BERMITE SITE FIX UNCLEAR SANTA CLARITA WEIGHS OPTIONS IN CLEANUP OF POLLUTED FACTORY ACREAGE.

Byline: Heather MacDonald Staff Writer

SANTA CLARITA - City officials are exploring ways to clean the former Bermite explosives factory site - with or without the involvement of the property owner, as the polluted land's fate hangs in limbo.

At the same time, state officials are weighing whether to hit Remediation Financial Inc. with fines and other penalties after the company failed to meet more than a dozen deadlines set by the state to ensure that the cleanup progressed.

``We're just not sure what happens next,'' said Jeffrey Lambert, Santa Clarita's director of planning and building services.

Representatives from RFI have vowed to push forward with the cleanup effort.

``We have the same goal as the city - to clean up the property as soon as possible,'' said Gary Brown, RFI's director of development.

But the city is losing confidence and looking at its options, including a push for more federal funding for the cleanup and possible litigation to force previous owners blamed for the contamination to finance the cleanup.

For decades, the Department of Defense tested and manufactured munitions, explosives and missiles on the hilly, rugged land in the center of Santa Clarita, south of Soledad Canyon Road.

Four municipal wells were shut down in 1997 after unacceptable levels of perchlorate, a byproduct of rocket fuel used on the site, were found in the water. Perchlorate has been linked to thyroid problems.

In all, 275 chemicals and unexploded ordnance were left over from the work, prompting a complicated and expensive - but not impossible - cleanup effort.

At loggerheads 

Santa Clarita and Phoenix-based RFI are at loggerheads over the best way to proceed with that effort.

The City Council refuses to allow the company to sell off land for development as it is certified cleaned. RFI officials say that without phased development, they can't afford to clean up the polluted site.

RFI has fallen far behind in completing the work plans and field work necessary to clean up the site and could face fines and charges from the state attorney general for missing deadlines set by the state Department of Toxic Substances Control.

Company officials are scheduled to meet Wednesday with DTSC officials to discuss a revised cleanup schedule that would allow the company to meet flexible deadlines and remove the threat of enforcement action.

``We think that's the most productive way of cleaning the site,'' Brown said. ``Especially considering the city's failure to live up to the (1999) memorandum of understanding.'' However, DTSC officials said their priority is to get the site and groundwater cleaned up.

``We want to work with them, but we can't be focused on the development issues,'' said Sayareh Amir, head of the DTSC's Southern California Cleanup Operations Branch. ``Our mission is to protect the public.''

The looming enforcement action calls into question whether RFI is capable of completing the cleanup, city officials said. However, if RFI drops its plans to build the 3,000-home Porta Bella development, the situation just becomes more complicated, Lambert said.

Several members of the Citizens Advisory Group, including chairwoman Connie Worden Roberts, have long said that RFI is inhibiting the cleanup, and that the best thing to do would be to encourage the company to drop its plans.

``We're looking for all available funding sources, including the state and federal governments,'' Lambert said. ``The worst-case scenario, which used to be RFI not being able to clean up and develop the site and leaving town, is not as black and white as it used to be.''

The former owners of the property, the Whitaker-Bermite Corp., and its insurers, are still liable for the cost of the cleanup. But it would likely take months to begin preliminary discussions with the company over the cleanup, city and DTSC officials said.

Meanwhile, the pollution continues to spread in the Saugus Aquifer and seep deeper into the soil, Amir said.

Other options

City officials are reconsidering the specific plan for the property, and questioning whether single-family homes would be appropriate for the former industrial site, Lambert said.

Other options being considered include plans to launch an intense concentration of the city's resources to address the contamination, Lambert said.

However, Santa Clarita has less than $5.5 million on hand to shift to a new cleanup effort - and more than $10.5 million in unfunded needs already identified. Council members could be forced to shift money earmarked for other projects to meet those needs - and any unanticipated costs associated with the cleanup.

Further complicating the effort, several lawsuits have made communication between city and company officials all but impossible, officials said. Legal costs associated with the dispute could reach $250,000, according to estimates compiled by City Manager George Caravalho.

``As each lawsuit is filed, it inhibits our ability to bring people together,'' Lambert said. ``We'd rather be cleaning up the property than going to court.''

RFI has sued the city, alleging city officials violated the development agreement and specific plan by allowing Golden Valley Road to be built on the eastern portion of the property - even though all construction on the property is prohibited until the entire site is clean.

The city of Santa Clarita has countersued, and City Attorney Carl Newton has argued that RFI violated the development agreement by failing to make sufficient progress in the cleanup effort.

``Litigation could eventually speed things up by deciding issues definitively,'' said Councilman Frank Ferry. ``But it's a slow process.''

The Castaic Lake Water Agency sued RFI 11 months ago, hoping to force the immediate cleanup of the water. However, company and DTSC officials are still trying to characterize the size and scope of the pollution.

Short-term view

In the short term, city officials are focused on keeping the Santa Clarita Metrolink Station open and completing the next phase of Golden Valley Road, a crucial link in the city's circulation plan, said Councilman Cameron Smyth.

``We're in constant discussions about Porta Bella,'' Smyth said. Details of those sessions have been kept confidential, in accordance with state law.

In July, RFI terminated the city's lease of the commuter train station and blocked construction of Golden Valley Road, hoping the city would consider allowing phased development to resolve those issues.

Superior Court Judge David Yaffe ruled recently that as long as RFI claims rights under the development agreement, the city cannot be evicted, and the train station cannot be closed.

City officials say they have the right to build Golden Valley Road under the old access agreement, despite its termination by RFI. Construction crews plan to move forward soon, after attorneys from both sides have an opportunity to hammer out an agreement.

However, Yaffe made it clear that if the development agreement is revoked, all bets are off about related agreements. That could allow RFI to evict the city from the train station and close it down, while scuttling the city's plans for the road link.

Smyth said the council members had discussed that scenario in the closed- door meetings.

``We are preparing for that,'' Smyth said. ``And all potential options.''