sr-051209-1g~~r
~;tYo, City Council Report
Santa Monica
City Council Meeting: May 12, 2009
Agenda Item: l-'G-i
To: Mayor and City Council
From: Dean Kubani, Director, Office of Sustainability and the Environment
Subject: Groundwater Remediation Services at the City Corporate Yards,
Environmental Assistance with the Proctor & Gamble/Gillette site (P&G)
and Services Related to the Olympic Sub-basin Investigations.
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to modify contract 8914 (CCS) with ICF International
for a total not to exceed amount of $1,729,883; and
2. Appropriate an additional $113,015 for FY08/09 in account 0250020.589000.
3. Authorize the City Manager to modify contract 8731 (CCS) with Worley Parsons
Komex for a total amount not to exceed $285,900.
Executive Summary
On April 8, 2008, Council awarded a contract to ICF International for groundwater
remediation services at the City Corporate Yard (CCY) and to provide environmental
assistance with the Proctor & Gamble/Gillette (P&G) site for an amount not to exceed
$1,371,983 within a 5 year term. Due to a staff miscommunication budget authority was
authorized at $274,396 for each year of the contract, even though the expenses for
Year One of the contract were expected to be much higher than for subsequent years.
The project has exhausted its budget authority for FY08-09. The investigation of the
former P&G/Gillette site has rapidly escalated requiring the City to rely heavily on ICF's
services while attempting to resolve the dispute over contaminated drinking water in the
Olympic Sub-Basin. The City currently owes ICF $404,510 for services .performed to
date. Staff is requesting an increase in contract authority to a total not to exceed amount
of $1,729,883 for the 5 year contract with ICF. In addition to the increased contract
authority, staff is requesting an additional appropriation of $113,015 from the Water
Fund for FY 08/09 to cover the increased environmental contract costs for the CCY
project and for the P&G site; funds in the amount of $430,615 are available in account
1
0250020.589000 and funds in the amount of $1,535 are available in account
0010020.589000 to fund the additional expenses in FY08-09.
Under a separate contract, additional work requested by the City was completed by
Worley Parsons Komex (Komex) relative to the Olympic sub basin investigations
resulting in Komex exceeding its contract authority by $6,649. Staff is also requesting a
modification in the amount of $6,649 for the Komex contract.
Background
Currently the Los Angeles Regional Water Quality Control Board (tARWQC6) requires
the City to sample. a network of monitoring wells at the CCY and submit quarterly
reports describing the hydrologic conditions and progress being made towards
remediation of contamination: The City has reached significant milestones towards
lowering the presence of contamination in both the soils and groundwater.
The City employs the services of consultants to provide environmental assessment,
remediation and monitoring of soils and groundwater on City property. Presently, the
City is implementing a Board mandated Remedial Action Plan (RAP) for the CCY which
requires the installation of an ozone barrier system across Bergamot station and the
CCY. Once in place the ozone barrier system will allow the City to increase
groundwater production from the Olympic Well Field Sub Basin to provide drinking
water to its residents. ICF has been working since May 2008 on the barrier system and
installation is currently 75% complete. Subsequent years will involve mostly monitoring
of the system. 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 CCY site. Continued remediation of this City owned site will
result in significant economic and environmental benefits for the City, its residents and
the surrounding environment.
Discussion
The previous staff report on April 8, 2008 regarding the ICF contract established
contract authority for an amount not to exceed $1,371,983 and annual budget authority
2
for years 1 through 5 at $274,397. The actual funds necessary to complete work in year
1 are $819,561 because the first phase of the project involves the design and
installation of the ozone barrier system. The cost for years 2 through 5 will be less
because the scope of work during those years only involves operation and maintenance
of the system. There is currently $432,150 available in Account(s) 0250020.589000
(Water Fund) and 0010020.589000 (General Fund) to cover outstanding invoices but
insufficient funds to complete the remaining- tasks for FY 08/09. Staff is therefore
requesting an additional appropriation of $113,015 for FY 08/09 in order to continue to
progress and pay ICF.
An increase in the contract total is also being requested to include additional
construction costs for the Corporate Yards of $90,900 for the installation. of additional
wells for the ozone sparge barrier system and necessary trench work to connect the
new wells to the existing system. This work was identified in the course of monitoring
the project in the first year. The City has also required ICF to complete groundwater
modeling on the P&G site and some additional consultation -which will total
approximately $267,000. Staff is therefore requesting a revised total not to exceed
amount of $1,729;883 for the ICF contract to cover the additional construction costs and
the P&G site work.
Komex was retained for FY2007-2008 to provide technical consulting services
addressing groundwater contamination investigation and remediation services at the
Charnock well. field and the Olympic well field. Considerable effort was expended by
Komex in response to staff direction for additional analysis to comply with regulatory
orders placed by the tARWQCB. In order to prepare data analysis and reports in a
timely manner, Komex was instructed by the Water Resources Division to proceed,
acknowledging an overrun in the contract limit. Komex expended $6,649 in excess of its
contract authority under contract 8731 (CCS). Accordingly, a modification to the existing
professional services agreement in the amount of $6,649 is requested in order to pay
outstanding invoices and close out this contract. The total contract amount will
3
increase from $279,251 to $285,900:
Financial Impacts & Budget Actions
Funds in the amount of $430,615 are currently available in account 0250020.589000
and funds in the amount of $1,535 are available in account 0010020.589000 to partially
fund the increase in the ICF contract FY08-09. An additional appropriation in the
amount of $113,015 to account 0250020.589000 from the Water Fund is necessary to
cover the additional costs for FY08-09. Additional funding will be requested through the
annual CIP process to fund subsequent years of the contract and will be contingent
upon Council's approval.
Funds in the amount of $6,649 are available in account 25671.555060 for the additional
work performed by Komex on the Olympic well field services.
Prepared by: James Conway, Sr. Environmental Analyst
Approved:
forwarded to Council:
G~-t~i~
Dean Kubani V ~ a o~ri nt Ern
Director, Office of Sustainability and the ty Manager
Environment
4