REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
PREPARED BY: Jennifer Carey, Deputy City Manager
Subject:
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Approve and Authorize Execution of Amendment No. 3 with Excalibur Well Services, Corp.; Approve Additional Funding and Appropriation of Funds for Well #3 of the Civic Center Oil Well Abandonment Project
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Statement of Issue:
The Huntington Beach Fire Department (HBFD) and the Public Works Department have been working on the abandonment of three oil wells at the Civic Center. While work on wells #1 and 2 two is nearly complete, additional funding and work is needed to complete well #3. To ensure timely and cost-effective project completion, the City met with the contractor, Excalibur Well Services, Corp. (Excalibur), to determine an "all-in" project completion cost not to exceed $1,150,000, meaning any cost over the $1,150,000 will be the responsibility of Excalibur. As part of the $1,150,000 all-in cost, Excalibur agreed to waive approximately $400,000 in equipment and standby charges. This cost is inclusive of Excalibur's subcontractor oversight and ongoing compliance with CalGEM and the City's Fire Department. In the event the project is completed under $1,150,000, the City and Excalibur will split the savings.
Financial Impact:
Staff is requesting an appropriation of up to $1,150,000 in HB Recovery Funds to Oil Well Abandonment business unit 31465001.82800. Sufficient funds are available in the Infrastructure Fund to cover this cost.
Recommended Action:
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A) Authorize Mayor & City Clerk to execute, "Amendment 3 to Service Agreement Between the City of Huntington Beach and Excalibur Well Services, Corp. for Civic Center Well Abandonment" in an all-in amount not to exceed $1,150,000 for full project completion as outlined.
B) Approve an appropriation and transfer of $1,150,000 in HB Recovery Funds to Oil Well Abandonment business unit 31465...
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