ECONOMIC AND WORKFORCE DEVELOPMENT MICHAEL COHEN, DIRECTOR CITY AND COUNTY OF SAN FRANCISCO GAVIN NEWSOM, MAYOR M E M O R A N D U M TO: Members of the Health Commission FROM: Michael Cohen CC: Mitch Katz, Mark Morewitz DATE: May 24, 2010 RE: Update on the Status of the Cleanup of the Hunters Point Shipyard and related Amendments to Article 31 of the Health Code On June 1 st, 2010 the Office of Economic and Workforce Development and staff from the Department of Public Health ( DPH ) will provide the Commission with an overview of status of the environmental clean-up of the Hunters Point Shipyard ( Shipyard ), including: (i) an update on the current and future environmental condition of the Hunters Point Shipyard, (ii) the nature and extent of Federal, State and local regulatory oversight of the clean-up, including ongoing oversight of the site after transfer, (iii) the nature and extent of the analysis and characterization of the site, and (iv) the relationship of the cleanup with the Redevelopment Agency s ( Agency ) and City s development plans. This presentation will also include an overview of the related ordinances and amendments to Article 31 of the Health Code that will be required to implement the development of the Shipyard. Status of the Environmental Cleanup of the Shipyard In summary, the Shipyard has been extensively studied and analyzed for over 20 years and, as a result of those studies and the extensive and overlapping oversight of multiple regulatory agencies including: the U.S. Environmental Protection Agency ( USEPA ), the Department of Toxics Substances Control ( DTSC ) and the San Francisco Bay Area Regional Water Quality Control Board ( RWQCB ), our knowledge about the nature of the contamination at the Shipyard is very good. Those analyses have repeatedly demonstrated that the Shipyard in its current state does not present an immediate threat to tenants, visitors or the surrounding community. However, in order to implement the community's redevelopment plans for the Shipyard, the Navy needs to implement various environmental remedies to allow sub-surface construction, or those costs would be transferred to the Project. Fortunately, the Navy has spent over $700,000,000 to date on the Shipyard and much of the developable land will soon be ready for transfer. Post-transfer, the condition of the Shipyard and the long-term on-going oversight and use restrictions at the Shipyard, will be very similar to other successful "brownfields" projects in the Bay Area, such as Mission Bay and Emeryville. In addition, the incredibly robust, and often 1 DR. CARLTON B. GOODLETT PLACE, ROOM 448, SAN FRANCISCO, CA 94102 (415) 554-6123 VOICE (415) 554-6018 FAX
redundant, level of local, Sate and Federal oversight of the environmental condition of the Shipyard will continue after land is transferred to the Agency. Ultimately, both Federal and State EPA must certify in writing that the Shipyard can be developed and used safely - for people and the environment - before any transfer or construction can occur. In addition, please also find included a copy of a Draft Executive Summary Regarding the Environmental Remediation of the Shipyard. This document is intended to serve as a comprehensive overview of the history and status of the cleanup and includes a number of attachments that provide additional technical details. This document has been prepared by City staff, including staff from DPH, the Agency and the City s technical environmental consultant Treadwell & Rollo. Project Background The Candlestick Point-Hunters Point Shipyard Phase 2 Project covers approximately 702-acres along the southeastern waterfront of San Francisco. The Project has been reviewed and discussed in over 230 public meetings including meetings with the two community-based advisory organizations that oversee the Project site (the Hunters Point Shipyard Citizens Advisory Committee ( CAC ) and the Bayview Hunters Point Redevelopment Project Area Committee ( PAC ), the Agency Commission, the Board of Supervisors, the Planning Commission and other City commissions, along with other local forums. In March 2004, the Agency, in cooperation with the City, negotiated a comprehensive agreement with the Navy governing the terms and conditions of the hazardous materials remediation and conveyance of the Shipyard by the Navy to the Agency (the "Conveyance Agreement"). The Conveyance Agreement obligates the Navy to remediate hazardous materials on the Shipyard to levels consistent with the land uses designated in the original redevelopment plans for the Shipyard and to convey parcels to the Agency at no cost on a phased basis as the Navy successfully completes the remediation. In May 2007, the Mayor, the Board of Supervisors, the Agency Commission, and PAC and CAC, endorsed a "Conceptual Framework for the integrated redevelopment of Candlestick Point and Phase 2 of the Shipyard (Phase 1 of the Shipyard was approved and is under construction). The Conceptual Framework envisioned a major mixed-use project, including hundreds of acres of new and restored waterfront parks and open space, thousands of new units of housing including a robust affordable housing program, extensive job-generating retail and research and development uses, permanent space and renovated for the artist colony that exists in the Shipyard and a site for a potential new stadium for the 49ers on the Shipyard. In April 2007, the Planning Department also entered into a Memorandum of Understanding ( MOU ) between the City, the Planning Department, the Recreation and Park Department, the Mayor s Office, and the Redevelopment Agency. The MOU provides for the City and the Agency to cooperate with one another to facilitate the planning of Candlestick Point and Phase 2 of the Shipyard as one integrated development project consistent with Conceptual Framework.
In June 2008, City voters approved Proposition G, an initiative petition measure named the Bayview Jobs, Parks, and Housing Initiative, regarding plans to revitalize the Project site. Proposition G: (i) adopted overarching policies for the revitalization of the Project site; (ii) authorized the conveyance of the City s Recreation and Park interests within Candlestick Point in furtherance of the Project, provided that there is a binding commitment to replace the transferred property with other property of at least the same acreage that will be improved and dedicated as public parks or open space in the Project; (iii) repealed Proposition D and Proposition F relating to prior plans for the development of a new stadium and retail entertainment project on Candlestick Point; and (iv) urged the City, the Agency and all other governmental agencies with jurisdiction to proceed expeditiously with the Project. Project Description Consistent with Conceptual Framework and Proposition G, the proposed land use and development program on the Shipyard and Candlestick Point include the following elements: 10,500 residential housing units, of which 31.86% (3,345) will be below market. The housing program includes the complete rebuilding of the Alice Griffith Public Housing Development, also known as Double Rock, with one-for-one replacement of existing units and phased development to prevent displacement. 2,500,000 sq. ft. of research and development uses including office and light industrial uses targeting emerging industries and technologies such as green technology. 150,000 sq. ft. of office and other commercial uses on Candlestick Point. 336 acres of new and restored open space and active recreation areas inclusive of the dual use stadium parking lot, which includes neighborhood parks within Candlestick Point and the Shipyard, new waterfront parks around the entire perimeter of the Shipyard connecting to the region s Bay Trail, and a major renovation of the Candlestick Point State Recreation Area with restored habitat areas and public access to the water. 635,000 sq. ft. of regional retail on Candlestick Point. 125,000 sq. ft. of neighborhood-serving retail on both the Shipyard and Candlestick Point. Permanent new and renovated space for the existing Shipyard artists as well as an arts education center. A 150,000 sq. ft. (220-room) hotel on Candlestick Point. A 10,000 seat performance venue on Candlestick Point. A potential new 69,000-seat, world-class football stadium for the 49ers. New public and community facilities on both the Shipyard and Candlestick Point, including a new fire station on the Shipyard and space for an expanded police station or school on Candlestick Point. A 300-slip marina on the Shipyard.
The development of the Project will require substantial new transportation and utility infrastructure including new roads as well as a new low-pressure water system, a reclaimed water system, an auxiliary water supply system, separate sanitary sewer and storm drainage facilities, and trenches throughout the Project site to accommodate electrical, communication, and gas utilities. Shoreline improvements will also be provided to stabilize the shoreline. Additionally, the Project provides for alternative uses that either shift some residential uses from Candlestick Point to the Shipyard and expand by up to 500,000 square feet commercial uses on some of the areas of the Shipyard currently reserved for stadium uses or expand research and development uses by 2,500,000 square feet on the Shipyard if the 49ers do not avail themselves of the opportunity to build a new stadium on the Shipyard. The bicycle and pedestrian bridge over Yosemite Slough can be used for game day automobile travel in the event the stadium is constructed. Article 31 of the Health Code - Existing Law Pursuant to the Conveyance Agreement, in December 2004, the Navy conveyed Parcel A of the Shipyard to the Agency for development. In planning for the transfer of Parcel A from the Navy to the Agency, DPH developed Article 31 of the Health Code in order to impose specific requirements on activities at the Shipyard in order to provide additional protection to human health and safety and the environment above and beyond what was required by federal and state law. Currently, Article 31 provides a mechanism for certain types of subsurface activities on Parcel A to require submittal of plans to DPH in order to ensure that subsurface work is conducted in a safe manner. In addition, Article 31 requires compliance with institutional controls and coordinates with relevant departments to monitor and enforce compliance. The mechanism for compliance with these requirements is the submittal by an applicant for certain permits at DPH, the Department of Building Inspection or the Department of Public Works. More specifically, Article 31 requires that in areas on top of or within 1,000 feet of old landfill disposal sites and where there is evidence of landfill gas migration that could pose a threat to public health and safety, the Director of DPH (Director) can impose protective measures as a condition of a permit. In addition, the Director can require additional sampling based on site-specific conditions. Furthermore, Article 31 provides that the both the Director and the Health Commission can charge fees to recover oversight costs and can add or implement certain requirements by regulation. In 2004, the Health Commission adopted implementing regulations for Article 31. These regulations, specified details for the required plans and reports, including the preparer s qualifications. The following required evaluations, plans, and reports were specified in the ordinance and regulations: Review structures within 1,000 feet of old disposal sites for concerns related to landfill gas Site Evaluation Report, including project descriptions, site history, data evaluation for areas with fill materials Dust Control Plan Disposal Plan Health and Safety Plan, including a contingency plan
Soil Importation Plan Determination of whether additional characterization is necessary If additional characterization is required then submittal of a Scope of Work to Collect Additional Information and a Supplemental Site Evaluation Report. Closure Report Proposed Amendments to Article 31 of the Health Code At the time Article 31 was adopted, it was anticipated that it would be amended to include other parcels on the Shipyard, as they are transferred out of Navy ownership. In anticipation of the transfers of the next few parcels in 2011, DPH is proposing amendments to the ordinance and regulations in order to extend Article 31 of the Health Code and the associated regulations to the balance of the Shipyard. The structure of the review and permitting requirements remain the same with a few important changes, which are articulated below. The amended ordinance reiterates applicant compliance with institutional controls included in any deed conveying ownership from the Navy to the Agency or included in any recorded covenant to restrict use of property containing environmental restrictions and the DPH role in overseeing and enforcing compliance. Additionally, the Shipyard parcels are divided into two main groups: Unrestricted Residential Property and Property with a Durable Cover Requirement. Unrestricted Residential Property requires compliance for actions involving wells or any permit that involves demolition of structures with lead-based paint or when at least 50 cubic yards of soil are being disturbed. For property with a Durable Cover Requirement, meaning properties that are required to have a durable cover or engineered cap, compliance is required whenever soil is disturbed. For both types of properties, the evaluations, plans and reports listed above are still required. In addition, the following significant changes have been made: Soil Screening Criteria are updated to current regulatory standards. The Article 31 Map is updated to show all HPS parcels. Unknown Contaminant Contingency Plan is called out as a separate plan from the Health and Safety Plan A Foundation Support Piles Installation Plan is required for areas where piles will be driven into artificial fill materials. A requirement for submittal of a Stormwater and Erosion Control Plan is removed because this duplicated requirements for submittal and review of this information to the SF Public Utilities Commission. Details for a Serpentinite Cover Plan for Unrestricted Residential Property are specified in the regulations. New Site Evaluation Reports for Unrestricted Residential Property that have an approved Closure Report and a Serpentinite Cover Plan, do not need to submit a site history, data evaluation, or statement of adequate characterization. Site Evaluation Reports for HPS property subject to a Durable Cover Requirement need to contain project description information but need not contain a site history, data evaluation, or statement of adequate characterization.
Clarifies that HPS property subject to a Durable Cover Requirement must submit proof of compliance with specific institutional controls as detailed in specific transfer documents. If a Risk Management Plan for the property already includes approved Dust Control Plans, Site Specific Health and Safety Plans or Soil Importation Plans then the Applicant can submit copies of those plans and approval letters from USEPA to meet the submittal requirement for those plans. If the USEPA approved Dust Control Plan does not include specifics about particulate monitoring then the Director can require that information to be submitted. For Unrestricted Residential Property, there are more details about how to comply with lead based paint in soil sampling requirements under the Scope of Work to Collect Additional Information Other minor wording changes were made and are highlighted in the attached copies of the amended ordinance and regulations. Next Steps At the June 15 th, 2010 meeting, the Health Commission will consider the proposed amendments to Article 31 of the Health Code for approval and recommendation of approval by the Board of Supervisors. At this same meeting the Commission will consider for approval the related changes to the regulations which implement Article 31 of the heath code. Attachments: 1. Draft Ordinance Amending Article 31 of the Health Code and Legislative Digest 2. Draft Amendments to Regulations Implementing Article 31 of the Health Code 3. Draft Executive Summary on the Environmental Remediation of the Shipyard 4. Power Point Presentation for June 1, 2010 meeting