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HomeMy WebLinkAbout2005-25842 Reso RESOLUTION NO. 2005-25842 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION OF FUNDS FROM THE RESORT TAX AND GULF BREEZE INTEREST TO COMPLETE REMEDIATION WORK AT THE BAYSHORE (MIAMI BEACH GOLF CLUB) AND NORMANDY SHORES GOLF COURSE FOR FISCAL YEAR 2004/2005, IN THE AMOUNT OF $667,582. WHEREAS, the soil and groundwater beneath the Bayshore (Miami Beach Gulf Club) and Normandy Shores Golf Course maintenance yards were determined to be contaminated with unacceptable levels of arsenic; and WHEREAS, the Bayshore (Miami Beach Golf Club) and Normandy Shores Golf Course contamination was the result of the improper discharge of unacceptable agricultural wastes; and WHEREAS, the Remedial Action Plan for both facilities has since been completed and the project is in its final stages of monitoring; and WHEREAS, due to unforeseen circumstances, such as an abandoned fuel tank, repair to a sewer line, and additional requirements from DERM, an additional $667,582 is required to complete the remediation work at the Bayshore (Miami Beach Golf Club) and Normandy Shores Golf Course. NOW THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby authorize the appropriation of funds from the Resort Tax and Gulf Breeze Interest to complete remediation work at the Bayshore (Miami Beach Golf Club) and Normandy Shores Golf Course for Fiscal Year 2004/2005, in the amount of $667,582. PA~SED ANDADOPTED this 16th ATTEST: ' , ~( PtttcL- CITY CLERK T:\AGENDA\2005\Mar1605\Regular\Bayshore & Normandy Enviro resolution.doc APPROVED AS TO FORM & LANGUAGE & FOR exECUTION j// III/hll:... ~"'114 S ~DaN CITY OF MIAMI BEACH COMMISSION ITEM SUMMARY m Condensed Title: A Resolution authorizing the appropriation of funds from the Resort Tax and Gulf Breeze Interest to complete remediation work at the Bayshore (Miami Beach Golf Club) and Normandy Shores Golf Course for Fiscal Year 2004/2005 in the amount of $667,582. Issue: Shall the Mayor and City Commission appropriate $667,582 from the Resort Tax and Gulf Breeze Interest to pay for remediation work at the Bayshore and Normandy Golf Courses? Item Summary/Recommendation: The soil and groundwater beneath the Bayshore (Miami Beach Golf Club) and Normandy Shores Golf Course Maintenance Yards were determined to be contaminated with unacceptable levels of arsenic; resulting from the improper discharge and improper handling of agricultural chemical products by the maintenance contractor, American Golf Corporation. Due to unforeseen circumstances, such as an abandoned fuel tank, repair to a sewer line, and additional remediation requirements from DERM, an additional $667,582 is required to complete the remediation and unforeseen work at the Bayshore and Normandy Shores Golf Courses. On January 27, 2005 this item was discussed at the Finance and Citywide Projects Committee meeting as it related to an item for financing a change order settlement and other construction costs for the Miami Beach Golf Course Club House project. At the time the $1,081,286 mediated settlement item was discussed, the Committee was also made aware of additional funding requirements to pay for unforeseen conditions encountered during remediation work preceding the construction ofthe Bayshore and Normandy Shores Golf Course Maintenance Yards. At the time of the meeting no funding source had yet been identified for the $667,582 in change orders. Since that meeting, the Finance Department has indicated that interest earned from the Gulf Breeze Loan and the Resort Tax can be used to pay the expenses. The Administration recommends approval. Advisory Board Recommendation: I N/A Financial Information: Finance Dept. 667,582 Source of Funds: D Ci Clerk's Office Le islative Trackin Bob Halfhill- Public Works x7080; Jordanna Rubin - Environmental Division x6121 T:\AGENDA\2005\Mar1605\Regular\Bayshore and Normandy Enviro Summary.doc AGENDA ITEM DATE G7k. -- 3-/~-Oj CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 www.miamibeachfl.gov COMMISSION MEMORANDUM To: Mayor David Dermer and Date: March 16,2005 Members of the City com;riSSion Jorge M. Gonzalez ~ City Manager A RESOLUTION F THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE APPROPRIATION OF FUNDS FROM THE RESORT TAX AND GULF BREEZE INTEREST TO COMPLETE REMEDIATION WORK FOR THE BAYSHORE (MIAMI BEACH GOLF CLUB) AND NORMANDY SHORES GOLF COURSE FOR FISCAL YEAR 2004/2005 IN THE AMOUNT OF $667,582. ADMINISTRATION RECOMMENDATION From: Subject: Adopt the Resolution. ANAL YSIS The soil and groundwater beneath the Bayshore (Miami Beach Golf Club) and Normandy Shores Golf Course Maintenance Yards were determined to be contaminated with unacceptable levels of arsenic; which was the result of the improper handling of agricultural chemical products at the facility. In 1991, during the performance of a routine compliance inspection by the Dade-County Department of Environmental Resources Management (DERM), evidence of industrial and agricultural waste contamination was discovered at the Bayshore Golf Course Maintenance Yard. DERM cited American Golf Corporation (AGC), then management company for Bayshore Golf Course, with an initial notice of violation for discharge of industrial waste at the Bayshore Maintenance Yard. From 1991 until February 1995, DERM repeatedly ordered American Golf to institute the appropriate corrective actions. Because of AGe's continued failure to properly respond, DERM initiated enforcement actions. DERM's enforcement actions included the issuance of a Final Notice to Court Action directly to the property owner, the City. Upon learning of the situation, the City immediately conducted an investigation into the actions of AGC, implemented emergency actions to remove large quantities of improperly stored agricultural wastes from the site, and hired an environmental contractor to implement the required corrective actions. As a result of the discovery of extensive agricultural waste contamination at the Bayshore Golf Course Maintenance Yard, the subsequent enforcement actions taken by DERM, and the resulting dispute that has developed between the City and the City's former golf course operator, American Golf Corporation, the City engaged the environmental engineering firm of Metcalf & Eddy to initiate an assessment of the Normandy Shores Golf Course maintenance yard to determine if the soil and groundwater in the area were also contaminated. The results of the initial phase of assessment did reveal that the soil and groundwater beneath the maintenance yard were contaminated with arsenic and other agricultural chemicals. On December 22,2004, an amended complaint was filed and served to the American Golf Corporation with a demand of $1,135,331.40 to reclaim damages to the Bayshore Golf Course. AGC has been granted additional time to review this demand since the company was recently sold and is under new ownership. AGC has until April 22, 2005 to respond to this demand letter. While the City has made a request for reimbursement of the required clean up expenses, it was necessary for the City to undertake and complete remediation for both facilities as the property owner. While the Remedial Action Plan (RAP) was being executed for both facilities, unforeseen conditions were also found that required immediate action, without an option to stop work. The abandoned tank and sewer line repairs required for the sewer line had to be completed to get Miami-Dade DERM certification of RAP completion. The RAP for both facilities has been completed and the remediation projects are in their final stages of monitoring. The following is a list of unfunded remediation work or other unforeseen work that has been completed: BA YSHORE Invoice Amount Work 81,300.00 Material Testing; ERP permit; environmental services 4,046.60 Arsenic analysis of soil and wood from golf course. 180,000.00 Asbestos abatement; project monitoring; project administration 17,547.15 Medley Landfill, removal of hazardous materials 24,230.00 Removal of hazardous materials from Bayshore. 3,796.25 Monitoring at Bayshore. Require by DERM. Total Bavshore $310.920.00 To be funded by Gulf Breeze Interest NORMANDY Invoice Amount Work 141,000.00 Construction of drainage system; environmental services 80,000.00 Repair of sewer line. Not correctly marked by PW. 121,347.00 Professional services at Normandy. 3,715.00 Monitoring at Normandy. Required by DERM. 10,600.00 Abandoned fuel tank Total Normandv: $356.662.00 To be funded by the Resort Tax TOTAL BA YSHORE & NORMANDY $667,582.00 On January 27, 2005 this item was discussed at the Finance and Citywide Projects Committee meeting as it related to an item for financing a change order settlement and other construction costs for the Miami Beach Golf Course Club House project. At the time the $1,081,286 mediated settlement item was discussed, the Committee was also made aware of additional funding requirements to pay for unforeseen conditions encountered . during remediation work preceding the construction of the Bayshore and Normandy Golf Course Maintenance Yards. At the time of the meeting no funding source had yet been identified for the $667,582 in change orders so action was not requested of the Commission. The Finance Department has since indicated that funds are available from interest earned from the Gulf Breeze Loan (the original funding source for the golf course construction)and Resort Tax for the Golf Course expenses. The Administration recommends approval. JG/RM/FB/RH/JZR T:\AGENDA\2005\Mar1605\Regular\Bayshore & Nonnandy Enviro memo.doc