SR-071310-1FCity Council Meeting: July 13, 2010
Agenda Item: ~ `" ~
To: Mayor and City Council
From: Susan Cline, Acting Director of Public Works
Subject: Operations, Maintenance, and Management Services (OMMS) for the
Charnock Well Field
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with Siemens Water Technologies Corporation in the amount of
$556,048 (including a 15% contingency) for the operations, maintenance, and
management services (OMMS) of the Charnock Well Field for two years with options for
subsequent renewals.
Executive Summary
The Charnock Well Field (Charnock) was contaminated by methyl tertiary-butyl ether
(MTBE) in 1996. The new treatment facility is scheduled to be completed by mid-
summer 2010. Staff recommends utilizing an OMMS contractor upon successful
completion and regulatory acceptance of the new treatment facility as the treatment
required at Charnock has. a limited duration of ten years. The OMMS contractor will
assume the responsibility of the operations and maintenance of the treatment facility at
Charnock with City staff supervision. Siemens Water Technologies Corporation is
recommended as the OMMS contractor at a cost of $556,048.
Background
In June 1996, the City's drinking water wells at Charnock were shut down due to the
detection of gasoline additive MTBE from the leaking underground gasoline storage
tanks and pipelines in the vicinity owned by various oil companies. Since then, the City
has been importing water from the Metropolitan Water District (MWD} to meet customer
demand while determining how to address the contamination of the Charnock sub-
basin. After reviewing many treatment options, staff determined the best approach
would be to treat the contaminated water at Charnock and pump it to Arcadia Water
Treatment Plant (Arcadia) for final treatment and distribution. On February 26, 2008
and Mav 26, 2009, Council approved and amended Agreement 8892 (CCS) with Black
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& Veatch Corporation for the design and construction of an MTBE treatment facility at
Charnock and upgrades to Arcadia. The settlements the City achieved in 2003 and
2006 with the oil companies would provide the funding for the project and the operation
and maintenance'of the new treatment facility.
Discussion
The new treatment facility at Charnock is near completion. The Charnock and Arcadia
facilities are scheduled to begin operation by fall 2010, subsequent to approval from the
California Department of Public Health (CDPH). The treatment facility at Charnock will
operate for approximately ten years until MTBE is no longer present in the City's
drinking water wells. Staff recommends that, upon successful completion and
acceptance of the new Charnock treatment facility by the City and CDPH, an OMMS
contractor assume the responsibility of operating and maintaining the facility with City
staff supervision. Staff and the OMMS contractor will work together to meet all
regulatory requirements. Staff will continue to operate and maintain the facilities at
Arcadia, the MWD connections, and the Charnock to Arcadia pipeline and booster
pumps.
Treatment at Charnock will be ceased and the facility will be decommissioned once the
MTBE contamination is eliminated. Until such time, however, staff believes the use of
an OMMS contractor is the most cost effective alternative to increasing City staff for a
limited term. Staff estimates that operating and maintaining the new treatment facility
using limited-term City staff will require a minimum increase of 1.5 full-time employees
to provide daily coverage as necessitated by the required treatment. Given that
coverage is required for each permanent employee during vacations, sick time, holidays,
and other absences, it is prudent to base the comparison of cost alternatives on the
basis of two full time equivalents. In contrast, operations by contract forces can be
accomplished with one full time operator, with support and supervision by existing City
staff, as an OMMS contractor will assume the additional responsibility of providing
coverage for any after-hour calls, weekends, and holidays on an as-needed basis. This
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alleviates the City from having to provide stand-by compensation to any permanent
staffing. Resident operators at the City's existing system at Arcadia are required to
remain at the Arcadia facility at all times while on duty and are not available to
physically investigate any after-hours alarms at Charnock. Cost savings will be
realized in utilizing contract operators as detailed in the annual cost comparison
presented below:
Contractor (1-FTE) In-House 2-FTE
Operations Hourly
Rate Annual Rate Hourly
Rate Annual Rate
Hourly Rate-Treatment
O erator
$77.00 $160,160 (2080 hrs)
$36.58 $152,172 4160 hrs
Hourl Rate incl. benefits --- --- $57.43 $238,908
Standby Pay (nts, wkends,
holidays) --- --- $4.57 $21 022 (4600 hrs)
Technical Oversight &
Mana ement Hourly
Rate Annual Rate Hourly ',
Rate Annual Rate
--- $81,600 --- ---
Hourl Rate-Admin. Anal st --- --- $37.64 $19,573 520 hrs
Hourl Rate incl. benefits --- --- $59.09 $30,727
Hourly Rate-Operator
Su ervisor
--- ---
$45.81 $9,528 208 hrs
Hourl Rate incl. benefits --- --- $71.92 $14,959
Hourly Rate-Treatment
Administrator
--- ---
$58.55 $12,178 208 hrs
Hourl Rate incl. benefits --- --- $92.39 $19,217
Total $241, 760 $324, 833
A two-year term is recommended for the OMMS contractor, with options for subsequent
renewals. At the conclusion of the initial two-year term, staff will have the opportunity to
evaluate actual costs of operation and reassess whether the addition of City staff is
preferable and cost effective.
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Contractor/Consultant Selection
On May 3, 2010, the City issued a Request for Proposals for an OMMS contractor.
Three proposals were received as follows:
Bid Amount
Bidder Per Year
Siemens Water Technologies Corporation $ 241,760
United Water Environmental Services, Inc. $ 520,600
Worley/Parsons Group, Inc. $ 397,790
The firms were .interviewed by staff from the Water Resources and Civil Engineering
Divisions and evaluated based on their qualifications and experience on similar projects.
Staff recommends Siemens Water Technologies Corporation as it has experience
operating and maintaining similar facilities throughout the country with quality results.
Financial Impacts & Budget Actions
The contract amount to be awarded to Siemens Water Technologies Corporation is
$556,048 for two years with options for subsequent renewals. $278,024 is included in
FY2010-11 budget at account number 05672.555060 Charnock Treatment Plant. The
remaining amount of $278,024 will be included in the FY2011-12 budget in the same
account number.
Prepared by: Gilbert M. Borboa, Jr., P.E., Water Resources Manager
Approved:
usa ~ne
Acting Director of Public Works
Forwarded to Council:
----~ _
Rod Gould
City Manager
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Reference Contract No.
9239 (CCS).