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HomeMy WebLinkAboutAgenda Report - July 18, 2018 C-11CITY OF LODI COUNCIL COMMUNICATION TM AGENDA ITEM C-11 AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter" to Owners Phillip Biddle and Bonnie Biddle, Trustees of the Phillip E. Biddle Family Trust, in Connection with the Sale of Real Property Located at 110 West Oak Street, Lodi, California MEETING DATE: July 18, 2018 PREPARED BY: City Attorney's Office RECOMMENDED ACTION Authorize City Attorney to issue "Comfort Letter" to owners Phillip Biddle and Bonnie Biddle, Trustees of the Phillip E. Biddle Family Trust, in connection with the sale of real property located at 110 West Oak Street, Lodi, California. BACKGROUND INFORMATION: The real property located at 110 West Oak Street, is situated within or near 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. Phillip Biddle and Bonnie Biddle, Trustees of the Phillip E. Biddle Family Trust are in negotiations to sell the property located at 110 West Oak Street. The prospective buyer and its lender are concerned about the potential for the City to pursue recovery against the buyer upon the purchase of the subject real property. This concern could be allayed through the issuance of a "Comfort Letter" to the owners which would, with certain qualifications, indicate the City's determination not to pursue the owners' successors or assigns 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" to Phillip Biddle and Bonnie Biddle, Trustees of the Phillip E. Biddle Family Trust in the form attached hereto. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. APPROVED: Approved Magdich ity (ttorney p en Shwa: "'r, City Manager CITY HALL 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6701 (209) 333-6807 FAX July 19, 2018 CITY OF LODI CITY ATTORNEY'S OFFICE Mr. & Mrs. Phillip E. Biddle c/o Peterson & Company 498 E. Kettleman Lane Lodi, CA 95240 Attention: Meghan Lange SUBJECT: 110 West Oak Street, Lodi, California Dear Mr. and Mrs. Biddle: JANICE D. MAGDICH City Attorney JOHN P. FUKASAWA Deputy City Attorney We have been advised that you, in your capacities as trustees of the Phillip E. Biddle Family Trust, are in the process of selling real property located at 110 W. Oak Street, Lodi, California, situated within or near the Lodi Central Plume Area and that may overlie the Northern Plume as well (collectively the "Area"). The Area is a groundwater plume containing Tetrachloroethene and/or Trichloroethylene (PCE/TCE). 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 18, 2018, to affirm that the City of Lodi will not pursue environmental claims against the successors or assigns of Phillip Biddle and/or Bonnie Biddle, as trustees of the Biddle Family Trust, 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 the successors or assigns of Phillip Biddle and/or Bonnie Biddle, as trustees of the Biddle Family Trust, actually contribute to the contamination of the Area at some future date. 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 19, 2018 CITY OF LODI CITY ATTORNEY'S OFFICE Mr. & Mrs. Phillip E. Biddle c/o Peterson & Company 498 E. Kettleman Lane Lodi, CA 95240 Attention: Meghan Lange SUBJECT: 110 West Oak Street, Lodi, California Dear Mr. and Mrs. Biddle: JANICE D. MAGDICH City Attorney JOHN P. FUKASAWA Deputy City Attorney We have been advised that you, in your capacities as trustees of the Phillip E, Biddle Family Trust, are in the process of selling real property located at 110 W. Oak Street, Lodi, California, situated within or near the Lodi Central Plume Area and that may overlie the Northern Plume as well (collectively the "Area"). The Area is a groundwater plume containing Tetrachloroethene and/or Trichloroethylene (PCE/TCE). 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 18, 2018, to affirm that the City of Lodi will not pursue environmental claims against the successors or assigns of Phillip Biddle and/or Bonnie Biddle, as trustees of the Biddle Family Trust, 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 the successors or assigns of Phillip Biddle and/or Bonnie Biddle, as trustees of the Biddle Family Trust, actually contribute to the contamination of the Area at some future date. If you have any questions or concerns regarding this matter, please contact me. Si erely, •JANICE/D. MAGDICH CityAttorney cc: City Council City Clerk