REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, Acting City Manager
VIA: Scott M. Haberle, Fire Chief
PREPARED BY: Janice Van Mullem, Fire Marshal
Subject:
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Approve and authorize the execution of Amendment No. 2 to Professional Services Contract between the City of Huntington Beach and Walker Engineering, Inc. for Project Management Services for Oil Well Abandonment
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Statement of Issue:
The project for abandonment includes technical oversight of the abandonment contractors, site remediation, and renovation of the Miley Keck Tank Farm. The Scope of Work is found in Attachment 1, Exhibit A.
Funds for this contract have been exhausted. Due to extensive consulting support which was not anticipated in July, August and September, the fund limit was met earlier than expected. Because the well abandonment work will continue into 2025, we request extending the contract one year to December 31, 2025.
Financial Impact:
Original contract was for services between January 21, 2022 and January 2, 2025. The contract capacity was set at $50,400. In July 2024, the capacity was increased to $75,400 to meet the demands of the project.
Between October 1, 2023 and December 31, 2025, the additional contract amount is $62,100 ($54,000 plus 15% contingency) for a total of $137,500. There are sufficient funds available in the FY 2024/25 Fire Department operating budget to cover anticipated purchase order costs for the remainder of the fiscal year.
Recommended Action:
recommendation
Approve and authorize the Mayor and City Clerk to execute “Amendment No. 2 to Agreement between the City of Huntington Beach and Walker Engineering Inc. for Project Management Services for Oil Well Abandonment.”
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Alternative Action(s):
Do not approve, and direct staff accordingly.
Analysis:
The City decided to pursue abandonment of the three wells at the Civic Center, including closure of the well sites, pipelines, and tank farm. Walker Engineering, Inc. was selected to provide oversight services (Attachment 1).
Based on knowledge of the wells, the Huntington Beach Fire Department, Public Works, and Walker Engineering, Inc. expected to have no major issues with the abandonment of Well #2. Well #2 was selected as the first well to abandon. During the abandonment process, the abandonment contract (Excalibur) ran into areas where CalGEM records differed from the City’s records of work performed on the well. In addition, Miley Keck Tank Farm remediation project experienced unanticipated high levels of contamination on the first attempt to remove soil from within the tank farm area. Due to these unforeseen issues, the timeline and amount of work expanded beyond the original scope. Walker Engineering, Inc. was selected to perform oversight duties and work closely with Public Works and other project vendors to make sure the City’s best interests were taken into account.
The City will continue to leverage Walker Engineering, Inc’s expertise with oil well operations and abandonment processes to ensure that work is carried out as required by the City and that City personnel receive specialized advice on matters that are beyond the scope of City staff experience and knowledge.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Walker Engineering, Inc. Agreement
2. Walker Engineering Inc. Amendment No. 1
3. Walker Engineering, Inc. Amendment No. 2
4. Proposed Quote from Walker Engineering, Inc.