TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Amendment No. 5 to Professional Services Agreement with Kaplan Kirsch, LLC for Legal Services.
end
RECOMMENDATION
recommendation
Approve Amendment No. 5 to the professional services agreement for legal services with Kaplan Kirsch, LLC, (Contract 2022-285), in the amount of $220,000, for a total contract amount not to exceed $310,000; and authorize the City Manager to execute all necessary documents on behalf of the City.
body
FISCAL IMPACT
The cost of $220,000 for the scope of service to complete additional legal services is included in the FY 2025-26 Budget Water Fund (520).
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
|
Revenue: |
Expenditure: 5207300 - 43510 |
|
Transfer In: |
Transfer Out: |
BACKGROUND
The City's Well No. 11, located west of San Antonio Avenue and south of SR-60, has been inactive since 2018 due to the presence of 123-trichloropropane (123-TCP) exceeding the Maximum Contaminant Level (MCL) in the groundwater produced by the Well.
In 2020, the City initiated its plan to remove 123-TCP from the groundwater produced by Well No. 11 and return the Well to active status by expanding the Eastside Water Treatment Facility (EWTF) capacity to accommodate Well No. 11 water and by building a pipeline connecting Well No. 11 to the EWTF. These respective projects were completed by April 2023. During discussions with the regulatory agency responsible for public water systems, California State Water Resources Control Board Division of Drinking Water (DDW), regarding the EWTF expansion, the City was advised to test groundwater from Well No. 11 for trichloroethylene (TCE) due to concerns that a TCE contaminant plume may have reached the Well. Testing confirmed the presence of TCE in the groundwater produced by Well No. 11. Fortunately, the water treatment technologies employed at the EWTF effectively remove TCE from groundwater. However, DDW requires a cooperative plan for potentially responsible parties to implement the monitoring and maintenance procedures for compliance with the California Process Memo 97-005 Policy before permitting the City to bring Well No. 11 into active production.
On April 9, 2022, the City retained the law firm Kaplan Kirsch and Rockwell, LLC to assist in evaluating the TCE levels at Well No. 11, identify potential remedies, and initiate communication with General Electric Corporation (GE), the responsible party for the TCE plume. Kaplan Kirsch and Rockwell, LLC was selected due to their expertise in TCE contamination. On August 18, 2022, Amendment No. 1 was executed to extend the agreement term for an additional fiscal year. On April 18, 2023, City Council approved Amendment No. 2, increasing the agreement amount by $45,000 to support continued legal services. Amendment No. 3, approved on July 28, 2023, extended the agreement for an additional fiscal year. On August 6, 2024, Amendment No. 4 was approved to extend the term further and to reflect the firm's name change to Kaplan Kirsch, LLC (KK). Amendment No. 5 is proposed to extend the agreement term for an additional two fiscal years and increase the agreement amount by $220,000 to support ongoing legal representation to address additional maintenance and operational expenses related to removing TCE contaminants from the groundwater at Well No. 11.
ISSUES/ANALYSIS
Currently, Kaplan Kirsch, LLC, is working on behalf of the City to acquire assistance from General Electric to model the TCE plume in relation to the groundwater basin in the vicinity of Well No. 11. Communication with GE regarding the TCE impact to Well No. 11 is ongoing and will continue until mutually acceptable terms are reached for the City to recover additional maintenance and operational expenses to remove TCE from the well-produced groundwater. Ongoing communications with DDW and GE, with support from KK, are estimated to last two years and require an additional $220,000. The potential to recover on-going maintenance costs exceeds the legal fees for KK.
Staff recommends that the City Council approve Amendment No. 5 to the professional services agreement with Kaplan Kirsch, LLC, in the amount of $220,000, bringing the total not-to-exceed contract amount to $310,000 for continued legal services in FY2025-26.
Attachment: Exhibit A - PSA Amendment No. 5 - Kaplan Kirsch, LLC