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SR-502-009 (6) EPWM: \Don\Staff Reports In Process\9_13\Environ.doc Council Meeting: September 13, 2005 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Professional Services Agreement with Environ International Corporation to Provide Consultant Services in Conjunction with the Restoration of Drinking Water Production from the Charnock Well Field Introduction This report recommends that the City Council authorize the City Manager to negotiate and execute a professional services agreement with Environ International Corporation, in an amount not to exceed $4,889,915 and approve contingency funds in the amount of $977,983 (20%), to provide field 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. 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 restore the resource. The Charnock Engineering Committee (CEC), comprised of one 1 City representative 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 field consulting services contractor with experience in groundwater monitoring, hydrogeology, and data management. The field consulting services contractor will provide technical oversight and other services prior to the construction of a water treatment facility, for the collection and maintenance of groundwater monitoring data for wells and piezometers in the Charnock sub-basin. Eleven responsive proposals were received and rated by the CEC. The top rated firm was interviewed by the CEC. Factors considered were: technical competence and groundwater monitoring experience, staffing capability, project approach and planning, past performance record, quality control, cost control and reporting, and jobsite safety record. The CEC recommends Environ International Corporation as the most qualified firm. The CEC recommends a 20% contingency for this contract to ensure that all desired work can be completed expeditiously. All contract costs are paid for by the settling oil companies. The selected firm will obtain all permits and access necessary to monitor and sample groundwater monitoring wells, generate required work plans, measure groundwater elevations periodically, collect and analyze groundwater samples, provide quarterly reports of analysis, manage and update groundwater monitoring databases, and 2 provide hydrogeological support as requested by the CEC. Any groundwater monitoring procedure used will meet or exceed all state and federal water quality requirements. Budget/Financial Impact The total cost of these services over a five year period is not to exceed $5,867,898 including contingency. Funds required are: Contract $4,889,915 Contingency $977,983 Total $5,867,898 Funds in the amount of $5,867,898 are available in account C050973.555060, ?Charnock Water Treatment Plant.? Recommendation Staff recommends that the City Council authorize the City Manager to negotiate and execute a professional services agreement in an amount not to exceed $5,867,898 including contingency, with Environ International Corporation for field consulting services to the City and Charnock Engineering Committee. Prepared by: Craig Perkins, Director of Environmental & Public Works Management Kathryn Vernez, Assistant to the City Manager Gil Borboa, Utilities Manager Anthony Antich, P.E., City Engineer Reference Contract No. 8503 (CCS). 3