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HomeMy WebLinkAbout1993/03/15 - ADMIN - Agenda Packets - Economic Development Authority - RegularAGEN DA ECONOM IC DEVELOPM ENT AUT HOR IT Y ST. LOUIS PARK, MINNESOTA March 15, 1993 1. Call to order 2. Roll call /C 4. Approval of March 15, 1993 agenda ~/f--t1/\ 5. Reports a. was Pontiac d ate gCD -o Ge rec fl) 3. Approval of March l, 1993 minutes 6. Unfinished business 7. New business 8. Communications and bills 9. Adjournment• 7;/2 REQUEST- FOR EDA ACTION DATE March 15, 1993 ____ ___,_ _ AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Public Works ITEM: NO. 5a Wilkins Pontiac Site - Update APPROVED: <n ,. ), James N. Grube/ < Director of Public Works ) Synopsis: This report. provides an update on the demolition activities at the Wilkins Pontiac site and recommends that the Economic Development Authority (EDA) authorize execution of a contract amendment with STS Consultants Ltd (STS) for work at the site and authorize execution of an agreement with the Minnesota Pollution Control Agency (MPCA) to provide for removal of hazardous materials from the site. Background: On August 25, 1992 Wilkins Pontiac (Wilkins) notified the EDA of its intent to vacate its site at 5100 Excelsior Boulevard on or about September 30. On September 8, the EDA considered a staff report which summarized the findings of a 1991 environmental assessment conducted on the Wilkins site by STS on behalf of the EDA. The staff report indicated the Wilkins site contained at least: 2 underground gasoline tanks 1 underground fuel oil tank 1 underground used oil storage tank soils impacted by a fuel oil spill soils impacted by lead and volatile organic compounds (VOC) asbestos containing materials site drainfield hydraulic reservoir tanks The September 8, 1992 staff report concluded with a recommendation that the EDA authorize staff to solicit a proposal from STS for the design and inspection/ administration of site demolition activities to render the site available for redevelopment in 1993. On October 5, the EDA awarded a contract in the amount of $43,300 to STS for oversight of the activities noted above. Discussion: To date STS has provided oversight for the removal of the four underground tanks, excavation of soils impacted by a fuel oil spill, excavation of soils suspected to be impacted by VOC's and lead, and removal of hydraulic fluid from the hydraulic tanks. In addition, STS is supervising the removal of asbestos containing material (scheduled completion - end of March), and completing specifications for the demolition of the Wilkins building (contract award date - April 19, 1993). (continued) PUBLIC WORKS Executive Director APPROVAL. APPROVAL APPROVAL APPROVAL !APPROVAL ,// / < so lograwfso loom#en [oonwen [osmane /-< COUNCIL ACTION: MOTION BY 2N D BY TO > Although much has been accomplished to date two additional tasks (in addition to building demolition) must be completed. The first task is the disposal of fuel oil impacted soils, and the second is the excavation and disposal of soils moderately impacted by lead and soils heavily impacted by lead and cadmium. The disposal of the fuel oil impacted soils is a straight forward task. Approximately 100 cubic yards of impacted soil has been stockpiled at the site, and preparations are underway to have the material hauled to a local contractor yard for incineration under the oversight of the MPCA. Approximately 10 cubic yards of impacted soil remain in place beneath the building foundation, and the building demolition contract provides for its removal. The existence of soils heavily impacted by lead and cadmium was discovered by STS as it supervised the removal of other voe and lead impacted soils located north of the Wilkins building. As removal of the voe and lead impacted soils progressed, STS encountered soils which were visibly stained; therefore it halted the soil removal activity. Subsequent laboratory analyses indicated the (approximately) 30 cubic yards of material excavated from the site contained elevated lead levels which will necessitate their disposal as contaminated (through not hazardous) materials. However, samples taken from the bottom and sides of the excavation indicate the in-place soils have been heavily impacted by lead and cadmium. In addition, what appears to be small, old automobile parts were encountered. STS and staff are of the opinion the lead and cadmium are the result of parts washing with cutting fluids or discard of used oil. The presence of old automobile parts tends to support the opinion. Based on initial STS estimates, it appears that approximately 15 cubic yards of soil may contain lead and cadmium at concentration levels exceeding established thresholds; therefore, the material appears to be hazardous. Recent discussions with MPCA staff indicate the EDA has two options: 1. Remove the 15 cubic yards of lead/cadmium impacted soils under the MPCA's Property Transfer/Technical Assistance program. 2. Remove the 15 cubic yards of lead/cadmium impacted soils under the conventional State and Federal Superfund programs. Staff favors the MPCA's Property Transfer/Technical Assistance program because the scope of the clean up task is clearly identified-approximately 15 cubic yards of impacted soils must be removed. In addition, since the groundwater is nearly 15 feet below the impacted soils, contamination is confined to a relatively small, manageable area. If the EDA elects to enter the conventional Superfund program, more studies will be required, and the more formal process will almost guarantee that the soils will not be removed in 1993. In order to provide for the timely removal and disposal of the heavily impacted soils, it is recommended that the EDA authorize staff to work with / the MPCA under its Property Transfer/Technical Assistance program. (continued) Financial Considerations: The EDA budget for the preparation of the Wilkins site for redevelopment was initially established at $258,000. A review of the project budget to date is as follows: Budgeted Actual/Estimated Task Amount Amount Engineering $ 54,000 $ 43,300 (Actual - A) Tank removals 13,000 12,570 (A) Fuel oil impacted soi 1 s 23,000 6,000 (Estimated - E) Lead contaminated soils 25,000 6,000 (E) Lead/cadmium soils 15,000 (E) Asbestos removal 41,000 16,185 (A) Miscellaneous 7,000 7,000 (E) Building demolition 95.000 95.000 (E) Total $258,000 $201,055 Although it appears that the site preparation activities remain within budget, staff has identified two areas where costs will increase: 1. STS has submitted a request for an additional $12,020 to cover costs experienced and anticipated. 2. The MPCA will charge the EDA for MPCA staff costs it will experience as it supervises the EDA within the Property Transfer/Technical Assistance program (EDA staff estimate - $8,000). Regarding STS' fees, the firm has indicated it has incurred $1,320 in additional costs related to supervision of the removal of hydraulic fluid from hydraulic fluid reservoirs in the Wilkins building ($1,035) and related to additional soil exploration activity in the vicinity of the fuel oil spill site ($285). Staff considers the STS request to be valid insofar as each activity is beyond the scope of the present contract. In addition to the $1,320 claim above, STS has indicated that it will incur an additional $10,700 in the removal of the lead/cadmium soils and documentation related thereto. Again, staff considers the STS request to be valid, as the activities are not within the scope of the present contract. Regarding the MPCA costs, EDA staff is of the opinion that $8,000 is a reasonable "high end" estimate for the scope of the project. Staff anticipates that the majority of the MPCA costs will be incurred in document review and the drafting of a "no action letter" by the MPCA. The "no action" letter will acknowledge the EDA's efforts and success at remediating the lead/cadmium problem. Given the information available to date, it appears the total site preparation budget will approach $221,000 or approximately $37,000 less than the established budget. Recommendation: It is recommended the Economic Development Authority authorize execution of an amendment to its contract with STS Consultants Ltd for Wilkins Pontiac site activities increasing the contract amount from $43,300 to $55,320, and authorizing execution of an agreement with the Minnesota Pollution Control Agency for the handling of lead/cadmium hazardous materials under the State's Property Transfer/Technical Assistance program. cmr Inter-Office INFORMATION ONLY Memorandum City of St. Louis Park TO: FROM: DATE: SUBJECT: Economic Development Authority Clint Pires, Interim Executive Director{!__ March 15, 1993 Park Nicollet Environmental Reports ) As of March 9, 1993, the Minnesota Pollution Control Agency (MPCA) had received and reviewed Park Nicollet's environmental reports. In general, the MPCA appears to agree with the conclusions of the reports and remedial actions included therein. The EDA attorneys and City staff are al so generally comfortable with remedial actions outlined in the reports. EDA environmental attorney, Karen Hansen, and Jim Grube will continue to work now at gaining additional protections for the EDA and City during and following project activity. The MPCA intends to hold meetings with businesses (i.e., AAA, Byerly's and Wayside House) as well as Wolfe Lake Condominiums to explain study findings, safety and recommended remediation steps. The EDA, City, Park Nicollet and MPCA will work on these meetings jointly. The EDA will be presented with final report findings and implications and informed once the MPCA has scheduled such meetings. It is anticipated that the Commissioner of the MPCA may sign off on the Park Ni coll et reports as soon as March 15. It does appear at this ti me that the project will continue forward with whatever additional activities may be required as a result of remediation. It should be noted that working through many of these environmental and legal issues has been and will continue to be a challenge. All involved in this project from the City staff and EDA attorney's office have done an exceptional job. Of particular note on the environmental issues is the work of Karen Hansen and Jim Grube. Their expertise in protecting the interests of the EDA while at the same ti me working to move this project along have been necessary and invaluable.