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Date: September 8, 2026
STAFF REPORT
City of Lancaster
HA CC 3
9/8/2026
TN
To: Mayor Parris and City Council Members
From: Patti Garibay, Director – Community Development
Becky Bartlett, Manager – Housing
Subject: Professional Services Agreement with Waterstone Environmental, Inc. for Environmental Consulting Services and Sampling Activities for Investigation and Remediation Activities in Relation to HNR-1
Recommendations:
1. Approve a Professional Services Agreement with Waterstone Environmental, Inc. (“Waterstone”), in substantially the form provided and subject to approval by the City Manager and City Attorney, for environmental consulting services and additional sampling activities for investigation and remediation activities associated with 20 parcels owned by the City in relation to Housing and Neighborhood Revitalization-1 (“HNR-1”) in the amount not to exceed $215,000 as the agreement continues in full force and effect until project completion.
2. Authorize the City Manager, or his designee, to execute all related documents.
G.C. Section 84308: No
Fiscal Impact:
Amount not to exceed $215,000 as the agreement continues in full force and effect until project completion. Funding for the current fiscal year is available in Account No. 314.22000.5710.
Background:
The Housing Authority owns HNR-1, a 4.7-acre property consisting of twenty (20) parcels located at the southwest corner of West Avenue I and Sierra Highway in Lancaster. The site is situated within a mixed residential and commercial area. Prior to acquisition by the Housing Authority, the property was developed with residential homes, retail businesses, gas stations, and automobile repair facilities.
All existing structures were demolished between approximately 2003 and 2011, and the site has remained vacant and unimproved since that time.
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Soil and soil vapor sampling conducted between 2021 and 2024 at HNR-1 identified subsurface impacts in soil, soil vapor, and groundwater. The predominant chemical of concern (“COC”) is perchloroethylene (PCE), which was identified primarily in the western portion of the subject property. Based on the results of off-site soil vapor samples, Waterstone conducted off-site indoor air sampling in residential properties to the south and commercial properties to the north to evaluate the potential for vapor intrusion. No PCE was detected in any indoor air samples.
Waterstone and City staff met with Lahontan Regional Water Quality Control Board (“LRWQCB”) on December 2, 2024, to discuss the subject property’s history and findings to date. On December 27, 2024, the LRWQCB sent the City an Initial Cost Recovery Program letter. Authorization for spending was received by the Housing Authority on April 8, 2025.
To further define site conditions, Waterstone completed additional groundwater, soil vapor, and off- site sampling efforts. In April 2025, the City entered into a Voluntary Cleanup Agreement with the LRWQCB, providing regulatory oversight for the investigation and remediation of the property. As part of the oversight process, the property was divided into two project areas: the Avenue I Properties – East and the Avenue I Properties – West.
Site Characterization Reports for both project areas were submitted to the LRWQCB in June and August 2025. The LRWQCB has authorized the City to proceed with the next phase of remediation planning for the East Properties and West Properties.
The proposed agreement with Waterstone will allow the City to continue the environmental remediation process necessary to obtain regulatory closure and prepare the property for future redevelopment. Advancing these efforts will maintain project momentum, reduce delays, and position the site for productive reuse. Approval of this agreement reflects the City's commitment to transforming a long-vacant property into a safe, developable asset that will protect public health, satisfy regulatory requirements, and remove barriers to future investment.
Redevelopment of the site has the potential to create new housing, commercial opportunities, and economic activity. Authorizing this agreement is a critical step toward returning the property to productive use and advancing the City's long-term goals of economic development, neighborhood revitalization, and an improved quality of life for the Lancaster community.
BB/ah
Attachment:
Waterstone Environmental, Inc. Agreement for Professional Services