ADMINISTRATIVE REPORT

Date: June 11, 2002
Author/Local: Kolvane Yuh 7125
RTS No. 2787 CC File No. 8206

Council: June 25, 2002

TO:	Vancouver City Council
FROM:	Director of Real Estate Services
SUBJECT:	Award of Consulting Contract: Environmental Remediation Plan Preparation and Approval In Principle Submission for Southeast False Creek City Lands

RECOMMENDATION

THAT the Director of Real Estate Services be instructed to retain Morrow Environmental Consultants Inc. to implement the work program primarily to prepare an environmental remediation plan and to submit the plan to appropriate statutory authorities for Approval In Principle, at a maximum budget of $1,120,000 plus applicable taxes (source of fund to be the Property Endowment Fund), as detailed in Appendix "A" of this report, and the City Manager be authorised to approve consultant contracts.

GENERAL MANAGER'S COMMENTS

The General Manager of Corporate Services RECOMMENDS approval of the foregoing.

COUNCIL POLICY

Council approval is required for consultant contracts in excess of $30,000.

On October 19, 1999 Council approved the Southeast False Creek Policy Statement -Towards a Sustainable Urban Neighbourhood and Major Park in Southeast False Creek - be adopted as the guiding policy for both the Official Development Plan and, ultimately, the rezoning of Southeast False Creek.

On August 2, 2001 Council approved two Policy Reports and authorised staff to prepare Environmental Plans required for the preparation of the Official Development Plan and to establish an environmental assessment method for buildings in Southeast False Creek.

PURPOSE

This report seeks Council's approval to retain Morrow Environmental Consultants Inc. to implement a proposed work program primarily to prepare a remediation plan and submit the plan to statutory authorities for Approval In Principle, for a maximum budget of $1,120,000 plus applicable taxes. The report also asks that Council's authority of approving consultant contract be delegated to the City Manager for the work program.

BACKGROUND

On May 8, 1997 Council instructed the Director of Planning to proceed with the planning process for Southeast False Creek which was approved by Council on October 26, 1995. The process culminated in the Southeast False Creek Policy Statement that Council adopted on October 19, 1999 to guide the Official Development Plan (ODP) and rezoning of Southeast False Creek. On August 2, 2001, Council approved recommendations to prepare Environmental Plans required for the preparation of an ODP and to establish an environmental assessment method for buildings in Southeast False Creek.

In parallel and somewhat preceding the timing of the planning process, Council, on May 18, 1993 and February 1, 1994 directed Real Estate Services to retain consultants to investigate and characterise the environmental site condition of the City owned Southeast False Creek lands. On January 17, 1995 Council received the consultants' report which revealed contamination generally in the City Works Yard area and the former Canron area; it also identified localised issues of contaminated groundwater potentially discharging into False Creek. The localised issues required immediate action, and Council on April 11, 1995 approved Morrow Environmental Consultants Inc. (one of the original consultants selected through a public proposal call process) to further investigate the issues. On May 28, 1996 Council received Morrow's report and approved the consultant's recommendation to monitor the issue. The monitoring was augmented by further investigation at the former Asphalt Plant location in the Works Yard, upon Council's approval of May 12, 1998. With Council's approval on September 15, 1998, a pump and treat system for contaminated groundwater at the former Asphalt Plant area was installed and operated. On June 15, 1999 Council authorised a remediation program (excavation of contaminated soils) on the localised pockets at the former Canron site and the former Asphalt Plant site. Three consecutive excavations at the former Canron location and one excavation at the former Asphalt Plant location were carried out. Groundwater samples were taken for monitoring purpose, and Morrow advised while the level of contaminations has generally declined, several specific micro locationswithin the localised areas may require further attention. These micro locations have been continuously sampled and monitored. The total expenditure for the above stated work was approximately three million dollars.

DISCUSSION

The Environmental and Planning work approved by Council is leading to an application and approval of an ODP that will require an Approval in Principle of a remediation plan under the Waste Management Act.

With the completion of the preliminary planing of the site, and the environmental remediation and investigation performed to date, it is now time to prepare a remediation plan for the entire site and submit the plan to the Ministry of Water, Land and Air Protection to seek Approval In Principle. It is expected to take approximately one year for review and Approval in Principle of the remediation plan.

Staff note there is still the outstanding issue of what to do about sediments in False Creek. That may have to be resolved before the Ministry issues an Approved in Principle remediation plan for SEFC.

The proposal of Morrow is attached as Appendix "A"; of the proposed budget, 20% or $219,500 is their fees, whilst the remaining amount of $900,500 is comprised of statutory fees to the Ministry, subconsultants and subcontractors, laboratory and contingency. Morrow has been involved with the City owned lands at Southeast False Creek since 1994 and due to their familiarity with issues and data of the lands, and their satisfactory performance, in the opinion of the Director of Real Estate Services, the firm is recommended to continue as prime consultant of the proposed work program. Of the subconsultants, EVS Environment Consultants Ltd., a well respected firm which specializes in sediment and ecological assessment; its budget is $303,000 or 27%, two-thirds of which is laboratory analyses costs. The statutory review fee to the Ministry is $170,500 or 15% of the total budget. Removing the dilapidated decking at the former Canron site inlet is estimated at $195,000 (17.5% of total budget) which is the quote from Fraser River Pile and Dredge; the other quote from Vancouver Pile Driving is significantly higher, more than double. Other disbursements primarily relate to drilling contractors and laboratory analyses. The Director of Real Estate Services believes that the proposed estimates are reasonable considering the size of the land area (approximately 47 acres), deck area (0.8 acre) and the scientific complexity and expertise of ecological and sediment assessment. Payment will be made only for work actually performed and within approved budget.

Council is requested to delegate authority to approve consultant contracts to the City Manager for the specific work program presently being recommended. The arrangement follows similar previous approval of delegated authority related to environmental issues at Southeast False Creek lands. The delegated authority has permitted more flexibility and ability of staff to deal with urgent and unanticipated site conditions, which may arise in the deck removal and sediment assessment of the inlet.

CONCLUSION

As discussed in this report, the environmental site work has progressed to a stage that the logical next step is to prepare a remediation plan for the whole site using investigation data accumulated since 1994 and land use information that is recently available. The proposed cost estimates are reviewed and considered reasonable in light of the extent and complexity of the work. Therefore, the Director of Real Estate Services recommends approval of the proposed work program at a maximum budget of $1.12 million.

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(c) 1998 City of Vancouver