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Del Monte F06*,— Research Center 205 North Wiget Lane (94598-2458) P.O. Box 9004 Walnut Creek,CA 94598-0904 Telephone: (510)944-7300 FAX: (510)945-7453 Overnight Delivery February 5, 1999 Jim Munch UST Cleanup Fund 2014 "T" Street, Suite 130 Sacramento, CA 95814 Subject: Waiver Request from Three-Bid Requirement in Cost Pre-approval Request— Stockton Disco Site, Claim #2612 Dear Mr. Munch: Enclosed is the cost pre-approval request you and I discussed on the phone February 2. Del Monte's request was denied for lack of three bids. This is to provide the background to explain our submittal of only one bid, and to request a waiver from the three-bid requirement. In the late 1980s, Del Monte started using CH2M Hill as our technical consultant for UST site remediation work. We had eight UST sites where technical assistance was needed, and CH2M Hill was selected as our consultant for all sites in order to have a single uniform UST program. At this Disco site, tanks were removed, contaminated soil was removed and aerated until the petroleum hydrocarbon content was below the required level at the time, and the soil was placed back from where it was removed. All work was completed with the approval of the San Joaquin County Public Health Service(PHS). A few years later, PHS required more detailed site investigation. Gasoline residuals were found in the soil and groundwater. The site was investigated, monitoring wells were installed, and a SVE treatment system (internal combustion engine)was approved, installed and operated for approximately one year. During a switch from the internal combustion engine to an activated carbon treatment system, the groundwater rose to above the screened levels in the monitoring wells, forcing the shutdown of the treatment system. About the same time, the groundwater flow direction changed, resulting in no monitoring wells down gradient of the plume. PHS is now requiring additional soil borings (and future monitoring wells) to better define the vertical and horizontal extent of contamination. Since CH2M Hill has been our technical consultant throughout these activities, we only requested a bid from them for this next round of soil borings and analyses. Del Monte agreed to consider paying any difference between what the Fund might establish as "reasonable costs" for the work to be performed and the CH2M Hill bid, if the Fund determined that the bid exceeds the "reasonable costs".