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Report regarding adoption of a resolution accepting a California Department of Toxic Substances Control (DTSC) Equitable Community Revitalization Grant in the amount of $483,000 for environmental remediation of 905 Linden Avenue and approval of Budget Amendment # 23.012. (Christina Fernandez, Assistant to the City Manager; Philip Vitale, Deputy Director of Capital Projects; and Sharon Ranals, Assistant City Manager)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution accepting the Equitable Community Revitalization Grant from the California Department of Toxic Substances in the amount of $483,000 for environmental remediation of 905 Linden Avenue and approve Budget Amendment # 23.012.
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BACKGROUND/DISCUSSION
In 1999, the South San Francisco Redevelopment Agency purchased 905 Linden Avenue for $477,500. Prior to its acquisition, the property was occupied by a Beacon gas station. The previous owner removed the underground gasoline storage tanks, and upon acquisition, the Agency demolished the former gas station building. The property is currently maintained as a green space but is under-utilized and experiences issues with drainage and water pressure, resulting in a green space that is unsightly.
The Long Range Property Management Plan (LRPMP) assumes that the highest and best use of the property is to construct a high-density residential project and that it has the potential to be developed on its own or by combining it with adjacent private properties. This property is not considered in the City’s Housing Element as it is further than one mile away from a major transit station. 905 Linden Avenue has the potential to be developed into 10 housing units, before any incentives or bonuses are applied.
The City received a Brownfields Technical Assistance Grant (“TAG”) from the Environmental Protection Agency (“EPA”) in July 2020. The work thoroughly assessed the environmental conditions of the Linden Avenue sites and Cypress and Pine Park. It was determined that there is some residual contamination on 616 and 905 Linden Avenue, with 700 Linden and Cypress and Pine Park having no environmental concerns. The report addressed the clean-up costs associated with future housing and parks land uses. Housing and commercial uses would require a moderate-high level of clean-up, while open space or parks require a minor level of clean-up.
The EPA TAG revealed that there is some residual site contamination that requires remediation before any activation of the 905 Linden site can occur. Remediation costs are estimated up to $460,000 for residential or commercial.
As a result of the Phase I and Phase II analysis provided by the Brownfields TAG grant, city staff pursued the California Department of Toxic Substances Equitable Community Revitalization Grant (ECRG) program to fund remediation costs.
California Department of Toxic Substances | Office of Brownfields
In June 2022, the California Department of Toxic Substances (DTSC) awarded the City of South San Francisco with an ECRG grant in the amount of $483,000 for environmental remediation of 905 Linden Avenue. There is no requirement for local matching funding. Environmental remediation includes active vapor mitigation and soil excavation with off-site disposal.
In 2021, Governor Newsom signed legislation referred to as the Cleanup in Vulnerable Communities Initiative (CVCI), allocating $500 million to expedite the cleanup and beneficial reuse of contaminated properties. Priority is given to properties in historically vulnerable and disadvantaged communities. DTSC’s Office of Brownfields Equitable Community Revitalization Grant provides more than $250 million in grants to incentive cleanup and investment in disadvantaged areas of California.
Per the grant agreement, the City must provide access to the site and any documents or data regarding contamination of the site. The City must also retain records for a minimum of six years after the termination of the agreement.
The City and DTSC must each designate a Project Manager who will have technical expertise in project management, regulatory compliance, and hazardous substances site investigation and remediation. All engineering work must be under the direction and supervision of a registered professional engineer licensed in California. As such, the City has retained a professional Environmental Project Management firm with expertise in brownfield remediation to perform this work in coordination with the City’s Deputy Director of Capital Projects.
FISCAL IMPACT
There is no net fiscal impact of accepting this grant. The cost of this project will be covered by reimbursement from the California Department of Toxic Substances’ ECRG grant. However, this project will require Council to increase appropriation of $483,000 into expenditure account 100-05999-5001 (Other contractual services) and revenue account100-05999-34019 (Miscellaneous Grants) for FY 2022-23 budget as per Budget Amendment # 23.012.
RELATIONSHIP TO STRATEGIC PLAN
Environmental remediation of 905 Linden Avenue meets the City’s strategic goals of building and maintaining a sustainable city and providing a high quality of life for residents.
CONCLUSION
It is recommended that the City Council adopt a resolution accepting the Equitable Community Revitalization Grant from the California Department of Toxic Substances in the amount of $483,000 for environmental remediation of 905 Linden Avenue and approve Budget Amendment # 23.012.
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