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Home My WebLink About2010/06/22 Item 4CITY COUNCIL AGENDA STATEMENT - ~~~ ~«i, ,d ~~ CITY OF """ CHULA VISTA JUNE 22, 2010 Item ITEM TITLE: SUBMITTED BY: REVIEWED BY: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT DEED AND APPROVING A GENERAL RELEASE OF LIABILITY FOR AN 8.61 ACRE SITE, ASSESOR PARCEL NUMBER 624- 071-01 LOCATED IN THE OTAY RIVER VALLEY TO BE INCLUDED IN THE OTAY V EY REGIONAL PARK DEPUTY CITY MANAGE DEVELOPMENT SERVICES DIRECTOR CITY MANAGER 4/STHS VOTE: YES ~ NO SUMMARY Joseph W. Davies, Trustee of the Davies Family Trust (Trust), desires to donate an 8.61 acre site located in the Otay River Valley to the City of Chula Vista to be included within the Otay Valley Regional Pazk. In exchange for the donation the Trust requests a General Release of Liability from the City. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity qualifies for a Class 16 categorical exemption pursuant to Section 15316 [Transfer of Ownership of Land in Order to Create Parks] of the State CEQA Guidelines. Thus, no further environmental review is required. Staff has concluded their due diligence concerning the environmental condition of the site, using grant funds provided for under the Redevelopment Agencies Environmental Protection Agency Brownfield Assessment Grant to conduct a Phase I Environmental Investigation of the subject property. The Phase I investigation recommended no further investigation of the subject property and concluded that there is a low likelihood of any environmental contamination on the site. However, in order to ensure the interests of the City are protected staff is pursuing the purchase of an insurance policy that will cover the City for up to $1 million, for a period often years, should any unknown contamination be 4-1 JiTNE 22, 2010, Item Page 2 discovered when this property is put into use for the Otay Valley Regional Pazk. To help pay for the insurance policy the County has agreed to cover two thirds of the cost with the remaining balance coming from the Agency. RECOMMENDATION Approve the resolution. DISCUSSION Representatives of Joseph W. Davies, Trustee of the Davies Family Trust, have formally approached the City concerning the desire of the Trust to grant their real property interest in an 8.61 acre site located on the south side of the Otay River Valley, (see attached Exhibit A) to the City of Chula Vista for inclusion into the Otay Valley Regional Park. The site has already been contemplated as becoming part of the Otay Valley Regional Park and is contained in the draft master plan for the Otay Valley Regional Pazk General Release of liability The legal representative of Joseph W. Davies, Trustee of the Davies Family Trust, has requested a General Release of Liability for the donated site. The release would preclude the City from seeking any damages from the grantor should the City be sued or discover unknown environmental contamination on the site. The City would not normally approve a request for a General Release of Liability however the Council could approve such a release in consideration of receiving the donated parcel. To help protect the interests of the City staff is prepared, upon acceptance of the grant deed, to purchase an insurance policy that will cover the City for up to $1 million, for a period of ten yeazs, should any unknown contamination be discovered. Upon action by the City Council, County Supervisor Greg Cox will recommend to the Board of Supervisors, that as a member of the Otay Valley Regional Park Joint Exercise of Powers Agreement, that the County allocate $40,000 toward the insurance policy; which amounts to two-thirds of the total cost. The remaining balance will come from the Agency ($28,000). DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. CURRENT YEAR FISCAL IMPACT The Redevelopment Agency will cover approximately $28,000 for the purchase of a ten- year one million dollar pollution legal liability insurance policy out of funds already budgeted for the fiscal yeaz 2010-11 budget. 4-2 .l [.JNE 22, 2010, Item Page 3 ONGOING FISCAL IMPACT There is no ongoing fiscal impact. ATTACHMENTS A. Grant Deed B. General Release Prepared by.' Eric C. Crockett, Redevelopment Manager 4-3 Recording requested by and please return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91912 This instrument benefits City, only. No fee required ^ (This space for Recorder's use, only) ^ Assessor's Parcel Number 624-071-01-00 Chula Vista CIP File No. Graut Deed For valuable consideration, receipt ofwhich is hereby acknowledged, Joseph W. Davies, Trustee of the Davies Familyy Trust dated April 19, 1991 (Grantor), hereby grants to THE CITY OF CHULA VISTA, A MUNICIPAL CORPORATION, the following real propperty situated in the City of Chula Vista, County of San Diego, State of California and more part~culazly described as follows: SEE LEGAL DESCRIPTION DESIGNATED AS EXHIBIT "A" ATTACHED HERETO AND BY REFERENCE MADE A PART HEREOF. Signed this day of Davies Family Trust dated Apri119, 1991 By: By: (Notary Acknowledgment required for each signatory.) 4-4 This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No.15645 of said Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. Donna Norris, CITY CLERK By: Date: 4-5 GENERAL RELEASE 1. In consideration of the conveyance to the City of Chula Vista of the real property described in the attached Exhibit A (the "Propert}~'), receipt of which is acknowledged, the City of Chula Vista ("Releasor"), hereby fully releases and discharges Joseph W. Davies, individually and as Trustee of the Davies Family Trust dated April 19, 1991, and all of the Trust beneficiaries and their successors, heirs and assigns ("Releasees") from any and all losses, liabilities, damages, claims, demands, causes of action, costs and expenses, that Releasor may now or hereafer have against the Releasees, whether known or unknown, with respect to: (a) the nature or condition of the Property (including, without limitation, any design or natural defect of any kind or nature whatsoever), (b) the condition of title to the Property, (c) the fitness for Releasor's intended use and (d) any past, present or future presence or existence of Hazardous Substances on, under or about the Properly or with respect to any past, present or future violations of any rules, regulations or laws, now or hereafter enacted, regulating or governing the use, handling, storage or disposal of Hazardous Substances including, without limitation, (i) any and all rights Releasor may now or hereafter have to seek contribution from Seller under any Hazardous Substances Laws, (ii) any and all claims, whether known or unknown, now or hereafter existing, with respect to the Property under any Hazardous Substances Laws, and (iii) any and all claims Releasor may now or hereafter have against Seller, whether known or unknown, now or hereafter existing, based upon nuisance, trespass or any other common law or statutory provisions. Releasor agrees never to commence, aid in any way, or prosecute against Seller, its agents, employees or affiliates, or its and their respective successors, any action or other proceeding, for any of the matters waived and released herein. Unlrnown Claims 2.(a) Releasor acknowledges and agrees that this release applies to all claims for injuries, damages, or lasses to Releasor's persons and property, real or personal (whether those injuries, damages, or losses are known or unknown, foreseen or unforeseen, or patent or latent) that Releasor may have against Releasees, and Releasor hereby waives application of Califomia Civil Code Section 1542. (b) Releasor certifies that she has read the following provisions of California Civil Code Section 1542: "A general release does not extend to claims which the creditor does not know or suspect to exist in her favor at the time of executing the release, which if known by him must have materially affected her settlement with the debtor." and indicates that fact by signing her initials here: 4-6 (c) Releasor understands and acknowledges that the significance and consequence of this waiver of California Civil Code Section 1542 is that even if she should eventually suffer additional damages arising out of the facts referred to in Paragraph 1, she will not be able to make any claim for those damages. Furthermore, Releasor acknowledges that she intends these consequences even as to claims for damages that may exist as of the date of this release but which Releasor does not know exist, and which, if known, would materially affect Releasor's decision to execute this release, regardless of whether Releasor's lack of knowledge is the result of ignorance, oversight, error, negligence, or any other cause. Executed at Chula Vista, California. Dated: 2010 RELEASOR The City of Chula Vista By: 4-7 RESOLUTION NO. 2010- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT DEED AND APPROVING A GENERAL RELEASE OF LIABILITY FOR AN 8.61 ACRE SITE, ASSESSOR PARCEL NUMBER 624-071-01 LOCATED IN THE OTAY RIVER VALLEY TO BE INCLUDED IN THE OTAY VALLEY REGIONAL PARK WHEREAS, the Davies Family Trust are the sole owners in fee simple of approximately 8.61 acres of real property in the City of Chula Vista, County of San Diego, identified as Assessor Parcel Number (APN) 624-071-01 more particularly described in Exhibit A on file in the office of the City Clerk; and WHEREAS, the Davies Family Trust intends to permanently relinquish all right to develop the property; and WHEREAS, the City of Chula Vista desires the 8.61 acre site to be included in the Otay Valley Regional Park consistent with the Otay Valley Regional Park Concept Plan as may be amended from time to time; and WHEREAS, pursuant to Government Code section 37350 the City of Chula Vista may receive, hold, and enjoy real property for the common benefit of its citizens; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity qualifies for a Class 16 categorical exemption pursuant to Section 15316 [Transfer of Ownership of Land in Order to Create Parks] of the State CEQA Guidelines. Thus, no further environmental review is required. NOW, THEREFORE, BE IT RESOLVED that the City of Chula Vista City Council does hereby, accept the grant deed and approve a general release of liability for an 8.61 acre site, Assessor Parcel Number 624-071-01 located in the Otay Valley Regional Park. Presented by Gary Halbert, AICP, PE ~ Deputy City Manager/Director of Development Services 4-8 Approved as to form by