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Res 03-005RESOLUTION NO. 03-005 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA AUTHORIZING THE RELEASE AND SUBSTITUTION OF CERTAIN REAL PROPERTY WITH RESPECT TO 1995 REFUNDING CERTIFICATES OF PARTICIPATION (1986 CAPITAL IMPROVEMENT PROJECTS), AUTHORIZING EXECUTION AND ACCEPTANCE OF LIBRARY QUITCLAIM DEED AND APPROVING FORMS OF LEASE SUPPLEMENTS RELATED THERETO AND TO PARCEL MODIFICATIONS FOR THE 1996 CERTIFICATES OF PARTICIPATION (SHERIFF SUBSTATION PROJECT) WHEREAS, the City of Poway (the "City") is a municipal corporation duly organized and existing under the Constitution and the laws of the State of California; and WHEREAS, the Poway Redevelopment Agency (the "Agency") is a political subdivision of the State of California duly organized and existing under the laws of the State of California; and WHEREAS, (i) in connection with the issuance of the City of Poway 1995 Refunding Certificates of Participation (1986 Capital Improvement Projects) (the "1995 COPS"), the City and the Agency encumbered, among other property, that certain real property more particularly described on Exhibit A attached hereto (the "City Hall/Council Chambers Property"), and WHEREAS, the City and the Agency have determined that it is necessary and desirable to further the capital improvement projects of the City to release the City Hall/Council Chambers Property from the encumbrance of that certain Lease Agreement entered into by and between the Agency and the City dated as of July 1, 1995 (the "1995 Lease") and that certain Site Lease entered into by and between the Agency and the City dated as of July 1, 1995 (the "1995 Site Lease"), both in connection with the 1995 COPS, and to substitute therefore that certain real property more particularly described on Exhibit B attached hereto (the "Library Property") as security for the 1995 COPS, subject to the terms and conditions of the 1995 Lease and the 1995 Site Lease; and WHEREAS, in connection with the foregoing, and consistent with previous action of the Agency pursuant to Health & Safety Code Section 33445 in which the Agency approved the purchase of the Library Property and the conveyance of the same to the City to facilitate the City library program, the Agency and the City have determined that the Agency holds fee title to the Library Property in error and that it is necessary and desirable in order to correct said error that the Agency transfer fee ownership of the Library Property to the City; and WHEREAS, the City has heretofore executed and delivered the City of Poway 1996 Certificates of Participation (Sheriff Substation Project) (the "1996 COPS") and, in connection therewith, has entered into that certain Lease Agreement (the "1996 Lease"), dated as of December 1, 1996, between the Agency, as lessor, and the City, as lessee, and that certain Assignment Agreement (the "1996 Assignment Agreement") dated as of December 1, 1996, between the City, the Agency and First Trust of California, National Association, a national banking association organized and existing under the laws of the United States, as trustee (the "Trustee"); and Resolution No. 03-005 Page 2 WHEREAS, the City has recently undertaken proceedings to implement a lot line adjustment which expanded the parcel heretofore comprising the Site for all purposes of the 1996 Lease and the 1996 Assignment Agreement to include real property and improvements commonly known as the "Poway Skate Park" and other property, in addition to the previously encumbered real property and improvements commonly known as the "Poway Sheriff Substation"; and WHEREAS, the Agency and the City have determined that it is necessary and desirable to conform the Site as defined in the 1996 Lease and the 1996 Assignment Agreement to reflect the expanded parcel. NOW, THEREFORE, BE IT RESOLVED, by the City Council for the City of Poway as follows: Section 1. The release of the City Hall/Council Chambers Property, concurrently with the substitution of Library Property as collateral for the 1995 COPS under (i) the 1995 Site Lease, and (ii) the 1995 Lease Agreement be, and the same hereby is, approved. The Mayor or Deputy Mayor of the City, acting singly or together, are hereby authorized, directed and empowered to execute, acknowledge, deliver and record the Lease Supplement No. 1 (relating to the 1995 Refunding Certificates of Participation [1986 Capital Improvement Projects]) in substantially the form attached hereto as Exhibit C with such changes, insertions and omissions as may be approved by the officers executing the same, the execution of which being conclusive evidence of such approval. Section 2. The transfer of fee ownership of the Library Property from the Agency to the City is hereby approved and the City Manager, Assistant City Manager or any other proper employee of the City, acting singly, be and each of them hereby is, authorized, directed and empowered to execute acceptance of, acknowledge (as applicable), deliver and record a quitclaim deed in substantially the form attached hereto as Exhibit D and incorporated herein by this reference, with such changes, insertions and omissions as may be approved by the officers executing the same, the execution of which being conclusive evidence of such approval. Section 3. The form of the 1996 COPS Lease Supplement attached hereto as Exhibit E is hereby approved and the Mayor or Deputy Mayor or any other proper employee of the City, acting singly, be and each of them is hereby authorized, directed and empowered to execute, acknowledge, deliver and record the 1996 COPS Lease Supplement in substantially the form attached hereto as Exhibit E with such changes, insertions and omissions as may be approved by the officers executing the same, the execution of which being conclusive evidence of such approval. Section 4. The City Manager, Assistant City Manager or any other proper employee of the City, acting singly, be and each of them hereby is, authorized, directed and empowered to execute, acknowledge (as applicable), deliver and record any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated by this resolution. All prior actions taken by any proper employee of the City necessary or proper for the purpose of carrying out the transactions contemplated by this resolution are hereby ratified, affirmed and approved. Resolution No. 03-005 Page 3 Section 5. This resolution shall take effect immediately. PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway at a regular meeting this 21st day of January 2003. ATTEST: ~ Lori ~nne peoples, City Clerk n~ayor STATE OF CALIFORNIA ) ) SS COUNTY OF SAN DIEGO ) I, Lori Anne Peoples, City Clerk of the City of Poway, do hereby certify under penalty of perjury that the foregoing Resolution No. 03-005 was duly adopted by the City Council at a meeting of said City Council held on the 21st day of January 2003, and that it was so adopted by the following vote: AYES: EMERY, GOLDBY, HIGGINSON, REXFORD, CAFAGNA NOES: NONE ABSTAIN: NONE ABSENT: NONE - ' - P-e0pies, City Cle/-k City of Poway Resolution No. 03-005 Page 4 EXHIBIT A LEGAL DESCRIPTION CITY HALL AND COUNCIL CHAMBERS REAL PROPERTY IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL A: THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER, THENCE ALONG THE SOUTHERLY LINE THEREOF NORTH 89 DEGREES 09' 25" WEST, A DISTANCE OF 400.17 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING WESTERLY ALONG SAID SOUTHERLY LINE NORTH 89 DEGREES 09' 25" WEST, 269.10 FEET TO THE WESTERLY LINE OF THE EAST HALF OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID LINE NORTH 01 DEGREES 38' 15" EAST, 684.01 FEET (RECORD 683.94 FEET) TO THE NORTHERLY LINE OF THAT EASEMENT FOR COUNTY HIGHWAY GRANTED TO THE COUNTY OF SAN DIEGO PER DOCUMENT RECORDED MAY 11, 1972 AT FILE/PAGE 119095 OF OFFICIAL RECORDS; THENCE ALONG SAID NORTHERLY LINE SOUTH 89 DEGREES 09' 25" EAST, 334.36 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 00 DEGREES 50'35" WEST, 277.61 FEET; THENCE SOUTH 45 DEGREES 40' 19" WEST, 35.88 FEET; THENCE NORTH 44 DEGREES 19' 41" WEST, 34.09 FEET; THENCE SOUTH 44 DEGREES 19' 41" EAST, 165.30 FEET; THENCE SOUTH 64 DEGREES 29' 52" WEST, 56.57 FEET TO THE WESTERLY LINE OF THE EASTERLY 400.00 FEET OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID WESTERLY LINE SOUTH 01 DEGREES 54' 40" WEST, 200.00 FEET TO THE TRUE POINT OF BEGINNING. SAID PROPERTY BEING DESCRIBED AS PARCEL A IN BOUNDARY ADJUSTMENT CERTIFICATE OF COMPLIANCE BOUNDARY ADJUSTMENT NO. 02-09 (BA 02-09) RECORDED ON OCTOBER 22, 2002 AS FILE NO. 2002-0921971 OF OFFICIAL RECORDS OF SAID SAN DIEGO COUNTY. APN: 317-474-07-00; 317-474-08-00; 317-474-09-00 PARCEL B: THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: Resolution No. 03-005 Page 5 COMMENCING AT THE SOUTHEAST CORNER OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER, THENCE ALONG THE SOUTHERLY LINE THEREOF NORTH 89 DEGREES 09' 25" WEST, A DISTANCE OF 669.17 FEET TO THE WESTERLY LINE OF THE EAST HALF OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID LINE NORTH 01 DEGREE 38' 15" EAST, 684.01 FEET (RECORD 683.94 FEET) TO THE NORTHERLY LINE OF THAT EASEMENT FOR COUNTY HIGHWAY GRANTED TO THE COUNTY OF SAN DIEGO PER DOCUMENT RECORDED MAY 11, 1972 AT FILE/PAGE 119095 OF OFFICIAL RECORDS; THENCE ALONG SAID NORTHERLY LINE SOUTH 89 DEGREES 09' 25" EAST, 334.36 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING EASTERLY ALONG SAID NORTHERLY LINE SOUTH 89 DEGREES 09' 25" EAST, 86.14 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 00 DEGREES 50' 35" WEST, 234.92 FEET; THENCE SOUTH 44 DEGREES 19' 41" EAST, 162.12 FEET; THENCE SOUTH 64 DEGREES 29' 52" WEST, 247.10 FEET, SAID POINT BEING NORTH 64 DEGREES 29' 52" EAST, 56.57 FEET FROM A POINT ON THE WESTERLY LINE OF THE EASTERLY 400.00 FEET OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE NORTH 44 DEGREES 19' 41" WEST, 165.30 FEET; THENCE NORTH 00 DEGREES 01' 16" EAST, 34.09 FEET; THENCE NORTH 45 DEGREES 40' 19" EAST, 83.17 FEET; THENCE SOUTH 44 DEGREES 19' 41" EAST, 76.30 FEET; THENCE NORTH 45 DEGREES 40' 19" EAST, 35.88 FEET; THENCE NORTH 00 DEGREES 50' 35" EAST, 277.61 FEET TO THE TRUE POINT OF BEGINNING. SAID PROPERTY BEING DESCRIBED AS PARCEL B IN BOUNDARY ADJUSTMENT CERTIFICATE OF COMPLIANCE BOUNDARY ADJUSTMENT NO. 02-09 (BA 02-09) RECORDED ON OCTOBER 22, 2002 AS FILE NO. 2002-0921971 OF OFFICIAL RECORDS OF SAN DIEGO COUNTY. APN: 317-474-07-00; 317-474-08-00 AND 317-474-09-00 Resolution No. 03-005 Page 6 EXHIBIT B LEGAL DESCRIPTION LIBRARY THAT PORTION OF PARCEL 1 OF PARCEL MAP NO. 9105, 1N THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON AUGUST 30, 1979, FILE NO. 79-366067 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID PARCEL 1, THENCE NORTH 01 DEGREES 22'07" EAST, 266.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 01 DEGREES 22'07" EAST, 273.78 FEET TO THE BEGINNING OF A TANGENT 25.00 - FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY THROUGH A CENTRAL ANGLE OF 90 DEGREES 30'37", A DISTANCE OF 39.49 FEET; THENCE NORTH 89 DEGREES 08'30" EAST, 563.38 FEET TO THE TRUE POINT OF BEGINNING. THIS PARCEL IS KNOWN AS THE POWAY LIBRARY AND IS SHOWN AND DESCRIBED AS PARCEL A IN THE CITY OF POWAY BOUNDARY ADJUSTMENT BA 02-11 RECORDED JANUARY 3, 2003 AS INSTRUMENT NO. 2003-0005597 OF OFFICIAL RECORDS. Resolution No. 03-005 Page 7 EXHIBIT C RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: STRADLING, YOCCA, CARLSON & RAUTH 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660 Attention: Denise E. Hering, Esq. This document is recorded for the benefit of the City of Poway, and the recording is fee-exempt under Section 27383 of the Government Code. SUPPLEMENT NO. 1 to SITE LEASE LEASE AGREEMENT AND ASSIGNMENT AGREEMENT by and between CITY OF POWAY, as Lessee and POWAY REDEVELOPMENT AGENCY, as Lessor Dated as of January 1, 2003 Relating to $9,315,000 1995 REFUNDING CERTIFICATES OF PARTICIPATION (1986 CAPITAL IMPROVEMENT PROJECTS) Resolution No. 03-005 Page 8 SUPPLEMENT NO. 1 TO SITE LEASE, LEASE AGREEMENT AND ASSIGNMENT AGREEMENT There is hereby (i) subjected to the terms of (a) that certain Lease Agreement (the "Lease"), dated as of July 1, 1995, between the Poway Redevelopment Agency (the "Agency"), as lessor, and the City of Poway, California (the "City"), as lessee, (b) that certain Site Lease (the "Site Lease") dated as of July 1, 1995, between the Agency and the City, and (c) that certain Assignment Agreement (the "Assignment Agreement") dated as of July 1, 1995, between the City, the Agency and Bank of America National Trust and Savings Association, a national banking association organized and existing under the laws of the United States, as trustee (the "Trustee") the real property and improvements described below as the Substituted Property (the "Substituted Property"), and (ii) released from the terms of each of the Lease, the Site Lease and the Assignment Agreement the real property and improvements described below as the Released Property (the "Released Property"). For all purposes of the Lease, the Site Lease and the Assignment Agreement, from and after the date hereof, the Substituted Property shall, together with all property described in Exhibit A to the Lease less the Released Property, comprise the Site, as defined therein, and as described in Exhibit 1 hereto and incorporated herein by this reference. Substituted Property: POWAY LIBRARY THAT PORTION OF PARCEL 1 OF PARCEL MAP NO. 9105, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON AUGUST 30, 1979, FILE NO. 79-366067 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID PARCEL 1, THENCE NORTH 01 DEGREES 22'07" EAST, 266.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 01 DEGREES 22'07" EAST, 273.78 FEET TO THE BEGINNING OF A TANGENT 25.00 - FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY THROUGH A CENTRAL ANGLE OF 90 DEGREES 30'37", A DISTANCE OF 39.49 FEET; THENCE NORTH 89 DEGREES 08'30" EAST, 563.38 FEET TO THE TRUE POINT OF BEGINNING. THIS PARCEL IS KNOWN AS THE POWAY LIBRARY AND IS SHOWN AND DESCRIBED AS PARCEL A IN THE CITY OF POWAY BOUNDARY ADJUSTMENT BA 02-11 RECORDED JANUARY 3, 2003 AS INSTRUMENT NO. 2003-0005597 OF OFFICIAL RECORDS. Released Property: CITY HALL AND COUNCIL CHAMBERS REAL PROPERTY IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: Resolution No. 03-005 Page 9 PARCEL A: THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER, THENCE ALONG THE SOUTHERLY LINE THEREOF NORTH 89 DEGREES 09' 25" WEST, A DISTANCE OF 400.17 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING WESTERLY ALONG SAID SOUTHERLY LINE NORTH 89 DEGREES 09' 25" WEST, 269.10 FEET TO THE WESTERLY LINE OF THE EAST HALF OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID LINE NORTH 01 DEGREES 38' 15" EAST, 684.01 FEET (RECORD 683.94 FEET) TO THE NORTHERLY LINE OF THAT EASEMENT FOR COUNTY HIGHWAY GRANTED TO THE COUNTY OF SAN DIEGO PER DOCUMENT RECORDED MAY 11, 1972 AT FILE/PAGE 119095 OF OFFICIAL RECORDS; THENCE ALONG SAID NORTHERLY LINE SOUTH 89 DEGREES 09' 25" EAST, 334.36 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 00 DEGREES 50'35" WEST, 277.61 FEET; THENCE SOUTH 45 DEGREES 40' 19" WEST, 35.88 FEET; THENCE NORTH 44 DEGREES 19' 41" WEST, 34.09 FEET; THENCE SOUTH 44 DEGREES 19' 41" EAST, 165.30 FEET; THENCE SOUTH 64 DEGREES 29' 52" WEST, 56.57 FEET TO THE WESTERLY LINE OF THE EASTERLY 400.00 FEET OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID WESTERLY LINE SOUTH 01 DEGREES 54' 40" WEST, 200.00 FEET TO THE TRUE POINT OF BEGINNING. SAID PROPERTY BEING DESCRIBED AS PARCEL A IN BOUNDARY ADJUSTMENT CERTIFICATE OF COMPLIANCE BOUNDARY ADJUSTMENT NO. 02-09 (BA 02-09) RECORDED ON OCTOBER 22, 2002 AS FILE NO. 2002-0921971 OF OFFICIAL RECORDS OF SAID SAN DIEGO COUNTY. APN: 317-474-07-00; 317-474-08-00; 317-474-09-00 PARCEL B: THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER, THENCE ALONG THE SOUTHERLY LINE THEREOF NORTH 89 DEGREES 09' 25" WEST, A DISTANCE OF 669.17 FEET TO THE WESTERLY LINE OF THE EAST HALF OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID LINE NORTH 01 DEGREE 38' 15" EAST, 684.01 FEET (RECORD 683.94 FEET) TO THE NORTHERLY LINE OF THAT EASEMENT FOR COUNTY HIGHWAY GRANTED TO THE COUNTY OF SAN DIEGO PER DOCUMENT RECORDED MAY 11, 1972 AT FILE/PAGE 119095 OF OFFICIAL RECORDS; THENCE ALONG SAID NORTHERLY LINE SOUTH 89 DEGREES 09' 25" EAST, 334.36 FEET TO THE TRUE POINT OF BEGINNING; Resolution No. 03-005 Page 10 THENCE CONTINUING EASTERLY ALONG SAID NORTHERLY LINE SOUTH 89 DEGREES 09' 25" EAST, 86.14 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 00 DEGREES 50' 35" WEST, 234.92 FEET; THENCE SOUTH 44 DEGREES 19' 41" EAST, 162.12 FEET; THENCE SOUTH 64 DEGREES 29' 52" WEST, 247.10 FEET, SAID POINT BEING NORTH 64 DEGREES 29' 52" EAST, 56.57 FEET FROM A POINT ON THE WESTERLY LINE OF THE EASTERLY 400.00 FEET OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE NORTH 44 DEGREES 19' 41" WEST, 165.30 FEET; THENCE NORTH 00 DEGREES 01' 16" EAST, 34.09 FEET; THENCE NORTH 45 DEGREES 40' 19" EAST, 83.17 FEET; THENCE SOUTH 44 DEGREES 19' 41" EAST, 76.30 FEET; THENCE NORTH 45 DEGREES 40' 19" EAST, 35.88 FEET; THENCE NORTH 00 DEGREES 50' 35" EAST, 277.61 FEET TO THE TRUE POINT OF BEGINNING. SAID PROPERTY BEING DESCRIBED AS PARCEL B IN BOUNDARY ADJUSTMENT CERTIFICATE OF COMPLIANCE BOUNDARY ADJUSTMENT NO. 02-09 (BA 02-09) RECORDED ON OCTOBER 22, 2002 AS FILE NO. 2002-0921971 OF OFFICIAL RECORDS OF SAN DIEGO COUNTY. APN: 317-474-07-00; 317-474-08-00 AND 317-474-09-00 Certification I, the Authorized Representative of the City, hereby certify that: (1) Lease; and the useful life of the Substituted Property at least equals the remaining Term of the (2) the fair rental value of the Substituted Property is such that no reduction of Lease Payments will occur upon the delivery of the Substituted Property, and release of the Released Property, and the portion of the Lease Payments and Additional Payments attributable to the Substituted Property does not exceed the fair rental value for the Substituted Property; and (3) the Substituted Property will be used by the City for authorized public purposes, can be leased under the provisions of the Lease and the Permitted Encumbrances thereon will not materially impair the City's use of the Site; (4) by this Lease Supplement, Exhibit A to the Lease, Exhibit A to the Site Lease and Exhibit A to the Assignment Agreement are amended to reflect the addition of the Substituted Property and the deletion of the Released Property, and this Lease Supplement shall be recorded in the County of San Diego's recorder's office; (5) all of the documents required to be delivered under Section 3.6 of the Lease in connection with the provision of the Substituted Property and the release of the Released Property have been delivered. The undersigned hereby certifies that it has received copies of the documents required pursuant to Section 3.6 of the Lease; and (6) the Site now consists of the real property and improvements set forth in Exhibit 1 hereto, including without limitation the Substituted Property, and Exhibit A to each of the Lease, the Resolution No. 03-005 Page 11 Site Lease and the Assignment Agreement is hereby deemed to be deleted in its entirety and replaced by Exhibit 1 hereto. I, the Authorized Representative of the City, hereby certify that the Substituted Property will be leased to the Agency free and clear of all liens or claims of others, except for the lien of the Trust Agreement referred to in the Lease and the rights of the City under the Lease, and that the Agency will not encumber title to the Substituted Property while the Certificates and Additional Certificates remain outstanding. CITY OF POWAY, as Lessee By: Title The Undersigned Consents to the Foregoing Release and Substitution and Acknowledges Receipt of this Supplement: U.S. Bank National Association, as successor by merger to First Trust of California, National Association and successor by merger to Bank of America National Trust and Savings Association, as assignee of the Lessor under the Assignment Agreement By: Title Resolution No. 03-005 Page 12 EXHIBIT 1 DESCRIPTION OF LEASED PROPERTY FOLLOWING SUBSTITUTION OF SUBSTITUTED PROPERTY AND RELEASE OF RELEASED PROPERTY LEGAL DESCRIPTION (1995 CERTIFICATES OF PARTICIPATION) THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL A: THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 31, TOWNSHIP 13 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTH QUARTER CORNER OF SAID SECTION 31, AS SHOWN IN RECORD OF SURVEY MAP THEREOF NO. 4063 FILED IN THE OFFICE OF THE RECORDER OF SAID SAN DIEGO COUNTY OCTOBER 31, 1956; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID SECTION 31 SOUTH 89°40'30" EAST 1532.25 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING ALONG SAID NORTHERLY LINE SOUTH 89o40'30'' EAST 663.26 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 00o19'30'' WEST 564.00 FEET; THENCE NORTH 89040'30" WEST 265.00 FEET; THENCE NORTH 64059'45'' WEST 438.29 FEET; THENCE NORTH 00° 19'30" EAST 381.00 FEET TO THE TRUE POINT OF BEGINNING. PARCEL A- 1: AN EASEMENT AND RIGHT OF WAY IN, UPON, OVER, UNDER AND ACROSS THE LANDS HEREINAFTER DESCRIBEr), TO ERECT, CONSTRUCT, RECONSTRUCT, REPLACE, REPAIR, MAINTAIN AND USE A PIPELINE OR PIPELINES FOR WATER PURPOSES, INCLUDING BUT NOT LIMITED TO CONDUITS AND CABLES FOR TELEPHONE, SIGNAL, POWER AND COMMUNICATION PURPOSES, TOGETHER WITH THEIR NECESSARY FIXTURES AND APPURTENANCES, AND ALSO FOR ROAD PURPOSES AT SUCH LOCATIONS AND ELEVATIONS UPON, ALONG, OVER AND UNDER THE HEREINAFTER DESCRIBED RIGHT OF WAY AS POWAY MUNICIPAL WATER DISTRICT, ITS SUCCESSORS AND ASSIGNS, MAY FROM TIME TO TIME DEEM CONVENIENT AND NECESSARY, TOGETHER WITH THE RIGHT TO CLEAR AND KEEP CLEAR SAID RIGHT OF WAY FROM EXPLOSIVE, BUILDINGS AND STRUCTURES. NO TREES SHALL BE PLANTED OR WELLS DRILLED WITHIN THE LIMITS OF SAID RIGHT OF WAY, NOR SHALL ANY INCREASE OR DECREASE IN THE EXISTING OR FUTURE GROUND ELEVATION OF SAD RIGHT OF WAY BE PERMITTED WITHOUT THE PREVIOUS WRITTEN CONSENT OF POWAY MUNICIPAL WATER DISTRICT. THE OWNER FROM TIME TO TIME OF THE PROPERTY IN WHICH SAD RIGHT OF WAY EXISTS SHALL HAVE THE Resolution No. 03-005 Page 13 RIGHT UNDER THE LIMITATIONS HEREIN STATED TO (i) CONSTRUCT, IMPROVE, REPAIR, MAINTAIN AND DEDICATE ROADS WHICH INTERSECT AND CROSS THE RIGHT OF WAY HEREIN DESCRIBED; (ii) CONSTRUCT, RECONSTRUCT, REPLACE, REPAIR, MAINTAIN AND USE UNDERGROUND PIPELINES FOR SEWER, WATER AND OTHER UTILITY PURPOSES WHICH CROSS THE RIGHT OF WAY HEREIN DESCRIBED; PROVIDED HOWEVER, THAT IN EXERCISING ANY SUCH RIGHT, THE OWNER OF THE PROPERTY IN WHICH SAID EASEMENT LIES SHALL NOT INTERFERE WITH ANY FACILITIES OR IMPROVEMENTS WHICH MAY BE PLACED IN SAID RIGHT OF WAY BY POWAY MUNICIPAL WATER DISTRICT, ITS SUCCESSORS AND ASSIGNS. THE PROPERTY COVERED BY SAID EASEMENT IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 31, TOWNSHIP 13 SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTH QUARTER CORNER OF SAID SECTION 31 AS SHOWN ON RECORD OF SURVEY MAP THEREOF NO. 4063 FILED IN THE OFFICE OF THE RECORDER OF SAID SAN DIEGO COUNTY, OCTOBER 31, 1956; THENCE EASTERLY ALONG THE NORTHERLY LINE OF SAID SECTION 31, SOUTH 89°40~30'' EAST 1532.25 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 00019'30'' WEST 50.00 FEET; THENCE NORTH 89040'30" WEST 748.13 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 166.00 FEET; THENCE WESTERLY ALONG SAID CURVE 59.39 FEET THROUGH A CENTRAL ANGLE OF 20030'00'' THENCE TANGENT TO SAID CURVE SOUTH 69049'30'' WEST, 84.52 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY, HAVING A RADIUS OF 234.00 FEET; THENCE WESTERLY ALONG SAID CURVE 175.63 FEET THROUGH A CENTRAL ANGLE OF 43°00'15"; THENCE TANGENT TO SAID CURVE NORTH 67°10'15'' WEST 63.93 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHERLY, HAVING A RADIUS OF 166.00 FEET; THENCE WESTERLY ALONG SAID CURVE 65.20 FEET THROUGH A CENTRAL ANGLE OF 22°30'15'' THENCE TANGENT TO SAID CURVE NORTH 89040'30'' WEST 352.71 FEET; THENCE NORTH 00019'30'' EAST 50.00 FEET TO THE POINT OF BEGINNING, CONTAINING 2.04 ACRES. EXCEPTING THEREFROM ALL THAT PORTION LYING WITHIN COUNTY OF SAN DIEGO ROAD SURVEY NO. 335 AS SAID ROAD SURVEY IS FILED IN THE OFFICE OF THE SURVEYOR OF SAID SAN DIEGO COUNTY. PARCEL B: INTENTIONALLY DELETED PARCEL C: ALL THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 31, TOWNSHIP 13 SOUTH, RANGE 1 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: Resolution No. 03-005 Page 14 BEGINNING AT THE NORTH QUARTER CORNER OF SAID SECTION 31, AS SHOWN ON RECORD OF SURVEY MAP NO. 4063, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY OCTOBER 31, 1956; THENCE ALONG THE NORTHERLY LINE OF SAID SECTION 31, SOUTH 89040'30'. EAST 1532.25 FEET TO THE NORTHWEST CORNER OF LAND DESCRIBED IN DEED TO POWAY ML~ICIPAL WATER DISTRICT, RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY MAY 4, 1964 AS DOCUMENT NO. 79820, IN SERIES 5, BOOK 1964 OF OFFICIAL RECORDS, BEING THE TRUE POINT OF BEGINNING; THENCE ALONG THE WESTERLY BOUNDARY OF SAID LAND, SOUTH 0°19'30'' WEST 381.00 FEET TO AN ANGLE POINT THEREIN; THENCE LEAVING SAID BOUNDARY, NORTH 64059'45'' WEST 275.13 FEET; THENCE NORTH 0°19'30'' EAST 266.12 FEET TO SAID NORTHERLY LINE OF SECTION 31; THENCE ALONG SAID NORTHERLY LINE, SOUTH 89040'30'' EAST 250.00 FEET TO THE TRUE POINT OF BEGINNING, THE BASIS OF BEARINGS USED FOR PARCELS B AND C ABOVE IS THE NORTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 31, PER SAID RECORD OF SURVEY MAP NO. 4063, I.E., "SOUTH 89040'30'' EAST". PARCEL D: ALL THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 31, TOWNSHIP 13, SOUTH, RANGE 1 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTH QUARTER CORNER OF SAID SECTION 31, AS SHOWN ON RECORD OF SURVEY MAP NO. 4063, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY OCTOBER 31, 1956; THENCE ALONG THE NORTHERLY LINE OF SAID SECTION 31, SOUTH 89040'30'' EAST, 1282.25 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 00019'30'' WEST, 60.00 FEET THENCE NORTH 89040'30'' WEST, 498.13 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 156.00 FEET; THENCE WESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 20030'00'', A DISTANCE OF 55.82 FEET; THENCE TANGENT TO SAID CURVE SOUTH 69049'30'' WEST 84.52 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHERLY, HAVING A RADIUS OF 244.00 FEET; THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 43°00'15'' A DISTANCE OF 183.14 FEET; THENCE TANGENT TO SAID CURVE, NORTH 67°10'15'' WEST, 63.93 FEET TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHERLY HAVING A RADIUS OF 156.00 FEET; THENCE WESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 22°30'15'' A DISTANCE OF 61.27 FEET THENCE TANGENT TO SAID CURVE, NORTH 89040'30'' WEST, 352.71 FEET; THENCE NORTH 00019'30'' EAST, 60.00 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM ALL THAT PORTION LYING WITHIN COUNTY OF SAN DIEGO ROAD SURVEY NO. 335 ACCORDING TO THE MAP THEREOF ON FILE 1N THE OFFICE OF THE COUNTY ENGINEER OF SAID SAN DIEGO COUNTY. Resolution No. 03-005 Page 15 PARCEL E: THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY, APPROVED SEPTEMBER 11, 1879, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER, THENCE ALONG THE WESTERLY LINE OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER, NORTH 01021'50'' EAST, 247.90 FEET TO THE SOUTHWEST CORNER OF THE LAND DESCRIBED IN DEED TO WILLIAM M. MITCHELL, ET AL., RECORDED DECEMBER 29, 1971 AS FILE NO. 303174 OF OFFICIAL RECORDS; THENCE ALONG THE SOUTHERLY LINE OF SAID MITCHELL LAND SOUTH 89009'25'' EAST, 470.00 FEET TO THE SOUTHEAST CORNER OF SAID MITCHELL LAND, THENCE ALONG THE EASTERLY LINE OF SAID MITCHELL LAND AND ITS NORTHERLY PROLONGATION NORTH 01021'50'' EAST, 406.00 FEET TO THE SOUTHWEST CORNER OF PARCEL 71-0398-E AS DESCRIBED IN DEED TO THE COUNTY OF SAN DIEGO, RECORDED MAY 11, 1972 AS FILE NO. 119095 OF OFFICIAL RECORDS; THENCE ALONG THE SOUTH LINE OF SAID PARCEL 71-0398-E, SOUTH 89°10'14'' EAST, 200.00 FEET, MORE OR LESS, TO THE EASTERLY LINE OF THE WEST HALF OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID EASTERLY LINE, NORTH 01°30'15'' EAST 30.00 FEET TO THE NORTHERLY LINE OF THE SOUTHERLY 683.94 FEET OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID NORTHERLY LINE SOUTH 89008'30'' EAST, 662.86 FEET, MORE OR LESS, TO THE EASTERLY LINE OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER AND BEING THE TRUE POINT OF BEGINNING; THENCE ALONG SAID EASTERLY LINE SOUTH 01054'40'' WEST 283.94 FEET TO A POINT DISTANT THEREON NORTH 01054'40'' EAST 400.00 FEET FROM THE SOUTHEAST CORNER OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE SOUTHWESTERLY IN A STRAIGHT LINE TO A POINT ON THE WESTERLY LINE OF THE EASTERLY 400.00 FEET OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER DISTANT THEREON NORTH 01054'40'' EAST 200.00 FEET FROM THE SOUTHERLY LINE OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID WESTERLY LINE NORTH 01054'40'' EAST 483.94 FEET TO THE NORTHERLY LINE OF THE SOUTHERLY 683.94 FEET OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER, SAID POINT BEING NORTH 89°08'30" WEST, FROM THE TRUE POINT OF BEGINNING; THENCE SOUTH 89008'30'' EAST IN A STRAIGHT LINE TO THE TRUE POINT OF BEGINNING. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE COUNTY OF SAN DIEGO, IN DEED RECORDED MAY 29, 1980 AS FILE NO. 80-172935 OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM PARCELS 1 AND 2 DESCRIBED AS FOLLOWS: PARCEL 1: THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF Resolution No. 03-005 Page 16 SECTION 13, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER, THENCE ALONG THE SOUTHERLY LINE THEREOF NORTH 89 DEGREES 09'25" WEST, A DISTANCE OF 400.17 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING WESTERLY ALONG SAID SOUTHERLY LINE NORTH 89 DEGREES 09'25" WEST, 269.10 FEET TO THE WESTERLY LINE OF THE EAST HALF OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID LINE NORTH 01 DEGREES 38' 15" EAST, 684.01 FEET (RECORD 683.94 FEET) TO THE NORTHERLY LINE OF THAT EASEMENT FOR COUNTY HIGHWAY GRANTED TO THE COUNTY OF SAN DIEGO PER DOCUMENT RECORDED MAY 11, 1972 AT FILE/PAGE 119095 OF OFFICIAL RECORDS; THENCE ALONG SAID NORTHERLY LINE SOUTH 89 DEGREES 09'25" EAST, 334.36 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 00 DEGREES 50'35" WEST, 277.61 FEET; THENCE SOUTH 45 DEGREES 40'19" WEST, 35.88 FEET; THENCE NORTH 44 DEGREES 19'41" WEST, 76.30 FEET; THENCE SOUTH 45 DEGREES 40' 19" WEST, 83.17 FEET; THENCE SOUTH 00 DEGREES 01'16" WEST, 34.09, FEET; THENCE SOUTH 44 DEGREES 19'41" EAST, 165.30 FEET; THENCE SOUTH 64 DEGREES 29'52" WEST, 56.57 FEET TO THE WESTERLY LINE OF THE EASTERLY 400.00 FEET OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID WESTERLY LINE SOUTH 01 DEGREES 54'40" WEST, 200.00 FEET TO THE TRUE POINT OF BEGINNING. SAID PROPERTY BEING DESCRIBED AS PARCEL A IN BOUNDARY ADJUSTMENT CERTIFICATE OF COMPLIANCE BOUNDARY ADJUSTMENT NO. 02-09 (BA 02-09) RECORDED ON OCTOBER 22, 2002 AS FILE NO. 2002-0921971 OF OFFICIAL RECORDS OF SAID SAN DIEGO COUNTY. APN: 317-474-07-00; 317-474-08-00 AND 317-474-09-00 PARCEL 2: THAT PORTION OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO UNITED STATES GOVERNMENT SURVEY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER, THENCE ALONG THE SOUTHERLY LINE THEREOF NORTH 89 DEGREES 09' 25" WEST, A DISTANCE OF 669.17 FEET TO THE WESTERLY LINE OF THE EAST HALF OF SAID NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE ALONG SAID LINE NORTH 01 DEGREE 38' 15" EAST, 684.01 FEET (RECORD 683.94 FEET) TO THE NORTHERLY LINE OF THAT EASEMENT FOR COUNTY HIGHWAY GRANTED TO THE COUNTY OF SAN DIEGO PER DOCUMENT RECORDED MAY 11, 1972 AT FILE/PAGE 119095 OF OFFICIAL RECORDS; THENCE ALONG SAID NORTHERLY LINE SOUTH 89 DEGREES 09' 25" EAST, 334.36 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING EASTERLY ALONG SAID NORTHERLY LINE SOUTH 89 DEGREES 09' 25" EAST, 86.14 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 00 DEGREES 50' 35" WEST, 234.92 FEET; THENCE SOUTH 44 DEGREES 19' 41" EAST, 162.12 FEET; THENCE SOUTH 64 DEGREES 29' 52" WEST, 247.10 FEET, SAID POINT BEING NORTH 64 DEGREES 29' 52" EAST, 56.57 FEET FROM A POINT ON THE WESTERLY LINE OF THE EASTERLY 400.00 FEET OF SAID NORTHEAST Resolution No. 03-005 Page 17 QUARTER OF THE SOUTHWEST QUARTER; THENCE NORTH 44 DEGREES 19' 41" WEST, 165.30 FEET; THENCE NORTH 00 DEGREES 01' 16" EAST, 34.09 FEET; THENCE NORTH 45 DEGREES 40' 19" EAST, 83.17 FEET; THENCE SOUTH 44 DEGREES 19' 41" EAST, 76.30 FEET; THENCE NORTH 45 DEGREES 40' 19" EAST, 35.88 FEET; THENCE NORTH 00 DEGREES 50' 35" EAST, 277.61 FEET TO THE TRUE POINT OF BEGINNING. SAID PROPERTY BEING DESCRIBED AS PARCEL B IN BOUNDARY ADJUSTMENT CERTIFICATE OF COMPLIANCE BOUNDARY ADJUSTMENT NO. 02-09 (BA 02-09) RECORDED ON OCTOBER 22, 2002 AS FILE NO. 2002-0921971 OF OFFICIAL RECORDS OF SAN DIEGO COUNTY. PARCEL E- 1: AN EASEMENT IN GROSS FOR PERIODIC FIRE FIGHTING TRAINING PURPOSES, OVER THE GROUND SURFACE AND THE AIR SPACE ABOVE THE SOUTHERLY 130.00 FEET OF THE EASTERLY 40.00 FEET OF THAT PORTION OF LAND CONVEYED TO THE COUNTY OF SAN DIEGO IN DEED RECORDED MAY 29, 1980 AS FILE NO. 80-172935 OF OFFICIAL RECORDS. PARCEL F: INTENTIONALLY DELETED. PARCEL G: THAT PORTION OF THE WEST HALF OF THE NORTHWEST QUARTER OF SECTION 30, TOWNSHIP 13 SOUTH RANGE 1 WEST, SAN BERNARDINO BASE AND MERIDIAN, IN THE CITY OF POWAY, COUNT OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE UNITED STATES GOVERNMENT SURVEY THEREOF, AS DESCRIBED IN CERTIFICATE OF COMPLIANCE RECORDED MARCH 22, 1979 AS FILE NO. 79-118736 OF OFFICIAL RECORDS, AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE CENTER LINE OF ROAD SURVEY NO. 335 (ESPOLA ROAD) AND THE CENTER LINE OF ROAD SURVEY NO. 722 (OLD COACH ROAD); THENCE ALONG THE CENTER LINE OF SAID ROAD SURVEY NO. 722, NORTH 5040'37'' EAST 100.78 FEET TO THE TRUE POINT OF BEGINNING; ALSO BEING AN INTERSECTION WITH THE NORTHEASTERLY RIGHT OF WAY LINE OF THE SAN DIEGO AQUEDUCT; THENCE LONG SAID AQUEDUCT RIGHT OF WAY LINE NORTH 37°24'41'' WEST, 356.00 FEET; THENCE NORTH 25030'00'' EAST 241.29 FEET; THENCE SOUTH 64030'00'' EAST 234.54 FEET TO A POINT IN THE ARC OF A CURVE, CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 1000.00 FEET SAID CURVE BEING THE CENTER LINE OF SAID ROAD SURVEY NO. 722; THENCE SOUTHWESTERLY ALONG SAID CENTER LINE AND CURVE THROUGH A CENTRAL ANGLE OF 19049'23'' A DISTANCE OF 345.98 FEET TO THE SOUTHERLY TERMINUS THEREOF; THENCE CONTINUING ALONG SAID CENTER LINE SOUTH 5040'37'' WEST 68.34 FEET TO THE TRUE POINT OF BEGINNING. Resolution No. 03-005 Page 18 PARCEL H: ALL THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13, T.14 S., R.2 W., S.B.B.&M, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, GRANTED TO POWAY ROYAL MOBILE ESTATES BY DEED FILED AUGUST 7, 1973 AS FILE NO. 73-218887 OF OFFICIAL RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID SAN DIEGO COUNTY DESCRIBED AS FOLLOWS: BEGINNING AT A 3/4 INCH IRON PIPE MARKING THE NORTHEAST CORNER OF SAID SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13 ACCORDING TO RECORD OF SURVEY MAP NO. 4195; THENCE ALONG THE NORTHERLY LINE OF SAID SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER, NORTH 89o09'25'' WEST, 1,338.34 FEET TO THE NORTHWEST CORNER OF SAID SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER; THENCE SOUTH 00049'00'' WEST, 868.18 FEET ALONG THE WESTERLY LINE OF SAID SECTION 13; THENCE LEAVING SAID WESTERLY LINE NORTH 77040'53'' EAST, 17.97 FEET TO THE BEGINNING OF A TANGENT 227.00 FOOT RADIUS CURVE, CONCAVE NORTHWESTERLY; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 41°10'53'' A DISTANCE OF 163.16 FEET; THENCE TANGENT TO SAID CURVE NORTH 36030'00'' EAST, 20.31 FEET TO THE BEGINNING OF A TANGENT 73.00 FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 30004'00'' A DISTANCE OF 38.31 FEET THENCE TANGENT TO SAID CURVE NORTH 66°34'00'' EAST, 871.70 FEET TO THE BEGINNING OF A TANGENT 373.00 FOOT RADIUS CURVE, CONCAVE SOUTHEASTERLY; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 23018'00'' A DISTANCE OF 151.68 FEET THENCE TANGENT TO SAID CURVE NORTH 89o52'00'' EAST, 201.86 FEET TO A POINT ON THE EASTERLY LINE OF SAID SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13; THENCE NORTH 01021'50'' EAST, ALONG SAID EASTERLY LINE 340.14 FEET MORE OR LESS TO THE POINT OF BEGINNING. PARCEL I: THAT PORTION OF THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 13, TOWNSHIP 14 SOUTH, RANGE 2 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO OFFICIAL PLAT THEREOF, AS DESCRIBED IN CERTIFICATE OF COMPLIANCE RECORDED AUGUST 19, 1977 AS FILE NO. 77-340769 OF OFFICIAL RECORDS AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SOUTHWEST QUARTER, THENCE SOUTH 00o49'00'' WEST, ALONG THE WESTERLY LINE THEREOF 614.99 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 89o08'30'' EAST, 1,315.15 FEET TO A POINT IN A LINE THAT IS 30.00 FEET WESTERLY OF AND PARALLEL WITH THE EASTERLY LINE OF SAID NORTHWEST QUARTER OF THE SOUTHWEST QUARTER; THENCE SOUTH 01o21'50'' WEST, ALONG SAID PARALLEL LINE 59.93 FEET TO A POINT IN THE NORTHERLY LINE OF THAT LAND CONVEYED TO THE POWAY UNION SCHOOL DISTRICT, FILED AUGUST 14, 1959 IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY AS BOOK 7828, PAGE 296 OF OFFICIAL RECORDS; THENCE ALONG SAID NORTHERLY LINE, NORTH 89009'25'' WEST, 630.00 FEET TO A POINT IN THE WEST LINE Resolution No. 03-005 Page 19 OF SAID POWAY UNION SCHOOL LAND, THENCE SOUTH 01°21'50'' WEST, ALONG SAID WEST LINE, 653.00 FEET TO A POINT IN THE SOUTHERLY LINE OF SAID NORTHWEST QUARTER; THENCE NORTH 89009'25'' WEST ALONG SAID SOUTHERLY LINE, 678.34 FEET TO A POINT IN THE WESTERLY LINE OF SAID SECTION 13; THENCE NORTH 00°49'00'' EAST ALONG SAID WESTERLY LINE, 713.25 FEET TO THE TRUE POINT OF BEGINNING. PARCEL J: THAT PORTION OF PARCEL 1 OF PARCEL MAP NO. 9105, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON AUGUST 30, 1979, FILE NO. 79-366067 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID PARCEL 1, THENCE NORTH 01 DEGREES 22'07" EAST, 266.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 01 DEGREES 22'07" EAST, 273.78 FEET TO THE BEGINNING OF A TANGENT 25.00 - FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY THROUGH A CENTRAL ANGLE OF 90 DEGREES 30'37% A DISTANCE OF 39.49 FEET; THENCE NORTH 89 DEGREES 08'30" EAST, 563.38 FEET TO THE TRUE POINT OF BEGINNING. THIS PARCEL IS KNOWN AS THE POWAY LIBRARY AND IS SHOWN AND DESCRIBED AS PARCEL A IN THE CITY OF POWAY BOUNDARY ADJUSTMENT BA 02-11 RECORDED JANUARY 3, 2003 AS INSTRUMENT NO. 2003-0005597 OF OFFICIAL RECORDS. Resolution No. 03-005 Page 20 STATE OF CALIFORNIA COUNTY OF On ., 200_~ before me, ., Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal SIGNATURE OF NOTARY PUBLIC Resolution No. 03-005 Page 21 RECORDING REQUESTED BY: City of Poway WHEN RECORDED MAIL TO: Stradling Yocca Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, CA 92660 Attention: Denise Hering, Esq. EXHIBIT D [Space above for recorder.] This document is exempt from payment of a recording fee pursuant to Government Code Section 27383. The undersigned grantor declares: This transaction is exempt from the payment of documentary transfer tax pursuant to Revenue and Taxation Code Section 11922. Signature of Declarant or Agent Determining Tax - Firm Name QUITCLAIM DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the POWAY REDEVELOPMENT AGENCY, a political subdivision of the State of California duly organized and existing under the laws of the State of California ("Grantor"), does hereby REMISE, RELEASE, AND FOREVER QUITCLAIM to the CITY OF POWAY, a municipal corporation duly organized and existing under the Constitution and laws of the State of California, all of Grantor's right, title, and interest in and to that certain real property located in the City of Poway, County of San Diego, State of California, more particularly described on Exhibit "A" attached hereto and incorporated herein by this reference. IN WITNESS WHEREOF, Grantor has executed this Quitclaim Deed as of January 21 2003. POWAY REDEVELOPMENT AGENCY, a political subdivision of the State of California duly organized and existing under the laws of the State of California By: Its: Mail Tax Statements to: City of Poway 13325 Civic Center Drive Poway, California 92064, Attention: Finance Director Resolution No. 03-005 Page 22 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in the real property conveyed under the foregoing to the City of Poway, a municipal corporation duly organized and existing under the Constitution and laws of the State of California, is hereby accepted by the undersigned officer or agent on behalf of the City of Poway, pursuant to authority conferred by resolution of the said City adopted on January 21, 2003, and the grantee consents to recordation thereof by its duly authorized officer. Dated: January 21, 2003 CITY OF POWAY By: Its: Resolution No. 03-005 Page 23 STATE OF CALIFORNIA COUNTY OF On ,200 before me .... Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal SIGNATURE OF NOTARY PUBLIC Resolution No. 03-005 Page 24 EXHIBIT A LEGAL DESCRIPTION (LIBRARY) THAT PORTION OF PARCEL 1 OF PARCEL MAP NO. 9105, IN THE CITY OF POWAY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON AUGUST 30, 1979, FILE NO. 79-366067 OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID PARCEL 1, THENCE NORTH 01 DEGREES 22'07" EAST, 266.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 01 DEGREES 22'07" EAST, 273.78 FEET TO THE BEGINNING OF A TANGENT 25.00 - FOOT RADIUS CURVE, CONCAVE SOUTHWESTERLY THROUGH A CENTRAL ANGLE OF 90 DEGREES 30'37% A DISTANCE OF 39.49 FEET; THENCE NORTH 89 DEGREES 08'30" EAST, 563.38 FEET TO THE TRUE POINT OF BEGINNING. THIS PARCEL IS KNOWN AS THE POWAY LIBRARY AND IS SHOWN AND DESCRIBED AS PARCEL A IN THE CITY OF POWAY BOUNDARY ADJUSTMENT BA 02-11 RECORDED JANUARY 3, 2003 AS INSTRUMENT NO. 2003-0005597 OF OFFICIAL RECORDS. Resolution No. 03-005 Page 25 EXHIBIT E RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: STRADLING, YOCCA, CARLSON & RAUTH 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660 Attention: Denise E. Hering, Esq. This document is recorded for the benefit of the City of Poway, and the recording is fee-exempt under Section 27383 of the Government Code. SUPPLEMENT NO. 1 to LEASE AGREEMENT AND ASSIGNMENT AGREEMENT by and between CITY OF POWAY, as Lessee and POWAY REDEVELOPMENT AGENCY, as Lessor Dated as of January 1, 2003 Relating to $4,375,000 1996 CERTIFICATES OF PARTICIPATION (1996 SHERIFF SUBSTATION PROJECT) Resolution No. 03-005 Page 26 SUPPLEMENT NO. 1 TO LEASE AGREEMENT AND ASSIGNMENT AGREEMENT In order to conform the financing documents identified herein to reflect a lot line adjustment undertaken by the City of Poway which expanded the assessor's parcel heretofore comprising the Site for all purposes of the Lease (defined below) to include real property and improvements commonly known as the "Poway Skate Park" in addition to the previously encumbered real property and improvements commonly known as the "Poway Sheriff Substation," there is hereby (i) subjected to the terms of (a) that certain Lease Agreement (the "Lease"), dated as of December 1, 1996, between the Poway Redevelopment Agency (the "Agency"), as lessor, and the City of Poway, California (the "City"), as lessee, and (b) that certain Assignment Agreement (the "Assignment Agreemenf') dated as of December 1, 1996, between the City, the Agency and First Trust of California, National Association, a national banking association organized and existing under the laws of the United States, as trustee (the "Trustee") the real property and improvements described below as the Expanded Property (the "Expanded Property). For all purposes of the Lease and the Assignment Agreement, from and after the date hereof, the Expanded Property shall comprise the Site, as defined in the Lease. Expanded ProperS,: POWAY SHERIFF SUBSTATION AND SKATE PARK LEGAL DESCRIPTION (SHERIFF SUBSTATION & SKATE PARK) THOSE PORTIONS OF PARCEL 1 OF PARCEL MAP NO. 9105 AND PARCEL 2 OF PARCEL MAP NO. 3579 IN THE CITY OF POWAY, COUNTY OF SAN DIEGO STATE OF CALIFORNIA ACCORDING TO MAPS THEREOF FILED RESPECTIVELY IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON AUGUST 30, 1979, FILE NO. 79-366067 AND FEBRUARY 28, 1975, FILE NO. 75-047142, BOTH OF OFFICIAL RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID PARCEL 1 THENCE NORTH 01 DEGREE 22'07" EAST, 266.00 FEET; THENCE NORTH 89 DEGREES 08'30" WEST, 563.38 FEET; THENCE SOUTH 42 DEGREES 08'35" WEST, 28.67 FEET TO THE WESTERLY LINE OF SAID PARCEL 1, SAID POINT BEING ALSO THE EASTERLY LINE OF PARCEL 2 OF PARCEL MAP NO. 3579; THENCE SOUTH 01 DEGREES 07'00" WEST ALONG SAID WESTERLY LINE OF SAID PARCEL 1 AND THE EASTERLY LINE OF PARCEL 2 OF PARCEL MAP NO. 3579, A DISTANCE OF 96.57 FEET; THENCE LEAVING SAID WESTERLY LINE OF SAID PARCEL 1 SOUTH 42 DEGREES 43'38" WEST, 198.58 FEET TO THE SOUTHERLY LINE OF SAID PARCEL 2; THENCE SOUTH 89 DEGREES 0'30" EAST ALONG THE SOUTHERLY LINE OF SAID PARCEL 2, A DISTANCE OF 131.87 FEET TO THE SOUTHEAST CORNER THEREOF; THENCE CONTINUING ALONG SOUTH 89 DEGREES 08'30" EAST AND THE SOUTHERLY LINE OF SAID PARCEL 1, A DISTANCE OF 581.03 FEET TO THE POINT OF BEGINNING. Resolution No. 03-005 Page 27 THE ABOVE IS KNOWN AS NEW SHERIFF'S SUBSTATION LEGAL DESCRIPTION BEING SHOWN AS PARCEL B OF THAT BOUNDARY ADJUSTMENT PLAT BA 02-11 AS APPROVED BY THE CITY OF POWAY AND RECORDED 1N THE OFFICE OF THE COUNTY RECORDER FOR SAN DIEGO COUNTY ON JANUARY 3, 2003 AS INSTRUMENT NO. 2003- 0005597 OF OFFICIAL RECORDS. APN: 317-472-27-00 Certification I, the Authorized Representative of the City, hereby certify that: (1) Lease; and the useful life of the Expanded Property at least equals the remaining Term of the (2) the fair rental value of the Expanded Property is such that no reduction of Lease Payments will occur upon the delivery of the Expanded Property, and release of the Released Property, and the portion of the Lease Payments and Additional Payments attributable to the Expanded Property does not exceed the fair rental value for the Expanded Property; and (3) the Expanded Property will be used by the City for authorized public purposes, can be leased under the provisions of the Lease and the Permitted Encumbrances thereon will not materially impair the City's use of the Site; (4) by this Lease Supplement, Exhibit A to the Lease and Exhibit A to the Assignment Agreement are amended to reflect the addition of the Expanded Property, and this Lease Supplement shall be recorded in the County of San Diego's recorder's office; and (5) the Site now consists of the real property and improvements identified above as the Expanded Property, and Exhibit A to each of the Lease and the Assignment Agreement is hereby deemed to be deleted in its entirety and replaced by of the real property and improvements identified above as the Expanded Property. I, the Authorized Representative of the City, hereby certify that the Expanded Property will be leased to the Agency free and clear of all liens or claims of others, except for the lien of the Trust Agreement referred to in the Lease and the rights of the City under the Lease, and that the Agency will not encumber title to the Expanded Property while the Certificates and Additional Certificates remain outstanding. CITY OF POWAY, as Lessee By: Title POWAY REDEVELOPMENT AGENCY, as Lessor By: Tire Resolution No. 03-005 Page 28 The Undersigned Consents to the Foregoing expansion of the Site and Acknowledges Receipt of this Supplement: U.S. Bank, N. A., as successor by merger to First Trust of California, National Association and as assignee of the Lessor under the Assignment Agreement By: Title Resolution No. 03-005 Page 29 STATE OF CALIFORNIA COUNTY OF On ,200__ before me, , Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal SIGNATURE OF NOTARY PUBLIC