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SR 03-22-2016 3G City Council Report City Council Meeting: March 22, 2016 Agenda Item: 3.G To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Water Resources Subject: Olympic Well Field Groundwater Management Contract Amendment Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to professional services agreement #9916 in the amount of $584,736 (including a 5% and 10% contingency only on Task 2 and Task 5, respectively) with ICF International, a Virginia-based company, for additional groundwater program activities. This will result in a 4-year amended agreement with a new total amount not to exceed $2,805,636, with future year funding contingent on Council budget approval. The City will be reimbursed by the Gillette Company for $355,995 upon completion of Tasks 2 and 3. Executive Summary ICF International (ICF) is the City's current environmental consultant responsible for implementing the Olympic Well Field Groundwater Management Program. The Olympic Well Field area has a long history of manufacturing and light industrial operations. Releases from these industrial operations have led to the presence of volatile organic compounds (VOCs) in groundwater produced from these wells. The Olympic Well Field Groundwater Management Program ensures that the contamination is fully characterized, captured and monitored. Five new additional groundwater tasks are required for the Olympic Basin to keep the City in full compliance with State and local regulatory programs. The current agreement with ICF, in an amount not to exceed $1,732,500, ends on June 30, 2016, with two additional one-year renewal options in the amount not to exceed $244,200 per year. A modification is required to include additional groundwater program activities in an amount of $584,736 (including a 5% and 10% contingency per proposal, only on Task 2 and Task 5, respectively) for a not to exceed total of $2,805,636 over a four-year period, if all renewal options are exercised. Background On June 10, 2014, Council approved a Professional Services Agreement with ICF International, to implement the Olympic Well Field Management Plan for a two-year term ending June 30, 2016 with two additional one-year renewal options. 1 of 5 The Olympic Well Field Management plan was subsequently approved by the Los Angeles Regional Water Quality Control Board (RWQCB). The Olympic Groundwater Basin is the City's second largest drinking water aquifer and provides up to 1,500 gallons per minute (gpm) of groundwater for treatment and distribution to the City of Santa Monica. The Olympic Well Field has been adversely impacted by contamination from several former manufacturing facilities in the immediate area. This area of Santa Monica has a long history of manufacturing and light industrial operations. Releases from these industrial operations have led to the presence of volatile organic compounds (VOCs) in groundwater produced from these wells. The City has entered into Settlement and Release Agreements with Boeing and Gillette Company, which formerly conducted business in the Olympic Well Field area. Funds from these settlements will be used to build a new Olympic Well Field Drinking Water Treatment plant. Five new additional groundwater tasks have been identified by Public Works/Water Resources which require immediate attention by the City in order to successfully Discussion ten years. Their original contract was to perform quarterly groundwater monitoring for expanded to assist the City with negotiations with two Potentially Responsible Parties (PRPs) in the Basin: Boeing and The Gillette Company. ICF currently is responsible for implementing the Olympic Well Field Management Plan. The scope of work for this amendment consists of five new additional tasks that are described in detail below. The tasks include: Task 1 - Addition of 1, 4-Dioxane Analysis to the Existing Quarterly Groundwater Monitoring Program In late 2014, the City began the design and construction of a pilot treatment system for the Olympic Basin. It was determined that one of the critical groundwater contaminants, 2 of 5 1,4-Dioxane, needed to be fully characterized throughout the Olympic Basin to determine the range of expected influent concentrations to the pilot plant and, in the future, to the new Olympic Drinking Water Plant. Costs include all labor and expenses associated with the addition of 1, 4-Dioxane for fifteen quarters (4Q 2014 through 2Q 2018) for 30 samples (14 from B-Zone wells and 15 from C-Zone wells, and one QA/QC sample). All chemical analysis results would be reported in the quarterly monitoring reports submitted to the RWQCB. Task 2 - Installation and Development of Three Additional Groundwater Monitoring Wells th Planned redevelopment activities at the former Papermate site (1681 26 Street) will require the abandonment of all existing monitoring wells, with the exception of GW-14 and GW-18. Through discussions with the RWQCB staff, an agreement was reached with Gillette for reimbursement for expenses related to the installation of three replacement wells. The following activities are required for this task: Task 2.1 - Planning, Permitting and Pre-field Preparation Task 2.2 - Groundwater Monitoring Well Installation Task 2.3 - Well Development Task 2.4 - Management and Disposal of Investigation-Derived Waste Task 2.5 - Well Surveying Task 2.6 - Reporting Task 3 - Installation of Dedicated Pumps in the New Groundwater Monitoring Wells Following the completion of well development, ICF would install dedicated submersible pumps in the newly installed monitoring wells. The use of dedicated pumps significantly decreases the amount of time required at each well during sampling events, reduces the volume of investigation-derived waste produced and eliminates the potential for cross-contamination between wells. The cost for this task would be reimbursed by the Gillette Company. Task 4 - Production Well Siting Support The City is in the process of evaluating suitable locations for additional groundwater production wells in the Olympic Well Field and has hired a hydrogeologist as a water resource expert to assist in this effort. The principal reason for the installation of the 3 of 5 production wells is to provide additional water supply. As part of this task, ICF would support the efforts of the City's hydrogeologist as needed. Task 5 - Redevelopment of Five Existing Groundwater Monitoring Wells ICF is experiencing numerous problems with the new monitoring wells that were installed in the Olympic Well Field. Fine sediment is preventing the pumps from ability to conduct low- flow groundwater removal requirements as set forth by the RWQCB has been compromised. Redevelopment of the five wells would involve retaining a drilling contractor with well development equipment and crew, field geologist, traffic control, waste management and disposal, and overall project management. Financial Impacts and Budget Actions The agreement modification to be awarded to ICF is $584,736 for an amended agreement total not to exceed $2,805,636. Funds in the amount of $584,736 for added scope of work are included in the FY 2015-16 Capital Improvement Program budget in account C019045.589000. The Gillette Company will reimburse the City for costs expended under Tasks 2 and 5 of this add-on project for a total of $355,955, which would be a net increase to the city of $228,781. Future year work and funding is contingent on Council budget approval. Prepared By: Lisette Gold, Environmental Remediation Coordinator Approved Forwarded to Council Attachments: 4 of 5 A. Staff Report - Olympic Well Field Management Plan Agreement - June 10, 2014 - Item 3-E (weblink) 5 of 5 Reference: Amended AgreementNo. 9916 (CCS)