CC Resolution No. 8781
RESOLUTION NO. 8781
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
DECLARING ITS INTENTION TO SELL SURPLUS REAL PROPERTY
DECEMBER 7, 1992
WHEREAS, the City of Cupertino, hereinafter referred to as "City" is now the owner ofthat
certain real property a portion of which is located at Stauffer Lane and Dorothy Anne Way,
Cupertino, California, commonly known as Seven Springs subdivision, and more particularly
described in Exhibit "A", attached hereto and incorporated herein.
WHEREAS, said property is not needed for any governmental purpose and that it is the judgment
of the City Council of the City of Cupertino, for the best interests of the City, that said property
be sold to the highest responsible bidder or bidders under the authority of Section 37350 et seq.
of the Government Code of the State of California.
WHEREAS, the City has complied with all the legal requirements established for the sale of
surplus property including the requirements specified in Section 54220 et seq. of the Government
Code of the State of California.
NOW, THEREFORE, it is hereby determined and ordered that said property shall be offèred for
sale under the following terms and conditions:
1. BIDDING DATES
The City of Cupertino shall offer for sale two (2) improved residential lots. The bidding
session is to be held on Monday, December 7, 1992 at 7:30 P.M. in the Lower Level
Conference Room of the City Hall, 10300 Torre Avenue, City of Cupertino.
2. WRITTEN BIDS
Written bids shall be presented on the Bid Form as shown in Exhibit "B." Bidders can use
the attached form or obtain additional copies of the Bid Form as noted in Paragraph 13 of
this Resolution. The Bid Form must be received by the City Clerk of the City before 7:30
P,M. on the date of the bidding sessions.
The Bid Form should be completed and placed in a sealed envelope along with the
appropriate deposit as described in Paragraph 5. The outside of the envelope should
state that it is a "SEALED BID" and should also disclose the number oflots to be bid
upon. The bid can be mailed or hand carried to the City Clerk, City of Cupertino, 10300
Torre Avenue, Cupertino, California 95014. Mailed bids should be placed in a second
envelope and addressed accordingly,
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Res, No. 8781
3. MINIMUM BIDS
The minimum acceptable written bid shall be $326,100 for Lot 187, and $375,000 for
Lot 194. All bids submitted must be cash bids. Bids for less than the minimum bid
amount will be rejected.
4. TERMS
Bids shall consist of an unconditional offer to purchase a lot for cash, payable in full, in
cash, cashier's or certified check at the close of escrow. A successful bidder shall be
given three (3) days after acceptance of bids to execute a purchase contract (Exhibit
"D") and thirty (30) days thereafter to close escrow unless extended by written mutual
consent of the parties.
5. DEPOSIT
(a) Amount of Deposit
All submitted written bids must be accompanied by a certified or cashier's check in
the amount of$15,000,00 per lot to be purchased, Said deposit should be made
payable to the City of Cupertino.
(b) Number of Deposits
An individual or entity may submit written bids for one or more lots offered at the
bidding session. The amount of the deposit needed to accompany a
written bide s) should equal $15,000.00 per lot. An individual or entity who is an
unsuccessful bidder with respect to any given bidding round, may apply his/her
deposit to any, subsequent bidding round. If any individual or entity desires to
purchase more than one lot, the submitted written bid should denote the number of
lots desired to be purchased along with a deposit amounting to $15,000.00 for eách
lot which the individual or entity desires to purchase. A bidder who has submitted a
deposit for one lot and is the successful high bidder on one of the offered lots, will
not be permitted to bid on any subsequent lots offered unless the bidder has
tendered additional deposit monies prior to the commencement of the oral bidding
as defined in Paragraph 5( c) of this Resolution. A bidder who has submitted a
deposit on two lots can continue to bid on lots offered until two successful bids
have been made on two lots. All bidders have the right to increase their deposits at
the bidding session in accordance with the terms outlined in Paragraph 5(c) of this
Resolution.
(c) Deposits Required of Oral Bidders
Those individuals or entities planning on participating in the oral bidding but
who have not submitted a written bid with deposit shall be required to tender
prior to the commencement of the oral bidding, a deposit amounting to
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Res. No, 8781
twenty thousand dollars ($20,000.00) per lot to be bid upon. Said deposit
must be in the form of a certified or cashier's check made payable to the City
of Cupertino. If the bidder desires to bid on two lots during the oral bidding, a
deposit in the amount $40,000.00 is required,
All bidders who have submitted a $15,000.00 deposit per lot with a written
bides) which complies with the terms herein, shalllli!1 be required to submit
any additional funds to participate in the oral bidding unless that bidder
desires to increase their deposit monies in order to purchase an additional lot.
(d) Forfeiture of Deposit
In the event a bid is accepted and the bidder fails, within the time allotted herein, to
execute any documents related to the sale, including the purchase contract, or
otherwise does not perform according to the terms of the bid, then said bidder will
forfeit an amount equal to $15,000.00 for each lot successfully bid upon and
subsequently not purchased. The difference, if any, remaining after subtracting the
$15,000.00 per lot forfeiture from the original deposit will be refunded to bidder
upon the detennination that bidder does not desire to consummate a sale.
(e) Return of Deposits
Deposit of unsuccessful bidders will be returned after the City's final acceptance
of the successful bid, but in no case, will such period extend beyond then (10)
days after the bidding session. No interest shall be paid by City on any deposits.
6. TITLE
Title to the property shall be conveyed by Grant Deed subject to all liens,
encumbrances, or other cloud on title which may affect the property. A copy of the
preliminary title report is available at the City Offices, (Department of Public W orb)
10300 Torre Avenue, Cupertino, CA.
7. LOT INFORMATION
A file for Lots 187 and 194, containing a tract map; street improvement plans;
geological reports; preliminary title report; bylaws of Seven Springs Homeowners
Association; Declaration of Covenants, Conditions and Restrictions for Seven Springs
Development; and the Residential Hillside Ordinance is available to the public in the
Public Works Department, Monday-Friday, 8:00 a.m. to 5:00 p.m. Any questions
regarding development requirements may be referred to the appropriate departments:
Building, Planning, or Public Works,
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Res. No. 8781
8, ACCEPTANCE OF BIDS
The accepted bid, this Resolution and exhibits thereto and the executed Purchase Contract
(Exhibit "C") shall constitute the contract of purchase in accordance with the terms
outlined in said documents. The City Council of the City of Cupertino reserves the right
to accept a bid or bids which in it's sole discretion deems to be in the City's best interest.
The City Council of the City ofCupcrtino reserves the right to reject any and all bids,
waive any irregularities, be the sole judge of the responsiveness of the bids and to
determine which bid or bids constitute the greatest return to the City.
9. CLOSE OF ESCROW
The transaction shall be consummated through an escrow to be opened by the buyer
(successful bidder) at Valley Title Co.; 10625 South De Anza Boulevard; Cupertino,
CA 95014. All escrow and other costs including title insurance, any taxes, charges, or
fees assessed by local, state, or federal governments as a result of the subject property
transfer, shall be borne by the buyer.
10. POSSESSION
The City shall turn over possession of the premises to the purchaser at the close of
escrow, The City shall maintain existing insurance coverage on the property prior to
close of escrow. The successful bidder may have reasonable access to the premises
for the purpose of studies related to the development ofthe property prior to the
close of escrow, The successful bidder will hold the City harmless for any damage to,
or loss of, personal property, or personal injury incurred by the successful bidder, or
representatives, agents or employees of the bidder, should such damage, loss or injury
occur on the subject property so long as the City retains ownership and occupancy of
the property.
11. REAL ESTATE BROKERAGE COMMISSIONS
The City agrees to pay a brokerage commission to licensed real estate brokers, in an
amount not to exceed 3% of the purchase price, provided that such commission and
the person to whom it is payable is specified in that bid which is finally accepted by the
City as the highest responsible bid, and provided that the amount of any such bid shall
be determined net of any commission so specified. Such real estate commission shall
be payable out of escrow at close of escrow.
12, ATTORNEY'S FEES
In the event that any legal action or litigation is undertaken by the City to enforce the
provisions of the bid offer or any subsequent written agreement to execute such offer,
the successful bidder agrees to pay reasonable attorney fees incurred by the City.
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Res. No. 8781
13. BIDDING PROCEDURES
The following procedure will be used in conducting the sale of the property herein,
(a) All written bids must be delivered to the City Clerk of the City no later than 7:30 P.M.
on the date of the bidding session. The Clerk will open the written bids at the
commencement of the bidding session which shall be 7:30 P.M. The bidding session
shall be held in Conference Rooms C & D, City Hall.
(b) The Clerk will announce the highest written bid for the first lot. The criteria used to
determine the highest responsible bidder will be the bid which generates the highest net
revenue to the City of Cupertino. (Net revenue is defined as that amount to be paid to
the City after subtracting the brokerage commission, if any, from the bid price.)
( c) Thereafter, oral bids for the first lot will be solicited. The first oral bid shall
exceed the highest written bid by at least $5,000.00, Each subsequent oral bid
must exceed the prior oral bid by at least $1,000,00. Again oral bids may be made.
by parties who have, or who have not, submitted written bids, provided, however,
only those parties who have submitted a deposit either prior to the commencement
of the oral bidding or with a written bid will be allowed to participate in the oral
bidding.
(d) Upon completion of the oral bidding, the highest individual bidder and the second
individual bidder shall immediately cause the bid to be reduced to writing on the
appropriate form (Exhibit nBn).
(e) The Clerk will tentatively accept the high and second highest bid for Lot 187 and
Lot 194, adjourn the bidding session and deliver the two high bids to the City
Council. The City Council, in its sole discretion, will resolve both the method of
sale of the lot being offered in a given round of bidding and the respective
successful bidder. The City Council reserves the right to accept a bid which it
determines to be in the City's best interests. The City Council also reserves the right
to reject any and all bids and call for a new bidding session.
(f) Final acceptance of the high bid for any lot shall be made by the City Council.
The Council will determine which bids are in the best interests of the City.
(g) Upon final acceptance of the highest responsible bid for each lot by the City
Council, the Purchase Contract (Exhibit ncn) for each lot shall be executed
within three days of said acceptance and an escrow shall be established by the
successful bidder at Valley Title Co.; 10625 S. De Anza Boulevard; Cupertino,
CA 95014, Escrow shall close within thirty (30) days from the date of
executing the Purchase Contract. At escrow closing, buyer shall deposit in cash
with said escrow company an amount equal to the bid less deposit plus all
closing costs, loan fees, and any other costs required to close the sale. Upon
close of escrow, the City shall receive the net cash amount as provided by the
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Res. No. 8781
escrow officer and the buyer shall receive a grant deed to the property as
provided in Paragraph 6,
14. REQUESTS FOR ADDITIONAL FORMS AND PROCEDURES
Additional Bid forms and copies of this Resolution which serves as the instructions to
bidders will be forwarded to interested parties by mail or telephone request. Those
interested should write or call:
CITY OF CUPERTINO
Public Works Department
10300 Torre Avenue
Cupertino, CA 95014
Phone: (408) 252 4505
15. PUBLICATION AND POSTING
The City Clerk is directed to cause to be published a notice of intention to sell real
property in a newspaper of general circulation within the City of Cupertino for a period of
four weeks prior to the bidding session and is also directed to post the property with a
copy of said notice at least thirty (30) days prior to the bidding session.
PASSED AND ADOPTED by the City Council of the City of Cupertino, this 2nd dáyof
November, 1992, by the following vote:
MEMBERS OF THE CITY COUNCIL:
AYES:
Dean, Goldman, Koppel, Szabo, Sorensen
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST:
APPROVED:
/s/ Dorothy Cornelius
City Clerk
/s/ Lauralee Sorensen
Mayor, City of Cupertino
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EXHIBIT A
PLAT MAP & DESCRIPTION
All that certain real property situated in the county of Santa Clara, State of
California, described as follows:
All of Lot 194. as shown an TRACT No. 7993, which was filed for
record in the Office of the Recorder of the County of Santa Clara, State of
California, on January 27, 1988 in Book 582 of Maps, page 31 and 32.
Containing: 2.159 Acres, more or less
TRACT
7993
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192
81'4ù
F'F'J;;/?
SCALE: 1" = 1 50'
195
PROSPECT ROAD
SHEET 1 OF 2
EXHIBIT A
PLAT MAP & DESCRIPTION
All that certain real property situated in the Caun ty of Santo Claro, State
of California, described os follows:
All of lot 187 os shown on TRACT No. 8067, which was
filed for record in the Office of the Recorder of the County of Santo Claro,
State of California, on February 25. 1988 in Book 583 of Mops. page 47,
48, 49, 50 and 51.
TRACT
NO,
8067
SEVEN
SPRINGS
OR\\j(
LN
SCALE: 1"=150'
SHEET 2 OF 2
Res. No. 8781
EXHIBIT "B"
BID FORM - A PORTION OF SEVEN SPRINGS SUBDIVISION
TO: CITY OF CUPERTINO
City Clerk's Department
10300 Torre Avenue
Cupertino, CA 95014
I. THE UNDERSIGNED HEREBY PROPOSES AND OFFERS TO PURCHASE
LOT(S) OF IMPROVED RESIDENTIAL PROPERTY WITHIN TRACT
NO. COMMONLY KNOWN AS "SEVEN SPRINGS SUBDIVISION",
CASH BID PRICE:
Bidder hereby tenders $
purchase of lots.
representing a deposit or deposits for the
If the successful bidder fails to complete the purchase in accordance with the
specified terms, $15,000 of the deposit shall be forfeited.
2. Bidder's Name
(Principal)
Entity
Individual, Partnership, Corporation
Address
Street
City
State
Zip Code
3. Telephone Number: Day
Night
4. The undersigned bidder submits this bid subject to all the terms and conditions of the
Resolution ofIntention to Sell Surplus Real Property,
dated 1992, and agrees to be bound thereby.
Signature:
If partnership and/or corporation:
Title:
State ofIncorporation:
B-1/2
Res. No. 8781
BROKER'S COMMISSION
The following information should be completed if a real estate commission is to be paid to
a duly licensed real estate broker in the event this offer is accepted, Such commission is to
be deducted from the stated cash bid price to determine the net bid.
If this bid is finally accepted and sale of the propery is consummated in accordance with
the bid as provided in the resolution, City shall pay a commission of
Dollars ($ )
Said commissiion shall not exceed three percent (3%) of the cash bid price stated herein.
The commission is to be paid in accordance with the terms of the Resolution dated
Real Estate Broker's Signature:
Real Estate Broker's Name:
Broker's Address:
Bidder's Signature:
Bidder's Name:
If Applicable:
Company Name:
Title:
B-212
Res. No. 8781
EXIDBIT "C"
PURCHASE CONTRACT RECEIPT FOR DEPOSIT
AND ESCROW INSTRUCTIONS
This Agreement dated this
day of
, 1992, is made by and
between the City of Cupertino ("Seller") and
("Buyer")
RECITALS:
1, Pursuant to the appropriate provisions of the California Government Code, Buyer has
made a bid to purchase the property described herein and Seller has accepted such bid.
2. Seller has received from Buyer the sum of
Dollars, $ ("Deposit") evidenced by a certified or
cashier's check payable to the CITY OF CUPERTINO, as a deposit on account of
purchase of that certain real property situated in the City of Cupertino, County of
Santa Clara, State of California, described as (Lot(s)
("Property") of Tract No, as shown on the map filed , 19-,-
in Map Book . Pages
NOW, THEREFORE, the parties hereto agree as follows:
1. Agreement of Purchase and Sale
Subject to the terms and conditions as set forth herein, Seller shall sell and Buyer shall;
purchase the property for a total purchase price of $
2. Payment of Purchase Price
The purchase price for the property shall be paid as follows:
2.1 Buyer has already paid Seller a deposit of $
2,2 No later than thirty days after this agreement is executed Buyer shall deposit
with the Escrow Holder for delivery to Seller at close of escrow, cash or a
certified or cashier's check made payable to Valley Title Company in an
amount of $ (the full amount of the purchase
price less deposit) plus closing costs necessary to close escrow, In the event
that Buyer fails to deposit the total cash required within the time specified,
Seller shall retain $15,000.00 of the previously paid deposit. The time
specified may be extended by mutual agreement between Buyer and Seller.
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Res. No. 8781
3. The Closing of Sale Transaction Through Escrow
3, I The purchase and sale of the property shall be completed within thirty (30)
days after executing this Purchase Contract Receipt for Deposit. The closing
of the sale shall be through an escrow to be opened at the following title
company ("Escrow Holder"):
Valley Title Co.
10625 S. De Anza Boulevard
Cupertino, CA 95014
3.2 Instruments in respect to the purchase and sale shall be deposited in escrow by
Buyer and Seller as follows:
(a) Seller shall deposit, prior to close of escrow, a grant deed duly executed by
Seller in recordable form.
(b) Buyer shall deposit cash or a certified or cashier's check for the amount
required to close escrow pursuant to Paragraph 2.2 of this agreement.
8. Notices
Any notice, request, demand, instruction or other communication to be given to any .
party hereunder shall be in writing and delivered personally, or sent by registered or
certified mail as follows:
Seller: CITY OF CUPERTINO
City Clerk
10300 Torre Avenue
Cupertino, CA 95014
Buyer:
Notice shall be deemed to have been given when delivered personally or two days after
mailing to the above address if mailed. No notices shall be effective unless and until
persons entitled to notice have been notified in accordance with the foregoing, The
addresses for purposes of this paragraph may be changed by giving written notice of
such change in the manner provided herein for giving notice. Unless and until such
written notice is received, the last address and addressee as stated by written notice, or
as provided herein if no written notice of change has been sent or received, shall be
deemed to continue in effect for all purposes hereunder.
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Res. No. 8781
9. Further Assurances
Buyer and Seller agree that at any time, or from time to time after the execution of this
Agreement and whether before or after the close of escrow they will, upon request of
the other, execute and deliver such documents and do such further acts and things as
such party may reasonably request in order to effect fully the purposes of this
Agreement.
10, Survival of Covenants
Each of the covenants and agreements contained herein shall, to the extent applicable,
survive the close of escrow.
11. Successors and Assigns
This Agreement shall be binding upon and inure to the benefit of each of the parties
hereto, and to their respective successors and assigns.
12. Captions
The captions in this Agreement are inserted only as a matter of convenience and for
reference and in no way define the scope or extent of this Agreement or the
construction of any provisions herein or of any document or instrument referred to
herein.
13, Time
Time is of the essence in this Agreement.
14, Entire Agreement; Amendments
This Agreement embodies the entire Agreement and understanding between the parties
relating to the subject matter hereof and may not be amended, waived or discharge
except by an instrument in writing executed by the party against which enforcement of
such amendment, waiver or discharge is sought. This Agreement supersedes all prior
agreements and memoranda. The invalidity of anyone of the covenants, agreements,
conditions or provisions of the Agreement, nor any portion thereof, shall not affect the
remaining portions thereof or any part hereof and this Agreement shall be construed as
if such covenant, agreement, condition or provisions had not been inserted herein.
15. Attorney's Fees
Should any suit be brought to enforce the terms of this Agreement or any obligation
herein expressed, the prevailing party shall be entitled to reasonable attorney's fees,
costs and expenses herein incurred,
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