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HomeMy WebLinkAbout38-10 RESOLUTION NO. 38-10 RESOLUTION OF INTENTION TO CREATE EASTBROOK SUBDIVISION TRACT 5801 CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1 FOR THE PURPOSE OF FINANCING SEWER IMPROVEMENTS WHEREAS,pursuant to the Agreement by Owner and or his Successors in Interest to Construct Future Sanitary Sewer Improvements dated November 10, 1976, owners of property in the Town's Eastbrook Subdivision Tract 5801 ("Subdivision") are obligated to construct a new sanitary sewer line; and WHEREAS, the public health and environment is best protected by the construction of upgraded,permanent and more environmentally appropriate sanitary sewer improvements to divert flow away from Permanente Creek; and WHEREAS, pursuant to those certain Loan Agreements between the Town of Los Altos Hills and participating property owners within the Subdivision,the Town agreed to loan to the owners of the properties identified in this Resolution,the funds required to install the sanitary sewer improvements; and the participating property owners agreed and willing consented to an assessment pursuant to California Streets and Highways Code, Sections 5898.10 et seq.; and WHEREAS,the City Council determines that it is convenient and advantageous to designate an area within the Subdivision, within which property owners may enter into contractual assessments for the financing of the sanitary sewer improvements. NOW, THEREFORE, based on the entirety of the record before it,the City Council of the Town of Los Altos Hills does RESOLVE as follows: 1. The foregoing recitals are true and correct and made a part of this Resolution. Attachments to this Resolution, including Exhibit A, "Proposed Boundaries of Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1" are incorporated into this Resolution by reference, as if set forth fully herein. 2. By separate Resolution, the City Council approved the following improvement under the authority of the Municipal Improvement Act of 1911, as amended,to wit: construction and installation of a sanitary sewer line on Eastbrook Avenue to divert flow towards the existing sanitary sewer manhole at Eastbrook Avenue and Mora Glen Drive, connecting the homes or lots in the Subdivision to the sewer main provided by the Town to the proximate boundaries of the Subdivision. 3. The City Council hereby approves the proposed boundaries for the Contractual Assessment District, which would include seven (7)participating parcels, as shown on the map entitled, "Proposed Boundaries of Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1" (attached as Exhibit A and incorporated herein by reference) and identified by the following County of Santa Clara Assessor Parcel Numbers (APN) and addresses: (1) APN 331-24-010 (23275 Eastbrook Court) (2) APN 331-24-011 (23255 Eastbrook Court) (3) APN 331-24-012 (23235 Eastbrook Court) (4) APN 331-24-013 (23215 Eastbrook Court) (5) APN 331-24-014 (23195 Eastbrook Avenue) (6) APN 331-24-015 (23175 Eastbrook Avenue) (7) APN 331-24-017 (23165 Eastbrook Avenue) 4. The City Council intends to make contractual assessment financing available to participating parcels within the described district in accordance with the benefit to be received by each parcel of land, respectively, from the sanitary sewer improvement. The improvement will not confer any special benefit upon any publicly owned land. Hence, there shall be omitted from assessment district all public streets, alleys, and places and all land belonging to the United States,the State of California, Santa Clara County, and the Town of Los Altos Hills now in use in the performance of a public function. To the extent that there is any conflict between this Section 4 and the boundaries illustrated in Exhibit A,this Section 4 shall control. 5. The Town has provided loan financing for the improvements, subject to availability of funds and any limitation on the commitment or expenditure of funds for the Contractual Assessment District Program as may be established from time to time by the City Council. Through acceptance of the loan, and execution of those certain Loan Agreements between the Town of Los Altos Hills and participating property owners, the participating property owners have expressly agreed and willfully consented to repayment of the loans through assessments on the properties of the participating parcel owners, over the period and at the interest rate specified in the Loan Agreements. 6. The procedure for the collection of assessments will be the placement of assessments on participating parcel owners' tax bills. The first assessments may be placed on owners' tax bills in fiscal year 2010-2011. 7. The City Council appoints Richard Chiu, City Engineer/Public Works Director, as Engineer of Work for this project to prepare the report required by Section 5898.22 of the California Streets and Highways Code. 8. A public hearing shall be held on this matter at 6:30 p.m. on Friday, August, 6th, 2010, at 26379 Fremont Road (Council Chambers), Los Altos Hills at which interested persons may object to or inquire about the proposed program or its terms. This date is tentative and may be modified in the future. 9. The City Council independently finds that this project is exempt from the California Environmental Quality Act(CEQA)under CEQA Guidelines Section 15061(b)(3), since it can be "seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." This certainty is based on the City Council's past experience with numerous sewer construction projects of this nature, the relatively short distance involved, and the impact-limiting construction specifications that would be required of the project. PASSED AND ADOPTED this 15th day of July, 2010 by the following vote: AYES: Mayor Breene Kerr, Mayor Pro Tem Larsen, Councilmember Mordo, Councilmember Summit and Councilmember Warshawsky NOES: None ABSENT: None ABSTAIN: None Breen err ayor ATT _ Karen Jost, 0 EXHIBIT A Proposed Boundaries of Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 Sla i317t�/lSl vN "ice-�G�' S��'1 C o (� P��S�1�� �t^7�STQtC�' Nv►1�.1F�ti2 2a'l� - 1 i JUNIPERO SERRA FREEWAY (HIGHWAY 280) ....`�rJneY[At�°�p�gY 0J pi/� NfJO•b.R/+A7EAd ry!� J'SyE4r- `r re ReuLltCUIMYUJ111- . ���,���s�V'�� \I- 7 4 4 P ' 1000614. P/ n#)l D�� o KRhibDY.�to. a _xYJ�t_43tu �$1 j .*•r 0/�cl���/,,,R +•'�rY�� OCR;, tr „• i.d 5 �1t8' +?6 • �Et+`�� I �e `�a qFh�. MONO&, 1 �`�,+� a•,yS r~ ]( t' '�4 �'.J A // ,s"'�y+� 1 C f 0l9W.Ad ,r3 9 `�aP I +e6 .`perms r 1s* r ��ar 2� c�aQ•A7rJ,� � � s.at 9. 1° caS.• tr4"/ man.[r 'w,wvJwFa:. �. �1r /i} � —1 9'IGOx]IL�� IOG tf• LYW�a4A/):l �..--�.�L Yi7.11'er[Q�_• LST _^— '-r y� - .� .�ji[ •. 4—» xJr� .1�1i 11 00 0.1YJL1T4!509' EA-STBR00)C-^AVENUE x6c�croon ~a a � µ-ms /7pfva [ ' 4n)6TWTgomc AVMI� 'l[nL![[�[Y[J/wt 1�1tWM(JI,J OI.f°/) /[ '•H�t A1/ ! _ ,••EDiu1{FPSAYan+WalYl.[l ,VJiJ7Yl/-••" "Ybw/:/f. s i J4IUC°'q<[t Y W![KfINGIIL n AMYJO[.f0 '•[ (ww°Ot1pRWwY /[�"C[l[a4[[rf 'JyIJnpF.4ftllf �� BASIS-OF BEARINGS NOSES AND LEGEND TRACT NO 5801 iAf drmby KfE•lfb0'A°//rfr cmin�in.[/Fo#>•,Yoe2 Rvmuf a/ds/.,:o mr!d'cJ°„6rrmrJ.Sam afJtfn!/almkAk /)f(O M�Y/[! ./JIOII�.'IfpJ//f 7dI drOea�Y✓v/b[J�i1/Q�{V}�•[r/fd1�Al1�YErE/f� '61{ vJAJrawMd"` AP1bW EASTBR00lG ACRES 1/AI/J S/MSIE[f Jvtdmun Jc4E N[k bn�J'a+ &,A fl&Ji#dw°Ef/[f a/p[yf ls,.rm,/Ja cera Eseefy o Erlhah,rx+d m.,,L J°We.rJmw.n f Ruadi e,s hon[silk d[ti :fdt[n#gr Rrdj}„ ® ANlm/ap/Aw:y JfSn{u+rNaraaa/arhEr JJf BEING A PORTION CFLOT5 51 ANDA OF THE'MAP OF THS Wil"w/n Hr! dsiNr,d°&if aGfMHixa/r/ SUBDIVISION OF TR9'9ALE RANON'FILED IN BOOK'1'OFMAPS AT 0 6[r2rrSr n/L(rdu/1[a/vMJr/ FADES 6S AND 45,BANTA CtARA MUM RECORDS. NOTE SME..J7MW A—L10EAMW ..SANTA CLARA COUNTY,CALIFORNIA h�or/°/fir Mtn[[,[fdnkn nJ!/r,RIoJ)d f/,IAI 5.9! ."Afce FEWfl furfur - /NMlwflih)J4tl RJmWNdb4[!o,[r6yow/b rrbj fa• eJ.r.[PUF(ft fiLVRE FLJFHEYT PAUL E.NK AND ASSOCIATES,INC. mir a! /w eo+/uf[[w[Wl 6of'°!'IJr vk�u, /�J•EE°f'y OIVIL ENGINOWACEERS-SUR146YORS A,e,e,YAk o/m dalr,[.ntEf/ae. 220 STATE STREET SUITE'E' +7 W, LDS ALTOS,CALIFORNIA,M22 �T 6 Fwe S OR /L'S+nK .y/� Pa6fy— 7,66 SHSST 2 OF 2 5929TS 3147 a6 — - P>�osEn � ac' i race✓!uD�7 b.9�TN«.1 - GOWW-ArCMAgL. RSSA;SSM<- r ,DtsTQ4c,-r No. 2(-lo-1 I Exhibit B Boundaries of Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 VTth3TAiE 280 O 0 23241 023255 . 23235 . 23275 331-24-011 331-24-012 0 331-24-010 23175 w I- p 331-24-015 > 23195 OY 5 0 O 331-24-014 11311 g 23305 E= 331241013 5 o331-24-009 m ID co 23165 / W 331-24-017 --__________j EASTBROOK AVENUE �:... , ,.., : 23141 11185 23300 23260 INN 23170 11170 23160 23215 __ SCALE: NTS Los ALTOS HILLS Town of Los Altos Hills lieEastbrook Subdivision Tract 5801 Contractual Assessment District 2010-1 CALIFORNIA Boundary Map Exhibit C Descriptions of Parcels included in the Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 Description of Parcels Property Owner: Romulo D. Buenviaje Legal Description: 23275 Eastbrook Court, Los Altos Hills, CA 94024 Lot Number in Tract 5801 [See Exhibit B to Resolution]: Lot# 2 APN: 331-24-010 Property Owner: Irene Amdur QTIP Trust Legal Description: 23255 Eastbrook Court, Los Altos Hills, CA 94024 Lot Number in Tract 5801 [See Exhibit B to Resolution]: Lot# 3 APN: 331-24-011 Property Owner: Edward and Raylene Pak Legal Description: 23235 Eastbrook Court, Los Altos Hills, CA 94024 Lot Number in Tract 5801 [See Exhibit B to Resolution]: Lot# 4 APN: 331-24-012 • Property Owner: 1999 Trust for Daniel and Isabel Brown Legal Description: 23215 Eastbrook Court, Los Altos Hills, CA 94024 Lot Number in Tract 5801 [See Exhibit B to Resolution]: Lot# 5 APN: 331-24-013 Property Owner: Miao Yeng H. Yeh Revocable Trust Legal Description: 23195 Eastbrook Avenue, Los Altos Hills, CA 94024 Lot Number in Tract 5801 [See Exhibit B to Resolution]: Lot # 6 APN: 331-24-014 Property Owner: Rao and Karunasree Cherukuri Legal Description: 23175 Eastbrook Avenue, Los Altos Hills, CA 94024 Lot Number in Tract 5801 [See Exhibit B to Resolution]: Lot# 7 APN: 331-24-015 Property Owner: Boon & Irene Beng Hoe Legal Description: 23165 Eastbrook Avenue, Los Altos Hills, CA 94024 Lot Number in Tract 5801 [See Exhibit B to Resolution]: Lot# 8 APN: 331-24-017 1487265.1 Exhibit D Engineer's Report [Prepared pursuant to California Streets and Highways Code, § 5898.22] ENGINEER'S REPORT FOR THE TOWN OF LOS ALTOS HILLS EASTBROOK SUBDIVISION TRACT 5801 CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1 WS9M'1TOSIIILLS 10.1'411*1-;" _. _CAL1JFOIUIIA Prepared by: Town of Los Altos Hills Santa Clara County, California July 28, 2010 Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 TOWN OF LOS ALTOS HILLS Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 ENGINEER'S REPORT CONTENTS Page No. Town Directory ii Introduction 1 Boundary of Contractual Assessment District 2 Property Owner Contracts 3 Voluntary Contractual Assessment Policy 4 Capital Plan 5 County Fees 6 Appendix A—Boundary Map 7 Appendix B—Contracts 8 i Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 TOWN OF LOS ALTOS HILLS Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 TOWN DIRECTORY City Council Mr. Breene Kerr Mayor Mr. Rich Larsen Mayor Pro Tern Mr. Dean Warshawsky Council Member Mr. Jean Mordo Council Member Ms. Ginger Summit Council Member Town Staff' Carl Cahill, AICP City Manager Richard Chiu, Jr, P.E. City Engineer/Public Works Director Karen Jost City Clerk Nick Pegueros Finance Director Steven Mottos City Attorney ii Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 TOWN OF LOS ALTOS HILLS Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 INTRODUCTION Background Information Pursuant to a 1976 Agreement by the Owner and his Successors in Interest to Construct Future Sanitary Sewer Improvements,the eight property owners in the Subdivision are obligated to construct sewer improvements. Notice was given to the property owners of the necessity to design and construct a new sewer line to divert the existing flow on Eastbrook Avenue east of Mora Glen Drive towards West Loyola, away from the siphon crossing Permanente Creek. The property owners expressed interest in obtaining a loan from the Town to construct the improvements. On September 24, 2009, the City Council authorized the City Manager to enter into loan or repayment agreements with each of the property owners for reimbursement of the project cost. One property owner paid their pro rata share of the cost in full and the remaining seven property owners entered into loan agreements,which established the repayment of the loan amount with interest accruing at the rate of three percent(3%)per annum within fourteen years. As a result,property owners voluntarily consented to a contractual assessment district,pursuant to Streets and Highway Code, Section 5898.10, et seq. The City Council adopted a Resolution of Intention on July 15, 2010 to begin the process of forming an assessment district. As required by the Streets and Highway Code, Section 5898.10, et seq, this Engineer's Report contains a map showing the boundaries of the territory within the voluntary contractual assessment district,the contracts specifying the terms and conditions that are agreed upon by the property owners, a statement of the Town's policy concerning voluntary contractual assessments, a plan for raising the capital amount required to pay for the work pursuant to the voluntary contractual assessment, and a report on the results of the consultation with the Count Auditor's Office or County Controller's Office concerning the additional fees that will be charged to the Town for incorporating the proposed voluntary contractual assessments into the assessments of the general taxes of the Town on real property, and plan for financing the payment of those fees. 3 Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 TOWN OF LOS ALTOS HILLS Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 BOUNDARY OF CONTRACTUAL ASSESSMENT DISTRICT A map showing the boundaries of the territory within which voluntary contractual assessments are proposed to be offered, as wells as assessor parcel numbers and address for each of the individual properties within the boundary of the contractual assessment district, is attached hereto in Appendix"A" of this Report. 4 Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 TOWN OF LOS ALTOS HILLS Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 PROPERTY OWNER CONTRACTS In executing Loan Agreements with the Town of Los Altos Hills to fund certain sewer improvements for the Eastbrook Subdivision Tract 5801, within the service area of the Town of Los Altos Hills, each of the property owners within the proposed contractual assessment district agreed to the following Section 1.06: Section 1.06 Assessment as Alternative to Loan. As an alternative to the use of a deed of trust and promissory note, at the sole discretion of the Town, the Borrower agrees that the Town may impose a lien pursuant to Civil Code Section 2881 or Streets and Highways Code Section 5898.10, et seq., on the Property and Borrower will agree to and vote in favor of a consensual assessment on the property for the amount of the loan and any interest due thereon. The lien and consensual assessment will provide for repayment to the town on an annual basis as part of the annual property tax and assessment invoices issued by Santa Clara County. The complete contracts specifying the terms and conditions that were agreed to by the property owners within the voluntary contractual assessment area and the Town are attached hereto in Appendix "B" of this Report. 5 Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 TOWN OF LOS ALTOS HILLS Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 VOLUNTARY CONTRACTUAL ASSESSMENT POLICY CONTRACTUAL ASSESSMENT POLICY PROPOSED EASTBROOK SUBDIVISION — CAD FORMATION TRACT 5801 CAD 2010-1 CRITERIA 1. CADs may be used to finance public 1. The CAD is being used to finance sewer improvements, including installation of improvements, consistent with the"public distributed generation renewable energy improvement" language of Section 5898.20(a). sources or energy or water efficiency improvements, in accordance with California Streets and Highway Code, Section 5898.20(a). 2. A minimum of five properties must be 2. There are more than five properties that would directly tributary to the proposed CAD benefit from the proposed CAD sewer. facilities. 3. A minimum of 60 percent of the 3. All of the properties were developed with existing properties directly tributary to the homes using a temporary sewer line that was not proposed CAD facilities must have intended for permanent use and crosses under a existing homes served or have been creek, thereby jeopardizing public health, safety, served by either septic systems or or welfare. temporary sewer lines that jeopardize public health, safety, or welfare. 4. The City Manager is authorized to enter 4. The Town has already entered into Loan into contractual assessments on behalf of Agreements by which the Participating Property the Town. " Owners consented to a contractual assessment district. The City Manager shall enter into any additional agreements on the Town's behalf. 5. Maximum aggregate dollar amount of 5. The maximum cost for the improvements here is contractual assessments is$250,000. less than $175,000, plus an additional $8,702.48 for contingency costs. 6. In the event that requests for financing 6. Sufficient funds exist to cover improvements for exceed the authorization amount, requests all properties in the CAD. shall be considered in the order in which they are received. 7. Plan for raising capital: a CAD may 7. The property owners have prepaid the$8,702.48 proceed only if sufficient funds are and the Town has advanced$152,293.75 to the available to fund the project. seven participating property owners from funds that are available in the sewer fund. The Town has billed the first 2 payments of$943.68 directly to each owner,with the remainder of the loan amount to be collected by the County Tax Collector via special assessment. 6 Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 TOWN OF LOS ALTOS HILLS Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 CAPITAL PLAN The lowest responsible bid for the sewer improvements to be funded by the proposed contractual assessment district, was submitted by EPS, Inc., in an amount of$174,050, not including$8,702.48 in construction contingency costs. Accordingly, the entire cost of the project was $182,752.48, as described in Table 1, below. The eight property owners within the Eastbrook Subdivision agreed to divide the costs of the improvements evenly(i.e., $21,756.25, plus $1087.81 for construction contingency costs per property owner). Each of the eight property owners are obligated to pay $22,844.06 to cover the costs of the improvements. The construction contingency amount of$8,702.48 is to be pre-paid by the property owners and the remaining $174,050 is to be advanced by the Town of Los Altos Hills to the property owners as a loan. Funds from the Town's sewer fund will be used for the loan. One of the property owners has paid their pro rata share in full, and therefore, their parcel is not included within the boundaries of the contractual assessment district. The remaining seven property owners have entered into a Loan Agreement with the Town. Terms of the loan require the loan to be repaid within 14 years at an interest rate of three (3%)per annum. In accordance with the Loan Agreements (executed and attached in Appendix B to this Report) each of the seven property owners are to make their first annual payment directly to the Town; thereafter the balance of the loan and any interest due, shall be paid as part of the annual property tax and assessment invoices issued by Santa Clara County, in amounts and on the dates shown in Table 2, below. Table No. 1—Summary Assessment Estimate Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 Town of Los Altos Hills Item Description Estimated Amount 1 Construction $174,050.00 2 Construction Contingency $8,702.48 3 Amount prepaid by property owners ($30,458.73) Amount to be assessed $152,293.75 7 Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 Table No.2-Payment Schedule Per Property Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 Town of Los Altos Hills Payment Principal Payment Due Payment# Amount Interest Principal Paid Balance 21,756.25 12/10/2009* 1 943.68 68.89 874.79 874.79 20,881.46 4/10/2010* 2 943.68 208.81 734.87 1,609.65 20,146.60 12/10/2010 3 943.68 402.93 540.75 2,150.40 19,605.85 4/10/2011 4 943.68 196.06 747.62 2,898.02 18,858.23 12/10/2011 5 943.68 377.16 566.52 3,464.54 18,291.71 4/10/2012 6 943.68 182.92 760.76 4,225.31 17,530.94 12/10/2012 7 943.68 350.62 593.06 4,818.37 16,937.88 4/10/2013 8 943.68 169.38 774.30 5,592.67 16,163.58 12/10/2013 9 943.68 323.27 620.41 6,213.08 15,543.17 4/10/2014 10 943.68 155.43 788.25 7,001.33 14,754.92 12/10/2014 11 943.68 295.10 648.58 7,649.91 14,106.34 4/10/2015 12 943.68 141.06 802.62 8,452.53 13,303.72 12/10/2015 13 943.68 266.07 677.61 9,130.14 12,626.11 4/10/2016 14 943.68 126.26 817.42 9,947.56 11,808.69 12/10/2016 15 943.68 236.17 707.51 10,655.06 11,101.19 4/10/2017 16 943.68 111.01 832.67 11,487.73 10,268.52 12/10/2017 17 943.68 205.37 738.31 12,226.04 9,530.21 4/10/2018 18 943.68 95.30 848.38 13,074.42 8,681.83 12/10/2018 19 943.68 173.64 770.04 13,844.47 7,911.78 4/10/2019 20 943.68 79.12 864.56 14,709.03 7,047.22 12/10/2019 21 943.68 140.94 802.74 15,511.77 6,244.48 4/10/2020 22 943.68 62.44 881.24 16,393.00 5,363.25 12/10/2020 23 943.68 107.26 836.42 17,229.42 4,526.83 4/10/2021 24 943.68 45.27 898.41 18,127.83 3,628.42 12/10/2021 25 943.68 72.57 871.11 18,998.95 2,757.30 4/10/2022 26 943.68 27.57 916.11 19,915.05 1,841.20 12/10/2022 27 943.68 36.82 906.86 20,821.91 934.34 4/10/2023 28 943.68 9.34 934.34 21,756.25 0.00 *The first two payments (dated 12/10/2009 and 4/10/2010)were invoiced by,and paid directly to the Town of Los Altos Hills. Only the subsequent payments are to be assessed against the properties as part of the Santa Clara County Tax Assessments. 8 e r Town of Los Altos Hills Eastbrook.Subdivision Tract 5801 Contractual Assessment District No. 2010-1 TOWN OF LOS ALTOS HILLS Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 COUNTY FEES The County of Santa Clara has advised, and the Town of Los Altos Hills acknowledges that the County will charge a one percent(1%) administrative fee for the enrollment, collection, and apportionment of the services. The Town is not seeking recovery of the 1% administrative fee from the property owners participating in the contractual assessment district. • 9 Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 APPENDIX"A" BOUNDARY MAP 10 TNfERooavre 280 23241 0 0 ) 3255 23235 23275 331-24-011 331-24-012 O 331-24-010 23175 w F- p 331-24-015 > 23195 0 331-24-014 11311 g 23305 0 ce 33124-013 0 3215 331-24-009 1-- 0 23165 W 331-24-017 __________J EASTBROOK AVENUE • 23141 11185 2.3300 23211 23260 23170 11170 23160 23215 SCALE: NTS LOS ALTOS HILLS Town of Los Altos Hills Ille Eastbrook Subdivision Tract 5801 Contractual Assessment District 2010-1 CALIFORNIA Boundary Map Town of Los Altos Hills Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 APPENDIX"B" CONTRACTS 11 • ALL ORIGINAL LOAN DOCUMENTS FOR THE EASTBROOK SUBDIVISION TRACT 5801 CONTRACTURAL ASSESSMENT DISTRICT(CAD)NO.2010-1 ARE FILED IN THE DOCUMENT SAFE ROOM/TOWN HALL. October 1, 2010 LOAN AGREEMENT FOR PARCEL 2 LOAN AGREEMENT Co Q BETWEEN THE TOWN OF LOS ALTOS HILLS AND ROMULO BUENVIAJE This Loan Agreement (the "Agreement") is made and entered into this?(11 day of November, 2009, by and between the TOWN OF LOS ALTOS HILLS, a public body corporate and politic (hereinafter, the "Town"), and Romula-Buenviaje, an individual, (hereinafter, the"Borrower"). RECITALS A. Borrower is the owner of property located in the Town's Eastbrook Subdivision Tract 5801 (the "Subdivision"), which said Property is located at 23275 Eastbrook Court, County of Santa Clara Parcel Number 331-24-010,which is legally described in Exhibit A attached hereto (the "Property"). B. Pursuant to "Agreement by Owner and or his Successors in Interest to Construct Future Sanitary Sewer Improvements", dated November 10,' 1976 (the "1976 Agreement") between Borrower's predecessor-in-interest and the Town. Town contends that Borrower, along with the other owners of property within the Subdivision, is obligated to construct a new sanitary sewer disposal system providing an alternate sewer main for the disposal of sewage from the Subdivision and closing any manholes that are no • longer necessary("Improvements") upon notification from the Town. C. Borrower acknowledges that [s/he] had notice that the Property was subject to the obligations imposed by the 1976 Agreement, a copy of which was properly recorded with the County of Santa Clara Recorder's office. However, Borrower disputes the extent of the obligations as described in B, above. D By a letter dated September 29, 2008, Town determined that the Improvements were necessary and provided notice to Borrower of such decision in accordance with the 1976 Agreement. E. The parties agree that, for consideration described below, Brower will acknowledge its obligation to construct the Improvements and has requested a loan from Town ' -.rder to pay a portion of the costs of the Improvements. F. Town and Borrower desire to enter into this Agreement to se '1 the terms and conditions pursuant to which Town will make a loan to Borrower to fund a portion of th is of the Improvements. ARTICLE 1 LOAN TO BORROWER/ASSESSMENT Section 1.01 Loan Amount, Use of Proceeds. Town agrees to make and Borrower agrees to accept a loan of twenty one thousand seven hundred fifty six dollars and twenty five cents ($21,756.25) ("Loan") to pay for a portion of the costs associated with construction of a new sewer line replacing the existing sewer line and siphon crossing Permanente Creek, which will divert existing sewage flow on Eastbrook Avenue east of Mora Glen Drive towards West Loyola (north-west direction) away from the creek crossing ("Eligible Improvements"), subject to the terms and 1308769 l conditions of this Agreement and either, at the Town's option: (1) a promissory note (the "Note"), and a deed of trust agreement (the "Deed of Trust") or (2) a lien pursuant to Civil Code Section 2881 on the Property and a consensual assessment pursuant to which the loan amount and interest shall be repaid in full in a maximum of 14 years to the Town via annual payments as part of the property tax and assessment invoices issued by the County of Santa Clara. This Agreement, and either (1) the Note and Deed of Trust or (2) the Lien pursuant to Civil Code Section 2881, as determined by the Town, shall collectively be referred to as the"Loan Documents". The cost for construction of the Eligible Improvements is $174,050. Borrower and the other property owners within the Subdivision have determined to share the cost construction on a pro rata basis. Borrower's share of such cost is $21,756.25 plus an additional $1,087.81 for construction contingency costs. Borrower shall pay the construction contingency amount upon execution of this Agreement. Borrower agrees that Borrower shall repay the loan amount together with interest accruing at the rate of three percent (3%) per annum within fourteen (14) years of execution of this Agreement. In consideration of Borrower's payment herein, Town shall pay the cost of construction of the Eligible Improvements. Borrower agrees that Town shall hold all Loan funds. Town shall in its sole discretion disburse and expend Loan funds to pay for the costs of construction of the Eligible Improvements. Town agrees to construct Eligible Improvements within 180 working days, unless such delays result where Town is prevented from doing so by acts or events beyond its reasonable control, including acts of God, governmental changes or unforeseen events. A working day is hereby defined as any day except Saturdays, Sundays, and on which the consultants and contractors hired by the Town are not prevented by inclement weather or conditions resulting immediately there from adverse to the current controlling operation or operations as determined by the Town Engineer. Section 1.02 Reserved. Section 1.03 Deed of Trust. As determined applicable by the Town, any Note shall be secured by a Deed of Trust on the Property, including any permanent improvements or fixtures (the"Deed of Trust"). Section 1.04 Acceleration. The Loan Documents shall provide for the acceleration of the Loan's unpaid principal balance upon Borrower's default at the Town's sole discretion, making all sums due advanced at the time of default immediately due and payable. The following shall also constitute events of default (each an "Event of Default") allowing for acceleration of the Loan: A. Liens; Attachment; Condemnation. (1) The recording of any claim of lien against the Property, except as provided in this Agreement; or (2) the condemnation, seizure or appropriation of, or occurrence of an uninsured casualty with respect to any material portion of the Property not cured within a reasonable time, as such cure, time, and materiality is determined by the Town in its sole and absolute discretion; or (3) the sequestration or attachment of, or any levy or execution upon the Property or any of the units thereon; or 1308769 B. Voluntary Bankruptcy; Insolvency: Dissolution, (1) Borrower files of a petition for relief under the Bankruptcy Reform Act of 1978 as amended and recodified ("Bankruptcy Act"), or under any other present or future state or federal law regarding bankruptcy, reorganization or other relief to debtors (collectively, "Debtor Relief Law"); or(2) Borrower's filing any pleading in any involuntary proceeding under the Bankruptcy Act or other Debtor Relief Law, which admits the jurisdiction or the court or the petition's material allegations regarding Borrower insolvency; or (3) Borrower's making a general assignment for the benefit of creditors; or (4) Borrower's applies for, or becomes subject to the appointment of, a receiver, trustee, custodian or liquidator of Borrower or any of its property; or (5) filing by Borrower of a petition seeking the liquidation or dissolution of Borrower or the commencement of any other procedure to liquidate, dissolve or terminate Borrower; or C. Involuntary Bankruptcy. Borrower fails to effect a full dismissal of any Involuntary petition under the Bankruptcy Act or any other Debtor Relief Law, that is filed against Borrower or in any way restrains or limits Borrower or the Town regarding the Loan Documents or the Property prior to the earlier of the entry of any order granting relief sought in the involuntary petition, or thirty (30) days after such petition is filed; or D. Sale/Assignment/Assumption. Borrower sells, transfers, or assigns the Property ownership to any other person or entity without the prior written approval of the Town. Section 1.05 Remedies, The Town may exercise from time to time any rights and remedies available to it at law or in equity or by statute in addition to, and not in lieu of, any rights and remedies expressly granted in the Loan Documents, in any other instrument between these parties, or in any agreement guaranteeing the Loan or the completion of construction of the Eligible Improvements. Section 1.06 Assessment as Alternative to Loan. As an alternative to the use of a deed of trust and promissory note, at the sole discretion of the Town, the Borrower agrees that the Town may impose a lien pursuant to Civil Code Section 2881 or Streets and Highways Code Section 5898.10, et seq., on the Property and Borrower will agree to and vote in favor of a consensual assessment on the property for the amount of the loan and any interest due thereon. The lien and consensual assessment will provide for repayment to the town on an annual basis as part of the annual property tax and assessment invoices issued by Santa Clara County. If the Town elects to impose a lien in accordance with this Agreement, Borrower shall pay the first annual payment in two installments, due upon invoice from the Town. The first installment, in an amount of $943.68, shall be invoiced on or about December 10, 2009. The second installment, in an amount of $943.68 shall be invoiced on or about April 10, 2010. Thereafter, the balance of the loan and any interest due, shall be paid as part of the annual property tax and assessment invoices issued by Santa Clara County, in amounts and on the dates shown in Exhibit B, attached hereto and incorporated by reference. If after completion of the project there are any remaining funds from the $1,087.81 payment for construction contingency costs, the parties may agree to apply the unused portion of such funds, as a credit towards the second installment for first annual payment. 1308769 ARTICLE 2 DISBURSEMENT OF LOAN Section 2.01 Initial Disbursement Conditions. The Town will commence the construction of the Eligible Improvements after Borrower has fulfilled to the Town's satisfaction, or obtained the Town's written waiver of, all of the following conditions: A. Executed Loan Documents. The Town has received all Loan Documents, duly executed in recordable form as appropriate by Borrower, and, as applicable, the Deed of Trust or Lien has been duly recorded against the Property. B. Representations. Borrower is not then in default in performance of any of the warranties, representations, covenants, or agreements contained herein and the representations set forth in Article 3 shall be true and correct. C. Consultants and Contractors. Borrower agrees and expressly acknowledges that Borrower grants Town full discretion to use loan funds to enter into any contract with the consultants, contractor or contractors (collectively, the"Contractors") for the Eligible Improvements. ARTICLE 3 REPRESENTATIONS AND WARRANTIES Borrower makes all of the representations and warranties set forth in this Article 3. Section 3.01 Validity. This Agreement and all other Loan Documents, when executed and delivered, shall be valid and binding upon Borrower and are enforceable in accordance with their respective terms. Section 3.02 No Litigation. There is no litigation, claims, actions, investigations proceedings or disputes pending or, to Borrower's knowledge, threatened against Borrower or the Property. Section 3.03 No Liens. Except as provided herein, no work of construction has commenced or shall commence on the Property and no materials have been or will be delivered to the Property prior to the recording of the Deed of Trust. No preliminary or stop notice has been received or filed; no claim of lien has been recorded against the Property and all persons performing work and providing materials with respect to the Property have been paid in full. 1308769 ` / I Section 3.04 Insurance. If applicable as determined by the Town, Borrower has satisfied the Insurance Requirements set forth in the Deed of Trust ("Insurance Requirements") and the policies are in full force and effect. Section 3.05 Taxes. Borrower has paid all taxes and all assessments due on the Property. ARTICLE 4 AFFIRMATIVE COVENANTS OF BORROWER Borrower makes all of the following covenants set forth in this Article 4 for the time stated. Section 4.01 Maintenance. Until the latter of the (i) date the Loan is repaid in full, or(ii) the date fourteen (14) years after completion of construction of the Eligible Improvements, Borrower shall maintain the Property in first-class condition and repair, at Borrower's own cost and expense. Borrower's obligation to maintain the Property as described herein shall also be secured by the Deed of Trust, if applicable. Section 4.02 Further Documents. Until repayment and performance in full of the Loan, Borrower shall furnish to the Town upon request all other instruments and documents in addition to those specifically referred to herein as may reasonably be required from time to time by the Town. Section 4.03 Payment of Taxes. Until repayment and performance in full of the Loan, Borrower shall: A. Duly and punctually pay and discharge all taxes, assessments and other charges against the Property prior to the date when they shall become delinquent, and all charges for labor, materials and supplies that if unpaid might become a lien encumbering any part of the property of Borrower. B. Duly and punctually pay principal and interest on all debt obligations of Borrower related to the Property. Section 4.04 Prevailing Wages. Borrower acknowledges the Town shall be responsible for payment of prevailing wages for all construction work required under this Agreement. For the purposes of this Agreement, "prevailing wages" means not less than the general prevailing rate of per diem wages, as defined in Section 1773 of the California Labor Code and Subchapter 3 of Chapter 8, Division 1, Title 8 of the California Code of Regulations (Section 16000 et seq.), and as established by the Director of the California Department of Industrial Relations ("DIR") for the respective craft classification. 1308769 Section 4.05 Prohibition on Sale, Transfers or Assignments of Property Secured by Deed of Trust. If all or any part of (i) the Borrower's interest in the Property, or (ii) the property secured by the Deed of Trust, if applicable, is sold, transferred or assigned by Borrower without Town's prior written consent, Town may, at Town's option, declare the outstanding balance of the Loan to be immediately due and payable. If Town exercises such option to accelerate, Town shall mail Borrower notice of acceleration in accordance with Section 5.04 hereof. Such notices shall provide a period of not less than 30 calendar days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Town may, without further notice or demand on Borrower, invoke any remedies permitted by law or in equity. This Section 4.05 does not apply to any interest conveyed in exchange for refinancing the Property as long as Borrower retains ownership and the Borrower or a family member continues to occupy the Property. ARTICLE 5 GENERAL PROVISIONS Section 5.01 Assistance. Nothing in this Agreement shall be construed to obligate the Town to provide additional funds to Borrower through any other Town assistance program. Section 5.02 Reserved. Section 5.03 Waiver. Any waiver by the Town of any term, condition or requirement of any of the Loan Documents shall not constitute a waiver of any other term, condition or requirement hereof or constitute a waiver of the same term, condition or requirement in any other instance. Section 5.04 Notices. All notices and other communications required or permitted under this Agreement shall be in writing, and may be delivered by hand, by facsimile transmission with verification of receipt, or by United States mail, postage prepaid and return receipt requested, addressed to the respective parties as follows: 1308769 To Town: Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 Attention: City Manager To Borrower: Romulo Buenviaje 23275 Eastbrook Court Los Altos Hills, CA 94024 or to such other address as any party may designate by notice in accordance with this Section. Notice shall be deemed given on the date of personal delivery by hand, or the date of receipt of facsimile transmission (with verification receipt), or on the date delivery is refused, if applicable. Section 5.06 Time. Time is of the essence in this Agreement. Section 5.07 Exhibits. Exhibit A and Exhibit B, attached hereto, are incorporated by this reference. . Section 5.08 Amendments. Amendments to this Agreement shall be effective only upon the mutual agreement in writing of the parties hereto. No amendment shall be binding upon the Town unless duly executed by an appropriate officer of the Town. Section 5.09 Hold Harmless. Borrower agrees to indemnify, defend and hold the Town, its officers and employees, harmless from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of (i) Borrower's performance or non-performance under any of the Loan Documents, or any other agreement executed pursuant thereto. Borrower shall promptly.notify the Town of any claims of which Borrower has notice or knowledge. This indemnification shall not apply to any suits, actions, claims, causes of action, costs, demands,judgments and liens arising from the Town's gross negligence or willful misconduct. Section 5.10 Successors and Assigns. Borrower binds itself, its partners, successors, assigns, and legal representatives to the Town with respect to all covenants, agreements, and obligations contained in the Loan Documents. Borrower shall not assign this Agreement in whole or in part without the written consent of the Town. Section 5.11 Relationship. It is understood and agreed by and between the parties hereto that Borrower, in the performance of its obligations under the Loan Documents or any other agreement executed pursuant to this Agreement, shall 1308769 i 7- not act, nor is it at any time authorized to act, as the agent or representative of the Town in any matter. Borrower agrees that it will not, in any matter, hold itself out as the agent or representative of the Town in any manner, or act in such a fashion as would give the impression to a reasonable person, that Borrower is acting in such a capacity. The relationship between Borrower and the Town is, and shall remain, solely that of borrower and Town. At all times Borrower shall act as Town and shall be an independent entity and not an agent or employee of the Town. Section 5.12 Document. This Agreement, including all Exhibits, the Note and the Deed of Trust or Lien, as applicable, together embody the agreement between the Town and Borrower for the Loan and its terms and verbal conditions. No agreements or conversations with any officer, agent or employee prior to the execution of this Agreement, shall affect or modify any of the terms or obligations contained in the Loan Documents. Any such verbal agreement considered unofficial information and in no way binding upon the Town. Section 5.13 Severability of Provisions. If any provisions of this Agreement are held invalid, the remainder of this Agreement shall not be affected hereby, if such remainder would then continue to conform to the terms and requirements of applicable law. Section 5.14 Conflict. If any term or provision in this Agreement conflicts with any term or provision of the Note, the term or provision in the Note shall control. Except for any subordination of the Deed of Trust, if any term or provision of any other Loan Document conflicts with any term or provision of this Agreement, the term or provision in this Agreement shall control. TOWN OF LOS ALTOS HILLS By: By: Carl Cahill City Manager APPROVED AS TO FORM By: Steven T. Mattas, City Attorney B ROW4R d By: Romulo D. Buenviaje 1308769.1 1308769 - r EXHIBIT A Description of Property Address: 23275 Eastbrook Court, Los Altos Hills, CA 94024 APN: 331-24-010 Lot Number in Tract 5901: Lot#2 (See next page for Map of Tract 5801) 1308769 • • . _____:fit.nll/14t .JUNIPERO SERRA FFR&BWAY {L4IGHWAY 280) / I 1 . • t41;i'n sts.a• �fAl�he 7rhylnd rcr.Jr'"{ 'j' AV rrgr°[AAn.nrrr(rrrr ac pig.,./ /t4r741' .1 11 t?11 •rt. 11 �17T!''' Jr irIr II,Ar7G^1 1�* )AC `( I,pr. q 1, .AA'10' Gt:tl' �wi y_,, 0V1 BtALO I'r CO` , •,,,,rnm•Ir.UnruflpI rrrnJ•/ pi,a, *.`s sv,l, a If 5• 1.. 8. L' nas ,,,lUe'At o't last ?-�,fc.cLala!lAs " 4400 r�}.• ^o),a e.r pp RT .+, �A 7 tqn.rs.„r/r• r f a 2 dd'ri� §&. *" t7,\P, --'''c- 1.31/11.14 ? .. 111 e b• I.npae lAc. I 'LL"-p L^Ln ort.'!-, 4'•`J• ` A e A lu1'flbp's.Vim' 7 .J 01 �B r,. • ".1,' b p {r, 3` / 1%� 1•A,'oA r�7 S� .< ya , p 1.6UlAc• \ y a /�r,��- 5 �•'ri a-f rsri�l o• �°' ?, 'IfR Ll'eC9 r w. 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M1'ar(rMlrlrm//Ir J. „SANTA CLARA GOU 4 Y0CP5k,1FNRIV)A . 110TH J.Rs. r J7nAA{DAAAVArf MO WWI' /me it Ilenrmrrr r/Jnr p tm h,.Nrn:rdrrrAl/Jlr.r/r- 1,1.1 1 TAPITAAr MITA MOW/I' AferJ/Ivlrihr;la 1(IrITFffftriti(id trrrk/andnJnrrr(q 4J.t.1/vatrdirtrrrt rn7iMrerPAUL.C.NOWACI(MW ASSOC1ATESI111C. rcn}n•aye yyrrnm /prhnrarr,n,TGrery "kr,trhAln/ `'.�• CIVIL ENGINEERS-SURVEYORS INr•mr.r/ I '� r 220 BTA.F STREET SUIT&'E' Hrr rrlAJ,tdot A.wtrr%41flAcr 1.09 ALTOA,CALIFORIIIA,94022. Orr /1 T• gra 4'p d" 0X•7/. J&A' _ Jr;e Iraler -6- .76 DHGGr 2 or 2 5H/GTG .71i �I, EXHIBIT B Payment Schedule 1308769 ' . �,-,r a,a�'�ti"s T �3..-.-��.., �. w.. °"a -s � •' ae77,La..`�:5 zz _ ' �..P" �'� ' � .. s � � A . � get ° ,dr, :;:f!!:5.- K �-,. :r� �€ -. 0k, p? %.- _ N _ 'er 43 r ,Y . ; ...-.4.74,1-_, - , e6ati ;--47.,„_ 4 .�ic ; ' , , �: '�a_'tw "0 :, n t 't P✓..� x C#^a ,,,-- -;-;=-'- = �� ..� f4. * <41 Loan Amount $21,756.25 Annual Interest Rate 3.00% Total#of Years 14 Closing Date 11/2/2009 Payment Payment Principal Due to City Payment# Amount Interest Principal Paid Balance 21,756.25 12/10/2009 1 . i • 943.68 68.89 874.79 874.79 . 20,881.46 4/10/2010 2 943.68 208.81 734.87 1,609.65 20,146.60 12/10/2010 3 943.68 402.93 540.75 2,150.40 19,605.85 • 4/10/2011 4 943.68 196.06 747.62 2,898.02 18,858.23 12/10/2011 5 943.68 377.16 566.52 3,464.54 18,291.71 4/10/2012 6 943.68 182.92 760.76 4,225.31 17,530.94 12/10/2012 7 943.68 350.62 593.06 4,818.37 16,937.88 4/10/2013 8 943.68 169.38 774.30 5,592.67 16,163.58 12/10/2013 9 943.68 323.27 620.41 6,213.08 15,543.17 4/10/2014 10 943.68 155.43 788.25 7,001.33 14,754.92 12/10/2014 11 943.68 295.10 648.58 7,649.91 14,106.34 4/10/2015 12 943.68 141.06 802.62 8,452.53 13,303.72 12/10/2015 13 943.68 266.07 677.61 9,130.14 12,626.11 4/10/2016 14 943.68 126.26 817.42 9,947.56 11,808.69 12/10/2016 15 943.68 236.17 707.51 10,655.06 11,101.19 4/10/2017 16 943.68 111.01 832.67 11,487.73 10,268.52 12/10/2017 17 943.68 205.37 738.31 12,226.04 9,530.21 4/10/2018 18 943.68 95.30 848.38 13,074.42 8,681.83 12/10/2018 19 943.68 173.64 770.04 13,844.47 7,911.78 4/10/2019 20 943.68 79.12 864.56 14,709.03 7,047.22 12/10/2019 21 943.68 140.94 802.74 15,511.77 6,244.48 4/10/2020 22 943.68 62.44 881.24 16,393.00 5,363.25 12/10/2020 23 943.68 107.26 836.42 17,229.42 4,526.83 4/10/2021 24 943.68 45.27 898.41 18,127.83 3,628.42 12/10/2021 25 943.68 72.57 871.11 18,998.95 2,757.30 4/10/2022 26 943.68 27.57 916.11 19,915.05 1,841.20 12/10/2022 27 943.68 36.82 906.86 20,821.91 934.34 4/10/2023 28 943.68 9.34 934.34 21,756.25 0.00 LOAN AGREEMENT FOR PARCEL 3 C . F'Y LOAN AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND ALBERT M. SABES AND MYRON I. SABES, AS TRUSTEE OF THE IRENE AMDUR QTIP TRUST This Loan Agreement (the "Agreement") is made and entered into this j"f day of December, 2009, by and between the TOWN OF LOS ALTOS HILLS, a public body corporate and politic (hereinafter, the "Town"), and Al15ert-M7Sabes and Myron l S bes; as trustees of the Irene AmdurIQTIP Trust, (hereinafter, the "Borrower"). ` '" RECITALS A. Borrower is the owner of property located in the Town's Eastbrook Subdivision Tract 5801 (the "Subdivision"), which said Property is located at 23255 Eastbrook Court, County of Santa Clara Parcel Number 331-24-011, which is legally described in Exhibit A attached hereto (the "Property"). B. Pursuant to "Agreement by Owner and or his Successors in Interest to Construct Future Sanitary Sewer Improvements", dated November 10, 1976 (the "1976 Agreement") between Borrower's predecessor-in-interest and the Town. Town contends that Borrower, along with the other owners of property within the Subdivision, is obligated to construct a new sanitary sewer disposal system providing an alternate sewer main for the disposal of sewage from the Subdivision and closing any manholes that are no longer necessary("Improvements") upon notification from the Town. C. Borrower acknowledges that [s/he] had notice that the Property was subject to the obligations imposed by the 1976 Agreement, a copy of which was properly recorded with the County of Santa Clara Recorder's office. However, Borrower disputes the extent of the obligations as described in B, above. D By a letter dated September 29, 2008, Town determined that the Improvements were necessary and provided notice to Borrower of such decision in accordance with the 1976 Agreement. E. The parties agree that, for consideration described below, Borrower will acknowledge its obligation to construct the Improvements and has requested a loan from Town in order to pay a portion of the costs of the Improvements. F. Town and Borrower desire to enter into this Agreement to set forth the terms and conditions pursuant to which Town will make a loan to Borrower to fund a portion of the costs of the Improvements. ARTICLE 1 LOAN TO BORROWER/ASSESSMENT Section 1.01 Loan Amount, Use of Proceeds. Town agrees to make and Borrower agrees to accept a loan of twenty one thousand seven hundred fifty six dollars and twenty five cents ($21,756.25) ("Loan") to pay for a portion of the costs associated with construction of a new sewer line replacing the existing sewer line and siphon crossing Permanente Creek, which will divert existing sewage flow on Eastbrook Avenue east of Mora Glen Drive towards West Loyola 1308780 (north-west direction) away from the creek crossing ("Eligible Improvements"), subject to the terms and conditions of this Agreement and either, at the Town's option: (1) a promissory note (the "Note"), and a deed of trust agreement (the "Deed of Trust") or (2) a lien pursuant to Civil Code Section 2881 on the Property and a consensual assessment pursuant to which the loan amount and interest shall be repaid in full in a maximum of 14 years to the Town via annual payments as part of the property tax and assessment invoices issued by the County of Santa Clara. This Agreement, and either (1) the Note and Deed of Trust or (2) the Lien pursuant to Civil Code Section 2881, as determined by the Town, shall collectively be referred to as the"Loan Documents". The cost for construction of the Eligible Improvements is $174,050. Borrower and the other property owners within the Subdivision have determined to share the cost construction on a pro rata basis. Borrower's share of such cost is $21,756.25 plus an additional $1,087.81 for construction contingency costs. Borrower shall pay the construction contingency amount upon execution of this Agreement. Borrower agrees that Borrower shall repay the loan amount together with interest accruing at the rate of three percent (3%) per annum within fourteen (14) years of execution of this Agreement. In consideration of Borrower's payment herein, Town shall pay the cost of construction of the Eligible Improvements. Borrower agrees that Town shall hold all Loan funds. Town shall in its sole discretion disburse and expend Loan funds to pay for the costs of construction of the Eligible Improvements. Town agrees to construct Eligible Improvements within 180 working days, unless such delays result where Town is prevented from doing so by acts or events beyond its reasonable control, including acts of God, governmental changes or unforeseen events. A working day is hereby defined as any day except Saturdays, Sundays, and on which the consultants and contractors hired by the Town are not prevented by inclement weather or conditions resulting immediately there from adverse to the current controlling operation or operations as determined by the Town Engineer. Section 1.02 Reserved. Section 1.03 Deed of Trust. As determined applicable by the Town, any Note shall be secured by a Deed of Trust on the Property, including any permanent improvements or fixtures (the"Deed of Trust"). Section 1.04 Acceleration. The Loan Documents shall provide for the acceleration of the Loan's unpaid principal balance upon Borrower's default at the Town's sole discretion, making all sums due advanced at the time of default immediately due and payable. The following shall also constitute events of default (each an "Event of Default") allowing for acceleration of the Loan: A. Liens; Attachment; Condemnation. (1) The recording of any claim of lien against the Property, except as provided in this Agreement; or (2) the condemnation, seizure or appropriation of, or occurrence of an uninsured casualty with respect to any material portion of the Property not cured within a reasonable time, as such cure, time, and materiality is determined by the Town in its sole and absolute discretion; or (3) the sequestration or attachment of, or any levy or execution upon the Property or any of the units thereon; or 1308780 J B. Voluntary Bankruptcy; Insolvency: Dissolution. (1) Borrower files of a petition for relief under the Bankruptcy Reform Act of 1978 as amended and recodified ("Bankruptcy Act"), or under any other present or future state or federal law regarding bankruptcy, reorganization or other relief to debtors (collectively, "Debtor Relief Law"); or(2) Borrower's filing any pleading in any involuntary proceeding under the Bankruptcy Act or other Debtor Relief Law, which admits the jurisdiction or the court or the petition's material allegations regarding Borrower insolvency; or (3) Borrower's making a general assignment for the benefit of creditors; or (4) Borrower's applies for, or becomes subject to the appointment of, a receiver, trustee, custodian or liquidator of Borrower or any of its property; or (5) filing by Borrower of a petition seeking the liquidation or dissolution of Borrower or the commencement of any other procedure to liquidate, dissolve or terminate Borrower; or C. Involuntary Bankruptcy. Borrower fails to effect a full dismissal of any Involuntary petition under the Bankruptcy Act or any other Debtor Relief Law, that is filed against Borrower or in any way restrains or limits Borrower or the Town regarding the Loan Documents or the Property prior to the earlier of the entry of any order granting relief sought in the involuntary petition, or thirty (30) days after such petition is filed; or D. Sale/Assignment/Assumption. Borrower sells, transfers, or assigns the Property ownership to any other person or entity without the prior written approval of the Town. Section 1.05 Remedies. The Town may exercise from time to time any rights and remedies available to it at law or in equity or by statute in addition to, and not in lieu of, any rights and remedies expressly granted in the Loan Documents, in any other instrument between these parties, or in any agreement guaranteeing the Loan or the completion of construction of the Eligible Improvements. Section 1.06 Assessment as Alternative to Loan. As an alternative to the use of a deed of trust and promissory note, at the sole discretion of the Town, the Borrower agrees that the Town may impose a lien pursuant to Civil Code Section 2881 or Streets and Highways Code Section 5898.10, et seq., on the Property and Borrower will agree to and vote in favor of a consensual assessment on the property for the amount of the loan and any interest due thereon. The lien and consensual assessment will provide for repayment to the town on an annual basis as part of the annual property tax and assessment invoices issued by Santa Clara County. If the Town elects to impose a lien in accordance with this Agreement, Borrower shall pay the first annual payment in two installments, due upon invoice from the Town. The first installment, in an amount of $943.68, shall be invoiced on or about December 10, 2009. The second installment, in an amount of $943.68 shall be invoiced on or about April 10, 2010. Thereafter, the balance of the loan and any interest due, shall be paid as part of the annual property tax and assessment invoices issued by Santa Clara County, in amounts and on the dates shown in Exhibit B, attached hereto and incorporated by reference. If after completion of the project there are any remaining funds from the $1,087.81 payment for construction contingency costs, the parties may agree to apply the unused portion of such funds, as a credit towards the second installment for first annual payment. 1308780 ARTICLE 2 DISBURSEMENT OF LOAN Section 2.01 Initial Disbursement Conditions. The Town will commence the construction of the Eligible Improvements after Borrower has fulfilled to the Town's satisfaction, or obtained the Town's written waiver of, all of the following conditions: A. Executed Loan Documents. The Town has received all Loan Documents, duly executed in recordable form as appropriate by Borrower, and, as applicable, the Deed of Trust or Lien has been duly recorded against the Property. B. Representations. Borrower is not then in default in performance of any of the warranties, representations, covenants, or agreements contained herein and the representations set forth in Article 3 shall be true and correct. C. Consultants and Contractors. Borrower agrees and expressly acknowledges that Borrower grants Town full discretion to use loan funds to enter into any contract with the consultants, contractor or contractors (collectively, the "Contractors")for the Eligible Improvements. ARTICLE 3 REPRESENTATIONS AND WARRANTIES • Borrower makes all of the representations and warranties set forth in this Article 3. Section 3.01 Validity. This Agreement and all other Loan Documents, when executed and delivered, shall be valid and binding upon Borrower and are enforceable in accordance with their respective terms. Section 3.02 No Litigation. There is no litigation, claims, actions, investigations proceedings or disputes pending or, to Borrower's knowledge,threatened against Borrower or the Property. Section 3.03 No Liens: Except as provided herein, no work of construction has commenced or shall commence on the Property and no materials have been or will be delivered to the Property prior to the recording of the Deed of Trust. No preliminary or stop notice has been received or filed; no claim of lien has been recorded against the Property and all persons performing work and providing materials with respect to the Property have been paid in full. 1308780 Section 3.04 Insurance. If applicable as determined by the Town, Borrower has satisfied the Insurance Requirements set forth in the Deed of Trust("Insurance Requirements") and the policies are in full force and effect. Section 3.05 Taxes. Borrower has paid all taxes and all assessments due on the Property. ARTICLE 4 AFFIRMATIVE COVENANTS OF BORROWER Borrower makes all of the following covenants set forth in this Article 4 for the time stated. Section 4.01 Maintenance. Until the latter of the (i) date the Loan.is repaid in full, or(ii) the date fourteen (14) years after completion of construction of the Eligible Improvements, Borrower shall maintain the Property in first-class condition and repair, at Borrower's own cost and expense. Borrower's obligation to maintain the Property as described herein shall also be secured by the Deed of Trust, if applicable. Section 4.02 Further Documents. Until repayment and performance in full of the Loan, Borrower shall furnish to the Town upon request all other instruments and documents in addition to those specifically referred to herein as may reasonably be required from time to time by the Town. Section 4.03 Payment of Taxes. Until repayment and performance in full of the Loan, Borrower shall: A. Duly and punctually pay and discharge all taxes, assessments and other charges against the Property prior to the date when they shall become delinquent, and all charges for labor, materials and supplies that if unpaid might become a lien encumbering any part of the property of Borrower. B. Duly and punctually pay principal and interest on all debt obligations of Borrower related to the Property. Section 4.04 Prevailing Wages. Borrower acknowledges the Town shall be responsible for payment of prevailing wages for all construction work required under this Agreement. For the purposes of this Agreement, "prevailing wages" means not less than the general prevailing rate of per diem wages, as defined in Section 1773 of the California Labor Code and Subchapter 3 of Chapter 8, Division 1, Title 8 of the California Code of Regulations (Section 16000 et seq.), and as established by the Director of the California Department of Industrial Relations ("DIR") for the respective craft classification. 1308780 Section 4.05 Prohibition on Sale, Transfers or Assignments of Property Secured by Deed of Trust. If all or any part of (i) the Borrower's interest in the Property, or (ii) the property secured by the Deed of Trust, if applicable, is sold, transferred or assigned by Borrower without Town's prior written consent, Town may, at Town's option, declare the outstanding balance of the Loan to be immediately due and payable. If Town exercises such option to accelerate, Town shall mail Borrower notice of acceleration in accordance with Section 5.04 hereof. Such notices shall provide a period of not less than 30 calendar days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Town may, without further notice or demand on Borrower, invoke any remedies permitted by law or in equity. This Section 4.05 does not apply to any interest conveyed in exchange for refinancing the Property as long as Borrower retains ownership and the Borrower or a family member continues to occupy the Property. ARTICLE 5 GENERAL PROVISIONS Section 5.01 Assistance. Nothing in this Agreement shall be construed to obligate the Town to provide additional funds to Borrower through any other Town assistance program. Section 5.02 Reserved. Section 5.03 Waiver. Any waiver by the Town of any term, condition or requirement of any of the Loan Documents shall not constitute a waiver of any other term, condition or requirement hereof or constitute a waiver of the same term, condition or requirement in any other instance. Section 5.04 Notices. All notices and other communications required or permitted under this Agreement shall be in writing, and may be delivered by hand, by facsimile transmission with verification of receipt, or by United States mail, postage prepaid and return receipt requested, addressed to the respective parties as follows: 1308780 I To Town: Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 Attention: City Manager To Borrower: Albert M. Sabes and Myron I. Sabes Trustees of the Irene Amdur QTIP Trust 19273 Citrus Lane Saratoga, CA 95070 or to such other address as any party may designate by notice in accordance with this Section. Notice shall be deemed given on the date of personal delivery by hand, or the date of receipt of facsimile transmission (with verification receipt), or on the date delivery is refused, if applicable. Section 5.06 Time. Time is of the essence in this Agreement. Section 5.07 Exhibits. Exhibit A and Exhibit B, attached hereto, are incorporated by this reference. Section 5.08 Amendments. Amendments to this Agreement shall be effective only upon the mutual agreement in writing of the parties hereto. No amendment shall be binding upon the Town unless duly executed by an appropriate officer of the Town. Section 5.09 Hold Harmless. Borrower agrees to indemnify, defend and hold the Town, its officers and employees, harmless from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of (i) Borrower's performance or non-performance under any of the Loan Documents, or any other agreement executed pursuant thereto. Borrower shall promptly notify the Town of any claims of which Borrower has notice or knowledge. This indemnification shall not apply to any suits, actions, claims, causes of action, costs, demands,judgments and liens arising from the Town's gross negligence or willful misconduct. Section 5.10 Successors and Assigns. Borrower binds itself, its partners, successors, assigns, and legal representatives to the Town with respect to all covenants, agreements, and obligations contained in the Loan Documents. Borrower shall not assign this Agreement in whole or in part without the written consent of the Town. 1308780 Section 5.11 Relationship. It is understood and agreed by and between the parties hereto that Borrower, in the performance of its obligations under the Loan Documents or any other agreement executed pursuant to this Agreement, shall not act, nor is it at any time authorized to act, as the agent or representative of the Town in any matter. Borrower agrees that it will not, in any matter, hold itself out as the agent or representative of the Town in any manner, or act in such a fashion as would give the impression to a reasonable person, that Borrower is acting in such a capacity. The relationship between Borrower and the Town is, and shall remain, solely that of borrower and Town. At all times Borrower shall act as Town and shall be an independent entity and not an agent or employee of the Town. Section 5.12 Document. This Agreement, including all Exhibits, the Note and the Deed of Trust or Lien, as applicable, together embody the agreement between the Town and Borrower for the Loan and its terms and verbal conditions. No agreements or conversations with any officer, agent or employee prior to the execution of this Agreement, shall affect or modify any of the terms or obligations contained in the Loan Documents. Any such verbal agreement considered unofficial information and in no way binding upon the Town. Section 5.13 Severability of Provisions. If any provisions of this Agreement are held invalid, the remainder of this Agreement shall not be affected hereby, if such remainder would then continue to conform to the terms and requirements of applicable law. • 1308780 Section 5.14 Conflict. If any term or provision in this Agreement conflicts with any term or provision of the Note, the term or provision in the Note shall control. Except for any subordination of the Deed of Trust, if any term or provision of any other Loan Document conflicts with any term or provision of this Agreement, the term or provision in this Agreement shall control. TOWN OF LOS ALTOS HILLS By: C Q n r By: Carl Cahill City Manager APPROVED AS TO FORM By: r Steven T. Mattas, City Attorney BORROWER By:Albert M. Sabes -- As trustee of the Irene Amdur QTIP Trust By: My .n . Sabes As trustee of the Irene Amdur QTIP Trust 1308780.2 1308780 EXHIBIT A Description of Property Address: 23255 Eastbrook Court, Los Altos Hills, CA 94024 APN: 331-24-011 Lot Number in Tract 5901: Lot#3 (See next page for Map of Tract 5801) • 1308780 • • • I Iratlrnn, JUNIPER° SERRRI FRERWAY (HIGHWAY zoo) r1 0. • �a .y fr r".°"1,2—.+7:';::::"'":0'.!/''''' ! run.nr rnytnd r.lrr,{t 7 r ru 0'ir„.. 111] aa7,44,,nbr Jrlif'1nrT'rfArre..`It tN kk I • e qry , ,.M di IM'to' Ri.il.' +.4...1.,,,,T ,1 eUIO l'.CO' �ti?'/°n,�rtvrtAttmunm rttaJ• �y',{,yl r yi 1.j,t;Ct a. J' F, 3 q 1 ,I rye \1• nqs r+•s111VArv0.1 ian• I '4-4-,:' - );101{Ar ,�, 4 @�;. .tL• 4k ���, 4-. !4 A .4"-,i, I.vo1I 14. +• vt +` SI,J. .t., * tea p.l .... d ‘11''1,‘" $a• �n4‘'.^ 1' ?t A �`0 Lunar W I t.aasAIAr, ,i1�+sp' aV'U � 1 �. �• , `• o ' lute14�I. m'e+o1'+''rrAtz„J 5%i it 9 •- "fix•`,' -,utb, 4„n / 10�r` rmoo{ r�� etvt '� 6 A a / It����((4\"?n�,{rt•1 Ill�CIP}1.RAk`a •t' 7A8� E Y t.)1t71Fc. rT /' mss}'\ „„ oT rr r tr v�3 I.Wor Yr t1 al] e9 .f1rH:NV1st. 5� a �� PR C1,�U• �,yU a' ':t, 1 r•ry r{* ��11;17• p, >•r r 5E��.m + �,� ,,,11, A•rLt,4l^r{JA7-+,t• dh.Y �//', T •r- Q dy .u 1 44. • / Vr,•• N. x U(,i „ ^t o+ //,�I'IpvR 4•6) Ir .1+ is++b 5 t�`rt. 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P ! nra0nnm Plait ruNl .FhT// nr/NIA1nYIX ArMr'f OAAAinOYr7 ,Mpt„/,ryy,ypyymrr�fNrrnW ul� • IMn1Ta1M1i Fr1 I )a rarnvn .�%...,, l*T '• rvn+nner�°h rr nirnn �nh 1/.11111/1 luh r/Jlrn,rn t.err rr rJJrrrAi I, 6 •a0� • `� J��'od Uy°� BASIS OF BEARINGS 1101E3 AND LEGEND U'FZl'� NO,1'y�ap 5pp+�8;�+0j[��� y{��7 Me Amen,ff.l.'vo•Jr r/far rrnfrrd;r rrfufr'f'Andi. slit/7/r.ru Ail Arran,' JJrm. dir.li,r 4l,*}-.M. EAST:.I 00 qV ACRES I ardmm rnrR.lrerhh rtlga nri7/rl',(no�lr(nrrrf'rI/u/! dr dkt lervrUrF/rakrSrrlRfevrbydfcdrrldhYrdJ/Gld ny. ;-1 OrhllrodJrr/atc..n,w fl}kdile!mar,Re Om heel.'u il/ri ak If rFmgvr,+l )/ Ass }ml,. f ® Ard1afu Afrin .hu'1}r!NIntel IPU+rr+/ OUN0 A PO11110N or tote DI NIP DA of TUI9•MAP OF 7115 r1rfFihlAnflt.d.fp,rr/Mrattvitrm/rL SUBM1510N11F1H01011eRAIIOH'FILEOINBOoi'.'I'OfMAPS AT 0 .1•71.0/h/hflYlr,qa trisifNO PAGES d9 NO AO,BAHTA CLAW..CUUITT'/RECORDO. "MTNriActornrglcrrt ,.SANTA CLARA COUNTY,CRILIFORNI a IIOTB ].01. •JPoAA{vA,f+VAff FAFEMFLf inn/I Ms Sunni.11nr¢1f flnnt,.hriAllnll111Jr•r A. 41.t r jv'n-tr MICR/AFtlfrvr _ Araudlvl,lhrrG4lrJnl,fMrl/i(i./,rmt/om'/iplr 11.11 A. nJ.1.•rvatra Jturq rlrrArrur I r'.,.•` PAUL.R.NOWACK MIDA560CIATES 11W.mitrem!yV 11111111 m+/rr*+r.nm'R armyrnr J ArjraA+nr CIVIL ENGINEERS-6VRVEYORE, (+41•1111•.1) ' , 1' 220 BTA1F± STREET SUITE'0' Ntr NAM not bran..%A(f/Ar. . I '• . . 1.09 AL'109,CALIF•ORI11A,B4022 • Orr / . Kr0 No 6 OX•7/gox J//s 1;6,- 'a ,76 hHBlT 2 or I. 5H55TH _.—._._.--____._.--..._..._.-.- SI.T 116 jI. EXHIBIT B Payment Schedule 1308780 r t g�•,�-.6= '.-. .�"`s.zn+w " *4�am�,. 9 e tN- " "w . mtw 4 gg � t4• �Rr� - 6f � -y "ix �L . ..tyto ° 4� �0 e - A?F;��y wt {yA �� ss= t1� � .f�-rvX �e �Iv16mo44s 7xe ✓� X3F vw,-.40,?Pv �taaYT � M �Vi�[8 � VNA `* 4� C ;;te -t X.rw ' t a D `v, :; ayis _ zrai :,z4 -z - . xL3- 5i Fa" A 6ivi- rr3l ' E-dv -vt` 'Yrz `z,17W, � L. l4 _. Ga -- Z4 ia Loan Amount $21,756.25 . Annual Interest Rate 3.00% Total#of Years 14 Closing Date 11/2/2009 Payment Payment Principal Due to City Payment# Amount- Interest Principal Paid Balance 21,756.25 12/10/2009 1 943.68 66.89 874.79 874.79 20,881.46 4/10/2010 2 943.68 208.81 734.87 1,609.65 20,146.60 12/10/2010 3 943.68 402.93 540.75 2,150.40 19,605.85 4/10/2011 4 943.68 196.06 747.62 2,898.02 18,858.23 12/10/2011 5 943.68 377.16 566.52 3,464.54 18,291.71 4/10/2012 6 943.68 182.92 760.76 4,225.31 17,530.94 12/10/2012 7 943.68 350.62 593.06 4,818.37 16,937.88 4/10/2013 8 943.68 169.38 774.30 5,592.67 16,163.58 12/10/2013 9 943.68 323.27 620.41 6,213.08 15,543.17 4/10/2014 10 943.68 155.43 788.25 7,001.33 14,754.92 12/10/2014 11 943.68 295.10 648.58 7,649.91 14,106.34 4/10/2015 12 943.68 141.06 802.62 8,452.53 13,303.72 12/10/2015 13 943.68 266.07 677.61 9,130.14 12,626.11 4/10/2016 14 943.68 126.26 817.42 9,947.56 11,808.69 12/10/2016 15 943.68 236.17 707.51 10,655.06 11,101.19 4/10/2017 16 943.68 111.01 832.67 11,487.73 10,268.52 12/10/2017 17 943.68 205.37 738.31 12,226.04 9,530.21 4/10/2018 18 943.68 95.30 848.38 13,074.42 8,681.83 12/10/2018 19 943.68 173.64 770.04 13,844.47 7,911.78 4/10/2019 20 943.68 79.12 864.56 14,709.03 7,047.22 12/10/2019 21 943.68 140.94 802.74 15,511.77 6,244.48 4/10/2020 22 943.68 62.44 881.24 16,393.00 5,363.25 12/10/2020 23 943.68 107.26 836.42 17,229.42 4,526.83 4/10/2021 24 943.68 45.27 898.41 18,127.83 3,628.42 12/10/2021 25 943.68 72.57 871.11 18,998.95 2,757.30 4/10/2022 26 943.68 27.57 916.11 19,915.05 1,841.20 12/10/2022 27 943.68 36.82 906.86 20,821.91 934.34 4/10/2023 28 943.68 9.34 934.34 21,756.25 0.00 LOAN AGREEMENT FOR PARCEL 4 LOAN AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND EDWARD & RAYLENE PAK d This Loan Agreement (the "Agreement") is made and entered into thisc), ay of November, 2009, by and between the TOWN OF LOS ALTOS HILLS, a public body corporate and politic (hereinafter, the "Town"), and:Edv aFd`&`Raylene Pak; a married couple, (hereinafter, the "Borrower"). RECITALS A. Borrower is the owner of property located in the Town's Eastbrook Subdivision Tract 5801 (the "Subdivision"), which said Property is located at 23235 Eastbrook Court, County of Santa Clara Parcel Number 331-24-012, which is legally described in Exhibit A attached hereto (the "Property"). B. Pursuant to "Agreement by Owner and or his Successors in Interest to Construct Future Sanitary Sewer Improvements", dated November 10, 1976 (the "1976 Agreement") between Borrower's predecessor-in-interest and the Town. Town contends that Borrower, along with the other owners of property within the Subdivision, is obligated to construct a new sanitary sewer disposal system providing an alternate sewer main for the disposal of sewage from the Subdivision and closing any manholes that are no longer necessary ("Improvements") upon notification from the Town. C. Borrower acknowledges that [s/he] had notice that the Property was subject to the obligations imposed by the 1976 Agreement, a copy of which was properly recorded with the County of Santa Clara Recorder's office. However, Borrower disputes the extent of the obligations as described in B, above. D By a letter dated September 29, 2008, Town determined that the Improvements were necessary and provided notice to Borrower of such decision in accordance with the 1976 Agreement. E. The parties agree that, for consideration described below, Borrower will acknowledge its obligation to construct the Improvements and has requested a loan from Town in order to pay a portion of the costs of the Improvements. F. Town and Borrower desire to enter into this Agreement to set forth the terms and conditions pursuant to which Town will make a loan to Borrower to fund a portion_of the costs of the Improvements. ARTICLE 1 LOAN TO BORROWER/ASSESSMENT Section 1.01 Loan Amount, Use of Proceeds. Town agrees to make and Borrower agrees to accept a loan of twenty one thousand seven hundred fifty six dollars and twenty five cents ($21,756.25) ("Loan") to pay for a portion of the costs associated with construction of a new sewer line replacing the existing sewer line and siphon crossing Permanente Creek, which will divert existing sewage flow on Eastbrook Avenue east of Mora Glen Drive towards West Loyola (north-west direction) away from the creek crossing ("Eligible Improvements"), subject to the terms and 1308791 conditions of this Agreement and either, at the Town's option: (1) a promissory note (the "Note"), and a deed of trust agreement (the "Deed of Trust") or (2) a lien pursuant to Civil Code Section 2881 on the Property and a consensual assessment pursuant to which the loan amount and interest shall be repaid in full in a maximum of 14 years to the Town via annual payments as part of the property tax and assessment invoices issued by the County of Santa Clara. This Agreement, and either (1) the Note and Deed of Trust or (2) the Lien pursuant to Civil Code Section 2881,.as determined by the Town, shall collectively be referred to as the"Loan Documents". The cost for construction of the Eligible Improvements is $174,050. Borrower and the other property owners within the Subdivision have determined to share the cost construction on a pro rata basis. Borrower's share of such cost is $21,756.25-plus-an additional $1,087.81 for construction contingency costs. Borrower shall pay the construction contingency amount upon execution of this Agreement. Borrower agrees that Borrower shall repay the loan amount together with interest accruing at the rate of three percent (3%) per annum within fourteen (14) years of execution of this Agreement. In consideration of Borrower's payment herein, Town shall pay the cost of construction of the Eligible Improvements. Borrower agrees that Town shall hold all Loan funds. Town shall in its sole discretion disburse and expend Loan funds to pay for the costs of construction of the Eligible Improvements. Town agrees to construct Eligible Improvements within 180 working days, unless such delays result where Town is prevented from doing so by acts or events beyond its reasonable control, including acts of God, governmental changes or unforeseen events. A working day is hereby defined as any day except Saturdays, Sundays, and on which the consultants and contractors hired by the Town are not prevented by inclement weather or conditions resulting immediately there from adverse to the current controlling operation or operations as determined by the Town Engineer. Section 1.02 Reserved. Section 1.03 Deed of Trust. As determined applicable by the Town, any Note shall be secured by a Deed of Trust on the Property, including any permanent improvements or fixtures (the"Deed of Trust"). Section 1.04 Acceleration. The Loan Documents shall provide for the acceleration of the Loan's unpaid principal balance upon Borrower's default at the Town's sole discretion, making all sums due advanced at the time of default immediately due and payable. The following shall also constitute events of default (each an "Event of Default") allowing for acceleration of the Loan: A. Liens; Attachment; Condemnation. (1) The recording of any claim of lien against the Property, except as provided in this Agreement; or (2) the condemnation, seizure or appropriation of, or occurrence of an uninsured casualty with respect to any material portion of the Property not cured within a reasonable time, as such cure, time, and materiality is determined by the Town in its sole and absolute discretion; or (3) the sequestration or attachment of, or any levy or execution upon the Property or any of the units thereon; or 1308791 B. Voluntary Bankruptcy; Insolvency: Dissolution. (1) Borrower files of a petition for relief under the Bankruptcy Reform Act of 1978 as amended and recodified ("Bankruptcy Act"), or under any other present or future state or federal law regarding bankruptcy, reorganization or other relief to debtors (collectively, "Debtor Relief Law"); or(2) Borrower's filing any pleading in any involuntary proceeding under the Bankruptcy Act or other Debtor Relief Law, which admits the jurisdiction or the court or the petition's material allegations regarding Borrower insolvency; or (3) Borrower's making a general assignment for the benefit of creditors; or (4) Borrower's applies for, or becomes subject to the appointment of, a receiver, trustee, custodian or liquidator of Borrower or any of its property; or (5) filing by Borrower of a petition seeking the liquidation or dissolution of Borrower or the commencement of any other procedure to liquidate, dissolve or terminate Borrower; or C. Involuntary Bankruptcy. Borrower fails to effect a full dismissal of any Involuntary petition under the Bankruptcy Act or any other Debtor Relief Law, that is filed against Borrower or in any way restrains or limits Borrower or the Town regarding the Loan Documents or the Property prior to the earlier of the entry of any order granting relief sought in the involuntary petition, or thirty (30) days after such petition is filed; or D. Sale/Assignment/Assumption. Borrower sells, transfers, or assigns the Property ownership to any other person or entity without the prior written approval of the Town. Section 1.05 Remedies. The Town may exercise from time to time any rights and remedies available to it at law or in equity or by statute in addition to, and not in lieu of, any rights and remedies expressly granted in the Loan Documents, in any other instrument between these parties, or in any agreement guaranteeing the Loan or the completion of construction of the Eligible Improvements. Section 1.06 Assessment as Alternative to Loan. As an alternative to the use of a deed of trust and promissory note, at the sole discretion of the Town, the Borrower agrees that the Town may impose a lien pursuant to Civil Code Section 2881 or Streets and Highways Code Section 5898.10, et seq., on the Property and Borrower will agree to and vote in favor of a consensual assessment on the property for the amount of the loan and any interest due thereon. The lien and consensual assessment will provide for repayment to the town on an annual basis as part of the annual property tax and assessment invoices issued by Santa Clara County. If the Town elects to impose a lien in accordance with this Agreement, Borrower shall pay the first annual payment in two installments, due upon invoice from the Town. The first installment, in an amount of $943.68, shall be invoiced on or about December 10, 2009. The second installment, in an amount of $943.68 shall be invoiced on or about April 10, 2010. Thereafter, the balance of the loan and any interest due, shall be paid as part of the annual property tax and assessment invoices issued by Santa Clara County, in amounts and on the dates shown in Exhibit B, attached hereto and incorporated by reference. If after completion of the project there are any remaining funds from the $1,087.81 payment for construction contingency costs, the parties may agree to apply the unused portion of such funds, as a credit towards the second installment for first annual payment. 1308791 ARTICLE 2 DISBURSEMENT OF LOAN Section 2.01 Initial Disbursement Conditions. The Town will commence the construction of the Eligible Improvements after Borrower has fulfilled to the Town's satisfaction, or obtained the Town's written waiver of, all of the following conditions; A. Executed Loan Documents. The Town has received all Loan Documents, duly executed in recordable form as appropriate by Borrower, and, as applicable, the Deed of Trust or Lien has been duly recorded against the Property. B. Representations. Borrower is not then in default in performance of any of the warranties, representations, covenants, or agreements contained herein and the representations set forth in Article 3 shall be true and correct. C. Consultants and Contractors. Borrower agrees and expressly acknowledges that Borrower grants Town full discretion to use loan funds to enter into any contract with the consultants, contractor or contractors (collectively, the"Contractors")for the Eligible Improvements. ARTICLE 3 REPRESENTATIONS AND WARRANTIES Borrower makes all of the representations and warranties set forth in this Article 3. Section 3.01 Validity. This Agreement and all other Loan Documents, when executed and delivered, shall be valid and binding upon Borrower and are enforceable in accordance with their respective terms. Section 3.02 No Litigation. There is no litigation, claims, actions, investigations proceedings or disputes pending or, to Borrower's knowledge, threatened against Borrower or the Property. Section 3.03 No Liens. Except as provided herein, no work of construction has commenced or shall commence on the Property and no materials have been or will be delivered to the Property prior to the recording of the Deed of Trust. No preliminary or stop notice has been received or filed; no claim of lien has been recorded against the Property and all persons performing work and providing materials with respect to the Property have been paid in full. 1308791 • Section 3.04 Insurance. If applicable as determined by the Town, Borrower has satisfied the Insurance Requirements set forth in the Deed of Trust("Insurance Requirements") and the policies are in full force and effect, Section 3.05 Taxes. Borrower has paid all taxes and all assessments due on the Property. ARTICLE 4 AFFIRMATIVE COVENANTS OF BORROWER Borrower makes all of the following covenants set forth in this Article 4 for the time stated. Section 4.01 Maintenance. Until the latter of the (i) date the Loan is repaid in full, or(ii) the date fourteen (14) years after completion of construction of the Eligible Improvements, Borrower shall maintain the Property in first-class condition and repair, at Borrower's own cost and expense. Borrower's obligation to maintain the Property as described herein shall also be secured by the Deed of Trust, if applicable. Section 4.02 Further Documents. Until repayment and performance in full of the Loan, Borrower shall furnish to the Town upon request all other instruments and documents in addition to those specifically referred to herein as may reasonably be required from time to time by the Town. Section 4.03 Payment of Taxes. Until repayment and performance in full of the Loan, Borrower shall: A. Duly and punctually pay and discharge all taxes, assessments and other charges against the Property prior to the date when they shall become delinquent, and all charges for labor, materials and supplies that if unpaid might become a lien encumbering any part of the property of Borrower. B. Duly and punctually pay principal and interest on all debt obligations of Borrower related to the Property. Section 4.04 Prevailing Wages. Borrower acknowledges the Town shall be responsible for payment of prevailing wages for all construction work required under this Agreement. For the purposes of this Agreement, "prevailing wages" means not less than the general prevailing rate of per diem wages, as defined in Section 1773 of the California Labor Code and Subchapter 3 of Chapter 8, Division 1, Title 8 of the California Code of Regulations (Section 16000 et seq.), and as established by the Director of the California Department of Industrial Relations ("DIR") for the respective craft classification. 1308791 Section 4.05 Prohibition on Sale, Transfers or Assignments of Property Secured by Deed of Trust. If all or any part of (i) the Borrower's interest in the Property, or (ii) the property secured by the Deed of Trust, if applicable, is sold, transferred or assigned by Borrower without Town's prior written consent, Town may, at Town's option, declare the outstanding balance of the Loan to be immediately due and payable. If Town exercises such option to accelerate, Town shall mail Borrower notice of acceleration in accordance with Section 5.04 hereof. Such notices shall provide a period of not less than 30 calendar days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Town may, without further notice or demand on Borrower, invoke any remedies permitted by law or in equity. This Section 4.05 does not apply to any interest conveyed in exchange for refinancing the Property as long as Borrower retains ownership and the Borrower or a family member continues to occupy the Property. ARTICLE 5 GENERAL PROVISIONS Section 5.01 Assistance. Nothing in this Agreement shall be construed to obligate the Town to provide additional funds to Borrower through any other Town assistance program. Section 5.02 Reserved. Section 5.03 Waiver. Any waiver by the Town of any term, condition or requirement of any of the Loan Documents shall not constitute a waiver of any other term, condition or requirement hereof or constitute a waiver of the same term, condition or requirement in any other instance. Section 5.04 Notices. All notices and other communications required or permitted under this Agreement shall be in writing, and may be delivered by hand, by facsimile transmission with verification of receipt, or by United States mail, postage prepaid and return receipt requested, addressed to the respective parties as follows: • 1308791 To Town: Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 Attention: City Manager To Borrower: Edward & Raylene Pak 23235 Eastbrook Court Los Altos Hills, CA 94024 or to such other address as any party may designate by notice in accordance with this Section. Notice shall be deemed given on the date of personal delivery by hand, or the date of receipt of facsimile transmission (with verification receipt), or on the date delivery is refused, if applicable. Section 5.06 Time. Time is of the essence in this Agreement. Section 5.07 Exhibits. Exhibit A and Exhibit B, attached hereto, are incorporated by this reference. Section 5.08 Amendments. Amendments to this Agreement shall be effective only upon the mutual agreement in writing of the parties hereto. No amendment shall be binding upon the Town unless duly executed by an appropriate officer of the Town. Section 5.09 Hold Harmless. Borrower agrees to indemnify, defend and hold the Town, its officers and employees, harmless from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of (i) Borrower's performance or non-performance under any of the Loan Documents, or any other agreement executed pursuant thereto. Borrower shall promptly notify the Town of any claims of which Borrower has notice or knowledge. This indemnification shall not apply to any suits, actions, claims, causes of action, costs, demands,judgments and liens arising from the Town's gross negligence or willful misconduct. Section 5.10 Successors and Assigns. Borrower binds itself, its partners, successors, assigns, and legal representatives to the Town with respect to all covenants, agreements, and obligations contained in the Loan Documents. Borrower shall not assign this Agreement in whole or in part without the written consent of the Town. Section 5.11 Relationship. It is understood and agreed by and between the parties hereto that Borrower, in the performance of its obligations under the Loan Documents or any other agreement executed pursuant to this Agreement, shall 1308791 not act, nor is it at any time authorized to act, as the agent or representative of the Town in any matter. Borrower agrees that it will not, in any matter, hold itself out as the agent or representative of the Town in any manner, or act in such a fashion as would give the impression to a reasonable person, that Borrower is acting in such a capacity. The relationship between Borrower and the Town is, and shall remain, solely that of borrower and Town. At all times Borrower shall act as Town and shall be an independent entity and not an agent or employee of the Town. Section 5.12 Document. This Agreement, including all Exhibits, the Note and the Deed of Trust or Lien, as applicable, together embody the agreement between the Town and Borrower for the Loan and its terms and verbal conditions. No agreements or conversations with any officer, agent or employee prior to the execution of this Agreement, shall affect or modify any of the terms or obligations contained in the Loan Documents. Any such verbal agreement considered unofficial information and in no way binding upon the Town. Section 5.13 Severability of Provisions. If any provisions of this Agreement are held invalid, the remainder of this Agreement shall not be affected hereby, if such remainder would then continue to conform to the terms and requirements of applicable law. Section 5.14 Conflict. If any term or provision in this Agreement conflicts with any term or provision of the Note, the term or provision in the Note shall control. Except for any subordination of the Deed of Trust, if any term or provision of any other Loan Document conflicts with any term or provision of this Agreement, the term or provision in this Agreement shall control. APPR VE AS T FORM TOWN OF LOS ALTOS HILLS By: By: CQCJQ Steven T. Mattas, City Attorney By: Carl Cahill City Manager BORROWER Pk By: Edward Pak 0� By: l xylene Pak 1308791.1 1308791 EXHIBIT A Description of Property Address: 23235 Eastbrook Court, Los Altos Hills, CA 94024 APN: 331-24-012 Lot Number in Tract 5901: Lot#4 (See next page for Map of Tract 5801) 1308791 i -• • Atha pi . JUNIPERO SERRA FREEWAY (HIGHWAY 200) f J'n I I • ) II 1'ISLI•n Is.cr �fiin.,/�r AylnJ nr.It'n ry r..rru[ AO h.rrt:(.1,.',1,51.1.117/4.,7.:,". r(n,5 aiiis�.,. ..'.•y�„� f r a d19 17• t lir rt8y9 ARlran rcfay/6r-I . tY' / / f ry�,°' 4 tl Ai'to' fia:tt ;,;4•., b�.pr� �T�+fBeAt. 1'•co`r ? ,,,„,, .,,nnletmJ•/ t alo ridaj,1�4�� a. L r \6 ru,lsL J' I• . r J +r,IliE•ATVDI 10.11' i- RtaI.11Ar 4rl ♦1p�n o• ktJb`+v* r-'�+� 4• +' 1,..2111•. ` p 7 ��*+ ° r L.•1 it.. 4 7. vrltRa X ,frt'i0�� �1, l.tntIJr <"��J l re .s utt5sboi ' W Lima%At, tt� nA,% n,ryj i ����1 rte.1 ir.15' 7 coli \ ° �t,t 'l. t ^r<tb ¢� r i 4 ‘.,_ ... / ` 1�0a a`p �1t. 64,...,2.- A.A ^` �.v rtlibiar'll. 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'I { 4 t /•` ;S`ryA`r• 44 /AV a '' n ••uTt�l, I ,a ` t,, 'y�4 +l1 �I „�,�;rr rti9T,� t1i-�,,,4, 4...,}i�rY.pr1"(�` y ,d..4-:,..,� F,' I.all01)t. \r/4T`�r�Ir .S 1 �44,P t•4 tnrIITY �9) •1t ii .--------A-711— •b8p a'a BASIS OF BEARINGS IOiE9 ED LEGEND TRACT O. 5804J:e,,,,,fN.J !a'.aJYr/Atrrrt/rr/krr/ararFe, Arl,ve riff/aura err! marmot frr/ arfrfrar/rirarl4r9-r' rr:Am rnrNrlrtr/ re4ero /rdAnnr/rTrrf'r//,rh YJrAFrlv'•A7nMrthritdk/z.d7r//alrji iI<id1r. ���Iry, 1r`'0K CRESdie?!II m4%51 delr.vmv} r/1Nq Ar/bad,Stn /ara km pit irk Nrkit dk J,,,q Wows,f l r IiJrrt/tt fl4rc rn.l 0 Jrdrrha nlal nmkr}..oc t.,rarmr/ Arrrrdir�iINA,rs/lithM•/Jrpn/aa,01.4mtr. f ® Mlt./d Alar.-JrimAnr4Al:,nre/wit frrer GEWDAPORTION OFLDTB Di MID DA orrno-MAEOrTN6 __ • aeAM Ilan ryw/iM,nlu!'Am:rrfehf 9VBDIVIGIDN DrTNB'NALE RANOH'FILED Ili BOOr.'1'orIAA O M a itri No Aid 4i'kroPl i d6 treri4JO FAGE9 AHD AD,BANTA CLARA C uitrr ECORo6. ella SANTA CLARA COUNTY➢CALIFORNIA IIOTe -Lai. r J11104 raaAFAafA/ftr „ MI,/.Me Nv,rrr rhnr0r/.ml/t,diatirrfl.5///r•V I'. .1,1.J r SA wirmr MITA/AJDWI ker/hid alAll.11 JnirrlrYrdh lnl srrT ritte gari rrr tie mi.f,r 'owe trend f.it Mrrr • PAUL.E.NOWACK MID ASSOC1ATES,IIIC. rrnttr ml iry nn/um,/mrr.rr m'/)Grin}rnl7 Ar/r/•rl+e/ •;,,,.y CMI.ENGINEERS-61.1RVEYOR5 /Af•nrr.r 5 220 0TATE STREET 9U17E'E' N(r rrlalfrt llor d»tr r m.41r/Ac. / :' 0.ra. 209 STA1E TREETRNIA, 'e! Orr 4 l ` A s OX"77 t 7.X _ / e f�ner -r t76 OHHE r 2 Or 1 9H5HT5 .—._-..�.�_.__.____..__. .._ _....T. ...____ ._..—_. t 51AT EXHIBIT B Payment Schedule 1308791 xstWri e" fix1. 9sat a F,til- � ST .lam! r 71 vP3 Y,ri x •;;:z-• O ' x,r e 4s 5 v �>,�=�� ,�ap w_ H e5fiR 0 �.1.,.' ll Xea��f1.Y�i�;...;fin 46:42,j�t e._,.::A'�'R�y, 1J.... 1. Loan Amount $21,756.25 Annual Interest Rate 3.00% Total#of Years 14 Closing Date 11/2/2009 Payment Payment Principal Due to City Payment# Amount Interest Principal Paid Balance r _ . ., . __ 21,756.25 12/10/2009 1 943.68 68.89 874.79 874.79 20,881.46 4/10/2010 2 943.68 208.81 734.87 1,609.65 20,146.60 12/10/2010 3 943.68 402.93 540.75 2,150.40 19,605.85 4/10/2011 4 943.68 196.06 747.62 2,898.02 18,858.23 12/10/2011 5 943.68 377.16 566.52 3,464.54 18,291.71 4/10/2012 6 943.68 182.92 760.76 4,225.31 17,530.94 12/10/2012 7 943.68 350.62 593.06 4,818.37 16,937.88 4/10/2013 8 943.68 169.38 774.30 5,592.67 16,163.58 12/10/2013 9 943.68 323.27 620.41 6,213.08 15,543.17 4/10/2014 10 943.68 155.43 788.25 7,001.33 14,754.92 12/10/2014 11 943.68 295.10 648.58 7,649.91 14,106.34 4/10/2015 12 943.68 141.06 802.62 8,452.53 13,303.72 12/10/2015 13 943.68 266.07 677.61 9,130.14 12,626.11 4/10/2016 14 943.68 126.26 817.42 9,947.56 11,808.69 12/10/2016 15 943.68 236.17 707.51 10,655.06 11,101.19 4/10/2017 16 943.68 111.01 832.67 11,487.73 10,268.52 12/10/2017 17 943.68 205.37 738.31 12,226.04 9,530.21 4/10/2018 18 943.68 95.30 848.38 13,074.42 8,681.83 12/10/2018 19 943.68 173.64 770.04 13,844.47 7,911.78 4/10/2019 20 943.68 79.12 864.56 14,709.03 7,047.22 12/10/2019 21 943.68 140.94 802.74 15,511.77 6,244.48 4/10/2020 22 943.68 62.44 881.24 16,393.00 5,363.25 12/10/2020 23 943.68 107.26 836.42 17,229.42 4,526.83 4/10/2021 24 943.68 45.27 898.41 18,127.83 3,628.42 12/10/2021 25 943.68 72.57 871.11 18,998.95 2,757.30 4/10/2022 26 943.68 27.57 916.11 19,915.05 1,841.20 12/10/2022 27 943.68 36.82 906.86 20,821.91 934.34 4/10/2023 28 943.68 9.34 934.34 21,756.25 0.00 LOAN AGREEMENT FOR PARCEL 5 by CO LOAN AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND DANIEL BROWN & ISABEL BROWN,AS TRUSTEES OF THE 1999 TRUST FOR DANIEL& ISABEL BROWN This Loan Agreement (the "Agreement") is made and entered into this day of December, 2009, by and betweenthe-,T QWN_QELOS_ALTOS HILLS, a public body corporate and politic (hereinafter, the "Town"), and DariielAYlsabe I_Brown; as trustees of the 1999 Trust for Daniel & Isabel Brown, (hereinafter, the "Borrower"). RECITALS A. Borrower is the owner of property located in the Town's Eastbrook Subdivision Tract 5801 (the "Subdivision"), which said Property is located at 23215 Eastbrook Court, County of Santa Clara Parcel Number 331-24-013,.which is legally described in Exhibit A attached hereto (the"Property"). B. Pursuant to "Agreement by Owner and or his Successors in Interest to Construct Future Sanitary Sewer Improvements", dated November 10, 1976 (the "1976 Agreement") between Borrower's predecessor-in-interest and the Town. Town contends that Borrower, along with the other owners of property within the Subdivision, is obligated to construct a new sanitary sewer disposal system providing an alternate sewer main for the disposal of sewage from the Subdivision and closing any manholes that are no longer necessary ("Improvements") upon notification from the Town. C. Borrower acknowledges that [s/he] had notice that the Property was subject to the obligations imposed by the 1976 Agreement, a copy of which was properly recorded with the County of Santa Clara Recorder's office. However, Borrower disputes the extent of the obligations as described in B, above. D By a letter dated September 29, 2008, Town determined that the Improvements were necessary and provided notice to Borrower of such decision in accordance with the 1976 Agreement. E. The parties agree that, for consideration described below, Borrower will acknowledge its obligation to construct the Improvements and has requested a loan from Town in order to pay a portion of the costs of the Improvements. F. Town and Borrower desire to enter into this Agreement to set forth the terms and conditions pursuant to which Town will make a loan to Borrower to fund a portion of the costs of the Improvements. ARTICLE 1 LOAN TO BORROWER/ASSESSMENT Section 1.01 Loan Amount, Use of Proceeds. Town agrees to make and Borrower agrees to accept a loan of twenty one thousand seven hundred fifty six dollars and twenty five cents ($21,756.25) ("Loan") to pay for a portion of the costs associated with construction of a new sewer line replacing the existing sewer line and siphon crossing Permanente Creek, 1308795 which will divert existing sewage flow on Eastbrook Avenue east of Mora Glen Drive towards West Loyola (north-west direction) away from the creek crossing ("Eligible Improvements"), subject to the terms and conditions of this Agreement and either, at the Town's option: (1) a promissory note (the "Note"), and a deed of trust agreement (the "Deed of Trust") or (2) a lien pursuant to Civil Code Section 2881 on the Property and a consensual assessment pursuant to which the loan amount and interest shall be repaid in full in a maximum of 14 years to the Town via annual payments as part of the property tax and assessment invoices issued by the County of Santa Clara. This Agreement, and either (1) the Note and Deed of Trust or (2) the Lien pursuant to Civil Code Section 2881, as determined by the Town, shall collectively be referred to as the"Loan Documents". The cost for construction of the Eligible Improvements is $174,050. Borrower and the other property owners within the Subdivision have determined to share the cost construction on a pro rata basis. Borrower's share of such cost is $21,756.25 plus an additional $1,087.81 for construction contingency costs. Borrower shall pay the construction contingency amount upon execution of this Agreement. Borrower agrees that Borrower shall repay the loan amount together with interest accruing at the rate of three percent (3%) per annum within fourteen (14) years of execution of this Agreement. In consideration of Borrower's payment herein, Town shall pay the cost of construction of the Eligible Improvements. Borrower agrees that Town shall hold all Loan funds. Town shall in its sole discretion disburse and expend Loan funds to pay for the costs of construction of the Eligible Improvements. Town agrees to construct Eligible Improvements within 180 working days, unless such delays result where Town is prevented from doing so by acts or events beyond its reasonable control, including acts of God, governmental changes or unforeseen events. A working day is hereby defined as any day except Saturdays, Sundays, and on which the consultants and contractors hired by the Town are not prevented by inclement weather or conditions resulting immediately there from adverse to the current controlling operation or operations as determined by the Town Engineer. Section 1.02. Reserved. Section 1.03 Deed of Trust. As determined applicable by the Town, any Note shall be secured by a Deed of Trust on the Property, including any permanent improvements or fixtures (the"Deed of Trust"). Section 1.04 Acceleration. The Loan Documents shall provide for the acceleration of the Loan's unpaid principal balance upon Borrower's default at the Town's sole discretion, making all sums due advanced at the time of default immediately due and payable. The following shall also constitute events of default (each an "Event of Default") allowing for acceleration of the Loan: A. Liens; Attachment; Condemnation. (1) The recording of any claim of lien against the Property, except as provided in this Agreement; or (2) the condemnation, seizure or appropriation of, or occurrence of an uninsured casualty with respect to any material portion of the Property not cured within a reasonable time, as such cure, time, and materiality is determined by the Town in its sole and absolute discretion; or (3) the sequestration or attachment of, or any levy or execution upon the Property or any of the units thereon; or 1308795 B. Voluntary Bankruptcy; Insolvency: Dissolution. (1) Borrower files of a petition for relief under the Bankruptcy Reform Act of 1978 as amended and recodified ("Bankruptcy Act"), or under any other present or future state or federal law regarding bankruptcy, reorganization or other relief to debtors (collectively, "Debtor Relief Law"); or(2) Borrower's filing any pleading in any involuntary proceeding under the Bankruptcy Act or other Debtor Relief Law, which admits the jurisdiction or the court or the petition's material allegations regarding Borrower insolvency; or (3) Borrower's making a general assignment for the benefit of creditors; or (4) Borrower's applies for, or becomes subject to the appointment of, a receiver, trustee, custodian or liquidator of Borrower or any of its property; or (5) filing by Borrower of a petition seeking the liquidation or dissolution of Borrower or the commencement of any other procedure to liquidate, dissolve or terminate Borrower; or C. Involuntary Bankruptcy. Borrower fails to effect a full dismissal of any Involuntary petition under the Bankruptcy Act or any other Debtor Relief Law, that is filed against Borrower or in any way restrains or limits Borrower or the Town regarding the Loan Documents or the Property prior to the earlier of the entry of any order granting relief sought in the involuntary petition, or thirty (30) daysafter such petition is filed; or D. Sale/Assignment/Assumption. Borrower sells, transfers, or assigns the Property ownership to any other person or entity without the prior written approval of the Town. Section 1.05 Remedies. The Town may exercise from time to time any rights and remedies available to it at law or in equity or by statute in addition to, and not in lieu of, any rights and remedies expressly granted in the Loan Documents, in any other instrument between these parties, or in any agreement guaranteeing the Loan or the completion of construction of the Eligible Improvements. Section 1.06 Assessment as Alternative to Loan. As an alternative to the use of a deed of trust and promissory note, at the sole discretion of the Town, the Borrower agrees that the Town may impose a lien pursuant to Civil Code Section 2881 or Streets and Highways Code Section 5898.10, et seq., on the Property and Borrower will agree to and vote in favor of a consensual assessment on the property for the amount of the loan and any interest due thereon. The lien and consensual assessment will provide for repayment to the town on an annual basis as part of the annual property tax and assessment invoices issued by Santa Clara County. If the Town elects to impose a lien in accordance with this Agreement, Borrower shall pay the first annual payment in two installments, due upon invoice from the Town. The first installment, in an amount of $943.68, shall be invoiced on or about December 10, 2009. The second installment, in an amount of $943.68 shall be invoiced on or about April 10, 2010. Thereafter, the balance of the loan and any interest due, shall be paid as part of the annual property tax and assessment invoices issued by Santa Clara County, in amounts and on the dates shown in Exhibit B, attached hereto and incorporated by reference. If after completion of the project there are any remaining funds from the $1,087.81 payment for construction contingency costs, the parties may agree to apply the unused portion of such funds, as a credit towards the second installment for first annual payment. 1308795 - ARTICLE 2 DISBURSEMENT OF LOAN Section 2.01 Initial Disbursement Conditions. The Town will commence the construction of the Eligible Improvements after Borrower has fulfilled to the Town's satisfaction, or obtained the Town's written waiver of, all of the following conditions: A. Executed Loan Documents. The Town has received all Loan Documents, duly executed in recordable form as appropriate by Borrower, and, as applicable, the Deed of Trust or Lien has been duly recorded against the Property. B. Representations. Borrower is not then in default in performance of any of the warranties, representations, covenants, or agreements contained herein and the representations set forth in Article 3 shall be true and correct. C. Consultants and Contractors. Borrower agrees and expressly acknowledges that Borrower grants Town full discretion to use loan funds to enter into any contract with the consultants, contractor or contractors (collectively, the"Contractors") for the Eligible Improvements. ARTICLE 3 • REPRESENTATIONS AND WARRANTIES Borrower makes all of the representations and warranties set forth in this Article 3. Section 3.01 Validity. This Agreement and all other Loan Documents, when executed and delivered, shall be valid and binding upon Borrower and are enforceable in accordance with their respective terms. Section 3.02 No Litigation. There is no litigation, claims, actions, investigations proceedings or disputes pending or, to Borrower's knowledge, threatened against Borrower or the Property. Section 3.03 No Liens. Except as provided herein, no work of construction has commenced or shall commence on the Property and no materials have been or will be delivered to the Property prior to the recording of the Deed of Trust. No preliminary or stop notice has been received or filed; no claim of lien has been recorded against the Property and all persons performing work and providing materials with respect to the Property have been paid in full. 1308795 Section 3.04 Insurance. If applicable as determined by the Town, Borrower has satisfied the Insurance Requirements set forth in the Deed of Trust ("Insurance Requirements") and the policies are in full force and effect. Section 3.05 Taxes. - Borrower has paid all taxes and all assessments due on the Property. ARTICLE 4 AFFIRMATIVE COVENANTS OF BORROWER Borrower makes all of the following covenants set forth in this Article 4 for the time stated. Section 4.01 Maintenance. Until the latter of the (i) date the Loan is repaid in full, or(ii) the date fourteen (14) years after completion of construction of the Eligible Improvements, Borrower shall maintain the Property in first-class condition and repair, at Borrower's own cost and expense. Borrower's obligation to maintain the Property as described herein shall also be secured by the Deed of Trust, if applicable. Section 4.02 Further Documents. Until repayment and performance in full of the Loan, Borrowershall furnish to the Town upon request all other instruments and documents in addition to those specifically referred to herein as may reasonably be required from time to time by the Town. Section 4.03 Payment of Taxes. Until repayment and performance in full of the Loan, Borrower shall: A. Duly and punctually pay and discharge all taxes, assessments and other charges against the Property prior to the date when they shall become delinquent, and all charges for labor, materials and supplies that if unpaid might become a lien encumbering any part of the property of Borrower. B. Duly and punctually pay principal and interest on all debt obligations of Borrower related to the Property. Section 4.04 Prevailing Wages. Borrower acknowledges the Town shall be responsible for payment of prevailing wages for all construction work required under this Agreement. For the purposes of this Agreement, "prevailing wages" means not less than the general prevailing rate of per diem wages, as defined in Section 1773 of the California Labor Code and Subchapter 3 of Chapter 8, Division 1, Title 8 of the California Code of Regulations (Section 16000 et seq.), and as established by the Director of the California Department of Industrial Relations ("DIR") for the respective craft classification. 1308795 Section 4.05 Prohibition on Sale, Transfers or Assignments of Property Secured by Deed of Trust. If all or any part of (i) the Borrower's interest in the Property, or (ii) the property secured by the Deed of Trust, if applicable, is sold, transferred or assigned by Borrower without Town's prior written consent, Town may, at Town's option, declare the outstanding balance of the Loan to be immediately due and payable. If Town exercises such option to accelerate, Town shall mail Borrower notice of acceleration in accordance with Section 5.04 hereof. Such notices shall provide a period of not less than 30 calendar days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Town may, without further notice or demand on Borrower, invoke any remedies permitted by law or in equity. This Section 4.05 does not apply to any interest conveyed in exchange for refinancing the Property as long as Borrower retains ownership and the Borrower or a family member continues to occupy the Property. ARTICLE 5 GENERAL PROVISIONS Section 5.01 Assistance. Nothing in this Agreement shall be construed to obligate the Town to provide additional funds to Borrower through any other Town assistance program. Section 5.02 Reserved. Section 5.03 Waiver. Any waiver by the Town of any term, condition or requirement of any of the Loan Documents shall not constitute a waiver of any other term, condition or requirement hereof or constitute a waiver of the same term, condition or requirement in any other instance. Section 5.04 Notices. All notices and other communications required or permitted under this Agreement shall be in writing, and may be delivered by hand, by facsimile transmission with verification of receipt, or by United States mail, postage prepaid and return receipt requested, addressed to the respective parties as follows: 1308795 To Town: Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 Attention: City Manager To Borrower: Daniel & Isabel Brown, Trustees of the 1999 Trust for Daniel & Isabel Brown 23215 Eastbrook Court Los Altos Hills, CA 94024 or to such other address as any party may designate by notice in accordance with this Section. Notice shall be deemed given on the date of personal delivery by hand, or the date of receipt of facsimile transmission (with verification receipt), or on the date delivery is refused, if applicable. Section 5.06 Time. Time is of the essence in this Agreement. Section 5.07 Exhibits. Exhibit A and Exhibit B, attached hereto, are incorporated by this reference. Section 5.08 Amendments. Amendments to this Agreement shall be effective only upon the mutual agreement in writing of the parties hereto. No amendment shall be binding upon the Town unless duly executed by an appropriate officer of the Town. Section 5.09 Hold Harmless. Borrower agrees to indemnify, defend and hold the Town, its officers and employees, harmless from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of (i) Borrower's performance or non-performance under.any of the Loan Documents, or any other agreement executed pursuant thereto. Borrower shall promptly notify the Town of any claims of which Borrower has notice or knowledge. This indemnification shall not apply to any suits, actions, claims, causes of action, costs, demands,judgments and liens arising from the Town's gross negligence or willful misconduct. Section 5.10 Successors and Assigns. Borrower binds itself, its partners, successors, assigns, and legal representatives to the Town with respect to all covenants, agreements, and obligations contained in the Loan Documents. Borrower shall not assign this Agreement in whole or in part without the written consent of the Town. 1308795 Section 5.11 Relationship. It.is understood and agreed by and between the parties hereto that Borrower, in the performance of its obligations under the Loan Documents or any other agreement executed pursuant to this Agreement, shall not act, nor is it at any time authorized to act, as the agent or representative of the Town in any matter. Borrower agrees that it will not, in any matter, hold itself out as the agent or representative of the Town in any manner, or act in such a fashion as would give the impression to a reasonable person, that Borrower is acting in such a capacity. The relationship between Borrower and the Town is, and shall remain, solely that of borrower and Town. At all times Borrower shall act as Town and shall be an independent entity and not an agent or employee of the Town. Section 5.12 Document. This Agreement, including all Exhibits, the Note and the Deed of Trust or Lien, as applicable, together embody the agreement between the Town and Borrower for the Loan and its terms and verbal conditions. No agreements or conversations with any officer, agent or employee prior to the execution of this Agreement, shall affect or modify any of the terms or obligations contained in the Loan Documents. Any such verbal agreement considered unofficial information and in no way binding upon the Town. Section 5.13 Severability of Provisions. If any provisions of this Agreement are held invalid, the remainder of this Agreement shall not be affected hereby, if such remainder would then continue to conform to the terms and requirements of applicable law. Section 5.14 Conflict. If any term or provision in this Agreement conflicts with any term or provision of the Note, the term or provision in the Note shall control. Except for any subordination of the Deed of Trust, if any term or provision of any other Loan Document conflicts with any term or provision of this Agreement, the term or provision in this Agreement shall control. APPROVED AS TO FORM TOWN OF LOS ALTOS HILLS By: CcrQ_By: CDQ Steven T. Mattas, City Attorney By: Carl Cahill City Manager BORROWER By: Daniel Brown As Trustee of the 1999 Trust for Daniel & Isabel Brown . . ... . By: Isabel Brown As Trustee of the 1999 Trust for Daniel & Isabel Brown 1308795.1 1308795 . . . . EXHIBIT A Description of Property Address: 23215 Eastbrook Court, Los Altos Hills, CA 94024 APN: 331-24-013 Lot Number in Tract 5901: Lot#5 (See next page for Map of Tract 5801) 1308795 Fd.gal R'd /°•n JUIJ1PERO SERRA FREEWAY (HIGHWAY 280) • • • !, • • No frmeueAa. 965.66' / �il'°na�'Jf!'1[7id "t.. v ,R'� A4e4rs(cssi al3siej_.f [ SG N.5d9901'W. 150.51• Nedll it 1 4 , I _ P""""Z.8764,,,,,,,,..,,, H,9pl9 Selbi'daaA,it,141.Cu•• a li t; c(' 90 4.0•, H.4T40'47W,15112 j ,,t 4`� 0 f q,., , ¢q 9'' hod ,fy,PA BCAl54 1%60' 'L1 5'; .•,��n rrxJauS 4JrEu(slll x1379) „?ky�o i•1a *---" P`yra 1 P. y q a t rT �' t Jr. t9. ^� 4 l .! .,IL36'd000W' - ' • 7d.�' I.OIOd 1Ae Vt' y \d 96!,75 f :...I •er.. -u. 4 0 4,y •t;,� >,tg, ra .,�•,hl.ro'n7.0D'e a0.x3' e 1.002!1A6. e6 '1p• k<S ›('.i. G ,.p S 1* 4 ^T,p 1 n i0. 7 °i.t` eg°z'E elf ~� 1 I -,g e 2 r tat / �$, L�4 >° r �$ P W - v I.OD041At, aaaD•a S! aee J4r 00...•••• etaj/ .,J�• 11378=Ae n''' S`:\, R �('m? 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CCTV-. o .Z I'T.4S'- 4F x4.6440-r . ` {*' 'aalrcr swuAlrsevrl I R./ 1N,1/l .i_ --_1_114i'14ox. ___: ___Nae•worw- 1' .�' R j /•~usevcvrr.,.. .v R 4.09'63'46'- - 1c/[P GbD\� --L-. -L.__-_�._�.L 1"".1 4.27.71'4.10' v-3237• v -- _ 3--- -A--- �t `^'."' a7 • .!-� ___ �e bs�•e \ 7.. •IW__7.t.. .JD T----- -.-•' �+nr -..�b• MAY , ,0.x.7!..• - :105.12'` •J 219.051.1".314.a.6"73°.... t2W Lefa.aL � -p •ori'' y ��' .. •• ; <•-'a^fmll 1 9dt�4I .';i_ .Il- t 9696' a°' ' i ".NF3!44O E x5A0''! a a r .EASTBR00K- 1 AVENUE N•46'!G'00'W. • $ 'J 10 9.74' }T • •1 �� a �,?.;,/,t'sp.ear Jn loeiI) ti' R''', -�'--'qua,:Wawa Now FAJeMEaT ago ae.fell - `.y a aMcCain __•P -tee 9'//on 0pP 6N0aFlA5TB4o0K AVMS 9 P 1 J I..13.etEFNC14eeNfMDf NNE1'Ln,,,„--„I y�1 {�a•4' Y W ERRI'A4ITIDN aC10M001 7H/JPetnon Or EAJraIWe AM.lJ AeAagaVea 14CNLWee/YAJMJ Ja'lTleP e( 8 y ` 611peRNfICCR'DAIED 1U01N'YJiIIK \\ I� 1r JJAM4aDUEe • 3 Y itti 'o -\1\ eXe > Gwe(ee47ren WHbW4J(BCC.DeruJ. Ir•!EAJJe.69p:. w: 3 o [ands s/Jmt{/I [ortdi er J.lJrnen Lands a� Fi'//Jpin. .& s • a,h BASIS OF BEARINGS NOTES AND LEGEND 'TRikcar N® 809 , TAe'vo le/le able1aoW of/he een/./..I/Eoslirod Avenue Aq d5/roues oaf diiarasmis PiesAoen AI AVanddrrtne4 Jffl a/ • assbawn on/ha{eer/a/n Map en/iY/ef:Pecade/'Jvrvey'a/psrli T•fid/ue 6mdv/JnrJ/nsio/JSJXtJsJnda�d/andJv6d'ndedFdli/rsp. ������®�� ACRES elide 5/oodsL eflife...Wisron Dfhfe Ilde 4 naf,San Mhnro • Roaufa'filed in Beak 67...9os,Spafe e4,Jan/a C%ra Couely 0 /nI LIAI MAW Cou ,5)5 dard Iloaunrid Records owfidens°ate Joys of6,,ftpr6rr1NI}my. 0 /nd'mfeaA/(Dun& nlrra'lla7umra/orfadese BEING A PORTION OF LOTS SI AND 94 OF THE"MAP OP THE D /adltdlu Axe'4'Iratgre,anhu raffmosr aalyd, o /,rd/min Ji{.LG'/reeRpyJsor/a destf SUBDIVISION OF THE HALE RANCH.FILED IN BOOKT OF MAPS AT antra Na Rness armi/1e.( PAGES a5 AND 49,SANTA CLARA COUNTY RECORDS. • NOTE 5.o•E. a STOam ormiNael EASE/ABUT .SANTA CLARA COUNTYYCALIFOR IA Pin,A Me/uvence e/duilding,..//r,de/m7dyraJ'nfp/ons fv S.5.E .SAJ/?AR).SEWER EASEMENT /nd/v/due/sihe s1Mde mbn/rf fa[and acct/apnulF//ee/n/Iry R S.C..PUBLIC Sfelle9 EASSMEBT firs•m.II)aware//amt meaeeNJfif 1�l�Gryt/'�RI�.aIl/aeJ PAUL E.NOWACK AND ASSOCIATES,INC. /NJ•J7a6.9) • CIVIL ENGINEERS-SURVEYORS ' Area w'011n eke Bonier J%4°6/Ae. 220 STATE STREET r SUITE'S / �J LOS ALTOS,CALIFORNIA,94022 OPT,z,./97‘ Ame Aa 6'/0.797/l e,r�T j al f4, �NSer 0,14- eFG . SHEET 2 OF 2 SHEETS J6 ...-.. ... .. 5147 • 36 EXHIBIT B Payment Schedule 1308795 ..r,, "jt vx s y� Y , A k.6 s a `mw. ", .k-- ,A:ifi` .4 gy N �w'.W. 6 . �' n? 4{ fi. `" -.446,,,:_t.:7" `" -tom Loan Amount $21,756.25 Annual Interest Rate 3.00% Total#of Years 14 Closing Date 11/2/2009 Payment Payment Principal Due to City Payment# Amount Interest Principal Paid Balance 21,75G.25 12/10/2009 1 943.68 68.89 874.79 874.79 20,881.46 4/10/2010 2 943.68 208.81 734.87 1,609.65 20,146.60 12/10/2010 3 943.68 402.93 540.75 2,150.40 19,605.85 4/10/2011 4 943.68 196.06 747.62 2,898.02 18,858.2.3 12/10/2011 5 943.68 377.16 566.52 3,464.54 18,291.71 4/10/2012 6 943.68 182.92 760.76 4,225.31 17,530.94 12/10/2012 7 943.68 350.62 593.06 4,818.37 16,937.88 4/10/2013 8 943.68 169.38 774.30 5,592.67 16,163.58 12/10/2013 9 943.68 323.27 620.41 6,213.08 15,543.17 4/10/2014 10 943.68 155.43 788.25 7,001.33 14,754.92 12/10/2014 11 943.68 295.10 648.58 7,649.91 14,106.34 4/10/2015 12 943.68 141.06 802.62 8,452.53 13,303.72 12/10/2015 13 943.68 266.07 677.61 9,130.14 12,626.11 4/10/2016 14 943.68 126.26 817.42 9,947.56 11,808.69 12/10/2016 15 943.68 236.17 707.51 10,655.06 11,101.19 4/10/2017 16 943.68 111.01 832.67 11,487.73 10,268.52 12/10/2017 17 943.68 205.37 738.31 12,226.04 9,530.21 4/10/2018 18 943.68 95.30 848.38 13,074.42 8,681.83 12/10/2018 19 943.68 173.64 770.04 13,844.47 7,911.78 4/10/2019 20 943.68 79.12 864.56 14,709.03 7,047.22 12/10/2019 21 943.68 140.94 802.74 15,511.77 6,244.48 4/10/2020 22 943.68 62.44 881.24 16,393.00 5,363.25 12/10/2020 23 943.68 107.26 836.42 17,229.42 4,526.83 4/10/2021 24 943.68 45.27 898.41 18,127.83 3,628.42 12/10/2021 25 943.68 72.57 871.11 18,998.95 2,757.30 4/10/2022 26 943.68 27.57 916.11 19,915.05 1,841.20 12/10/2022 27 943.68 36.82 906.86 20,821.91 934.34 4/10/2023 28 943.68 9.34 934.34 21,756.25 0.00 LOAN AGREEMENT FOR PARCEL 6 (ij if-Jy LOAN AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND MIAO YEH, AS TRUSTEE OF THE tY u 1 D YGII 4 - }/d/ TRUST , rb✓ettl gaS , Mr zjuLE/2yc f//J This Loan Agreement (the "Agreement") is made and entered into this 3O day of November, 2009, by and between the TOWN OF LOS ALTOS HILLS, a public body corporate and politic (hereinafter, the "Town"), and Miao Yeh, as trustee of the Moto`(eiTh K- '*f Trust, (hereinafter, the "Borrower"). g€Vouitei,E 7atsrf :ulY 2q r (f RECITALS A. Borrower is the owner of property located in the Town's Eastbrook Subdivision Tract 5801 (the "Subdivision"), which said Property is located at 23195 Eastbrook Avenue, County of Santa Clara Parcel Number 331-24-014,which is legally described in Exhibit A attached hereto (the "Property"). B. Pursuant to "Agreement by Owner and or his Successors in Interest to Construct Future Sanitary Sewer Improvements", dated November 10, 1976 (the "1976 Agreement") between Borrower's predecessor-in-interest and the Town. Town contends that Borrower, along with the other owners of property within the Subdivision, is obligated to construct a new sanitary sewer disposal system providing an alternate sewer main for the disposal of sewage from the Subdivision and closing any manholes that are no longer necessary("Improvements") upon notification from the Town. C. Borrower acknowledges that [s/he] had notice that the Property was subject to the obligations imposed by the 1976 Agreement, a copy of which was properly recorded with the County of Santa Clara Recorder's office. However, Borrower disputes the extent of the obligations as described in B, above. D By a letter dated September 29, 2008, Town determined that the Improvements were necessary and provided notice to Borrower of such decision in accordance with the 1976 Agreement. E. The parties agree that, for consideration described below, Borrower will acknowledge its obligation to construct the Improvements and has requested a loan from Town in order to pay a portion of the costs of the Improvements. F. Town and Borrower desire to enter into this Agreement to set forth the terms and conditions pursuant to which Town will make a loan to Borrower to fund a portion of the costs of the Improvements. ARTICLE 1 LOAN TO BORROWER/ASSESSMENT Section 1.01 Loan Amount, Use of Proceeds. Town agrees to make and Borrower agrees to accept a loan of twenty one thousand seven hundred fifty six dollars and twenty five cents ($21,756.25) ("Loan") to pay for a portion of the costs associated with construction of a new sewer line replacing the existing sewer line and siphon crossing Permanente Creek, which will divert existing sewage flow on Eastbrook Avenue east of Mora Glen Drive towards West Loyola 1308801 (north-west direction) away from the creek crossing ("Eligible Improvements"), subject to the terms and conditions of this Agreement and either, at the Town's option: (1) a promissory note (the "Note"), and a deed of trust agreement (the "Deed of Trust") or (2) a lien pursuant to Civil Code Section 2881 on the,- Property he-Property and a consensual assessment pursuant to which the loan amount and interest shall be repaid in full in a maximum of 14 years to the Town via annual payments as part of the property tax and assessment invoices issued by the County of Santa Clara. This Agreement, and either (1) the Note and Deed of Trust or (2) the Lien pursuant to Civil Code Section 2881, as determined by the Town, shall collectively be referred to as the"Loan Documents". The cost for construction of the Eligible Improvements is $174,050. Borrower and the other property owners within the Subdivision have determined to share the cost construction on a pro rata basis. Borrower's share of such cost is $21,756.25 plus an additional $1,087.81 for construction contingency costs. Borrower shall pay the construction contingency amount upon execution of this Agreement. Borrower agrees that Borrower shall repay the loan amount together with interest accruing at the rate of three percent (3%) per annum within fourteen (14) years of execution of this Agreement. In consideration of Borrower's payment herein, Town shall pay the cost of construction of the Eligible Improvements. Borrower agrees that Town shall hold all Loan funds. Town shall in its sole discretion disburse and expend Loan funds to pay for the costs of construction of the Eligible Improvements. Town agrees to construct Eligible Improvements within 180 working days, unless such delays result where Town is prevented from doing so by acts or events beyond its reasonable control, including acts of God, governmental changes or unforeseen events. A working day is hereby defined as any day except Saturdays, Sundays, and on which the consultants and contractors hired by the Town are not prevented by inclement weather or conditions resulting immediately there from adverse to the current controlling operation or operations as determined by the Town Engineer. Section 1.02 Reserved. Section 1.03 Deed of Trust. As determined applicable by the Town, any Note shall be secured by a Deed of Trust on the Property, including any permanent improvements or fixtures (the"Deed of Trust"). Section 1.04 Acceleration. The Loan Documents shall provide for the acceleration of the Loan's unpaid principal balance upon Borrower's default at the Town's sole discretion, making all sums due advanced at the time of default immediately due and payable. The following shall also constitute events of default (each an "Event of Default") allowing for acceleration of the Loan: A. Liens; Attachment; Condemnation. (1) The recording of any claim of lien against the Property, except as provided in this Agreement; or (2) the condemnation, seizure or appropriation of, or occurrence of an uninsured casualty with respect to any material portion of the Property not cured within a reasonable time, as such cure, time, and materiality is determined by the Town in its sole and absolute discretion; or (3) the sequestration or attachment of, or any levy or execution upon the Property or any of the units thereon; or 1308801 B. Voluntary Bankruptcy; Insolvency: Dissolution. (1) Borrower files of a petition for relief under the Bankruptcy Reform Act of 1978 as amended and recodified ("Bankruptcy Act"), or under any other present or future state or federal law regarding bankruptcy, reorganization or other relief to debtors (collectively, "Debtor Relief Law"); or(2) Borrower's filing any pleading in any involuntary proceeding under the Bankruptcy Act or other Debtor Relief Law, which admits the jurisdiction or the court or the petition's material allegations regarding Borrower insolvency; or (3) Borrower's making a general assignment for the benefit of creditors; or (4) Borrower's applies for, or becomes subject to the appointment of, a receiver, trustee, custodian or liquidator of Borrower or any of its property; or (5) filing by Borrower of a petition seeking the liquidation or dissolution of Borrower or the commencement of any other procedure to liquidate, dissolve or terminate Borrower; or C. Involuntary Bankruptcy. Borrower fails to effect a full dismissal of any Involuntary petition under the Bankruptcy Act or any other Debtor Relief Law, that is filed against Borrower or in any way restrains or limits Borrower or the Town regarding the Loan Documents or the Property prior to the earlier of the entry of any order granting relief sought in the involuntary petition, or thirty (30) days after such petition is filed; or D. Sale/Assignment/Assumption. Borrower sells, transfers, or assigns the Property ownership to any other person or entity without the prior written approval of the Town. Section 1.05 Remedies. The Town may exercise from time to time any rights and remedies available to it at law or in equity or by statute in addition to, and not in lieu of, any rights and remedies expressly granted in the Loan Documents, in any other instrument between these parties, or in any agreement guaranteeing the Loan or the completion of construction of the Eligible Improvements. Section 1.06 Assessment as Alternative to Loan. As an alternative to the use of a deed of trust and promissory note, at the sole discretion of the Town, the Borrower agrees that the Town may impose a lien pursuant to Civil Code Section 2881 or Streets and Highways Code Section 5898.10, et seq., on the Property and Borrower will agree to and vote in favor of a consensual assessment on the property for the amount of the loan and any interest due thereon. The lien and consensual assessment will provide for repayment to the town on an annual basis as part of the annual property tax and assessment invoices issued by Santa Clara County. If the Town elects to impose a lien in accordance with this Agreement, Borrower shall pay the first annual payment in two installments, due upon invoice from the Town. The first installment, in an amount of $943.68, shall be invoiced on or about December 10, 2009. The second installment, in an amount of $943.68 shall be invoiced on or about April 10, 2010. Thereafter, the balance of the loan and any interest due, shall be paid as part of the annual property tax and assessment invoices issued by Santa Clara County, in amounts and on the dates shown in Exhibit B, attached hereto and incorporated by reference. If after completion of the project there are any remaining funds from the $1,087.81 payment for construction contingency costs, the parties may agree to apply the unused portion of such funds, as a credit towards the second installment for first annual payment. 1308801 ARTICLE 2 DISBURSEMENT OF LOAN Section 2.01 Initial Disbursement Conditions. The Town will commence the construction of the Eligible Improvements after Borrower has fulfilled to the Town's satisfaction, or obtained the Town's written waiver of, all of the following conditions: A. Executed Loan Documents. The Town has received all Loan Documents, duly executed in recordable form as appropriate by Borrower, and, as applicable, the Deed of Trust or Lien has been duly recorded against the Property. B. Representations. Borrower is not then in default in performance of any of the warranties, representations, covenants, or agreements contained herein and the representations set forth in Article 3 shall be true and correct. C. Consultants and Contractors. Borrower agrees and expressly acknowledges that Borrower grants Town full discretion to use loan funds to enter into any contract with the consultants, contractor or contractors (collectively, the "Contractors") for the Eligible Improvements. ARTICLE 3 REPRESENTATIONS AND WARRANTIES Borrower makes all of the representations and warranties set forth in this Article 3. Section 3.01 Validity. This Agreement and all other Loan Documents, when executed and delivered, shall be valid and binding upon Borrower and are enforceable in accordance with their respective terms. Section 3.02 No Litigation. There is no litigation, claims, actions, investigations proceedings or disputes pending or, to Borrower's knowledge, threatened against Borrower or the Property. Section 3.03 No Liens. Except as provided herein, no work of construction has commenced or shall commence on the Property and no materials have been or will be delivered to the Property prior to the recording of the Deed of Trust. No preliminary or stop notice has been received or filed; no claim of lien has been recorded against the Property and all persons performing work and providing materials with respect to the Property have been paid in full. 1308801 Section 3.04 Insurance. If applicable as determined by the Town, Borrower has satisfied the Insurance Requirements set forth in the Deed of Trust ("Insurance Requirements") and the policies are in full force and effect. Section 3.05 Taxes. Borrower has paid all taxes and all assessments due on the Property. ARTICLE 4 AFFIRMATIVE COVENANTS OF BORROWER Borrower makes all of the following covenants set forth in this Article 4 for the time stated. Section 4.01 Maintenance. Until the latter of the (i) date the Loan is repaid in full, or(ii) the date fourteen (14) years after completion of construction of the Eligible Improvements, Borrower shall maintain the Property in first-class condition and repair, at Borrower's own cost and expense. Borrower's obligation to maintain the Property as described herein shall also be secured by the Deed of Trust, if applicable. Section 4.02 Further Documents. Until repayment and performance in full of the Loan, Borrower shall furnish to the Town upon request all other instruments and documents in addition to those specifically referred to herein as may reasonably be required from time to time by the Town. Section 4.03 Payment of Taxes. Until repayment and performance in full of the Loan, Borrower shall: A. Duly and punctually pay and discharge all taxes, assessments and other charges against the Property prior to the date when they shall become delinquent, and all charges for labor, materials and supplies that if unpaid might become a lien encumbering any part of the property of Borrower. B. Duly and punctually pay principal and interest on all debt obligations of Borrower related to the Property. Section 4.04 Prevailing Wages. Borrower acknowledges the Town shall be responsible for payment of prevailing wages for all construction work required under this Agreement. For the purposes of this Agreement, "prevailing wages" means not less than the general prevailing rate of per diem wages, as defined in Section 1773 of the California Labor Code and Subchapter 3 of Chapter 8, Division 1, Title 8 of the California Code of Regulations (Section 16000 et seq.), and as established by the Director of the California Department of Industrial Relations ("DIR") for the respective craft classification. 1308801 Section 4.05 Prohibition on Sale, Transfers or Assignments of Property Secured by Deed of Trust. If all or any part of (i) the Borrower's interest in the Property, or (ii) the property secured by the Deed of Trust, if applicable, is sold, transferred or assigned by Borrower without Town's prior written consent, Town may, at Town's option, declare the outstanding balance of the Loan to be immediately due and payable. If Town exercises such option to accelerate, Town shall mail Borrower notice of acceleration in accordance with Section 5.04 hereof. Such notices shall provide a period of not less than 30 calendar days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Town may, without further notice or demand on Borrower, invoke any remedies permitted by law or in equity. This Section 4.05 does not apply to any interest conveyed in exchange for refinancing the Property as long as Borrower retains ownership and the Borrower or a family member continues to occupy the Property. ARTICLE 5 GENERAL PROVISIONS Section 5.01 Assistance. Nothing in this Agreement shall be construed to obligate the Town to provide additional funds to Borrower through any other Town assistance program. Section 5.02 Reserved. Section 5.03 Waiver. Any waiver by the Town of any term, condition or requirement of any of the Loan Documents shall not constitute a waiver of any other term, condition or requirement hereof or constitute a waiver of the same term, condition or requirement in any other instance. Section 5.04 Notices. All notices and other communications required or permitted under this Agreement shall be in writing, and may be delivered by hand, by facsimile transmission with verification of receipt, or by United States mail, postage prepaid and return receipt requested, addressed to the respective parties as follows: 1308801 To Town: Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 Attention: City Manager To Borrower: Miao Yeh, as trustee of the rf EA YL '( , '(et-f- Trust 23195 Eastbrook Avenue RevOE. -I3L Z ty/JT ,Dna) St Los Altos Hills, CA 94024 or to such other address as any party may designate by notice in accordance with this Section. Notice shall be deemed given on the date of personal delivery by hand, or the date of receipt of facsimile transmission (with verification receipt), or on the date delivery is refused, if applicable. Section 5.06 Time. Time is of the essence in this Agreement. Section 5.07 Exhibits. Exhibit A and Exhibit B, attached hereto, are incorporated by this reference. Section 5.08 Amendments. Amendments to this Agreement shall be effective only upon the mutual agreement in writing of the parties hereto. No amendment shall be binding upon the Town unless duly executed by an appropriate officer of the Town. Section 5.09 Hold Harmless. Borrower agrees to indemnify, defend and hold the Town, its officers and employees, harmless from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of (i) Borrower's performance or non-performance under any of the Loan Documents, or any other agreement executed pursuant thereto. Borrower shall promptly notify the Town of any claims of which Borrower has notice or knowledge. This indemnification shall not apply to any suits, actions, claims, causes of action, costs, demands,judgments and liens arising from the Town's gross negligence or willful misconduct. Section 5.10 Successors and Assigns. Borrower binds itself, its partners, successors, assigns, and legal representatives to the Town with respect to all covenants, agreements, and obligations contained in the Loan Documents. Borrower shall not assign this Agreement in whole or in part without the written consent of the Town. Section 5.11 Relationship. It is understood and agreed by and between the parties hereto that Borrower, in the performance of its obligations under the Loan Documents or any other agreement executed pursuant to this Agreement, shall 1308801 not act, nor is it at any time authorized to act, as the agent or representative of the Town in any matter. Borrower agrees that it will not, in any matter, hold itself out as the agent or representative of the Town in any manner, or act in such a fashion as would give the impression to a reasonable person, that Borrower is acting in such a capacity. The relationship between Borrower and the Town is, and shall remain, solely that of borrower and Town. At all times Borrower shall act as Town and shall be an independent entity and not an agent or employee of the Town. Section 5.12 Document. This Agreement, including all Exhibits, the Note and the Deed of Trust or Lien, as applicable, together embody the agreement between the Town and Borrower for the Loan and its terms and verbal conditions. No agreements or conversations with any officer, agent or employee prior to the execution of this Agreement, shall affect or modify any of the terms or obligations contained in the Loan Documents. Any such verbal agreement considered unofficial information and in no way binding upon the Town. Section 5.13 Severability of Provisions. If any provisions of this Agreement are held invalid, the remainder of this Agreement shall not be affected hereby, if such remainder would then continue to conform to the terms and requirements of applicable law. Section 5.14 Conflict. If any term or provision in this Agreement conflicts with any term or provision of the Note, the term or provision in the Note shall control. Except for any subordination of the Deed of Trust, if any term or provision of any other Loan Document conflicts with any term or provision of this Agreement, the term or provision in this Agreement shall control. TOWN OF LOS ALTOS HILLS By: C.^r-La- _��-� i.0P,C.Y By: Carl Cahill City Manager APPROVED AS TO FORM 1411 ,,,; By: ti, s 4 it' rv'F Steven T. Mattas, City Attorney BORROWER avt4.0 tea' By: Miao Yeh As trustee of the Mk)l tNL7 /-/- Trust 1308801.1 PATr9 1-4 24 (fir 1308801 EXHIBIT A Description of Property Address: 23195 Eastbrook Avenue, Los Altos Hills, CA 94024 APN: 331-24-014 Lot Number in Tract 5901: Lot#6 (See next page for Map of Tract 5801) 1308801 -/�.'J,� 20 Mir JUNIPERO SERRA FREEWAY (HIGHWAY 0) I 1 0. .1 I11799b• "•L t n ts.tP 5,illn.,[t+rnylnd rcr./,'.,i > h "D r,,,,,,,,, ,,T„ .L,N . J t/lI R dtfbi•n. I n a1.•77,)41y9b['M /r/ 'hdl ,(8..*'S '144 -,,,Y' nentu V.co` e C. " kr.tq. q iLiTAS'a' n9:11 +.��t S'��tl 1�� ,r /`�•1'„p r6taclAfenru/f 1,l r[mr•J G;�be �, J1„tib k d, �i^ 17 ..,,IC 'f R 1 1421Aa T .'^, 4. T 14921.1 it. +' f� Ua� � *,....','•� • e'er G • x A,lI , I.7n10r �,�. Ejh?t J• �e? n Z I At. 1, 1411fN2rw._ 0r/. �'' . 4,: `2- `'At s at=e 15”?.. ' a / 'd 'D7 . \p1.• p r4 t'•1 �� / r , 5-'4: '4:/. n ll{CIO}1.Qp. rz�, 4711114,. 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DEWS A fORITON Of Lola el AIIO D4 of vs•Lop Cr me a Mellott Aaril'.hgqrril,mlat reltlmrn m/d, SU9DIVIGIDN oF7H91HALE RAl10N'FILED IN DDOY.TorIAAF9 AT rr u .•••all,NC 4 uiq-r3ehfreJ.lnrU FACED dB AHD AD,BAFITA CLARA CUUlt1`f RECORDS. \ 1II7TE IAL .Jloul rJrAvur 1019ce wr SANTA CLARA CCUNTYDCALIFORNIA 7•••••e/r tAr nowrr.11,r,yrmrtb,•Noire r•rJ.lj I,.,A- f,.L E r:ANITA-tr JrIra'AW!rN7 Ater/Ilia MTibRltJr.lorefrdhOdle irmF,frmlftf/frnYvrr.• 17J.e.r/vow Jutrq lifter i c ' PAUL.E.NOWACIC AIID ASSOCIATES,111C. rrnix••,JyVnntf,mrhnrr•rtH/.1 Corry fnro//ryr/.dmr lAr•r![t.r/ CIVIL ENGI116HRS-SURVGYDR5 Ntr rrl�lnlhrd»ir,,o..flr/Ac. ♦I. 220 STATE STREET SUITE•E' •:Its; LOS ALTOS,rCALIF'DRIIIA,94022 Slrr. / 7l TZ;N 8 ax 7/.a.,,,, _ .//-1 ,Feer A" 1rr76 9HGGT 2 or 2 O} OTC T._...-..._. ._.._-._....-_. S147 d 4' EXHIBIT B Payment Schedule 1308801 7 p qv--okP . ,ar "v ePb i , rso l ` :.&-q.!--;47-05; i - __ kgiro .: #" - P: om . ' ,- , tk.-4,6400141.5. -r: u�st r K-1-4.--Z7 � aa -�� xr Loan Amount $21,756.25 Annual Interest Rate 3.00% Total#of Years 14 Closing Date 11/2/2009 Payment Payment Principal Due to City Payment# Amount Interest Principal Paid Balance 21,756.25 12/10/2009 1 943.68 68.89 874.79 874.79 20,881.46 4/10/2010 2 943.68 208.81 734.87 1,609.65 20,146.60 12/10/2010 3 943.68 402.93 540.75 2,150.40 19,605.85 4/10/2011 4 943.68 196.06 747.62 2,898.02 18,858.23 12/10/2011 5 943.68 377.16 566.52 3,464.54 18,291.71 4/10/2012 6 943.68 182.92 760.76 4,225.31 17,530.94 12/10/2012 7 943.68 350.62 593.06 4,818.37 16,937.88 4/10/2013 8 943.68 169.38 774.30 5,592.67 16,163.58 12/10/2013 9 943.68 323.27 620.41 6,213.08 15,543.17 4/10/2014 10 943.68 155.43 788.25 7,001.33 14,754.92 12/10/2014 11 943.68 295.10 648.58 7,649.91 14,106.34 4/10/2015 12 943.68 141.06 802.62 8,452.53 13,303.72 12/10/2015 13 943.68 266.07 677.61 9,130.14 12,626.11 4/10/2016 14 943.68 126.26 817.42 9,947.56 11,808.69 12/10/2016 15 943.68 236.17 707.51 10,655.06 11,101.19 4/10/2017 16 943.68 111.01 832.67 11,487.73 10,268.52 12/10/2017 17 943.68 205.37 738.31 12,226.04 9,530.21 4/10/2018 18 943.68 95.30 848.38 13,074.42 8,681.83 12/10/2018 19 943.68 173.64 770.04 13,844.47 7,911.78 4/10/2019 20 943.68 79.12 864.56 14,709.03 7,047.22 12/10/2019 21 943.68 140.94 802.74 15,511.77 6,244.48 4/10/2020 22 943.68 62.44 881.24 16,393.00 5,363.25 12/10/2020 23 943.68 107.26 836.42 17,229.42 4,526.83 4/10/2021 24 943.68 45.27 898.41 18,127.83 3,628.42 12/10/2021 25 943.68 72.57 871.11 18,998.95 2,757.30 4/10/2022 26 943.68 27.57 916.11 19,915.05 1,841.20 12/10/2022 27 943.68 36.82 906.86 20,821.91 934.34 4/10/2023 28 943.68 9.34 934.34 21,756.25 0.00 LOAN AGREEMENT FOR PARCEL 7 „, 0 LOAN AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND RAO & KARUNASREE CHERUKURI This Loan Agreement (the "Agreement") is made and entered into this - day of November, 2009, by and between the TOWN OF LOS ALTOS HILLS, a public body corporate and politic (hereinafter, the "Town"), and.:Rao &,KaNRaSree Cherukti a married couple, (hereinafter, the"Borrower"). RECITALS A. Borrower is the owner of property located in the Town's Eastbrook Subdivision Tract 5801 (the "Subdivision"), which said Property is located at 23175 Eastbrook Avenue, County of Santa Clara Parcel Number 331-24-015, which is legally described in Exhibit A attached hereto (the "Property"). B. Pursuant to "Agreement by Owner and or his Successors in Interest to Construct Future Sanitary Sewer Improvements", dated November 10, 1976 (the "1976 Agreement") between Borrower's • predecessor-in-interest and the Town. Town contends that Borrower, along with the other owners of property within the Subdivision, is obligated to construct a new sanitary sewer disposal system providing an alternate sewer main for the disposal of sewage from the Subdivision and closing any manholes that are no longer necessary ("Improvements") upon notification from the Town. C. Borrower acknowledges that [s/he] had notice that the Property was subject to the obligations imposed by the 1976 Agreement, a copy of which was properly recorded with the County of Santa Clara Recorder's office. However, Borrower disputes the extent of the obligations as described in B, above. D By a letter dated September 29, 2008, Town determined that the Improvements were necessary and provided notice to Borrower of such decision in accordance with the 1976 Agreement. E. The parties agree that, for consideration described below, Borrower will acknowledge its obligation to construct the Improvements and has requested a loan from Town in order to pay a portion of the costs of the Improvements. F. Town and Borrower desire to enter into this Agreement to set forth the terms and conditions pursuant to which Town will make a loan to Borrower to fund a portion of the costs of the Improvements. ARTICLE 1 • LOAN TO BORROWER/ASSESSMENT Section 1.01 Loan Amount, Use of Proceeds. Town agrees to make and Borrower agrees to accept a loan of twenty one thousand seven hundred fifty six dollars and twenty five cents ($21,756.25) ("Loan") to pay for a portion of the costs associated with construction of a new sewer line replacing the existing sewer line and siphon crossing Permanente Creek, which will divert existing sewage flow on Eastbrook Avenue east of Mora Glen Drive towards West Loyola (north-west direction) away from the creek crossing ("Eligible Improvements"), subject to the terms and 1308804 conditions of this Agreement and either, at the Town's option: (1) a promissory note (the "Note"), and a deed of trust agreement (the "Deed of Trust") or (2) a lien pursuant to Civil Code Section 2881 on the Property and a consensual assessment pursuant to which the loan amount and interest shall be repaid in full in a maximum of 14 years to the Town via annual payments as part of the property tax and assessment invoices issued by the County of Santa Clara. This Agreement, and either (1) the Note and Deed of Trust or (2) the Lien pursuant to Civil Code Section 2881, as determined by the Town, shall collectively be referred to as the"Loan Documents". The cost for construction of the Eligible Improvements is $174,050. Borrower and the other property owners within the Subdivision have determined to share the cost construction on a pro rata basis. Borrower's share of such cost is $21,756.25 plus an additional $1,087.81 for construction contingency costs. Borrower shall pay the construction contingency amount upon execution of this Agreement. Borrower agrees that Borrower shall repay the loan amount together with interest accruing at the rate of three percent (3%) per annum within fourteen (14) years of execution of this Agreement. In consideration of Borrower's payment herein, Town shall pay the cost of construction of the Eligible Improvements. Borrower agrees that Town shall hold all Loan funds. Town shall in its sole discretion disburse and expend Loan funds to pay for the costs of construction of the Eligible Improvements. Town agrees to construct Eligible Improvements within 180 working days, unless such delays result where Town is prevented from doing so by acts or events beyond its reasonable control, including acts of God, governmental changes or unforeseen events. A working day is hereby defined as any day except Saturdays, Sundays, and on which the consultants and contractors hired by the Town are not prevented by inclement weather or conditions resulting immediately there from adverse to the current controlling operation or operations as determined by the Town Engineer. Section 1.02 Reserved. Section 1.03 Deed of Trust. As determined applicable by the Town, any Note shall be secured by a Deed of Trust on the Property, including any permanent improvements or fixtures (the"Deed of Trust"). Section 1.04 Acceleration. The Loan Documents shall provide for the acceleration of the Loan's unpaid principal balance upon Borrower's default at the Town's sole discretion, making all sums due advanced at the time of default immediately due and payable. The following shall also constitute events of default (each an "Event of Default") allowing for acceleration of the Loan: A. Liens; Attachment; Condemnation. (1) The recording of any claim of lien against the Property, except as provided in this Agreement; or (2) the condemnation, seizure or appropriation of, or occurrence of an uninsured casualty with respect to any material portion of the Property not cured within a reasonable time, as such cure, time, and materiality is determined by the Town in its sole and absolute discretion; or (3) the sequestration or attachment of, or any levy or execution upon the Property or any of the units thereon;or 1308804 B. Voluntary Bankruptcy; Insolvency: Dissolution. (1) Borrower files of a petition for relief under the Bankruptcy Reform Act of 1978 as amended and recodified ("Bankruptcy Act"), or under any other present or future state or federal law regarding bankruptcy, reorganization or other relief to debtors (collectively, "Debtor Relief Law"); or(2) Borrower's filing any pleading in any involuntary proceeding under the Bankruptcy Act or other Debtor Relief Law, which admits the jurisdiction or the court or the petition's material allegations regarding Borrower insolvency; or (3) Borrower's making a general assignment for the benefit of creditors; or (4) Borrower's applies for, or becomes subject to the appointment of, a receiver, trustee, custodian or liquidator of Borrower or any of its property; or (5) filing by Borrower of a petition seeking the liquidation or dissolution of Borrower or the commencement of any other procedure to liquidate, dissolve or terminate Borrower; or C. Involuntary Bankruptcy. Borrower fails to effect a full dismissal of any Involuntary petition under the Bankruptcy Act or any other Debtor Relief Law, that is filed against Borrower or in any way restrains or limits Borrower or the Town regarding the Loan Documents or the Property prior to the earlier of the entry of any order granting relief sought in the involuntary petition, or thirty (30) days after such petition is filed; or D. Sale/Assignment/Assumption. Borrower sells, transfers, or assigns the Property ownership to any other person or entity without the prior written approval of the Town. Section 1.05 Remedies. The Town may exercise from time to time any rights and remedies available to it at law or in equity or by statute in addition to, and not in lieu of, any rights and remedies expressly granted in the Loan Documents, in any other instrument between these parties, or in any agreement guaranteeing the Loan or the completion of construction of the Eligible Improvements. Section 1.06 Assessment as Alternative to Loan. As an alternative to the use of a deed of trust and promissory note, at the sole discretion of the Town, the Borrower agrees that the Town may impose a lien pursuant to Civil Code Section 2881 or Streets and Highways Code Section 5898.10, et seq., on the Property and Borrower will agree to and vote in favor of a consensual assessment on the property for the amount of the loan and any interest due thereon. The lien and consensual assessment will provide for repayment to the town on an annual basis as part of the annual property tax and assessment invoices issued by Santa Clara County. If the Town elects to impose a lien in accordance with this Agreement, Borrower shall pay the first annual payment in two installments, due upon invoice from the Town. The first installment, in an amount of $943.68, shall be invoiced on or about December 10, 2009. The second installment, in an amount of $943.68 shall be invoiced on or about April 10, 2010. Thereafter, the balance of the loan and any interest due, shall be paid as part of the annual property tax and assessment invoices issued by Santa Clara County, in amounts and on the dates shown in Exhibit B, attached hereto and incorporated by reference. If after completion of the project there are any remaining funds from the $1,087.81 payment for construction contingency costs, the parties may agree to apply the unused portion of such funds, as a credit towards the second installment for first annual payment. 1308804 ii ARTICLE 2 DISBURSEMENT OF LOAN Section 2.01 Initial Disbursement Conditions. The Town will commence the construction of the Eligible Improvements after Borrower has fulfilled to the Town's satisfaction, or obtained the Town's written waiver of, all of the following conditions: A. Executed Loan Documents. The Town has received all Loan Documents, duly executed in recordable form as appropriate by Borrower, and, as applicable, the Deed of Trust or Lien has been duly recorded against the Property. B. Representations. Borrower is not then in default in performance of any of the warranties, representations, covenants, or agreements contained herein and the representations set forth in Article 3 shall be true and correct. C. Consultants and Contractors. Borrower agrees and expressly acknowledges that Borrower grants Town full discretion to use loan funds to enter into any contract with the consultants, contractor or contractors (collectively, the"Contractors")for the Eligible Improvements. ARTICLE 3 REPRESENTATIONS AND WARRANTIES Borrower makes all of the representations and warranties set forth in this Article 3. Section 3.01 Validity. This Agreement and all other Loan Documents, when executed and delivered, shall be valid and binding upon Borrower and are enforceable in accordance with their respective terms. Section 3.02 No Litigation. There is no litigation, claims, actions, investigations proceedings or disputes pending or, to Borrower's knowledge, threatened against Borrower or the Property. Section 3.03 No Liens. Except as provided herein, no work of construction has commenced or shall commence on the Property and no materials have been or will be delivered to the Property prior to the recording of the Deed of Trust. No preliminary or stop notice has been received or filed; no claim of lien has been recorded against the Property and all persons performing work and providing materials with respect to the Property have been paid in full. 1308804 , Section 3.04 Insurance. If applicable as determined by the Town, Borrower has satisfied the Insurance Requirements set forth in the Deed of Trust ("Insurance Requirements") and the policies are in full force and effect. Section 3.05 Taxes. Borrower has paid all taxes and all assessments due on the Property. ARTICLE 4 AFFIRMATIVE COVENANTS OF BORROWER Borrower makes all of the following covenants set forth in this Article 4 for the time stated. Section 4.01 Maintenance. • Until the latter of the (i) date the Loan is repaid in full, or(ii) the date fourteen (14) years after completion of construction of the Eligible Improvements, Borrower shall maintain the Property in first-class condition and repair, at Borrower's own cost and expense. Borrower's obligation to maintain the Property as described herein shall also be secured by the Deed of Trust, if applicable. Section 4.02 Further Documents. Until repayment and performance in full of the Loan, Borrower shall furnish to the Town upon request all other instruments and documents in addition to those specifically referred to herein as may reasonably be required from time to time by the Town. Section 4.03 Payment of Taxes. Until repayment and performance in full of the Loan, Borrower shall: A. Duly and punctually pay and discharge all taxes, assessments and other charges against the Property prior to the date when they shall become delinquent, and all charges for labor, materials and supplies that if unpaid might become a lien encumbering any part of the property of Borrower. B. Duly and punctually pay principal and interest on all debt obligations of Borrower related to the Property. Section 4.04 Prevailing Wages. Borrower acknowledges the Town shall be responsible for payment of prevailing wages for all construction work required under this Agreement. For the purposes of this Agreement, "prevailing wages" means not less than the general prevailing rate of per diem wages, as defined in Section 1773 of the California Labor Code and Subchapter 3 of Chapter 8, Division 1, Title 8 of the California Code of Regulations (Section 16000 et seq.), and as established by the Director of the California Department of Industrial Relations ("DIR")for the respective craft classification. 1308804 Section 4.05 Prohibition on Sale, Transfers or Assignments of Property Secured by Deed of Trust. If all or any part of (i) the Borrower's interest in the Property, or (ii) the property secured by the Deed of Trust, if applicable, is sold, transferred or assigned by Borrower without Town's prior written consent, Town may, at Town's option, declare the outstanding balance of the Loan to be immediately due and payable. If Town exercises such option to accelerate, Town shall mail Borrower notice of acceleration in accordance with Section 5.04 hereof. Such notices shall provide a period of not less than 30 calendar days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Town may, without further notice or demand on Borrower, invoke any remedies permitted by law or in equity. This Section 4.05 does not apply to any interest conveyed in exchange for refinancing the Property as long as Borrower retains ownership and the Borrower or a family member continues to occupy the Property. ARTICLE 5 GENERAL PROVISIONS Section 5.01 Assistance. Nothing in this Agreement shall be construed to obligate the Town to provide additional funds to Borrower through any other Town assistance program. Section 5.02 Reserved. Section 5.03 Waiver. Any waiver by the Town of any term, condition or requirement of any of the Loan Documents shall not constitute a waiver of any other term, condition or requirement hereof or constitute a waiver of the same term, condition or requirement in any other instance. Section 5.04 Notices. All notices and other communications required or permitted under this Agreement shall be in writing, and may be delivered by hand, by facsimile transmission with verification of receipt, or by United States mail, postage prepaid and return receipt requested, addressed to the respective parties as follows: 1308804 To Town: Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 Attention: City Manager To Borrower: Rao &Karunasree Cherukuri 23175 Eastbrook Avenue Los Altos Hills, CA 94024 or to such other address as any party may designate by notice in accordance with this Section. Notice shall be deemed given on the date of personal delivery by hand, or the date of receipt of facsimile transmission (with verification receipt), or on the date delivery is refused, if applicable. Section 5.06 Time. Time is of the essence in this Agreement. Section 5.07 Exhibits. Exhibit A and Exhibit B, attached hereto, are incorporated by this reference. Section 5.08 Amendments. Amendments to this Agreement shall be effective only upon the mutual agreement in writing of the parties hereto. No amendment shall be binding upon the Town unless duly executed by an appropriate officer of the Town. Section 5.09 Hold Harmless. Borrower agrees to indemnify, defend and hold the Town, its officers and employees, harmless from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of (i) Borrower's performance or non-performance under any of the Loan Documents, or any other agreement executed pursuant thereto. Borrower shall promptly notify the Town of any claims of which Borrower has notice or knowledge. This indemnification shall not apply to any suits, actions, claims, causes of action, costs, demands,judgments and liens arising from the Town's gross negligence or willful misconduct. Section 5.10 Successors and Assigns. Borrower binds itself, its partners, successors, assigns, and legal representatives to the Town with respect to all covenants, agreements, and obligations contained in the Loan Documents. Borrower shall not assign this Agreement in whole or in part without the written consent of the Town. Section 5.11 Relationship. It is understood and agreed by and between the parties hereto that Borrower, in the performance of its obligations under the Loan Documents or any other agreement executed pursuant to this Agreement, shall 1308804 not act, nor is it at any time authorized to act, as the agent or representative of the Town in any matter. Borrower agrees that it will not, in any matter, hold itself out as the agent or representative of the Town in any manner, or act in such a fashion as would give the impression to a reasonable person, that Borrower is acting in such a capacity. Therelationship between Borrower and the Town is, and shall remain, solely that of borrower and Town. At all times Borrower shall act as Town and shall be an independent entity and not an agent or employee of the Town. Section 5.12 Document. This Agreement, including all Exhibits, the Note and the Deed of Trust or Lien, as applicable, together embody the agreement between the Town and Borrower for the Loan and its terms and verbal conditions. No agreements or conversations with any officer, agent or employee prior to the execution of this Agreement, shall affect or modify any of the terms or obligations contained in the Loan Documents. Any such verbal agreement considered unofficial information and in no way binding upon the Town. Section 5.13 Severability of Provisions. If any provisions of this Agreement are held invalid, the remainder of this Agreement shall not be affected hereby, if such remainder would then continue to conform to the terms and requirements of applicable law. Section 5.14 Conflict. If any term or provision in this Agreement conflicts with any term or provision of the Note, the term or provision in the Note shall control. Except for any subordination of the Deed of Trust, if any term or provision of any other Loan Document conflicts with any term or provision of this Agreement, the term or provision in this Agreement shall control. APPR•V `S TO FORM TOWN OF LOS ALTOS HILLS By: A a By: C Steven T. Mattas, City Attorney By: Carl Cahill City Manager BOR' By:Rao C. -rukuri L144,416- By: Karunasree Cherukuri 1308804.1 1308804 EXHIBIT A Description of Property Address: 23175 Eastbrook Avenue, Los Altos Hills, CA 94024 AP N: 331-24-015 Lot Number in Tract 5901: Lot#7 (See next page for Map of Tract 5801) 1308804 j .. f,r�.nnlrna • JUNIPER0 SERRA FREEWAY (HIGHWAY 290) I n d - ull'IsLI'n rLj''r' Ind hnrc ts.cr' it'nnA�rAt/ rcrdt'„ _ a to uA),,"/”{rlr.iiij-,/ t 11 a5dltbt' , lu .�rt,r,' +,n a 4r5'ra'n`nilYr1A 41i,1;;;,0, ,/,7.,,J, ewua I'.CV / u ,rm rytns7nl Alauflnl•4m)•J lba 1' •1 of a ; �l_\ r .1 I J' E• r „/ `• r+nlll6'AiU0'f 10.71' '� IV f R lalal lA. T°. h ti'lttin i•' rtlfr}flv`r�r I.} 4. Immix,. .,.1 F r`,'''. `JIIII_ 5S. I.tlrrlrt " J'ri r esj? }11 • ttloaJ IA, �y°I rua m AT / �'�• �'� o •r Itcifsbo'L • } t1.16' • ��� S tlnxr� Nr r✓j! ,�i1C r�," �- �� ojol' \ J !t5 q r'J.'' �tstbl + sro oot G ,lj' q Tr?) y 4 r r Qri•i r�� IIIS'CI 07`1, b. 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A(��WAA[p�p`��4tH IN�7o5 d'44J/rndllr(nit+vM111JaNtrek/,J A It ltael,he Ar/ava 11'm1Y �S G E3?•• .ruprl,rnulr:r,,,k0/roger, tceeftpAJr14 GSrr owl). 0 A:arllr afar nmhr�.Af.re,Jrrnrrmr/ dra,Ni nu rtdm r,Ilk but r//nmr e. Fm 0 Arde.det Al ro.A•.Jl}minlJfrmr,l,r/Ir ill SUB A POIt11011 OPLOTS DI NIP Dd of TI15'MAPOFTH6 / , Jr,1t1/rr/p,/1i'/•qmJllt,mini?Amu mem'. SUB DIVI51011 arm'HMI RAl10H'FILED IN BOOM'or MAP6 AT11 u .4.4,6/rrrffir t r hrnl//r pItleJO FAGAE9 dB AHo AD,B�AnpIRACLARA C11U1}TY FIUI ORDS. J 1107E SAF. •J/t1JA1 CJA1YArf fABEMr1rf ..SANTA CL 'RA coUNT "oCA ORNI! Inv/l•Jlr nrvr.rr.flnrn,Lrr..rh,AAA"fnii/ Ir.r1.• 41.( ,raurrurJrm(JAJrlrrNr ArOfidwl,rh!A(1n)r,r,InHrrdAO./11,rrrlandn//rfn'. / nJ,0.r/V/r10 0411r1 AIrrowmcgoi PAUL II.NOWACIC A}ID A55OCIATEB,INC. IN.....,Jyvnn/um hr m r d/1 4m}rndl Ag15 Simi CIVIL encIlIfeepS-5URNGYOR5 /h'1•rrll.f/ I t' 220 BTAT6 STRERT SUIT&'E' NrrrrlNallotdwtr,%.11rldr, •.Rs; LOS ALTOS,CALIIroRNIA,D4027. Sir. / ‘ rr.Ao 6 Ox•7/..iox lq'.rr '6- •r 6 DHDET 7. or 1 9HtETE jfr EXHIBIT B Payment Schedule 1308804 r0F so r es. r: ti d s, ;, y"h f"-, x e...�r:. ..«,--,;o-`�W,m`y r�-...,.. ....gym....-,,,,. Via,.,a, M*iy;#A,.r':rv. : n mow..:,, .:�. ..Y.. e v ,- F`it*,4,-A Loan Amount $21,756.25 Annual Interest Rate 3.00% Total#of Years 14 Closing Date 11/2/2009 Payment Payment Principal Due to City Payment# Amount Interest Principal Paid Balance 21,756.25 12/10/2009 1 943.68 68.89 874.79 874.79 20,881.46 4/10/2010 2 943.68 208.81 734.87 1,609.65 20,146.60 12/10/2010 3 943.68 402.93 540.75 2,150.40 19,605.85 4/10/2011 4 943.68 196.06 747.62 2,898.02 18,858.23 12/10/2011 5 943.68 377.16 566.52 3,464.54 18,291.71 4/10/2012 6 943.68 182.92 760.76 4,225.31 17,530.94 12/10/2012 7 943.68 350.62 593.06 4,818.37 16,937.88 4/10/2013 8 943.68 . 169.38 774.30 5,592.67 16,163.58 12/10/2013 9 943.68 323.27 620.41 6,213.08 15,543.17 4/10/2014 10 943.68 155.43 788.25 7,001.33 14,754.92 12/10/2014 11 943.68 295.10 648.58 7,649.91 14,106.34 4/10/2015 12 943.68 141.06 802.62 8,452.53 13,303.72 12/10/2015 13 943.68 266.07 677.61 9,130.14 12,626.11 4/10/2016 14 943.68 126.26 817.42 9,947.56 11,808.69 12/10/2016 15 943.68 236.17 707.51 10,655.06 11,101.19 4/10/2017 16 943.68 111.01 832.67 11,487.73 10,268.52 12/10/2017 17 943.68 205.37 738.31 12,226.04 9,530.21 4/10/2018 18 943.68 95.30 848.38 13,074.42 8,681.83 12/10/2018 19 943.68 173.64 770.04 13,844.47 7,911.78 4/10/2019 20 943.68 79.12 864.56 14,709.03 7,047.22 12/10/2019 21 943.68 140.94 802.74 15,511.77 6,244.48 4/10/2020 22 943.68 62.44 881.24 16,393.00 5,363.25 12/10/2020 23 943.68 107.26 836.42 17,229.42 4,526.83 4/10/2021 24 943.68 45.27 898.41 18,127.83 3,628.42 12/10/2021 25 943.68 72.57 871.11 18,998.95 2,757.30 4/10/2022 26 943.68 27.57 916.11 19,915.05 1,841.20 12/10/2022 27 943.68 36.82 906.86 20,821.91 934.34 4/10/2023 28 943.68 9.34 934.34 21,756.25 0.00 LOAN AGREEMENT FOR PARCEL 8 ED LOAN AGREEMENT BETWEEN THE TOWN OF LOS ALTOS HILLS AND BOON HOE &IRENE BENG HOE,AS TRUSTEES OF THE *0 GOA t'Jr-E TRUST This Loan Agreement (the "Agreement") is made and entered into this day of November, 2009, by and between the TOWN OF LOS ALTOS HILLS, a public body corporate and politic (hereinafter, the "Town"), andw-Boon oe rene B g Hoe, as trustees of the k-At-C. t°C1 LE\i v C.? Trust, (hereinafter, the"Borrower"). RECITALS A. Borrower is the owner of property located in the Town's Eastbrook Subdivision Tract 5801 (the "Subdivision"), which said Property is located at 23165 Eastbrook Avenue, County of Santa Clara Parcel Number 331-24-017, which is legally described in Exhibit A attached hereto (the "Property"). B. Pursuant to "Agreement by Owner and or his Successors in Interest to Construct Future Sanitary Sewer Improvements", dated November 10, 1976 (the "1976 Agreement") between Borrower's predecessor-in-interest and the Town. Town contends that Borrower, along with the other owners of property within the Subdivision, is obligated to construct a new sanitary sewer disposal system providing an alternate sewer main for the disposal of sewage from the Subdivision and closing any manholes that are no longer necessary ("Improvements") upon notification from the Town. C. Borrower acknowledges that [s/he] had notice that the Property was subject to the obligations imposed by the 1976 Agreement, a copy of which was properly recorded with the County of Santa Clara Recorder's office. However, Borrower disputes the extent of the obligations as described in B, above. D By a letter dated September 29, 2008, Town determined that the Improvements were necessary and provided notice to Borrower of such decision in accordance with the 1976 Agreement. E. The parties agree that, for consideration described below, Borrower will acknowledge its obligation to construct the Improvements and has requested a loan from Town in order to pay a portion of the costs of the Improvements. F. Town and Borrower desire to enter into this Agreement to set forth the terms and conditions pursuant to which Town will make a loan to Borrower to fund a portion of the costs of the Improvements. ARTICLE 1 ' LOAN TO BORROWER/ASSESSMENT Section 1.01 Loan Amount, Use of Proceeds. Town agrees to make and Borrower agrees to accept a loan of twenty one thousand seven hundred fifty six dollars and twenty five cents ($21,756.25) ("Loan") to pay for a portion of the costs associated with construction of a new sewer line replacing the existing sewer line and siphon crossing Permanente Creek, which will divert existing sewage flow on Eastbrook Avenue east of Mora Glen Drive towards West Loyola 1303105 (north-west direction) away from the creek crossing ("Eligible Improvements"), subject to the terms and conditions of this Agreement and either, at the Town's option: (1) a promissory note (the "Note"), and a deed of trust agreement (the "Deed of Trust") or (2) a lien pursuant to Civil Code Section 2881 on the Property and a consensual assessment pursuant to which the loan amount and interest shall be repaid in full in a maximum of 14 years to the Town via annual payments as part of the property tax and assessment invoices issued by the County of Santa Clara. This Agreement, and either (1) the Note and Deed of Trust or (2) the Lien pursuant to Civil Code Section 2881, as determined by the Town, shall collectively be referred to as the"Loan Documents". The cost for construction of the Eligible Improvements is $174,050. Borrower and the_ other property owners Within theSubdivision-have determined to share the •cost construction on a pro rata basis. Borrower's share of such cost is $21,756.25 plus an additional $1,087.81 for construction contingency costs. Borrower shall pay the construction contingency amount upon execution of this Agreement. Borrower agrees that Borrower shall repay the loan amount together with interest accruing at the rate of three percent (3%) per annum within fourteen (14) years of execution of this Agreement. In consideration of Borrower's payment herein, Town shall pay the cost of construction of the Eligible Improvements. Borrower agrees that Town shall hold all Loan funds. Town shall in its sole discretion disburse and expend Loan funds to pay for the costs of construction of the Eligible Improvements. Town agrees to construct Eligible Improvements within 180 working days, unless such delays result where Town is prevented from doing so by acts or events beyond its reasonable control, including acts of God, governmental changes or unforeseen events. A working day is hereby defined as any day except Saturdays, Sundays, and on which the consultants and contractors hired by the Town are not prevented by inclement weather or conditions resulting immediately there from adverse to the current controlling operation or operations as determined by the Town Engineer. Section 1.02 Reserved. Section 1.03 Deed of Trust. As determined applicable by the Town, any Note shall be secured by a Deed of Trust on the Property, including any permanent improvements or fixtures (the"Deed of Trust"). Section 1.04 Acceleration. The Loan Documents shall provide for the acceleration of the Loan's unpaid principal balance upon Borrower's default at the Town's sole discretion, making all sums due advanced at the time of default immediately due and payable. The following shall also constitute events of default (each an "Event of Default") allowing for acceleration of the Loan: A. Liens; Attachment; Condemnation, (1) The recording of any claim of lien against the Property, except as provided in this Agreement; or (2) the condemnation, seizure or appropriation of, or occurrence of an uninsured casualty with respect to any material portion of the Property not cured within a reasonable time, as such cure, time, and materiality is determined by the Town in its sole and absolute discretion; or (3) the sequestration or attachment of, or any levy or execution upon the Property or any of the units thereon; or 1303105 B. Voluntary Bankruptcy; Insolvency: Dissolution. (1) Borrower files of a petition for relief under the Bankruptcy Reform Act of 1978 as amended and recodified ("Bankruptcy Act"), or under any other present or future state or federal law regarding bankruptcy, reorganization or other relief to debtors (collectively, "Debtor Relief Law"); or(2) Borrower's filing any pleading in any involuntary proceeding under the Bankruptcy Act or other Debtor Relief Law, which admits the jurisdiction or the court or the petition's material allegations regarding Borrower insolvency; or (3) Borrower's making a general assignment for the benefit of creditors; or (4) Borrower's applies for, or becomes subject to the appointment of, a receiver, trustee, custodian or liquidator of Borrower or any of its property; or (5) filing by Borrower of a petition seeking the liquidation or dissolution of Borrower or the commencement of any other procedure to liquidate, dissolve or terminate Borrower; or C. Involuntary Bankruptcy. Borrower fails to effect a full dismissal of any Involuntary petition under the Bankruptcy Act or any other Debtor Relief Law, that is filed against Borrower or in any way restrains or limits Borrower or the Town regarding the Loan Documents or the Property prior to the earlier of the entry of any order granting relief sought in the involuntary petition, or thirty (30) days after such petition is filed; or D. Sale/Assignment/Assumption. Borrower sells, transfers, or assigns the Property ownership to any other person or entity without the prior written approval of the Town. Section 1.05 Remedies. The Town may exercise from time to time any rights and remedies available to it at law or in equity or by statute in addition to, and not in lieu of, any rights and remedies expressly granted in the Loan Documents, in any other instrument between these parties, or in any agreement guaranteeing the Loan or the completion of construction of the Eligible Improvements. Section 1.06 Assessment as Alternative to Loan. As an alternative to the use of a deed of trust and promissory note, at the sole discretion of the Town, the Borrower agrees that the Town may impose a lien pursuant to Civil Code Section 2881 or Streets and Highways Code Section 5898.10, et seq., on the Property and Borrower will agree to and vote in favor of a consensual assessment on the property for the amount of the loan and any interest due thereon. The lien and consensual assessment will provide for repayment to the town on an annual basis as part of the annual property tax and assessment invoices issued by Santa Clara County. If the Town elects to impose a lien in accordance with this Agreement, Borrower shall pay the first annual payment in two installments, due upon invoice from the Town. The first installment, in an amount of $943.68, shall be invoiced on or about December 10, 2009. The second installment, in an amount of $943.68 shall be invoiced on or about April 10, 2010. Thereafter, the balance of the loan and any interest due, shall be paid as part of the annual property tax and assessment invoices issued by Santa Clara County, in amounts and on the dates shown in Exhibit B, attached hereto and incorporated by reference. If after completion of the project there are any remaining funds from the $1,087.81 payment for construction contingency costs, the parties may agree to apply the unused portion of such funds, as a credit towards the second installment for first annual payment. 1303105 ARTICLE 2 DISBURSEMENT OF LOAN Section 2.01 Initial Disbursement Conditions. The Town will commence the construction of the Eligible Improvements after Borrower has fulfilled to the Town's satisfaction, or obtained the Town's written waiver of, all of the following conditions: A. Executed Loan Documents. The Town has received all Loan Documents, duly executed in -- — recordable—form as appropriate b Borrower, and, as applicable,the Deed olTrust or Lien has been duly recorded against the Property. B. Representations. Borrower is not then in default in performance of any of the warranties, representations, covenants, or agreements contained herein and the representations set forth in Article 3 shall be true and correct. C. Consultants and Contractors. Borrower agrees and expressly acknowledges that Borrower grants Town full discretion to use loan funds to enter into any contract with the consultants, contractor or contractors (collectively, the "Contractors") for the Eligible,Improvements. ARTICLE 3 REPRESENTATIONS AND WARRANTIES Borrower makes all of the representations and warranties set forth in this Article 3. Section 3.01 Validity. This Agreement and all other Loan Documents, when executed and delivered, shall be valid and binding upon Borrower and are enforceable in accordance with their respective terms. Section 3.02 No Litigation. There is no litigation, claims, actions, investigations proceedings or disputes pending or, to Borrower's knowledge, threatened against Borrower or the Property. Section 3.03 No Liens. Except as provided herein, no work of construction has commenced or shall commence on the Property and no materials have been or will be delivered to the Property prior to the recording of the Deed of Trust. No preliminary or stop notice has been received or filed; no claim of lien has been recorded against the Property and all persons performing work and providing materials with respect to the Property have been paid in full. 1303105 Section 3.04 Insurance. If applicable as determined by the Town, Borrower has satisfied the Insurance Requirements set forth in the Deed of Trust("Insurance Requirements") and the policies are in full force and effect. Section 3.05 Taxes. Borrower has paid all taxes and all assessments due on the Property. ARTICLE 4 AFFIRMATIVE COVENANTS OF BORROWER Borrower makes all of the following covenants set forth in this Article 4 for the time stated. Section 4.01 Maintenance. Until the latter of the (i) date the Loan is repaid in full, or(ii) the date fourteen (14) years after completion of construction of the Eligible Improvements, Borrower shall maintain the Property in first-class condition and repair, at Borrower's own cost and expense. Borrower's obligation to maintain the Property as described herein shall also be secured by the Deed of Trust, if applicable. Section 4.02 Further Documents. Until repayment and performance in full of the Loan, Borrower shall furnish to the Town upon request all other instruments and documents in addition to those specifically referred to herein as may reasonably be required from time to time by the Town. Section 4.03 Payment of Taxes. Until repayment and performance in full of the Loan, Borrower shall: A. Duly and punctually pay and discharge all taxes, assessments and other charges against the Property prior to the date when they shall become delinquent, and all charges for labor, materials and supplies that if unpaid might become a lien encumbering any part of the property of Borrower. B. Duly and punctually pay principal and interest on all debt obligations of Borrower related to the Property. Section 4.04 Prevailing Wages. Borrower acknowledges the Town shall be responsible for payment of prevailing wages for all construction work required under this Agreement. For the purposes of this Agreement, "prevailing wages" means not less than the general prevailing rate of per diem wages, as defined in Section 1773 of the California Labor Code and Subchapter 3 of Chapter 8, Division 1, Title 8 of the California Code of Regulations (Section 16000 et seq.), and as established by the Director of the California Department of Industrial Relations ("DIR") for the respective craft classification. 1303105 Section 4.05 Prohibition on Sale, Transfers or Assignments of Property Secured by Deed of Trust. If all or any part of (i) the Borrower's interest in the Property; or (ii) the property secured by the Deed of Trust, if applicable, is sold, transferred or assigned by Borrower without Town's prior written consent, Town may, at Town's option, declare the outstanding balance of the Loan to be immediately due and payable. If Town exercises such option to accelerate, Town shall mail Borrower notice of acceleration in accordance with Section 5.04 hereof. Such notices shall provide a period of not less than 30 calendar days from the date the notice is maile�lc.within which Borrower may pay the sums dared due. IT-Borrower fails to pay such sums prior to the expiration of such period, Town may, without further notice or demand on Borrower, invoke any remedies permitted by law or in equity. This Section 4.05 doesnot apply to any interest conveyed in exchange for refinancing the Property as long as Borrower retains ownership and the Borrower or a family member continues to occupy the Property. ARTICLE 5 GENERAL PROVISIONS Section 5.01 Assistance. Nothing in this Agreement shall be construed to obligate the Town to provide additional funds to Borrower through any other Town assistance program. Section 5.02 Reserved. Section 5.03 Waiver. Any waiver by the Town of any term, condition or requirement of any of the Loan Documents shall not constitute a waiver of any other term, condition or requirement hereof or constitute a waiver of the same term, condition or requirement in any other instance. Section 5.04 Notices. All notices and other communications required or permitted under this Agreement shall be in writing, and may be delivered by hand, by facsimile transmission with verification of receipt, or by United States mail, postage prepaid and return receipt requested, addressed to the respective parties as follows: 1303105 To Town: Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 Attention: City Manager To Borrower: Boon Hoe and Irene Beng Hoe, Trustees of the k-ko s d° Cl : cl Trust 23165 Eastbrook Avenue Los Altos Hills, CA 94024 o such other address as any party may designate by notice in accordance withfhis Section. Notice shall be deemed given on the date of personal delivery by hand, or the date of receipt of facsimile transmission (with verification receipt), or on the date delivery is refused, if applicable. Section 5.06 Time. Time is of the essence in this Agreement. Section 5.07 Exhibits. Exhibit A and Exhibit B are attached hereto is incorporated by this reference. Section 5.08 Amendments. Amendments to this Agreement shall be effective only upon the mutual agreement in writing of the parties hereto. No amendment shall be binding upon the Town unless duly executed by an appropriate officer of the Town. Section 5.09 Hold Harmless. Borrower agrees to indemnify, defend and hold the Town, its officers and employees, harmless from all suits, actions, claims, causes of action, costs, demands, judgments and liens arising out of (i) Borrower's performance or non-performance under any of the Loan Documents, or any other agreement executed pursuant thereto. Borrower shall promptly notify the Town of any claims of which Borrower has notice or knowledge. This indemnification shall not apply to any suits, actions, claims, causes of action, costs, demands,judgments and liens arising from the Town's gross negligence or willful misconduct. Section 5.10 Successors and Assigns. Borrower binds itself, its partners, successors, assigns, and legal representatives to the Town with respect to all covenants, agreements, and obligations contained in the Loan Documents. Borrower shall not assign this Agreement in whole or in part without the written consent of the Town. 1303105 Section 5.11 Relationship. It is understood and agreed by and between the parties hereto that Borrower, in the performance of its obligations under the Loan Documents or any other agreement executed pursuant to this Agreement, shall not act, nor is it at any time authorized to act, as the agent or representative of the Town in any matter. Borrower agrees that it will not, in any matter, hold itself out as the agent or representative of the Town in any manner, or act in such a fashion as would give the impression to a reasonable person, that Borrower is acting in such a capacity. The relationship between Borrower and the Town is, and shall remain, solely that of borrower and Town. At all times Borrower shall act as Town and shall be an independent entity and not an agent or employee of the Town. Section 5.12 Document. This Agreement, including all Exhibits, the Note and the Deed of Trust or Lien, as applicable, together embody the agreement between the Town and Borrower for the Loan and its terms and verbal conditions. No agreements or conversations with any officer, agent or employee prior to the execution of this Agreement, shall affect or modify any of the terms or obligations contained in the Loan Documents. Any such verbal agreement considered unofficial information and in no way binding upon the Town. Section 5.13 Severability of Provisions. If any provisions of this Agreement are held invalid, the remainder of this Agreement shall not be affected hereby, if such remainder would then continue to conform to the terms and requirements of applicable law. Section 5.14 Conflict. If any term or provision in this Agreement conflicts with any term or provision of the Note, the term or provision in the Note shall control. Except for any subordination of the Deed of Trust, if any term or provision of any other Loan Document conflicts with any term or provision of this Agreement, the term or provision in this Agreement shall control. APPROVED AS I FORM TOWN OF LOS ALTOS HILLS By: J 1.4fiBy: LiLL 0O, Steven T. Mat .s, City Attorney By: Carl Cahill City Manager BORROWER By: Boon Hoe itr�. k s'; i-"P As Trustee of the -0-k �.11Trust By: Irene Beng F'ibe As Trustee of the Trust 1303105.11-� ,Vtr� 1303105 EXHIBIT A Description of Property Address: 23165 Eastbrook Avenue, Los Altos Hills, CA 94024 AP N: 331-24-017 Lt-Number Tract-5901-Lot#8 (See next page for Map of Tract 5801) 1303105 • - —_o w 1 I�A,r7/urn. %JUNIPER() SERRFI FIREIIWAY (HIGHWAY 290) • r 1 c ! T-� I[mis1.•pv sas.rr �jiinn rnyrnrl ,ty 1411..,t 1 J ""'"` . uTn 1ri.tt t". IL C'li al'tl. 1 1•31 Pyti�l!1:17rr'M JIrU'M rilrf lrrLS-) �;t�� pI,)<' ;� h (r'T as Int_,! r.R.. .,,..„4.,. ..„4„,.,./ .,,, „`1,A,. I"11' . '( ,eprI.113 cirtrTrinl.[ml, p.t.p.r .0i.,,c tis • t\\I ' . L' II • F 8 [i \, tt�IS r l r+N116'ATInel 30.11 J Ialar IAe a 4- y2,yti ik,. Vk}l -..o -� .4-4,” i I.votllk. t•o b Y• `^•y T }' aC a �vn•!/71'0 TG..?_ .1 Fr• AT f� ] �fi'�l��r I Y Yr frl � o �u�L v1 a/• N al ;� 1.1n11r[ Q`"1, �� e lul';.$;;D:?;? 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I.I ul.a' nsvo: nra Ai IAI 1 ; �# 01.11 • B - w .l0 ri T1' h Y� _ :;l1 j r�,�1 r'ip,.•6. i '✓' f rL dr%%wit, y .�� v'e.n njt. 5 1,...„3,•,, nat:Jrcree.ao�r>s~ h EA5�13R�01C' �1�Atard- • r„Ir l arir.rFutr[.wr,,Crrr,nre p.4;17•11 IIq liii • 1•lrVJe lutrn lr 11 Ml llrlufrr�lrr 0.r./nf 1, ,.�" JJA�WTrmrf TV rf rJ fA,rllrvi.nr+1 •1}-' J trrJ grArtl entT V TR/r•104 Y rN[1Lat Amyl a AIMWYrs — ar��Myr ' y/urNWul� I • J Ertl alrtalNll I IAO/ JUA61"4 y •`lir / mnnanotivr,-{i w.vrtrnn f'nlr r/J..1r�1 lulr r/Jhr.,rrt l.rtJ/ r rflrPm; 1 36 A:A I OASIS OF BEARINGS 1101ES AHD LEGEND TRACT NO, 56CH 71r hm+m iff.,7r'voDf'r/fdr VIri lf:lr tt r[Jr'ri';I At% All/rlr ii- A3lrsm" yr ikolz-rrtn Arlrrars iakcd rfkgcilli � A T I ':�� n,Arrm rn rHr/rirrSJt Mq>aJ��Il/rl;fr+v,t r(.nTrr/•'r/,,Jrh, rlydi•[lvivt]TJfi*IklSt rlkr[zarbj'r//rnlJsJr)h>t111•FW my. �_"-*1 �1 F�1 ACRES I r//th IJ rnd st r//Ir.rofAl4fI, Weil Ale boar,Ivr Ar/acro A11401:'frhlr'rt.irk 17flmger,rr/vir IJ Jrn f nitr.r ref 0 Afar&nad Pm+rrirrtr.l,,'ruirrr/ .ttcardr nu rLlm rr Ak rim)•/lrr.rnJa firr�Fmta ® Mdbrrr•3,71141•k Mean(,mint'Ntr em; It nl D"1INO A t'OIL1i'H Dr}DTe 111 MID DM1 OF T115 0MAF OF THE r AaSbhtlk:r/{r'Iwlllt,nritrr/lm:.rrmrrl. SUBDIYIBIONbF'THE'HALE FiAl1GN'FILED III DDOr,'1'orMAKIAT I a rr/(A/Jr/JE'l.e irreIoirul PAGES 49 AH'AO,BANTA,CLARACUUIITYRacy RDa. .rTT,.hoArtrrr PrnJ9/I SANTA�CLARA COUNTY 0CALIFORNIA 1107E 10.1• .JIDRAI 114/SArr EaeE1rWir /rrrr IratArvrrrr r/Inrpf/lrmrhr.N[n'r/p•rty/Jrarle- 1,1E r JAA?MF Jura IAJTrrifr i,.,,.:.,'' PAUL.0,NONlACIC AlIU A590C1ATE5,I11C. /irN/lIQ/Jihrlh/r leJ rr/rYrdrrrr.14lt redlifIrMr/F 1IJ.r,[pval1/fray I!LHrrr tinfirmlyVnTJpmt/rrrrr.,rm'ATGm}fnlr•JJr9,rlLrt�+r 1`° Cl/ILEIIGIIIAE 0 5'IRVGI'DR6 /A•r.rrlr.r/ . :•• r. 220 BTA1E OTR82T SUIT&'E' Net rrfll6t 11ar dTvir r m.glrJ,tc. I e L I9 ALT04,CALIFORIIIA,9402E �rrr l F rl� s ox•7/goy rf.'/< 'err 'h" t;r6 0Herir z or 4 9HGGT6 .........• 51,r It I 56 EXHIBIT B Payment Schedule 1303105 • �a " fN,, , z�emr^as � nwkftt 'i}m 6 mea k�a._� Mtmzzs 7� � rvxx� � 4^'�.A za � � ii�lids e k o ,4tw - ,� u^ rt� 11, i i€- s . I , i t r.- ..fi • a " �lgpAe , r - '' r, �� ' s � - 3 -P �,sem-�a, 7---;TrFfEtg-,� LySEtV4 IO , b 3 1.14 rrtb, < _r,ims... , tig,',r, -r £ atekiss L xi ua , 5W Loan Amount $21,756.25 Annual Interest Rate 3.00% Total#of Years 14 Closing Date 11/2/2009 Payment Payment Principal Due to City Payment# Amount Interest Principal Paid Balance 21,756.25 12/10/2009 1 943.68 68.89 874.79 874.79 20,881.46 4/10/2010 2 • 943.68 208.81 734.87 1,609.65 20,146.60 12/10/2010 3 943.68 402.93 540.75 2,150.40 19,605.85 4/10/2011 4 943.68 196.06 747.62 2,898.02 18,858.23 12/10/2011 5 943.68 377.16 566.52 3,464.54 18,291.71 4/10/2012 6. 943.68 182.92 760.76 4,225.31 17,530.94 12/10/2012 7 . 943.68 350.62 593.06 4,818.37 16,937.88 4/10/2013 8 943.68 169.38 774.30 5,592.67 16,163.58 12/10/2013 9 943.68 323.27 620.41 6,213.08 15,543.17 4/10/2014 10 943.68 155.43 788.25 7,001.33 14,754.92 12/10/2014 11 943.68 295.10 648.58 7,649.91 14,106.34 4/10/2015 12 943.68 141.06 802.62 8,452.53 13,303.72 12/10/2015 13 943.68 266.07 . 677.61 9,130.14 12,626.11 4/10/2016 14 943.68 126.26 817.42 9,947.56 11,808.69 12/10/2016 15 943.68 236.17 707.51 10,655.06 11,101.19 - 4/10/2017 16 943.68 111.01 832.67 11,487.73 10,268.52 12/10/2017 17 , 943.68 205.37 738.31 12,226.04 9,530.21 4/10/2018 18 943.68 95.30 848.38 13,074.42 8,681.83 12/10/2018 19 943.68 173.64 770.04 13,844.47 7,911.78 4/10/2019 20 943.68 79.12 864.56 14,709.03 7,047.22 12/10/2019 21 943.68 140.94 802.74 15,511.77 6,244.48 4/10/2020 22 943.68 62.44 881.24 16,393.00 5,363.25 12/10/2020 23 943.68 107.26 836.42 17,229.42 4,526.83 4/10/2021 24 943.68 45.27 898.41 18,127.83 3,628.42 12/10/2021 25 943.68 72.57 871.11 18,998.95 2,757.30 4/10/2022 26 943.68 27.57 916.11 19,915.05 1,841.20 12/10/2022 27 943.68 36.82 906.86 20,821.91 934.34 4/10/2023 28 943.68 9.34 934.34 21,756.25 0.00 RESOLUTION NO. 38-10 RESOLUTION OF INTENTION TO CREATE EASTBROOK SUBDIVISION TRACT 5801 CONTRACTUAL ASSESSMENT DISTRICT NO. 2010-1 FOR THE PURPOSE OF FINANCING SEWER IMPROVEMENTS WHEREAS,pursuant to the Agreement by Owner and or his Successors in Interest to Construct Future Sanitary Sewer Improvements dated November 10, 1976, owners of property in the Town's Eastbrook Subdivision Tract 5801 ("Subdivision") are obligated to construct a new sanitary sewer line; and WHEREAS,the public health and environment is best protected by the construction of upgraded,permanent and more environmentally appropriate sanitary sewer improvements to divert flow away from Permanente Creek; and WHEREAS,pursuant to those certain Loan Agreements between the Town of Los Altos Hills and participating property owners within the Subdivision,the Town agreed to loan to the owners of the properties identified in this Resolution,the funds required to install the sanitary sewer improvements; and the participating property owners agreed and willing consented to an assessment pursuant to California Streets and Highways Code, Sections 5898.10 et seq.; and WHEREAS, the City Council determines that it is convenient and advantageous to designate an area within the Subdivision, within which property owners may enter into contractual assessments for the financing of the sanitary sewer improvements. NOW, THEREFORE, based on the entirety of the record before it, the City Council of the Town of Los Altos Hills does RESOLVE as follows: 1. The foregoing recitals are true and correct and made a part of this Resolution. Attachments to this Resolution, including Exhibit A, "Proposed Boundaries of Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1" are incorporated into this Resolution by reference, as if set forth fully herein. 2. By separate Resolution,the City Council approved the following improvement under the authority of the Municipal Improvement Act of 1911, as amended, to wit: construction and installation of a sanitary sewer line on Eastbrook Avenue to divert flow towards the existing sanitary sewer manhole at Eastbrook Avenue and Mora Glen Drive, connecting the homes or lots in the Subdivision to the sewer main provided by the Town to the proximate boundaries of the Subdivision. wry. 3. The City Council hereby approves the proposed boundaries for the Contractual Assessment District, which would include seven (7)participating parcels, as shown on the map entitled, "Proposed Boundaries of Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1" (attached as Exhibit A and incorporated herein by reference) and identified by the following County of Santa Clara Assessor Parcel Numbers (APN) and addresses: (1)APN 331-24-010 (23275 Eastbrook Court) (2) APN 331-24-011 (23255 Eastbrook Court) (3)APN 331-24-012 (23235 Eastbrook Court) (4)APN 331-24-013 (23215 Eastbrook Court) (5) APN 331-24-014 (23195 Eastbrook Avenue) (6) APN 331-24-015 (23175 Eastbrook Avenue) (7) APN 331-24-017 (23165 Eastbrook Avenue) 4. The City Council intends to make contractual assessment financing available to participating parcels within the described district in accordance with the benefit to be received by each parcel of land, respectively, from the sanitary sewer improvement. The improvement will not confer any special benefit upon any publicly owned land. Hence, there shall be omitted from assessment district all public streets, alleys, and places and all land belonging to the United States, the State of California, Santa Clara County, and the Town of Los Altos Hills now in use in the performance of a public function. To the extent that there is any conflict between this Section 4 and the boundaries illustrated in Exhibit A, this Section 4 shall control. 5. The Town has provided loan financing for the improvements, subject to availability of funds and any limitation on the commitment or expenditure of funds for the Contractual Assessment District Program as may be established from time to time by the City Council. Through acceptance of the loan, and execution of those certain Loan Agreements between the Town of Los Altos Hills and participating property owners,the participating property owners have expressly agreed and willfully consented to repayment of the loans through assessments on the properties of the participating parcel owners, over the period and at the interest rate specified in the Loan Agreements. 6. The procedure for the collection of assessments will be the placement of assessments on participating parcel owners' tax bills. The first assessments may be placed on owners' tax bills in fiscal year 2010-2011. 7. The City Council appoints Richard Chiu, City Engineer/Public Works Director, as Engineer of Work for this project to prepare the report required by Section 5898.22 of the California Streets and Highways Code. 8. A public hearing shall be held on this matter at 6:30 p.m. on Friday, August, 6th, 2010, at 26379 Fremont Road (Council Chambers), Los Altos Hills at which interested persons may object to or inquire about the proposed program or its terms. This date is tentative and may be modified in the future. , ,,, 9. The City Council independently finds that this project is exempt from the California Environmental Quality Act(CEQA)under CEQA Guidelines Section 15061(b)(3), since it can be "seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment." This certainty is based on the City Council's past experience with numerous sewer construction projects of this nature, the relatively short distance involved, and the impact-limiting construction specifications that would be required of the project. PASSED AND ADOPTED this 15th day of July, 2010 by the following vote: AYES: Mayor Breene Kerr, Mayor Pro Tem Larsen, Councilmember Mordo, Councilmember Summit and Councilmember Warshawsky NOES: None ABSENT: None ABSTAIN: None Ai g__________ Breene . - ayor ATT r" :_ / - - A i / . I#A Karen Jost, C.-, k EXHIBIT A Proposed Boundaries of Eastbrook Subdivision Tract 5801 Contractual Assessment District No. 2010-1 ` c ED -Wcut 1.1iytes , tTgp,L,ott_ Su i3PLvtst o '112AC.I- SI8o'1 c L. ACES 1 Esc- -DIST C-r Nv►Mt3tf2 Zoi - 'l 4 I . (lardh• JUNIPERO SERRA FREEWAY (HIGHWAY 280) ` ` r ' ..., ufm •Mr�r • pwfcY aAejC Arra(gy.•'g. ' • _ AAw1.4e/e/te:- 444.......)T-....°14 meq r� • - gi �,iv'C• ,D. SOU. 1.•ea' retaa nsin tar mop M��� fig+ .- li e t . °t:� Loma 444 m 4 ..,#.4; r-�• ••• �4 tAn - 4441V4Telt saw .J _ I.om!!4- �a 111 :3 tenet.. ' tou p�i4�� '$ Iemu. i °k:-- iv.�a P"i �...••..r /0• Y; r> . k 4 t-fNt)c. '� rtd • 4q-k fut°faYs R fG . L „ 'S J18J7tPJro Olt f' fr.'i,4,-to U��_..R pq •.'• •�,,,444.,,„-m....... r. .25: / 5 , V• •8' L ,rdrn 1ti +'�^ ti , •1 .0 'Y td c.r'°'7r afxOtrc 1 �}�, 4t.�S s (7( l.�t �" •`L �I. j i C Dant m , sl 4 'S,�. {� -�e° � Of ,S-.)-Wei :J - ' %�pQ VIA v, I 44,‘ a. I"'dswt' vT 8 'I a. r - 1' 1 1 V `a '4r al '�6L �', �� r+� mom% yd` R LOOM. d' I 1b $4 ■•p•NYf` . V.► e i '�.'� rpda c°�a. �4r. r ►v`� dt ty1lY•BT�o Cr��i" • _ a.r4 g. .t it.r. ..` .VtA Yaaauty ••e.n•q.. r� �^ _...r .... s_. '••,•_ � YiGm�-- .a �� euaew an aaa _ '�. / _ Alms t#k �. • Us curd -'rr Lam.. r-0.-- fi •-xi)wt #�uu• iff6 `�`�-.... tf•r • _ i.rwK' '.¢' \� It Y.n! • •4f.i' �. tTIi1�" b t'rF _� -.i..45%411 1200.)•la I) EASTBROOK'I AVENUE K6,,,,,,. b y . •• - Re/ Aura _� f/ 6 a' 0..... a mire 'wsF.awa.rrwinruwrvr(an a.rar)T"�:. ;41-2.iir.' _. r m rraseiwxrerwam - Rt1y.s $ 0. w .o•r mar... se sun.m.rrt'ar q,iauwur° --: .ide7awanrq+.xaoar :447.x1: ' �• .� y !• •Iorsta X: uw(aautmra•mw)f rr•IWa) •r� p�r 3� lb 5 I,, \0..s a a.f16 I{ wd r r..da .! ruips0• ( '/ ii - -to � %' I ty BAt..OF BEARINGS NOTES AND LEGEND TRACT NO 5801 %ywnajK4arrio dl6ntYla TimtAri• �AT.•/,vmnr 110Alo ste m/a•0•alffek anblrf®ddr.001 • f� v1 a r,R Mtsy,� ./.wtsa,vot >x.�r�,v�rrl�Ma , �,a,.a d� �. EASTBROOK ACRES tlkfi flee St r! meltti&+der X k aril I°. &,flub%95/.2°ak 6lslmgas'o!pap 44.taafg Cat 64 O k4'ah,#t.s' a/r.tt ninf ilea fd Roads ma*la rs dfr dva./h,,, s Rr dL3mga ® *Anis F/Ml Ma:dN tats!ar at al DEEM A PORTION OF LOTS El AND 54 OF THE`MAA OF THE • Ada/0 hat atipe,rah°I)nn'an/d. SUBDIVISION OFTHS'HALE RANCH'FILED IN SOOIC'E OFYIAPO AT 0 OohsA &Ioa! CLrorhlrnr +r.*►•Ho /runn MmM/ePAGES 45 AND 49,6ANTA ARA NTY COURECORDS• NOTE LAE.. 575 W eetuarr;A3EMS 'r ..SANTA CLARA COUNTY,CALIFORNIA //qr b/h MIR Iii.lea ARA Rhdaffadmlphv/u Ass •uantRv sem$Rsamvr t ( ratwdwlrkrsLRa rSlas sada lrr rngla• R1.E••FDON6 aflr¢R SR AIM PAUL E.NOWACK AND ASSOOIATES,INC. miry ad /q rm/amnndar d 6 &treyRyvkdi+s /es•a°r'r) CIVIL ENGINEERS-SURVVORS A'ro••3•2 0./n[taw,.0.4.y1,0. (L' 220 STATE STREET SURE'5' LOS ALTOS,CALIFORNIA,54022 SEr7,t./97` f,ra A £9O2 7/ .',777.1r I V.4.F3ss,.,qsAr6 . 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