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HomeMy WebLinkAboutAgenda Bill 3F 10/05/2009CITY OF EETALUMA, CALIFORNIA PETALUMA COMMUNITY DEVELOPMENT COMMISSION m ®ct®ber 5, 2009 ~~~~~~ ~~~ Agenda Title: Resolution Amending the Fiscal Year 2009-10 Adopted CIP Meeting Date: October 5, 2009 Budget to Include the Payran UST Site Remediation Project rda100340, Authorizing Transfer of $20,000 of PCDC Money from the Washington and Meeting Time: 7:00 PM Sixth Street Project GOOS00207 to Project rda100340 Catelrory: ^ Presentation ^ Appointments ~ Consent ^ Public Hearing ^ Unfinished Business ^ New Business Department: Director: Contact Person: Phone Number: Public Works Vincent Marengo Larry Zimmer (707) 776-3674 Total Cost of Proposal or Project: Name.of Fund: PCDC host of complete remediation is unknown at this time. Account Number: 000500207/rda100340 Amount Budgeted: $0 Current Fund Balance: Project 500207 has an approved budget of $2.,051,000. It is anticipated that approximately $100,000 of that budget will be unused at completion. Project balance as of 10/1/09 is $995,337.35 Recommendation: It is recommended that the Commission take the following action: Amend the Fiscal Year 2009-10 adopted CIP budget to include the Payran UST Site Remediation Project rda100340, authorize a transfer of $20,000 ofPCDC money from the Washington and Sixth Street Project 000500207 to Project rda100340 1. ^ First reading of Ordinance approved unanimously, or with unanimous vote to allow posting prior to second reading 2. ^ First reading of Ordinance approved without unanimous vote: Ordinance has been published/posted prior to second reading; see Attachment 3. ^ Other action requiring special notice: Notice has been given, see Attachment Summary Statement: The City of Petaluma is required by the State Water Resources Control Board to continue remediation at the 301 Payran. Street site, which is the former location of an underground storage tank. The City has been in the remediation process since 1988 and staff is recommending a budget transfer in order to hire a consultant to perform a peer review of the information collected to-date, and. to review the current recommendation to construct.a treatment system. Attachmeri'ts to Agenda Packet Item: 1. Resolution 2. Location Map Re , awed b Finance Director: Reviewed by City Attorney: A roved b Mana er: ate: ~ ~~ ~~~ Date: Date: -'~~ ~d' Rev..# 4 Date Last Revised: File: S:\CIP Division\Projects\Payran UST rda100340\Design\330 9/29/09 ~j ~~,/ PCDC-City Council\2009,10.0~ Payran Peer Review.doc 9:00 m 'F ` CITY OF PETALUMA, CALIFORNIA PETAI..iT1VIA ~®1VIlVIiJNITY DEVE>C.OP1dIENT ~®1VIIVIISSI®N ®CTOBER S, 2®®9 AGENDA REPORT FOR RESOLUTION AMENDING THE FISCAL YEAR 2009-10 ADOPTED CIP BUDGET TO INCLUDE THE PAYRAN iTST SITE REMEDIATION PROJECT RDA100340, AUTHORIZING TRANSFER OF $20,000 OF PCDC 1VIONEY FROM THE WASHINGTON AND SIXTH STREET PR®JECT CO®500207 TO PROJECT RDA10034®, AND CONSENTING T®iTSE OF $20,000 IN PETALUMA COMMUNITY I)EVEL®PMENT TAX INCREMENT FUNDS FOR SAID PROJECT 1. RECOMMENDATION: Amend the Fiscal Year 2009-10 adopted CIP budget to include the Payran UST Site Remediation Project rda100340, authorize a transfer of $20,000 of PCDC money from the Washington and Sixth Street Project 000500207 to Project rda100340, and consent to use of $20,000 in Petaluma Community Development Tax Increment Funds for said Project. 2. BACKGROUND: 301 Payran Street is the former site of a City fire station and an underground storage tank that was removed in, or around, 1988. 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, as of this date, 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 considered 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. Since the soil vapor study, the City of Petaluma has 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 has completed a pilot study under guidance from the Sonoma County LOP, and has put together a proposal to install a dual phase extraction/treatment system. Conceptually, this treatment system would consist of a series of extraction wells and a carbon filter treatment system that would clean and discharge water to the sewer system (with approval from the City). If the treatment system is successful, the 301 Payran Street site would be officially closed to further remediation efforts. 2 S:'.C[P Di~~isionl.ProjeetslPayran UST nia100340\Desiun`330 PCDC-Cite- Council\2009. f0.0~ Payran Peet Tte~~ie~ti.<loc 3. )DISCUSSION: The City Fire Marshal's office, has been .managing the site and its remediation efforts. However, they have requested the Department of Public Works assist remediation management up to the ultimate goal of closing out the site. In the past year, the City of Petaluma discussed with the Sonoma County LOP what options were available, since the treatment system is a big expense in the current economy. The following options were discussed: a) Permission by the Sonoma County LOP to continue the quarterly monitoring with no pursuant remediation activity. b) Consider a phased approach of the treatment system and begin by installing the extraction wells. This phase might cost approximately $55,000 and would initially involve authorizing Gallardo and Associates to put together a work plan which lays out the location and depth of the wells. The work plan would be reviewed by the Sonoma County LOP and potentially a "Third Party" or "Peer Reviewer" to check the overall approach. c) Try to fund the full amount required for installation and operation of the treatment system now. The City of Petaluma negotiated with Sonoma County LOP to move forward in contracting with a third party to review past remediation efforts and the recommended treatment system in lieu of continuing the quarterly monitoring at this time. Quarterly monitoring would most likely resume upon completion of the peer review. The Sonoma County LOP approved of this option. 4. I+INANCIAL IMPACTS: 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, and a $5,000 deductible for each claim. Since cleanup efforts began, the 301 Payran Street site has been continually collecting reimbursements., and to date, the City has received approximately $716,250 of State Cleanup Funds. The estimated cost for the proposed treatment system at 301 Payran Street is $692,000, which is eligible for reimbursement. This amount, in addition to the money spent. to date, amounts to approximately $1.4 million. Therefore, since it is critical that the City's next attempt at remediation is successful, staff will use a portion of the $20,000 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, in order to achieve the goal of closing out this site. Creation of the Payran UST Site Remediation Project rda100340 will allow for easier tracking of costs against reimbursements. The $20,000 requested will be used -for costs associated with remediation of the site, but specifically, will pay for athird-party review of the remediation plan, consultant meetings with the County, and continued monitoring. Staff will return to Council with a recommended remediation plan, as well as a recommendation on funding, once a schedule can be determined. 3 S `C:lP [7ieisis}n~..['r~~}eets~Payrxn LST rd~~10(>340iDesign 33(! PCDC'-City Councit`;Z(R19. LO.Q~ Payran Beer Revier4.doC A~AC~~~~~ '~ PETAIiJIVIA COM1VIiJI~TITY DEVELOPMENT COMMISSION RESOLIIJTION AMENDING TILE FISCAL. ~AI2 2009-10 ADOPTED CIP ~~GET T'O II\iCI.IJ1(9E TIDE PAY1tAN ><JST SITE ItElVIEDIATION PROJECT RDA100340, AND AiJTIIORIZING TRANSFER ®F $20,000 OF PCDC 1V>[ONEY FROM TILE WASIONGTON AND SIXTII STREET PROJECT C®0500207 TO PROJECT tI)AI00340, AND CONSENTING TO ITSE OF $20,OOO.IN PETALiJMA COMMUNITY'DEVELOPMENT TAX INCREMENT FUNDS FOR SAID PROJECT WIIEREAS, 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 hydrocarboris; and WIIEREAS, the Petaluma Community Development Commission ("PCDC") has an obligation to the State Water Resources Control Board to continue remediation at the 301 Payran Street site; and WHEREAS, PCDC staff has recommended a second opinion (peer review) for remediation work completed up to this date, as well as assessment as to whether the proposed dual phase extraction/treatment system and estimated cost is the best approach; and WHEREAS, $20,000 is sufficient to meet the requirements for a peer review, plus pay City staff costs; and WI~EE><tEAS, work at the 301 Payran site will be identified as-the Payran UST Site Remediation Project rda100340 ("Project"); and WHEREAS, sufficient PCDC funding for this purpose is available in the Washington and Sixth Street Project 000500207 and will be transferred to Project rda1003401. N®W, THEREFORE, ~E IT RESOLVED that the Petaluma Community Development Commission: 1. Amends the Fiscal Year 2009-10 Adopted CIP Budget to include the Payran UST Site Remediation Project rda100340; and 2. Authorizes a budget transfer in the amount of $20,000 from the Washington and Sixth. Street Project 000500207 to Project rda100340; and 3. Consents to use of $20,000 in Petaluma Community Development tax increment funds for said Project. 4 S^,C[P Di~•ision'+ProjeCts~:Payran ltS~l~ rd~i10034U\Desin'~330 PCDC-City Councill2Cip9.10:4~ Payrin'Peer Review'.doc VICIl~Y APB 301 PAYRI~,N STREET E ,,. ~ I, -~~_ ~ PROJECT SITE ~. ~ ~ ~~ "."~„mw~~.i ~ ~~FAIRGROUNDDRPIE _ v, ~"°°° - r y~~. ~ ~ O ~~ ~ ~~ h r r., ~, ; _,d i~ ~9 Its III ~ A , 14 ~ ~ '! vn. -.mm..nu~ ~w n er~ ~. mx, ..ease- f~ e.~tr~':. erau~.u~a. . PAYRAN 51REET _ PAYRAN STREET !E i ...~y 3 ,wm I I ~ '~I~ III ~~~~ ~~ __ r ~ ~ ~ _,~. _ ~. ~,~ A ' ~1 .~ `ce ~ ~ m ~_~a ~e It ~ ~ ~ ~ ~ ~ ~_ ~~ ~ ~ ~~ 3 ~ ~ V R VALLEJO STREE VAllEJO STR EET "'~. t ~~ i. a, , t ` C ~~ - _ W ~' ° ~ li. _.~ ~ ,~ .. s ~,~~ ; _ ~ ~ ~ ~ ~ ,.~,:.; a~ ~ ~ ~ ~ Em.» , ~ ~ ,, a~ t ~ ! ,: ~~ `~ ~ ~'~' GRAPHIC SCALE: r ~0 150 0 300 PRINTING DATE: SEPTEBIBER 9. 2009