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Home My WebLink AboutMINUTES - 08052008 - C.90 TO: REDEVELOPMENT AGENCY a 'sE 'A' Contra COS FROM: JOHN CULLEN, EXECUTIVE DIRECTOR nil to DATE: August 5, 2008 7a =' County SUBJECT: Hookston Station Hazardous Materials Remediation revl SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: C?a 1). AUTHORIZE the Redevelopment Director to reimburse Union Pacific Railroad Company, on behalf of the County and the Redevelopment Agency, the amount of $213,719.69 for costs incurred to date on behalf of the County and Agency in the remediation of hazardous materials in the Hookston Station area pursuant to a November 5, 1997 settlement agreement between the Union Pacific Railroad Company, the Hookston Group, the County and the County Redevelopment Agency and an October 1, 1998 Settlement Agreement between the County, the County Redevelopment Agency and the Hookston Group (Budgeted Agency Funds); and 2). AUTHORIZE the Redevelopment Director to deposit into the Helix/Union Pacific Remediation Account with Bank of America an amount not to exceed $750,000 in fulfillment of obligations set forth in the aforementioned November 5, 1997 and October 1, 1998 settlement agreements. FISCAL IMPACT: No General Fund revenues are involved. The Redevelopment Agency has budgeted funds for the current requirement. BACKGROUND- In 1992, the County using the Redevelopment Agency funds acquired a portion of a former railroad right-of-way in the Hookston Station area of Pleasant Hill. The right- of-way was being acquired to preserve the former rail corridor for a future fixed guideway/transit use-, for the Iron Horse Trail; and for a roadway connection between the Contra Costa Centre area and Monument Blvd. The Redevelopment Agency was to fund the roadway project; therefore the Agency funded the property acquisition of behalf of the County, the legal owner of the subject property. The roadway element has since been dropped from consideration as a planned roadway. The Agency has funded the construction of the Iron Horse Trail in the subject corridor and the County continues to preserve the corridor for future fixed guideway/transit. 01 CONTINUED ON ATTACHMENT: ® YES SIGNATURE: 1'/�^ / ECOMMENDATION OF COUNTY ADMINISTRATOR ❑ RECOM EN ATION OF O RD COMMITTEE APPROVE ❑ OTHER SIGNATURE(S): ACTION OF BOARD ON aIy5y APPROVED AS RECOMMENDED ® OTHER ❑ VOTE OF SUPERVISORS: I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND X UNANIMOUS (ABSENT V)0y'Ve ) ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS/AGENCY ON THE DATE SHOWN. AYES: NOES: ABSENT: ABSTAIN: ATTESTED Contact: Jim Kennedy JOHN CULLEN, CLERK OF THE BOARD OF 335-7225 SUPERVISORS/AGENCY SECRETARY orig: Redevelopment Agency cc: County Administrator By: a-� Deputy Auditor-Controller County Counsel Via Redevelopment: Union Pacific Railroad Company Hookston Group Goldfarb & Lipman G:\CDBG-REDEV\redev\Hookston Remediation\Hookston.Remediation.RDA.Order.8.5.08.doc The seller of the property, a group of individual investors (Dan & Mary Lou Helix, John Hook, Steven Purcell, and Nancy Ellicock) is referred to as the Hookston Group. The Hookston Group had acquired the right-of-way between Hookston Road and Mayhew Way as part of a reversionary transaction from the Southern Pacific Railroad Company. In the County's acquisition of the right-of-way steps were taken to protect the County from liability related to the removal of identified surface and sub-surface contaminants. Subsequent to the County's acquisition of the right-of-way chlorinated solvents (trichloroethylene) were determined to exist in the groundwater. Prior testing had not revealed their presence. Some of the contamination is suspected to have come from a prior tenant of the property during the tenure of Southern Pacific's ownership. The County/Agency joined the Hookston Group in filing suit against Southern Pacific related to the groundwater contamination. Effective in November, 1997, the County, the Agency, the Hookston Group, and Union Pacific Railroad Company (now the successor to Southern Pacific) entered into a Settlement Agreement to resolve the federal lawsuit. In general, the Settlement Agreement assigned financial responsibility for remediation to the parties as shown in Table 1 below: Table I Remediation Cost Amount/Party 1 The first $3 Million $1.5 Million — Union Pacific $1 .5 Million — Hookston Group 2 The next $1 million $500,000 — County/RDA (total $4 million) $500,000 - Union Pacific 3 The next $1 million $500,000 — County/RDA (total $5 million) $500,000 — Union Pacific 4 The next $1 million $250,000 — County/RDA (total $6 million) $250,000 - Hookston Group $500,000 - Union Pacific 5 The next $1 million $250,000 — County/RDA (total) $7 million $250,000 - Hookston Group $500,000 - Union Pacific 6 The next $1 million $250,000 — County/RDA (total $8 million) $250,000 - Hookston Group $500,000 - Union Pacific 7 The next $1 million $250,000 — County/RDA (total $9 million) $250,000 - Hookston Group $500,000 - Union Pacific 8 The next $1 million $250,000 — County/RDA (total $10 million) $250,000 - Hookston Group $500,000 - Union Pacific G:\CDBG-REDEVVedev\Hookston Remediation\Hookston.Rem ediation.RDA.Order.8.5.08.doc The parties owning the property during the time period contaminants are suspected to have been introduced to the groundwater were given the primary role in funding remediation. The County was assigned a subordinate role in funding remediation. The County, the County Redevelopment Agency, and the Hookston Group also entered into an additional October 1, 1998 Settlement Agreement to further clarify remediation funding responsibilities as outlined above. The parties have engaged in a process to develop and obtain regulatory agency approval of a remediation plan. The remediation plan has been approved by the Regional Water Quality Control Board, and is being implemented. Based on records available to County staff, as of June 28, 2008, a total of $4,209,364.96 has been expended for hazardous materials remediation related to Hookston Station. Costs incurred to date have been paid from an escrow fund jointly established and funded by contributions from Union Pacific and the Hookston Group as described in Table 1 above. That amount referenced in recommendation No. 1 will reimburse Union Pacific for an amount advanced into the remediation escrow account on behalf of the County to cover current/ongoing cost up to an aggregate of $4 million. As remediation work proceeds the County/Redevelopment Agency will have a continuing obligation to contribute an additional $750,000 (obligation line item #3 and #4 from Table 1). Recommendation No. 2 will permit staff to respond to anticipated cash calls over the next 12 months to deposit funds required by the Settlement Agreement into the joint escrow funds. The work completed to-date has permitted the parties to achieve approval from the State Water Resources Control Board, and to complete initial remediation work. The remediation work will be ongoing for the next several years. Completion of the remediation work will be determined when specified threshold levels of contamination have been achieved. Once installed, the remediation work will largely consist of monitoring and reporting, with some equipment maintenance. Current estimates suggest total remediation cost will be upwards of $10 million total. Costs paid to date are summarized in the table below: Table 2 TO AMOUNT FOR Center Technology Environmental Health $414,516.58 Human Health Risk Assessment Environmental Resource Management (ERM) $2,733,080.24 Primary Project Consultant Environmental West Exploration $42,885.30 Soil and Groundwater sampling Soil and Groundwater Severen Trent Labs $180,280.48 sampling analyses State Water Resources Control Board $359,919.41 Primary Oversight Agency Vironex $252,399.71 Sampling Other Misc. Consultants $222,604.24 Misc. Consultants Payments to local property owners $3,679.00 Vapor intrusion electrical cost reimbursement G:\CDBG-REDEV\redev\Hookston Rem ediation\Hookston.Rem ediation.RDA.Order.8.5.08.doc