1. U.S. Air Force Cooperative Agreement for Perfluorinated Compounds Response Activities
Jayne Joy, P.E.
February 9, 2017

2. Agenda March Air Reserve Base Groundwater Conditions
Proposed Environmental Service Cooperative Agreement (ESCA) with the Air Force.
Funding Basis and Terms
Next Steps.

3. Background March Air Reserve Base Boundary Fire Fighter Training
EPA lowered the Provisional Health Advisory Levels (PHA) for 2-Perfluorinated Compounds (PFC)
PFC in groundwater is from Site 7; PFC is in aqueous film forming foam and used at Site 7.
Well 59 and two private wells detected PFC above the PHA.
EPA directed water agencies to treat PHA as a drinking water standard.
Well 59 and two private wells were shut down.
Air Force assumed responsibility and prepared an agreement to fund the cost of water that Well 59 would have produced.
Requested EMWD to provide water service to two private well owners.
Fire Fighter Training
Site (Site 7)
Private Wells
EMWD Well 59
EMWD Well 56

4. Environmental Services Cooperative Agreement (ESCA 1)
Air Force agrees to pay the cost of imported water to replace the water that Well 59 would have provided.
Water quantity based the last two years of pumping data.
Cost of the imported water is based on MWD current and projected rates.
Cost developed to provide water service to the two residents.
The agreement will retroactively compensate EMWD for the water purchased since May 20, 2016, for up to three years or until Well 59 has wellhead treatment.

5. ESCA 1 Exhibit B – Cost of Imported Water
Cost Differential for Water Between Pumping from Well 59 and Purchasing MWD Imported Water
Water Sources
2016 ($/AF)
2017 ($/AF)
2018 ($/AF)
2019 ($/AF)
Imported Water From MWD for State Project Water or Colorado River Water
Treated Water (Tier 1)
942
979
1,015
1,053
Fixed Charges
147
143
144
Total Imported Unit Cost:
1,089
1,122
1,159
1,197
Water Pumped from Well 59
Total Well Unit Cost:
152
Unit Cost Differential by Calendar Year:
937
970
1,007
1,045
Cost Estimate for ESCA
2016 ($/Year)*
2017 ($/Year)
2018 ($/Year)
2019 ($/Year)
Annual Cost Differential of Using Imported Water in place of Well 59 production of AF/Year.
$ ,999
$ 1,541,505
$ 1,600,304
$ 1,660,693
* The 2016 cost estimate represents the costs incurred from May 20, 2016 to December 31, 2016, when Well 59 was shutdown.

6. Exhibit E – Cost to Provide Water Service to Two Residents
Cost Estimate for Conversion Plan (Construction Project and Service Connections)
Construction Project Costs
Task No.
Description
Estimated Cost 1
Design Phase - Site permits, design, surveying, geotechnical and administration
$ ,000 2
Award Phase - Specification and Bid Award
$ ,900 3
Construction Phase - Construction Contract, Contract Administration and Contingencies
$ ,000
Total Construction Costs:
$ ,900
Service Connection Fees
New Water Service (Mendez) 4
Standard Full Service/Meter Installation
$ ,430 5
Water Financial Participation Charges
$ ,766 6
Water Supply Development Fee $
Move Remote Meter to Residence (Nordarse) 7
Plan of Service Deposit
$ ,000 8
Plan Check Deposit
$ ,000 9
Inspection Deposit (6-10%)
$ ,000
Total Connection Fees:
$ ,496
Total Construction and Service Costs:
$ ,396

7. Estimated Costs for the Three-year ESCA 1
Task
Year
Descriptions
Costs 1
Purchase of 2016 Imported Water (May to Dec)
$921,944 2
Water Service for Two Residents
$163,396 3
Purchase of 2017 Imported Water
$1,541,505 4
Purchase of 2018 Imported Water
$1,600,304 5
Purchase of 2019 Imported Water
$1,660,693
Total for Cost for Three-year ESCA 1:
$5,887,842

8. Next Steps
ESCA 2 has been drafted and is currently under review; this second agreement will fund the cost to provide wellhead treatment for Well 59.
It is believed that PFC are effectively removed using Granular Activated Carbon (GAC). There are several manufacturers of GAC available.
The AF will fund a cost benefit analysis to compare well replacement to wellhead treatment.
ESCA 2 will be presented to the Board for consideration.
New wells slated to be developed in the area are also under discussion.

9. Recommendation
Approve and authorize the General Manger to execute the Environmental Services Cooperative Agreement Phase 1 with the Air Force Civil Engineer Center for Response Activities of Off-Base Wells with Perfluorinated Compounds.

10. Jayne Joy, P.E.
Director, Environmental & Regulatory Compliance
(951) Ext. 6241