Polluted properties for sale during alleged data-fixing
Will Harper, Berkeley Voice, July 25, 1996

Two polluted Berkeley properties around the time a former company employee allegedly falsified lab data on soil and groundwater contamination, a county inspector's report says. The altered data made it look like former service station sites at 1285 Eastshore Highway and 1101 University Avenue, both contaminated by underground gas leaks, were cleaner than they really were when they were sold four years ago.

County investigators say Nancy Vukelich, a former Chevron remediation project manager, altered lab results in order to persuade local regulators to expedite "closure" of the sites -- a decision that no further cleanup is required.

"The false information allowed for the sale and redevelopment of two properties in the City of Berkeley and the near sell of (a third property) in San Lorenzo," Deputy District Attorney John Samuedson said in an 11-page report.

The University Avenue property, on the north east corner of San Pablo Avenue, now supports a new minim retail mall that includes Blockbuster Video. C & H Development Co. of Lafayette says it bought the land from Chevron for approximately $300,000 in 1992 and county property records indicate the company has since pumped in more than $1 million toward developing the site.

Basil Cristopolous, co-owner of C &H, said the more favorable data didn't raise the initial purchase price of the property. He said C & H knew the property required more cleanup and noted that Chevron was still responsible for remediating the site to comply with local and state environmental laws. "From our perspective, it really doesn't affect us," Cristopolous said. "The Nancy Vukelich thing is too bad (But) it wasn't clean when we bought it, and Chevron is still remediating it." Chevron installed a so-called vapor extraction system on the site to remove remaining underground pollutants. Cristopolous added that there also is an "impenetrable" vapor barrier protecting employees and customers.

The other Berkeley property at 1285 Eastshore Highway was sold to Joseph and Helen Garello of Napa in May 1992 for around $263,000, county property records indicate.

Vukelich faces 44 misdemeanor counts of falsifying lab reports prepared by outside environmental consultants over a three-year period from 1991-94, Those altered reports were submitted to city, county and state regulators. At this point investigators say that Vukelich, who left Chevron in March 1994, acted alone.

"Anything may happen," said Larry Blazer, a deputy district attorney in the consumer and environmental protection division. "(Vukelich) hasn't told us the extent of this. But we haven't seen anything suggesting that anyone else was involved"

Blazer said the financial motive for the company seemed limited because when polluted properties are purchased, buyers usually ask to be indemnified and Chevron would still be liable. County property records show C&H has such a deal on 1101 University Ave. and Blazer said the buyer of a San Lorenzo site handled by Vukelich was also indemnified.

City toxic waste regulators won't say how much more contaminated the sites are now, but will say the levels don't exceed current legal environmental standards. Chevron officials insist that the sites managed by Vukelich are safe despite there being a higher level of gas, benzene and other pollutants than previously believed. Chevron spokeswoman Bonnie Chaikand said she couldn't discuss the specifics of the case. Chaikand did say the company doesn't tolerate changing data for any reason.

"As soon as the discrepancies were noticed we immediately went through the proper notifications and brought it to the attention of the proper (government) agencies," Chaikand said. "I feel that speaks for itself,"

Chevron officials were questioned by county investigators last fall after the company disclosed there were discrepancies between consultants' data and reports Vukelich sent to regulators.

Mark Miller, the site remediation project manager who took over for Vukelich after she resigned, told a supervisor that he thought the reports were altered using cut and paste method.

The supervisor, John Randall, told investigators he didn't know why Vukelich would change the lab reports. He did say, according to a county investigator, that Chevron had a program where employees can get a pay raise, awards, gift certificates or up to $1,000 cash for good performance.

L A Wood, a local environmental watchdog who has closely followed the University Avenue site's cleanup, was skeptical whether such performance perks were enough to motivate Vukelich to break the law. Wood said Chevron had a clear financial motive to unload distressed properties. He said Chevron pushed city officials hard to allow the company to continue to clean up the property after it had been developed, instead of waiting until all the pollutants had been removed. "I can't imagine an employee doing this by themselves. There doesn't seem to be any benefit for her," Wood said.

Vukelich, who was arrested in Arizona earlier this month, agreed to be extradited to California last week, authorities said. The law gives California officials 30 days to bring Vukelich over state lines, an Arizona extradition official said. Neither Vukelich's Bay Area or Arizona attorneys returned phone calls from The Voice.