SR-502-01
Council Meeting December 11, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Professional Services Contracts with KOMEX H0 Science, Inc. for Charnock
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Well Field Technical Oversight and H0R Consultants for Arcadia Well Field
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Technical Oversight related to MTBE Investigation, Assessment, and
Remediation, and Appropriate $489,000 from the Water Fund
INTRODUCTION
This report recommends that the City Council authorize the City Manager to negotiate and
execute professional services contracts with KOMEX H0 Science, Inc. (KOMEX) in an
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amount not to exceed $1,491,000 for Charnock well field technical oversight; and with
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H0R Consultants (H0R) in an amount not to exceed $120,000 for Arcadia well field
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technical oversight. All of the services provided by both consultants are related to MTBE
investigation, assessment, and remediation. This staff report also recommends that the
City Council appropriate $489,000 from the Water Fund.
BACKGROUND
Charnock Well Field
All five City water wells at the Charnock well field are shut down due to MTBE
contamination from underground gasoline storage tanks and pipelines owned by various
oil companies. In 1997, an interim settlement agreement between the City and the
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responsible parties stipulated that the City would be made financially whole with respect to
replacement water costs and technical oversight costs, while the companies responsible
for the contamination pursued the cleanup of the ground water. For the Charnock well
field, the City retained KOMEX in 1996 for the purpose of technical oversight of the
activities related to well field restoration. Among the tasks KOMEX performs on behalf of
the City are review of work plans and other correspondence, laboratory analysis,
interpretation of data, regulatory compliance and permitting review, preparation of
technical reports and presentations, and continuous coordination and communication with
City technical and legal staff.
In January 2000, the settlement agreement between the City and the Charnock
responsible parties expired. Pursuant to a September 1999 order from the U.S.
Environmental Protection Agency, the cost of water replacement continues to be funded by
the responsible parties; however, ongoing technical oversight costs are not included.
These technical oversight costs are presently borne entirely by the City.
Arcadia Well Field
The Citys two wells at Arcadia well field were shut down in 1996 due to contamination
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from leaking underground storage tanks. The restoration of the drinking water aquifer at
the Citys Arcadia well field has proceeded pursuant to a 1998 settlement agreement with
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Mobil. The agreement includes provisions for payment of replacement water, as well as
payment for the services of a City project reviewer. The project reviewer provides
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technical expertise on behalf of the City, in an oversight capacity, relative to all
remediation efforts at the site. This includes review of work plans and other
correspondence, laboratory analysis, interpretation of data, regulatory compliance and
permitting review, preparation of technical reports and presentations, and continuous
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coordination and communication with City technical and legal staff. The firm of H0R
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since 1998.
DISCUSSION
The contracts for technical oversight for both Arcadia and Charnock represent a
continuation of existing contractual relationships with two firms--KOMEX at Charnock and
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H0R at Arcadia--who have provided services relative to the Citys MTBE contamination
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crisis. The principals and staff involved at both firms provide technical expertise and have
developed an understanding of Santa Monicas unique hydro-geologic characteristics
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since the problem was initially discovered. Additionally, each of these firms possess an
institutional knowledge of the water divisions operations, as well as background of the
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current situation. For these reasons, staff has determined that the most efficient and cost
effective approach, at this time, is to continue the two contracts. It is proposed that the
contract terms would end June 30, 2002, and be reviewed at that time.
Budget/Financial Impact
An appropriation from the Water Fund of $489,000 is being requested at Account No.
C25038602.589000 for a total amount available of $1,844,560. The funds will be used the
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proposed Komex Contract ($1,491,000) and other miscellaneous costs associated with
the on-going investigation at the Charnock site.
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Funds are available at Account No. C250387.589000 for the proposed H0R contract of
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$120,000. Pursuant to an agreement with Mobil Oil, the City will be reimbursed for the
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H0R contract costs. Reimbursement funds are deposited at Revenue Account
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25671.402350.
Recommendation
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a contact with KOMEX, in an
amount not to exceed $1,491,000 to provide technical oversight services for the
remediation of the Charnock well field; and
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2. Authorize the City Manager to negotiate and execute a contact with H0R, in an
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amount not to exceed $120,000 to provide technical oversight services for the
remediation of the Arcadia well field, and
3. Appropriate $489,000 from the Water Fund to Account No. C250386.589000.
Prepared by: Craig Perkins, Dir. of Environmental and Public Works Management
Gil Borboa, Utilities Manager
Joseph Lawrence, Assistant City Attorney
Jean Higbee, Utilities Business Supervisor
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