HomeMy WebLinkAboutStaff Report 5.C 06/06/2011DATE:
TO:
FROM:
SUBJECT:
June 6, 2011
tlg.endu/ Item # 5.G
Honorable Mayor and Members of the City Council through City Manager
Larry Zimmer, Public Works Capital Improvements Division Manager
Resolution Authorizing a Loan from Risk Management Reserve Funds to the
Payran UST Site Remediation Project
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing a loan from
Risk Management Reserve Funds to the Payran UST'Site Remediation Project.
BACKGROUND
301 Payran Street is the former site of a City fire station and an underground storage tank (UST)
that was removed in, or around, 198.8. Since removal of the underground tank, the site has had
an extensive history of subsurface investigations and remediation,work. Groundwater sampling
and analysis has confirmed that both onsite and offsite groundwater is impacted with petroleum
hydrocarbons. Previous remediation work has included installation.of numerous monitoring
wells, installation and operation of a "pump and treat" extraction/cleanup system (work
completed by Van Houton Consultants, 1988- 1995), evaluation of nearby domestic water wells,
and a soil vapor study to evaluate potential impacts from contaminated groundwater. The soil
vapor study was negative and no domestic wells have been impacted.
Per the California Code of Regulations, Title 23 Waters, Division 3, State Water Resources
Control Board and Regional. Water Quality Control Boards, Chapter 16 Underground Tank
Regulations Article 11 Corrective Action Requirements, the City of Petaluma is required to
continue remediation of the 301 Payran Street site until it is con_ sidered closed. The Sonoma
County Department of Environmental Health acts as the .Local Oversight. Program (LOP), on
behalf of the State Water Resources Control Board, and monitors the City of Petaluma efforts to
remediate the 301 Payran Street site.
Subsequent to the soil vapor, study, the City of Petaluma contracted with - Gallardo and Associates
to conduct regular quarterly groundwater monitoring at the 301 Payran Street site and to provide
a new work plan. Gallardo and Associates completed a pilot study under guidance from the
Sonoma County LOP, and developed a proposal,to install a dual phase extraction/treatment
system. Conceptually, this treatment system consists of a series of extraction wells and a carbon
filter treatment system that cleans and discharges water to the sewer system (with approval from
Agenda Review:
City Attorney Finance Director City Manager
the City). If the proposed treatment system is successful, the 301 Payran Street site would be
officially closed to further remediation efforts.
Expenditures for remediation at the 301 Payran Site are, eligible for reimbursement from the
State Cleanup Fund. Revenue for the State Cleanup Fund is generated from a fuel storage fee
(currently 1.4 cents) for every gallon of petroleum products placed into USTs. Cleanup funding
is available on a reimbursement basis, with a limit of $1.5 million per site, with a one -time
$5,000 deductible. Since cleanup began, the 301 Payran Street.site has been continually
collecting reimbursements, and to -date, the City has received $738,745•.14 of State Cleanup
Funds. The estimated cost for the remediation and closure of the site is approximately $600,000.
This amount, in addition to the money spent to date, amounts to approximately $1.34 million.
Therefore, since it is critical that the City's next attempt at remediation is successful in closing
out this site, on October 5, 2009 staff requested City Council' authorize a transfer of $20,000
from PCDC funds to have, a technical expert review the recommended plan and work with the
County Department of Environmental Health to assure optimal use of the City's remaining
Cleanup Funds.
During the time of the third party review, the State provided a five -year review document,
recommending the City proceed with the dual extraction system. Although it is possible for the
City to continue ground water monitoring during this current budget cycle, if a remediation
system to clean up and close out the site does not proceed by the next review period, the State
may begin to pressure the City to act.
DISCUSSION
The conclusion of the third party review was that a dual • extraction/treatment system meeting the
requirements from the last County review should meet City's goal of closing the site. Staff
recommends moving forward with the' remediation plan in a timely manner, since postponing the
remediation work will increase. the total .cost of the work and prevent closure of the site, which is
needed for the site to be fully utilized in the future.
Since the State Cleanup Fund works on a reimbursement basis, the City must provide the up-
front money to complete the work. Recently the State Cleanup Fund has had insufficient funds
to reimburse .agencies on a.timely basis, and the situation is expected to worsen rather than
improve: Although it eannot be determined when the City would be reimbursed for future
expenses, full reimbursement is expected within five years. For this reason, a longer term loan is
needed to "fund the remediation work, and staff is recommending a loan from the Risk
Management Reserve Fund. This Fund is comprised of contri'buti'ons from all of the City
departments, to be used by Risk Management to prevent, investigate, defend, and settle claims.
It should be noted that the 'City's insurance coverage does not include' this specific type of loss,
nor is the Risk Reserve Fund actualized for pollution types of claims. The current fund balance
is $3,976,570.
NJ
Staff recommends that the third party review consultant, ECON, prepare the corrective action
plan, coordinate with the Sonoma County LOP contact, and request bids from remediation
contractors to implement the approved system.
FINANCIAL IMPACTS
The table below provides an estimated project cost of approximately $600,000. The unknown
element is how long the extraction system will need to operate in order to adequately reduce the
level of contaminants from the wells. It is estimated from the previous pilot test that it could be
as quickly as one season, but could take up to two years, and potentially longer.
A loan from the Risk Management Reserve Fund will be transferred to the project on an as-
needed basis. In addition, all reimbursements from the State will be,.utilized in advance of Risk
Management. Reserve Funds. Public Works staff will provide a summary of expenditures,
reimbursements, and loan balance on a yearly basis, or upon request. It is anticipated that all
funds loaned from the Risk Management Fund will be reimbursed in full (interest free) within
five years of the first transfer. In the unexpected event that additional funds are required, a
funding recommendation will be developed and presented for Council's consideration. The only
non - eligible reimbursement, cost from the State Cleanup Fund would is staff time to oversee the
consultants working on the project. Staff time is currently estimated at $45,000 for the
remaining life of the project, but wilt depend on the length of'time for the remediation effort.
Staff time for the current fiscal year, and for fiscal year 20.11 -.12 is assigned to PCDC funding.
Funding for staff time in fiscal year 2012 -13, if needed, has not yet been identified.
a
3�
�" Uses �
4-
a
Estimated
�Budget "
Estimated State
� Retrritiur "sement�
Legal
$ -
$ -
Planning/Environmental
$ 25,000
$ 25,000
Well Drilling
$ 50,000
$ 50,000
Dual Phase Extraction ,System
$ 250,000
$ 250,000
Extraction Process (2 yrs est.)
$ 125,000
$ 125,000
Monitoring /Closeout Process (3 yrs)
$ 98,150
$ 98,150
Administration
$ 45,000
TOTAL
$ 593,150
$ 548,150
Funding Sources
PCDC Funds
$ 20,000
Not yet determined
$ 25,000
State Cleanup Fund
$ 548,150
ATTACHMENT 1
RESOLUTION AUTHORIZING A LOAN FROM RISK MANAGEMENT RESERVE
FUNDS TO THE PAYRAN UST SITE REMEDIATION PROJECT
WHEREAS, 301 Payran Street, site of a former fire station and underground storage
tank, has had an extensive history of subsurface investigations and remediation work since
approximately 1988. Groundwater sampling and analysis has confirmed that both onsite and
offsite groundwater is impacted with petroleum hydrocarbons; and
WHEREAS, the City of Petaluma has an obligation to the State Water Resources
Control Board to continue remediation at the 301 Payran Street site; and
WHEREAS, staff has estimated the cost for the remediation work to be approximately
$600,000; and
WHEREAS this work is eligible for reimbursement from the State Cleanup Fund; and
WHEREAS, due to unpredictable revenue into and expenditures from the State Cleanup
Fund, the timing of the reimbursements cannot be predicted; and
WHEREAS, the Risk Management Reserve Fund has adequate funds to loan the Payran
UST Remediation Project; and
WHEREAS, Public Works Staff will have available, at all times, full accounting of the
amount of money loaned from Risk Management Fund and will provide an annual summary.
NOW, THEREFORE, BE: IT RESOLVED that the Petaluma City Council:
.Authorizes an interest free loan from the Risk Management Fund for the
remediation , of the 301 Payran site, with a not -to- exceed amount of $600,000, to be paid back in
full within five years of initial transfer; and
2. Authorizes future budget transfers within the approved loan amount on an as-
needed basis from the Risk Management Fund to Project rdal00340.
5
ATTACHMENT 2
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ATTACHMENT 3
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Linda S. Adams
Secretatr fin
Envirmimental Protection
State Water Resources Control Board
Division. of Financial Assistance
1001 1 Street • Sacramento California 95814
P.O. 13ox.944212 • Sacramento. Califo mia • 94244 -2120
(916)341 - 56601'3X 341 -5806 . w ww.+ vaterboards .ca.gov /cwpllolne /ustef
Arnold Schwarzenegger
Governor
PRELIMINARY
USTCF 5 -YEAR REVIEW SUMMARY
USTCF Claim No.: 8678
Claimant Name: CITY OF PETALUMA
Site Name: ELLWOOD CENTER
.Site Address: 301 PAYRAN ST
PETALUMA, CA 94952
City: PETALUMA
Region /Caseworker: Sonoma County/
Dale Radford.
Lead Agency Case: 00002618
No: Global ID: T0609700807
Date LOC Issued: 7 /17/98
USTCF Expenditures to Date: $716,250
Priority Class: C
I. CASE INFORMATION:
Tank No.
Size in Gallons
Contents
Closed in Place/
Removed /Active?
Date
1
5,000
Gasoline
Removed
8/31/87
II. RELEASE INFORMATION:
• Source of Release: USTs
• Date of Release: 9/311987
• Affected Media: Soil and Groundwater
III. SITE CHARACTERIZATION INFORMATION:
A. Site Information:
• GW BASIN: Petaluma Valley Plain
• BENEFICIAL USES: Municipal, Irrigation, Industrial
• DISTANCE TO'NEAREST SUPPLY WELL: There are no DHS wells within 1 /2
mile of the site.
• DISTANCE BETWEEN KNOWN SHALLOW GW CONTAMINATION AND
AQUIFER: Impacted
• MINIMUM GROUNDWATER DEPTH: 2.95 feet bgs
• MAXIMUM GROUNDWATER DEPTH: 4.20 feet bgs
• FLOW DIRECTION: Groundwater flow direction beneath the site is east to
southeast at 0.004 ft/ft.
• SOIL TYPES: Soils beneath the property consist of clay, sand and clay layers.
California Environmental Protection Agency
ro
�a Ren-r /eJrnper
7
City OF PETAMLUMA (ELLWOOD ZENTER) -2 August 13, 2009
Claim No. 8678
B. Monitoring Well Information:
Well Designation
Date Installed
Screen Interval (feet bgs)
Most.Recent DTW
2/20/09
G W -1
NA
NA
3.33
G W -2
NA
NA
4.08
MW13
NA
NA
4.20
MW15
NA
NA
2.95
IV. MAXIMUM DOCUMENTED CONTAMINANT CONCENTRATIONS:
Contaminant
Soil (mg /kg)
Water (ug/L)
Maximum
9/91
Latest
date
Maximum
date
Latest
2/20/09
TPH-g
4,600
NA
Free, Product*
5
TPH -d'
NA
NA
Free Product
Benzene
240
NA
F'ree:Product
1,000
Toluene
260,
NA
Free Product
120
Etli lbenzene
26
NA
Free;Product
180
X lenes
300
NA
Free-Product-
420
MTBE
NA
NA
Free Product
TBA
NA
NA
Free Product
1,2 =DCA
NA
NA
Free Product
Lead
NA
NA
PCE
NA''
NA
TCE
NA
NA
NA NOr Availame
Van Houten Report, September 91.
FREE PRODUCT.: Per the information contained in our file,.,gasoline product was
observed floating on water within the tank excavation and monitoring well (Definition of
contaminant plume, December 18, 1991).
VI. SOIL AND GROUNDWATER REMEDIATION:
• Soil Excavation: None Identified.
• In -Situ Soil Remediation: None Identified.
• Soil Remediation :'A Dual Phase Extraction(DPE) pilot test was conducted
in August 2007.
• Groundwater Remediation: A Dual Phase Extraction pilottest,was
conducted in August 2007. DPE workplan is due by October 1,, 2009.
• Groundwater Monitoring Summary: During the February 2009
groundwater monitoring event, four groundwater monitoring wells were
sampled and, tested for presence of petroleum and oxygenate compounds.
TPHg and Benzene were detected in groundwater at concentrations of
5,800 ppb and 1,000 ppb, respectively.
Per'email information from the County of Sonoma, the site has a
remediationsystem installation pending. The City has stopped work at this
time except for monitoring because of the budget concerns.
California Lnriromnental Prolection flge
1 5 Reiycled Paper
8
City OF PETAMLUMA (ELLWOOD CENTER) -3- August 13, 2009
Claim No. 8678
VII. SENSITIVE RECEPTOR SURVEY: None.ldentified.
VIII.. COMMENTS AND, JUSTIFICATION FOR RECOMMENDED ACTION:
Site Description: The site is a former gas station, and currently is an abandoned fire
station. The site is used to provide free food for needy people.
Contaminant Exposure Pathway Evaluation: Unknown
Recommendation: Based on our most recent review of the case file, the site is not a
candidate for low risk site closure. A review of the February 2009 lab'data indicated that
elevated'concentrations of petroleum compounds have been detected in groundwater
beneath the site It should be noted that other than soil removal during tank removal
activities, no soil and groundwater remediation has ever been conducted at the site.
Therefore, the Fund recommends that the County review the DPE workplan, which is
due on October 1, 2009, and direct the RP to implement the workplan, if acceptable.
The Fund will review this case in one year.
Abdul Karim Yusufzai Date
Engineering Geologist
Technical Review Unit
(916) 341 -5742
Robert Trommer, CHG
Senior Engineering Geologist
Chief, Technical Review Unit
(916) 341 -5684
C:�li %ornia Em ii•oninentn %f i•olecGon : lgenci-
R1, , ,III Pnpe1
Date
/J
ATTACHMENT 4
LETTER OF COMMITMENT FOR REIMBURSEMENT OF COSTS
CLAIM NO: 008678
CLAIMANT: CITY OF PETALUMA
CO- PAYEE:
JOINT CLAIMANT:
C /O:
ATTN MICHAELGINN,
MAILING ADDRESS: 169b $T
PETALUMA, CA, 94945
TAX ID /SSA NO: NIA
Subjectto availability of funds, the Stake Water Resources.Control Board,(State Water Board) agrees,to reimburse CITY OF
( Site ). E ). The commi commitment reflected
b c orrective
this Lette sub ect to all of the following terms and conditions: dNISI, PETALUMA, CA 94952
1. Reimbursement shall not exceed $1;500,000; less the applicable ofi$5000.
2. The obligation to pay any sum -under this Letter of Commitment is contingent upon availability of funds. In the event that
sufficient funds are not available for reasons beyond!theveasonable control of'the State'Water Board, the State Water Board
shall, not be obligated,to make any, disbursements hereunder. If anydisburse rents otherwise due,under this Letter of
Commitment are deferred because.of unavailabiiity of funds, such disbursements will'promptiybe made when sufficient funds
do become available. Nothing herein shall 'be.construed: provide the Claimant with a right of;,priority for disbursement over
any other claimant who has ,at similar Letter, of Commitment.
3. All costs for which reimbursement is sought must be eligible for reimbursement and the Claimant must be the person entitled
to reimbursement thereof.
4. Claimant must at all times be in compliance with all,applicable state laws, rules and regulations and with all terms, conditions,
and commitments contained in tie Claimant's Application, and any supporting documents:or in any payment requests
submitted by the Claimant.
5. No disbursement under this.Letterof "Commitment will be made except upon eece.ipt,of acceptable Standard Form Payment
Requests duly executed by or on: behalf of the Claimant. All Payment Requests must be executed by the Claimant or a duly
authorized representative who has.been approved by the Division of Financial Assistance:
6. Any and all disbursements payable under this::;Letter of Commitment maybe withheld if the Claimant is not in compliance with
the provisions of Paragraph 5,above:
7. Neither this Letter of Commitment�nor any right thereunder is assignable by the Claimantwithout the written consent of the
State Water Board. 'In the event of,any such assignment, the. rights of the assignee shalt: be subject to all terms and
conditions set forth in this Letter of, Cornmitment,and° the State Water Board's consent:
8. This Letter of Commitment may be•withdrawn at any time by the State Water Board if completion of corrective action is not
performediwith reasonable diligence.
IVWITNESS'WHEREOF, this Letter of Commitment has been issued by the State;Water Board this 8th day of June, 2010.
STATE WAT SO RCES COO ABOARD
By
Manager; Undergrou6d Storage Tank Cleandp Fund
E.
10
Payment -Summary' Page 1 of 1
Claim No: 8678 Claimant: CITY OF PETALUMA
Request No: 14 Date: 05/17/2010
Region: 2
Eligible
Eligible Third Party
Previous Reimbursement Totals: 721,250.79 0.00'
Current Reimbursement: 17,494.35
.738,745.14 0.00 Carry these amounts forviard to the next "'Spreadsheet" in the
Now Reimbursement Totals: "Amount Requested, Previous Total;' and '7hlyd.Party Costs' columns.,
FOOTNOTES
PAPERLESS REPORTING
All technical reports, workplans, and laboratory data sets must be uploaded to the SWRCB Geotracker vrob site. Therefore, it is no longer necessary to include paper copies of
technical reports in Reimbursement Requests. You are only requested to submit the Geotracker confirmation page(s).
Page 1 of 1
Invoice
' No.
Invoice
Data
Amount
.Requested
e
Eligible
Third -Party
Pending
ineligible.
Fool
'Notes
-
Comments
1
1527.16.
10/23/08
400.00'
0.00
2 -
1527.16b
11/01/08
- 700.00
0.00.
'
3
810489,
-' 10/27108
- 90.00
0
0.00'
4
126.08.
12/05108,
^ "693.75+
5
0.00
5
010.09
02/02109
3,416.35
0.00
6
11009
02/03109
350.00;
350.00
0.00
7
902618
02/27/09
662.00
0
0.00
8
26.09
03/06/09
3,956.35
5
0.00
'
9
44.09
04127/09
j 3,268.75 1 1
3,268.75
0.00
10
1 52.09
05127/09
1 3,956.35 11
3,956.35
1 0.00
11
Sect. 1/1 Subtotals:
17,494.35 11
17,494.3T
1
1 0.00'
Eligible
Eligible Third Party
Previous Reimbursement Totals: 721,250.79 0.00'
Current Reimbursement: 17,494.35
.738,745.14 0.00 Carry these amounts forviard to the next "'Spreadsheet" in the
Now Reimbursement Totals: "Amount Requested, Previous Total;' and '7hlyd.Party Costs' columns.,
FOOTNOTES
PAPERLESS REPORTING
All technical reports, workplans, and laboratory data sets must be uploaded to the SWRCB Geotracker vrob site. Therefore, it is no longer necessary to include paper copies of
technical reports in Reimbursement Requests. You are only requested to submit the Geotracker confirmation page(s).
Page 1 of 1