Report 2020-107 Recommendation 2 Responses

Report 2020-107: California Department of Toxic Substances Control: The State's Poor Management of the Exide Cleanup Project Has Left Californians at Continued Risk of Lead Poisoning (Release Date: October 2020)

Recommendation #2 To: Toxic Substances Control, Department of

To ensure its ability to clean as many lead-contaminated properties as possible in a timely manner, DTSC should immediately begin soliciting an additional contractor to clean properties within the cleanup site. It should include performance standards for the pace of cleanup in its existing and future cleanup contracts.

1-Year Agency Response

DTSC has deployed public participation specialists and contractors' staff to conduct additional outreach to secure additional access agreements and increase the number of properties needing cleanup to get to our initial goal of 3,200 properties. DTSC amended the existing cleanup contract in December 2020 to add 450 properties, and the work is nearing completion. Using our existing contractor allows DTSC to maximize efficiencies while effectively managing costs.

DTSC has also continued to steadily increase the number of cleanup crews. NEC has employed 25 cleanup crews every week in the field since September 14, 2020, even with COVID-19 Stay-at-Home orders, unprecedented wildfires, and increases in COVID-19 cases in Southern California. Two more crews were added in mid-March 2021, two crews were added in April 2021, and one more crew was added on June 1, 2021, bringing the total number of crews to 30 that have been since actively cleaning up and restoring residential properties.

On July 12, 2021, the Governor approved Senate Bill (SB) 158. SB 158 added $31.4 million as a General Fund loan to reach the goal of cleaning 3,200 properties. With this funding, DTSC executed a new cleanup contract with NEC in early July 2021 to clean up an additional 400 properties to reach the goal of cleaning 3,200 properties. A copy of the contract can be found on DTSC's Exide Contracts page here: https://dtsc.ca.gov/wp-content/uploads/sites/31/2021/09/21-T4934-Exhibits_Revised_06.29.21_Clean.pdf. The contract contains performance standards for the pace of cleanup and crews in the field in Exhibit A, Section13, Task 1 Performance Standards, starting on page 18. The Contractor must clean up an average of 18 properties per week and maintain a minimum of 20 crews in the field at all times, except under certain circumstances. Additional performance standards relating to the Letters of Completion are found in Exhibit A, Section 13, Task 4 Performance Standards, starting on page 21.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

DTSC remains committed and focused on the expeditious cleanup of as many lead-contaminated properties as possible with the already appropriated funds. DTSC has deployed our consultants to conduct additional outreach to increase the number of properties signed up for cleanup to get to our initial goal of 3,200 properties. DTSC has amended the existing cleanup contract to add 450 properties. Using our existing contractor allows DTSC to maximize efficiencies while effectively managing costs. The contract amendment includes performance standards requiring a minimum number of crews to be provided by the contractor.

DTSC has also continued to steadily increase the number of cleanup crews. NEC has employed 25 cleanup crews every week in the field since September 14, 2020, even with COVID-19 Stay-at-Home orders, unprecedented wildfires, and recent increases in COVID-19 cases in Southern California. Two more crews were added in mid-March 2021, bringing the total number of crews to 29.

The Governor's proposed 2021-22 Budget includes $31.4 million as a General Fund loan to reach the goal of cleaning 3,200 properties. If this funding is approved by the Legislature, DTSC anticipates finalizing a new cleanup contract in early July 2021. DTSC will add language regarding the pace of cleanups to that contract.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

Although the department indicated it amended its contract to require its contractor to maintain a specific number of cleanup crews, the amended contracted did not include a pace of cleanup standard, which we recommended. Further, we cannot assess DTSC's statement about its anticipated new contract, which it does not anticipate finalizing until July 2021.

60-Day Agency Response

Rec. #1 Response Continued

14 daycares field work has been completed,

1 daycare field work is in progress and is anticipated to be completed by 1/2/2021

2 daycares are on the cleanup schedule and anticipated to be completed by end of January 2021

4 daycares with property owners' negotiating a cleanup start date in spring 2021, and

3 daycares with property owners who have declined cleanup due to various reasons.

Since the Audit report we have implemented a procedure to request a list of all daycares in the area undergoing cleanup activities from the California Department of Social Services Community Care Licensing Division on a semiannual basis. During the most recent request from these agencies, DTSC identified 31 additional daycares within the cleanup area. All the newly identified daycares have been evaluated and those that have a representative soil lead concentration above 80 ppm have been prioritized for cleanup. Please see status of the 31 additional daycares below:

-9 were already cleaned up

-2 do not require cleanup

-17 requiring cleanup have been prioritized

-3 have not provided DTSC access for initial sampling

The status for all daycares prioritized for cleanup is updated weekly on DTSC's website - https://dtsc.ca.gov/Exide-audit/

Recommendation #2 Response

DTSC remains committed and focused on the expeditious cleanup of as many lead-contaminated properties as possible with the already appropriated funds. In response to the audit finding, DTSC has deployed our consultants to conduct additional outreach to increase the number of properties signed up for cleanup to get to our initial goal of up to 3,200 properties. DTSC has amended the existing cleanup contract for 450 properties. Using our existing contractor allows DTSC to maximize efficiencies while effectively managing costs. Contract amendment in progress includes performance standards requiring a minimum number of crews to be provided by the contractor.

Response continued in rec. #3

California State Auditor's Assessment of 60-Day Status: Partially Implemented

To support its response, DTSC provided us a link to its website which showed that it amended its existing contract to clean an additional 450 properties which fulfills the portion of our recommendation to increase its cleanup capacity. However, although the department indicated it amended its contract to require its contractor to maintain a specific number of cleanup crews, the amended contracted did not include a pace of cleanup standard, which we recommended.

All Recommendations in 2020-107

Agency responses received are posted verbatim.