HomeMy WebLinkAboutCarl Weaver - Weaver's Production Service - 1984-07-16 REQUEST FOR CITY COUNCIL A(DJ1
Date 3 u ly 16 , 1984
Submitted to: HONORABLE MAYOR AND CITY COUNCIL
Submitted by: CZ3ARLES W. THt?IvIPSON, CITY ADMTNI, FT* f' 'sY,GC7X GOiTieiC,.
Prepared by: RAYMOND C� PICARD, FIRE CHI
S.jbiezt: CIVIC CENTER OIL WELL #2 l�
Statement of Issue, Recomynendation,Analysis, Funding Source,Alternative Actions,Attachments.
The City's oil well. #2 has a collapsed casing at the 2,550 foot level
and because thiti, is a high producing costs effective well., immediate
action is required to redrill this well and bring it back into
production.
R7ECOMMENDAT ION:
Authorize the City Pdministrator to grant the attached contract to the
lowest responsible bidder for redril) ing of City well #2 as are urgency
project. Also, authorize the second attached contract for a petroleum
consultant to supervise the project at a cost not to exceed $7,500.
Also authorize the purchase of equipment and additional work as
determined by the petroleum consultant to be necessary to bring the
well back into production. Total cos' of project is estirratnd to not
exceed $275,000.
ANALYSIS;
On Wednesday, June 27,, 1984, Carl Weaver informed the Oil, Field
Inspect;-,-r, Tom Shaw, that the Civic Ce-_ter well „}2 had dropped
production. On Saturday, June 30, 1984, Atlantic Oil pulled the rods
and tubing from the well and found that the lower 1000 feet was
severely bent indicating �A possible casii:g collapse. Vurther studies
were ordered, i .e. ; bailing tests, impression block, :asing caliper log
and all results indicated a casing collapse at 2,550 feet, Propos'ed
course of acsi:�n, based on these results was to redrill the well from
2,500 feet to the oil zone at 4,1.00 feet.
Carl weaver was informally retained from the start of the problem as
the City consultant to order the appropriate equipment and manpower
necessary to handle the work to date. He has done all t'rie work on the
three City welly since the City took ownership an, supplied the C. t;y
with the expertise necessary to take steps toward putting Civic Center
#2 back into production. The City has also informally retained Renniak
Sampson,, an Engineer, to analyze test ;:esults and start tho permit
process with the Division of Oil and Gas to redrill the well.
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Regaest for City Council Action
Submitted by: Charles W. Thompson_, City Administrator
Prepared by: Raymond C. Picard, Fire Chief
d Subject: Civic Center oil Well #2
Page Two
The City has spent appr-ximately $10,000 for the w-l.r" that has been
done to date. Civic Center #2 produces approximately lu barrels of oil
per day which results in a net income of $400 per day. The decision is
to, as quic:I,.ly as possible, redrill the well to 4,100 I-eet, and to
acquire the necessary appurtenant equipment, at an estimated cost of
$250,000 plus a 10% contingency (Total $275,000) .
FUNDING SOURCE:
City`s Unappropriated General Fund
ALTERNATIVE ACTIONS:
1. Abandon the well.
2. Do not proceed as an urgency measure, formal bid the project and
resubmit the project to the City Counci_,
EXPENSES TO DATE ON CIVIC CENTER OIL WELL #2
JTTLY 16, 1984
June 30, 1984 Atlantic Pulling Company - 10 hours = 1,546.00
Cavins Bailer and IB Block 200.00
Weaver Supervision 150.00
July 5, 1984 Well Tech Inc. 10-1/2 hours = 1,760.00
Dialog (Well Bore Calipers) 933.00
Weaver Supervision 150.00
Trucking old pipe and tubing etc. 400.00
Labor and material and vacum truck to
clean cellar, replace cellar board, tear
out old unit etc.
Vacum 300.00
United Service 450,00
Pulling total up to July 16, 1984 5,889.00
Material
Oil well pump repair 703.00
Clean pump 44.63
jearh Supply fittings 260.00
Gyroscopic test 2,777.00
Total $9,674.tt'
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Ask
CITY OF HUNTING TON BEACH
INTER-DEPARTMENT COMMUNICATION
HUNTINaON BEACH`
To CHARLES W. THOMPSON From ROBERT J. 1=RANZ, Chief
City Administrator Administrative Services
Subject APPROPRIATION FOR REDRILLING Bate JULY 13, 1984
OF CIVIC CENTER OIL. WELL #2
F.I.S. #85-1
As required under the authority of Resolution 4832, a Fiscal impact Statement
has been prepared and submitted by the Fire Department relative to the
redrilling of the City's Oil Well #2 to compensate for the casing collapse
malfunction:. Estimates are that an appropriation of $275,000 would be adequate
for this project.
An affirmative ' response by the City Council will reduce the _unaudited,
unencumbered balance of the City's unappropriated General Fund to $3,245,775.
If the City were to abandon the well instead of proceeding with the redrilling,
there would be revenue loss to the City of an est;matw_d $145,000 per year for
the life of the oil reserves.
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ROBERT J. FRA4-If/Ch i e
Administrativ Services `
RJF:AR':skd
JUL f 3 390,am
CITY OF HUNTjNGTON BEACH
fIDMjNIST ATIVE OFFcclr
J579j
FISCAL IMPACT STATEMENT
RED RILL CITY WELL #2
The Citv's oil well #2 has a collapsed casing at the 2,550 foot level and because this is a
high producing cost effective well, immediate action is required to redrill this well and
bring it back into production. This impact statement is being prepared in anticipLtion of
immediately proceeding to redrill well #2 located in the City Hall parking lot located at
2000 Main Street, Huntington Beach, CA.
The following is a series of statements pertaining to the physical impact of this project.
3. This item was not included in the budget until June 27, 1984. This well was
performing in a satisfactory manner and there was no indication that we were
going to have a possible well collapse.
2. The estimated direct cost of .he project will be approximately $275,000 if the
project proceeds as anticipated. Future year cost would only be of the
maintenance aspects of the project.
3. There are some indirect costs as if' relates to administrative processing and lost of
interest revenue due to the capitalization of this well, but the future return is of
such a substantial nature that the entire project is cost effective.
4. Future maintenance costs will be no different and are fully budgeted as per
operational expenses for the well when it was in prior production.
5. General City Administration will be handled by the Fire Chief and the Oil Field
Inspector. This III be a redirect on some of their normal time allocations, but
will be required to complete this project.
6. Funding source
a. Since this is a totally unanticipated project and non-budgeted, the entire
monies required to support the project wD1 need to come from the
"unappropriated fund balance-general fund",. There are no alternative funding
sources.
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REQUEST FOR CITY COUNCIL A IC-OT ON
Date July 16, 1984
� ,�
Submitted to: HONORABLE MAYOR AND CITY COUNCIL • Q
Submitted by: CHARLES W. THOMPSON, CITY ADMINI TRATQR
Prepared by: RAYMOND C. PICARD, FIRE CHI !
Subject: CIVIC CENTER OIr :'ELL 42
Statement of Issue, Recoinmendation,Analysis, Funding Source,Alternative Actions, Attachments:
ISSUE:
The City`s oil well #f2 has a collapsed casing at the 2,550 foot level
and bucause this is a high producing costs effective well, diat
action is required to redrill this well and bring it b, into
production.
RE:_OMIdENDATI ON:
Authorize the City Administrator to grant the attached contract to thF
lowest responsible bidder for redrilling of City well ;2 as an urgent'
project . Also, authorize the second attached contract for a petroleum
coi. iultant to supervise the project at a cast not to exceed $7,50:i.
Also authorize the purchase of equipment and additional work as
determined by the petroleum consultant to be necessary to bring tl.
well back into production. Total cost of project is estimated - o no,
exceed $275,000.
ANALYSIS:
an Wednesday, June 27, 1984, Carl Weaver informed the Oil Field
In_,>ector, Tom Shaw, that. the Civic Center well ,u-2 had droppe.,
production. On Saturday, June 30, 1984, Atlantic Oil pulled the rods
an,] tubing from the well and found that the lower 1000 feet wa3
severely bent indicating a possible casing collapse. Further studies
were ordered, i .e. ; bailing tests, impression block, casing caliper log
and all results indicated a casing collapse at 2,550 feet. Proposed
course of action based on these results was to redrill the well from
2,500 feet to the oil zone at 4,100 feet.
Carl Weaver was informally retained from the start of the problem as
the City consultant to order the appropriate equipment and manpower
necessary to handle the work to date. He has clone all the work on the
three City wells since the City took ownership and supplied the City
with the expertise necessary to take steps toward putting Civic Center
#2 back into production, The City has also informally retained P,enn;iok
Sampson, an Engineer, to analyze test results and start the permit
process with the Division of Oil and Gas to redrill the well .
PIQ 4/81
AM
Request for City Council Action
Submitted by: Charles W. Thompson, City Administrator
Prepared " N- Raymond C. Picard, Fire Chief
Subject: Civic Center Oil Well #2
Page Two
The City has spent approximately $10,000 for the work that has been
dune to date. Civic Center #2 produces approximately 18 barrels of oil
per day which results in a net income of $400 per day. The decision is
to, as quickly as possible, redrill the well to 4,100 feet, and to
acquire the necessary 4ppurtenant equipment, at an estimated cost of
$250,000 plus a 10% contingency (Total $275:000) .
FUNDING SOURCE:
C'ity's Unappropriated General Fund
ALTERNATIVE ACTIONS:
1 . Abandon the well.
2. Do not proceed as .4n urgency measure, formal bid the project and
resubmit the project to the City Council.
CONTRACTOR agrees to furnish all said services and
material contemplated and embraced in this agreement, and assume
all loss and damage arising out of the nature of the afsresaid
work during its progress or prior to acceptance from the action of
the elements, and from any foreseen or unforseen difficulties
which may arise or be encountered in the prosecution of work and
for all other risks of any description connected with the work,
and to pay all expenses incurred by or in consequence of the
suspension or discogtinuance of work, except such as are expressly
stipulated to be borne by CITY.
2. ACCEPTANCE OF CONDITIONS OF WORK, SPECIFICATIONS
CONTRACTOR acknowlecges that he is fully familiar
with all the terms, conditions and obligations of the Contract,
the location of the job site, and the conditions under which the
work is to be performed, and that he enters into this contract
based upon his investigation of all such matteis and is no way
re3ying upon any opinions or representations of CITY.
3 . COMMENCEMENT OF PROJECT
CONTRACTOR agrees to commence the project within ten
(10) working days after notice to proceed is issued and shall
diligently pr.osecutc it to the completion within thirty (30)
calendar days from the execution of this contract by CITY,
excluding delays provided for in Section 9 herein.
4. TIME OF THE ESSENCE
Time i4 of the essebce on this contract. CONTRACTOR
shall coordinate the work covered by this contract with that of
all other contractors, subcontractors an of the CITY, in a manner
that will facilitate the efficient completion of the project and
in accordance with Section 3 herein. CITY shall have complete
control of the premises on which the work is to be performed and
shall have the, right to decide the time or order in which the
various portions of the work shall be installed or the priority of
the work of other subcontractors and, in general., all matters
representing the timely and orderly conduct of the work of
CONTRACTOR on the premises.
5. NOTICE TO PROCEED
No work, services, material, or equipment shall be
performed or furnished under this agreement unless and until a
notice to proceed has been given to the CONTRACTOR by CITY. CITY
does not warrant that the work site will be available on the date
the No4it,: to Proceed is issued. In event of a delay in
commencement due to such unavailabi�.ity, relief to the CONTRACTOR
shall be limited to a time extension equal to the delay due to
such availability.
6. BONDS
CONTRACTOR shall, prior to entering upon the
performance of this contract, furnish, the following bonds approved
by the City Attorney: one in the amount of one hundred percent
(1000) of the contract price to guarantee the COSTRACTOR'S
faithful performance of the work and to warrant such performance
for a period of one (1) year after CITY'S acceptance therefor, and
one in the amount of fifty percent (50) of the contract price to
guarantee payment of all claims for labor and materials furnished.
7. WARP.ANTIE5
CONTRACTOR unconditionally guarantees all work done
under +his agreement including, but not limited to, any
workmanship, installation, fabricFtion, material or structural
facilities crastructed, CONTRACTOR, within ten (10) days after
notice by CITY of any defect in the work, shall have the option to
make appropriate repairs or replace the defective item or items.
Upon expiration of such ten (10) day .period, CITY may then make
appropriate repair or ,replacement at CONTRACTOR'S risk and expense.
8. INDEPENDENT CONTRACTOR
It is further understood and agreed that the
CONTRACTOR is, and shall be, acting at all times as *an independent
contractor, herein., and not as an employee of CITY. CONTRACTOR
shall secure, at its expense, and be responGible for any and all
payment of inccme tax, social security, state disability insurance
compensation, unemployment compensation and other payroll
deductions for CONTRACTOR and its officers, agents and employees,
and all business licenses, if any, in connection with the services
to be performed hereunder.
3. LIQUIDATED DAWLGES, DELAYS
It is agreed by the parties hereto that in case the
total work called for hereunder in all* parts and requirements is
not finished or corppleted within the number of cal°,r.day days as
set forth in paragraph 3 herein, damages will be sustained by
CITY; and that it is, and Will be, impractical and extremely
difficult to ascertain and determine the actual dama5e which CITY
will sustain .in the event of, and by reason of, ,such delay; and it
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is, therefore, agreed that CONTRACTOR will pay to CITY the sum of
three hundred dollars ($300) per day for each and every calendar
day's delay in finishing the wok in excess of the number of days
prescribed; and CONTRACTOR agrees to pay said damages herein
provided for, and further agrees that CITY may deduct the amount
thereof from any monies due or that may become due to CONTRACTOR
hereunder.
CONTRACTOR will be granted an extension of time and
will not be assessed with damages for any portion of the delay in
completion of the work due to unforseeable causes beyond the
control and without the fault or negligence of CONTRACTOR,
including, but not restricted to, acts of God or of the publi^
enemy, fire, floods, epidemics, quarantine restrictions, strikes
and unsuitable weather or delays of subcontractors due to such
causes .
CONTRACTOR, shall within fifteen (15) days from the
heginning of any such delay (unless -CITY shall grant a further
period of time prior to the date of final settlement of the
contract) , notify the CITY in writing of the cause of the delay,
and CITY shall extend the time for completing the work if in its
judgment the findings of fact thereon justify the delay, and its
decision is conclusive on the parties hereto.
Should CONTRACTOR be delayed in the prosecution or
completion of the work by the act, neglect or default of CITY, o:
should CONTRACTOR be delayed waiting for materials, if said
materials are required by the contract to be furnished by CITY', or
by damage caused by fire or other casualty for which CONTRACTOR is
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not responsib-t. , or by the combined action of the workmen, in
nowise caused by or resulting from default or collusion on the
part of CONTRACTOR, in the event of a lockout by CITY, then the
time herein fixed for the completion of the work sha71 be extended
the number of days the CONTRACTOR has thus been delayed, but no
allowance or extension shall be made unless a claim therefor is
presented in writing to CIi'Y within fifteen (15) days of the
commencement of such delay.
No claims for additional compensation or damages, for
delays, irrespective of the cause thereof and including without
limitation, the furnishing of material by CITY, or delays by other
contractors, subcontractors of CITY will be allowed and vaid
extension of time for the completion shall be the sole remedy of
CONTRACTOR.
10, DIFFERING SITE CONDITIONS
(1) Notice The CONTRACTOR shall promptly, and
before such conditions are disturbed, notify the CITY in writing
of:
(a) subsurface or latent physical conditions
at site differing materially from those indicated in this
agreement; or
(b) unknown physical conditions at the site
of an unusual nature differing materially from those ordinarily
encountered and generally recognized as inherent in work of the
character provided for in this agreement. The CITY shall promptly
investigate the conditions; and if it 'rinds that such conditions
do materially so differ and cause an increase or decrease in; the
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time required for performance of any part of the wor., under this
agreement whether or not changed as a result of such conditions,
an equitable adjustment shall be made and the agreement modified
in writing accordingly.
(2) Time 9xtension No claim of the CONTRACTOR under this
clause shall be allowed unless the CONTRACTOR has giver, the notice
required in this clause, provided, however, the time prescribed
therefor may be extended by -TY.
11. COMPENSATION
CITY agrees to pay and CONTRACTOR agrees to accept as
full compensation for the faithful performance of this contract,
the sum of ($ ) , An
advance payment of shall be payable prior to
commencement of redrilling. The remainder of the Contract price
shall be payable thirty-five (35) days after completion of
drilling.
12. AFFIDAVITS OF SATISF,AC{ION OF CLAIMS
After the completion of the work contemplated by this
contract, CONTRACTOR shall file with the CITY its affidavit
stating that all workmen and persons employed, all firms supplying
materials, and all subcontractors upon. PROJECT have been paid in
full, and that there are no claims outstanding against PROJECT for
either labor or material, except certain items, if any, to be sit
forth in an affidavit covering di5pu`ed claims, or items in
connection with Notices to Withhold which have been, filed under
the provisions of the statutes of the State of Caiifornia.
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13 . WAIVER OF CLAIMS
The acceptance by CONTRACTOR of the final payment
shall. constitute a waiver of all claims against CITY under or
arising out of this contract.
14, INDEMNIFICATTON, HOLD HARMLESS, DEFENSE
CONTRACTOR agrees to protect, defend, indemnify and
hold and save harmless CITY, its officers, agents and employees
against any and all liability, clain.s, judgments, costs and
demands including deeth or injury to CONTRACTOR' S employees, and
damage to property, arising directly or indirectly out of the
obligations herein undertaken by CONTRACTOR or out of the
operations conducted by CONTRACTOR, regardless of the active or
passive nature of any negligence by CITY, save and except those
which arise out of the sole negligence or willfull misconduct of
CITY. CONTRACTOR will defend any such suits at the sole cost and
expense of CONTRACTOR when requested by CITY, and any costs of
defenEe or attorney's fees incurred by CITY in enforcing this
obligation will be reimbursed to CITY or may be awarded to CITY by
a court of competent jurisdiction.
15. WORKERS' COMPENSATION
CONTRACTOR acknowledges and undertakes its duty under
the provisions of Section 3700 et seq. of the Labor .Code to insure
against liability for workers ' compensation and covenants to
comply with such provisions pr'or to commencing the performance of
the work hereunder,
CONTRACTOR shall maintain workers ' compensation
insurance and othexviise comply with all of the provisions of the
Workers ' Compensation and Safety Acts of the State of California,
the applicable prov;.sions of Divisions 4 and 5 of the California
Labor Code and all amendments thereto, and all similar State or
Federal acts or laws applicable and shall furnish to CITY a
certificate or workers ' compensation insurance evidencing such
compliance. The insurer shall furnish to CITY a certificate of
workers ' compensation insurance. The provider of insurance shall
not cancel or modify any such policy so provided without thirty
(30) days prior written notice to CITY.
CONTRACTOR shall , further require all subcontractors
to similarly provide such workers' compensation insurance for all
the subcontractors ' employees. CONTRACTOR shall furnish a
certificate of waiver of subrogation under the terms of the
worker's compensation insurance and CONTRACTOR shall similarly
require all subcontractors to waive subrogation.
CONTRACTOR'S workers ' compensation insurance shall be
in forms and underwritten by insurance companies satisfactory to
CITY. Said insurance shall remain in force until the work under
this contract is fully completed and accepted by CITY. Said
insurance shall not derogate from the provisions for
indemnification of CITY by CONTRACTOR under Section 14 of this
contract. CONTRACTOR shall, notwithstanding nor diminishing the
foregoing obligations, subscribe for and maintain in full force
and effect during the life of this contract a workers `
compensation liability policy in accordance with the Workers '
Compensation Acts of the State of California of not less than one
hundred thousand dollars ($100,000) .
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16. INSURANCE
CONTRACTOR shall at all times carry on all operations
hereunder , bodily injury and property damage liability insurance
including automotive bodily injury and property damage liability
insurance, in forms and underwritten by insurance companies
satisfactory tc CTTY for all operations, subcontract work,
contractual obligations, product or c--leted operation, ?11 owned
vehicles and non-owned vehicles . Said insurance coverage obtained
by the CONTRACTOR shall name the CITY, its officers, agents and
employees and all public agencies as determined by the City as
additional insureds on said policies. CONTRACTOR shall require
its insurer to waive its subrogation rights against CITY and
agrees to provide certificates evidencing the same.
Before CONTRACTOR performs any work at, or prepares
or delivers materials to the site of construction, CONTRACTOR
shall furnish to CITY certificates of insurance subject to
approval of the City Attorney evidencing the foregoing insurance
coverages and such certificates shall provide the name and policy
number of each car der and policy and that the insurance is in
force anO will not be cancelled without thirty (30) days written
notice to CITY. CONTRACTOR shall maintain all of the foregoing
insurance coverages in force until the work under this contract is
fully completed and accepted by CIM
The requirement for carrying the foregoing insurance
shall not derogate from the provisions for indemnification of
CITY by CONTRACTOR under Section 14 of this contract.
Notwithstanding or diminishing the obligations of CONTRACTOR with
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respect to the foregoing, CONTRACTOR shall subscribe for an
maintain in full force and effect during the life of this contract
the following instrance amounts of not less than three hundred
thousand dollars ($300.,000) combined single limit coverage for
Items A and B.
A. Bodily injury Liability and Automotive Bodily
Injury Liability (including non-ownership and
hared cars)
B. Property Damage Liability and Automotive
Property Damage Liability
The City Attorney shall at all times have the right
to demand the original or , a copy of all said policies of
insurance. CONTRACTOR shall pay the premiums on all insurance
hereinabove required.
17. DEFAU14T AND TERMINATION
If CONTRACTOR fails or refuses to prosecute t, e work
with diligence or fails to complete the work within the time
specified or is adjgdged a bankrupt or makes an assignment for the
benefit of creditors or becomes insolvent or violates any
provision of the Contract Documents, CITY may give notice in
writing of its intention to terminate the contract. Unless the
violation is cured within ten (10). days after said Notice. of
Intention has beers served on CONTRACTOR, CITY may terminate this
agreement upon the expiration of that time.
18. DISPOSITION OF PLANS, ESTIMA`12S AND OTHER DOCUMENTS
CONTRACTOR agrees that upon completion of the work to
be performed hereunder or upon earlier termination of this
agreement, all original drawings, reports, calculations, maps and
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other doc»:aents pertaining to said contract shall be delivered to
CITY and shall become its sole property at no further cost.
19. DISSATISFACTION WITH PERFORMANCE
In the event that CITY is dissatisfied with
perf—:manse of CONTRACTOR and the procedures for ta.rwination set
forte in Section. 17 are followed, CITY may elect to assume
complete control over PROJECT.
20. NON-ASSIGNABILITY
No assignment or delegation by the CONTRACTOR of this
contract or any part hereof or of funds to be received hereunder,
will be recognized by CITY unless such assignment or delegation
has prior written approval or consent of CITY and the surety.
2 . ATTORNEY'S FEES
If any action at law or in equity is necessary to
enforce or interpret the terms of this agreement, the prevailing
party shall be entitled to reasonable attorneys fees, costs and
necessary disburs-ements in addition to any other relief to which
he may be entitled. If any action is brought against CONTRACTOR
or any subcontractor to enforce a Stop Notice or Notice to
Withhold which names CITY as a party to said action or by reason
of which CITY incurs expenses, CITY shall be entitled to
reasonable administrative and attorney's fees, costs• and necessary
disbursements arising out of the processing of Stop Notices or
Notices to Withhold or any similar legal document arising out of
the performance of this agreement. Said obligation shall be
provided for in the labor and materials payment bond required of
CONTRACTOR. In addition to the foregoing, CITY may charge an
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administrative fee of one hundred dollars (tIOJ) for every
Stop••Notice filed in excess of two, regardless of whether or not
CITY is named n an action. CITY may set off any ur;reimbursed
cost or expense so incurred against any sum or sums owed by CITY
to CONTRACTOR under this agreement.
22. CITY 0,1PLOYEES
CONTRACTOR shall employ no regular employee of CITY
in the work performed pursuant to this contract.
23 . NOTICE$
All nokicas concerning this agreement shall be in
writing and shall be either delivered personally or mailed,
postage prepaid, addressed to the party concerned as follows:
(REST OF PAGE NOT USED)
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TO CItY: TO CONTRACTOR:
Chief Raymond Picard
Huntington Beach Fire Dept..
2000 Blain Street
Huntington Beach, CA 92648
24. ENTIRETY
The foregoing represents the entire agreement between
the parties.
IN WITNESS tiJHEREOF, the parties hereto have caused this
Agreement to be executed by and through their authorized officers
the day, month and year first above written.
CONTRACTOR: CITY OF HUNTINGTON BEACH,
A municipal corporation
President Mayor
or Vi^e--President
Secretary Treasurer
ATTEST: APPROVED AS TO FORM:
ZiT y Clexh City Attorney
REVIEWED AND APPROVED: INITIATED AND APPROVED:
City Administrator Chief o Fire Department
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CONSULTANT AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH
AND C'AR L HAVER
FOR SUPERVISION F-3R REPAIRING OF CIVIC CENTER
OIL WELL NO. 2
THIS AGREEMENT is made and entered into this c20V1.47 day
of , 199 YE
, by and between the CITY OF
HUNTINGTON BEACH, a municipal corporation of the State of
California, hereinafter referred to as "CITY," and CARL WEAVER, an
individual, hereinafter referred to as "CONSULTANT."
WHEREAS, the CITY OF HUNTINGTON BEACH desire-, to engage the
services of a qualified person to supervise the repairing of the
CITY oil well designated as Civic Center No. 2, and
CONSULTANT has been selected to perform said services,
NOW, THEREFORE, it is agreed by CITY and CONSULTANT as
follows:
1. WORK STATEMENT
CONSULTANT shall perform 'the following services:
a) general management of all facets of the
repairing of Civic Center No. 2, commencing with the preparation
and continuing until the well is placed into oil production or
project is terminated by mutual agreement of both parties.
b) all of the engineering and work necessary for
the repairing of Civic Center No. 2, However, CITY shall pay the
cost of geology and collecting the data needed by CONSULTANT to
provide said engineering.
c) Engineering services shall be conducted by
engineer Renick Sampson.
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d) All accounting .and payment of bills shall be
administered by CITY after proper certification as to correctness
by CONSULTANT.
2. CITY STAFF ASSISTANCE
CONSULTANT shal- have the right to report to only one
person whom the City of Hunting`on Beach shall designate as the
staff coordinator for the repairing of Civic Center No. 2.
3. INDEPENDENT CONTRACTOR
CONSULTANT is, and shall be, acting at all times in
the performance of this Agreement as an independent contractor.
CONSULTANT shall secure at its expense, and be responsible for any
and all payments of all taxes , social security, state d= sability,
insurance compensation, unemployment compensation and other
payroll deductions for CONSULTANT and its officers , agents and
employees and all business licenses, if any, in connection with
the services to be performed hereunder.
4. INSURANCE
CONSULTANT shall furnish to CITY and maintain in
force during the term of this Agreement a policy of general
liability insurance (including automotive liability) in which CITY
is named as an additional insured. The policy shall indemnify
CITY, its officers and employees, while acting within the scope of
their duties, against any and all claims arising out of the
performance of this Agreement. The policy shall provide coverage
in not less than the following amounts. combined single limit
bodily injury and/or property damage of $300,000 per occurrence.
Such policy insurance shall specifically provide that any other
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insurance coverage which may be applicable to the loss shall be
deemed excess coverage and CONSULTANT'S insurance shall be
primary. A Certificate of all such insurance policies required by
the Agreement shall be delivered to the City Attorney prior to the
commencement of any work and shall be approved by her in writing.
No such insurance shall be cancelled or modified without thirty
(30) days ' prior written notice to CITY.
S. PROVISION FOR PAYMENT
In consideration of the performance of the above
described services, CITY agrees to pay CONSULTANT a fee of seven
Thousand five hundred. dollars ($7500).
6. TERMINATION OF AGREEMENT
This Agreement may be terminated at any time by
either party upon notifying the other party and after mutual
agreement. Notice of termination shall be effective upon delivery
' to the party concerned as follows:
TO CITY: TO CONSULTANT':
Chief Raymond Picard Mr. Curl Weaver
H. B. Fire Department 19061 Crystal
2000 Main Street Huntington Beach, CA 92648'
Huntington Beach, CA 92648
7. PRODUCTION LEVEL
CONSULTANT shall not be responsible for the
-,roduction level of Civic Center No. 2 following the repair.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by and through their authorized officers
the day, month and year first above written..
.1
CONSULTANT: CITY OF HUNTINGTON BEACH,
RENICK SAMPSON, an individual. A municipal corp ra1hion
CARL WEAVER, President
ATTEST: APPROVED AS TO FORM:
City Cler City Attorney - IE:
REVIEtiBE D APPROVED: INITIATED AND APPROVED:
Ci y n ,nistrator o ire partment
TE:mf
8/15/84
4
Er
ISSUE DATE(MM/DD/YY)
vfc-
8-20a84
PRODUCER THIS CERTIFICA 7Z:is ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS
NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,
EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
BYRON FENLEY INSURANCE AGENCY,INC. COMPANIES AFFORDING COVERAGE
P.O. BOX 270
HUNTINGTON BEACH, CA 92648 COMPANY A
LETTER INSURANCE CO. OF NO. AMERICA
COMPANY B
-- -- —-INSURED LETTER
CARL M. WEAVER DBA: WEAVER'S COMPANY NY c
PRODUCTION SERVICE �� APPROVED A TO E0RtdK_
19061 CRYSTAL STREET COMPANY D GAIL flUTTON,. City Attorney
HUNTINGTON BEACH, CA 92648 LETTER
BY- Deputy City n-r
COMPANY E . T
LETTER '
i.pZ•tt4+ p�y3i- .j�`' uu,ya ,,.;Y! .. ,t ,.' ,} u..
L 3sR Lv �x i C, c N #Lgpx t
THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.
NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY-IHE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS,AND CONDI-
TIONS OF SUCH POLICIES.
CJI TE7 POl'Y E FF^rv'E POirCv Exp RATION LIA all LITY LIMITS IN THOUSANDS
LTRI _i,F iNSu AANCE POLICY!UMBER DATE rMAtMNY) DA TE(19M/0D%11 77 7 AGGRE LATE
�
�'-) OCCURRENCE
GENERAL LIABILITY BODILY
h� INJURY $ $
�DMPaEHEvS`JE CORM
k x; PREMISESOPE9ATIONS PROPERTY
GRUO
FXP O J%-&COLLAPSE 4AZARI' GLP GO 59 14 90 5 6-17-84 6-17-85 DAMAGE $
}(i PRODUCTS;GMP,FTED LIPERATIONs
CON TRACT JA:. COMBINED $500 $500
a 9
j x; rNDE°ENDENi CDNT�tAv'ORS
X RPrAC ORM°RCPFRTY DA'4AGE
h '"'AL ;^i,1,!AY ij PERSONAL INJURY $
-----�i---•
AUIOMOBN_E LIABILITY v
AN, Ad R:R4h
.... ,%Nv2 A,ITOS..PRI� PASS
~ w 'WNE, Ao"JS�PRI'J RP' J1 t A fr, $
`trT
4 RI PROPERTY
DAMAGE $
F .
fA°Ja,E .rAB'IT, � 818 PD
COMBINED $
EXCESS LIABILITY
-:MFiRE..A.riRM I COMBNED $ $
',F'° n,AN .IMBREt'.A'URM
— STATUTORY
WORKERS'COMPENSATION $ (EACH AGCiDENi?
AND <r $ (DISEASE-POLICY LIMIT)
EMPLOYERS LIABILITY
$ (DISEASE•EACHEMPLOYEE)
.OTHER
I �
N'SCRIPTION OF OPERATIONS/LOCATIONSIVEHICLES/SPECUIL ITEMS
131,1 IT 11s
f SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EX.
CITY OF HUNTINGTON BEACH PIRAT ON DATE THEREOF, THE ISSUING COMPANY WILL XKcYr�9zmx1b
MAIL_J_0.._DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE
2000 MAIN STREET LEFT aswaa �sst! 3oiDa�sw�c�Da� m� acrm
HUNTINGTON BEACH CA 92648 ' � _ " � ' � 'r
AUTHORIZE RESENTATIV
rG, 't
ISSUE DATE(MM/DD/YY)
2_ �orV,
t a
8-20-84
-RJDUCER THIS CERTIFICATE IS ISSUEDWA MATTER OF INFORMATION ONLY AND CONIFERS
NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,
EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
BYRON FENLEY INSURANCE AGENCY,INC. COMPANIES AFFORDING COVERAGE
P.O. BOX 270
HUNTINGTON BEACH, CA 92648
COMPANY
LErrER AINSURANCE CO. OF NO. AMERICA
NSUREO
LETTER COMPANY13
CARL M. WEAVER JBA: 1 CL�a Y C
19061 CRYSTAL STREET �COMPA.4y GAIL HUTTON,- City Attorney
HUNTINGTON BEACH, CA 9.2648
LETTER By- Dppllty City Attar
COMPANY
LETTER f'9:9
All
r
THIS IS TO CERTIFY THAT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.
NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED 6'THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS,EXCLUSIONS,AND CONDI-
TIONS OF SUCH POLICIES.
POLICY EFFECTIVE POLICY EXPIRATION LIABILITY LIMITS IN THOUSANDS
TYPE OF INSURAiJCE POLICY NUMBER POLICY
DATE(MWDOIYY} am EA I+ AGGREGATE
qR P
GENERAL LIABILITY
BODILY URY $ $
Y,1 CAL4°RENENSNE FORM
A' PREMISESIOPERATIONS PROPERTY
UEXPLOSON&COLLAPSE HAZVO GLP GO 59 14 90 5 6-17-84 6-17-85 DAMAGE $ $
X PFI DUCTSCOMPLEfED OPERATIONS
CONTRACTUAL COMBINED $5 0 0 $5 0 0
X INDEPENDENT CO/;TRACTORS
s s
CO/;T
X BROAD FORM PROPERTY OAl%AAGE
PERSONAL INJURY PERSONAL INJURY $
p AUTOMOBILE LIABILITY BRLYYKJU $
I ANY AUTO (PEN PERW
ALL OWNED AUTOS(PRN PASS.) MYRAIRY $
ALL OWNED AUTOS(OTHER
ANJ (PER AOCOM
HIRFD AUTOS PROPERTY
DAMAGE $
NON-0WNED AUTOS
GARAGE LIABILITY BI a PD
(---� COMBINED $
EXCESS LIABILITY
UMBRELLA FORM COMBINED $ $
OTHER THAN UMBRELLA FORM
STATUTORY
f WORKERS'COMPEf.SATION
li $ (EACH ACCIDENT)
AND
EMPLOYERS'LIABBJTY (DISEPSE•POLICY LIMIT)
$ (DISEASE-EACH EMPLOYEE)
OTHER
i
rESCRIPTTON OF OPERATIONSILOCATTONS/VEHICLES/SPECIAL ITEMS
a e •
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EX-
CITY OF HUNTINGTON BEACH PIRATLCI_N DATE THEREOF, THE ISSUING COMPANY WILL XKftXQZQXlb
MAIL I I) DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE
2000 MAIN STREET
HUNTINGTON BEACH, CA 92648
AUTHORIZE V
PRESENTATI
/
.� I Ivgg >• .••e
(SEE INSTRUCTIONS ON REVERSE SINE FOR APFLICABLE AMOUNT)
;�,notu All Men by These Presents: "^^---
WE. CITY OF HUNTINGTON BEACH
That I, J '
as principal, and THE OHIO CASUALTY INSURMCE COMPANY a corporation
organized and existing under and by virtue of the laws of the STATE OF OHIO
an4 authorized to transact surety business in the STATE OF CALIFORNIA, as surety, are held and firmly bound
unto the STATE OF CALIFORNIA in the sum of FI E --- -- 'THOUSAND AND N01100 DOLLARS
I.
(S............5,000.00) lawful money of the United States of America, to be paid to the said State of California, for
which payment, well and truly to be made, we bind ourselves, our heirs, executors and successors, jointly and
severally;'firmly by the:a ptesents.
THE CONDITION OF THE ABOVE OBLIGATION IS SUCH THAT,
WHEREAS, said principal is about to drill, redrill, deepen, or permanently alter an oil or gas well designated
as CiViC Center #2 Sec.,.2... T.6 ._ R1jj SB,.B. 1&M., and is required to
file this bond in connection therewith in accordance with Sections 3204 to 3209, inclusive,of Chapter 1 of Division
3 of the Public Resources Code of the State of California.
.NOW, THEREFORE, if said ........�+,�2'Y..QP'...��LT�r3t�N„G,;Z'C)N B�"aC$ ..................................
tiie above bounden principal, shall well and truly comply with all the provisions of Division 3(commencing w&g
Section 3000) of the Public Resources Cede and shall obey all lawful orders of the State Oil and Gas Supervisor,
or his district deputy or deputies, subject to subsequent appeal as provided in that division, and shall pay all
charges, costs, and expenses incurred by the supervisor or his district deputy or deputies in respect of such well
or the property of said principal, or assessed against such well or the property of such principal, in pursuance of
the provisions of said division, then this obligation shall be void; )therwise, it shall remain in full force and effect.
IN WITNESS WHEREOF, the seal and signature of the said principal is hereto affixed and the Corporate seal and
name of the said surety is hereto affixed and attested by its duly authorized ATTGRNEY-IN-FACT at
s U.LLKRTON, California, this 3rd day of August 19 84.
[Principal] ,.,CITY OF HUNTI.NG.TON..BF .GH................................................................... .............
By .....
(SEAL OF PRINCIPAL)
[Surety] -%..OHIO CASUALTY INSURANCE COMPANY
Byh C
&0 T E. CHOV-NK s a ATTORNEY-IN
Office of surety to which correspondence relating to this bond should be Fe_
addressed:
THE OHI'0 CASUALTY INSURANCE COMPANY
I .......................
i
2600 E. Nutwood. Avenue, Fullerton, Calif. 92631
(SEAL OF SURETY) .... ....... . ........................... ......... ..... ..
I The premiu-Mchar ed for this
OG160A (1/82/DWRR/3M) (SEE OVER) bond is$.,....!Mer annum.
tCERTZED COPY OF POMER. OF A: O Y
TM OMFCASUALTY S CO
HG= Calnm "OLTr;a. °tsao No. 18-268
KMM AU Am 4 � fig �xetietts� That THE OHto CASUALTY INSURANCE CONWANY. In par-
of outhority d by Article VIM&7 of the By-Laves of said Company,does hereby nominate,cone asad appo bAl
Robert E. Chovick - - - - -, - - - - - - - - - - - of Fullerton, California - - - -
Its trao and lueeful agcut nnel attorney -in-fact, to snake.execute, oral cmd deliver for and on he behalf as sanity, and as
its act and deed Any and all bonds, recognizances, stipulations or undertakings excluding,
however, any bonds or undertakings guaranteeing payment of loans, notes or the
interestthereon. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
-
And the aix—den of such bond*"or undertahtkov pro.,ants,pr-aanca of those roants, sball be as bEding apea acid Coampasy,
MA fayand amply, to ill iataats sad purpo�o, as if they had been duly exocuted and ac'x rue lodged by the ragnlerly
elected officers of the Carapany at its 0 ce sn Hamilton. Ohio, in their aorta proper persona
♦1lALI' in WrlNESS WHEREOF, the undarsirnacd officor of the said The Ohio Ceenaltr
Insurance Company has hereunto subscribed his name and affixed the Corporate Seal of the
SEAL
*: said The Ohio Casualty Insurance Company this 4th day of December 1981.
tsiSnad, Richard T. Hoffman
Asst. Secretary
S TAW, 1°OHIO, 53
COLRV'a OF SUTLER I
Oa this 4th day of December A.D. 19 81 before
the subscriber, a Notary Public of flea 9tata of Ohio, in and for the County of Butler. duly comm_9sioned and qualified, eases
Richard T. Hoffman Asst. Secretary - - -of THE OHIO CASUALTY JNVJRANCE COWANY, to me
ppe�rsonally Imown to be the licdividuwl and officer described in, and who executed the preceding instrument. and he acknow.
fedBsd the execution of the snme, and 6aing by me duly sworn deposeth and saith, that be is the officer of the Company
aforesaid, and that the semi affixed to the proceding instrument is tho Corporate Seal of said Compat.;..and the said Corporats
seal and hio signatnra as*$aces were duly affixed and subscribed to the mid instrument by the authority and direatlan of the
SAW Corps atfotr.
�ycmniruu4 IN TESTIMONY WHEREOF, I have h oreunto set my hand and affisod wy Official
4,ti."o�vut lt�� Seal at the City of Hamilton.state of Ohio, the day and year first above written
„A (Slpn®dl
_Dorothy_Bib_ee
13j,_ ,4� 1Va4ary °ubli.in an r3 for County of Bader.State of Ohio
December 11 1981
�autni My Commission aspires « .
This power of attorne►is,granted under and by authority of Article Vt,Section 7 of the By-Lawn cif the Company,adopted by
its directors on April 2. 1934, extracts from which reads
"ARTI= VI"
"Section 7. Appowsme.t oP A42otaamy-fn-1'uat,eta, Ths chairman of the board, the president, ally vice preside®¢, 41►e
escratary or any,assistant accretary*ball be and is hereby vested with full power and authority to appoint attr.+rneyrinncct
for the purpose of signing the nano of the Company as surety to, and to execute. attach the corporate said, acknowladge
and daUver any and all bonds, roosgnirancmo, stipulations, undertnkinge or other instruments of suretyship and policies of
insurance to be given in favor of any individual, firm, Corporation, or the official representative thereof. or to any county
or state,or any official board or boards of county or state,or the United Stator of America. or to any otbex political vub-
diviaion.°'
This iastminent is signed and sealed by facsimile an authorized by the foUoaing Rocalatioa adopted by the directors of the
Company on May 27, 1970t
"iaE4OL.VED that the signature of any elfin ar of the irompany authorized by Article VI Section 7 of the by-laces to appoit
attorneys to fact, the signature, of the Soctatsry or any Assistant Secretary certifying to the correctness of any copy of o
power of ettornay and the seal of the Company may be affixed by facsimile to ano power of attorney or copy thereof issued
on behalf of the Company. Such eigmatores and coal ors hereby adopted by the C%mpany as original signe;tures and seal,
to lea vtalfd anti bfMANng Upon the CocmpMAy with the rams force and effect as though manually affixed."
CERTIFICATE
h the undersfgt*od Amlount Sean"ry of The Ohio Casualty Insurance Company. do hereby certify that the foregoing power
of attortsoy. Atticla VI Section 7 of the by-laws of the Company and the above Resolution of its hoard of Directors are trna
and correct orpiea and are in fa force and affect on this data.
!N WTI MW WHEREOF. I bavo horouuto sot tay hand and the seal of the Company this � day of Aug• A. D., 19 84
SEAL 1=
A
set I•• Assistant SocretArY
$-42@3C tQ74-26t7C
�. CITY OF HUNTING B pi
INTER-DEPARTMENT COMMUNICATIONI °`�`�r'
HUNTINGTON BEACH
To Charles W. Thompson From Raymond C. PicZ
City Administrator Fire Chief
s
Subject Civic Center Well #2 Date September 4, 1984
Problem
On June 27, 1984 production on Civic Center well #2 dropped from the normal 18
barrels per day to 2-4 barrels per day.
Analysis
A pulling operation of the rods and tubing was done to investigate the probable causes
for this production loss. An inspection of the severely angulated tubing and an analysis
of a bailer and impression block test were done. The cause of production was thought
to be a collapsed casing at approximately 2,550 feet which would necessitate redrilling
the well. Initial plans were made to redrill Civic Center well #2. These {Mans were
changed due to a lease agreement between the City and the Huntington Beach Company
stating the City shall not redrill any of its existing wells. Further analysis of the tests
run on the well increased our chances for repairing the e\isting well bore.
Actions Taken
August 21, 1984 a production rig was brought in to try and mill out the portion of the
liner which had collapsed as well to prepare for the possible correction of a full casing
collapse. Carl Weaver was contracted to supervise the repair operation. The milling
operation was successful and the well with new hardware was put back into production
on August 24, 1984.
Pr_)ject To Date
Civic Center well #2's production currently is at 16 barrels a day, equal to what it was
prior to the collapse. The well is back on line with new pumping unit, well head, polish
rod, tubing, and downhole pump. With these new components, well #2 is equivalent to a
new well. Due to the change in the plan of action, the City did not hire a drilling
company to redrill well #2. They did hire a project manager and engineer to carry out
the repair operations and set up an account for the initial $275,000 in the event
redrilling was necessary*
Work To Be Done
Civic Center well #3 will be on line with a new pumping unit by September 6, 1984 and
a new larger compressor is being purchased to increase production of gas and oil on
Civic Center wells 1/1 and #3. The total,cost of the repair operation and all new
equipment will be approximately $100,000. The remaining monies will be transferred
back into the unappropriated general fund.
RCP:TS:mI
1804
REQUESTFOR CITY C U CI ACTIQ
Date Aunur( - j
Submitted to: Honorable Mayor and City Council
Submitted by: Charles W.Thompson, City Administrator
g
Prepared by: Raymond C. Picard, Fire Chie
Subject: CIVIC CENTER OIL WELL #2
Statement of Issue, Raco:nmendation,Analysis,Funding Source,Alternative Actions,Rttacbments:
STATEMENT OF ISSUE:
A repair contract is needed to be approved by the City Council for the purpose of hiring a
contractor to repair Civic Center Oil Well #2.
RECOMMENDATION:
EAorize the attached contract for a petroleum consultant to manage the project at a cost of
U.
ANALYSIS:
The terms of a redrilling lease with the Huntington Beach Company were not satisfactory and the
only other viable alternative is to attempt to repair the well
FUNDING SOURCE:
None other than previously approved by the City Council on July 16, 1984 for redrilling.
ALTERNATIVE ACTION:
Continue negotiating a redrilling lease with the Huntington Beach Company.
ATTACHMENTS:
Contract.
RCP:jh
1718f
Aio 4181
Ask
�a CITY OF HUNTINGTOp4 BEACH
INTER-DEPARTMENT COMMUNICATION
HUWINGTON BEACH
To Charles Thompson From Raymond C. Picar
City Administrator Fire ChiefA.
Subject CIVIC CENTER OIL WELL #2 REPAIR pate August 17, 1984
On July 16, 1984, the City Council ratified the appropriation of $275,000 for the
redrilling of Civic Center Oil Well #2 to correct a collapsed casing sustained on
June 27, 1984 causing a shut down of production and loss of approximately $400
per day income. At that time the Huntington Beach Company was in verbal agreement
with the cities plan to redrill the well even though the lease agreement between the
Huntington Beach Company and the city specifically states that the city shall not
redrill any of it's three producing wells.
There has been a recent change in the Huntington Beach Company's poeftion about the
redrilling of Civic Center. Well #2. They are proposing an increase in production
percentages paid to them if the well is redrilled. The proposal is as follows:
- The city fund the entire redrilling operation, approximate cost of $275,000.
- The city would receive 75% of the production revenues until the ,$275,000 is
recovered.
- After the $275,000 is paid off the city would receive 50% of production
revenues and pay all production costs.
It is the concensus opinion of the council selected oil committee and all oil in-
dustry consultants that this is not a reasonable request.
The alternative solution is to try and repair the existing collapsed casing and
put the well back into production at the same depth that it was prior to the
collapse. The approximate costs on this type of an operation is $100,000 and should
take about two weeks to complete.
REQUEST FOR CITY COUNCIL: CT'I N
Date Aug 4
Submitted to: Honorable Mayor and City Council r
ubmitted by: Charles W. Thompson, City Adminlstrat r U 1/3 i
P; ared by: Raymond C. Picard, Fire Chief
Subje CIVIC CENTER OIL WELL #2
Stateme t of Issue,Recommendation,Analysis, Funding Source,Altern 9 Actions,Attachments:
ISSU E:
Two revised drilling c tracts need to be approved b the City Council.
RECOMMENDATION:
Authorize the City Administr or to grant t1) attached contract to the lowest responsible bidder
for redrilling of City well #2 as n urgency lfroject. Also, authorize the second attached contract
for a petroleum consultant to supe Ise th project at a cost not to exceed$7,500.
ANALYSIS:
The two previous contracts had not// -en n otlated with the bidders and varier rrom the standard
contracts and practices used in theindustry
The bidders prefer to work with standard contra and with standard practices and contracts.
FUNDING SOURCE:
None other than previously pproved by the City Council or July 16, 1984.
ALTERNATIVE ACTION:
None.
R CP:jh
1718f
P10 4/81
RFCF•Ivc•RCif
.,
to -i Beach
i' P.O. E30x tao, 7 Ni CALIFOfIN!A '234
OP TICE. Olt THE CITY L:i,f'.IIiC
l�1.t4i_ul��G
January 7, 1975
Weaver's Production Service
217 17th Street
Huntington Beach, CA 92648
Gentlemen:
The City Council: of the City of tturiLington Beach at its ,.eqular
meeting held Monday, January G, 1975 approved an amenduwnL t.o
the agreement between Lhe City and %Y�aver's Production ac•,rvj.ce
dated Augu3L- 3, 1971 relative to service for the t•liley—Kcck lea:su.
:•le are enclosing a duly executed copy or said Amendment for your
records.
Sincerely yours,
Alicia M. Wentworth
City Clurk
A1•t 9:cb
enc. 1 `
4
AMENDHE'NT TO A'Glil,:l,MFINT
This is an amendment; to that cer-Lain Ag;lucmont executed
t,y and between the CIL,y 01' 1111nt5.nl ton 130;u:h, it
corporation,- hereinaftev referred to as "CLTY, " and Weaved:.;
Production Service, hereinafter referred Lo as "I;11;AVU"S,"
on August 3, 1971, a copy of which is attached hereto.
Paragraph 1 of said Agreement; is 'hereby am,ndQd as follosa:>,:
1. The sum of money due to Wuavcr'-, llroducL l on
Service each month for said gervinu s;hal.l be One
Hundred Dollars ( :100) per well per month. At the
time of this Amendment to Agreement , thr: MU Icy-Keck
lease consists of three: (3) wells , NO. 46 , PIG. 611 ,
and 110. 65.
Lxcept as amended herein, the Lein;::, of the Agreement
executed on August 3, 1971 shall. rem;iin in full force and
efftCt .
I IT, January 7, 1.975 CITY GI' ;ill l�l'i.'Tl'dt1`YOII 13l:HCii
JM*.lyor Pro Tempore
Cit; Cit.rk
APPRUVEL) AS TO FGliif: Al'i hOV1,A) K", TO CiJPJIT"N'i':
r Gi- Att rncf �,H Y:1 KT? �Yt.AL'�1Adl,r�n�.;;Gratt�i
WI;AVI'll"7 C`I ODUC`1`I MI 388VICE
1)c n d e r i t c o n 1.),;L c i.n v t n d n c)t aL Itrt em i o Y
6 . 'Ur!.avci''n ;I ial I Luidemn 1 1"', wl< aV
City, itti off i cors, , agortt;,, and 1,1101'.1 'Irly and a] I
claim.-,, demandr., )assc, or llablllUics or nny kind or mrtt.urc,
which the City ,, its off'A cui , acont"'. and "Inployt,k-'.o, 11tay Su •i•2tL17
or incur, or- which may he po,ed upon them or an.%, oi* thet-n, f,,r
injury to oi, deat-h ofpersons or damat-,e to 1woporty
out or or in any mannor cormc.-ci.cd with the
Weaver's of the ;;ervicci contract.od for licrcuncler.
Dared : C/
CITY OF HUNTINGTON 5FA0H
BY
A T'r E,S T
City(,].err
A11PW)VFFD AS TO F013M:
City Attorney
Datod:
'V.L C*
7. Compressor will be maintained at the rate
of 100.00 per month.
1ti'1",,AV.G11Z.tS PULODUCTIONT S1,111VICE
Dy .� 1j(�
\22
M=j
fl'
A(;10"PUIi;
`I'hl At"ivec,vord, trade :tri(i x r.ii(. •,t 11Y :,is'l l!.•I •'l1:
the City of ll tin tinictcin :ierlcII, 'r niuri.i cip:,: co I'[)o I.;1t:.lori,
hert.III af•Ler T.'ufcri,e(I to a:, "C)'I'Y° , and t"'("wer ':; P-oduat.i."r,
1 Servic,e, I,creinr.f'tcr veI,or•rFd to a-' "14J•:Al.'Is1, ' " .
i
"Lhls A1,re•c'nicrit. caristit.utes an agrc!eni�,nt by 1,4e-aver`::
to furnl :;h a pumper, to pump the wells known as Ow t•t.ile.;.°-Koe',
lease located in the City of llt.)rt:i:rit;l:ou ll ach, :suiljoct: tc) t '; •
followlnl, tcrms and coud.ttion:; :
1 . The sum oC money due to Weaver's i'rodtrci:.ic:,
Service each month for, ,;al(I :;crvlcc shall bo
($60) per well per, month . At the time oC thi., t3t:rFemen' tho
f°'l:l.ley-beck lea.,; ' consi.3ts of three (')) wells , No. 14G , i n. C
and No . GS .
Z. The wel'ln are to be pumped in a worknMnlikcr
manner common to oil well practices . Won.ver•'s rroductl nn
Service sh,a:i1 furnjoh the City of ltuntiw7ton Peaoh v.it'h 3 cer-
t L N.cate oC insurance! in t;he form of liahillcy and
compensation in t1w amounts oC $100,00n, $300,00t1 nolic:d 1Jr:iiC;:.
3. In the event that: extra it; dosire'd 1,;•°
the City of Huntington I;each beyond the normal pumper du'-ie,:
for maintenance , otc. the price alial7. ho :••ix ljol.lur:: (ti=.(10)
per hour, pvzz man . AI 1 extra wni•k rnct:;t UO Ooiu;cn t •.1 tc) 'in
Ii,y the City . There shall be no compensation for extra i•:ork
without prlor aut hor•i zal;i on from City .
i
11 . Cancellation of t;h.i" ut;rec:ment is hei3OLri ar;re,pd
to as follows :
"Either party to thi,> sit-reemen`, shall ).avr,
the right to cancel thi:: agrooment will; no
reason ,;lven. `t'he only bindi.nr; i-rovJ ;• i c)n
to 7i(jit 1-0 �'h:rll lug i hit t.11o
pr,rty wi r-hi.rltr .-urli oanr,• tl at;r ,in
{ 1:110 nt lwv party in wrii into tht * t:. (3ta a i•;i
f in advance . "
i�i
i
1VI AVER'S I'I2(UNOU)'ION SE VICE
OIL WELL SERVICE
1110111 CRYSTAL Si•1REE''T
�i •II11 NIfl Y[:'PON RILACII. CAI,11' It. IA 92G•18
1 1
DJIl-R22"1
October 6, 1.977
City of TRaitilur ton Beach
P. 0. Box 190
I1unLLngton Beach! Ca, 9261I8
A Ltent,ioli }io}) I)i vis
Oil Department
Dear Sir:
Enclosed you will. p1misc find a coley of
my arreewelit dated August >, 1971,
I hereby add ari additional. rinusc :f:or
wontlily waintenauce and service on t,ic compressor.
I1opi.tig this weets with your approval,
Yours very •truly,
WEAVER'S PRODUCTION SERVICE
,J
Carl ;•f, ieavcr
cue
linc. 1.
fL�
1
a TV OF acH
INTER-U}PARTMLNT COMMUNICATION
I, I
11"NIINGII/N ULM;I ,T GII I '.I II:�/ „I.ii 11i'1 ) 1.'•7(
r 7 OCT
To, 1�'LOYII G. 1.',f;l,;;.'1T0 Flom JOHN (71t:f)iJPAM'
City ndmiriisLrator Uuput,,y UlLy ALtor'iicy
g1 ' ` Uctoev 13, : ' 7R?QJIiTsll nN ;J1M N1 �0 Subject 7 :
CONIRACI WITH WEAVERS PRODUCTION SERVICE
The requested amendment to the contract involve.,; an :i.ncrea.;0
in the fees for services performed above the existing cont.—
,act-Therefore, it would seem to fall within the purview of Section
3. 02. 050 of the Huntington Beach Municipal Code which requires
es
bidding for services . This. section reads :
"Purchases or supplies , services , equipment , and
th,: sale of personal property sha.11 be by hid pro-
cedures, pursuant La Sections 3.02.O8O and 3.02• ll_>0.
Lidding sha1:t be dispensed with only when an eme,
,ertc,y requires that an order be placed with the
-,nearest. available sour-ce of supply , when the amount
involved iu less than $200, or whon the commodity
can be obtained only from one vendor. "
I would assume that the previous amendme: t of ,January 7, 1971;
.,gent through the biddi.nr; procedures since the Incrr.,r:;a in the
amount was from $60 to $100 per month per wcl_t , a.n11 over Lhc
lifetime of the agreement, it would exceed $200. 1 would o.J.:'o
as:,ume that this requer;tcd amendmotil; wouJ.d t,c ::ull,jocl, I.0 Lllc
bidding procedui,es, and if they have not been completed, it
would seem desirable to implemcnt Section 3.02 .0<<;0,
/r:
` JOHN 0'CUNNOR APPROVED: '
. .. J U C; Ps � � -�l��j� �—•
• city nttornoy
4L*f': zcvaa,
INTER-DEPARTMENT COMMUNICATION
uuvnur.uiu UAW
R. C. Devi_ ,
To F1 oyd G. Bel si to, From Chief 0�1 i el d Inspector
City Administrator Through John F( i3� ens, Director
Buildin, ommunity Development
Sibject Reque:,ted amendment to contract with Date Novemb r '18, 1977
Weaver's Production Service ,J
(See item 7, page 2 of Service Agreement)
As per the attached contract and memo dated October 13, 1977, stating Section 3.02.050
of the Huntington Beach Municipal Code requires bidding for services, this department
feels that the present operator, known as Weaver's Production Service, is the only
person qualified for the service of our City owned oil wells, and outside bidding for
this service would be useless.
Listed below are the necessary facts to justify why Weaver's Production Service
should be offered as the "nearest available source of supply" for overall protection
to the City of Huntington Beach:
a. Our three oil wells have been maintained in a workmanlike manner by this
production service without serious mishap or injury since the City acquired
the oil wells in 1971 .
b. In case of well work due to worn pumps, parted rods and normal mechanical wear,
this production service owns and maintains an oil field supply house having a
complete line of parts, and service repairs may be made immediately to prevent
further down time of the oil wells also keeping a working stock required for
our wells.
c. This production service is local and has extra personnel trained to perform in
emergency.
d. The production service owns and maintains equipment necessary for oil spillage
cleanup or pipeline leaks in case of emergency, and is on call 24 hours a day,
365 days of the year.
e. This production service is licensed by the City of Huntington Beach and can
furnish the City of Huntington Beach with a certificate of insurance in the
form of liability and workman's compensation in the amounts of $500,000 each,
superceeding any other pumping contracting service.
f. As far as the new vacuum compressor at Civic Center Well Site #l , the maintenance,
oiling and dumping of gas traps, which must be done daily, was set up for their
production service in the beginning to prevent any maintenance problems.
We feel that the--above facts support no outside bidding of this contract.
RCD/JFB/vl
attachments
WEAVER'S PRODUCTION SERVICE 71
OIL WELL SERVICE
10061 CRYSTAL snzFF.T
1tuN'CING'C0Di III3AC'11,CALIFORNIA 02648
y,r! u Tctsrnoxa
Dr°r.em]1a1. 1, 1777 S30.8226
Dear Sir:
Due to the higher cost., of labor, inruranco, and
equipment, we re,rret, to inform you as of ,Ja.nuar;, 1, 1t'?S h':'
prier, for pumping service will be +"115.00 per we>11.
In thu pi7st, we have appreciated sorvirq- you and
hope to continue doing so.
Thank you.
11espoctf ul ly,
vAVi''a ;3 1;GJ?ir;!1vt3 i.;.i1 st;.
�{, .t * ,t
arld. dr�•�,vr>r
CM W:em
IVE,),1..It's PIM D11(:111I(.W S:I11II11ICF..
oil.writ.srnvl(:r.
1!10l11 111?Y.WPN.-4It 141:FIT
ff iXTING11O I)ENCH.CAi,lFi)UNIA.92048
"CY.1tt•ilfitiµ
naU.H_srs
131�ar tlil i'r�tclt:cc�rs: a l
DIM tp 1.110 'illG,-0.Is0 i.n roSts or llabory
i nsuronce, otc. , wo f illd it, rtecossary to rai s(- Our
pumpiaifr service to 150,00 por wail, por mon l'i.
I-Jo finvn grea(.ly apo rocia"Lod your busi—
ness in the past and hope wo can cont.inut: to sorve
you ir, the fuLuro.
These prices will become effoc•t"ivv May
1 , 1979.
Sincerely,
WKh AVli RI S s iitl llUO'i'I ON' :'sl?!t'G I GE1
Carl M, ►ioovor
0m