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Resolution No. 88201 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 8820 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND CH2MHILL FOR THE VERNON POWER PLANT PROJECT WHEREAS, the City of Vernon is in the process of developing a 800 MW Combined Cycle Power Plant officially named the Vernon Power Plant (the "Vernon Power Plant Project ") for the purpose of installing additional generating capacity that will yield an efficient, cost - effective, and reliable source of electric generation to the City of Vernon; and WHEREAS, on July 20, 2005, the City Council of the City of Vernon adopted Resolution No. 8812, authorizing the City Attorney to identify and negotiate contract service agreements with engineering consulting firms for the purpose of obtaining engineers for the Vernon Power Plant Project to assist the City with obtaining a license from the California Energy Commission, obtaining a permit to operate from the South Coast Air Quality Management District, creating a design and writing a feasibility study for the Vernon Power Plant Project; and WHEREAS, the City Attorney has determined that the engineering firm of CH2M Hill Inc. ( "CH2M ") possesses the technical knowledge and expertise to furnish the engineering services in support of the Application for Certification to the California Energy Commission for the Vernon Power Plant Project utilizing F -Class technology combustion turbines; and WHEREAS, on July 26, 2005, the Finance Committee recommended' that an agreement with CH2M be approved and executed; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into an agreement with CH2M. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Standard Agreement for Professional Services with CH2M, in substantially the same form as the copy which is attached hereto as Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes the Mayor to execute said Agreement for, and on behalf of, the City of Vernon and the City Clerk is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby directs the Acting City Clerk, or his designee, to send one fully executed Agreement to: CH2M Hill Inc. Attn. John L. Carrier, J.D., Program Manager 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 5: The Acting City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 3rd day of August, 2005. ATTEST: i ainL.41ARRA, Mayor Pro -Tem B' V. MALKENFIORST, JR. Acting City Clerk 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ss COUNTY OF LOS ANGELES I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 8820, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, August 3, 2005, and thereafter was duly signed by the Mayor Pro -Tem of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, J Acting City Clerk EXHIBIT A 07/27/2005 11:48 FAX 323 581 7924 CITY OF VERNON [002 STANDARD AGREEMENT FOR PROFESSIONAL SERVICES This AGREEMENT Is between CH2M HILL INC., ( "ENGINEER"), and City of Vemon (- OWNER, for a PROJECT generally described as: Engineering Services to Support the Application for Certification to the California Energy Commission for a 600 -800 MW combined cycle power plant utilizing F -Class technology combustion turbines. ARTICLE 1. SCOPE OF SERVICES ENGINEER will perform the Scope of Services set forth In Attachment A. ARTICLE 2. COMPENSATION OWNER will compensate ENGINEER as set forth in Attachment B. Work performed under this AGREEMENT may be performed using labor from affiliated companies of ENGINEER. Such labor will be billed to OWNER under the same billing terms applicable to ENGINEER% employees. ARTICLE 3. TERMS OF PAYMENT OWNER will pay ENGINEER as follows: 3,1 Invoices and Time of Payment ENGINEER will issue monthly invoices pursuant to Attachment B. Invoices are due and payable within 30 days of receipt. 3.2 Interest 32.1 OWNER will be charged interest at the rate of 1 -1/2% per month, or that permitted by law if lesser, on all past -due amounts starting 30 days after receipt of invoice. Payments will first be credited to interest and then to principal. 3.2.2 In the event of a disputed billing, only the disputed portion will be withheld from payment, and OWNER shall pay the undisputed portion. OWNER will exercise reasonableness In disputing any bill or portion thereof. No interest will accrue on any disputed potion of the billing until mutually resolved. 3.2.3 If OWNER fails to make payment In full within 30 days of the date due for any undisputed billing, ENGINEER may, after giving 7 days' written notice to OWNER, suspend services under this AGREEMENT until paid in full, Including interest. In the event of suspension of services, ENGINEER will have no liability to OWNER for delays or damages caused by OWNER because of such suspension. ARTICLE 4. OBLIGATIONS OF ENGINEER 4.1 Standard of Care The standard of care applicable to ENGINEER's Services will be the degree of skill and diligence normally employed by professional engineers or consultants performing the same or similar Services at the time said services are performed. ENGINEER will reperform any services not meeting this standard without additional compensation. FORM 398 REVISED 3 -2002 42 Subsurface Investigations In soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly between successive test points and sample intervals and at locations other than where observations, eq:ploration, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect total PROJECT cost land/or execution. These conditions and cost/execution effects are not the responsibility of ENGINEER. 4,3 ENGINEER's Personnel at Construction Site 4.3.1 The presence or duties of ENGINEER's personnel at a construction site, whether as onsite representatives or otherwise, do not make ENGINEER or ENGINEER's personnel in any way responsible for those duties that belong to OWNER and/or the construction contractors or other entitles, and do not relieve the construction contractors or any other entity of their obligations, duties, and responsibilities, including, but not limited to, all construction methods, means, techniques, sequences, and procedures necessary for coordinating and completing all portions of the construction work In accordance with the construction Contract Documents and any health or safety precautions required by such construction work. 4.32 ENGINEER and ENGINEER'S personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions and have no duty for inspecting, noting, observing, correcting, or reporting on health or safety deficiencies of the construction contractor(s) or other entity or any other persons at the site except ENGINEER's own personnel. 43.3 The presence of ENGINEER's personnel at a construction site is for the purpose of providing to OWNER a greater degree of confidence that the completed construction work will conform generally to the construction documents and that the integrity of the design conceptlas reflected in the construction documents hasIbeen implemented and preserved by the construction contractor(s). ENGINEER neither guarantees the 'performance of the construction contractor(s) nor assumes responsibility for construction contractor's failure to perform work in accordance with the construction documents. 1 07/27/2005 11:49 FAX 323 581 7924 CITY OF VERNON For this AGREEMENT only, construction sites include places of manufacture for materials incorporated into the construction work, and construction contractors include manufacturers of materials incorporated into the construction work_ 4.4 Opinions of Cost, Financial Considerations, and Schedules In providing opinions of cost, financial analyses, economic feasibility projections, and schedules for the PROJECT, ENGINEER has no control over cost or price of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bidding procedures and market conditions; time or quality of performance by operating personnel or third parties; and other economic and operational factors that may materially affect the ultimate PROJECT cost or schedule. Therefore, ENGINEER makes no warranty that OWNER's actual PROJECT costs, financial aspects, economic feasibility, or schedules will not vary from ENGINEER'S opinions, analyses, projections, or estimates. If OWNER wishes greater assurance as to any element of PROJECT cost, feasibility, or schedule, OWNER will employ an independent cost estimator, contractor, or other appropriate advisor. 4.5 Construction Progress Payments Recommendations by ENGINEER to OWNER for periodic construction progress payments to the construction contractor(s) will be based on ENGINEER'S knowledge, information, and belief from selective sampling that the work has progressed to the point indicated. Such recommendations do not represent that continuous or detailed examinations have been made by ENGINEER to ascertain that the construction contractor(s) have completed the work in exact accordance with the construction documents; that the . final work will be acceptable in all respects; that ENGINEER has made an examination to ascertain how or for what purpose the construction contractor(s) have used the moneys paid; that title to any of the work, materials, or equipment has passed to OWNER free and clear of liens, claims, security interests, or encumbrances; or that there are not other matters at issue between OWNER and the construction contractors that affect the amount that should be paid. 4.6 Record Drawings Record drawings, if required, will be prepared, in part. on the basis of information compiledand furnished by others, and may not always represent the exact location, type of various components, or exact manner in which the PROJECT was finally constructed. ENGINEER is not responsible for any errors or omissions in the information from others that is incorporated into the record drawings. 4.7 Access to ENGINEER'S Accounting Records ENGINEER will maintain accounting records, in accordance with generally accepted accounting principles. These records will be available to OWNER during ENGINEER'S normal business hours for a period of 1 year after ENGINEER'S final invoice for examination to the extent required to verify the direct costs (excluding established or standard allowances and rates) incurred hereunder. OWNER may only audit FORM 999 REVISED 9.2002 003 accounting records applicable to a cost- reimbursable type compensation. 4.8 ENGINEER'S Insurance ENGINEER will maintain throughout this AGREEMENT the following insurance: (a) Worker's compensation and employees liability insurance as required by the state where the work is performed. (b) Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to property of others arising from use of motor vehicles, including onsite and offsite operations, and owned, nonowned, or hired vehicles, with $1,000,000 combined single limits. (c) Commercial general liability insurance covering claims for injuries to members of the public or damage to property of others arising out of any covered negligent act or omission of ENGINEER or of any of Its employees, agents, or subcontractors, with $1,000,000 per occurrence and in the aggregate. (d) Professional liability insurance of $1,000,000 per occurrence and in the aggregate. (e) OWNER will be named as an additional insured with respect to ENGINEER'S liabilities hereunder in insurance coverages identified in Items (b) and (c) and ENGINEER waives subrogation against OWNER as to said policies. ARTICLE 5. OBLIGATIONS OF OWNER 5.1 OWNER - Famished Data OWNER will provide to ENGINEER all data in OWNER'S possession relating to ENGINEERS services on the PROJECT. ENGINEER will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by OWNER. 5.2 Access to Facilities and Property OWNER will make Its facilities accessible to ENGINEER as required for ENGINEERS performance of its services and will provide labor and safety equipment as required by ENGINEER for such access. OWNER will perform, at no cost to ENGINEER, such tests of equipment, machinery, pipelines, and other components of OWNER'S facilities as may be required in connection with ENGINEER'S services. 5.3 Advertisements, Permits, and Access Unless otherwise agreed to in the Scope of Services, OWNER will obtain, arrange, and pay for all advertisements for bids; permits and licenses required by local, state, or federal authorities; and land, easements. rights -of -way, and access necessary for ENGINEER'S services or PROJECT construction. 5.4 Timely Review OWNER will examine ENGINEER'S studies, reports, sketches, drawings, specifications. proposals, and other documents; obtain advice of an attomey, insurance counselor, accountant, auditor, bond and finandal advisors, and other consultants as OWNER deems appropriate; and render in writing decisions required by OWNER in a timely manner. 5.5 Prompt Notice OWNER will give prompt written notice to ENGINEER whenever OWNER observes or becomes aware of any 2 07/27/2005 11:49 FAX 323 581 7924 CITY OF VERNON development that affects the scope or timing of ENGINEER'S Services, or of any defect in the work of ENGINEER or construction contractors. 5.6 Asbestos or Hazardous Substances 5.6.1 If asbestos or hazardous substances in any form are encountered or suspected, ENGINEER will stop its own work in the affected portions of the PROJECT to permit testing and evaluation. 5.6.2 if asbestos Is suspected, ENGINEER will, If requested, manage the asbestos remedlatlon activities using a qualified subcontractor at an additional fee and contract terms to be negotiated. 5.6.3 if hazardous substances other than asbestos are suspected, ENGINEER will, if requested, conduct tests to determine the extent of the problem and will perform the necessary studies and recommend the necessary remedial measures at an additional fee and contract terms to be negotiated_ 5.6.4 Client recognizes that CH2M HILL assumes no risk and/or liability for a waste or hazardous waste site originated by other than CH2M HILL. 5.7 Contractor Indemnification and Claims 5.7.1 OWNER agrees to include in all construction contracts the provisions of Article 4.3. ENGINEER'S Personnel at Construction Site, and provisions providing contractor indemnification of OWNER and ENGINEER for contractors negligence. '5.7.2 OWNER shall require construction contractor(s) to name OWNER and ENGINEER as additional insureds on the contractor's general liability Insurance policy. 5.7.3 OWNER agrees to include the following clause in all contracts with construction contractors, and equipment or materials suppliers: "Contractors, subcontractors, and equipment and material suppliers on the PROJECT. or their sureties, shall maintain no direct action against ENGINEER, ENGINEER'S officers, employees, affiliated corporations, and subcontractors for any claim arising out of, in connection with, or resulting from the engineering services performed. OWNER will be the only beneficiary of any undertaking by ENGINEER." 5.B OWNER's Insurance 5.8.1 OWNER will maintain property insurance on all pre - existing physical facilities associated in any way with the PROJECT. 5.6.2 OWNER will provide for a waiver of subrogation as to all OWNER - carried property damage insurance, during construction and thereafter, in favor of ENGINEER, ENGINEER'S officers. employees. affiliates, and subcontractors. 5.5.3 OWNER will provide (or have the construction contractor(s) provide) a Builders Risk All Risk insurance policy for the full replacement value of all PROJECT work Including the value of all onsite OWNER- fumished equipment and /or materials associated with ENGINEER'S services_ Such policy will include coverage for loss due to defects in materials and workmanship and errors in design, and will provide a waiver of subrogation as to ENGINEER and the construction contractor(s) (or OWNER), and their respective officers, employees, agents, affiliates, and FORM 39B REVISED 3-2002 01004 subcontractors. OWNER will provide ENGINEER a copy of such policy. 5.9 Litigation Assistance The Scope of Services does not include costs of ENGINEER for required or requested assistance to support, prepare. document. bring, defend, or assist in litigation undertaken or defended by OWNER. All such Services required or requested of ENGINEER by OWNER, except for suits or claims between the parties to this AGREEMENT, will be reimbursed as mutually agreed. 5.10 Changes OWNER may make or approve changes within the general Scope of Services In this AGREEMENT. If such changes affect ENGINEER'S cost of or time required for performance of the services, an equitable adjustment will be made through an amendment to this AGREEMENT. ARTICLE 6. GENERAL LEGAL PROVISIONS 6.1 Authorization to Proceed Execution of this AGREEMENT by OWNER will be authorization for ENGINEER to proceed with the work, unless otherwise provided for in this AGREEMENT. 6.2 Reuse of PROJECT Documents All reports, drawings, specifications. documents, and other deliverables of ENGINEER, whether in hard copy or in electronic form, are instruments of service for this PROJECT, whether the PROJECT is completed or not. OWNER agrees to indemnify ENGINEER and ENGINEER's officers, employees, subcontractors, and affiliated corporations from all claims, damages, losses, and costs, Including, but not limited to, litigation expenses and attomey's fees arising out of or related to the unauthorized reuse, change or alteration of these PROJECT documents. 6.3 Force Majeure ENGINEER is not responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of ENGINEER. in any such event, ENGINEER'S contract price and schedule shall be equitably adjusted. 6.4 Limitation of Liability 6.4.1 CH2M HILL's liability for CLIENTS damages will, in the aggregate, not exceed the amount CH2M HiLL has been paid under this Agreement. 6.4.2 This article takes precedence over any conflicting article of this AGREEMENT or any document incorporated into It or referenced by It. 6.4.3 This limitation of liability will apply whether ENGINEER'S liability arises under breach of contract or warranty; tort; including negligence; strict liability; statutory liability; or any other cause of action, and shall include ENGINEER'S officers, affiliated corporations, employees, and subcontractors. 6.5 Termination 6.5.1 This AGREEMENT may be terminated for convenience on 30 days' written notice, or for cause if either party fails substantially to perform through no fault of the other and does not commence correction of such nonperformance within 5 days of written notice and diligently complete the correction thereafter. 07/27/2005 11:49 FAX 323 581 7924 CITY OF VERNON Q005 6.5.2 On termination, ENGINEER win be paid for all authorized services performed up to the termination date plus termination expenses, such as, but not limited to, reassignment of personnel, subcontract termination costs, and related closeout costs. 6.6 Suspension, Delay, or Interruption of Work OWNER may suspend, delay, or interrupt the Services of ENGINEER for the convenience of OWNER. in such event, ENGINEER's contract price and schedule shall be equitably adjusted. 6.7 No Third -Party Beneficiaries This AGREEMENT gives no rights or benefits to anyone other than OWNER and ENGINEER and has no third - party beneficiaries. 6.8 Indemnification 6.B.1 ENGINEER agrees to indemnify OWNER for any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage or bodily injury, including death, to the proportionate extent caused by the negligence or willful misconduct of ENGINEER, ENGINEER'S employees, affiliated corporations, and subcontractors in connection with the PROJECT. 6.8.2 OWNER agrees to Indemnify ENGINEER from any Claims, damages, losses, and costs, including, but not limited to, attomey's fees and litigation costs, arising out of claims by third parties for property damage or bodily injury, induding death, to the proportionate extent caused by the negligence or willful misconduct of OWNER, or its employees or contractors in connection with the PROJECT. 6.0 Assignment This is a bilateral personal Services AGREEMENT. Neither party shall have the power to or will assign any of the duties or rights or any claim arising out of or related to this AGREEMENT, whether arising in tort, contract or otherwise, without the written consent of the other party. Any unauthorized assignment is void and unenforceable. These conditions and the entire AGREEMENT are binding on the heirs, successors, and assigns of the parties hereto. 6.10 Consequential Damages To the maximum extent permitted by law, ENGINEER and ENGINEER's affiliated corporations, officers, employees, and subcontractors shall not be liable for OWNER's special, indirect, or consequential damages, whether such damages arise out of breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action. In order to protect ENGINEER against indirect liability or third -party proceedings, OWNER will indemnify ENGINEER for any such damages. 6.11 Waiver OWNER waives all claims against ENGINEER, including those for latent defects, that are not brought within 2 years of substantial completion of the facility FORM 390 REVISED 3-2002 designed or final payment to ENGINEER, whichever is earlier_ 6.12 Jurisdiction The substantive law of the state of the PROJECT site shall govern the validity of this AGREEMENT, its interpretation and performance, and any other claims related to it. 6.13 Saverability and Survival 6.13.1 If any of the Provisions contained in this AGREEMENT are held for any reason to be invalid, illegal, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. 6.13.2 Limitations of liability, indemnities, and other express representations shall survive termination of this AGREEMENT for any cause. 6.14 Materials and Samples Any items, substances, materials, or samples removed from the PROJECT site for testing, analysis. or other evaluation will be returned to the PROJECT site within 60 days of PROJECT close-out unless agreed to otherwise. OWNER recognizes and agrees that ENGINEER is acting as a bailee and at no time assumes title to said items, substances, materials, or samples. 6.15 Engineer's Deliverables Engineer's deliverables, including record drawings, are limited to the sealed and signed hard copies. Computer - generated drawing files furnished by ENGINEER are for OWNER or others' convenience. Any conclusions or information derived or obtained from these files will be at user's sole risk. 6.16 Dispute Resolution The parties will use their best efforts to resolve amicably any dispute, including use of alternative dispute resolution options. 8.17 Ownership of Work Product and Inventions All of the work product of the ENGINEER in executing this PROJECT shall remain the property of ENGINEER. OWNER shall receive a perpetual, royalty -free, non- transferable, non - exclusive license to use the deliverables for the purpose for which they were intended. Any inventions, patents, copyrights, computer software, or other intellectual property developed during the course of, or as a result of, the PROJECT shall remain the property of the ENGINEER. ARTICLE 7. ATTACHMENTS, SCHEDULES, AND SIGNATURES This AGREEMENT, including itschments and schedules, constitutes the entire AGREEMENT, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. The following attachments and schedules are hereby made a part of this AGREEMENT: Attachment A —Scope of Services Attachment 13-- Compensation 4 07/27/2005 11:49 FAX 323 581 7924 CITY OF VERNON IN WITNESS WHEREOF, the parties execute below: For OWNER, dated this day of Signature Signature Name (printed) Name (printed) Title Title For ENGINEER. CH2M HILL INC., dated this 26th day of J y 2005 11006 Signature Signature Name (printed) Lloyd " 'i • Johnson Name (printed) Title Vice President, Power TItse FORM am) REVISED 32002 5 SUPPORTING DOCUMENTS STANDARD AGREEMENT FOR PROFESSIONAL SERVICES This AGREEMENT is between CH2M HILL INC., ("ENGINEER "), and The City of Vernon ( "OWNER ") for a PROJECT generally described as: Prepare and file a 6-Month Application for Certification (AFC) and applicable Air Quality Permit Applications for a new 800 MW combined cycle power plant including engineering support and geotechnical investigation, in accordance with CH2M Hill AFC Preparation Proposal dated June 24, 2005 and supporting documentation, and CH2M Hill Engineering Support, Proposed Method to Accomplish Work and supporting documentation (Exhibit A). ARTICLE 1. SCOPE OF SERVICES ENGINEER will perform the Scope of Services set forth in Exhibit A. ARTICLE 2. COMPENSATION OWNER will compensate ENGINEER as set forth in Exhibit B. Work performed under this AGREEMENT may be performed using labor from affiliated companies of ENGINEER. Such labor will be billed to OWNER under the same billing tents applicable to ENGINEER's employees. ARTICLE 3. TERMS OF PAYMENT OWNER will pay ENGINEER as follows: 3.1 Invoices and Time of Payment ENGINEER will issue monthly invoices pursuant to Attachment B. Invoices are due and payable within 30 days of receipt of invoices in a format acceptable to owner. 3.2 Interest 3.2.1 OWNER will be charged interest at the rate of 1 -1 /2% per month, or that permitted by law if lesser, on all past -due amounts starting 30 days after receipt of invoice. Payments will first be credited to interest and then to principal. 3.2.2 In the event of a disputed billing, only the disputed portion will be withheld from payment, and OWNER shall pay the undisputed portion. OWNER will exercise reasonableness in disputing any bill or portion thereof. No interest will accrue on any disputed portion of the billing until mutually resolved. 3.2.3 If OWNER fails to make payment in full within 30 days of the date due for any undisputed billing, ENGINEER may, after giving 7 days' written notice to OWNER, suspend services under this AGREEMENT until paid in full, including interest. in the event of suspension of services, ENGINEER will have no liability to OWNER for delays or damages caused by OWNER because of such suspension. ARTICLE 4. OBLIGATIONS OF ENGINEER 4.1 Standard of Care The standard of care applicable to ENGINEER's Services will be the degree of skill and diligence normally employed by professional engineers or consultants performing the same or similar Services at the time said services are performed. Knowing that time is of the essence, ENGINEER will reperform any CITY OF VERNON - AFC PREPARATION, ENGIINEERING SUPPORT, AND GEOTECH STUDY FORM 398, TYPED 8/16/05 services not meeting this standard in an expedited manner, without additional compensation. 4.2 Subsurface Investigations In.soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly between successive test points and sample intervals and at locations other than where observations, exploration, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect total PROJECT cost and/or execution. These conditions and cost/execution effects are not the responsibility of ENGINEER. 4.3 ENGINEER's Personnel at Construction Site 4.3.1 The presence or duties of ENGINEER's personnel at a construction site, whether as onsite representatives or otherwise, do not make ENGINEER or ENGINEER's personnel in any way responsible for those duties that belong to OWNER and/or the construction contractors or other entities, and do not relieve the construction contractors or any other entity of their obligations, duties, and responsibilities, including, but not limited to, all construction methods, means, techniques, sequences, and procedures necessary for coordinating and completing all portions of the construction work in accordance with the construction Contract Documents and any health or safety precautions required by such construction work. 4.3.2 ENGINEER and ENGINEER's personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions and have no duty for inspecting, noting, observing, correcting, or reporting on health or safety deficiencies of the construction contractor(s) or other entity or any other persons at the site except ENGINEER's own personnel. 4.3.3 The presence of ENGINEER's personnel at a construction site is for the purpose of providing to OWNER a greater degree of confidence that the completed construction work will conform generally to the construction documents and that the integrity of the design concept as reflected in the construction documents has been implemented and preserved by the construction contractor(s). ENGINEER neither guarantees the performance of the construction contractor(s) nor assumes responsibility for construction PAGE 1 OF 5 contractor's failure to perform work in accordance with the construction documents. For this AGREEMENT only, construction sites include places of manufacture for materials incorporated into the construction work, and construction contractors include manufacturers of materials incorporated into the construction work. 4.4 Opinions of Cost, Financial Considerations, and Schedules In providing opinions of cost, financial analyses, economic feasibility projections, and schedules for the PROJECT, ENGINEER has no control over cost or price of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bidding procedures and market conditions; time or quality of performance by operating personnel or third parties; and other economic and operational factors that may materially affect the ultimate PROJECT cost or schedule. Therefore, ENGINEER makes no warranty that OWNER's actual PROJECT costs, financial aspects, economic feasibility, or schedules will not vary from ENGINEER'S opinions, analyses, projections, or estimates. If OWNER wishes greater assurance as to any element of PROJECT cost, feasibility, or schedule, OWNER will employ an independent cost estimator, contractor, or other appropriate advisor. 4.5 " Construction Progress Payments Recommendations by ENGINEER to OWNER for periodic construction progress payments to the construction contractor(s) will be based on ENGINEER'S knowledge, information, and belief from selective sampling that the work has progressed to the point indicated. Such recommendations do not represent that continuous or detailed examinations have been made by ENGINEER to ascertain that the construction contractor(s) have competed the work in exact accordance with the construction documents; that the final work will be acceptable in all respects; that ENGINEER has made an examination to ascertain how or for what purpose the construction contractor(s) have used the moneys paid; that title to any of the work, materials, or equipment has passed to OWNER free and clear of liens, claims, security interests, or encumbrances; or that there are not other matters at issue between OWNER and the construction contractors that affect the amount that should be paid. 4.6 Record Drawings Record drawings, if required, will be prepared, in part, on the basis of information compiled and furnished by others, and may not always represent the exact location, type of various components, or exact manner in which the PROJECT was finally constructed. ENGINEER is not responsible for any errors or omissions in the information from others that is incorporated into the record drawings. 4.7 Access to ENGINEER's Accounting Records In accordance with the applicable State of Califomia Code, ENGINEER will maintain accounting records, in accordance with generally accepted accounting principles. These records will be available to OWNER during ENGINEER's normal business hours for a period of 3 years after ENGINEER's final invoice for examination to the extent required to verify the direct CITY OF VERNON - AFC PREPARATION, ENGINEERING SUPPORT, AND GEOTECH STUDY FORM 398, TYPED 08/16/05 costs (excluding established or standard allowances and rates) incurred hereunder. OWNER may only audit accounting records applicable to a cost - reimbursable type compensation. 4.8 ENGINEER'S Insurance ENGINEER will maintain throughout this AGREEMENT the following insurance: (a) Worker's compensation and employer's liability insurance as required by the state where the work is performed. (b) Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to property of others arising from use of motor vehides, including offsite and offsite operations, and owned, nonowned, or hired vehicles, with $1,000,000 combined single limits. (c) Commercial general liability insurance covering claims for injuries to members of the public or damage to property of others arising out of any covered negligent act or omission of ENGINEER or of any of its employees, agents, or subcontractors, with $1,000,000 per occurrence and in the aggregate. (d) Professional liability insurance of $1,000,000 per occurrence and in the aggregate. (e) OWNER will be named as an additional insured with respect to ENGINEERS liabilities hereunder in insurance coverages identified in items (b) and (c) and ENGINEER waives subrogation against OWNER as to said policies. ARTICLE 5. OBLIGATIONS OF OWNER 5.1 OWNER - Furnished Data OWNER will provide to ENGINEER all data in OWNER's possession relating to ENGINEER's services on the PROJECT. ENGINEER will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by OWNER. 5.2 Access to Facilities and Property OWNER will make its facilities accessible to ENGINEER as required for ENGINEER'S performance of its services and will provide labor and safety equipment as required by ENGINEER for such access. OWNER will perform, at no cost to ENGINEER, such tests of equipment, machinery, pipelines, and other components of OWNER'S facilities as may be required in connection with ENGINEER'S services. 5.3 Advertisements, Permits, and Access Unless otherwise agreed to in the Scope of Services, OWNER will obtain, arrange, and pay for all advertisements for bids; permits and licenses required by local, state, or federal authorities; and land, easements, rights -of -way, and access necessary for ENGINEER'S services or PROJECT construction. 5.4 Timely Review OWNER will examine ENGINEER's studies, reports, sketches, drawings, specifications, proposals, and other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond and financial advisors, and other consultants as OWNER deems appropriate; and render in writing decisions required by OWNER in a timely manner. ENGINEER will provide PAGE 2 OF 5 OWNER written notice of any expedited review requirements. 5.5 Prompt Notice OWNER will give prompt written notice to ENGINEER whenever OWNER observes or becomes aware of any development that affects the scope or timing of ENGINEER's Services, or of any defect in the work of ENGINEER or construction contractors. 5.6 Asbestos or Hazardous Substances 5.6.1 If asbestos or hazardous substances in any form are encountered or suspected, ENGINEER will stop its own work in the affected portions of the • PROJECT to permit testing and evaluation. 5.6.2 If asbestos is suspected, ENGINEER will, if requested, manage the asbestos remediation activities using a qualified subcontractor at an additional fee and contract terms to be negotiated. 5.6.3 If hazardous substances other than asbestos are suspected, ENGINEER will, if requested, conduct tests to determine the extent of the problem and will perform the necessary studies and recommend the necessary remedial measures at an additional fee and contract terms to be negotiated. 5.6.4 Client recognizes that CH2M HILL assumes no risk and/or liability for a waste or hazardous waste site originated by other than CH2M HILL. 5.7 Contractor Indemnification and Claims 5.7.1 OWNER agrees to include in all construction contracts the provisions of Article 4.3, ENGINEER's Personnel at Construction Site, and provisions providing contractor indemnification of OWNER and ENGINEER for contractor's negligence. 5.7.2 OWNER shall require construction contractor(s) to name OWNER and ENGINEER as additional insureds on the contractor's general liability insurance policy. 5.7.3 OWNER agrees to include the following clause in all contracts with construction contractors, and equipment or materials suppliers: "Contractors, subcontractors, and equipment and material suppliers on the PROJECT, or their sureties, shall maintain no direct action against ENGINEER, ENGINEER's officers, employees, affiliated corporations, and subcontractors for any claim arising out of, in connection with, or resulting from the engineering services performed. OWNER will be the only beneficiary of any undertaking by ENGINEER." 5.8 OWNER's insurance 5.8.1 OWNER will maintain property insurance on all pre - existing physical facilities associated in any way with the PROJECT. 5.8.2 OWNER will provide for a waiver of subrogation as to all OWNER - carried property damage insurance, during construction and thereafter, in favor of ENGINEER, ENGINEER's officers, employees, affiliates, and subcontractors. 5.8.3 OWNER will provide (or have the construction contractor(s) provide) a Builders Risk All Risk insurance policy for the full replacement value of all PROJECT work including the value of all onsite OWNER- fumished equipment and /or materials associated with ENGINEER's services. Such policy will include CITY OF VERNON - AFC PREPARATION, ENGINEERING SUPPORT, AND GEOTECH STUDY FORM 398, TYPED 08/16/05 coverage for loss due to defects in materials and workmanship and errors in design, and will provide a waiver of subrogation as to ENGINEER and the construction contractor(s) (or OWNER), and their respective officers, employees, agents, affiliates, and subcontractors. OWNER will provide ENGINEER a copy of such policy. 5.9 Litigation Assistance The Scope of Services does not include costs of ENGINEER for required or requested assistance to support, prepare, document, bring, defend, or assist in litigation undertaken or defended by OWNER. All such Services required or requested of ENGINEER by OWNER, except for suits or claims between the parties to this AGREEMENT, will be reimbursed as mutually agreed. 5.10 Changes OWNER may make or approve changes within the general Scope of Services in this AGREEMENT. If such changes materially affect ENGINEER's cost of or time required for performance of the services, an equitable adjustment will be made through an amendment to this AGREEMENT. ARTICLE 6. GENERAL LEGAL PROVISIONS 6.1 Authorization to Proceed Execution of this AGREEMENT by OWNER will be authorization for ENGINEER to proceed with the work, unless otherwise provided for in this AGREEMENT. 6.2 Reuse of PROJECT Documents All reports, drawings, specifications, documents, and other deliverables of ENGINEER, whether in hard copy or in electronic form, are instruments of service for this PROJECT, whether the PROJECT is completed or not. OWNER agrees to indemnify ENGINEER and ENGINEER's officers, employees, subcontractors, and affiliated corporations from all daims, damages, losses, and costs, including, but not limited to, litigation expenses and attorney's fees arising out of or related to the unauthorized reuse, change or alteration of these PROJECT documents. 6.3 Force Majeure ENGINEER is not responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of ENGINEER. In any such event, ENGINEER'S contract price and schedule shall be equitably adjusted if ENGINEER is materially affected by such event. 6.4 Limitation of Liability 6.4.1 CH2M HILL's liability for CLIENTs damages will, in the aggregate, not exceed the amount of this AGREEMENT. 6.4.2 This article takes precedence over any conflicting article of this AGREEMENT or any document incorporated into it or referenced by it. 6.4.3 This limitation of liability will apply whether ENGINEER's liability arises under breach of contract or warranty; tort; including negligence; strict liability; statutory liability; or any other cause of action, and shall include ENGINEER's officers, affiliated corporations, employees, and subcontractors. PAGE 3 OF 5 6.5 Termination 6.5.1 This AGREEMENT may be terminated for convenience on 30 days' written notice, or for cause if either party fails substantially to perform through no fault of the other and does not commence correction of such nonperformance within 5 days of written notice and diligently complete the correction thereafter. 6.5.2 On termination by OWNER for convenience, ENGINEER will be paid for all authorized services performed up to the termination date plus termination expenses, such as, but not limited to, reassignment of personnel, subcontract termination costs, and related closeout costs. 6.6 Suspension, Delay, or Interruption of Work OWNER may suspend, delay, or interrupt the Services of ENGINEER for the convenience of OWNER. In such event, ENGINEER's contract price and schedule shall be equitably adjusted. 6.7 No Third -Party Beneficiaries This AGREEMENT gives no rights or benefits to anyone other than OWNER and ENGINEER and has no third - party beneficiaries. 6.8 Indemnification 6.8.1 ENGINEER agrees to indemnify OWNER for any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage or bodily injury, including death, to the proportionate extent caused by the negligence or willful misconduct of ENGINEER, ENGINEER's employees, affiliated corporations, and subcontractors in connection with the PROJECT. 6.8.2 OWNER agrees to indemnify ENGINEER from any claims, damages, losses, and costs, including, but not limited to, attorney's fees and litigation costs, arising out of claims by third parties for property damage or bodily injury, including death, to the proportionate extent caused by the negligence or willful misconduct of OWNER, or its employees or contractors in connection with the PROJECT 6.9 Assignment This is a bilateral Professional Services AGREEMENT. Neither party shall have the power to or will assign any of the duties or rights or any claim arising out of or related to this AGREEMENT, whether arising in tort, contract or otherwise, without the written consent of the other party. Any unauthorized assignment is void and unenforceable. These conditions and the entire AGREEMENT are binding on the heirs, successors, and assigns of the parties hereto. 6.10 Consequential Damages To the maximum extent permitted by law, ENGINEER and ENGINEER's affiliated corporations, officers, employees, and subcontractors shall not be liable for OWNER's special, indirect, or consequential damages, whether such damages arise out of breach of contract or warranty, tort including negligence, strict or statutory liability, or any other cause of action. In order to protect ENGINEER against indirect liability or third -party proceedings, OWNER will indemnify ENGINEER for any such damages. CITY OF VERNON - AFC PREPARATION, ENGINEERING SUPPORT, AND GEOTECH STUDY FORM 398, TYPED 08/16/05 6.11 Waiver OWNER waives all claims against ENGINEER, including those for latent defects, that are not brought within 3 years of substantial completion of the facility designed. 6.12 Jurisdiction The substantive law of the state of the PROJECT site shall govem the validity of this AGREEMENT, its interpretation and performance, and any other claims related to it. 6.13 Severability and Survival 6.13.1 If any of the Provisions contained in this AGREEMENT are held for any reason to be invalid, illegal, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. 6.13.2 Limitations of liability, indemnities, and other express representations shall survive termination of this AGREEMENT for any cause. 6.14 Materials and Samples Any items, substances, materials, or samples removed from the PROJECT site for testing, analysis, or other evaluation will be returned to the PROJECT site within 60 days of PROJECT close -out unless agreed to otherwise. OWNER recognizes and agrees that ENGINEER is acting as a bailee and at no time assumes title to said items, substances, materials, or samples. 6.15 Engineer's Deliverables Engineer's deliverables, including record drawings, are limited to the sealed and signed hard copies. Computer - generated drawing files fumished by ENGINEER are for OWNER or others' convenience. Any conclusions or information derived or obtained from these files will be at user's sole risk. 6.16 Dispute Resolution The parties will use their best efforts to resolve amicably any dispute, including use of alternative dispute resolution options. 6.17 Ownership of Work Product and Inventions All of the work product of the ENGINEER in executing this PROJECT shall remain the property of ENGINEER. OWNER shall receive a perpetual, royalty -free, non- transferable, non - exclusive license to use the deliverables for the purpose for which they were intended. Any inventions, patents, copyrights, computer software, or other intellectual property developed during the course of, or as a result of, the PROJECT shall remain the property of the ENGINEER. ARTICLE 7. ATTACHMENTS, SCHEDULES, AND SIGNATURES This AGREEMENT, including its attachments and schedules, constitutes the entire AGREEMENT, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. The following attachments and schedules are hereby made a part of this AGREEMENT: Exhibit A: AFC Preparation and Submittal, Engineering Support for AFC Preparation, and Geotechnical Study Exhibit B: Summary of Compensation PAGE 4 OF 5 The parties acknowledge and accept the terms and conditions of this AGREEMENT as evidenced by the following signatures of their duly and authorized representatives. It is the intent of the parties that this AGREEMENT shall become operative when executed. OWNER: City of Vernon • C. Malburg, Mayor APPROVED AS TO FORM: By: Eric Fresch, ity Attomey Date:August 25, 2005 ENGINEER, CH2M Hill: By: Date: August 23, 2005 GTY OF VERNON - AFC PREPARATION, ENGIINEERING SUPPORT, AND GEOTECH STUDY FORM 398, TYPED 8/16i05 Attest: ruce V. Malkenhorst, Jr., City Clerk (Ac t ing ) PAGE 5 OF 5 c _ /7 r RISK MANAGEMENT OFFICE INTER- DEPARTMENT MEMORANDUM DATE: January 24, 2006 TO: Nelly Giron Deputy City Clerk FROM: Willard G. Yamaguchi Chief Deputy City Attorney/Acting Risk Manage/WA/6 RE: CH2M Hill, Inc. Please be advised that the above referenced has provided acceptable insurance coverage. Attached for your retention are original insurance certificates and related policies, declarations and /or endorsements for the above- referenced insured that were issued by: • Zurich American Insurance Company (General Liability and Automobile Liability, and Professional Liability) • American Zurich Insurance Co (Workers' Compensation) This concerns Resolution No. 8820, Agreement File No. 05 -094. WY /kr MARSH CERTIFICATE PRODUCER MARSH USA, INC. 1225 17TH STREET, SUITE 2100 DENVER, CO 80202 -5534 15114 - 00124 -ALL- SAC OF INSURANCE CERTIFICATE NUMBER SEA- 000895102 -02 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE POLICY. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES DESCRIBED HEREIN. COMPANIES AFFORDING COVERAGE COMPANY A ZURICH AMERICAN INSURANCE COMPANY INSURED CH2M HILL, INC. 2485 NATOMAS PARK DRIVE SUITE 600 SACRAMENTO, CA 95833 COMPANY B AMERICAN ZURICH INSURANCE CO. COMPANY C COMPANY D COVERAGES This certificate supersedes and replaces any previously; issued certificate for the policy period noted below. THIS IS TO CERTFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITON OF ANY CONTRACT OR OTHER DOCUMENT WffH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICES DESCRIBED HEREIN S SUBJECT TO ALL THE TERMS, coNDRONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAMS. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MMIDD/YY) POLICY EXPIRATION DATE (MMIDDIYY) LIMITS A GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY 1 OCCUR PROT GL03784726-01 05/01/05 05/01/06 AGGREGATE $ 5,000,000 X PRODUCTS - COMP/OP AGG $ 5,000,000 CLAIMS MADE 1 X PERSONAL & ADV INJURY $ 1,500,000 OWNER'S & CONTRACTOR'S mow= SIR EACH OCCURRENCE $ 1,500,000 X FIRE DAMAGE Any one fire) $ 1,500,000 MED EXP (Any one person) $ A AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS BAP8378516 -10 (AOS) TAP8378560 -10 (TX) 05/01/05 05/01/05 05/01/06 05/01/06 COMBINED SINGLE LMIT $ 2,000,000 X BODLY INJURY (Per on) $ — BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ GARAGE LIABILITY ANY AUTO AUTO ONLY- EA ACCIDENT $ OTHER THAN AUTO ONLY: EACH ACCIDENT $ AGGREGATE $ EXCESS LIABILITY UMBRELLA FORM OTHER THAN UMBRELLA FORM EACH OCCURRENCE $ AGGREGATE $ $ B A A 'WORKERS COMPENSATION EMPLOYERS' LIABILITY THE PROPRIETOR/ /EXECuTNE PARTNERS/EXECUTIVE OFFICERS ARE: AND X INC_ EXCL WC8378566-11 (AOS) WC8378565 -10 (WI & MA) WC3784761 -00 (HI & ID) 05/01 05/01/05 05/01/05 05/'01/06 05/01/06 05/01/06 T X f TWORY TA W- OTH- ER EL EACH ACCIDENT $ 1,000,000 EL DISEASE - POLICY LMf $ 1,000,000 EL DISEASE -EACH EMPLOYEE $ 1,000,000 OTHER DESCRIPTION OF OPERATIONS /LOCATIONS/VEHICLES/SPECIAL ITEMS RE: PROJECT #333850 - VERNON POWER PLANT; PM JOHN CARRIER CERTFICATE HOLDER IS NAMED AS ADDITIONAL INSURED AS THEIR INTEREST MAY APPEAR TO THE AUTOMOBILE LIABILI1Y AND AS PER THE BLANKET ENDORSEMENT TO THE GENERAL LIABILITY POLICY. GENERAL LIABILITY, AUTO LIABLITY AND WORKERS' COMPENSATION POLICIES INCLUDE A WAIVER OF SUBROGATION. CERTIFICATE HOLDER CITY OF VERNON ATTN: WILLARD YAMAGUCHI 4305 SANTA FE AVENUE VERNON, CA 90058 CANCELLATION SHOULD ANY OF THE POLICIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAGE WILL ENDEAVOR TO MAIL VI DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN, BUT FAILURE 10 MM. SUCH NOTICE SHELL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KID UPON THE INSURER AFFORDING COVERAGE. ITS AGENTS OR REPRESENTATNES. OR THE ISSUER OF THIS CERTIFICATE. MARSH UsA INC. BY: Dorothy A. Stevens itlownsy a 44~ NM 'I(3/02) VALID AS OF: 11/11/05 PRODUCER MARSH USA, INC. 1225 17TH STREET, SUITE 2100 DENVER, CO 80202 -5534 15114- 00005 -ALL1 -2000 SAC CERTIFICATE NUMBER SEA - 000895104 -01 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER OTHER THAN THOSE PROVIDED IN THE POUCY. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POUCIES DESCRIBED HEREIN. COMPANIES AFFORDING COVERAGE COMPANY A ZURICH AMERICAN INSURANCE COMPANY INSURED CO LTR CH2M HILL, INC. 2485 NATOMAS PARK DRIVE SUITE 600 SACRAMENTO, CA 95833 COMPANY B COMPANY C COMPANY D THIS IS TO CERTIFY THAT POLICIES OF INSURANCE DESCRIBED HEREIN HAVE BEEN ISSUED TO THE INSURED NAMED HEREIN FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THE CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF INSURANCE POUCY NUMBER POLICY EFFECTIVE DATE (MM/DD/YY) POLICY EXPIRATION DATE (MM/DD/YY) UMITS GENERAL UABIUTY GENERAL AGGREGATE COMMERCIAL GENERAL LIABILITY CLAIMS MADE OCCUR PRODUCTS - COMP /OP AGG PERSONAL & ADV INJURY OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE FIRE DAMAGE (My one fire) MED EXP (Any one person) AUTOMOBILE UABIUTY COMBINED SINGLE LIMIT ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE GARAGE UABIUTY ANY AUTO AUTO ONLY - EA ACCIDENT OTHER THAN AUTO ONLY: EACH ACCIDENT AGGREGATE EXCESS LIABILITY EACH OCCURRENCE UMBRELLA FORM AGGREGATE OTHER THAN UMBRELLA FORM WORKERS COMPENSATION AND EMPLOYERS' UABIUTY THE PROPRIETOR/ PARTNERS/EXECUTIVE OFFICERS ARE: INCL EXCL WC STATU- 0 TORY LIMITS ER EL EACH ACCIDENT EL DISEASE- POLICY LIMIT EL DISEASE -EACH EMPLOYEE $ $ A OTHER PROFESSIONAL LIABILITY* E0C3829621 -03 05/01/05 05/01/06 $1,000,000 EACH CLAIM AND TOTAL FOR ALL CLAIMS DESCRIPTION OF OPERATIONS /LOCATIONSNEHICLES /SPECIAL ITEMS RE: PROJECT #333850 - VERNON POWER PLANT; PM JOHN CARRIER *FOR PROFESSIONAL LIABILITY COVERAGE, THE AGGREGATE LIMIT IS THE TOTAL INSURANCE AVAILABLE FOR CLAIMS PRESENTED WITHIN THE POLICY PERIOD FOR ALL OPERATIONS OF THE INSURED. THE LIMIT WILL BE REDUCED BY PAYMENTS OF INDEMNITY AND EXPENSE. CITY OF VERNON ATTN: WILLARD YAMAGUCHI 4305 SANTA FE AVENUE VERNON, CA 90058 SHOULD ANY OF THE POUCIES DESCRIBED HEREIN BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE INSURER AFFORDING COVERAGE HALL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED HEREIN, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBUGATION OR LIABILITY OF ANY KIND UPON THE INSURER AFFORDING COVERAGE, ITS AGENTS OR REPRESENTATIVES, OR THE ISSUER OF THIS CERTIFICATE. MARSH USA INC. 44.00.44. BY: Dorothy A. Stevens 110+44K y a VALID AS OF 08/17/05 COMMERCIAL INSURANCE COMMON POLICY DECLARATIONS Policy Number GLO 3784726-01 Named Insured and Mailing Address CH2M HILL COMPANIES, LTD. P.O. BOX 22508 DENVER CO 80222 Policy Period: Coverage begins 0 5- 01-0 5 The named insured is Li Individual Other. Renewal of Number GLO 3784726-00 Producer and Aiding Address MARSH USA, INC. 1225 17TH ST STE 2100 DENVER CO 802025521 Producer Code 2 92 5 3 -00 0 at 12:01 A.M.; Coverage ends 05-01-06 LJ Partnership 'Kt Corporation at 12:01 A.M. this insurance is provided by one or more ot the stock insurance companies which are members of the Zurich-Arnerican Insurance Group. The company that provides coverage is designated on each Coverage Part Common Declarations. The company or corniutnies providing eth insurance may be referred to in this policy as The Compame, we, us, or our. The address of the r.omparnes of lhe Zurich-Amitricen Irmirenne Group are provided on the next page. THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE(S): GENERAL LIABILITY COVERAGE PREMIUM $ issued by ZURICH AMERICAN INSURANCE COMPANY KY PUBLIC SERVICE SURCHARGE WEST VIRGINIA POLICY SURCHARGE NJ GUARANTY FUND SURCHARGE OR OREGON INSURANCE GUARANTY ASSOCIATION THIS PREMIUM MAY BE SUBJECT TO AUDIT. TOTAL This premium does not include Taxes and Surcharges. SEE INSTALLMENT SCHEDULE Taxes and Surcharges TOTAL SEE INSTALLMENT SCHEINILE The Form(s) and Endorsement(s) made a part of this policy at the time of issue are listed on the SCHEDULE of FORMS and ENDORSEMENTS. Countersignedthis'4ci,dayof--Cr\L ) ; THESE DECLARATIONS TOGETHER WITH THE COMMON POUCY CONDITIONS, FORM(S), FORMS AND ENDORSEMENTS, IF ANY, ISSUED TO FORM A PART TH FiTa:Der=, CoataaroVERAGE PART POUCY. U-GU-D-310-A (131/93) Pogo J of 1 Zit** kne icon l agao Co. ENDORSEMENT - P ZURICH Policy No. Eft Date of POI. Exp. Date of Pol. EIL Date of End. Producer Adds; Pram Return Prem. GL031811726 -01 511105 5/1106 511/05 29 -253-000 $ THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. The insured: CH2M Hi l Companies, Ltd. Mailing Address (including Zip Coded P.O. Box 22508 Denver, CO 802 • TM; endaeerne modifies provided by the roMeinw COMMERCIAL GEi`TERAL Iasi TY covia agFORM BROAD FORM ADDJ IONAt. INSURED ALL PERSONS, ORGANIZATIONS OR ENTITIES FOR WHOSE PROTECTION AND BENEFIT THE NAMED INSURED HAS AGREED TO NAME THEM AS AN ADDITIONAL INSURED BY CONTRACT DURING THE TERM OF THIS POLICY INDICATING SUCH COVERAGE. HOWEVER, INSURANCE WITH RESPECT TO EACH PERSON, ORGANIZATION OR EN'11TY SHALL NOT EXCEED SUCH COVERAGE AND/OR LIMITS OF LIABILITY OF THE NAMED INSURED. Al other *nps and oopditions ofthis poi/Cyrenaicunobangsd. 1)-GL-1114A GW (11V02) el aa Policy Number GLO 378472501 SCHEDULE OF FORMS AND ENDORSEMENTS ZURICH AMERICAN INSURANCE COMPANY Named Insilred CH2M HILL COMPANIES, LTD. Agent Name MARSH USA, INC. Effective Date: 0 5-01-05 12:01 A.M., Standard Time Agent Na. 29253 -000 CC2010 22 07 -04 ADDL INSD — KENNECOTT UTAH COPPER CORP CG2010 23 07 -04 ADDL INSD — UPRR, FOLDER 022765 -55 SACTO CG2010 3 07 -04 ADDL INSD — CITY OF FOLSOM CG2010 4 07 -04 ADDL INSD — GAINESVITJ.E REGIONAL UTILITY CG2010 5 07 -04 ADDL INSD — KING COUNTY WA DEPT OF DEV CG2010 6 07 -04 ADDL INSD — CITY OF MERCED CG2010 7 07 -04 ADDL INSD — NEVADA SPORTSERVICE INC. CG2010 8 07 -04 ADDL INSD — THE NEWHALL LAND AND FARMING CG2010 9 07 -04 ADDL INSD — PACIFIC GAS AND ELECTRIC CO UGL1114A 12 -02 LIMITED FUNGI OR BACTERIA COVERAGE UGL1114A --A 10 -02 SELF — INSURED RETENTION ENDORSEMENT UGL1114A —B 10 -02 BROAD FORM NAMED INSURED ENDT UGL1114A -C 10 -02 AUTOMATIC ADDITIONAL INSURED ENDT UGL1114A —D 10 -02 CONTRACTUAL LIABILITY EXCLUSION ENDT UGL1114A —E 10 -02 AMENDMENT OF OCCURRENCE DEFINITION UGL1114A —P 10 -02 CH2M HILL HANFORD GROUP, INC. EXCLUSION IJGL1114A -G 10 -02 KAISER —HILL CO. JOINT VENTURE EXCLUSION UGL1114A—H 10 -02 JOINT VENTURE ENDORSEMENT UGL1114A—I 10 -02 DEMIL INTERNATIONAL, INC. EXCLUSION UGL1114A —J 10-02 EXCESS INSURANCE- PROJECT SPECIFIC COV UGL1114A —K 10 -02 AMEND —POL AGG LIMIT OF INS -LOC /PRAT UGL1114A —L 10 -02 TWO OR MORE POLICIES ENDORSEMENT UGL1114A —M 10 -02 DIFFERENCE IN LIMITS AND CONDITIONS ENDT UGL1114A -N 10 -02 PREMIUM & REPORTS AGMT /COMPOSITE RATED UGL1114A -0 10 -02 ADDITIONAL INSURED— PRIMARY COVERAGE UGL1114A —P 10 -02 BROAD FORM ADDITIONAL INSURED UGL1114A -4 10 -02 AMENDMENT TO CG0001 UGL1114A —R 10 -02 FFMOW EMPLOYEE COVERAGE ENDT UGL1203ACW 04 -04 POLLUTION LIABILITY EXCLUSION DISCLOSURE U- GU -61v -A CW (10/02) 12/07/2005 15:13 FAX 323 826 1439 CITY COUNCii. LEONIS C MALBURG Mayor THOMAS A. YBARRA Mayor Pro -1em WM. "Mt' DAVIS man H. "LARRY" GONZALES Cotimeihnan W. MICHAEL McCORMICK Coundlulan LEGAL DEPT VERNON 4305 Santa Pe Avenue, Vernon, California 90058 telephone {$23) 583 -5811 TO AGENT: AGENCY: Mardi USA, Inc. FAX NO: 303-308-4948 TEL NO: PROM: ,I a. ggfnistrative Assistant Re1nsured:t 2M Blaine. Date: 13 07aa0S The City of Vernon requires east ia ee agents for all of its vendors provide a signed statement that the folkiwing polities are in force at this woe: X1002 SOL BEHUDIZ Police Chief MARK C. WHITWORTH Acting Nile Chief LBWS J POZZEBON Direct r of Iktvironaneatal Health S. KEVIN WIL$ON for of Core m nttyServices SHARON A Hof coverage Commercial General Vii' Business Auto Liability► Workers' Compensation Insurance Company ZURICH AMERICAN INSURANCE CO. Policy No. Bictive Date and Aggregate# Expiration Date Limits 0103754726.01 05101/05- 05/01106 5.000,000 General Agg. ZURICH AMERICAN NSURANCE CO. SAP8378516.10 05101/05 - X101106 2,000,000 CSL AMERICAN ZURICH INSURANCE CO. W08378566 -11 05101105 - 05,101/06 1,000.000 - STATUTORY Excess/Umbrella or Professional Liability ZURICH AMERICAN 04SURANCE CO. EOC3829621-03 05/01/05 - 05101/06 1,000,000 List any majors: DOROTHY A. STEVENS 01/29!06 Name (Please Prht) Date eras Signature MARSH USA INC. Acceptance of Fie Signatures. res. The parties agree that this Release will be considered signed when the signature ofa party is delivered by fbcsimele transmission. Such facsimile signature shall be treated in all respects as having the same ect as are original signature. Original documerts to follow. Et t h4 Sitbikattial Best's Rating Center Company Information for Zurich American Insurance Company Page 1 of 2 Search Beets Ratings IPress Releases I Related Prot is I Industry &R I Country Risk Understandinc} Best's Ratings View Ratings: Financial Strength Issuer Credit Securities Advanced Search Other Web Centel Zurich American Insurance Company (a member of Zurich Financial Services Group) A.M.Best #: 02563 NAIL #:16535 FEIN #: 354233459 Address: Zurich Towers, 1400 American Lane Schaumburg, IL 60196 -1056 Phone: 847- 605 -6000 Fax: 847 -605 -6011 Web: www.zurichna.com Best's Ratings Financial Strength Ratings view Definitions Rating: A (Excellent) Affiliation Code: g (Group) Financial Size Category: XV ($2 billion or more) Outlook: Stable Action: Affirmed -- Effective Date: September 14, 2004 * Denotes Under Review Best's Ratings Assigned to companies that have, in our opinion, an excellent ability to meet their ongoing obligations to policyholders. Reports and News Visit our NewsRoom for the latest news and press releases for this company and its A.M. Best Grouf Best's Company Report - includes Best's Financial Strength Rating and rationale along witl analytical commentary, detailed business overview and key financial data. r Report Revision Date: 07/22/2005 (represents the latest significant change). Historical Reports are available in Best's Company Report Archive. Best's Executive Summary Reports (Financial Overview) - available in three versions, th. 'i style reports feature balance sheet, income statement, key financial performance tests incluc liquidity and reserve analysis. Data Status: 2005 Best's Statement File - P/C, US. Contains data compiled as of 10/2/2005 Checked). • Single Company - five years of financial data specifically on this company. • Comparison - side -by -side financial analysis of this company with a peer group of up to companies you select. • Comps - evaluate this company's financials against a peer group composite. Report average and total composite of your selected peer group. Note: Adobe Reader is required to view the reports listed above. This software is available fi Systems Inc. An Excel export option is also available once the report has been opened usinc 01 Best's Key Rating Guide Presentation Report - includes Best's Financial Strength Rating „t as provided in Best s Key Rating Guide products. Data Status: 2003 Financial Data (Quality Cross Checked). Financial and Analytical Products Best's Property /Casualty Center - Premium Data & Reports Bests Key_ Rating Guide _P /C US & Canada Best's Statement File - P /C, US Best's Statement File - Global http: / /www3.ambest.com/ ratings /FullProfile.asp ?B1= 0 &AMBNurn= 2563 &A1tSrc =1 &Alt... 11/1/2005 CITY OF VERNON LIGHT & POWER DEPARTMENT CONTRACT CHANGE ORDER NO. 01 SUPPLEMENT NO. SHEET 1 OF 1 SHEETS PROJECT: Vernon Power Plant Project TO: CH2M Hill Inc. . 8/25/05 REQUESTED BY: City of Vernon Standard Agreement for Professional Services VENDOR You are hereby directed to make the herein described changes, or do the following described work not included in the A ADDITIONAL SCOPE OF WORK AND ADJUSTMENT IN COMPENSATION (IN ACCORDANCE WITH PROPOSAL DATED NOVEMBER 16, 2005 ATTACHED HERETO AND MADE A PART HEREOF) Generating Station currently installed and MGS. Said services are and systems following three phases: $ 12,600.00 $ 8,610.00 $ 11,210.00 Additional services to provide a Security Vulnerability Assessment for the Malburg (MGS) including, but not limited to, an evaluation of the physical security systems assessment of its effectiveness to deter acts of vandalism, theft and sabotage at the to also confirm the existence of, and critique the adequacy of, written security guidelines operating procedures issued to employees. Such services are to be performed in the Phase 1 Data Gathering Phase 2 Report Development Phase 3 Final Presentation Except as specifically modified herein, all terms and conditions of the Agreement are unmodified effect, and apply to the extended time of performance, the additional work and additional costs as were originally included in the Agreement. $ 32,420.00 and remain in full force and if those terms, services and costs Base Amount of Contract ... $ 896,290.00 Amount of this Change Order ... $ 32,420.00 Amount of Previous Change 00 Orders arid Amendments Modified Contract Amount (including this Change Order) $ 928,710.00 By reason of this order the time of. will be adjusted as follows: \‘completion , 2006 Approved: , ewi V- +C RZA. Date: January Director of Light & Power 2. ' e, r t We, the undersigned Vendor, have given careful consideration to the change propose. and hereby agree, if this proposal is approved that we will provide all equipment, furnish all materials, except as may otherwise be noted above, and perform all services necessary for the work above specified, and will accept as full payment therefor the prices shown above. Accepted: Date: Jo ary , 2006 Vendor: CH2M Hill Inc.. 1 By: , hilt; L' . / ' Ailil 1'.1 I' e. 1 C �� 5 e ' I i xc: t tnance CH2MHill No 1.doc INTEROFFICE MEMORANDUM Light & Power Department DATE: February 10, 2006 TO: Bruce V. Malkenhorst, Jr., Assistant City Attorney /Acting City Clerk FROM: Gloria J. Orosco, special Assistant to the City Administrator RE: CH2M Hill, Inc. - Change Order No. 1. Dear Mr. Malkenhorst: With regard to the above referenced contractor, the Finance Committee approved change order No. 1 in the amount of $32,420.00 on January 10, 2006 which was subsequently approved by the City Council. Attached hereto is a fully executed duplicate original for your records and I will be forwarding a duplicate original to CH2M Hill, Inc. If you should have any questions please feel free to contact me. /gjo c: A. Baldere (w /o attachment) L & P Contractor Files D. Jaunzemis, Purchasing Office INTEROFFICE MEMORANDUM Light & Power Department D E: December 29, 2005 TO: Bruce V. Malkenhorst, Jr., Assistant City Attorney /Acting City Clerk FROM: Donal O'Callaghan, Director of Light & Power it RE: Request for Change Order - CH2MHiII RECEIVED JAN 0 5 2006 CITY CLERK'S OFFICE Aprrov Cc- tit. One of the Conditions of Certification (COM -9) for the Malburg Generating Station is a "Construction and A (- Operations Security Plan" with the "Operations Security Plan" requiring a vulnerability assessment. Staff of the Light & Power Department has reviewed a proposal received from CH2MHill for a security vulnerability assessment. Their proposal provides a scope of services to include, in part, evaluation of the physical security systems currently installed and assessment of its effectiveness to deter acts of vandalism, theft, & sabotage at the MGS; and to confirm the existence of, and critique the adequacy of, written security guidelines and systems operating procedures issued to company employees. Based on CH2MHilI's overall experience and staffs opinion of the proposal I am requesting a change order in the amount of $32,420.00 to the present CH2MHill purchase order ( #12474). If approval is granted, this will raise the current CH2MHill contract amount/purchase order to $928,710.00. Please feel free to contact me if you would like to discuss this further or if you have any questions. Thank you. /gjo c: A. Baldere L & P Contract File CH2MHILL November 16, 2005 CH2M HILL 2485 Natomas Park Drive Suite 600 Sacramento, CA 95833 Tel 916.286.0224 Fax 916.614.3424 City of Vernon Malburg Generating Station Project Attention: Samuel Grossman 4305 Santa Fe Avenue Vernon, CA 90058 Subject: Proposal for Security Vulnerability Assessment – Malburg Generating Station Dear Mr. Grossman: CH2M HILL is pleased to submit this proposal for security vulnerability assessment services at the Malburg Generating Station (MGS), in response to discussions with John Carrier and Forrest Gist. Our qualifications include: • A high level of overall experience and understanding of electrical power systems. • Unmatched, in -depth security vulnerability assessment (VA) experience —CH2M HILL is a leader in security vulnerability assessments. We were selected as one of only a handful of companies, nationwide, to have staff receive Vulnerability Assessment Methodology "train the trainer" instruction at Sandia National Laboratories in May 2002. Since then, we have completed more than 100 vulnerability assessment projects for power, water, wastewater and other clients. Please feel free to contact Forrest Gist at (503) 224 -6040 or me at 916- 286 -0224 if you have questions or would like additional information. Sincerely, CH2M HILL citaiL>ra John L. Carrier, J.D. Program Manager W John Caldwell Vice President Proposal for Vulnerability Assessment November 16, 2005 Page 2 Company Overview CH2M HILL is a multidisciplinary consulting firm that provides engineering, planning, science, and economic consulting services. Our firm was founded in Corvallis, Oregon, in 1946, at which time we provided services primarily in the areas of water and wastewater engineering. Since that time, CH2M HILL has grown to include more than 15,000 employees serving clients from more than 165 locations on six continents. We now are a global project delivery company providing integrated services that address client needs for project engineering, development, and finance; program management; process engineering; design; construction management; and operations in the fields of power, water, environment, transportation, industrial facilities, and related infrastructure. Our employees offer expertise in more than 30 disciplines. Although CH2M HILL has the resources of an international corporation, we function primarily from local offices to provide personal contact between our project teams and clients. This way, experienced professionals are immediately available to assist our clients, and our staff is well versed in the local issues, regulations, and conditions pertinent to each project. We will perform your project from our Southern California, and Portland, Oregon offices. Expertise in Vulnerability Assessment As a large, global company, CH2M HILL is able to apply a broad base of vulnerability assessment (VA) experience to the issues facing the MGS. We have combined our premier electrical infrastructure engineering expertise with our in -house security, anti- terrorism, and infrastructure security expertise. With this confluence of knowledge, we assist clients in identifying potential vulnerabilities; assessing and prioritizing risks from insider attacks, vandalism, and workplace violence; recommending options for mitigating those risks; and designing an integrated solution for electrical power plant systems. Application of Proven Assessment Tools and Processes When assessing something as essential as the security of electrical power systems, it is critical that proven tools and processes be used to conduct the assessment. Our application of the Estimate for Adversary Sequence Interruption (EASI) and Systematic Analysis of Vulnerability to Intrusion (SAVI) computer models allows us to consider various security Vehicle enhancement options to determine the Door most effective and cost- efficient solution— before money is spent on hardware or installation. Analysis by SAVI Model is MT• Ruvuma [m.. Time IN I.*-d* 424 Pp.IM.mg$.nP..b.M4l. WINN PIN . UmhairMU Pr.Y.MV INISO MN • Swim Mt PION** WNW Omad.n r.l.ntl.l WINN a N TIO. TN.. Wm.IMno .M. bll..r mim M....d.1: M COP • CMl..l Damien P.Im.1OPa Louth. a (..1 l **Mg Yu imp., h... Pump N.... Proposal for Vulnerability Assessment November 16, 2005 Page 3 Integrated Full- Service Solutions CH2M HILL knows the infrastructure and operations of more critical facilities than any other engineering firm. We are entrusted to secure some of the world's most at -risk and highly visible locations, including electrical utility and power systems throughout the U.S., 50 U.S. Department of Defense facilities, three large U.S. Department of Energy facilities, IBM data centers worldwide, the Lincoln Memorial, the New York/New Jersey Port Authority, and many others. In addition to the experts the electrical power community knows and trusts, security experts, many with military or other relevant government experience, are available to meet our clients' specific needs. Some relevant areas of expertise specific for power utilities include: site security, vulnerability assessments, emergency response planning, security and emergency response training, reliability assessments, early warning monitoring systems, contingency planning, distribution monitoring and control, failure of infrastructure assets, computer networks, communications and protection systems, and business continuity and disaster recovery. The project team brings the following additional qualifications: • Comprehensive Security Systems. CH2M HILL offers comprehensive security system strategies, design, integration, and installation. Our detailed knowledge of code requirements and control systems enables us to develop cost-effective security systems that meet all operational demands. Our security system expertise includes: • Identification of codes and safety requirements • Equipment/systems engineering (design, procurement, vendor interface, and performance testing) • Intrusion detection systems • Closed - circuit TV surveillance • Secure access control, card reader badging, and occupant monitoring systems • System programming; startup coordination and assistance • Operations manuals and training • Asset protection and automated asset tracking • Security Management Services. Security management services include ongoing monitoring and surveillance of clients' networks for compromising activities as well as timely updates to clients' systems, firewalls and software as security patches are released from technology and software vendors. These services include remote scanning services, managed firewall services, managed intrusion protection services, and security intelligence alert services. Project Approach We propose to execute the design of this project from our Southern California and Portland, Oregon offices. Each team member has access to electronic mail and voice mail, increasing the efficiency of communication and information dissemination. We understand the confidential nature of security projects. For this reason, all project files will be maintained on a secured project drive, with access restricted. Only project team members will have access to the project files on the secured server drive. Firm employees not participating on the project Proposal for Vulnerability Assessment November 16, 2005 Page 4 will not have access to the project files, preserving confidentiality. Upon the conclusion of the project, all electronic files will be purged, and hardcopy files shredded or returned to the City of Vernon. Scope of Services CH2M HILL -IDC will provide the following services and deliverables for this project: • Evaluate the physical security systems installed and assess the effectiveness of the systems ability to deter acts of vandalism, theft, and sabotage at the MGS. • Confirm the existence of, and critique the adequacy of, written security guidelines and system operating procedures issued to company employees. Included Deliverables • Field notes from Site Visits. • Notes from MGS staff interviews, where applicable. • Identification and ranking of security vulnerabilities at the MGS. • Development of preliminary improvements, with rough magnitude costs and suggested phasing • Production of risk assessment report. Project Phasing We propose to structure the project in three phases. Each phase will be described below. • Phase 1 - Data Gathering and. Validation • Kickoff Meeting – at MGS • Validation of Project requirements and schedule • Field work and data gathering – includes (1) site visit of up to 8 -hours duration • Phase 2 – Report Development • Mid -point Review (60% review) – at MGS • Phase 3 – Final Presentation • Incorporation of Comments • Final Report Issued Phase 1 – Data Gathering and Validation Phase 1 will begin with a kickoff meeting, confirming the required scope, schedule, deliverables and key project requirements. During the meeting we will discuss concepts essential to the vulnerability assessment, including the Design Basis Threat, existing security system solutions, system response time, layered security requirements, previous criminal activity, etc. One site visit to the MGS facility will be conducted. During this visit, the physical security effectiveness will be evaluated based on its adherence to the Layered security systems approach —often referred to at the "Protection in Depth" principle. Protection in depth is the concept that an adversary must defeat several protective barriers or security layers to accomplish its goal. The site will be reviewed for the following items: 1. Size of power plant Proposal for Vulnerability Assessment November 16, 2005 Page 5 2. Criticality of plant 3. Population density within 1 mile 4. Presence of LPFs or H2 stored onsite 5. Physical state of hazardous materials 6. Presence of acutely hazardous materials 7. Volume of acutely hazardous materials 8. Hazmat delivery methodology 9. Fuel delivery methodology 10. Location of plant 11. Proximity to high - profile targets 12. Location of hazmat storage tanks 13. Toxicity 14. Chemical release consequences due to toxicity 15. Fire /Explosion consequences *** 16. Proximity to sensitive receptors 17. Hazmat response time (applies to AHMs and RQ of HMs) 18. EMS response time For example, an adversary might have to penetrate three separate barriers (such as an outer fence, building entry, and locked room) in order to gain entry to a critical asset at the MGS facility. Protection in depth allows the security system to be effective in the event of a failure or an adversary bypassing a layer of security. See Diagram 1, below. Additionally, it is important to provide "Balanced Protection," which is based on the concept that the weakest Zink in the security system will be the entry point for an adversary attack. It is important when evaluating and designing a physical protection system that the protection level is balanced, and not allow unprotected areas. For example, if all doors and windows are secured into a building, but a skylight or roof vent is not secured, then the system is not balanced. The final deliverable for Phase 1 will be site notes, documenting critical assets, site photos, existing security hardware, and current security policies and procedures. Proposal for Vulnerability Assessment November 16, 2005 Page 6 DIAGRAM 1 Security Diagram — Example Site Facility Guard House AC Card Rea er Gate O © 8-ft Perimeter Fence .• CCTV Motion-Alarm Door Fixed Camera Monitored by Security System Interior Motion Sensor Motion - Activated ® v Lighting Gate Lighting CCTV PantTilt Camera Vehicle Barriers Card Reader Entry CCTV Pan/Tilt Camera 6 Secured Visitor Walt Area Hardened Windows g - Padlock Entry — Card Reader DS —Door Alarm• El ccry 1 —CCTV Camera m — Signage • —(New) Fencing OWEN — Motion Lighting — Hardened Item 4. —Fence Detection Sensor — Bi- static Microwave Sensor — Outdoor Doppler Sensor — PIR Interior Sensor Low Density Shrubs TYPICAL PLAN VIEW No Trespassing 0 Signage Phase 2 — Report Development Based on the information assembled in the previous phase, report development phase will proceed. During this phase, we will evaluate the findings and conduct a risk analysis and develop prioritized planning for risk reduction. Risk Analysis and Prioritized Risk Reduction Planning The following risk equation provides a means for numerically integrating the results from the previous tasks of threat analysis, consequence determination, and evaluation of current protective systems: Risk = PA(1 -PE) *C Proposal for Vulnerability Assessment November 16, 2005 Page 7 Where: Risk = is the likelihood of an undesirable event (0 to 100 percent) PA = probability of attack. As discussed, this value is typically assumed to be 1.0 PE = probability of effectiveness of the protective system (0 to 1.0) C = consequences should an undesirable event occur (0 to 1.0) The risk equation provides a quantitative risk for the critical facilities and their critical assets that are evaluated. The risk value is not absolute. The equation identifies relative risks among the specific assets in the facilities. This allows MGS to focus in on the most important improvements for reducing risk. The results of the risk analysis will be presented in bar charts or similar formats to enable MGS staff to readily compare risks at each facility. These results will be presented and discussed within the report so that MGS staff can provide feedback and review comments on determination of the risks. The findings from the risk analysis will be used to develop a Security Enhancement Plan to be included in the final Report. Evaluate Upgrades to Existing Protection System. This task will be performed in an iterative fashion with the risk analysis. The risk analysis needs to be completed first. Then, based on whether the risk is at an acceptable level or not, decisions can be made about upgrades to the protection systems. Our team will provide recommendations for improvements to MGS. These recommendations 111 Glazed Doors will include both process , and policy ADA Door visibility recommendations and capital improvement Open I Status Switch recommendations. As upgrades are proposed, Intercom the level of risk is reevaluated and the process `;.� Presence continues. Camera 'Q , Detector Anti- Tailgate �� PA is the probability of attack. This is considered •• Doors The risk equation is provided above. The value Interlocked to equal a value of 1.0 unless local law enforcement has very specific' information to indicate that the system will not be targeted. The ' ^ only two areas that MGS can impact are the probability of effectiveness (PE) , and the consequences (C). To reduce risk, either PE must be increased or C must be reduced. Upgrades to the protection systems will increase PE. The team will investigate and evaluate methods to increase the detection, improve the delay and /or improve the response to an alarm. The following preliminary list of security system features will be discussed and prioritized with you, and then will be used to develop the recommended improvements and implementation plan: • Timely implementation • Reliance on proven, not experimental, technology • Extent of competition for supply and maintenance • Ease of maintenance • Reliable system without complicated features of limited value Inside Out Note: Numbers Represent Levels of Security © Being the Highest Biometrics Access Control Proposal for Vulnerability Assessment November 16, 2005 Page 8 • Viable system for all users • Easily integrated into existing policies and procedures • Financially sound investment • Clear definition of required training • Minimizes undue disruption of operating staff • Ability to monitor multiple sites simultaneously One of the most important features of security intrusion detection systems is 'to limit false positives (false alarms). DOE targets no more than one false positive detection per week per system for the security systems at our nation's nuclear power plants. They have found at frequencies higher than this rate, particularly when higher than once per day, false positives will cause the operators to ignore the alarms. A second key feature of security systems is to ensure that intrusion alarms are separated from operational control alarms. This provides both redundancy for the control system and . prevents a single individual from having the power to disable both types of alarms. The deliverable for this phase is a preliminary report. Phase 3 — Final Presentation The deliverable for this phase is a final report, with the following key elements: • Facility notes and site observations • Existing security systems in place • Existing policies and procedures relating to security • Identified risks and quantified risk levels • Potential security hardware, operational and policy improvements • Phasing plan with rough order magnitude costs for improving security Project Reviews We anticipate the project having a mid -point review and a final review: • Mid -point review — confirming overall system concepts and preliminary findings • Final review — final review, covering all report findings, observations, results and conclusions All review packages will undergo a complete quality control review within CH2M HILL -IDC prior to submittal to the City of Vernon. An estimated 2 weeks will be provided to MGS for comments on each package, and a subsequent face -to -face review meeting will be held at MGS facilities to go through the comments by the CH2M HILL -IDC project manager and key design staff. All comments will be documented and adjudicated by CH2M HILL -IDC on a project "Review Comments" form. Assumptions • MGS has existing CAD drawing files for the facilities included in the vulnerability assessment. Where backgrounds do not exist, we would work with MGS to develop a work - around solution. Proposal for Vulnerability Assessment November 16, 2005 Page 9 Project Team We have assembled a team comprising security and design professionals from the CH2M HILL family of companies, each of whom provides a specialized capability and relevant experience that corresponds to the specific requirements of this project. FIGURE 1 Project Team Organization Malburg Generating Station Samuel Grossman Project Manager John Carrier Senior Consultant Task Leads Don Martens Physical Security Kevin Shipp Data Surveys QA /QC Clark Goodlett Forrest Gist, PE will serve as Project Manager. Forrest will be responsible for the quality and completeness of the work described in this document. He has over 15 years experience with security design and security construction projects, is a member of the American Society of Industrial Security, and a registered electrical engineer. Don Martens, PE will serve as physical security lead. Don is a Certified Protection Professional (CPP) from the American Society of Industrial Security, and is a registered electrical engineer. Kevin Shipp will serve as our data collection and site survey lead. Kevin Shipp is an experienced field engineer resident in our Sacramento, California office. Clark Goodlett, PE will provide quality assurance review. Clark is an experienced security engineer, having over 15 years of experience. John Carrier will serve as the Senior Consultant for the project. Brief biographies of each team member are shown below. Proposal for Vulnerability Assessment November 16, 2005 Page 10 Team Member Highlights Forrest Gist: Project Manager B.S. Electrical Engineering (Oregon State University) Senior Consultant/Engineer and Project Manager Registered Engineer (Arizona, Colorado, New Mexico, Oregon) Over 75 security projects, which have included well over 2000 card reader installations and 3000 CCTV video surveillance design installations. The firm's (CH2M HILL) best technical expert on CCTV monitoring and recording systems. Last Five Security Projects and Roles: 1. Seattle City Light (Vulnerability Assessment and Study); Project Manager 2. State of Oregon — Dept. of Environmental Quality/Public Health (Design Project): Lead Sec. Eng. 3. Denver Metro Wastewater (Design Project): Lead Sec. Eng. 4, Glendale, Arizona (Master Plan): Senior Consultant 5. City of Hillsboro Water Department (Security Upgrade): Project Manager and Security Engineer. Clark Goodlett: Quality Assurance, Senior Consultant M.S. Economics (Auburn University), B.S. Electrical Engineering (U.S. Naval Academy) Retired Navy Commander (Submarine Warfare Officer) Senior Consultant/Engineer and Project Manager Registered Professional Engineer (California, Florida, Indiana, Ohio, Oregon, South Carolina, Virginia). Principal Technical Committee Member NFPA 730: Guide to Premises Security; NFPA 731: Standard for the Installation of Electronic Security Systems. Last Five Security Projects and Roles: 1. Minneapolis Wastewater Utility (Design Project); Design Manager 2. Cleveland Department of Public Utilities (Design /Build Project); Design Manager 3. National Science Foundation (Study); Project Manager 4. US Navy (Design Guide); Project Manager 5. New Jersey Water Supply Authority (Schematic Design); Design Manager Don Martens: Physical Security Lead M.S. Electrical Engineering (Oregon Graduate Institute of Science and Technology), B.S. Physics (University of Washington) Certified Protection Professional (CPP); American Society of Industrial Security (ASIS) Registered Professional Engineer (Arizona, California, Oregon and Washington) Served as Construction Manager for a multi - million dollar design -build project of low voltage electrical systems to include security systems in the Middle East. Last Five Security Projects and Roles: 1. CEA Technologies, Inc. (Study): Project Manager 2. Fort Worth Water Department (Design Project): Design Manager 3. Minneapolis Wastewater Utility (Design Project): Technical Support 4. Telecarrier Datacenter (Design Project): Technical Lead 5. Confidential Client (Design - Build): Construction Manager Proposal for Vulnerability Assessment November 16, 2005 Page 11 Project Schedule CH2M HILL -IDC stands ready to commence work immediately upon execution of a task agreement. We have found that, our fast - track approach enables us to mobilize quickly and execute projects in a smooth and rapid fashion. City participation will be needed as shown below: Task Item Participants Kickoff Meeting CH2M HILL, City Site Visits and Fieldwork CH2M HILL Mid -point Review CH2M HILL, City Report Drafting CH2M HILL Submission of Draft Report CH2M HILL, City Final Review Meeting CH2M HILL, City Issue of Final Report CH2M HILL, City Project Closeout — Return all Documents to MGS CH2M HILL Project Budget The following Table 1 identifies the estimated budget, by phase. It is important to point out that our project approach assumes that all data gathering and information assembling activities will take place in the earlier Phases 1 of the project, with Phases 2 and 3 dedicated to report development, editing and presentations. Phase `. Labor Hours Labor Cost Expenses. Travel Total Phase 1 — Data Gathering 76 $9,950 $150 $2,500 $12,600 Phase 2 — Report Development 58 $8,460 $150. $0 $8,610 Phase 3 — Final Presentation 78 $10,560 $150 $500 $11,210 Totals 212 $28,970 $450 $3,000 $32,420 CH2M HILL - IDC proposes to perform the services and to provide the deliverables described above for a fee of $32,420, including expenses. Upon your direction, we will proceed immediately with the work described in this proposal as additional services under our existing Agreement for Professional Services. Team Experience and References The CH2M HILL team proposed for the MGS project has completed dozens of security assessments and security upgrade projects for power and water utilities of all sizes. We have worked with a variety of municipalities across the United States, assisting them in their efforts to provide safe, secure, reliable public service. Proposal for Vulnerability Assessment November 16, 2005 Page 12 Following are contact references and brief descriptions of several relevant projects. FIGURE 2 Project Experience Relevant Malburg's Needs Seattle City Light • • City of Hillsboro Water Department • • Eugene Water and Electric Board • ■ Denver Metro Wastewater Reclamation ■ District, Colorado • ■ Fort Worth Water Department, Texas • • • Metropolitan Council of Environmental • Services, Minnesota • • • New Jersey Water Authority, New Jersey ■ • • IBM, Various Locations ■ • Seattle City Light, Seattle Washington Project: Vulnerability Assessment and Security System Analysis Project Requirements: This report represented the deliverable for Phase 3 of three phases of a Security Analysis performed by CH2M HILL for Seattle City Light (SCL) pursuant to a federal grant obtained for this purpose. The contract was signed on 28 February 2005 with the final completion date specified as 30 May 2005. The kickoff meeting was held on 04 March 2005. The CH2M HILL team completed site visits to most critical sites identified by SCL. Outstanding support provided by SCL personnel at each site allowed all locations to be visited in a necessarily short period of time, while still affording a comprehensive walkthrough appraisal of each site. Within the Security Analysis project, Phase 1 completed the information gathering phase. Phase 2 provided data analysis and formulated suggested improvements, and Phase 3 was the Final Report. Client Reference: Sue Mar Seattle City Light 700 - 5th Avenue Suite 3300 Seattle, WA 98124 -4023 sue. mar(o�seattle. aov 206 - 386 -4502 Project Value= Current Status System Components , tarts Participants Confidential, but Project substantially • Number of CCTV Cameras: • Forrest Gist over $200K completed • Over 20 Number of Digital Video • Clark Goodlett Recorders: 4 Proposal for Vulnerability Assessment November 16, 2005 Page 13 City of Hillsboro Water Department, Hillsboro, Oregon Project: Security Vulnerability Assessment and Security System Improvement Designs Project Requirements: This project began with a comprehensive vulnerability assessment, then proceeded with evaluating and implementing the security improvements identified within the vulnerability assessment. Incorporated improvements included system hardening of hatches and vents, adding perimeter intrusion detection and door status monitoring, adding CCTV video surveillance and incorporating point alarms into the SCADA s Client Reference: Mark Hamerl City of Hillsboro Water Department 145 SE Maple Street Hillsboro, OR 97123 Markha @ci.hillsboro.or.us 503 - 615 -6576 ystem. Special project needs included the requirement for long- distance (12 miles) images at a remote site, using solar - powered telemetry equipment. transmission of video Project Value Current Status; System Component: Team.Pa rticlpants Confidential, but over $200K Design completed, currently under construction • Number of CCTV Cameras: 8 • Number of Digital Video Recorders: 1 • Number of Card Readers: N/A • Forrest Gist • Don Martens Eugene Water and Electric Board (EWEB), Eugene, Oregon Project: Security Vulnerability Assessment and Security System Improvement Designs Project Requirements: Forrest Gist participated in the vulnerability assessment for this Oregon community water treatment and distribution system that serves more than 100,000 people. EWEB's facilities include river intake, filtration plant, wells, numerous reservoirs and pump stations, and large transmission lines. The analysis included controllers, SCADA, and telemetry. This project complied with EPA's grant requirements for large systems. The final report, completed in February 2003, described proposed improvements, including policies and procedures, near -term low -cost improvements, and long -term improvements. Client Reference: Mel Damewood EWEB Water Engineering Manager PO Box 10148 Eugene, OR 97440 Mel.Damewood @EWEB.Eugene.OR.US 541- 341 -1878 prioritized Project Value Current Status System Components Team. Participants Confidential, but each project over $50K VA completed, security improvement project installed and tested • Perimeter intrusion detection — fenceline mounted. • Forrest Gist Proposal for Vulnerability Assessment November 16, 2005 Page 14 Metro Wastewater Reclamation District, Denver, Colorado Project: Security and Safety Improvements study Project Requirements: This study presented a programmatic approach and basis of design for addressing several high -risk areas identified in a previous VA report. Recommendations for an integrated security program were developed to address specific areas of concern: • An expandable and reliable electronic access control system • Closed circuit television (CCTV) and intrusion detection at remote facilities • Hardening of specific critical assets, buildings and critical plant components The eventual design phase established an upgrade for the access control system reader system, encompassing the entire campus. Client Reference: Leonard R. Carson CPP Metro Wastewater Reclamation District 6450 York Street Denver, Colorado 80229 Icarson @mwrd.dst.co. us 303 - 286 -3311 to a new Lenel card Confidential, but over $200K Design completed, under construction Number of CCTV Cameras: TBD — CCTV design not completed Number of Digital Video Recorders: TBD — CCTV design not completed Number of Card Readers: over 25 Team Participants Forrest Gist Clark Goodlett Fort Worth Water Department, Texas Project: Water and Wastewater Security System Improvements Project Requirements: CH2M HILL is under contract to provide design services to implement high priority security improvements for the FWWD at mission critical and non- critical facilities. This project provides design and construction services to implement protection system improvements including: • Adding CCTV and card access control systems. Client Reference: Paul Bounds Fort Worth Water Department 1000 Throckmorton Street Ft. Worth, TX 76102 817- 392 -8567 • Adding and replacing fencing at critical areas such as power substations and chemical storage areas. • Adding additional site lighting for deterrence and cameras. • Providing a security command center to monitor and respond to security breaches. • Providing fence - mounted perimeter intrusion detection systems for critical assets such as power substations and outdoor chemical storage areas that are monitored through the SCADA system. • Adding barriers (bollards and concrete barricades) that prevent vehicles from unauthorized access at five plants. Proposal for Vulnerability Assessment November 16, 2005 Page 15 • Securing and hardening system components, such as critical valve vaults, clearwell vents and hatches. • Adding motion sensor /intrusion detection devices for critical buildings that are monitored at the security command center. • Providing a security command center to monitor and respond to security breaches Project Val Current Statu System Cornponen Team Participants. Confidential, but over $1M Design in progress • 9 remote sites • 4 water treatment plants • 30 card readers • 50 CCTV cameras • Intelligent video motion detection, security/access control, CCTV surveillance • Clark Goodlett • Don Martens • Forrest Gist • Steve Foster MCES Water District, Minneapolis, Minnesota Project: MCES Security Enhancements Project Project Requirements: This is a security upgrade project for a major wastewater utility. Assets to be protected include five treatment plants, a regional maintenance facility, and over 50 remote lift stations and ancillary facilities. The project includes physical protection upgrades in the following technical discipline areas: civil (fences, gates, and parking lot configurations), architectural (door and window hardening), electrical (lighting and power provision), and electronic security systems (card access, CCTV, intrusion detection). The latter systems communicate with a security communications system to a new security command Client Reference: Harold Voth Engineering Manager Metropolitan Council of Environmental Services, Metro Plant 2400 Childs Road, St. Paul, MN 55106 -1626 Harold.voth @metc.state.mn.us 651 - 602 -8728 center. Project Value Current Status System Components Team Participants N/A Design in progress • Number of CCTV Cameras: 106 • Clark Goodlett • Number of Digital Video Recorders: 10 • Forrest Gist • Number of Card Readers: 200 • Steve Foster Proposal for Vulnerability Assessment November 16, 2005 Page 16 New Jersey Water Authority, New Jersey Project: Schematic Design and Cost Estimate The project includes four water reservoirs, a water treatment plant, the central administration building, a regional maintenance facility and interconnecting canals and distribution systems. Civil and electronic security systems (card access, CCTV, and intrusion detection systems) communicate over a common communications system for reporting to a centralized monitoring station. Client Reference: Ed Buss Chief Engineer New Jersey Water Authority 1851 Highway 31 PO Box 5196 Clinton, NJ 08809 Ebuss a niwsa.orq 908 - 638 -6121 x261 Project Value; Current Status System Components ,Team Participan s N/A Design in progress • Number of CCTV Cameras: 90 • Clark Goodlett over $200K • Number of Digital Video Recorders: 9 • Forrest Gist • Number of Card Readers: 100 IBM, Various Locations Project: IBM Datacenter Security Upgrade Program Project Requirements: CH2M HILL -IDC was the designer of security upgrades, to eleven different IBM datacenter sites throughout the United States. The project involved security enhancements to existing and operating control command centers. Systems include: • GE Interlogix (Casi - Rusco) Access Control System • Bioscrypt Biometric (Fingerprint) Smart Card Readers • Pelco Cameras • LENEL Alarm System • Client Reference: Jim Ward IBM 6300 Diagonal Highway Mailstop 710, 001B Boulder, CO 86301 -9191 Jimward @ibm.usa.com 303- 927 - 7976 Kouba Infrared Door Control Systems for High Security Vestibules Project Value Current Status System Components Team Participants Confidential, but Design in progress • Number of CCTV Cameras: 297 • Clark Goodlett over $200K • Number of Digital Video Recorders: 24 • Forrest Gist • Number of Card Readers: 264 CITY OF VERNON Light & Power Department Contract Change Order No. 2 Supplement No. n/a Page 1 of PROJECT: Vernon Power Plant Project TO: CH2M Hill, Inc. (Consultant and /or Vendor) Agreement for Professional 3 Hutton Centre Drive, Suite 200, Services dated August 5, 2005 Santa Ana, CA 92707 (P.O. No. 12474) REQUESTED BY: City of Vernon You are hereby directed to make the herein described changes, or do the following described work not included in the original agreement. ADDITIONAL SCOPE OF WORK AND ADJUSTMENT IN COMPENSATION (IN ACCORDANCE WITH PROPOSAL DATED DECEMBER 30, 2005 ATTACHED HERETO AND MADE A PART HEREOF) 1) Revised proposal for 6 month application for certification of 610 MW power plant to be located at 50th and Soto Streets adjacent to the MGS facility and Air Quality Permit applications •Task 1 - Application for Certification to include revisions of the initial VPP AFC into the VPP AFC for submittal to the California Energy Commission; •Task 2 - Air Permit Application to include preparation of air quality permit applications for new equipment and assistance with defining the project in a manner that minimizes the need for cost emission offsets; • Task 3 - Geotechnical Report to include preparation of a site - specific geotechnical report and including a preliminary draft report as an appendix in the VPP AFC with the final report prepared for use in the foundation design Total Amount of this Change Order: $480,700.00 Except as specifically modified herein, all terms and conditions of the original Agreement are unmodified and remain in full force and effect, and apply to the extended time of performance, the additional work and additional costs as if those terms, services and costs were originally included in the Agreement Base Amount of Contract $896,290.00 Amount of Previous Change Order (CO No. 1 approved January 10, 2006) $ 32.420.00, Approved revised Contract Amount. $ 928,710.00 Modified contract, including this requested Change Order ( No. 2) .. $1,409,410.00 By reason of this order the time of completion will be adjusted as follows: Approv DONALD O'CALLAGHAN, Direct F fl gh : ower Date: 2%\t . 2006 We, the undersigned ConsultantNendor, have given careful consideration to the change proposed and hereby agree. If this proposal is approved we will provide all equipment, furnish all materials (except as may be noted otherwise), and perform all services necessary for the work specified above, and will accept as full payment therefore the prices shown bove. Ac - ted: CHM2 Inc. (C onsul tantNend r) Date: Q ?/ 2006 Title: cc: P asing INTEROFFICE MEMORANDUM Light & Power Department DATE: February 22, 2006 TO: Bruce V. Malkenhorst, Jr., Assistant City Attorney /Acting City Clerk FROM: Gloria J. Oros 'ecial Assistant to the City Administrator RE: CH2M Hill, Inc. - Change Order No, 2. Dear Mr. Malkenhorst: Change Order No. 2 to the above referenced contractor's original agreement was approved by the City Council on February 15, 2006. Attached hereto is a fully executed duplicate original for your records. I have forwarded a duplicate original to CH2M Hill, Inc. If you should have any questions please feel free to contact me. /gjo c: A. Baldere (w /o attachment) L & P VPP Contractor Files D. Jaunzemis, Purchasing Office INTEROFFICE cc 'd MEMORANDUM Light & Power Department DATE: February 1, 2006 : Bruce V. Malkenhorst, Jr., Assistant City Attorney /Acting City Clerk FROM: Donal O'Callaghan, Director of Light & Power RE: Request for Change Order (CO # 2) - CH2MHill A rR ' Ef cc 21 isi° On August 3, 2005, the City Council approved Resolution No. 8820, authorizing CH2MHiII to prepare and file a 6 month application for certificate for VPP. In December 2005 the City of Vernon relocated the intended VPP Project site and modified the proposed plant configuration from a 3x1, 900 mw to a 2x1, 610 mw plant. CH2MHill has submitted a revised 6 -month Application for Certification and Air Quality Permit Applications for the 610 MW power plant to be located at 50th and Soto Streets adjacent to the MGS facility. I request authorization for the city to approve the following Change Order based on CH2MHiII's proposal dated December 30, 2005 to include, but not be limited to, the below listed scope of services: 1. Task 1- Application for Certification to include revisions of the initial VPP AFC into the VPP AFC for submittal to the California Energy Commission; 2, Task 2 - Air Permit Application to include preparation of air quality permit applications for new equipment and assistance with defining the project in a manner that minimizes the need for cost emission offsets; 3. Task 3 - GeotechnioalReport to include preparation of a site- specific geotechnical report and including a preliminary draft report as an appendix in the VPP AFC with the final report prepared for use in the foundation design Based on CH2MHiII's initial work, the City's relocation of the facility and our need to revise the necessary scope of work I am requesting approval of change order No. 2 in an amount not to exceed $480,700. If approval is granted, this will indrease the current CH2MHill contract amount/purchase order ( #12474) to $1,409,410.00. Please feel free to contact me if you would like to discuss this further or if you have any questions. Thank you. /gjo c: A. Baldere L & P Contract File CITY OF VERNON Light & Power Department Contract Change Order No 2 Supplement No n/a Page �1 PROJECT: Vernon Power Plant Proiect TO CH2M Hill, Inc. (Consultant and /or Vendor) Agreement for Professional Services dated August 5, 2005 3 Hutton Centre Drive, Suite 200, Santa Ana, CA 92707 (P.O. No 12474) REQUESTED BY City of Vernon You are hereby directed to make the herein described changes, or do the following described work not included in the original agreement. ADDITIONAL SCOPE OF WORK AND ADJUSTMENT IN COMPENSATION (IN ACCORDANCE WITH PROPOSAL DATED DECEMBER 30, 2005 ATTACHED HERETO AND MADE A PART HEREOF) 1) Revised proposal for 6 month application for certification of 610 MW power plant to be located at 50th and Soto Streets adjacent to the MGS facility and Air Quality Permit applications •Task 1 - Application for Certification to include revisions of the initial VPP AFC into the VPP AFC for submittal to the California Energy Commission; • Task 2 - Air Permit Application to include preparation of air quality permit applications for new equipment and assistance with defining the project in a manner that minimizes the need for cost emission offsets; • Task 3 - Geotechnical Report to include preparation of a site- specific geotechnical report and including a preliminary draft report as an appendix in the VPP AFC with the final report prepared for use in the foundation design Total Amount of this Change Order $480,700.00 Except as specifically modified herein, all terms and conditions of the original Agreement are unmodified and remain in full force and effect, and apply to the extended time of performance, the additional work and additional costs as if those terms, services and costs were originally included in the Agreement Base Amount of Contract ...:.. .... .. . Amount of Previous Change Order (CO No 1 approved January 10, 2006) .$ 32.420.00 $ 928,710.00 Approved revised Contract Amount. . • • • • . • • • • ........ Modified contract, including this requested Change Order (No: 2) .......... ... . :. $1,409,410.00 By reason of this order the time of completion will be adjusted as follows: Approved: DONALD O'CALLAGHAN, Director of Light & Power We the undersigned Consultant/Vendor, have given careful consideration to the change proposed and hereby agree. If this proposal is approved we will provide all equipment, fumish all materials (except as may be noted otherwise), and perform all services necessary for the work specified above, and will accept as full payment therefore the prices shown above. Accepted: CHM2 Hill Inc. (ConsultantNendor) Dater By Title: 2006 cc: Purchasing CH2IVIHILL December 30, 2005 Mr. Donal O'Callaghan Director of Power and Light City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 By email CH2M HILL 3 Hutton Centre Drive Suite 200 Santa Ana, California 92707 Tel. 714.429.2000 Subject: Proposal for a 6 -Month Application for Certification and Air Quality Permit Applications for a Power Plant at 50th and Soto Streets Dear Mr. O'Callaghan: CH2M HILL is pleased to provide this proposal to revise the AFC prepared for the Vernon Power Plant (VPP) a 914 -MW power plant located at 3200 Fruitland Avenue, for a smaller 610 MW power plant (VPP2) to be located at East 50th and S. Soto streets. Similarly, . this scope also includes preparation of air permit applications. It is our understanding that the plant will also use recycled water, to be supplied by the Central Basin Municipal Water District from the same water supply line as the Malburg Generating Station (MGS), but at this time the linear corridors for water, electrical transmission lines and natural gas pipelines have yet to be determined. Therefore, CH2M HILL has prepared this scope and budget based on several assumptions pertaining to the corridors and lengths. This proposal provides our scope of work and proposed budget, and the assumptions we have used to arrive at our proposed budget (Appendix A). Work will be performed on a time and materials basis using the same contract terms and conditions as previously agreed to between the City of Vernon and CH2M HILL, dated August 25, 2005. Please call John Carrier at 916- 286 -0224 with any questions pertaining to this proposal, Sincerely, CH2M HILL Jason Wells Senior Contract Administrator • We have structured this Scope of Work into three tasks: Task 1 covering the AFC; Task 2 covering the air quality AFC section and permit applications; and Task 3 covering the site- specific geotechnical report. In this work effort, CH2M HILL will use the Vernon Power Plant (VPP) AFC prepared for the 914 -MW plant that was to be located at 3200 Fruitland Avenue as the basis of a new AFC, to be prepared for a 610 -MW plant to be located at E. 50th and S. Soto streets (VPP2). Task 1 Application for Certification - Task 1 covers revision of the VPP AFC into a new AFC (VPP2 AFC) for submission to the California Energy Commission` (CEC) under the 6- month CEC program. This task will incorporate the air quality analyses from Task 2 into the air quality section of the AFC. CH2M HILL will review the Malburg Generating Station (MGS) AFC (CEC Docket No. 01 AFC -25) and incorporate as much as possible of the MGS AFC into the VPP2 AFC. Since the location of the proposed VPP2 project site is across 50th Street from MGS, some of the MGS AFC analyses may be able to be re -used with only slight updating. Task 2 - Air Permit Application - Task 2 covers preparation of air quality permit applications for the new equipment (including separate applications, as required, for the new gas turbines, SCRs, oxidation catalysts, and GEMS equipment), including air dispersion modeling, BACT and air toxics analyses, and also includes assistance with defining the project in a manner that minimizes the need for costly emission offsets. The precise emission offset need will be identified as a part of this scope. Given that Dr. Krishna Nand of the City's staff has excellent SCAQMD working relationships and experience with permitting power generating facilities in the South Coast Basin, we plan to execute this task in close coordination with him. Task 3 Geotechnical Report - Task 3 covers preparation of a site- specific geotechnical report. A preliminary draft report will be prepared for inclusion as an appendix in the VPP2 AFC. The final report will be prepared for use in the foundation design. Task 1- Preparation of Application for Certification The steps to preparing a' "data adequate" 6 -Month AFC are as follows: Prepare a detailed project description including goals and alternatives Determine the limits of the affected study area Identify key permits and agreements needed (we would expect these to be very similar to the list of permits generated by Dr. Nand for the MGS) Prepare field studies to support the AFC (except where work done to support the MGS can be re -used) Prepare draft and final AFCs Submit the AFC CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. Respond to data adequacy comments This proposal covers all these steps. It is our understanding that the City wishes to defer scoping and pricing for subsequent steps, such as supplemental data adequacy filings and support during the analysis and hearing phases: Also, following certification by the CEC, there are generally several permits that must be acquired from local and federal agencies for operation, as well as plans and monitoring reports that must be submitted as conditions of certification to operate the facility. The needed services for these steps will depend on the outcome of the AFC process, and are not proposed at this time Task 1.1-6- Month AFC Project Management Mr. John Carrier of CH2M HILL will continue to provide hands -on project management. Often it is a challenge to both foresee potential obstacles and simply keep the "momentum" in the project. CH2M HILL suggests that having our project manager, Mr. Carrier, be closely involved in the project for the entire time frame of the AFC preparation through licensing is the best way to achieve success. To keep the City of Vernon informed and the team efforts coordinated and on schedule, Mr. Carrier will prepare detailed schedules and monthly progress reports. He will facilitate periodic progress meetings and weekly conference calls. He will prepare meeting minutes and lists of action items, so that critical issues are addressed and resolved in a timely manner, and project "momentum" is maintained. He will also serve as the single point of contact for CH2M HILL, coordinating efforts between our team of environmental specialists and the City. Based on our experience, the City will also be well served by close coordination by CH2M HILL with the engineering design team (Burns and Roe) in resolving problems and finding solutions to the myriad of issues that arise during the conceptual design process. This coordination is included in our budget. It is understood that CH2M HILL's engineering group will no longer be needed to support this effort: Task 1.2- Conduct Environmental Field Studies To prepare the corresponding AFC sections, some environmental disciplines may require new or modified field studies, while literature searches or study may be all that are required for other disciplines. In some cases, both may be required. We assume that the primary field studies required for this project will be for the new plant site, construction parking/ laydown area(s), and new linear corridors. Those areas requiring new field work include the cultural and biological resources sections, and perhaps noise section of the AFC. New ambient modeling may not be required if post- construction monitoring for MGS is available and acceptable to the CEC. This task also includes sufficient effort to incorporate into the AFC the results of a new geotechnical study to be provided by CH2M HILL for the site The budget for the geotechnical study is included as a separate task. Task 1.3- Prepare AFC Text This task covers collection of the data necessary to address the requirements of Appendix B of the Warren - Alquist Act, followed by preparation of the information required in the corresponding . section of the AFC. Generally, the scope for each discipline is to determine standards of significance, identify laws, ordinances and regulations (LORS) applicable to CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. each environmental area of the project (which should not change from the VPP AFC), review existing documents, interview knowledgeable persons, and perform field studies to identify the environmental setting, identify potential impacts that would result from the project and suggest mitigations that would avoid, minimize or compensate for the project's impacts. Key CH2M HILL staff in each discipline area understand previous CEC decisions and can identify issues and mitigations that are appropriate and effective. Initial work will include a detail review of the MGS documentation to determine the applicability of MGS and VPP data to the proposed project site. The same staff that worked on the VPP AFC will be assigned to work on the VPP2 AFC. The areas where minimal work is expected from CH2M HILL to convert the VPP AFC into the VPP2 AFC are: Section 3.0, Demand Conformance Section 4.0, Facility Closure Section 5.0, Transmission System Engineering (being done by Commonwealth Assoc. Section 8.2, Biological Resources Section 8.7, Worker Health & Safety Section 8.16, Paleontological Resources. The other discipline areas will require either a moderate amount of rework, or as in the case of air quality, public health and visual resources, a substantial amount of rework. Graphics for all sections will need to be re -done. The attached budget includes an estimate of total hours for each discipline and major areas of effort. Task 1.4 -Draft AFC (for City Review) As was done in preparing the VPP AFC, each CH2M HILL discipline lead will be responsible for the preparation of his or her individual AFC sections. Technical and support staff will serve under the direction of the discipline lead. As each section is prepared, the discipline lead will sign off on CH2M HILL's Quality Assurance /Quality Control (QA /QC) cover sheet and forward the section to the project manager. The project manager will be responsible for eliminating unnecessary jargon, simplifying the text where possible and ensuring that the section is understandable. The project manager will write bridging sections and determine that all issues have been addressed. Once the project manager has signed off on the QA /QC cover sheet, the section is returned to the discipline lead to ensure that technical soundness has been maintained during the editing process. The discipline lead will address any comments or issues identified by the project manager. After this final check, the section will be included in the administrative draft. To maintain consistency and clarity, the engineering sections of the AFC (to be provided by Burns and Roe, the City's engineering firm) will also be reviewed by the project manager. Electronic templates of those sections have already been sent to Burns and Roe. After completing these reviews, the environmental and engineering sections will be incorporated into a Draft AFC and forwarded to the City for its internal review. Depending on timing, the City's review of the Draft may be done either as a whole document or one section at a time (staggered so as to minimize the burden on Dr. Nand and City staff). We CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. • assume that the City will provide electronic review comments on each section of the Draft AFC, as was done for the VPP AFC. Task 1.5 -Final AFC (for Filing with CEC) CH2M HILL will address the management comments received on the Draft AFC and prepare a complete Draft Final AFC for final review by the Project Team. Final changes will be made to the document to ensure internal consistency and completeness. Prior to sending the camera -ready AFC to the printer, CH2M HILL will provide an opportunity for the City to perform a final page -turn review of the document. Once any final changes have been made, CH2M HILL will have one original Final AFC and 60 hard copies and 65 CDs of the Final AFC printed for filing with the CEC, plus additional copies for use by the discipline leads and the City, for a total of 90 hard copies and 65 CDs. Future Task - Supplemental Data Adequacy Filing Once the AFC is submitted to the CEC it will go through a "data adequacy" review. Because we will be applying for the 6 -Month AFC process, the CEC will review the AFC using both the 12 -month and 6 -month checklists. Under the conditions currently being experienced by the CEC, it is unlikely that an AFC will be accepted without having at least some revision. Based on the data adequacy review provided by CEC staff, CH2M HILL would work expeditiously to resolve any deficiencies in an effort to have the AFC found "data adequate" by the CEC's next business meeting following the finding of data inadequacy. We would prepare 100 hard copies of the supplemental data adequacy filing on behalf of the City. Future Task - Responding to CEC Data Requests Once the AFC is accepted as adequate by the CEC, the formal Discovery phase begins. Data requests are expected from the CEC staff and intervening parties. As the data requests are received, the CH2M HILL project manager would review them and distribute them to the appropriate discipline leads for action. CH2M HILL's project manager, Mr. Carrier, would provide the City with an analysis of the relevance and appropriateness of the data requests . and an estimate of the level of effort required as well as the time required for response. Mr. Carrier also will develop a database to track data requests made by the CEC and intervening parties and data responses provided by CH2M HILL. The estimated number of data requests from the CEC staff is up to 150, and from intervening parties, up to 50, if the project is not controversial Future Task — Assist the City in Representing the Project at a CEC Informational Meetings, Workshops, Prehearing Conferences, Hearings and Community Meetings The CH2M HILL project management team will provide additional support services to the City, as requested. It is anticipated that these services will include attendance at informational meetings, workshops, conferences, hearings and various types of community meetings. The project manager will meet with the City's team for pre- briefings prior to meetings and hearings. The project manager (with assistance from technical staff, as appropriate) also will provide technical counsel and assist the City in developing appropriate strategies to facilitate the licensing of the replacement project. The project CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE, OTHER THAN TO EVALUATE THIS PROPOSAL. manager will take meeting minutes at meetings attended and develop a list of action items requiring resolution. Task 2 Air Permit Applications Objectives Task 2 is intended to cover preparation of application(s) for permits -to- construct suitable for submission to the South Coast Air Quality Management District (SCAQMD) and the United States Environmental Protection Agency (USEPA) for the planned new equipment at the proposed facility. The plant is planned as a new 610 -MW power plant using Siemens Westinghouse turbines in combined -cycle mode. CH2M HILL assumes that the federal Prevention of Significant Deterioration (PSD) requirements and review will be applicable for this project. Therefore, a permit application to USEPA's Region IX offices in San Francisco will be necessary. Given that Dr. Krishna Nand of the City staff is well- versed with the applicable regulations and permitting process, we plan to coordinate this work closely with him using staff from our Santa Ana (Orange County) office. Mr. Jerry Salamy will lead the permitting effort. Mr. Dennison, as a former SCAQMD engineering manager who maintains excellent working relationships with SCAQMD staff (e.g., John Yee) and management, will handle local liaisons with SCAQMD. Detailed Scope of Services Task 2.1: Create Operating Profiled Create Emissions Profile We expect that the City will specify an operating profile (hours per day /week / year, number of starts and stops, commissioning period, load profile) for the proposed facility, which should be similar to the operating profile developed for VPP. Using that information along with unit-specific emissions information from equipment manufacturers developed for VPP, CH2M HILL will create a correspondent emissions profile (controlled) based on the agreed operations. CH2M HILL will provide this information to the City for concurrence. While estimating a larger number of starts and stops is conservative, it will create more air emissions (and potentially increase the requirement for emission offsets). CH2M HILL will work with the City to create an operating profile that meets its needs without unduly causing a need for additional costly emissions offsets. Task 2.2: SCAQMD and USEPA PSD BACT / LAER Analysis SCAQMD Regulation XIII and Rule 2005 (RECLAIM NSR) require BACT / LAER for all new sources of emissions that have the potential to emit more than one pound per day. CH2M HILL will provide an analysis suitable for submittal to the District in the permit application. Given that the project site is in an area that is classified as nonattainment for ozone, particulate matter (PMIO and PM25), and, for the near -term, carbon monoxide (CO), this analysis will not consist of a formal PSD -style "top- down" analysis, but rather, a demonstration that shows the intended control scheme (we assume SCR and an oxidation catalyst), meets the appropriate District definitions of BACT and LAER. Based on the recent BACT / LAER determination for the Inland Empire Energy Center project, CH2M HILL CI-12M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL - expects BACT /LAER levels to be 2 ppm NOx, 2 ppm reactive organic gases (ROG), 5 ppm for ammonia slip, and 3 ppm CO (all referred to @ 15% 02). It should be noted that on March 4, 2005 the SCAQMD Board approved to request that the USEPA redesignate the District as in attainment of the federal CO ambient air quality standards. We expect that USEPA action on this request may not occur until some time in 2007 but approval of the request may obviate the eventual need for CO offsets. For the USEPA PSD application, a full "Top Down" BACT analysis will be conducted for at NOx (initial estimates indicate NOx emissions will exceed the 100 ton per year levels) and possibly CO. This analysis will be consistent with the EPA's Draft PSD guideline document. Task 2.3: Ambient Air Quality Impact Analysis Demonstration SCAQMD Regulation XIII and Rule 2005 set forth pre- construction review requirements for new and modified facilities to ensure that the operation of such facilities does not interfere with current attainment or progress toward attainment of ambient air quality standards, and that future economic growth within the SCAQMD is not unnecessarily restricted. For nonattainment pollutants, Reg. XIII establishes maximum allowable changes in ambient concentrations attributed to a new or modified facility. For attainment pollutants, such as NOx, the modeling must demonstrate that an exceedance of the ambient air quality standards will not occur. The proposed facility must demonstrate conformance with these requirements to obtain a permit. To evaluate the potential for exceedances of the Regulation XIII thresholds, maximum potential emissions of NOx, CO, PMlo and PM25, and SO2 from the proposed facility will be modeled using EPA's ISCST3 dispersion model. The impact thresholds in Rule 1303, Table A -2 are unit specific values that can not be exceeded. Therefore, emissions from the turbines will be modeled under normal operating conditions, start up conditions and anticipated commissioning scenarios to show each unit's maximum impact levels. These maximum impact levels will be compared to the SCAQMD impact thresholds in Table A -2 for only non - attainment pollutants. Attainment pollutants will be compared to the state and federal ambient air quality standards with the addition of a representative background concentration. For the USEPA PSD permit application, the ambient air contributions for the cooling tower and emergency fire pump engine will be included in the modeling analysis. Meteorological data for a nearby monitoring station will be obtained from the SCAQMD. These data are preprocessed by the SCAQMD for use with ISCST3. Digital Elevation Map (DEM) files will be used to assign elevation heights to the receptors. A single fine receptor grid will be applied to demonstrate that the peak concentrations have indeed been identified. An important input to the modeling will be the identification and dimensions of nearby existing or anticipated structure, such as boilers, stacks or buildings can influence the dispersion characteristics of the proposed facility's exhaust stacks. Dispersion modeling will use these dimensions and distances from the stack release points to assess downwash influences. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. Task 2.4: SCAQMD Regulation 1401 Toxic New Source Review Screening South Coast AQMD administers its environmental justice program through the application of this rule. It requires quantification of emissions of listed "toxic air contaminants," and provides four separate tiers of analysis to determine whether the impact is acceptable. It is prudent to quickly determine whether the new major equipment (combustion turbines) will have an acceptable impact. Consistent with the SCAQMD's guidance, CH2M HILL will determine the risk levels using the HAPR modeling program. We assume this analysis will demonstrate an acceptable impact based on previous modeling. If this is not the case, the City will be so informed, and a more detailed analysis proposed. , Note that under its CEQA`requirements, the SCAQMD requires that applicants using either aqueous or anhydrous ammonia -based SCR systems perform ammonia spill and dispersion analyses to demonstrate that no adverse effects will occur within the areas bounded by the 75 ppmv isopleths used by the CEC as a de minimus level. This analysis will also be required for the Hazardous Materials section of the AFC and one analysis will be used to satisfy both requirements. Task 2.5: Visibility Impact Screening Analysis and PSD Analyses SCAQMD Regulation XIII, Rule 1303 requires a visibility impacts analysis for 6 Class I areas. The following table presents the Class I areas, the distance threshold beyond which an analysis is not required, and the distance to the nearest city limit. As shown in Table 1 below, the City limits are beyond the threshold distance requiring a visibility analysis for the Class I areas. However, the CEC has recommended that visibility analyses be run as a protection against comments during the public notice process. TABLE 1 Class I Areas, Threshold Distances, and Distance to Nearest Vernon City Limit Distance Threshold Kilometers Class I Area Agua Tibia. Wilderness Cucamonga Wilderness Joshua Tree National Monument San Gabriel Wilderness San Gorgonio Wilderness San Jacinto Wilderness 28 28 29 29 32 28 Distance to Nearest City Limit Kilometers Visibility is an air quality- related value (AQRV) identified in the Clean Air Act as a characteristic of areas protected by federal regulation to maintain their pristine qualities (Class I areas). An analysis of AQRV impacts at the nearest Class I area will be performed according to guidance provided in the Permit Application Guidance for New Air Pollution Sources, published by the National Park Service (March, 1993, NPS/ NRAQD/ NRR -93/ 09), in the EPA Guideline on Air Quality Modeling (40 CFR Part 51, Appendix W), and based on previous discussions with the federal land manager. Both recommend the use of the EPA VISCREEN CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. model and the Workbook for Plume Visibility Impact Screening and Analysis (EPA, 1992) to calculate the potential impact from source emissions on scenic vistas within a Class I area. Emissions of NOx and PM10 will be analyzed using the VISCREEN model to predict the degree of contrast that a visitor to the Class I area may observe. NOx and PM1D are combustion products with light scattering and absorption properties. Visibility analyses are carried out in three tiers, each tier being more complex and less conservative than the previous tier. Given the distance from the plant to the nearest Class I area, this is not expected to be a major issue. This task will also cover additional analyses that may be required to complete the required PSD application for submission to EPA Region IX. Task 2.6: Confirmation of Needed Emission Offsets Based on the emissions profile created earlier in this scope of work, and the control scheme proposed in the BACT /LAER analysis, CH2M HILL will refine the emission offset estimates for NOx, PM10, CO, ROG, and SO2 (as a precursor to PM10). We anticipate that there will be a cooling tower associated with CTGs to provide cooled process water. While the SCAQMD does not require permits for cooling towers or offsets for associated particulate emissions, the CEC includes these emissions in its analysis and requires that associated particulate emissions be offset as a mitigation measure. Acceptable sources of particulate matter credits are likely to be the most difficult to find. We will provide the estimates to the City, with the assumption that the City will then decide whether to arrange a purchase option with sellers. It is likely that no single seller possesses all the required emission offsets, and that multiple sellers must be identified. As noted above, the SCAQMD has requested that the air basin be redesignated from CO nonattainment to attainment, and expects the USEPA to issue the redesignation sometime in the next 18 months. This may eliminate the need to provide CO offsets during or at the end of the licensing process. As a proposed strategy, CH2M HILL would assist the City in negotiating permit conditions with the SCAQMD and the CEC that would push the requirement to provide CO offsets to prior to the first fire of the facility with the intent that the USEPA will have redesignated the area prior to first fire. Task 2.7: Prepare Draft and Final Permit Applications CH2M HILL will prepare a draft and final permit application package with application forms, attachments and necessary calculations. This includes the standard SCAQMD permit application forms and necessary Title V application forms. A permit application package, formatted for the purpose, will be forwarded to the USEPA Region IX offices for their review and issuance of a PSD permit. Task 2.8 - Coordination of Air Quality with Engineering and Other AFC Sections This task covers meetings, teleconferences, and other communication to fully coordinate preparation of the air quality AFC section and air quality permit applications with the rest of the AFC document, to ensure complete consistency. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSES OTHER THAN TO EVALUATE THIS PROPOSAL. Task 3: Geotechnical Scope This section presents CH2M HILL's scope of work to complete preliminary and final geotechnical explorations for the proposed 610 MW power plant located in the City of Vernon, California. Findings and recommendations of each exploration will be presented in a preliminary geotechnical report and final geotechnical design report (GDR), respectively. The purpose of the preliminary exploration and report is to provide a discussion of geologic and geotechnical issues including subsurface conditions encountered in the borings, seismicity, and liquefaction potential of the site The preliminary geotechnical report will be used to assist the City of Vernon in the licensing process for the facility (i.e., will be provided to the CEC as an appendix to the AFC). The final exploration and GDR will present detailed geotechnical design conclusions and recommendations for the final design and construction of the proposed facilities. Schematic details of the proposed energy facility are not available at this time CH2M HILL has, therefore, made basis of design (BOD) assumptions to prepare this scope of work. These include the following: The power block area will consist of 2 combustion turbines and 1 steam turbine • A cooling water pond is not part of the BOD • Other facilities assumed in the BOD include a switchyard, cooling towers, service water tanks, and fire protection systems One administration building with parking has been assumed • One access road has been assumed The following describes the scope of work, deliverable, estimated fee, and schedule for each exploration: • Task 3.1 Preliminary Geotechnical Exploration — CH2M HILL will review the existing geotechnical information near the area of the proposed facilities (e.g., Malburg plant's geotechnical report). Relevant information will be summarized in the preliminary report. — CH2M HILL will summarize the geology of the proposed facility area based on review of published geologic maps and reports. CH2M HILL will verify whether the proposed site lies within a jurisdictional Seismic Hazard Zone and Alquist- Priolo Special Study Area Seismic conditions of the site will be summarized based on published data A site - specific seismic response analysis is not assumed as part of this scope of work. - CH2M HILL will complete approximately 160 - lineal feet of drilling at 2 locations at the proposed facility site If known during this .preliminary phase, the borings will be conducted within or near the proposed power block area the plant. Borehole depths will be advanced to at least 50 feet below ground surface (bgs). All boreholes will be backfilled with a cement - bentonite slurry mixture. Soil boring cuttings will either be contained in drums and removed from the site, or spread onsite. Limited laboratory testing will be conducted to determine classification and insitu moisture and density. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. Deliverable CH2M HILL will prepare a preliminary geotechnical report providing a discussion of the geotechnical issues as summarized above for use as an appendix in licensing the power plant. Task 3.2 Final Geotechnical Exploration — CH2M HILL will complete up to 800 - lineal feet of drilling at no more than 18 locations at the proposed facility. At least 6 borings will be conducted at the proposed power block area of the facility. Borehole depths will be advanced to at least 50 feet bgs at 10 locations. All boreholes will be backfilled with a cement - bentonite slurry mixture. Soil cuttings will either be contained in drums and removed from the site, or spread onsite. Detailed laboratory testing will be conducted to determine classification, insitu moisture and density, strength, compressibility, corrosivity, and expansiveness. CH2M HILL will complete engineering calculations related to liquefaction potential, settlement, differential settlement, bearing capacity, and pavement design for the proposed structures and facility. Foundation design analyses will evaluate shallow and, if required, deep foundations. A site - specific seismic response analysis is not assumed as part of this scope of work. Deliverable CH2M HILL will prepare a final geotechnical design report providing a discussion of the geotechnical issues as summarized above and final design parameters including foundation and construction recommendations. Schedule The proposed schedule for completion is presented in Table 2. TABLE 2 Proposed Schedule for Preparation of the Geotechnical Report Task Schedule (weeks) Preliminary Geotechnical Design Report Project Background, Subcontracts, H &SP, Site Visit, Locate Borings, Coordinate with USA Field Investigation Laboratory Testing Analyses Draft Preliminary Geotechnical Report Final Preliminary Geotechnical Report 3 weeks from receipt of Notice to Proceed (NTP) -.- during acquisition of permits by the City of Vernon Within 2 weeks from receipt of permits by the City of Vernon 2 weeks from receipt of samples 2 weeks from receipt of laboratory report 2 weeks from receipt of laboratory report 2 weeks from receipt of comments on the draft report Final Geotechnical Design Report Subcontracts, Update H &SP, Locate Borings, Coordinate with USA Field Investigation 3 weeks from receipt of Notice to Proceed (NTP) - during acquisition of permits by the City of Vernon, Within 2 weeks from receipt of permits by the City of CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. Laboratory Testing Analyses Draft Final Geotechnical Report Final Geotechnical Report Vernon 2 weeks from receipt of samples 3 weeks from receipt of laboratory report 3 weeks from receipt of laboratory report 2 weeks from receipt of comments on the draft report Note: The schedule assumes permits for the field investigation will be provided in a timely manner. Assumptions for Explorations (Tasks 3.1 and 3.2) CH2M HILL will prepare a Health and Safety Plan before geotechnical fieldwork efforts are implemented. Fees for all encroachment permits are not included in this estimate. CH2M HILL has assumed non- prevailing wages for subcontractor fees shown above. A conventional drill rig can access areas of the site Geotechnical drilling is not expected to encounter environmental contaminants or hazardous materials. Should such materials be encountered, drilling operations will be halted immediately at the suspect location, and landfill personnel and the client will be contacted for additional direction. Drilling may proceed when appropriate protective measures are in place. Environmental drilling is not included in this scope of work estimate. This scope of work assumes direct access to proposed borehole locations. If obstructions such as existing buildings, trees, or difficult terrain are present, this scope of work will need to be revised. Drilling will be performed using rotary -wash or hollow -stem -auger drilling methods: Traffic control is not required; therefore. fees for traffic control are not included in this estimate. Surveying, mapping, and utility mapping are beyond the scope of the geotechnical effort, and are not included. Coordination with landfill personnel and Underground Services Alert (USA) and associated firms marking utilities for USA is included. CH2M HILL is not liable for any damages attributable to errors made in marking of utility locations. Every effort will be made to minimize damage to existing shrubbery, vegetation, and grading due to the exploration. Unless otherwise agreed, surface restoration of disturbance due to the drilling operations will be limited to matching the general surface topography and removal of drill cuttings from the area It is assumed fieldwork will be performed during daylight hours and noise restrictions will not be imposed. It is assumed there will be no restrictions on time of operations. Nighttime work is not planned nor budgeted for CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. Proposed Budget and Contract Terms CH2M HILL proposes to accomplish this work according to the budget in Table 1, below. The pricing for subsequent, post - filing phase of the AFC process is highly variable depending on the level of intervention, number of data requests from the CEC, etc. Since the number and nature of subsequent CEC data requests for this project cannot be predicted accurately yet, we will make a subsequent proposal at the City's request to support future scopes. Assumptions for Budget Proposal Appendix A contains the assumptions used for the preparation of the proposed budget. Proposed Contract Terms CH2M HILL proposes to conduct this work on a time and material basis with a not -to- exceed maximum provided in Table 3. It is assumed that work will continue under the contract terms and conditions of our August 25, 2005 contract with the City of Vernon. Hourly rates will be increase by approximately 4 percent for 2006. TABLE 3 Proposed Project Budget Task No. Description /Primary Activities Hours Budget 1 AFC Preparation 1.1 AFC Project Management 392 $50,500 1.2 Environmental Field Studies (Subtotal) 96 $16,400 Cultural Resources / Pedestrian survey of site and new linears, new 32 $5,400 document search, Historic District Noisel / Ambient noise survey (may not be necessary if MGS data is 32 $6,600 available) Biological Resources / Survey of site and new linears 16 $2,000 Visual Resources / Survey of site and new linears 16 $2,400 1.3 Prepare AFC Text (Subtotal) 1,654 $203,500 Executive Summary, Project Description, Facility Closure, 40 $6,300 Alternatives / update sections Cultural Resources / Update section, discuss historic district 54 $6,800 Land Use / Update section, revise figures 36 $4,700 Noise / Update section, revise noise modeling 36 $5,300 1 Budget may be reduced by $5,000. if MGS noise data can be used. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 13 TABLE 3 Proposed Project Budget Task No Description /Primary Activities Hours Budget Traffic and Transportation / Update section, get data on new 28 intersections Visual. Resources / Update section. New visual simulation, new artist 80 rendering Socioeconomics / Update section. Revise construction data remodel 44 IMPLAN, revise census data update EJ appendix 1.3 & 2 Air Quality (includes Task 2) 1,074 Public Health / Update section. Remodel health impacts 76 Hazardous Materials Handling / Update section. Revise OCA, revise 40 chemicals and quantities. Worker Safety / Update section. 2 Waste Management / Update section. 16 Biological Resources / Update section. 26 Water Resources / Update section and permits. 50 Agriculture and Soils / Update section and soil loss equations. Revise 24 analysis of linears. Paleontological Resources / Update section. 16 Geological Hazards and Resources / Update section based on new 12 geotech study. 1.4 Draft Final AFC (for the City's Review) 1.5 Final AFC (for Filing with CEC) 16. Data Adequacy Supplement 2 Air Permit Applications and AFC Section 3 Geotech Report (Subtotal) 3.1 Preliminary Geotechnical Exploration 3.2 Final Geotechnical Exploration TOTAL NOT TO EXCEED BUDGET $2,700 $8,900 $5,300 $127,000 $10,800 $5,300 $200 $2,400 $2,800 $6,900 $3,300 $3,100 $1,700 176 $21,600 144 $40,200 228 $31,600 Included above 705 $116,900 214 $33,700 482 $83,200 3,386 $480,700 CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 14 APPENDIX A Project Assumptions The following general assumptions were used in preparing this budget: The site, construction parking, and laydown area, and linear corridors will be provided by the City. Locations will be included in the Project Description. The site will not have significant impacts that cannot be mitigated below the level of significance with standard mitigation techniques. Adequate and timely information will be provided by the City so as not to delay preparation of the AFC. City permit requirements will be provided to CH2M HILL by the City in manner. Document review by the City will occur either by e- mailed documents or by hard copy. Any slippage in the City's review will result in a day- for -day slip in the schedule. A minimum of 2 weeks is required for final QA /QC and printing of the AFC. CH2M HILL recognizes some of the MGS documentation and much of the VPP AFC will be used in the preparation of the VPP2 AFC; however, it cannot determine the extent to which the data can be used until the project details have been determined. Therefore, to provide a useful cost estimate, CH2M HILL assumes that only a limited amount of the MGS data can be used, and more than half of the VPP AFC text can be used. CH2M HILL will coordinate closely with the City and its engineer (Burns and Roe), but CH2M HILL will not prepare any of the engineering- related sections of the AFC. The City's transmission engineer (Commonwealth Associates) will provide the Transmission System Engineering and simulations of the transmission lines. All filing and processing fees are the responsibility of the City. The following sections describe important details concerning the scope and assumptions of the technical aspects of the CH2M HILL proposal. timely Project Description • This proposal assumes that a complete project description will be prepared by the City or its engineer and provided to CH2M HILL within 30 days of receipt of the Notice to Proceed (or at such time as set forth in the project schedule). CH2M HILL will assist in developing the project description, but for cost- estimating purposes, this proposal assumes no major changes in the project description that will require repeated data analyses or document revisions by CH2M HILL. Although we anticipate that the project description may change during the course of the investigation, the project description CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. A -1 must be "locked" to all changes no later than 6 weeks prior to issuing the Draft AFC. Changes after that date will result in schedule delays and increased costs. It is assumed that CH2M HILL will be responsible for determining all property owners within 500 feet of the proposed corridors and 1,000 feet of the plant site Property acquisition and feasibility of obtaining rights -of -way are outside the scope of this assignment, The City will provide engineering layout, grading, drainage plans, access roads, laydown areas, oblique aerial photos, supply and discharge water quality, System Impact Studies, Phase I and II (if needed) Environmental Site Assessments, and other necessary support studies. Project Linears • It is assumed that each project linears will not exceed one mile in length. Costs for field studies and analysis associated with changes in project linears will be provided on a time- and - materials basis beyond the not to exceed budget cap. Cultural Resources An architectural /historical survey will not be required. The City will be responsible for obtaining permission from the property owners for the pedestrian and historic surveys, should any additional fieldwork be required. Properties will not be surveyed where permission from the property owner has not been received at the time of the survey. Land Use General Plan, Zoning Ordinance, Specific Plans, and other land use documents will be provided by the City at no cost. Also, it is assumed that maps of these areas will be provided by the City on GIS (preferred) or in some electronic format. It is assumed that no more than one meeting will be held with City planners about the any Specific Plans and that all studies performed regarding the Specific Plans, land use plans or other entitlements will be provided to CH2M HILL at no cost. A meeting, if required, will be attended by CH2M HILL's Project Manager and Land Use Discipline Lead. It is assumed that no other planned or recently approved projects exist within one mile of the project site If they do exist, the City planners will provide a list of such projects and expected construction dates at the initial meeting. No additional entitlements would be required for the site The proposed site is not subject to a Williamson Act contract or any other deed restrictions. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. Noise This proposal assumes that one 25 -hour ambient noise monitor will be performed at more than three locations. The City will coordinate access to nearby property for monitoring purposes. However, if the City is able to provide post- construction noise monitoring of MGS, and use of this data is acceptable to the CEC, ambient noise monitoring will not be required and the budget will be reduced by $5,000. The noise modeling budget assumes that the City or its Engineer (Burns and Roe) will provide CH2M HILL with noise data about the proposed plant suitable for modeling. This typically requires sound power level guarantees or estimates from equipment vendors (including, but not limited to, combustion turbine generator, steam turbine, SCR /HRSG, stack, fuel gas compressors, cooling towers, chillers, etc.). Data shall be provided in readily useable form;` Additionally, the project owner will provide CH2M HILL with an AutoCAD compatible (dwg or dxf file) general arrangement drawing, including elevations, that is referenced to a known and standard survey datum (e.g., UTM NAD 83). Budget assumes that only one noise model will be developed. This proposal assumes that the City's Engineer will be able to attenuate noise from the plant to a level that would comply with the local ordinance for noise generation and the CEC's CEQA standards. If the project were not able to achieve this attenuation, additional studies (on a time- and - materials basis) may be necessary to apply for an exception to the more general regulation. This proposal does not include extraordinary measures to achieve compliance with local noise ordinances or the CEC's CEQA significance standard. Traffic and Transportation It is assumed that this project would be constructed in an area that is generally not exposed to adverse traffic conditions. This proposal assumes that construction activities would likely cause temporary adverse impacts to traffic. Mitigation would consist of scheduling construction traffic so as not to coincide with high- volume hours. The proposal assumes that the construction /laydown area will be located adjacent or close to the site. This proposal assumes that the City will provide intersection turning movement counts and accident analysis. Visual Resources • It is assumed that the City will provide recent oblique aerial photos of the project site for use in preparing the "artist rendering" simulation. If the City cannot provide an oblique photo, one will be obtained by an outside vendor on a time- and- materials basis, or a simulation will be provided without a base photo. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. This proposal assumes that visual resources assessment would require no more than one key observation point (KOP) and that one visual simulation will be prepared. Visual simulations of plumes and the electrical transmission line are not included in the proposal cost. • No more than one site visit with CEC visual staff to select KOPs and take existing condition photos of the KOP is included. • It is assumed the City's engineer (Burns and Roe) will provide in a timely manner general arrangement drawings and elevation drawings in AutoCAD or Microstation for . use in preparing a three - dimensional wire frame of the plant arrangement for use in preparing the visual simulation. Delays in receiving these drawings could result in a day- for -day slip in the filing schedule. Socioeconomics • This analysis will address potential Environmental Justice impacts from the project over a 10 -mile area • It is assumed that for estimates of project cost, and local spending data during construction and operation, would be available from the City's engineer to estimate economic impacts. This proposal assumes that the monthly workforce data and construction schedule would be provided by the City in a timely manner. It is assumed that the City will provide budget information if it has changed since the preparation of the VPP AFC. • It is assumed that a publicly -owned power plant will not be required to pay property taxes. Air Quality • Once the information critical to the project description (make, model, and emissions for chosen equipment, etc., precise location and emission release parameters), it will not be changed. Once the emissions profile /operating profile is established in Task 2.1, it will not be changed. We assume that the operating profile, turbine technologies, and release parameters will be identical for all turbine units. • It is assumed that no additional meetings with SCAQMD will be needed to identify and discuss project description issues with City and the District. Any such meetings will be considered out -of- scope. • No work to conduct interpollutant offset trading is included in this scope, although CH2M HILL can perform this service if necessary. All necessary engineering information needed for the air permit applications will be provided by the City in a timely manner. CH2M HILL CONSIDERS THE DATA, AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. This scope does not include the preparation of a Class II increment analysis and assumes that ambient air quality impacts will be below the PSD significant impact rates. This scope includes CALPUFF Lite modeling in support of the PSD permit application. However, it does not include additional CALPUFF modeling if the initial AQRV modeling exceeds USEPA's Class I significant impact standards. Public Health • The proposed power plant would have emissions from combustion of natural gas and use of recycled water in the cooling towers that could potentially adversely affect public health. The public health section provides a quantitative evaluation of risks from toxic air pollutants emitted from the facility, a qualitative evaluation of risks associated with the use of the recycled water for cooling purposes, and a brief qualitative evaluation of risks from accidental releases of hazardous materials stored onsite. The level of effort for emissions estimation, air modeling, and air toxics risk analysis is coordinated with the Air Quality task. It is assumed that an evaluation of electromagnetic fields (EMF) will be contained in the Transmission Line Safety and Nuisance section, to be prepared by the City's transmission engineer (Commonwealth Associates). The AFC would address the acute and chronic exposure of the public within a 3 -mile area to potentially toxic substances emanating from the proposed power plant. Hazardous Materials Handling • The proposed power plant would use small amount of liquid fuels, paints, solvents, and other potentially hazardous materials. For VPP, the only material handled in excess of reportable amounts was ammonia and hydrazine. The analysis for the AFC assumes that hazardous materials uses are similar to those assessed in the VPP AFC. Changes in chemical quantities and usage data will be provided by the City's engineer within 2 weeks of the start of VPP2 AFC preparation. Worker Safety • The City's engineer will provide support in assessing fire safety issues, if needed. Waste Management • Waste management measures are an important part of plant operations and the AFC process that is relatively consistent among power plants. The waste management analysis for this proposal is expected to be similar to the analysis prepared for VPP and that the City's engineer will provide estimates of the construction and operational waste types and volumes within 2 weeks of the start of AFC preparation. • It is assumed that a zero - liquid discharge (ZLD) system will not be assessed in the AFC. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. Biological Resources A search of the CNDDB database and a USFWS list of species potentially occurring in the project area will be prepared. Access to the site and properties within 1,000 feet of each side of the linear corridors would be provided by the. City. The proposal assumes that rare plant surveys and protocol surveys for threatened or endangered species will not have to be performed. The proposal assumes that no wetland delineation occur on the proposed project site:: Water Resources Power plants use significant amounts of water for cooling purposes. California has a general policy opposing the use of potable water supplies in cooling towers where recycled water supplies are available. As with VPP, the new plant would use recycled water from the Central Basin Municipal Water District (CBMWD). Water disposal is an important consideration in power plant permitting. It is assumed that wastewater will be sent to the LACSD (Sanitation Districts of Los Angeles County). It is assumed that water quality data for water supply and recycled water sources will not differ from that used in the VPP AFC. This scope includes modifying draft permits prepared for the VPP AFC. However, it is assumed that such modifications will require minimum effort. Agriculture and Soils Our budget assumes that quantification of accelerated soil loss due to wind and water erosion will only need to be prepared for the site and changes to the linears. The cost estimate assumes that soils maps / data for this area are readily available, since they will need to be placed on GIS. Paleontological Resources This proposal assumes the site is not likely to contain significant paleontological resources. It is assumed that the paleontological resources records search performed for VPP will be adequate for this site as well. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. Geologic Hazards and Resources • This section will analyze seismic and flooding issues based on data provided by the City's engineer or available from current Federal Emergency Management Agency (FEMA) maps. • It is assumed` that a copy of the preliminary geotechnical report for the site will be used and other edits to this section will be minimal. Alternatives • Our budget assumes that up the new site will be added to the analysis of alternative sites prepared for the VPP AFC. Special Studies • Many power projects require additional special studies as a result of requests submitted by the CEC staff during discovery. Examples of such studies include regional transportation studies, regional air quality studies for cumulative impacts, and populations studies of biological resources. The number and extent of these responses and special studies are highly dependent on availability of source materials and seasonality. The costs of responding to such requests would considered out of scope. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. A -7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO 10,027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF CONTRACT CHANGE ORDER NO 4 TO STANDARD AGREEMENT FOR PROFESSIONAL SERVICES BY AND BETWEEN THE CITY OF VERNON AND CH2M HILL INC. WHEREAS, on August 3, 2005, the City Council of the City of Vernon adopted Resolution No 8.820, as amended by Contract Change Order Nos. 1 -3, approving a Standard Agreement for Professional Services (the "Original Agreement ") with CH2M Hill Inc. ( "CH2M Hill ") for engineering services in support of the Application for Certification-to the California Energy Commission for the power plant project and WHEREAS, the Director of Light & Power has recommended by memo dated June 18, 2009, that Contract Change Order No 4 with CH2M Hill be approved for Task 1 relating to the proposed 1X1 Generating Facility Project in an amount not to exceed $130,400.00 under the terms and conditions of the Original Agreement for a total revised contract amount of $2,289,810.00; and WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the - Vernon City Code, it is in the public interest and necessity to enter into Change Order No 4 to the Original Agreement with CH2M Hill. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1; The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true 2 5 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 and correct. SECTION 2: The City Council of the City of Vernon hereby approves Contract as the copy which reference. SECTION 3: The City Council of the City of Vernon hereby Change Order No. 4, in substantially the same form attached hereto as Exhibit A and incorporated by authorizes the Director of Light & Power to execute Contract Change Order No 4 for, and on behalf of, the City of Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 4: The City Council of the City of Vernon hereby directs the City Clerk, or her designee, to send a fully executed Contract Change Order No. 4 to CH2M Hill. SECTION 5: The City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 20th day of July, 2009. ATTEST: MANUELA GIRON, Citty Clerk - 2 Name: Hilario Gonzales Title: Mayor / _ EXHIBIT A CITY OF VERNON Light & Power Department Contract Change Order No. 4 Supplement No. n/a CONSULTANT: CH2MHILL, Inc. (PO 055.0000730), Resolution Date 8 -3 -05 TO: CH2MHILL, Inc. (Consultant and /or Vendor) 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833 REQUESTED BY: City of Vernon -You are hereby authorized to make the herein described changes, or do the following described work not included in the original agreement. ADDITIONAL SCOPE OF WORK AND /OR ADJUSTMENTS IN COMPENSATION AS IDENTIFIED BELOW FOR THE REMAINDER OF THIS FISCAL YEAR (2008 - 2009): 1. Additional funds to prepare Supplement D to the AFC for the proposed 1X1 generating facility. The total additional cost for Task 1 is in the amount of not -to- exceed $130,400. 2. Additional Scope of Work as briefly described below and in more detail in the attached proposal dated June 11, 2009: Task 1 • Prepare AFC Supplement D • Prepare Supplement D Air Quality Section & ATC Permit Application Total amount of this requested Change Order not to exceed: $ 130,400 Except as specifically modified herein, all terms and conditions of the original Agreement remain in full force and effect, and apply to the additional compensation as if said compensation was originally included in the Agreement Base Amount of Contract: Approved Contract Change Order #1: Approved Contract Change Order #2: Approved Contract Change Order #3: $ 896,290.00 32,420.00 480,700.00 750,000.00 Revised contract Amount (including this requested Change Order No.4): $2,289,810.00 Page Approved: Date: DONAL O'CALLAGHAN, Director, Light & Power ATTEST: Date: By NeIIy Giron, City Clerk We, the undersigned Consultant/Vendor, have given careful consideration to the change proposed and hereby agree. If this Change Order is approved we will continue to provide the necessary support services with additional compensation NOT to exceed the amount written above. Accepted: CH2MHILL, Inc. (ConsultantNendor) Date: By: Title: CC: Abraham Alemu Peter Hervish Project Control Document Control SREP 12.0135 (Resolution No. 8820) CH MHILL. June 11, 2009 Donal O'Callaghan City of Vernon 4305 S. Santa Fe Ave. Vernon, CA 90058 CH2M HILL 2485 Natomas Park Drive Suite 600 Sacramento, CA 95033 Tel 916-920.0300 Fax 916- 920.8483 Subject: Proposal for Additonal Funds, Change Order #4 Dear Donal: Attached is our proposal for additional funds to prepare Supplement D to the AFC for a 1 x 1 power plant (tentatively named the City Job Support Facility). This budget also includes funding for a round of data responses on the new plant, comments on the PSA and FSA, and support during hearings. As you know, this budget is only an estimate because the level of effort to perform this work is dependant on factors beyond our control and, hence, unknown at this time. Sincerely, CH2M HILL WiA4. Mark L. Bricker Vice President, Industrial Systems ohn L. Carrier, J.D. Program Manager (1 RECENT!). & POWDER DEPT. Scope of Work Task 1 - Prepare AFC Supplement D and ATC Permit Application Task 1.1- Prepare new Authority to Construct permit application Task 1 is intended to assist in the preparation of applications) for permits -to- construct suitable for submission to the South Coast Air Quality Management District (SCAQMD) and the United States Environmental Protection Agency (USEPA) for the revised equipment size and layout at the facility. At this point CH2M HILL assumes that the federal Prevention of Significant Deterioration (PSD) requirements and review that were required for the Southeast Regional Energy Center project, will not be needed for the 1x1 project. Detailed Scope of Services Create Operating Profile / Create Emissions Profile It is anticipated that the City will specify a revised operating profile (hours per day /week /year, number of starts and stops, load profile) for the proposed facility. Once this has been established and with unit- specific emissions information from equipment manufacturers, CH2M HILL will create a correspondent emissions profile (uncontrolled) based on the agreed operations. CH2M HILL will work with the City to create an operating profile that meets its needs without unduly causing a need for additional costly emissions offsets. SCAQMD BACT /LAERAnalysis A review of the RACT /BACT /LAER Clearinghouse (RBLC) will be conducted to determine whether or not there have been any significant changes to the turbine LAER /BACT determination completed as part of the AFC. SCAQMD Regulation 1303 and Rule 2005 Ambient Air Quality Impact Analysis Demonstration To re- evaluate the potential for exceedances of the Regulation XIII thresholds, maximum potential emissions of NOx, CO, PM10 and PM25, and SO2 from the proposed facility will be modeled using EPA's ISCST3 dispersion model. Emissions from the turbines will be modeled under normal operating conditions, start up conditions and anticipated commissioning scenarios to show each units maximum impact levels. Meteorological data and DEM files used in the AFC will be used for the revised analysis. It is anticipated that the City will provide an updated general arrangement drawing and the associated structure dimensions. SCAQMD Regulation 1401 Toxic New Source Review Screening A revised risk analysis using the procedures in SCAQMD's "Risk Assessment Procedures for Rules 1401 and 212," Version 5.0, will be conducted, Visibility Impact Screening Analysis As outlined in the AFC, the City limits are beyond the threshold requiring a visibility analysis for the Class I areas. It is also assumed that the project will no longer trigger PSD requirements to conduct a Class I impact analysis. Therefore, an updated visibility analysis will not be included as part of the analysis. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 1 Confirmation of Needed Emission Offsets Based on the emissions profile created earlier in this scope of work, and the control scheme proposed in the BACT /LAER analysis, CH2M HILL will refine the emission offset estimates for NOx, PM10, ROG, and SO2 (as a precursor to PM1o). Note that as a result of USEPA redesignation of the South Coast Air Basin as CO attainment, CO offsets are no longer required whether or not potential emissions exceed the Rule 1304 offset thresholds. We anticipate that there will be a cooling tower associated with CTGs to provide cooled process water. While the SCAQMD does not require permits for cooling towers or offsets for associated particulate emissions, the CEC includes these emissions in its analysis and requires that associated particulate emissions be offset as a mitigation measure. Acceptable sources of particulate matter credits are likely to be the most difficult to find. We will provide the estimates to the City, with the assumption that the City will then decide whether to arrange a purchase option with sellers. It is likely that no single seller possesses all the required emission offsets, and that multiple sellers must be identified. Calculation of Greenhouse Gas (GHG) Emissions The California Air Resources Board (ARB) is currently developing statewide California Environmental Quality Act (CEQA) significance thresholds for GHG emissions and is expected to present the recommended thresholds to the ARB Board in 2009. Therefore, GHG emissions will be calculated for informational purposes at this time However, no conclusions regarding significance will be made during the analysis. Prepare Draft and Final Permit Applications CH2M HILL will assist the City of Vernon in preparing the permit application package which will include the standard SCAQMD permit application forms, attachments, and necessary calculations. This scope of work assumes the annual emissions for the revised project will no longer exceed the emission thresholds which would require a PSD analysis, therefore, this air quality analysis for the revised project no longer includes an evaluation of facility compliance with the PSD requirements per USEPA Region IX. Deliverables • Draft ATC Permit Application to client for review • Final ATC Permit Application to SCAQMD and the CEC Assumptions This scope of work assumes the annual emissions for the revised project will no longer exceed the emission thresholds that would require a PSD permit. Task 1.2—Revise air modeling for inclusion in Supplement D CH2M HILL will provide an air quality section for Supplement D that will include revisions to the following elements. Existing Environment Discussion will include a summary of the changes to the AAQS since the AFC filing and compilation of the three most recent years of ambient air quality data The ambient air quality will be summarized based upon readily available data collected and distributed by the California Air Resources Board (ARB) and the SCAQMD. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 2 Characterization of Impacts • Identification of project emission sources and emission rates (both criteria pollutants and greenhouse gases (GHGs)) during construction, commissioning, startup and operation will be provided. • Calculations and summaries of worst -case hourly, daily and annual emissions of criteria pollutants and GHGs • Identification of proposed emission control systems and comparison with Best Available Control Technology (BACT) requirements • Evaluation of project conformance with applicable LORS • Evaluation and discussion of potential direct impacts on air quality from aspects of the project during phases of construction, commissioning, startup and operation will be provided. Dispersion modeling of the project during various phases will be performed using the ISCST3 Gaussian dispersion model It is assumed that the SCAQMD 1981 meteorological data used in the AFC will be used for this revised analysis. • Discussion of air quality mitigation (offsets) proposed for the project Cumulative Impacts • Identification and discussion of the significant cumulative impacts. Mitigation Measures • Incorporation of oxidation catalyst and selective catalytic reduction systems to comply with BACT requirements will be discussed • Summary of emission offsets to be provided to comply with SCAQMD and CEQA requirements. Deliverables In addition to the Air Quality Section of Supplement D, CH2M HILL will provide applicable appendix materials to support the air quality analysis including the following: • Spreadsheets documenting all emission calculations • Key excerpts of the dispersion modeling input and output files documenting the modeling analysis and results • Complete set of all input and output files associated with the dispersion modeling on DVD. (Five sets of the modeling files will be provided to the CEC on DVD). Assumptions The ambient air quality impact analysis will be evaluated using the ISCST3 Gaussian dispersion model. Task 1,3- Prepare Analysis for Key Sections In addition to Air Quality (addressed in Task 1.2), the following sections will require substantial effort to revise for Supplement D: Project Description, Public Health, Socioeconomics, Soils and Water Resources, Traffic and Transportation, Visual Resources CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL, 3 (including new visual simulations), and Hazardous Materials Handling (including an update of site remediation and a revised offsite consequence analysis). The remaining sections (Biological Resources, Cultural Resources, Land Use, Noise and Vibration, Worker Safety and Fire Protection, Waste Management, Geological Resources and Palentological Resources) should only be minimally affected. Deliverables • Revised AFC Section 2, Project Description in redline strikeout format • Revised figures for AFC Section 2 • Revised Visual Simulaitons and artist rendering • Draft and Final tevised Offsite Consequence Analysis • Draft and final text for inclusion into Supplement D Assumptions • Information on the proposed transmission system and new pole configurations is readily available from Commonwealth Associates, Inc. • No new KOP photos would be necessary • No fieldwork will be necessary. • AutoCAD files of the GA and Elevation will be available from Burns & Roe • City of Vernon will supply a new project name prior to completing revisions to the figures Task 2 —File Supplement D with the CEC and Other Parties The environmental and engineering data will be incorporated into a DRAFT Supplement D and forwarded to the City and project team for its internal review. Comments will be returned to CH2M HILL for incorporation into the supplement. CH2M HILL will address the comments received on the DRAFT Supplement D and prepare a complete final supplement for submission to the CEC. CH2M HILL will have 65 hard copies and 100 CDs of the Final Supplement D printed for filing with the CEC, plus 30 additional hard copies for the proof -of- service list and for use by the discipline leads and the City, for a total of 95 hard copies and 100 CDs. The CDs will include the AFC and Supplements A through D. Deliverables Draft Supplement D (including appendixes) for team review and comment Final Supplement D (including appendixes) for submission to the CEC Assumptions City of Vernon will supply a new project name prior to completing revisions to the figures CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 4 Comments will be received in a timely manner (i.e., within 1 week) Reproduction costs will not exceed $5,000. Task 3 — Respond to Data Requests Data requests may be issued by the CEC and intervenors in response to the supplement. If data requests are received, the CH2M HILL project manager will review them and distribute them to the appropriate discipline leads for action. The project manager will provide the City with an analysis of the relevance and appropriateness of the data requests and an estimate of the level of effort required as well as the quantity of time required for response. The project manager also will alos include the data requests in the existing tracking sheet. Deliverables • Data responses to data requests received from the CEC and intervenors Assumptions • The estimated number of data requests from the CEC staff is assumed to be 15, and from intervening parties, up to 20. • Data Responses will not be so complex that they cannot be responded to within the 30 -day timeframe. • Will not require more that 636 hours of professional time to prepare data responses. • Administrative support time for this task assumes that it will not exceed 3 months in duration. Task 4- Assist the City in Representing the Project at a CEC Informational Meetings, Workshops, Prehearing Conferences, and Community Meetings The CH2M HILL project management team will provide support services to the City, as requested. It is anticipated that these services will include attendance at informational meetings, workshops, conferences, and various types of community meetings. If requested, the project manager will meet with the City's team for pre- briefings prior to meetings and hearings. The project manager (with assistance from technical staff, as appropriate) also will provide technical counsel and assist the City in developing appropriate strategies to facilitate the licensing of the replacement project. The project manager will take meeting minutes at meetings attended and develop a list of action items requiring resolution. This task also includes reviewing and coordinating responses to the Preliminary Staff Assessment (PSA) and Final Staff Assessment (FSA) as well as attending any workshops held on those documents. Deliverables • Comments on the PSA and FSA • Minutes from meetings and workshops attended CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 5 Assumptions • Will not require more that 220 hours of professional time to prepare data responses. • Assumes upto 6 trips with 2 staff (PM plus one technical) to workshops (assumed to be in Vernon area) • Administrative support time for this task assumes that it will not exceed 4 months in duration. Task 5- Prepare Testimony, Assist in Preparation of Briefs and Participate in Hearings The CH2M HILL Team will prepare expert witness testimony for each topic area presented in the AFC. The witness testimony will include the witness' name and qualifications, a section listing the materials referenced in the testimony, a summary of topic area testimony, and the witness' resume. CH2M HILL will prepare witness testimony for those topic areas prepared by CH2M HILL and will provide templates to the City and the design engineer (Burns and Roe) to assist in its witness testimony preparation. CH2M HILL will incorporate witness testimony of these outside contractors into a single submittal to the CEC. In addition, CH2M HILL will take the lead in preparing the Hearing Record for the project and will work closely with legal counsel (Latham & Watkins) during the hearing. CH2M HILL's discipline leads will be available for witness preparation and to provide testimony, as needed, at the hearings. Our team will also work closely with legal counsel in preparing the post- hearing briefs and any response briefs. In addition, the CH2M HILL Team will review and comment on the CEC Presiding Member's Proposed Decision (PMPD) and the Commission Decision. CH2M HILL will incorporate comments from the City and the design engineer on the PMPD and Commission Decision for submittal to the CEC: Deliverables • Written testimony summarizing each of the discipline's findings and documents filed. • Resume of each technical expert • Review and comment on pleadings filed by legal counsel. • Oral, expert witness testimony at evidentiary hearings Assumptions • Pre- hearing conference and evidentiary hearings will be held near Vernon, CA • Evidentiary hearings will involve no more than 8 disciplines (Air Quality, Noise, Public Health, Socioeconimics, Traffic & Transportation, Visual Resources, Waste Management, and Water Resources) and last no longer than 1 day per discipline. • Training for evidentiary hearings will invove no more than 2 days total with no more than one day per discipline and be held in the Los Angeles area CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 6 Task 6 -Final Geotechnical Exploration CH2M HILL will complete approximately 800 - lineal feet of drilling at approximately 18 locations at the proposed facility locations. At least six borings will be conducted at the proposed power block area of the facility. Borehole depths will be advanced to at least 50 feet bgs at 10 locations. All boreholes will be backfilled with a cement - bentonite slurry mixture. Detailed laboratory testing will be conducted to determine classification, insitu moisture and density, strength, compressibility, corrosivity, and expansiveness. CH2M HILL will complete engineering calculations related to liquefaction potential, settlement, differential settlement, bearing capacity, and pavement design for the proposed structures and facility. Foundation design analyses will evaluate shallow and, if required, deep foundations. A site- specific seismic response analysis is not assumed as part of this scope of work. Deliverables • Draft Geotechnical Report for client review and comment • Final Geotechnical Report Assumptions • Number and depth of borings will not exceed those in the scope Task 7— Project Management To keep the City informed and the team efforts coordinated and on schedule, Mr. John Carrier, will continue to serve as the Project Manager. Mr. Carrier will prepare a project milestone schedule and monthly progress reports. He will participate in regular conference calls and will document action items so that tasks are completed according to schedule. John will also serve as the single point of contact for CH2M HILL coordinating efforts between our environmental specialists and the City. Our project manager will be assisted by other support staff such as project accountants and administrative assistants for project setup, invoicing, statusing, and other project management functions as needed. Deliverables • Action Item Updates for Conference Calls • Monthly Status Reports and Invoices Contract Administration duties, as required Assumptions Weekly conference calls with the City, its engineer and legal counsel during the 6- month duration of this effort. Limited travel costs (two round trips to Vernon, CA) for attending team coordinating meetings is included in this task. Budget All work will be done on a time and materials basis. CH2M HILL's budget estimate for Tasks 1 through 7 is shown in Table 1. The amounts shown in the table do not include CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 7 estimates for larger permits or plans, such as an RMP or CRMMP. Expense rates for Tasks 1 through 7 are shown in Table 2. As in the past, we will charge a 10 percent mark -up on all subcontractors. A list of hourly rates for 2009 is provided in Table 3. Rates will be subject to increase annually. The budget for Tasks 1 through 7 is highly variable depending on the level of intervention, number of data requests from the CEC, complexity of the data requests, etc. Hence, should additional funding be needed to complete this work, a scope and budget will be prepared. jf i TABLE 1 Estimated Fundin Tasks 1 t G No. Description Budget Prepare AFC Supplement D $49,700 Prepare Supplement D Air Quality Section and ATC Permit $80,700 Application 1 3 6 7 File upplement D with the CEC and Other Parties Respond Data Requests Assist the City in ' - •resenting the Project - a CEC Informational Meetin• orkshops, Pre- -aring Conferences, and Community Meetings Prepare Testimony, Assist in Pr- • ion of Briefs and Participate in Hearings Final Geotechnical Ex ration Project Manage - t TOTAL Budget Estimate Through Project License $11,700 $102,500 $52,500 $91,800 $113,500 $41,100 $543,500 Estimate assumed mid -point of the range. TABLE 2 Expense Charges for Tasks 1 through 7 Task Unit 2009 Rate Overnight Mail Each package At cost First Class Mail (for large mailings only) Each letter At cost Automobile Mileage (personal car) At established federal rate (per mile) $0.55 Travel & Living At cost Subcontractors /Outside Services Each Cost + 10% CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 8 TABLE 3 2009 Hourly Billing Rates by Labor Classification Labor Classification 2009 Hourly Rate Principal /Fellow Technologist $219 Consultanting Engineer / Scientist or Progam Manager $208 Senior Engineer / Scientist or Sr. Project Manager $189 Lead Engineer / Scientist or Assoc. Project Manager $172 Project Engineer / Scientist /Project Manager $143 Staff Surveyor $124 Staff Engineer / Scientist $124 Associate Engineer / Scientist $107 Junior Engineer / Scientist $95 Senior Technician / Graphics / Drafting $107 Technician / Graphics / Drafting $95 Office / Clerical / Accounting . $77 Proposed Contract Terms CH2M HILL proposes to conduct this work on a time and material basis with a stipulated maximum of $529,000 in additional funding under the terms of the existing contract between CH2M HILL and the City of Vernon, dated August 5, 2005. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 9 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583 -8811 August 6, 2009 CH2MHill, Inc. Attn: Mark L. Bricker Vice President of Industrial Systems 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833 Re: Contract Change Order No. 4 Dear Mr. Bricker: Transmitted herewith is a copy of the fully executed change order as referenced above and Resolution No. 10,027, approved by City Council on July 20, 2009. If you have any questions regarding this matter, please call Mr. Donal O'Callaghan, at (323) 583 -8811 ext. 834. ery truly yours, Nelly Giron City Clerk NG:dj c: Donal O'Callaghan Purchasing Department Resolution Nos. 8820, 10,027 Agreement Nos. 05 -094 Exclusively Industrial CITY OF VERNON Light & Power Department Contract Change Order No. 4 Supplement No. n/a Page of 2 CONSULTANT: CH2MHILL, Inc. — (PO 055.0000730), Resolution Date 8-3-05 TO: CH2MHILL, Inc. (Consultant and /or Vendor) 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833 REQUESTED BY: City of Vemon -You are hereby authorized to make the herein described changes, or do the following described work not included in the original agreement. ADDITIONAL SCOPE OF WORK AND/OR ADJUSTMENTS IN COMPENSATION AS IDENTIFIED BELOW FOR THE REMAINDER OF THIS FISCAL YEAR (2008 - 2009): 1. Additional funds to prepare Supplement D to the AFC for the proposed 1X1 generating facility. The total additional cost for Task 1 is in the amount of not-to-exceed $130,400. 2. Additional Scope of Work as briefly described below and in more detail in the attached proposal dated June 11, 2009: Task 1 • Prepare AFC Supplement D e Prepare Supplement D Air Quality Section & ATC Permit Application Total amount of this requested Change Order not to exceed: $ 130.409 Except as specifically modffied herein, all terms and conditions of the original Agreement remain in full force and effect, and apply to the additional compensation as if said compensation was originally included in the Agreement Base Amount of Contract: $ 896,29000 Approved Contract Change Order #1: 32,420.00 Approved Contract Change Order #2: 480,700.00 Approved Contract Change Order #3: 750,000.00 Revised contract Amount (including this requested Change Order No.4): $2.289.810.00 Page 2 Approve �"' Date: LNCV) DONAL O'CAUAGHAN, Director, : t & Power We, the undersigned ConsultanWendor, have given careful consideration to the change proposed and hereby agree. If this Change Order is approved we will continue to provide the necessary support services with additional compensation NOT to exceed the amount written above. Accepted: CH2MHILL. Inc. (ConsultantNendor) Date: y. /Y1 K I , ,92,C f -3- obo? Title: U ' Ce PRes,'cJen.)v -.270dces / ent g CC: Abraham Alemu Peter Hervish Project Control Document Control — SREP 12.0135 (Resolution No. 8820) CITY OF VERNON Light & Power Department Contract Change Order No. 4 Supplement No. nia Page CONSULTANT. CH2MHILL, Inc. - (P0 055.0000730), Resolution Date 8 -3-05 TO: CH2MHILL, Inc. (Consultant and /or Vendor) 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833 REQUESTED BY: City of Vernon -You are hereby authorized to make the herein described changes, or do the following described work not induded in the original agreement. ADDITIONAL SCOPE OF WORK AND /OR ADJUSTMENTS IN COMPENSATION AS IDENTIFIED BELOW FOR THE REMAINDER OF THIS FISCAL YEAR (2008.2009): 1. Additional funds to prepare Supplement D to the AFC for the proposed 1X1 generating facility. The total additional cost for Task 1 is in the amount of not-to-exceed $130,400. Additional Scope of Work as briefly described below and in more detail in the attached proposal dated June 11, 2009: Task 1 • Prepare AFC Supplement D • Prepare Supplement D Air Quality Section & ATC Permit Application • Total amount of this requested Change Order not to exceed: $ 130.400 Except` as specifically rrrodified herein, all terms and conditions of the original Agreement remain in full force and effect, and apply to the additional compensation as if said compensation was originally included in the Agreement Base Amount of Contract: Approved Contract Change Order #1: Approved Contract Change Order #2: Approved Contract Change Order #3: $ 895,290.00 32,420.00 480,700.00 750,000.00 Revised contract Amount (including this requested Change Order No.4): $2;289.810.00 Approved:`�� �1.-�� DONAL O'CALLAGHAN, (rector, otA ATTEST: By: Giron, C`o'erk :1° We, the undersigned ConsultanWendor, have given careful consideration to the change proposed and hereby agree. If this Change Order is approved we will continue to provide the necessary support services with additional compensation NOT to exceed the amount written above. Accepted: CH2MHILL. Inc. (ConsultantlVendor) Date: 8 - ` - ac20 Y 7/(64A(Xl /'77iK 1, . 3gic keA. Title: (/ /Ce /IJI�L %Z7 CC: Abraham Alemu Peter Hervish Project Control Document Control — SREP 12:0135 (Resolution No 8820) 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583 -8811 July 20, 2009 CH2MHi11, Inc. Attn: Mark L. Bricker or John L. Carrier 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833 Re: Contract Change Order No. 4 Gentlemen: Enclosed for execution, by the proper party, is the original change order, as referenced above, approved by City Council July 20, 2009, through Resolution No. 10,027. Once it has been signed, please return the original change order to the undersigned. Upon the receipt of the partially signed change order, a copy of the fully executed change order will be forwarded to you. If you have any questions regarding this matter, please call Mr. Donal O'Callaghan at (323) 583- 8811 ext. 834. ery truly your Nel City Clerk NG:dj c: Donal O'Callaghan Resolution No. 10,027 Agreement File No. 05 -094 Exclusively Industrial" CITY OF VERNON Light & Power Department Contract Change Order No. 4 Supplement No. n/a Page I CONSULTANT: CH2MHILL, Inc. — (PO 055.0000730), Resolution Date 8-3 -05 TO: CH2MHILL, Inc. (Consultant and /or Vendor) 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833 REQUESTED BY: City of Vernon -You are hereby authorized to make the herein described changes, or do the following described work not included in the original agreement. ADDITIONAL SCOPE OF WORK AND /OR ADJUSTMENTS IN COMPENSATION AS IDENTIFIED BELOW FOR THE REMAINDER OF THIS FISCAL YEAR (2008-2009): 1. Additional funds to prepare Supplement D to the AFC for the proposed 1X1 generating facility. The total additional cost for Task 1 is in the amount of not-to-exceed $130,400. 2. Additional Scope of Work as briefly described below and in more detail in the attached proposal dated June 11, 2009: Task 1 • Prepare AFC Supplement D • Prepare Supplement D Air Quality Section & ATC Permit Application Total amount of this requested Change Order not to exceed: $ 130,400 Except as specifically modified herein, all terms and conditions of the original Agreement remain in full force and effect and apply to the additional compensation as if said compensation was originally included in the Agreement $ 896,290.00 32,420.00 480,700.00 750,000.00 Base Amount of Contract: Approved Contract Change Order #1: Approved Contract Change Order #2: Approved Contract Change Order #3: Revised contract Amount (including this requested Change Order No.4): $2.289,810.00 Page 2 Approved: Date: DONAL O'CALLAGHAN, Director, Light & Power ATTEST: Date: By: Nally Giron, City Clerk We, the undersigned ConsultanWendor, have given careful consideration to the change proposed and hereby agree. If this Change Order is approved we will continue to provide the necessary support services with additional compensation NOT to exceed the amount written above. Accepted: CH2MHILL, Inc. (ConsultantNendor) Date: By: Title: CC: Abraham Alemu Peter Hervish Project Control Document Control - SREP 12.0135 (Resolution No. 8820) INTEROFFICE RECEIVED IIJN ! 0 7nnq CITY CLERK'S OFFICE DATE: June 18, 2009 Light & Power Department C eeW 9 G h. MEMORANDUM s �a tato TO: Donal O'Callaghan Director of Light & Power FROM: Javier Valdez, Business & Accounts Clerk APPROVED JUL 20 '09 CITY GONlL CITY 3 _ 'RK DI TRI: UTION 0 SUBJECT: CH2MHILL, Inc. Change Order No.4 — Supplement D for the proposed 1X1 Generating Facility — Resolution No. 8820 Attached is CH2MHILL, Inc. Change Order No.4 for additional funds requested to prepare Supplement D to the AFC for the proposed 1X1 Generating Facility Project. The total additional cost for Task 1 is the amount of no -to- exceed $130,400.00. Additional Scope of Work as briefly described below and in more detail in the attached proposal date June 11, 2009: 1. Prepare AFC Supplement D 2. Prepare Supplement D Air Quality Section & ATC Permit Application. If you agree please sign attached proposal. Please let me know if I can provide you with any additional information. DOC: JV Attachments cc: Abraham Alemu Peter Hervish Document Control STAFF REPORT LIGHT & POWER DATE: June 18, 2009 TO: Honorable Mayor and City Council FROM: Donal O'Callaghan, Director of Light & Power RE: CH2MHILL, Inc. Agreement for Professional and Technical Services with the City of Vernon - Resolution No. 8820 Attached is the Change Order No.4 for additional funds requested to prepare Supplement D to the AFC for the proposed 1X1 Generating Facility Project. The total additional cost for Task 1 is the amount of not -to- exceed $130,400.00. Additional Scope of Work as briefly described below and in more detail in the attached proposal dated June 11, 2009: 1. Prepare AFC Supplement D. 2. Prepare Supplement D Air Quality Section & ATC Permit Application. Recommendation: We are recommending City Council approve the attached Contract Change Order No. 4 with CH2MHILL, Inc. in the amount not -to- exceed $130,400.00. DO :jv Attachment c Nelly Giron, (Original) Judy Lehr Document Control Resolution No. 8820 CITY OF VERNON Light & Power Department Contract Change Order No. 4 Supplement No. n/a Page 1 Of 2 CONSULTANT: CH2MHILL, Inc. -(PO 055.0000730), Resolution Date 8 -3 -05 TO: CH2MHILL, Inc. (Consultant and /or Vendor) 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833 REQUESTED BY: City of Vernon -You are hereby authorized to make the herein described changes, or do the following described work not included in the original agreement. ADDITIONAL SCOPE OF WORK AND /OR ADJUSTMENTS IN COMPENSATION AS IDENTIFIED BELOW FOR THE REMAINDER OF THIS FISCAL YEAR (2008- 2009): 1. Additional funds to prepare Supplement D to the AFC for the proposed 1X1 generating facility. The total additional cost for Task 1 is in the amount of not-to-exceed $130,400. 2. Additional Scope of Work as briefly described below and in more detail in the attached proposal dated June 11, 2009: Task 1 • Prepare AFC Supplement D • Prepare Supplement D Air Quality Section & ATC Permit Application Total amount of this requested Change Order not to exceed: $ 130,400 Except as specifically modified herein, all terms and conditions of the original Agreement remain in full force and effect, and apply to the additional compensation as if said compensation was originally included in the Agreement Base Amount of Contract: Approved Contract Change Order #1: Approved Contract Change Order #2: Approved Contract Change Order #3: $ 896,290.00 32,420.00 480,700.00 750,000.00 Revised contract Amount (including this requested Change Order No.4): $2,289,810.00 Page 2 Approved: Date: DONAL O'CALLAGHAN, Director, Light & Power ATTEST: Date: By: Nelly Giron, City Clerk We, the undersigned ConsultantNendor, have given careful consideration to the change proposed and hereby agree. If this Change Order is approved we will continue to provide the necessary support services with additional compensation NOT to exceed the amount written above, Accepted: CH2MMILL, Inc. (ConsultantNendor) Date: By: Title: CC: Abraham Alemu Peter Hervish Project Control Document Control — SREP 12.0135 (Resolution No. 8820) CH2MHILL June 11, 2009 Donal O'Callaghan City of Vernon 4305 S. Santa Fe Ave. Vernon, CA 90058 Subject: Proposal for Additonal Funds, Change Order #4 Dear Donal: CH2M HILL 2405 Natomas Park Drive Suite 600 Sacramento, CA 95033 Tel 916 - 9204300 Fax 91642041463 Attach ed is our proposal for additional funds to prepare Supplement D to the AFC for a 1 x 1 power plant (tentatively named the City Job Support Facility). This budget also includes funding for a round of data responses on the new plant, comments on the PSA and FSA, and support during hearings. As you know, this budget is only an estimate because the level of effort to perform this work is dependant on factors beyond our control and, hence, unknown at this time. Sincerely, CH2M HILL PAA figA:e't 11111V /7 ..,,a,44,e-e-t,/,64r<i/ Mark L. Bricker ohn L. Carrier, J.D. /1 l Vice President, Industrial Systems Program Manager RECEIVE LIGHT & POWER DEPT. Scope of Work Task 1 - Prepare AFC Supplement D and ATC Permit Application Task 1.1— Prepare new Authority to Construct permit application Task 1 is intended to assist in the preparation of application(s) for permits -to- construct suitable for submission to the South Coast Air Quality Management District (SCAQMD) and the United States Environmental Protection Agency (USEPA) for the revised equipment size and layout at the facility. At this point CH2M HILL assumes that the federal Prevention of Significant Deterioration (PSD) requirements and review that were required for the Southeast Regional Energy Center project, will not be needed for the 1x1 project. Detailed Scope of Services Create Operating Profile / Create Emissions Profile It is anticipated that the City will specify a revised operating profile (hours per day /week /year, number of starts and stops, load profile) for the proposed facility. Once this has been established and with unit - specific emissions information from equipment manufacturers, CH2M HILL will create a correspondent emissions profile (uncontrolled) based on the agreed operations. CH2M HILL will work with the City to create an operating profile that meets its needs without unduly causing a need for additional costly emissions offsets. SCAQMD BACT / LAER Analysis A review of the RACT /BACT /LAER Clearinghouse (RBLC) will be conducted to determine whether or not there have been any significant changes to the turbine LAER /BACT determination completed as part of the AFC. SCAQMD Regulation 1303 and Rule 2005 Ambient Air Quality Impact Analysis Demonstration To re- evaluate the potential for exceedances of the Regulation XIII thresholds, maximum potential emissions of NOx, CO, PM10 and PM2.5, and SO2 from the proposed facility will be modeled using EPA's ISCST3 dispersion model. Emissions from the turbines will be modeled under normal operating conditions, start up conditions and anticipated commissioning scenarios to show each units maximum impact levels. Meteorological data and DEM files used in the AFC will be used for the revised analysis. It is anticipated that the City will provide an updated general arrangement drawing and the associated structure dimensions. SCAQMD Regulation 1401 Toxic New Source Review Screening A revised risk analysis using the procedures in SCAQMD's "Risk Assessment Procedures for Rules 1401 and 212," Version 5.0, will be conducted. Visibility Impact Screening Analysis As outlined in the AFC, the City limits are beyond the threshold requiring a visibility analysis for the Class I areas. It is also assumed that the project will no longer trigger PSD requirements to conduct a Class I impact analysis. Therefore, an updated visibility analysis will not be included as part of the analysis. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 1 Confirmation of Needed Emission Offsets Based on the emissions profile created earlier in this scope of work, and the control scheme proposed in the BACT /LAER analysis, CH2M HILL will refine the emission offset estimates for NOx, PM1o, ROG, and SO2 (as a precursor to PM1o). Note that as a result of USEPA redesignation of the South Coast Air Basin as CO attainment, CO offsets are no longer required whether or not potential emissions exceed the Rule 1304 offset thresholds. We anticipate that there will be a cooling tower associated with CTGs to provide cooled process water. While the SCAQMD does not require permits for cooling towers or offsets for associated particulate emissions, the CEC includes these emissions in its analysis and requires that associated particulate emissions be offset as a mitigation measure. Acceptable sources of particulate matter credits are likely to be the most difficult to find. We will provide the estimates to the City, with the assumption that the City will then decide whether to arrange a purchase option with sellers. It is likely that no single seller possesses all the required emission offsets, and that multiple sellers must be identified. Calculation of Greenhouse Gas (GHG) Emissions The California Air Resources Board (ARB) is currently developing statewide California Environmental Quality Act (CEQA) significance thresholds for GHG emissions and is expected to present the recommended thresholds to the ARB Board in 2009. Therefore, GHG emissions will be calculated for informational purposes at this time. However, no conclusions regarding significance will be made during the analysis. Prepare Draft and Final Permit Applications CH2M HILL will assist the City of Vernon in preparing the permit application package which will include the standard SCAQMD permit application forms, attachments, and necessary calculations. This scope of work assumes the annual emissions for the revised project will no longer exceed the emission thresholds which would require a PSD analysis, therefore, this air quality analysis for the revised project no longer includes an evaluation of facility compliance with the PSD requirements per USEPA Region IX. Deliverables • Draft ATC Permit Application to client for review • Final ATC Permit Application to SCAQMD and the CEC Assumptions This scope of work assumes the annual emissions for the revised project will no longer exceed the emission thresholds that would require a PSD permit. Task 1.2— Revise air modeling for inclusion in Supplement D CH2M HILL will provide an air quality section for Supplement D that will include revisions to the following elements. Existing Environment Discussion will include a summary of the changes to the AAQS since the AFC filing and compilation of the three most recent years of ambient air quality data. The ambient air quality will be summarized based upon readily available data collected and distributed by the California Air Resources Board (ARB) and the SCAQMD. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 2 Characterization of Impacts • Identification of project emission sources and emission rates (both criteria pollutants and greenhouse gases (GHGs)) during construction, commissioning, startup and operation will be provided. • Calculations and summaries of worst -case hourly, daily and annual emissions of criteria pollutants and GHGs • Identification of proposed emission control systems and comparison with Best Available Control Technology (BACT) requirements • Evaluation of project conformance with applicable LORS • Evaluation and discussion of potential direct impacts on air quality from aspects of the project during phases of construction, commissioning, startup and operation will be provided. Dispersion modeling of the project during various phases will be performed using the ISCST3 Gaussian dispersion model. It is assumed that the SCAQMD 1981 meteorological data used in the AFC will be used for this revised analysis. • Discussion of air quality mitigation (offsets) proposed for the project Cumulative Impacts • Identification and discussion of the significant cumulative impacts. Mitigation Measures • Incorporation of oxidation catalyst and selective catalytic reduction systems to comply with BACT requirements will be discussed • Summary of emission offsets to be provided to comply with SCAQMD and CEQA requirements. Deliverables In addition to the Air Quality Section of Supplement D, CH2M HILL will provide applicable appendix materials to support the air quality analysis including the following: • Spreadsheets documenting all emission calculations • Key excerpts of the dispersion modeling input and output files documenting the modeling analysis and results • Complete set of all input and output files associated with the dispersion modeling on DVD. (Five sets of the modeling files will be provided to the CEC on DVD). Assumptions The ambient air quality impact analysis will be evaluated using the ISCST3 Gaussian dispersion model. Task 1.3— Prepare Analysis for Key Sections In addition to Air Quality (addressed in Task 1.2), the following sections will require substantial effort to revise for Supplement D: Project Description, Public Health, Socioeconomics, Soils and Water Resources, Traffic and Transportation, Visual Resources CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 3 (including new visual simulations), and Hazardous Materials Handling (including an update of site remediation and a revised offsite consequence analysis). The remaining sections (Biological Resources, Cultural Resources, Land Use, Noise and Vibration, Worker Safety and Fire Protection, Waste Management, Geological Resources and Palentological Resources) should only be minimally affected. Deliverables • Revised AFC Section 2, Project Description in redline /strikeout format • Revised figures for AFC Section 2 • Revised Visual Simulaitons and artist rendering • Draft and Final tevised Offsite Consequence Analysis • Draft and final text for inclusion into Supplement D Assumptions • Information on the proposed transmission system and new pole configurations is readily available from Commonwealth Associates, Inc. • No new KOP photos would be necessary • No fieldwork will be necessary. • AutoCAD files of the GA and Elevation will be available from Burns & Roe • City of Vernon will supply a new project name prior to completing revisions to the figures Task 2 —File Supplement D with the CEC and Other Parties The environmental and engineering data will be incorporated into a DRAFT Supplement D and forwarded to the City and project team for its internal review. Comments will be returned to CH2M HILL for incorporation into the supplement. CH2M HILL will address the comments received on the DRAFT Supplement D and prepare a complete final supplement for submission to the CEC. CH2M HILL will have 65 hard copies and 100 CDs of the Final Supplement D printed for filing with the CEC, plus 30 additional hard copies for the proof -of- service list and for use by the discipline leads and the City, for a total of 95 hard copies and 100 CDs. The CDs will include the AFC and Supplements A through D. Deliverables • Draft Supplement D (including appendixes) for team review and comment • Final Supplement D (including appendixes) for submission to the CEC Assumptions • City of Vernon will supply a new project name prior to completing revisions to the figures CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 4 • Comments will be received in a timely manner (i.e., within 1 week) • Reproduction costs will not exceed $5,000. Task 3 — Respond to Data Requests Data requests may be issued by the CEC and intervenors in response to the supplement. If data requests are received, the CH2M HILL project manager will review them and distribute them to the appropriate discipline leads for action. The project manager will provide the City with an analysis of the relevance and appropriateness of the data requests and an estimate of the level of effort required as well as the quantity of time required for response. The project manager also will alos include the data requests in the existing tracking sheet. Deliverables • Data responses to data requests received from the CEC and intervenors Assumptions • The estimated number of data requests from the CEC staff is assumed to be 15, and from intervening parties, up to 20. • Data Responses will not be so complex that they cannot be responded to within the 30 -day timeframe. • Will not require more that 636 hours of professional time to prepare data responses. • Administrative support time for this task assumes that it will not exceed 3 months in duration. Task 4— Assist the City in Representing the Project at a CEC Informational Meetings, Workshops, Prehearing Conferences, and Community Meetings The CH2M HILL project management team will provide support services to the City, as requested. It is anticipated that these services will include attendance at informational meetings, workshops, conferences, and various types of community meetings. If requested, the project manager will meet with the City's team for pre - briefings prior to meetings and hearings. The project manager (with assistance from technical staff, as appropriate) also will provide technical counsel and assist the City in developing appropriate strategies to facilitate the licensing of the replacement project. The project manager will take meeting minutes at meetings attended and develop a list of action items requiring resolution. This task also includes reviewing and coordinating responses to the Preliminary Staff Assessment (PSA) and Final Staff Assessment (FSA) as well as attending any workshops held on those documents. Deliverables • Comments on the PSA and FSA • Minutes from meetings and workshops attended CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 5 Assumptions • . Will not require more that 220 hours of professional time to prepare data responses. • Assumes upto 6 trips with 2 staff (PM plus one technical) to workshops (assumed to be in Vernon area) • Administrative support time for this task assumes that it will not exceed 4 months in duration. Task 5— Prepare Testimony, Assist in Preparation of Briefs and Participate in Hearings The CH2M HILL Team will prepare expert witness testimony for each topic area presented in the AFC. The witness testimony will include the witness' name and qualifications, a section listing the materials referenced in the testimony, a summary of topic area testimony, and the witness' resume. CH2M HILL will prepare witness testimony for those topic areas prepared by CH2M HILL and will provide templates to the City and the design engineer (Burns and Roe) to assist in its witness testimony preparation. CH2M HILL will incorporate witness testimony of these outside contractors into a single submittal to the CEC. In addition, CH2M HILL will take the lead in preparing the Hearing Record for the project and will work closely with legal counsel (Latham & Watkins) during the hearing. CH2M HILL's discipline leads will be available for witness preparation and to provide testimony, as needed, at the hearings. Our team will also work closely with legal counsel in preparing the post- hearing briefs and any response briefs. In addition, the CH2M HILL Team will review and comment on the CEC Presiding Member's Proposed Decision (PMPD) and the Commission Decision. CH2M HILL will incorporate comments from the City and the design engineer on the PMPD and Commission Decision for submittal to the CEC. Deliverables • Written testimony summarizing each of the discipline's findings and documents filed. • Resume of each technical expert • Review and comment on pleadings filed by legal counsel. • Oral expert witness testimony at evidentiary hearings Assumptions • Pre - hearing conference and evidentiary hearings will be held near Vernon, CA • Evidentiary hearings will involve no more than 8 disciplines (Air Quality, Noise, Public Health, Socioeconimics, Traffic & Transportation, Visual Resources, Waste Management, and Water Resources) and last no longer than 1 day per discipline. • Training for evidentiary hearings will invove no more than 2 days total with no more than one day per discipline and be held in the Los Angeles area CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY/PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 6 Task 6 —Final Geotechnical Exploration CH2M HILL will complete approximately 800 - lineal feet of drilling at approximately 18 locations at the proposed facility locations. At least six borings will be conducted at the proposed power block area of the facility. Borehole depths will be advanced to at least 50 feet bgs at 10 locations. All boreholes will be backfilled with a cement - bentonite slurry mixture. Detailed laboratory testing will be conducted to determine classification, insitu moisture and density, strength, compressibility, corrosivity, and expansiveness. CH2M HILL will complete engineering calculations related to liquefaction potential, settlement, differential settlement, bearing capacity, and pavement design for the proposed structures and facility. Foundation design analyses will evaluate shallow and, if required, deep foundations. A site - specific seismic response analysis is not assumed as part of this scope of work. Deliverables • Draft Geotechnical Report for client review and comment • Final Geotechnical Report Assumptions • Number and depth of borings will not exceed those in the scope Task 7— Project Management To keep the City informed and the team efforts coordinated and on schedule, Mr. John Carrier, will continue to serve as the Project Manager. Mr. Carrier will prepare a project milestone schedule and monthly progress reports. He will participate in regular conference calls and will document action items so that tasks are completed according to schedule. John will also serve as the single point of contact for CH2M HILL coordinating efforts between our environmental specialists and the City. Our project manager will be assisted by other support staff such as project accountants and administrative assistants for project setup, invoicing, statusing, and other project management functions as needed. Deliverables • Action Item Updates for Conference Calls • Monthly Status Reports and Invoices • Contract Administration duties, as required Assumptions • Weekly conference calls with the City, its engineer and legal counsel during the 6-month duration of this effort. • Limited travel costs (two round trips to Vernon, CA) for attending team coordinating meetings is included in this task. Budget All work will be done on a time and materials basis. CH2M HILL's budget estimate for Tasks 1 through 7 is shown in Table 1. The amounts shown in the table do not include CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 7 estimates for larger permits or plans, such as an RMP or CRMMP. Expense rates for Tasks 1 through 7 are shown in Table 2. As in the past, we will charge a 10 percent mark -up on all subcontractors. A list of hourly rates for 2009 is provided in Table 3. Rates will be subject to increase annually. The budget for Tasks 1 through 7 is highly variable depending on the level of intervention, number of data requests from the CEC, complexity of the data requests, etc. Hence, should additional funding be needed to complete this work, a scope and budget will be prepared. TABLE 1 Estimated Funding.fot.Tasks 1 t T. - No. Description 7/ Budget 1 Prepare AFC Supplement D Prepare Supplement D Air Quality Section and ATC Permit Application 2 File upplemen 1 with the CEC and Other Parties 3 Respond l ata Requests 4 Assist the City in - - • resenting the Project a CEC Informational Meetin• orkshops, Pre • -aring Conferences, 6 7 and Community Meetings Prepare Testimony, Assist in Pr Participate in Hearings Final Geotechnical Ex Project Manage t $49,700 $80,700 $11,700 $102,500 $52,500 tion of Briefs and $91,800 ration TOTAL Budget Estimate Through Project License $113,500 $41,100 $543,500 * Estimate assumed mid -point of the range. TABLE 2 Expense Charges for Tasks 1 through 7 Task Unit 2009 Rate Overnight Mail Each package At cost First Class Mail (for large mailings only) Each letter At cost Automobile Mileage (personal car) At established federal rate (per mile) $0.55 Travel & Living At cost Subcontractors /Outside Services Each Cost + 10% CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 8 TABLE 3 2009 Hourly Billing Rates by Labor Classification Labor Classification 2009 Hourly Rate Principal / Fellow Technologist $219 Consultanting Engineer / Scientist or Progam Manager $208 Senior Engineer / Scientist or Sr. Project Manager $189 Lead Engineer / Scientist or Assoc. Project Manager $172 Project Engineer / Scientist / Project Manager $143 Staff Surveyor $124 Staff Engineer / Scientist $124 Associate Engineer / Scientist $107 Junior Engineer / Scientist $95 Senior Technician / Graphics / Drafting $107 Technician / Graphics / Drafting $95 Office / Clerical / Accounting $77 Proposed Contract Terms CH2M HILL proposes to conduct this work on a time and material basis with a stipulated maximum of $529,000 in additional funding under the terms of the existing contract between CH2M HILL and the City of Vernon, dated August 5, 2005. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 9 CITY OF VERNON Light & Power Department Contract Change Order No. 3 Supplement No. n/a Page ,1 of - 1 PROJECT: Vernon Power Plant Project Agreement for Professional Services dated August 5, 2005 (PO No. 12474) TO CH2M Hill, Inc. (Consultant and/or Vendor) 0 5 — O ILI p--25 .• ° • 1%10 2485 Natomas Park Drive, Suite 600 Sacramento, CA 95833 REQUESTED BY: City of Vernon You are hereby directed to make the herein described changes, or do the following described work not included in the original agreement. ADDITIONAL SCOPE OF WORK AND ADDITIONAL COMPENSATION (IN ACCORDANCE WITH PROPOSAL DATED. JULY 12, 2006, (as modified), ATTACHED HERETO AND MADE A PART HEREOF 1) Additional funds necessary to complete preparation of the AFC and licensing process for the 914 MW, 3 x 1 Power Plant to be located at Fruitland and Boyle Avenues with compensation not to exceed $750,000.00 2) Additional scope of work as briefly described below and in more detail in the attached proposal dated July 12, 2006: •Task 1 - Assist in preparing air permit applications and related detailed tasks • Task 2 - Prepare AFC for filing with California Energy Commission and related detailed tasks •Task 3 - Data Adequacy Supplement •Task 4 - Respond to CEC Data Requests •Task 5 - Assist in representing the City regarding the Project at CEC informational meetings, Workshops, pre- hearing conferences and community meetings • Task 6 - Prepare testimony, assist in preparation of briefs and participate in Hearings • Task 7 - Final Geotechnical Exploration Total Amount of this Change Order: $750,000.00 Except as specifically modified herein, all terms and conditions of the original Agreement are unmodified and remain in full force and effect, and apply to the extended time of performance, the additional work and additional costs as if those terms, services and costs were originally included in the Agreement Base Amount of Contract . .: . .. . . ..... . ...$896,290.00 Amount of Change Order No. 1 (approved January 10, 2006).' . .. ..... ... ...$ 32.420.00 Amount of Change Order No. 2 (approved Feb. 15, 2006) $480,700.00 Approved revised Contract Amount. Modified contract, including this requested Change Order ( No. 3) $2,159,410.00 By reason of this order the time of completion will be adjusted as necessary Approved: 1 0 CALLAGHA IT :..0- or • Light & Power We, the undersigned Consultant/Vendor, have given careful consideration to the change proposed and hereby agree. If this proposal is approved we will provide all equipment, furnish all materials (except as may be noted otherwise), and perform all services necessary for the work specified above, and will accept as full payment therefore the prices shown above. Accepted: CHM2 Hill, Inc. (Consultant/Vendor) Date: 4 d 3D, 2006 Title: l/ ,ce Ste:CON cc: Purchasing INTEROFFICE MEMORANDUM Light & Power Department DATE: September 28, 2006 TO: Bruce V. Malkenhorst, Jr., Assistant City Attorney /Acting City Clerk FROM: Gloria J. Orosco, Special Assistant to the City Administrator RE: CH2M Hill, Inc. - Change Order No. 3 On September 20, 2006, City Council approved the recommendation of the Finance Committee to approve Change Order No. 3, in the amount of $750,000.00. Attached hereto is a fully executed duplicate original for your records. An executed duplicate original has been forwarded to CH2M Hill, Inc. If you should have any questions please feel free to contact me. /gjo c: A. Baldere (w /o attachment) D. O'Callaghan (w /o attachment) L & P A/P (w /o attachment) L & P Document Control (w /o attachment) D. Jaunzemis, Purchasing Office July 12, 2006 Donal O'Callaghan City of Vernon 4305 S. Santa Fe Ave. Vernon, CA 90058 USA Subject: Proposal for Additonal Funds, Change Order #3 Dear Donal: CH2M HILL 2485 Natomas Park Drive Suite 600 Sacramento, CA 95833 Tel 916.920.0300 Fax 916.920.8463 RECEJVED JUL 1 7 2006 BY: Attached is our proposal for additional funds to complete preparation of the AFC and licensing process for the 914 MW, 3 x 1 plant to be located at Fruitland and Boyle avenues. As you are aware, we received funding to prepare the AFC for the 2 x 1 plant that was to be located on Soto Street (Contract Change Order #2), which was prepared and filed with the CEC on March 2, 2006 (06- AFC -1). Prior to the end of March, the City requested that we prepare a new AFC for the 914 MW plant and you authorized us to use the remaining funds for that effort. In the process of completing that effort and filing the AFC (06- AFC -4) on June 30, 2006, we have depleted those funds and attached is our proposal for providing additional support through the licensing process. Sincerely, H2M HILL John L. Carrier, J.D. Program Manager Anthony Baldare Greg W. Eldridge, P.E. Vice President, Area Manager Scope of Work Task 1— Assist in Preparing Air Permit Applications Objectives Task 1 is intended to assist in the preparation of application(s) for permits -to- construct suitable for submission to the South Coast Air Quality Management District (SCAQMD) and the United States Environmental Protection Agency (USEPA) for the planned new equipment at the facility. At this point CH2M HILL assumes that the federal Prevention of Significant Deterioration (PSD) requirements and review will be applicable for this project. This will necessitate the submittal of a permit application by Mr. Krishna Nand to USEPA's Region IX offices in San Francisco, as the SCAQMD has relinquished it delegated authority to administer the federal PSD regulations. The permit application will take information prepared for the SCAQMD permit and format it for submittal to the USEPA. Detailed Scope of Services Task 1.1: Create Operating Profile 1 Create Emissions Profile We expect that the City will specify an operating profile (hours per day /week /year, number of starts and stops, load profile) for the proposed facility. Once this has been established and with unit- specific emissions information from equipment manufacturers, CH2M HILL will create a correspondent emissions profile (uncontrolled) based on the agreed op°er Ttons. CH2M HILL w ro pve e is information to the City. While estimating a larger number of starts and stops is conservative, it will create more air emissions (and potentially increase the requirement for emission offsets). CH2M HILL will work with the City to create an operating profile that meets its needs without unduly causing a need for additional costly emissions offsets. Changes in the Vendor's start up and shut down emissions data required CH2M HILL to revise the emission estimates during June 2006. Task 1.2: SCAQMD BACT 1 LAER Analysis SCAQMD Regulation XIII and Rule 2005 (RECLAIM NSR) require BACT /LAER for all new sources of emissions that have the potential to emit more than one pound per day. CH2M HILL will provide an analysis suitable for submittal to the District in the permit application. Given that the project site is in an area that is classified as nonattainment for ozone, particulate matter (PMlo and PM2.5), and carbon monoxide (CO), this analysis will not consist of a formal PSD-style "top- down" analysis, but rather, a demonstration that shows the intended control scheme (we assume SCR and an oxidation catalyst), meets the appropriate District definitions of BACT and LAER. Based on the recent BACT / LAER determination for the Inland Empire Energy Center project, CH2M HILL expects BACT /LAER levels to be 2 ppm NOx, 2 ppm reactive organic gases (ROG), 5 ppm for ammonia slip, and 3 ppm CO (all referred to @ 15% 02). CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 1 Task 1.3: SCAQMD Regulation 1303 and Rule 2005 Ambient Air Quality Impact Analysis Demonstration SCAQMD Regulation XIII and Rule 2005 set forth pre - construction review requirements for new and modified facilities to ensure that the operation of such facilities does not interfere with current attainment or progress toward attainment of ambient air quality standards, and that future economic growth within the SCAQMD is not unnecessarily restricted. For nonattainment pollutants, Reg. XIII establishes maximum allowable changes in ambient concentrations attributed to a new or modified facility. For attainment pollutants, such as NOx, the modeling must demonstrate that an exceedance of the ambient air quality standards will not occur. The proposed facility must demonstrate conformance with these requirements to obtain a permit. To evaluate the potential for exceedances of the Regulation XIII thresholds, maximum potential emissions of NOx, CO, PM10 and PM2.5, and SO2 from the proposed facility will be modeled using EPA's ISCST3 dispersion models. Emissions from the turbines will be modeled under normal operating conditions, start up conditions and anticipated commissioning scenarios to show each units maximum impact levels. These maximum impact levels will be compared to the SCAQMD impact thresholds in Table A -2 for only non- attainment pollutants. Meteorological data for a nearby monitoring station will be obtained from the SCAQMD. These data are preprocessed by the SCAQMD for use with ISCST3. Digital Elevation Map (DEM) files will be used to assign elevation heights to the receptors. Once the area of peak concentrations is defined for each of the required averaging times, a fine receptor grid will be applied to that area and the models rerun to demonstrate that the peak concentrations have indeed been identified. An important input to the modeling will be the identification and dimensions of nearby existing or anticipated structure, such as boilers, stacks or buildings can influence the dispersion characteristics of the proposed facility's exhaust stacks. Dispersion modeling will use these dimensions and distances from the stack release points to assess downwash influences. The revised emissions resulting from new vendor data (received in June) required new modeling runs to be performed to incorporate the revised start up and shutdown emissions estimates. Task 1.4: SCAQMD Regulation 1401 Toxic New Source Review Screening South Coast AQMD administers its environmental justice program through the application of this rule. It requires quantification of emissions of listed "toxic air contaminants," and provides four separate tiers of analysis to determine whether the impact is acceptable. It is prudent to quickly determine whether the new major equipment (combustion turbines) will have an acceptable impact. Therefore, a "Tier 2" analysis using the procedures in SCAQMD's "Risk Assessment Procedures for Rules 1401 and 212," Version 5.0, will be conducted. We assume this level of analysis will be sufficient to demonstrate an acceptable impact. If this is not the case, the City will be so informed, and a more detailed analysis proposed. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 2 Note that under its CEQA requirements, the SCAQMD requires that applicants using either aqueous or anhydrous ammonia -based SCR systems perform ammonia spill and dispersion analyses to demonstrate that no adverse effects will occur within the areas bounded by the 150 ppmv isopleths. This analysis will also be required for the Hazardous Materials section of the AFC and one analysis will be used to satisfy both requirements. Task 1.5: Visibility lmpact Screening Analysis SCAQMD Regulation XIII, Rule 1303 requires a visibility impacts analysis for 6 Class I areas. The following table presents the Class I areas, the distance threshold beyond which an analysis is not required, and the distance to the nearest city limit. As shown in the table below, the City limits are beyond the threshold distance requiring a visibility analysis for the Class I areas. However, the PSD program required a Class I impact analysis be performed to determine impacts to air quality- related values.. Class I Areas, Threshold Distances, and Distance to Nearest City Limit Class I Area Distance Threshold Distance to Nearest City Limit Kilometers Kilometers Agua Tibia Wilderness 28 121 Cucamonga Wilderness 28 53 Joshua Tree National Monument 29 157 San Gabriel Wilderness 29 31 San Gorgonio Wilderness 32 112 San Jacinto Wilderness 28 130 Visibility is an air quality- related value identified in the Clean Air Act as a characteristic of areas protected by federal regulation to maintain their pristine qualities (Class I areas). An analysis of visibility and Class I increment analyses for the nearest Class I areas (San Gabriel and Cucamonga Wildernesses will be performed according to guidance published by the National Park Service and in the EPA Guideline on Air Quality Modeling (40 CFR Part 51, Appendix W). Both recommend the use of the EPA CALPUFF model to determine Class I impacts. Due to past modeling for the VPP project showing impacts above the significance criteria, CH2M HILL was required to perform the more detailed CALPUFF analysis. Task 1.6: Confirmation of Needed Emission Offsets Based on the emissions profile created earlier in this scope of work, and the control scheme proposed in the BACT /LAER analysis, CH2M HILL will refine the emission offset estimates for NOx, PM10, CO, ROG, and SO2 (as a precursor to PM10). We anticipate that there will be a cooling tower associated with CTGs to provide cooled process water. While the SCAQMD does not require permits for cooling towers or offsets for associated particulate emissions, the CEC includes these emissions in its analysis and requires that associated particulate emissions be offset as a mitigation measure. Acceptable sources of particulate matter credits are likely to be the most difficult to find. We will provide the estimates to the City, with the assumption that the City will then decide whether to arrange a purchase option with sellers. It is likely that no single seller possesses all the required emission offsets, and that multiple sellers must be identified. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 3 As noted above, the SCAQMD has request the air basin be redesignation from CO nonattainment to attainment, and expects the USEPA to issue the redesignation sometime in the next 18 months. This may eliminate the need to provide CO offsets during or at the end of the licensing process. CH2M HILL will assist the City in negotiating permit conditions with the SCAQMD and the CEC that would push the requirement to provide CO offsets to prior to the first fire of the facility with the intent that the USEPA will have redesignated the area prior to first fire. Task 1.7: Prepare Draft and Final Permit Applications CH2M HILL will assist Mr. Krishna Nand in preparing the final permit application packages with application forms, attachments and necessary calculations. These include the standard SCAQMD permit application forms and necessary Title V application forms and a separate PSD permit application. Task 2- Prepare AFC for Filing with CEC Task 2.1 —Draft AFC (for City Review) As expert witnesses, each CH2M HILL discipline lead will be responsible for the preparation of their individual AFC sections. Technical and support staff will serve under the direction of the discipline lead. As each section is prepared, the discipline lead will sign off on the Quality Assurance /Quality Control (QA /QC) cover sheet and forward the section to the project manager. The project manager will be responsible for eliminating unnecessary jargon, simplifying the text where possible and ensuring that the section is understandable. The project manager will write bridging sections and determine that all issues have been addressed. Once the project manager has signed off on the QA /QC cover sheet, the section is returned to the discipline lead to ensure that technical soundness has been maintained during the editing process. The discipline lead will address any comments or issues identified by the project manager. After this final check, the section will be included in the administrative draft. To maintain consistency and clarity, the engineering sections of the AFC will also be reviewed by the project manager. After completing these reviews, the environmental and engineering sections will be incorporated into a Draft AFC and forwarded to the City for its internal review. Depending on timing, the City's review of the Draft may be done either as a whole document or one section at a time. We assume that the City will provide one unified set of review comments. Key to this process is CH2M HILL's understanding of the format, language and approach to which the CEC staff is accustomed. Thorough review of both the content and style of the AFC at this stage will provide the City the best opportunity of a data adequate AFC. Task 2.2 —Final AFC (for Filing with CEC) CH2M HILL will address the management comments received on the Draft AFC and prepare a complete Draft Final AFC for final review by the Project Team. Final changes will be made to the document to ensure internal consistency and completeness. Prior to sending the camera -ready AFC to the printer, CH2M HILL will provide an opportunity for the City to perform a final page -turn review of the document. Once any final changes have been made, CH2M HILL will have 65 hard copies and 100 CDs of the Final AFC printed for filing CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 4 with the CEC, plus 20 additional hard copies for use by the discipline leads and the City, for a total of 85 hard copies and 100 CDs. Task 3 —Data Adequacy Supplement Once the AFC is submitted to the CEC it will go through a "data adequacy" review. For this project, the CEC will review the AFC using the 12 -month checklist. Under the conditions currently being experienced by the CEC, it is unlikely that an AFC will be accepted without having to be revised. Based on the data adequacy review provided by CEC staff, CH2M HILL will work expeditiously to resolve any deficiencies in an effort to have the AFC found "data adequate" by the CEC's next business meeting following the finding of data inadequacy. We will prepare 80 hard copies of the Data Adequacy Supplement on behalf of the City, and will file 65 hard copies and 100 CD -ROM copies. The CD- ROM copies will contain both the AFC (Volumes 1 & 2) and the Data Adequacy Supplement. Task 4 — Respond to CEC Data Requests Once the AFC is accepted as adequate by the CEC, the formal Discovery phase begins. Data requests are expected from the CEC staff and intervening parties. As the data requests are received, the CH2M HILL project manager will review them and distribute them to the appropriate discipline leads for action. The project manager will provide the City with an analysis of the relevance and appropriateness of the data requests and an estimate of the level of effort required as well as the quantity of time required for response. The project manager also will develop a database to track data requests made by the CEC and intervening parties and data responses provided by CH2M HILL. The estimated number of data requests from the CEC staff is up to 150, and from intervening parties, up to 50, if the project is not controversial. Task 5— Assist the City in Representing the Project at a CEC Informational Meetings, Workshops, Prehearing Conferences, and Community Meetings The CH2M HILL project management team will provide additional support services to the City, as requested. It is anticipated that these services will include attendance at informational meetings, workshops, conferences, and various types of community meetings. The project manager will meet with the City's team for pre - briefings prior, to meetings and hearings. The project manager (with assistance from technical staff, as appropriate) also will provide technical counsel and assist the City in developing appropriate strategies to facilitate the licensing of the replacement project. The project manager will take meeting minutes at meetings attended and develop a list of action items requiring resolution. Task 6— Prepare Testimony, Assist in Preparation of Briefs and Participate in Hearings The CH2M HILL Team will prepare expert witness testimony for each topic area presented in the AFC. The witness testimony will include the witness' name and qualifications, a section listing the materials referenced in the testimony, a summary of topic area testimony, and the witness' resume. CH2M HILL will prepare witness testimony for those topic areas prepared by CH2M HILL and will provide templates to the City and the design engineer (Burns and Roe) to assist in its witness testimony preparation. CH2M HILL will incorporate CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 5 witness testimony of these outside contractors into a single submittal to the CEC. In addition, CH2M HILL will take the lead in preparing the Hearing Record for the project and will work closely with legal counsel and the Environmental Project Managers during the hearing. CH2M HILL's Primary Authors will be available for witness preparation and to provide testimony, as needed, at the hearings. Our team will also work closely with legal counsel in preparing the post - hearing briefs and any response briefs. In addition, the CH2M HILL Team will review and comment on the CEC Presiding Member's Proposed Decision (PMPD) and the Commission Decision. CH2M HILL will incorporate comments from the City, the design engineer on the PMPD and Commission Decision for submittal to the CEC. Task 7 -Final Geotechnical Exploration CH2M HILL will complete approximately 800 - lineal feet of drilling at approximately 18 locations at the proposed facility locations. At least 6 borings will be conducted at the proposed power block area of the facility. Borehole depths will be advanced to at least 50 feet bgs at 10 locations. All boreholes will be backfilled with a cement- bentonite slurry mixture. Detailed laboratory testing will be conducted to determine classification, insitu moisture and density, strength, compressibility, corrosivity, and expansiveness. CH2M HILL will complete engineering calculations related to liquefaction potential, settlement, differential settlement, bearing capacity, and pavement design for the proposed structures and facility. Foundation design analyses will evaluate shallow and, if required, deep foundations. A site - specific seismic response analysis is not assumed as part of this scope of work. Budget All work will be done on a time and materials basis. CH2M HILL's budget estimate for Tasks 1 through 7 is shown in Table 1. The amounts shown in the table do not include estimates for larger permits or plans, such as an RMP or BRMIMP. Expense charges for 2006 for Tasks 1 through 6 are shown in Table 2. As in the past, we will charge a 10 percent mark- up on all subcontractors. A list of hourly rates for 2006 is provided in Table 3. Rates will be subject to increase annually. The budget for the subsequent, post - filing phase of the AFC process (Tasks 4 through 6) is presented as an estimated range based on our experience with similar projects elsewhere in California. The cost for these tasks, is highly variable depending on the level of intervention, number of data requests from the CEC, complexity of the project, etc., therefore, a more accurate budget cannot be provided. For funding purposes, the midpoint of the range was used. CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 6 TABLE 1 Estimated Funding for Tasks 1 through 7 Task No. Description Estimate J 1 Assist in Preparing Air Permit Applications $62,500 J 2 Prepare AFC for Filing with CEC $115,700 3 Prepare Data Adequacy Supplement $29,000 4 Respond to Data Requests `� y. $250,000 - $500,000* 5 Assist the City in Representing the Project at a CEC € (, $40,000 - $80,000* Informational Meetings, Workshops, Prehearing v Conferences, and Community Meetings 6 Prepare Testimony, Assist in Preparation of Briefs and` $100,000- $300,000* Participate in Hearings 7 Final Geotechnical Report TOTAL Budget Estimate Through Project License * Estimate assumed mid -point of the range. TABLE 2 Expense Charges for Tasks 1 through 7 Task Unit 2006 Rate Overnight Mail First Class Mail (for large mailings only) Automobile Mileage (personal car) Travel & Living Each package Each letter At established federal rate (per mile) At cost At cost $0.445 At cost TABLE 3 2006 Hourly Billing Rates by Labor Classification Labor Classification 2006 Hourly Rate Principal $192 Senior Consultant/ Scientist $182 Senior Engineer / Scientist $166 Project Engineer / Scientist $151 Lead Engineer / Scientist $125 Staff Engineer / Scientist $109 Associate Engineer / Scientist $94 Junior Engineer / Scientist $83 Senior Technician / Graphics / Drafting $94 Technician / Graphics / Drafting $83 Office / Clerical / Accounting $68 CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 7 1 Proposed Contract Terms CH2M HILL proposes to conduct this work on a time and material basis with a stipulated maximum of $931,200 in additional funding under the terms of the existing contract between CH2M HILL and the City of Vernon, dated August 5, 2005 CH2M HILL CONSIDERS THE DATA AND INFORMATION IN THIS PROPOSAL TO BE PROPRIETARY. THIS PROPOSAL AND ANY INFORMATION CONTAINED HEREIN SHALL NOT BE DISCLOSED OUTSIDE THE CITY OF VERNON AND SHALL NOT BE DUPLICATED, USED, OR DISCLOSED IN WHOLE OR IN PART FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL. 8 ec' d q I clo 6 INTEROFFICE MEMORANDUM Light & Power Department DATE: August 22, 2006 Bruce V. Malkenhorst, Jr., Assistant City Attorney /Acting City Clerk FROM: Donal O'Callaghan, Director of Light & Power RE: CH2M Hill, Inc. - Change Order No. 3. }2rCoIAQ -i 611c2ip L., APPPY p cc glid4 /0(0 Pursuant to an agreement approved and authorized by Resolution No. 8820, the Light & Power Department has been utilizing the services of CH2M Hill for preparation and filing of application(s) for certificate (AFC) for the VPP Project. At this time it is necessary to have CH2M Hill provide further assistance with the filing of the AFC for the 914 MW, 3x 1 Power Plant through the "authorization to construct" phase. The tasks identified below briefly describe the necessary work and are more detailed in the attached proposal dated July 12, 2006: •Task 1 - Assist in preparing air permit applications and related detailed tasks •Task 2 - Prepare AFC for filing with California Energy Commission and related detailed tasks •Task 3 - Data Adequacy Supplement •Task 4 - Respond to CEC Data Requests •Task 5 - Assist in representing the City regarding the Project at CEC informational meetings, Workshops, pre- hearing conferences and community meetings • Task 6 - Prepare testimony, assist in preparation of briefs and participate in Hearings • Task 7 - Final Geotechnical Exploration It is hereby recommended that the attached proposed "Change Order No. 3" with CH2M Hill, Inc. be approved at a not to exceed cost of $750,000. /gjo c: A. Baldere (w /o attachment) L & P VPP Contract Files L & P CH2M Hill A/P File