Report Template

Report to/Rapport au :

Corporate Services and Economic Development Committee

Comité des services organisationnels et du développement économique

and Council / et au Conseil

19 October 2004 / le 19 octobre 2004

Submitted by/Soumis par : Greg Geddes, Chief Corporate Services Officer /

Chef des Services généraux

Contact Person/Personne ressource : Douglas H. McCaslin, Manager

Real Property Asset Management/Gestion des actifs et des biens immobiliers

(613) 580-2424 x 22595, Douglas.McCaslin@ottawa.ca

Ref N°: ACS2004-CRS-RPR-0045

SUBJECT:	eNVIRONMENTAL REMEDIATION UPDATE FOR 1142 RICHMOND ROAd

OBJET :	Mise à jour sur les mesures correctives pour le 1142, chemin richmond

REPORT RECOMMENDATION

That the Corporate Services and Economic Development Committee recommend Council receive this report for information.

RECOMMANDATION DU RAPPORT

Que le Comité des services organisationnels et du développement économique recommande au Conseil de prendre connaissance du présent rapport.

BACKGROUND

On 23 June 2004, City Council approved a 50-year lease of the vacant property located at 1142 Richmond Road to Centretown Citizens Ottawa Corporation (CCOC) as part of the City’s comprehensive Affordable Housing Strategy. Under the terms and conditions of the lease, the City was responsible for the remediation of contamination on the site, and for obtaining a Record of Site Condition from the Ministry of the Environment (MOE).

The site operated as a retail gasoline service station from the 1940s until the 1960s. The former City of Ottawa acquired the property in 1966 for a road-widening requirement. Until site closure on 31 December 2003, the City leased the property to various automobile sales and repair garage tenants.

Prior to lease negotiations, an Environmental Site Assessment had been completed to evaluate the site’s suitability for future redevelopment. Soil analysis identified total petroleum hydrocarbons (gasoline/diesel and heavy oils range) in excess of MOE criteria. Groundwater analysis identified chlorinated solvent compounds in excess of MOE criteria.

Demolition of all above-grade structures took place in February 2004. Following demolition, a fuel oil underground storage tank and an underground oil/water separator were removed. The removal was intended to expedite subsequent remedial excavation.

As indicated in the 23 June 2004 report to Council (ACS2004-CRS-RPR-0030), the most cost effective and efficient method of managing the remediation of the site was considered to be in conjunction with pending site redevelopment by CCOC. Using this approach, it was estimated that costs, in the order of $70,000.00 to $100,000.00, could be saved, as the site would not require fill and compaction because development of the site would take place immediately. The remediation costs were estimated at $120,000.00 based on removal and disposal of 3635 tonnes of contaminated soil.

DISCUSSION

The original scope of work consisted of site preparation, excavation and haulage of approximately 3635 tonnes of impacted soil (approximately 9 business days). Soil excavation was initiated on 1 June 2004 and completed on 20 July 2004 (34 business days). The significant increase in the extent of work undertaken resulted from 4 unplanned issues.

Septic Field/Tank

An unidentified septic system was encountered on the property. The tank required vacuum pumping to remove liquids and sludge. Once removed, waste oil was encountered requiring the removal of approximately 1,000 additional tonnes of soil and relocation of a light pole guy anchor.

Impacted Foundation Footings

Materials under the structure were impacted by hydrocarbons. These impacts were not previously identified as part of the site assessment. This required removal and disposal of 900 additional tonnes of impacted soil.

Cinder and Ash Fill

Fill northeast of the building contained metals (from ash and cinders) in excess of MOE criteria. Site investigations did not encounter the ash and cinder layer, although metal analyses of a fill sample had previously been completed and did not exceed remedial criteria. Excavation and disposal of this material totalled approximately 3,000 additional tonnes of impacted soil.

Occurrence of LNAPL (Gasoline)

Pre-remediation investigations had concluded that impacts were restricted to the shallow aquifer and soils above that aquifer, generally contained within .5 and 2 metres below ground surface (mbgs). A predominantly clayey silt material underlies the shallow aquifer. This material is not considered to be permeable and contamination extending below this layer was not anticipated. However, exploratory test pitting at the 2 mbgs base of the excavation in and around the source area encountered gasoline at approximately 5 mbgs. No connection between the floor of the excavation and this deeper impact was discovered during site remediation.

Removal of the impacted soil and gasoline required a temporary access road to the base of the excavation. As a result of wall stability concerns during excavation, a geotechnical engineer was retained to provide excavation procedure advice and observe excavation while progressing adjacent to Richmond Road. Excavation in this area extended to a depth of approximately 5 mbgs. The material from the additional excavation was approximately 3,000 tonnes.

The requirement for gasoline recovery and water treatment required a temporary on-site water treatment system.

In total, 13,548 tonnes of impacted material was excavated and disposed of and 3,061 tonnes of backfill material was imported for the access ramp construction, slope stabilization and light pole reinstatement.

In order to commence redevelopment of the site immediately upon completion of the environmental remediation, CCOC had completed the tendering of its construction contract for the project. The tender was based on an open excavation with 3635 tonnes of material removed. As the final tonnage removed from the site was approximately 10,000 more than originally estimated, the City and CCOC undertook a review of the cost impact on the project. It was agreed that the City would pay $161,814.00, plus GST, in full settlement of CCOC's claim for additional costs associated with the increased size of the excavation completed by the City.

As a result of the increased work required to obtain the Record of Site Condition, additional costs were incurred beyond the budget estimate of $120,000.00. Total remediation costs increased to $330,000.00 as a result of the 4 unplanned issues.

Redevelopment of the site is currently underway by CCOC.

ENVIRONMENTAL IMPLICATIONS

The assessment and restoration activities carried out at the 1142 Richmond Road site have been completed in accordance with the Ministry of the Environment Guideline for Use at Contaminated Sites in Ontario, revised February 1997.

CONSULTATION

No external consultation was required. The property located at 1142 Richmond Road was remediated in accordance with the Ministry of the Environment Guideline for Use at Contaminated Sites in Ontario, revised February 1997, to permit the redevelopment of the site for affordable housing, as approved by City Council on 15 June 2004.

FINANCIAL IMPLICATIONS

The total cost of this project is $491,814.00. The remediation cost, in the amount of $330,000.00, has been funded from the Environmental Remediation Account – 903002. The cost associated with reinstatement and compaction of fill to be paid to Centretown Citizens Ottawa Corporation, in the amount of $161,814.00, has been funded from the Old Landfill Management Account – 903003.

ENVIRONMENTAL REMEDIATION
UPDATE FOR 1142 RICHMOND ROAD

Mise à jour sur les mesures
correctives pour le 1142, chemin richmond

ACS2004-CRS-RPR-0045

Catherine Boucher, Executive Coordinator, Centretown Citizens Ottawa Corporation (CCOC), (the developers of the subject site) appeared before the Committee. She noted in the report it states the City would pay the CCOC $161,814.00 plus GST “in full settlement of CCOC’s claim”. She advised there have in fact been additional back-fill costs and the CCOC was requesting the opportunity to re-negotiate this amount with the City. She said although it was not a huge amount of money, it would consume quite a bit of the contingency funds the CCOC has for the building of the project.

Councillor Cullen sought confirmation from staff that they were open to receiving the additional information from the CCOC and making adjustments where necessary.

Steve Finnamore, Director, Real Property Asset Management advised the staff report had been submitted prior to the identification of this issue. He said if there were an additional impact to this site as a result of the remediation work, staff would work through this with the CCOC. He indicated staff would then come back to Committee with a further report with respect to this additional information.

The Committee agreed to receive this report subject to a direction to staff to resolve this matter. Mr. Finnamore confirmed this would be done.

Councillor Jellett asked the delegation how much extra money was involved. Ms. Boucher advised the amount related to soils was $21,000. As well, there was an extra $5,000 related to the fact the building the City demolished was to have been capped off at the road and this was not done. The total would be approximately $26,000. She advised the total value of the project is approximately $3 million (including the value of the land).

The Committee then received the report with the proviso that staff meet with the CCOC to resolve the issue of the additional costs identified by Ms. Boucher.

That the Corporate Services and Economic Development Committee and Council receive this report for information.

RECEIVED

Pour la gouverne du conseil

and Council / et au Conseil