To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Hookston Station Remediation Project
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute, on behalf of the County, a demolition reimbursement agreement by and among the County, Union Pacific Railroad and the Helix Family Trust (together, the Responsible Parties), under which the Responsible Parties will reimburse the owner of the southernmost building located at 199 Mayhew Way in Pleasant Hill (the Building) for the cost of demolishing the Building as part of the Responsible Parties carrying out a remediation plan that is the subject of Regional Water Quality Control Board Order No. R2-2023-0015, adopted September 29, 2023, with the County’s share of such cost not to exceed $75,000.
2. APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute, on behalf of the County, a building removal compensation agreement by and among the Responsible Parties, under which the Responsible Parties will pay the owner of the Building the fair value of the Building as compensation for its destruction, with the County’s share not to exceed $375,000.
FISCAL IMPACT:
Both the demolition reimbursement agreement and the building removal compensation agreement assign to each of the Responsible Parties the same share of the cost as is assigned to them in a settlement agreement the Responsible Parties entered into in 1997 in connection with the remediation of the subject property. The County’s share of the cost of the demolition reimbursement agreement may not exceed $75,000, and the County’s share of the cost under the building removal compensation agreement is $375,000.
The County’s share is an enforceable obligation of the former redevelopment agency and is paid for by the Redevelopment Property Trust Fund.
BACKGROUND:
In 1989, the former Contra Costa County Redevelopment Agency acquired a portion of former railroad right of way to extend the Iron Horse Trail, among other things. After the County acquired the property, chlorinated solvents were determined to exist in the groundwater. Prior testing had not revealed the presence of contamination. As a result of the discovery of groundwater contamination, in 1992 the County, the Redevelopment Agency, and a group of individuals sued Union Pacific Railroad (then Southern Pacific Transportation Corporation) and other defendants, claiming violations of various environmental laws, along with assorted other claims. In 1997, the parties to the litigation entered into a settlement agreement under which they agreed to share the cost of remediating the contaminated site.
The County-owned land, as well as land owned by an adjacent property owner, is the subject of ongoing remediation efforts under an order adopted by the Regional Water Quality Control Board on September 29, 2023 (the Order). The Responsible Parties’ remediation plan calls for the excavation and removal of impacted soil. The remediation plan, supported by environmental engineers and approved by the Water Board, is intended to accelerate the cleanup effort and shorten the time until the site is released from Water Board oversight.
Much of the soil targeted for removal is inside the southernmost building on the property located at 199 Mayhew Way in Pleasant Hill. In order to reduce the potential for injury to workers and to permit the removal of as much contaminated soil as possible, the parties intend to cause the southernmost building at the site to be demolished. The Responsible Parties have agreed to share the cost of demolishing the building and to compensate the owner of the building for its loss.
CONSEQUENCE OF NEGATIVE ACTION:
If the agreements are not approved, the Responsible Parties will not demolish the Building and will be required to excavate the contaminated soil by working in and around the Building, diminishing the efficacy of the excavation and increasing the potential for harm to workers and damage to the Building.