditioned or delayed. 15. Interpretation and Construction. To the extent that this Easement may be uncertain or ambiguous such that it requires:interpretation or construction, then it shall be interpreted and construed in such a way that best promotes the Conservation Purpose of this Easement. 16. Easement to Bind Successors. The Easement herein granted shall be a burden upon and shall continue as a restrictive covenant and equitable servitude running in perpetuity with the Property and shall bind GRANTOR, GRANTOR'S heirs, personal representatives, lessees, executors, successors, including but not limited to purchasers at tax sales, assigns, and all persons claiming under them forever. The parties intend that this Easement shall benefit and burden, as the case may be, their respective successors, assigns, heirs, executors, administrators, agents, officers, employees, and all other persons claiming by or through them pursuant to the Paula Lane conservation easement November 28, 2011 `'I I 'lp common and statutory law of the State ofCalifornia. .Further, the parties agree and intend that this,Easement creates an easement encompassed within the meaning:of the phrase "easements constituting servitudes upon or burdens to the,property,".as that phrase is used in California Revenue St Taxation Code section 3712(d), or any successor statute then in effect, such that a purchaser at a tax sale will take title to the Property subject to this Easement. 17. Subsequent Deeds and Leases. GRANTOR agrees that a clear reference to this Easement will be made in any subsequent deed, or other legal instrument, by means of which any interest in the Property (including, but not limited to, a leasehold interest) is conveyed and that GRANTOR will attach a copy of this Easement to any such instrument. GRANTOR further agrees to give written notice to:DISTRICT of the conveyance of any interest in the Property at least ten (10) days prior to any such conveyance. These obligations of GRANTOR shall not be construed as a waiver or relinquishment by DISTRICT of rights created in favor of DISTRICT by Section 16 of this Easement, and the failure of GRANTOR to perform any act required by this Section 17 shall not impair the validity of this Easement or limitits enforceability in any way. 18. Warranty of Ownership. GRANTOR warrants that it is the owner in fee simple of the Property, and that on the date it executed this Easement the Property is not subject to any liens or deeds of trust. 19. Notices. 19.1 Method of Delivery. Except as otherwise expressly provided herein, all notices, (including requests, demands, approvals or communications) under this Easement shall be in writing and either served personally or sent by first class mail, postage prepaid, private courier or delivery service or telecopy addressed as follows: To GRANTOR: City of Petaluma Attn: City Manager 11 English Street Petaluma, CA 94952 To DISTRICT: General.Manager Sonoma County Agricultural Preservation and Open Space District 747 Mendocino Avenue, Suite 100 Santa Rosa, CA 95401 Or to such other address as such party from time to time may designate by written notice pursuant to this Section 19. 19.2 Effective Date of Notice. Notice shall be deemed given for all purposes as follows: a) When personally delivered to the recipient, notice is effective on delivery. Paula Lane conservation easement November 28,2011 b) When mailed first class postage prepaid,toithe last address designated by.the, recipient pursuant-to Section 19.1,notice is effective;one business day following:the,date shown on the postmark of the envelope in which'such:notice;ismailed or, in the event<the postmark is not shown or available, then one business day following the date of mailing, A written declaration ofrnailing bkecuted under penalty of perjury by the GRANTOR or DISTRICT or an officer of employee shall be sufficient to constitute proof of mailing. c) When mailed by certified mail with return receipt requested, notice is effective on receipt as confirmed by the return receipt. d) When delivered by overnight delivery with charges prepaid or charged to the sender's account, notice is effective on delivery as confirmed by the delivery service. e) When sent by telex or fax to the last telex or fax number of the recipient known to the party giving notice, notice is effective on-receipt.as long as (i) a duplicate copy of the notice is promptly given by first-class or certified mail or by overnight delivery or (ii) the receiving party delivers a written confirmation of receipt. Subject to the foregoing requirements, any notice given by telex or fax shall be considered to have been received on the neXtbusiness day if it is received after 5 p.m. (recipient's time) or on a non-business day. 19.3 Refused or Undeliverable Notices. Any correctly addressed notice that is refused or undeliverable because of an act or omission of the party to be notified shall be considered to be effective as of the first date that the notice was refused or considered undeliverable by the postal authorities, messenger, or overnight delivery service. 20. Amendment. If circumstances arise under which an amendment or modification of this Easement would be appropriate, GRANTOR and DISTRICT shall be free to jointly amend this Easement, provided that any amendment shall be consistent with the Conservation Purpose of this Easement, shall ensure protection of the Conservation Values of the Property, shall not affect the Easement's perpetual duration and shall be consistent with Public Resources Code section 5540 and any successor statute then in effect. Any suchamendment shall be in writing, executed by GRANTOR and DISTRICT, and recorded in the Office of the Sonoma County Recorder. 221. 'NoForfeiture. Nothing contained in this Easement shall result in a forfeiture or reversion°of GRANTOR'S title in any respect. 22. Termination of Rights and Obligations. A party's rights and obligations under this Easement shall terminate upon transfer of the party's interest in the Property, except that liability for acts or omissions occurring prior to transfer shall survive transfer. 23. Enforceable Restriction. This Easement and each and every term contained herein is intended for the benefit of the public and constitutes an enforceable restriction pursuant to the provisions of Article XIII, section 8 of the California Constitution, California Public Resources Code section 5540, and California Revenue and Taxation Code section 421 et seq., or any successor constitutional provisions or statutes then in effect. Paula Lane conservation easement November 28, 2011 24. Applicable Law,and Forum. This Easement shall be construed and interpreted according to the substantive:law of California, excluding the law of conflicts. Any action to enforce the provisions of this Easement orfor the breach"thereof shall be brought and tried in the County of Sonoma. 25. Pronoun Number and Gender. Whenever used herein, unless the provision or context otherwise requires, the singular number shall include the plural and the plural the singular, and the masculine gender shall include the feminine and neuter. 26. GRANTOR and DISTRICT. Wherever used herein, the-terms GRANTOR and DISTRICT, and any pronouns used in place thereof, shall mean and include the above-named GRANTOR and its heirs, successors,'and assigns, including any persons claiming under them, and the above-named DISTRICT and its successors and assigns, respectively. • 27. DISTRICT's General Manager. Wherever used herein, the term DISTRICT's General Manager, and any pronoun used in place thereof, shall mean and include the General Manager of DISTRICT and his duly authorized representatives. 28. Entire Agreement. This instrument sets forth the entire agreement of the parties with respect to this Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to this.Easement, all of which are merged herein. No alteration or variation of this instrument shall be valid or binding unless contained in a written amendment prepared, executed and recorded in accordance with Section 20. 29. Severability. In the event any provision of this Easement is determined by the appropriate court to be void and unenforceable, all remaining terms and conditions shall remain valid and binding. If the application of any provision of this Easement is found to be invalid or unenforceable as to any particular person or circumstance, the application of such provisions to persons or circumstances, other than those as to which it is found to be invalid, shall not be affected thereby. 30. Estoppel Certificates. DISTRICT shall, at any time during the existence of this Easement, upon not less than thirty (30) days' prior written notice from GRANTOR, execute and ideliver to GRANTOR a statement in writing certifying that this Easement is unmodified and in full force and effect (or, if modified,stating the date of execution and date of recording of the respective-amendment) and acknowledging that there is not, to DISTRICT'' knowledge, any default by GRANTOR hereunder,or, if DISTRICT alleges a default by GRANTOR, specifying such default. DISTRICT's obligation to deliver the statement of certification is conditioned on GRANTOR's reimbursing DISTRICT for all costs and expenses reasonably and necessarily incurred in its preparation as determined by DISTRICT's General Manager. 31. No Liens, Encumbrances, or Conveyances. GRANTOR:warrants that after it has executed this Easement, it will not record any lien, encumbrance, or otherwise convey any right, title, or interest in and to the Property until such time as this Easement has been accepted and recorded by DISTRICT. Paula Lane conservation easement November 28,2011 .49 32. Effective Date. This Easement shall be effective as of the date of its acceptance by DISTRICT pursuant to California Public Resources:Code sections-5500'et seq. IN WITNESS WHEREOF, GRANTOR and DISTRICT have executed this Easement this day ofl `A ';. :` 20 . GRANTOR: CITY OF PETALUMA By: City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney Finance Director Department Director Risk Manager DISTRICT: SONOMA COUNTY AGRICULTURAL PRESERVATION.AND OPEN SPACE Paula Lane conservation easement November 28, 2011 50 DISTRICT 13yt President of the Board of Directors ATTEST: Clerk of the Board of Directors NOTE: ATTACH ACKNOWLEDGMENTS 1787172.1 Paula Lane conservation easement November 28,2011 6I