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07-1016_PSOMAS_Personal Services Agreement0 0 PERSONAL SERVICES AGREEMENT FFHI AG EMENT is made and entered into this �(o day of LCD 2007, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and PSOMAS, (hereinafter referred to as "Consultant"). RECITALS: WHEREAS, City desires to retain the services of Consultant for the Conduct of Oversight Review and Evaluation of the MTBE Testing and Remediation by Chevron; and WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, City and Consultant mutually agree as follows: Section 1. Scope of Work. The scope of work to be performed by Consultant shall consist of those tasks as set forth in Exhibit "A," Described as PSOMAS's Proposal to Conduct of Oversight Review and Evaluation of the MTBE Testing and Remediation by Chevron, dated August 23, 2007, attached and incorporated herein by reference. Consultant warrants that all of its services shall be performed in a competent, professional and satisfactory manner and in accordance with the prevalent standards of its profession. Section 2. Term. This Agreement shall commence on the effective date of this Agreement and services required hereunder shall be completed by no later 365 days from the date of Notice to Proceed. Section 3. Compensation. 3.1 Amount. Total compensation for the scope of services, which includes all work specified for this Project, shall be completed for an amount not to exceed Eighty Four Thousand p1 Dollars ($84,000) as set forth in Exhibit "A." I 3.2 Rate Schedule. ATTACHMENT 0 0 The services shall be billed to the City at the hourly rate set forth in Exhibit "A," attached and incorporated herein by reference. Included within the compensation are all the Consultant's ordinary office and overhead expenses incurred by it, its agents and employees, including meetings with the City representatives and incidental costs to perform the stipulated services. Submittals shall be in accordance with Consultant's proposal. 3.3 Method of Payment. Consultant shall submit monthly invoices based on total services, which have been satisfactorily completed and specifying a percentage of projected completion for approval by the City. The City will pay monthly progress payments based on approved invoices in accordance with this Section. For extra work not part of this Agreement, a written authorization from City is required prior to Consultant undertaking any extra work. 3.4 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to City. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of City, and shall obtain no rights to any benefits which accrue to City's employees. Section 5. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. 2 0 0 Section 6. Changes to Scope of Work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the City, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new agreement, including but not limited to any additional Consultant's fees. Section 7. Familiarity with Work and Construction Site. By executing this Agreement, Consultant warrants that: (1) it has investigated the work to be performed; (2) it has investigated the proposed well sites, including the location of all observable utilities, and is aware of all observable conditions there; and (3) it understands the facilities, difficulties and restrictions of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, it shall immediately inform City of this and shall not proceed with further work under this Agreement until written instructions are received from the City. Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Compliance with Law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 10. Conflicts of Interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of Work Product. At the completion of the contract period, Consultant shall have delivered to City at least one (1) copy of any final reports and architectural drawings containing Consultant's findings, conclusions, and recommendations with any support documentation. All reports submitted to the City shall be in reproducible format. All services to be rendered hereunder shall be subject to the direction and approval of the City. 3 0 0 Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's professional services. City's reuse of such materials on a project other than the Conduct of Oversight Review and Evaluation of MTBE Testing and Remediation by Chevron shall be at the City's sole risk. Section 13. Indemnity. Consultant agrees to protect, defend and hold harmless City, its elected and appointed officials and employees from any and all claims, liabilities, expenses or damages of any nature, including attorneys' fees, for injury or death of any person or damage to property or interference with use of property to the extent resulting form the negligent or other wrongful acts, errors and omissions committed by Consultant arising out of or in connection with the work, operation or activities of Consultant, its agents, employees and subcontractors in carrying out its obligations under this Agreement. Consultants liability hereunder shall be limited to the greater of Consultant's fee or $50,000. Section 14. Insurance. Insurance required herein shall be valid for a minimum of one year, or term of contract, whichever is longer, and it shall be provided by Admitted Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A - Class VII or better. 14.1 Comprehensive General Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive General Liability coverage in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period. If subject to a general aggregate, such aggregates shall be at least $1,000,000. 14.2 Comprehensive Automobile Liability. 0 0 0 Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non - owned vehicles in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period 14.3 Worker's Compensation. If Consultant intends to employ employees to perform services under this Agreement, Consultant shall obtain and maintain, during the term of this Agreement, Worker's Compensation Employer's Liability Insurance in the statutory amount as required by state law. 14.4 Proof of Insurance Requirements/Endorsement. Prior to beginning any work under this Agreement, Consultant shall submit the insurance certificates, including the deductible or self -retention amount, and an additional insured endorsement to the Consultant's general liability and umbrella liability policies to the City Clerk's office for certification that the insurance requirements of this Agreement have been satisfied. 14.5 Errors and Omissions Coverage Throughout the term of this Agreement, Consultant shall maintain Errors and Omissions Coverage (professional liability coverage) in an amount of not less than One Million Dollars ($1,000,000). Prior to beginning any work under this Agreement, Consultant shall submit an insurance certificate to the Clerk of the Board's office for certification that the insurance requirements of this Agreement have been satisfied. 14.6 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be cancelled, nor the coverages reduced, until after thirty (30) days' written notice is given to City, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 14.7 Terms of Compensation. 11 E Consultant shall not receive any compensation until all insurance provisions have been satisfied. 14.8 Notice to Proceed. Consultant shall not proceed with any work under this Agreement until the City has issued a written "Notice to Proceed" verifying that Consultant has complied with all insurance requirements of this Agreement. Section 15. Termination. City shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to Consultant. In addition, this Agreement may be terminated for cause by providing ten (10) days' notice to the other party of a material breach of contract. If the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. Section 16. Notice. All notices shall be personally delivered or mailed to the below listed addresses, or to such other addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Public Works Director To Consultant: PSOMAS 3187 Red Hill Avenue, Suite 250 Costa Mesa, CA 92626 Attn: John R. Thornton, Vice President / Principal Section 17. Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Section 18. Dispute Resolution. In the event of a dispute where the amount in controversy does not exceed the greater of the consultants fee or $50,000 arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by A L �J binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS'). Section 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. CITY OF SAN JUAN CAPISTRANO MA M�l�Y/WE11��1 APPROVED AS TO FORM: John R. 'haw, City Attorney 7 LIM CONSULTANT In MAYOR Thornton; !sident / Principal Infamatim wd Engineering Sdutims August 23, 2007 Mr. Eric Bauman City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Subject. Proposal to Monitor Chevron Investigation Activities related to Investigation of MTBE Contaminant Plumes Upgradient of Tirador and Dance Hall Production Wells for the City of San Juan Capistrano, California Dear Mr. Bauman: Psomas is pleased to submit this proposal to monitor site investigation activities currently being conducted by Chevron related to the investigation of the MTBE contaminant plumes upgradient of the City San Juan Capistrano (CSJC) production wells referred to as the Tirador well and Dance Hall well. This proposal is based on our meeting of August 3, 2007 and subsequent discussions with you and the County of Orange oversite personnel concerning the ongoing investigations at the two Chevron service stations located in the CSJC. BACKGROUND Chevron has indicated to the CSJC that two gasoline dispensing stations located at the comers of 1) Del Obispo and Camino Capistrano and 2) Del Obispo and Ortega Highway, respectively, have experienced a release of petroleum hydrocarbons including MTBE. Site investigations conducted by Chevron with their environmental consultant (Conestoga Rovers) have indicated that MTBE has been detected above maximum contaminant levels (MCLS) in the groundwater and has migrated offsite from the suspected points of release and appear to be migrating in the direction of existing groundwater production wells Tirador and Dance Hall (these wells are currently supplying feedwater to the Phase I desalter unit near the Dance Hall well). The CSJC is concerned that MTBE as well as other contaminants may migrate to existing groundwater production wells Tirador and Dance Hall. If these wells become impacted with MTBE, they may require removal from the feedwater supply and the CSJC would be required to find alternative sources of water. 3187 FW HII A� site= QAa My CA92M 714.751.7M 714.51588 ft w pep= EXHIBIT "A" PSOMAS Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 2 of 6 August 23, 2007 APPROACH Based on preliminary information obtained from the County of Orange regarding ongoing investigations at the Chevron service stations and an understanding that Chevron desires to install wells at the leading edges on the plume, Psomas has developed a scope of work to monitor site investigation activities conducted by Chevron and to advise the CSJC of the progress and potential impact of the contaminant plumes on the existing production wells. The objectives of the program are to: • Review proposed workplan and comment on proposed scope of work • Monitor groundwater quality in the alluvial groundwater system; • Identify the lateral and vertical hydraulic gradient in the alluvial aquifer system; • Facilitate the acquisition of information that would assist in calculating the potential time frame between detection in the sentinel wells and impact to the production wells. The ultimate goal of the program is to provide an early warning system (for the presence of MTBE and others associated compounds) in order to give sufficient warning that the production wells may be impacted with MTBE such that actions (such as treatment equipment) can be designed and installed on the production wells to mitigate any potential impact these contaminants may have on the water supply system. The elements of the evaluation will include the following: • Provide Chevron and County of suitability of proposed investigations; • Monitor site investigation activities; Orange with technical comments on • Collect split groundwater samples to permit timely acquisition and interpretation of pertinent information; • Analyze and report collected data to CSJC in a timely manner; • Provide estimate of time frame in which production wells may be impacted from contaminant plumes; • Provide technical consultation to the CSJC regarding the potential impact of MTBE on the production wells and available alternatives. PSOMAS Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 3 of 6 August 23, 2007 SCOPE OF SERVICES Task 1—Meetings, Workplan Review and Negotiations Psomas will attend a CSJC water commission meeting to present the proposed plan and to answer questions. In addition, Psomas will review Chevron's proposed workplan and provide comments to County of Orange. In addition, Psomas will review the recently acquired site investigation activities including discussions with the County of Orange and CSJC. Task 2 — Monitoring of Site Investigation Activities Psomas proposes to monitor portions the site investigation activities undertaken by Chevron and its consultants including boring advancement (geology, lithology), well installation (suitability), and well development (representativeness). When possible, Psomas will record pertinent observations including geologic descriptions, depth to groundwater, well construction details. Note: At the present time, Psomas does not expect to maintain staff in the field on a full-time basis during well construction and development but will make strategic inspections to monitor progress and status of the proposed work. Task 3 — Groundwater Sampling Psomas will collect split samples from monitoring wells installed by Chevron and have an independent analytical laboratory analyze the samples for volatile organic compounds using EPA method 8260. The results of the analysis will be reported in a letter report to the CSJC. Task 4 — Data Analysis Following completion of well installation by Chevron and groundwater sampling, the data collected will be reduced and analyzed. Groundwater contour maps for each area will be developed and groundwater gradients will be calculated. In addition, estimates of groundwater movement will be developed along with estimated direction and rate of travel of MTBE in the alluvial groundwater system. Note: Estimated arrival times for MTBE to the sentinel wells (to be installed by Chevron) will be dependent on the availability of data from expanded groundwater investigations currently being conducted by Chevron along Camino Capistrano (Dance Hall Well) and future investigations planned along Del Obispo Street (Tirador Well). The estimated time of arrival of MTBE at the sentinel wells will assist in determining the revised monitoring frequency of the sentinel wells. If MTBE reaches the sentinel wells, sufficient data will have been accumulated to predict the travel time to the Dance Hall & Tirador wells. Task 5 —Report PSOMAS Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 4 of 6 August 23, 2007 Following completion and analysis of the sentinel monitoring wells and groundwater sampling, a report will be prepared that presents the methodologies employed and results of the installation and testing of the sentinel monitoring wells. The report will include boring logs (dependent on availability from Chevron), testing procedures and laboratory results. In addition, the report will include groundwater contour maps and spatial distribution of MTBE and other compounds that may be detected as part of the sentinel monitoring well program. Task 6 — General Consulting Services Psomas will maintain communication with the Orange County Health Care Agency, Local Oversight Program, Chevron, Chevron's consultant, and the CSJC. This effort will include meetings, phone conversations, e-mail/mail correspondence and other activities associated with maintaining communication and knowledge of proposed site investigation activities and results of investigations and to keep the CSJC apprised of on-going activities at the two stations. SCHEDULE Following receipt of notice to proceed, the proposed scope of work is anticipated to be completed in approximately 6 months. Table 1 presents the anticipated time requirements for each of the proposed tasks. TABLE 1 TIME REQUIREMENTS BY TASK Sentinel Monitoring Wells for CSJC Item Time Requirements Task 1 — Meetings, Workplan Review and Negotiations 30 days Task 2 — Monitoring of Site Investigation Activities 16 days (estimate) Task 3 — Groundwater Sampling 2 days every month Task 4 — Data Analysis 10 days Task 5 — Report 20 days Task 6 — General Consulting Services As needed Mobilization to the field will be dependent on Chevrons schedule and approval by the regulatory agencies. Delays in approval or changes to the anticipated scope of work may have an impact on the overall schedule. COST ESTIMATE PSOMAS Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 5 of 6 August 23, 2007 The proposed scope of work will be conducted on a time and materials basis with an estimated total cost of $84,000. A breakdown of the cost by individual task is included in Table 2. TABLE 2 SUMMARY OF COSTS BY TASK Well Installation and Monthly Monitoring TASK COST Task 1 — Meetings, Workplan Review and Negotiations $9,100 Task 2 — Monitoring of Site Investigation Activities $10,600 Task 3 — Groundwater Sampling $26,900 Task 4 — Data Analysis $12,000 Task 5 — Report $14,800 Task 6 — General Consulting Services $10,600 TOTAL $84,000 LIST OF ASSUMPTIONS The following assumptions were used in developing the schedule and associated cost estimate for this project. 1. Psomas will be given unencumbered access to the proposed monitoring well locations. 2. Onsite work activities are not delayed by CSJC or others. 3. The advancement and completion of the proposed monitoring wells takes no more than twelve days. 4. It is assumed that Chevron's consultant will be responsible for all drilling, well installation, groundwater sampling activities including waste disposal. Psomas will collect groundwater split samples with Chevron's consultant. 5. Chevron will share technical information in a timely manner prior to submission of any reports to the regulatory agencies. 6. A total of 14 water samples (12 from monitoring wells and 2 QA/QC samples) per month will be collected and analyzed for EPA Method 826013. A total of 84 samples (14 samples for 6 monitoring periods) will be collected over the monitoring program. PSOMAS Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 6 of 6 August 23, 2007 All field activities will occur during normal working hours (7:00 am -7:00 pm) Monday through Friday. 8. Final Report will include a discussion of the testing activities, site location map, and table of the laboratory analytical results. The report will also include a preliminary estimate of the travel time for contaminants that may be encountered. The report will also include as appendices: laboratory reporting forms and chain of custody forms. 9. One draft report will be submitted for one round of review by CSJC. Following CSJC review, the report will be finalized and five (5) copies of the final report will be submitted to CSJC. All work will be performed in accordance with the attached agreement which is included and made part of this proposal. We appreciate the opportunity to submit this proposal and look forward to working with you on this project. If you have any questions, please call Michael P. Donovan at (714) 481-7934. Very truly yours, PSOMAS John R. Thornton, P.E. Principal and Vice President 41411(�11� Michael P. Donovan, P.G., C.Hg. Senior Hydrogeologist 0 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493.1171 (949) 493-1053 FAX www.sanjuancapistrano.org TRANSMITTAL TO John R. Thornton PSOMAS 3187 Red Hill Avenue, Suite 250 Costa Mesa, CA 92626 DATE: October 24, 2007 Jman IAt01N111f1 • muusltl 1961 1776 FROM: Maria Morris, Deputy City Clerk (949) 443-6309 MEMBERS OF THE CITY COUNCIL SAM ALLEVATO THOMAS W. HRIBAR MARK NIELSEN JOE SOTO DR. LONDRES USO RE: Personal Services Agreement — Oversight Review & Evaluation of the MTBE Testing and MTBE Testing and Remediation by Chevron Thank you for maintaining documentation confirming compliance with the terms of the agreement related to insurance. Please keep in mind this documentation must remain current with our office during the term of this agreement. If you have questions related to insurance requirements, please call me at (949) 443-6309. If you have questions concerning the agreement, please contact Eric P. Bauman, Water Engineering Manager (949) 487-4312. An original agreement is enclosed for your records. Cc: Eric P. Bauman, Water Engineering Manager San Juan Capistrano: Preserving the Past to Enhance the Future 04 Printed on 100% recycled paper Page 1 of 2 • Christine Casper From: John Thornton Uthomton@psomas.com] Sent: Wednesday, October 24, 2007 9:41 AM To: Christine Casper Subject: RE: PSOMAS City Council Revised PSA Attachments: CSJC 10.24.07.pdf Thank you Christine, attached is an initialed and scanned copy. Let me know if you need more. John R. Thornton, PE I P S O M A S Principal /Vice President 3187 PCA Hill Ave Ste 250 �:osla mesa CA 92626 )lice 714751777; Dnect 714 431 7939 w W.psomas.com ithornton@psomas.com From: Christine Casper[mailto:ccasper@San)uanCapistrano.org] Sent: Tuesday, October 23, 2007 5:19 PM To: John Thornton Cc: Eric Bauman subject: FW: PSOMAS City Council Revised PSA Hi John, The City Council asked that we revise one small section of the PSA with regards to the MTBE oversight review and evaluation agreement. The section is on the first page, section 3.1. I am sending you 2 of these pages for you to initial or sign next to and then return either scanned copies with an e-mail or by mail with a note indicating that this change is OK with you. Please call myself, or Eric Bauman if you have any questions or issues. Thank you, Chr6w"AzM Caber Administrative Specialist Public Works Department 949-487-4306 FAX 493-3955 From: Eric Bauman Sent: Tuesday, October 23, 2007 5:12 PM To: Christine Casper Cc: Michelle Perea Subject: FW: PSOMAS City Council Revised PSA Chris: 10/24/2007 • n U Page 2 of 2 You can send the request directly to PSOMAS. You have access to my v -cards. Eric. From: Christine Casper Sent: Tuesday, October 23, 2007 4:35 PM To: Eric Bauman Subject: PSOMAS City Council Revised PSA Hi Eric, Can you e-mail this to John Thornton to have him initial and return with note or e-mail that it is acceptable. The item is section 3.1, amount. Meg wrote the verbiage and John Shaw approved. If you think that it is better to send via mail, let me know. Thanks! Chr%w"ne'M Caper Administrative Specialist Public Works Department 949-487-4306 FAX 493-3955 10/24/2007 Page 1 of 1 Christine Casper From: Meg Monahan Sent: Monday, October 22, 2007 11:47 AM To: Christine Casper Subject: RE: PSOMAS PSA Ili Chris, I to" about this? "3.1 Total compensation for the scope of services, which includes all work specified for this Project, shall be completed for an amount not to exceed Gightc Pour Thousand Dollars (584,000) as set forth in FXhibit _A.» Thanks, Meg Monahan, MMC City Clerk 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (949)443-6308 (949)493 -1053 -fax From: Christine Casper Sent: Monday, October 22, 2007 11:38 AM To: Meg Monahan Subject: PSOMAS PSA Thanks Meg! Ow ' 'uw M Ca4per Administrative Specialist Public Works Department 949-487-4306 FAX 493-3955 From: administator@sanjuancapistrano [maiim:administrator@sanjuancapistrano] Sent: Monday, October 22, 2007 10:37 AM To: Christine Casper Subject: Attached Image 10/23/2007 Page 1 of 2 Meg Monahan From: Meg Monahan t Sent: Wednesday, October 17, 2007 1:09 PM \` To: Eric Bauman Cc: Christine Casper Subject: PSOMAS agreement revisions. I am returning the PSOMAS agreement for revision (sorry) — through interoffice mail. . Please make the appropriate revisions, . Return the signed agreement back to me, AND . Provide confirmation to the Clerk's office that the contractor agrees with the changes. The best confirmation is their signature on the page that is revised (such as a fax or e- mailed pdf). That will become part of their file. Please work with Omar with any questions. COUNCIL ACTION: Consideration of Personal Services Agreement to Conduct an Oversight Review and Evaluation of MTBE Testing and Remediation by Chevron and Appropriation of Funds (PSOMAS) (600.30): Personal services agreement with PSOMAS for $84,000 to conduct an oversight review and evaluation of Methyl Tertiary -Butyl Ether (MBTE) testing and remediation by Chevron approved, including a provision that all work specified will be completed for $84,000; $90,000 appropriated from the water operations fund reserves for the cost of the services; and staff to pursue all avenues to seek reimbursement for oversight costs from Chevron: Nielsen/Hribar, 5-0 Thanks, Meg Monahan, MMC City Clerk 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (949)443-6308 (949)493 -1053 -fax Meg Monahan, MMC City Clerk 32400 Paseo Adelanto San Juan Capistrano, CA 92675 (949)443-6308 (949) 493-1053 - fax 10/17/2007 • SUPPLEMENTARY AGENDA REPORT TO: Dave Adams, City Manager FROM: Cynthia L. Russell, Interim Public Works Director 1011612007 Gla SUBJECT: Consideration of Personal Services Agreement to Conduct an Oversight Review and Evaluation of MTBE Testing and Remediation by Chevron and Appropriation of Funds (PSOMAS) No Change SITUATION: Please see attached — revision to the Personal Services Agreement: Page 4, Section 12. Ownership of Documents. — last two lines have been revised to properly reference the description of the work to be performed by the consultant. Respectfully submitted, Cynthi L. Russell, Assistant City Manager Interim Public Works Director Attachment: Prepared by, r Eric Bauman, Water Engineering Manager 1. Revised page 4 of the Personal Services Agreement Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's illub�. professional services. City's reuse of such materials on a project other than the Conduct of Oversight Review and Evaluation of MTBE Testing and Remediation by Chevron shall be at the City's sole risk. Section 13. Indemnity. Consultant agrees to protect, defend and hold harmless City, its elected and appointed officials and employees from any and all claims, liabilities, expenses or damages of any nature, including attorneys' fees, for injury or death of any person or damage to property or interference with use of property to the extent resulting form the negligent or other wrongful acts, errors and omissions committed by Consultant arising out of or in connection with the work, operation or activities of Consultant, its agents, employees and subcontractors in carrying out its obligations under this Agreement. Consultants liability hereunder shall be limited to the greater of Consultant's fee or $50,000. Section 14. Insurance. Insurance required herein shall be valid for a minimum of one year, or term of contract, whichever is longer, and it shall be provided by Admitted Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A - Class VII or better. 14.1 Comprehensive General Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive General Liability coverage in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period. If subject to a general aggregate, such aggregates shall be at least $1,000,000. 14.2 Comprehensive Automobile Liability. 4 Attachment 1 • • 10/16/2007 AGENDA REPORT G 1 a TO: Dave Adams, City Manager FROM: Cindy Russell, Interim Public Works Director SUBJECT: Consideration of Personal Services Agreement to Conduct an Oversight Review and Evaluation of MTBE Testing and Remediation by Chevron and Appropriations of Funds (PSOMAS) RECOMMENDATION: By motion, 1.) Approve a Personal Services Agreement with PSOMAS for $84,000 to conduct an Oversight Review and Evaluation of MTBE Testing and Remediation by Chevron; and, 2) Appropriate $90,000 from the Water Operations Fund reserves. SITUATION: In March 2007, the Orange County Health Care Agency (OCHCA) and Chevron jointly reported to the City of San Juan Capistrano (City) that there had been a release of Methyl Tertiary -Butyl Ether (MTBE) from Chevron gas stations at two sites. The sites are located at the intersection of Camino Capistrano and Del Obispo (Camino Capistrano site), and Ortega Hwy and 1-5 (Ortega site) (Attachment 1). The two closest wells downstream from these gas stations, are respectively, the Ground Water Recovery Plant's (GWRP) Dance Hall well and the Tirador well. The MTBE release was reported as local to the sites, but moving at an undetermined rate and direction. Chevron staff, under the direction of staff from OCHCA, has conducted and is continuing to conduct additional monitoring to measure the concentration location of the MTBE that has moved from the site. On May 7, 2007, the City administratively signed a contract with PSOMAS to review the procedures and results of the MTBE and related compounds testing conducted by Chevron to date. The examination resulted in a recommendation to monitor the progress of the testing by Chevron, before taking further action. Tests conducted for MTBE, DIPE, TAME, and BTEX in June 2007 at Dance Hall and Tirador wells showed no detectable levels. Chevron started offsite testing for the Camino Capistrano site in late June and is still in the process of sampling and testing as of early October 2007. Chevron delivered a preliminary report in late September. Offsite testing for the Ortega site has been delayed due to the inability of Chevron to secure permission from the Agenda Report • Paae 2 0 October 16, 2007 property owners in the area to conduct the testing. Partial performance of the testing at the Ortega site began in September 2007. On July 24, 2007, the City's Water Advisory Commission (Commission) requested the presentation of a proposal to conduct proactive testing and monitoring. The program as conceived is to install an array of six (6) clusters of sentinel wells and monitor these wells monthly for MTBE. Each cluster well was to consist of a shallow well driven to approximately 30 feet below ground surface (bgs), and a second nearby well driven to approximately 80 feet bgs. The results of this testing, along with results from testing by Chevron, would have allowed an evaluation of the rate of travel of groundwater and the levels of MTBE present at the Chevron sites. This would help to predict whether and when the sentinel wells may expect to test positive for MTBE. At the Commission's meetings of August 28th and September 25, 2007, presentations on the conditions, progress to date, and expected progress, were made by Anthony Martinez of Orange County Health (OCH); Michael Donovan of PSOMAS, Natasha Molla of Chevron, and by Lynleigh Lowry of Conestoga -Rovers (Consultant to Chevron.) The presentation on August 28th showed that sufficient progress had been made to delay taking action on the sentinel wells and to consider oversight by PSOMAS of the work conducted by Chevron. At that time, the Commission requested a proposal to provide oversight. On September 24, 2007, OCHCA approved the "Site Assessment Work Plan" (SAWP) presented by Chevron. The Chevron plan was similar to the sentinel wells proposed by PSOMAS but has some differences. The SAWP covers only the Camino Capistrano site, as OCHCA does not consider that sufficient data has been collected for the Ortega site to position sentinel wells. The SAWP includes 4 well clusters instead of 3, but puts them closer to the currently defined MTBE plume. The well clusters are placed shallower, 65 feet, as opposed to the recommendation of 85 feet by PSOMAS. At the September 25, 2007, Commission meeting, a proposal by PSOMAS to conduct oversight of the work by Chevron was presented. The oversight proposal was to monitor Chevron's investigation activities related to investigation of MTBE contaminant plumes. The proposal provides a review of the work by Chevron for completeness, effectiveness, and timeliness to assure the City that everything that can be reasonably done, is being done; and if not, provide a basis to bring a case to the OCHCA. The proposal is Exhibit A to the Personal Services Agreement (Attachment 2). The cost of the oversight work by PSOMAS is $84,000. On October 8th, 2007 Chevron provided attachment No. 3, stating Chevron's position on events, progress, and Chevron's plans in the near future. Agenda Report • • October 16, 2007 Paqe 3 COMMISSION/BOARD REVIEW AND RECOMMENDATIONS: The Water Advisory Commission reviewed this item at its meeting of September 25, 2007, and recommends the award of a contract to PSOMAS, in the amount of $84,000 for the Conduct of Oversight Review and Evaluation of the MTBE Testing and Remediation by Chevron. FINANCIAL CONSIDERATIONS: The cost of this oversight work is $84,000, plus an additional $6,000 in staff cost, for a current projected cost of $90,000. If the City pursues this work without compensation from Chevron, the funds will need to come from the Water Operations Fund reserves. Although the water operations fund is currently deficit, this work needs to be undertaken to properly monitor this situation. NOTIFICATION: PSOMAS Natasha Molla, Chevron RECOMMENDATION: By motion, 1) Award a contract to PSOMAS for $84,000 to conduct an Oversight Review and Evaluation of MTBE Testing and Remediation by Chevron; and, 2) Appropriate $90,000 from the Water Operations Fund reserves. Respectfully submitted, Iindy ! CfZusell, Interim Public Works Director Prepared by 1 Eric Bauman, PE, Water Engineering Manager Attachments: 1. General Location Map 2. Personal Services Agreement 3. Letter from Chevron Sentinel Well Proposal Project Location Chevron Service Station Case No. 89 UT027 Chevron Service Station Case No. 95 UT002 0 0 Dance Hall Well ATTACHMENT 0 • PERSONAL SERVICES AGREEMENT THIS AGREEMENT is made and entered into this day of , 2007, by and between the City of San Juan Capistrano (hereinafter referred to as the "City") and PSOMAS, (hereinafter referred to as "Consultant"). RECITALS: WHEREAS, City desires to retain the services of Consultant for the Conduct of Oversight Review and Evaluation of the MTBE Testing and Remediation by Chevron; and WHEREAS, Consultant is qualified by virtue of experience, training, education and expertise to accomplish such services. NOW, THEREFORE, City and Consultant mutually agree as follows: Section 1. Scope of Work. The scope of work to be performed by Consultant shall consist of those tasks as set forth in Exhibit 'A," Described as PSOMAS's Proposal to Conduct of Oversight Review and Evaluation of the MTBE Testing and Remediation by Chevron, dated August 23, 2007, attached and incorporated herein by reference. Consultant warrants that all of its services shall be performed in a competent, professional and satisfactory manner and in accordance with the prevalent standards of its profession. Section 2. Term. This Agreement shall commence on the effective date of this Agreement and services required hereunder shall be completed by no later 365 days from the date of Notice to Proceed. Section 3. Compensation. 3.1 Amount. Total compensation for the scope of services for this Project shall not exceed Eighty Four Thousand Dollars ($84,000.00) as set forth in Exhibit "A." 3.2 Rate Schedule. 1 ATTACHMENT 2 0 • The services shall be billed to the City at the hourly rate set forth in Exhibit 'A" attached and incorporated herein by reference. Included within the compensation are all the Consultant's ordinary office and overhead expenses incurred by it, its agents and employees, including meetings with the City representatives and incidental costs to perform the stipulated services. Submittals shall be in accordance with Consultant's proposal. 3.3 Method of Payment. Consultant shall submit monthly invoices based on total services, which have been satisfactorily completed and specifying a percentage of projected completion for approval by the City. The City will pay monthly progress payments based on approved invoices in accordance with this Section. For extra work not part of this Agreement, a written authorization from City is required prior to Consultant undertaking any extra work. 3.4 Records of Expenses. Consultant shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement. These records will be made available at reasonable times to City. Section 4. Independent Contractor. It is agreed that Consultant shall act and be an independent contractor and not an agent or employee of City, and shall obtain no rights to any benefits which accrue to City's employees. Section 5. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Consultant shall not contract with any other entity to perform the services required without written approval of the City. This Agreement may not be assigned, voluntarily or by operation of law, without the prior written approval of the City. If Consultant is permitted to subcontract any part of this Agreement by City, Consultant shall be responsible to City for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationships between any subcontractor and City. All persons engaged in the work will be considered employees of Consultant. City will deal directly with and will make all payments to Consultant. 011 0 • Section 6. Changes to Scope of Work. In the event of a change in the Scope of Work provided for in the contract documents as requested by the City, the Parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new agreement, including but not limited to any additional Consultant's fees. Section 7. Familiarity with Work and Construction Site. By executing this Agreement, Consultant warrants that: (1) it has investigated the work to be performed; (2) it has investigated the proposed well sites, including the location of all observable utilities, and is aware of all observable conditions there; and (3) it understands the facilities, difficulties and restrictions of the work under this Agreement. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by City, it shall immediately inform City of this and shall not proceed with further work under this Agreement until written instructions are received from the City. Section 8. Time of Essence. Time is of the essence in the performance of this Agreement. Section 9. Compliance with Law. Consultant shall comply with all applicable laws, ordinances, codes and regulations of federal, state and local government. Section 10. Conflicts of Interest. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance of the services contemplated by this Agreement. No person having such interest shall be employed by or associated with Consultant. Section 11. Copies of Work Product. At the completion of the contract period, Consultant shall have delivered to City at least one (1) copy of any final reports and architectural drawings containing Consultant's findings, conclusions, and recommendations with any support documentation. All reports submitted to the City shall be in reproducible format. All services to be rendered hereunder shall be subject to the direction and approval of the City. 3 0 • Section 12. Ownership of Documents. All reports, information, data and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential to the extent permitted by law, and Consultant agrees that they shall not be made available to any individual or organization without prior written consent of the City. All such reports, information, data, and exhibits shall be the property of the City and shall be delivered to the City upon demand without additional costs or expense to the City. The City acknowledges such documents are instruments of Consultant's professional services. City's reuse of such materials on a project other than the Recycled Water Supply System shall be at the City's sole risk. Section 13. Indemnity. Consultant agrees to protect, defend and hold harmless City, its elected and appointed officials and employees from any and all claims, liabilities, expenses or damages of any nature, including attorneys' fees, for injury or death of any person or damage to property or interference with use of property to the extent resulting form the negligent or other wrongful acts, errors and omissions committed by Consultant arising out of or in connection with the work, operation or activities of Consultant, its agents, employees and subcontractors in carrying out its obligations under this Agreement. Consultants liability hereunder shall be limited to the greater of Consultant's fee or $50,000. Section 14. Insurance. Insurance required herein shall be valid for a minimum of one year, or term of contract, whichever is longer, and it shall be provided by Admitted Insurers in good standing with the State of California and having a minimum Best's Guide Rating of A - Class VII or better. 14.1 Comprehensive General Liability. Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive General Liability coverage in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period. If subject to a general aggregate, such aggregates shall be at least $1,000,000. 14.2 Comprehensive Automobile Liability. 4 0 • Throughout the term of this Agreement, Consultant shall maintain in full force and effect Comprehensive Automobile Liability coverage, including owned, hired and non - owned vehicles in the following minimum amounts: $500,000 property damage; $500,000 injury to one person/any one occurrence/not limited to contractual period; $1,000,000 injury to more than one person/any one occurrence/not limited to contractual period 14.3 Worker's Compensation. If Consultant intends to employ employees to perform services under this Agreement, Consultant shall obtain and maintain, during the term of this Agreement, Worker's Compensation Employer's Liability Insurance in the statutory amount as required by state law. 14.4 Proof of Insurance Requirements/Endorsement. Prior to beginning any work under this Agreement, Consultant shall submit the insurance certificates, including the deductible or self -retention amount, and an additional insured endorsement to the Consultant's general liability and umbrella liability policies to the City Clerk's office for certification that the insurance requirements of this Agreement have been satisfied. 14.5 Errors and Omissions Coverage Throughout the term of this Agreement, Consultant shall maintain Errors and Omissions Coverage (professional liability coverage) in an amount of not less than One Million Dollars ($1,000,000). Prior to beginning any work under this Agreement, Consultant shall submit an insurance certificate to the Clerk of the Board's office for certification that the insurance requirements of this Agreement have been satisfied. 14.6 Notice of Cancellation/Termination of Insurance. The above policy/policies shall not terminate, nor shall they be cancelled, nor the coverages reduced, until after thirty (30) days' written notice is given to City, except that ten (10) days' notice shall be given if there is a cancellation due to failure to pay a premium. 14.7 Terms of Compensation. 5 • C� Consultant shall not receive any compensation until all insurance provisions have been satisfied. 14.8 Notice to Proceed. Consultant shall not proceed with any work under this Agreement until the City has issued a written "Notice to Proceed" verifying that Consultant has complied with all insurance requirements of this Agreement. Section 15. Termination. City shall have the right to terminate this Agreement without cause by giving thirty (30) days' advance written notice of termination to Consultant. In addition, this Agreement may be terminated for cause by providing ten (10) days' notice to the other party of a material breach of contract. If the other party does not cure the breach of contract, then the agreement may be terminated subsequent to the ten (10) day cure period. Section 16. Notice. All notices shall be personally delivered or mailed to the below listed addresses, or to such other.addresses as may be designated by written notice. These addresses shall be used for delivery of service of process: To City: City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Public Works Director To Consultant: PSOMAS 3187 Red Hill Avenue, Suite 250 Costa Mesa, CA 92626 Attn: John R. Thornton, Vice President / Principal Section 17. Attorneys' Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. Section 18. Dispute Resolution. In the event of a dispute where the amount in controversy does not exceed the greater of the consultants fee or $50,000 arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by D 0 0 binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"). Section 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. ATTEST: Margaret R. Monahan, City Clerk APPROVED AS TO FORM: John R. Shaw, City Attorney 7 7 CITY OF SAN JUAN CAPISTRANO 0 Sam Allevato, MAYOR CONSULTANT M- John R. Thornton, Vice President / Principal Information endEnginwing Sdutims August 23, 2007 Mr. Eric Bauman City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Subject: Proposal to Monitor Chevron Investigation Activities related to Investigation of MTBE Contaminant Plumes Upgradient of Tirador and Dance Hall Production Wells for the City of San Juan Capistrano, California Dear Mr. Bauman: Psomas is pleased to submit this proposal to monitor site investigation activities currently being conducted by Chevron related to the investigation of the MTBE contaminant plumes upgradient of the City San Juan Capistrano (CSJC) production wells referred to as the Tirador well and Dance Hall well. This proposal is based on our meeting of August 3, 2007 and subsequent discussions with you and the County of Orange oversite personnel concerning the ongoing investigations at the two Chevron service stations located in the CSJC. BACKGROUND Chevron has indicated to the CSJC that two gasoline dispensing stations located at the corners of 1) Del Obispo and Camino Capistrano and 2) Del Obispo and Ortega Highway, respectively, have experienced a release of petroleum hydrocarbons including MTBE.. Site investigations conducted by Chevron with their environmental consultant (Conestoga Rovers) have indicated that MTBE has been detected above maximum contaminant levels (MCLs) in the groundwater and has migrated offsite from the suspected points of release and appear to be migrating in the direction of existing groundwater production wells Tirador and Dance Hall (these wells are currently supplying feedwater to the Phase I desalter unit near the Dance Hall well). The CSJC is concerned that MTBE as well as other contaminants may migrate to existing groundwater production wells Tirador and Dance Hall. If these wells become impacted with MTBE, they may require removal from the feedwater supply and the CSJC would be required to find alternative sources of water. 3187W Fill A. Me oro mamas ck m n47s1.rs73 n4eC8M reg EXHIBIT "A" , .Pmo = PSOMAS Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 2 of 6 August 23, 2007 APPROACH Based on preliminary information obtained from the County of Orange regarding ongoing investigations at the Chevron service stations and an understanding that Chevron desires to install wells at the leading edges on the plume, Psomas has developed a scope of work to monitor site investigation activities conducted by Chevron and to advise the CSJC of the progress and potential impact of the contaminant plumes on the existing production wells. The objectives of the program are to: • Review proposed workplan and comment on proposed scope of work • Monitor groundwater quality in the alluvial groundwater system; • Identify the lateral and vertical hydraulic gradient in the alluvial aquifer system; • Facilitate the acquisition of information that would assist in calculating the potential time frame between detection in the sentinel wells and impact to the production wells. The ultimate goal of the program is to provide an early warning system (for the presence of MTBE and others associated compounds) in order to give sufficient warning that the production wells may be impacted with MTBE such that actions (such as treatment equipment) can be designed and installed on the production wells to mitigate any potential impact these contaminants may have on the water supply system. The elements of the evaluation will include the following: • Provide Chevron and County of Orange with technical comments on suitability of proposed investigations; • Monitor site investigation activities; • Collect split groundwater samples to permit timely acquisition and interpretation of pertinent information; • Analyze and report collected data to CSJC in a timely manner; • Provide estimate of time frame in which production wells may be impacted from contaminant plumes; • Provide technical consultation to the CSJC regarding the potential impact of MTBE on the production wells and available alternatives. PSOMAS Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 3 of 6 August 23, 2007 SCOPE OF SERVICES Task 1—Meetings, Workplan Review and Negotiations Psomas will attend a CSJC water commission meeting to present the proposed plan and to answer questions. In addition, Psomas will review Chevron's proposed workplan and provide comments to County of Orange. In addition, Psomas will review the recently acquired site investigation activities including discussions with the County of Orange and CSJC. Task 2 — Monitoring of Site Investigation Activities Psomas proposes to monitor portions the site investigation activities undertaken by Chevron and its consultants including boring advancement (geology, lithology), well installation (suitability), and well development (representativeness). When possible, Psomas will record pertinent observations including geologic descriptions, depth to groundwater, well construction details. Note: At the present time, Psomas does not expect to maintain staff in the field on a full-time basis during well construction and development but will make strategic inspections to monitor progress and status of the proposed work. Task 3 — Groundwater Sampling Psomas will collect split samples from monitoring wells installed by Chevron and have an independent analytical laboratory analyze the samples for volatile organic compounds using EPA method 8260. The results of the analysis will be reported in a letter report to the CSJC. Task 4 — Data Analysis Following completion of well installation by Chevron and groundwater sampling, the data collected will be reduced and analyzed. Groundwater contour maps for each area will be developed and groundwater gradients will be calculated. In addition, estimates of groundwater movement will be developed along with estimated direction and rate of travel of MTBE in the alluvial groundwater system. Note: Estimated arrival times for MTBE to the sentinel wells (to be installed by Chevron) will be dependent on the availability of data from expanded groundwater investigations currently being conducted by Chevron along Camino Capistrano (Dance Hall Well) and future investigations planned along Del Obispo Street (Tirador Well). The estimated time of arrival of MTBE at the sentinel wells will assist in determining the revised monitoring frequency of the sentinel wells. If MTBE reaches the sentinel wells, sufficient data will have been accumulated to predict the travel time to the Dance Hall & Tirador wells. Task 5 —Report PSOMAS Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 4 of 6 August 23,.2007 Following completion and analysis of the sentinel monitoring wells and groundwater sampling, a report will be prepared that presents the methodologies employed and results of the installation and testing of the sentinel monitoring wells. The report will include boring logs (dependent on availability from Chevron), testing procedures and laboratory results. In addition, the report will include groundwater contour maps and spatial distribution of MTBE and other compounds that may be detected as part of the sentinel monitoring well program. Task 6 — General Consulting Services Psomas will maintain communication with the Orange County Health Care Agency, Local Oversight Program, Chevron, Chevron's consultant, and the CSJC. This effort will include meetings, phone conversations, e-mail/mail correspondence and other activities associated with maintaining communication and knowledge of proposed site investigation activities and results of investigations and to keep the, CSJC apprised of on-going activities at the two stations. SCHEDULE Following receipt of notice to proceed, the proposed scope of work is anticipated to be completed in approximately 6 months. Table 1 presents the anticipated time requirements for each of the proposed tasks. TABLE 1 TIME REQUIREMENTS BY TASK Sentinel Monitoring Wells for CSJC Item Time Requirements Task 1 — Meetings, Workplan Review and Negotiations 30 days Task 2 — Monitoring of Site Investigation Activities 16 days (estimate) Task 3 — Groundwater Sampling 2 days (every month Task 4 — Data Analysis 10 days Task 5 — Report 20 days Task 6 — General Consulting Services As needed Mobilization to the field will be dependent on Chevrons schedule and approval by the regulatory agencies. Delays in approval or changes to the anticipated scope of work may have an impact on the overall schedule. COST ESTIMATE P S O M A S Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 5 of 6 August 23, 2007 The proposed scope of work will be conducted on a time and materials basis with an estimated total cost of $84,000. A breakdown of the cost by individual task is included in Table 2. TABLE 2 SUMMARY OF COSTS BY TASK Well Installation and Monthly Monitoring TASK COST Task 1 — Meetings, Workplan Review and Negotiations $9,100 Task 2 — Monitoring of Site Investigation Activities $10,600 Task 3 — Groundwater Sampling $26,900 Task 4 — Data Analysis $12,000 Task 5 — Report $14,800 Task 6 — General Consulting Services $10,600 TOTAL $84,000 LIST OF ASSUMPTIONS The following assumptions were used in developing the schedule and associated cost estimate for this project. 1. Psomas will be given unencumbered access to the proposed monitoring well locations. 2. Onsite work activities are not delayed by CSJC or others. 3. The advancement and completion of the proposed monitoring wells takes no more than twelve days. 4. It is assumed that Chevron's consultant will be responsible for all drilling, well installation, groundwater sampling activities including waste disposal. Psomas will collect groundwater split samples with Chevron's consultant. 5. Chevron will share technical information in a timely manner prior to submission of any reports to the regulatory agencies. 6. A total of 14 water samples (12 from monitoring wells and 2 QA/QC samples) per month will be collected and analyzed for EPA Method 8260B. A total of 84 samples (14 samples for 6 monitoring periods) will be collected over the monitoring program. PSOMAS Proposal to Monitor Site Investigation Activities near Tirador and Dance Hall Wells Page 6 of 6 August 23, 2007 7. All field activities will occur during normal working hours (7:00 am -7:00 pm) Monday through Friday. 8. Final Report will include a discussion of the testing activities, site location map, and table of the laboratory analytical results. The report will also include a preliminary estimate of the travel time for contaminants that may be encountered. The report will also include as appendices: laboratory reporting forms and chain of custody forms. 9. One draft report will be submitted for one round of review by CSJC. Following CSJC review, the report will be finalized and five (5) copies of the final report will be submitted to CSJC. All work will be performed in accordance with the attached agreement which is included and made part of this proposal. We appreciate the opportunity to submit this proposal and look forward to working with you on this project. If you have any questions, please call Michael P. Donovan at (714) 481-7934. Very truly yours, PSOMAS � CCS) John R. Thornton, P.E. Principal and Vice President A1411alay� Michael P. Donovan, P.G., C.Hg. Senior Hydrogeologist 0 0 MtBE OVERVIEW CITY COUNCIL MEETING CITY OF SAN JUAN CAPISTRANO October 16, 2007 Prepared by Chevron October 8, 2007 The following provides a summary of the issues related to the two Chevron gasoline service stations in the City of San Juan Capistrano: (i) near the intersection of Camino Capistrano and Del Obispo Street and (ii) near the intersection of Ortega Highway and Del Obispo Street. The following information addresses the following points: • What Happened What the Issues Are • What Chevron is Doing Now How the City Can Help • What Chevron Is Doing Next WHAT HAPPENED In late 2003, the City installed six groundwater recovery wells in the San Juan Groundwater Basin as part of the City Groundwater Recovery Plant (GWRP). The part of the groundwater basin in which the City installed these wells had not previously been used for supplying drinking water, as the water in the aquifer is considered non -potable due to its naturally poor quality (e.g., high mineral and salt content). After constructing the GWRP, in early 2004, the City began pumping water from the wells and treating that water using reverse osmosis to make it suitable for potable and other uses. Two of the wells being used for this purpose are the Dance Hall and Tirador wells. Chevron was not aware of the planning of the GWRP and/or the construction of the Dance Hall and Tirador wells. Chevron has two gasoline service stations in the City of San Juan Capistrano (one near the intersection of Camino Capistrano and Del Obispo Street and one near the intersection of Ortega Highway and Del Obispo Street). These two stations had releases of gasoline which created localized groundwater plumes in the shallow aquifer under the stations. This aquifer has not been used for drinking water in the past. Under the A/72243339.1/2018782-2187820020 ATTACHMENT MTBE OVERVIEW (Continued) CITY COUNCIL MEETING direction of the Orange County Health Care Agency (OCHCA), Chevron completed several rounds of investigation on each site, upgraded its fueling and related equipment and operated a soil vapor extraction system to remediate the release at the Camino Capistrano site. After completing remediation, Chevron continued to conduct additional monitoring using commonly -accepted technical approaches for sites with underlying non -potable water. In late 2006, Chevron was in the process of closing the files on both sites with OCHCA when Chevron discovered that the City had installed recovery wells within approximately one-half mile of the stations. The Dance Hall and Tirador wells are potentially downgradient of the gasoline service stations. WHAT THE ISSUES ARE Water from the Dance Hall and Tirador wells was tested specifically for MtBE in July 2007. No MtBE was found in the samples collected from the wells. Nonetheless, Chevron is aggressively investigating the environmental conditions related to both service stations. Since the reported capacities of both the Dance Hall and Tirador wells are 800 gpm to 1,000 gpm each, there is a chance that the pumping of these two recovery wells has impacted or may impact the flow of groundwater in the basin. If the groundwater flow is sufficiently altered by the pumping of the recovery wells, then there is the potential for the residual plumes from the Chevron stations to be drawn toward the recovery wells. The principal chemical of concern in the residual plumes under the stations is MtBE. MtBE is an oxygenate that was added to gasoline to help reduce air emissions. MtBE is no longer added to gasoline in California. WHAT CHEVRON IS DOING NOW Chevron has taken a number of steps to expeditiously and cooperatively address the new situation, including: • Notifying the City of the existence of the two gasoline service stations potentially upgradient of the recovery wells. • Notifying and meeting with the OCHCA, the lead regulatory agency that directs and approves environmental investigations at local gasoline service stations. OCHCA A/72243339.1/2018782-2187820020 0 0 MTBE OVERVIEW (Continued) CITY COUNCIL MEETING has informed the City's Water Advisory Commission and the City Staff that further evaluation of the two Chevron residual plumes is a top priority for OCHCA. • Expanding its technical team to specifically address issues raised by the changing of the project from preparing for closure when the aquifer was considered non -potable to conducting an expedited investigation necessitated by the installation of the new recovery wells. The expanded team includes new technical experts from Geosyntec Consultants, additional resources and more field personnel to collect and analyze the data. • Submitting to OCHCA for approval additional technical work plans to further investigate the current state of and potential future mobility of the residual plumes. • Implementing a field program per the approved technical work plans that includes the installation of an additional 12 groundwater monitoring wells and additional soil and groundwater sampling and testing at more than 40 locations. • Meeting with the City staff to discuss the ongoing work and to exchange information (e.g., Chevron has requested that the City provide additional technical information regarding the recovery wells and aquifer characteristics). • Meeting with the City's Water Advisory Commission to provide a status brief. HOW THE CITY CAN HELP • The City staff has already started sending technical information and reports regarding the Dance Hall and Tirador wells. It would be beneficial to continue this transfer of technical information, which includes the aquifer studies commissioned as part of the GWRP project. • Chevron may, on a case-by-case basis, solicit the help of the City in obtaining, or facilitating, access to private property where Chevron desires to install groundwater monitoring wells or conduct additional soil or groundwater sampling, at the direction of OCHCA. WHAT CHEVRON IS DOING NEXT • Chevron intends to complete the field implementation of the OCHCA-approved technical work plans on an expedited basis, provided that access to the necessary private properties can be secured in a timely manner. A/72243339.1/2018782-2187820020 10 MTBE OVERVIEW (Continued) CITY COUNCIL MEETING • As the data are collected and after the field work is completed, Chevron's technical team will assess the potential for MtBE impacts to the aquifer. The technical information requested from the City will be an important component of the analyses. The data and conclusions will be provided to OCHCA for review and comment. • If needed, Chevron will use the appropriate scientific and engineering strategies to address the impacts under the oversight of OCHCA. Chevron will provide ongoing updates, as well as the results of the investigations, on a periodic basis to OCHCA, the City Staff, the City's Water Advisory Commission, and the City Council, as needed. A/72243339. 1/2018782-2187820020 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493.1053 FAX www sanl uancapistrano. org y/�'�' IA[RRtOAAiFO • esiRRusxm I 1961 1776 MEMBERS OF THE CITY COUNCIL NOTIFICATION OF MEETING OF POTENTIAL INTEREST OF THE SAN JUAN CAPISTRANO CITY COUNCIL SAM ALLEVATO THOMAS W. HRIBAR MARK NIELSEN JOE SOTO DR. LONDRES USO The City Council of San Juan Capistrano will meet at 7:00 p.m. on Tuesday, October 16, 2007 in the City Council Chamber in City Hall, to consider: "Consideration of Personal Services Agreement to Conduct an Oversight Review and Evaluation of MTBE Testing and Remediation by Chevron and Appropriations of Funds (PSOMAS)" — Item No. Gila. If you have specific thoughts or concerns regarding this item, you are encouraged to participate in this decision making process. You can communicate with the City Council through correspondence addressed to the Council and/or by attending the meeting and speaking to the Council during the public meeting. Correspondence related to this item must be received at the City Clerk's office by 5:00 p.m. on Monday, October 15, 2007 to allow time for the Council to consider its content. If you would like to speak at the meeting, please complete a yellow "Request to Speak" form found inside the entrance to the Council Chamber. This form is turned in at the staff table, just in front of the Council dais. You will be called to speak by the Mayor when the item is considered. You have received this notice at the request of the City staff member Eric Bauman, P.E., Water Engineering Manager. You may contact that staff member at (949) 487- 4312 with any questions. The agenda, including agenda reports, is available to you on our web site: www.sanivancaaistrano.oro. If you would like to subscribe to receive a notice when agendas are posted to the web site, please make that request by sending an e-mail to: citvclerk cDsanivancaaistrano.oro. Meg Monahan, MMC City Clerk cc: PSOMAS; Natasha Molla, Chevron; Cindy Russell, Interim Public Works Director; Eric Bauman, P.E., Water Engineering Manager Received staff report San Juan Capistrano: Preserving the Past to Enhance the Future 0 Printed on 100% recycled paper 32400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAX www saTuancap rstrano. org October 17, 2007 0 Jwaln � • FSIAItIf XF4 I9sl 1776 NOTIFICATION OF ACTION BY THE CITY COUNCIL OF SAN JUAN CAPISTRANO MEMBERS OF THE CITY COUNCIL SAM ALLEVATO THOMAS W. HRIBAR MARK NIELSEN JOE SOTO DR. LONDRES USO On October 16, 2007, the City Council of San Juan Capistrano met regarding: "Consideration of Personal Services Agreement to Conduct an Oversight Review and Evaluation of MTBE Testing and Remediation by Chevron and Appropriations of Funds (PSOMAS).AA Item No. Gla. The following action was taken at the meeting: Personal services agreement with PSOMAS for $84,000 to conduct an oversight review and evaluation of Methyl Tertiary -Butyl Ether (METE) testing and remediation by Chevron approved, including a provision that all work specified will be completed for $84,000; $90,000 appropriated from the water operations fund reserves for the cost of the services; and staff to pursue all avenues to seek reimbursement for oversight costs from Chevron. If you have any questions regarding this action, please contact Eric Bauman, P.E., Water Engineering Manager at (949) 487-4312 for more detailed information. Thank you, han, MMC Cc: PSOMAS; Natasha Molla, Chevron; Cindy Russell, Interim Public Works Director; Eric Bauman, P.E., Water Engineering Manager San Juan Capistrano: Preserving the Past to Enhance the Future 0* Printed on 100°o recycled paper