Council Meeting December 11, 2001
Santa
Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Professional Services Contracts with KOMEX H20
Science, Inc. for Charnock Well Field Technical Oversight and H20R2
Consultants for Arcadia Well Field Technical Oversight related to MTBE
Investigation, Assessment, and Remediation, and Appropriate $489,000 from the
Water Fund
INTRODUCTION
This report recommends that the City
Council authorize the City Manager to negotiate and execute professional
services contracts with KOMEX H20 Science, Inc. (KOMEX) in an amount
not to exceed $1,491,000 for Charnock well field technical oversight; and with
H20R2 Consultants (H20R2) in an
amount not to exceed $120,000 for Arcadia well field technical oversight. All
of the services provided by both consultants are related to MTBE investigation,
assessment, and remediation. This
staff report also recommends that the City Council appropriate $489,000 from
the Water Fund.
BACKGROUND
Charnock Well Field
All five City water wells at the
Charnock well field are shut down due to MTBE contamination from underground
gasoline storage tanks and pipelines owned by various oil companies. In 1997,
an interim settlement agreement between the City and the responsible parties
stipulated that the City would be made financially whole with respect to
replacement water costs and technical oversight costs, while the companies
responsible for the contamination pursued the cleanup of the ground water. For the Charnock well field, the City
retained KOMEX in 1996 for the purpose of technical oversight of the activities
related to well field restoration.
Among the tasks KOMEX performs on behalf of the City are review of work
plans and other correspondence, laboratory analysis, interpretation of data,
regulatory compliance and permitting review, preparation of technical reports
and presentations, and continuous coordination and communication with City
technical and legal staff.
In January 2000, the settlement
agreement between the City and the Charnock responsible parties expired. Pursuant to a September 1999 order from the
U.S. Environmental Protection Agency, the cost of water replacement continues
to be funded by the responsible parties; however, ongoing technical oversight
costs are not included. These
technical oversight costs are presently borne entirely by the City.
Arcadia Well Field
The City=s two wells at Arcadia well field
were shut down in 1996 due to contamination from leaking underground storage
tanks. The restoration of the drinking
water aquifer at the City=s Arcadia well field has proceeded
pursuant to a 1998 settlement agreement with Mobil. The agreement includes provisions for payment of replacement
water, as well as payment for the services of a City project reviewer. The project reviewer provides technical
expertise on behalf of the City, in an oversight capacity, relative to all
remediation efforts at the site. This
includes review of work plans and other correspondence, laboratory analysis,
interpretation of data, regulatory compliance and permitting review,
preparation of technical reports and presentations, and continuous coordination
and communication with City technical and legal staff. The firm of H20R2
since 1998.
DISCUSSION
The contracts
for technical oversight for both Arcadia and Charnock represent a continuation
of existing contractual relationships with two firms--KOMEX at Charnock
and H20R2 at
Arcadia--who have provided services relative to the City=s MTBE contamination crisis. The principals and staff involved at both
firms provide technical expertise and have developed an understanding of Santa
Monica=s unique hydro-geologic
characteristics since the problem was initially discovered. Additionally, each of these firms possess an
institutional knowledge of the water divisions= operations, as well as background of the current
situation. For these reasons, staff has
determined that the most efficient and cost effective approach, at this time,
is to continue the two contracts. It
is proposed that the contract terms would end June 30, 2002, and be reviewed at
that time.
Budget/Financial
Impact
An appropriation
from the Water Fund of $489,000 is being requested at Account No.
C25038602.589000 for a total amount available of $1,844,560. The funds will be used the proposed Komex Contract ($1,491,000) and
other miscellaneous costs associated
with the on-going investigation at the Charnock site.
Funds are available at Account No. C250387.589000 for the proposed H20R2 contract of $120,000. Pursuant to an agreement with Mobil Oil, the City will be reimbursed for the H20R2 contract costs. Reimbursement funds are deposited at Revenue Account 25671.402350.
Staff recommends
that the City Council:
1.
Authorize
the City Manager to negotiate and execute a contact with KOMEX, in an amount
not to exceed $1,491,000 to provide technical oversight services for the
remediation of the Charnock well field; and
2.
Authorize
the City Manager to negotiate and execute a contact with H20R2,
in an amount not to exceed $120,000 to provide technical oversight services for
the remediation of the Arcadia well field, and
3.
Appropriate
$489,000 from the Water Fund to Account No. C250386.589000.
Prepared by: Craig Perkins, Dir. of Environmental and Public Works Management
Gil Borboa,
Utilities Manager
Joseph Lawrence,
Assistant City Attorney
Jean Higbee,
Utilities Business Supervisor