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r <br />T H E MK R K L-A W f 1R fri 00/�� <br />601 UOIVEQSITY mf, 2 <br />SUITE `'1' <br />mcQA EnTO, CflLIfoanm 95825 <br />TEL (916) 567-3960 • RX (916) 567-3967 <br />f • `ci <br />May 17, 2000 <br />VIA TELECOPIER (209/464-0138) AND U.S. MAIL <br />Mr. Robert David McClellon, R.E.H.S. <br />San Joaquin County Public Health Services <br />Environmental Health Division <br />304 East Weber Avenue <br />Stockton, CA 95202 <br />Re: Delta Funding, a California Limited Partnership <br />Notice and Order No. 00-01 (Pub. Res. Code §45000) <br />23023 S Santa Fe Road Riverbank, California <br />Dear Mr. McClellon: <br />As I told you during our recent telephone conversation, Delta Funding, a <br />California limited partnership, has asked us to assist it in responding to the Notice and Order <br />(hereinafter referred to as "the Order") issued to it by the San Joaquin County Public Health <br />Services, Environmental Health Division ("SJPHS/EHD"). Cal State Mortgage Company, Inc. <br />services real estate loans for Delta Funding. As I also told you during our recent telephone <br />conversation, Thomas Holmes, former president of Cal State Mortgage, passed away late last <br />year and has been succeeded by Peter C. Bednarek. <br />Delta Funding, in its capacity as a lender, acquired the former Linch property <br />through foreclosure in February 1998 and offered it for sale shortly thereafter. Delta Funding has <br />never operated a solid waste facility at the property or caused or permitted anyone else to do so, <br />nor has it engaged in any other activity or served in any capacity that would subject it to liability <br />as alleged in the Order. We therefore believe that Delta Funding's liability, as a lender that has <br />never had any involvement whatsoever in the collection or disposal of solid or hazardous waste <br />at the property, is questionable (see Health and Safety Code §§ 25548 through 25548.7, for <br />example). <br />Although Delta Funding believes that the legal and practical issues raised by the <br />Order may make it necessary for it to seek a judicial determination of its rights and obligations <br />with respect to the property, it is also interested in continuing to work with SJPHS/EHD in an <br />effort to find a solution to an ongoing problem that neither party has been able to resolve: <br />