City Council Meeting: May 12, 2009
Agenda Item: 1-G
To: Mayor and City Council
From:
Subject: Groundwater
Remediation Services at the City Corporate Yards, Environmental Assistance with
the Proctor & Gamble/Gillette site (P&G) and Services Related to the Olympic
Sub-basin Investigations.
Recommended
Action
Staff recommends that the City Council:
1.
Authorize
the City Manager to modify contract 8914 (CCS) with ICF International for a total
not to exceed amount of $1,729,883; and
2.
Appropriate
an additional $113,015 for FY08/09 in account C250020.589000.
3.
Authorize
the City Manager to modify contract 8731 (CCS) with Worley Parsons Komex for a
total amount not to exceed $285,900.
Executive
Summary
On April 8, 2008, Council
awarded a contract to ICF International for groundwater remediation services at the City Corporate
Yard (CCY) and to provide environmental assistance with the Proctor & Gamble/Gillette
(P&G) site for an amount not to exceed $1,371,983 within a 5 year term. Due
to a staff miscommunication budget authority was authorized at $274,396 for
each year of the contract, even though the expenses for Year One of the
contract were expected to be much higher than for subsequent years. The project
has exhausted its budget authority for FY08-09. The investigation of the former
P&G/Gillette site has rapidly escalated requiring the City to rely heavily
on ICF’s services while attempting to resolve the dispute over contaminated
drinking water in the Olympic Sub-Basin. The City currently owes ICF $404,510
for services performed to date. Staff is requesting an increase in contract
authority to a total not to exceed amount of $1,729,883 for the 5 year contract
with ICF. In addition to the increased
contract authority, staff is requesting an additional appropriation of $113,015
from the Water Fund for FY 08/09 to cover the increased environmental contract costs for the CCY project and for the P&G site; funds
in the amount of $430,615 are available in account C250020.589000 and funds in
the amount of $1,535 are available in account C010020.589000 to fund the
additional expenses in FY08-09.
Under a separate contract,
additional work requested by the City was completed by Worley Parsons Komex
(Komex) relative to the Olympic sub basin investigations resulting in Komex
exceeding its contract authority by $6,649. Staff is also requesting a
modification in the amount of $6,649 for the Komex contract.
Background
Currently the Los
Angeles Regional Water Quality Control Board (LARWQCB) requires the City to
sample a network of monitoring wells at the CCY and submit quarterly reports
describing the hydrologic conditions and progress being made towards
remediation of contamination. The City has reached significant milestones
towards lowering the presence of contamination in both the soils and
groundwater.
The City employs the
services of consultants to provide environmental assessment, remediation and
monitoring of soils and groundwater on City property. Presently, the City is implementing a Board mandated
Remedial Action Plan (RAP) for the CCY which requires the installation of an
ozone barrier system across Bergamot station and the CCY. Once in place the ozone barrier system will
allow the City to increase groundwater production from the Olympic Well Field
Sub Basin to provide drinking water to its residents. ICF has been working since May 2008 on the
barrier system and installation is currently 75% complete. Subsequent years will involve mostly
monitoring of the system. The difference between the cost of City-produced
water and the cost of purchasing water from the Metropolitan Water District
will offset much of the cost of the remediation efforts at the CCY site. Continued remediation of this City owned site
will result in significant economic and environmental benefits for the City,
its residents and the surrounding environment.
Discussion
The previous staff
report on April 8, 2008 regarding the ICF contract established contract
authority for an amount not to exceed $1,371,983 and annual
budget authority for years 1 through 5 at $274,397. The actual funds necessary to complete work
in year 1 are $819,561 because the first phase of the project involves the
design and installation of the ozone barrier system. The cost for years 2 through 5 will be less
because the scope of work during those years only involves operation and
maintenance of the system. There is
currently $432,150 available in Account(s) C250020.589000 (Water Fund) and
C010020.589000 (General Fund) to cover outstanding invoices but insufficient
funds to complete the remaining tasks for FY 08/09. Staff is therefore requesting
an additional appropriation of $113,015 for FY 08/09 in order to continue to
progress and pay ICF.
An increase in the
contract total is also being requested to include additional construction costs
for the Corporate Yards of $90,900 for the installation of additional wells for
the ozone sparge barrier system and necessary trench work to connect the new
wells to the existing system. This work was identified in the course of
monitoring the project in the first year. The City has also required ICF to
complete groundwater modeling on the P&G site and some additional
consultation which will total approximately $267,000. Staff is therefore requesting
a revised total not to exceed amount of $1,729,883 for the ICF contract to cover the additional
construction costs and the P&G site work.
Komex
was retained for FY2007-2008 to provide technical consulting services
addressing groundwater contamination investigation and remediation services at
the Charnock well field and the Olympic well field. Considerable
effort was expended by Komex in response to staff direction for additional
analysis to comply with regulatory orders placed by the LARWQCB. In order to
prepare data analysis and reports in a timely manner, Komex was instructed by
the Water Resources Division to proceed, acknowledging an overrun in the
contract limit. Komex expended $6,649 in excess of its contract authority under
contract 8731 (CCS). Accordingly, a modification to the existing professional
services agreement in the amount of $6,649 is requested in order to pay
outstanding invoices and close out this contract. The
total contract amount will increase from $279,251 to $285,900.
Financial Impacts &
Budget Actions
Funds in the amount
of $430,615 are currently available in account C250020.589000 and funds in the
amount of $1,535 are available in account C010020.589000 to partially fund the
increase in the ICF contract FY08-09. An additional appropriation in the amount
of $113,015 to account C250020.589000 from the Water Fund is necessary to cover
the additional costs for FY08-09. Additional funding will be requested through
the annual CIP process to fund subsequent years of the contract and will be
contingent upon Council’s approval.
Funds in the amount of $6,649 are available in
account 25671.555060 for the additional work performed by Komex on the Olympic
well field services.
Prepared by: James Conway, Sr. Environmental Analyst
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Approved: |
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Forwarded to Council: |
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Dean Kubani Director, Office
of Sustainability and the Environment |
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P. City Manager |