0150-10389-0001TRANSMITTAL

TO COUNCIL FILE NO.DATEDavid H. Wright, General Manager JUN 1 2 2019FROM

The MayorCOUNCIL DISTRICT

All

FIRST AMENDMENT BETWEEN THE LOS ANGELES DEPARTMENT OF WATER AND POWER

AND HAZEN AND SAWYERFOR

THE SAN FERNANDO BASIN GROUNDWATER REMEDIATION FACILITIES

Approved and transmitted for furtherTirocessing inpjtiding Council consideration. See the City Ad-rfwttistrative Officer/eport attached.

R Ana Guerrero

RHL.IR: 10190189

CAO 649-d

REPORT from

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

June 11, 2019Date: CAO File No. Council File No. Council District:

0150-010389-0001

The MayorTo:

Richard H. Llewellyn, Jr., City Administrative OfficerFrom:

Reference: Communication from the Department of Water and Power dated February 5, 2019

CONTRACT NO. 47329 - FIRST AMENDMENT BETWEEN THE LOS ANGELES DEPARTMENT OF WATER AND POWER AND HAZEN AND SAWYER FOR THE SAN FERNANDO BASIN GROUNDWATER REMEDIATION FACILITIES

Subject:

RECOMMENDATION

That the Mayor:

Approve the proposed Resolution authorizing the execution of a First Amendment to Contract 47329 with Hazen and Sawyer for the continuation of professional services for the San Fernando Basin Groundwater Remediation Facilities:

1.

a. Increase the contract amount by $18.5 million for a total revised amount not to exceed $48.5 million; and,

b. Upon proper certification, the Chief Accounting Employee is authorized and directed to draw demands on the Water Revenue Fund, in accordance with the terms of this Amendment.

Return the proposed Resolution to the Department for further processing, including City Council consideration.

2.

SUMMARY

The Los Angeles Department of Water and Power (LADWP) requests authority to execute a First Amendment to Contract 47329 with Hazen and Sawyer to continue professional engineering and consulting services to assist LADWP with the development of the Groundwater Basin Remediation Facilities in the San Fernando Basin (SFB). The current contract will be increased by $18.5 million, from $30 million to $48.5 million. The current term of the contract is for ten years and remains unchanged. The increased amount is necessary due to a significant volume of unanticipated work

CAO File No.

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2

requiring expertise in the areas of National Contingency Plan (NCP) cost recovery efforts, and Proposition 1 funding oversight which was not originally foreseen, resulting in less funds available to support the remaining workload. Funding has been budgeted in 2019-20 to support these efforts. Pursuant to Charter Section 373, for long term contracts, City Council approval is required as the cumulative term exceeds three years and specifically Los Angeles Administrative Code 10.5 (e) requires City Council approval for LADWP contract amendments involving the same parties with a cumulative term exceeding five years. The City Attorney has approved the proposed resolution as to form and legality.

Project Background

The San Fernando Valley Basin has the largest body of local groundwater and provides as much as fourteen percent of the total drinking water supply to the City of Los Angeles. Leaks and contaminants caused by improper storage, handling, and disposal of hazardous chemicals used in commercial industries dating back to the 1940s was detected in the early 1980s. Local, state and federal agencies have made various efforts over the years to cleanup and remediate the contamination through the United States Environmental Agency Superfund. In addition, the State of California Proposition 1 Water Bond passed by the voters in 2014 (adopted by the State Water Board in 2016) provides grants and loans for eligible prevention or cleanup projects.

As of June 2012, over fifty percent of the 115 production well fields in the SFB are inactive due to contamination. LADWP initiated a Groundwater System Improvement Study (GSIS) to assist in planning for capital improvement projects to clean up and remove the contaminants for the easterly portion of the SFB. Various groundwater remediation facilities are required to be built to support these efforts and are anticipated to be operational by 2021.

Proposed Amendment

Hazen and Sawyer was selected through a competitive bidding process in 2015 to provide professional engineering and consulting services to assist LADWP with the development of the Groundwater Basin Remediation Facilities in the SFB. The contract was awarded for $30 million for a term of ten years from November 6, 2015 to November 5, 2025.

Services to be provided include assisting staff in the initiation, planning, design, permitting, engineering, procurement, alternative delivery, construction, commissioning, close-out, and operations of the groundwater remediation facilities. The project sites are located in the vicinity of various LADWP well fields, including but not limited to North Hollywood, Tujunga and Pollock.

The proposed Amendment will increase the original contract amount by $18.5 million for a revised total contract amount of $48.5 million. Per LADWP, the consultant is not able to provide additional support to staff relative to alternative delivery, commissioning, close-out and operations of the remediation of facilities without additional funds. During the execution of the agreement, LADWP encountered a significant volume of unanticipated work requiring expertise in the areas of NCP cost recovery efforts, and Proposition 1 funding oversight, which was not originally foreseen

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3

resulting in less funds available to support the remaining workload. The NCP is the Federal government’s blueprint for responding to hazardous substance releases and oil spills that reach the environment. The increased funding will ensure that adequate funds are available for the completion of the groundwater remediation projects. Approximately $28.3 million from the original contract has been expended or authorized by task order and the remaining $1.7 million will be used to support the work identified in Table One. Table One identifies the proposed expenditure plan for the funding request:

Table One

Task TechnicalEvaluation

AlternativeDelivery

Oversight

Start up and Operational

Support*

Post­Construction

Support*

Total

$2,900,000Funding Applications Technical Advisory Committee/Prop 1 Support

$ 2,900,000

North Hollywood Central WETS and Project Management Office (PMO) and Support

4,620,000 100,000 100,000 4,820,000

T ujungaWETS and PMO Support

4,620,000 100,000 100,000 4,820,000

North Hollywood West Wellfield PMO Support

975,000 200,000 200,000 1,375,000

Monitoring Well Sampling 4,520,000 4,520,000

SUM $7,420,000 10,215,000 400,000 $18,435,000400,000‘Notes: Commissioning and Close-out phases are elements of Operational Support and Post Construction activities

The contract was awarded with a proposed Small Business Enterprises (SBE) subcontracting participation commitment of 17.4 percent. Actual contract expenditures through November 2018 assume 7.82 percent achievement. However, with the execution of the contract amendment the full commitment will be achieved. Lastly, LADWP indicates the construction and final design of the remediation projects are performed by the Design-Build (DB) contractor, under a separate contract.

FISCAL IMPACT STATEMENT

There is no General Fund impact. Approval of the proposed Resolution impacts the Water Revenue Fund at a cost of $18.5 million. Funding in 2019-20 has been budgeted accordingly to support this work. The proposed action complies with the City Financial Policies in that funding is available for this purpose.

RHLAR: 10190199

Attachments

Eric Garcetti,Los Angelesr«.. ~i Department of 1DWP1 Water & Power

CUSTOMERS FIRST

LA Bunrd of" CornmtssiocoisMel Levine, Presided!

D/Mht« McCiain-HiiL Vua- P^esidcr Jill Banks Bar ft d

Christina E. Noonan Aura Vasque?.

Barbara E Moschos, ^oueiarv

David H. Wright, 1* *1 M.3*«yv.

February 5, 2019

The Honorable Eric Garcetti Mayor, City of Los Angeles Room 303, City Hall Mail Stop 370

Attention, Ms. Mandy Morales, Legislative Coordinator

Dear Mayor Garcetti:

Subject: Amendment No 1 to Agreement No 47329 for Owner’s Agent for the San Fernando Basin Groundwater Remediation Facilities with Hazen and Sawyer

In accordance with Executive Directive No. 4, enclosed is a copy of a Board letter and supporting documents recommending approval and transmittal to the Los Angeles City Council of Amendment No. 1 to Agreement No. 47329 between the Los Angeles Department of Water and Power and Hazen and Sawyer.

It is respectfully requested that your review be completed as soon as possible. Once the required City Administrative Officer report has been received, the matter will be scheduled for action by the Los Angeles Board of Water and Power Commissioners and forwarded to the Los Angeles City Council for final consideration.

Please contact Ms. Winifred J. Yancy, Director of Legislative and Intergovernmental Affairs, at (213) 367-0025 upon completion of tne review, if the review will take longer than 30 days, or if there are any questions regarding this item.

Sincerely,

David H. Wright General Manager

AS:ilnEnclosurec/enc: Ms. Liz Crosson. Office of the Mayor

Dr. Frederick H. Pickel, Office of Public Accountability Board of Water and Power Commissioners Ms. Winifred J. Yancy

Haihv. w) £:•36'MiMI Lickvncorn

Atv.ifv s C AI'l Argnpc U iSltC W-Ttl! 4'i “lOPe* ..Ff-f-r \ f!oLlelpp*\h :■

Los Angelesrp^rn^iDepartment of ID WPI Water & PowerLA RESOLUTION NO.

BOARD LETTER APPROVAL

\\«. J

\RICHARD F. HARASICK Senior Assistant General Manager Water System

MARTIN L. ADAMS Chief Operating Officer

DAVID H. WRIGHT General Manager

January 3, 2019DATE:

Amendment No.1 to Agreement No. 47329 - Owner's Agent for the San Fernando Basin Groundwater Remediation Facilities with Hazen and Sawyer

SUBJECT:

SUMMARY

The proposed Amendment No. 1 (Amendment) to Agreement No. 47329 (Agreement) will increase the contract amount by $18,500,000, from a not-to-exceed amount of $30,000,000 to $48,500,000 (budgeted). No extension of time is requested.

During the execution of the Agreement. LADWP encountered a significant volume of unanticipated work requiring the expertise of the Owner's Agent, specifically in the areas of National Contingency Plan (NCP) cost recovery efforts and Proposition 1 funding, the extent of which was originally unaccounted for. The Amendment will offset the unexpected expenses, ensure that adequate funds are available for the completion of the groundwater remediation projects, and assist LADWP in obtaining approximately $250,000,000 in Proposition 1 funding grants by June 2021.

City Council approval is required per Charter Section 373.

RECOMMENDATION

It is requested that the Board of Water and Power Commissioners (Board) adopt the attached Resolution recommending City Council’s approval of the Amendment to the Agreement with Hazen and Sawyer as required In Charter Section 373.

ALTERNATIVES CONSIDERED

The engineering work to be performed under the Agreement involves various treatment processes that require specialized knowledge. LADWP personnel do not currently possess this knowledge, and it is not achievable in the time frame required to remediate the groundwater basin. Training is not feasible since it requires multiple, advanced, university-level courses, and several years of experience designing and operating various types of remediation treatment plants. Engineering designs completed by an engineer without the appropriate level of expertise may jeopardize cost recovery efforts.

Failure to approve the Amendment will indefinitely delay the remediation, which may result in the loss of the beneficial use of this valuable local resource. Additionally, contamination will continue to spread throughout San Fernando Basin (SFB), and delays will also jeopardize LADWP’s ability to collect Proposition 1 grant funding.

FINANCIAL INFORMATION

The Amendment will increase the not-to-exceed amount by $18,500,000, from $30,000,000 to $48,500,000. Funding for the Amendment is budgeted. The duration of the contract shall remain unchanged for a total period of 10 years.

BACKGROUND

The City of Los Angeles (City) has historically relied on local groundwater for an average of 11 percent of its water supply and significantly more during droughts and/or emergencies. SFB is the City’s largest local groundwater basin and comprises over 80 percent of the City’s total annual adjudicated groundwater rights. Contamination from improper chemical disposal practices in years past has severely impaired the groundwater and must be remediated to prevent further loss of this valuable resource.

Since the Agreement was approved by the Board on September 8, 2015, a significant volume of unanticipated work requiring the expertise of the Owner’s Agent team was encountered, specifically, for support for the legal team involved in NCP cost recovery efforts, and the Technical Advisory Committee formed as part of Proposition 1 requirements. To mitigate the impacts of the unanticipated work and to maintain the fast pace of the project schedules, LADWP authorized the Owner’s Agent team to provide their expert support where needed. Funding for the Amendment will, in part, enable LADWP to continue project delivery without interruption in order to obtain approximately $250 million in Proposition 1 funding grants by June 2021.

Amendment No. 1 to Agreement No. 47329/January 3, 2019 Page 2

The not-to-exceed amount of $48,500,000 is based on best available information and is expected to cover all anticipated costs known at this time. However, potential regulatory changes or newly identified contaminants may increase the level of effort required in the future.

Hazen and Sawyer has performed satisfactorily to date on the Agreement.

In accordance with the Mayor's Executive Directive No. 4, the City Administrative Officer’s Report has been requested.

ENVIRONMENTAL DETERMINATION

Determine item is exempt pursuant to California Environmental Quality Act (CEQA) Guidelines 15060 (c)(3). In accordance with this section, an activity is not subject to CEQA if it does not meet the definition of a project. Section 15378 (b)(4) states that government fiscal activities which do not involve any commitment to ary specific project which may result in a potentially significant physical impact on the environment do not meet that definition. Therefore, the award of Contracts to provide professional and technical engineering services to support local water supply development goals is not subject to CEQA.

CITY ATTORNEY

The Office of the City Attorney reviewed and approved the Resolution and Amendment as to form and legality.

ATTACHMENTS

Procurement SummaryResolutionAmendment

Amendment No. 1 to Agreement No. 47329/January 3, 2019 Page 3

PROCUREMENT SUMMARY

Recommended Vendor(s): Hazen and Sawyer1.Procurement Type: Amendment2.Procurement Details:3.

A. Contract Status: Amendment to ExistingB. Bid Advertisement Date: Not ApplicableC. Pre-Bid Conference Date: Not ApplicableD. Bid/Proposal Due Date: Not ApplicableE. Number of Downloads of Solicitation: Not ApplicableF. Number of Bids/Proposals Received: Not ApplicableG. Protest Received: No ____

Buyer Assigned: Harold McCarthy4.I Contract Administrator: William Van Wagoner tLADWP System: Water_________________

5.6.

I Contact Person for Item: William Van Wagoner7.

A. Summary of Bids Received/Evaluation Rating Summary of Proposals

Not applicable to the Amendment.

B. Evaluation of Bid/Proposal/Cooperative Agreement

Agreement No. 47329 was awarded through a competitive negotiation process under Request for Proposal No. 90200 for Owner’s Agent for the SFB Groundwater Remediation Facilities. The fee schedules were determined to be fair and reasonable based on an evaluation of a representative sample of labor classification hourly rates. There are no changes to the fee schedules in the Amendment.

C. Procurement History

Service/Item History - Number of Times Item or Service has been Procured" ' ' 1 ’ 1 ..!■ .■MW..;,-; .HIM I —̂————

Contract/ PO No.

Contractor Term of Contract Start Date Ending OriginalContractAmount

Date

47329 Hazen and Sawyer 10 Years 11/C 5/2015 11/05/2025 330,000,000

endor Experience - Number of Contracts Vendor had with LADWP During the Past 5 Years'

Contract Description

Contract/ PO No.

Ending ContractAmountTerm of Contract j Start Date Date

47329 Hazen and Sawyer 10 Years 11/06/2015 11/05/2025 $30,000,000

D. Local Business Preference Program (LBPP)

Not applicable to the Amendment.

Amendment No. 1 to Agreement No. 47329/January 3, 2019 P1

E. Additional Outreach Efforts Taken

Not applicable to the Amendment.

F. Small Business Enterprises (SBE)/Disab!ed Veterans Business Enterprises (DVBE)/Minority Business Enterprises (MBE)/Women Business Enterprises (WBE)/Other Business Enterprises (OBE) Subcontracting Participation

Hazen and Sawyer was awarded the contract with SBE commitment of 17.4 percent. Actual subcontracting participation commitments and achievements are provided in the table below.

SBE SUBCONTRACTING

CONTRACT EXPENDITURE

THRU 11/1/2018

AMENDED CONTRACT

($48,500,000)

ORIGINAL CONTRACT

($30,000,000)

($20,956,287)SBEPercent of Contract

Percent of Contract

Percent of Achievement

CommitmentAmount Actual Amount Commitment Amount

511,882 $168,8061.67% 0.06%$501,000 0.35%Lee Andrews Inc.Paul Hansen Engineering Water Quality & Treatment Solutions, Inc.

$597,384 2.85% $2,496,670$1,500,000 5.00% 5.15%

$1,568,8247.50% $297,975 1.42% 3.23%i $2,250,000iBeyaz & Patel Inc. (MBE)Diaz Yourman & Associates (MBE)

$201,449 0.96% $891,4561.00%$300,000 1.84%1

0.50% 1.04%$150,000 $216,695 $520,624 , 1.07%

WeekLaboratories, Inc. 0.85%0.07% $179,088 $1,926,557$21,000 3.97%

DDB$10,609$99,000 0,33% 0.05% $49,600Engineering, Inc.

(WBE)________0.10%

M2 Resource $160,000 0.60% $ 38,002 0.42% $467,238 0.96%Consulting(WBE) KOA Corporation 0.33% $185,000$99,000 $0 0% 0.38%Pamela Burton & Company (WBE) ASSET Laboratories

0.33%$99,000 $36,675 0.17% $167,992 0.35%

$21,000 0.07% SO 0% $0 0%l Totals: $1,639,759$5,220,000 17.40% 7.82% $8,442,767 17.40%A

Amendment No. 1 to Agreement No. 47329/January 3, 2019 P2

QBE SUBCONTRACTING

CONTRACT EXPENDITURE

THRU 11/01/2018

ORIGINAL CONTRACT

($30,000,000)

AMENDED CONTRACT

($48,500,000)

OBE ($20,956,287)

Percent of Contract

Percent of Achievement

CommitmentAmount

CommitmentAmount

Percent of Contract

Actual Amount

Worley Parsons Group, Inc. 15.00% $6,335,012 30,23%$4,500,000 $8,770,299 18.08%

Stetson Engineers, 0.33% $15,783$99,000 0.08% $450,856 0.93%Inc.

Arcadis U.S., Inc. $9,900,000 33.00% $5,345,996 25.51% $13,924,881 28.71%

Eurofins Eaton Analystica, Inc.

0.07%$21,000 $0 0% $0 0%

KnappeEnvironmentalConsulting

0.10%$30,000 $0 0% $0 0%

$11,696,791$14,550,000 48.50%Totals: 55.82% $23,146,036 47.72%

Amendment No. 1 to Agreement No. 47329/January 3, 2019 P3

AMENDMENT NO. 1 TO AGREEMENT NO. 47329 BETWEEN

THE LOS ANGELES DEPARTMENT OF WATER AND POWERAND

HAZEN AND SAWYER

AMENDMENT NO. 1 to Agreement No. 47329 is made and entered into by and between the City of Los Angeles, a municipal corporation acting by and through the Los Angeles Department of Water and Power (hereinafter “LADWP’1) and Hazen and Sawyer (hereinafter “H&S,!).

WHEREAS, LADWP selected H&S for Owner’s Agent for the San Fernando Basin Groundwater (SFB) Remediation Facilities; and

WHEREAS, LADWP entered into Agreement No. 47329 (Agreement) with H&S, for a period of ten years from November 6, 2015 to November 5, 2025, with a cumulative not- to-exceed amount of $30,000,000; and

WHEREAS, during the execution of the Agreement, LADWP encountered a significant volume of unanticipated work requiring the expertise of H&S, specifically in the areas of cost recovery, and Proposition 1 funding, to which the extent of support was not originally accounted for; and

WHEREAS, LADWP has determined it necessary to increase the not-to-exceed amount by $18,500,000 to offset the increased charges associated with encountered increase in work, and ensure that adequate funds are available for expert Owner's Agent services through the completion of the Groundwater Remediation Facilities; and

WHEREAS, LADWP has determined that the term of the contract shall remain unchanged, ending November 5, 2025.

NOW, THEREFORE, BE IT RESOLVED that LADWP approves Amendment No. 1 to Agreement No. 47329 to increase the not-to-exceed amount from $30,000,000 to $48,500,000.

BE IT FURTHER RESOLVED Amendment No. 1 to Agreement No. 47329 is as follows:

1. Article 111, Section 301.1, Not-to-Exceed Amount is amended to increase the contract not-to-exceed amount by $18,500,000 to read as follows:

The cumulative compensation that may be paid to the Consultant by the Department for complete and satisfactory performance of services under this Agreement shall not exceed $48,500,000.

Except as amended herein and as previously amended, all terms and conditions of Agreement No. 47329 shall remain the same and are incorporated herein as if fully set forth.

This Amendment No. 1 is executed in duplicate originals, each of which is deemed to be an original. This Amendment No. 1 consists of four pages.

Page 2

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 1 toAgreement No. 47329 to be executed by their duly Authorized Representatives.

DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES BY

BOARD OF WATER AND POWER COMMISSIONERS

By:DAVID H. WRIGHT General Manager

Date:

And:BARBARA E. MOSCHOS

Board Secretary

APPROVED « TO FORM AHO LEGAIVWMICHAEL fi. Film CSTY ATTo !EY

BL ■m

DEPUTY CITY'ATTORNEY

Page 3

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 1 toAgreement No. 47329 to be executed by their duly Authorized Representatives.

HAZEN AND SAWYER INC.

,

By:resident or Managing Principal

///Ah 1Date:

,»»

By:ice-Presiqe|tor)5econd designeeLj-J 0^.

Date:j

M 1/3U8t

05P U|t CITY ATTOBniWrd-

Page 4

Resolution No.

WHEREAS, Hazen and Sawyer was awarded Agreement No. 47329 by the Board of Water and Power Commissioners (Board) on September 8, 2015, for furnishing and delivering services of an Owner’s Agent for San Fernando Groundwater Basin Remediation; and

WHEREAS, Los Angeles Department of Water and Power (LADWP) has determined that, due to increased usage, it is necessary to increase the contract amount and recommends Amendment No. 1 to Agreement No. 47329 with Hazen and Sawyer to increase the contract amount by $18,500,000, from $30,000,000 to $48,500,000, and in accordance with the City Charter Section 373, City Council approval is required.

NOW, THEREFORE, BE IT RESOLVED that Amendment No. 1 to Agreement No. 47329, approved as to form and legality by the City Attorney and on file with the Secretary of the Board is hereby approved.

BE IT FURTHER RESOLVED that the President or Vice President, or the General Manager, or such person as the General Manager shall designate in writing, and the Secretary, Assistant Secretary, or the Acting Secretary of the Board are hereby authorized and directed to execute said Amendment for and on behalf of LADWP upon approval by the City Council pursuant to City Charter Section 373.

BE IT FURTHER RESOLVED that the Chief Accounting Employee of the LADWP, upon proper certification, is authorized and directed to draw demands on the Water Revenue Fund, in accordance with the terms of this Amendment to Agreement No. 47329 and this Resolution.

I HEREBY CERTIFY that the foregoing is a full, true, and correct copy of the Resolution adopted by the Board of Water and Power Commissioners of the City of Los Angeles at its meeting held

Secretary

APPROVED AS TO FORM AND LEGALITY MICHAEL N. FE'JER, CITY ATTORNEY

JAN 10/2G19 ry 'yr)j/Ju£t .

MICHELLE LYMAN/ DEPUTY CITY ATTQfmEY