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C. 8

To:	Board of Supervisors
From:	Julia R. Bueren, Public Works Director/Chief Engineer
Date:	January 19, 2010

Contra

Costa

County

Subject:

Grant of Easement, Hookston Station area, Pleasant Hill. Project No. 4500-6X5489

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 01/19/2010

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Gayle B. Uilkema, District II Supervisor
Mary N. Piepho, District III Supervisor
Federal D. Glover, District V Supervisor

ABSENT:

Susan A. Bonilla, District IV Supervisor

Contact:

Carla Peccianti, 313-2222

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: January 19, 2010
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE the Chair, Board of Supervisors, to execute a Grant of Easement to John V. Hook, et al for ingress and egress purposes across a portion of the Iron Horse Corridor off Mayhew Way, Pleasant Hill; and DETERMINE that the Grant of Easement is categorically exempt from the California Environmental Quality Act pursuant to Section 15305 of the Public Resources Code.

FISCAL IMPACT:

Contra Costa County Redevelopment Agency (Agency) has an agreement with John V. Hook, et al to provide litter and illegal dumping removal services to the County/Agency for the section of the Iron Horse Corridor (IHC) commonly referred to as Hookston Station area for a minimum of five (5) years. County Staff estimates the value of these services to be at $100,000. The Grant of Easement will allow the John V. Hook, et al to pursue the subdivision of their property, which is adjacent to the Hookston Station. If John V. Hook, et al is not able to meet their financial obligation, then the County will then be responsible for the John V. Hook, et al portion of the costs of the remediation and clean-up. The Agency has been making the County’s payment to date. The estimated value of the easement is approximately $100,000.

BACKGROUND:

In 1992, the County with Agency funds acquired a portion of the former Southern Pacific Right of Way (SPRW) for the IHC, Hookston Station area of Pleasant Hill. The IHC was acquired to preserve the former rail corridor for a future fixed guideway/transit use, the Iron Horse Trail (IHT) and a road connecting Contra Costa Centre and Monument Blvd. The Agency was to fund the road project; therefore the Agency funded the property acquisition of this portion of the IHC on behalf of the County. The Agency has since made the decision not to build the road and instead has funded the construction of the IHT in this section of the IHC with the County continuing to preserve the IHC for a future fixed guideway/transit system.

John V. Hook, et al acquired another portion of the former SPRW between Hookston Road and Mayhew Way as part of a reversionary transaction from the Southern Pacific Railroad Company (Southern Pacific). In the County’s acquisition of the IHC, steps were taken to protect the County from liability related to the removal of identified surface and sub-surface contaminants. Because the Agency intended to use a portion of the IHC to install a roadway providing access to the John V. Hook, et al property, no access easement was deemed necessary. When the Agency decided not to proceed with the road, it prevented John V. Hook, et al to subdivide their property because the sizes of the lots would not be large enough to accommodate a decent size building, parking spaces and access.

Subsequent to the County’s acquisition of this portion of the IHC, 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 joined John V. Hook, et al in filing a lawsuit against Southern Pacific related to the groundwater contamination. Effective in November 1997, the County, John V. Hook, et al, and Union Pacific Railroad Company, successor and interest to Southern Pacific (Union Pacific) entered into a Settlement Agreement dated October 1, 1998, to resolve the lawsuit. In general, the Settlement Agreement assigned financial responsibility to the three parties, with Union Pacific having 50% of the financial obligation, John V. Hook, et al having 25%, and the County having 25% responsibility.

Union Pacific, John V. Hook, et al and the County have worked with the Regional Water Quality Control Board to develop and implement a remediation plan for the hazardous materials.

Based on records available to County staff, as of August 31, 2009, a total of $7,632,150 has been expended for hazardous materials remediation related to the Hookston Station acquisition. Costs incurred to date have been paid from an escrow fund jointly established and funded by contributions from Union Pacific, John V. Hook, et al, and the Agency on behalf of the County. To date, the Agency has contributed more than $1.9 million on behalf of the County. Completion of the remediation work will be determined when specified threshold levels of contamination have been achieved. Once the threshold levels have been reached, a monitoring system is to be installed, the remediation work will then largely consist of monitoring and reporting, with some equipment maintenance. Current estimates indicate that remediation costs will be upwards of $10 million. Having a financial partner capable of fulfilling their portion of the obligation is in the best interests of the County and the Agency.

CONSEQUENCE OF NEGATIVE ACTION:

If the easement is not granted to the John V. Hook, et al they will not be able to subdivide their property to help pay for their 25% share of the Settlement Agreement and the County and the Agency would then be responsible for this cost.