HomeMy WebLinkAboutAgenda Report - May 7, 2008 E-14AGENDA ITEM E*01 4
AM CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter"to Bank of the West in Connection
with the Lease of Property at 229 South School Street (CA)
MEETING DATE: May 7, 2008 City Council Meeting
PREPARED BY: Citv Attorney's Office
RECOMMENDED ACTION: Authorize City Attorney to Issue "Comfort Letter" to Bank of the
West in Connectionwith the Lease of Property at 229 South School
Street.
BACKGROUND INFORMATION: The Bank of the West site potentially overlies two PCEITCE
contamination plumes, the Central Plume and the Northern Plume. However, investigation to date by the
City and other defendants has uncovered no evidence that the site contributed to the contamination.
The Rosa Meissner family, owners of the site are in negotiations to renew the lease to the Bank of the
West site. The Bank is concerned about the potential for the City to pursue recovery against them upon
their lease. This concern could be allayed through the issuance of a "Comfort Letter" which would with
certain qualifications indicate the City's determination not to pursue the Bank or their successors. Based
upon my understanding that the Council does not desire to expand the litigation and the lack of any
evidence that this site contributed to the contamination, I recommend the Council authorize me to issue a
comfort letter in the form attached hereto.
FISCAL IMPACT: NIA
FUNDING AVAILABLE: NIA
Approved:
APPROVED: /
Blair KingA ity
CITY HALL
221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6701
(209) 333-6807 FAX
May 8, 2008
Via Facsimile and Mail
CITY OF LODI
CITY ATTORNEY'S OFFICE
Blake Wettagel, Esq.
Snell & Wilmer
600 Anton Boulevard, Suite 1400
Costa Mesa, CA 92626-7689
Re: 229 S. School Street, Lodi, CA
Dear Mr. Wettagel:
D. STEPHEN SCHWABAUER
City Attorney
JANICE D. MAGDICH
Deputy City Attorney
Rosa Meissner ("Meissner") owns property located at 229 S. School Street in Lodi
situated within the Lodi Central Plume Area ("CPA"). The CPA is a groundwater plume
containing Tetrachloroethene (PCE). Meissner and her predecessors in interest are not
known to have contributed to the contamination in the CPA and the City of Lodi has
entered into settlements with all of the parties who are known to have contributed
contamination to the CPA, and has undertaken the obligation to clean up the
contaminated soil and groundwater in the CPA.
This letter will confirm that the City Council authorized me at its meeting on May 7, 2008
to affirm that the City of Lodi will not pursue environmental claims against Meissner's
tenant, Bank of the West or their successors or assigns under CERCLA, or under any
other environmental liability theory (such as nuisance) for the contamination in the CPA.
This statement of intent does not apply to liabilities that could arise if Bank of the West
or its successors or assigns actually contribute at some future date to the contamination.
If you have any questions or concerns regarding this matter, please contact me.
Sincerely,
D. STEPHEN SCHWABAUER
City Attorney
DSS/pn
cc: City Council
City Clerk