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Home My WebLink About11/14/1995, 1 - RAILROAD BIKE PATH PROPERTY ACQUISITION MEETING pATE City Of San IU1S OBISPO IM t: �y ► mmons COUNCIL AGENDA REPORT ITEM NUMB MOM: John Dunn, City Administrative Officer Prepared By: Michael McCluskey, Public Works Director (9NA SUBJECT: Railroad Bike Path Property Acquisition RECOMMENDATION: By motion, authorize the Mayor to enter into a contract for purchase of 13.89 acres from Southern Pacific Railroad in an amount of $731,900 DISCUSSION: On November 14, 19899 City Administrative Officer John Dunn wrote a letter to the Southern Pacific Railroad expressing the City's interest in purchasing surplus railroad property. Since that time, negotiations and discussions have been underway for the purchase of the property. On March 1, 1994, the City Council approved the purchase price of $731,900 and authorized staff to conclude contract negotiations. From March 1994 to November 1995, a series of contracts have been exchanged and a number of issues discussed. On Friday, October 27, 1995, the City Attorney and the Public Works Director (in a telephone conference call) concluded the final items regarding liability.issues for toxics and contaminants, essentially wrapping up the contract negotiations. The property in question is shown in Exhibits A and B and runs from the south at Orcutt Road, northerly to the extension of Florence Drive. The property contains 13.89 acres, of which 2.22 acres shown on Exhibit A is currently contaminated and awaiting remediation action. The remaining 11.67 acres has no evidence of contamination, but is subject to a Phase II Hazardous Investigation which is currently in progress. While staff does not expect any significant contamination to be found as a result of the Phase 11 investigation, should such evidence arise, the contract that has been negotiated does allow the City to terminate that contract. Should this happen, terms of the contract would need to be renegotiated as staff believes it is still in the City's best interests to continue pursuing both pieces of property. The Southern Pacific Railroad Company does plan on proceeding with the remediation of the 2.22 acre site shown in Exhibit A, as soon as reasonably possible. Their current prioritization of hazardous clean up of properties is dependent upon revenues received from those properties. Thus in the telephone conference call of October 27, 1995, the Railroad's corporate attorney stated that once funding is received for the sale of the property then funding can be applied towards cleanup of that property. The terms of the contract, regarding the contaminated site, show that the City is purchasing the site "in fee" without any liability for the hazardous materials. The Railroad will be granted back an easement from the City for that area, until such time as the Railroad has completed its remediation plan and the site has been declared in compliance with the remediation plan approved by the City's Fire Department. When these actions occur, the Railroad will quit claim back to the City its interest in the easement. �miM ►I�il�l��lj��1 city of San OBISp0 COUNCIL AGENDA REPORT Bike Path Page Two The entire 13.89 acre site is subject to a Signal Pole Line Easement, being 20 feet in width and running the entire length of the property. Located on the site is a series of poles with communication lines attached that the Railroad wants to maintain access to for their own purposes. At this time there is no proposed undergrounding of these facilities, although that possibility does . exist in the future. The property is first in a series of properties for eventual purchase which will provide a bicycle and pedestrian pathway linldng Cal Poly with the southern end of the city. Funding has already been secured for design and installation of a railroad bike path from Orcutt Road, extending northerly and connecting to the extension of Bushnell Street with connections to Sinsheimer Park also. After conclusion of this purchase, the next logical piece for acquisition would be the Phase II Bike Path Area from the extension of Florence Avenue to Jennifer Street where a bike path connection could be made to the Jennifer Street bike bridge. However, the interim bike path (Phase I) will allow bicyclists access to Jennifer Street via Bushnell Street, Florence Avenue and the extension of Ella Street. FISCAL IMPACT: As summarized in the 1995/99 Capital Improvement Plan(page 93), $731,000 has been appropriated for this acquisition in the 1993/95 and 1995/97 Financial Plans. Of this amount, $550,000 is to be funded from the Parkland Development Fund (park in-lieu fees) and $181,000 from Transportation Impact Fees. At this time, these funds are fully available in the Parkland Development Fund; and $146,100 is available in the Transportation Impact Fee Fund. With only 33% of the fiscal year complete, we expect to meet_our budget projection of $340,000 by year-end. As set forth in the Financial Plan policies,in the event that the remaining portion($34,900) is not received by year-end, the General Fund will advance the portion needed and will be repaid upon collection of those fees. Attachments: Exhibit A Exhibit B Exhibit C Exhibit p: Copies ob the Aguement ane attached bon Councit MembvEz. A copy -ia ava,iXabZe bo-% pubtic teview in the Cit Ctenk'e Obbice. Iblkepalh.mm _ '_area' "3�•-'•';Y,`�%i:L'�' it Yl ISG68r CN•' _ tit� •,'•j:}y.' ,v.:l t ef' / �l♦'• C w tI /�r, C—�_ 77.L J'JSu 901SL6 :Ay a .♦ 'ee rn`LJ• �ULV,G �+ 1 v _ ,wya± "e>' ! 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Cgy�F q� O ''7 N S ONERIDGE DR. �Sv a CT �v z OG 9 z 4zX Q1 ORCUTT ROAD r j CM l F OBl RAILROAD BIKE PATH Public woks Departmmeentt PROPERTY ACQUISITION 955 Morro Street, San luis Obispo, CA 93402 —� AGENDA DATE NG .9�- ITEM # DATE November 13, 1995 MEMORANDUM TO: City Council VIA: John Dunn, City Administrative Offic4Q-- FROM: Mike McCluskey, Public Works Director Vim' SUBJECT: Contract Changes for Southern Pacific Railroad Purchase Attached please find copies of the last set of changes negotiated by Jeff Jorgensen, City Attorney, and myself which the Railroad accepted. The changes occur in Paragraph 9, Section 9. 1 and in Paragraph 19, Section 19. 3, Subparagraph F. With the above changes, the entire document has been fully negotiated and is ready for full Council approval. These last two changes were "in progress" during the closed Council session held November 7, 1995 and were referred to by the City Attorney in his presentation. The copies of the changes are included for your information. The document that the Mayor will sign has been reprinted by the Railroad in its entirety and, thus at this time, I felt it was prudent to only copy you with the two changes. Attachments or NCIL O CDD C;; R ❑ FIN DIR• _ [03C O O�E CHIEF �: ORN� PW MR �d O POLICE CHF TTEAM O RECDIR FILE O UTIL DIR c: City Attorney 13 PERSDIR spchengesn R E C G I V E MN 1 3 1995 CUY CCERK SAN LU98 OBISPO,CA � r incurred by Buyer as a result of said defect or matter. 8 .3 No later than 12 :00 noon on the business day prior to the Closing Date, Buyer shall deliver or cause to be delivered to Seller through Escrow cash in the amount of the Purchase Price as set forth in Paragraph 3 hereof, together with cash in an amount sufficient to cover the charges imposed on Buyer pursuant to Paragraph 10 below. 8 . 4 Prior to the Closing Date, both parties shall execute and deliver through Escrow any other documents or instruments which are reasonably necessary in order to consummate the purchase and sale of the Property pursuant to the terms. and conditions of this Agreement. 9 , CONDITION OF PROPERTY AND BUYER' S INTENDED USE 9 . 1 Buyer acknowledges that it is being afforded extensive access to the Property and to information relating to the Property, including, but not limited to, having been advised that the Property has previously been used for various railroad and industrial uses. Buyer will continue to have the right to make on site inspections (subject to Paragraph 19 hereof) and the right to examine documents (including Historic ownership maps, agency documents and reports + spill files, if any) relating to the Property as shown on Exhibit "A" , and will otherwise investigate the Property to Buyer' s satisfaction. Buyer shall perform and rely upon its own independent investigation of the physical condition of the Property. Buyer expressly acknowledges that Buyer is buying the Property in an "as is,, condition, and that it has not relied on any warranties, promises, understandings or representations, express or implied, of Seller or any agent of Seller relating to the Property, any lease or any other document relating to the Property, except as otherwise set forth in this Agreement and the agreements and documents to be executed and delivered pursuant to Section 8 . Buyer acknowledges that any and all feasibility or marketing reports, environmental assessments, engineering studies and other information of any type that Buyer has received or may receive from Seller or its agents are furnished on the express condition that Buyer shall make an independent verification of the accuracy of any and all such information, all such information being furnished without any warranty whatsoever. Notwithstanding the foregoing, Seller represents that to the best of its knowledge it has provided Buyer with all information and documents known to Seller, or in the possession of Seller, relating to the condition of the Property. 9 .2 Buyer acknowledges and agrees that Seller (and Seller' s agents and employees) has not and does not hereby make any representation or warranty to Buyer concerning the Property, including, without limitation, the suitability Document 0044 Page 7 of 16 any Environmental Surveys which approval shall not be unreasonably withheld and shall be promptly given; B. Seller shall have the right to approve, review and monitor any and all physical tests, studies and procedures in or about the Property which are made or implemented in connection with any Environmental Surveys, including, without limitation, the review and approval of the number, type, extent and location of any test or monitoring wells or drillings, which approval shall not be unreasonably withheld or delayed; C. Former paragraph C. deleted. D. All written reports, evaluations and surveys produced by any Consultants in connection with any Environmental Surveys (whether preliminary, interim or final in nature) shall be submitted to Seller concurrently with the submission of such items to Buyer; E. Prior to the issuance of any final report by any Consultants which will set forth any "baseline" determination for the Property and/or any recommendations relating to the removal, monitoring, cleanup or containment of any hazardous materials, Seller shall be given the opportunity to make comments, question and offer recommendations to the Consultants preparing such reports; F. Subject to the provisions of public disclosure law, Buyer and Buyer' s Consultant shall maintain in confidence any and all information, reports, evaluations and surveys generated in connection with any Environmental Surveys, and Buyer and Buyer' s Consultants shall not make any disclosure of any such information, reports, evaluations and surveys to any other person or entity without .the prior written consent of Seller; if Buyer, in its reasonable good faith judgment, believes that it has a duty to report to any local, state or federal regulatory agency the results of any environmental investigation of the Property, or otherwise disclose such information, reports, evaluations or surveys in response to a request pursuant to the California Public Records Act, Buyer shall first provide ten (10) business days written notice to Seller; Seller may elect to participate in making such report and in contacting any local, state or federal regulatory agency, or for disclosing such information. G. Buyer agrees toprovide any Consultant with copy of this Paragraph 19 and obtain such Consultant' s agreement to abide by the terms and conditions hereof . Document 0044 Page 13 of 16 ® Mtc(ING AGENDA DATE '9� ITEM # November 13, 1995 MEMORANDUM TO: City Council VIA: John Dunn, City Administrative Offic(E;�-- FROM: Mike McCluskey, Public Works Director oll.- SUBJECT: Contract Changes for Southern Pacific Railroad Purchase Attached please find copies of the last set of changes negotiated by Jeff Jorgensen, City Attorney, and myself which the Railroad accepted. The changes occur in Paragraph 9, Section 9. 1 and in Paragraph 19, Section 19. 3, Subparagraph F. With the above changes, the entire document has been fully negotiated and is ready for full Council approval. These last two changes were "in progress" during the closed Council session held November 7, 1995 and were referred to by the City Attorney in his presentation. The copies of the changes are included for your information. The document that the Mayor will sign has been reprinted by the Railroad in its entirety and, thus at this time, I felt it was prudent to only copy you with the two changes. Attachments EC03 OUNCIL ' ❑ CDD D.; k ' O ❑ RN DIP.• CAO ❑oRRE CHIEF TTORNEY PW DIR LERwORIG ❑ POLICE CHF OWTEAM ❑ RECDIR FILE ❑ UTILDIR c: City Attorney 17 PERSDIR spchengem R L1 O V I�1p E WV 1 3 1995 O1TY=AK SAN UAS OBISPO,CA l incurred by Buyer as a result of said defect or matter. 8 .3 No later than 12 :00 noon on the business day prior to the Closing Date, Buyer shall deliver or cause to be delivered to Seller through Escrow cash in the amount of the Purchase Price as set forth in Paragraph 3 hereof, together with cash in an amount sufficient to cover the charges imposed on Buyer pursuant to Paragraph 10 below. 8.4 Prior to the Closing Date, both parties shall execute and deliver through Escrow any other documents or instruments which are reasonably necessary in order to consummate the purchase and sale of the Property pursuant to the terms and conditions of this Agreement . 9 . CONDITION OF PROPERTY AND BUYER'S INTENDED USE 9 . 1 Buyer acknowledges that it is being afforded extensive access to the Property and to information relating to the Property, including, but not limited to, having been advised that the Property has previously been used for various railroad and industrial uses. Buyer will continue to have the right to make on site inspections (subject to Paragraph 19 hereof) and the right to examine documents (including Historic ownership maps, agency documents and reports + spill files, if any) relating to the Property as shown on Exhibit "A" , and will otherwise investigate the Property to Buyer' s satisfaction. Buyer shall perform and rely upon its own independent investigation of the physical condition of the Property. Buyer expressly acknowledges that Buyer is buying the Property in an "as is" condition, and that it has not relied on any warranties, promises, understandings or representations, express or implied, of Seller or any agent of Seller relating to the Property, any lease or any other document relating to the Property, except as otherwise set forth in this Agreement and the agreements and documents to be executed and delivered pursuant to Section 8 . Buyer acknowledges that any and all feasibility or marketing reports, environmental assessments, engineering studies and other information of any Seller tore its that Buyer agents has arereceived furnished mon the receive express condition that Buyer shall make an independent verification of the accuracy of any and all such information, all such information being furnished without any warranty whatsoever. Notwithstanding the foregoing, Seller represents that to the best of its knowledge it has provided Buyer with all information and documents known to Seller, or in the possession of Seller, relating to the condition of the Property. 9 .2 Buyer acknowledges and agrees that Seller (and Seller' s agents and employees) has not and does not hereby make any representation or warranty to Buyer concerning the Property, including, without limitation, the suitability Document 0044 Page 7 of 16 �?m any Environmental Surreys which approval shall not be unreasonably withheld and shall be promptly given; B. Seller shall have the right to approve, review and monitor any and all physical tests, studies and procedures in or about the Property which are made or implemented in connection with any Environmental Surveys, including, without limitation, the review and approval of the number, type, extent and location of any test or monitoring wells or drillings, which approval shall not be unreasonably withheld or delayed; C. Former paragraph C. deleted. D. All written reports, evaluations and surveys produced by any Consultants in connection with any Environmental Surveys (whether preliminary, interim or final in nature) shall be submitted to Seller concurrently with the submission of such items to Buyer; E. Prior to the issuance of any final report by any Consultants which will set forth any "baseline" determination for the Property and/or any recommendations relating to the removal, monitoring, cleanup or containment of any hazardous materials, Seller shall be given the opportunity to make comments, question and offer recommendations to the Consultants preparing such reports; F. Subject to the provisions of public disclosure law, Buyer and Buyer' s Consultant shall maintain in confidence any and all information, reports, evaluations and surveys generated in connection with any Environmental Surveys, and Buyer and Buyer' s Consultants shall not make any disclosure of any such information, reports, evaluations and surveys to any other person or entity without the prior written consent of Seller; if Buyer, in its reasonable good faith judgment, believes that it has a duty to report to any local, state or federal regulatory agency the results of any environmental investigation of the Property, or otherwise disclose such information, reports, evaluations or surveys in response to a request pursuant to the California Public Records Act, Buyer shall first provide ten (10) business days written notice to Seller; Seller may elect to participate in making such report and in contacting any local, state or federal regulatory agency, or for disclosing such information. G. Buyer agrees to provide any Consultant with copy of this Paragraph 19 and obtain such Consultant' s agreement to abide by the terms and conditions hereof. Document 0044 Page 13 of 16