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Home My WebLink About27 - Newport Terrace Landfill Gas RemediationOCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Item No. 27 December 9, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: General Services Department David E. Niederhaus, Director, 949 - 644 -3055, dniederhausa(� city. newoort beach.ca.us SUBJECT: Appropriation of $57,380 from the Environmental Liability Fund to Account 3155 -8080 to pay various legal and consulting fees related to Newport Terrace landfill gas remediation. ISSUE: Should the City appropriate additional funds to pay technical and legal consultants in support of the Newport Terrace landfill gas remediation? RECOMMENDATION: Appropriate $57,380 from the Environmental Liability Fund to the Newport Terrace landfill gas disbursement account. DISCUSSION: Background: Newport Terrace is an enclave located northwest of the City (see attached map). The condominium complex, which was constructed in the early 1970's, is comprised of approximately 200 residences constructed adjacent to a former City sanitary landfill. In an effort to remediate landfill gas generated by decaying refuse, a landfill gas collection and evacuation system was constructed by the developer of the complex. Upon completion of development, the operation and maintenance of the landfill gas system was conveyed to the Newport Condominium Association (NCA). In late 2001, the City was approached by the staff of the California Integrated Waste Management Board ( CIWMB) regarding their extensive investigation of landfill gas problems at the Newport Terrace location. Results of the CIWMB investigation identified elevated methane concentrations in several deep monitoring probes, however, their work also showed that elevated concentrations of methane were not detected immediately under site structures. CIWMB staff recommended City involvement with Additional Fund Transfer for Newport Terrace Landfill Gas Remediation December 9, 2003 Page 2 remediation to correct landfill gas emissions in order to provide access to public grants. Private entities, such as the NCA, do not have access to public grant funds for landfill gas remediation. A Corrective Action Notice and Order was prepared by the local Enforcement Agency of the CIWMB and forwarded to the NCA on June 20, 2002. The order directed NCA to commence corrective action in regards to the landfill gas collection and evacuation system. In July 2002, the CIWMB sent the City a copy of the Corrective Action Notice with notice that if NCA failed to comply with the Order, the City could be responsible to complete the remediation as the former operator of the site. City staff subsequently contacted the NCA in early 2002 to discuss resolution of the CIWMB findings. The result was a formation of a partnership between the City and the NCA to address the remediation. The City engaged the firm of SCS Engineers, an experienced landfill gas remediation contractor, who proposed a plan to determine the integrity of the existing landfill gas collection and evacuation system and address various problem areas. The total cost of the SCS project was determined to be $80,000 with equal cost sharing by both parties (City and NCA). Council approved the plan and funding of $44,000 on March 25, 2003. By June 2003, SCS had identified significant mechanical and technical problems with the current system. The proposed manner of completing the investigation generated significant disputes requiring subsequent meetings of City and NCA staff and their associated legal and technical consultants. After additional staff consultation with technical and legal consultants, the investigatory project has commenced again and is expected to be completed by early December. Once the details of the study have been assessed, staff plans to meet with NCA representatives to sort out alternatives before returning to the Council with additional recommendations. Funding: Additional funding is needed to pay for the extra legal and engineering consulting fees which were a result of the disputes and delays noted above as well as anticipated additional expenses. The costs are identified as follows: Due Professional/Technical Consultant (SCS Engineers) $ 12,135 Legal Consultant (Jim Dragna) $ 15,245 Total $ 27,380 Projected $ 15,000 $ 15,000 $ 30,000 Combined Total $57,380 Additional Fund Transfer for Newport Terrace Landfill Gas Remediation December 9, 2003 Page 3 Environmental Review: Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4). Public Notice: None Required. Funding Availability: The Environmental Liability Fund has an approximate balance in excess of 2.0 million dollars. Alternatives: The City Council may choose not to appropriate the funds for this project. However, we are subject to a State notice of compliance in regards to remediating the landfill gas as the former operator of the Newport Terrace landfill and the NCA has filed various liability claims with the City. Prepared by: David E. Niederhaus, General Services Director Attachments: (A) Map (B) Budget Amendment Submitted by: Robin Clauson Assistant City Attorney '�• '� '�Oq!�"', i� ` ^� :f �, ` a �' Y•` _ .ISS .a '�r—" �:t ��13�'rpv¢p• �� F,F Y��.4 a' v �,;t�'�E 3' Iii �Y.� ^��t If' i��fR,"I�'L J i .r• r. rU - � 1 �`. a Ni .�:� �� €' Nrafr rs}ia =,l'r, .,. ' i R• y ♦ y��l��E ' r ,� L•t �� ^Y'l�ti�i,��}Yg @Y* Y� � _. ,�t—} 4 C':�d tl� oyi- Y: ;ta ♦ +l�.t el .lr ` ertt `:` 7 Jc'SI',aI YI}r`nyS Gl1x:: @. ♦ /a r ;y� ♦=I 'ham y'#nL...�v'. , ^�`.�..L • M � -y, �. 'E - '4a `':•ins �„.� ,0 f..' j 1 j • gy p 4 �t Lv d City of Newport Beach BUDGET AMENDMENT 2003 -04 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues PX from unappropriated fund balance EXPLANATION: NO. BA- 020 AMOUNT: 557,380.00 Increase in Budgetary Fund Balance AND X Decrease in Budgetary Fund Balance No effect on Budgetary Fund Balance This budget amendment is requested to provide for the following: To increase expenditure appropriations for legal and consulting feels related to the Newport Terrace landfill gas ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 292 3505 REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITURE APPROPRIATIONS (3603) Amount Description Debit Environmental Liability Fund Balance $57,380.00 Description Signed: Signed: Signed: I Administrative Approval: City Council Approval: City Clerk Services Director Credit $57,380.00 Date Date Date Description Division Number 3155 Environmental Liability Account Number 8080 Services - Professional & Technical Division Number Account Number Division Number Account Number Division Number Account Number Signed: Signed: Signed: I Administrative Approval: City Council Approval: City Clerk Services Director Credit $57,380.00 Date Date Date