Water & Sewer Allocations - Nobel Capital LLCRECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
City Clerk
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
DOCUMENT: 21709829
REGINA ALCOMENDRAS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
City
Pages 15
Fees.... 57.00
Taxes...
Copies..
AMT PAID 57.00
RDE # 004
6/14/2012
2:20 PM
AGREEMENT FOR WATER USE AND SEWER USE ALLOCATIONS
FOR THE PROPERTY LOCATED AT 401 LEAVESLEY ROAD (APN 84104 061)
This Agreement is made and entered into by and between CITY OF GILROY, a municipal
corporation ( "CITY "), in the County of Santa Clara, California, and Nobel Capital LLC, California
limited liability company ( "OWNER "). Upon the signature of CITY and OWNER, this Agreement shall
be deemed to have taken effect as of June 1, 2012 ( "EFFECTIVE DATE ").
RECITALS:
WHEREAS, CITY operates the municipal water supply system and the municipal sewer treatment
plant and said water supply system and sewer treatment plant have a finite capacity to provide service;
and
WHEREAS, City Ordinance No. 2009 -01 and City Ordinance No. 2009 -02 (collectively, the
"ORDINANCES "), now codified, respectively, in the Gilroy City Code at Chapter 27, sections 27.76
through 27.80, and Chapter 19, section 19.115 through 19.119, established water use and sewer use
allocation programs, respectively; and
WHEREAS, the ORDINANCES require CITY to establish "daily water use allocations" in
gallons per day (gpd) and "daily sewer use allocations" in gpd, for all parcels of commercial and
industrial real property that are connected to CITY's municipal water and /or sewer systems; and
WHEREAS, the real property located at 401 Leavesley Road, Gilroy, CA, 95020, APN 835 04
061, which is more fully described in Exhibit "A" (attached and incorporated herein) (the "PROPERTY "),
is commercial or industrial real property that is connected to CITY's municipal water and sewer systems;
and
WHEREAS, the PROPERTY is owned by OWNER; and
WHEREAS, the PROPERTY does not have a "daily water use allocation" or a "daily sewer use
allocation" as those terms are defined in the ORDINANCES; and
WHEREAS, CITY and OWNER have agreed on and intend to be bound by daily water use
allocations and daily sewer use allocations, as set forth below; and
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WHEREAS, the water and sewer use allocations set forth herein are entitlements that benefit the
PROPERTY and are intended to run with the land.
NOW, THEREFORE, in consideration of the mutual promises contained herein, CITY and
OWNER agree as follows:
full.
Section 1. Incorporation of Recitals. The above Recitals are incorporated as if set forth in
Section 2. Daily Water and Sewer Use Allocations.
a. The daily water use allocation of 1996 gallons per day (gpd) is hereby conferred on
the PROPERTY. CITY and OWNER agree that this allocation is based on the actual daily water
use at the PROPERTY during the preceding thirty -six (36) months, as shown on Exhibit `B,"
(attached hereto and incorporated herein), and that this allocation has been calculated in
accordance with the ORDINANCES.
b. The daily sewer use allocation of 621 gallons per day (gpd) is hereby conferred on
the PROPERTY. CITY and OWNER agree that this allocation is based on the actual daily water
use at the PROPERTY, excluding water meters exclusively providing landscaping water, during
the preceding thirty -six (36) months, as shown on Exhibit `B," (attached hereto and incorporated
herein), and that this allocation has been calculated in accordance with the ORDINANCES.
C. Upon execution of this Agreement, OWNER will possess, pursuant to the terms
and conditions stated herein, a cumulative total daily water use allocation of 1996 gpd, and a
cumulative total daily sewer use allocation of 621 gpd.
d. Upon the recording of this Agreement in the Office of the Santa Clara County
Clerk- Recorder, the daily water use and daily sewer use allocations set forth in this Agreement are
entitlements that run with the land and shall be binding upon and run to the benefit of all persons
having or acquiring any right, title or interest in the PROPERTY or any part thereof, without the
payment of additional compensation. Notwithstanding the above, these allocations may be
terminated or rescinded as provided in this Agreement or the ORDINANCES.
e. This Agreement shall not release OWNER or OWNER's successor in interest from
any defaults of any prior water and sewer allocation agreement applicable to the PROPERTY or
from any water or sewer fees or charges applicable to the PROPERTY that are otherwise owed to
CITY.
Section 3. Underuse; Rescission of Water and Sewer Use Allocations.
a. Pursuant to the ORDINANCES, in the event that the PROPERTY's daily water
use, as determined by CITY, is consistently less than the daily water use allocation specified in
Section 2 of this Agreement, then CITY may, in its discretion, rescind all or part of the
PROPERTY's daily water use allocation.
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b. Pursuant to the ORDINANCES, in the event that the PROPERTY's daily sewer
use, as determined by CITY, is consistently less than the daily sewer use allocation specified in
Section 2 of this Agreement, then CITY may, in its discretion, rescind all or part of the
PROPERTY's daily sewer use allocation.
C. Pursuant to the ORDINANCES, prior to and as a condition of CITY's rescission of
any water or sewer use allocation, or portion thereof, and unless otherwise provided by the
ORDINANCES: (i) CITY shall provide the then current owner of the PROPERTY (at the name
and address maintained by the Santa Clara County Assessor's Office) written notification of
CITY's determination of such underuse, which determination is subject to appeal; and (ii) CITY
shall not make a rescission determination earlier than ninety (90) days after or later than one (1)
year after CITY's mailing of the notification of underuse. Written notice shall be made pursuant
to the ORDINANCES.
d. In its discretion, CITY may rescind all or part of the PROPERTY's daily water use
or daily sewer use allocation as otherwise provided in the ORDINANCES.
Section 4. Overuse; Charges and Penalties.
a. Pursuant to the ORDINANCES, OWNER shall be subject to charges and penalties
in the form of higher water and sewer rates for any actual water use and /or sewer use on the
PROPERTY in excess of the allocations specified in Section 2 of this Agreement.
b. Pursuant to the ORDINANCES, if the PROPERTY's average daily water use or
average daily sewer use over a period of thirty -six (36) consecutive billing periods exceeds its
total daily water or sewer use allocation for that period, CITY may require the owner of the
PROPERTY to enter into a new water /sewer use allocation agreement reflecting the
PROPERTY's actual and expected average daily water use and /or its actual and expected average
daily sewer use. Failure of OWNER to enter into a new water /sewer use allocation agreement
shall subject the PROPERTY to the overuse rates.
Section 5. Duties of Owner.
a. In the event of any potential sale or other conveyance of the PROPERTY: (i) prior
to the close of escrow, OWNER shall present the transferee with a copy of this Agreement (as
fully- executed and recorded), and notify the transferee in writing that transferee will be subject to
the daily water and sewer use allocations, fees and charges set forth in this Agreement unless the
transferee negotiates modified water or sewer use allocations with CITY, and that any changes in
use of the PROPERTY may require transferee to enter into a new or modified water and sewer
allocation agreement with CITY.
b. Any sale or other conveyance of the PROPERTY shall include as a condition of
any such sale or conveyance OWNER'S assignment to the transferee, and the transferee's express
written acceptance of the assignment, of this Agreement (including any amendments and /or partial
rescissions hereto), under which the transferee consents to the enforcement of all OWNER'S duties
and obligations under the Agreement by CITY. As a condition of escrow, OWNER shall record
any such assignment in the Office of the Santa Clara County Clerk - Recorder, and shall mail a
copy of the recorded assignment to CITY.
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C. OWNER shall attach a copy of this Agreement (as fully- executed and recorded), or
otherwise insert written notification of the terms and conditions of this Agreement, and any
amendments and /or partial rescissions hereto, in all deeds, leases and contracts it enters into that
affect any right, title or interest in the PROPERTY, including the rights to use and /or possess the
PROPERTY. All duties and obligations of this Agreement shall be binding on OWNER's
successor in interest to the PROPERTY notwithstanding OWNER's failure to enter into or record
an assignment of this Agreement.
d. With respect to any future agreement OWNER enters into for the leasing, use or
possession of the PROPERTY (including any amendment or addendum to an existing agreement),
OWNER shall secure in writing from any and all lessees, licensees, occupants and /or users of the
PROPERTY their agreement not to exceed the daily water use and daily sewer use allocations
stated in Section 2 of this Agreement.
e. OWNER shall investigate, and consult with CITY about, the possible use of
internal reclamation systems and water - saving devices on the PROPERTY.
Section 6. Increased Allocations. Should OWNER desire an increase in the daily water use
allocation and /or the daily sewer use allocation for the PROPERTY, or any portion thereof, it shall submit
a written application to CITY, and shall provide CITY with all information CITY deems necessary to
evaluate and confirm the OWNER's reasonable expected need for the increased allocations that are being
applied for. CITY shall determine, in its sole discretion, whether and the degree to which additional
allocations are available. To the extent CITY determines additional allocations are available, then CITY
shall give OWNER the option to acquire additional allocations at CITY's then - current published rates and
fees, and subject to OWNER and CITY entering into an amendment to this Agreement or a new
agreement to supersede this Agreement, in a form provided by CITY.
Section 7. Termination. CITY may terminate this Agreement upon OWNER's breach of any
of the provisions of this Agreement or OWNER's failure to pay monthly water or sewer use charges or
fees as invoiced by CITY. Notwithstanding any other terms of this Agreement, CITY reserves the right to
exercise any and all remedies available in law or in equity upon such breach or failure to pay invoiced
water and /or sewer charges and /or water and /or sewer allocation fees. All daily water use and daily sewer
use allocations conferred on the PROPERTY pursuant to Section 2 of this Agreement, above, or pursuant
to any previous agreement with CITY, shall be null and void upon the termination of this Agreement for
any reason, in which case CITY shall have no obligation to refund or otherwise compensate OWNER for
the terminated allocations.
Section 8. Measurement of Sewer Effluent. The daily sewer allocation is provided at the
same level as the daily water allocation for all water entering the building. No measurement for sewer
flow is required.
Section 9. Amendments To The Ordinances. Any references in this Agreement to the
ORDINANCES, or to any specific section of Gilroy City Code Chapter 27, sections 27.76 through 27.80,
or Chapter 19, section 19.115 through 19.119, shall be deemed to include the most recent versions of the
ORDINANCES, and the most recent corresponding sections of the Gilroy City Code, as they may be
amended from time to time.
\MDOLINGER \1040017.1 4
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Section 10. Binding Effect. The terms and conditions of this Agreement shall be enforceable
by and against CITY, and by and against OWNER and all subsequent owners, assigns, and successors in
interest of and to the PROPERTY, in perpetuity until such time as this Agreement is amended,
superseded, terminated or cancelled in accordance with the terms of this Agreement. This Agreement
shall be recorded in the Santa Clara County Office of the Clerk- Recorder.
Section 11. Allocations Not Transferable. The daily water use allocations and daily sewer
use allocations that are the subject of this Agreement shall only be used on or for activities and operations
on the PROPERTY, and they shall not be sold, purchased, assigned or otherwise transferred to any person
or entity except to subsequent owners of the PROPERTY for use on the PROPERTY.
Section 12. No Warranty. CITY neither represents nor warrants that the water and sewer
capacity necessary to satisfy the daily water use allocations and daily sewer use allocations specified in
Section 2 of this Agreement will be available at all times. CITY expressly reserves the right to provide
less water and /or less sewer capacity than is allocated herein, and /or to temporarily reduce or delay the
provision of water and /or sewer capacity, in order to address operational or legal issues, including but not
limited to: service, maintenance, drought, water rationing, rainy weather, fire department uses, regulatory
orders, changes in state law, and conditions beyond CITY's control. Such reductions or delays in water
supply and /or sewer capacity shall not be deemed to constitute violations of this Agreement, and shall not
entitle OWNER to a refund of daily water use or daily sewer use allocation fees, in whole or in part.
Section 13. Force Maieure. CITY shall not be in breach or default of this Agreement, or be
liable to OWNER or any other party, for any delay in or failure of performance under this Agreement that
directly or indirectly results from: governmental action (other than by CITY), including an order,
regulation or restriction of federal or state governmental, military or lawfully established civilian
authorities; acts of public enemies or terrorists; riot; insurrection; rebellion; revolution; state of war
(declared or undeclared), war conditions similar to a state of war, or preparation to a state of war, or
preparation for war; sabotage; blockade; embargo; fire; explosion; earthquake; nuclear accident; flood;
strike; lockout; plague or other epidemics; chemical, biological or nuclear catastrophe; power blackout;
hurricane, tropical storm, tornado or unusually severe weather condition; or other causes beyond CITY's
reasonable control. The time for CITY's performance under this Agreement shall be extended for a
reasonable period of delay resulting from any such cause.
Section 14. Owner's Representations. OWNER represents that it has reviewed the
ORDINANCES (specifically including but not limited to the sections addressing the calculations of the
daily water use allocation and daily sewer use allocation), and it has reviewed CITY's Schedule of Fees,
and has been advised by CITY to consult with legal counsel concerning those calculations and the effect
of the ORDINANCES and entering into this Agreement.
Section 15. Entire Agreement. This Agreement and amendments hereto constitute the final,
complete, and exclusive statement of the terms of the Agreement by and between CITY and OWNER and
supersedes all prior and contemporaneous understandings or agreements with respect to the matters herein
set forth. Neither CITY nor OWNER has been induced to enter into this Agreement by, and neither party
is relying on, any representation or warranty outside those expressly set forth in this Agreement.
Section 16. Partial Invalidity. If a court of competent jurisdiction or arbitrator holds any
provision of this Agreement to be void, invalid or unenforceable in whole or in part for any reason, the
validity and enforceability of the remaining provisions, or portions of them, shall not be affected.
WDOLINGEM1040017.1 5
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Section 17. No Waiver. No waiver by either party of any provision hereof shall be deemed a
waiver of any other provision hereof or of any subsequent breach by the other party of the same or any
other provision.
Section 18. Captions. The captions and headings of the Sections of this Agreement are for
convenience of reference only and shall not be deemed to define or limit the provisions thereof.
Section 19. Attorneys' Fees. In the event of any litigation or arbitration proceeding between
CITY and OWNER arising out of this Agreement as the same may be amended from time to time,
including but not limited to failure to make payments when due, the prevailing party shall be entitled to
recover its reasonable attorneys' fees and costs incurred in any such action or proceeding.
Section 20. Applicable Law, Jurisdiction; Venue. This Agreement shall be governed by and
construed in accordance with the laws of the State of California without regard to the conflict of laws
provisions of any jurisdiction. The parties specifically agree that the exclusive jurisdiction and venue
with respect to any and all disputes arising hereunder shall be in the State courts of the State of California
located in Santa Clara County, California.
IN WITNESS WHEREOF, CITY has executed this agreement as of
OWNER:
By: — L/
Paul Sagayaraj
President
ATTEST :1
Sha a Freels
CITY CLERK
APPROVED AS TO FORM:
Linda Callon
CITY ATTORNEY
Date:
��� S
1MDOLINGER11040017.1 6
040912 -04706091
CITY ADMINISTRATOR
52012.
CALIFORNIA • ACKNOWLEDGMENT
State of California
County of - ;!)rj Y,)fiL 0)
On
per:
Description of
IN6A ALONZO
Commission # 1931989
i s Notary Public • California
Santa Clara County
My Comm. Expires Apr 15.2015
Place Notary Seal Above
who proved to me on the basis of satisfactory evidence to
be the person(s)(whose name( & ere subscribed to the
)y thin instrument and acknowledged to me that
h`elsheltbey executed the same in19/il� authorized
capacity(iV), and that by his /her /their signatureK on the
instrument the person, or the entity upon behalf of
which the person) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is
true and correct.
WITNESS m h and offic' 1 seal.
Signature
Signature of Notary PLEli
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Signer Is Representing:
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OF SIGNER
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CALIFORNIA • ACKNOWLEDGMENT
.�.��.
State of California ,
County of � ` �& LL'Cr,__,
On
Date
personally appeared
who proved to me on the basis of satisfactory evidence to
be the person whose name(4)(giare- subscribed to the
within instrument and acknowledged to me that
he )fey executed the same in isilherkieir authorized
acity(i4k and that by i66ff+h ' signature* on the
instrument the person06, or the entity upon behalf of
which the person) acted, executed the instrument.
INGA ALONZO
Commission # 1931989 1 certify under PENALTY OF PERJURY under the laws
Z Notary Public - California >
Santa Clara County of the State of California that the foregoing paragraph is
M true and correct. Comm. Expires Apr 15, 2015 + .
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_ ❑ Partner — ❑ Limited ❑ General
• - - ❑ Attorney in Fact •
Top of thumb here ❑ Trustee Top of thumb here
❑ Guardian or Conservator
❑ Other:
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�C)a�
Exhibit A 1 of 2
LEGAL DESCRIPTION
Real property in the City of Gilroy, County of Santa Clara, State of California, described as
follows:
Portion of Lot 14, as shown upon that certain Map entitled, "Map of the Subdivision of the
Southerly portion of Las Animas Ranch Lot 34 and Sub Lot 2 ", which Map was filed for record in
the office of the Recorder of the County of Santa Clara, State of California, on October 8, 1909,
in Book M of Maps, at page 79, and more particularly described as follows:
Beginning at the point of intersection of the center line of Murray Avenue (60.00 feet in width)
with the Northwesterly line of Leavesley Road (60.00 feet in width), as said avenue and lot are
shown upon the Map above referred to; thence from said point of beginning North 220 20' West
along said center line of Murray Avenue for a distance of 214.83 feet to the Westernmost corner
of that certain tract of land described in the Deed from Mirene Godani, a widow, to Eugenio P.
and Irene R. Mantegary, recorded July 29, 1963, in Book 6124 Official Records, page 95, Santa
Clara County Records, thence leaving said center line of Murray Avenue and running North 630
40' East along the Northwesterly line of land so described in the Deed to said Mantagari and its
Northeasterly prolongation for a distance of 316 feet, more or less, to the point of intersection
thereof with the Northeasterly line of Lot 14, as said Lot is shown upon the Map above referred
to, thence South 250 20' East along said Northeasterly line of Lot 14 for a distance of 222 feet,
more or less, to the Easternmost corner thereof, in the said Northwesterly line of Leavesley Road
for a distance of 326.70 feet to the point of beginning.
Excepting therefrom that portion thereof conveyed to William G. Shepherd, et ux, by Deed
recorded December 5, 1977 in Book D317, page 273, Official Records, described as follows:
A portion of Lot 14, as shown on the Plat known as, "Map of the Subdivision of the Southerly
portion of Las Animas Ranch Lot 34 and Sub Lot 2," recorded on October 8, 1909 in Book M of
Maps, at page 79 of the Official Records of Santa Clara County, situate lying and being in the City
of Gilroy, Santa Clara County, California, and being more particularly described as follows:
Commencing at the intersection of the center line of Murray Avenue (60.00 feet in width), with
the Northwesterly right -of -way line of Leavesley Road (60.00 feet in width), as said avenue and
road are shown on the aforementioned plat; thence North 220 20'00" West along the center line
of said Murray Avenue, 214.83 feet to westernmost corner of that certain tract of land described
in the Deed from Irene Godani, a widow, to Eugenio P. and Irene R. Mantegari, recorded July 29,
1963 in Book 6124 at page 95, of the Official Records of Santa Clara County, thence leaving said
center line of Murray Avenue, North 630 40'00" East along the Northwesterly line of that last
mentioned Tract 197.08 feet more or less to the true point of beginning thence continue North
630 40' 00" East 118.92 feet to the point of intersection with the Northeasterly line of Lot 14, as
said Lot is shown upon the above mentioned plat; thence South 250 20'00" East along said
Northeasterly line of Lot 14, 222.00 feet more or less to a point being in common the Eastern
most corner of Lot 14 and a point on the Northwesterly right -of -way line of Leavesley Road,
118.20 feet more or less, thence North 250 20'00" leaving the Northwesterly right -of -way line of
Leavesley Road, 217.97 feet to the true point of beginning.
Also excepting therefrom that portion thereof conveyed to the City of Gilroy, by Deed recorded
June 10, 1988, in Book K565, page 1452, Official Records, described as follows:
First American Title Insurance Company
Exhibit A 2of2
All that real property situate in the City of Gilroy, County of Santa Clara, State of California being
a portion of Lot 14 as shown on the "Map of the Subdivision of the Southerly Portion of Las
Animas Ranch Lot 34 and Sub. Lot 2" filed October 8, 1909 in Houk M of Maps at page 79, Santa
Clara County Records also being a portion of the lands described in the deed to Chevron U.S.A., a
Pennsylvania corporation, recorded January 7, 1986 in Book 3568 at page 1384, Official Records
of Santa Clara County described as follows:
Commencing at the intersection of the centerline of Murray Avenue (66 feet wide) with the
northwesterly line of Leavesley Road (60 feet wide) as shown on said map; thence North 220 20'
00" West along the centerline of Murray Avenue, 214.83 feet to the westernmost corner of that
certain tract of land described in the deed from Mirene Godani, a widow, to Eugene P. and Irene
R. Mantegari, recorded July 29, 1963 in Book 6124 of Official Records at page 95, Santa Clara
County Records; thence leaving said centerline, North 630 40'00" East, 33.08 feet along the
northwesterly line of said Mantegari parcel (6124 O.R. 95) to the northeasterly line of Murray
Avenue as shown on the aforementioned map, said point being the TRUE POINT OF BEGINNING,
thence continuing along the northwesterly line of said Mantegari parcel, North 630 40'00" East,
10.03 feet, thence South 240 59'37" East, 175.05 feet to the beginning of a curve concave to the
north, having a radius of 40.00 feet, thence along said curve 63.07 feet through a central angle
of 900 20' 23" to a point on the northwesterly line of Leavesley Road being also the southeasterly
line of the aforementioned Lot 14; thence along said line, South 640 40' 00" West , 60.27 feet, to
the northeasterly line of Murray Avenue, thence along said line, North 220 20'00" West, 215.41
feet to the TRUE POINT OF BEGINNING.
First American Title Insurance Company
Exhibit B
Consumption History Report
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