TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: CITY ATTORNEY

DATE: NOVEMBER 16, 2004

SUBJECT: AMENDMENT TO THE HON PURCHASE AGREEMENT

RECOMMENDATION

Approve a contract with the Source Group to conduct additional environmental studies on the Portuguese Bend Property, including soil sampling and testing.

DISCUSSION

On November 12, 2004, the City received the Phase I Environmental Site Assessment for the Portuguese Bend Property prepared by the Source Group. Based on the review of historic aerial photography of the area, the report concludes that there is the potential for chemical contamination from the previous agricultural land uses in the site vicinity.

The Seller has agreed to extend the due diligence period stated in the Purchase Agreement by 30 days to allow the City to conduct further testing at the site pursuant to Section 7 of the Agreement. The Mayor signed the Amendment to the Purchase Agreement on November 12th. While this Amendment extends the due diligence period, it does not require that the testing be done or create any obligation on the part of the City. Therefore, the issue before the City Council this evening is whether to conduct additional environmental review of the property. Staff feels that the additional investigation is warranted and prudent, given the history of the property. Therefore, staff is seeking Council’s authorization to retain the Source Group to conduct the needed sampling and testing during the 30-day extension period.

FISCAL IMPACT

The Source Group estimates that the additional site investigation will cost approximately $3,000 to complete. This amount can be accommodated under the $60,000 the Council appropriated for this project on November 3, 2004.

Respectfully submitted:

Carol Lynch
City Attorney