SR-502-011 (2)
EPWM:CP:GB
Council Meeting September 23, 2003 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Extension of Professional Services Contract 7816 (CCS) with
KOMEX HO Science, Inc. for Charnock Well Field Technical
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Oversight, and sole source contract with KOMEX H0 Science, Inc.,
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for performance of MTBE remediation Pilot Testing technologies.
INTRODUCTION
This report recommends that the City Council authorize the City Manager to
extend the professional services contract with KOMEX H0 Science, Inc.
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(KOMEX), through June 30, 2004, in an amount not to exceed $390,000 for
Charnock well field technical oversight. This staff report also recommends that
the City Council authorize the City Manager to negotiate and execute a sole
source contract with KOMEX in an amount not to exceed $1,370,000 for the
development and performance of MTBE remediation Pilot Testing, and waive the
competitive bid requirements. These contracts will be paid by the Water Fund.
BACKGROUND
Charnock Well Field Technical Oversight
All five City water wells at the Charnock well field were shut down in 1996 due to
MTBE contamination from underground gasoline storage tanks and pipelines
owned by various oil companies. In 1997, an interim settlement agreement
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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 an
administrative order from the U.S. Environmental Protection Agency, the cost of
replacement water continues to be funded by the responsible parties. The City
must bear continuing technical oversight costs. For the Charnock well field, the
City has retained KOMEX since 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.
MTBE Pilot Testing
The treatment process envisioned for MTBE remediation requires processes
currently unavailable at the City?s Arcadia Water Treatment Plant. Pilot testing of
the proposed processes (Advanced Oxidation Processes, Granular Activated
Carbon) and treatment trains (combinations of the unit processes) involves the
construction of a small-scale facility at the Charnock site, which will provide
information relative to the effectiveness and reliability of the processes to
individually and collectively remove MTBE and other contaminants from the
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source water.
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 since the problem was
discovered in 1996. Komex principals and staff provide technical expertise and
have developed an understanding of Santa Monica?s unique hydro-geologic
characteristics. Additionally, Komex possesses 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
approach is to continue the Komex contract. It is proposed that the contract
term end June 30, 2004, and be reviewed at that time.
Given Komex?s unique understanding of the problem and the City?s commitment
and determination to move forward in the design and development of an
appropriate MTBE remediation program, the proposed contract with Komex to
design, build, and operate a pilot testing facility at the Charnock site will provide
process efficiency and reliability testing, and confirm effectiveness of the unit
treatment processes. Municipal Code section 2.24.100(c) allows contractual
services to be made without advertising for bids if doing so would be to no avail
and cause unnecessary expense and delay.
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The City continues to aggressively pursue cost recovery from the responsible
parties, and the technical oversight and pilot testing costs should ultimately be
reimbursed by these companies.
In the event reimbursement is not achieved, the City has applied for funding
available from various state sources, including the Water Security, Safe Drinking
Water, Coastal and Beach Protection Act of 2002 (Proposition 50) and the
Drinking Water Treatment and Research Fund established in 1998. In the
absence of outside funding, the Water Fund will cover the cost of the pilot
testing. The proposed pilot testing program is projected to be completed by May
2004.
Budget/Financial Impact
Funds in the amount of $1,760,000 are available at Account No.
C25038604.589000 for the extension of the technical oversight contract and the
proposed pilot testing program
Recommendation
Staff recommends that the City Council:
1. Authorize the City Manager to extend the contract with KOMEX, through
June 30, 2004, in an amount not to exceed $390,000 to provide technical
oversight services for the remediation of the Charnock well field; and
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2. Waive competitive bid requirement and authorize the City Manager to
negotiate and execute a contract with KOMEX, in an amount not to
exceed $1,370,000 to provide design, construction, and operation of a
pilot testing facility.
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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