HomeMy WebLinkAboutAgenda Report - May 7, 2014 C-19AGENDA ITEM C
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CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter" to AH Wines, Inc., of Lodi, for
25, 27 and 31 East Vine Street
MEETING DATE: May 7, 2014
PREPARED BY: Public Works Director
RECOMMENDED ACTION: Authorize City Attorney to issue "Comfort Letter" to AH Wines, Inc.,
of Lodi, for 25, 27 and 31 East Vine Street.
BACKGROUND INFORMATION: AH Wines, Inc., is in the process of purchasing land located at
25, 27, and 31 East Vine Street and plans to construct a wine
manufacturing, storage and bottling facility. The property is located
in the vicinity of the Southern PCE Plume and the lender has expressed concerns regarding liability
exposure of the property.
The "Comfort Letter" has been requested by the property owner and is provided as Attachment A.
Similar letters have been issued in the past to other property owners upon their request.
FISCAL IMPACT:
FUNDING AVAILABLE
Not applicable.
Not applicable.
ka,
F. Wally S delin
Public Works Director
FWS/pmf
Attachment
K:\W P\PROJECTS\WATER\PC E,TC E\CAH Wines_ComfortLetter.doc
City Manager
4/30/2014
CITY HALL CITY O F L O D I JANICE D. MAGDICH
221 WEST PINE STREET Interim City Attorney
P.O. BOX 3006 CITY ATTORNEY'S OFFICE
LODI, CALIFORNIA 95241-1910
(209) 333 -6701
(209) 333-6807 FAX
May 8, 2014
Mr. Richard W. Gerlach
Vice President of Finance
AH Wines, Inc.
9 West Locust Street
Lodi, CA 95240
SUBJECT: 25, 27 and 31 East Vine Street, Lodi, CA
Dear Mr. Gerlach:
AH Wines, Inc., is in the process of purchasing land located at 25, 27 and 31 East Vine
Street in Lodi situated within the Lodi Southern Plume Area (SPA). The SPA is a
groundwater plume containing Tetrachloroethene (PCE). The City of Lodi has entered
into settlements with all of the parties who are known to have contributed contamination
to the SPA and has undertaken the obligation to clean up the contaminated soil and
groundwater in the SPA.
This letter will confirm that the City Council authorized me at its meeting on May 7, 2014,
to affirm that the City of Lodi will not pursue environmental claims against AH Wines,
Inc., or its successors or assigns under the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA), or under any other environmental liability
theory (such as nuisance) for the contamination in the SPA. This statement of intent
does not apply to liabilities that could arise if AH Wines, Inc., 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,
Ja lee D. Magdich
Interim City Attorney
cc: City Council
City Clerk