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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. 0 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. 2 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. 3 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. 12 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 5 Forwarded to Council: Rod Gould City Manager Reference: Agreement No. 9949 (CCS)