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HomeMy WebLinkAbout2020-04-02; Encina Power Station Demolition Suspension and Force Majeure Event; Barberio, GaryTo the members of the: COUNCIL Date CA :j CC ✓ CM ~A ✓ocM(3)~ Council Memorandum , April 2, 2020 To: Honorable Mayor Hall and Members of the City Council Via: Geoff Patnoe, Assistant City Manager . {city of Carlsbad Memo ID# 2020049 From: Gary Barberio, Deputy City Manager, C~unity Services Branch Re: Encina Power Station Demolition Susp on and Force Majeure Event On Friday, March 20, 2020, Cabrillo Power I LLC (NRG) received a notice (Exhi.bit 1) from Brandenburg Industrial Service Company, NRG's demolition contractor, of a Force Majeure Event due to Governor Newsom's Executive Order directing residents to shelter-in-place in response to the COVID-19 pandemic. All Brandenburg personnel and contractors left the Encina Power Station (EPS) site effective with the close of business on March 20, and work will be suspended until further guidance is provided. The notice was not the result of any specific safety or health concern associated with COVID-19 at EPS, but was in response to the Governor's guidance and heightened importance for minimizing groups and social distancing. The EPS site will be maintained in full environmental compliance while demolition work is suspended. Given the uncertain duration of the "shelter-in-place" order, it is difficult to forecast the COVID- 19 impact on the demolition schedule; but NRG has indicated that they will continue to use their best efforts to complete the demolition before the extended deadline approved by the City of Carlsbad on November 12, 2019. We will keep you updated as more information becomes available. cc: Scott Chadwick, City Manager Celia Brewer, City Attorney Attachment: Notice of Force Majeure Event, dated March 20, 2020 Community Services Branch 799 Pine Ave, Suite 200 I Carlsbad, CA 92008 I 760-434-2820 Brandenburg® March 20, 2020 Project Code: MA0842 Ralph Wagner Director of Project Management · NRG Engineering & Construction 4600 Carlsbad Blvd. Carlsbad, CA 92008 Re: Gabri/lo Power I LLC Abatement and Demolition Contract Subject: Notice of Force Majeure Event Dear Mr. Wagner: As a follow up to the letter distributed on March 18, 2019 Notice of Potential Force Majeure. As you may be aware, on the evening of Thursday, March 19, California Governor Gavin Newsom issued a statewide "shelter in place" for all residents in an attempt to stunt the curve of the COVID-19 epidemic outbreak. This shelter in place states that all residents remain at home and self-quarantine with the exception of essential workers, and for food and other needs. It was expressed that there is no defined end date to this order at this time. Brandenburg had previously instituted several of the contingency steps as discussed throughout prior meetings. Equipment and port-a-johns that require spill containments shall be moved to within a building structure or secured for a more long term staged period (large loader). Stone has been delivered and will be utilized to stabilize the exposed soil where the barge was located. The decision to not move forward with any friable abatement within the containments allows us to turn off the negative air machines and seal the doors to the containments. A couple of items we have not been able to accommodate with the short notice is the removal of non-haz used oils staged in the Haz Waste Storage building and the complete repair of the sanitary pipe as we have not been able to locate the break. In accordance with the Governor's order, Brandenburg will have the crews on site today, March 20, 2020 to finalize any of the preparedness plans discussed within our contingency meeting that are within our control. At close of business on March 20, 2020, Brandenburg's crews, subcontractors and vendors will return to their homes to self-quarantine and await further guidance to be provided by the CDC, State and Local Authorities. Due to an undefined end date and ever changing circumstances Brandenburg does not know the implications of this Force Majeure event. Brandenburg will continue to collect information from the preceding identified Authorities, as well as working closely with onsite Owners Representatives, and will keep Owner informed as more details emerge. If you have any questions or comments, please contact me directly at (484) 239-4844. Sincerely, 4~eftL Jason GaNun DIVISION OFFICE 2217 Spillman Drive Bethlehem, PA 18015-1982 Phone (610) 691-1800 Fax (610) 691-4200 BRANDENBURG INDUSTRIAL SERVICE COMPANY 501 W. Lake Street, Suite 1041 Elmhurst, IL 60126-1419 I Phone (630) 956-7200 I Fax (630) 956-7222 2625 S. Loomis Street I Chicago, IL 60608-5414 I Phone (312) 326-5800 I Fax (312) 326-5055 1 N. Broadway, Stop 670 I Gary, IN 46402-3101 I Phone (219) 881-0200 I Fax (219) 880-4330 200 E. Big Beaver Road I Troy, Ml 48083-12081 Phone (313) 382-2500 I Fax (800) 849-1589 #50 Rivera Aulet Street, Bo. Pueblo Suite 101 I Arecibo, PR 00612 I Phone (787) 650-7171 800 Town & Country Blvd. I Houston, TX 77024-3916 I Phone (832) 431-32871 Fax (800) 849-1589 Brandenburg® Senior Project Manager cc: MA0842 File BICANT; JASJAC; SMIKEV BRANDENBURG INDUSTRIAL SERVICE COMPANY 2217 Spillman Drive I Bethlehem, PA 18015-19821 Phone (610) 691-1800 I Fax (610) 691-4200 · COM-19 Page 2 of 2