HomeMy WebLinkAboutAgenda Report - January 6, 2021 C-15AGENDA ITEM COM1,5
CITY OF LODI
. COUNCIL COMMUNICATION
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AGENDA TITLE: Authorize City Attorney to Issue "Comfort Letter" to Owner Teresi Enterprises LLC,
a California limited liablity corporation, in Connection with its Recent Purchase of
Real Property Located at 215 South School Street, Lodi, California
MEETING DATE: January 6, 2021
PREPARED BY: City Attorney's Office
RECOMMENDED ACTION: Authorize City Attorney to issue "Comfort Letter" to owner Teresi
Enterprises LLC, a California limited liability corporation, in
connection with its recent purchase of real property located at 215
South School Street, Lodi, California.
BACKGROUND INFORMATION: The real property located at 215 South School Street (formerly
Rocha's Mortuary), is situated within or near the Northern
contamination plume. The property was not the subject of the
litigation filed by the City in connection with PCE/TCE contamination. Title to the property is currently
held by Teresi Enterprises LLC, a California limited liablity corporation which recently purchased the
property from the Ingrum Trust.
Teresi Enterprises LLC is concerned about the potential for the City to pursure recovery against it as the
new owner of the subject real property. This concern could be allayed through the issuance of a "Comfort
Letter" to the owner which would, with certain qualifications, indicate the City's determination not to
pursue the current owner or its successors or assigns to contribute toward the PCE/TCE groundwater
cleanup. City Council is requested to authorize the City Attorney to issue a "Comfort Letter" to Teresi
Enterprises LLC, in the form attached hereto.
FISCAL IMPACT:
FUNDING AVAILABLE
JDMAst
Attachment —"Comfort Letter'
Not applicable.
Not applicable.
Approved:
Janice D. Magdich
City Attorney
APPROVED
Stephen Schwabauer, City Manager
CITY HALL
221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209)333-6701
(209) 333-6807 FAX
January 6, 2021
CITY OF LODI
CITY ATTORNEY'S OFFICE
Dean Ruiz, Esq.
Mohan, Harris, Ruiz & Rubino, LLP
3439 Brookside Rd., Suite 208
Stockton, CA 95219
SUBJECT: 215 South School Street, Lodi, California
APN 043-05-017
Dear Mr. Ruiz:
JANICE D. MAGDICH
City Attorney
KATIE O. LUCCHESI
Deputy City Attorney
We have been advised that your client, Teresi Enterprises LLC, a California limited
liability corporation has recently purchased the real property located at 215 South
School Street, Lodi, California, formerly known as Rocha's Mortuary, 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 January 6,
2021, to affirm that the City of Lodi will not pursue environmental claims against Teresi
Enterprises LLC, 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 Teresi Enterprises LLC
or its successors or assigns, 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