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SR-502-011 (3) EPWM:CP:AA:\\Staff Reports In Process\6_14\GeoTrans.doc Council Meeting: June 14, 2005 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Professional Services Agreement with GeoTrans, Inc. and Appropriation of Funds for the Agreement Introduction This report recommends that the City Council authorize the City Manager to negotiate and execute a professional services agreement with GeoTrans, Inc., in an amount not to exceed $1,571,076 plus contingency in the amount of $314,200 (approximately 20%), to provide groundwater modeling consulting services to the City and the Charnock Engineering Committee, formed as part of the Settlement Agreement with Shell Oil Company, Chevron U.S.A. Inc., Texaco, and Exxon Mobil Corporation to restore the drinking water production from the Charnock Well Field. This report also recommends that Council appropriate funds for the agreement. Background The Charnock groundwater sub-basin is an important source of drinking water for Santa Monica. The City shut down its five drinking water wells located in the Charnock Well Field in 1996 due to the presence of MtBE. In accordance with a Court-approved Settlement Agreement, the City and Shell Oil Company, Chevron U.S.A. Inc., Texaco, and Exxon Mobil Corporation (the Settling Oil Companies) have agreed to construct a treatment facility in order to produce drinking water from the well field and ultimately 1 restore the resource. The Charnock Engineering Committee (CEC), comprised of one City and one representative of the Settling Oil Companies, was formed in accordance with the Court-approved Settlement Agreement to oversee the planning, design, construction, and operation of the treatment facility. Discussion On November 19, 2004, the City issued a request for qualifications on behalf of the CEC to engage a groundwater modeling consulting services contractor with experience in complex groundwater regimes. The groundwater modeling consulting services contractor will be tasked with reviewing and evaluating existing groundwater models as provided by the CEC, and recommending a comprehensive groundwater flow and transport model for the Charnock sub-basin. Eleven responsive proposals were received and rated by the CEC. The top three rated firms were interviewed by the CEC to determine the most qualified firm. Factors considered were: technical competence and experience in groundwater flow and transport modeling, staffing capability, past performance record, quality control, cost control and reporting, and jobsite safety record. The CEC selected GeoTrans, Inc., as the most qualified firm. GeoTrans, Inc. will provide an engineering study of how pollutants move in the groundwater and will provide an estimation of how long it will take for a pollutant to move through the soil given the rate of groundwater recharge, rate of groundwater withdrawal, the soil conditions and permeability factors of the soil and other factors. This study is necessary to meet Department of Health Services requirements. 2 GeoTrans, Inc. will also establish design criteria for treatment facility and predict achievement of cleanup goals and project termination. Upon consensus within the CEC, the firm may facilitate the identification of model deficiencies, recommendation of model improvements, selection of the most appropriate model, and development of an effective and efficient future modeling plan. Any groundwater modeling solution selected will meet or exceed all state and federal water quality requirements. Budget /Financial Impact The total cost of these services is not to exceed $1,885,276, including contingency. Funds required are: Contract: $1,571,076 Contingency: $ 314,200 Total $1,885,276 Funding for this contract is provided entirely by the settling oil companies pursuant to the Settlement Agreement. The 20% contingency amount was requested by the oil companies. Funds in the amount of $1,365,397 are available at account C050973.555060. An additional appropriation of $519,879 to account C050973.555060 is required. Recommendation Staff recommends that the City Council: 1) Authorize the City Manager to negotiate and execute a professional services agreement in an amount not to exceed $1,571,076, plus a contingency of 3 $314,200, with GeoTrans, Inc., for groundwater modeling consulting services to the Charnock Well Field; and 2) Appropriate funds as set forth in the Budget/Financial Impact section. Prepared by: Craig Perkins, Director, Environmental & Public Works Management Anthony Antich, P.E., City Engineer Gil Borboa, Water Resources Manager Kathryn Vernez, Assistant to the City Manager ? Government Relations Reference Contract No. 8482 (CCS). 4