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An Ordinance Approving a Highway Authority Agreement and a Limited Environmental Indemnity Agreement between Hargobind Inc. and the Village of Oak Park for the Property Located at 330 Chicago Avenue and Authorizing their Execution
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Introduction
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The property owner of 330 Chicago Avenue seeks to secure a closure of an incident regarding leaking underground storage tanks at the site with the Illinois Environmental Protection Agency (IEPA) which would include the execution of a Highway Authority Agreement (HAA) and a Limited Environmental Indemnity Agreement with the Village. A HAA identifies the areas in the Village’s right-of-way which exceeds IEPA soil remediation objectives and provides a mechanism to alert those who may need to perform any excavation work in the area. A Limited Environmental Indemnity Agreement identifies the cost responsibility for managing contaminated soils.
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Recommended Action
Adopt the ordinance.
Prior Board Action
There is no prior Board action associated with this item.
Background
Petroleum products from former leaking underground storage tanks in 1997 at the former Clark gas station at 330 Chicago Avenue, the northeast corner of Chicago Avenue and Ridgeland Avenue, have leaked into the soils over time. Since that time, the property has been sold and is now the GoLo gas station. Following an environmental site investigation by the owner, it was determined that soil contamination spread into the public right-of-way on Chicago and Ridgeland Avenues.
The current owner is requesting to obtain a Highway Authority Agreement (HAA) to allow for this contamination to remain under the Village’s right-of-way (ROW) on Chicago Avenue. They will be required to enter into a separate HAA with IDOT for the contamination under Ridgeland Avenue since Ridgeland Avenue is a State highway. The Village is requiring a Limited Environmental Indemnity Agreement, which requires the owner to pay all costs associated with any environmental issues in the future for both the Chicago and Ridgeland Avenues right of ways, should the Village, or its permittees, need to perform work in the areas covered by this agreement.
An HAA is an agreement between the owner of the leaking tank and the highway authority (Village), which acts as an institutional control to protect public health by limiting human exposure to the contamination. The HAA addresses specific incidents of environmental contamination due to a leaking tank or other release of contamination. It does not grant the authority to continue to contaminate the ROW. In this case, the HAA relates to 2 underground storage tanks, which were removed in 1997 at the Clark gas station and were determined to be leaking at that time. The previous owner had approximately 900 cubic yards of contaminated soil removed at that time, which was also done to facilitate the installation of new gas tanks. Since then, soil testing and a corrective action plan were developed by the former Clark station, but never implemented. The current owner is looking to close these historical incidents and has been working with the IEPA and has developed a corrective action plan, which was approved by the IEPA. Exposure to contaminated groundwater is protected by an existing Village Ordinance, which prevents the use and installation of potable or domestic wells. Remaining contamination in the soil and groundwater in the ROW is proposed to remain in place using the HAA to protect and limit exposure to the contamination. The Environmental Indemnity Agreement makes the owner responsible for future costs related to the contamination in the ROW of both Chicago Avenue and Ridgeland Avenue should the Village do any work that requires managing contaminated soils.
There are approximately 25 HAAs already in place within the Village of Oak Park and along the Village’s border streets.
Timing Considerations
There are no specific timing considerations associated with this item.
Budget Impact
There is no fiscal impact if the Ordinance is approved. The owner has paid for all the testing and the Limited Environmental Indemnity Agreement requires the owner to pay all costs associated with any environmental issues should the Village, or its permittees, need to perform work in the streets where there is contamination. The owner will also pay for recording of the agreements with the Cook County Recorder of Deeds.
Staffing Impact
There is no staffing impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Adopt the Ordinance which will define the financial responsibility for environmental costs due to contamination in the right-of-way at this location as well as protecting worker safety.
Advantages:
• This action defines the financial responsibility for future environmental costs to the owner.
Disadvantages:
• There are no disadvantages associated with this item.
Alternatives
Alternative 1:
The Board can delay action to gain additional information.
Advantages:
• Board Members would be presented with the additional information they requested.
Disadvantages:
• There are no disadvantages associated with this item.
Alternative 2:
The Board can vote down the item.
Advantages:
• There are no advantages to this alternative.
Disadvantages:
• The Village would need to attempt to recoup costs for future environmental expenses in the ROW and the owner would be required to remediate the ROW should they desire to obtain a No Further Remediation determination from the State.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: Bill McKenna, Village Engineer/Assistant Public Works Director
Reviewed By: Rob Sproule, Public Works Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Ordinance
2. Highway Authority Agreement 330 Chicago
3. Environmental Indemnity Agreement 330 Chicago
4. Corrective Action Plan 330 Chicago Ave