City Council Agenda Report
Meeting Date: June 17, 2025
From: Daniel S. Wall, P.E., Director of Public Works
Department: Public Works
Submitted by: Gerard Garcia, Assistant Engineer
Subject
Revocable Encroachment License Agreement No. 442 with Vernon Environmental Response Corporation, not individually but in its capacity as Trustee of the Exide Vernon Environmental Response Trust
Recommendation
A. Find that approval of the proposed action is categorically exempt under the California Environmental Quality Act (CEQA), in accordance with CEQA guidelines 15061(b)(3), the general rule that CEQA only applies to projects which have the potential for causing a significant effect on the environment; and
B. Approve and authorize the Mayor to execute the Revocable Encroachment License Agreement No. 442 (Agreement) between the City of Vernon and the Vernon Environmental Response Corporation (VERC), not individually but in its capacity as Trustee of the Exide Vernon Environmental Response Trust (VERT).
Background
The former Exide facility in Vernon operated as a lead acid battery recycling plant until its oversight agency, the California Department of Toxic Substances Control (DTSC), ordered its closure. DTSC learned that Exide’s management of hazardous waste was unsafe, resulting in contamination of nearby soil and water. Extensive cleanup of Exide contamination started in 2018 and remains ongoing. The Vernon Environmental Response Trust (VERT) was created in October 2020, as part of Exide’s bankruptcy proceedings to handle the cleanup and closure of the former Exide facility. The VERT is overseen by DTSC and the U.S. Environmental Protection Agency (EPA) and is administered by its Trustee, the Vernon Environmental Response Corporation (VERC). DTSC is requiring VERT to install vapor probes to assess whether contamination from its site has spread beyond its property.
Accordingly, VERT has requested the City to issue an Encroachment License Agreement for the installation, construction, maintenance, and sample collection of two (2) vapor probes on Indiana Street between 26th Street and Bandini Boulevard within the City of Vernon. The vapor probes will be 71-foot soil borings created using Cone Penetration Testing (CPT) rig. There will be no soil samples collected for analysis, and all borings will be dual-nested soil vapor probes set at depths of 50 and 70 feet. Furthermore, the proposed vapor probe wells would be drilled directly into the sidewalk on Indiana Street, with each well having a diameter of 6 inches.
The City has prepared an Encroachment License Agreement No. 442 between the City of Vernon and VERC, in its capacity as Trustee of the VERT. The term of this license is for five (5) years from the effective date unless sooner terminated.
VERC has indicated its acceptance of the Encroachment License Agreement by properly executing the document prior to its submission to the City for consideration. The City Attorney’s office has reviewed and approved the Encroachment License Agreement as to form.
Fiscal Impact
Approval of the Revocable Encroachment License Agreement will result in $10,000 in additional revenue to the General Fund that shall be remitted prior to the issuance of the License. VERC will also pay an annual renewal fee of $642, payable each year during the term of the License on or before the anniversary of the effective date resulting in additional revenue to the General Fund Franchises and Agreements Account No. 011-410-000-410300. The renewal shall be increased annually to account for inflation based on the Consumer Price Index for All Urban Consumers, for the Los Angeles-Long Beach-Anaheim Metropolitan Area, or a similar index, published by the Bureau of Labor Statistics, U.S. Department of Labor, for the period ending April 30th of each year.
Attachments
1. Revocable Encroachment License Agreement No. 442