BOARD AGENDA: 1/25/11
ITEM: 7.1
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JOSE
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MEMORANDUM
EXECUTIVE DIRECTOR
I
SUBJECT:
SEE BELOW
DATE:
JANUARY 19,2010
SUBJECT: NINTH AMENDMENT TO THE AGREEMENT WITH
AECOM, INC. FOR ENVIRONMENTAL MONITORING AND
REPORTING SERVICES FOR THE ADOBE SYSTEMS PHASE
I1 SITE
RECOMMENDATION
It is recommended that the Redevelopment Agency Board approve the ninth
amendment to the agreement with AECOM (formerly Earth Tech, Inc.), in the
amount of $56,036 for a total agreement amount not to exceed $502,489, for
ongoing environmental monitoring and reporting services for the Adobe Systems
Phase I1 sites at 345 Park Avenue and 151 Almaden Boulevard, and extending the
term of the agreement by one year to February 28,2012.
OUTCOME
Approval will enable the Redevelopment Agency to continue the environmental
monitoring obligations required by the Disposition and Development Agreement
for the Adobe Headquarters project.
BACKGROUND
On September 22, 1994, the Redevelopment Agency and Adobe Systems Inc.,
("Developer" and "Adobe") entered into a Disposition and Development
Agreement (DDA) for the development of Adobe's corporate headquarters. Under
the terms of the DDA, the Agency purchased the land for the development of the
corporate headquarters. The Agency retained ownership of the land, which was
leased by Adobe. The DDA obligates the Agency to pay for all environmental
review and mitigation costs, including on-going environmental monitoring and
reporting.
Redevelopment Agency Board
AECOM NINTH AMENDMENT
Page 2
January 19,2010
In July 2008, Adobe purchased the land at the Tower I-Phase I Site at 345 Park
Avenue. In June 2010 Adobe purchased the remaining land for Towers 1 and 2 in
Phase I1 at 321 Park Ave. and 151 Almaden Blvd. Due to the pre-existinghazardous materials at 345 Park Avenue, the Agency continues to be responsible
for all environmental review and mitigation costs, and for costs associated with
on-going environmental monitoring and reporting.
To prevent flooding in Level I11 of the parking garages, dewatering and discharge
systems are installed in the basement floor slabs. Prior to discharge into a storm
drain and then into the river, the groundwater fiom the dewatering systems of both
towers must be treated. Under the National Pollutant Discharge Elimination
System (NPDES) permits issued by the Regional Water Quality Control Board
ongoing environmental monitoring
(RWQCB), the ~ g e n isc obligated
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to
and revortine
" services for the Adobe Svstems site. This environmental monitoring
and reporting will continue until the RWQCB determines that contaminant levels
are reduced to an acceptable level on both tower sites. At that time the Agency's
obligations will be completed. However, if Adobe desires to continue pumping
water after the groundwater has been verified as meeting RWQCB standards, the
permit for pumping the groundwater would be transferred to Adobe and all permit
fees and costs would revert to Adobe. As long as groundwater is discharged into
the Guadalupe River, an NPDES permit is required.
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On December 3,2003, the Agency executed its initial agreement with AECOM, in
the amount of $58,720, for environmental monitoring, testing and reporting
services for the Adobe Sites located at 345 Park Avenue and 151 Almaden
Boulevard. The seventh amendment to continue these services was approved by
the Agency Board on September 23,2008, in the amount of $150,000, increasing
the total contract amount to $466,453, and extending the term for two years. The
eighth amendment was executed by the Executive Director on August 10,2010,
extending the term to February 28,201 1, at no additional cost.
ANALYSIS
Under the environmental indemnification agreement in the DDA, the Agency is
obligated to pay for all environmental review and mitigation costs, including
ongoing environmental monitoring and reporting at the Adobe Sites. AECOM has
worked on the Adobe Phase I1 Project since November 1994. AECOM designed
the ground water treatment system at the Adobe Sites and has excellent knowledge
of the ground water treatment system and the environmental history at the Adobe
sites. Due to its experience with the ground water treatment system at the Adobe
sites, AECOM is best suited to continue the environmental monitoring and the
extensive reporting required by the RWQCB.
AECOM 9" Amendment
Redevelopment Agency Board
AECOM NINTH AMENDMENT
Page 3
January 19,2010
AECOM submitted a letter to the RWQCB in August 2008, on behalf of the
Redevelopment Agency, proposing that the RWQCB consider a reduction in the
groundwater monitoring frequency at Tower I and Tower 11. This proposal was
the result of a thorough evaluation of the historical and current groundwater
sampling data that AECOM has collected since January 2004 under the NPDES
permit requirements.
Regardless of a reduction in the frequency of groundwater sampling for the
contaminates noted above, the Tower I and Tower I1 Treatment Systems would
continue to be operated and the self-monitoringreports would continue to be
prepared and submitted on a quarterly basis; and an annual report covering the
previous calendar year will be submitted by January 30 of each year, as required
by NPDES permits.
Redevelopment Agency staff and AECOM met with the RWQCB to discuss the
ongoing NPDES permit requirements at the Adobe Sites and to discuss potential
changes in monitoring requirements to reflect the reduced amounts of
contaminants being found in the groundwater. However, because of the RWQCB
requirements, the RWQCB was not able to make any changes in the hequency of
groundwater monitoring or in the documentation of findings under the permits.
Therefore, the Redevelopment Agency needs to continue the ongoing monitoring
of the sites as currently permitted by the RWQCB until such time in the future that
both sites meet groundwater standards established by the RWQCB.
On November 2,2010, funds were placed in the revised FY 2010-1 1
Redevelopment Agency budget for the continuation of the Adobe groundwater
monitoring and reporting requirements. The proposed ninth amendment
recommends extending the term of the agreement by one year and amending the
scope of services to reflect the environmental monitoring and reporting work in
upcoming months on a time and materials basis, and conforms to revisions in
regulatory requirements. A contract addition of $56,036 is proposed for one
additional year of services for a total agreement amount not to exceed $502,489.
Agency staff negotiated with AECOM to have lower hourly charge rates for these
services and the rates are now at 2007 levels.
EVALUATION AND FOLLOW-UP
The consultant will continue monitoring the groundwater during the term of the
agreement to detect changes in the water quality and compare it to the standards
required by the RWQCB.
AECOM 9" Amehdment
Page 4
Redevelopment Agency Board
AECOM NINTH AMENDMENT
January 19,2010
PUBLIC OUTREACHJINTEREST
The proposed action does not meet any of the criteria noted below for added
outreach efforts. This staff report was posted on the Agency's website and made
available for public review in the Agency's public lobby area.
Criterion 1: Requires Council action on the use of public hnds equal to $1
million or =eater.
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Criterion 2: Adoption of a new or revised policy that may have
implications for public health, safety, quality of life, or financial/economic
vitality of the City.
Criterion 3: Consideration of proposed changes to service delivery,
programs, or staffing that may have impacts to community services and have
been identified by staff, the Board or Council, or a community group that
requires special outreach.
COORDINATION
This action has been coordinated with the Agency's General Counsel.
FISCAL IMPACT
Funding for the proposed amendment in the amount of $56,036 is in the Agency's
FY 2010-1 1 Adopted Capital Budget, in the Adobe: Water Monitoring project line
in the Park Center Redevelopment Area.
&
Downtown Strategy EIR, Resolution No. 72767.
Y S. MAVROGENES
Executive Director
AECOM 9" Amendment