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CC Resolution No. 9311 RESOLUTION NO, 9311 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO DECLARING ITS INTENTION TO SELL SURPLUS REAL PROPERTY May 15, 1995 WHEREAS, the City of Cupertino, hereinafter referred to as "City" is now the owner of that certain real property which is located at 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 ofthe City of Cupertino, for the best interest 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 offered for sale under the following terms and conditions: 1. BIDDING DATE The City of Cupertino shall offer for sale one (1) improved residential lot. The bidding session is to be held on Monday, May 15, 1995, at 7:30 P,M, in the Lower Level Conference Room (C & D) 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 "8." 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 session. 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". 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, Resolution No. 9311 3, MINIMUM BID The minimum acceptable written bid shall be $325,000 for Lot 187. 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 "C") 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 cashier's check in the amount of$15,000.00, Said deposit should be made payable to the City of Cupertino, (b) 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 twenty thousand dollars ($20,000,00), Said deposit must be in the form of a certified or cashier's check made payable to the City of Cupertino, All bidders who have submitted a $15,000,00 deposit with a written bid which complies with the terms herein, shalllliÚ be required to submit any additional funds to participate in the oral bidding. (c) 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 the lot successfully bid upon and subsequently not purchased, The difference, if any, remaining after subtracting the $15,000,00 forfeiture from the original deposit will be refunded to bidder upon the determination that bidder does not desire to consummate the sale, 2/6 Resolution No. 9311 (d) 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 ten (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 Works) 10300 Torre Avenue, Cupertino, CA. 7, LOT INFORMATION A file for Lot 187, 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 (777-3228), Planning (777-3308), or Public Works (777-3354). 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 which at its sole discretion deems to be in the City's best interest, The City Council of the City of Cupertino 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 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, 3/6 Resolution No. 9311 The successful bidder may have reasonable access to the premises for the purpose of studies related to the development of the property prior to the close of escrow, The successful bidder will hold the City harmless for any dantage 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 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. 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 arutounce the highest written bid for Lot 187, 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 Lot 187 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. 4/6 Resolution No. 9311 (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 "B"), (e) The Clerk will tentatively accept the high and second highest bid for Lot 187, adjourn the bidding session and deliver the two high bids to the City Council. The City Council, at 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 Lot 187 shall be made by the City Council. The Council will determine which bid is in the best interests of the City, (g) Upon final acceptance of the highest responsible bid for Lot 187 by the City Council, the Purchase Contract (Exhibit "C") 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 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 serve 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) 777-3354 IS, 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. 5/6 Resolution No. 9311 PASSED AND ADOPTED by the City Council of the City of Cupertino, this 3rd day of April, 1995, by the following vote: VOTE MEMBERS OF THE CITY COUNCIL AYES: Bautista, Burnett, Koppel, Sorensen, Dean NOES: None ABSENT: None ABSTAIN: None APPROVED: /s/ Wally Dean Mayor, City of Cupertino ATTEST: /s/ Kimberly Smith City Clerk 616 EXHIBIT "B" BID FORM - A PORTION OF SEVEN SPRINGS SUBDIVISION TO: CITY OF CUPERTINO City Clerk's Department 10300 Torre Avenue Cupertino, CA 95014 1. THE UNDERSIGNED HEREBY PROPOSES AND OFFERS TO PURCHASE LOT 187, AN IMPROVED RESIDENTIAL PROPERTY WITHIN TRACT NO, 8067 COMMONLY KNOWN AS "SEVEN SPRINGS SUBDIVISION", CASH BID PRICE: Bidder hereby tenders $ of Lot 187, representing a deposit or deposits for the purchase If the successful bidder fails to complete the purchase in accordance with the specified terms, $15,000 of the deposit shall be forfeited, 2. Bidder's Name (Principal) Entity Individual, Partnership, Corporation Address Street City State Zip Code 3, Telephone Number: Day Night 4, The undersigned bidder submits this bid subject to all the terms and conditions of the Resolution ofIntention to Sell Surplus Real Property, dated 1995, and agrees to be bound thereby, Signature: If partnership and/or corporation: Title: State ofIncorporation: 8-1/2 BROKER'S COMMISSION The following information should be completed if a real estate commission is to be paid to a duly licensed real estate broker in the event this offer is accepted, Such commission is to be deducted from the stated cash bid price to determine the net bid. If this bid is finally accepted and sale of the property is consummated in accordance with the bid as provided in the resolution, City shall pay a commission of Dollars ($ ), Said commission 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: S-2/2 EXHIBIT "C" PURCHASE CONTRACT RECEIPT FOR DEPOSIT AND ESCROW INSTRUCTIONS This Agreement dated this day of , 1995, 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 187 ("Property") of Tract No. 8067 as shown on the map filed February 25,1988, in Map Book 583, Pages 47-51. NOW, THEREFORE, the parties hereto agree as follows: I. 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) ~ 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, C-1/3 3. The Closing of Sale Transaction Through Escrow 3.1 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 Instruntents 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. 4, 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. C-2/3 5, 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. 6. Survival of Covenants Each of the covenants and agreements contained herein shall, to the extent applicable, survive the close of escrow, 7. 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. 8. 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. 9, Time Time is of the essence in this Agreement. 10, 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 discharged 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. II. Attorney 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 fees, costs and expenses herein incurred. C-3/3 EXHIBIT A PLAT MAP & DESCRIPTION All that certain real property situoted in the County of Santa Clara, State of Californio, described as follows: All of Lot 187, as shown on TRACT No, 8067, which was filed for record in the Office of the Rec'order of the County of Santa Clara, State of California, on February 25, 1988 in Book 583 of Maps, page 47, 48, 49, 50 ond 51. TRACT ~ oRI'Jt: NO. 8067 SPRINGS ORCHARD SPRING LN ~ ~ SCALE: 1"=200' 189 SHEET l' OF f