Item 21 - PFAS Treatment System at Well 38

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2629/022499-0087 14979764.1 a08/02/21 Well #38 PFAS AGREEMENT This Well #38 PFAS AGREEMENT (the “Agreement”) is effective on __________________ (“Effective Date”) and is between the ORANGE COUNTY WATER DISTRICT, a special governmental district organized and existing pursuant to the Orange County Water District Act, Chapter 924, Statutes of 1933, as amended (“OCWD”) on the one hand, and the City of Santa Ana (“City”) on the other. OCWD and City are each a “Party” and collectively “Parties” to this Agreement. A.OCWD manages the Orange County Groundwater Basin (“Basin”) in northern and central Orange County in order to support a variety of beneficial uses, including potable and non- potable water supply. Much of the potable water supply currently used within northern and central Orange County is pumped groundwater for use by persons and cities within OCWD’s service area. Inasmuch as Orange County is located in a semi-arid area, it is essential that all reasonable efforts be put forth by OCWD and City to protect the quality and quantity of groundwater supplies within OCWD’s boundaries. B.City operates a public water system for the purpose of delivering potable water. City obtains a portion of its water supply by pumping groundwater from Water Producing Facilities within the Basin. C.A group of man-made substances known as per- and polyfluoroalkyl substances (“PFAS”) has been used in numerous consumer and industrial products since the 1940s. Recent testing in the Basin has revealed that numerous groundwater wells that are sources of drinking water in the Basin are impacted by PFAS. PFAS compounds create a unique groundwater contamination issue that impacts many cities. Without any action, PFAS-impacted groundwater may migrate, affecting other Water Producing Facilities and larger portions of the Basin. D.OCWD and City have entered into a PFAS Treatment Facilities and Program Agreement (“Original Agreement”) in April 2019. The Original Agreement provides for OCWD to design and construct PFAS treatment systems for City wells that have detections of PFAS at or above 80% of an applicable State of California Division of Drinking Water (“DDW”) Response Level (“RL”) or State of California or Federal Maximum Contaminant Level (“MCL”) (“OCWD Program”). Under the OCWD Program, OCWD will also pay for 50% of the Operation and Maintenance cost of the PFAS systems up to $75/acre-foot. City currently has four wells in the OCWD Program. E.The City has a Well #38 that currently has perfluorooctanoic acid (“PFOA”) groundwater concentrations of approximately 6 to 7 parts per trillion (ppt) which is below 80% of the current PFOA 10 ppt RL which makes Well #38 ineligible for the OCWD Program. However, the Well #38 PFOA and perfluorooctane sulfonic acid (“PFOS”) groundwater concentrations are above their respective State of California Notification Levels (“NL”) of 5.1 and 6.5 ppt, which has led the City to discontinue operating the well. F.In November 2019, the State of California Office of Environmental Health Hazard Assessment began the process of developing drinking water Public Health Goals (“PHGs”) EXHIBIT 2