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NWQ Update Memo June 5, 2009 Page 3 site landfill. Assuming that the cleanup work at the propane parcel is conducted in 2009 as part of Veit's on-going Miller Dump Closure project, it is estimated that the cleanup cost will be roughly $90,000 to $120,000. The cost will depend on the amount of material that is encountered during excavations in the former railroad right-of-way. The good news is that the City still has $62,600 in unspent funds from the 2006 Met Council TBRA grant for the western portion of the NW Quadrant. However, these funds must be spent by no later than December 31, 2009. The strategy would be to use Veit Companies to carryout the work given the favorable unit pricing for removing contaminated soils. Again, if there is interest by Council, staff would present this item for formal approval later this summer. The project could proceed fairly quickly because the City's Response Action (RAP) has already been approved by the MPCA. Ferrellgas Clean -Up The last item for discussion on Tuesday concerns the clean-up of the former Ferrellgas property. Two environmental concerns were identified during Belair's demolition work at the propane parcel in 2008 which will need to be addressed prior to redevelopment of the property. An area of shallow ash -containing debris was encountered below gravel parking surface and a deeper area of petroleum contaminated soil was encountered in the central portion of the property. The two areas include an estimated 3,000 cubic yards of materials and are shown on the attached figure. In 2007, a stormwater infiltration area was constructed on the portion of the site located north of the impacted areas and the rest of the site is currently vacant. There are two approaches that could be considered to address the two contamination areas. The first approach would involve construction of a four foot clean soil cover over the areas, which would better position the property for future commercial or park development, assuming that the development can be designed around the clean cover (grading, basements, geotechnical requirements, etc.). The second approach would involve excavation and off-site landfill disposal of two contaminated areas, which clean backfill of the deeper petroleum excavation area. The second approach would allow more freedom to redevelopment the site, including future residential land use which is included in the most recent concept plan. Assuming that the cleanup work at the propane parcel is conducted in 2009 as part of Veit's on-going Miller Dump Closure project, it is estimated that the clean cover would cost approximately $50,000 and the complete removal would cost about $100,000. In either case, MPCA will require preparation of an updated cleanup plan for their review and approval. There are a number of advantages to cleaning up the property now. For example, the above estimates are based on the unit pricing from Veit Companies. If the project were bid independently, it is likely that the costs would be higher do to bidding and mobilization fees. Second, by cleaning up the property now (2009), the City would