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Council Meeting October 13, 1998
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OCT t 3 .
Santa MOnica, California
To
Mayor and City Council
From
City Staff
Subject
Recommendation to Authonze the City Manager to Negotiate and
Execute a Contract With Arthur 0 Little for Environmental Services at the
Airport, Corporate Yard and Fire Station Three
Introduction
ThiS report recommends that Council authOrize the City Managerto negotiate and execute
a two year contract With Arthur D Little In the amount of $1,707,618 to conduct
underground tank removal, replacement and upgrade actIvities at the Airport, Corporate
Yard and Fire Station Three and environmental mOnitoring, assessment, englneenng and
cleanup servIces at the Airport
Background
USTs are regulated by local, state and federal laws which establish deSign, monitoring and
construction standards The federal deadline for mOnltonng and construction standards
IS December 22, 1998 Pnor to that date, all underground tanks must meet minimum
standards related to corroSion protection, spill containment, overfill prevention, stnker
plates, secondary containment of the tanks and piping, and automatic pump shutoff
Standards also reqUIre that any spills from USTs must be investigated, evaluated and
cleaned up m accordance With regulatory requirements The City currently and historically
has owned and operated underground storage tanks (USTs) at facIlities throughout the
City USTs have been used to store products such as gasoline, diesel, motor Oil, engine
coolant and solvents which are used to fuel and malntam vehicles, aircraft, and emergency
generators
As a part of the City's Underground Storage Tank Management Program (U8TMP) and
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OCT f 3 a
In response to new federal UST standards and best management practices, staff has
evaluated the compliance status and condition of all City-owned USTs Additionally, the
envlronmentallntegnty of current and former UST sItes have been assessed The results
of thIs assessment and recommendations In response to the findings are discussed below
DISCUSSion
The assessment has identified a number of City owned UST sites which require tank
upgrade, removal and replacement actiVities In addition, several locations Will require
further environmental assessment and cleanup activities Detailed informatIon for the
reqUIred activities at each site IS proVided below
Santa Monica Airport
Four sites have been Identified at the Airport which require environmental services Some
contaminated SOIl and groundwater were discovered by prevIous Investrgatlons at the site
It IS beheved that the contamination IS a result of hlstonc aircraft mamtenance and c1eanmg
activities In the area The contaminated sOil and shallow groundwater have been fully
assessed and clean up IS proposed as a part of thiS scope of services The cost for one
year of operation and maintenance of the cleanup system IS mcluded
The scope of services proposed In thiS staff report also Includes additional mvestlgatlon
actiVities to further characterize deep groundwater and also to determine whether current
clean-up activities need to be modified In the event further cleanup IS reqUired, It Will be
addressed In a future staff report Four old USTs need to be removed With two bemg
replaced
At the North Field, the City has been partiCipating With the Regional Water Quality Control
Board (RWQCB) and the United States Environmental ProtectIon Agency (USEPA) In a
JOint effort to IdentIfy the source(s) of chlonnated solvent groundwater contamination found
In the Santa MOnica 8asm The City currently rehes upon thIS groundwater, after the
contamination has been removed, for a portion of ItS drinkIng water supply With the
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RWQCB as the lead agency, several potentially responsible parties (PRPs) have been
Identified One of the PRPs IS the former Douglas Aircraft Manufactunng FacIlity, which
was previously located m the area Immediately north of the Airport The Boemg
Company, the current corporate entity responsible for Douglas Aircraft Company's former
sites, IS undertaking extensive environmental Investigation actIVities at the site to determine
the site's role m the regional groundwater problem ThiS scope of services mcludes
consultmg assistance to evaluate work done by Boemg (and other PRPs who may be
Identified) to ensure that the City's mterests and water supply are fully protected.
Corporate Yard
The Corporate Yard has seven USTs which are utilized to fuel and mamtaln the City'S
vehicle fleet Of the seven USTs, one must be removed due to Its age and construction,
while the remaining SIX must be upgraded to meet new federal UST standards The
upgrade Includes new pIping, overfill and spill containment, new dispensers and an
upgraded fuel Inventory management system These actiVities are mcluded In thiS scope
of services
Fire Station Three
Two USTs are currently located at Fire Station Three to fuel Fire Department and Pollee
Department vehicles and the station's emergency generator In accordance With new
federal standards, these USTs are to be removed and replaced With a Single dual
compartment tank to mamtam fueling capacity at the station The removal and
replacement actiVities are mcluded In thiS scope of services
A Request for Proposal (RFP) was dlstnbuted to four environmental consultrng firms With
demonstrated expertise and resources to respond to the Wide range of environmental
services Two of the four firms submitted proposals for the speCified services These two
firms were Invited to make an oral presentation of their proposals and to answer questions
from a committee comprised of the Fire Department, the Resource Management
Department, Maintenance Management DIVISIon and the EnVironmental Programs DIVISion
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The committee unanimously selected Arthur D Little as the most qualified firm to provide
the diverse environmental services
Budget/Fiscal Impact
The total cost of the two year contract IS $1,707,618 Funds for the first year of the
recommended two year contract, In the amount of $719,367 are available are available
In the following accounts
01-710-662-20096-8905-99020 $51 ,397
01-710-662-20098-8900-99020 $107,500
33-710-662-20097 -8900-99020 $300,000
33-710-662-20098-8900-99020 $220,000
33-710-631-20098-8900-99632 $10,000
25-760-671-20099-8900-99136 $30,470
Amounts totahng $988,251 will be requested from the funds noted below In the Capital
Improvement Project budget request for fiscal year 1999/2000
General Fund $375,331
AIrport Fund $612,920
Recommendation
Staff recommends that Council authOrize the City Manager to negotiate and execute a
two-year contract With Arthur 0 Little In the amount of$1,707,618 to conduct underground
tank removal, replacement and upgrade actiVities at the Airport, Corporate Yard and Fire
StatIon Three and environmental mOnitoring, assessment, engmeerlng and cleanup
services at the Airport ContinuatIon of the contract for the second year Will be contingent
on CounCil approval of funds dUring the budget adoption process
Prepared by Craig PerkinS, Environmental & Public Works Management Director
Brian Johnson, Environmental Programs Coordinator
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electricity Such a policy decIsion by the City would be consistent with several City Council
adopted envIronmental policy goals, has been unanimously endorsed by the Task Force
on the Environment and would pOSition Santa MOnica as a leader In the regIon, state and
nation
The current electricity demand for City faCIlities IS approximately 5 MW per year That
results In payments of approximately $23 million per year to Southern California Edison
It IS estimated that purchasing green electricity for all City facIlities could cost an additional
$110,000 to $215,000 per year, based on a one half to one cent per kWh premium over
current market rates (5 to 10 percent Increase over current costs) The Implementation
process for the purchase of green electriCity would also require a one-time Installation cost
of $15,000 to $35,000 for conversion of approximately 26 City electriCity meters DUring the
first year, total Incremental costs for purchasing green electriCity could therefore amount to
$250 I 000 spread among all departments and all funds
There are many competing opinions as to what green energy IS The Green-e Renewable
ElectriCity Branding Project, established by the nonprofit Center for Resource Solutions In
San FranCISco, was created to encourage consumer confidence when purchasing green
electnclty They have formed a Green Power Board which has established standards for
what constitutes a renewable electriCity product and a voluntary venflcatlon process for
green power supphers To be Green-e certIfied, at least 50 percent ofthe electriCity product
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must be generated from renewable energy resources with the balance of the generation
from sources less polluting than fossil fuels Approximately seven companies, Including
Southern California Edison, offer a range of certified Green-e logo electricity products Staff
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proposes that any potential supplier of green energy, at a minimUm, be Green-e certified
By chOOSing to purchase green electriCity, the City would be redlrectmg $2 3 million
annually to companies that contract directly With renewable generators who Will put enough
power mto the electriC power gnd to match the City'S electnclty needs.
Upon CounCil approval of the recommendations In thiS staff report, a request for proposal
Will be Issued to all Interested green electriCity suppliers Staff Will then return to CounCil
With an award recommendation based upon the best proposal received It IS anticipated that
the proposal soliCitation, review and selection process Will take approximately three (3)
months Staff Will also qUickly Implement the community needs assessment surveYing as
descnbed above
In consultation With the City Attorney's Office, It has been determined that the green
electriCity procurement process should be pursued via an RFP rather than formal bids
ThiS process encourages a broad response from qualified suppliers and IS consistent With
the competitive bid prOVISions of the Municipal Code In that pricing, reliability, and
performance conslderatlons associated With the selection of a green electriCity supplier
makes It infeaSIble to adhere strictly to a lowest bid
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Englneenng DIVISion for pnontlzlng and reporting on activIties to City Council, the City
Manager's Office and to citizen groups affected by the work of this divIsion
ISO requires an automated Desktop Computer Equipment Replacement Program to assist
In the maintenance of Its database To acquire replacement computers on a timely basIs
and minimiZe replacement costs, a lease-versus-buy analysIs will be performed and
procurement procedures developed
A Request for Proposal (RFP) process was undertaken to select a firm to provide these
services RFP's were distributed to SIX (6) firms and the City received one response from
Pollnow and Associates The other five (5) firms were contacted regarding the non-
response Two of the firms were not Interested In the proJects, and the other three
determined that they are not qualified to perform the work
A selection team of City staff reViewed and evaluated Pollnow and Associates' proposal
based upon specific cntena which Included, but not limited to the firm's speCialized
training, expenence With Similar proJects, the reasonableness of proposed fees, and the
quality of Similar work previously performed for the City and other clients Pollnowand
Associates has consistently provided high quality consulting services and accurate cost
estimates, and has an excellent working relationship With City staff
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Budget/Fiscal Impact
The proposed services will be provided by Pollnow and Associates for an amount not to
exceed $228,020 and will be completed prior to June 30, 2000 The following IS a
breakdown of the yearly costs to be charged to each account In FY 1998-99, and the same
amounts Will be charged to these accounts In FY 1999-00
Fleet Management DIVISion 54-500-461-00000-5506-00000 S 12,500
Informatton Systems DIVISion 01-110-223-00000-5506-00000 S 6,760
Maintenance Management 01-710-481-20097 -8900-99086 $ 8,700
DIVISIO n 01-500-481-00000-5506-00000 $ 21,840
01-500-421-00000-5506-00000 $ 22,500
01-500-451-00000-5506-00000 $ 25,200
Traffic Management DIVISion 01-210-416-00000-5506-00000 $ 16,510
Total $114,010
Recommendation
It IS recommended that the City Council authorize the City Manager to negotiate and
execute a two-year contract wIth Pollnow and Associates for $228.020 to provide
consulting services
Prepared by Craig Perkins, Environmental & Public Works Management Director
Renee COWhlg, MaIntenance Manager
Suzanne Fnck, Planning & CommuOlty Development Director
Jory Wolf, InformatIon Systems DIvISion Manager
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