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HomeMy WebLinkAboutItem 12c - Budget Appropriation for Laboratory Testing ServicesResolution No. 7415 and Purchase Order Change Order with Weck Laboratory, Inc. March 1, 2022 Page 1 of 3 DATE: March 01, 2022 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: John Corona, Utilities Superintendent SUBJECT: RESOLUTION NO. 7415 AMENDING THE FISCAL YEAR 2021-22 WATER OPERATING BUDGET AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR LABORATORY TESTING SERVICES OF CITY WATER SAMPLES IN THE AMOUNT OF $35,000, OFFSET BY A REDUCTION IN THE WATER RESERVE FUND, AND APPROVING A CHANGE ORDER TO THE PURCHASE ORDER WITH WECK LABORATORY, INC. Recommendation: Adopt and Approve SUMMARY On July 1, 2021, the Public Works Services Department (“PWSD”) received a permit to operate the Live Oak GAC treatment system located at the Live Oak Well facility. The permit to operate is conditional upon treating the Live Oak Well for PFAS contamination with Granular Activated Carbon (“GAC”) and conducting certain testing of the water to ensure potability. Due to this increase in operational expenses with the Live Oak GAC treatment system, the current Purchase Order with Weck Laboratory, Inc. has been exhausted. It is recommended that the City Council adopt Resolution No. 7415 amending the Fiscal Year 2021-22 Water Operating Budget and authorizing a supplemental budget appropriation for laboratory testing services of City water samples in the amount of $35,000, offset by a reduction in the Water Reserve Fund, and approving the Change Order to the Purchase Order with Weck Laboratory, Inc. BACKGROUND The PWSD operates the City’s water distribution system and provides water service to more than 56,000 residents through approximately 14,000 connections. The State of California Domestic Water Quality and Monitoring Regulations require that water samples be collected and tested weekly, monthly, quarterly, and annually by a CDPH certified laboratory (Chapter 15, Title 22, California Code of Regulations). On April 17, 2018, the City Council approved a Professional Services Agreement with Weck Laboratories, Inc. Resolution No. 7415 and Purchase Order Change Order with Weck Laboratory, Inc. March 1, 2022 Page 2 of 3 for laboratory testing services of City water samples in an amount not to exceed $45,497, with the option of three one-year extensions. Weck Laboratory, Inc. is in its final contract year. The scope of work in their agreement includes all compliance water sampling for Arcadia’s public water system. On July 6, 2021, the City resumed operation of the Live Oak Well, which included startup of the new Live Oak Well GAC treatment system designed to remove per- and polyfluoroalkyl substances (“PFAS”) and volatile organic compounds (“VOCs”) from the Main San Gabriel Water Basin. To comply with the State Water Resources Control Board Water Quality and Monitoring Regulations, water samples must now be taken from this well. DISCUSSION On July 1, 2021, the City received a conditional approval to start operations of the Live Oak Well GAC treatment system. The conditional approval was based on a monthly operation and maintenance plan that includes weekly, monthly, and annual water sampling for the PFAS contaminant, which is the primary design of treatment for the Live Oak Well GAC system. PFAS sampling is a necessary requirement to remain in compliance with State of California Drinking Water Standards. To continue operating the Live Oak Well GAC treatment system, PFAS sampling must be completed per the operation and maintenance plan. Due to the emerging status of PFAS contamination, analytics are extremely expensive as compared with other routine sampling. This analytical cost was not available in the original Laboratory Water Sampling agreement with Weck Laboratory, Inc. Due to the increase in operational expenses with the Live Oak GAC treatment system, the current Purchase Order with Weck Laboratory, Inc. has been exhausted. There is budget capacity for five months of water sampling required for compliance with the State Water Resources Control Board. Weck Laboratory, Inc. is in its last contract extension. The PWSD will request proposals for laboratory testing services of City water samples in May 2022 and will include the costs of the additional testing as well as testing at the new well stie at the PWSD yard for water quality samples. In the meantime, it is necessary to increase the Purchase Order with Weck Laboratory, Inc. The total cost to include water sampling for the Live Oak Well GAC treatment system is $35,000 and is necessary to continue operating the Live Oak Well. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. Resolution No. 7415 and Purchase Order Change Order with Weck Laboratory, Inc. March 1, 2022 Page 3 of 3 FISCAL IMPACT The total cost to include water sampling for the Live Oak Well GAC treatment system is $35,000. An appropriation of $35,000 is being requested from the Water Reserve Fund for the Change Order to the current Purchase Order with Weck Laboratory, Inc. Sufficient funds are available to cover this request. Furthermore, City staff has applied for grant funding for the Live Oak Well operation and maintenance costs, which includes water sampling for PFAS. The funding, if approved, will reimburse our cost for sampling as it directly relates to the PFAS contaminant that is being removed using the GAC treatment system. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 7415 amending the Fiscal Year 2021-22 Water Operating Budget and authorizing a supplemental budget appropriation for laboratory testing services of City water samples in the amount of $35,000, offset by a reduction in the Water Reserve Fund, and approving the Change Order to the Purchase Order with Weck Laboratory, Inc. Attachment: Resolution No. 7415 RESOLUTION NO. 7415 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, AMENDING THE FISCAL YEAR 2021-22 WATER OPERATING BUDGET AUTHORIZING A SUPPLEMENTAL BUDGET APPROPRIATION FOR LABORATORY TESTING SERVICES OF CITY WATER SAMPLES IN THE AMOUNT OF $35,000, OFFSET BY A REDUCTION IN THE WATER RESERVE FUND, AND APPROVING A CHANGE ORDER TO THE PURCHASE ORDER WITH WECK LABORATORY, INC. WHEREAS, the Public Works Services Department ("PWSD") operates the City's water distribution system and provides water service to more than 56,000 residents; and WHEREAS, the State of California Water Quality and Monitoring Regulations require water samples to be collected and tested weekly, quarterly, and annually by a CDPH certified laboratory; and WHEREAS, on July 6, 2021, the City resumed operation of the Live Oak Well which included startup of the new Live Oak Well GAC treatment designed to remove the contaminant PFAS; and WHEREAS, a conditional approval to start operations of the Live Oak Well GAC treatment system is based on monthly operation and maintenance plan that includes weekly, monthly, and annual water sampling for the PFAS contaminant; and WHEREAS, a change order in the amount of $35,000 to the Purchase Order with Weck Laboratory, Inc. is necessary to take samples from the Live Oak Well to test for PFAS; and WHEREAS, the City Manager has certified that there are sufficient reserves available in the Water Reserve Fund for appropriation. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS: 1