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HomeMy WebLinkAboutRDA Packet 1995/10/17 Tuesday, October 17, 1995 Council Chambers 6:00 p.m. Public Services Building (immediately following the City Council meeting) Joint Re2ular Meetin2 of the RedeveloDment A2encv/Citv Council of the City of Chula Vista CALL TO ORDER I. ROLL CALL: Agency/Council Members Alevy -' Moot -' Padilla_, Rindone -' and Chair/Mayor Horton - 2. APPROVAL OF MINUTES: September 26,1995 and October 10,1995 CONSENT CALENDAR (Items 3 and 4) The staff recommendations regarding the following items listed under the Consent Calendar will be enacted by the Agency by one nwtion without discussion unless an Agency, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staff recommendation; complete the pink form to speak in opposition to the staff recommendation.) Items pulled from the Consent Calendar will be discussed after Action Items. Items pulled by the public will be the first items of business. 3. WRITrEN COMMUNICATIONS: None. 4. COUNCIL RESOLUTION 18072 APPROVING FUNDS AS A LOAN FROM THE UNAPPROPRiATED BALANCE OF FUND #222, TRUNK SEWER CAPITAL RESERVE FUND TO THE REDEVELOPMENT AGENCY CAPITAL IMPROVEMENT PROJECT RD21S--To comply with a cleanup and abatement order issued by the California Regional Water Quality Control Board, bids were received for Soil Groundwater Remediation for the Corporation Yard which includes the design and implementation of a system to remediate groundwater and soil, if necessaty. Staff recommends approval of the resolutions. AGENCY RESOLUTION 1470 ACCEPTING BIDS AND AWARDiNG CONTRACT FOR SOIL AND GROUNDWATER REMEDIATION FOR THE CORPORATE YARD iN THE CITY OF CHULA VISTA, CA (RD-21S) AGENCY RESOLUTION 1471 APPROVING AGREEMENT BETWEEN THE CITY OF CHULA VISTA REDEVELOPMENT AGENCY AND HARGIS & ASSOCIATES, iNC. FOR ENVIRONMENTAL CONSULTANT SERVICES . . END OF CONSENT CALENDAR. . liT d'~d3"" un:fer penalty of perjury that' am am"¡;, eo.! by the City of Chella Vista in the Co,;"onu~ tv Deve!opment Department and th;¡t . posted ttù r'Ge",jali'¡o'~ice on the ;UI,le, tin Board at t,i,e Public Service, S ßU¡¡dinBw, C,i,t,Y Hab' , (, /(}/) oS' ,.",1 ""'Û"-z. DATEI' ' '7 IGNE'-~~" .0;1 '/' -, - Agenda -2- October 17, 1995 PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDiNANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. (Complete the green form to speak in favor of the staffrecommendation; complete the pinkform to speak in opposition to the staffrecommendation.) Comments are limited to five minutes per individual. None Submitted. ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete theyellow "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. Your time is limited to three minutes per speaker. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Agency, staff, or members of the general public. The items will be considered individually by the Agency and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" form available in the lobby and submit it to the Secretary to the Redevelopment Agency or the City Clerk prior to the meeting. Public comments are limited to five minutes. None Submitted. ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the Redevelopment Agency will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Agency Members. Public comments are limited to five minutes per individual. OTHER BUSINESS 5. DIRECTOR'S/CITY MANAGER'S REPORHS) 6, CHAIR'S/MAYOR'S REPORHS) . 7. AGENCY/COUNCIL MEMBER COMMENTS - Agenda -3- October 17, 1995 ADJOURNMENT The meeting will adjourn to the Regular Redevelopment Agency Meeting on November 7, 1995 at 4:00 p,m., immediately following the City Council meeting, in the City Council Chambers. ...... COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the Americans With Disabilities Act (ADA), request individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and activities. Please contact the Secretaty to the Redevelopment Agency for specific information at 619.691.5047 or Telecommunications Devices for the Deaf (TDD) at 619.585.5647. California Relay Service is also available for the hearing impaired. [c:\ WP5! IAGENCY\AGENDAS\ t 0-17 -95 ,AGDI - MiNUTES OF A JOINT MEETING OF THE REDEVELOPMENT AGENCY/CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, September 26, 1995 Council Chambers 6:55 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Agency/Council Members Alevy, Moot, Padilla, Rindone, and Chair/Mayor Horton ALSO PRESENT: John D. Goss, Director/City Manager; Bruce M. Boogaard, Agency/City Attorney; and Beverly A. Authelet, City Clerk 2. APPROVAL OF MiNUTES: September 5, 1995; September 12, 1995 MSC (Rindone/Horton) to approve the minutes of September 5, 1995 and September 12, 1995 as presented, approved 4-0-0-1 with Padilla abstaining. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 3. RESOLUTION ]8040 and RESOLUTION ]469 AUTHORIZING THE EXECUTION OF A PROPERTY EXCHANGE AGREEMENT BETWEEN THE AGENCY AND THE SWEETWATER UNION fiGH SCHOOL DISTRICT FOR THE PURPOSES OF PROVIDING THE AGENCY WITH THE PROPERTY NECESSARY TO EFFECTUATE THE VETERANS HOME PROJECT AND TO PROVIDE THE DISTRICT WITH THE PROPERTY NECESSARY TO DEVELOP A NEW DISTRICT ADMiNISTRATIVE HEADQUARTERS iN THE TOWN CENTRE] REDEVELOPMENT PROJECT AREA - Through the Agreement the Agency can acquire the property necessary to donate to the Califomia State Department of Veterans Affairs to develop a Veterans Home facility and in exchange provide the property needed for the Sweetwater Union High School District to construct a new district administrative headquarters plus other considerations in order to account for the difference in values between the properties to be exchanged. Staff recommends approval of the resolutions. (Community Development Director) Member Rindone declared a conflict of interest and stated he would not participate in the item because it involved his employer. This being the time and place as advertised, the public hearing was declared open, Chris Salomone, Director of Community Development, stated the Agency\Council had previously approved the MOU. The School District had since approved the MOD and it was before Council for final approval. The funding situation at the state level had remained unchange and staff was optimistic that funding would be approved in January. 8 Bill Ayers, 44 East Mankato Street, Chula Vista, CA, representing the Veterans Advisory Council of San Diego County, stated he had been working on the project for ten years. It had been a long hard fight and he supported approval of the resolutions. He complimented the work done by Juan Arroyo, Chris Salomone, and the staff of the Community Development Department. He also commended Council and the School District Board. 8 Joseph Matacia, 550 Galveston Way, Bonita, CA, representing the Veteran's Administration, stated they had pursued the Veterans' Home vigorously and supported Agency\Council action. There being no further public testimony, the public hearing was declared closed. Member Alevy stated it was an honor and pleasure as a veteran to offer the resolutions. RESOLUTIONS 18040 AND 1469 OFFERED BY SCOTT ALEVY, VETERAN, readittg of the text was waived. 02 -I -.. -, Minutes September 26, 1995 Page 2 Chair/Mayor Horton referred to the City's responsibility in the action, Item 2, i.e. the $545,000 in cash or other acceptable consideration, and questioned if the City could meet the time frame specified, Mr. Salomone responded the City had three years to acquire the property and despite the testimony before Council earlier, the property was offered to the City. Staff was also looking at another site. Because funding was appropriated and the City had the option to purchase the property, he felt they would be able to meet the time frame. Member Moot stated that other than being the father of three boys, he did not often have the ability to answer someone's prayers. He knew that a lot of people had put their hearts and souls in the project and had prayed to see it happen. It was a please to be able to answer those prayers. Chair/Mayor Horton stated her father was a veteran and it was an honor to support the motion. VOTE ON MOTION: approved 4-0-0-1 with Rindone abstaining. ORAL COMMUNICATIONS None OTHER BUSINESS 4, DIRECTOR'S/CITY MANAGER'S REPORTCS) . Mr. Goss stated Council had indicated that they wanted to include the BECA facility at Rohr, the sidewalks around Fourth Avenue and Orange Street, and the proposed tree planting areas on the MTDB right-of-way on the Council/Agency tour. The tour had been scheduled for Saturday, 10/07/95 at 9:00 p.m. 5. CHAIR'S/MA YOR'S REPORTCS) - None 6. AGENCY/COUNCIL MEMBER COMMENTS - None ADJOURNMENT ADJOURNMENT AT 7:05 P.M. to the Regular Redevelopment Agency Meeting on October 3, 1995 at 4:00 p.m., immediately following the City Council meeting, in the City Council Chambers, Respectfully submitted, BEVERLY A. AUTHELET, CMC/AAE, City Clerk by: \:s~~~ ~ Vicki C, Soderquist, CMC, ty City Clerk c2 -2, ._co -. MINUTES OF A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Tuesday, October 10, 1995 Council Chambers 6:52 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Agency Members Alevy, Moot, Padilla, and Cbair Horton ABSENT: Member Rindone ALSO PRESENT: John D. Goss, Director; Bruce M. Boogaard, Agency Attorney; and Vicki C. Soderquist, Deputy City Clerk MSC (Padilla/Alevy) to excuse Member Rindone's ahsence from the 10/10/95 meeting, approved 4-0-1 with Rindone absent. CLOSED SESSION 2. CONFERENCE WITH LEGAL COUNSEL REGARDING: Anticipated litigation pursuant to Government Code Section 54956.9(h) . Chula Vista Auto Park developers - South Bay Chevrolet and Fuller Ford/Honda/Kia v, City/Redevelopment Agency based on statements made in June 8th letter from Auto Park developers to staff and consideration to Tolling Agreement The Agency recessed at 6:53 p.m., reconvened in Closed Session at 7:03 p.m., and adjourned at 7:06 p.m. 3. REPORT OF ACTIONCS) TAKEN IN CLOSED SESSION - No reportable actions were taken in Closed Session. ORAL COMl\fUNICATIONS None OTHER BUSINESS 4, DIRECTOR'S REPORT(S) - None 5. CHAIR'S REPORTCS) - None 6. AGENCY MEMBERS COMMENTS - None ADIOURNMENT ADJOURNMENT AT 7:06 P.M, to the Regular Redevelopment Ageocy Meeting on October 17, 1995 at 6:00 p.m., immediately following the City Council meeting, in the City Council Chambers, Respectfully submitted, BEVERLY A, AUTHELET, CMC/AAE, City Clerk oZ-3 by: ~& - This page blank. J.-t.f .-.. .- JOINT CITY COUNCILIREDEVELOPMENT AGENCY AGENDA STATEMENT Item ~ Meeting Date 10/17/95 ITEM TITLE: COUNCIL Resolution / J'O71.>Appropriating funds for and approving a loan from the unappropriated balance of Fund #222, Trunk Sewer Capital Reserve Fund to the Redevelopment Agency Capital Improvement Project RD215 and authorizing the Mayor to execute a note memorializing same, AGENCY Resolution /170 Accepting bids, and awarding contract for "Soil and Groundwater Remediation for the Corporate Yard in the City of Chula Vista, CA (RD-215)" AGENCY Resolution / '-/ 7/ Approving Agreement between the City of Chula Vista Redevelopment Agency and Hargis & Associates, Inc, for Environmental Consultant Services SUBMITTED BY: OJ""", "fComm""i~ ~l"pm"" (~. Director of Public Work ~ REVIEWED BY: Executive Directo~(i \:ìtÒs./ (4/5ths Vote: Yes...K..-No_) BACKGROUND: At 2:00 P,M. on August 23, 1995, in Conference Room 2 of the Public Service Building, the Director of Public Works received bids for "Soil and Groundwater Remediation for the Corporation Yard in the City of Chula Vista, CA (RD-215)". This work includes the design and implementation of a system to remediate groundwater and soil, if necessary, at the City's Public Works Corporation Yard, located at 707 "F" Street. The work is being done to comply with a cleanup and abatement order (CAD No, 89-38) issued by the California Regional Water Quality Control Board (RWQCB) on April 21, 1989 and subsequent revisions. The latest revisiott, issued in January, 1994 requires the City to complete remediation activities by January 15, 1996. RECOMMENDA nON: I) That the City Council adopt a resolution appropriating $111,556 for and approving a loan from the unappropriated balance of Fund #222, Trunk Sewer Capital Reserve Fund to the Redevelopment Agency Capital Improvement Project account #997-9970-RD215 and authorizing the Mayor to execute a note memorializing same; 2) That the Agency adopt a resolution accepting bids and awarding a contract for "Soil and Groundwater Remediation for the Corporation Yard in the City of Chula Vista, CA (RD-215)" to Terra Vac in the amount of$91,582 and approving the project budget as proposed, 4-/ , Page 2, Item~ Meeting Date 10/17/95 3) That the Agency approve the resolution approving the agreement with Hargis & Associates, Inc, for Environmental Consultant Services BOARDS/COMMISSIONS RECOMMENDATION: Not applicable, DISCUSSION: The City began operations at the "F" Street Public Works Corporation Yard in the 1960's, To dispose of dry paint, paint sludge, solvents and paittt thinners, staff dug two pits at the southwestern portion of the site, a practice common at that time (Exhibit 1). The first pit (vertical pit) was constructed of an approximate 3-foot diameter 20 foot long corrugated pipe placed vertically into the ground, The bottom of the vertical pit was open to the underlying soil and was filled to capacity by the late '70's. The second pit (horizontal pit) was constructed as a concrete lined trench filled with pea gravel, approximately 10 by 6 feet in size, sloping to a maximum depth of approximately three to five feet to replace the filled vertical ptt. In June, 1984, the County Department of Health Services (CDHS) ordered the City to stop using the horizontal pit. In January, 1988, the RWQCB determined that the pits were subject to the Toxic Pits Cleanup Act of 1984 and issued Cleanup and Abatement Order No, 89-38, Itt late 1990 and early 1991, both pits were excavated and the construction debris and pit contents were properly disposed of and the contaminated soil removed. The RWQCB, determined that although the soils contamination had been substantially eliminated, the groundwater contained contaminants that needed to be remediated, Since 1991, staff has evaluated various groundwater remedial action alternatives, working with consultants and RWQCB staff. The existing contaminant levels (as of 6/95) and the levels to be achieved through, this contract are as follows: Constituent Existing Measured MCL-/Action Level (ug/1) Levels ug/l Benzene 19 - 187 1.00 Toluene 376 - 1460 100 Ethylbenzene 91 - 270 680 Total Xylenes 116 - 411 1,750 Total Petroleum Hydrocarbons 1900 - 8100 100,000 -Maximum Contaminant Level The bid documents were prepared to enable the Agency to enter into a result-oriented contract. The documents did not specify a method or technology for the remediation work Instead, we encouraged innovative and developed techttologies, provided the Contractor demonstrated proven effectiveness of the technology and knowledge and experience in its implementation, t/-~ - - Page 3, Iteml Meeting Date 10/17/95 Bids were received from six Contractors, one of which was considered to be non-responsive as it failed to submit a required des cri pti 0 n/ do cum en tati on of their proposed method/technology. The bids, in the order we received them, were as follows: Contractor Method/Technology Proposed Bid Amount Terra Vac - Newport Beach Insitu Oxidation $100,200 PRC Environmental Insitu Enhanced Bioremediation $ 83,970 Management Inc - San Diego Geocon Environmental - San Natural Attenuation Remediation $ 40,000 Diego Deep, Inc, - Santee No informatiott submitted with $277, 110 bid proposal Hardgrave Environmental Pump & Treat - Discharge of Consulting, Inc, - San Diego Groundwater: A) to sewer $101,550 B) to subsurface ittfiltration gallery, treat & reintroduce to source $ 94,911 Kleinfelder - San Diego Air Sparging Vapor $163,625 Extraction/Inj ection Staff, with the guidance of a consultant, Hargis & Associates, Inc" reviewed the five proposals attd selected three for further evaluation, The proposals selected were from Terra Vac, PRC Environmetttal Management Inc, (PRe), and Geocon Environmental (Geocon). The first two companies proposed insitu remediation, while the third company proposed natural attenuation remediation (do nothing). The two firms not selected for further evaluation were Hardgrave Environmental Consulting, Inc, and Kleinfelder. These firms proposed pump & treat and air sparging vapor extractiott/injectiott remediation, respectively, These two technologies were found to be too time consuming, expensive and/or ittappropriate for our site by previous studies and our consultant. An interview of the short listed firms was conducted on September 7, 1995. The firms were asked to describe their proposals in more detail and to expand on the process they would follow if selected for the contract. Both Geocon and PRC proposed to work for and obtain a "letter of non-attainment" from the RWQCB at the conclusion of their cotttract activities, Terra Vac, on the other hand, proposed to work for attd obtain a "letter of closure," The difference between these letters and how they relate to our needs is further discussed herein below. q~j ._. - Page 4, Iteml Meeting Date 10/17/95 Basically, Geocon proposed to utilize the extensive investigations to gather data to present to the RWQCB and request site closure without the need to do additional remediation. The basis for their approach can be summarized as follows: . The site has been extensively investigated (we received 22 quarterly monitoring reports, an air sparging model study, and other historical records, which show that the contamination is somewhat decreasittg through natural means. . We removed the source of the groundwater contamination to a distance of about 15 feet from the former vertical pit location, . The groundwater gradient is relatively flat (0.0004 ft/ft) which combined with a low ground waterflow velocity (less than 1 foot/year), result in ttO driving force to move the contamination off the site. In order to substantiate their claim, and only if the RWQCB requires it, Geocon also proposed to perform a Fate and Transport study, This study is designed to estimate distribution and stability of contaminants in the environment, and to compute likely direction of groundwater and contaminant movement. We seriously discussed Geocon's proposal with RWQCB staff, as it is the least costly alternative. Based on this discussion, we learned that Geocon's approach is not inconsistent with their current procedures under State Board Resolutions No, 6816 and 9249, We were reminded that the Regional Board is expecting the City to take remedial action(s) in compliance with the cleanup and statement order, In the event the Board accepted Geocon's approach, however, they may impose lottg term monitoring conditions, which may affect any future sale of the property. The monitoring would be required until natural degradation lowers the contaminant level to below the action level at which closure would occur. Such monitoring would probably be at a reduced scale and frequency of possibly as little as once every year or two instead of every quarter. While this monitoring is only estimated to cost between $3,000 and $4,000 per report, based on observed trends, the City could be required to continue monitoring for 20 or more years with no remediation efforts taking place, Based on the monitoring program outlined below, it is anticipated that this monitoring could cost as much as, or more than, $96,000 in today's dollars. In addition, the need for long term monitoring and lack of closure could affect any future sale of the property, Based on this advice, therefore, we rejected Geocon's approach from any further consideration, PRC Environmental and Terra Vac proposed insitu remediation. Both would inject Hydrogen Peroxide into the groundwater to enhance biodegradation (PRe) and/or to chemically destroy Hydrocarbons (Terra Vac). The table below summarizes the major factors we used to compare the companies and make a selection, J-j-1 -. Page 5, Item~ Meeting Date 10/17/95 Company PRC Environmental Terra Vac Technology Enhances in Situ bioremediation using In Situ oxidation Proposed an oxygen releasing compound injects hydrogen peroxide, (hydrogen peroxide) in a relatively low in a higher concentration concentration to decrease contaminant into 4 wells (2 new, 2 concentration at the site. No new wells existing), fractures soil for proposed. solution to move & react with hydrocarbons, Time less than I year to complete 3 months, may require Requirement* more than I treatment. Company/ 30 yrs. in business - 12 years in business, Personnel John Mettatti - experiettced in County International Company - projects/regulations. New to San Diego Co, Has never Attained Closure Letter from Satt Diego RWQCB. Major Assumes Non Attainment Zone - Assumptions Policy will be approved, RWCQB Letter of Non Attainment. Letter of Closure and Action No guarantee of clean up Cleanup guaranteed, Yard Requires about 80 sq, ft. area No area requirements Area (equipment is mobile) Requirements City's City to pay for water disposal (purge City to pay cost of wells Responsibilities water) about $300/55 gal. drum, in excess of 2, if required disposes of all well abandonment by RWQCB ($3000/well) wastes (about $2400) Cost Original $83,970 bid Original $100,200 bid reduced to $60,000 reduced to $91,528 Based on our interview, conversation with RWQCB staff attd our consultant's recommendation we selected Terra Vac to receive the contract. There were two significant factors that made us prefer Terra Vac over PRe. They were: 1/--5 Page 6, Item~ Meeting Date 10/17/95 a) Terra Vac's willingness to guarantee the clean up of the site; and b) Terra Vac's commitment to obtain a Letter of Closure from the RWQCB as a conclusion to the clean up process, The table below summarizes the difference between a Letter of Closure and a Letter of Non Attainment (proposed by PRC). COMPARISON OF LETTER OF CLOSURE AND LETTER OF NON-ATTAINMENT FROM RWQCB LETTER OF CLOSURE NON-A TT AINMENT no further action required further action may be required acceptable to Banks and developers in may not be acceptable to Banks and the event of property sale developers in the event of property sale or could cause difficulty in closing a sale if acceptable removes liability City maintains liability full property value maintained may reduce property value It should be noted that in order to encourage the City to award them the contract, Terra Vac agreed to lower their origittal bid price of $100,200 to $91,528 ($7,558 above PRC's) due to staff's negotiation efforts, In order to lower the price, Terra Vac made two new wells that they proposed to drill be optional items. These wells would only be installed if the RWQCB required them, If they were mandated by the Board, the City would have to pay the additional cost of $3,000 to $4,000 per well, Based on conversations with Terra Vac, PRC (whose bid did not include additional wells), RWQCB and our consultant (Hargis & Associates) staff does not believe they will be needed. Subsequent to learning that we were proposing to recommend award of the contract to Terra Vac, PRC lowered their bid price to $60,000 putting Terra Vac's proposal $31,528 higher. Attached as Exhibit C is a copy of the revised bid price proposal. As a result of this new information staff did quite a bit of additional research in order to make a recommendation on award of the contract. The basic difference is guaranteed closure with no long term monitoring under the more expensive Terra Vac proposal versus an uttknown monitoring period under the less costly PRC bid, 1 In addition to guaranteed closure, which in staff's opinion has an undetermined value, the post monitoring under non-attainment would further close the price differential. Monitoring of the site would have to be done until natural biodegradation lowered the contaminant levels to below the MCL/ Action level attd none of the 1 Under the Terra Vac proposal they originally indicated the possibility that the RWQCB may require a couple of quarterly mouitorings after closure letter was received to be certain that no previously undetected contamination would migrate out of the site and that the City would be required to pay these post closure monitoring costs. In subsequent negotiations with Terra Vac staff succeeded in convincing them that these were part of the "guaranteed closure" costs and a maximum of two quarterly monitoring reports would be included in their revised bid price of $91,528. IJ-þ Page 7, Item~ Meeting Date 10/17/95 parties consulted could give a firm estimate of how long that would be, Estimates based on these discussions indicated a range from as short as 2 years to 10 or more years, 2 Staff believes a reasonable estimate is 4 to 5 years of monitoring. Also, based on discussions with a RWQCB representative, staff also believes that a reasonable scenario would be quarterly monitoring for the first year and annually thereafter. This would require 7 (4 years) to 8 (5 years) reports at a cost of $3,000 to $4,000 each, Therefore, the range of total additional cost for post monitoring under the PRC proposal could be $21,000 to $32,000, However, PRC could give no guarantee as to how long the site would have to be monitored under their non- attainment proposal. Based on this information staff is recommending award of the contract to Terra Vac because of the following reasons: a) Terra Vac guarantees closure of the site. Performance and Labor/materials bonds required in the contract give the City the ability to back up the guarantee, b) If the City wishes to sell the property while in the monitoring period arrangements would have to be included in any sales contract to allow the City to continue these efforts. c) A Letter of Closure is better received than a Letter of Non-attainment by financial institutions. There is uncertainty as to how a Letter of Non-attainment may impact loan approval commitments in the event the property is sold, d) The cost of the post monitoring could exceed the current cost savings. e) "Cleaning up the contamination" is a more positive action that allowing it to remain even though it is contained and naturally degrading, Disclosure Statement Attached is a copy of the Contractor's statement (Exhibit 2), Environmental Status The City Environmental Review Coordinator has reviewed the work involved on the project and determined that the project is exempt from CEQA under Class 8, Action by Regulatory Agency for Protection of the Envirottmettt. Prevailing Wage Statement The source of funding for this project is redevelopment funds. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California, and were determined to be applicable to the work to be done. No special minority or women owned 2 This monitoriug would be shorter than under the Geocon proposal because PRC is doiug some bioremediation which will initially lower the contamination levels and leave a more favorable environment for subsequent natural biodegradation, 1-7 -- - Page 8, Item~ Meeting Date 10/17/95 business requirernents were necessary as part of the bid documents. Disadvantaged Business were encouraged to bid through the sending of the "Notice to Contractors" to various minority trade publications, Financial Statement FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount $91,528,00 B. Staff 5,000.00 C. Contingencies (Approximately 15%) 14,152,00 D, Hargis & Associates Consultant Services 10,000,00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $120,680,00 FUNDS AVAILABLE FOR CONSTRUCTION A. Paint Pit - RD215 $9,124,00 B, Loan to Redevelopment Agency CIP RD-215 $111,556.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $120,680.00 Consultant Monitoring Services On April 26, 1995, the City retained Hargis & Associates to help in the preparation of the bid specifications and review the feasibility of the bids received, The costs for these services amounted to $9,780 and fell within the City Manager's approval limits set by Section 1009 of the City Charter. The contract with Hargis & Associates, as prepared/reviewed by the City Attorney's Office, provided a provision to enable the City to expand Hargis's services to review the contractor's design plans, monitor the clean up activities, and negotiations with RWQCB staff, in the event these services were required. Now that the City has selected Terra Vac to perform the cleanup activities, staff recommends that the provision in Hargis's contract be exercised. City staff does not have the technical expertise to adequately insure these activities are being carried out properly. The fee for these services total $10,000, which would bring Hargis's cumulative total cotttract amount to $19,750, Hargis's expertise is considered essential to enable staff to monitor/enforce Terra Vac's guarantee of the clean up results, Trunk Sewer Capital Reserve Fund The Trunk Sewer Capital Reserve Fund has a cash balance of $14,307,976. While it is expected that the costs for the Metro Sewer Upgrade and other sewer infrastructure needs will greatly escalate over the next few years, drawing down the existing reserves, most of these costs will be spread over a number of years, Since most of the projected infrastructure needs are still some years off, the proposed advances to the Agency are not expected to have any negative impact on the City's ability to fund sewer needs over the next few years. tfrf -. Page 9, Item~ Meeting Date 10/17/95 In a legal opinion to the City Council dated November I, 1994, the City Attorney discussed the constraints under which the sewer fund may make interim interfund loans to other operating funds, Staff has reviewed that opinion and this proposed loan complies with those conditions, The City Attorney also recommended that the loan be memorialized by a written and fully executed note from the sewer fund to the borrowing fund, The resolution appropriating funds for the loan includes the authorization for the Mayor to sign that note. FISCAL IMPACT: If the Redevelopment Agency approves the Terra Vac contract, the following budget is recommended: Terra Vac Contract $91,528,00 15% contingency 14,152.00 Staff time 5,000,00 Hargis & Associates Consultant Services 10000.00 Total Project $120,680.00 Because of the nature of the work that must be undertaken, it is recommended that a 15% contingency be approved with the contract. Also, it is recommended that Hargis & Associates be retained for the duration of the clean-up to oversee the remediation process and to coordinate with the County Department of Hazardous Waste, The Town Centre II Redevelopment Project Area has funded most of the paint pit clean-up to date in preparation for redevelop of the property. The Town Centre II does not have the cash to fund this final phase of the groundwater clean-up; therefore, it is beittg recommended that the Sewer Fund loan to the Redevelopment Agency, the $111,556 necessary to complete the site clean-up. Once the remediation work has been completed to the satisfaction of the Regional Water Quality Control Board, the Redevelopment Agency can aggressively move forward to redevelop the site, The costs related to site preparation can be reimbursed to the Redevelopment Agency when the property is sold and in turn the Agency can repay the Sewer Fund at that time. The Trunk Sewer Capital Reserve Fund currently has an unappropriated balance of funds that are being held in reserve for future improvements to the City's sewer system. It is anticipated that the sale of the property (and reimbursement of the loans) would occur before the loan amount would be needed for sewer improvements, Exhibit A: Locator Map Exhibit B: Disclosure Statement Exhibit C: PRC Revised Bid M,lhomo\ongino~\agonda"o¡lremd.RS) Filo no. 0735-1Q-RD215 q ~ Cf - This page blank. H --/0 RESOLUTION NO. / ð'tJ 72 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING FUNDS AS A LOAN FROM THE UNAPPROPRIATED BALANCE OF FUND #222, TRUNK SEWER CAPITAL RESERVE FUND TO THE REDEVELOPMENT AGENCY CAPITAL IMPROVEMENT PROJECT RD215 AND APPROVING A NOTE MEMORIALIZING SAID LOAN WHEREAS, at 2:00 p.m. on August 23, 1995, in Conference Room 2 of the Public Service Building, the Director of Public Works received bids for "Soil and Groundwater Remediation for the Corporation Yard in the City of Chula Vista, CA (RD-215)"; and WHEREAS, this work includes the design and implementation of a system to remediate groundwater and soil, if necessary, at the City's Public Works Corporation Yard, located at 707 "F" Street; and WHEREAS, the work is being done to comply with a cleanup and abatement order (CAO No. 89-38) issued by the California Regional Water Quality Control Board (RWQCB) on April 21, 1989 and subsequent revisions; and WHEREAS, the latest revision, issued in January, 1994 requires the City to complete remediation activities by January 15, 1996. NOW, THEREFORE BE IT RESOLVED that the city Council of the City of Chula vista does hereby appropriate $111,556 for and approve a loan from the unappropriated balance of Fund #222, Trunk Sewer Capital Reserve Fund to the Redevelopment Agency Capital Improvement Project Account #997-9970-RD215. Presented by ~,~ Chr~s Salomone, Director of Community Development c: \Res\Fund222 q-IJ This page blank. Jf ,,1')- - --.-- RESOLUTION NO.~ RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ACCEPTING BIDS, AND AWARDING CONTRACT FOR "SOIL AND GROUNDWATER REMEDIATION FOR THE CORPORATE YARD IN THE CITY OF CHULA VISTA, CA (RD-215)" WHEREAS, the Redevelopment Agency of the city of Chula vista has received the following six sealed bids at 2:00 p.m. on August 23, 1995 in Conference Rooms 2 of the Public services Building for "Soil and Groundwater Remediation for the Corporation Yard" in the City of Chula Vista, CA. One of which was considered to be non-responsive as it failed to submit a required description/documentation of their proposed method/technology. The bids, in the order we received them, were as follows: Contractor Method/Technology Bid Amount Proposed Terra Vac - Newport Insitu Oxidation $100,200 Beach PRC Environmental Insitu Enhanced $ 83,970 Management Inc - San Bioremediation Diego Geocon Environmental Natural Attenuation $ 40,000 - San Diego Remediation Deep, Inc. - Santee No information $277,110 submitted with bid proposal Hardgrave Pump & Treat - Environmental Discharge of Consulting, Inc. - Groundwater: $101,550 San Diego A) to sewer B) to subsurface infiltration $ 94,911 gallery, treat & reintroduce to source Kleinfelder - San Air Sparging Vapor $163,625 Diego Extraction/Injection ..x- ~-/3 - WHEREAS, the staff, with the guidance of a consultant, Hargis & Associates, Inc., reviewed the five proposals and selected three for further evaluation. The proposals selected were from Terra Vac, PRC Environmental Management Inc., Geocon Environmental Geocon). WHEREAS, an interview of the short listed firms was conduced on September 7, 1995. The firms were asked to describe their proposals in more detail and to expand on the process they would follow if selected for the contract; and WHEREAS, staff has reviewed Geocon, PRC, and Terra Vac. Both Geocon and PRC proposed to work for and obtain a "letter of non-attainment from the RWQCB at the conclusion of their contract activities. Terra Vac, on the other hand, proposed to work for and obtain a "letter of closure." ; and WHEREAS, Staff seriously discussed Geocon's proposal with RWQCB staff, as it is the least costly alternative. Based on this discussion, we learned that Geocon's approach is not inconsistent with their current procedures under State Board Resolutions No. 6816 and 9249; and WHEREAS, in the event the Board accepted Geocon's approach, however, they may impose long term monitoring conditions. The need for long term monitoring and lack of closure could affect any future sale of the property. Based on this advice, therefore, we rejected Geocon's approach from any further consideration; and WHEREAS, based on our interview, conversation with RWQCB staff and our consultant's recommendation we selected Terra Vac to receive the contract; and WHEREAS, There were two significant factors that made us prefer Terra Vac over PRC. They were: a. Terra Vac' s willingness to guarantee the clean up of the site; and b. Terra Vac's commitment to obtain a Letter of Closure from the RWQCB as a conclusion to the clean up process. The table below summarizes the difference between a Letter of Closure and a Letter of Non Attainment(proposed by PRC) ......2-/ 1--1'1 - COMPARISON OF LETTER OF CLOSURE AND LETTER OF NON-ATTAINMENT FROM RWQCB LETTER OF CLOSURE NON-ATTAINMENT no further action required further action may be required acceptable to Banks and may not be acceptable to Banks developers in the event of and developers in the event of property sale property sale or could cause difficulty in closing a sale if acceptable removes liability City maintains liability full property value maintained may reduce property value WHEREAS, in order to encourage the city to award them the contract, Terra Vac agreed to lower their original price of $100,200 to $ 91,528 ($7,588 above PRC'S) due to staff's negotiation efforts. Subsequently, PRC lowered their bid price to $60,000 putting Terra Vac's proposal $31,528 higher); and WHEREAS, the staff did quite a bit of additional research in order to make a recommendation on the award of the contract. The basic difference is guaranteed closure, which in staff's opinion has an undetermined value, the post monitoring under non- attainment would further close the price differential. Based on this information staff is recommending award of the contract to Terra Vac because of the following reasons: a) Terra Vac guarantees closure of the site. Performance and Labor/materials bonds required in the contract give the City the ability to back up the guarantee. b) If the City wishes to sell the property while in the monitoring period arrangements would have to be included in any sales contract to allow the city to continue these efforts. c) A Letter of Closure is better received than a Letter of Non-attainment by financial institutions. There is uncertainty as to how a Letter of Non-attainment may impact loan approval commitments in the event the property is sold. d) The cost of the post monitoring could exceed the current cost savings. ...a-- /-f' - /5 .,_. - e) "Cleaning up the contamination" is a more positive action that allowing it to remain even though it is contained and naturally degrading. WHEREAS, no special minority or women owned business requirements were necessary as part of the bid documents and disadvantaged businesses were encouraged to bid through the sending of the "Notice to Contractors" to various minority trade publications. NOW, THEREFORE, THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: section 1. The Redevelopment Agency awards the contract for the soil and groundwater remediation for the Corporate Yard inthe city of Chula Vista, California in the amount of $91,528 to Terra Vac. section 4. The Chairman of the Redevelopment Agency is hereby authorized and directed to execute said contract or and on b~alf of the ~develo~ent Agency. ~ Presented by pr ed a t °:1/ Ch~~m~4~- Bruce M, Bo09 ar Community Development Agency Attor ey "rslsoil ~ q-/~ RESOLUTION NO. /17/ RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING AGREEMENT WITH HARGIS & ASSOCIATES, INC. FOR ENVIRONMENTAL CONSULTANT SERVICES WHEREAS, bids were received for "Soil and Groundwater Remediation for the Corporation Yard in the City of Chula vista, CA (RD-215)"; and WHEREAS, this work includes the design and implementation of a system to remediate groundwater and soil, if necessary, at the City's Public Works Corporation Yard, located at 707 "F" Street; and WHEREAS, Staff, with the guidance of Hargis & Associates, Inc., reviewed the proposals and selected three for further evaluation. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of Chula vista does hereby approve the agreement with Hargis & Associates, Inc. for environmental consultant services, a copy of which is on file in the office of the Secretary to the Redevelopment Agency as Document No. (to be completed by the Secretary to the Redevelopment Agency in the final document). BE IT FURTHER RESOLVED that the Chairman of the Redevelopment Agency of the City of Chula vista is hereby authorized and directed to execute said agreement on behalf of the Redevelopment Agency of the city of Chula vista. BE IT FURTHER RESOLVED that the Redevelopment Agency of the City of Chula vista approve the attached Interfund Promissory Note and authorize the Chairman to execute same. Presented by ÛL. ,<;~ Chris Salomone, Director of Community Development c: \Res\Hargis.Agt ;/ - /1 - Interfund Promissory Note Note Amount: $111,556 Note Date: October 17, 1995 Debtor Fund: Redevelopment Agency Captial Improvement Project Account (Account No. 997-9970- RD215) Creditor Fund: Trunk Sewer captial Reserve Fund (Fund No. 222) Loan Purpose: The soil and groundwater remediation of the City's corporate Yard located within the territory of the Bayfront/Town Center Redevelopment Project Area Interest Rate: Average Yield on City of Chula vista's Investment Pool calculated monthly by Finance Director. Compounding Interval: Monthly For valuable consideration received by the fund or account listed above as the Debtor Fund, in connection with the proceeds of a loan for Loan Purpose identified above, the Debtor Fund does hereby promise to repay the Creditor Fund the sum of Note Amount set forth above together with interest thereon calculated at the Interest Rate from the Note Date, and compounded at the Compounding Interval set forth above, on demand by trustees of the Creditor Fund. Debtor Fund by: ( )Mayor of the City of Chula vista ()( Chairman of the Redevelopment Agency of the City of Chula vista Trustees e:\note1.wp q; /8' --- --