Florida Department of
Environmental Protection
PETROLEUM CLEANUP
PREAPPROVAL PROGRAM
SOP UPDATE HIGHLIGHTS
May 21, 2012
Charles T. Williams
Environmental Administrator
Petroleum Cleanup Section One
Bureau of Petroleum Storage Systems
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
2
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)
3
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• Draft guidance and reporting forms in Appendix D.7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, testing4
and evaluation for closure options, excludes cleanup
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
5
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.
6
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.37
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
8
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 GS1SL, supporting contractor records required for 5 years
after final payment for work order or longer to match
contractor’s retention schedule or Federal retention 9
schedule if Federal funds used
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
10
COMPENSATION & PRICE
SCHEDULES
 Fixed Cost Templates vs. Maximum
Compensation Schedules (Sections 5.5 & 5.8)
• Fixed Cost Templates, Appendix A.1
 Personnel Categories, Bare Labor Rates & Multipliers
 Defined Scopes of Work (71)
 Equipment Kits (18)
 Mobilization & Per Diem
 Contractor Markup (%) & General SA Report (%)
• Maximum Compensation Schedule, Appendix A.2
 Sub & Vendor-Actual Cost Not to Exceed (plus markup)
 Laboratory Analytical Rates
 Equipment Rental Rates (individual)
 Drilling Rates
 No Change in Invoice Requirements (>$2,500 or +CO)
11
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 schedule
 Adjustment = - 10%
 Exception for Priority Pollutant Extractable Organics
12
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
13
• Cannot substitute entity not in original solicitation, if ∆
in scope, requires new solicitation (incl. same parties)
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)
14
• DPT with Auger Memo, January 2011, Appendix A.2.4
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
15
standard oversight
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)
16
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
17
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
18
MISCELLANEOUS
PROCEDURES
 Off-Site Access (section 7.9)
• New separate sample access agreements for preapproval 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
19
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,
20
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) 21
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
22
and to the site receiving transfer from another site
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
23
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?
24