Item Number: 12
City Council / Board of Directors
Written Communications
Meeting of: April 15, 2025
Submitted By:
Tony C. Camargo, Deputy City Manager
Subject:
Acceptance of Site Cleanup Subaccount Program Grant Agreement and Funds Recommendation:
That the Honorable City Council:
(1) Adopt Resolution No. 25-019 Entering into a Site Cleanup Subaccount Program (”SCAP“) Grant Agreement with the California State Water Resources Control Board accepting the grant award in the amount of $483,353 for the purposes of funding site investigation and remedial action at the Former Nuway Dry Cleaners Site; (2) Authorize the City Manager to execute the Agreement and amendments, subject to minor non-substantive changes, and designating the Deputy City Manager as an additional signing agent of the City authorized to sign and submit any and all documents related to request for reimbursements; and
(3) Adopt Resolution No. 25-020 Amending the Annual Budget for Fiscal Year 2024-2025 approving additional revenue and expenditures in the amount of $483,353.
Fiscal Impact:
An additional revenue and expenditure appropriation in the amount of $483,353 in Fund 2707501E-43110-89043 (Revenue) and Fund 2707501E-52300-89043 (Expenditure) is required for Fiscal Year 2024-2025 to record expenditures and revenues related to carrying out the scope defined in the grant application and award for a period of three years.
Strategic Plan Goal:
This item aligns with Strategic Plan Goal A, Financial Sustainability by controlling costs and increasing revenue through the acceptance of the SCAP grant. 4 0
5 4
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 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 the acquisition, the City/RDA became aware of site contamination and since that time has completed extensive site assessment and remediation work and reporting to various federal and state environmental agencies. 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 or “CHAS”) as a part of the RDA dissolution process since it had been purchased for mixed use/affordable housing purposes.
Through Phase 1 and Phase II assessment reports, conducted in early 2009, the RDA learned that high levels of Perchloroethylene (“PCE”) and Trichloroethylene (“TCE”) were found on the Site. These chemicals were a common solvent used in dry cleaning, among other uses, to dissolve grease, oil and other stains but was later discovered to be potentially harmful to humans.
In 2012, the oversight of site remediation was transferred from the Environmental Protection Agency to the Lahontan Regional Water Quality Control Board (“LRWQCB”).
The following remediation efforts were completed under the LRWQCB’s oversight and direction:
•2012-2013 – Preparation of Groundwater Remediation Workplan to determine extent of chemical impact to groundwater and remediation of groundwater impacts, more commonly referred to as “the groundwater plume.” •2014 – Work conducted consisting of advancing four cone-penetration test soundings and four soil borings to determine the geological properties of the soils. These borings were subsequently converted to groundwater monitoring wells.
•2015 – Groundwater Investigation Report was completed, and it was reported that PCE and TCE concentrations in the wells exceeded the California and U.S.
Maximum Contaminant Levels. As such, quarterly groundwater monitoring and sampling started on the initial four groundwater monitoring wells and continues to date with quarterly reports submitted to the LRWQCB. •2015 – LRWQCB requested an additional assessment in an adjacent area referred to as the “Tailor Shop” that was also owned and operated by the Former Nuway Cleaners owners.
•2016 – Seven new soil borings were subsequently advanced in the vicinity of the Tailor Shop and soil gas probes were installed at various depths below the ground surface. Gas samples were analyzed for Volatile Organic Compounds (“VOCs”). The samples indicated that elevated concentrations of PCE were also detected within the footprint of the former dry cleaner building. In addition, PCE concentrations were also detected in the soil gas indicating an increasing 4 0
5 4
trend with depth suggesting potential off-gassing from impacted groundwater beneath the Site.
•In 2016, staff worked with its environmental consultant, Ninyo & Moore, and identified the California State Water Resources Control Board’s (“CSWRCB”) SCAP grant as a potential funding source to help with assessment and remediation of groundwater contamination from the Site. •In 2018, the City was advised of the award of grant funds from the CSWRCB in the amount of $1,457,598 over a three-year term. On October 16, 2018, the City adopted Resolution 18-086 accepting the grant funds in the amount of $1,457,598.
•The City entered into a SCAP Grant Agreement in August 2019 to continue the assessment and implementation of groundwater clean-up and remediation to remove PCE from groundwater found within and in the vicinity of the Site. •The SCAP Grant ended in March 2024 and the City was successful in carrying out an extensive amount of remediation work through State grant funds. Below is a summary highlighting the most significant work and findings:
In December 2019, a Soil Vapor Extraction (“SVE”) Work Plan was completed to assess the soil gas concentrations in the vicinity of the Site.
The SVE Work Plan has been subsequently updated, revised, and amended to include the installation of new soil gas probes, near and on the Site, install and operate an SVE system (as of June 2020) which would extract soil vapor and mitigate VOCs, to connect the SVE system to a monitoring well and to report quarterly monitoring and reporting. As of the last reporting period and monitoring event conducted by Ninyo & Moore, VOCs continued to be removed from the subsurface soils consisting mostly of PCE.
Also in December 2019, an additional Groundwater Assessment Work Plan was prepared to delineate the extent of PCE contamination in the groundwater. Pursuant to this work plan, in April 2020, five additional groundwater monitoring wells, one on-site and four off-site, were installed. In August 2020, an In-Situ Chemical Oxidation (“ISCO”) Pilot Test Work Plan was prepared by the City’s environmental consultant, Ninyo & Moore, under the oversight and recommendation of the LRWQCB. The purpose of this pilot program was to evaluate the feasibility of using potassium permanganate, a chemical oxidant, as a way to remediate PCE in the soil and shallow groundwater onsite and in the vicinity of the Site. The process involved introducing the chemical oxidant by mixing and strategically injecting into a specific well, having the highest concentration of PCE, into the subsurface to transform the contaminants in soil or groundwater into less harmful chemicals. As this process was demonstrated to be successful, staff worked with Ninyo & Moore and LRWQCB to carry out a full ISCO injection in 2023 specifically targeting the area with the elevated PCE concentrations.
Subsequently, quarterly groundwater monitoring has been conducted at the Site to evaluate the efficacy of the ISCO remediation and to monitor groundwater PCE levels and other chemicals per the LRWQCB’s permit. 4 0
5 4
Results of continued groundwater monitoring have indicated the presence of a “hotspot” within the footprint of the Tailor Shop that needs further treatment.
Further, the LRWQCB has mandated continued monitoring of the groundwater and soil vapor concentrations in the vicinity of the Site to evaluate closure and destruction of the groundwater and soil vapor wells.
All requests related to the 2019 SCAP Grant have been reimbursed by the CSWRCB totaling $1,253,916, respectively. The amount remaining, totaling $203,682, was released back to the City’s General Fund as the grant expired, and the term could not be extended.
Since the SCAP Grant, the Site has continued to reduce the contamination of PCE and TCE in the groundwater at the Site. At the beginning of the project, the levels were significantly higher than the allowable concentration levels for PCE and TCE in the Site groundwater monitoring wells. Currently, all wells are reporting non-detect except one monitoring point.
Discussion:
As the original SCAP grant expired in March 2024, and the remediation at the Property has not been completed, in July 2023, staff began discussions with staff from the CSWRCB and LRWQCB on the possibility of obtaining a new SCAP grant to complete and close out the remediation of the Property. The City, with the assistance of its environmental consultant, proposed the continued funding by the CSWRCB to fund the remaining tasks to close out the Site. Due to the Site’s significant importance to the LRWQCB and CSWRCB, the City’s application was prioritized with a grant award of $483,353.
In February 2025, the CSWRCB contacted City staff to schedule a Joint Execution Team (“JET”) grant kick-off meeting to review the Grant Agreement language, scope of work expectations and timelines. Following this meeting, the State representatives indicated the need for the City to adopt a resolution so they can move forward with finalizing a grant agreement. As such, staff has prepared Resolution 25-019 and Resolution No. 25-020.
If approved, Resolution No. 25-019 allows the City to enter into a SCAP Grant Agreement with the CSWRCB, accepting the grant award in the amount of $483,353 for the purposes of remediation at the Former Nuway Dry Cleaners Site, authorizes the City Manager to execute the Grant Agreement and any related amendments, subject to minor non- substantive changes, and designates the Deputy City Manager to submit any and all documents related to the request for reimbursement.
Resolution No. 25-020 amends the annual budget for Fiscal Year 2024-2025 and approves additional revenue and expenditures in the amount of $483,353. It is important to note that the acceptance of this grant does not require a match of funds by the City.
While the expenditures will be carried by the City, the CSWRCB has committed to reimbursing the City for the work identified in the City’s grant application.
Staff remains available for any questions you may have. 4 0
5 4
Attachments: A. Resolution No. 25-019
B. Resolution No. 25-020
C. SCAP Grant Agreement
D. Map of Property