SR-022608-1Dfir
City of
Santa Monica
City Council Report
City Council Meeting: February 26, 2008
Agenda Item: !-
To: Mayor and City Council
From: Craig Perkins, Director -Environmental and Public Works Management
Subject: Design-Build Agreement for the Charnock Well Field Restoration Project
Recommended Action
Staff recommends that the City Council:
1. authorize the City Manager to negotiate and execute aDesign-Build Agreement for
the preconstruction services for the Charnock Well Field Restoration Project with
Black & Veatch Corporation for the amount not to exceed $4,300,000; and
2. authorize the City Engineer to issue any necessary change orders to complete
additional work within budget authority; and
3. appropriate $4,300,000 from the Charnock Fund Balance into Account No.
0050878.589600.
Executive Summary
In 1996, the City shut down five groundwater production drinking water wells located in
the Charnock Well Field due to the presence of fuel additive methyl tertiary-butyl ether
(MtBE) in the groundwater. To restore the City's drinking water supply, staff
recommends contracting with Black & Veatch Corporation to design and construct a
treatment facility at the Charnock Well Field and to design and construct upgrades to
the Arcadia Water Treatment Plant. The City will be able to use groundwater to
produce drinking water and reduce the City's dependence on imported drinking water
after completion of these improvements.
Staff will return to City Council during design development for approval of a Guaranteed
Maximum Price (GMP) Amendment for the construction of the improvements. This
project is funded by a Settlement Agreement. Funds for the preconstruction services
are available from Charnock Fund Balance.
1
Background
The City of Santa Monica's community water system directly serves all residents,
businesses and visitors. Historically, the City utilized local groundwater for a large
portion of the City's drinking water supply. All five City water wells at the Charnock Well
Field were shut down in 1996 due to MtBE contamination from leaking underground
gasoline storage tanks and pipelines owned by various oil companies. The Metropolitan
Water District supplies approximately 80% of the City's drinking water, and the
remaining 20% is supplied by other local groundwater wells, which the City owns and
operates. The purchased water from Metropolitan Water District is blended with the
water from the City's wells and is pumped to the Arcadia Water Treatment Plant prior to
distribution to the public through water transmission mains.
Following several years of protracted interactions with the oil companies responsible, a
comprehensive settlement agreement was reached in December 2003. The terms
included in the settlement agreement between the City and the responsible parties
stipulated the formation of a Charnock Engineering Committee to coordinate and direct
the design, construction, and operation of a treatment facility to restore the Charnock
Well Field. The Charnock Engineering Committee was created in January 2004. In
December 2006, a subsequent Settlement Agreement gave the City of Santa Monica
sole oversight and management of the restoration of the Charnock Well Field.
Thereafter, a methodology for the restoration of the Charnock wells was developed by
City staff which accelerates the design, construction, and operation of an MtBE
treatment facility. It is anticipated that water from the new treatment facility will be
delivered to the community by the end of 2010.
Discussion
In December 2006, the City of Santa Monica assumed full control of restoring the
Charnock Well Field through a new settlement agreement with the oil companies. It is
proposed to use aDesign-Build project delivery method to construct a treatment facility
2
at the Charnock Well Field and construct upgrades to the Arcadia Water Treatment
Plant.
A Preliminary Design Report for the Charnock Well Field Restoration Project was
completed by the .firm, Komex, in July 2007. This report recommended a treatment
system consisting of filtration with granular activated carbon to remove the MtBE from
three contaminated wells. The treated groundwater will be combined with water
pumped from two clean wells and the total flow will be pumped to the Arcadia Water
Treatment Plant for final treatment and distribution. Final treatment system upgrades
necessary at the Arcadia Water Treatment Plant include softening, disinfection and
fluoridation.
Contractor/Consultant Selection
In September 2007, the solicitation process began with a Request for Proposals (RFP)
to fourteen (14) companies for Design-Build Services followed by a Notice of Inviting
Proposals for the Design-Build Services, published in the Santa Monica Daily Press and
posted on the City's website. A job walk was then scheduled for October 4, 2007, of the
Treatment Plant where twelve (12) companies were represented. On October 30, 2007,
Black & Veatch Corporation, CH2M HILL, Inc., and Tetra Tech, Inc. submitted proposals
for the Design-Build Services.
A selection committee comprised of staff from Environmental and Public Works
Management Department reviewed each proposal. The selection criteria included
groundwater restoration experience; Design-Build experience; acceptance of contract
terms; bond and insurance capacity; claims and litigation history; safety record; depth of
services; project approach; risk allocation; staff qualifications and experience; project
manager experience; responsiveness; ability to deliver the project on time and on
budget; creativity and flexibility; community awareness; and regulatory knowledge. The
selection committee reviewed the proposals based on the selection criteria
requirements.
3
Black and Veatch Corporation's proposal included a comprehensive work plan and
implementation schedule to deliver the project ahead of schedule. Their approach
included a 90-day action plan to be implemented at the beginning of the project to
expedite the completion of the improvements. Black and Veatch Corporation's
approach will reduce dependency on imported water earlier, resulting in $350,000 to
$400,000 savings per month to the City. Black and Veatch Corporation proactively met
with regulatory agencies during the proposal process to explore recommendations for
various permit compliance issues that will be necessary to produce drinking water.
Lastly, Black and Veatch Corporation's proposed preconstruction services fee was
approximately 35% less other than proposals.
Black & Veatch Corporation has extensive experience in water treatment projects using
the Design-Build project delivery method. Three (3) Design-Build projects that were
successfully completed by Black and Veatch Corporation are the Lake Pleasant Water
Treatment Plant, the Foothill Pump Station and the Northeast Bakersfield Membrane
Facility. References for these projects were contacted and indicated that the services
provided by Black & Veatch Corporation were professional, within budget and on
schedule. Additionally, Black & Veatch Corporation's staff proposed on this Project has
successfully completed work on various City of Santa Monica projects, including
Parking Structure No. 4 Seismic Retrofit; Water Main Replacement Project; Centinela
Avenue Water Quality Improvement Project; Santa Monica Urban Runoff Reclamation
Facility project; and the Colorado Ocean Relief Sewer Project.
Based on the review of the proposals and interviews with the firms, the selection
committee unanimously recommends entering into aDesign-Build Agreement with
Black & Veatch Corporation for the Charnock Well Field Restoration Project.
4
Financial Impacts & Budget Actions
Staff is requesting that additional funds in the amount of $4,300,000 be appropriated
from the Charnock Fund Balance into Account No. 0050878.589600 "Charnock Well
Field Restoration Project" to proceed with the project.
Prepared by: Spiros Lazaris, P.E., Civil Engineer
Approved:
Forwarded to Council:
~ , ~ ~,
Craig Perkin P. m t Ewell
Director -Environmental and Public Cit anager
Works Management Department
5
CHARNOCK WELL FIELD RESTORATION PROJECT
FUTURE MILESTONES
City Council Awards Pre-Construction Services Contract February 2008
• City Council Awards Owner's Agent/ Peer Review contract May 2008
City Council Adopts: July 2008
Mitigated Negative Declaration and Mitigation Monitoring Plan
• City Council Awards Guarantee Max Price Contract May 2009
Start Construction Design-Built Charnock May 2009
Well water delivered to residents Dec. 31, 2010
Updated 2-20-08
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~r Supplemental FEB z ~ zoos
°tY°f City Council Report
Santa Monica
City Council Meeting: February 26, 2008
Agenda Item: ~ - ~
To: Mayor and City Council
From: Craig Perkins, Director-Environmental and Public Works Management
Subject: Preconstruction Services for the Charnock Well Field Restoration Project
Executive Summary
This supplemental report provides Council with additional information about the scope
of the work proposed for the preconstruction services that would be performed by Black
& Veatch Corporation and the timing for future Council consideration of the construction
of the improvements. Black & Veatch Corporation will only conduct enough design work
to complete the environmental review process. Subsequent Council authorization will
be required once the environmental review is finalized.
Discussion
As detailed in the initial staff report, staff seeks Council authorization for the City
Manager to negotiate and execute aDesign-Build Agreement for the preconstruction
services for the Charnock Well Field Restoration Project with Black & Veatch
Corporation. The cost of these services is not to exceed $4,300,000. The specific
services that Black & Veatch Corporation would perform as part of these
preconstruction services would include: geotechnical reports, preparation of feasibility
studies for LEED certification, water quality testing, well assessment, preparation of
feasibility study for solar or other green energy, coordination with the City's California
Environmental Quality Act (CEQA) consultant to complete CEQA clearance, obtaining
necessary permits, and undertaking design work for both the City's Charnock and
Arcadia facilities.
The proposed project will be subject to environmental review. This environmental
review will be presented to Council in approximately July 2008. Black & Veatch
Corporation will not commence its full design work until after environmental review is
completed and Council authorization is obtained. Staff anticipates returning to Council
in May 2009 for further Council consideration of this project, including establishing a
Guaranteed Maximum Price (GMP) for project construction. If approved, actual
construction of the project would commence shortly thereafter.
Prepared by: Spiros Lazaris, P.E., Civil Engineer
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Approved: Forwarded to Council:
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Craig Perkins) ~'P.,L~a~ont EN
Director -Environmental and Public Ci Manager
Works Management Department
Reference Contract
No. 8892 (CCS).