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SR-502-009 (2) EPWM/JH:JH:F:\ADM\STAFFRPTS Council Meeting: October 8, 2002 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Extension of Professional Services Contract 7816 (CCS) with KOMEX H0 Science, Inc. for Charnock Well Field Technical 2 Oversight INTRODUCTION This report recommends that the City Council authorize the City Manager to extend the professional services contract with KOMEX H0 Science, Inc. 2 (KOMEX) through June 30, 2003, in an amount not to exceed $715,000, for Charnock well field technical oversight. 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. 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 1 City technical and legal staff. In 1997, an interim settlement agreement between the City and the 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. 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. DISCUSSION The contract for technical oversight for Charnock represents a continuation of an existing contractual relationship with KOMEX which has provided services relative to the City?s MTBE contamination crisis. Komex principals and staff involved provide technical expertise and have developed an understanding of Santa Monica?s unique hydro-geologic characteristics since the problem was initially discovered. Additionally, Komex possess an institutional knowledge of the water division?s operations, as well as background of the current situation. For these reasons, staff has determined that the most efficient and cost effective 2 approach is to continue the Komex contract. It is proposed that the contract term end June 30, 2003, and be reviewed at that time. Budget/Financial Impact Funds are available at account C25038603.589000. Recommendation Staff recommends that the City Council authorize the City Manager to extend the contract with KOMEX for a second year in an amount not to exceed $715,000 to provide technical oversight services for the remediation of the Charnock well field. Prepared by: Craig Perkins, Director of EPWM Gil Borboa, Utilities Manager Joseph Lawrence, Assistant City Attorney Jean Higbee, Utilities Business Supervisor 3