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CONTRACT 3280 C-1 Other3260 RECORDING REQUEST BY WHEN RECORDED MAIL TO: City of El Segundo City Clerk's Office 350 Mail Street El Segundo, CA 90245 TITLE(S) FOR Residential Sound Insulation Program Agreement CA 90245 Laura R. Au and Broderick Walter, 770 West Imperial Avenue, Unit #28, El Segundo, EXEMPT FROM RECORDING FEES PER GOVERNMENT CODE § 6103 Contract Number: 3280 C -1 City of E1 Segundo Residential Sound Insulation Program Agreement This agreement is entered into this 23rd day of March, 2005 by and between the City of El Segundo, a general law city and municipal corporation ( "City "), and Laura R. Au and Broderick Walter, individuals owning real property located at 770 West Imperial Avenue, Unit #28 ( "Owner "). 1. RECITALS This agreement is made with reference to the following facts and objectives: A. Owner wishes to participate in the RSI Program which is made available to persons owning eligible real residential property within the City's jurisdiction. B. RSI Program is designed to mitigate noise generated by Los Angeles International Airport ( "LAX ") by installing sound insulation materials into residential buildings located within City's jurisdiction. C. RSI Program will fund up to eighty percent (80 %) of the cost for labor and materials associated with installing sound insulation into those buildings that qualify for the RSI Program. Owner understands that Owner is responsible for all remaining costs, depending upon various factors identified in this Agreement. 2. DEFINITIONS Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this Agreement. A. "RSI Program" means the City's Residential Sound Insulation Program as adopted by the City; B. "RSI Project" means the process (including design, administration, and construction) for completing the RSI Improvements; C. "RSI Improvements" means the constructed and installed materials designed to mitigate the impact of noise; D. "The Property" means real property owned in fee simple by Owner. 3. UNDERSTANDING REGARDING THE RSI PROGRAM By signing this Agreement, Owner certifies that Owner understands the manner in which the RSI Program is funded and administered. Owner further acknowledges that Owner received written program materials regarding the RSI Program and is fully informed regarding Owner's obligations if Owner participates in the RSI Program. 4. CONTROL OVER THE RSI PROGRAM AND PROGRESSION OF RSI PROJECT Owner understands and agrees that City has sole discretion over all aspects of the RSI Program including, without limitation, scheduling the timing of Owner's RSI Improvements on the Property. Owner should not have any expectation, nor does Owner have any right to demand, an immediate start to RSI Improvements upon signing this Agreement. City will use its best efforts to equitably and expeditiously implement the RSI Program, but will not be liable for any failure to do so. Single Family Page 1 of 7 Contract Number: 3280 C -1 t Secu�4 5. PROJECT COORDINATION AND SUPERVISION James S. O'Neill is designated as City's Program Coordinator and will monitor the progress and execution of this Agreement. Laura_ R. Au is designated as Owner's Representative. 6. NOTICES All communications to either party by the other party will be deemed made when received by such a party at its respective name and address, as follows: City City of El Segundo Attn: James O'Neill RSI Program 350 Main Street El Segundo, California 90245 Owners Laura R. Au & Broderick Walter 770 West Imperial Avenue Unit #28 El Segundo, California 90245 Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph. 7. APPROXIMATE COSTS FOR TERMINATING PARTICIPATION IN THE RSI PROGRAM Typical costs for early termination are set forth below follow for purposes of example only. The actual cost for early termination may vary significantly depending on the RSI Improvement plans for the Property. Project Stage Approximate Cost Up to (and including) Architectural Visit: $2,500 __ Up to (and including) advertisement for Construction__ _ _ $2,500 Up to (and including) ordering of RSI Improvements: $15,000 _ Contractor has begun installation of RSI Improvements: $10,000 TOTAL: $30,000 8. DISALLOWED COSTS RSI Program does not pay for costs associated with temporary or permanent relocation of persons or property from the Property. Owner understands and agrees that Owner is solely responsible for any such costs. Single Family Page 2 of 7 Contract Number: 3280 C -1 9. OWNER'S COSTS FOR PARTICIPATION IN THE RSI PROGRAM A. Five hundred dollars ($500.00) upon executing this Agreement with the City. This payment represents 20% of the costs to be incurred by the City for design costs (Design Consultant fees) and for RSI Program management and administration costs. B. Five hundred dollars ($500.00) upon acceptance of design plans for the Dwelling. This payment represents 20% of the costs to be incurred by the City for advertising Contractor bids for construction; remaining RSI Program management and administration costs; and construction monitoring (permit costs, inspections, and construction consultant fees). C. Twenty percent (20 %) of Bid Price (construction costs) for RSI Improvements and one hundred (100 %) of any City approved "Owner Upgrades." This represents the price determined by the successful bidding contractor to construct and install the specified RSI Improvements and costs for any extra items requested by the Property Owner and approved by the City to be included in the Plans. D. Twenty percent (20 %) of the total costs if the final sum exceeds the Bid Price. This represents additional costs incurred by the City for items not included in the Bid Price, yet determined necessary for the completion of construction due to unforeseen conditions that could not have been known at the time of design. 10. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM The City acquires funding from the Community Development Commission (CDC) for Property Owners who qualify as "low to moderate" income families, based on current income levels. This funding source can be used for owners of single family dwellings and condominiums to cover construction costs related to RSI Improvements. Owners of single family dwellings are eligible for up to $8,000 and owners of condominium dwellings are eligible for up to $6,000. ❑ This property has qualified for CDBG funding as of Date CDBG Program Administrator ® This property has not qualified for CDBG funding. 11. INSURANCE Owner will maintain Homeowner's Insurance throughout the term of this Agreement in an amount not less than $100,000 per occurrence for bodily injury and property damage. Owner agrees to provide City with copies of insurance certificates and endorsements showing coverage. 12. PROHIBITION AGAINST ADDITIONAL WORK Owner agrees that Owner will not make alterations to the Property or engage any contractor for any work during the time of the RSI Project. Single Family Page 3 of 7 Contract Number: 3280 C -1 13. STRUCTURAL DEFECTS AND ILLEGAL CONSTRUCTION Owner understands and agrees to repair any structural defect(s) on the Property during the term of this Agreement identified by City, the Design Consultants, or its Contractor, as necessary to continue the RSI Project. Such repair will be accomplished at Owner's sole cost. Should Owner fail to perform such repair, and such failure interferes with the timely progression of the RSI Project, City may either suspend the RSI Project or terminate this Agreement. Structural defects include, without limitation, dry rot, termite damage, illegal construction, or other physical damage. 14. LICENSE TO ENTER OWNER'S PROPERTY A. Owner grants City's representatives the right to access the Property subject to the following requirements: i. Individuals permitted access are limited to City's appointed officers, consultants, employees, and contractors that are directly concerned with administering the RSI Program and with the RSI Improvements. ii. Owner also grants City's building inspectors the right to access the Property to inspect the construction of RSI Improvements and to determine whether the RSI Improvements meet the requirements of applicable law. iii. City's representatives will schedule appointments with Owner to enter onto the Property. iv. If Owner rents out the Property, Owner agrees to take all steps reasonably necessary for City's representatives to gain entry to the Property. V. Owner, or Owner's representative, will accompany City's representatives during all pre- construction entries onto the Property. B. Owner also agrees to allow City's representatives to enter Property not later than ninety (90) days after City files a Notice of Completion to evaluate the effectiveness of the RSI Improvements. 15. HOLD HARMLESS A. Owner will hold City, and its agents, harmless and free from any and all liability arising out of this Agreement, or its performance, including any such liability caused, in part, by the passive negligent act or omission of City, or its agents. Should City, or its agents, be named in any suit, or should any claim be against it, or any of its agents, by suit or otherwise, whether the same be groundless or not, arising out of this Agreement, or its performance, pursuant to this Agreement, Owner will defend City (with counsel satisfactory to City), and its agents, and will indemnify them for any judgment rendered against them or any sums paid out in settlement or otherwise. B. For purposes of this section "City" includes City's elected officials, appointed officers, and employees. C. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement. Single Family Page 4 of 7 Contract Number: 3280 C -1 C StGU %Q 16. EARLY TERMINATION Owner may terminate this Agreement at anytime. Owner understands that, upon terminating this Agreement, Owner will not receive any cost off -set, reimbursement, or the RSI Program eighty percent (80 %) contribution. Rather, Owner will be solely responsible for paying one hundred percent (100 %) of the RSI Improvement costs incurred up to the date of termination. Approximate costs of early termination are listed in Section 7, above. 17. SALE OF OWNER'S PROPERTY DURING RSI IMPROVEMENTS Owner's conveyance of the Property before completing the RSI Project constitutes an Early Termination under Section 16 of this Agreement unless the following occurs: A. This Agreement is assigned to the buyer, with City's consent, and buyer agrees to the terms and conditions in this Agreement by written amendment; and B. Owner places funds equal to Owner's costs, if any, under this agreement into escrow and agrees by separate agreement to remain obligated for any remaining costs; and C. City determines, in its sole discretion, that there is sufficient funding in the RSI Program to pay for RSI Improvements on the Property after Owner's conveyance. 18. CITY'S TERMINATION A. City may terminate this Agreement with or without cause. Except as provided herein, City will not be liable to Owner for any damages that might arise from such termination. Should City terminate without cause, City agrees to provide Owner with those plans and specifications, or other documents (if any), necessary for Owner to continue installation of RSI Improvements. B. Should City terminate this Agreement for cause, including, without limitation, Owner's failure to pay Owner's share of RSI Project costs, City may, in its sole discretion, determine that such actions constitutes an Early Termination by Owner as set forth in Section 16 of this Agreement. C. Owner agrees that nothing in this Agreement is intended to, nor will it, obligate City to continue the RSI Project should federal, state or local funding become unavailable. Should any funding sources, including, without limitation, Owner's contribution, become unavailable to City for continued funding of the RSI Project, this Agreement will automatically terminate. City will notify Owner as soon as practicable regarding such termination, but in no event later than fifteen (15) days following such an event. D. Should this Agreement automatically terminate, Owner will be responsible for Owner's share of the RSI Project costs up to the date of termination. Should Owner choose to continue with the RSI Project, Owner will be responsible for all actions associated with the RSI Project including, without limitation, cost. Single Family Page 5 of 7 Contract Number: 3280 C -1 t SEGt�'� v 19. MAINTENANCE Owner agrees to assume the responsibility for maintenance and operation of the RSI Improvements after City files a Notice of Completion. Neither the FAA nor the City bears any responsibility for the maintenance and operation of these items. The property owner's right to sue the owner of Los Angeles International Airport for adverse noise impact will be abrogated if the property owner deliberately or willfully acts to reduce or destroy the effectiveness of the noise compatibility measures during the useful life of such measures. This obligation must remain in effect throughout the useful life of the noise compatibility measures, but not to exceed twenty (20) years from the date of the City's acceptance of Federal aid for the project. 20. WARRANTIES A. City does not make any warranties express or implied regarding the RSI Improvements. City represents, however, that it will require manufacturers and t, . - +- +-ro +n nrn.,;rle the fhUnwing warranties to Owner: Materials Length of Warrant Windows 10 years minimum Wood doors Storm Doors (if applicable) — - -- Sliding glass doors __ Mechanical devices (HVAC equipment) 5 years minimum - - - - -- Electrical devices — Installation 1 year B. Manufacturers and contractors will provide a copy of these warranties to Owner after the City files a Notice of Completion. C. This Section is not intended to, nor will it, limit any right Owner may acquire pursuant to any warranty. Moreover, this Section is not intended to limit any rights Owner may have under any contract between City and its consultants or contractors. 21. ASSIGNABILITY This Agreement may not be assigned without City's prior written consent. Any attempt to assign this Agreement without City's consent will constitute an Early Termination under Section 16 of this Agreement. 22. INTERPRETATION This Agreement was drafted in, and will be construed in accordance with the laws of, the State of California and exclusive venue for any action involving this Agreement will be in Los Angeles County. Single Family Page 6 of 7 Contract Number: 3280 C -1 suP EG 23. ENTIRE AGREEMENT This Agreement sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written. This Agreement will bind and insure to the benefit of the parties to this Agreement and any subsequent successors and assigns. 24. WAIVER In no event will any payment or any acceptance of payment by City hereunder constitute or be construed as a waiver by City or Owner of any breach of covenants or conditions of this Agreement or any default which may then exist on the part of City or Owner, and the making of any such payment while any such breach or default exists will in no way impair or prejudice any right or remedy available to City or Owner with respect to such breach or default. 25. AUTHORITY/MODIFICATION The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment. City's city manager may execute any such amendment on behalf of City. 26. RECORDATION The Parties agree that a copy of this Agreement will be recorded, at City's cost, in the Los Angeles County Recorder's office. IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written. CITY OF EL SEGUNDO: r T'S tirin, City Manager r ATTEST (44t-ZNW� �� Cindy M rtesen, City Cletrk APPROVED AS TO FORM: KARL H. BERGER, ASSISTANT CITY ATTORNEY March 15, 2005 (Signature required for changes) OWNERS: our R. Au Broderick Walter Single Family Page 7 of 7 Contract Number: 3280 C -1 1"' sE`u� State of California SS. County of Los Angeles On ,% before me personally appeared Laura Au and Broderick Walter, personally known to me ® proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. ,ITNESS my hand and official seal. Signature of tary PutLli MONICA OROZCO Commission # 1328667 Notary Public - California Los Angeles County 0MVComm.Exj**s Nov 5, 2005 Place Notary Seal Above June 17, 2005 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) On June 17, 2005, before Cathy Domann, Deputy City Clerk, personally appeared Mary Strenn, City Manager of the City of El Segundo, personally known to me to be the person whose name is subscribed same in her authorized capacity, and acknowledged to me that she executed th that by her signature on the instrument the person, or entity upon behalf of which the persons acted, executed the instrument. Witness my hand and Official Seal J Cathy mann, Deputy City Clerk C:forms \certsig