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Council authorizes soil stockpiling agreement expected to generate funds for parks

East Palo Alto City Council Meeting · March 4, 2025
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Summary

The council authorized a soil stockpiling agreement with Sycamore Real Estate Investment LLC and P Cavanaugh Construction to receive tipping-fee revenue from moving up to 150,000 cubic yards of soil; the city would receive 90% of net profit, estimated at a minimum of $600,000 and possibly up to $1.1 million, to be placed in a special fund for parks.

The council authorized the city to enter into a soil stockpiling agreement designed to generate revenue for park improvements.

Interim assistant city manager (speaker 11) explained that Sycamore Real Estate Investment LLC and P Cavanaugh Construction would move fill soil (up to 150,000 cubic yards) to Sycamore property and that the city would receive 90% of net profits from tipping fees. The presenter estimated proceeds at a minimum of roughly $600,000 and a potential upside near $1,100,000. Because the funds were proposed for parks and recreation, staff recommended placing revenue into a special fund for park projects, with final appropriation to come back to council.

Council members raised environmental and liability questions about the source of soil and potential contamination. Councilmember (speaker 4) referenced past incidents where soils had to be moved out of a site for contamination; staff and counsel responded that the draft agreement allocates liability to the hauling contractor and that outside environmental litigation counsel reviewed and edited the stockpiling agreement to protect the city. "The city is no liable, not liable," a staff speaker stated during the exchange; staff also said Sycamore would hold contractors accountable.

A motion to adopt the authorization passed by voice vote. The item directs staff to execute the agreement and place any revenues in the designated park fund; staff will return to council for final appropriation decisions.