DATE:
September 22, 2026
CATEGORY:
Consent
DEPT.:
Public Works
TITLE: 2000 North Shoreline Boulevard –
Various Actions
RECOMMENDATION
1. Acting in its joint capacity as City Council and Board of Directors of the Shoreline Regional Park Community , authorize the City Manager and Community Manager, or respective designees to execute a Settlement, Limited Release and Reimbursement Agreement with Google LLC, providing reimbursement for past environmental work at the property located at 2000 North Shoreline Boulevard, in a not-to-exceed amount of $4,968,700.
2. Acting in its capacity as Board of Directors of the Shoreline Regional Park Community , appropriate $4,968, 700 in the Shoreline Regional Park Community Fund, utilizing the Site Contamination Reserve established within the Fund, for the settlement payment, of which 100% is from the Shoreline Regional Park Community.
3. Acting in its joint capacity as City Council and Board of Directors of the Shoreline Regional Park Community, authorize the Community Manager or designee to execute a Monitoring Reimbursement Agreement with Google LLC, for ongoing environmental monitoring, inspection and reporting at the property located at 2000 North Shoreline Boulevard, in a not- to-exceed amount of $900,000.
4. Acting in its capacity as Board of Directors of the Shoreline Regional Park Community , appropriate $900,000 in the Public Works Department, Shoreline Regional Park Community Fund, for the Monitoring Reimbursement Agreement, of which 100% is from the Shoreline Regional Park Community.
BACKGROUND
In 2007 and 2011, the City leased two adjacent parcels at 2000 North Shoreline Boulevard (previously known as “Charleston East”, now as “Gradient Canopy”) to Google, Inc., now Google LLC, (Google) for construction of an office building. In late 2018, during construction of the office building, Google discovered polychlorinated biphenyl (PCB) contamination in the soil under the partially constructed building. PCB, now banned for use, is a chemical that was previously used
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as an electrical insulator and coolant, among other applications. The extent of contamination and the building footprint are shown in Figure 1.
Figure 1: Site and Contamination Location
The contamination was not detected during predevelopment environmental testing, and staff believes the release predates the City’s ownership of the site. Under these circumstances, the leases with Google cap the City’s liability for remediation costs at $8 million.
Remediation Plan
Based on the type and level of contamination, the United States Environmental Protection Agency (EPA) has jurisdiction over this site, with the State Regional Water Quality Control Board (RWQCB) providing input to the EPA. Because the contamination was nea r already-constructed underground structural building elements, removal of the contaminated soil was deemed infeasible. Instead, the City and Google worked together on a plan, with EPA and RWQCB concurrence, to contain the contamination in place and provide a series of wells for future monitoring. By mutual understanding between the City and Google , Google’s environmental consultants took the lead, with Google fronting all costs, on plan preparation with the goal of avoiding human contact with or migration in groundwater of the contamination. In this case, the building foundation itself constitutes the approved remedy by capping the contaminants in place.
The remedy will be monitored through groundwater and indoor air testing, as described below.
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The remediation plan consists of two phases. The first phase was approved by the EPA on November 25, 2019 and focused on fully characterizing the contamination (physical area of contamination), off -hauling remediation waste, and the method of remediation. Remediation site improvements in the first phase include d modifications to the design of the basement slab to serve as a cap, injection of activated carbon in the soil to prevent migration of the contamination in groundwater, and installation and monitoring of groundwater wells to monitor the success of the remediation efforts. These improvements were completed with the office building construction.
The second phase, approved by the EPA on April 24, 2026, is focused primarily on longer- term activities, including the following:
• Indoor Air Sampling Plan to detect potential air contamination in the building. As required, indoor air sampling was conducted prior to Google occupying the building. No contamination was detected.
• Operation and Maintenance Plan and Soil and Groundwater Management Plan to identify actions that will be taken to ensure that the cap over the contamination (building slab, etc.) is maintained and establishes protocols for future excavations at the site.
• Long-Term Groundwater Monitoring and Contingency Plan to establish ongoing groundwater monitoring to detect any future migration contamination and actions that will be taken should such migration occur.
• Land Use Covenant to prohibit specific uses of the site, including residential, hospital, school, day care, and cultivation of food. Google’s intended use as an office building is not affected.
Tolling Agreement
The City and Google entered into a Tolling Agreement in February 2020 (subsequently extended, most recently through December 24, 2026) , which stay ed all deadlines to file claims that the parties might have with regard to the contamination, in particular, Google’s claim for reimbursement under the lease. The Tolling Agreement allowed time for the EPA to give final approval to the remediation plan and allowed the City and Google sufficient time to come to an agreement about the City’s liability under the lease without either of the parties needing to file suit.
City Council met in closed session on December 7, 2021, to discuss the price and terms for the Settlement Agreement and Monitoring Agreement with Public Works and City Attorney ’s Office staff. The recommended terms are consistent with the direction received from Council.
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ANALYSIS
City staff and Google have been coordinating closely and collaboratively on the remediation efforts since 2019, with the final approvals from the EPA received in April 2026. As Google has paid for all costs associated with the remediation on behalf of the City , a reimbursement to Google is now needed. Additionally, Google, on behalf of the City, has also been performing the required monitoring efforts as required by the regulatory agencies, and will continue these efforts. The recommended actions would approve two agreements:
• The Settlement, Limited Release and Reimbursement Agreement (Settlement Agreement) settles Google’s reimbursement claims under the lease for remediation work completed through March 31, 2026.
• The Monitoring Reimbursement Agreement (Monitoring Agreement) establishes the roles and responsibilities of Google and the City for ongoing monitoring and reporting pursuant to the remediation plan effective as of April 1, 2026.
Settlement Agreement
The main terms of the Settlement Agreement are summarized as follows:
Payment to Google for Past Reimbursement Work: The City agrees to pay Google $4,968,700 for remediation work performed from January 2019 through March 2026 within 60 days of execution of the Settlement Agreement. The remediation work performed by Google included preparation of all elements of both phases of the remediation plan, soil and groundwater testing and removal, construction of wells and other required improvements, and coordination with the City and regulatory agencies. This includes monitoring efforts through March 31, 2026. Staff worked closely with Google staff and consultants throughout this period, has reviewed all work, and considers the charges to be fair and reasonable for the scope of work undertaken.
Recordation of the Land Use Covenant: As required by the EPA, the City agrees to execute the Land Use Covenant regarding the prohibited uses as stated above and record it with the County Recorder on the 2000 North Shoreline Boulevard properties by October 21, 2026.
Total Costs: The City’s total obligation to reimburse Google for past and future remediation are capped at $8 million, consistent with the leases.
Future Costs: As long as the leases and Monitoring Agreement are in effect, Google shall perform the actions required under the Monitoring Agreement. The City shall reimburse Google for such actions up to the City’s maximum obligation of $8 million. If the total remediation costs exceed $8 million, the City can elect to terminate the leases. The leases further provide that, even if the City elects to terminate the leases, and if Google agrees to pay all costs in excess of $8 million to 2000 North Shoreline Boulevard – Various Actions
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avoid termination of the leases, the City must carry out and complete the required remediation.
Essentially, once the City’s maximum obligation to reimburse Google is reached, the costs shall be borne by Google so long as the leases are in effect. The leases are in effect through 2063. Once the lease s end, or are terminated, the City must carry out the monitoring and any required remediation.
Staff recommends Council appropriate $4,968,700 for the payment to Google for the remediation work performed from January 2019 through March 2026.
Monitoring Agreement
The Monitoring Agreement provides that Google shall perform the monitoring activities required in the remediation plan and shall be reimbursed by the City. The main terms of the M onitoring Agreement are summarized below:
• Monitoring, Inspection, Reporting and Training : Google shall perform the monitoring, inspection, reporting, and training required in the Long -Term Groundwater Monitoring and Contingency Plan and the Operation and Maintenance Plan. Google shall submit test results and other work products to the City for review and comment prior to submitting reports to the EPA. Google shall invoice the City for services associated with the monitoring agreement and the City shall pay Google for the services.
• Environmental Consultant: Google shall continue to contract with Elevate Environmental Consultants (Elevate) to perform testing, monitoring and inspection. Elevate staff have worked on this effort since the contamination was discovered in 2019 and are uniquely familiar with the elements and intent of the remediation plan as well as the requirements and concerns of the regulatory agencies. In the future, Google may propose an alternative consultant subject to approval by the City.
• Term and Contract Amount: While the monitoring effort will be required for many years, the term of the recommended agreement is 3.5 years beginning April 1, 2026. Due to the timing of the ongoing required quarterly reporting, the April 1, 2026 date was chosen to allow a certainty date for both the Settlement Agreement and Monitoring Agreement. The recommended fee of $900,000 for basic services and contingency over the 3.5-year contract term is consistent for such services, and staff considers the fee to be fair and reasonable for the scope of work required. After the term the City can consider extending the agreement or establish a new agreement for monitoring.
Google and Elevate are uniquely qualified to perform the monitoring agreement services because:
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• Elevate developed both phases of the remediation plan approved by the EPA and is uniquely familiar with the circumstances at the site as well as the requirements of the remediation plan. Elevate has worked effectively with Google and City staff as well as both key regulatory agencies. Retention of Elevate will help provide a s mooth transition to the ongoing monitoring phase of the remediation.
• The required monitoring and inspection depend on access to the property and the building, including the basement. As the tenant, Google controls access to these areas and therefore must be involved in monitoring and inspection activities.
• Continuity in staffing this effort is very valuable as the project moves from the regulatory approval stage to ongoing monitoring.
Due to the Maintenance Agreement performing ongoing monitoring and maintenance for regulatory needs , staff recommends Council appropriate $ 900,000 to the Public Works Department operating account for these services.
Potential Additional Improvements
While City and Google staff, Google’s environmental consultants, and the regulators consider the approved remedial improvements adequate to contain the contamination, it is possible that the PCBs could migrate down-gradient toward the Bay in groundwater. T he long-term groundwater monitoring plan is designed to detect any such migration. In the unlikely event such migration occurs, additional remedial action s will be necessary. It is unknown what the actions and costs would entail until the details of a potential migration are known. Staff would return to Council with recommendations at a future date if needed.
FISCAL IMPACT
The Settlement Agreement requires a payment of $4,968,700, and staff recommends be funded by the Shoreline Regional Park Community Fund ’s Site Contamination Reserve appropriating $4,968,700 from the Site Contamination Reserve for the settlement payment.
The recommended Monitoring Agreement includes $792,000 for basic services and reimbursable expenses and a contingency of $108,000 for additional services, for a total not-to-exceed amount of $900,000. Staff recommends appropriating $900,000 from the Shoreline Regional Park Community Fund to the Public Works Department operating account for the Monitoring Agreement.
There is sufficient funding available in both the Shoreline Regional Park Community Fund and the Site Contamination Reserve for the recommended actions.
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LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $500 from a party, participant, or agent of a party or participant within the last 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to- play-limits-and-prohibitions.html
Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.
SUBJECT TO THE LEVINE ACT
☒ Contract or franchise agreement
CONCLUSION
The City leased two adjacent parcels at 2000 North Shoreline Boulevard to Google for development purposes. In 2019, d uring construction of the office building, Google discovered PCB contamination in the soil. The City and Google worked collaboratively on a two-phase remediation plan with the EPA to address the contamination in place and develop a long -term monitoring plan, with Google bearing all costs on the City’s behalf. After seven years of effort , the City, in partnership with Google , received EPA approval of both phases of the remediation plan on April 24, 2026 for the PCB contamination found on the 2000 North Shoreline Boulevard properties. The recommended actions will reimburse Google for these past efforts and transition to a monitoring phase allowing long term occupancy of the site.
ALTERNATIVES
1. Do not appropriate $4,968, 700 from the Shoreline Regional Park Community Fund, and direct staff to use another funding source.
2. Revise the terms of the Monitoring Reimbursement Agreement and direct staff to issue a Request for Proposals to seek an alternative party to perform future monitoring services starting in summer 2027.
3. Provide other direction.
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PUBLIC NOTICING—Agenda Posting.
Prepared by:
Edward Arango
Assistant Public Works Director/
City Engineer
Approved by:
Jennifer Ng
Public Works Director
Audrey D. Seymour
Assistant City Manager