REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
PHILIP SKEI, Assistant Director
Planning and Development Department
BY: KENG LEE, Project Manager
Housing Production Division
SUBJECT
Title
Approve the Standard Agreement for Consultant and Cleanup Services between the City of Fresno (City) and GHD Inc. for an amount not to exceed $2,157,000, for Environmental Consultant and Cleanup Services for Project at 1457 H Street and a contingency amount not to exceed $484,000, for any additional work, and authorize the City Manager, or designee, to sign the agreement on behalf of the City (Bid File 12500393) (Council District 3)
Body
RECOMMENDATIONS
Staff recommend the City Council approve a Standard Agreement for Consultant and Cleanup Services between the City of Fresno and GHD Inc. for an amount not to exceed $2,157,000, for consultant and cleanup services of 1457 H Street, and a contingency amount not to exceed $484,000, for any additional work, and authorize the City Manager, or designee, to sign the agreement on behalf of the City. Once remediation is complete, the City plans to use the site for an affordable housing development for income-eligible residents who earn no more than 80% of the area median income.
EXECUTIVE SUMMARY
On August 14, 2023, the California Department of Toxic Substances Control (DTSC) issued an Equitable Community Revitalization Grant (ECRG) Round 2 Guidelines soliciting applications for grant funding. The City of Fresno (City) is eligible and intends to apply for ECRG Round 2 funding, by no later than October 9, 2023. Staff requests authorization to finalize and submit an ECRG application to DTSC for grant funding in an amount up to $10,000,000. On March 18, 2024, the City was awarded up to $3,122,648 to reimburse eligible environmental activities and other eligible costs according to the requirements of the ECRG Round 2 Guidelines. Once remediation is complete, the City plans to use the site for an affordable housing development for income-eligible residents who earn no more than 80% of the area median income.
The City’s award included $143,750 for regulatory oversight activities by DTSC, $189,200 for activities associated with community outreach, $148,698 for staff project manager labor, and $2,641,000 for activities associated with site assessment and remediation. This agreement represents the full amount of the grant budget awarded for the consultant and cleanup services for this site.
Staff issued a Request for Proposals (RFP) on August 12, 2024, for consultant and cleanup services for the site located at 1457 H Street and received two proposals, GHD Inc. was selected based on the evaluation completed by a selection committee consisting of staff from the Department of Planning & Development, Housing and Finance Division, Community Development Division, and the Department of Public Utilities, Utilities Planning and Engineering Division. Staff recommend awarding GHD Inc. for consultant and cleanup services for an amount not to exceed $2,157,000 with a contingency amount of $484,000 of the remaining grant amount to cover any additional work which would be documented by a written amendment to the Agreement and authorized in writing by the City Manager.
BACKGROUND
The California Department of Toxic Substances Control (DTSC) issued an Equitable Community Revitalization Grant (ECRG) Round 2 Guidelines soliciting applications on August 14, 2023, to implement the Cleanup in Vulnerable Communities Initiative under Senate Bill 158 (Chapter 73, Statutes of 2021) allocating $500 million to DTSC to expedite the cleanup and beneficial reuse of contaminated properties, with priority given to properties in historically vulnerable and disadvantaged communities. There is approximately $85 million available for funding through Round 2 of the ECRG application, which closes on October 9, 2023. The City of Fresno (City) is an eligible entity and intends to apply for up to $10 million to facilitate the remediation of City-owned property located at 1457 H Street (Site), to allow for revitalizing reuse of the Site.
The Site is located within the Fulton Corridor and is bordered by Stanislaus Street to the northwest, H Street to the northeast, Tuolumne Street to the southeast, and railroad tracks to the southwest. The Site consists of approximately 2.98 acres of primarily vacant land with a communications transmission facility located on the northeast corner. Historically, the Site was part of the central rail corridor and was owned by the Southern Pacific Railroad. From about 1898 through 1987, the Site was occupied by railroad tracks and associated facilities, such as storage buildings, loading platforms, and freight structures. From at least 1918 until 1970, the Site contained 12 tracks/spurs and during this timeframe it was a common practice to treat the tracks/spurs with environmentally persistent metal-containing pesticides and herbicides to maintain track integrity. Additional adverse impacts may have resulted during this time due to the extended presence of diesel fuels and lubricants from spills and/or accumulated engine drip-related releases, diesel fuel exhaust, and contaminants derived from the presence of rail ties treated with creosote.
The Site meets the federal definition of a “brownfield site” - real property, the reuse of which may be complicated by the presence or potential presence of hazardous substances, pollutants, or contaminants. Further, the Site is located within a census tract area with the highest pollution burden (97 percentile) and disproportionate exposure to cumulative impacts, including socioeconomic factors and environmental effects. The Site, if left in its current state, has the potential to negatively affect the health and quality of life for this already vulnerable community.
In 2002, City Council adopted Resolution No. 2002-10, determining the existence of an immediate need to acquire the subject property for public purposes and having the power of eminent domain in accordance with Article I, Section 19 of the California Constitution and Code of Civil Procedure Section 1240.010, deemed it necessary and in the public interest and the greatest public good to acquire the Site. On December 23, 2002, the City was granted title to and ownership of the Site by a Quitclaim Deed from Union Pacific Railroad Company and recorded in the Fresno County Recorder's Office as Instrument No. 2002-0231709.
The Site is located within the Fulton Corridor and the Fulton Corridor Specific Plan (FCSP) for Downtown Fresno. As part of the vision for the revitalization of the area, a substantial objective of the FCSP is to add 6,300 residential units through various high-density housing options, including infill development of vacant land. The City’s purpose of applying for ECRG funding is to facilitate the assessment, investigation, and implementation of the remediation of the Site for a revitalizing reuse that will include an affordable housing development for income-eligible residents earning no more than 80% or the area median income.
Staff issued an RFP on August 12, 2024, for a consultant and cleanup services to provide additional soil assessment and site cleanup and received two proposals, GHD Inc. and Willbanks Environmental, Inc. (WEC). On October 9, 2024, the selection committee, consisting of staff from the Department of Planning & Development, Housing and Finance Division, Community Development Division, and the Department of Public Utilities, Utilities Planning and Engineering Division, met to discuss the proposals, review evaluations, and determined the applicant to recommend for award for the project based on the proposal’s ability to meet the stated service requirements, conform with the terms and conditions of the RFP, the level of costs associated with providing the services, the organization’s past performance and experience and other related information that was provided. The committee determined GHD Inc. to be qualified to perform the services as delineated in the RFP and the highest-rated proposal.
Staff recommend the City Council approve the standard agreement with GHD Inc. to provide consultant and cleanup services for the brownfield site located at 1457 H Street. The scope of services includes, but is not limited to, additional site assessment, participate and finalize remedial action plan, implement the remedial action plan, attend meetings as necessary, and other scope of services as delineated in the agreement.
The City Attorney has reviewed the agreement and approved as to form.
ENVIRONMENTAL FINDINGS
The Department of Toxic Substances Control is subject to the requirements of CEQA because it carries out and approves various hazardous waste-related projects that have the potential to impact the environment. As the lead Agency, and the City’s oversight Agency, DTSC will comply with CEQA and conduct a preliminary environmental impact report. Environmental cleanup will not begin until DTSC approves the Final Cleanup Plan, which is one of the tasks of the consultant in this agreement.
LOCAL PREFERENCE
Local preference is not applicable for a grant award contract.
FISCAL IMPACT
There is no impact on the City’s General Fund as a result of this action. Funds used for this Agreement come completely from the ECRG Grant previously awarded to the City.
Attachment:
Agreement for Consultant and Cleanup Services with GHD, Inc.