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HomeMy WebLinkAboutRDA Agenda Packet 081208CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY AGENDA Tuesday, August 12, 2008 REGULAR SESSION: 6:00 P.M. City Hall Council Chambers 6907 EI Camino Real Atascadero, California REGULAR SESSION: 6:00 P.M. ROLL CALL: Chairperson Beraud Vice Chairperson Luna Board Member Brennler Board Member Clay Board Member O'Malley APPROVAL OF AGENDA: Roll Call COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to address the Board on any matter not on this agenda and over which the Board has jurisdiction. Speakers are limited to three minutes. Please state your name and address for the record before making your presentation. The Board may take action to direct the staff to place a matter of business on a future agenda. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Board.) A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non -controversial by City staff and will be approved by one motion if no member of the Agency Board or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the consent calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Agency Board concerning the item before action is taken. DRAFT MINUTES: Agency meeting draft minutes are listed on the Consent Calendar for approval of the minutes. Should anyone wish to request an amendment to draft minutes, the item will be removed from the Consent Calendar and their suggestion will be considered by the Agency Board. If anyone desires to express their opinion concerning issues included in draft minutes, they should share their opinion during the Community Forum portion of this meeting.) 1. Community Redevelopment Agency Draft Minutes —May 13, 2008 ■ Board Secretary Recommendation: Board approve the Community Redevelopment Agency minutes of May 13, 2008. [Board Secretary] B. PUBLIC HEARINGS: None. C. MANAGEMENT REPORTS: 1. Purchase of Chamber of Commerce Building (6550 EI Camino Real) ■ Fiscal Impact: The total cost to the Agency is expected to be $11,500; $10,000 for the purchase of the building, $500 in repairs to the building and $1,000 for the lease of land under the building from the City. ■ Recommendations: Agency Board: 1. Authorize the purchase of the building at 6550 EI Camino Real for $10,000.00; and, 2. Appropriate $11,500 in Redevelopment Agency Funds for the purchase and maintenance of the building. [Executive Director] BOARD ANNOUNCEMENTS AND REPORTS: (On their own initiative, the Board Members may make a brief announcement or a brief report on their own activities. Board Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Board may take action on items listed on the Agenda.) D. ADJOURNMENT: ITEM NUMBER: RA A-1 DATE: 8/12/08 CITY OF ATASCADERO COMMUNITY REDEVELOPMENT AGENCY DRAFT MINUTES Tuesday, May 13, 2008 CLOSED SESSION: 5:30 P.M. REGULAR SESSION: 6:00 P.M. CLOSED SESSION: 5:30 P.M. Chairperson Beraud called the meeting to order at 5:30 p.m. Board Member Brennler asked Agency Counsel Brian Pierik to clarify his ability to participate in the Closed Session since a member of the public expressed concern that Board Member Brennler's earlier comments of support for Colony Square created a conflict of interest for him. Mr. Pierik stated that Mr. Brennler has no conflict of interest and may participate. Board Member Brennler stated that he would be stepping down on Closed Session Item #b due to the fact that he has family members that are employed by A tascadero Ford. Board Member O'Malley stated that he is opposed to discussing the following items under Closed Session. PUBLIC COMMENT — CLOSED SESSION David Broadwater submitted a copy of an FPPC Form 460 filed by Board Member Tom O'Malley showing a campaign contribution by Colony Square owner James Harrison of $1,000 to his campaign. Mr. Broadwater asked the Board to encourage Board Member O'Malley to abstain from the item concerning Colony Square. (Exhibit A) Roberta Fonzi, stated she is tired of Mr. Broadwater's accusations against Council Members and their contributions. RDA Draft Minutes 051308 Page 1 of 5 Steve Martin, Atascadero Main Street, reiterated that the Colony Square Project is critically important to downtown revitalization. Chairperson Beraud closed the Public Comment period. Chairperson Beraud explained for the public that more information on the Colony Square item will be available to the public at an upcoming Council meeting. A discussion ensued amongst the Board Members about abstentions and Closed Session formalities. Mr. Pierik answered questions of the Board. MOTION: By Board Member O'Malley and seconded by Board Member Brennler to postpone the Closed Session to after the Council meeting. Motion failed 2:3 by a roll -call vote. (Clay, Luna and Beraud opposed) Chairperson Beraud stated that the Board would now go into Closed Session. Agency Counsel Pierik stated that he would recommend that the Board postpone the Closed Session as it is now 6:00 p.m. and the Redevelopment Agency meeting should be beginning. He suggested that the Board could postpone to after the Public Hearing instead of waiting until the end of the Council meeting. MOTION: By Board Member O'Malley and seconded by Board Member Brennler to postpone the Closed Session until after the City Council meeting. Motion passed 4:1 by a roll -call vote. (Clay opposed) REGULAR SESSION: 6:00 P.M. ROLL CALL: Present: Board Members Brennler, Clay, O'Malley, Luna and Chairperson Beraud Absent: None Others Present: Board Secretary Marcia McClure Torgerson Staff Present: Executive Director Wade McKinney, Assistant Executive Director Jim Lewis, Deputy Executive Director Marty Tracey, Board Treasurer Rachelle Rickard, Community Development Director Warren Frace, Police Chief Jim Mulhall, Fire Chief Kurt Stone, Deputy Administrative Services Director Jeri Rangel, and Agency Counsel Brian Pierik. RDA Draft Minutes 051308 Page 2 of 5 APPROVAL OF AGENDA: MOTION: By Vice Chairperson Luna and seconded by Board Member Brennler to approve the agenda. Motion passed 5:0 by a roll -call vote. COMMUNITY FORUM - None A. MANAGEMENT REPORTS: 1. Mid -Year and Mid -Cycle Budget Revisions ■ Fiscal Impact: $273,810 decrease in Redevelopment Agency reserves for fiscal year 2007-2008 $612,540 decrease in Redevelopment Agency reserves for fiscal year 2008-2009 ■ Recommendation: Board adopt the attached Draft Resolution amending the 2007-2008 and 2008-2009 budgets. [Executive Director] Administrative Services Director Rachelle Rickard gave the staff report and answered questions of Council. PUBLIC COMMENT Joan O'Keefe, expressed her concerns with the approval by the Planning Commission for the $70,000 cost of the pedestrian bridge. Ms. O'Keefe also expressed concerns with the Fagade Improvement Program. Eric Greening, stated that he supports the pedestrian bridge but understands the concerns of some of the Planning Commissioners who are unclear of the action taken by the Commission concerning the pedestrian bridge. Chairperson Beraud closed the Public Comment period. The Board discussed various options for the pedestrian bridge and the increase of funding to Main Street. MOTION: By Board Member Luna and seconded by Board Member Clay to not approve any new appropriations without the elimination or reduction of a currently budgeted project or program, and adopt the Draft Resolution amending the 2007-2008 and 2008- 2009 budgets, with the following amendments: 1. Delete the pedestrian bridge from the budget for this year and next year; and 2. Allocate $25,000 to Atascadero Main Street as seed money for matching funds for the next year. RDA Draft Minutes 051308 Page 3 of 5 Motion passed 5:0 by a roll -call vote. 2. Appropriation of Funds for Restoration of Historic City Hall ■ Fiscal Impact: $6,527,700. ■ Recommendation: Agency Board appropriate $6,527,700 to cover the current funding shortfall for restoration of the historic City Hall and to assure the California Cultural and Historical Endowment that the City intends to move forward with the project. [Administrative Services] Administrative Services Director Rachelle Rickard gave the staff report and answered questions of the Board. PUBLIC COMMENT - None MOTION: By Board Member Brennler and seconded by Vice Chairperson Luna to appropriate $6,527,700 to cover the current funding shortfall for restoration of the Historic City Hall and to assure the California Cultural and Historical Endowment that the City intends to move forward with the project. Motion passed 5:0 by a roll -call vote. 3. Atascadero Creek Bank Restoration Project — City Bid No. 2006-011 ■ Fiscal Impact: None. ■ Recommendations: Board: 1. Accept Arthurs Contracting, Inc.'s work as complete. 2. Authorize the Public Works Director to sign and file the Notice of Completion. [Public Works] Public Works Director Steve Kahn gave the staff report and answered questions of the Board. PUBLIC COMMENT Geraldine Brashier, member of Historical Society, is pleased with the way the work has been completed. Chairperson Beraud closed the Public Comment period. MOTION: By Board Member O'Malley and seconded by Vice Chairperson Luna to accept Arthurs contracting, Inc.'s work as complete and authorize the Public Works Director to sign and file the Notice of Completion. Motion passed 5:0 by a roll -call vote. BOARD ANNOUNCEMENTS AND REPORTS: RDA Draft Minutes 051308 Page 4 of 5 Board Member Clay stated that people need to realize that the Historic City Hall foundation needs to be repaired before the building can be repaired. Board Member O'Malley asked for an update on the Wood Nymphs statue repairs. Board Member Brennler suggested the statue could be placed inside City Hall after repairs are completed. C. ADJOURNMENT: Chairperson Beraud adjourned the meeting at 7:24 p.m. REDEVELOPMENT AGENCY CLOSED SESSION (continued from Redevelopment Agency meeting at 5:30 p.m. to after City Council meeting.) 1. CALL TO ORDER — 11:00 p.m. a. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Govt. Code Sec. 54956.8) Property: 6905 EI Camino Real Agency Negotiator: Wade McKinney, Executive Director Negotiating Parties: James Harrison Under Negotiation: Instruction to negotiator will concern price and terms of payment. b. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Govt. Code Sec. 54956.8) Property: 3855, 3865, 3895 and 3905 EI Camino Real Agency Negotiator: Wade McKinney, Executive Director Negotiating Parties: Alan Yarborough Under Negotiation: Instruction to negotiator will concern price and terms of payment. 2. ADJOURN — 11:30 p.m. REDEVELOPMENT AGENCY CLOSED SESSION REPORT The Agency Counsel stated that there was no reportable action taken. MINUTES PREPARED BY: Marcia McClure Torgerson, C.M.C., City Clerk Exhibit A — FPPC Form 460 for Tom O'Malley (6/30/06), submitted by David Broadwater RDA Draft Minutes 051308 Page 5 of 5 ITEM NUMBER: RA C-1 DATE: 8/12/08 Community Redevelopment Agency of Atascadero Staff Report — Executive Director Purchase of Chamber of Commerce Building (6550 EI Camino Real) RECOMMENDATIONS: Agency Board: 1. Authorize the purchase of the building at 6550 EI Camino Real for $10,000.00; and, 2. Appropriate $11,500 in Redevelopment Agency Funds for the purchase and maintenance of the building. DISCUSSION: The Atascadero Chamber of Commerce has relocated to a new location leaving their previous location vacant. The Chamber owns the building located at 6550 EI Camino Real and the City owns the property. The Chamber pays an annual lease of $1,000.00 for the site. The Chamber has offered to sell the building to the Agency. The City and Agency have reviewed conceptual plans in recent years to expand the pedestrian tunnel and tie it into the Sunken Gardens. Ownership of the building would simplify this project. The City is currently working on a scaled down version of improvements to the pedestrian tunnel which are expected to be constructed next year. There are no current plans for a larger project although ownership of the building provides more opportunities. During the interim period the Agency could rent the building to another organization. The Agency obtained a report from Key Termite regarding existing conditions. The City's Community Development and Public Works Departments reviewed the report and the building. Based upon the assumptions that the building would be used for less than a few years before being demolished, the Public Works Department recommends an improvement to the electrical panel. Other improvements are not necessary at this time. FISCAL IMPACT: The total cost to the Agency is expected to be $11,500; $10,000 for the purchase of the building, $500 in repairs to the building and $1,000 for the lease of land under the building from the City. At their May 13, 2008 meeting, the Board adopted a policy to "Not approve any new appropriations without the elimination or reduction of a currently budgeted project or program." At the same meeting, the Board eliminated the Downtown Pedestrian Bridge Project for a net reduction of $280,000. This proposed purchase falls within that net reduction and thus complies with the policy. ALTERNATIVE: The Agency could elect to not purchase the building. In this case, the Chamber would likely request the City to allow for sub leasing the building, thus providing revenue to offset their new location costs. ATTACHMENTS: 1. Purchase agreement 2. Staff Findings on Chamber Building 3. Key Termite and Pest Control Report Attachment PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT ("Agreement"), dated as of August 2008, is entered into between the City of Atascadero Community Redevelopment Agency, California, a municipal corporation (hereinafter referred to as "Buyer") and Atascadero Chamber of Commerce, a California non-profit corporation (hereinafter referred to as "Seller"), with reference to the following facts: RECITALS WHEREAS, Seller owns a modular building on land owned by the City of Atascadero, and has operated said modular building as a Chamber of Commerce at this location since on or about July 21,1973, and; WHEREAS, pursuant to the terms and conditions set forth herein, Seller desires to sell, and Buyer desires to purchase said modular building residing on said land located at 6550 EI Camino Real, Atascadero, California (hereinafter referred to "Owned Property"), and; WHEREAS, in consideration of the mutual promises set forth herein and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged; NOW, THEREFORE, the parties hereto agree as follows: AGREEMENT: 1. Sale of Owned Property. Seller hereby sells, transfers, conveys and quitclaims to Buyer, and Buyer hereby purchases, accepts and assumes, all of Seller's right, title and interest in and to the Owned Property. In consideration, Buyer shall pay $10,000 to Seller upon the execution and delivery of this Agreement by Seller. Such sum shall be paid by check within thirty (30) days following the Execution Date. The purchase and sale of the Owned Property shall be deemed effective as of the Effective Date. The transfer of the Owned Property shall be evidenced by the parties' concurrent execution of a Bill of Sale, the form of which is attached hereto as Exhibit C. All risk of loss with respect to the Tangible Personal Property shall be deemed transferred to Seller as of the Effective Date. 2. Status of the Property — "As Is"; No Representations or Warranties. Seller represents and warrants that it has good and marketable title to the Owned Property and that the Owned Property is sold and transferred to Buyer free and clear of all liens, claims and/or encumbrances of whatever kind or nature, other than usual and customary liens for property taxes not yet due and payable and for transfer taxes that may arise upon the sale of the Owned Property. 3. Indemnification Obliqations. a. Seller indemnifies Buyer against, and holds Buyer harmless from, any and all losses, claims, expenses, costs, causes of action or obligations (including reasonable attorneys fees) incurred in connection with, or arising from (i) Seller's ownership, possession, use or operation of the Owned Property during any period ending on or prior to the Effective Date, or (ii) Seller's breach of any of its representations, warranties or covenants under this Agreement. b. Buyer indemnifies Seller against, and holds Seller harmless from, any losses, claims, expenses, costs, causes of action or obligations (including reasonable attorneys fees) incurred in connection with, or arising from (i) Buyer's ownership, possession, use, operation or disposition of the Owned Property during any period commencing on or after August , 2008, or (ii) Buyer's breach of any of its representations, warranties or covenants under this Agreement. 4. Governing Law. The parties agree that the laws of the State of California shall govern this Agreement. Buyer and Seller agree that any suit brought by either party against the other arising out of the performance of this Agreement shall be brought and maintained in the Superior Court of California, In and For the County of San Luis Obispo. 5. Notices. Any notices, payments or consents required or desired to be served or given by either party upon the other shall be addressed to the respective parties as set forth below: Buyer Seller Executive Director Executive Director Atascadero Community Redevelopment Agency Chamber of Commerce 6907 EI Camino Real 6904 EI Camino Real Atascadero, CA 993422 Atascadero, CA 993422 Or the respective parties shall designate such addresses as from time to time. 6. Heading Not Controlling. Headings used in this Agreement are for reference purposes only and shall not be considered in construing this Agreement. 7. Multiple Counterparts. This Agreement may be executed in any number of counterparts and the signatures delivered by telecopy, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 8. Further Assurances. The parties agree to cooperate with each other and to execute, deliver and record such other agreements and documents and to take such other actions as are reasonably necessary or helpful to more effectively consummate the transactions contemplated under this Agreement and to carry out its purpose and intent. Upon reasonable notice, Seller shall provide Buyer with reasonable access to, and allow it to copy, any books and records concerning the Tangible Personal Property as are in Seller's possession or control. 9. Entire Agreement: This Agreement and exhibits contains the entire agreement between Buyer and Seller. All previous proposals and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver of, or exception to any of the terms, conditions, and provisions of this Agreement shall be considered valid unless specifically agreed to in writing by all the parties. 10. Partial Invalidity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. 11. Waiver. The waiver by any party to this Agreement of a breach of any provision hereof, shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof, unless specifically stated in writing. 12. Execution. The undersigned acknowledge having read and understood the foregoing. IN WITNESS WHEREFORE, the parties hereto have executed this agreement on the day and year above and below written. Community Redevelopment Agency Date: Wade McKinney, Executive Director ATTEST: Az Marcia Torgerson, City Clerk Atascadero Chamber of Commerce Date: in Joanne Main, Executive Director EXHIBIT A BILL OF SALE For valuable consideration, the receipt of which is acknowledged, Atascadero Chamber of Commerce, a California non-profit corporation ("Seller"), hereby sells, conveys, transfers and quitclaims to City of Atascadero Community Redevelopment Agency, California, a municipal corporation ("Buyer"), all of Seller's right, title and interest in and to the "Owned Property". Such sale, conveyance, transfer and quitclaim shall be deemed effective as of August , 2008. The Owned Property is being transferred "as is," "where is" and with "all faults," and Buyer shall have no recourse against Seller. The Owned Property is being delivered free and clear of all liens, claims and/or encumbrances of whatever kind other than transfer taxes due and owing as a result of the transfer of ownership of the Owned Property. Seller expressly disclaims any representations or warranties as to the value, condition or functionality of the Owned Property or its suitability for any particular purpose. This Bill of Sale shall be governed by, and construed in accordance with, the laws of the State of California applicable to contracts made and to be performed wholly within such State, without giving effect to the conflict of laws principles thereof. This Bill of Sale may be executed in any number of counterparts and the signatures delivered by telecopy, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. Community Redevelopment Agency Date: Wade G. McKinney, Executive Director ATTEST: in Marcia McClure Torgerson, City Clerk Atascadero Chamber of Commerce Date: JIM Joanne Main, Executive Director CITY OF ATASCADERO PUBLIC WORKS DEPARTMENT 6507 El CAMINO REAL, ATASCADERO, CA 93422 Telephone (805) 461-5000 * Fax (805) 470-3481 Date: July 30, 2008 To: Wade G. McKinney, City Manager JUL 3 1 2008 From: Steven B. Kahn, Public Works Director CITY' OF ATASCADER0 CI1Y MANAGER'S OFFICE Subject: Chamber Building The Chamber of Commerce has moved out of their office located on City owned property at 6550 EI Camino Real. The Chamber of Commerce owns the building. We have been asked to assess the condition of the building and any improvements that may be needed prior to the building being occupied by others. The building has been inspected by: Key Termite and Pest Control City of Atascadero Building Department City of Atascadero Public Works Department The findings are as follows: • Earth to wood contact found in the front porch. • Minor fungus found at ends of 2*12 in front porch. • Minor fungus damage found in plywood adjacent to toilet. • Cracks in beam and fascia found on west side of building. • Rear porch and underneath building inaccessible. Possibility joists are too close to the ground. • Main electrical panel is being fed through a 60 amp breaker. The feeders should be connected to the lugs provided by manufacture. • The building does not meet ADA requirements and the requirements of Chapter 11 of the CBC. If a building permit is issued, improvements to bring the building into compliance will be required. Recommended repairs and costs • Dry rot and fungus. All the recommendations listed in the termite report were minor in nature. No repairs are recommended. Continue to monitor and if condition worsens in the flooring it is recommended to repair. • Separation from foundation and substructure to ground. This building may be built too close to the ground. To correct this entire building would need to be raised and a new foundation installed. The value of the building is worth less than the cost of the corrective work. No repairs are recommended. • Electrical work. It is recommended the Main electrical panel be upgraded by City Staff. Estimated cost $500.00 Attachment: Key Termite and Pest Control Report vvvvv vGJ i rCv i trvv r-t=a I a HNL) VKUHNIJIVIJ 1NbV1=U I IVN KtF L)K I Building No. Street City Zip Dale of Inspection Number of Pages 6550 EI Camino Real Atascadero 93422 07/16/08 5 ArA A LICENSED PEST CONTROL OPERATOR 1S AN EXPERT IN HIS/FIE-R FIELD. ANY QUESTIONS IM %f/TfandprE.FrC0 7F0L RELATIVE TO THIS REPORT SHOULD BE REFERRED TO P.O. Box 969, Atascadero, CA 93423 HIM/HER. 800-548-55991845-466-8026 fax Report #: 57156 www.keytermite.com 1 infoigkeytermite.com Ordered by: Property Owner and/or Party of Interest: Report sent to: Atascadero Chamber of Commerce Atascadero Redevelopment Agency Atascadero Redevelopment Agency 6550 EI Camino Real 6907 EI Camino Real 6907 EI Camino Real Atascadero, CA 93422 Atascadero, CA 93422 Atascadero, CA 93422 COMPLETE REPORT ® LIMITED REPORT ❑ SUPPLEMENTAL REPORT ❑ REINSPECTION REPORT ❑ CORRECTED REPORT ❑ General Description: Inspection Tag Posted: Single Story, Commercial Building; Stucco and Wood exterior; Composition shingle roof; Furnished and occupied. Other Tags Posted: An inspection has been made of the structure(s) shown on the diagram in accordance with the Structural Pest Control Act. Detached porches, detached steps, detached decks and any other structures not on the diagram were not inspected. Subterranean Termites ❑ Drywood Termites ❑ Fungus/Dryrot ® Other Findings ® Further Inspection If any of the above boxes are checked, it indicates that there were visible problems in accessible areas. Read the report for details on checked items. Key; 1 = Subterranean Termites 2 = Drywood Termites 3 = Fungus/Dryrot 4 = Other Findings 5 = Unknown Further Ins ecGon Inspected By: Mark Maxwell ***Complete Inspection Report** 3A Diagram not to scale Finding locations approximate License No.: OPR7140 Signature: You are entitled to obtain copies of all reports and completion notices on this property reported to the Structural Pest Control Board during the precediny1two ye• rs. To obtain copies contact Structural Pest Control Board, 2005 Evergreen Street, Suite 1500, Sacramento, California, 95815-3831. NOTE: Questions or problems concerning the above report should be directed to the manager of the company. Unresolved questions or problems with services performed may be directed to the Structural Pest Control Board at (916) 561-8708, (800) 737-8188 or www:pestboard ca.gov. 43M-41 (REV. 10/01) c11Cr101 vV111111Gt11� THIS IS A COMPLETE INSPECTION and includes structure(s) of the property as described on page one of this report. The inspection is limited to visible and accessible areas of the structure(s) drawn in diagram space. Other structures of the property were not included in this report. See the statements on the final page of this report for further information as to the scope of this inspection. This is a separated report which is defined as Section I/Section II conditions evident on the date of the inspection. "SECTION I" contains items where there is visible evidence of active infestation, infection or conditions that have resulted in or from infestation of infection. "SECTION II" items are conditions deemed likely to lead to infestation or infection but where no visible evidence of such was found. "FURTHER INSPECTION" items are defined as recommendations to inspect area(s) which during the original inspection did not allow the inspector access to complete the inspection and cannot be defined as Section I or Section II. In addition to the breakdown listed in the report, 'INFORMATIONAL ITEMS' may also be listed at the end of this report concerning items where the inspector wishes to inform parties in interest about questionable conditions found. These conditions may be of concern to parties in interest, but did not qualify as a required finding or correction as defined by the Structural Pest Control Act. Description of Findings SECTION: I FUNGUS/DRYROT Finding: 3A Minor fungus damage was found at the end of 2x12 deck board. Recommendation: Remove and replace the damaged portions of the end of 2x12 deck board as needed to eliminate the fungus infection and damage. Price: Price on request Finding: 3B Minor fungus damage was found at the plywood adjacent to the toilet. Recommendation: Repair at this time is deemed impractical. Periodic inspection should be done to monitor this condition. Price: Price on request OTHER FINDINGS Finding: 413 Recommendation: Price: SECTION: II OTHER FINDINGS Finding: 4A Recommendation Price: Cracks in beam and fascia may allow moisture to enter and cause fungus damage. Caulk the cracks and paint to protect the interior of the wood members. Price on request Earth to wood contact exists at the base of porch posts and steps due to lack of a porper concrete footing. Install concrete footing above the soil grade level to eliminate the earth to wood contact. Price on request UNKNOWN FURTHER INSPECTION FURTHER INSPECTIONS Finding: 5A A portion of the substructure area was inaccessible for inspection due to low clearances. Recommendation: Excavate the substructure soil to allow a minimum of 12" of clearance between the bottom of the floor joists and the soil grade level. Reinspect the substructure area and submit further findings on a supplemental report. Price for Reinspection and Report will be $50.00 if excavation is completed by others. Price: Price on request Finding: 5B The area beneath the wood porch was inaccessible for inspection due to low clearances. Recommendation: Remove two boards every six feet of the top decking to allow for further inspection. Reinspect and submit further findings on a supplemental report. Note: Damage may occur to the decking as a result of the decking removal. Additional costs will apply, if necessary, when decking is reinstalled by this company. Cost for reinspection and report will be $50.00 if decking is removed and reinstalled by others. Price: Price on request Section I Total: $0.00 Section II Total: $0.00 Section III Total: $0.00 Grand Total: $0.00 (totals include items priced above only) n nv1111auvA Ic11 rLW 11J INFORMATIONAL ITEM> N1 : The detached storage shed was not inspected. Parties in interest should satisfy themselves as to this condition prior to the close of escrow. ..vvv v`.� rev rrvv rcJ t J NIVL! VM"ANIJIVIJ INJf-LIL; I IVN KLPL)R F Building No Street City Zip Dale of Inspection 16550 EI Camino Real Atascadero 93422 1 07/16/08 1.This inspection is limited to the visible and accessible portions of the structure as noted on the diagram only. Although a full diagram may be drawn for reference purposes, all areas may not have been inspected. Please read the entire report to determine the limitations of the inspection. All findings will pertain to infestation and/or infection by wood destroying pests and/or organisms and does not include reference to other structural pests such as, but not limited to; Rats, Mice, Bats, Fleas, Cockroaches, Ants, Etc.. This inspection does not include opinions as to the condition of plumbing, roofing, electrical, gas, heating, air conditioning, or other such structural elements. If such information is desired, we suggest that a qualified Home Inspector and Contractors be contacted. Inspection of fences is not included in this report unless otherwise stated. The exterior surface of the roof was not inspected. If you want the water tightness of the roof determined, you should contact a roofing contractor who is licensed by the Contractors' State License Board. 2.The following areas were not inspected, as indicated in Section #1990, paragraph 0) of the Structural Pest Control Act and Rules and Regulations: Portions of furnished interiors concealed by personal property, inaccessible attics, insulated attics, and portions thereof; the interior of hollow walls; spaces between a floor or porch deck and the ceiling or soffit below; stall showers over finished ceilings: such structural segments as porte-cocheres, enclosed bay windows, buttresses and similar areas to which there is no access without defacing or tearing out lumber, masonry and finished work; built-in cabinet work, floor beneath coverings; areas where storage conditions or locks makes inspection impractical; portions of the structure covered by plant growth. The inspector did not move storage or furnishings during inspection. NEITHER KEY TERMITE AND PEST CONTROL, INC. NOR ITS EMPLOYEES OR SUBCONTRACTORS MAKES ANY GUARANTEE AGAINST FUTURE OR HIDDEN INFESTATION(S), INFECTION(S), OR ADVERSE CONDITION(S) PRESENT BUT NOT EVIDENT AT THE TIME OF INSPECTION(S). Routine inspection does not include opening windows, opening all exterior doors or inspecting interior of cabinets. Further inspection of these areas may be completed upon request and at additional expense. 3.CERTIFICATION applies to visible and accessible areas of the structure observed at the time of original inspection. This certification does not constitute a guarantee that parties in interest will not inherit hidden infestations, infections or adverse conditions. Key Termite and Pest Control, Inc. assumes no liability for such hidden conditions. If a problem is discovered that was not disclosed during our inspections, do not disturb the area. Contact our office immediately to inspect the problem area and allow proper determination. This limitation does not apply to our 5 year guarantee on Fumigation or Full Perimeter Subterranean Termite treatments. 4.REINSPECTIONS; "This Company will reinspect repairs done by others within 4 months of the Original inspection. A charge, if any can be no greater than the original inspection fee for each reinspection. The reinspection must be done within ten (10) working days of request. The reinspection is a visual inspection and if inspection of concealed areas is desired, inspection of work in progress will be necessary. Any guarantees must be received from parties performing repairs." Consultation appointments will be made upon request. On site appointments will be billed at a minimum of $45.00 per appointment. Telephone calls to discuss the report findings are no charge. 5.The structure was inspected from the ground level only. Portions of the structure that extend more than 10 feet from the ground level were visually inspected only. Accuracy above this point cannot be guaranteed. Wood members showing visible signs of infestation or infection were pick -tested to determine the nature and extent of the finding. The inspector did not get up on the roof to inspect wood members accessible from the roof. 6.NOTICE: The structural Pest Control Board encourages competitive business practices among registered companies. Reports on this structure prepared by various companies should list the same findings (i.e. termite infestations, termite damage, fungus damage, etc.). However, recommendations to correct these findings may vary company to company. You have a right to seek a second opinion from another company. Prices quoted are a sealed bid and are not to be disclosed to another tradesperson or company. All bids are subject to the terms of our "Work Authorization Contract". Please be aware of these terms prior to any property sale negotiation. 7.NOTICE: The charge for service that this company subcontracts to another person or entity may include the company's charges for arranging and administering such services that are in addition to the direct costs associated with paying the subcontractor. YOU MAY ACCEPT KEY TERMITE AND PEST CONTROL, INC.'S BID OR YOU MAY CONTRACT DIRECTLY WITH ANOTHER REGISTERED COMPANY LICENSED TO PERFORM THE WORK. IF YOU CHOOSE TO CONTRACT DIRECTLY WITH ANOTHER REGISTERED COMPANY, KEY TERMITE AND PEST CONTROL, INC. WILL NOT BE RESPONSIBLE FOR ANY ACT OR OMISSION IN THE PERFORMANCE OF WORK THAT YOU DIRECTLY CONTRACT WITH ANOTHER TO PERFORM. 8.This property WAS NOT inspected for the presence or absence of health related molds or fungi. By California Law, we are neither qualified, authorized nor licensed to inspect for health related molds. If you desire information about the presence or absence of health related molds, contact the California Department of Health Related Services. A link may be found in our web site at the following web address http://www.keytermite.com/Realtors/mold.htmi 9_Peticides are the products Key Termite and Pest Control, Inc. uses to control the target pests listed in your Inspection Report. Pesticides are indispensable tools our industry uses to control disease carrying pests and wood destroying insects, thus protecting your health and property. When properly used, pesticides pose minimal risk to humans or the environment. Your Technician is a State certified applicator whose knowledge is constantly being upgraded through regularly scheduled training sessions. If you have any questions, please call us at our toll free number: 800-548-5599 or write to: Key Termite and Pest Control, Inc., 9605 EI Camino Real, P.O. Box 969, Atascadero, CA, 93423. Key Termite and Pest Control, Inc. will not apply any compound not authorized for use in California. Please refer to the Inspection Report above for proposed materials to be used. 10.CAUTION: PESTICIDES ARE TOXIC CHEMICALS. Structural Pest Control Operators are licensed and regulated by the Structural Pest Control Board, and apply pesticides which are registered and approved for use by the California Department of Pesticide Regulation and the United States Environmental Protection Agency. Registration is granted when the State finds that based on existing scientific evidence there are no appreciable risks if proper use conditions are followed or that the risks are outweighed by the benefits. The degree of risk depends upon the degree of exposure, so exposure should be minimized. If within 24 hours following an application you experience symptoms similar to common seasonal illness, comparable to the flu, contact Key Termite and Pest Control, Inc. (800-548-5599), your physician, and/or your Poison Control Center. For the Poison Control Center, contact the following: (1-800-876-4766). FURTHER INFORMATION: Contact any of the following: Your pest control operator is Key Termite and Pest Control, Inc., (800-548-5599): for Regulatory Information call the Structural Pest Control Board (916-561-8708), or write 2005 Evergreen Street, Suite 1500, Sacramento, CA, 95815-3831. For answers to your health questions, call the County Health Department; Santa Barbara County Health Dept (805-681- 5102); San Luis Obispo County Health Dept (805-781-5544); and for application information, contact the County Agriculture Commissioner; Santa Barbara County Agricultural Commissioner (805-681-5600); San Luis Obispo County Agricultural Commissioner (805-781-5910). 11.Under the California Mechanics Lien Law any structural pest control company which contracts to do work for you, any contractor, laborer, supplier or other person who helps to improve your property, but is not paid for his or her work or supplies, has a right to enforce a claim against your property. This means that after a court hearing your property could be sold by a court officer and the proceeds of the sale used to satisfy the indebtedness. This can happen even if you have paid your structural pest control company in full if the subcontractor, laborers or suppliers remain unpaid. 12.To preserve their right to file a claim or lien against your property, certain claimants such as subcontractors or material suppliers are required to provide you with a document entitled "Preliminary Notice". Prime contractors and laborers for wages do not have to provide this notice. A Preliminary Notice is not a lien against your property. Its purpose is to notify you of persons who may have a right to file a lien against your property if they are not paid. 13.NOTICE: Invoices are due and payable within 30 days. 1.5% per month will be added to account balances beyond 30 days from the date of work completed. This is an annual percentage rate of 18%. (Interest charged pursuant to the Robinson-Patman Act). Interest amounts for balances billed to an Escrow Company as a course of a Real Estate sale will be waived up to 4 months from the date of work completed so long as the property remains in escrow. Should an Escrow transaction cancel, the full account balance is due and payable upon the Escrow cancellation date. Key Termite and Pest Control, Inc., License Number PR2103