HomeMy WebLinkAboutAgenda Report - July 19, 2017 C-15CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA ITEM
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AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter" to Farmers & Merchants Bank of
Central California, a California Corporation, in Connection with the Purchase of
Real Property Located at 233 South School Street, Lodi, California
MEETING DATE: July 19, 2017
PREPARED BY: City Attorney's Office
RECOMMENDED ACTION:
Authorize City Attorney to Issue "Comfort Letter" to Farmers &
Merchants Bank of Central California, a California Corporation, in
connection with the purchase of real property located at 233 South
School Street, Lodi California.
BACKGROUND INFORMATION: The real property located at 233 South School Street, overlies the
PCE/TCE Central contamination plume, and may overlie the
Northern Plume as well. The site was not connected with the
litigation, and the City has entered settlement agreements with all known responsible parties.
Farmers & Merchants Bank of Central California is in negotiations to purchase the property from the
owner, Andu Inc. The buyer is concerned about the potential for the City to pursue recovery against it
upon the 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 buyer, or its
successors, to contribute toward the groundwater cleanup. The Council has not indicated a desire to
expand the litigation to the owner of the subject real property. Therefore, City Council is requested to
authorize the City Attorney to issue a "Comfort Letter" in the form attached hereto.
FISCAL IMPACT: Not applicable.
FUNDING AVAILABLE: Not applicable.
Approved:
''Janice Dr Magdich
City Attorney
APPROVED:
chwa y Manager
CITY HALL
221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6701
(209) 333-6807 FAX
July 20, 2017
Timothy M. Cronan, Esq.
Hefner Law
2150 River Plaza Drive #450
Sacramento, CA 95833-4136
CITY OF LODI
CITY ATTORNEY'S OFFICE
JANICE D. MAGDICH
City Attorney
JOHN P. FUKASAWA
Deputy City Attorney
SUBJECT: Farmers & Merchants Bank of Central California Property Purchase
233 S. School Street, Lodi, California
Dear Mr. Cronan:
Farmers & Merchants Bank of Central California, a California Corporation, is in the
process of purchasing property located at 233 S. School Street, Lodi, California, situated
within or near the Lodi Central Plume Area and may overlie the Northern Plume as well
(collectively the "Area"). The Area 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 Area and has undertaken the obligation
to clean up the contaminated soil and groundwater in the Area.
This letter will confirm that the City Council authorized me at its meeting on July 19,
2017, to affirm that the City of Lodi will not pursue environmental claims against Farmers
& Merchants Bank of Central California, a California Corporation, 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 Area. This statement of intent does not apply to
liabilities that could arise if Farmers & Merchants Bank of Central California, a California
Corporation, 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,
JANICE D. MAGDICH
City Attorney
cc: City Council
City Clerk
CITY HALL
221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6701
(209) 333-6807 FAX
July 20, 2017
Timothy M. Cronan, Esq.
Hefner Law
2150 River Plaza Drive #450
Sacramento, CA 95833-4136
CITY OF LODI
CITY ATTORNEY'S OFFICE
JANICE D. MAGDICH
City Attorney
JO1-IN P. FUKASAWA
Deputy City Attorney
SUBJECT: Farmers & Merchants Bank of Central California Property Purchase
233 S. School Street, Lodi, California
Dear Mr. Cronan:
Farmers & Merchants Bank of Central California, a California Corporation, is in the
process of purchasing property located at 233 S. School Street, Lodi, California, situated
within or near the Lodi Central Plume Area and may overlie the Northern Plume as well
(collectively the "Area"). The Area 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 Area and has undertaken the obligation
to clean up the contaminated soil and groundwater in the Area.
This letter will confirm that the City Council authorized me at its meeting on July 19,
2017, to affirm that the City of Lodi will not pursue environmental claims against
Farmers & Merchants Bank of Central California, a California Corporation, 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 Area. This statement of intent
does not apply to liabilities that could arise if Farmers & Merchants Bank of Central
California, a California Corporation, 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,
{
JANICE D. MAGDICH
City Attorney
cc: City Council
City Clerk