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HomeMy WebLinkAbout2011 CON Richard Illes - Amendment #3 522 West 8th St / 2020 Hoover AveNOTE TO FILE 10-25-11 IN THE MATTER OF: A Resolution of the City Council Ratifying a Second Amendment to Agreement for Exchange of Real Property and Joint Escrow Instructions, Authorizing the Mayor to Execute a Third Amendment to Said Agreement, and Authorizing the Mayor to Execute an Indemnification Agreement with the Illes Family Trust and Wells Fargo Bank Pertaining to Said Exchange of Real Property (522 West 8th Street and 2020 Hoover Avenue). Please note the following: THE FULLY EXECUTED ORIGINAL AMENDMENT FILED WITH THE OFFICE OF THE CITY CLERK DID NOT INCLUDE A SIGNATURE OF ACCEPTANCE BY ESCROW HOLDER — Stewart Title Company ORIGINATING DEPARTMENT: CDC Housing & Grants X City Attorney _ Human Resources _ City Manager _ MIS Community Svcs. _ Planning Engineering _ Police Finance Public Works Fire Note: Per George Eiser, a signature of acceptance by Escrow Holder is not crucial to the Agreement NTF NOTE TO FILE 10-25-11 IN THE MATTER OF: A Resolution of the City Council Ratifying a Second Amendment to Agreement for Exchange of Real Property and Joint Escrow Instructions, Authorizing the Mayor to Execute a Third Amendment to Said Agreement, and Authorizing the Mayor to Execute an Indemnification Agreement with the Illes Family Trust and Wells Fargo Bank Pertaining to Said Exchange of Real Property (522 West 8th Street and 2020 Hoover Avenue). Please note the following: A FULLY EXECUTED ORIGINAL INDEMNIFICATION AGREEMENT WAS NEVER FILED WITH OFFICE OF THE CITY CLERK ORIGINATING DEPARTMENT: _ CDC _ Housing & Grants X City Attorney Human Resources _ City Manager _ MIS Community Svcs. _ Planning Engineering _ Police Finance Public Works Fire NTF THIRD AMENDMENT TO AGREEMENT FOR EXCHANGE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS TO: Stewart Title Company 7675 Mission Valley Road San Diego, CA 92108-4429 (619) 692-1600 ("Escrow Holder") Escrow No.: Escrow Officer: Title Order No.: Title Officer: 288553 Rhonda Bernardini Frank Green THIS THIRD AMENDMENT TO AGREEMENT FOR EXCHANGE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS ("Agreement") is made and entered into as of this 11th day of January, 2011, by and between the CI'l'Y OF NATIONAL CITY, a municipal corporation, ("City"), and 1LLES FAMILY TRUST ("Illes"). The City and Illes are sometimes hereinafter referred to collectively as the "Parties". RECITALS A. On or about September 23, 2010, the Parties entered into an Agreement whereby they agreed to the exchange of the City Property at 522 West 8th Street, National City, for the Illes Property at 2020 Hoover Avenue, National City. B. Section 6.1.2 of the Agreement provides that the Grantee Party shall have forty- five (45) days after the Effective Date (the "Contingency Period") to review and approve or disapprove, inter alia, soils and environmental reports pertaining to the Grantor Party's Real Property. C. On or about November 9, 2010, the Parties amended the Agreement to extend the Contingency Period by forty-five (45) days, for a total of ninety (90) days. D. On or about December 23, 2010, the parties amended the Agreement to extend the Contingency Period by an additional twenty-two (22) days, for a total of one hundred -twelve (112) days. E. It is necessary, in order to allow the Parties to prepare and approve additional documents that will facilitate completion of the exchange transaction, to further extend the Contingency Period by an additional ten (10) days, for a total of one hundred twenty-two (122) days. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the Parties agree that Section 6.1.2 of the Agreement for Exchange of Real Property and Joint Escrow Instructions dated September 23, 2010. is amended to read as follows: 6.1.2. Review and Approval of Documents and Materials. The Grantor Party shall deliver to the Grantee Party within ten (10) days after the Effective Date the documents and materials set forth below which pertain to the Grantor Party's Real Property that are in the Grantor Party's possession or control or are reasonably available to the Grantor Party, and to the extent that the Grantor Party has actual knowledge thereof at no expense to the Grantor Party ("Documents and Materials"). From the Effective Date until 5 p.m. on that date which is one hundred twenty-two (122) days after the Effective Date ("Contingency Period"), the Grantee Party shall have the right to review and approve or disapprove, in its sole discretion, any or all of the Documents and Materials; provided, however, the Contingency Period and Closing Date shall be extended by one (1) day for every day that the Grantor Party is late in delivering any of the Documents and Materials or any of the Title Documents beyond the date that the Grantor Party is required hereunder to deliver the same to the Grantee Party. With the foregoing exception, each and every provision of the Agreement for Exchange of Real Property and Joint Escrow Instructions dated September 23, 2010, shall remain in full force and effect. IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to Agreement as of the day and year first written above. FLEES FAMILY TRUST CITY OF NATIONAL CITY By: By: Richard Illes, Trustee Beverly Ann Tiles, Co- rust Acceptance by Escrow Holder: 13y:---- Ron Morrison, Mayor Steward Title Company hereby acknowledges that it has received a fully executed original or original executed counterparts of the foregoing Agreement for Exchange of Real Property and Joint Escrow Instructions, and agrees to act as Escrow Holder thereunder and to be bound by and strictly perform the terms thereof as such terms apply to Escrow Holder. Dated: , 2011 Stewart Title Company a California corporation By: Between the City of National City 2 Amendment to Agreement for Exchange or and Richard Illes Real Property and Joint Escrow Instructions 6.1.2. Review and Approval of Documents and Materials. The Grantor Party shall deliver to the Grantee Party within ten (10) days after the Effective Date the documents and materials set forth below which pertain to the Grantor Party's Real Property that are in the Grantor Party's possession or control or are reasonably available to the Grantor Party, and to the extent that the Grantor Party has actual knowledge thereof at no expense to the Grantor Party ("Documents and Materials"). From the Effective Date until 5 p.m. on that date which is one hundred twenty-two (122) days after the Effective Date ("Contingency Period"), the Grantee Party shall have the right to review and approve or disapprove, in its sole discretion, any or all of the Documents and Materials; provided, however, the Contingency Period and Closing Date shall be extended by one (1) day for every day that the Grantor Party is late in delivering any of the Documents and Materials or any of the Title Documents beyond the date that the Grantor Party is required hereunder to deliver the same to the Grantee Party. With the foregoing exception, each and every provision of the Agreement for Exchange of Real Property and Joint Escrow Instructions dated September 23, 2010. shall remain in full force and effect. IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to Agreement as of the day and year first written above. ILLES FAMILY TRUST CITY OF NATIONAL CITY By: By: Richard Illes, Trustee Ron Morrison, Mayor By: Beverly Ann Illes, Co -Trustee Acceptance by Escrow Holder: Steward Title Company hereby acknowledges that it has received a fully executed original or original executed counterparts of the foregoing Agreement for Exchange of Real Property and Joint Escrow Instructions, and agrees to act as Escrow Holder thereunder and to be bound by and strictly perform the terms thereof as such terms apply to Escrow Holder. Dated: , 2011 Stewart Title Company a California corporation By: Between the City of National City 2 and Richard Illes Real Property and Joint Escrow Instructions Amendment to Agreement for Exchange of Name: Title: Its Authorized Agent Between the City of National City 3 and Richard llles Real Property and Joint Escrow Instructions Amendment to Agreement for Exchange of INDEMNIFICATION AGREEMENT This Indemnification Agreement ("Agreement") is made and entered into this As, day of February, 2011, by and between the CITY OF NATIONAL CITY, a municipal corporation ("CITY"), and the ILLES FAMILY TRUST ("ILLES"). RECITALS A. CITY and ILLES entered into an Agreement for Exchange of Real Property and Joint Escrow Instructions (the "Exchange Agreement") on or about September 23, 2010. The purpose of the Exchange Agreement was for the CITY to transfer ownership of its land and improvements commonly known as 522 West 8th Street, National City (the "City Property") to ILLES, and for ILLES to transfer ownership of its land and improvements commonly known as 2020 Hoover Avenue, National City (the "Dies Property") to the CITY. B. The Exchange Agreement was subsequently amended on or about November 9, 2010 ("First Amendment"), December 23, 2010 ("Second Amendment"), January 11, 2011 ("Third Amendment"), and January 24, 2011 ("Fourth Amendment"). C. ILLES desires to be protected from liability arising out of any known contamination on the City Property, and have requested indemnification from the CITY, and that the CITY assume responsibility for possible future remediation activities on the City Property, and the CITY has agreed to such indemnification and to assume such responsibility. NOW, THEREFORE, for good and valuable consideration, the CITY and ILLES hereby agree as follows: 1. Upon Close of Escrow, as that term is defined in the Exchange Agreement, the CITY agrees to indemnify, defend, and hold harmless ILLES from and against any claims, actions, suits, proceedings, loss, costs, damages, liability, or expenses resulting from any corrective action required by the County of San Diego to remediate contamination known to exist on 522 West 8h1 Street as of the date of this Agreement, provided that: 1) the City's indemnification obligation shall not exceed $32,000; 2) in assuming this indemnification obligation, the City shall have the right to oversee the remediation work being performed in response to any corrective action required by the County; 3) if the land use at 522 West 8th Street changes from that currently proposed by Illes, namely, the operation of a transit business, then the City's indemnification obligation shall immediately be extinguished; 4) the City shall not be liable for any decrease in the fair market value of 522 West 8th Street. 2. Geosyntec Consultants has conducted soils testing at 522 West 8'11 Street, documented in a report dated February 8, 2011, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference, and determined that the site sufficiently meets environmental standards established by state regulatory agencies so as not to require remediation activity. December 2010 1 Indunilication Agreement City of National City and Dies Family Trust 3. It is understood by the parties hereto that the CITY is legally self -insured pursuant to Section 990 of the California Government Code, and Section 3700 of the California Labor Code. 4. This Agreement may be executed in multiple counterparts, each of which ehall be deemed an original, but all of which, together, shall constitute but one and the same instrument. 5. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. 6. This Agreement shall be govemed by and construed in accordance with the laws of the State of California. 7. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent, or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. 8. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. 9. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. December 2010 -- Signature Page to Follow --- 2 Indemnification Agreement City of National City and Illes Family Trust IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY THE ILLE AMILY ' UST By: Ron Morrison, Mayor APPROVED AS TO FORM: Clia G. S'ra City Attorney By: (Signature) RiCniep _a cts- (Print) By �VVV wl�nalit., . "`_.„ (Signature) 4 1,\.v i; A-Y) Z I (e5 (Print) December 2010 3 Indemnification Agreement City of National City and Dies Family Trust Geosyntec ° consultants VIA ELECTRONIC MAIL AND US MAIL Ms. Patricia Beard Community Development Commission of National City 1243 National City Boulevard National City, CA 91950 Subject: Limited Site Characterization National City Transit Yard 522 W. 8th Street National City, California Dear Ms. Beard: 10875 Rancho Bernardo Road, Suite 200 San Diego, CA 92127 • PH 858.674.6559 FAX 858.674.6586 www.geosyntec.com 8 February 2011 As requested, Geosyntec Consultants (Geosyntec) is pleased to present the City of National City Community Development Commission (CDC) this Limited Site Characterization Report related to the National City Transit Yard (NCTY) located at 522 W. 8th Street in National City, California (the site). This report has been provided in response to your request to identify potential soil impacts in the vicinity of an existing Above -Ground Storage Tank (AST) diesel fuel system located at the NCTY. BACKGROUND Based on NCTY design plans provided by the CDC and a site visit by Geosyntec and its subcontractor, Fred North Construction (FNC) on 25 January 2010, the AST diesel fuel system consist of the following: two 8,000 gallon double -walled steel ASTs containing approximately 13,000 gallons of diesel fuel; a concrete pump island and fuel dispenser; approximately 120 linear feet (LF) of underground piping; a fiberglass leak detection sump; and a remote fill transfer pump. In July 2010, Bryant Geoenvironmental Inc. (BGI) conducted a Phase I Environmental Site Assessment on behalf of Wells Fargo Bank in anticipation of a pending property transaction. Due to the nature of the findings of the Phase I ESA, BGI was contracted to conduct a Phase II ESA at the site. Concentrations of total recoverable petroleum hydrocarbon (TRPI1) of up to 1,600 mg/kg were observed in soil samples collected from the site. Based on a telephone conversation with George Eiser, Legal Counsel for the City of National City, Geosyntec understands that Wells Fargo Bank requested the CDC perform a soil investigation along the engineers I scientists I innovators EXHIBIT "A" Ms. Patricia Beard 8 February 2011 Page 2 Geosyntec ° consultants underground piping associated with the AST diesel fuel system to further evaluate potential soil impacts associated with the existing diesel fuel system at the site. SCOPE OF WORK A surface geophysical survey was performed by a private underground utility locator in the vicinity of the proposed investigation to evaluate the presence of subsurface utilities and identify the location of the underground piping between the ASTs and the dispenser prior to commencing field activities. A geophysical anomaly (potential trench, underground piping, or buried cable) was observed to extend from the fuel dispenser south toward the electrical panel adjacent to the landscaping (Figure 1). A second geophysical anomaly was also observed to extend from the fuel dispenser to the two ASTs approximately 15-20 feet west of the landscaping. Geosyntec performed the soil investigation in the vicinity of the AST diesel fuel system in accordance with the San Diego Department of Environmental Health (DEH), Site Assessment and Mitigation (SAM) Manual. Nine (9) shallow hand auger soil borings were advanced to depths of up to 5 feet below ground surface (bgs) near the underground pipe, dispensers, sump and the planter located west of the fuel pump (Figure 1). Five of the soil borings (B-1 through B-5) were placed at approximately 20 foot intervals adjacent to the underground piping. An additional boring (B-8) was advanced in the landscaping to address potential impacts near the easternmost geophysical anomaly. Soil samples were collected from each boring at depths of approximately 3 and 5 feet bgs and analyzed for total petroleum hydrocarbon quantified as diesel (TPH-d) by EPA Method 8015 in an offsite laboratory. Soil cuttings generated during the investigation were placed in a 55-gallon drum. Each boring was backfilled with bentonite chips, hydrated with potable water, and covered with concrete to match the existing ground surface, as necessary. RESULTS Results of the soil investigation are summarized in the table below and analytical certificates are included in Attachment 1. TPH-d was detected in 5 of the 18 samples collected at concentrations ranging from 30 to 5,800 mg/kg. With the exception of the samples collected from borings B-4, B-6, and B-9 at 3 feet bgs, no samples exceeded the San Francisco Regional Water Quality Control Board (RWQCB) industrial screening level for TPH-d of 180 mg/kg. Boring ID Depth Units B-1 B-2 B-3 B-4 B-5 B-6 B-7 B-8 B-9 3 feet mg/kg ND ND ND 4,300 ND 470 ND 9.6 5,800 5 feet mg/kg ND ND ND ND ND 30 ND ND ND ND — Not Detected mg/kg — milligram per kilogram Nati onal Cirv. Rpt. F, 020811. doc engineers I scientists I innovators Ms. Patricia Beard 8 February 2011 Page 3 CONCLUSION Geosyntec consultants Based on the results of the soil investigation, localized shallow soil impacts exceeding the screening level for TPH-d in soil at industrial facilities appear to be present in the vicinity of the fuel dispenser, the sump, and the underground piping near the transfer pump. The results indicate that the impacts attenuate rapidly with depth. indicating groundwater impacts are not likely. Furthermore, based on the current and anticipated future site use (commercial), and the absence of sensitive receptors in the areas where TPH-d was detected in soil. and existence of concrete paving over most of the site, the potential for unacceptable exposures in unlikely. Furthermore, based on the localized and shallow extent of TPH-d in soil as identified during this and previous investigations conducted at the site, the need for further assessment or regulatory involvement does not appear to be warranted. Geosyntec appreciates this opportunity to provide environmental consulting services to CDC in conjunction with the NCTY. If you have any questions, please contact me at (858) 674-6559. Sincerely, Geosyntec Consultants Veryl Wittig, PG, CHG Project Manager Figure 1: Boring Locations Attachment 1: Laboratory Analytical Certificates Reference: San Francisco RWQCB, TPH screening levels from "Screening for Environmental Concerns at Sites with Contaminated Soil and Groundwater," May 2008 NationalCity_Rpt_F 0208I I doc engineers I scientists I innovators LEGEND B-2 DIRECT PUSH BORING LOCATION (BRYANT GEOENVIRONMENTAL) APPROXIMATE LOCATION OF HAND AUGER BORING - GEOPHYSICAL ANOMALY 0 0 U O U Z 0 0 CO v 0 U 0 0 Z N 0 O U 0 i 9 O U / a ABOVE GROUND STEEL PIPE 08 8-1 Or- B-2* I CONCRETE I B-3* I INTERCEPTOR I COVERS B-5* 8,000 GALLON DIESEL AST B FUEL DISPENSER B-8 LANDSCAPING ELECTRICAL PANEL REMOTE FILL TRANSFER PUMP 8,000 GALLON DIESEL AST 2.5-FOOT DIAMETER FIBERGLASS LEAK DETECTION SUMP 0 20' 40' SCALE IN FEET SOIL BORING LOCATIONS NATIONAL CITY TRANSIT YARD NATIONAL CITY, CA Geosyntec ° consultants DATE: FEBRUARY 2011 PROJECT NO. SC0558 1 FIGURE Page 1 of 12 alscience environmental „� aboratories, Inc. February 03, 2011 Shana McCarthy GeoSyntec Consultants 10875 Rancho Bernardo Road, Suite 200 San Diego, CA 92127-2116 Subject: Calscience Work Order No.: 11-01-1855 Client Reference: Nat. City Transit Yard 1 SC0558-01-01 Dear Client: Enclosed is an analytical report for the above -referenced project. The samples included in this report were received 1/28/2011 and analyzed in accordance with the attached chain -of -custody. Calscience Environmental Laboratories certifies that the test results provided in this report meet all NELAC requirements for parameters for which accreditation is required or available. Any exceptions to NELAC requirements are noted in the case narrative. The original report of subcontracted analysis, if any, is provided herein, and follows the standard Calscience data package. The results in this analytical report are limited to the samples tested and any reproduction thereof must be made in its entirety. If you have any questions regarding this report, please do not hesitate to contact the undersigned. Sincerely, Calscience Environmental Laboratories, Inc. Stephen Nowak Project Manager NELAP ID: 03220CA • DoD-ELAP ID: L10-41 • CSDLAC ID: 10109 • SCAQMD ID: 93LA0830 lila/00A 7440 Lincoln Way, Garden Grove, CA 92841-1427 . TEL:(714) 895-5494 • FAX: (714) 894-7501 Page 2 of 12 alscience tiw_nvironmental sr = aboratories, Inc. Analytical Report GeoSyntec Consultants Date Received: 10875 Rancho Bernardo Road, Suite 200 Work Order No: San Diego, CA 92127-2116 Preparation: Method: Project: Nat. City Transit Yard / SC0558-01-01 01/28/11 11-01-1855 EPA 3550B EPA 8015E (M) Page 1 of 5 Client Sample Number Lab Sample Date/Time Collected Matrix Number Date Date/Time Instrument Prepared Analyzed QC Batch ID B8-3' 11-01-1855-1-A 01/28/11 07:58 Solid GC 43 01/31/11 02/01 /11 110131 B16 23:57 Comment(s): -The sample chromatographic pattern for TPH does not match the chromatographic pattern of the specified standard of the unknown hydrocarbon(s) in the sample was based upon the specified standard. Parameter Result RL DF Qual Units TPH as Diesel 9.6 5.0 1 mg/kg Surrogates: Decachlorobiphenyl REC (%) Control Limits 109 61-145 u al Quantitation B8.5' 11-01-1855-2-A 01/28/11 Solid GC 43 01/31H1 02/02/11 110131B16 08:12 00:19 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND REC (%) 110 RL 5.0 Control Limits 61-145 DF 1 Qual Units mg/kg ual B9-3' 11-01-1855-3-A 01/28/11 Solid GC 43 01/31/11 02/02H1 110131B16 08:34 13:48 Comment(s): -The sample chromatographic pattem for TPH matches the chromatographic pattem of the specified standard but heavier hydrocarbons are also present (or were detected). Parameter Result RL DF TPH as Diesel Surrogates: Decachlorobiphenyl 5800 50 REC (%) Control Limits 128 61-145 10 ual ual Units mg/kg B9-5' 11-01-1855-4-A 01/28/11 Solid GC 43 01/31/11 02/02111 110131B16 08:46 01:05 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND REC (%) 112 RL 5.0 Control Limits 61-145 DF 1 ual Qual Units mg/kg RL- Reporting Limit , DF- DilutionFactor , Qual -Qualifiers 146. joitim, 7440 Lincoln Way, Garden Grove, CA 92841-1427 • TEL:(714) 895-5494 • FAX: (714) 894-7501 Page 3 of 12 alscience Is._,nvironmental Analytical Report aboratories, Inc. GeoSyntec Consultants Date Received: 10875 Rancho Bernardo Road, Suite 200 Work Order No: San Diego, CA 92127-2116 Preparation: Method: Project: Nat. City Transit Yard / SC0558-01-01 01/28/11 11-01-1855 EPA 3550B EPA 8015B (M) Page 2 of 5 Client Sample Number Lab Sample Number Date/Time Collected Matrix Date Date/Time Instrument Prepared Analyzed QC Batch ID B7-3' 11-01-1855-5-A 01/28/11 Solid GC 43 01/31/11 02/02111 110131B16 09:10 01:28 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND REC (%) Control Limits 111 RL 5.0 61-145 DF 1 Qual Qual Units mg/kg B7-5' 11-01-1855-6-A 01/28/11 09:20 Solid GC 43 01/31/11 02/02/11 110131816 01:51 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND REC (%) 112 RL 5.0 Control Limits 61-145 DF 1 Qual Qual Units mg/kg B5-3' 11-01-1855-7-A 01/28/11 Solid GC 43 01/31/11 02/02/11 110131B16 09:37 02:17 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND RL 5.0 REC (%) Control Limits 114 61-145 DF 1 Qual Qual Units mg/kg B5-5' 11-01-1855-8-A 01/28111 Solid GC 43 01/31/11 02/02/11 1101311316 02:42 09:50 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND RL 5.0 REC (%) Control Limits 113 61-145 DF 1 ual ual Units mg/kg RL - Reporting Limit DF - Dilution Factor Qual - Qualifiers 7440 Lincoln Way, Garden Grove, CA 92841-1427 • TEL:(714) 895-5494 • FAX: (714) 894-7501 Page 4 of 12 alscience nvironmental = aboratories, Inc. Analytical Report GeoSyntec Consultants Date Received: 10875 Rancho Bernardo Road, Suite 200 Work Order No: San Diego, CA 92127-2116 Preparation: Method: Project: Nat. City Transit Yard / SC0558-01-01 01/28/11 11-01-1855 EPA 3550E EPA 8015B (M) Page 3 of 5 Client Sample Number Lab Sample Number Date/Time Collected Matrix Date Date/Time Instrument Prepared Analyzed QC Batch ID B4-3' 11-01.1855-0-A 01/28/11 Solid GC 43 01/31/11 02/02/11 110131B16 10:14 03:31 Comment(s): TPH as Diesel Surrogates: Decachlorobiphenyl -The sample chromatographic pattern for TPH does not match the chromatographic pattern of the specified standard of the unknown hydrocarbon(s) in the sample was based upon the specified standard. Parameter Result RL DF Qual Units mg/kg 4300 200 40 REC (%) Control Limits 113 61-145 Qual Quantitation B4-5' 11-01-1855-10-A 01/28/11 Solid GC43 01/31/11 02/0211 110131B16 10:35 03:56 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl B3-0' Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND REC (%) Control Limits 111 RL 5.0 61-145 DF 1 Qual Qual Units mg/kg 11-01-1855-11-A 01/28/11 10:48 Solid GC 43 01/31/11 02/02/11 110131 B16 04:21 Result ND REC (%) 105 RL 5.0 Control Limits 61-145 DF 1 ual ual Units mg/kg B3-5' 11-01-1855-12-A 01/28/11 11:06 Solid GC 43 01/31/11 02/02/11 1101311316 04:46 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND RL 5.0 REC (%) Control Limits 112 61-145 DF 1 ual Qual Units mg/kg RL - Reporting Limit , DF - Dilution Factor Qual - Qualifiers 7440 Lincoln Way, Garden Grove, CA 92841-1427 • TEL:(714) 895-5494 • FAX: (714) 894-7501 Page 5 of 12 r alscience Hamm nvironmental Analytical Report a aboratories, Inc. GeoSyntec Consultants Date Received: 10875 Rancho Bernardo Road, Suite 200 Work Order No: San Diego, CA 92127-2116 Preparation: Method: Project: Nat. City Transit Yard / SC0558-01-01 01/28/11 11-01-1855 EPA 3550B EPA 8015B (M) Page 4 of 5 Client Sample Number Lab Sample Number Date/Time Collected Matrix Date Date/Time Instrument Prepared Analyzed QC Batch ID B23' 11-01-1855-13-A 01/28/11 11:15 Solid GC 43 01/31/11 02/02/11 110131B16 05:11 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND RL 5.0 REC (%) Control Limits 108 61-145 DF 1 Qual ual Units mg/kg B2-5' 11-01-1855.14-A 01/28/11 11:22 Solid GC 43 01/31/11 02/02111 110131B16 05:35 Parameter TPH as Diesel Surrogates: Decachlorobiphenyt Result ND REC (%) Control Limits 114 RL 5.0 61-145 DF 1 Qual Qual Units mg/kg B13' 11-01-1855-15-A 01/28/11 11:42 Solid GC 43 01/31/11 02/02/11 110131B16 10:47 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND REC (%) 111 RL 5.0 Control Limits 61-145 DF 1 Qual, Units mg/kg Qual B1-5' 11-01-1855-16-A 01/28/11 11:51 Solid GC 43 01/31/11 02/02/11 1101311316 11:07 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND REC (%) 109 RL 5.0 Control Limits 61-145 DF 1 ual ual Units mg/kg RL - Reporting Limit , DF - Dilution Factor , Qual-Qualifiers filarkWk 7440 Lincoln Way, Garden Grove, CA 92841-1427 • TEL:(714) 895-5494 • FAX: (714) 894-7501 Page 6 of 12 qir alscience � _ nvironmental :l. aboratories, Inc. Analytical Report GeoSyntec Consultants 10875 Rancho Bernardo Road, Suite 200 San Diego, CA 92127-2116 Project: Nat. City Transit Yard / SC0558-01-01 Date Received: Work Order No: Preparation: Method: 01/28/11 11-01-1855 EPA 3550B EPA 8015B (M) Page 5 of 5 Client Sample Number Lab Sample Date/Time Collected Matrix Number Date Date/Time Instrument Prepared Analyzed QC Batch ID B6-3' 11-01-1855-17-A 01/28/11 12:05 Solid GC 43 01/31,11 02/02/11 110131B16 11:27 Comment(s): Parameter TPH as Diesel Surrogates: Decachlorobiphenyl -The sample chromatographic pattem for TPH does not match the chromatographic pattem of the specified standard. Quantitation of the unknown hydrocarbon(s) in the sample was based upon the specified standard. Result RL DF Qual Units 470 20 4 REC (%) 111 Control Limits 61-145 Qual mg/kg B6-5' 11-01-1855-18-A 01/28/11 12:12 Solid GC 43 01/31/11 02/02h 1 110131 B16 12:44 Comment(s): Parameter TPH as Diesel Surrogates: Decachlorobiphenyl -The sample chromatographic pattern for TPH does not match the chromatographic pattern of the specified standard. Quantitation of the unknown hydrocarbon(s) in the sample was based upon the specified standard. Result RL DF ual 30 5.0 1 REC (%) Control Limits 106 61-145 ual Units mg/kg Method Blank 099-12-2753,853 N/A Solid GC43 01/31/11 02/01/11 110131B16 21:16 Parameter TPH as Diesel Surrogates: Decachlorobiphenyl Result ND RL 5.0 REC (%) Control Limits 105 61-145 DF 1 Qual Qual Units mg/kg iikRL - Reporting Limit , athi4vm DF - Dilution Factor , Qual -Qualifiers 7440 Lincoln Way, Garden Grove, CA 92841-1427 • TEL:(714) 895-5494 • FAX: (714) 894-7501 Page 7 of 12 alscience vim nvironmental aboratories, Inc. Quality Control - Spike/Spike Duplicate GeoSyntec Consultants Date Received: 10875 Rancho Bernardo Road, Suite 200 Work Order No: San Diego, CA 92127-2116 Preparation: Method: Project Nat. City Transit Yard / SC0558-01-01 01/28/11 11-01-1855 EPA 3550B EPA 8015E (M) Quality Control Sample ID Matrix Instrument Date Prepared Date Analyzed MS/MSD Batch Number 11-01-18534 Solid GC 43 01/31/11 02/01111 110131S16 Parameter TPH as Diesel MS %REC MSD %REC %REC CL RPD RPD CL Qualifiers 93 97 64-130 4 0-15 RPD - Relative Percent Difference , CL - Control Limit 6,446t."4 7440 Lincoln Way, Garden Grove, CA 92841-1427 . TEL:(714) 895-5494 • FAX: (714) 894-7501 Page 8 of 12 alscience rim nvironmental Quality Control - LCS/LCS Duplicate aboratories, Inc. GeoSyntec Consultants Date Received: 10875 Rancho Bernardo Road, Suite 200 Work Order No: San Diego, CA 92127-2116 Preparation: Method: Project: Nat. City Transit Yard / SC0558-01-01 N/A 11-01-1855 EPA 3550B EPA 8015B (M) Quality Control Sample ID 099-12-2753,853 Solid GC 43 01/31/11 02/02/11 110131B16 Parameter TPH as Diesel Matrix Instrument Date Prepared Date Analyzed LCS/LCSD Batch Number LCS %REC LCSD %REC %REC CL RPD RPD CL Qualifiers 88 94 75-123 6 0-12 RPD - Relative Percent Difference , CL - Control Limit 7440 Lincoln Way, Garden Grove, CA 92841-1427 . TEL:(714) 895-5494 • FAX: (714) 894-7501 Page 9 of 12 alscience _nvironmenta/ Glossary of Terms and Qualifiers �r aboratories, Inc. Work Order Number: 11-01-1855 Qualifier Definition * See applicable analysis comment. Less than the indicated value. Greater than the indicated value. 1 Surrogate compound recovery was out of control due to a required sample dilution, therefore, the sample data was reported without further clarification. 2 Surrogate compound recovery was out of control due to matrix interference. The associated method blank surrogate spike compound was in control and, therefore, the sample data was reported without further clarification. 3 Recovery of the Matrix Spike (MS) or Matrix Spike Duplicate (MSD) compound was out of control due to matrix interference. The associated LCS and/or LCSD was in control and, therefore, the sample data was reported without further clarification. 4 The MS/MSD RPD was out of control due to matrix interference. The LCS/LCSD RPD was in control and, therefore, the sample data was reported without further clarification. 5 The PDS/PDSD or PES/PESD associated with this batch of samples was out of control due to a matrix interference effect. The associated batch LCS/LCSD was in control and, hence, the associated sample data was reported without further clarification. B Analyte was present in the associated method blank. BU Sample analyzed after holding time expired. E Concentration exceeds the calibration range. ET Sample was extracted past end of recommended max. holding time. J Analyte was detected at a concentration below the reporting limit and above the laboratory method detection limit. Reported value is estimated. ME LCS Recovery Percentage is within LCS ME Control Limit range. ND Parameter not detected at the indicated reporting limit. Q Spike recovery and RPD control limits do not apply resulting from the parameter concentration in the sample exceeding the spike concentration by a factor of four or greater. X % Recovery and/or RPD out -of -range. Z Analyte presence was not confirmed by second column or GC/MS analysis. Solid - Unless otherwise indicated, solid sample data is reported on a wet weight basis, not corrected for % moisture. All QC results are reported on a wet weight basis. 7440 Lincoln Way, Garden Grove, CA 92841-1427 • TEL:(714) 895-5494 • FAX: (714) 894-7501 /ST'S- Document Number: 3256 Analysis Request and Chain of Custody Record Prof ct Name • c • T.Rrts:f Va+O( Proo(ect Number S e 0Sri? -0I - O I Required Analyses Page_ of �\ amgars mes Project Contact t�k �� a ha G 4i! �f by y ;gro :s by 8270 LabR ratory Name C a ( (ifwc Lab Contact SyJL 1 awa IC White copy: to accompany samples Lab Address 40 1''vtcoh W2J Lab P one 1-1`I -ef39-6.s�--6 cs t tia `+ Yellow copy: field copy Lt RU a G-txi C�i- C rier aybill No. T Bottle Type and Volume/Preservative Lab Use ///////// Only Sample Condition Sample Name Date Time Type Number of Containers Comments of Bottles ' gg'3' ln1i1 OCs9 sq.-1 G pi-s1 1�ZrIIf Oa s.:1 L t se: � � B��5 f ] 2d IIOS3 p?'I,& 6e: 1 1 - }-3 I'2t it 03ro sG:I 1 51-5 s 1 nit, 09ao Co; I L LI 5- 3 1 t tt or(3� so: I I gs--s ' l ze��t Ogsv so: 1 I- 3' 1 2� tt toll{ Slr j 69-g I zrttl tow se: f3 3 I !zap, 111-19 £.•' I l 31-5' {p_$[ir Itati .50: ( I Special instructions: 71L �t/tr3 t v- ., if l_�l T n-around Time: Normal • Rush: 1. Relinquished by (Signiture/Affiliation) #7.47 Date Z , r + r I td5ri K C_ Time Ko 1. Received by (Signiture/Affiliation) Date D t Time } l2 )- 2. Relinquished by (Signiture/Affiliation) Date Q 1 ( Zg_ 11 Time l $0 2. Received cy Date of / cs \ 2L (SigniturelAffiliation) ems. 2 Time (fs'-�Z 3. Relinquished . 4 y Date (Signiture/Affiliation) Time 3. Received by Date _ < (Signiture/Affiliation) Time - eosyntec consultants ancho Bernardo Road, Suite 200, San Diego, CA 92127 (858) 674-6559 Fax: (858) 674-6586 / Analysis Request and Chain of C Document Number: 3254 samples copy $tS • •y Record Proje Nam _ Irau4Ya.»i :� Project Number St o c5e ,' of — of Required Analyses Page f lers" m am as S ..4ao6,t S Project Contact 51 a ux Mt 6.ft47 VOCs by Metals SVOCs by 8270 White copy: to accompany Yellow copy: field Labor,�toryNarne LAC.c� Lab ganttaact � )J 4,2 Lab Address 'Wit L.u6.r1, WAy (7a,cleocwe IC* Lab Phone L� �i 7/9- -13yt �j�� m dW t Name Date Time Sample Type Bottle Type and VolumeJPreservative W/////// Comments Lab Use Only ///7 Condition of Bottles Number of Containers L.-Sample — 3 { l�'2r�111 MS— So: (1 s k/701tt tlaa_ Se:l l - fit- 3' t zb(,r It�la So- 1 ' t- .5' 1 atitr r t So: t t 0e - 3' 1(21ilt, raps s.:( l r13 Sr i(28J,r 42a+ <4=1 Special Instructions: lT rya ( 9 Di (_. T -around Time: ormal • Rush: 1. Relinquished by (Signature/Affiliation) ` Date t (�8'/rt ! �. t il.C-- Time a 1. Received by tsigniture/Affiliation) ) Date Time 4l 12 2. Relinquished b (Signature/Affiliation) �`J� Date 01 28 tt _ Time i g'O� 2. Received by (Signiture/Affiliation) ��� Date ��`' Time ot�s/, / ti t 8�Z �' 3. Relinquishe by Date (Signiture/Affiliation) Time 3. Received by Date (Sign iture/Affiliation) Time t eoSynteC r 10875 Rancho Bernardo Road, Suite 200, San Diego, CA 92127 (858) 674-6559 Fax: (858) 674-6586 IV consultants Page 12 of 12 WORK ORDER #: 11-01- Z ®E E SAMPLE RECEIPT FORM CLIENT: a.{ QSyn'-(' Cooler I of 1 DATE: 0 / /Q8/11 TEMPERATURE: Thermometer ID: SC1 (Criteria: 0.0°C — 6.0°C, not frozen) Temperature • °C + 0.5 °C (CF) = F . °C p'Btank ❑ Sample ❑ Sample(s) outside temperature criteria (PM/APM contacted by: ). ❑ Sample(s) outside temperature criteria but received on ice/chilled on same day of sampling. 0 Received at ambient temperature, placed on ice for transport by Courier. Ambient Temperature: ❑ Air 0 Filter Initial: CUSTODY SEALS INTACT: O Cooler 0 O Sample ❑ 0 No (Not Intact) 0 No (Not Intact) E Not Present Not Present ❑ N/A Initial: Initial: SAMPLE CONDITION: Chain -Of -Custody (COC) document(s) received with samples COC document(s) received complete O Collection date/time, matrix, and/or # of containers logged in based on sample labels ❑ No analysis requested. ❑ Not relinquished. ❑ No date/time relinquished. Sampler's name indicated on COC ❑ ❑ Sample container label(s) consistent with COC ❑ ❑ Sample container(s) intact and good condition ❑ ❑ Proper containers and sufficient volume for analyses requested l7 0 ❑ Analyses received within holding time �j ❑ ❑ pH / Residual Chlorine / Dissolved Sulfide received within 24 hours ❑ ❑ Proper preservation noted on COC or sample container ❑ ❑ ❑ Unpreserved vials received for Volatiles analysis Volatile analysis container(s) free of headspace ❑ ❑ Tedlar bag(s) free of condensation ❑ ❑ CONTAINER TYPE: Solid: ❑4ozCGJ .7rgozCGJ 016ozCGJ ❑Sleeve ( ) ❑EnCores® ❑TerraCores° ❑ Water: ❑VOA ❑VOAh ❑VOAna2 0125AGB 0125AGBh 0125AGBp 01AGB 101AGBna2 71AGBs 10500AGB 0500AGJ 0500AGJs 0250AGB ❑250CGB ❑250CGBs ❑ 1 PB 0500PB 0500PBna 0250PB 0250PBn ❑125PB 10125PBznna 0100PJ 0100PJna2 ❑ ❑ ❑ Yes No N/A Air: OTedlar® DSumma® Other: ❑ Trip Blank Lot#: Labeled/Checked byf - Container: C: Clear A: Amber P: Plastic G: Glass J: Jar ,8: Bottle Z: Ziploc/Resealable Bag E: Envelope Reviewed by: JI/UJt Preservative: h: HCL n: HNO3 na3:Na¢S203 na: NaOH p: H3PO4 s: H2SO4 znna: ZnAc2+NaOH f: Field -filtered Scanned by: SOP T100 j90 (09/13!10 I RESOLUTION 2011 — 12 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING A SECOND AMENDMENT TO AGREEMENT FOR EXCHANGE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS, AUTHORIZING THE MAYOR TO EXECUTE A THIRD AMENDMENT TO SAID AGREEMENT, AND AUTHORIZING THE MAYOR TO EXECUTE AN INDEMNIFICATION AGREEMENT WITH THE ILLES FAMILY TRUST AND WELLS FARGO BANK PERTAINING TO SAID EXCHANGE OF REAL PROPERTY (522 WEST 8TH STREET AND 2020 HOOVER AVENUE) WHEREAS, on September 23, 2010, the City and the Illes Family Trust ('files") entered into an Agreement for Exchange of Real Property and Joint Escrow Instructions (the "Agreement") whereby the parties agreed to an exchange of the City -owned property at 522 West 8th Street for the IIles-owned property at 2020 Hoover Avenue; and WHEREAS, Section 6.1.2 of the Agreement provides that a party shall have forty-five (45) days after the Agreement is executed (the "Contingency Period") to review and approve or disapprove, among other items, soils and environmental reports pertaining to the other party's property; and WHEREAS, on or about November 9, 2010, the parties entered into a First Amendment to the Agreement, extending the Contingency Period by 45 days to December 23, 2010; and WHEREAS, it was necessary, in order to provide adequate time for preparation and approval of an Indemnification Agreement between the parties and Wells Fargo Bank (the "Bank"), which will hold a deed of trust on the property at 522 West 8th Street, for the parties to enter into a Second Amendment to the Agreement on or about December 23, 2010, extending the Contingency Period for 22 days, until January 14, 2011; said Second Amendment was executed by City staff and should appropriately be ratified by the City Council; and WHEREAS, it is necessary in order to provide additional time for preparation and approval of the Indemnification Agreement, for the parties to enter into a Third Amendment to the Agreement to extend the Contingency Period for 10 additional days, until January 24, 2011; and WHEREAS, the proposed Indemnification Agreement shall provide that the City will indemnify, defend, and hold harmless IIles and the Bank from all liability, loss, or damages resulting from any corrective action ordered by the County of San Diego for the property at 522 West 8th Street; and WHEREAS, the Indemnification Agreement shall provide that the City will reimburse IIles for the cost of any corrective action required by the County that is within the scope of the Geosyntec proposal, and that said reimbursement obligation is limited to $32,000, or in the alternative, that the City will reimburse IIles for up to $10,000 for the cost of IIles removing contaminated soil from 522 West 8th Street according to the February 3, 2010 Geosyntec proposal. Resolution No. 2011 —12 Page 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby ratifies a Second Amendment to Agreement for Exchange of Real Property and Joint Escrow Instructions to amend Section 6.1.2 of the Agreement to extend the Contingency Period for 22 days, for a total of 112 days. Said Second Amendment to Agreement is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor is authorized to execute a Third Amendment to Agreement to extend the Contingency Period by an additional 10 days, until January 24, 2011. BE IT FURTHER RESOLVED that the Mayor is authorized to execute an Indemnification Agreement by and between the City, the Illes Family Trust, and Wells Fargo Bank. Said Indemnification Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 11th day of January, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, "City Clerk A C OVED AS O FORM: MA% G Silva City Attorney Passed and adopted by the Council of the City of National City, California, on January 11, 2011 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California City erk of the /litof National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2011-12 of the City of National City, California, passed and adopted by the Council of said City on January 11, 2011. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT "'SETING DATE: January 11, 2011 AGENDA ITEM NO.19 ITEM TITLE: Resolution of the City Council of the City of National City Ratifying a Second Amendment to Agreement for Exchange of Real Property and Joint Escrow Instructions, and authorizing the Mayor to execute an Indemnification Agreement with the Illes Family Trust and Wells Fargo Bank pertaining to said Exchange of Real Property (522 West 8th Street and 2020 Hoover Avenue) PREPARED BY: George H. Eiser, III P4 DEPARTMENT: City Attorney PHONE: Ext. 4221 EXPLANATION: APPROVED BY: Please see attached memorandum. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt proposed resolution. BOARD / COMMISSION RECOMMENDATION: N/A rTACHMENTS: Memorandum Proposed resolution Second Amendment to Agreement for Exchange of Real Property and Joint Escrow Instructions Indemnification Agreement Mayor Ron Morrison Council Members Alejandra Sotelo-Solis Louis Natividad Mona Rios Rosalie Zarate Office of the City Attorney City Attorney Claudia Gacitua Silva Legal Counsel George H. Eiser, III Senior Assistant City Attorney Jodi L. Doucette TO: Mayor and City Council DATE: January 3, 2011 FROM: George H. Eiser, III, Legal Counsel SUBJECT: Agreement for Exchange of City -Owned Property at 522 West 8th Street for Property Owned by Illes Family Trust at 2020 Hoover Avenue; Second Amendment to Agreement; Indemnification Agreement On September 23, 2010, the City and the Illes Family Trust ("Illes") entered into an Agreement for Exchange of Real Property and Joint Escrow Instructions (the "Agreement") whereby the parties agreed to an exchange of the City -owned property at 522 West 8th Street for the Illes- owned property at 2020 Hoover Avenue. Section 6.1.2 of that Agreement provides that either party to the Agreement shall have forty-five (45) days after the Agreement is executed (the "Contingency Period") to review and approve or disapprove, among other items, soils and environmental reports pertaining to the other party's property. On November 9, 2010, the City Council approved a First Amendment for Exchange of Real Property (the "First Amendment"), extending the Contingency Period for an additional 45 days to December 23, 2010, to provide adequate time for certain soils tests to be performed on the City Property, and for the parties to review and evaluate any reports based upon these soils tests. Wells Fargo Bank (the "Bank") is the beneficiary of a deed of trust on the Ines property. Concurrently with the exchange of the City and Illes properties, the Bank intends to transfer its deed of trust to the City property. In order to be protected from any known contamination of the City property, the Bank and Ines have requested indemnification from the City, and that the City assume responsibility for possible future remediation activities on the City property. In order to negotiate the terms of an indemnification agreement and allow time for the City Council to consider approval, it was necessary to extend the Contingency Period set forth in the First Amendment to January 14, 2011. Therefore, a Second Amendment to Agreement for Exchange of Real Property (the "Second Amendment") was approved by the staff (in the absence of a City Council meeting between December 23 and January 11) on December 22. The proposed resolution would ratify the Second Amendment. A copy of the Second Amendment is attached to the agenda. The proposed resolution, if approved, would also authorize execution of an Indemnification Agreement between the City, Illes, and the Bank. According to the terms of the Indemnification Agreement, the City would indemnity, defend, and hold harmless Illes and the Bank from any liability, loss, or damages resulting from any corrective action required by the County of San Diego to remediate contamination currently known to exist on the City property. Further, the 1243 National City Boulevard; National City, California 91950-4301 Tel.: (619) 336.4220 Fax: (619) 336.4327 City would assume responsibility to reimburse Illes for the cost of such corrective action. Lastly, the Indemnification Agreement contains three qualifications to the City's obligations to provide indemnity and assume responsibility for the cost of the possible corrective action: 1) The corrective action giving rise to the City's reimbursement obligation shall be within the scope of the remediation activities identified in the "Proposal for Environmental Consulting Services" dated February 3, 2010, prepared by the City's consultant, Geosyntec Consultants. That proposal essentially provides a plan for removal ofthe above -ground fuel storage tanks ("AST's") on the City property, together with a contingency plan for potential removal of soil contaminated by leakage of the AST's. The cost of the AST removal is $24,917; the cost of implementing the contingency plan is $6,923. 2) The City's reimbursement obligation shall not exceed $32,000. 3) The City's indemnification obligation is limited to those costs and damages resulting from corrective action required by the County, and such corrective action shall be within the scope of the Geosyntec proposal. A copy of the Indemnification Agreement, including the Geosyntec proposal, is attached to the agenda. It is recommended that the proposed resolution be adopted, ratifying the Second Amendment to Agreement for Exchange of Real Property, and authorizing the Mayor to execute the Indemnification Agreement. GEORGE H. EISER, III Legal Counsel GHE/gt 10 January 3, 2011 2 Exchange of Real Property City of National City and Illes Family Trust SECOND AMENDMENT TO AGREEMENT FOR EXCHANGE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS TO: Stewart Title Company 7675 Mission Valley Road San Diego, CA 92108-4429 (619) 692-1600 ("Escrow Holder") Escrow No.: Escrow Officer: Title Order No.: Title Officer: 288553 Rhonda Bernardini Frank Green THIS SECOND AMENDMENT TO AGREEMENT FOR EXCHANGE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS ("Agreement") is made and entered into as of this 23rd day of December, 2010, by and between the CITY OF NATIONAL CITY, a municipal corporation, ("City"), and ILLES FAMILY TRUST ("Mlles"). The City and Illes are sometimes hereinafter referred to collectively as the "Parties". RECITALS A. On or about September 23, 2010, the Parties entered into an Agreement whereby they agreed to the exchange of the City Property at 522 West 8th Street, National City, for the Illles Property at 2020 Hoover Avenue, National City. B. Section 6.1.2 of the Agreement provides that the Grantee Party shall have forty- five (45) days after the Effective Date (the "Contingency Period") to review and approve or disapprove, inter alia, soils and environmental reports pertaining to the Grantor Party's Real Property. C. On or about November 9, 2010, the Parties amended the Agreement to extend the Contingency period by forty-five (45) days, for a total of ninety (90) days. D. It is necessary, in order to allow the Parties to prepare and approve additional documents that will facilitate completion of the exchange transaction, to further extend the Contingency Period by an additional twenty-two (22) days, for a total of one hundred -twelve (112) days. NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration, the Parties agree that Section 6.1.2 of the Agreement for Exchange of Real Property and Joint Escrow Instructions dated September 23, 2010, is amended to read as follows: 6.1.2. Review and Approval of Documents and Materials. The Grantor Party shall deliver to the Grantee Party within ten (10) days after the Effective Date the documents and materials set forth below which pertain to the Grantor Party's Real Property that are in the Grantor Party's possession or control Party has actual knowledge thereof at no expense to the Grantor Party ("Documents and Materials"). From the Effective Date until 5 p.m. on that date which is one hundred -twelve (112) days after the Effective Date ("Contingency Period"), the Grantee Party shall have the right to review and approve or disapprove, in its sole discretion, any or all of the Documents and Materials; provided, however, the Contingency Period and Closing Date shall be extended by one (1) day for every day that the Grantor Party is late in delivering any of the Documents and Materials or any of the Title Documents beyond the date that the Grantor Party is required hereunder to deliver the same to the Grantee Party. With the foregoing exception, each and every provision of the Agreement for Exchange of Real Property and Joint Escrow Instructions dated September 23, 2010, shall remain in full force and effect. IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to Agreement as of the day and year first written above. ILLES FAMILY TRUST CITY OF NATIONAL CITY By: By: Richard Illes, Trustee Chris Zapata, City Manager By: Beverly Ann flies, Co -Trustee Acceptance by Escrow Holder: Steward Title Company hereby acknowledges that it has received a fully executed original or original executed counterparts of the foregoing Agreement for Exchange of Real Property and Joint Escrow Instructions, and agrees to act as Escrow Holder thereunder and to be bound by and strictly perform the terms thereof as such terms apply to Escrow Holder. Dated: , 2010. Stewart Title Company a California corporation By: Its Authorized Agent Name: Title: Between the City of National City 2 Amendment to Agreement for Exchange of and Richard flies Real Property and Joint Escrow instructions or are reasonably available to the Grantor Party, and to the extent that the Grantor Party has actual knowledge thereof at no expense to the Grantor Party ("Documents and Materials"). From the Effective Date until 5 p.m. on that date which is one hundred -twelve (112) days after the Effective Date ("Contingency Period"), the Grantee Party shall have the right to review and approve or disapprove, in its sole discretion, any or all of the Documents and Materials; provided, however, the Contingency Period and Closing Date shall be extended by one (1) day for every day that the Grantor Party is late in delivering any of the Documents and Materials or any of the Title Documents beyond the date that the Grantor Party is required hereunder to deliver the same to the Grantee Party. With the foregoing exception, each and every provision of the Agreement for Exchange of Real Property and Joint Escrow Instructions dated September 23, 2010, shall remain in full force and effect. IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to Agreement as of the day and year first written above. ILLES FAMILY TRUST By: By: everly Ann I les, C i' rust CITY OF NATIONAL CITY By: Chris Zapata, City Manager Acceptance by Escrow Holder: Steward Title Company hereby acknowledges that it has received a fully executed original or original executed counterparts of the foregoing Agreement for Exchange of Real Property and Joint Escrow Instructions, and agrees to act as Escrow Holder thereunder and to be bound by and strictly perform the terms thereof as such terms apply to Escrow Holder. Dated: , 2010. Stewart Title Company a California corporation By: Its Authorized Agent Name: Between the City of National City 2 Amendment to Agreement for Exchange of and Richard Illes Real Property and Joint Escrow Instructions Title: Between the City of National City 3 Amendment to Agreement for Exchange of and Richard Illes Real Property and Joint Escrow Instructions INDEMNIFICATION AGREEMENT This Indemnification Agreement ("Agreement") is made and entered into this day of January, 2011, by and between the CITY OF NATIONAL CITY, a municipal corporation ("CITY"), the ILLES FAMILY TRUST ("ILLES"), and WELLS FARGO BANK ("BANK"). A. CITY and ILLES entered into an Agreement for Exchange of Real Property and Joint Escrow Instructions (the "Exchange Agreement") on or about September 23, 2010. The purpose of the Exchange Agreement was for the CITY to transfer ownership of its land and improvements commonly known as 522 West 8th Street, National City (the "City Property") to ILLES, and for ILLES to transfer ownership of its land and improvements commonly known as 2020 Hoover Avenue, National City (the "flies Property") to the CITY. B. On or about November 9, 2010, the CITY and ILLES entered into the First Amendment to Agreement for Exchange of Real Property and Joint Escrow Instructions (the "First Amendment"). The purpose of the First Amendment was to extend the Contingency Period to 90 days, within which time the CITY and ILLES could review and approve or disapprove soils and environmental reports pertaining to the other party's property. C. The BANK is the beneficiary of a deed of trust on the Illes Property. Concurrently with the transfer of the City Property to ILLES pursuant to the Exchange Agreement, BANK intends to transfer its deed of trust from the Illes Property to the City Property. D. ILLES and the BANK desire to be protected from liability arising out of any known contamination on the City Property, and have requested indemnification from the CITY, and that the CITY assume responsibility for possible future remediation activities on the City Property, and the CITY has agreed to such indemnification and to assume such responsibility. NOW, THEREFORE, for good and valuable consideration, the CITY, ILLES, and the BANK hereby agree as follows: 1. Upon the closing of escrow for the exchange of the City Property and the Illes Property, the CITY agrees to indemnify, defend, and hold harmless ILLES and the BANK from and against any claims, actions, suits, proceedings, loss, costs, damages, liability, or expenses resulting from any corrective action required by the County of San Diego to remediate contamination known to exist on the City Property as of the date of this Agreement, provided that such corrective shall be within the scope of the remediation activities identified in the "Proposal for Environmental Consulting Services" (the "Proposal") dated February 3, 2010 prepared by Geosyntec Consultants. Said Proposal is attached hereto as Exhibit "A" and incorporated herein by reference. 2. The CITY agrees to reimburse ILLES for the cost of any corrective action required by the County of San Diego to remediate contamination known to exist on the City Property as of the date of this agreement, provided that such corrective action shall be within the scope of the remediation activities identified in the "Proposal for Environmental Consulting Services" (the "Proposal") dated February 3, 2010 prepared by Geosyntec Consultants (Exhibit January 2011 1 Indemnification Agreement City of National City and Illes Family Trust "A"), and provided further that the CITY' S reimbursement obligation to ILLES shall not exceed $32,000.00. 3. It is understood by the parties hereto that the CITY is legally self -insured pursuant to Section 990 of the California Government Code, and Section 3700 of the California Labor Code. 4. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. 5. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. 6. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 7. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent, or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. 8. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. 9. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. --- Signature Page to Follow --- January 2011 2 Indemnification Agreement City of National City and Illes Family Trust IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY THE ILLES FAMILY TRUST By: By: Ron Morrison, Mayor (Signature) 7 (Print) APPROVED AS TO FORM: By: (Signature) Claudia G. Silva City Attorney (Print) WELLS FARGO BANK By: (Signature) (Print) (Title) By: (Signature) (Print) (Title) January 2011 3 Indemnification Agreement City of National City and Ilies Family Trust Geosyntec c> consultants VIA ELECTRONIC MAIL AND US MAIL Mr. Colby Young Community Development Commission of National City 1243 National City Boulevard National City, CA 91950 Subject: Proposal for Environmental Consulting Services National City Transit Yard 522 W. 8th Street National City, California Dear Mr. Young: 10875 Rancho Bernardo Road, Suite 200 San Diego, CA 92127 PH 858.674.6559 FAX 858.674.6536 www.geosyntec.com 3 February 2010 As requested, Geosyntec Consultants (Geosyntec) is pleased to present the City of National City Community Development Commission (CDC) this proposal to provide environmental consulting services (the "Services") related to the National City Transit Yard (NCTY) located at 522 W. 8th Street in National City, California (the site). This proposal has been provided in response to your request to remove the existing Above -Ground Storage Tank (AST) diesel fuel system located at the NCTY. BACKGROUND Based on NCTY design plans provided by the CDC and a site visit by Geosyntec and its subcontractor, Fred North Construction (FNC) on 25 January 2010, the AST diesel fuel system consist of the following: two 8,000 gallon double -walled steel ASTs containing approximately 13,000 gallons of diesel fuel; a concrete pump island and fuel dispenser; approximately 120 linear feet (LF) of underground piping; a fiberglass leak detection sump; and a remote fill transfer pump. PROPOSED SCOPE OF WORK Pre -field Activities Geosyntec will prepare a site -specific Health and Safety Plan (HASP) in accordance with Occupational Safety & Health Administration (OSHA) requirements prior to mobilizing field staff and equipment to the site. The HASP will address potential health hazards at the Site, including requirements for worker protection. At least 48 hours prior to initiating subsurface sampling, Geosyntec will mark -out the limits of the proposed excavation (undergroundpiping and appurtenances) and contact Underground Service Alert (USA) to identify the location of engineers I scientists I innovators Mr. Colby Young 3 February 2010 Page 2 Geosyntect) consultants underground utilities. A surface geophysical survey will be performed by a private underground utility locator in the vicinity of the proposed excavation to evaluate the presence of subsurface utilities and obstructions prior to commencing field activities. In addition, an AST removal permit will be obtained from the National City Fire Department prior to mobilizing to the site. During the 25 January 2010 site visit it was noted the electrical system was energized for the ASTs and fuel distribution system. Therefore, prior to initiating removal activities, Geosyntec requests that the CDC coordinate with NCTY staff to have the electrical circuits leading to the fuel system "locked out and tagged out." Field Activities Geosyntec will provide field oversight during the AST removals and excavation of underground pipe. Soil within the excavation will be monitored for the presence of hydrocarbon impacts by Geosyntec personnel. If impacted soil is identified during excavation activities, soil will be managed in accordance with the contingency plan presented in the following section. The following is a summary of the proposed scope of work for the AST removal: • Secure National City Fire Department AST Removal Permit; • Remove and salvage approximately 13,000 gallons diesel fuel; • Clean, remove, and recycle as clean scrap steel two 8,000 gallon double -walled steel ASTS, fuel pump, all associated piping, valves, and fittings (salvage weight is approximately 12 tons); • Remove and dispose rinsate water and residual fuel from tank and pipe cleaning process; • Excavate and backfill trenches to remove underground piping and leak detection sump; • Clean and remove 120 linear feet of underground Enviroflex® double -walled flexible piping and one 300 gallon underground fiberglass leak detection sump: dispose all as ordinary refuse at local municipal landfill; • Remove and recycle as clean scrap metal all pipe supports, control boxes, wire, and conduits; • Clean, remove, and recycle concrete pump island (20 sq. ft) and concrete slab (36 sq. ft) to remove sump (concrete will not be replaced); • Remove all associated panels, controls, conduits and wire back to panel IC. At the conclusion of field activities, Geosyntec will prepare a report documenting the AST removal activities. The report will include copies of permits, photographs of conditions encountered, and manifests for waste disposal. NationalCity.Prop. F.020310.doc engineers I scientists I innovators Mr. Colby Young 3 February 2010 Page 3 Geosyntec ° consultants Contingency Plan Geosyntec will notify the CDC immediately if impacted soil is encountered during excavation activities. In accordance with San Diego Department of Environmental Health (DEH) guidance, Geosyntec also recommends notifying the DEH in writing within 5 working days if impacted soil is encountered. If hydrocarbon -impacts appear to be localized and can be efficiently addressed within one working day while construction equipment is onsite, a limited amount of soil will be excavated and stockpiled onsite. Excavated soil will be placed on visqueen sheeting and covered or placed in a roll -off bin for characterization prior to offsite disposal. Up to five soil samples will be collected ,for total petroleum hydrocarbon (TPH) analysis in an offsite laboratory. ESTIMATED PROPOSAL BUDGET This proposal has been prepared based on the assumptions stated herein and Geosyntec's updated fee schedule dated 30 January 2009. A summary of the costs to complete the scope of work outlined herein is provided below for your review and information. Task Description Cost AST Removal • Subcontractor Expenses $ 18,4251 • Geosyntec Labor and Expenses $ 6,492 AST Removal Subtotal $ 24,917 Contingency Plan • Subcontractor Expenses $ 3,950 • Laboratory Expenses $ 253 • Geosyntec Labor and Expenses $ 2,720 Contingency Plan Subtotal $ 6,923 Geosyntec will perform these services on a time and material basis for a cost not to exceed $24,9171. If necessary, the contingency plan will be implemented on a time and materials cost not to exceed $6,923. Geosyntec will not exceed the estimated costs presented above without your prior authorization and approval. This cost estimate has been prepared based on the following assumptions: Estimated cost includes $6,870 credit for scrap steel recycling and diesel fuel recycling. N ationalCity. Prop. F.020310.doc engineers I scientists I innovators Mr. Colby Young 3 February 2010 Page 4 Geosyntec D consultants • All work will be completed in one mobilization and water is available at the site free of charge. • Underground piping is in a straight line from sump to fuel pump, (approximately 120 ft) located in planter and concrete removal, if needed, will be at the unit price rate. No concrete will be replaced. • Rinsate and residual fuel generated during tank and pipe cleaning are liquid, with no solids and do not exceed 1,000 gallons. • All excavated soil is clean and can be used for backfiliing trenches; if exc soil is impacted, it will be stockpiled on and covered with plastic sheeting at the Unit price rate. • Power to Panel "1C" will be "tagged and locked out" at main panel by owner, prior work. • All concrete tank foundations, slabs, walks, and curbs will remain in place, except in the vicinity of the pump island and minimum necessary to remove the sump. N rete-wiil-bc-nplacpd apd_.excavations will be. backfilledwitb:_up.to 7tons of imported soil to replace sump and underground pipe volumes. • Additional subcontractor expenses, if requested or required, will be incurred based on the following unit pricing: Description Unit Price Rinsate removal and disposal (> 1,000 gallons) $ 1.39 per gallon Solids removal and disposal (> 0 gallons) $ 5.45 per gallon Vac -truck washout if solids found in tanks (> 0) $ 550 per washout 6" concrete slab removal (> 56 SF) $ 7.70 per SF Remove underground piping (>120 LF) $ 55.00 per LF Soil Excavation and stockpiling (> 0/BCY) $ 27.50 per BCY Import and backfill soil (> 7 tons) $ 33.00 per ton Scrap steel salvage credit based on actual weight $ 85.00 per ton Fuel salvage credit based on actual volume $ 0.45 per gallon SCHEDULE Geosyntec will initiate implementation of the proposed scope of work upon receipt of written authorization to proceed. It is anticipated that the necessary permit application can be submitted within one week. Geosyntec estimates that the field activities described herein can be completed NationalC ity.Prop. F.0203 10.doc engineers 1 scientists I innovators Mr. Colby Young 3 February 2010 Page 5 Geosyntec° consultants within approximately 2 to 3 weeks following the receipt of the approved AST removal permit. Geosyntec will prepare a letter report for submittal to the CDC within 2 weeks following removal of the AST. This proposal will constitute the service order referenced in the Professional Services Agreement between Geosyntec and the CDC, dated 2 June 2009. Geosyntec appreciates this opportunity to provide environmental consulting services to CDC in conjunction with the NCTY. If you have any questions, please contact me at (858) 674-6559. Sincerely, Geosyntec Consultants Very]. Wittig, PG, CH(i Project Manager APPROVED AND ACCEPTED: City of National City Community Development Commission By: Colby Young Date Nation (City. P rop.F.020310.doc engineers I scientists I innovators RESOLUTION 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING A SECOND AMENDMENT TO AGREEMENT FOR EXCHANGE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS, AND AUTHORIZING THE MAYOR TO EXECUTE AN INDEMNIFICATION AGREEMENT WITH THE ILLES FAMILY TRUST AND WELLS FARGO BANK PERTAINING TO SAID EXCHANGE OF REAL PROPERTY (522 WEST 8TH STREET AND 2020 HOOVER AVENUE) WHEREAS, on September 23, 2010, the City and the Illes Family Trust ("Illes") entered into an Agreement for Exchange of Real Property and Joint Escrow Instructions (the "Agreement") whereby the parties agreed to an exchange of the City -owned property at 522 West 8th Street for the Illes-owned property at 2020 Hoover Avenue; and WHEREAS, Section 6.1.2 of the Agreement provides that a party shall have forty-five (45) days after the Agreement is executed (the "Contingency Period") to review and approve or disapprove, among other items, soils and environmental reports pertaining to the other party's property; and WHEREAS, on or about November 9, 2010, the parties entered into a First Amendment to the Agreement, extending the Contingency Period by 45 days to December 23, 2010; and WHEREAS, it was necessary, in order to provide adequate time for preparation and approval of an Indemnification Agreement between the parties and Wells Fargo Bank (the "Bank"), which will hold a deed of trust on the property at 522 West 8th Street, for the parties to enter into a Second Amendment to the Agreement on or about December 23, 2010, extending the Contingency Period for 22 days, until January 14, 2011; said Second Amendment was executed by City staff and should appropriately be ratified by the City Council; and WHEREAS, the proposed Indemnification Agreement provides that the City will indemnify, defend, and hold harmless Illes and the Bank from all liability, loss, or damages resulting from any corrective action ordered by the County of San Diego for the property at522 West 8th Street, which corrective action shall be within the scope of the "Proposal for Environmental Consulting Services" prepared by Geosyntec Consultants, dated February 3, 2010; and WHEREAS, the proposed Indemnification Agreement further provides that the City will reimburse Illes for the cost of any corrective action required by the County that is within the scope of the Geosyntec proposal, and that said reimbursement obligation is limited to $32,000. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby ratifies a Second Amendment to Agreement for Exchange of Real Property and Joint Escrow Instructions to amend Section 6.1.2 of the Agreement to extend the Contingency Period for 22 days, for a total of 112 days. Said Second Amendment to Agreement is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor is authorized to execute an Indemnification Agreement by and between the City, the Illes Family Trust, and Wells Fargo Bank. Said Indemnification Agreement is on file in the office of the City Clerk. --- Signature Page to Follow --- Resolution No. 2011 — Page 2 PASSED and ADOPTED this 11th day of January, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney OFFICE OF THE CITY CLERK 1243 National City Blvd. National City, California 91950 Michael R. Dalla, CMC - City Clerk 619-336-4228 phone / 619-336-4229 fax RICHARD ILLES / WELLS FARGO Resolution No. 2011-12 Amendment #3 / Indemnification Agreement 522 West 8th Street / 2020 Hoover Avenue Ginny Miller (City Attorney) Forwarded Amendment & Agreement to Richard Illes