RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 | 1

City of

Long Beach Request for Qualification Number - ER-23-343

Oil Liability Assessment Study

RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 |

Overview

Summary

Long Beach Energy Resources is seeking qualifications and price estimates to perform a study to better understand the various regulatory, legal, financial and policy options associated with undertaking any action(s) to end existing oil and gas operations within the City.

Key Dates

Release Date: December 27, 2023

Optional Pre-Proposal Meeting: 12:00 PM January 10, Questions Due to the City: 11:00 AM, January 24, Proposals Due: 11:00 AM, February 21, 2024

The City reserves the right to modify these dates at any time, with appropriate notice to prospective Contractors.

Proposal Information

Instructions for what to include in your proposal and how to submit it are detailed in Section 4.

Proposals must be submitted electronically via

LongBeachBuys.com.

Official Contact

Janet Kariuki

RFPpurchasing@longbeach.gov

All communication with the City related to this RFQ must be directed to the contact listed above.

mailto:rfppurchasing@longbeach.gov

RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 |

Contents

1 The Opportunity

1.1 Project Summary

1.2 Background

1.3 Goals

1.4 Award Terms

2 Scope of Work

2.1 Description of Services

2.2 Performance Metrics & Contract Management

2.2.1 Performance Metrics

2.2.2 Contract Management

2.2.3 Contract Payment

3 How We Choose

3.1 Minimum Qualifications

3.2 Evaluation Criteria

4 Proposal Instructions & Content

4.1 Timelines & Instructions

4.2 Proposal Content

4.3 Narrative Proposal Template

5 Terms & Conditions

5.1 Acronyms/Definitions

5.2 Solicitation Terms & Conditions

5.3 Contract Terms & Conditions

5.4 Additional Requirements

5.5 Protest Procedures

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1 The Opportunity

1.1 Project Summary

The City of Long Beach (City) is seeking qualifications and price estimates to perform a study to better understand the various regulatory, legal, financial, and policy options associated with undertaking any action(s) to end existing oil and gas operations within the City. This would include those oil and gas operations that the City currently oversees in its role as trustee for the State of California (State) and Unit Operator in the Wilmington Oil Field, as well as those of all other oil and gas operators within the City.

1.2 Background

Oil has long been a part of the history of Long Beach dating back to 1921, when oil deposits were discovered in Signal Hill, followed by the 1932 discovery of the Wilmington Oil Field, the majority of which is within the State’s tidelands. The “tidelands” are defined as the ocean side of the shoreline at mean high tide and extend three miles out into the ocean at which point the ocean becomes federal waters per the Outer Continental Shelf Act of 1953. The

“uplands” are the beach and the land above the mean high tide line.

In the early 1900s the State granted the tidelands (including much of the Wilmington Oil

Field) to the City, as trustee for the State, for development. Years later, after a challenge to the City's rights to conduct oil and gas operations, the California Supreme Court ruled that the conveyance of the tidelands by the State to the City included mineral interests and that the development and production of oil and gas from the tidelands was compatible with the trust.

The City explored the area east of the Harbor District in 1961 and confirmed that the

Wilmington Oil Field was contiguous with the eastern City limits. In 1962, Long Beach voters approved a referendum for offshore oil and gas development and the Petroleum Properties

Administration was created to manage oil and gas activities outside of the Harbor district.

Chapter 138 of the Statutes of 1964 was enacted by the State legislature which defined the duties and responsibilities of the City and the State Lands Commission (SLC) for the exploration and operations of the eastern portion of the Wilmington Oil Field, to be known as the Long Beach Unit (LBU). In the same year, the City Charter was amended, transferring authority over oil and gas production and all subsidence control operations to the City

Council and City Manager, acting through the newly created Department of Oil Properties

(DOP).

In 1965, a consortium of oil companies consisting of Texaco, Humble, Union, Mobil, and

Shell (collectively THUMS), was selected as the City's field contractor for the LBU. This contract would run for 35 years and enable the City, as trustee for the State, to transfer

RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 | 4 approximately 96% of the net profits to the State, less costs as stated in Chapter 138. Since then, there have been several field contractor and ownership changes in the oil field.

Early in 1990, the City’s field contractor at the time, Atlantic Richfield Company (ARCO), approached the City and the State with a proposal to develop and fund an optimized waterflood program for the Wilmington Oil Field for a share of the ensuing incremental increase in oil production. Based on the merits of the proposal, the State enacted Chapter

941, Statutes of 1991, authorizing the City, State, and ARCO to enter into an Optimized

Waterflood Program Agreement (OWPA). The OWPA became effective in 1992 and extended the contract term from 35 years until the end of field life.

As described above, the City is very unique from other California cities in that it is not only the trustee for the State for the oil and gas operations in the Wilmington Oil Field but is also the Unit Operator. The responsibilities for the City’s role are governed by several state statutes, unit agreements, operating agreements, and contractor agreements. These agreements are complex and impose multiple obligations on the respective parties.

The City derives significant revenue from oil and gas operations. Millions of dollars of tidelands oil and gas revenues are used within the three-mile zone seaward from the mean high tide line for tidelands-related purposes, while millions of dollars of uplands oil and gas revenues are placed in the City’s general fund for general use. Nearly $12 million annually of existing general fund City services are funded directly by revenues tied to the production of oil and gas including services provided by the Fire Department, Police Department, Office of Youth Development, and the implementation of the City’s Climate Action Plan.

In addition to the direct stream of oil and gas production revenue, the City benefits from other revenues associated with oil and gas production that don’t pass through the City’s

Energy Resources Department (ER) accounting such as:

• Utility Users Tax - Electricity, Gas, Water

• Barrel Tax - Base ($0.15/bbl), Prop H, Measure US

• Sales Tax

• Property / Mineral Tax

• Reclaimed Water Purchases from LB Utilities Department

ER manages the oil and gas assets located within the Wilmington Oil Field, including oversight of subsidence control operations, in a unique public-private partnership in trust for the SLC and approximately 6,000 individual mineral interest (townlot) owners. ER is also

RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 | 5 involved, to a lesser extent, in oil and gas operations in which the City has limited financial interests such as the Signal Hill East and West Units, Recreation Park, and Marine Stadium.

Other oil and gas operations also exist throughout the Long Beach area for which the City has no direct operational or financial oversight. Based on recent City barrel tax information, there are approximately seventeen other oil and gas operators located within the City with existing oil and gas production. These operators pay a tax to the City for each barrel of oil produced on a quarterly basis in addition to an annual property tax based on the Los

Angeles County Assessor’s valuation of their oil and gas reserves.

1.3 Goals

The goal is to assist Long Beach Energy Resources with obtaining price estimates to perform a study on regulatory, legal, financial, and policy options associated with any actions to end existing oil and gas operations within the City of Long Beach. This will include the oil and gas operations that the City currently oversees in its role as trustee for the State of

California and unit Operator in the Wilmington Oil Field, as well as all other oil and gas operators within the City.

1.4 Award Terms

This contract will be for a period of one year with the option to renew for two additional one-year periods. The total contract term will not exceed three years.

2 Scope of Work

2.1 Description of Services

Long Beach Energy Resources is requesting qualifications from potential vendor(s) to conduct a study to better understand the various regulatory, legal, financial and policy options associated with undertaking any action(s) to end existing oil and gas operations within the City. In recent years, several California cities have undertaken studies to determine how to eliminate oil and gas production in their jurisdictions. It should be noted that none of these cities have the unique oversight role, multiple contractual obligations, or significant fiscal liabilities that the City has as trustee for the State and Unit Operator for the oil and gas operations in the Wilmington Oil Field.

The City recognizes that oil and gas production is not in its long-term future. Any wind-down requires meticulous planning, funding of abandonment responsibilities, and recognition of the legal commitments entered into by previous legislative bodies. Starting in 2018, the City has been accelerating the amount it reserves annually for its share of the Wilmington Oil

Field’s abandonment liability. The City intends to have its share of that abandonment

RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 | 6 liability fully funded (totaling $154 million) by approximately 2035, which is ten years before the deadline to phase out oil and gas extraction in California directed by Governor Newsom.

The revenues generated from today’s oil and gas operations to fund future abandonment liabilities are at risk from the evolving legislative environment at the state and local levels and could undermine the City’s and the State’s current efforts to fully fund their respective abandonment responsibilities. Significant changes to current planning timelines could ultimately burden taxpayers with the responsibility to abandon the wells, rather than appropriately placing that burden on the oil field.

Similar to the actions undertaken by other cities, the City’s Climate Action and

Environmental Review Committee recommended to the Mayor and City Council on June 21, 2022 that the City Manager be directed to take the following actions:

• Request inclusion in the County and/or City of Los Angeles amortization studies or work with consultants to conduct a similar study and report back with the cost of doing so;

• Direct a percentage of surplus oil revenues to the abandonment fund and any other costs associated with abandonment, alongside important one-time capital projects;

• Direct City staff and the State Legislative Committee request the State to fully fund their portion of the abandonment liability;

• Work with South Coast Air Quality Management District (AQMD) to prioritize leakage mitigation and detection, emissions control, and carbon capture measures;

• Work with labor organizations in the transition of workers from the local energy sector;

• Work with the City Attorney and State Lands Commission and other applicable state entities to determine the legal options available to the City to end new drilling as soon as is legally defensible, including studying prohibiting new oil and gas extraction in all zones and, studying changing oil and gas extraction to a legal nonconforming use in all zones; and, Request the City Manager report back with timelines and costs associated with the above recommendations as well as potential funding streams for them.

Based on the above recommendations, a new investment item was added to the City’s Fiscal

Year 2023 (FY23) budget to prepare an oil liability assessment study to better understand the fiscal liability and feasibility considerations associated with ending oil and gas production in the City. Understanding the financial liability and other considerations

RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 | 7 associated with ending oil production before the economic life of an oil field is a complicated task as there are significant and varied issues to consider. These issues may include, but are not limited to, the potential fiscal impacts associated with abandonment both in terms of cost and revenue loss, the value of any remaining oil in the ground

(reserves) that would be unable to be recovered due to early abandonment, the City’s existing contractual obligations, and potential condemnation/takings costs. A study is needed to understand the various considerations and multifaceted impacts, provide analysis, and identify potential next steps and implications of ending oil and gas production early. Due to the size and complexity of this topic, the City will engage with a consultant to assist in developing a comprehensive RFQ for the study, including scope and deliverables desired.

Contract Deliverables: The key deliverables from this study are anticipated to be:

1. Outlining the various regulatory, legal, financial, and policy options associated with ending all oil and gas production within the City.

2. Determine the financial implications to all stakeholders, both now and in the future, that result from ending all oil and gas production within the City. The study will seek to understand the financial considerations such as:

a. Inadequate funding of the City’s and other oil operator’s asset retirement obligations (AROs)

b. Loss of current revenues to the City budget from oil operators and oilfield service providers

c. Information on the costs associated with City operated oil assets after cessation of oil and gas production

d. Compensating those with financial interest in the oil and gas producing properties for their potentially taken reserves (economic value of what oil and gas reserves remain to be recovered)

e. Refunds of past payments to State or local governments for leases, permits, taxes paid on oil and gas reserves that are potentially taken

f. Discuss any potential legal costs associated with litigation that could result from any action by the City that might allegedly constitute a taking

3. Integration of the legal implications identified by the City Attorney’s Office into the study.

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4. Include a review of what other cities have done to end existing oil and gas production, framed by the other city’s financial, legal, and regulatory situations.

5. Estimated costs to develop a comprehensive RFQ that describes in detail the issues identified in items 1, 2, 3, and 4 above.

6. An estimated timeline / Gantt Chart to develop all tasks included in the RFQ mentioned in item 5 above.

7. Development of the RFQ’s scope to include all tasks mentioned in item 5 above. Both a final report and a summary suitable for presentation to City Council will be created to describe the RFQ’s scope.

8. A list of recommended consultants that could develop the RFQ.

9. Independently verify current abandonment liability estimate for the City’s and State of California’s (State) operations in the Wilmington Oil Field.

Other implications as to the cost and complexity of ending oil and gas production might be drawn from other areas in California where oil production has ended, such as the Rincon facility located in offshore Ventura County. Due to the size and complexity of this topic, the

City intends to engage a qualified consultant or consultants to provide the deliverables mentioned above.

APPENDIX A

Appendix A: Oil Code Map for Long Beach/Signal Hill

2.2 Performance Metrics & Contract Management

2.2.1 Performance Metrics

The table below highlights the targets that will be tracked and reviewed collaboratively with the Awarded Contractor during the contract. This list is an indication of the performance metrics of interest to the City, and is not exhaustive or final. As a part of a response to this

RFQ, Proposers may propose additional or alternative performance metrics to be tracked on a regular basis. The final set of performance metrics and frequency of collection will be negotiated by the successful Proposer and the City prior to the finalization of an agreement between parties, and may be adjusted over time as needed.

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METRIC DESCRIPTION TARGET DATA SOURCE

1. Financial Implications List of financial impacts to all stakeholders

Stakeholder list with impacts that contains all expected stakeholders and some less obvious stakeholders and their anticipated areas of impact.

ER staff feedback and review of deliverables

2. Other cities effort to end oil and gas production.

Details on other cities effort to end oil and gas production

List of other cities and key learnings from each

ER staff feedback deliverables

3. Cost Estimate Cost Estimate to develop RFQ

Cost Estimate that includes work required to create an RFQ to detail the legal, financial, and policy options to end oil and gas production in the

City. Also cost estimate to develop detailed financial impacts on all stakeholders.

ER staff feedback and review of deliverables

4. Gantt Chart Timeline / Gantt

Chart to develop

RFQ mentioned above

Timeline / Gantt

Chart

ER staff feedback and review of deliverables

5. Consultants List of consultants that could develop RFQ

List of

Consultants with contact information

ER staff feedback deliverables

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6. Report and Presentation Develop a final report and summary presentation suitable for presentation to

City Council

Final Report and

PowerPoint presentation

ER staff feedback deliverables.

7. Abandonment Liability Independently verify current abandonment liability for City and State operations in the

Wilmington Oil field

Abandonment liability summary included in the report

ER staff feedback deliverables.

2.2.2 Contract Management

Communication and Management: Implementation of the contract should be a partnership between Long Beach Energy Resources and the Awarded Vendor. ER and the

Awarded Vendor will meet monthly, at a minimum, but can meet more regularly as needed.

A single point of contact at Long Beach Energy Resources will be assigned to provide guidance to the vendor as needed during the project. We are seeking a vendor that can work independently to provide the required deliverables with limited involvement from City of Long Beach staff.

2.2.3 Contract Payment

The City of Long Beach issues payment based upon services rendered. After a contract is finalized and work is performed, the Contractor should invoice the City. The City will remit payment within 30 calendar days of being billed.

3 How We Choose

3.1 Minimum Qualifications

Proposers must meet the following minimum qualifications to be eligible:

• Qualification to conduct business in the City

• Not having been debarred by Federal, State, or local government

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• Mandatory experience in delivering at least one (1) project similar scope, as well as abandonment and/or facility decommissioning experience. References and case studies are encouraged.

3.2 Evaluation Criteria

Proposals shall be consistently evaluated based upon the following criteria: After an initial scan for completeness, proposals will be evaluated by a selection committee composed of

City Employees from various departments such as Energy Resources, Utilities, Financial

Management, and other departments. All proposals will be scored and ranked.

The selection committee will be tasked to evaluate the proposals on the demonstrated understanding of the California Oil Industry, abandonment liability, previous studies of similar scope, demonstrated expertise in each of the deliverable disciplines, and the originality of the proposal.

Proposals shall be consistently evaluated based on the following criteria:

CRITERIA

• Qualifications are defined as: professional and academic experience of project team; tenure and financial viability of contractors to sustain potential contract; co milestones and recent successes.

25 points

• Work Methodology: Demonstrate understanding of requirements, responsiveness, and ability to meet requirements of Long Beach

Energy Resources.

25 points

• Staffing: Ability to provide staff dedicated to assessment. 20 points

• References: Evidence of success through references and ability to demonstrate previous project performance and experience.

20 points

• Reasonableness of Cost 10 points

Total Possible Score 100 points

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4 Proposal Instructions & Content

4.1 Timelines & Instructions

MILESTONE

TIME

(PACIFIC)

& DATE LOCATION / ADDITIONAL INFORMATION

Release date December

27, 2023

Pre-Proposal Meeting 12:00 pm

January.

10, 2024

• The meeting will take place at 2400 E Spring

Street, Long Beach, CA 90806, Building 570, 2nd

Floor Conference Room. Visitor parking is available by front entrance off Junipero Ave or by the Clean Energy fuel pumps.

• RSVPs are requested, but not required. RSVP via emailing RFPpurchasing@longbeach.gov.

• Proposers are strongly encouraged to participate in a Pre-Proposal Meeting and Site

Visit in person. But may attend the Pre-Proposal

Meeting by electronic means via Microsoft

Teams(see information below).

Join on your computer, mobile app or room device

Click here to join the meeting Meeting ID: 240 570 650 341

Passcode: kdPGYQ Download Teams | Join on the web

Or call in (audio only) +1 213-279-1690,,667197788# United States, Los

Angeles

Phone Conference ID: 667 197 788#

Find a local number | Reset PIN

Questions due to the

City

11:00 am

January.

24, 2024

• Submit all inquiries via email to

RFPpurchasing@longbeach.gov

Posting of the Q&A February

7, 2024

• Responses to the questions will be posted on

LongBeachBuys.com.

Proposals due 11:00 am

February

21, 2023

• Proposals should be submitted electronically via

LongBeachBuys.com.

• Late proposals, or proposals submitted through other channels will not be accepted.

mailto:rfppurchasing@longbeach.gov https://teams.microsoft.com/l/meetup-join/19%3ameeting_MGQ0YmRkNDgtN2I0Mi00ZjJmLWEwYzctNTYwM2QyOWY5Zjcx%40thread.v2/0?context=%7b%22Tid%22%3a%22313f11c3-4268-4f6a-8d3b-c7e650183e78%22%2c%22Oid%22%3a%22e484a71c-b072-4f7c-87b6-a74fc0f0ad5a%22%7d https://www.microsoft.com/en-us/microsoft-teams/download-app https://www.microsoft.com/microsoft-teams/join-a-meeting tel:+12132791690,,667197788 https://dialin.teams.microsoft.com/9592d373-70e6-4426-b0db-98f05eeab206?id=667197788 https://dialin.teams.microsoft.com/usp/pstnconferencing mailto:rfppurchasing@longbeach.gov file:///C:/Users/meid/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/X47PW9A6/LongBeachBuys.com file:///C:/Users/meid/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/X47PW9A6/LongBeachBuys.com

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• Proposers are responsible for submitting their proposals completely and on time.

o Proposers will receive an e-bid confirmation number with a time stamp from LongBeachBuys.com indicating that the proposal was submitted successfully. The City will only receive proposals that were transmitted successfully.

o For technical support, email or call the

City during normal business hours at

LBPurchasing@longbeach.gov or (562)

570-6200.

Evaluation of Narrative

& Cost Proposals

TBD • An Evaluation Committee will review Narrative

& Cost Proposals to select the proposal that best meets the needs of the City.

• Evaluations will be conducted using a methodology derived from the evaluation criteria listed in Section 3.2.

Interviews TBD • The City may interview or request demos from none, one, some or all Proposers.

4.2 Proposal Content

Complete proposals will include the following. Proposers are encouraged to use this table as a checklist to ensure all components are included in their proposal.

PROPOSAL

☐ Narrative

Proposal

The Narrative Proposal should be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFQ. The proposal should be presented in a format that corresponds to and references section 2, Scope of Project, Company Background, and

References. Guidance on preparing a Narrative Proposal is detailed in Section 4.3.

☐ Cost Proposal The Cost Proposal should be prepared separately. The narrative proposal will be reviewed first and then the cost proposal.

Please upload separately but submitted together.

PROPOSAL APPENDICES

file:///C:/Users/meid/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/X47PW9A6/LongBeachBuys.com mailto:LBPurchasing@longbeach.gov

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☐ Financial

Stability

Proposers should include one or more of the following financial statements to provide the City with enough information to determine the financial stability of the Proposer and subcontractor.

• Financial Statement or Annual Report

• Business tax return

• Statement of income and balance sheet

☐ Other Addenda

(if applicable)

Colored displays, promotional materials, and other collateral are not necessary or desired. However, if a complete response cannot be provided without referencing supporting documentation, it may be provided as an addendum clearly cited in the Narrative or Cost Proposal.

MANDATORY ATTACHMENTS | The following are included as Attachments in Long

Beach Buys. They must be signed by the individual legally authorized to bind the

Proposer.

☐ A. Authorization & Certification

☐ B. Equal Benefits Ordinance (EBO) Form

Attachments Which May be Submitted Upon Award | Upon award, Awarded

Contractors will be required to submit the following. We encourage you to take note of these requirements, and where possible, include available information as part of your proposal to expedite processing.

☐ C. W-9

☐ D. Business License

☐ E. Proof of Registration with the California Secretary of State

☐ F. Certificates of Insurance

☐ Contact Information | Ensure your organization’s profile is up to date in Long Beach

Buys, including an email address, phone number, and for any classifications you may qualify for.

4.3 Narrative Proposal Template

Proposers should develop a narrative proposal that includes the information outlined in the proposal template. An editable version of the template below has been posted to Long

Beach Buys. Proposers may complete the editable template, in lieu of developing a proposal and submit it as their narrative proposal.

Organizational Capacity & Experience

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PROPOSER CONTACT INFORMATION

Organization

Company Name

Company Address

Federal Tax ID Number

Website

Authorized

Representative

Name

Title

Email Address

Phone Number

Other Point of

Contact (if required)

Name

Title

Email Address

Phone Number

PROPOSER CAPACITY & EXPERIENCE

What type of enterprise is the organization?

☐ Non-Profit

☐ Sole Proprietorship

☐ General Partnership

☐ Corporation

State and Date of incorporation:

☐ Limited Liability Company

☐ Other _________________________________

Please describe why the organization is qualified to provide the services described in this RFQ (1-2 paragraphs).

How many employees does the organization have in total and residing in Long Beach?

Where are the representative(s) that would service the City’s account located?

REFERENCES

Reference 1

Company

Project Manager

Phone Number

Project Description

Project Start and

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End Dates

Reference 2

Company

Project Manager

Phone Number

Project Description

Reference 3

Company

Project Manager

Phone Number

Project Description

Reference 4

Project Manager

Phone Number

Project Description

Reference 5

Project Manager

Phone Number

Project Description

SUB-CONTRACTOR CONTACT INFORMATION

Does the proposal include subcontractors?

☐ Yes

☐ No

If applicable, provide the following for all subcontractors included in this proposal.

Organization Company Name

Company Address

Authorized

Representative

Name

Title

Email Address

Phone Number

Name

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Other Point of

Contact (if required)

Title

Email Address

Phone Number

SUBCONTRACTOR CAPACITY & EXPERIENCE

What type of enterprise is the organization?

☐ Non-Profit

☐ Sole Proprietorship

☐ General Partnership

☐ Corporation

State and Date of incorporation:

☐ Limited Liability Company

☐ Other _________________________________

Which specific requirements of this RFQ will the subcontractor perform?

Is the subcontractor registered with the

California Department of Industrial

Relations? If yes, provide registration number.

Please describe why the organization is qualified to provide the services described in this RFQ (1-2 paragraphs).

Please describe the length of time the organization has been providing the services described in this RFQ (1-3 sentences).

How many employees does the organization have nationally, locally, and residing in Long

Beach?

Where are the representative(s) that would service the City’s account located?

Method of Approach

1. Please describe why the Proposer is qualified to provide the services described in this RFQ.

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2. Explain the logic model for how they will achieve the target outcomes/outputs of the RFQ.

3. Workplan: summarize your proposed workplan with timelines for key milestones.

4. Explain how the proposal will meet this RFQ objective or criterion.

5. For risks associated various regulatory, legal, financial and policy options, explain how your proposal will mitigate or address them.

6. Please outline what will be needed from the City to implement the contract successfully.

Communications & Reporting

1. How will your organization report its performance to the City and coordinate with the City to meet objectives?

2. Does your organization have an information management system or equivalent that is accessible by clients to track work orders, invoices, and other reporting?

5 Terms & Conditions

5.1 Acronyms/Definitions

1. Awarded Contractor: The organization/individual that is awarded a contract with the

City of Long Beach, California for the services identified in this RFQ.AROs: Asset

Retirement Obligations

2. Awarded Contractor: The organization/individual that is awarded a contract with the

City of Long Beach, California for the services identified in this RFQ.

3. City: The City of Long Beach and any department or agency identified herein.

4. Contractor / Proposer: Organization/individual submitting a proposal in response to this RFQ.

5. Department / Division: City of Long Beach, Energy Resources

6. DOP: Department of Oil Properties

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7. ER: Long Beach Energy Resources

8. Evaluation Committee: An independent committee comprised solely of representatives of the City established to review proposals submitted in response to the RFQ, evaluate the proposals, and select a Contractor.

9. LBU: Long Beach Unit

10. May: Indicates something that is not mandatory but permissible.

11. OWPA: Optimized Waterflood Program Agreement

12. RFQ: Request for Proposals.

13. Shall / Must: Indicates a mandatory requirement. Failure to meet a mandatory requirement may result in the rejection of a proposal as non-responsive.

14. Should: Indicates something that is recommended but not mandatory. If the

Proposer fails to provide recommended information, the City may, at its sole option, ask the Proposer to provide the information or evaluate the proposal without the information.

15. SLC: State Lands Commission

16. Subcontractor: Third party not directly employed by the Proposer who will provide services identified in this RFQ.

5.2 Contract Terms & Conditions

1. The City reserves the right to alter, amend, or modify any provisions of this RFQ, or to withdraw this RFQ, at any time prior to the award of a contract pursuant hereto, if it is in the best interest of the City to do so.

2. The City reserves the right to request clarification of any proposal term from

Proposers.

3. The City may contact the references provided; contact any Proposer to clarify any response; contact any current users of a Proposer’s services; solicit information from any available source concerning any aspect of a proposal; and seek and review any other information deemed pertinent to the evaluation process.

4. The level and term of documentation required from the Proposer to satisfy the City will be commensurate with the size and complexity of the contract and Proposers should submit accordingly. If the information submitted by the Proposer, or

RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 | 20 available from other sources, is insufficient to satisfy the City as to the Proposer’s contractual responsibility, the City may request additional information from the

Proposer or may deem the proposal non-responsive.

5. The City reserves the right to waive informalities and minor irregularities in proposals received.

6. The City reserves the right to reject any or all proposals received prior to contract award.

7. The City’s determination of the Proposer’s responsibility, for the purposes of this

RFQ, shall be final.

8. Unless otherwise specified, the City prefers to award to a single Contractor but reserves the right to award contracts to multiple contractors.

9. The City shall not be obligated to accept the lowest priced proposal, but will make an award in the best interests of the City of Long Beach after all factors have been evaluated.

10. If the City receives a single responsive, responsible proposal, the City may request an extension of the proposal acceptance period and/or conduct a price or cost analysis on such proposal. The Proposer shall promptly provide all cost or pricing data, documentation and explanation requested by the City to assist such analysis. By conducting such analysis, the City shall not be obligated to accept the single proposal.

The City reserves the right to reject such proposal or any portion thereof.

11. Any irregularities or lack of clarity in the RFQ should be brought to the Purchasing

Division designee’s attention as soon as possible so that corrective addenda may be furnished to Proposers.

12. Proposals must include any and all proposed terms and conditions, including, without limitation, written warranties, maintenance/service agreements, license agreements, lease purchase agreements and the Proposer’s standard contract language. The omission of these documents may render a proposal non-responsive.

13. Alterations, modifications or variations to a proposal may not be considered unless authorized by the RFQ or by addendum or amendment.

14. Proposals which appear unrealistic in the terms of technical commitments, lack of technical competence, or are indicative of failure to comprehend the complexity and risk of this contract, may be rejected.

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15. Proposals may be withdrawn by written notice received prior to the proposal opening time.

16. The price and amount of this proposal must have been arrived at independently and without consultation, communication, agreement or disclosure with or to any other

Contractor or prospective Contractor.

17. No attempt may be made at any time to induce any firm or person to refrain from submitting a proposal or to submit any intentionally high or noncompetitive proposal. All proposals must be made in good faith and without collusion.

18. Prices offered by Proposers in their proposals are an irrevocable offer for the term of the contract and any contract extensions. The Awarded Contractor agrees to provide the purchased services at the costs, rates and fees as set forth in their proposal in response to this RFQ. No other costs, rates or fees shall be payable to the Awarded Contractor for implementation of their proposal.

19. The City is not liable for any costs incurred by Proposers prior to entering into a formal contract. Costs of developing the proposals or any other such expenses incurred by the Proposer in responding to the RFQ, are entirely the responsibility of the Proposer, and shall not be reimbursed in any manner by the City.

20. Proposal will become public record after the conclusion of the negotiation process and before final approval by the awarding body unless the proposal or specific parts of the proposal can be shown to be exempt by law. Each Proposer may clearly label all or part of a proposal as "CONFIDENTIAL" provided that the Proposer thereby agrees to indemnify and defend the City for honoring such a designation. The failure to so label any information that is released by the City shall constitute a complete waiver of any and all claims for damages caused by any release of the information.

21. A proposal submitted in response to this RFQ must identify any subcontractors and outline the contractual relationship between the Proposer and each subcontractor.

An official of each proposed subcontractor must sign and include as part of the proposal submitted in response to this RFQ, a statement to the effect that the subcontractor has read and will agree to abide by the Proposer’s obligations.

22. If the Contractor elects to use subcontractors, the City requires that the Awarded

Contractor provide proof of payment of any subcontractors used for this project.

Proposals shall include a plan by which the City will be notified of such payments.

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23. Each Proposer must disclose any existing or potential conflict of interest relative to the performance of the contractual services resulting from this RFQ. Any such relationship that might be perceived or represented as a conflict should be disclosed.

The City reserves the right to disqualify any Proposer on the grounds of actual or apparent conflict of interest.

24. Each Proposer must include in its proposal a complete disclosure of any alleged significant prior or ongoing contract failures, any civil or criminal litigation or investigation pending which involves the Proposer or in which the Proposer has been judged guilty or liable. Failure to comply with the terms of this provision will disqualify any proposal. The City reserves the right to reject any proposal based upon the Proposer’s prior history with the City or with any other party, which documents, without limitation, unsatisfactory performance, adversarial or contentious demeanor, significant failure(s) to meet contract milestones or other contractual failures.

25. The City reserves the right to negotiate final contract terms with any Proposers selected. The contract between the parties will consist of the RFQ together with any modifications thereto, and the Awarded Contractor’s proposal, together with any modifications and clarifications thereto that are submitted at the request of the City during the evaluation and negotiation process. In the event of any conflict or contradiction between or among these documents, the documents shall control in the following order of precedence: the final executed contract, the RFQ, any modifications and clarifications to the Awarded Contractor’s proposal, and the

Awarded Contractor’s proposal. Specific exceptions to this general rule may be noted in the final executed contract.

26. The City will not be responsible for or bound by any oral communication or any other information or contact that occurs outside the official communication process specified herein, unless confirmed in writing by the City Contact.

27. Any contract resulting from this RFQ shall not be effective unless and until approved by the City Council / City Manager, as applicable.

28. The City will not be liable for Federal, State, or Local excise taxes.

29. Execution of Attachment A of this RFQ shall constitute an agreement to all terms and conditions specified in the RFQ, including all contract terms and conditions therein, except such terms and conditions that the Proposer expressly excludes.

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30. Proposer understands and acknowledges that the representations above are material and important, and will be relied on by the City in evaluation of the proposal.

Any Proposer misrepresentation shall be treated as fraudulent concealment from the City of the true facts relating to the proposal.

31. Proposals shall be kept confidential through the negotiation process.

32. No announcement concerning the award of a contract as a result of this RFQ may be made without the prior written approval of the City.

Proposers are advised that any contract awarded pursuant to this procurement process that exceeds $100,000 shall be subject to the applicable provisions of Long

Beach Municipal Code Section 2.73 et seq, the Equal Benefits Ordinance.

33. All Proposers shall complete and return, with their bid, the Equal Benefits Ordinance

Compliance form contained in Attachment B, if applicable. Unless otherwise specified in the procurement package, Proposers do not need to submit with their bid supporting documentation proving compliance. However, supporting documentation verifying that the benefits are provided equally shall be required if the proposer is selected for award of a contract.

5.3 Contract Terms & Conditions

1. The Awarded Contractor will be the sole point of contract responsibility. The City will look solely to the Awarded Contractor for the performance of all contractual obligations which may result from an award based on this RFQ, and the Awarded

Contractor shall not be relieved for the non-performance of any or all subcontractors.

2. The Awarded Contractor must maintain, for the duration of its contract, insurance coverages as required by the City. Work on the contract shall not begin until after the Awarded Contractor has submitted acceptable evidence of the required insurance coverages. As a condition precedent to the effectiveness of this contract, Contractor shall procure and maintain at Contractor’s expense for the duration of this contract from an insurance company that is admitted to write insurance in the

State of California or that has a rating of or equivalent to an A:VIII by A.M. Best and

Company the following insurance:

a. Commercial general liability insurance equivalent in coverage scope to ISO CG

00 01 10 93 naming the City of Long Beach, the State of California, and their

Boards, officials, employees, and agents as additional insureds on a form

RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 | 24 equivalent in coverage scope to ISO CG 20 10 11 85 from and against claims, demands, causes of action, expenses, costs, or liability for injury to or death of persons, or damage to or loss of property arising out activities performed by or on behalf of the Contractor in an amount not less than One Million Dollars

(US $1,000,000) per occurrence and Two Million Dollars (US $2,000,000) in general aggregate. Such insurance shall not exclude XCU (explosion, underground, and collapse) perils, sudden and accidental pollution and cleanup liability, or mobile equipment.

b. Workers' Compensation as required by the State of California and endorsed, as applicable, to include United States Longshoremen and Harbor Workers'

Compensation Act coverage and Jones' Act coverage, and Employer's Liability insurance with minimum limits of One Million Dollars ($1,000,000) per accident or occupational illness. The policy shall be endorsed with a waiver of the

Contractor’s and its insurer's rights of subrogation against the City of Long

Beach, the State of California, and their departments, boards, officials, employees, and agents.

c. Commercial automobile liability insurance equivalent in coverage scope to ISO

CA 00 01 06 92 in an amount not less than One Million Dollars (US $1,000,000) combined single limit (CSL) covering Symbol 1 (“any auto”).

d. Professional liability or errors and omissions liability insurance in an amount not less than One Million Dollars ($1,000,000) per claim covering the services provided pursuant to this Contract.

e. Umbrella liability insurance or Excess liability insurance on a following form basis insurance in excess of the coverage provided by (a) and (d), including additional insured coverage for (a) only, in an amount not less than Twenty

Million Dollars ($20,000,000) per claim and in aggregate.

f. If Contractor uses AIRCRAFT, Aircraft Liability Insurance as follows:

Limit of Insurance: $10,000,000 Per Occurrence/Annual Aggregate Policy shall be endorsed with a Waiver of Subrogation Endorsement and an Additional

Insured Endorsement naming the City of Long Beach, the State of California, and their Boards, officials, employees, and agents as additional insureds.

g. If Contract involves the removal, transportation and/or disposal of hazardous materials, Pollution/Environmental Impairment Liability Coverage shall be required as follows

i. Limits of Insurance: $2,000,000 Per Occurrence/Per Claim and

$4,000,000 Per Occurrence/Per Claim – Policy Aggregate

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ii. Claims Made coverage must be maintained for a period of at least three

(3) years after final payment under the Contract.

iii. The City, the State of California and their officials, employees, and agent shall be added as an additional insured, and the policy shall contain no insured vs. insured exclusion.

iv. The pollution/environmental impairment liability insurance shall include coverage for, without limitation:

1. Bodily injury and property damage to third parties

2. Natural resource damages

3. Pollution clean-up costs, including restoration or replacement costs

4. Defense costs

5. Fines, penalties and punitive damages

6. Transportation of waste material by or on behalf of the Covered

Part

7. Disposal liability for pollution conditions on, at, under, or emanating from any disposal site, location or facility used by or on behalf of the Contractor for disposal of waste.

8. Contractual Liability Coverage

9. Lead, Silica, Asbestos and Mold Coverages

10. Underground Storage Tank Coverage

All insurance coverage shall be maintained until all hazardous materials are disposed of in an EPA licensed disposal facility and federal, state and local environmental requirements and laws have been complied with, whether such compliance is the obligation of the Contractor, subcontractors, the City or third parties.

All disposal facilities shall provide the City upon request and the Contractor with written evidence that they are licensed EPA disposal facilities and that they maintain pollution liability insurance of not less than $2,000,000 Per

Occurrence/Per Claim, which covers all claims arising from the disposal facilities’ handling and storage of hazardous materials. Pollution liability insurance for the transportation of the hazardous material shall be carried by the transporter with limits not less than $2,000,000 Per Occurrence/Per Claim.

h. If Contractor uses WATERCRAFT, Watercraft Liability Insurance as follows:

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The Contractor shall procure and maintain during the term of this Contract, at its own expense, watercraft liability coverage with either Marine Liability, Protection & Indemnity Coverage, or the Boats Endorsement 24 12 11 85, or comparable endorsement, on the General Liability Coverage. Coverage shall be equivalent to the cover provided by members of the International Group of

Protection and Indemnity Associations. The cover shall include liability for collision and damage to fixed and floating objects.

Limit of Insurance: $10,000,000 Per Occurrence/Annual Aggregate Policy shall be endorsed with a Waiver of Subrogation Endorsement and an Additional

Insured Endorsement naming the City of Long Beach, the State of California, and their Boards, officials, employees, and agents as additional insureds.

i. If Contract involves rigging (furnishing the material hoist services), Riggers

Liability Insurance as follows:

Riggers Liability Insurance, either by separate policy or endorsement on the

General Liability Policy. With a Rigger’s Liability Limit of at least $2,000,000 Per

Occurrence

j. If construction is to be conducted within 50 feet of a railroad, Railroad

Protective Liability Insurance as follows:

the Contractor shall be responsible to purchase Railroad Protective Liability coverage.

Insurance policies (as applicable and at City’s discretion) to be obtained and maintained by the City:

k. Environmental Impairment Cleanup or Pollution Liability and Clean-up

Insurance - Coverage shall be for:

Pollution damage, including but not limited to clean-up costs, subsidence-related loss, and loss of business in the amount of at least $100,000,000 (one hundred million US dollars). For coverage (k) only, this may be provided by the City at its sole discretion.

Any self-insurance program or self-insurance retention must be approved separately in writing by City and shall protect the City of Long Beach and its officials, employees, and agents in the same manner and to the same extent as they would have been protected had the policy or policies not contained retention

RFQ - ER-23-343 | RFQ - ER-23-343 | Template v04.20.23 | 27 provisions. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, or canceled by either party except after thirty (30) days prior written notice to City, and shall be primary and not contributing to any other insurance or self-insurance maintained by City.

Any subcontractors which Contractor may use in the performance of this contract shall be required to indemnify the City to the same extent as the Contractor and to maintain insurance in compliance with the provisions of this section.

Contractor shall deliver to City certificates of insurance and original endorsements for approval as to sufficiency and form prior to the start of performance hereunder.