Memorandum

City of Lawrence

Public Works

TO:	Dave L. Corliss, City Manager
FROM:	Matt Bond, Stormwater Engineer/Farmland Project Manager
CC:	Charles Soules, Public Works Director Mark Thiel, Assistant Public Works Director David Cronin, City Engineer
DATE:	November 21, 2012
RE:	Long Term Care Agreement (LTCA) - Environmental Use Control (EUC) Application  - former Farmland Industries Nitrogen Plant

Please include the following item on the City Commission agenda for consideration at the December 4, 2012 meeting:

Long Term Care Agreement (LTCA).  In order to finalize the processing of the City's Environmental Use Control (EUC) application the Kansas Department of Health & Environment (KDHE) has determined a Long-Term Care Agreement is necessary prior to finalizing the EUC's for the former Farmland Industries Nitrogen Plant site.

Project History.  With the acquisition of the property on September 29, 2010 the City was bound to the terms of Consent Order (Case No. 10-E-94 BER).  This Consent Order (CO) established the conditions under which the City agreed to complete the required remediation of the facility proper.  The CO also states that KDHE has general jurisdiction of matters involving hazardous substance and hazardous substance cleanups.  More specifically the CO states that the City shall enter the property into an Environmental Use Control Agreement pursuant to K.S.A. 65-1,221 et seq. that includes all restrictions as set forth by KDHE.

Project Status.  The EUC application has been submitted to KDHE for processing and is currently awaiting the execution of a Long-Term Care Agreement to enable the property to be admitted into the Environment Use Control Program.  Examples of some of the EUC restrictions include: prohibition of residential development and the prohibition of domestic water wells.

Project Details.  The LTCA agreement is for 30 years of oversight and inspection by KDHE.  A onetime lump sum cost of $50,345.07 is associated with the LTCA.  This cost would cover management activities such as oversight, site inspections and report reviews.

Project Funding.  The funding source for the $50,345.07 for the necessary for the EUCA would be financed with the remediation funds obtained with the acquisition of the former Farmland property.

Action Request.  The Public Works staff request approval for the City Commission to authorize the City Manager to sign the Long Term Care Agreement.