HomeMy WebLinkAbout2003-02-25 - AGENDA REPORTS - WHITTAKER BERMITE ADDT'L FUNDS (2)CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
City Manager Approval{
1
Item to be presented by: Travis Lange
DATE: February 25, 2003
SUBJECT: ADDITIONAL FUNDS FOR WHITTAKER-BERMITE STRATEGIC
PLANNING
DEPARTMENT: Planning and Building Services
RECOMMENDED ACTION
Approve and authorize the transfer of $200,000 from the City Council Contingency Fund,
Account No. 2250-7401, to the Planning and Building Services Administration's
Professional Services Account No. 3110-8110 to continue the Whittaker-Bermite
Remediation and Reuse strategic planning process.
BACKGROUND
On June 11, 2002, the City Council directed staff to proceed with the development of
strategies regarding various aspects of the Whittaker-Bermite property. The City Council
established a subcommittee of its members, Mayor Pro Tem Kellar and Councilmember
Ferry, to participate with staff and consultants through the process. The City Council
acknowledged the need for and directed the subcommittee and staff to acquire specific
expertise in legal, perchlorate and unexploded ordnance issues. Cox, Castle, & Nicholson (a
legal firm with extensive experience in remediation projects) and UXB International (an
unexploded ordinance and chemical remediation consultant) have been retained as the
City's legal and technical experts to address the Whittaker-Bermite property. In addition,
legal counsel from the City Attorney's Office has been assigned to assist and advise
regarding potential litigation issues and overall strategy.
A City Council Study Session was held on October 1, 2002, to allow for an open public
discussion of the issues and strategy team findings and recommendations. At these
meetings, the City Council provided direction to the strategy team to pursue a multi -
pronged strategy which includes a series of action items that focus on the clean-up of soil
and groundwater. Additional research, agency coordination, and strategy development was
needed to implement the list of action items.
On October 8, 2002 the City Council authorized the transfer of $200,000 from Council
Contingency to the Planning and Building Services Administration's Professional Services
Account. Expenditures through February 13, 2003 equaled $207,357.38. Therefore a tota
Agenda Item :_._
of $92,642.62 was leftover as of February 13, 2003 from the $300,000 that was designated
for this effort.
Some of these resources have been used to complete the due diligence of Cherokee
Investment Partners (a potential buyer of the Whittaker-Bermite property). Cherokee's
own due diligence period to investigate the merits of any deal to purchase the property has
been extended another 60 days from the original completion date of approximately
February 8, 2003 but is quickly coming to an end. This is a crucial time in the City's effort
to see the site remediated and reused. It is because of this urgency that the Council Sub -
Committee authorized the hiring of two new consultants, Komex International (experts
regarding perchlorates) and Metropolitan Development (financial analysis experts). This
high level of activity requires additional funds.
Future meetings include a City Council Closed Session on March 25, 2003, a City Council
Closed Session on April 8, 2003, a City Council Study Session on April 15, 2003, and a City
Council Meeting on April 22, 2003.
ALTERNATIVE ACTIONS
1. Do not appropriate the funds for additional work to be conducted by the City's
technical and legal expertise regarding the Whittaker-Bermite Remediation & Reuse
project.
2. Other action as determined by the Council
FISCAL IMPACT
As part of the FY 02/03 budget process, $100,000 was appropriated for legal and technical
expertise assistance related to the Whittaker-Bermite property and an additional $200,000
was appropriated on October 8, 2002. Additional funding will be used to retain the legal
and technical consultants and continue the effort. The additional funds bring the total
commitment to $500,000 for this project.
There is a current balance of $1,445,421 available in Council Contingency. Approval of this
request will leave a remaining balance of $1,245,421.
ATTACHMENTS
None.
JJL:TLL:lep
S:\PBS\TL\WB\WBagr02-25-03.doc