SR-08-12-2014-3KCity Council Meeting: August 12, 2014
Agenda Item: 3—K
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Professional Services Agreement for Olympic Treatment Plant Pilot Study
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a professional services
agreement with Black and Veatch, a Kansas -based company, in an amount not
to exceed $800,000 (includes a 15% contingency) for the Olympic Treatment
Plant Pilot Study.
2. Authorize the Director of Public Works to issue any necessary change orders to
complete the work within budget authority.
3. Authorize the budget changes as outlined in the Financial Impact & Budget
Actions section of this report.
Executive Summary
This project would design and install a pilot treatment unit to study the different
treatment technologies available to produce California Department of Public Health
(DPH) approved drinking water in the Olympic sub basin.
The pilot study is the first stage in the development of the Olympic Treatment Plant to
manage contaminant plumes and treat groundwater within the Olympic sub basin as
required by the Gillette /Boeing settlement. Staff recommends Black & Veatch to
provide professional engineering services for the Olympic Treatment Plant Pilot Study in
an amount not to exceed $800,000.
Background
The Olympic Well Field is one of three wells fields managed by the City and is located in
an area formerly occupied by numerous industries. Many of these industries used
volatile organic compounds (VOCs) and other industrial contaminants. Releases from
these operations have led to the presence of VOCs in the groundwater of the Olympic
sub basin.
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To produce DPH approved drinking water from groundwater wells in this sub basin,
treatment is needed to remove total dissolved solids (TDS), minerals, nitrates, VOCs
and 1,4 Dioxane. Several technologies currently used in California, including nano -
filtration, reverse osmosis, advanced oxidation, ultraviolet light, ozone and peroxide,
and biofiltration, have the potential to meet the City's water quality goals. This pilot
study would allow staff to test combinations of various technologies' efficiency in
treating water from the Olympic sub basin. The pilot would require utility work to
provide power, water, and wastewater services to the unit. During the study, continuous
testing and monitoring would be conducted for a minimum of 6 months, and run
concurrent with an evaluation of the financial, operational, environmental, and
regulatory components of each technology. The study would identify benefits and
impacts that these technologies may have on the City in the short and long term.
Discussion
Currently, the water from the Olympic sub basin is pumped to the Santa Monica's
Arcadia Water Treatment Plant where it is treated and distributed. This configuration
limits the City's water production to the capacity of the Arcadia plant (10 million gallons
per day) and at times requires the import of water from the Metropolitan Water District of
Southern California. By building the full -scale Olympic Treatment Plant the City would
become less reliant on imported water through increased local production capacity,
independent of the Arcadia plant, to meet the City's water demand. This project directly
supports the implementation of the City's Sustainable Water Master Plan and the
reduction /elimination of imported water.
The pilot study would culminate with a final design report presenting criteria for the
design, construction, and operation of the Olympic Treatment Plant.
The results would be critical to preparing CEQA /NEQA documents and evaluating
operational costs of a future full -scale Olympic Treatment Plant.
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Consultant Selection
On March 17, 2014, the City published a Request for Proposals (RFP) for the Olympic
Treatment Plant Pilot Study. The RFP was posted on the City's online bidding website
and notices were advertised in the Santa Monica Daily Press in accordance with the
City Charter and Municipal Code provisions. The Water Resources Division received
four proposals on April 25, 2014 from:
Firm Headquarters Location
Black & Veatch Kansas
Carollo Engineers California
Worley Parsons Australia
SPI California
All four firms were interviewed by staff from the Water Resources and Engineering
divisions on June 18 and 19, 2014. The selection criteria included:
1. Technical competence, past performance, and financial stability (45 %)
2. Staffing capability to meet project timelines (20 %)
3. Quality control (10 %)
4. Cost of services, cost control, and reporting (25 %)
Staff recommends Black and Veatch as the best bidder based on price, prior experience
and successful completion of similar projects, as well as strong local and regulatory
knowledge. The price proposed by Black and Veatch is most economical. Staff
contacted references provided by Black and Veatch at Orange County Water District,
City of San Diego, California Energy Commission, and North Texas Municipal Water
District. All reference agencies reported that work was completed in a timely and cost
efficient manner while maintaining consistent quality. Black and Veatch was the
design /builder responsible for the construction of the City's Charnock Water Treatment
Plant Project which was completed in 2011 and has been successfully producing
potable water since that time.
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The Olympic Treatment Plant Pilot Study is expected to be completed in approximately
12 months after issuance of notice to proceed. The scope of work for Black &Veatch
includes the following (subject to final contract negotiation):
® Construction of pilot facility
• Raw water characterization
• Desktop studies and bench scale evaluation for selection of treatment
approaches
• Demonstrate performance of proposed treatment technologies
• Deliver design criteria for full -scale Olympic Treatment Plant
Environmental Analysis
The project does not require any CEQA/NEPA analysis at this stage, but will provide
valuable information regarding environmental impacts of the full scale Olympic Water
Treatment Plant.
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Financial Impacts & Budget Actions
The professional services agreement to be awarded to Black and Veatch is for an
amount not to exceed $800,000 (including a 15% contingency). A 15% contingency is
recommended for this project due to the likelihood of unforeseen conditions arising
during the selection of the project site, utility construction costs cannot be accurately
estimated, and technologies to be tested vary in cost including purchase and disposal of
certain chemicals and filter materials. Funds in the amount of $650,000 are available in
the FY 2014 -15 Capital Improvement Program budget in account C019066.589000.
Award of the agreement requires a release of $150,000 from Gillette /Boeing settlement
funds and appropriation of that amount to account 0019066.589000.
Prepared by: Jessica Arden, P.E., Water Resources Division
roved:
Martin Pastucha
Director of Public Works
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Forwarded to Council:
Rod Gould
City Manager
Reference:
Agreement No. 9949
(CCS)