Fiscal Note
This resolution authorizes the acceptance of two parcels of land for the Central Park project. As the parcels are to be accepted as gifts, no funding is required for land acquisition costs. Some miscellaneous costs will be associated with acquisition of the land. Under the terms of the Offer, the City will obtain title insurance at its cost (Section 4). The estimated cost for both parcels is $1,000. Section 7.c requires the City to pay any and all closing costs including up to $3,000 towards the Grantor’s attorney’s fee. Other closing fees should not exceed $2,000. The Parks Division will also incur modest operating costs for mowing and basic upkeep of the park.
The largest potential fiscal impact is related to environmental remediation of the two sites. As noted in Section 5, the City will take responsibility for the ongoing remediation of the Brearly Street site. This remediation is currently being funded through the State’s Petroleum Environmental Clean-up Fund (PECFA) Account. The rights for this PECFA funding will be assigned to the City, and would include a 5% deductible requirement to be paid by the City. Remediation of the site began in 1995, and the Department of Commerce has paid for $370,500 of cleanup costs so far. At this time, additional costs for site remediation remain unknown. The latest round of sampling in 2009 indicated that the groundwater is still contaminated, and a contaminant was present in one of the wells. In addition, 16 surface soil samples showed that part of the site exceeds direct contact standards. The City has the right to conduct its own environmental investigations including issues related to the PECFA funding, and if not satisfied can be released from the agreement. Staff from the Engineering Division are currently investigating the potential remediation issues, and are recommending a Phase 1 Environmental Site Assessment of the Brearly property.
Funding for capital related costs is a...
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