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sr-121311-3n10_ City of City Council Report sauta Monier City Council Meeting: December 13, 201111 Agenda Item: 3-N To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Award Contract for Engineering Consulting Services for Olympic Wells Restoration Project Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a sole source professional services contract with WorleyParsons, a California -based company, in an amount not to exceed $106,273 (including a 10% contingency) for engineering consulting services in the preparation of a Preliminary Design Report for the City's Olympic groundwater basin. 2. Approve the budget changes outlined in the Financial Impacts and Budget Actions section of this report. Executive Summary Remediation of the contamination in the Olympic Basin represents a continuation of the City's efforts to restore full production of its groundwater resources at the expense of the responsible parties. Staff has determined that the preparation of a Preliminary Design Report (PDR), similar to the PDR prepared for the Arcadia and Charnock Basins, is necessary at this time to address the Los Angeles Regional Water Quality Control Board's requirements as well as to inform City decision making related to the Olympic Basin. The City maintains an existing relationship with WorleyParsons (formerly WorleyParsons Komex) as it has a thorough knowledge of the City's drinking water fields and has provided extensive technical support services concerning many contamination issues in the Arcadia and Charnock Basins to the City since 1996. In 2007 WorleyParsons prepared a PDR for the Arcadia and Charnock Basins, which became the basis for the newly built treatment facilities. WorleyParsons principals and staff continue to provide technical expertise and possess an institutional knowledge of the City's water operations as well as background of the current situation. At this time, a PDR needs to be expedited so the City can make appropriate decisions in regards to the Olympic Basin in early 2012. Based on the foregoing, staff recommends utilizing WorleyParsons as the most efficient and cost - effective approach in the preparation of a PDR for the Olympic Basin in an amount not to exceed $106,273 (including a 10% contingency). 1 Discussion The Olympic Well Field Restoration Project represents a continuation of the City's efforts to restore full production of its contaminated groundwater resources at the expense of the responsible parties. The Olympic Well Field, located within the median of Olympic Boulevard near the eastern City boundary, has been impacted by VOC releases to the groundwater over a period of more than 50 years. This is a result of various manufacturing /commercial activities located in the vicinity of City water production wells near Olympic Boulevard and 26th Street. The U.S. Environmental Protection Agency and the Los Angeles Regional Water Quality Control Board (Regional Board) have identified several Potentially Responsible Parties (PRPs) as possible sources of the TCE contamination. In 2010 the City reached a settlement agreement with Gillette and its parent company Proctor and Gamble. Under that agreement and under the terms of an understanding with the Regional Board, the City retained sole oversight and management of the restoration of the groundwater in the Olympic Basin. The Regional Board terms and conditions address the City's objective to design and construct a treatment facility for removal of VOCs. A PDR for the Olympic Basin is a necessary component to establish the framework of an initial design for the treatment facility. WorleyParsons has provided services relative to MTBE contamination in the Arcadia and Charnock well fields since the problem was discovered in 1996. WorleyParsons principals and staff continue to provide technical expertise and have developed an understanding of Santa Monica's unique hydro - geologic characteristics. In 2007 WorleyParsons prepared a PDR for the Arcadia and Charnock Basins that became the basis for the newly built treatment facilities. Additionally, WorleyParsons possesses an institutional knowledge of the City's water operations as well as background knowledge of the current situation. For these reasons, staff has determined that the most efficient and cost - effective approach is to continue utilizing WorleyParsons for technical support in the preparation of a PDR for the Olympic Basin. WorleyParsons tasks will include 2 site reconnaissance, design basis development, treatment technology evaluation, and life -cycle cost evaluations. The work can be completed within 90 days at a cost of $106,273, including a 10% contingency. Financial Impact and Budget Actions The contract amount to be awarded to WorleyParsons is $106,273. Award of the contract requires an additional appropriation of $106,273 to account P019033.589000. Revenues will be recognized as expenditures are made. Prepared by: Gil Borboa, P.E., Water Resources Manager roved: Forwarded to Council: 3 Rod Gould, City Manager Reference Contract No. 9522 (CCS).