REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
Eric McCoy, Fire Chief
PREPARED BY: Patrick Bannon, Capital Projects Supervisor
Subject:
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Civic Center Oil Well Abandonment Funding Request
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Statement of Issue:
The Civic Center Oil Well Abandonment Project has exceeded the initial time and cost proposal of Excalibur Wells Services Corp. (Excalibur), which estimated 49 rig days for the abandonment of three wells located on the Civic Center property. Staff is requesting additional funding to complete the abandonment/idle process for the Civic Center Oil Wells.
Financial Impact:
City Council has previously authorized the allocation of $2,913,236 in funds from the HB Recovery Fund to Business Unit 31465001 for the Civic Center Oil Well Abandonment Project.
The City Council is requested to approve an amount not to exceed $900,000 from HB Recovery Funds for the Civic Center Oil Well Abandonment Project (Business Unit 31465001).
Recommended Action:
recommendation
Authorize the City Manager to execute an amendment with Excalibur and appropriate funds not to exceed $900,000 for City Center oil well abandonment or idle process.
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Alternative Action(s):
Do not approve, and direct staff accordingly.
Analysis:
In February 2024, the City Council approved a contract with Excalibur Well Services, Corp. (Excalibur) for the abandonment of Civic Center Wells #1, #2, and #3. While abandonment work for Civic Center Wells #1 and #2 is relatively complete, additional work is required to complete Civic Center Well #3. Staff recommends providing the City Manager with authority to execute an amendment with Excalibur and appropriate necessary funds not to exceed $900,000 to complete remaining work.
Environmental Status:
This action 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.
Strategic Plan Goal:
Non Applicable - Administrative Item