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SR-05-13-2014-3BCity of City Council Report Santa Monica City Council Meeting: May 13, 2014 Agenda Item: �3—B To: Mayor and City Council From: Dean Kubani, Manager, Office of Sustainability and the Environment Subject: Case Closure of Environmental Clean -Up Activities at the Municipal Bus Lines Yard Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a Covenant and Environmental Restriction on Property (Covenant) with the California Regional Water Quality Control Board, Los Angeles Region (Board) in order to close the low- threat underground storage tank case located at the Municipal Bus Line (BBB) yard. Executive Summary The Santa Monica BBB site located at 1620 Sixth Street has been the subject of soil and groundwater assessments and various remediation activities since 1987 due to petroleum contamination from various piping leaks and spills from the operation of storm water clarifiers, oil -water separators, and underground storage tanks. Since the identification of these contaminants, the City has conducted extensive investigation, assessment, monitoring, and remediation of the soil and groundwater at the site. On March 22, 2013, the City submitted a low- threat underground storage tank closure request to the Board. On January 21, 2014 the Board responded that a Covenant and Environmental Restriction was required to be recorded for that portion of the BBB yards where free product in the groundwater continues to persist. The identified portion of Assessor Parcel No. 4290- 010 -906 would have a land use restriction (LUR) attached to it stating that no residential, hospital, school, child or community care uses can be built on that parcel in the future unless a variance is granted by the Board or the Covenant is terminated. The intent of the Covenant is to protect the present and future public health and safety, and the environment from the hazardous materials remaining on site. The remainder of the site has no land use restrictions. The City would no longer be required to conduct periodic environmental monitoring and reporting to the Board for the site. In order to close the site the City would need to remove the remaining groundwater monitoring 1 wells and submit a final closure report. Site closure would result in savings of approximately $149,000 per year. Background Since discovering soil and groundwater free product at the BBB yards the City has had to sample a network of groundwater monitoring wells at the site and submit routine reports describing the progress being made towards remediation. The City has reached significant milestones towards eliminating levels of free product in the soil and lowering the presence of free product in the groundwater through extensive remediation and clean -up. The presence of free product in the groundwater is at a point where it no longer presents a significant threat to human health or the environment. Attachment A to this report is a site map showing the property boundary of the BBB yards, the burdened property related to the covenant and LUR, and the panhandle portion of parcel 4290 - 010 -906 excluded in the covenant and LUR. History of Monitoring and Clean -Up Activities Since 1987, the City has conducted extensive soil and groundwater investigations and cleanup activities at the BBB yard. Thirty -one groundwater monitoring wells were originally installed to monitor the groundwater beneath the entire site. The remedial systems included a free - product and groundwater extraction system, an air /ozone- sparging (injection) system, and a mobile dual -phase extraction system. Since 2001 approximately 250 gallons of free product (diesel petroleum hydrocarbons) were removed through these remedial systems. Soil sampling in 2006 confirmed that free product in the vadose zone (area between top of the ground surface and water table) was mitigated. In 2009, 20 groundwater wells were abandoned and removed from the Big Blue Bus property because of development at the site. Due to a persistent sheen of diesel in one of the monitoring wells located in parcel number 4290 - 010 -906 surrounding the former water clarifier the Board required the City to continue with its groundwater monitoring and cleanup activities. In 2012, the City conducted two rounds 2 of chemical oxidant injection through five injection points into the groundwater surrounding the former clarifier in an attempt to eliminate the thin sheen of petroleum hydrocarbons. This process was unable to remove the remaining sheen which ranges in thickness between 0.01 and 0.03 feet. After determining that there are no other reasonable remedial actions that can be performed to eliminate this remaining thin layer of petroleum hydrocarbon the City submitted a request for closure to the Board for the BBB site. Discussion Terms of Covenant and Environmental Restrictions on the Property The Board has agreed to close all parcels other than 4290 -010 -906 without restriction. Parcel 4290 - 010 -906 would have a land use restriction (LUR) attached to it stating that no residential, hospital, school, child or community care uses can be built on that parcel in the future unless a variance is granted by the Board or the Covenant is terminated. The Board has also agreed to exempt the "panhandle" of that parcel, which extends southeast beneath a portion of the SWASHLOCK facility along Olympic, from the LUR (see site map in attachment A). Therefore the existing housing use and any future development or renovation of that portion of the site will not be affected by the LUR. Once closure is granted, the City will no longer have to conduct periodic groundwater monitoring on the entire site and can abandon all of the remaining monitoring wells. And as there are no restrictions on the remainder of the site, it could be potentially developed in the future per the Downtown Specific Plan. The purpose of the Covenant is to protect present and future public health and safety and the environment from low- levels of gasoline, diesel, and methyl tertiary butyl ether (MTBE) in the groundwater. The covenant permits the City to develop the parcel identified in the covenant with industrial, commercial and /or office space. The following types of development will not be permitted under the Covenant: 9 a. Residences for human habitation; b. Hospitals; c. Public or private schools for persons under 21 years of age; d. Care community centers for children or senior citizens, or other uses that would involve the regular congregation of children or senior citizens. The Covenant requires the Board to approve any excavation permits planned within parcel 4290 - 010 -906 along with an appropriate and fully implemented Health and Safety Plan for any excavation conducted. In addition the City would not be permitted to drill, bore, otherwise construct or use a well for the purpose of extracting water for any use. If the site is ever leased or sold any agreement must state that the land contains free product in soils and in the groundwater under the property, and must refer to the Covenant and Environmental Restriction on the property. Staff does not anticipate any future development of housing on parcel 4290 - 010 -906. This Covenant does not place any development restrictions on the remaining property located at the BBB site, thus allowing the City to proceed with any potential developments identified in the Downtown Specific Plan. Timeline for closinq the site On June 25, 2013, Council authorized continuing the contract service agreement with ICF Consulting (8913), in an amount not to exceed $185,000, to complete the activities associated with closing the BBB site. It will take ICF approximately three to six months to remove the remaining monitoring wells and submit a final closure report to the Board. Once the closure activities have been completed the City will no longer require the services of a consultant for environmental assessment, remediation, or monitoring at the BBB site. rd Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Site closure would result in savings of approximately $149,000 per year for the BBB site. Prepared by: James Velez- Conway, Senior Sustainability Analyst Approved: Dean Kubani Manager, Office of Sustainability and the Environment Attachment A. Site Map 5 Forwarded to Council: Rod Gould City Manager T:- "z-'-, 5 ° b Delineation of Burdened Property Big Blue Bus Facility 1620 6" Street Santa Monica, CA Reference: Covenant No. 9898 (CCS)