HomeMy WebLinkAboutResolution # 3738
RESOLUTION NO. 3738
WHEREAS, the City of Canton has entered into an understanding with Petersen
Health Care Inc., for the conveyance of certain real estate on South Second Avenue in
the city for redevelopment purposes, and
WHEREAS, it is understood that in order for Petersen Health Care Inc. to obtain
a permit for site redevelopment a letter of No Further Remediation (NFR) must be
obtained from the Illinois EPA, and
WHEREAS, Environmental Operations Inc. (EOI) has offered to carry out the
investigation, evaluation and remedial actions necessary in order to obtain the NFR
letter for consideration as set forth in its proposal letter of August 31, 2005 (Exhibit A,
attached hereto and made a part hereof).
NOW, THEREFORE, BE IT RESOLVED that the city officers of the City of
Canton be authorized to accept the ofFer of EOI as oudined in the proposal letter dated
August 31, 2005.
PASSED by the City Council of the City of Canton, Illinois this ~~, day of
September,2005.
AYES: Aldermen Schenck, Reed, Meade, Carl, West, Sarff, Berardi, Hartford.
NAYS: None.
ABSENT: None,
AP
dney . Heinze, ayor
ATTEST:
Nancy White , ity Clerk
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To: Honorable Mayor and Members of the City Council
From: Mark Rothert, Economic Development Director
Date: September 1, 2005
Subject: Agreement with Environmental Operations Incorporated
SUMMARY
Localized contamination from the old International Harvester site (IH) has seeped into the adjacent
property located along 2°d Ave. (herein Property). Confirming this information are Phase I and Phase II
Environmental Assessments conducted by Randolph and Associates as well as a Phase II Assessment
conducted by the ILEPA.
After reviewing Randolph and Associates' Phase I and ILEPA's Phase II data, Environmental Operations
Inc. (EOI) is "of the opinion that an NFR (No Further Remediation Letter) is obtainable for the majority of
the project property." A NFR letter is the official documentation needed to signify that a property is
environmentally clean to build on, however some building restrictions may apply. Most of the
contamination on the Property appears to be localized to one corner. EOI's strategy will be to get an NFR
for the land that is not in this affected area. Once an NFR is achieved, development can begin at the site.
This is a necessary step in the redevelopment of the area. Development will ultimately help the City pay
back its TIF bond obligations. Staff recommends approving the contract with EOI to perform the
necessary work to obtain an NFR for this property along 2"d Ave.
DISCUSSIONBACKGROUND
EOI plans to conduct the following scope of work:
• Review of site investigation data and report (Phase II document by Randolph and Associates)
• Further determine feasibility of obtaining NFR letter
• Perform TACO Tier 2 evaluations (if necessary)
• Develop proposed strategies for site closure
• Enter site into the IL EPA's Voluntary Site Remediation Program (SRP)
• Preparation of Remedial Objectives report/Remedial Action Plan and/or Remedial Action Completion
Report, as appropriate
• Meet with ILEPA project manager to discuss strategies
• Follow-up activities to finalize NFR letter
At appropriate milestones in this project, EOI has agreed to consult with the City to present results and
mutually agree upon the next steps to take. For example, once the Phase II report has been reviewed and
the data have been analyzed in detail, EOI will prepare recommendations and in consultation with the
City, determine the best means of obtaining the NFR Letter. If review of the Randolph Report reveals
conditions that require additional field investigation and/or remediation, EOI will meet with the City to
determine the appropriate course of action. If the NFR letter appears to be feasible without additional
field activities, EOI will discuss the approach with the City and the reports will be prepared for submittal
to the ILEPA.
Page 2 of 2
EOI plans the following work schedule:
• Start Date
• Data Review/Tier 2 Evaluation
• SRP Application/ROR/RAP/RACR Report Prep
• Submit to ILEPA/ILEPA Review
• Follow-up for NFR Completion
• RACR Preparation (if needed)
Wednesday, September 7, 2005
Completed by 09/21/05
Completed by 10/26/05
Completed by 11/23/05
Completed by 12/09/05
Within 30 day of completion of construction
The construction on the schedule refers to the possibility that an engineered barrier (building, parking lot,
landscaping, etc.) will be part of the solution to get the NFR. In that case, the IEPA will issue a draft
NFR, contingent upon completion of the development construction. This is what was done for the
Northeastern Block of the IH site. The completion of the construction will then be documented in a
separate RACR. If no engineered barrier or other remediation is necessary, then the RACR can be
combined with the other reports for the IEPA.
FISCAL IMPACT
Fee: $11,500
Remedial Action Completion Report: $ 4,200 (This may or may not be required)
Paid directly by the City to IEPA
ILEPA Oversight Fees: Estimate $ 1,000 (Partial payment of $500 due with SRP application)
NFR Assessment Fee: Up to $ 2,500 (Cost varies but maximum chazge is $2,500)
Misc. Fees/Costs Estimate $ 800 (Recording the NFR letter/Surveying, if necessazy)
Total Potential Cost: $20,000
Source of Funding:
• TIF Funds (Transfer from TIF 4a to IH TIF)
• These expenses may be reimbursable by USEPA grant cleanup funds once those funds aze in use.
STAFF RECOMMENDATION
Staff recommends Council's approval of the contract with EOI.
August 31, 2005
Proposal # P3510
Mr. Mark Rothert
Director of Economic Development
City of Canton
2 North Main Street
Canton, Illinois 61520
VIA FAX 309-647-2348
Subject: Proposed Scope of Work for Site Closure
Petersen Health Care Site
Canton, IL
Dear Mr. Rothert:
Environmental Operations, Inc. (EOI) is pleased to provide this Scope of Work to the City of
Canton for activities designed to obtain a No Further Remediation (NFR) determination from the
Illinois Environmental Protection Agency (Illinois EPA) for the property on Second Street that
Petersen Health Care is purchasing for redevelopment. It is EOI's understanding that an NFR
letter is required in order to receive a permit required for the site redevelopment. The Illinois EPA
has recently completed site investigation activities on the property, which is located across
Second Street from the former International Harvester (IH) Site in Canton. Impacts from the
former IH Site have been found in a monitoring well on the property (referred to herein as the
Petersen Site).
The proposed scope of work to achieve this goal is outlined below.
Scope of Work
The following activities are discussed in this Scope of Work:
• Review of site investigation data and report (prepared by Randolph and Associates)
• Determine feasibility of obtaining NFR Letter
• Pertorm TACO Tier 2 evaluations (if necessary)
• Develop proposed strategies for site closure
• Enter site into the Illinois EPA's Voluntary Site Remediation Program (SRP)
• Preparation of Remedial Objectives Report/Remedial Action Plan and/or Remedial Action
Completion Report, as appropriate
• Meet with the Illinois EPA project manager to discuss strategies
• Follow-up activities to finalize NFR Letter
The scope of work does not include additional investigative or remedial activities, if it is
determined that they are required. At appropriate milestones, EOI will consult with the City of
Canton to present the results and mutually agree upon the next step. This may be done through
e-mail and phone communications, or if the City requests, with a meeting.
EOI will begin the above scope of work on receipt of the Randolph Phase II Report. We have
previously reviewed the Phase I Environmental Assessment prepared by Randolph and
e .
Mr. Mark Rothert 8/31/05
City of Canton Page 2
Associates, and have also conducted a preliminary cursory review of the Phase II analytical data
for the site provided by the IEPA Project Manager, Mark Weber. Based on these reviews, and
our knowledge from investigations of the adjacent International Harvester (IH) Site, we are of the
opinion that an NFR is obtainable for the majority of the project property.
Based on current knowledge, we have developed some initial strategies that include: 1) carve
out the property impacted with non-aqueous phase liquid (NAPE) (from the IH site), from the
property conveyed to Petersen by the City of Canton; 2) evaluate the data for compliance with
remedial objectives; 3) prepared a combined report and request for site closure; and 4) submit
the SRP application and reports listed above with a request for an NFR letter.
Once the Phase II Report has been reviewed and the data have been analyzed in detail, EOI will
prepare recommendations and, in consultation with the City of Canton, determine the best means
of obtaining the NFR Letter. If review of the Randolph Report reveals conditions that require
additional field investigation and/or remediation, EOI will meet with the City of Canton to
determine the appropriate course of action. If the NFR letter appears to be feasible without
additional field activities (investigation and/or remediation), EOI will discuss the approach with the
City and the reports will be prepared for submittal to the IEPA.
If the data evaluation indicates that the use of engineered barriers is necessary to eliminate
exposure pathways, then a draft NFR letter can be issued by the IEPA. The engineered barriers
will likely consist of the buildings, pavement, and landscaping that will be part of the
redevelopment construction. Site visits to document the engineered barrier construction may be
required. The barriers will also have to be surveyed for the NFR letter. Upon completion of the
construction, a separate Remedial Action Completion Report will be prepared documenting that
the engineered barriers are in place. Once the report is reviewed and approved by the IEPA
project manager, the NFR letter can be finalized and recorded.
EOI will utilize a specialist in TACO, IEPA negotiations and site closures, Mr. Harry R. Walton.
Cost Estimate and Schedule
All work will be performed on a time and materials basis. EOI will manage the work to the
combined total estimated fee of $11,500, if a separate RACR is not required. A separate RACR
is estimated to add about $4,200 to the cost. EOI will make every effort to complete the work
under budget and within the proposed schedule. EOI will notify the City of Canton in a timely
manner if exceedence of the budget is anticipated and we will not proceed further without your
written approval. Please note that the cost estimate does not include the following items, which
would be paid directly by the City of Canton: IEPA Oversight Fees (advance partial payment of
$500 due with SRP Application -total varies depending on IEPA labor hours); NFR Assessment
Fee (varies depending on IEPA costs incurred, maximum of $2,500); costs associated with
recording the NFR letter; or costs of surveying engineered barrier (if required). EOI can provide
surveying services and/or arrange for local surveyors upon request.
EOI proposes the following schedule for this work; the schedule is based on approval of the
proposal by the City and receipt of the Randolph Phase II Report, and actual completion dates
may need to be adjusted accordingly.
TASK Anticipated Duration Anticipated Completion Date
Data Review/Tier 2 Evaluation 2 weeks September 21, 2005
SRP Application/
ROR/RAP/RACR Report Prep 5 weeks October 26, 2005
Mr. Mark Rothert
City of Canton
8/31 /05
Page 3
Submit to Illinois EPA - 4 weeks November 23, 2005
Illinois EPA Review
Follow-up for NFR Completion 2 weeks following IEPA December 9, 2005
issuance of draft NFR
RACR Preparation (if needed) Following completion of Within 30 days of completion
construction of construction
If you have any questions, or need additional information, please do not hesitate to call me at
(314) 241-0900. We appreciate the opportunity to present this proposal to the City. If the
proposal is acceptable, please have the Mayor of Canton, Mr. Rodney W. Heinze, sign below and
return one copy to us.
Sincerely,
Environmental Operations, Inc.
Jill A. Wilts
Sr. Project Manager
cc: Mr. Mark Petersen, Petersen Healthcare
Approved by:
Matthew D. Robinson
President
Environmental Operations, Inc.
Date
Accepted by:
odney W. H nze
Mayor
City of Canton
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Date