CALIFORNIA MAYOR. October 22, 2011

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1 BOARD OF-PUBlC WORKS MEMBERS ANDREA A. ALARC6N PRESDENT CAPR W. MADDOX VCE PRESDENT VALERE LYNNE SHAW PRESDENT PRO TEMPORE CTY OF Los ANGELES CALFORNA JERLYN L6pEZ MENDOZA COMMSSONER ANTONO R. VLLARAGOSA STEVEN T. NUTTER COMMSSONER MAYOR October 22, 2011 OFFCE OF THE BOARD OF PUBLC WORKS 200 NORTH SPRNG STREET ROOM 361, CTY HALL LOS ANGELES, CA (213) (213) Fax ARLEEN P. TAYLOR EXECUTVE OFFCER {.'J #1 BOS City Council Room No. 395 City Hall Subject: REQUEST THAT THE 7765 SQUARE FEET (0.178 ACRES) OF THE CTY- OWNED PROPERTY AT 2110 NORTH SAN FERNANDO ROAD BE DECLARED AS SURPLUS PROPERTY AND DRECTLY SOLD TO THE GLENDALE KA CAR DEALERSHP As recommended in the accompanying report of the Director of the Bureau of Sanitation, which this Board has adopted, the Board of Public Works requests that the 7765 square feet (0.178 acres) of the City-owned property located at 2110 North San Fernando Road (APN and ) be declared surplus property and sold directly to the Glendale Kia Car Dealership for the reasons set forth in the report. FSCAL MPACT ~ According to research by staff from the Office of the City Administrative Officer and the Department of General Services, the proposed surplus property was purchased using Sewer Capital Fund Account No. SAU 8. Proceeds from the sale of the property will be deposited in the Sewer Construction Maintenance Fund. There will be no fiscal impact to the General Fund. Respectfully submitted, APT:mp! ;.. J") 1 "L 1,?j Arleen P. Taylor, Executive Officer Board of Public Works cc: Mayor Antonio Villaraigosa Attention Mandy Morales AN EQUAL EMPLOYMENT OPPORTUNTY - AFFRMATVE ACTON EMPLOYER Recyclable and made from recycled

2 DEPARTMENT BUREAU OF SANTATON BOARD REPORT 1 October 22, 2012 OF PUBLC WORKS AND REf ADOPTED BY THE BOARD PUBLC WOHKS OF THE CTY llilo.sjogeles California ERRED m THE CTY COUNCil CD: 1 REQUEST THAT THE 7765 SQUARE FEET (0.178 ACRES) OF THE CTY-OWNED PROPERTY 2110 N. SAN FERNANDO ROAD BE DELCARED AS SURPLUS PROPERTY AND DRECTL V. SOLD TO THE GLENDALE KA CAR DEALERSHP RECOMMENDATONS 1. Recommend to the City Council and Mayor that the City-owned property 7765 square feet (0.178 acres) at 2110 N. San Fernando Road (APN and ) be declared surplus property and allowed to be sold directly to the Glendale KA Car Dealership 2. Request General Services Department-Real Estate Division (GSD-Real Estate) appraise the property TRANSMTTALS 1. Legal Description and map of sale parcel 2. Aerial view of subject property and surrounding area 3. Map of location of current SVE system arid monitoring wells 4. Map of locations of borings and monitoring wells installed during the Total Petroleum Hydrocarbon-gas (TPH-g) investigation BACKGROUND The City-owned property is located at 2110 N. San Fernando Rd. Los Angeles, CA The property is an industrial site that is comprised of two parcels and four separate lots. The Bureau of Sanitation (BOS) purchased the 1.12 acre property in 2001 with the intent to use it as shaft site for the retrieval of large tunneling equipment during the construction of the North East nterceptor Sewer Phase and Phase (NElS- and NES1). The construction of NElS- was completed in 2005 and the construction of NES~ is scheduled to begin in The property is unoccupied except for a billboard located at the southern end of property, The property is located in Council District 1 and is zoned QM1-1.

3 Bureau of Sanitation Board Report No.1 October 22, 2011 Page 2 The two lots have the following APN and addresses: Street Address APN# Area 2110 N. San Fernando Rd 24,368 sq ft (0.559 ac) Parcel N. San Fernando Rd Parcel ,330 so ft (0.559 ac) Lot sq. ft (0.121) Lot sq. ft (0.116) Lot sq. ft (0.110) Lot sq. ft (0.105) Unnumbered lot 4659 sq. ft (0.107) Total 48,699 sq. ft (1.12 ac) The purchase price of the property was $1,162, and was funded through the Sewer Construction Maintenance Fund (SCM). Discussion n February 2012, the Glendale KA car dealership (KA; owner, Onnik Mehrabian) requested the City sell approximately 6000 square feet of the NElS shaft site (Site) property to the dealership in order to expand its showroom and car storage area. The Glendale KA car dealership is located directly north of, and adjacent to, the City property at 2242 San Fernando Road. The KA property is acres and the dealership is currently leasing 22,628.6 sq. ft (0.519) acres of the northernmost portion of the City property. The City and the KA dealership entered into a lease agreement which is set to expire on August, 1, in 2006, LAUSD purchased the property at 2050 N. San Fernando Road in order to build Los Angeles Central Regional High School #13 (LACRHS #13). The City property and the KA dealership share their westernmost border with LACRHS #13. The City granted LAUSD a permanent easement at the southern tip of the property (approx acres) to build a right hand turn lane into the high school. The total area of the City property that will remain after the sale of the property to KA, and the loss of use of the right hand turn lane area, is 35,719.2 sq ft. (0.82 ac). The Bureaus of Sanitation and Engineering have determined that the remaining portion of the property is sufficient to be used as a shaft site during the construction of NES~!!,

4 Bureau of Sanitation 80ard Report No. 1 October 22, 2011 Page 3 The City property, including the portion that is to be sold to KA, is undergoing an active soil and soil gas remediation project. Prior to the City purchasing the NElS Shaft Site in 2001, the property was used for multiple industrial businesses which included a metal finishing company and a tire company for approximately 40 years. Metal finishing and production of metal and plastic products resulted in contamination of the soil and soil gas with Volatile Organic Compounds (VOCs) including Trichloroethylene (TCE), Tetrachloroethylene (PC E) and also high levels of Total Petroleum..Hydrocarbons-gas (TPH-g). The City purchased the property from the Baldwin Family Trust with the knowledge that the property had been used for industrial purposes and the projected remediation costs were reflected in the reduced purchase price. After construction of NElS, the site was partially remediated. Total Recoverable Petroleum Hydrocarbon (TRPH) impacted soil was removed and replaced with clean soil at the end of NElS construction in Regional Water Quality Control Board (RWQCB) granted the City case closure for removal of two Underground Storage Tanks (USTs) at the Site, however, no closure order was issued for removal of the VOCs. The City planned to complete the VOC remediation during the construction of NESlL KA is aware of the contamination and onqolnq remediation at the Site, and has been cooperative during the investigation and remediation activities. The City expects for the remediation and groundwater monitoring to continue at least until September 2013, and groundwater monitoring may be required for an additional year. BOS recently completed a study to determine the source of the elevated levels of TPH-g found in some of the soil gas samples collected at the site. At least one soil boringgroundwater monitoring well will be placed on the potential sale parcel and there are currently two soil vapor monitoring wells and one groundwater monitoring well located on the potential sale property. BaS recommends that GSD-Real Estate include a no-liability clause in. the sale agreement which states that KA will not hold the City liable for any claims arising from the contamination at the Site, and also require that KA grant the City a permanent easement in order to access the wells on the KA property. n addition, 80S recommends GSD-Real Estate include a statement in the documents that will require KA to continue remediating VOCs and TPH-g, at their cost, according to the approved workplan provided by Brown and Caldwell. Remediation shall continue until case closure is received by the RWQCB and any other regulatory agency providing oversight of the remediation activities. REASON FOR REPORT The Council District 1 office and the community support the expansion of the KA Dealership as it is a large economic contributor to the Eagle Rock neighborhood and is a deterrent to criminal activity. BOS and BOE both agree to sell the property. General Services Department- Real Estate Division will conduct a property appraisal to determine the fair market value of the property.

5 Bureau of Sanitation Board Report No. 1 October 22, 2011 Page 4 FURTHER ACTONS 80S and GSD will prepare and forward a joint report to City Council and Mayor for the declaration of supplies and sale of property. FSCAL MPACT STATEME~r According to research by staff from the Office of the City Administrative Officer and the Department of General Services, the proposed surplus property was purchased using Sewer Capital Fund Account No. SAU 8 Proceeds from the sale of the property will be deposited in the Sewer Construction Maintenance fund. There will be no fiscal impact to the General Fund. Report Prepared By: Stephanie Roberts, WESD (323)

6 TRANSMTTAL 1 EXHBT "A" LEGAL DESCRlPTON: Lots 23, 24, 25 and 26 of Salzgeber Home Tract No.2, in the City of Los Angeles, County of Los Angeles, State of California, as per map recorded in Book 10, page 193 of Maps, in the Office of the County Recorder of said county, together with that portion of the Rancho San Rafael, said land bounded and described as follows: Beginning at the intersection of the southwesterly prolongation of the southeasterly line of said Lot 26 with the easterly line of the right of way of the Southern Pacific Railroad ( feet wide); thence along said easterly line, North 34 06' West feet to the southwesterly prolongation of the northwesterly line of said Lot 23; thence North 57 39' East along said last mentioned prolongation and along said northwesterly line to the most northerly corner of said Lot 23, being a point in the westerly line of San Fernando Road, feet wide; thence along the northeasterly boundary of said Salzgeber Home Tract No. 2, and westerly line said San Fernando Road, as shown on City Engineer's Field Book 7401 pages 20 and 21, on file in the office of the City Engineer of said City of Los Angeles, as follows: South 26 45' East approximately feet to an angle point therein and South 19 32' 30" East to a line that is parallel with and distant feet northwesterly from the southwesterly prolongation of the City Engineer's center line of that portion of Division Street being shown as feet wide on the map of Tract No. 3867, recorded in Book 44, Pages 20 and 21 of said maps, said feet being measured along the easterly line of the right of way of the Southern Pacific Railroad, feet wide; thence southwesterly along said parallel line to the easterly line of said Pacific Railroad right of way; thence northwesterly along said easterly line to the point of beginning. Except therefrom that parcel of land described as follows: Lot 23 and that portion of Lot 24 of Salzgeber Home Tract No. 2, in the City of Los Angeles, County of Los Angeles, State of California, as per map recorded in Book 10, Page 193 of Maps, in the office of the County Recorder of said County, together with that portion of the Rancho San Rafael, said land being described as a whole as follows: Beginning at the northerly comer of said Lot 23 also being a point on the westerly line of San Fernando Road, feet wide, as shown on said Salzgeber Home Tract No.2; thence along said westerly line South 26 45' East feet; thence parallel with the northwesterly line of said Lot 23, South 57 39' West to the easterly line of the Southern Pacific Railroad Right-of-Way ( feet wide) as shown on said Salzgeber Home Tract No, 2; thence along said easterly line North 34 06' West to the southwesterly prolongation of said northwesterly line of said Lot 23; thence along said southwesterly prolongation and along said northwesterly line North 57 39' East to the point of beginning. Containing 40,934 square feet more or less, as calculated from existing maps.

7 Together with all rights, title and interest of the Grantors in and to the street areas adjoining said land. SUBJECT TO COVENANTS, conditions, restrictions, exceptions, reservations, easements, rights and right of way of record. Page 2 of2

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9 i::> AREA ~ 776 )36. FT. "'i'. ' -: -,. "... D_M_ T_G. C.D G3 1 NTS EXHBT MAP DEPARTMENT OF PUBUC WORKS BUREAU OF ENGNEERiNG SURVEY DMSON Gary lee Moore, P.E., City Engineer

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