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SR-04-23-2013-3F - 505-001-07 / 500-006City Council Meeting: April 23, 2013 Agenda Item: 2;-- To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Professional Services Agreement Modification for Environmental Services for City Corporation Yard and Olympic Well Field Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a third modification to Professional Services Agreement #8914 (CCS) in the amount of $1,370,805 (including a 10% contingency) with ICF Consulting Services, LLC, a California - based company, to provide groundwater monitoring, well installation, technical oversight, and support services for the Olympic Well Field. This will result in a five year amended agreement with a new total amount not to exceed $3,775,098, with future year funding contingent on Council budget approval. 2. Appropriate the budget increases as outlined in the Financial Impacts and Budget Actions section of this report. Executive Summary The City has an existing agreement with ICF Consulting Services for environmental assessment and groundwater monitoring services in the Olympic Groundwater Basin which has proven beneficial in achieving the Gillette /Boeing settlement agreements. Continuing work pursuant to regulatory requirements include the installation of additional monitoring wells, ongoing groundwater monitoring, and continuing technical support. Additional funding in the amount of $1,370,805 is necessary to complete additional tasks for the period from May 14, 2013 to June 30, 2014. Background On April 8, 2008, Council approved ICF Consulting Services, LLC (ICF) to provide environmental remediation services at the City Corporation Yard (CCY) for up to five years. The resulting contract for environmental services (Professional Services Agreement #8914 CCS) included quarterly groundwater monitoring, remediation system 1 installation, and technical support related to potential contamination from the The Gillette Company (Gillette) and its impact on the Olympic Well Field. On May 12, 2009, a first modification Agreement #8914 (CCS) was executed to include allowances for additional remediation services at CCY, technical support related to the City's dispute with Gillette over contamination of the Olympic Well Field, and associated interactions with the Regional Water Quality Control Board ( RWQCB). In 2009, it became apparent that the former Papermate facility (owned by Gillette and, by acquisition, Proctor & Gamble) was a significant source of the Perchloroethylene (PCE) and Trichloroethylene (TCE) observed in groundwater. City staff requested additional assistance from ICF to help develop a technical argument supporting the City's position that releases from Gillette's operation had indeed contaminated groundwater in the Olympic Well Field. The work involved the review of reports, work plans, modeling, and correspondence prepared by Gillette. On June 14 2011, a second modification Agreement #8914 (CCS) was executed to extend the term of the contract for an additional two year period beginning May 13, 2011 through May 13, 2013, and provide additional funding for continued environmental assessment and remediation services. During this period, ICF was instrumental in providing technical support to the City in addressing contamination originating from the Boeing property, formerly the Douglas Aircraft Facility in Santa Monica. Discussion Throughout 2011 and 2012, ICF continued to conduct activities associated with managing the Olympic Well Field and adhering to certain RWQCB requirements, including the abandonment of additional monitor wells, installation of replacement, monitor wells, and quarterly groundwater monitoring. In June 2012, the City submitted, and RWQCB approved, the Olympic Well Field Management Plan (Plan). The Plan includes very specific actions the City intends to conduct to prudently manage the Olympic Well Field so that City is able to deliver water of the highest quality to its PA residents. Specifically, the Plan provides details on the long -term groundwater monitoring program, locations of additional wells to monitor water levels and measure contaminant concentrations, and modeling efforts that are needed to understand contaminant migration throughout the Olympic Well Field. In this regard, several non - routine activities in the Plan have been identified that can be completed by ICF due to the firm's unique knowledge of the Olympic Well Field, the Gillette site, the Boeing site, RWQCB staff, and City administrative programs and policies. These non - routine elements can be completed by June 30, 2014. Tasks, and associated costs, to be performed by ICF under this amendment include: • Installation of Groundwater Monitor Wells — Pursuant to the Boeing settlement, and as specified in the Plan, ICF would install five additional deep groundwater monitoring wells at RWQCB- approved locations at a cost of $550,000 including contingency. • Long -Term Groundwater Monitoring — ICF would continue long -term required monitoring of old wells located on the former Gillette property, CCY and Bergamot property, and wells installed in 2012. A few new wells would be added to this network in 2013, after which time, the monitoring well network is expected to be complete at a cost of $322,505 including contingency. • City Corporation Yard Remediation System Abandonment — The City will receive site closure status from RWQCB in 2013. Upon issuance of closure, RWQCB will require that all remediation system components, monitor wells, sparge wells, and ancillary equipment be abandoned. ICF would perform the abandonment of 28 sparge wells, 12 monitoring wells, horizontal conveyance piping, and other related equipment in accordance with applicable standards at a cost of $388,300 including contingency. • As- Needed Technical Support — ICF would assist the City is in responding to technical inquiries from RWQCB, Gillette, Boeing, MTA, and others regarding environmental matters. This is estimated at $110,000 including contingency. Given the project- and site - specific knowledge and experience obtained by ICF during the previous five years, coupled with their performance and sensitivity to City needs, staff recommends retaining ICF for continued monitoring and support services through June 30, 2014. 3 Financial Impacts & Budget Actions The agreement modification to be awarded to ICF is $1,370,805, for an amended agreement total not to exceed $3,775,098. Award of the agreement modification requires the following budget actions: 1. Release of $1,370,805 from Gilette settlement funds fro the Olympic Basin Remediation at 1.380237. 2. Appropriation of $1,370.805 to account 25671.555060. 3. Appropriation of budgets for transfers from the General Fund (01695.570080) to the Water Fund (25695.570080). Prepared by: Gil Borboa, P.E., Water Resources Manager Approved: Martin Pastuch Director of Public Works 19 Forwarded to Council: Rod Gould City Manager Reference Amended Contract No. 8914 (CCS)