Title
Manufactured Gas Plant Remediation Update (B)
GRU is providing an update on the Manufactured Gas Plant remediation project and recommending authorization of certain actions regarding a contract for the remediation and funding of the project.
Explanation
In 1990, GRU purchased former Gainesville Gas Company (GGC) along with its assets and liabilities. In 1992, a Florida Department of Environmental Protection (FDEP) Consent Order was issued to the City to investigate and remediate the environmental impacts attributable to the Manufactured Gas Plant formerly operated by GGC. At present, GRU has finalized the Phase 1 remediation design, obtained the necessary agency approvals and is preparing a contract with Environmental Consulting & Technology, Inc. (ECT) as the specified source contractor.
On November 6, 2008, the City Commission approved the landfill disposal option in lieu of off-site thermal treatment of the soil, and FDEP granted a permit modification for this change in a letter dated December 11, 2008. GRU was also directed to pursue an expedited project approach for the Manufactured Gas Plant remediation which would require special FDEP funding approval. FDEP responded in a letter dated December 18, 2008 denying that request. In follow-up discussions, FDEP advised that GRU could begin work begin prior to the accumulation of the entire amount of the FDEP funding, however, by doing so, GRU would forfeit any of the remaining funding. Therefore, Staff now recommends waiting until all FDEP funding is accrued (an estimated 12 to 14 weeks) prior to beginning work.
Recommendations
The City Commission: 1) hear presentations from GRU Staff regarding the Manufactured Gas Plant project's expedited project approach and FDEP funding; 2) authorize the General Manager or his designee to execute a contract with Environmental Consulting & Technology, Inc., as a specified source contractor for the performance of the remediation, subject to approval by the City Attorney as to form and legality; 3) commit to funding any FDEP monetary shortfalls with regard to the Manufactured Gas Plant remediation; and 4) authorize staff to procure materials, equipment and services required for the project in accordance with Purchasing policies and procedures.
Fiscal Note
This project is to be funded by the GRU-Gas Utility and by the FDEP's Petroleum Cleanup Preapproval Program. GRU's portion of the costs will be funded through the Cost Recovery Factor charged to all Gas System customers. The total cost of the project is estimated to be $14,300,000. GRU's portion of the construction cost of is estimated to be $10,800,000 assuming an additional $3,500,000 funding is obtained from the FDEP Petroleum Cleanup Preapproval Program. If some portion of the FDEP funding is not obtained, then GRU's cost could be as much as the total estimated project cost of $14,300,000.
Drafter
Prepared by Ed Regan, Assistant General Manager for Strategic Planning
Submitted by Robert E. Hunzinger, General Manager