SR 10-25-2022 5H
City Council
Report
City Council Meeting: October 25, 2022
Agenda Item: 5.H
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources
Subject: Award RFP #328 to Grace Environmental Services for Operations,
Maintenance, & Management Services at Charnock Well Field
Recommended Action
Staff recommends that the City Council:
1. Award RFP #328 to Grace Environmental Services, a California-based company,
for Charnock Well Field operations, maintenance and management services for
the production and treatment of potable water for the Public Works Department;
and
2. Authorize the City Manager to negotiate and execute a agreement with Grace
Environmental Services, in an amount not to exceed $475,000 for one year with
four additional one year renewal options at a 2.0% increase for the first renewal
year and 2.5% increase for renewal years 2 through 4 for a total amount not to
exceed $2,500,000 over a five-year period, with future year funding contingent on
Council budget approval.
Summary
The City of Santa Monica, Department of Public Works – Water Resources Division
requires contractor services to operate and maintain the City's Charnock Treatment
Plant, which treats contaminated groundwater from the Charnock Well Field before it is
pumped to the City’s main water treatment facility, Arcadia Water Treatment Plant for
further treatment in accordance with federal and state regulations. Staff recommends
Grace Environmental Services to operate, maintain and manage the Charnock
Treatment Plant for a total not to exceed amount of $2,500,000 over a five-year period.
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Discussion
The City has used contractor services to operate, maintain and manage the Charnock
Treatment Plant site (11375 Westminster Avenue, Los Angeles, CA 90066) since
November 2010 when new facilities were commissioned to treat groundwater
contaminated by methyl tertiary-butyl ether (MTBE) and other volatile organic
compounds. The Charnock Treatment Plant leverages contract services to operate and
maintain the facility as it will be decommissioned when the contamination has been
completely removed from the local groundwater basin and the groundwater can be
pumped directly to the City’s Arcadia Treatment Plant for treatment. Approximately 75%
of the City’s current groundwater supply from the Santa Monica Basin is produced from
the Charnock site.
The City requires the selected contractor to provide a State-certified water treatment
plant operator onsite for 40 hours per week, 24/7 on-call services for emergencies, and
other administrative support to comply with all the conditions of the City’s operating
permit issued by the State Water Resources Control Board - Division of Drinking Water.
The contractor oversees day-to-day operations at the Charnock Treatment Plant,
maintains and repairs equipment, ensures the proper application of chemicals, oversees
repairs, takes water samples, monitors various analyzers and other instrumentation,
keeps records, prepares reports, updates safety, training and operations plans, and
performs other duties as required. The contractor coordinates Charnock operations and
reports to City’s treatment operations staff based at the Arcadia Water Treatment Plant.
Vendor Selection
Best and Only Bidder Grace Environmental Services
Submittals Received Selection Criteria
Bidder $2,500,000 Municipal Code SMMC 2.24.180
Evaluation Criteria
Price; the quality of services offered; the ability, capacity and skill of the
bidder to perform the services; experience and efficiency of the bidder; the
ability of the bidder to provide such future maintenance or service as may
be needed.
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Bid Data
Date Posted Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
08/15/2022 City's Online
Bidding Site Santa Monica Daily Press 15 09/19/2022
Additional Vendor Outreach & Justification to Award
Grace Environmental Services has previously provided similar services for the San
Simeon Community Services District, Los Osos Community Services District, and
Lockheed Martin Corporation and is currently providing the service to Santa Monica.
Based on these criteria, Grace Environmental Services is recommended as the best and
only bidder.
Procurement conducted additional outreach to vendors who downloaded the bid to see
why they did not submit a bid. Vendors who were notified did not submit bids due to the
inability to provide the services needed and vendors opening the notification late and
missing the mandatory job walk.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water Fund to award a
contract with Grace Environmental Services to operate, maintain and manage the
Charnock Treatment Plant. Future year funding is contingent on Council budget
approval.
Contract Request
FY 2022-23 Amount Future Years Amount Department Account # Total Contract
Amount
$475,000 $2,025,000 50500002.550010 $2,500,000
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Prepared By: Thomas Poon, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative (Grace Environmental)
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CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
____________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
_____________________________________________________________
___________________________________
Charles Grace President / CEO
Signature: ____ ______________________ Date: ___09/15/2022_____________
cgrace@graceenviro.com (805)431-6253
Grace Environmental Services, LLC
Charles Grace
Charles Grace
5.H.a
Packet Pg. 399 Attachment: Oaks Initiative (Grace Environmental) (5329 : OMMS (Charnock))