Memorandum

City of Lawrence

Public Works

TO:	David L. Corliss, City Manager
FROM:	Matt Bond, P.E., Stormwater Engineer
CC:	Diane Stoddard, Cynthia Wagner, Charles Soules, Mark Thiel, David Cronin
DATE:	October 28, 2013
RE:	Lawrence VenturePark Project and remediation update City Commission Agenda November 5, 2013

Project Background

The following bullet points help to outline the basic chronology of events during the redevelopment of the former Farmland Industries Nitrogen Plant (Site) into Lawrence VenturePark.

Ø September 14, 2010 the City Commission authorized staff to negotiate an engineering services agreement with URS Corporation for transitional engineering services.

Ø September 28, 2010 the City Commission authorized distribution of RFP’s for Demolition Services for the former Farmland Industries Plant

Ø September 29, 2010 the City takes formal ownership of the former Farmland Industries nitrogen plant on Highway K-10 in addition to $8.5 million in environmental remediation funds.

Ø 2011 the City began demolition of the abandoned structures on the site removing over 1600 tons of scrap metals.

Ø February 2012 the City contracted with Bartlett & West Engineers to develop a master plan and infrastructure plans for the future industrial land use of the property

Ø May 2012 the City held meetings with neighbors and businesses to discuss the concept plan

Ø December 18, 2012 the City Commission approved the final plat

Ø December 11, 2012 the City Commission awarded the intersection improvements at O’Connell and K-10 including signalization and turn lanes into the Farmland site

Ø Plat filed January 31, 2013

Ø March 5, 2013 City Commission adopts Resolution No. 7016 establishing the Benefit District for sanitary sewer improvements in the maximum amount of $1,725,000.

Ø Infrastructure project PW1224 Bid March 19, 2013

Ø March 26, 2013 - Infrastructure project awarded to RD Johnson in amount of $4,984,556.03

Ø April 2, 2013 - Sanitary Sewer project awarded to Amino Brothers Co. in the amount of $601,089.49.

Ø June 4, 2013 City Commission authorizes agreement with Bartlett & West for engineering services associated with REGIONAL DETENTION at the Site. ($49,912.80).

Ø September 10, 2013 City Commission approves name change to Lawrence VenturePark.

Ø November 5, 2013 City Commission considers Resolution No. 7047 to establish the Benefit District for streets, storm sewer, grading and waterline in the amount of $7,855,000.

Site Remediation

The City of Lawrence is obligated to execute the Corrective Action Decision (CAD) as defined by Consent Order (CO) Case No. 10-E-94 BER.  The CAD identifies specific remedies (listed in italics below) that were selected to address contamination at the Site.  Following each specific remedy is the status of each item and the related progress to date if any.

Ø Continued operation of the groundwater containment system; ONGOING

The groundwater containment system is a series of groundwater recovery wells and under drains that maintain hydraulic control of groundwater impacted by nitrogen compounds.

Ø Addition of a new groundwater recovery well as a supplement to the existing groundwater containment system; COMPLETED

Ø Construction of a groundwater interceptor trench near the Central Ponds area;  PLAN COMPLETED awaiting further geotechnical investigation by KDHE at the Site.

Ø Installation of a sump to capture fertilizer-contaminated water in the Dam Pond for land application; Draft work plan completed and submitted to KDHE for review.

Ø Ongoing monitoring of groundwater on- and off-site to ensure the effectiveness of the combined groundwater containment systems; ONGOING

Ø Reclamation of fertilizer-contaminated groundwater and surface water through land application; ONGOING

Ø Ongoing maintenance of current surface cover in certain areas of the Site to protect surface water and groundwater quality; ONGOING

Ø Ongoing compliance with the Post-Closure Care requirements for the closed Chrome Reduction System (CRS) unit;

Staff is currently developing a plan for the environmental remediation of the area designated as a Resource Conservation and Recovery Act (RCRA) Site.  This area originally contained the chrome reduction system (CRS) unit when the plant was operational.  The groundwater in this area has low pH with values ranging from 3.5 to 5.8 with 6.0 to 9.0 considered to be the acceptable range.  One of the options that is being explored for remediating this area is the use of the contents of the lime sludge landfill.  The projected timeline to implement this remediation is Spring 2014.  This option is discussed in further detail below under the heading landfills. 

Ø Ongoing monitoring of surface water quality for the National Pollutant Discharge Elimination System permit and the Storm Water Management Plan; ONGOING

Ø Limited excavation of fertilizer-contaminated soil on the Sandstone Hill and in the Central Ponds area; ONGOING

Ø Desludging of the East and West Effluent Ponds to allow the eventual reconfiguration of clean storm water drainage through the Site until storm water can be routed through the Site without becoming contaminated; (see comments in next bullet point below)

Ø Excavation of fertilizer-contaminated sediments from the West Extension, West Effluent, East Effluent, and Dam Ponds, and consolidation and capping of those sediments in the West Lime, Rundown, and East Lime Ponds;

To facilitate future development of the Site, plans for a regional detention basin are currently under design by Bartlett & West Engineers.  Design and construction of a regional detention basin will provide a dual benefit by addressing not only future stormwater runoff demands but by also fulfilling the desludging of the East and West Effluent Ponds as stipulated in the CAD.  Construction of the regional detention pond is to begin after approval from KDHE.   This is estimated to begin in late winter or early spring of 2014. The capping of the ponds will take place as the individual basins are completely filled.

Ø Contingency removal of fertilizer-contaminated soil areas in the Northeast Production Area and the #2 Urea Plant area to facilitate Site redevelopment;

Ø Clean-out of the Imhoff tank, flushing of the sewer/pump station, and plugging of sewer lines;  COMPLETED

Ø Contingency plugging of facility production wells if not re-used;  Work Plan completed, awaiting the resolution of water right negotiations.

Ø Application of various land use restrictions across the Site to prevent exposures and ensure proper management of contaminated water, sediments, and soil. Admission into the Environment Use Control Program COMPLETED.  Long Term Care Agreement (LTCA) and Environmental Use Control Agreement (EUCA) signed and executed by KDHE.

Along with the items listed above the City has also completed a number of tasks as part of its obligation to comply with the consent order.  The Transition Plan was completed as outlined by the CO within 30 days of acquisition of the Site.  As part of the Transition Plan a Soil Waste Management Plan was also developed for the Site.  A draft Transition Plan was completed with the aid of URS Corporation.  The final Transition Plan was completed by City staff and was approved by KDHE.  The completion of this document by City staff saved approximately $185,000 in remediation funding.

City staff also saved remediation funds by completing the all-inclusive Remedial Design/Remediation Action Work Plan (RD/RA Plan).  The RD/RA Plan was approved by KDHE and was originally listed at a cost of $211,284 in the comprehensive cost estimate summary in the Remedial Action Plan (RAP).

In addition City staff has been diligent to find other cost saving measures to optimize the finite remediation funding acquired with the Site.  This included partnering with Westar Energy to replace the existing aging electrical system providing power to the groundwater remediation containment system.  Under this agreement a new electrical system was designed to not only be more reliable but it will also accommodate future electrical needs for the future ground water monitoring and recovery wells listed within the RD/RA Work Plan.  This project will save long term maintenance and associated overhead cost with the electrical distribution lines since they will be owned and maintained entirely by Westar Energy. 

Other cost saving measures included a Sanitary Sewer Abandonment Work Plan which was developed by City staff and was executed almost entirely by crews from the Public Works and Utilities Departments. The Interceptor Trench Work Plan will be the installed by City crews once KDHE has completed additional geotechnical work associated with the plan. The additional geotechnical work is scheduled to take place in early December 2013.  Both of these projects completed by City staff and crews will save approximately $50,000 to $75,000.

Infrastructure Construction Update

The progress of the current infrastructure project associated with the redevelopment of the Site is as follows:  sanitary sewer 95% complete, storm sewer 90% complete, water line 70% complete.  The roadway has been cut to finish grade everywhere except the gas line crossing.  The optical fiber telecommunications conduit installation is to begin within the next couple of weeks.  When weather allows the road sub grade will be treated with fly ash and the under drains will be installed.  The fly ash will be will be capped with AB-1 and concrete paving will take place as weather permits.  The infrastructure project is expected to be completed by summer of 2014. 

Landfills

There are three landfills that will need to be moved before the development of the parcel identified as Block 'C' Lot 2 on the final plat (refer to the attached map). This parcel includes a solid waste landfill, an insulation landfill and a lime sludge landfill.  Two of these landfills (solid waste and insulation) will need to be over excavated and hauled to a permitted landfill (Hamm's or Deffenbaugh).  The lime sludge landfill can potentially be used as a remediation measure for the RCRA Site.  In other words its contents can be mixed with the soil at the RCRA site to help neutralize the elements responsible for   causing the low pH of the groundwater.  The cost associated with the excavation and subsequent relocation each of these landfills varies with weight of the material at the time of hauling.  The cost range for removing the solid waste landfill varies from $430,000 to $610,000.  The cost to remove the insulation landfill ranges from $300,000 to $430,000.

Cost Summary

As noted above the amount of remediation funds the City received with the acquisition of the Site totaled $8.5 million.  Cost savings realized by having City staff complete some of the work plan requirements of the Consent Order total approximately $450,000.  Refer to the attached cost summary table.  As of September 30, 2013 the remaining balance for the remediation fund totaled $7,203,990 or 84.75% of the original total.