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sr-061411-3zCity Council Meeting: June 14, 2011 Agenda Item: 3-~ To: Mayor and City Council From: Dean Kubani, Director, Office of Sustainability and the Environment Subject: Modification of Contract No. 8914 with ICF International for environmental. assessment and remediation services. Recommended Action Staff recommends that the City Council: authorize the City Manager to negotiate and execute a modification to Professional Services Agreement #8914 in the amount of $674,410 with ICF International, a California based company, to provide environmental assessment and remediation services for a two year period beginning May 13, 2011 through May 13, 2013. This will result in a new five-year contract in the amount of $2,404,293 with ICF International to provide environmental assessment and remediation services. Executive Summary The City has. an existing contract with 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 $1,729,883. Additional funds totaling $674,410 are necessary to complete three additional environmental support items in the Olympic Sub Basin: 1. Additional- groundwater monitoring of select P&G wells and enhanced reporting requirements ($401,906); 2. Abandon and relocate monitoring wells associated with the CCY project ($116,678); 3. Assist the City with PRP settlement negotiations ($155,826). Staff recommends increasing the contract with. ICF to a total not to exceed amount of $2,404,293. Funds are available in the Water Fund. Background The City`s second largest drinking water aquifer is the Olympic Sub Basin (also referred to as the Olympic Well Field). The City recently won a $68 million settlement with P&G 1 for the widespread solvent contamination that is present in the Olympic Sub Basin This settlement culminated in the Regional Water Quality Control Board (RWQCB) issuing a Modified Cleanup and Abatement Order (CAO No. R4-2008-0034) on November 10, 2010 to P&G. P&G must continue to remediate the soil and shallow groundwater at the former Paper Mate manufacturing facility. However, as part of the settlement the City is charged with basin management and select groundwater monitoring activities to ensure the protection of the Olympic Well Field. The City has agreed to assume the monitoring of several off-site P&G wells. This additional monitoring program will be incorporated into the City's existing program currently performed by ICF for the City Corporate Yards (CCY). ICF currently samples a network of monitoring wells at the CCY (located south from the P&G site across Olympic Boulevard) and submits quarterly reports describing the hydrologic conditions and progress to the RWQCB. It is important to note that CCY groundwater contamination (i.e., MTBE) is under remediation in the upper zone and has not impacted the City's drinking water wells. Two other events are occurring at this same time in the Olympic Sub-Basin. First, the proposed EXPO construction plans will impact MTA Property along the southern portion of Olympic Boulevard. The City currently has three groundwater monitoring wells in this MTA right-of-way that are monitored by ICF as part of the CCY Remediation project under the auspices of the RWQCB. If EXPO construction mandates the elimination of these three monitoring wells, the City will have to abandon the wells per industry standards. and negotiate the relocation of two new wells to fulfill its monitoring obligation. The second event involves the identification of other Potentially Responsible Parties (PRPs) in the Olympic Sub Basin. One possible PRP is Boeing. Boeing is under a RWQCB regulatory order for site investigation at their former Douglas Aircraft Facility located east from the CCY and south from Olympic Boulevard. ICF will assist the City by providing technical support with respect to those other PRPs. 2 The City has been treating the groundwater pumped from the Olympic Well Field for over 20 years due to solvent (TCE and PCE) contamination that resulted from the actions of others. Groundwater is pumped to the City's Arcadia Treatment Plant where it is treated to meet and exceed all Federal and State drinking water standards prior to distribution to City residents. There are numerous PRPs that have been identified in the Olympic Sub-Basin. The City is determined to hold all PRPs responsible for the cleanup of the City's drinking water resource. ®iscussion On May 12, 2009, following a competitive process, Council authorized acontract-with ICF Consulting Services (now ICF International) in an amount not to exceed $1,729,883 to provide operation, maintenance, and monitoring services for the City yards groundwater remediation and environmental support for the P&G settlement. Subsequently, agreement 8914 (CCS) was established between the City and ICF. Additional funds totaling $674,410 are necessary to complete three additional environmental support items in the Olympic Sub Basin: 1. Additional groundwater monitoring of select P&G wells and enhanced reporting requirements ($401,906); 2. Abandon and relocate monitoring wells associated with the CCY project ($116,678); 3. Assist the City with PRP investigations ($155,826). There is currently $674,410 available in Account 0250020.589000 (Water Fund) to cover these services FY 11/12 and FY 12/13. 3 Financial Impacts & Budget Actions The contract amount to be awarded to ICF International is $2,404,293. Funds are available in account 0250020.589000. Prepared by: James Conway, Senior Environmental Analyst, Office of Sustainability and the Environment Approved: Dean Kubani Director, Office of Sustainability and the Environment Forwarded to Council: Rod Gould City Manager 4 Reference Amended Contract No. 8914 (CCS)