City Council
Report
City Council Meeting: April 28, 2026
Agenda Item: 4.D
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To: Mayor and City Council
From: Christopher Dishlip, Director of Public Works, Water Resources Division Subject: Approval of the First Modification to Agreement #11326 (CCS) with Grace Environmental Services, Inc., for Operations, Maintenance, and Management Services (OMMS) at the Charnock Well Field
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Authorize the City Manager to execute a first modification to Agreement #11326 (CCS) in the amount of $850,000 with Grace Environmental, Inc. for operations, maintenance, and management services (OMMS) at Charnock Well Field for the Public Works Department, resulting in an amended agreement with a new total amount not to exceed $3,350,000, with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica (City), 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. Due to rising service costs (e.g., maintenance equipment, spare parts, and other consumables to support operations), staff recommends increasing Agreement #11326 (CCS) by $850,000. This first modification would result in a new total amount not to exceed $3,350,000, with no change to the original five-year contract term. 2 of 4
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 relies on contract services to operate and maintain the facility, as it will be decommissioned once 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 Grace Environmental Services, Inc. (Grace) to provide a Statecertified 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 is responsible for overseeing the day-to-day operations of the Charnock Treatment Plant, including maintaining and repairing equipment, ensuring the proper application of treatment chemicals, and coordinating and overseeing necessary repairs. The contractor also monitors water quality and maintains analyzers and other water quality instrumentation to support production of safe, high-quality drinking water. The contractor coordinates Charnock operations and reports to City’s treatment operations staff based at the Arcadia Water Treatment Plant. The contract expenses include both labor costs and reimbursables for materials and repairs approved by City staff and paid by Grace. During the first three years of the contract, several large maintenance and repair issues that were not anticipated were required to be addressed by Grace. The largest of these were a booster pump valve replacement, relining of the effluent flow line vault, replacement of several chemical pumps, and replacement of several well transducers. As material costs have significantly increased over the past five years, to maintain reliable operation of the Charnock Treatment Plant, additional funds are needed to purchase essential 3 of 4
spare parts and consumables for water quality analyzers and other equipment to support the production of high-quality drinking water.
Environmental Review
Operation services for an existing water treatment facility are categorically exempt from CEQA pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines. Section 15301 provides an exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination. The agreement would not expand or materially change existing facilities or operations. Therefore, the modification to the agreement is categorically exempt pursuant to Section 15301 of the CEQA Guidelines.
Past Council Actions
Meeting Date Description
October 25, 2022 Original bid and award of agreement #11326 with Grace Environmental Services, Inc. for Operations, Maintenance, & Management Services at Charnock Well Field
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water Fund to increase agreement #11052 with Grace Environmental, Inc. for operations, maintenance, and management services at the Charnock Well Field.
Contract Request
Agreement
#
Current
Authorized
Amount
FY 25-26
Request
Amount
Department
Account #
Future
Years
Amount
Total Revised
Contract
Amount
11326
(CCS)
$2,500,000 $170,000 50500002.550010 $680,000 $3,350,000 Future year funding is contingent on Council budget approval. 4 of 4
Prepared By: Thomas Poon, Engineering Support Services Administrator Approved Forwarded to Council
Attachments:
A. October 25, 2022 Staff Report (web link)
B. FY 25-26 Oaks Initative (Grace Environmental)
C. FY 25-26 Levine Act (Grace Environmental)