Environmental Report for Old Sunoco Station @ Chardon Road and Richmond Road

The following is summary of the environmental testing completed on the old Sunoco station at the corner of Chardon Road and Richmond Road.  The summary also provides an overview of the known levels of contamination and the potential sources of continued contamination.

Date:            December 6, 2011

RE:             Analysis of Status of 26102 Chardon Road (formerly Ron's Auto Service)

I.       General Background

The property at issue is 26102 Chardon Road (PPN 661-06-034), containing approximately one-half acre of land. It is currently owned by the Estate of Mr. Ronald Gerhardstein (deceased) who operated Ron's Auto Service and Ron's Amoco on the property. Mr. Gerhardstein, prior to his death, filed for personal bankruptcy, and during the course of the bankruptcy proceedings, the Trustee attempted, unsuccessfully, to sell the property (both to the City and private entities). Because the property brought no value to the bankruptcy estate, the Trustee abandoned the property and ownership still remains with Mr. Gerhardstein's Estate. The property has not been used since 2006.

II.      Current Environmental Conditions

In April 2007, HzW Environmental Consultants, LLC ("HzW") conducted a Phase I Environmental Site Assessment on the property at the request of the Bankruptcy Trustee.     HzW found the following "recognized environmental conditions" on the

property:¹

1.  The historic contamination identified at the property associated with the leaking former underground storage tanks (USTs) removed from the property in April 1993.

2.             The leach field of the septic tank system located on the southwest portion of the property which likely received hazardous materials and/or petroleum products entering through the floor drain in the garage.

3.             The historic presence of two hydraulic lifts which were previously located below grade at the property, which likely leaked hazardous material or petroleum products into the property through the concrete floor that is in poor condition.

4.             The three newer fiberglass gasoline USTs installed in 1993 located southwest of the building on the property, for which there is no evidence of leaking at this time.

5.             The undocumented removal of a 1,000-gallon kerosene UST from the northeast portion of the property.

6.             The potential presence of a 1,000-gallon waste oil UST on the northeast portion of the property.

In 1993, there was a leak incident reported to the Ohio State Fire Marshal's Bureau of Underground Storage Tank Regulations (BUSTR) related to former gasoline USTs on the property. The tanks were then removed and a series of environmental assessments were conducted to determine the extent of the contamination, resulting in 25 monitoring wells and 21 soil borings (a "Tier 2" and "Tier 3" Evaluation).

At the time of HzW's Phase I Assessment, the Tier 2 Evaluation had not yet been completed. As far as HzW could ascertain, the last communications between BUSTR and Mr. Gerhardstein's remediation contractor, BJAAM, occurred in 2004 when BJAAM proposed to remove 297 tons of soil from the property to remediate the contamination from the known leak. Although BUSTR appears to have provided preliminary approval for the removal of the soil, it is unclear if BUSTR deemed that to be complete and sufficient remediation of the contamination. Nonetheless, it appears that the soil removal was never accomplished and no further monitoring occurred on the site. Thus, the Phase I report lists the historical contamination as a recognized environmental condition on the property, but could not further define the extent of the contamination.

The old USTs were replaced in 1993 with new fiberglass USTs that still remain on the property.

III.   Necessary Activities and Costs

In January 2009, the City consulted with HzW with respect to environmental assessments and remediation of the property that would be necessary if the City were to obtain ownership of the property.²   HzW advised the City of the following:

1.      Prior to demolishing the existing building, an asbestos survey would be required.

2.              The City would have to complete a Phase II Environmental Site Assessment. (It is also known that the Phase I Assessment is stale at this point and would have to be updated.)

3.             The property would have to come into compliance with BUSTR regulations by doing the following:

a.    Completing the Tier 2 and/or Tier 3 Environmental Assessmentassociated with the USTs already removed from the property.

b.    Completing after-the-fact UST closures of the two USTs previouslyremoved from the property without the fully completed proper closuredocumentation.

c.    Proper removal of the three USTs that currently remain on theproperty.

4.   Environmental impact studies should be conducted on the subsurface areasassociated with the two hydraulic lifts and the on-site septic system toascertain whether any associated remediation is needed.

HzW estimated that the total cost for the above-listed activities (not including the cost of demolition of the building) would range from $50,600 to $78,800, with the removal of the existing tanks as the largest expenditure ($25,000 to $35,000).³ However, these figures do not include the cost for actual ground water or soil remediation that becomes necessary based upon the results of the assessments and studies conducted. (Note that the records confirm that there is identified soil contamination from a previous tank leak.) Additionally, HzW included an estimate of several thousands of dollars for preparation of applications for state and county grants to offset the above-mentioned costs.