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