Memorandum 16-064 Waddell Way Contamination Mitigation

Memorandum 16-064

TO:                       Honorable Mayor Wythe and Homer City Council

FROM:                 Katie Koester, City Manager

DATE:                  April 6, 2016

SUBJECT:         Waddell Way: Resolution 16-064

As Council is aware, Public Works has moved forward with design, engineering, land acquisition and awarding the contract for construction of Waddell Way, a priority project that was funded in a 75/25 split between state legislative grant and HART funds. In order to complete the project, the road crosses a section of HEA land. We have known from the beginning of the project that the land was a contaminated site and has monitoring wells. This is not uncommon in construction sites in developed areas. The City initiated a replat in order to procure an easement across HEA’s land. Late in the game, HEA notified us that their signing of the plat was contingent upon the City signing a memorandum of agreement (MOA) regarding the responsibility for soils disturbed by the site. Our attorneys have reviewed the MOA, amended it, and we have a document before you that both parties can agree on.

The original budget for the project included dealing with contaminated soils on site. However, the contamination is such that it will require more aggressive remediation and it is important to understand both the magnitude of the potential risk we are assuming and take proper steps to lessen the long term exposure. Therefore, City Administration has gathered additional information including a third party estimate for the maximum potential cost of mitigating the contamination and restraining any future spread of contamination.  Combined potential cost for excavating the soil, onsite monitoring, and disposing of any contaminated soil is around $115,000. This is well within the contingency of the project - the winning bid came in $250,000 under budget. It is important to note this estimate is a ‘worst case scenario’ and measures are being taken, like boring instead of trenching, to reduce the disturbance of contaminated soils and control costs. The City is developing a work plan that crosses all the t’s and dots all the i’s. This level of caution protects the City and the environment and gives me comfort in signing the MOA assuming future responsibility for contamination as a result of the disturbance; we are doing everything to make spread of that contamination highly unlikely. The City Attorney will be at Monday’s Council meeting to answer any questions you may have.