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SR-040808-1E~~~ c;cvor City Council Report Santa Monica' City Council Meeting: April 8, 2008 Agenda Item: 1Er To: Mayor and City Council From: Joan Akins, Acting Director -Environmental and Public Works. Management Subject: Contract for Groundwater Remediation Services at the Big Blue Bus Yard and Corporate Yard Recommended Action Staff recommends that the City Council: 1. authorize the City Manager to negotiate and execute a contract with ICF International for groundwater remediation services at the Big Blue Bus Yard (BBB) in an amount not to exceed $745,100 for up to a 5 year term; and 2. authorize the City Manager to negotiate and execute a contract with ICF International for groundwater remediation services at the Corporate Yard in an amount not to exceed $1,371,983 for up to a 5 year term; and 3. appropriate additional $42,418.98 for FY 07/08 in account 0010020.589000. Executive Summary The City employs the services of consultants to provide environmental assessment, remediation, and monitoring of City owned contaminated soils and groundwater. Provided the current level of remediation continues at the BBB site, it is likely that the Los Angeles Regional Water Quality Control Board (Board) will issue the City a letter of no further action for the site within the next 12 months. In addition, the Board has approved a Remedial Action Plan (RAP) for the Corporate Yard site that will allow the City to begin extracting groundwater from the Olympic Well Field Sub Basin to provide drinking water to its residents. The difference between the cost of City-produced water and the cost of purchasing water from the Metropolitan Water District will offset much of the cost of the remediation efforts at the Corporate Yard site. Continued remediation of these two City owned sites will result in significant economic and environmental benefits for the City, its residents, and the surrounding environment. 1 The current contracts with ICF International for environmental remediation services at the Corporate Yard and BBB expired on February 28, 2008. Anew competitive process was conducted in late 2007. Staff reviewed the eight proposals received and ICF was recommended to provide continued environmental services at both locations for an additional three years with two one year options. Staff does not anticipate there being any further expenses until the new contracts are in effect. Background As part of ongoing operations, the City maintains fueling facilities and underground storage tanks at the Corporate Yard and Big Blue Bus Yard. As a result of these fueling operations, spills and leaks have occurred in the past which require assessment and cleanup. This work is conducted under the oversight of the Board. The City and its consultants have been working diligently since 1987 to cleanup both sites. The City has relied on ICF International to provide the following services at these sites: site assessment and investigation; design, installation, operation, and maintenance of groundwater extraction and treatment systems requiring sampling, testing, purging, and quarterly reporting on a network of soil borings and groundwater monitoring wells located at both sites; installation and operation of soil vapor extraction and bioventing systems to remove hydrocarbons from the soils; design, installation, and operation of air/OZ barrier systems to remove methyl tertiary-butyl ether (MTBE) and separate phase petroleum hydrocarbons from the groundwater; removal and replacement of underground storage tank fueling systems; development of best management practices for City soil excavation projects; groundwater extraction and treatment systems; and environmental assistance with reviewing and analyzing associated off-site reports, participation in meetings, and on-site field activities as required. The consultants expect to obtain a closure letter for the BBB facility on behalf of the City within the next year. In order to receive this letter of no further action, the City must complete all groundwater monitoring and investigation, decommission all unnecessary monitoring wells, and submit a final closure report for the site. Future actions planned for the Corporate Yard involve further stabilization of the existing MTBE plume with the 2 installation of an ozone barrier system designed to prevent the further downgradient migration of the MTBE impacted groundwater plume and to reduce the concentrations of MTBE in the groundwater. This system will also allow the City to begin extracting groundwater from the Olympic Well Field Sub Basin to provide drinking water to its residents. On September 12, 2000, the City Council approved funding in the amount of $2,207,233 for Contract #127CD with ICF Consulting to conduct environmental investigation and remediation services at the Airport, BBB, and Corporate Yard. On March 11, 2003 the City Council approved a contract modification in the amount of $230,000 with ICF Consulting for additional environmental services at the Corporate Yard. On January 13, 2004, the City Council approved another contract modification in the amount of $341,370 to extend the existing agreement associated with environmental investigation and remediation services at the BBB and Corporate Yard. On September 28, 2004, the City Council approved a contract modification in amount of $54,990 for environmental assessment and remediation activities at the Corporate Yard. On November 9, 2004, the City Council approved a three year contract with ICF Consulting for soil and groundwater environmental assessment and remediation services in the amount of $804,516 for Contract #8411 (CCS) for the Corporate Yard and $1,273,977 for Contract #8412 (CCS) for the BBB. To date, the contracts with ICF Consulting total $4,912,086 for the three remediation projects. Discussion Currently the Board requires the City to sample a network of monitoring wells at both sites, and submit quarterly reports describing the hydrologic conditions and progress being made towards remediation. The City has reached significant milestones towards lowering the presence of contamination in both the soils and groundwater. Some of the contaminants thus far identified include diesel, total petroleum hydrocarbons as 3 gasoline, benzene, toluene, ethylbenzene, xylenes, chlorinated volatile organic compounds, trichloroethene, hydraulic oils, and methyl tertiary-butyl ether. The proposed contracts with ICF Consulting will provide continued environmental assessment and remediation services at the City's Corporate Yard and Big Blue Bus Yard. The work at the Corporate Yard is expected to continue at least through Fiscal Year 2013-2014, and the work at the BBB is expected to be completed in Fiscal Year 2009-2010. Due to the duration of the projects, staff proposes that the contracts remain in effect for three years, with two additional one year options for a fourth and fifth year. Contractor/Consultant Selection Proposals were originally solicited from seventeen consulting firms with demonstrated expertise in the necessary technical disciplines. A notice of the request for proposal was placed in the Santa Monica Daily Press and a posting was placed on the City's website. A review committee was formed consisting of staff from the Environmental Programs Division, Big Blue Bus Department, Civil Engineering and Architecture Division, and Water Resources Division. Of the eight bids received, staff selected four proposals for review by the committee. Based upon ICF's familiarity and history with these sites, exceptional ability to coordinate with City staff and accommodate City schedules, high level of integrity, exceptional accuracy and quality of work, and competitive pricing, the committee unanimously determined that ICF Consulting would. best be able to deliver the professional and time sensitive services required by the City. The recommended authorization includes the contract amount plus a 10% contingency. A contingency of this amount is recommended due to the variable changes in field conditions, contaminant distribution, and because regulatory requirements often compel immediate response by the City. 4 Financial Impacts & Budget Actions The annual on-going costs for operations, maintenance, and repair at the Corporate Yard are approximately $150,000. There is a one time cost of $497,559 for designing, constructing, and installing the ozone sparging barrier system proposed in the Remedial Action Plan for the Corporate Yard. The annual costs for operations, maintenance, repair, and reporting at the BBB are approximately $135,000. Groundwater monitoring and remediation costs for the BBB are not anticipated to continue past Fiscal Year 2009-2010. The total annual cost for all work at the corporate yards is $274,396.60, with 70% of the cost ($192.077.62) to be paid from the Underground Tank Management CIP Account 0250020.589000 (Water Fund) and 30% of the cost ($82,318.98) to be paid from the Underground Tank Management .CIP Account 0010020.589000 (General Fund). Adequate funding is currently available in account 0250020.589000 to cover these costs. Currently $39,900 is available in account 0010020.589000. Staff requests that Council appropriate an additional $42,418.98 for FY 07/08 in account 0010020.589000 to make up the shortfall. Funds will be requested for future years in the amount of $82,318.98 per year in account 0010020.589000 through the CIP budget process. Funds for the scope of services at the Big Blue Bus Yard are available in the amount of $149;020 per year in the Big Blue Bus Fund Account 0410107.589000. Prepared by: James Conway, Sr. Environmental Analyst Approved: Joa~"Akins, Acting Director Environmental and Public Works Management Department Forwarded to Council: P. ont Ewell Manager 5 Reference Contract Nos. 8913 (CCS) and 8914 (CCS).