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    20.    
City Council Regular
Meeting Date: 03/09/2021  

SUBJECT:
MITIGATED NEGATIVE DECLARATION AND PROFESSIONAL SERVICES AGREEMENT - 1,2,3 TRICHLOROPROPANE (TCP) REMOVAL TREATMENT PLANT
RECOMMENDATION:
  1. Adopt a resolution entitled:  A RESOLUTION OF THE CITY OF CHINO HILLS, APPROVING THE MITIGATED NEGATIVE DECLARATION, MITIGATION MEASURES AND MITIGATION MONITORING AND REPORTING PROGRAM UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT FOR THE 1,2,3 -TRICHLOROPROPANE (1,2,3-TCP) REMOVAL TREATMENT PLANT PROJECT.
     
  2. Authorize the execution of a Professional Services Agreement (PSA) with Hazen and Sawyer in an amount not-to-exceed $828,579 for engineering design services for the 1,2,3-TCP Removal Treatment Plant project.
     
  3. Authorize the execution of the Purchase and Sale Agreement with Escrow Instruction for 0.37 acres of land from the Boys Republic located at 90 Independent Court, Chino Hills CA 91709 (adjacent to the Booster Station 9) for $237,000, subject to final negotiation by the City Manager and approval as to form by the City Attorney.
BACKGROUND/ANALYSIS:
The City of Chino Hills operates a public water system that is regulated by the California State Water Resources Control Board (SWRCB) Division of Drinking Water (DDW). The City is one of eight members of the Inland Empire Utilities Agency (IEUA); a wholesale water agency providing imported water purchased from the Metropolitan Water District of Southern California (MWDSC) to Chino Hills. The remainder of the Chino Hills’ water supply is provided from local groundwater wells and recycled water by other local water agencies.
 
On July 18, 2017, the SWRCB adopted Resolution No. 2017-0042 which established a maximum contaminant level (MCL) of 0.005 micrograms per liter (µg/L) for 1,2,3-Trichloropropane (1,2,3-TCP). 1,2,3-TCP is a man-made chemical that was an impurity in pesticides. 1,2,3-TCP is classified by the US Environmental Protection Agency (EPA) as “likely to be carcinogenic to humans” and is recognized by the State of California as a human carcinogen. 1,2,3-TCP contaminants have been found in the Chino Hills groundwater wells at levels that exceed the new MCL of 0.005 µg/L.  These existing wells extract groundwater from the Chino Groundwater Basin. With the new 1,2,3-TCP MCL effective on December 14, 2017, the City’s wells remain inactive and inoperable.
 

Engineering Design Services
 
On May 8, 2018, the City hired Michael Baker International, Inc. to address the engineering issues regarding the removal of 1,2,3-TCP from the existing City groundwater wells. On January 17, 2019, a preliminary design report (PDR) for the project was completed with the recommendation (preferred alternative) to install a centralized granulated activated carbon (GAC) treatment facility at the Chino Hills Booster Station 9. The proposed GAC treatment plant is considered to be the current best available technology for removing 1,2,3-TCP from the groundwater. The Chino Hills proposed GAC treatment plant will include installation of eight GAC treatment vessels in a tandem series train for the removal of the 1,2,3-TCP from the City’s groundwater supply prior to sending the domestic water for distribution. 

Continuing the effort to move forward with the project, City staff issued a Request For Proposals (RFP) for the engineering design services related to the 1,2,3-TCP Removal Treatment Plant Project on October 16, 2020. In response to the RFP, the City received four proposals on December 3, 2020. A thorough review of the proposals was performed by a team of City staff looking at experience, qualifications, similar projects performed recently, and references. Based on the overall evaluation of proposals and project teams, staff highly considered Hazen and Sawyer ("Hazen") to have the best combination of experience, staffing and overall approach to the work for the project. The four firms that applied were ranked as follows:  
  1. Hazen and Sawyer
  2. CivilTec Engineering, Inc.
  3. TRC Solutions, Inc.
  4. Hargis + Associates, Inc.
Hazen is a firm that the City recently hired to perform the Water and Recycled Water Master Plan Update project. Staff has direct working experience and familiarity with some of Hazen’s team members that will also be working on the 1,2,3-TCP project. Hazen has a good understanding of the City’s water system from the current and previous work performed in the City. The Project Manager/Engineer is associated with and is respected amongst the various local water agencies and purveyors, such as the Monte Vista Water District (MVWD), Water Facilities Agency (WFA), Chino Basin Desalter Authority (CDA), and Inland Empire Utilities Agency (IEUA).  Reference checks with the agencies and municipalities, including City of Chino, confirmed Hazen’s good standing and high recommendations. With these favorable reports from references, staff recommends that the City Council authorize execution of an agreement with Hazen and Sawyer in an amount not-to-exceed $828,579.

Property Acquisition

To accommodate the proposed GAC treatment plant, the City requires the purchase of 0.37 acres of land from Boys Republic adjacent to the existing Booster 9 site. The site is located at 90 Independent Court, Chino Hills CA 91709 the southwestern corner of the Boys Republic’s approximately 200-acre campus, within Assessor Parcel No. 1022-591-02, as shown on the Exhibit ‘A’ - Legal Description and Sketch.   The purchase price agreed to is $237,000 based on an appraisal and subsequent negotiation. There will be non-substantive changes to the attached draft agreement, including finalizing a provision regarding the City's agreement to landscape and maintain an easement area on Boys Republic property.  Therefore, City staff is requesting authorization to negotiate these final revisions subject to approval as to form by the City Attorney.  On March 2, 2021, the Planning Commission found that the acquisition conformed with the General Plan pursuant to California Government Code Section 65402(a).
 

A subsequent Zoning Map Amendment will be recommended to change the zoning designation of the site from Private Institutional to Public Institutional. 
ENVIRONMENTAL (CEQA) REVIEW:
Pursuant to the California Environmental Quality Act (CEQA), an Initial Study/Mitigated Negative Declaration (IS/MND) was completed in accordance with the California Environmental Quality Act (CEQA) Public Resources Code (Sections 21000-21177) and pursuant to Section 15063 of Title 14 of the California Code of Regulations (CCR). The Initial Study was undertaken by City staff for the purpose of deciding whether the project may have a significant effect on the environment. On the basis of the analysis within the Initial Study, City staff has concluded that the project would have less than significant impacts on the environment relative to aesthetics, air quality, cultural resources, geology and soils, greenhouse gas, land use and planning, noise, transportation/traffic, and utilities and service systems. The IS/MND found that the project could have potentially significant impacts relative to biological resources (nesting birds), the tribal cultural resources (Native American Resources), and mandatory findings of significance (biological and tribal cultural resources); however, the incorporation of the mitigation measures specified in the proposed Mitigated Negative Declaration will reduce such effects to such effects to a less than significant level. In compliance with the aforementioned regulations, the IS/MND was made available for public review from February 4, 2021, through March 5, 2021. 
FISCAL IMPACT:
The total estimated cost for this project is as follows:
 
Item Amount
Professional Services Agreement  $828,579
Project Management and Miscellaneous Costs 84,421
Purchase of 0.37 acres of Land (Boys Republic) 237,000
Construction 3,500,000
Contingencies 350,000
Total $5,000,000

The total project cost may end up being greater than the amount shown above. Depending on the outcome of the construction bid amount, staff will present a budget amendment for additional funding if necessary at the time of construction contract award. In addition, future maintenance and operation costs will need to be budgeted separately in the Public Works Water Division operating budget in the appropriate fiscal year. 

The current Capital Improvement Program has $5,000,000 budgeted for the 1,2,3-TCP Removal Treatment Plant project. There is no anticipated impact on the General Fund with this item. The funding available for this project is as follows:
 
Project No. Funding Source Amount
W19002 Water Utility Fund $5,000,000
  Total Approved Funding    $5,000,000







 
REVIEWED BY OTHERS:
This item has been reviewed by the Community Development Director, the Finance Director, and the City Attorney.
Attachments
Initial Study/Mitigated Negative Declaration (IS/MND)
Mitigation Monitoring Report
Exhibit A - Legal Description and Sketch
Resolution
Professional Services Agreement
Draft Purchase and Sale Agreement
Notice of Intent
Public Notice

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