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HomeMy WebLinkAboutAgenda Report - November 15, 2018 C-17 SMCITY OF LODI COUNCIL COMMUNICATION TM AGENDA ITEM C-17 AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter" to Owners John R. Rau and Craig L. Dunn, Trustees of the Melvin Dwayne Roush Revocable Trust, in Connection with the Sale of Real Property Located at 418 North Sacramento Street, Lodi, California MEETING DATE: November 15, 2018 PREPARED BY: City Attorney's Office RECOMMENDED ACTION: Authorize City Attorney to issue "Comfort Letter" to owners John R. Rau and Craig L. Dunn, Trustees of the Melvin Dwayne Roush Revocable Trust, in connection with the sale of real property located at 418 North Sacramento Street, Lodi, California. BACKGROUND INFORMATION: The real property located at 418 North Sacramento Street, is situated within or near the PCE/TCE Northern contamination plume. The site was not connected with the litigation, and the City has entered settlement agreements with all known responsible parties. John R. Rau and Craig L. Dunn, Trustees of the Melvin Dwayne Roush Revocable Trust are in negotiations to sell the property located at 418 North Sacramento Street. The prospective buyer is 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 owners of the subject real property. Therefore, City Council is requested to authorize the City Attorney to issue a "Comfort Letter" to John R. Rau and Craig L. Dunn, Trustees of the Melvin Dwayne Roush Revocable Trust in the form attached hereto. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. Attachment — "Comfort Letter" Approved: `Janice C]' Magdich City Attdrney APPROVED: �kf MIL Schwab ity Manager CITY HALL 221 WEST PINE STREET P.O. BOX 3006 LODI, CALIFORNIA 95241-1910 (209) 333-6701 (209) 333-6807 FAX November 16, 2018 CITY OF LODI CITY ATTORNEY'S OFFICE Mr. John R. Rau Mr. Craig L. Dunn c/o Katzakian Real Estate 108 West Turner Road, Suite B Lodi, CA 95240 Attention: Phil Katzakian SUBJECT: 418 North Sacramento Street, Lodi, California Dear Mr. Rau and Mr. Dunn: JANICE D. MAGDICH City Attorney JOHN P. FUKASAWA Deputy City Attorney We have been advised that you, in your capacities as trustees of the Melvin Dwayne Roush Revocable Trust, are in the process of selling real property located at 418 North Sacramento Street, Lodi, California, that overlies the Lodi Northern Plume Area (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 November 15, 2018, to affirm that the City of Lodi will not pursue environmental claims against the successors or assigns of John R. Rau and/or Craig L. Dunn, as trustees of the Melvin Dwayne Roush Revocable 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 John R. Rau and/or Craig L. Dunn, as trustees of the Melvin Dwayne Roush Revocable 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 November 16, 2018 Mr. John R. Ra Mr. Craig L. 1 nn c/o Katza , '; n Real Estate 108 W- t Turner Road, Suite B Lo+ . CA 95240 Attention: Phil Katzakian CITY OF LODI CITY ATTORNEY'S OFFICE SUBJECT: 418 North Sacramento Street, Lodi, California Dear Mr. Rau and Mr. Dunn: JANICE D. MAGDICH City Attorney JOHN P. FUKASAWA Deputy City Attorney We have been advised that you, in your capacities as trustees of the Melvin Dwayne Roush Revocable Trust, are in the process of selling real property located at 418 North Sacramento Street, Lodi, California, that overlies the Lodi Northern Plume Area (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 November 15, 2018, to affirm that the City of Lodi will not pursue environmental claims against the successors or assigns of John R. Rau and/or Craig L. Dunn, as trustees of the Melvin Dwayne Roush Revocable 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 John R. Rau and/or Craig L. Dunn, as trustees of the Melvin Dwayne Roush Revocable 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. Since JAN! ■. MAGDICH City Attorney cc: City Council City Clerk /