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~;tYof City Council Report
Santa Monica
City Council Meeting: March 24, 2009
Agenda Item:. ~~~
To: Mayor and City Council
From: Lee Swain, Director, Department of Public Works
Subject: Charnock Well Field Restoration Project
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an amendment to the Design-Build Agreement No. 8892 (CCS) with Black and
Veatch .Construction, Inc., to purchase water treatment equipment and provide
demolition services in an amount not-to-exceed $4,600,000 for a revised total contract
amount not-to-exceed of $8,900,000.
Executive Summary
The Charnock Well Field Restoration Project is intended to restore the Charnock Well
Field to produce drinking water by December 31, 2010. In order to meet the schedule, it
is imperative that long lead .time items such as the water treatment equipment be
procured to ensure timely delivery. In addition, demolition of limited facilities at the
existing water treatment plant is required to prepare the site for future construction.
Staff recommends an amendment to the Design-Build Agreement with Black and
Veatch Construction, Inc., for an amount not-to-exceed $4,600,000 to procure long lead
time water treatment equipment and demolish existing structures at the existing water
treatment plant, allowing the project to move forward expeditiously. Staff will return to
the City Council in May 2009 to request authorization of the Guaranteed Maximum Price
(GMP) amendment for the balance of the project construction.
Background
The Charnock Well Field Restoration Project involves implementation of a water
treatment system to remove groundwater contamination from the Charnock
groundwater sub-basin and restore this resource as a water supply for the City. The
treatment system will use filtration with granular activated carbon to treat water from the
three contaminated wells at the well field. The project also provides upgrades to the
existing water treatment plant including construction of new systems for drinking water
disinfection, softening and fluoridation.
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On February 26, 2008, City Council authorized the City Manager to negotiate and
execute the Design-Build Agreement to Black and Veatch Construction Inc., for pre-
construction services for the project. On November 25, 2008, the City Council certified
the Final Environmental Impact Report and adopted a resolution making necessary
California Environmental Quality Act findings and approving a Mitigation Monitoring
Program. Following certification of the Final Environmental Impact Report, the Design-
Builder proceeded with preliminary design as part of the pre-construction services of the
agreement. Development of the construction plans and specifications for the project is
approximately 50% complete.
Discussion
To meet the project schedule, it is necessary to purchase long lead time equipment
items and demolish unneeded facilities at the plant site. According to the agreement,
the Design-Builder is required to identify and procure long lead time items. Reverse
Osmosis (RO) equipment provides softening of the drinking water and acts as an
additional barrier for the removal of contaminates and has been identified as a long lead
time item. According to the current project schedule, .the fabrication of the RO
equipment must start in April 2009.. Therefore, it is necessary to procure the RO
equipment prior to the City Council authorizing the GMP amendment for construction of
the project. The GMP amendment for construction of the project is anticipated in May
2009. Additionally, construction of the new facilities at the water treatment plant
requires that several onsite structures be demolished. These facilities are currently not
in use as the majority of the City's drinking water is .currently supplied by the
Metropolitan Water District. Clearing the site prior to the execution of the GMP
amendment will allow the construction of new facilities to begin immediately upon
execution of the amendment in order to expedite the project.
Financial Impacts & Budget Actions
Costs to procure the long lead time items and demolition services are not- additional
costs, but rather costs that would _ be incurred later on in the project. Funds in the
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amount of $4,600,000 are available from the Charnock Fund Balance in Account No.
0050878.589600 to proceed with the project.
Prepared by: Spiros Lazaris, Civil Engineer
Approved: Forwarded to Council:
Lee E. Swain, Director mont v
Department of Public Works ~ Manager
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