PETROLEUM CLEANUP PREAPPROVAL PROGRAM SOP UPDATE HIGHLIGHTS

Florida Department of Environmental

Protection

May 21, 2012

Charles T. WilliamsEnvironmental AdministratorPetroleum Cleanup Section OneBureau of Petroleum Storage Systems

2

SOP UPDATE HIGHLIGHTS The last Preapproval Program SOP

update was October 2008 The effective date of new update was

May 18, 2012 (templates/rates for WOs signed by CCA > 5/18/12)

Significant SOP changes fall under the categories: • Eligibility/Programs/Priority• Administrative & Accounting• Compensation & Price Schedules• Subcontractors & Vendors• Technical Issues & Deliverables• Miscellaneous Procedures

3

ELIGIBILITY/PROGRAMS/ PRIORITY Deleted reference to Limited Scope

Source Removal with Tank Upgrade (LSRI) in section 1.2.1 and 1.4.5.7 which expired on June 30, 2010• Added Low Scored Site Initiative (LSSI) in

section 1.4.5.7

Corrected IVPSSRP cease operation date from 1/1/95 to 1/1/85

Added to section 1.2.6 – significant/recurring non-compliance with storage system regulations may result in loss of owner/RP’s right to select the cleanup contractor (new Notification of Transfer to State Cleanup letter in Appendix D.1)

4

ELIGIBILITY/PROGRAMS/ PRIORITY Added new section 1.4.6 – Site

Characterization Screening describing the new screening process in priority order• Draft guidance and reporting forms in Appendix

D.7• PCPP cost share requirement waived for

screening phase (SRFA participation case-by-case, if authorized will share cost per agreement)

• Deductibles postponed to closure under screening phase or standard priority funding threshold

• Measured pace over FY, once assigned to SM, no switch of contractor during screening phase only

• Authorized expenditures limited to assessment, testing and evaluation for closure options, excludes cleanup

5

ADMINISTRATIVE & ACCOUNTING Contractor Selection/Designation

• Added to section 2.1 - contractor selection is limited to State cleanup when Owner/RP is unable to pay for items required by eligibility

• New guidance memo in Appendix D.2 (COs/judgments)

• Corrected CDF form to match SOP - no more than two switches in any 12 month period

• CDFs for LSSI sites must have cover letter or otherwise clearly indicate intent for LSSI

Updated WO/TA Routing Slips in Appendix D

• BPSS Encumbrance RS for Unexecuted (reg & split)• BPSS Approved for Encumbrance RS for Executed• BPSS Invoice Routing Slip

6

ADMINISTRATIVE & ACCOUNTING

Disclosure of Contractor Owned Property (section 7.15) - clarified text to match existing WO terms & conditions• Contractors must disclose any financial or

ownership interest they (or any entity that they have an ownership interest in or that have an ownership interest in them) may have in the cleanup site in writing to the Site Manager in their Work Order proposals prior to execution of the Work Order stating the specific nature of the interest in the property and who holds that interest.

7

ADMINISTRATIVE & ACCOUNTING

Invoicing Guidance (Section 6.7)• Updated text and Invoice Checklist/Guidance in

Appendix B.3 for latest F&A and DFS requirements

• Clarified that final invoices for PPA WOs do not have to wait for formal technical approval of final deliverable

• Removed notarization requirement from Contractor Release of Claim

• Noted the preapproval exemption to 1% MFMP transaction fee and added copy of MFMP exemption approval form in Appendix D.3

• Added new example Irrevocable Assignment and Transfer of Account Receivable Form in Appendix B.3

8

ADMINISTRATIVE & ACCOUNTING

Added reference and link in section 6.7 to:• MFMP web site for State vendor registration

• DFS web site for registration of Substitute FormW-9

• DFS web site for vendor payment history• DEP web site for work order and invoice

information

Deleted Table 6-3. Invoice Component Summary and Table 6-4. Key Invoice Review Dates (obsolete, now covered in checklist)

Added new section 6.7.11 - Unencumbering Funds From Work Orders & Task Assignments• New Unencumbrance Memo to F&A template in

Appendix B.3.8

9

ADMINISTRATIVE & ACCOUNTING

Capital Equipment Property Reporting & Capitalization Forms (Appendix G.3)• New forms break out treatment system cost into

vendor cost, contractor markup, total cost, DEP cost share (%) and DEP cost to facilitate the BF&A reporting requirements

• Prorate tax & shipping into vendor cost across multiple forms, if applicable

Audits (Section 6.6.5) • Per Fla. Dept. of State General Records Schedule

GS1-SL, supporting contractor records required for 5 years after final payment for work order or longer to match contractor’s retention schedule or Federal retention schedule if Federal funds used

10

ADMINISTRATIVE & ACCOUNTING

Access to Public Records (Section 3.5.6) • New, reflects existing provision in WO terms &

conds

• All documents, reports, correspondence, invoices, billings, and other written or electronic records related to a preapproval WO are considered public records

• Per Chapter 119, F.S., contractors are required to maintain and allow unrestricted access to such public records

• Special requirements for professional land surveys, maps & tables, and as-built drawings (see section 6.4.5)

Scanner Sensitivity (sections 3.4 & 3.5)

• Use dark colored ink (excluding purple) and avoid colored highlighting

11

COMPENSATION & PRICE SCHEDULES Fixed Cost Templates vs. Maximum

Compensation Schedules (Sections 5.5 & 5.8)• Fixed Cost Templates, Appendix A.1Personnel Categories, Bare Labor Rates & MultipliersDefined Scopes of Work (71)Equipment Kits (18)Mobilization & Per Diem Contractor Markup (%) & General SA Report

(%)

• Maximum Compensation Schedule, Appendix A.2Sub & Vendor-Actual Cost Not to Exceed (plus

markup)Laboratory Analytical RatesEquipment Rental Rates (individual) Drilling RatesNo Change in Invoice Requirements (>$2,500 or

+CO)

12

COMPENSATION & PRICE SCHEDULES Cost of Living Rate Adjustment

• Last adjustment February 2008 using US Dept. of Labor CPI-U-South average annual cost index for 2007

• Change in CPI-U-South average annual index for 2011 compared to 2007 used for all fixed cost templates and most maximum comensation schedule rates

Adjustment = + 9.11%

• Drilling rate maximum compensation schedule was adjusted in September 2011 using CPI-U-South average index data for first half of 2011, now bring up to others

Adjustment = + 0.63%

• Lab rate maximum compensation scheduleAdjustment = - 10% Exception for Priority Pollutant Extractable

Organics

13

SUBCONTRACTORS & VENDORS Switching of Subcontractors &

Vendors (Section 5.9.3)• Added requirement in SOP (pre-existing in WO

terms & conditions) that first tier subs and vendors may not further subcontract, assign or transfer any work > $2,500 without prior written notice to and/or approval from DEP using VCO (notice if covered by FCT or MCS)

• All such requests from subs & vendors must be made through prime contractor

• Under certain conditions when low quote sub/vendor cannot perform/provide, may use next lowest if cost is within 5% or agree to match low quote

• Cannot substitute entity not in original solicitation, if ∆ in scope, requires new solicitation (incl. same parties)

14

SUBCONTRACTORS & VENDORS

Soil Source Removal Quote Form & Instructions (Sections 5.9.3 & 9.4)• New version effective 12/1/11 (reformatted

‘Activity Total’ cell on 4/16/12)

• Not for in-house (all or partial) SRs (BU spreadsheet)

Payment and Markup of Subs/Vendors (Sections 5.5 & 5.8)

• Based on Actual Cost (not to exceed MC schedule)

Drilling Rate Schedule OK for Auger Attachment Work Only Using DPT Rig (Sections 5.8.1, 5.9 & 5.10)• DPT with Auger Memo, January 2011, Appendix

A.2.4

15

TECHNICAL ISSUES & DELIVERABLES

Analytical Requirement for NPDES Permits (Section 7.6.2)• New docs in Appendix G.6 for clarification of

analytical requirements of generic NPDES permit for petroleum contaminated sites and copy of generic permit

Analytical Testing for Priority Pollutants (Section 9.2)

• New guidance document in Appendix H.9 on priority pollutant volatile and extractable organics

P.E. On-Site Oversight (Section 5.6.3)• Approved only for licensed professional engineers,

others providing feedback to P.E. not on site covered by standard oversight

16

TECHNICAL ISSUES & DELIVERABLES

Institutional Controls (Section 9.3.5 & 11.3)

• Updated web link to DWM IC info, forms and registry

• New DEP acknowledgement of intent to propose institutional controls letter in Appendix I.5.3

Deliverables (Sections 6.4.5 & 7.6)• Teams 1-6 and select LPs - 1 copy paper and 1

copy electronic copy (.pdf), up to 10 MB by e-mail

• Select deliverables also required in original updatable electronic format

Professional land survey, typically AutoCADD (original and each update)

Maps & tables and as-built drawings (upon DEP request)

17

TECHNICAL ISSUES & DELIVERABLES

Technical Review Comments (section 7.16)

• Requires comments and concerns resulting from review of technical documents to be in writing and sent to file (meetings are OK but in lieu of comments)

• Referenced new DWM guidance for requests for additional information (RASAs) and remedial action plan addenda (RAPAs) in Appendix H.1

Transfer of Responsibility of MWs for Use on Non-Eligible Discharges (Sections 1.2.5 & 9.3.7)• MW transfer agreement/cover letter in Appendix

C.10

LSSI & LTNAM (sections 1.2, 1.4 & 9.8)

• Procedures in Appendix C.13 & C.14

• New LTNAM plan template

18

MISCELLANEOUS PROCEDURES

New section 3.8 – Photographic Documentation of Site Structures and Improvements• Contractors (and site managers during

inspections - section 7.1) required to document baseline condition prior to commencement of site rehabilitation activities

• Include description and photos in technical reports and note specific pre-existing damage

• General and close up photos shots from all four compass points of buildings, driveways, sidewalks, landscaping, etc.

• In contractors best interest, DEP will generally defer alleged claims of damage to contractor and their insurance provider

19

MISCELLANEOUS PROCEDURES

Off-Site Access (section 7.9)• New separate sample access agreements for pre-

approval and State cleanup contractors and instructions in Appendix G.7

• Very different-statements in SC version only apply to State selected contractors

• SOP text and appendices stress that these sample agreements are NOT required by DEP and only offered as a resource

20

MISCELLANEOUS PROCEDURES

Off-Site Access (continued)• Agreement should include a clear provision for prior

notification to the contractor before commencement of any construction or other site work that may damage or destroy any part of the cleanup related assets installed at the property (typically monitoring wells)

• So that the contractor has an opportunity to take necessary actions to remove, protect, properly abandon and/or repair or replace the asset, as applicable, at no cost to the property owner.

• It is helpful to explain to the property owner that such actions are necessary to ensure that damaged wells or borings are not left to act as open conduits that may spread contamination from all sources and violate well permits,

21

MISCELLANEOUS PROCEDURES

Repair or Replacement of Damaged or Destroyed Assets (section 7.17)

• Concerned about monitoring or remediation wells that are not excavated in their entirety or properly abandoned prior to construction

• Results in open conduit to the aquifer and potential spread of contamination

• Generally repair/replacement of on-site assets are the responsibility of the site owner or operator (though they may have recourse with others)

• Generally the cost to remove/repair/abandon/replace off-site assets is considered an eligible expense (though OS owner or operator has prior notification responsibility)

22

MISCELLANEOUS PROCEDURES Capital Equipment Lease Purchase

and Tracking (section 7.4) • Reformat, revision and renumber• Requirement for contractors to check for State-

owned equipment prior to purchase of new equipment or lease

• Capitalizing equipment as systems not components

• Special procedures for replacement parts previously capitalized

• New property reporting form requirements• Must confirm status of State-owned equipment

whenever change in contractor or site manager• Equipment transfer cost to the site sending to

storage and to the site receiving transfer from another site

23

MISCELLANEOUS PROCEDURES

Clarification in section 6.3.3 – Overtime • Oversight Template, like all other templates

except for stand alone personnel rates, is not subject to consideration for overtime

• Use of backup spreadsheet is not appropriate and does not justify overtime for Oversight

• Overtime, when allowed for non-professional personnel, is based on individual not classification and requires specific employee time records as backup

24

MISCELLANEOUS PROCEDURES

Revised Table 9-1. Technical Report and Deliverable Related Time Frames• Deleted references to 62-770• Added numerous other deliverable and review

times used in preapproval

- End –

Questions?