City Council
Report
City Council Meeting: April 12, 2022
Agenda Item: 3.A
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Engineering and Street Services
Subject: Approval of Contract Modification with Kiewit Infrastructure West Company for the Operations Phase Guaranteed Maximum Price Amendment for the Sustainable Water Infrastructure Project
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a second Guaranteed Maximum Price amendment to Design-Build Agreement No. 10736 (CCS) in the amount not to exceed $4,827,058 (including $198,806 City contingency), with Kiewit Infrastructure West Co. This amendment will enable Kiewit to operate, maintain, and manage the Sustainable Water Infrastructure Project facilities for two years and will result in a total contract amount not to exceed $97,300,548.
Summary
Expected to be completed by October 2022, the Sustainable Water Infrastructure Project (SWIP) captures and treats urban runoff, stormwater and municipal wastewater for non-potable uses (e.g., irrigation and toilet flushing) and to recharge local groundwater aquifers. The SWIP would supply up to 1,680 acre-feet per year of clean water, which represents up to up to 10% of the City’s annual water demand as indicated in the 2018 Sustainable Water Master Plan Update. Federal and state regulations require the SWIP to be operated and maintained by certified wastewater treatment operators. The City does not currently employ wastewater treatment operators whose certification levels meet the state regulations required to operate the SWIP and must therefore contract out these services so that the facilities can be operational when completed this fall.
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Staff anticipated this need and included the option for initial operational services in the Request for Proposals (RFP) for design-build-operate services for the SWIP when it was issued in 2018. That RFP was awarded to Kiewit Infrastructure West Co. (Kiewit) and Council previously authorized the design and construction phase services. Staff now seeks authorization to amend the agreement with Kiewit to operate SWIP for two years at a cost not to exceed $4,827,058 (including $198,806 contingency). The twoyear operation period by the design-build-operate contractor includes a one-year warranty period for the contractor to resolve any equipment performance issues or defects during the first year of operations. The second year of the operation period is to ensure that the SWIP can be closely monitored by certified operators familiar with the facility and that the SWIP continues to perform as required upon expiration of the warranty period. The operations phase modification would be funded by the Wastewater Fund with a contribution from the Clean Beaches and Ocean Parcel Tax Fund.
Discussion
In 2018, the City Council approved the updated Sustainable Water Master Plan that refined the pathway for the City to achieve water self-sufficiency by 2023. The City’s water self-sufficiency goal was updated in the City’s 2020 Urban Water Management Plan and revised to approximately 80-90% water self-sufficiency due to impacts from the COVID-19 Pandemic that impacted staffing levels for water conservation and future housing development outlined in the 6th Cycle Housing Element. Water self-sufficiency is critical to ensuring local control of local water resources and long-term water resiliency for Santa Monica. A critical component of the Sustainable Water Master Plan is to develop alternative water supplies, like the capture and recycling of urban runoff, stormwater and municipal wastewater to preserve potable water for where it is needed most. The SWIP captures and treats these alternative water sources through a combination of membrane bioreactor, reverse osmosis, and ultraviolet/advanced oxidation processes to produce advanced-treated recycled water for non-potable uses and to recharge local groundwater aquifers.
The cost of the development of the SWIP was subsidized by grants of over $16 million and a Clean Water State Revolving Fund loan to offset the overall project costs and 3 of 5
allow payment of the project over a 30-year period to better stabilize rates for water customers. Staff also secured funding through the Local Resources Program from the Metropolitan Water District of Southern California that would provide over $19 million over 25 years to produce locally sourced water through the SWIP.
The construction of SWIP is scheduled to be completed in October 2022. Once completed, the City will require operations, maintenance, and management services for the SWIP facilities during its warranty and initial start-up period, which include:
• Advanced Water Treatment Facility which treats stormwater, urban runoff water, and wastewater, as well its accessory facilities including an elevator, chemical fill station, Ocean Avenue pump station, piping, valves, instrumentation, generator, and electrical switchgear and controls;
• Civic Center Stormwater Tank and its accessory facilities, Pico Boulevard diversion structure and pump station, hydrodynamic separator, piping and instrumentation;
• Reverse Osmosis upgrades at Santa Monica Urban Runoff Recycling Facility (SMURRF); and
• Clean Beaches Tank pumps and the Pico-Kenter pump station providing influent water to SMURRF.
The City’s Water Resources Division does not operate wastewater treatment facilities of this size and complexity and does not have personnel on staff with the necessary experience and state certifications required by the State Water Resources Control Board to work in these newly constructed and unique facilities when they come online later this year.
This contract amendment would authorize the third and final phase of the SWIP designbuild-operate contract, operations and maintenance services. Kiewit’s staff would provide seven days a week operations services with six on-site staff: four state-certified 4 of 5
wastewater treatment plant operators and two maintenance technicians. The six staff would each work 40 hours per week in addition to as needed on-call services on a 24/7 basis for emergencies. Kiewit would also provide administrative support to comply with all the requirements of the City’s operating permit issued by the California Regional Water Quality Control Board, Los Angeles Region (Los Angeles Water Board). Kiewit, in partnership with their subconsultant, Perc Water Corporation, would perform day-to-day operations at the SWIP facilities, maintain and repair equipment, ensure the proper application of chemicals, perform and coordinate repairs, take water samples, monitor various analyzers and other instrumentation, keep records, prepare reports, update safety/training and operations plans, and perform other duties as required.
Past Council Actions
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Wastewater Fund to increase the amount of the design/build/operate contract with Kiewit. to operate, manage, and maintain SWIP facilities in the amount of $4,827,058 for a two-year period. The Clean Beaches and Ocean Parcel Tax Fund would contribute to the operating costs of maintaining the SWIP by making annual transfers of $1,043,000 to the Wastewater Fund. Future year funding is contingent on Council budget approval.
Meeting Date Description
September 10, 2019
(Attachment A)
Award of the Design/Build Contract Guaranteed Maximum
Price Amendment to Kiewit
August 28, 2018
(Attachment B)
Selection and Award of Sustainable Water Infrastructure Project RFP for Design/Build/Operation Services Contract 5 of 5
Agreement Modification Request
Agreement #
Current
Authorized
Amount
FY2022- 24
Request Amount
Budget
Account #
Total Contract
Amount
10736 $4,827,058 51500001 $4,827,058
10736 $20,329,376 C1606950.689000 $20,329,376
10736 $53,702, 057 C5106950.689000 $53,702,057
10736 $900,000 C5106950.689540 $900,000
10736 $1,272,057 C5206950.689000 $1,272,057
10736 $8,770,000 C2006950.689000
(State Prop 1 Grant) $8,770,000
10735 $7,500,000 C1606950.689280
(County Measure W Grant) $7,500,000
Total $92,473,490 $4,827,058 $ 97,300,548
Prepared By: Selim Eren, Civil Engineer
Approved Forwarded to Council
Attachments:
A. September 10, 2019 Staff Report - Award of the SWIP Design/Build Contract Guaranteed Maximum Price Amendment (Web Link)
B. August 28, 2018 Staff Report - Selection and Award of SWIP Design/Build/Operation Services Contract (Web Link)
C. Design-Build Contract #10736 (CCS)
D. SWIP GMP Amendment
E. First Modification
F. Oaks Initiative Form 2022