Westminster City Council
SUBJECT
Title
Transfer of Funds for the Fuel Tank Remediation Project at the Corporation Yard in the amount of $250,000 to be Reimbursed by the California State Water Resources Control Board.
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From: Jake Ngo, Public Works Director
Requested by: Administration
Prepared by: Scott Maestrejuan, Garage Superintendent
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RECOMMENDED ACTION
Recommendation
Transfer funds from the Equipment Replacement Account, Account Number 58000-91050, to the Remediation Project Account, Account Number 58002-589301, in the amount of $250,000.
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BACKGROUND
In 1993, it was found that a city-owned underground fuel tank, which was installed in the 1950’s or 1960’s, was leaking fuel into the soil. The fuel tank was located on the east side of the Corporation Yard, located at 14381 Olive Street. The City promptly removed the leaking tank and began remediation for the fuel tank. Remediation involves the assessment, removal, and cleanup of leaking underground storage tanks (USTs) and contaminated soil/groundwater. This process is overseen by the local Certified Unified Program Agency (CUPA), California State Water Resources Control Board (State Water Board), and the Orange County Health Department.
Remediation Items include:
• Mandatory Reporting and Cleanup - Leaks must be reported to the local CUPA and responsible parties must perform investigation and cleanup (corrective action).
• UST Removal and Decommissioning - The process typically includes:
o Assessment: Site investigation to identify contamination.
o Removal: Extracting, cleaning and disposing the tank, and extracting, cleaning, and disposing of contaminated soil.
o Abandoned Tanks: If removal is not possible, tanks must be filled with inert material like sand or slurry.
• Remediation Methods:
o Soil Removal/Treatment: Removing contaminated dirt and taking it to a facility.
o In-Situ Treatment: Treating soil and groundwater in place (e.g., vapor extraction).
• Regulatory Oversight - Regional Water Boards and local agencies oversee the progress to ensure cleanup meets safety standards.
The State of California provides funding for remediation of leaking USTs primarily through the Underground Storage Tank Cleanup Fund (USTCF), which helps owners, including local agencies, pay for cleanup costs. Claimants must submit a claim to the Regional Water Quality Control Board and meet strict eligibility criteria. The State agreed to reimburse the City for remediation of the site up to $1.5 million dollars. Thus far, the State has reimbursed the City $1,152,831. To assist with the remediation, the City has contracted with Telluris, Inc., an environmental consulting firm specializing in soil and groundwater investigation and remediation. The latest agreement with Telluris, Inc. was executed in 2021 for a five-year term. The state-reimbursed funds, as well as the proposed budget transfer, will be used to replenish the funds that have been used to pay for the work performed by Telluris, Inc.
Part of the remediation process is installing monitoring wells to detect contamination (e.g., fuel, chemicals) and monitor the success of cleanup efforts at contaminated sites. A monitoring well is a small-diameter, cased, and sealed pipe inserted into the ground to provide access to groundwater for sampling, water quality analysis, and level measurements. The City installed 21 monitoring wells in the affected area. The City also installed a groundwater pump attached to wells to treat groundwater and return it to the soil free of contaminants. The system has treated over 1.6 million gallons of groundwater.
On August 5, 2025, after years of testing and purifying groundwater, the Orange County Health Care Agency and State Water Board have considered the remediation project at the Corporation Yard eligible for case closure. The case closure will involve abandoning all monitoring wells per city standards, removing the pump system and all hazardous materials associated with the project from the Corporation Yard.
FISCAL IMPACT
Transfer $250,000 from Account Number 58000-91050, “Equipment Replacement,” to Account Number 58002-589301, “Remediation Project.” The City will be reimbursed by the California State Water Resources Control Board.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
The proposed transferred funds will be used to replenish the funds that have been used to pay for the work performed by Telluris, Inc., and close out the remediation project at the Corporation Yard.
ATTACHMENTS
1. Agreement 2021-08
REVIEWED BY
Erin Backs, Finance Director
City Attorney’s Office
Christine Cordon, City Manager