HomeMy WebLinkAboutAgenda Report - June 4, 2014 C-09AGENDA ITEM C
CITY OF LODI
. COUNCIL COMMUNICATION
• TM
AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter" to Ford Construction Company,
Inc., in Connection with the Purchase of Property Located at 300 West Pine Street
MEETING DATE: June 4, 2014 City Council Meeting
PREPARED BY: City Attorney's Office
RECOMMENDED ACTION: Authorize City Attorney to Issue "Comfort Letter" to Ford
Construction Company, Inc., in connection with the purchase of
property located at 300 West Pine Street.
BACKGROUND INFORMATION: The former City Finance Building, located at 300 West Pine Street,
potentially overlies the PCE/TCE Central contamination plume. The
site was not connected with the contamination, and the City has
entered settlement agreements with all known responsible parties.
Russell G. & Kathryn A. Munson, owners of the site are in negotiations to sell the property to Ford
Construction Company, Inc. The Buyers are concerned about the potential for the City to pursue
recovery against them upon their purchase of the site. 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 Buyers or their successors. Based upon my understanding that the Council does not
desire to expand the litigation and the settlement with the owners of the site, I recommend the Council
authorize me to issue a "Comfort Letter" in the form attached hereto.
FISCAL IMPACT: N/A
FUNDING AVAILABLE: N/A
Approved:
;M=agdich
Interim City Attorney
CITY HALL
221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(2 09) 333-6701
(209) 333-6807 FAX
June 5, 2014
CITY OF LODI
CITY ATTORNEY'S OFFICE
Mr. Nick Jones, President
Ford Construction Company, Inc.
639 E. Lockeford Street
Lodi, California 95240
SUBJECT: 300 West Pine Street, Lodi, CA
Dear Mr. Jones:
JANICE D. MAGDICH
City Attorney
Ford Construction Company, Inc., is in the process of purchasing property located at
300 West Pine Street in Lodi situated within or near the Lodi Central Plume Area (CPA).
The CPA 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 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 June 4,
2014, to affirm that the City of Lodi will not pursue environmental claims against Ford
Construction Company, 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 CPA.
This statement of intent does not apply to liabilities that could arise if Ford Construction
Company, 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.
ein—ce—rely,
\.9
ice D. Ma dich
City..Attorney
cc: City Council
City Clerk