ADMINISTRATIVE REPORT

                                           Date: May 7, 1996
                                           Dept. File No. 3103


   TO:            Vancouver City Council

   FROM:          Manager of Real Estate Services

   SUBJECT:       Phase IIA Environmental Site Reports  on Three Local
                  Areas of the City-owned lands on the Southeast Shore of
                  False Creek.

   RECOMMENDATION

        A. THAT Council receive the *reports on Phase IIA Environmental
           Site Assessment on three local areas (marked as Study Areas A,
           B and C in Appendix "A") on the City-owned lands on the
           Southeast Shore of False Creek for information; 

        B. THAT the budgets for Morrow Environmental Consultants Inc. and
           MTR Consultants Ltd's contracts be increased upon approval of
           the Manager of Real Estate Services, to include the monitoring
           of the environmental site conditions at the Engineering Asphalt
           Plant area (Study Area A) and the former Canron site area
           (Study Area B), for a total additional cost for both contracts
           not to exceed $20,000 plus GST to be funded by the Property
           Endowment Fund.

   GENERAL MANAGER'S COMMENTS

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

   COUNCIL POLICY

   -    On July 26, 1990, Council identified the Southeast Shore of False
        Creek as a let-go industrial area.

   -    On December 3, 1991, as part of the Central Area Plan, Council
        resolved that housing be the main land use when planning for the
        Southeast Shore of False Creek, and the City Works Yard location
        was reaffirmed at least until the year 2003.

   -    On September 28, 1993, Council approved the purchase of the former
        BNR Lands at Malkin Avenue, partly for relocating the existing City
        Works Yard at Cambie and 1st Avenue.
    
   -    On December 6, 1994, as part of the Clouds of Change Status Report,
        Council resolved that the Special Office for the Environment
        explore with the Real Estate Division, the potential for utilizing
        City lands in the Southeast False Creek as a model for sustainable
        development.


   PURPOSE

   This report informs Council of the findings of the recently completed
   Phase IIA environmental site assessment on the City-owned lands on the
   Southeast Shore of False Creek, and also requests Council's approval of
   a budget for contingency purposes in connection with further monitoring
   at two local areas, i.e. the Engineering Asphalt Plant area and the
   former Canron plant area.

   BACKGROUND

   On May 18, 1993, Council directed Real Estate staff to carry out an
   environmental site assessment of approximately 42 Acres of City-owned
   lands on the Southeast Shore of False Creek, and approved MTR
   Consultants Ltd. as environmental project manager for a maximum fee of
   $100,000 inclusive of GST.

   On January 24, 1994, Council approved Morrow Environmental Consultants
   Inc. and Envirochem Special Projects Inc. to carry out preliminary
   environmental site sampling and analysis (Phase II) on the lands at a
   total cost not to exceed $200,000 inclusive of GST.

   On January 17, 1995, Council received, for information, a report on the
   findings of the Phase II environmental assessments. The report found
   that in-so-far as contamination issues are concerned, residential use
   would be feasible at the eastern portion of the City lands; it could be
   feasible at the centre portion, but it will be very costly at the City
   works Yard site. 

   In January 1995, the findings and scientific data were discussed by Real
   Estate staff and MTR with the staff of the Ministry of Environment and
   Environment Canada. The environmental authorities requested further
   assessments on three local areas marked as Study Area A, B and C in
   Appendix "A". The objective was to assess the potential for escape of
   contaminants through ground water into False Creek.

   On May 2, 1995, Council approved Morrow Environmental Consultants Inc.
   and MTR Consultants Ltd. to carry out further assessments at a total
   cost not to exceed $75,000 inclusive of GST.

   DISCUSSION

   In February 1995, Morrow and MTR devised an investigation plan  which
   was forwarded to the environmental authorities. Subsequent to Council's
   approval in May 1995, the consultants implemented the investigation
   plan. The detailed reports were completed recently and Real Estate staff
   will submit the reports to the environmental authorities as requested.
   In accordance with the consultants' recommendation, monitoring work is
   on-going within existing approved budgets.

   Relevant to the objective of identifying the potential of  contaminants
   escaping into False Creek, the findings are summarized as follows:

        Study Area A (Engineering Asphalt Plant):

        A body of viscous hydro-carbon materials is identified to be
        situated underneath the asphalt plant but has not migrated to
        within 65 feet of False Creek. A plume of ground water with
        dissolved hydro-carbon compounds in excess of the standards for
        discharge to a marine environment, occurs in conjunction with the
        said viscous hydro-carbon body and extends down-gradient to within
        65 feet of False Creek. By inference, some dissolved hydro-carbons
        may be escaping into False Creek through ground water.

        City Engineering intends to relocate the asphalt plant in
        approximately two years time, and upon this knowledge, the
        consultants recommended monitoring the ground water quality and the
        conditions of light hydro-carbon liquid around the plant until the
        plant is decommissioned. This monitoring work is on-going and if
        significant deteriorations are noted during monitoring, additional
        actions may be required.

        Study Area B (Former Canron Plant):

        In general, metals contamination is widespread within fill
        materials across the site and is probably due to the historical use
        of heterogeneous mineral soil as fill material in forming the site.
        A plume of contaminated ground water containing zinc and ammonia
        concentrations exceeding the standards for discharge to a marine
        environment has been identified at the former galvanizing
        operational area extending down-gradient to False Creek. A storm
        sewer outfall is present on the site, and elevated concentrations
        of zinc and ammonia were also found in the samples from the
        outfall.

        The consultants recommended monitoring of ground water and the
        storm sewer outfall to assess variations and trends in water
        quality over time and the state of the tide. This work is on-going
        within approved budgets.

        Study Area C (North-eastern corner of City lands):

        In this local area, a body of high concentrations of hydro-carbon
        materials in soil are identified within 80 feet of False Creek, and
        the source of the contamination appears to be the entrainment of
        probably coal tar within the historical fill material forming the
        site. In this area, ground water was identified to be contaminated
        by dissolved hydro-carbon materials in excess of the standards for
        discharge to a marine environment. However, the estimated amount of
        dissolved hydro-carbon materials that may be escaping into False
        Creek is not considered to be major.

        No further environmental work is recommended at this local area
        until such time as preliminary land use plans are developed.

   The cost of the on-going monitoring work at the Asphalt Plant area and
   the former Canron Plant area is expected to be within the scope of the
   approved budgets, but it is prudent to set up a contingency budget in
   order that timely actions can be taken if so required. Therefore, Real
   Estate Services requests Council's approval of $20,000 plus GST to meet
   any such need; the sum to be funded by the Property Endowment Fund. The
   contingency amount is intended for consultant fees for any additional
   work and will not be sufficient to cover soil removal or other
   remediation work which if required will be the subject of a report back
   to Council. 


                       *    *      *      *     *


   
   General Manager                   Report dated  May 7, 1996      

                                   
   Date                              Author Kolvane Yuh Phone 7125  

   
   This report has been prepared     IRTS Number                     
   in consultation with the
   departments listed to the         Concurring Departments
   right, and they concur with its
   contents.                         Finance                         
   Division Head                   
                                     Engineering                     
   Date                           
                                                                     

                                                                     

                                                                    





     HP5-6858.COV

                                                     
* Copy of the reports are on file in City Clerk's Office. Important conclusions are summarized in this report.