A RESOLUTION OF THE CITY OF COMMERCE, CALIFORNIA, DECLARING THAT THE IMMEDIATE REMEDIATION OF A FORMER DUMP SITE ON CITY PROPERTY NOW USED FOR A RECREATION CENTER AND SPORTS FIELDS CONSTITUTES AN EMERGENCY AND CAN ONLY BE PERFORMED WITHOUT THE DELAYS INHERENT IN THE PUBLIC WORKS BIDDING PROCEDURES; AND AWARDING A CONTRACT FOR PRELIMINARY PROCEDURES, PERMITTING AND REMEDIATION REQUIREMENTS TO RAMBOLL AMERICAN ENGINEEING SOLUTIONS, INC.
WHEREAS, on August 1, 2022, the City of Commerce (“City”) entered into a Development Agreement with Comstock Gage, LLC (“Developer”) for the development of the Modelo project which included one property owned by the Developer and three properties owned by the City.
WHEREAS, the completion of the Modelo project is in the public interest and will provide the City and its residents with substantial benefits including, but not limited to:
1. The remediation of a hazardous materials site
2. Conversion of an older limited use Recreation Center into a new, modern recreation facility located on land which is free of hazardous materials.
3. Provision of new housing opportunities through the construction of 850 (740 for rent, 110 for sale) new residential units
4. Provide new commercial amenities such as 245,000 square feet of commercial retail space, a grocery store, pharmacy, entertainment space, various restaurants, and a Los Angeleno-regional museum which are needed by the nearby community
5. Develop up to 2,220 parking spaces to support the residential and commercial retail space.
6. Key design components of the project is to include the following: (i) an architecturally striking, significant, sustainable and usable Community Center, (ii) a two-level subterranean parking structure placing all parking below ground, which will result in a pedestrian-friendly, walkable, open and inviting ground-level for the Project and (iii) architectural vertical structures serving as the Project’s visual and physical gateway.
7. The Community Element is designed to include a multi-disciplinary sports complex, including a spacious outdoor sports field, and open green space as well walking and bike paths, open parkland, all-inclusive playground and splashpad, picnic and barbecue area.
WHEREAS, the Developer property and two of the City properties are the site of a former dump site and contain hazardous materials.
WHEREAS, the provisions of the Development Agreement contained provisions for the remediation of the hazardous materials on the two City Properties (“City Properties”).
WHEREAS, on or about April 7, 2022, the City of Commerce applied for an Equitable Community Revitalization Grant (“ECRG”) from the California Department of Toxic Substance Control (“DTSC”) in the amount of seven million dollars for the remediation and clean-up of hazardous materials located on the City Properties located at 6364 Zindell Avenue, Commerce, CA 90040 , Assessor Parcels Numbered 6357-018-900 and 6357-019-904; and WHEREAS, on or about June 6, 2022, DTSC approved the grant funds in the amount of seven million dollars for the remediation of the City Properties with a grant funds expiration date of June 6, 2024. On or about June 12, 2024 DTSC granted an extension of time to December 13, 2024 for completion of the remediation of the City Properties; and WHEREAS, It is impossible or improbable to complete the public works bidding process, award contracts for the complex performance tasks of the remediation of the City Properties, and complete the remediation within the time allowed by the ECRG; and WHEREAS, loss of the ECRG funding would impose a substantial financial hardship on the City’s ability to complete the remediation of the City Properties; and WHEREAS, California statutes and case law allow exceptions from the public works bidding requirements in case of emergency or where the nature of the subject of the contract is such that competitive proposals would be unavailing or would not produce advantage, and advertisement for competitive bids would thus be undesirable, impractical, or impossible.
NOW, THEREFORE, THE CITY OF COMMERCE CITY COUNCIL DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1: The City Council of the City of Commerce finds that the immediate hazardous materials remediation of the City Properties through the funding provided by the ECRG from the DTSC not later than December 13, 2024 (“December Deadline”) constitutes an emergency pursuant to Public Contracts Code Section 22035 and 22050 and Commerce Municipal Code Section 3.18.060 and that compliance with the public works bidding procedures required by the California Public Contract Code would make the project improbable or impossible to perform because:
a. City’s expert consultants have advised the City that the remediation of the City Properties could be completed by the December Deadline only if the remediation process is commenced immediately. Such a project schedule does not allow time for the public works competitive bidding process. b. Compliance with the public works bidding procedures would not produce any advantage, but in fact would result in an adverse impact on the public welfare due to loss of ECRG funding to remediate the City Properties and complete the Modelo project which provides many public benefits. c. The delay inherent in the public works bidding process would adversely affect the public health, safety, and welfare. The timely remediation of the City Properties will convert a former landfill into a clean toxic free usable property. d. Municipal law authorities have stated that the purposes of the competitive bidding laws are to guard against favoritism, improvidence, extravagance, fraud and corruption; to prevent the waste of public funds; and to obtain the best economic result for the public. Such authorities have also stated that where competitive proposals work an incongruity and are unavailing as affecting the final result, or where competitive proposals do not produce any advantage, or where it is practically impossible to obtain what is required and to observe such form, competitive bidding is not applicable. It is impossible or impractical to complete the public works bidding process without losing the $7 million ECRG funds. e. California courts have held that competitive bidding laws should not be applied so as to impede the usual and regular progress of the public business, or to deprive the inhabitants, even temporarily, of those things necessary and indispensable to their subsistence, their health, or the security and protection of their persons or property. Contingencies such as the severely limited time to expend the ECRG funds may arise when services, materials and property, may be immediately needed, and where competitive offers and written contracts would be unserviceable, impractical or impossible to meet the needs of the public interest of completing the remediation of the properties. The competitive bidding process does not apply in such cases. f. The current State of California financial deficit has caused the DTSC-ECRG program to be suspended and eliminated Round 3 applications. The program is not expected to be reinstituted for the next several years, if at all. g. If the City fails to expend the DTSC-ECRG Grant funds in a timely manner, December 13, 2024, the City will lose all or a part of the $7m in remediation funding. h. Delay in the completion of the remediation work caused by competitive bidding would have a direct adverse effect on the financial ability of the City to meet its financial obligations, complete the elimination of a hazardous materials site, protect and public health and welfare and provide substantial benefits to the public such as a new recreation center, new sports fields, and convenient commercial shopping facilities. i. The current City site, addressed as 6364 Zindell Avenue and known as Veterans Memorial Park, consists of recreation facilities which are outdated and were decommissioned years ago in anticipation of a new development.
SECTION 2: Based on the foregoing facts and findings, the City Council determines that compliance with the public works competitive bidding procedures would be impossible, impractical, unavailing, uneconomical and defeat the public interest in remediation of the City Properties and development and completion of the Modelo project.
SECTION 3: The City Council Authorizes Ramboll American Engineering Solutions, Inc to provide work for evaluating, engineering, analysis, permitting, and remediation of the City Properties in a sum not to exceed $6,750,000. The work authorized shall be as substantially set forth in the Proposal attached to this resolution as exhibit “A”, in a form approved by the City Manager and City Attorney and may be provided under multiple phased contracts needed to accomplish the remediation efforts.
SECTION 4: In order to more efficiently and timely initiate and complete the remediation of the City Properties, the City Council authorizes the City Manager to negotiate and execute contracts and other legal documents necessary to perform the remediation of the City Properties. The City Manager shall report all actions taken pursuant to this authorization to the City Council at the next regular meeting of the City Council after the action is taken.
SECTION 5: The City Clerk shall attest to the passage of this Resolution, and it shall thereupon be in full force and effect.
PASSED, APPROVED AND ADOPTED this day of AUGUST 2024 by the following vote:
APPROVAL OF THIS RESOLUTION REQUIRES A 4/5 VOTE OF THE ENTIRE CITY COUNCIL Yes:
No:
Abstain:
Hugo A. Argumedo, Mayor
ATTEST:
Lena Shumway, City Clerk
RESOLUTION NO. ____
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