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(760) 322-8360 • Wcb www.a.pah,rapn nGsxa.us F°R January 18, 2007 Mr. William Hunt, President Hunt Environmental Services, Inc. 319A 1 Camino del Cielo Trabuco Canyon, CA 92679 RE: Letter Agreement to Provide As-Needed Contract Administration, Oversight and Technical Assistance Related to the City's Wastewater Treatment Plant Dear Mr. Hunt: It is the intent of this correspondence to establish by letter agreement (hereinafter "Letter Agreement") a contractual relationship, between you (hereinafter "Consultant") and the City of Palm Springs (hereinafter "City"), to provide as-needed contract administration, oversight and technical assistance related to the City's Wastewater Treatment Plant (hereinafter "Project') as described in your "Letter Proposal" and "2007 Fee Schedule for Professional Services" dated January 2. 2007 and attached and incorporated by this reference as Exhibit "A". Consultant shall determine the method, details and means of performing the required services to complete Project. In consideration for those services, City agrees to pay Consultant a flat rate of $150.00 per hour, including travel expenses. In no event shall Consultant's total billings, including expenses, exceed Four Thousand Five Hundred Dollars ($4,500) without prior written authorization by the City. City shall make payment to Consultant within thirty (30) days after approval by City of an itemized invoice prepared and furnished by Consultant. All invoices submitted for payment shall include a detailed accounting of the services rendered and include a summary of the tasks performed and the total time spent on each task. Consultant shall be present at City Hall and/or Wastewater Treatment Plant Office for a ten (10) hour day, including travel time, on Thursday, January 18, 2007; Friday, January 26, 2007; and Friday, February 2, 2007. Consultant is uniquely qualified and has provided their qualifications and experience to perform the services contemplated under this Letter Agreement, a copy of which is attached hereto as Exhibit "B" and incorporated herein by this reference. It is expressly understood that the experience, knowledge, capability and reputation of the Consultant was a substantial inducement for City to enter into this Letter Agreement. Therefore, Consultant may not replace any personnel nor may their responsibilities be substantially reduced by Consultant without the express written approval of City. Post Office Box 2743 • Palm Springs, California 92263-2743 Letter Agreement for William Hunt January 18, 2007 Page 2 of 3 I The City and Consultant both acknowledge their respective duties and responsibilities. As a condition to this agreement, Consultant agrees to maintain at all times throughout the entire term of this Letter Agreement the following policies of insurance: a) General Liability Insurance. For all operations of the Consultant or any sub- contractor in performing the work provided for herein, the Consultant shall obtain and maintain in full force and effect throughout the entire term of this Agreement, a broad form comprehensive general liability (occurrence) policy with a minimum limit of One Million Dollars ($1,000,000) aggregate and One Million Dollars ($1,000,000) per occurrence for bodily injury and property damage. The insurance shall protect the applicant and the City from any claim for damages for bodily injury, including accidental death, as well as from any claim for property damage which may arise from operation performed by the consultant, its agents, employees, and/or subgrantees. Copies of the policies or endorsements evidencing the required insurance coverage shall be filed with the City Clerk prior to beginning work. b) Business Automotive Insurance. A policy of comprehensive business automobile liability insurance written on a per occurrence basis with a single limit liability in the amount of $500,000 bodily injury and property damage. Said policy shall include coverage for owned, non-owned, leased and hired cars. In addition to the coverage described above, Consultant agrees to hold harmless, indemnify, and defend City, its officers, employees, agents, representatives, and successors-in-interest against any and all loss, damage, cost, or expenses which City, its officers, employees, agents, representatives, and successors-in-interest may incur or be required to pay by reason of any injury or property damage caused or incurred by Consultant, its employees, subcontractors, or agents in the performance of this Letter Agreement. The parties intend that Consultant shall perform the services required by this Letter Agreement as an independent Consultant engaged by City and not as an officer, employee or partner of the City. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between City and Consultant. Consultant is responsible for paying all required state and federal taxes. The term of this Agreement is for a period of fifteen (15) days commencing January 18, 2007- The City reserves the right to terminate this Letter Agreement by providing a written "Notice of Termination" to Consultant at least ten (10) days prior to the date of termination specified in said Notice. However, in no event shall this Letter Agreement remain valid past February 2, 2007 unless otherwise extended by written approval of the City, Should this Letter Agreement be acceptable to you, please sign this letter at the space provided and return the original to this office. A copy of this correspondence will be mailed back to you for your records. I . Letter Agreement for William Hunt January 18, 2007 Page 3 of 3 Thank you for agreeing to work with us on this project. If you have any questions or need further clarification regarding this matter, please contact David J. Barakian, Director of Public Works/City Engineer at (760) 323-8253 ext.8732 or Troy Butzlaff, Assistant City Manager-Administrative Services, at (760) 322-8336. Sincerely, David J. Barakian F-yr�'CrRUVZD y Director of Public Works/City Engineer �\t- �_ L A61 In Agreement: Att est- BY: ZLt'47o/ ✓- William Y Hun/ , President ames Thompson, City Clerk &//0 Date DJB/mh/clr Attachments: Exhibit"A" Exhibit"B" Hunt Environmental Services, Inc. .January 2, 2007 Mr. Troy L. Butzlaff The City of Palm Springs 3200 E Tahquitz Canyon Way Palm Springs, CA 92262 Subject; Oversight of City of Palm Springs Wastewater Operations Dear Mr. Butzlaff, Effective January 16, 2007 Mr. Hunt will be operating under the new company Hunt Environmental Services, Inc. He will then be available to support the City of Palm Springs as contract administrator of Veolia Water North America's operations contract. Hunt Environmental Services, Inc. is willing to enter into a time & material arrangement where Mr. Hunt bills $150 per hour on an as-needed basis. He is willing to maintain a regular schedule of office hours at the City, if you so desire. Idis travel to your location will be billed at two hours per round trip, without mileage charge Cost is estimated at $36,000 based on working an 8-hour day with 2 hours travel, each Friday beginning January 18, 2007 and ending June 29, 2007 (24 days). Invoices will be progress-billed monthly as costs are incurred. Typical scope of work may include: • Oversight of Veolia Contract Operators including contract negotiations, invoice approval, safety program audits, review of preventative maintenance data base, weekly treatment plant inspections, serve as liaison between City and plant operators, make decisions; • Prepare staff reports for wastewater projects including City Council notification or approval; • Review and ensure compliance of the City's industrial pretreatment program; • Develop capital improvement program documents and program implementation; • Oversee waste discharge permit compliance and attend Regional Water Quality Control Board Meetings as requested by City; • Oversee wastewater master planning efforts; • Provide procurement oversight for wastewater treatment plant chemicals, biosolids, and engineered equipment; • Deal with ongoing wastewater correspondence, meetings, and issues as they arise; • Manage construction projects as needed and as requested by City; • Lobby for grant funding and writing of technical sections of grant application packages if requested by City; • Oversee and manage special projects (such as on-site electrical power development projects); and 31941 Camino del Cielo, Trabuco Canyon, CA 92679 (949) 858-1091, wthuntgcox.net EXHIBIT "A" i Mr. Troy L. Butzlaff Page 2 Oversee the sewer collection system This proposal and cost estimate will remain in effect for 60 days, If you are in agreement with the contents of this proposal, please indicate your approval by signature below. If you have any questions regarding this proposal and cost estimate, please call Ivlr. William T. Hunt at (949) 858.1091. Sincerely, William T, Hunt, CEG President Estimate Approved by City of Palm Springs: Printed Name: Date: Attachments: • Hunt Environmental Services,Inc.2007 Fee Schedule • Certificate of insurance naming the City of Palm Springs as additionally insured Hunt Environmental Services, Inc- EXHIBIT "A" Hunt Environmental Services,2ric. 2007 Fee Schedule For Professional Services Invoices for services provided by Hunt Environmental Services, Inc, consist of (1) hourly rate professional services fees;(2)material and equipment expenditures and usage; (3)subcontractor costs; (4)travel, shipping, and communications charges; and (5) sales or gross receipt taxes, as applicable. Hourly rate fees for Hunt Environmental Services,hie,professional services are indicated below: STAFF CATEGORIES h10URLY RATES Technical Services Technician $ 70.00 Scientist/Engineer $ 75.00 Staff Scientist/Engineer/Architect $ 90.00 Project Scientist/Engincer/Architect $ 100.00 Senior Scientist/Engineer/Architect $ 125.00 Principal Scientist/Engineer/Architect $ 150.00 William T. Hunt, CEG $ 150.00 Project Support Staff Clerical/Word Processing $ 60.00 Drafting $ 70.00 ➢ Invoicing and Payment: Progress invoices will be issued monthly and payment is due within thirty(30) days of invoice date. Invoices for subcontractor charges are payable upon presentation. ➢ Temporary Personnel: Charges for contract personnel supervision and using Hunt Environmental Services, Inc. facilities, equipment and materials will be at the hourly fee rate corresponding to their classification. ➢ Project Materials And Equipment: All project-related expenses, materials,field supplies, equipment charges; premiums for insurance,bonds, and letters of credit required by the client in addition to normal coverage; project-required permits and licenses; etc. will be invoiced at cost plus 15%. ➢ Travel and Related Expenses: Unless alternative agreement is agreed to in advance, charges for rental vehicles, meals,travel and lodging will be invoiced at actual cost plus 15%. Company and personal vehicles will be charged at the IRS allowable mileage reimbursement rate. ' ➢ Subcontracts: Subcontractor (drillers, analytical laboratories, etc.) charges will be invoiced at cost plus 15%, ➢ Legal Proceedings: A surcharge of 50%will be added to the professional services rates for actual sequestered preparation time and for actual time spent in depositions,public testimony, court and/or hearings. ➢ Equipment and Materials: Unless alternative agreement is agreed to in advance,Hunt Environmental Services, Inc,-owned equipment, vehicles and materials will be invoiced at fixed unit rates. A summary of these rates will be provided upon request. 31941 Camino del Cielo, Trabuco Canyon, CA 92679 (949) 858-1091, wthunt cox=net EXHIBIT "A° I WILLIAM T. HUNT Vice Presidmt Mr. Hunt is a Vice President and Area Manager with ARCADIS G&M Inc. FIis experience covers a wide range of environmental, technical, and business services. He is a California registered geologist, certified EDUCATION hydrogeologist, certified engineering geologist, certified wastewater treatment plant operator and licensed engineering construction contractor. 13.5.,Geology/Petroleum Geology He has managed hundreds of hazardous waste projects and has on many California State University,t985 occasions testified as an expert witness on behalf of industry in cases involving subsurface contamination. His experience includes many aspects REGISTRATIONS of water and wastewater treatment plant operations, environmental consulting, groundwater assessment and remediation, and construction California Certified Wastewater management. Treatment Plant Operator Registered Geologist HIGHLIGHTS Certified Hydrogeologist Certified Engineering Geologist Registered Environmental • Served for the past three years as the Director of Rialto's Wastewater Assessor Utility. California Contractor Licences: • Five years as a California Grade III Certified Wastewater Treatment "A' Engineering Contractor Plant Operator with the Orange County Water District (1977-1982). "B" General Contractor Grade III Operator Certification Still Active "C" COnCreteCOntmctOr • on Provided Congressional Testimony before a House Subcommittee on "Haz" Hazardous Waste g y Contractor the Environment(2004) Rialto spokesman for press interviews on subjects related to AFFILIATIONS Perchlorate Litigation and Wastewater Development Projects National Groundwater Association, (interviewed by local papers on a regular basis,2oo2 to present) American InstiniteofProfessional • For past two years,have made several lobbying trips to Washington DC Geologists including presentations before congressional staff and elected (CPG 9423),WEF,CWEA representatives such as Senator Diane Feinstein, Congressman Jerry Groundwater Resources Association Lewis,Congressman Gary Miller,Congressman Joe Baca and others. of California • Wrote grant proposals for and successfully delivered more than $7 million in Federal Support for Rialto and surrounding Water Purveyors YEARS OF EXPERIENCE • Two years in a National director level assignment with Black&Veatch 25 Corporation, one of the world's largest Water/Wastewater engineering firms. Reported directly to the President of the firm.. EMPLOYMENT HISTORY Appointed President&CEO of Alton Geoscience(1996) 2006-Current,Vice President and Dramatic business turnaround as TRC-Alton Geoscience chief Area Manager,ARCADIS G&M Inc executive,with four years of consecutive record level earnings 2002-2oo6,Senior Vice President, Featured in Los Angeles Times as successful turnaround chief TRC executive(1997) Invited to speak at EFCG national environmental CEO conference in 2000-20o2,National Director, New York(1998) industrial Environmental Services Successfully merged Alton Geoscience with TRC Companies, Inc„ a Black&Veatch national NYSE flim,creating liquidity for shareholders(1999) 1985-2000,President&CEO, TRC Alton Geoscience 1977-1982,Plant Operator WF-21/ Research Department, Orange County Water District EXHIBIT "Bt' WILLIAM T. HUNT Vice President THE CITY OF RIALTO,CA Acting Director of Wastewater Utility Three years as the acting director of Rialto's wastewater utility. Below is a listing of some of the key aspects of the assignment: • Maintenance of z5o miles of wastewater collection system with 6 lift stations. Developed a specification for a collection system master plan and oversaw the GIS mapping of the entire collection system using GPS locations of g,000 manholes. The project also included the hydraulic modeling of the system using Sewer CAD and the master planning evaluation of infrastructure against current and projected sewer flows. Project included scenario analysis for the including of a small wastewater scalping plant in Northern Rialto and recommendations for capital replacement and new construction of sewer lines. Rialto's Wastewater Treatment Plant is a 12.5 mgd tertiary treatment plant including primary clarification, secondary aeration with biological denitrsfication,tertiary filtration and disinfection. The plant includes five treatment trains with the first four being old, inefficient, and maintenance intensive. The fifth plant is a modern plant that currently treats approximately half the flow_ Solicited Chevron Energy Solutions to prepare a wastewater master plan that will include the installation of a methane gas fuel cell or micro turbine cogen plant capable of generating 5oo kilowatts of power and various other energy saving modifications to the existing facility. The energy revenues and cost savings will be utilized to modernize various aspects of the plant with no out of pocket cost to the City. Oversee the development of a $qo million merchant plant that is being built by EnerTech, an Atlanta, GA based company. The plant will serve as a regional biosolids processing facility and will produce a fuel product, possibly capable of generating up to 4 W of electrical power_ The Chevron Study will include the technical and financial feasibility of burning the solid fuel on site,producing up to 4 megawatts of power. If feasible, this much larger energy project will produce enough revenues to pay for the replacement of all old operating systems at the plant(plants one through four). Responsibilities include the oversight and management of the plant's contract operations company, Veolia Water North America(formerly called US Filter). Developed a capital improvement program and submitted project descriptions and budget estimates to City Council for approval. Thirteen projects were approved for zoos, including digester rehabilitation and a complete overhaul of tertiary gravity filtration system. Design phase of projects are complete and construction is in progress on many of them. Upon arrival in Rialto, the reclaimed water system construction has been "complete" for several years; however the system was not operable due to design defects and lack of regulatory permitting. The lack of functionality also prevented the City from Collecting $1.2 million in grant funds from CalTrans, the project sponsor. Upon arrival in Rialto,the reclaimed water system was identified as a top priority and the necessary design deficiencies were corrected and the electrical control system was completely replaced and critical plumbing modifications were made. Permits were acquired through the RWQCB and the California DHS. The system was then placed into active service irrigating along the I-10 Freeway in the Cities of Colton,Rialto, Fontana and Bloomington. CalTmns invoices were prepared and the project has been paid in full. Since arriving in Rialto have been the City s perchlorate program manager providing various forms of technical,legal,and water supply support for the City of Rialto and their outside attorneys. The City is leading the charge on one of the Nation's largest groundwater pollution cases (estimated value in the case is in excess of$15o million). The case names 42 potentially responsible parties for damages resulting from a perchlorate plume that is ten miles long and impacts 5o%of the City's water supply. The City is completely dependent on its groundwater resources and has had to do many things in response to the water supply emergency that the perchlorate has caused,including:installation of ion exchange treatment systems on some wells; lobbying congress for federal financial support; worrying closely with water right attorneys to find replacement water otitside the Rialto-Colton Basin; and making plans to expand the reclaimed water system as an alternative water supply. Orange County Water District . Fountain Valley,California WF-2r Plant Operator Operated all plant systems and equipment over a 5 year Period. Responsibilities included operations and process optimization for all plant equipment and operating units including influent pump station, chemical clarifier, ammonia stripping, recarbonation, multi-media filtration, carbon adsorption, reverse osmosis, chlorination, barrier injection,lime recalcification,carbon regeneration,acid transfer and handling. EXHIBIT "B" WILLIAM T. HUNT Vice President Orange County Water Distrlct + Fountain Valley,California Water Treatment Technology Research Senior operator in OCWD's research department for a two year period. Responsible for all aspects of set-up and operation of various pilot scale treatment systems and technologies. Scope of work included the establishment of operating parameters, testing protocols, and reporting_ Research studied the effectiveness of water treatment systems at various flow rates, pressures, chemical feeds, and cleaning cycles to name a few. The technologies studied included membrane processes, electro dialysis,ion exchange,filtration systems,GAC systems,ozone and other advanced oxidation systems. Research also included a long term virus study and other shorter term vendor supplied technology evaluations. Industrial Environmental Services Slack&Veatch Over a two year period,Mr.Hunt served as the National Director of Industrial Environmental Services for Black& Veatch, one of the world's largest water treatment and power engineering firms. In that capacity, Mr. hunt provided senior oversight and strategic consulting services on a wide variety of projects. His experience includes work on water and wastewater treatment for industries such as the micraelectronics,pharmaceuticals,oil refining, food processing, aerospace manufacturing and many others. He was also involved in other consulting services including those related to water resources, storm water pollution, industrial power distribution, and anti terrorism security for water treatment facilities. TRC-Alton Geoscience,Inc— Irvine,CA xza person, venture-backed,full-service environmental consulting and engineering firm operating from five California office locations. 1996 - 20oo, President&CEO. Assumed CEO position during period of stagnant growth and break-even profitability. Developed a turnaround strategy based on: Revenue increases;Reduction in overhead and operating costs; Increase in cash flows and working capital; Increase in utilization and efficiency; Elimination or modification of underperforming operations; Retention of key account managers and customers; Recruitment of market leaders; Diversification of business services and customer base. 1990 — 1996 Vice President of Operations-Managed growth of operations from$5 million to$17 million in a 3-year period,with a concurrent staff growth.from 5o to 200 personnel over a 2-year period- Maintained significant industry network to facilitate recruitment of technical professionals and to stay abreast of new business opportunities; Mentor to mid-level management staff; Represented industry as expert witness in litigation involving subsurface contamination of soil and groundwater;Managed operations in five west coast cities;Managed the downsizing of operations during widespread industry slump (1993). 1985 — 1900 Project Manager - Managed or supervised several hundred projects, involving subsurface contamination of soil and groundwater; Published and presented technical papers at national conferences. EXHIBIT UB11