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Home My WebLink About08 - Oil Well Service RepairsCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 8 April 8, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Utilities Department Steve Myrter, Utilities Director 949 -718 -3400 or smvrter(o)city.newport- beach.ca.us SUBJECT: OIL WELL SERVICE REPAIRS — APPROVAL OF AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT Approve Amendment No. 1 to Professional Services Agreement with Oil Well Service Company for on -call oil repair services and authorize the Mayor and City Clerk to execute the Amendment. DISCUSSION: On November 27, 2007, the City Council approved a Professional Services Agreement with Oil Well Service Company, to provide as needed on -call oil well repair services. Oil Well Service Company would like to amend the Agreement for six months on a time and materials basis per the rate sheet shown in Exhibit B. This amendment will lock in prices through October 9, 2008. Oil Well Service Company is only able to guarantee time and material prices for six months, due to the pricing volatility of the oil industry. The scope of work for the on -call professional agreement being amended would include the following services: repair of oil and gas casing, tubing, sucker rods and down hole oil production pumps at the City's Oil Field. Environmental Review: This action requires no environmental review, as it is not a project pursuant to CEQA. Funding Availability: Funding is available in 5400 -8160 Maintenance & Repair. Oil Well Repair Services — Approval of Amendment No. 1 to Professional On -Call Service Agreement April 8, 2008 Page 2 Expenditures more than $30,000 for an individual repair project will require a separate City Council action in accordance with Policy F -14. Prepared by: �l Cindy Asher Administrativ Manager Attachments: Amendment No. 1 with Oil Well Service Company AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH OIL WELL SERVICE CO. FOR ON -CALL OIL WELL REPAIR SERVICES THIS AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT, entered into this 8th day of April, 2008, by and between the CITY OF NEWPORT BEACH, a municipal corporation, (hereinafter referred to as "City") and OIL WELL SERVICE CO., a California Corporation whose address is 1241 Burnett St., Signal Hill„ CA 90755 ( "Contractor"), and is made with reference to the following: RECITALS A. On November 27th, 2007, CITY and CONTRACTOR entered into an On- Call Professional Services Agreement, hereinafter referred to as "Agreement ", for Oil Well Repair Services. This Agreement is scheduled to expire on April 9th, 2008. B. City desires to enter into this Amendment No. 1 to extend the term of the Agreement to October 9, 2008. C. City and Contractor mutually desire to amend Agreement, hereinafter referred to as "Amendment No. 1 ", as provided here below. NOW, THEREFORE, the parties hereto agree as follows: 1. Contractor shall perform various oil well repair services pursuant to this Amendment No. 1 and according to the Request to Extend On -Call Services Agreement dated March 11, 2008, attached hereto as Exhibit A. 2. Compensation to the Contractor for services performed pursuant to this Amendment No. 1 for all work performed from April 9, 2008, to October 9, 2008, shall be based on the attached Schedule of Billing Rates (Exhibit B). 3. The term of the Agreement shall be extended to October 9, 2008. 4. Except as expressly modified herein, all other provisions, terms, and covenants set forth in Agreement shall remain unchanged and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the date first above written. APPROVED AS TO FORM: By: c�- Aaron C. Harp, Assistant City Attorney for the City of Newport Beach ATTEST: L-n LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH A Municipal Corporation In Edward Selich, Mayor for the City of Newport Beach OIL WELL SERVICE CO. Title: President Print Name: (Financial Officer) Title: Print Name: Attachment: Exhibit A – Request to Extend On -Call Services Agreement Exhibit B – Schedule of Billing Rates OIL WELL S �4�j LONG BEACH (562) 595-4501 BAKERSFIELD (661)746 -4809 COALINGA 1559) 935 -5080 SANTA PAULA (805) 525-2103 WOODLAND (530) 662 -9364 March 11, 2008 Cindy Asher Newport Beach P.O. Box 1768 11 Newport Beach, CA 92658 -8915 Dear Cindy Asher, 1241 E. BURNETT STREET • SIGNAL HILL, CALIFORNIA 90755 -3594 This is to inform you that Oil Well Service Co. has been in business since 1940 and is 100% owned by our Employee Stock Ownership Plan: Gur current ozrlce arld yard address is, 1241 E. Burnett St. Signal Hill, CA 90755. We plan to hold the prices in the attached price list for the next six months. Feel free to give us a call if you have any additional questions. Sin ly, Jack Frost Oil Well Service General Manager . EXHIBIT "B' OIL WELL SERVIC --k0# PRODUCTION EQUIPMENT DOUBLE RIGS - 90' -95', 180,000# - 212,000# CAPACITY 166.00 PER HR SINGLE RIG 125.00 PER HR SKID RIGS 175.00 PER HR RIG STANDBY RATE (WHEN SHUT -DOWNS ARE BEYOND OUR CONTROL) 1050.00 PER DAY TOOL TRUCK - WITHOUT RIG 100.00 PER HR FISHING TOOLS 125.00 PER RUN DAMAGED FISHING TOOLS - CHARGED TO CUSTOMER SANDLINE CHARGE: MINIMUM 120.00 PER DAY 0'-5,000' 50.00 PER HR OVER 5,000' 75.00 PER HR ADDITIONAL CHARGE FOR BAILING OR SWABBING IN CORROSIVE ENVIRONMENT (H2S ACID ETC.) CONTRACT LABOR AND TRAVEL TIME TO AND FROM THE JOB SITE FOUR MEN CREW 418.00 PER HR THREE MEN CREW 343.00 PER HR HEAD WELL PULLER 140.00 PER HR HELPER 113.00 PER HR DOUBLE TIME SURCHARGE 3 MEN CREW 145.00 PER HR DOUBLE TIME SURCHARGE 4 MEN CREW 173.00 PER HR EXTRA SUPERVISION 1250.00 PER DAY SUBSISTENCE AWAY FROM HOME PER MAN 150.00 PER DAY DOUBLE TIME WILL BE CHARGED FOR CREWS WORKING ON THE FOLLOWING LEGAL HOLIDAYS: MEMORIAL DAY, JULY 4TH LABOR DAY, THANKSGIVING, CHRISTMAS AND NEW YEARS DAY MINIMUM DAY, FOUR HOURS RIG AND CREW DIL WELL SERVI RELATED EQUIPMENT TRIPLEX PUMP WITH SHAKER, TANK AND 2 HOSES DUPLEX PUMP WITH SHAKER, TANK AND 2 HOSES STANDBY RATE WHEN PUMPS ARE NOT USED GENERATOR HYDRAULIC POWER SWIVEL Coo STANDBY RATE WHEN NOT USED OPERATOR REQUIRED FOR ALL ABOVE EQUIPMENT WHEN NOT USED IN CONJUNCTION WITH O.W.S. RIGS H.T. PRODUCTION SWIVEL 2" X 50' 2000 PSI KELLY HOSE (EXTRA HOSES) PORTABLE HYDRAULIC UNIT OIL WELL SERVICE CO. TRANSPORTATION ELECTRONIC SINGLE GAS H2S MONITOR ELECTRONIC 4 -WAY MONITOR 30 MIN S.C.B.A. AIR PACK ACID PACKAGE, INC. (GOGGLES, RUBBER RAIN SUIT, RUBBER GLOVES) CELLAR PUMP HYDRAULIC MANIFOLD EXTRA CHARGE FOR CELLAR RINGS AND RIG MATS WATER TRAILER SUPPLIES AND RENTAL EQUIPMENT FROM OTHER SOURCES WILL HAVE 15% ADDED FOR PROCESSING. SHAKER BOX WELDER PLASTIC so ADDITIONAL CHARGES FOR DISPOSAL OF SOLIDS AND FLUIDS FROM MUD PUMPS 1200.00 PER DAY 1050.00 PER DAY 300.00 PER DAY 100.00 PER DAY 900.00 PER DAY 300.00 PER DAY 90.00 PER HR 100.00 PER DAY 100.00 PER HOSE 250.00 PER DAY 100.00 PER HR. 100.00 PER DAY 175.00 PER DAY 150.00 PER DAY 75.00 PER MAN 80.00 PER DAY 85.00 PER DAY 60.00 PER DAY 50.00 DAY 100.00 HR 100.00 ROLL TERMS: NET 30 DAYS - INTEREST WILL BE CHARGED ON PAST DUE ACCOUNTS AT THE RATE OF 1.5% PER MONTH. IF A WAIVER OF SUBROGATION IS REQUIRED AN ADDITIONAL CHARGE OF $2.50 PER CREW HOUR WILL BE ADDED *FUELSURCHARGE* FUEL WILL BE BASED ON AVERAGE BEFORE TAX COST OF 1.05 PER GALLON EACH RIG USES 6 GALLONS PER HOUR. EACH 1 CENT INCREASE IN FUEL PRICE OVER LAST YEARS RATE WILL RESULT IN A 6 CENT PER HOUR SURCHARGE. OIL WELL SERVICE WILL CALCULATE FUEL COSTS AT THE END OF EACH MONTH IN ORDER TO DETERMINE THE NEXT MONTHS CHARGES. THIS JUNE 1ST, 2008 LIST SUPERSEDES ALL PREVIOUS PRICES QUOTED