REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Scott M. Haberle, Fire Chief
PREPARED BY: Janice Van Mullem, Fire Marshal Bonnie To, Principal Management Analyst
Subject:
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Approve and authorize execution of a contract between Tank Farm, LC and the City of Huntington Beach for the Miley-Keck Tank Farm lease
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Statement of Issue:
The current lease agreement with Tank Farm, LC has a ten-year period that is about to expire. The City is undergoing the oil well abandonment and lease restoration process, which requires a continuation of the Miley-Keck Tank Farm lease. Therefore, the Fire Department is requesting a month-to month extension contract for up to 12-months to the current Tank Farm, LC contract.
Financial Impact:
The 12-month cost of $89,790 would be absorbed by the Fire Department’s operating budget and no additional appropriations are required.
Recommended Action:
recommendation
Approve and authorize Mayor and City Clerk to execute a contract between Tank Farm, LC and the City of Huntington Beach for the Miley-Keck Tank Farm lease.
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Alternative Action(s):
Do not approve and direct staff accordingly.
Analysis:
In February 2024, City Council approved contracts related to the oil well abandonment and lease restoration project. The City is undergoing the oil well abandonment and lease restoration process and is not yet complete. Therefore, a continuation of the Miley-Keck Tank Farm lease is required.
The current lease agreement with Tank Farm, LC has a ten-year period that is about to expire. Therefore, the Fire Department is requesting a month-to month extension contract for up to 12-months to the current Tank Farm, LC contract. The 12-month cost of $89,790 will be absorbed by the Fire Department’s operating budget. The cost is $7,482.42 per month for up to 12 months. Staff is requesting for approval and authorization to execute a contract with Tank Farm, LC and the City of Huntington Beach for the Miley-Keck Tank Farm lease.
Environmental Status:
The requested action to approve a contract award for well abandonment and lease restoration is not
subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for
resulting in physical change to the environment, directly or indirectly. Furthermore, since the
proposed well abandonment and lease restoration activities are considered ministerial, the project for
which the contract is being awarded, is statutorily exempt from CEQA in accordance with Section
15268 of the CEQA Guidelines. The awarded contractor will obtain permits from the California
Geologic Energy Management Division (Cal-GEM) consistent with applicable requirements.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan
Attachment(s):
1. Agreement with Tank Farm, LC