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Of Report Na. VMNEW N N Agenda Section (1Q the city that works for you Report Date Council Meeting Date 0-0q`07 REQUEST FOR COUNCIL CONSIDI ITEM DESCRIPTION: CLOSE ALLIANT TECH FUND 207 FOR WELL 13 PGRS DEPARTMENT HEAD'S APPROVAL: Grant M. Wyffels, P.E., Director of Public Works w/ CITY MANAGER'S APPROVAL: No comments to su lement this re ort Comments attached Recommendation: 1) Close fund 207 Water Treatment Pla 2 2) Send Alliant Techsystems Inc. a check for fund 207 Water Treatment Plant #2 balance of $11,984.61. Legislative History: In 1984 the City of New Brighton files lawsuit against the United States Army and other defendants manufacturing at Twin Cities Army Ammunition Plant (TCAAP) including Honeywell for contamination of our drinking water supply. Alliant Techsystems Inc. eventually buys out Honeywell. Both the US Army and Honeywell are found to have caused the contamination. The US Environmental Protection Agency and US Army execute a Record of Decision (ROD) for operable unit 3 (OU3) in September 1992. The ROD establishes location of OU3 as the "south plume", clarifies that a new Plume Groundwater Recovery System (PGRS) consist of a new Well 13 and Water Treatment Plant #2 will be the remedy for OU3 and supply potable water to the City of New Brighton. No detection of contamination has been found in Well 13 after June 1999. EPA amended the OU3 ROD which eliminates the PGRS as a component of the OU3 remedy in August of 2006. The City of New Brighton has not pump water from the PGRS since 2003. Financial Impact: Fund 207 Water Treatment Plant #2 would no longer be available for future actions against Alliant Tech Systems, future remediation of OU3 site (south plume) or water supply capacity issues. See attach timeline for past water supply capacity issues. Explanation: The purpose of this item is to close out fund 207. This fund was used to finance remediation of the OU3 site and meet water supply capacity needs of New Brighton with the operation of the PGRS. PGRS was Water Treatment Plant #2 located at 680 St' Street NW and operated from May 1994 till August 2003. It has been dismantled and there is no current need for either OU3 remediation or water supply capacity. Most of the capacity of the PGRS system has been replaced by capacity enhancement modifications done to the NBCGRS between 2004 and 2006. If required, the City can still use fund 206 (Army fund) for future additional water supply capacity issues. Costs and Funding: As per Agreement between the City of New Brighton and Alliant Techsystems Inc. for the Operation, Maintenance and Repair of the PGRS sign on April 30, 1993 the City is to refund Alliant Techsystems Inc. any unused balance once the PGRS has been dismantled. Fund 207 Water Treatment Plant #2 balance is $11,984.61. Kerry Th ne, Civil Engineer I I:\COUNCIL\REPORTS\2007\Enginming\Close PGRS fund 207.doc