AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Enter into a Reimbursement Agreement with Pine Street Partners, LLC for Internal Improvements Related to the Central Plume PCE/TCE Soil Vapor Remediation Project at 212 West Pine Street (PW)
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MEETING DATE:
July 1, 2026
PREPARED BY:
Interim Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a Resolution authorizing City Manager to enter into a reimbursement agreement with Pine Street Partners, LLC for internal improvements related to the Central Plume PCE/TCE Soil Vapor Remediation Project at 212 West Pine Street.
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BACKGROUND INFORMATION:
For over 20 years, the City of Lodi has been involved in the remediation efforts associated with perchloroethylene (PCE) in the Central Plume Source Area (CPSA). The CPSA is generally bound by Pine Street on the North, Oak Street on the South, Church Street on the East, and Pleasant Street on the West. While the City did not cause the soil and groundwater contamination, the City agreed to assume all of the cleanup obligations as part of multiple lawsuit settlements.
On July 2, 2025, Council approved the plans and specifications for the Central Plume PCE/TCE Soil Vapor Remediation Project, authorized the advertisement for bids, authorized the award to the lowest responsive bidder ($1,000,000), authorized change orders ($100,000), and appropriated funds ($1,100,000).
One of the main components of the project is the replacement of the building’s concrete slab (with the addition of a vapor barrier). The plans required that the new concrete slab be polished concrete, and that the slab be poured such that the existing walls would remain in place, with demolition and replacement under the walls being phased so that the finished polished surface does not have those segmented pours visible. As an approved alternative, the contractor had the option of removing all of the interior walls, and reconstructing them in the same location.
The contractor that was awarded the project, Innovative Construction Solutions (ICS), has proposed a project credit (contract deduct) in the amount of $135,000 if they are allowed to demolish the walls and not build them back. Prior to this project, the building’s owners, Pine Street Partners, LLC, had planned an interior remodel, which has been on hold for approximately two (2) years due to this remediation project. Their planned remodel was designed with the expectation that the walls would be in the same location, however the internal improvement credit would allow them flexibility to reconfigure the interior walls into whatever configuration best serves their needs. They have acknowledged that the internal improvements will exceed the $135,000, however the flexibility in ultimate configuration is worth it for them.
The reimbursement agreement will be in a form approved by the Interim City Attorney, with the terms limiting the total internal improvement reimbursement to the amount credited by ICS ($135,000). Additionally, the terms will include the requirement that prevailing wages be paid for all reimbursed improvements, and copies of invoices/receipts will be required prior to issuance of reimbursement payments.
Staff supports the ICS contract deduct (credit) combined with the reimbursement agreement, as it limit’s the contractor’s scope to the actual soil vapor remediation efforts (and not the associated interior wall repair components), it allows the City’s obligation to be completed once the slab is poured (and other associated improvements are completed), and gives the building owner the flexibility in ultimate interior wall configuration.
FISCAL IMPACT:
This item will have no long-term fiscal impact. The project (for reference) is funded through the PCE/TCE Rates Fund, and no General Funds are being utilized.
FUNDING AVAILABLE:
The project funds were appropriated on July 2, 2025, from the PCE/TCE Rates Fund (56599000.77020), however this item has no costs associated with it (the maximum reimbursement amount to the building owners will equal the contractors deduct / credit to the contract).