Item Number: 11
City Council / Board of Directors
Written Communications
Meeting of: April 15, 2025
Submitted By:
Tony C. Camargo, Deputy City Manager
Subject:
Amendment No. 1 to the Consultant/Professional Services Provider Agreement with Ninyo & Moore Geotechnical and Environmental Sciences Consultants Recommendation:
That the Honorable City Council acting as the City as Housing Assets Successor approve Amendment No. 1 to the Consultant/Professional Services Provider Agreement by and between the City as Housing Assets Successor (“CHAS”) of the former Victorville Redevelopment Agency and Ninyo & Moore Geotechnical and Environmental Sciences Consultants (“Ninyo & Moore”) in the amount not to exceed $252,494.31.
Fiscal Impact:
There is no fiscal impact associated with this item, as the City Council adopted Resolution No. CHAS 25-001 on February 18, 2025, approving a mid-year budget modification by increasing Fund 205 (“CHAS”) expenditures for said amendment in the amount of $192,494.31 to support ongoing remediation efforts at the former Nuway Dry Cleaners Site (Account Code 2053080-52300-89001 CHAS NuWay Contract Services).
Strategic Plan Goal:
This item aligns with Strategic Goal A, Financial Sustainability by planning and controlling costs associated with the remediation of the Former Nuway Dry Cleaners site until such a time as a new funding source can be identified, and Goal E, Investment in Infrastructure by maintaining City assets and continuing environmental clean-up efforts as required by the Lahontan Regional Water Quality Control Board (“LRWQCB”).
Background:
In February 2007, the former Victorville Redevelopment Agency (“RDA”) funded the acquisition of the former Nuway Dry Cleaners site located at 8th and C Street (the “Site”) through a property tax lien sale conducted by the County of San Bernardino. The Site previously had been identified as a catalyst for redevelopment in the Strategic Action Plan 4 0
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for the Old Town/Midtown Project Area. Although the former RDA purchased the property with RDA funds, the property was vested in the name of the City of Victorville. After acquisition, the City/RDA became aware of site contamination and since that time has completed various site assessment and remediation studies, monitoring, and reporting through its environmental consultant, Ninyo & Moore.
In January 2013, the Site was transferred to the Victorville Housing Trust (later to be corrected and identified as the City as Housing Assets Successor (“CHAS”) as a part of the RDA dissolution process since it had been purchased for mixed use/affordable housing purposes. Because the RDA tax increment was no longer available to fund remediation activities of the Site, the City needed to look for other funding sources, such as grant funds to be able to successfully continue the required investigation and ongoing remediation of the Site.
In October 2018, the City Council approved Resolution No. 18-086 accepting grant funds related to the California State Water Resources Control Board (“CSWRCB”) Site Cleanup Subaccount Program (“SCAP”) Grant in the amount of $1,457,598. This funding source helped with the ongoing assessment and remediation of groundwater contamination from the Site. The City entered into a SCAP Grant Agreement in August 2019 and subsequently entered into a Consultant/Professional Services Provider Agreement with Ninyo & Moore in the same amount to carry out the work identified in the SCAP Grant Agreement scope of work (“Ninyo & Moore SCAP Grant Agreement”).
Discussion:
On or around January 2021, the LRWQCB requested the City to conduct a soil vapor survey of neighboring properties adjacent to the Site. This additional work was not identified in the SCAP Grant Agreement scope of work and could not be reimbursed by the CSWRCB. Therefore, on April 13, 2021, the City approved Amendment No. 1 to the Ninyo & Moore SCAP Grant Agreement in the amount of $50,000, to conduct the soil vapor survey.
Since the SCAP Grant was set to expire in March 2024, and the remediation at the Site would not be completed by this date, in July 2023, staff began discussions with the Grant Manager from the CSWRCB as well as LRWQCB staff on the possibility of obtaining a new SCAP Grant to complete and close out the remediation of the Site. The City, with the assistance of Ninyo & Moore, proposed the continued funding by the CSWRCB to fund the remaining tasks to close out the Site. In the meantime, the City was still required to continue remediation.
As the City was anticipating the continued remediation efforts in Fiscal Year 2024-25, the City Council approved, through the adoption of the budget, $60,000 in Fund 205 for CHAS Nuway Contract Services on June 4, 2024. At the council meeting of June 18, 2024, the City Council approved a new Consultant/Professional Services Provider Agreement with Ninyo & Moore in the amount not to exceed $66,000, which included a $6,000 contingency. The term of this agreement is July 1, 2024, expiring on June 30, 2025, with the purpose of funding the remediation for July, August and September 2024. In addition, 4 0
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because there were sufficient funds in Fund 205, services provided in October 2024 could also be paid under this contract. Therefore, the total amount paid to Ninyo & Moore for the months of July through October 2024 was $54,518.31.
However, due to a delay in the State’s review and approval of the new SCAP Grant, and through the approval by the CSWRCB and LRWQCB, staff requested Ninyo & Moore provide a proposal for the minimum monitoring and remediation efforts required at the Site through June 2025. The proposal was received on December 4, 2024, totaling $198,000 for services from October 2024 through June 2025.
Subsequently, at its regular meeting on February 18, 2025, the City Council approved an additional appropriation of $192,494.31 as part of the mid-year budget approval process to fund the work identified in the proposal and to demonstrate the City’s desire to continue remediation. As the October 2024 invoice from Ninyo & Moore, in the amount of $5,505,69, was paid previously, staff reduced the proposal amount from $198,000 to the requested amount of $192,494.31. In addition, the above-mentioned $6,000 in contingency was not utilized. Therefore, staff revised the total cumulative sum of the agreement to $252,494.31 and prepared the attached Amendment No. 1 to the Consultant/Professional Services Provider Agreement with Ninyo & Moore (Attachment A) for your review. If approved, the invoices for November 2024 through June 2025 will be processed under the amendment.
As a companion staff report, staff are requesting the Council adopt Resolution No. 25- 019 to accept the grant award of $483,353, and to designate the City Manager to execute the SCAP Grant Agreement with the CSWRCB. Portions of the invoices totaled above may be reimbursable through the new grant if the CSWRCB determines that services performed after December 13, 2024, fell within the grant scope of work. However, reimbursement of any charge is not permitted until the SCAP Grant Agreement has been fully executed. The Ninyo & Moore Consultant/Professional Services Provider Agreement (Attachment A) will be utilized for any non-SCAP related services performed during November 2024 through June 2025; however, staff is hopeful that the new SCAP Grant, once processed, will cover the majority of these expenses.
Staff remains available for any questions you may have.
Attachments: A. Amendment No. 1 to the Consultant/Professional Services Provider Agreement with Ninyo & Moore Geotechnical and Environmental Sciences Consultants