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: Bonnie To, Principal Management Analyst Patrick Bannon, Capital Projects Administrator
Subject:
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Approve and authorize execution of Amendment No. 1 to the American Integrated Services, Inc. agreement for the Miley Keck Tank Farm Lease Closure and approve an appropriation of $241,039
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Statement of Issue:
In February 2024, staff requested Council authorization to execute three (3) contracts related to the well abandonment and lease restoration project and approve an appropriation of $1,236,763 in HB Recovery Funds.
During the oil well abandonment process, additional costs have been identified in the amount of $209,599 plus 15% contingency of $31,440. This brings to total budget request to $241,039 for the Miley Keck Tank Farm Lease Closure. Therefore, staff is requesting City Council approval and authorization to amend the agreement with American Integrated Services, Inc. for the Miley Keck Tank Farm Lease Closure, and to approve an appropriation of $241,039 from HB Recovery Funds.
Financial Impact:
Staff is requesting an appropriation of $241,039 from HB Recovery Funds for the Miley Keck Tank Farm Lease Closure. Additional contingency funding may be needed in the future depending on the progress of the work related to the project.
Recommended Action:
recommendation
A) Approve and authorize Mayor and City Clerk to execute Amendment No. 1 to the American Integrated Services, Inc. agreement for the Miley Keck Tank Farm Lease Closure, in the amount of $149,599 plus a 15% contingency; and,
B) Approve an appropriation of $241,039 from HB Recovery Funds to the Oil Well Abandonment business unit 31465001.82800.
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Alternative Action(s):
Do not approve and direct staff accordingly.
Analysis:
As the oil well managers, the Fire Department prepared th...
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