Report to Mayor and City Council
Tuesday, February 20, 2018
Consent
SUBJECT:
Title
CONSIDER CONSULTING SERVICES AGREEMENT WITH MRS ENVIRONMENTAL, INC. TO PROVIDE PETROLEUM ADMINISTRATOR SERVICES FOR A NOT-TO-EXCEED AMOUNT OF $529,014.00 FOR A THREE-YEAR PERIOD (CITY COUNCIL)
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I. SUMMARY
On January 3, 2017, the City sent an RFP to six consulting firms, inviting them to submit proposals to provide Petroleum Administrator (PA) services to the City. The only proposal the City received was from MRS Environmental, Inc. who assisted the City in preparing the City’s Oil and Gas Code (Code) adopted by the City Council on April 5, 2016. The Code included provision to appoint a PA to oversee its implementation. The PA will be responsible for all aspects of code compliance as detailed in the Carson Municipal Code. Currently, there are no pending or planned oil and gas projects within the City of Carson. The PA duties would be composed primarily of assisting the City of Carson with ensuring code compliance by the existing oil and gas operators and by developing easy to use implementation procedures.
II. RECOMMENDATION
Recommendation
AWARD a consulting services contract in the amount of $529,014.00 including contingencies to MRS Environmental, Inc. for a three-year period.
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III. ALTERNATIVES
NONE
IV. BACKGROUND
Petroleum Administrator Qualifications
The Code provides the following definition for the PA:
"Petroleum Administrator" (PA) is the City’s administrative official having the responsibility for the enforcement of this ordinance. To carry out duties, the Petroleum Administrator may use designated assistants, inspectors and deputies subject to approval of the City Manager. The Petroleum Administrator is authorized and directed to enforce the provisions of this ordinance and the codes adopted by reference herein. The Petroleum Administrator shall operate under the direction of the City Manager. The RFP (Exhibit No. 2) required the PA to have expertise in the following areas:
• DOGGR Requirements
• Conditional Use Permits and Development Agreements
• Setback Determinations
• Consolidation and Relocation Determinations
• Lighting Assessments
• Landscaping and Aesthetic Issues
• Earthquake Monitoring
• Tank Monitoring
• Safety Audits
• Hazardous Materials Storage and Transportation
• Environmental Quality Assurance Programs
• Air Quality and Odors Analysis
• Construction Storm Water Pollution Prevention Plans
• Groundwater Assessments
• Noise Assessments
• Pipeline Leak Detection Systems.
The RFP required the proposed PA to be able to meet certain criteria, and demonstrate certain skills and abilities:
• Ability to prepare a Procedures Manual to implement the Code and identify the additional necessary tasks the City needs to take to implement the Code.
• Demonstrate an ability to communicate, cooperate and team with City staff and other City consultants as necessary.
• Demonstrate communication and recordkeeping measures needed to ensure compliance with the code requirements for all existing and proposed facilities.
• Provide strong emphasis on working in an efficient manner with oil and gas companies and community groups and concerned citizens, while ensuring compliance with the code requirements, maintaining quality, meeting schedules and staying within budget.
• Demonstrate ability to audit and conduct monitoring activities for oil and gas facilities.
The Selection Process
Staff conducted research of firms qualified to perform the PA duties including the list of consultants available through DOGGR. The RFP was sent to the following six consultants:
1. David Dalmann, Production & Abandonments
2. R.Y. Salisbury Consultants
3. MRS Environmental, Inc.
4. El Capitan Environmental, Al Maurad, PE
5. Braymer Petroleum Contractors, Dean Braymer
6. William L. Meagher Land Surveyor
MRS was the only firm who submitted a proposal (Exhibit No. 1). This is a very highly specialized area and it is understandable that MRS was the only firm who proposed on the RFP. MRS is intimately familiar with the Code since they were directly involved in developing it; they are also familiar with Carson’s oil fields and oil operators. In addition, MRS provides CEQA services for development projects including those related to oil; therefore, they are familiar with the environmental impacts of oil operations. MRS has demonstrated that they are capable of carrying out the responsibilities of the PA under the direction of the City Manager.
Scope of Work
The following are the major tasks that will be completed by MRS::
1. Development and implementation of a Procedures Manual;
2. Outreach, communication and meetings with the City and stakeholders, including existing oil and gas operators and community groups;
3. Review of compliance plans including the Transportation Risk Management and Prevention Program, the Environmental Quality Assurance Program, and others as applicable;
4. Annual reporting to staff and City Council;
5. Emergency field monitoring;
6. Periodic inspections of facilities/audits;
7. Review of conditional use permit applications and CEQA review.
Project Manager
Greg Chittick and Luis Perez were involved in the development of the City’s Code. They both will be directly involved with PA functions along with other MRS staff.
Budget
The following is the schedule of compensation for MRS:
|
First Year: Initial Costs |
Cost |
Contingency % |
Contingency $ |
Total Cost with Contingency |
|
Good Neighbor Provision Certifications |
|
|
|
|
|
Development of Procedures Manual |
$3,995 |
20% |
$799 |
$4,794 |
|
Review of Facility Good Neighbor Compliance |
$22,640 |
20% |
$4,528 |
$27,168 |
|
Emergency Field Monitoring |
$6,923 |
30% |
$2,077 |
$8,999 |
|
Inspection of Facilities/Audits |
$20,910 |
10% |
$2,091 |
$23,001 |
|
Reporting to the City |
$12,862 |
10% |
$1,286 |
$14,148 |
|
Meetings with Operators, Public, Staff, City Council |
$17,398 |
10% |
$1,740 |
$19,137 |
|
Subtotal |
$84,727 |
|
|
$97,248 |
|
|
|
|
|
|
|
New Project CUP and CEQA Review |
|
|
|
|
|
CUP Development |
$50,000 |
10% |
$5,000 |
$55,000 |
|
CEQA Review |
$250,000 |
10% |
$25,000 |
$275,000 |
|
Total |
$384,727 |
|
$42,521 |
$427,248 |
|
Ongoing Annual Costs |
Cost |
Contingency % |
Contingency $ |
Total Cost with Contingency |
|
Good Neighbor Provision Certifications |
$6,659 |
20 |
$1,332 |
$7,991 |
|
Emergency Field Monitoring |
$6,923 |
30 |
$2,077 |
$8,999 |
|
Inspection of Facilities/Audits |
$15,683 |
10 |
$1,568 |
$17,251 |
|
Reporting to the City |
$6,431 |
10 |
$643 |
$7,074 |
|
Meetings with Operators, Public, Staff, City Council |
$8,699 |
10 |
$870 |
$9,569 |
|
Total (annual) |
$44,394 |
|
$6,490 |
$50,883 |
|
Total 3 Year Term |
$473,514 |
|
$55,500 |
$529,014 |
V. FISCAL IMPACT
No fiscal impact is anticipated to the City’s General Fund. The entire cost of the contract will be paid by current operators and possible future operators of new wells through application deposits. The not-to-exceed amount of the contract is $529,014 spread over three years. The majority of the contract amount ($330,000) is only realized if new operators file for permits for new wells. The remainder of the contract ($199,014) will be spread over three years and will also be paid through application deposits from applicants:
• First year $97,248
• Second year $50,883
• Third year $50,883
All above amounts are based on unit prices for certain tasks, but include contingency amounts in case the specific cases are more complex than anticipated. Those amounts are shown on the previous page.
VI. EXHIBITS
1. Consulting Services Agreement Dated February 20, 2018 (pgs. 6-38)
2. Request for Proposal (pgs. 39-45)
Prepared by: Saied Naaseh, Planning Manager