200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-4544
Fax: (714) 765-5164
www.anaheim.net
SUCCESSOR AGENCY AGENDA REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: MARCH 26, 2024
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: EIGHTH AMENDMENT TO PROFESSIONAL SERVICES
AGREEMENT BY AND BETWEEN THE CITY OF ANAHEIM
AS SUCCESSOR AGENCY TO THE ANAHEIM
REDEVELOPMENT AGENCY AND TETRA TECH BAS, INC.
ATTACHMENT (Y/N): YES ITEM # 01
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, acting as Successor Agency to the Anaheim Redevelopment Agency, by Motion:
1. Approve the Eighth Amendment to a Professional Services Agreement by and between the City of Anaheim as Successor Agency to the Anaheim Redevelopment Agency and Tetra Tech BAS, Inc., increasing the maximum compensation by $11,900,000 from $29,809,661 to $41,709,661;
2. Authorize the Executive Director or designee, to execute and administer the Eighth Amendment on behalf of the City; and
3. Increase the Economic Development Department FY 2023-2024 budget by $11,900,000 from the Redevelopment Property Tax Trust Fund.
DISCUSSION:
The Sparks, Rains, Anderson, and Davis Mud Pit Landfills (Landfills), located at the northeast corner of Beach Boulevard and Lincoln Avenue, are commonly known as the Lincoln Landfill (see Exhibit A). As part of the State approved Remedial Action Plan for the Landfills, the City is required to retain a contractor to perform the operations, monitoring, and maintenance activities at the Landfills.
In 2014, the City of Anaheim, as Successor to the Anaheim Redevelopment Agency (City), issued a Request for Proposals (RFP) to operate, monitor and maintain the landfill gas extraction and treatment system. A contract was awarded to Tetra Tech BAS as the lowest responsive bidder; the current contract term is through October 7, 2026.
The Seventh Amendment to the contract currently provides authority to complete routine and non-routine operations, monitoring, and maintenance activities in the amount of $29,809,661 through the contract term. Staff is requesting an Eighth Amendment to increase the maximum compensation from $29,809,661 to Eighth Amendment to Professional Services Agreement by and Between the City of Anaheim as Successor Agency to the Anaheim Redevelopment Agency and Tetra Tech BAS, Inc.
March 26, 2024
$41,709,661 to complete non-routine items in the amount of $11,900,000 from the Redevelopment Property Tax Trust Fund. There will be no General Fund dollars spent.
The increase in funding is needed due to methane detected at the Davis Mud Pit in the spring of 2021. Subsequently, the recommended remediation for the Davis Mud Pit was “Clean Closure” which means removing the contaminated soil and filling the pit with clean non-contaminated soil.
A Clean Closure Plan was prepared meeting the conditions identified in the California Regional Water Quality Control Board’s Conditional Approval letter dated April 27, 2007. This non-routine work is required to address the onsite methane gas release and will prevent future methane releases.
Part of the additional non-routine work to be undertaken as part of the Clean Closure Plan of the former Davis Mud Pit requires the temporary abandonment of existing Sparks, Anderson, and Rains landfill gas and groundwater monitoring systems, clean closure construction elements, reconstruction of Sparks, Anderson, and Rains Pit landfill gas system and groundwater monitoring system, and a construction completion report.
Subsequent phases of the landfill development will require additional non- routine work items to be approved by the City. Tetra Tech BAS must request and receive City approval for each specific work order before commencing any of the scope of work identified in the Eighth Amendment. Additionally, Tetra Tech BAS will bid out all work not completed with its in-house staff.
Funding for the proposed contract amendment comes from the Redevelopment Property Tax Trust Fund (RPTTF) administered through and paid by the County of Orange. The RPTTF is the countywide fund that accounts for the collected tax increment deposits of the former redevelopment agencies. The City must have approved contract authority to obtain funds from the RPTTF.
Funding has been submitted and approved by the Orange Countywide Oversight Board (OCOB) and the State Department of Finance. The amendment now requires the Successor Agency’s approval for full execution.
IMPACT ON BUDGET:
The Economic Development Department’s FY 2023/24 budget will be increased by $11,900,000 in Redevelopment Property Tax Trust Funds. There will be no impact to the General Fund.
Respectfully submitted,
Sergio M. Ramirez
Executive Director of the Successor Agency to the Anaheim Redevelopment Agency
Eighth Amendment to Professional Services Agreement by and Between the City of Anaheim as Successor Agency to the Anaheim Redevelopment Agency and Tetra Tech BAS, Inc.
March 26, 2024
Attachments:
1. Eighth Amendment to Professional Services Agreement (Tetra Tech BAS)
2. Exhibit A
3. Original Agreement with Amendment Nos. 1 - 7