Report Prepared by: Amanda Williams, Economic Development Associate
Title
SUBJECT: Approval of the Second Amendment to the Agreement for Professional Services with Provost & Pritchard Consulting Group for Environmental Consulting Services to the City of Merced as the Successor Agency
REPORT IN BRIEF
Considers approving the Second Amendment to the Agreement for Professional Services with Provost & Pritchard Consulting Group, extending the contract term to June 30, 2026.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Second Amendment to the Agreement for Professional Services with Provost & Pritchard to perform the additional work required, include the additional compensation of eight hundred twenty-eight thousand and two hundred Dollars ($828,200.00), and extending the contract term to align with the R Street Remediation Project Plan as detailed through the Memorandum and Project Update (Attachment 1); and,
B. Authorizing the City Manager or designee to execute the agreements and any necessary documents.
Body
ALTERNATIVES
1. Approve the agreement, as recommend by Staff; or,
2. Deny; or,
3. Refer to Staff for reconsideration of specific items.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2025/2026 ROPS Schedule. (Attachment 2).
DISCUSSION
In July 2023 the City of Merced elected to serve as the Successor Agency and officially transitioned into the Successor Agency September 2023. The Successor Agency has several requirements mandated by AB x1 26 (the dissolution of redevelopment agencies) that call for outside expertise. Provost & Pritchard Consulting Group has been working with the Successor Agency Legal Counsel when a Designated Local Authority (DLA) was created by the state of California in 2012. Staff would like Provost & Pritchard to continue their services providing remediation and environmental consulting services to the City of Merced as the Successor Agency.
R Street Remediation Project
The Redevelopment Agency agreed to remediate underground contamination adjacent to the Costco site under the Costco Disposition and Development Agreement. Cleanup of the gasoline plume has proceeded for several years as directed by the Regional Water Quality Control Board (RWQCB). In 2006, the RWQCB issued a Cleanup and Abatement Order for the site as a co-mingled groundwater plume. In 2008, the responsible parties entered a contract with the Redevelopment Agency to prevent contamination from impacting groundwater in and around the Cities well and work to clean up the site. In 2008 and 2009 injection treatment systems were installed and have been successful in reducing groundwater contamination.
Provost & Pritchard will continue performing TPH cleanup at the corner of R Street & W 15th Street, which is currently leased by Costco. The consultant will be responsible for responding to a RWQCB requirements and meet compliance.
Funding
The Consulting Services provided by Provost & Pritchard would be covered by the Redevelopment Property Tax Trust Funds (RPTTF) received by the Successor Agency from the California Department of Finance, thus being no financial cost to the City for their work under this contract.
IMPACT ON CITY RESOURCES
No City of Merced General Fund dollars are used.
ATTACHMENTS
1. Second Amendment to Service Agreement
2. 2025/2026 ROPS Schedule
3. Approved and Executed Professional Services Agreement