Loading...
SR-6-L (44) ~ lIS' (c 1>) F \EPWM\ADMI N\WPDOCS\ST AFFRPT\ADL998 Council Meeting October 13, 1998 0L 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 1 (oL 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 2 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 3 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 4 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 5 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 . 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 6 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 3 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 4