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Offer to Purchase - 2252 Fairview Avenue - 2017-06-01 SANITA4,y Costa Mesa Sanitary District wS�' 4 o fiiii ...an Independent Special District 4ty June 1, 2017 Mike Johnson 2252 Fairview Avenue Costa Mesa, CA 92627 RE: Offer to Purchase Property Board of Directors Michael Scheafer Dear Mike: James Ferryman Arlene Schafer On behalf of the Board of Directors of the Costa Mesa Sanitary Robert Ooten Arthur Perry District (CMSD) I want to thank you for negotiating in good faith for the acquisition of your property CMSD does hereby offer to purchase your property at 2252 Fairview Avenue, Costa Mesa, for Staff $1,690,000, subject to the following: Scott C.Carroll General Manager 1. District must do an environmental analysis (CEQA) and make a finding. Robin B.Hamers 2. District will obtain a general plan conformance finding from the City District Engineer of Costa Mesa, obtain other zoning approvals as necessary, will Alan R.Burns adopt a formal resolution approving the sale and obtain any other District Counsel government permits necessary. 3. The usual title and soils review; review of physical condition of the Marcus D.Davis property, including structures (termites, dry rot, fungus, etc.). Treasurer 4. Escrow and standard instructions. 5. Proration of taxes and insurance. Noelani Middenway 6. Mutually agreed-upon Purchase and Sale agreement to be District Clerk prepared by District. 7. Escrow to close in September 2017 and Seller can have until the Wendy H. Davis end of December 2017 to wind down his operations and vacate the Finance Manager property. If the above represents the outline of our agreement please sign below. www.cmsdca.gov 4.1 idigiiial rike °M..on, Property Owner ike Scheaf'-r, President 2252 Fairview Avenue Costa Mesa Sanitary District .,_G District of Distinction 290 Paularino Avenue /Costa Mesa,CA 92626-3314• (949) 645-8400 / fax:(949) 650-2253 2009-2017 Protecting our community's health and the environment by providing solid waste and wastewater collection services r National Environmental Co • Services eDetics, Inc. . Environmental Consulting & Engineering Services PHASE I ENVIRONMENTAL SITE ASSESSMENT _ . -,,,,,,,ii',': � ,fix' u'�^� : a ir,� �, � � ?s t 2 s: :.„: r ' '�r.,y * ..Y. ,: a"2 ,a '3c `-a 's. '':-.:;5;'f'41414.-1 s '$-`�w � m fir. ax " c t, • F i i . Hi 1 Ca CRA rE s 2252 FAmvu w ROAD COSTA MESA,CALIFORNIA 92626 EDI Project No.26-0154 June 2,2006 Prepared for: EnviroDetics,Inc. 8350 Wilshire Boulevard . TELESIS COMMUNITY CREDIT UNION suite 200 do ja Beverly Hills,CA 90211 Phone:310.832.2300 � $ i � � Toll �►..rew.sw�..iL FFree:ax: 38°110..368623..88841837 9301 WINNETKA AVENUE CHATSWORTH,CA 91311 Detics, Inca 8350 �° FAX 310-362-8843 Environmental Consulting & Engineering Services TE-31o832- wwFame„ rodetics.com June 2,2006 RE: Phase I Environmental Site Assessment Hitch Crafters 2252 Fairview Road Costa Mesa,California,92626 EDI Project No. 26-0154 Dear Ms.Cooper: Pursuant to our agreement dated May 23, 2006, EnviroDetics, Inc. ('EDI") has conducted a Phase I Environmental Site Assessment (ESA) of the above referenced property conforming to the scope and limitations of ASTM Standard E 1527-00. The findings of this assessment are based upon a visual reconnaissance of the Subject Property, interviews with relevant personnel, limited observations of surrounding properties, and a records review including regulatory databases and historical use information. Any exception to,or deletions from,this practice are described in Sections 2.0-2.4 of this report The purpose of this Report is to assist Telesis Community Credit Union do Business Partners, LLC in its underwriting of a proposed mortgage loan on the Subject Property described herein. Telesis Community Credit Union do Business Partners, LLC, its employees,agents,successors and assigns may rely upon this Report in evaluating a request for an extension of credit to be secured by the Subject Property. This Report may also be used and relied upon by(a)any additional lender extending credit to be secured by the Subject Property(the credit to be extended by Telesis Community Credit Union do Business Partners, LLC , and such additional lender is referred to as the "Mortgage Loan") and (b) anyactual or ptiVe purchaser, transferee, assignee, or servicer of the Mortgage Loan(or any portion thereof), any actual or prospective investor(including agent or advisor)in any securities evidencing a beneficial interest in orbacked by the Mortgage Loan(or any portion thereof),any rating agency actually or prospectively rating aany such securities, any indenture trustee,and any institutional provider(s)from time to time of any liquidity by or creditsupport for such financing. In addition, this Report or a reference to this Report may be included or quoted in any offering circular, private placement memo Prospectus and EDI registration statement or agrees to cooperate in answering questions by any of the above parties in connection with a securitization or transaction involving the Mortgage Loan (or any portion thereof)and/or such securities. This Report has no other purpose and should not be relied upon by any other person or entity." There are no intended or unintended third party beneficiaries to this Report,except as expressly stated herein. EDI is an independent contractor,not an employee of either the issuer or the borrower,and its compensation was not based on the findings or recommendations made in the Report or on the closing of any business transaction. If you have questions regarding information in this report or if we can be of further assistance,please contact the undersigned at 310-832-2300. We appreciate the opportunity to be of service to you,our valued client, and look forward to working with you on future assignments. Respectfully Submitted, ENVIRODETICS,INC. Darrin A.Domingo,MBA,REA II,CHMM California Registered Environmental Assessor—Class II(REA II)-No.20224 Certified Hazardous Materials Manager,National,Master Level-No. 11546 niirirrewDetics,Inc. (IYNwr.rLM c.,...*i twor..wr,MI.I... 8350 Wilshire Blvd.,Suite 200,Beverly Hills,CA 90211 Tel:310-832-2300 Fax:310-362-8843 www.envirodetics.com 2252 Fairview Road IDI Project No.26-0154 Costa Mesa,California TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY 1 2.0 INTRODUCTION ...»..»...... .»».»».............».»»»». 2 2.1 PURPOSE 2 22 SPECIAL TERMS AND CONDITIONS 2 23 LIMITATIONS AND EXCEPTIONS OF ASSESSMENT 3 2.4 SCOPE OF SERVICES AND METHODOLOGY USED 3 3.0 SITE DESCRIPTION OVERVIEW -»5 3.1 PROPERTY LOCATION 5 3.2 SUBJECT PROPERTY AND VICINITY CHARACTERISTICS 5 4.0 PHYSICAL SETTING.......»..»... ».».6 4.1 GEOLOGIC CONDITIONS 6 4.2 HYDROLOGIC CONDITIONS 6 4.3 OIL&GAS EXPLORATION 6 5.0 HISTORICAL RECORDS REVIEW.».».»»». .. ..».-........»....... _ 7 5.1 AERIAL PHOTOGRAPHS 7 52 FIRE INSURANCE MAPS 7 53 TOPOGRAPHIC MAPS 8 5.4 LOCAL STREET DIRECTORIES 8 5.5 OTHER HISTORICAL INFORMATION 9 6.0 SUBJECT PROPERTY RECONNAISSANCE- 10 6.1 METHODOLOGY&LIMITATIONS 10 62 INTERVIEWS 10 63 GENERAL SUBJECT PROPERTY CONDITIONS 10 6.4 INTERIOR OBSERVATIONS 11 6.5 EXTERIOR OBSERVATIONS 12 6.6 WASTE MANAGEMENT AND REGULATED MATERIALS 12 6.7 STORAGE TANKS 12 6.8 POLYCHLORINATED BIPHENYLS(PCBs) 13 6.9 UTILITIES 13 6.10 ASBESTOS CONTAINING MATERIAL(ACM) 14 6.11 LEAD-BASED PAINT(LBP) 14 6.12 RADON 14 6.13 LEAD IN DRINKING WATER 15 7.0 REGULATORY RECORDS REVIEW .»....» ......... 16 7.1 FEDERAL AND STATE REGULATORY REVIEW 16 72 LOCAL REGULATORY REVIEW 20 8.0 FINDINGS AND CONCLUSIONS ».»....».........».......».»»„..... .»».».»»..».».»»».»21 APPENDICES Appendix A: Photographs Appendix B: Maps&Figures Appendix C: Computerized Environmental Report Appendix D: Supporting Documents Appendix E: Personnel Profiles/References • • 2252 Fairview Road EDI Project No.26-0154 Costa Mesa,California PHASE I ESA SUMMARY Hitch Crafters 2252 Fairview Road Costa Mesa,CA 92626 Routine Assessment Component Acceptable Solution Phase II Estimated Cost Historical Review 1 On-site Operations X Hazardous Materials X Waste Generation X PCBs X Asbestos X Lead in Drinking Water X Storage Tanks X Surface Areas X Regulatory Database Review X Adjoining Properties X Other This amt has revealed no evidence of current Recognized Environmental Conditions(RECs)in connection with the Subject Property and no further action is recommended at this time;however,the following pertinent enviromnental information warrants mention: I)Former Onsite Service Station Based on our review,the Subject Property was developed with a gasoline service station from approximately 1968 to 1990. The former onsite tenant; Chet's Shell, had one leak incident (Case No. 0830016111) which was discovered in June 1990 during tank closure and removal activities. Chet's Shell utilized the following USTs: one 8,000-gallon fuel tank,one 6,000-gallon fuel tank,two 4,000-gallon fuel tanks and one 300-gallon waste oil tank. Based on our review and interviews,the USTs were removed in June 1990 at which time a leak incident involving waste oil was discovered. After remediation activities via soil vapor extraction,air spa ging and pump and treat methodology from April 1998 to September 2003,the site was subsequently granted a Case Closed status by the Santa Ma Regional Water Quality Board(RWQCB)in January 2004. A Case Closed status indicates that either the site does not exhibit levels of contamination which warrant remedial action,or the contamination has been remediated to the satisfaction of the RWQCB. Based on its status, EDI does not suspect that the former leak incident poses a significant negative environmental impact to the Subject Property. . 2252 Fairview Road EDI Project No.26.0154 Costa Mesa,California 1.0 EXECUTIVE SUMMARY EnviroDetics, Inc. ("EDI") has performed a Phase I Environmental Site Assessment (ESA) of 2252 Fairview Road, City of Costa Mesa, Orange County, California on May 25, 2006 (herein referred to as the"Subject Property")which consists of an approximately 46-year-old, 1,147-SF commercial building on a E0.34-acre parcel of land. The current onsite tenant is a retailer and installer of trailer hitches for automobiles. Prior to the existing improvements, the Subject Property was vacant land from at least 1927. to 1960 followed by a former gasoline service station from at least 1968 to 1990. The Phase I Environmental Site Assessment is designed to provide Telesis Community Credit Union do Business Partners, LLC with an assessment concerning environmental conditions (limited to those issues identified in the report) as they exist at the property. This assessment was conducted utilizing generally accepted ESA industry standards in accordance with ASTM E 1527-00,Standard Practice for Environmental Site Assessments: Phase 1 Environmental Site Assessment Process. Exceptions to or deletions from the scope of work are described in Section 2.0. This assessment has revealed no evidence of current Recognized Environmental Conditions (RECs) in connection with the Subject Property and no further action is recommended at this time; however, the following pertinent environmental information warrants mention: • Former Onsite Service Station Based on our review, the Subject Property was developed with a gasoline service station from approximately 1968 to 1990. The former onsite tenant,Chet's Shell,had one leak incident(Case No. 0830016111)which was discovered in June 1990 during tank closure and removal activities. Chet's Shell utilized the following USTs: one 8,000-gallon fuel tank,one 6,000-gallon fuel tank,two 4,000- gallon fuel tanks and one 300-gallon waste oil tank Based on our review and interviews,the USTs were removed in June 1990 at which time a leak incident involving waste oil was discovered. After remediation activities via soil vapor extraction, air sparging and pump and treat methodology from April 1998 to September 2003,the site was subsequently granted a Case Closed status by the Santa Ana Regional Water Quality Board(RWQCB)in January 2004. A Case Closed status indicates that either the site does not exhibit levels of contamination which warrant remedial action, or the contamination has been remediated to the satisfaction of the RWQCB. Based on its status,EDI does not suspect that the former leak incident poses a significant negative environmental impact to the Subject Property. 1 2252 Fairview Road EDI Project Na 26-0154 Costa Mesa,California 2.0 INTRODUCTION EDI was retained by Telesis Community Credit Union do Business Partners, LLC to prepare a Phase I Environmental Site Assessment, in compliance with ASTM Standard Practice E1527-00 on the Subject in accordance with our agreement dated May 23,2006. 2.1 PURPOSE The purpose of this report is to assess the Subject Property for evidence of recognized environmental conditions in accordance with the provisions of ASTM Standard E 1527-00. The term "recognized environmental condition" as defined by ASTM means "the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate an existing release, a past release,or a material threat of a release of any hazardous substances or petroleum products into structures on the property or onto the ground, ground water, or surface water of the property." A material threat is "a physically observable or obvious threat which is reasonably likely to lead to a release that is threatening and might result in impact to public health or the environment" An REC may include hazardous substances or petroleum products even under conditions in compliance with laws. A historical recognized environmental condition as defined by ASTM includes "environmental conditions which in the past would have been considered an REC, but which may or may not be considered an REC currently"based on remediation of the REC. 2.2 SPECIAL TERMS AND CONDITIONS There is a possibility that even with the proper application of these methodologies there may exist on the Subject Property conditions that could not be identified within the scope of the assessment or which were not reasonably identifiable from the available information. EDI believes that the information obtained from the record review and the interviews concerning the site is reliable. However,EDI cannot and does not warrant or guarantee that the information provided by these other sources is accurate or complete. The methodologies of this assessment are not intended to produce all inclusive or comprehensive results, but rather to provide Telesis Community Credit Union do Business Partners,LLC with information relating to the Property. The conclusions and findings set forth in this report are strictly limited in time and scope to the date of the evaluations. The conclusions presented in the report are based solely on the services described therein, and not on scientific tasks or procedures beyond the scope of agreed-upon services or the time and budgeting restraints imposed by Telesis Community Credit Union do Business Partners, LLC. No subsurface exploratory drilling or sampling was done under the scope of this work Unless specifically stated otherwise in the report,no chemical analyses have been performed during the course of this ESA.Some of the information provided in this report is based upon personal interviews,and research of available documents,records,and maps held by the appropriate government and private agencies.This is subject to the limitations of historical documentation,availability,and accuracy of pertinent records,and the personal recollections of those persons contacted. The ASTM Standard E1527-00 does not encompass analytical testing to evaluate asbestos containing materials(ACM),radon,lead-based paint(LBP),drinking water quality,indoor air quality,stored chemicals, debris, fill materials, surface water, or subsurface samples (soil and groundwater) as part of a Phase I Environmental Site Assessment Report. 2 2252 Fairview Road IDI Project No.26-0154 Costa Mesa,California 23 LIMITATIONS AND EXCEPTIONS OF ASSESSMENT The purpose of this report is to assess the Subject Property with respect to the presence of hazardous substances or petroleum products in accordance with the provisions of ASTM StandardE 1527-00. The conclusions presented in this report are professional opinions,based solely upon visual observations of the Subject Property and vicinity and our interpretation of the available historical information and documents reviewed as described in this report. They are intended exclusively for the purpose outlined herein and for the Subject Property location and project indicated. EDI is a technical not legal firm,as such we offer no opinion as to the legal aspects of environmental compliance (permitting,remediation, etc.)and anyone relying upon this report should have this ESA reviewed by counsel regarding any legal issues. This report is intended for the sole use of Telesis Community Credit Union do Business Partners, LLC. The scope of services performed in execution of this investigation may not be appropriate to satisfy the needs of other users,and any use or reuse of this document or the findings,and conclusions,presented herein is at the sole risk of said user. It should be recognized that this study was not intended to be a definitive investigation of contamination at the Subject Property. It is possible that currently unrecognized contamination may exist at the Subject Property. Opinions presented herein apply to Subject Property conditions existing at the time of our investigation and those reasonably foreseeable. They cannot necessarily apply to Subject Property changes of which EDI is unaware and has not had the opportunity to evaluate.Additional information that becomes available after our survey and draft submission concerning the Subject Property should be provided to EDI so that our conclusions may be revised and modified if necessary, at additional cost. This Report has been prepared in accordance with our Standard Conditions for Engagement,which is an integral part of this Report This Phase I Environmental Site Assessment Report was performed in accordance with applicable,generally accepted environmental consulting practices currently practicing in the same locality under similar conditions, and utilizing methods and procedures consistent with established retail practices and in conformance with industry standards. The findings and conclusions contain all of the limitations inherent in these methodologies that are referred to in ASTM 1527-00. 2.4 SCOPE OF SERVICES AND METHODOLOGY USED The scope of services included the following: • A site reconnaissance to characterize on-site conditions and assess the site's location with respect to surrounding property uses and natural surface features. In addition,the reconnaissance of the surrounding roads and readily accessible properties to identify obvious potential environmental conditions on neighboring properties was conducted. Photographs taken as part of the site reconnaissance are provided in Appendix A. • Interviews with persons familiar with the property to obtain information on present and previous on-site activities potentially resulting in the environmental degradation of the site or adjoining properties. • A review and interpretation of readily available historical documents, such as topographic maps, aerial photographs, city directories, Sanborn Maps and atlases, to identify previous activities on and in the vicinity of the Subject Property. Copies of these documents are included in Appendix B. • A review of readily available environmental databases maintained by the USEPA, state, and local agencies within the approximate minimum search distance described within the Regulatory Review 3 2252 Fairview Road EDI Project No.26.0154 Coeur Mesa,California Section of this report provided by GeoSearch. A copy of the Computerized Environmental Report(CER), prepared by GeoSearch has been provided in Appendix C. • Conducting a visual survey of readily accessible common areas to identify suspect ACM. This limited survey is not to be construed as a comprehensive asbestos survey,which often entails destructive testing or the survey of areas behind walls, above ceilings, in tenant spaces and in other typically inaccessible areas.Moreover,IDI does not warrant that all asbestos containing materials at the Subject Property have been identified • Reviewing published radon occurrence maps to determine whether the Subject Property is located in an area with a propensity for elevated radon concentrations. • An analysis of mold and/or mold issues were beyond the scope of this report. • Assessing the age of the Subject Property to determine whether it is predisposed to contain lead-based paint. During our walkthrough survey,EDI noted the condition of the paint observed. 4 2252 Fairview Road EDI Project No.26-0154 Costa Mese,California 3.0 SITE DESCRIPTION OVERVIEW 3.1 PROPERTY LOCATION The Subject Property is located at 2252 Fairview Road,City of Costa Mesa,Orange County,California. Refer to the Site Location Map below: U Lam'= it L` 1 40.y0 Li .flu it T • Vlaanova Rai �'. 1131:1� samm!dor•m i v ,_ Ci4� i S � rr r1 � •�ti�t`s:Q �{ Id )��� 1 rte► ( 9-----�� -'i. �n..:: ; • jooann 1" lin MG 0 raid v SOIlr.7i f r 9��`Sa �. ,�O i i . ,,a•� �' o —III tit AvocA' St / "` °';v i • •� Victoria St � •L` ``i Ail,. ,f ' •-`:sJ Ratoatn 4 , - Hamilta 1St f) /, f s.',..--rZr'. ` aE", lei.0 Site Location Map 3.2 SUBJECT PROPERTY AND VICINITY CHARACTERISTICS The Subject Property is located in a suburban area characterized by a mixture of commercial office,retail and residential development. The following is a tabulation of surrounding property usage: Direction Adjoining Properties Surrounding Properties North An electrical substation is located Retail development is located beyond. adjacent to the north. South W.Wilson Road followed by retail Additional retail development is located development is located adjacent to the beyond. south. East Vacant land is located adjacent to the Retail and commercial office development is east. located beyond. West Fairview Road followed by retail Residential development is located beyond development is located adjacent to the west. No adverse surficial environmental conditions were observed on the adjoining and surrounding properties. Surrounding properties of environmental concern are discussed in Section 7.0,if any. 5 2252 Fairview Road IDI Project No.26-0154 Costa Mena,California 4.0 PHYSICAL SETTING Information regarding hydrological conditions in the region was obtained from review of a United States Geological Survey (USGS) 7.5 Minute Topographic Map and review of United States Department of Agriculture(USDA)Soil Conservation reports. 4.1 GEOLOGIC CONDITIONS The United States Geological Survey(USGS),Newport Beach, California 7.5-Minute series topographic map was reviewed for this ESA. This map was published by the USGS in 1965 and photo-revised in 1981. According to the contour lines on the topographic map,the Subject Property is located at approximately 79 feet above mean sea level.The contour lines in the area of the Subject Property indicate the area is sloping gently downward to the northeast. Sheet runoff flows topographically to the municipal stormwater system within the abutting streets. Orange County provides a diverse combination of mountains, hills, flatlands, and shorelines. Orange County lies predominantly on an alluvial plain,generally less than 300 feet of elevation in the west and central sections. Several low-lying mesas interrupt the plain along the northern coast. The plain is semi- enclosed by the Santiago Foothills and the Santa Ana Mountains,which rise to 5,600 feet on the east,the Puente and Chino Hills in the north,and the San Joaquin Hills to the south.Orange County is located in a highly seismic area. Active faults that traverse the Orange County region include the El Modeno Peralta Hills Fault,the Elsinore Fault Zone,the Los Alamitos Fault,and the Newport-Inglewood Fault Zone. The soils generally consist of nearly level to moderately sloping,well drained sandy loans,loans,or clay loans within alluvial fans and floodplain and strongly sloping to steep, well-drained clays in coastal foothills. 4.2 HYDROLOGIC CONDITIONS Under natural,undisturbed conditions,shallow groundwater flow generally follows the topography of the land surface and on this basis;the topography suggests that groundwater flow across the site is in a northeastern direction. However, localized conditions can alter flow directions and thus the expected flow may not coincide with actual groundwater flow in the subject area. Groundwater depths and flow gradients are best evaluated by a subsurface investigation involving the installation of at least three groundwater monitoring wells and precise measurements of hydrostatic pressure.Nine groundwater monitoring wells were formerly installed on the Property. According to the Groundwater Monitoring Well Reports reviewed, groundwater depth was found to be between 25.76'and 40.54'. 4.3 OIL&GAS EXPLORATION The on-site reconnaissance addressed oil and gas exploration at the Subject Property. No evidence of oil or gas wells or the drilling of oil and gas wells was observed on site. In addition,EDI's review of the State of California and the Department of Conservation/Division of Oil, Gas,and Geothermal Resources Map dated 2001 did not indicate any onsite oil,gas,or geothermal fields on or in the vicinity of the Subject Property 6 2252 Fairview Road ID1 Project No.26-0154 Costa Mesa,California 5.0 HISTORICAL RECORDS REVIEW The following briefly summarizes the developmental history of the Property: • Prior to the existing improvements,the Subject Property was vacant land from at least 1927 to 1960 followed by a former gasoline service station circa1968.. 5.1 AERIAL PHOTOGRAPHS Aerial photographs dated 1927, 1938, 1947, 1953, 1960, 1968, 1977, 1983, 1995 and 2002 of the Subject Property and vicinity were provided by GeoSearch. Copies of the photographs are included in Appendix B. The following is a summary of each photograph reviewed HISTORICAL AERIAL PHOTOGRAPH SUMMARY TABLE YEAR SUBJECT NORTH SO1TfH EAST WEST PROPERTY 1927 Vacant land Vacant land Vacant land Vacant land Vacant land 1938 Same as pis photo Same as previous photo Sane as previous photo Same as previous photo Same as pis photo 1947 Same as previous photo Same as previous photo Same as previous photo Same as previus photo Same as previous photo 1953 Sane as previous s photo Same as previous photo Same as previous photo Same as previous photo Retail 1960 Same as previous photo Same as previous photo Sane as previous photo Same as previous photo Same as previous photo Apparat gasoline 1968 Electric Sub station Same as previous photo Same as previous photo Sane as previous photo service station 1977 Same as previous photo Same as previous photo Same as previous photo Same as previous photo Same as pcvias photo 1913 Sane as previous photo Same as previous photo Same as ptvious photo Building Same as previous photo 1995 Brining building Same as previous photo Retail Vacant land New retail building Existing bulking with 20002 the addition of a parking Same as previous photo Same as previous photo office as previws photo lot buileling The 1927 to 1960 aerials depict the Subject Property as vacant land while the 1968 to 1983 aerial photo depicts the Subject as developed with a gasoline service station. Surrounding properties appear developed from at least 1953. The 1995 aerial photo depicts the Subject with the existing building with the addition of a parking lot in the 2002 aerial photo. 5.2 FIRE INSURANCE MAPS Sanborn Maps constitute a source of prior site uses of real property for many cities and towns in the United States. The maps were originally created to assist insurance underwriters in understanding the potential fire risk of structures requiring insurance;however, they are also useful in determining the previous uses of a property. Sanbom Maps often contain information relating to uses of individual structures,location of certain petroleum and chemical storage tanks,and the storage of other potentially toxic substances. Sanborn Maps begin their coverage in 1867 and continue through the 1990s. EDI examined available online Sanbom Maps at http://sanbom.umi.com. Map sets reviewed did not encompass the area of the Subject Property. 7 2252 Fairview Road EDI Project No.26-0154 Costa Mesa,California 5.3 TOPOGRAPHIC MAPS EDI reviewed the USGS Newport Beach, California 75 Minute Series topographic map of the Subject area, which was published in 1965 and photo-revised in 1981. The topographic map identifies the Subject Property indicating that the former service station building was onsite from 1965 to 1981. The immediate vicinity is depicted in purple indicating additional development between 1965 and 1981. A residential or commercial building is depicted to the east followed by a trailer park. 5.4 LOCAL STREET DIRECTORIES Historical street directories for the Subject Property and adjacent properties were obtained from Haines Criss- Cross Directories reviewed at Haines Library in Fullerton, California. The following is a summary of each directory reviewed HISTORICAL CITY DIRECTORY SUMMARY TABLE YEAR SUBJECT PROPERTY SURROUNDING PROPERTIES 1971 • Chet's Shell Service 2255-Burkeeo Jeff 2271-Tic Toe Markets 2283-Building 1979 • Chet's Shell Service 2267-Two Guys from italy 2271-Tic Toe Markets 2283-Angle's beady salon -Dental Practice Sys -hammed Data Com- -Safeguard Business 1989 • Chet's Shell Service 2255-Jiffy Lube 2271-Circle K Corp. 1998 • No Listing. 2255-ally dobe 2271-Circle K Corp. -Claims Emporium -Fraocescos hair salon -PPY Pet -Mendoza Francisco -Napoli Pizza -Pde's Family Arcade -Sushi Kura Rest Video Mart 2006 • Bicyde Rack System 2255-rrffy Lube }Bch Callers2271-Access One Medical Center • -Big Daddy's Family Arcade L7eanas Emporium -Coastal Dental Croup -El Coolanto -Franccscas hair salon -King's Food&Liquor -Marnoos Elector -Martial Arts USA -Martial Lee's Taluuo -Mendota Francisco -Subway Sandwidres -Sushi Sho Japanese Rest -Video Mat 8 2252 Fairview Road EDI Project No.260154 Costa Mesa,California According to the historical city directory review,the property was improved with Chet's Shell Service from at least 1971 to 1989 before being occupied by Hitch Crafters in 2006. Former onsite property usage involved the use, storage, disposal and generation of hazardous substances or petroleum products. Please refer to Section 7 for further information regarding onsite and adjacent properties of environmental significance, if any. 5.5 OTHER HISTORICAL INFORMATION Although requested,no previously prepared Phase I or II Environmental Assessments or lead-based paint or asbestos surveys were provided for our review. In addition, a copy of the Subject's Chain-of-Title has not been provided to EDI for review. II 9 2252 Fairview Road EDI Project No.26.0154 Costa Mesa,California 6.0 SUBJECT PROPERTY RECONNAISSANCE Ll_ L I AillM\,___-A_Aik.l .A, r._ ■ .I-'L7 6.1 METHODOLOGY&LIMITATIONS The Subject Property reconnaissance was conducted on May 25, 2006 by Warren Ramos of EDL The weather at the time of the reconnaissance was clear with a temperature of 75 degrees Fahrenheit. EDI was accompanied by Jeff Reyno,the key site manager,during the property reconnaissance. The Subject Property site reconnaissance was conducted in a systematic manner focusing initially on the exterior, which was surveyed in a grid pattern. A representative portion of the Subject Property's interior spaces was also surveyed in a systematic manner. Where access to portions of the Subject Property or to structures on the Subject Property was unavailable or limited, EDI renders no opinion as to the presence of petroleum products or hazardous substances in that portion of the Subject Property or structure. In addition, EDI renders no opinion as to the presence of,or indirect evidence relating to,petroleum products or hazardous substances where direct observation of the interior walls, floor, or ceiling of a structure was obstructed by objects or coverings on or over these surfaces. The following spaces were visually and physically observed:Subject Property interior and exteriors as well as adjoining and surrounding properties. 6.2 INTERVIEWS 6.2.1 INTERVIEW WITH KEY SITE MANAGER The following information was provided by individuals contacted by EDI in connection with the Subject Property. INTERVIEW COMMENTS REIAMONTU CONTACT SUBJECT DETAILS OFCONVERSATION PROPERTY Mr.Reyno stated that he was not aware of chemical spills,emergency response incidents or other conditions of potential environmental concern at the Subject Property with regard to the current operations. However;he noted Jeff Reyno Subject Property that a former service station occupied the Subject Property from the 1960s to intermediary the late 1980s. He also stated that the former USTs on the property were removed in 1990 and that a No Further Action status was given to the site by the Regional Water Quality Control Board,the lead regulatory agency in January 2004. 63 GENERAL SUBJECT PROPERTY CONDITIONS 63.1 SUBJECT PROPERTY IMPROVEMENTS AND USE PROPERTY DESCRIPTION Property Name Hitch Crafters 10 2252 Fairview Road EDI Project No.26-0154 Costa Mesa,California PROPERTY DESCRIPTION Acreage 0.34 acres Shape of Parcel(s) Rectangular Usage Retailer and installer of trailer hitches in automobiles Number of Buildings One Stories Single Construction Date 1960 Square Footage 1,147 SF Basement/Slab-on-Grade Slab-on-grade Number of Units N/A Ceiling Finishes Gypsum wallboard Floor Finishes Carpet and resilient floor tiles in store,finished concrete in garage Wall Finishes Painted gypsum wallboard Exterior Finishes Painted concrete and panel boards HVAC N/A Elevators N/A Renovation Date N/A Renovation Description N/A • Vehicular Access Fairview Road and W.Wilson Street Other Improvements None Property Cove Asphalt-pavedparddng and travel lanes The current use of the Subject Property does not involve the use,treatment,storage,disposal,or generation of hazardous substances or petroleum products other than de minimis quantities. Only janitorial size chemical containers utilized for the cleaning and maintenance of the Subject Property were observed 6.4 INTERIOR OBSERVATIONS The following table summarizes issues on which the survey of interior areas of the Subject Property focused: INTERIOR SURVEY ITEM NOTED LOCATION AND DESCRIPTION Processes that generate petroleum N/A products or hazardous substances Unusual odors N/A Pools of liquid N/A Containers not attributed to current use N/A of the Subject Property Stains or corrosion WA Catch basins were observed in the garage area and are Drains and Sumps reportedly connected to the municipal sewer system. EDI did not observe drains that were stained,emitting foul odors or located adjacent to chemical stone areas. Oil-containing equipment N/A 11 2252 Fairview Road EDI Project No.26.0154 Costa Mesa,California 6.5 EXTERIOR OBSERVATIONS The following table summarizes issues on which the survey of exterior areas of the Subject Property focused: EXTERIOR SURVEY ITEM NOTED LOCATION AND DESGRIPT10N Storage tanks N/A Unusual odors N/A Areas of asphalt patch or surface N/A depressions Containers not attributed to current use N/A of the Subject Property Oil-containing equipment N/A Stained soil or pavement N/A Stressed vegetation N/A Fill material of questionable origin/Piles N/A Drains and Sumps N/A Monitoring Wells N/A Stormwater catch basins were noted on the Subject Property Catch basins or dry wells ' parking area. The catch basins reportedly discharge to the municipal stormwater system within the abutting streets. Septic systems N/A 6.6 WASTE MANAGEMENT AND REGULATED MATERIALS Solid waste(cardboard,paper,municipal waste)generated at the Subject Property is collected in a metal waste bin within an enclosure located on the Subject Property. Solid waste is collected regularly by Waste Management.Only municipal-type solid waste was observed at the time of the Subject Property visit. Sources of potential environmental impact were not observed on or about the trash receptacle at the time of inspection. 6.7 STORAGE TANKS 6.7.1 UNDERGROUND STORAGE TANKS(USTs) Tanks per the following schedule were reportedly removed from the Subject Property: Took No. Status Capacity Reported Product Registered (Gallons) Construction 1y,Pe 1 Removed 8,000 Unknown Gasoline Yes 2 Removed 6,000 Unknown Gasoline Yes 3 Removed 4,000 Unknown Gasoline Yes 12 2252 Fairview Road IDI Project No.26-0154 Costa Mesa,California Tank No. State Capacity Reported Product Reghtered (Gallons) Construction 1 pe 4 Removed 4,000 Unknown Gasoline Yes 5 Removed 300 Unknown Gasoline Yes Please refer to the Leaking Underground Storage Tank (LUST) section within this Report for further discussion(Section 7.0)pertaining to the former onsite USTs. 6.7.2 ABOVEGROUND STORAGE TANKS(ASTs) Visual evidence that would indicate past or present ASTs at the Subject Property, such as a concrete foundation or containment walls, pedestals, or steel support structure, was not apparent during the Subject Property visit. In addition,the regulatory review as discussed further in Section 7.1 did not indicate evidence of past or present ASTs. 6.8 POLYCHLORINATED BIPHENYLS(PCBs) Polychlorinated Biphenyls(PCBs)are known hazardous materials that are found in coolants or lubricating oils used in some electrical transformers,light ballasts,electrical panels or other similar equipment. PCB content in electrical transformers has been grouped into three (3) regulatory categories by the federal government. Parts per million is signified by ppm. 0-50 ppm non-PCB unit 50-500 ppm PCB contaminated unit >500 ppm PCB unit One utility-owned electric substation with several pad-mounted electric transformers was observed adjacent to the north of the Subject Property.The transformers observed appeared to be in good condition,free of leakage and staining. According to the Toxic Substances Control Act (TSCA), Section 761, the owner of the transformer, Southern California Edison,is responsible for the transformer's maintenance and remediation in the event of a leak. The site has equipment that utilized hydraulic oils. EDI observed one abandoned hydraulic lift in the site's garage facility. No surficial staining was observed in the vicinity of the lift. However,since the lift was most likely installed prior to the 1979 ban on the manufacturing of PCBs,the hydraulic fluid may contain PCBs. Of importance,no visual indications of past or present leaks of the hydraulic fluids were observed at the time of the site inspection. Note that given the viscous nature of hydraulic oil,any subsurface leak would primarily be contained within the lift cylinder area. Additionally,hydraulic oil does not typically breakdown or migrate in a similar manner to other petroleum contaminants such as diesel fuel or waste oil. As a result,any leakage from the lifts and subsurface impact, if any, would be considered de minimus. Given that groundwater is located at 45-40"below ground surface and soils in the vicinity are reportedly firm sandy clays and balms,a groundwater impact from the lift is unlikely. 6.9 UTILITIES ELECTRIC: Southern California Edison POTABLE WATER: City of Costa Mesa NATURAL GAS: Southern California Gas Company 13 1 2252 Fairview Road EDI Project No.26.0154 Cama Mean,California SEWAGE SERVICE: City of Costa Mesa 6.10 ASBESTOS CONTAINING MATERIAL(ACM) The use of asbestos in many building products was banned by the U.S. Environmental Protection Agency (EPA) by the late 1970s. In 1989, EPA issued a ruling prohibiting the manufacturing, importation, processing,and distribution of most asbestos containing products. This rule,known as the Ban&Phase-Out Rule,would have effectively banned the use of nearly 95%of all asbestos products used in the United States. However,the U.S.5th Circuit Court of Appeals vacated and remanded most of the Ban and Phase Out Rule in October 1991. Due to this court decision,many asbestos containing product categories not previously banned (prior to 1989)may still be in use today. Among these common material types found in buildings are floor tile and roofing materials. Asbestos-containing material (ACM) represents a concern when it is subject to damage that results in the release of fibers. Friable ACM, which can be crumbled by hand pressure and is therefore susceptible to damage, is of particular concern. Non-friable ACM is a potential concern if it is damaged by maintenance work,demolition or other activities. Screening for ACM is not within the scope of an ASTM Phase I investigation. However,the scope of this assignment included a limited visual screening without sampling of any readily observable suspect ACM at the request of Telesis Community Credit Union do Business Partners,LLC. Suspect non-friable ACM was observed at the Subject Property reconnaissance in the form of resilient floor files,wallboard assemblies and construction mastics. These materials were observed to be in good condition. Due-to the continued distribution of a wide variety of asbestos-containing materials,asbestos may be present in some of the roofing, flooring,caulking/putties, adhesives, spackling compounds,and/or non-accessible insulation materials at the Subject Property. Sampling of these types of materials requires techniques that may be destructive to subject facilities and in the case of roofing material may void warranties. It is recommended that all such possible asbestos-containing materials be tested prior to renovation or demolition activities that could disturb the materials. Any testing,removal or disturbance of ACM should be handled in compliance with federal,state, and local regulations. Licensed,qualified asbestos abatement personnel should be retained prior to demolition or renovation of subject facilities. 6.11 LEAD-BASED PAINT(LBP) LBP is paint with a lead concentration greater than 5,000 parts per million(ppm)as defined by the EPA. LBP may be an environmental concern in residential properties based on the condition and maintenance of the paint and the presence or absence of LBP hazards. A LBP hazard is defined as damaged paint or paint covering a deteriorated subsurface that may create dust or chips that could potentially be ingested or inhaled. Screening for LBP is outside of the scope of an ASTM Phase I investigation. In addition,the scope of this assignment did not include a LBP screening because the Subject Property use is commercial and LBP is therefore not an area of concern. Of importance,painted surfaces observed by EDI were in good condition with no evidence of pervasive peeling or flaking. No further action is recommended at this time. 6.12 RADON Radon gas is a gas created from the radioactive decay of uranium. It exists in soil with a high concentration of uranium rocks or industrial waste. Radon gas may seep into and accumulate in dwellings through cracks in the foundation or walls or any other opening such as a floor drain. 14