HomeMy WebLinkAboutCC AG PKT 2013-06-10 #G SE
AGENDA STAFF REPORT
DATE: June 10, 2013
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Sean P. Crumby P.E., Director of Public Works
SUBJECT: UNDERGROUND STORAGE TANK MONITORING AND
REMEDIATION PROJECT UPDATE
SUMMARY OF REQUEST:
It is requested that the City Council adopt Resolution No. 6380:
1. Approving a Budget Modification 13-12-01 increasing the budget by
$14,000 for the Underground Storage Tank Remediation Project No.
BG 1203; and
2. Authorizing payment of work produced in prior FY11112 within this
amendment for this project.
BACKGROUND AND ANALYSIS:
As recently as 1997, the City had two 5,000 gallon underground storage tanks
containing both diesel and unleaded gasoline. Those tanks were located within
the parking lot west of the Police Station. At that time, federal and state
governments mandated that all underground storage tanks be upgraded,
replaced or removed and the site closed. The City had retained Kleinfelder to
provide reconstruction efforts of the deteriorating storage tanks. However, in
1998 it was determined that is was more feasible and cost effective for the City to
remove the two tanks and contract out for fuel service.
Orange County Health Care Agency (OCHCA) required extensive site
remediation prior to granting closure of the site after the City had the storage
tanks removed. Kleinfelder provided the City extensive remediation in an effort
to close this site. In the past decade, Kleinfelder, Stantec and the most recent
company, Frey Environmental have provided the City with continued remediation
efforts as well as County required monitoring and reporting.
The City has brought the results of the quarterly monitoring to OCHCA on an
annual basis in hopes of allowing closure of the project. Two years ago, when
Frey Environmental was retained, OCHCA stated that they would not allow
Agenda Item — Q
closure of the site any time soon and the City would need to continue monitoring
efforts.
The City of Seal Beach had been reimbursed by the State of California for all
costs related to the cleanup (1998 to 2005). That cleanup ended in 2005, and
the project transitioned to monitoring as the City attempted to get closure.
Recently, the City attempted and was successful in gaining reimbursement from
the State for all of the costs since 2005 for monitoring the project. Frey
Environmental began the documentation for getting Seal Beach reimbursed for
all monitoring and reporting dating back to 2005. Frey's first request from the
State was approved in early 2012. Since that request, the State began a
program to close out lower risk sites across California in an attempt to get sites
closed out while also reducing the pull from fringe locations on the State's fund
budget.
Frey Environmental began working closely with the OCHCA along with the
State's Health Care Agency(HCA) providing close out reports and numerous test
results. These costs are all fully reimbursable from the State.
Frey Environmental typically invoices the City after certain work projects are
completed. They do not submit monthly invoices or progress payment invoices.
Unfortunately, this led to Frey submitting invoices for fiscal year 201212013 that
covered work performed during FY2011/2012. In addition, their current yearly
budget is for $10,000 which had been acceptable to perform OCHCA's required
monitoring and reporting. However, with the added workload to produce
reimbursement paperwork and project closeout paperwork to the HCA and to
OCHCA, Frey will eclipse their allotted yearly budget by approximately $14,000.
The State will reimburse the City 100% for these costs; however, they require
proof of payment with the reimbursement packages in order to reimburse the
City. To date, Frey Environmental has helped recover almost $180,000 in past
City expenses dating back to 2005.
It is anticipated that an additional $14,000 will cover all costs for the current fiscal
year 2012/2013 and the City will budget appropriately in the upcoming fiscal
years to account for the additional reimbursement request and project close-out
work required by the state and the county.
ENVIRONMENTAL IMPACT:
There is no Environmental Impact related to this item.
LEGAL ANALYSIS:
The City Attorney has review and approved as to form.
Page 2
FINANCIAL IMPACT:
This project is budgeted in the approved FY 2012/13 Budget for $10,000. An
anticipated breakdown of funding is as follows:
Description Amount
Budget $ 10,000.00
Invoices (10/12/11 — 11/27/12) $ 15,812.63
Invoices (12/1/12—5/31/13) $ 6,783.75
Probable Invoices (6/1/13—6/30/13) $ 1,000.00
Budget Deficiency $ -13,601.38
The total cost for the project is approximately $24,000. The allocated funds are
not sufficient to complete the project, generating a shortfall of approximately
$14,000. All funds expensed on this project are 100% reimbursable.
RECOMMENDATION:
It is requested that the City Council adopt Resolution No. 6380:
1. Approving a Budget Modification 13-12-01 increasing the budget by
$14,000 for the Underground Storage Tank Remediation Project No.
BG1203; and
2. Authorizing payment of work produced in prior FY11/12 within this
amendment for this project.
SUBMITTED BY: NOTED AND APPROVED:
Sean P. Crumby, P.E. 111A. Ingram, City 1an ger
Director of Public Works
Prepared by: David Spitz, Associate Engineer
Page 3
RESOLUTION NUMBER 6380
A RESOLUTION OF THE SEAL BEACH CITY COUNCIL
INCREASING THE ALLOCATION OF FUNDS FOR THE
UNDERGROUND STORAGE TANK MONITORING AND
REMEDIATION PROJECT NO. BG1203
THE SEAL BEACH CITY COUNCIL DOES HEREBY RESOLVE:
SECTION 1. The City Council hereby approves Budget Modification No. 13-12-
01 allocating additional General Funds in the amount of$14,000 to Underground
Storage Tank Monitoring and Remediation Project and authorizes the City
Manager to make payments on behalf of the City for work performed.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a
regular meeting held on the 10th day of June , 2013 by the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
Mayor
ATTEST:
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6380 on file in
the office of the City Clerk, passed, approved, and adopted by the City Council at
a regular meeting held on the 10th day of June , 2013.
City Clerk