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of concern. Based on these results, Kleinfelder recommended no further investigation for the <br /> wastewater and mud ponds. According to URS, in response to these results, the RWQCB <br /> concurred that no further investigation was needed within the areas of the former mud and <br /> wastewater ponds and rescinded the Waste Discharge Requirements for the wastewater and <br /> mud ponds. According to information reviewed at the RWQCB, the wastewater pond areas of <br /> the former Spreckels Sugar site were classified by the RWQCB as "clean-closed" in 2002. In <br /> addition, because the ponds were 'clean-closed," a deed restriction was not placed on the <br /> former wastewater ponds. <br /> According to a report entitled Limited Phase IT Soil Assessment, Railroad Spurs, Phase I ESA <br /> Recommendation No. 21, Former Spreckels Sugar Plant No. 2, by Kleinfelder, Inc., (February 4, <br /> 1997), Kleinfelder collected soil samples along the railroad spur that formerly traversed the <br /> Spreckels Sugar site in a north-south direction. Soil samples collected were analyzed for <br /> metals, TPHd, lube oil, herbicides, and SVOCs. Elevated levels were detected in one area <br /> sampled. Kleinfelder wrote that discussions were ongoing with SJCEHD regarding closure. <br /> According to a 1999 Phase I ESA by Dames & Moore, during a conversation with Mr. Ron Rowe <br /> of the SJCEHD, a limited quantity of soil (approximately 3 square feet) was being removed from <br /> the site in November 1999. Following that removal, Mr. Rowe stated that he was willing to <br /> issue a formal closure letter. According to a 2001 Phase I ESA by URS Corporation, Ms. <br /> Margaret Lagorio of the SJCEHD stated that the SJCEHD was requiring no further action <br /> regarding the lead detected in the soil at the railroad spur. <br /> Based on this information, the removal of the former railroad tracks, and the fact that the area <br /> of the former rail spur is currently paved over, prohibiting any direct contact with near surface <br /> soils, the former railroad spur located on the subject property circa 1917-1995 is not expected <br /> to represent a significant environmental concern. <br /> According to Mr. Ross Atkinson of the RWQCB and the documents reviewed at the RWQCB, the <br /> entire former Spreckels Sugar site received case closure in June 2008. In should be noted that <br /> the closure letter entitled, Rescission of Waste Discharge Requirements Order No. R5-2003- <br /> 0024 and dated June 13, 2008, is not a typical case closure letter. However, it is stated within <br /> the letter that "further remedial action is not necessary" (A copy of this letter is included within <br /> Appendix Q. Closure was granted to the site because the source of the contamination had <br /> been removed. In addition, groundwater quality measured in downgradient monitoring wells <br /> had been improving since the discharge to the ponds ceased in 1995. Well sampling <br /> immediately downgradient (northwest) of the former wastewater ponds had also shown large <br /> decreases in constituents of concern in the initial five to seven years after the discharge had <br /> ceased. Since 1995, the constituents of concern were noted to have become almost stable, <br /> improving not at all or only slightly on a year-to-year basis; however, groundwater located <br /> northwest of the former Spreckels Sugar site and in the northwest portion of the former <br /> Spreckels Sugar site was noted to still have concentrations of salts, bicarbonates and TDS <br /> greater than background levels. <br /> Based on this information, including the case closure status for the former Spreckels Sugar site, <br /> the subject property's historical use by the Spreckels Sugar Company is not expected to <br /> represent a significant environmental concern. Nevertheless, it should be noted that low levels <br /> of metals, toluene, 1,2,4-tri methyl benzene, total cyanide, and total xylenes in the soil and/or <br /> groundwater may remain present in the northern-central portion (former Site B area) of the <br /> subject property. In addition, in the event of any groundbreaking activities at the subject <br /> Project No. 297376 AE1 <br /> June 22, 2011 <br /> Page 16 Consultants <br />