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2014-03-04 City Council Minutes (Special)MINUTES OF THE SPECIAL CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, MARCH 4, 2014, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Maisano, Ybarra, and Martinez MEMBERS ABSENT: None The meeting was called to order at 11:07 a.m. by Mayor McCormick. CHANGES TO THE AGENDA Mayor McCormick announced that there are no changes to the agenda. PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council on any matter on the posted agenda. No one responded. NEW BUSINESS Health and Environmental Control Department 1. Approval to amend contract with PIC Environmental Services to authorize further environmental investigation(s) to obtain closure for the OU2 Industrial Parcel (soil) at the former Thermador site, 5119-5309 District Blvd. Recommendation: (1) Find that the approval of the proposed amendment to the existing contract with PIC Environmental Services to allow additional soil investigations and related remediation activity is exempt from the California Environmental Quality Act (“CEQA”) pursuant to (i) the “catch-all” exemption of CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and (ii) CEQA Guidelines section 15330 because the actions relate to a minor cleanup of contaminated soils to prevent, minimize, stabilize, mitigate, or eliminate the release or threat of release of a hazardous waste or substance which will cost less than $1 million; and (2) Authorize the City Administrator to amend the existing contract with PIC Environmental Services (“PIC”) to increase the existing expenditure cap from $275,000 to $403,000, provided the form of the amended contract is based upon the City’s form professional services agreement. It is further recommended that the City Council find that, consistent with the City Council’s authority under Vernon Municipal Code section 2.17.12(B)(2), the best interests of the City are served by a direct award of the contract to PIC Special City Council Meeting Minutes March 4, 2014 Page 2 of 3 without a competitive selection process because PIC’s rates are competitive, because PIC is already familiar with the underlying work, and because it would be cost prohibitive to request that this work be completed by a firm that is unfamiliar with the substantial history of the project. Director of Health and Environmental Control Leonard Grossberg provided an update on the Thermador site. The site is in its final stages of the environmental investigation for closure by the Department of Toxic Substances Control (“DTSC”). Grossberg explained that the site is divided into three sections. One of which, is the Meta Housing Corporation development project site (OU1) which was issued a “No further action” (“NFA”) letter. The other sections include the industrial site (OU2) and the groundwater portion (OU3). He noted that the OU3 will require oversight by DTSC for a number of years. Grossberg advised that staff has been able to negotiate a work plan to get closure of OU2. He noted a correction to the staff report, as the work plan was not attached as referenced. Grossberg explained that since the approval of the PIC Environmental Services contract, additional work has been identified in order to receive the NFA letter for OU2. The expenditure cap on the contract would need to be increased. Staff is proposing to increase the cap to a not to exceed amount of $403,000. This includes a contingency of $7,000-9,000. In response to City Administrator Mark Whitworth’s inquiry on the amount set aside for cleanup cost, Assistant to City Administrator Alex Kung advised that approximately $300,000 was set aside through East West Bank for cleanup costs. The City will be able to get reimbursed by submitting invoices or during the sale of the property. In response to Councilmember Ybarra’s concerns, Kung advised that the additional costs are not to expedite the work, but to simply conduct the necessary work. Kung explained that there is an urgency as the loan is becoming due, but that East West Bank has been advised of a potential delay. Kung further added that Pacific Industrial, Inc., the potential buyer, has committed funds to the project. It benefits everyone to get this work completed; Kung explained. Whitworth advised that all parties involved are moving towards the same end goal. The additional funding will bring everything together and allow the project to move forward. Councilmember Ybarra recalled that over a year ago the Council approved a cost increase to this agreement; he inquired whether the project could still be extended. From the City’s perspective, want to conclude by April. In response, Kung advised that East West Bank has already been notified that there may be delay; if so, there will be no additional cost or paperwork to the City. It was moved by Ybarra and seconded by Martinez to approve the amendment to the PIC Environmental services contract. Motion carried, 5-0. Special City Council Meeting Minutes March 4, 2014 Page 3 of 3 With no further business, at 11:17 a.m., Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Ana Barcia Deputy City Clerk