Petroleum Cleanup Preapproval Program Spending Procedures for Fiscal Year by owm23003

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									                             Florida Department of Environmental Protection
                                   Bureau of Petroleum Storage Systems

              PETROLEUM CLEANUP PREAPPROVAL PROGRAM
             SPENDING PROCEDURES FOR FISCAL YEAR 2007-2008
                                             Revised - July 11, 2007

I. UNIFORM FISCAL YEAR ENCUMBRANCES (Weekly Obligations)

Subsection 376.3071(4)(p), Florida Statutes (F.S.), states:
“Petroleum remediation pursuant to s. 376.30711 throughout a state fiscal year. The
department shall establish a process to uniformly encumber appropriated funds
throughout a state fiscal year and shall allow for emergencies and imminent threats to
human health and the environment as provided in (5)(a). This paragraph does not apply to
appropriations associated with the free product recovery initiative of paragraph (5)(c) or
the preapproved advanced cleanup program of s. 376.30713.”

In order to implement the statutory requirements, the Bureau of Petroleum Storage Systems
(BPSS) will continue the established prioritization and tracking system for all obligations
associated with the cleanup appropriation.

The total cleanup appropriation for FY 07-08 is $163,500,000. There are several essential
contracts that are integral to site cleanup, including Administrative Services and Potable Well
Surveillance Services, for which $4,000,000 has been allocated from the cleanup appropriation
this fiscal year. The remaining appropriation in the amount of $159,500,000 divided by 12
equals $13,291,666.67 per month. This amount will be rounded off to $13.3 M per month for
the first 11 months and $13.2 M for the final month. Since the obligations for the first week of
the FY 07-08 were covered with carry over funds from FY 06-07, necessary adjustments in the
remaining appropriation for FY 07-08 will be applied at the end of the year.

A weekly obligation list will be compiled in priority order to track and regulate the amount of all
encumbrances. This list will include obligations recorded as the week (Friday-Thursday)
progresses through close of business each Thursday. After approval by the BPSS Bureau Chief,
the final weekly obligation list will be posted each Friday.

In addition to managing the appropriation on a monthly basis, the BPSS program will also
monitor the actual cash balance in the Inland Protection Trust Fund (IPTF) to ensure that the
Department can certify at the end of the fiscal year, in accordance with section 216.301, F.S.,
that there is enough cash in the IPTF to cover all obligations. If the IPTF is running behind
obligations, the program may have to slow down the issuance of work orders towards the end of
the fiscal year so that the cash balance is not less than the program’s obligations. What this
means is that even if there is appropriation that is unobligated, the program may not be able to
encumber the remaining appropriation amounts due to a lack of actual cash in the trust fund. If
any depletions of the IPTF occur during the new fiscal year, this problem will be exacerbated.

As outlined below, a weekly maximum funding amount (cap) will be established for each weekly
obligation list by dividing the monthly rate by the number of Thursdays in that month. Days that

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       Petroleum Cleanup Preapproval Program Spending Procedures for Fiscal Year 2007-2008


fall after the last Thursday of the month will be counted in the first week of the next month.
Excess dollars not obligated in a given week will be carried forward to the next week. Weekly
and monthly appropriation obligation caps will be adjusted based upon PAC and free product
recovery costs.

                                      FY 2007/2008 Weekly Obligation List
                  Week 1             Week 2        Week 3       Week 4      Week 5      Total
July                7/5/07            7/12/07       7/19/07       7/26/07
                  $3.325 M           $3.325 M      $3.325 M     $3.325 M                 $13.3 M
August              8/2/07             8/9/07       8/16/07       8/23/07    8/30/07
                   $2.66 M            $2.66 M       $2.66 M      $2.66 M     $2.66 M     $13.3 M
September           9/6/07            9/13/07       9/20/07       9/27/07
                  $3.325 M           $3.325 M      $3.325 M     $3.325 M                 $13.3 M
October            10/4/07            10/11/07      10/18/07     10/25/07
                  $3.325 M           $3.325 M      $3.325 M     $3.325 M                 $13.3 M
November           11/1/07            11/8/07       11/15/07     11/22/07    11/29/07
                   $2.66 M            $2.66 M       $2.66 M      $2.66 M     $2.66 M      $13.3M
December           12/6/07            12/13/07      12/20/07     12/27/07
                  $3.325 M           $3.325 M      $3.325 M     $3.325 M                 $13.3 M
January             1/3/08            1/10/08       1/17/08       1/24/08    1/31/08
                   $2.66 M            $2.66 M       $2.66 M      $2.66 M     $2.66 M     $13.3 M
February            2/7/08            2/14/08       2/21/08       2/28/08
                  $3.325 M           $3.325 M      $3.325 M     $3.325 M                 $13.3 M
March               3/6/08            3/13/08       3/20/08       3/27/08
                  $3.325 M           $3.325 M      $3.325 M     $3.325 M                 $13.3 M
April               4/3/08            4/10/08       4/17/08       4/24/08
                  $3.325 M           $3.325 M      $3.325 M      $3.325M                 $13.3 M
May                 5/1/08             5/8/08       5/15/08       5/22/08    5/29/08
                   $2.66 M            $2.66 M       $2.66 M      $2.66 M     $2.66 M     $13.3 M
June                6/5/08            6/12/08       6/19/08       6/26/08
                   $3.30 M            $3.30 M       $3.30 M      $3.30 M                  $13.2 M
Total                                                                                    $159.5 M

The following categories of work orders (WOs), task assignments (TAs) and billings will be
utilized to compile the weekly obligation list: Priority “1” is the highest priority and shall be
processed without delay. Priority “2” is the second highest priority and shall not be subject to
the scoring priority process. Priority “3” is the lowest priority and shall be processed in priority
score order up to the available amount remaining in the weekly cap. BCO Special Category is
not part of the cleanup appropriation and therefore not subject to the scoring priority process.

Priority “1” items will be tracked along with priority “2” & “3” items so that the weekly dollar
totals can be tabulated. Priority “2” & “3”, as well as BCO Special Category WOs/TAs, shall
not be processed until confirmation of approval by the BPSS Bureau Chief has been posted each
Friday. See the latest version of the routing slip and STCM menu for the most current letter
designations.



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Priority #1 - Process Without Delay and Deduct Obligations From the Weekly Cap
● Emergency Actions Approved by the Bureau Chief – Regardless of score.
● Electrical Utility Bills for Remediation Systems – Regardless of score, if otherwise funded.

Priority #2 - Process After Approval and Deduct Obligations From the Weekly Cap
● Imminent Threat WOs/TAs Approved by the Bureau Chief – Regardless of score. (Sites
  classified as health/safety threats)
● Preapproved Advanced Cleanup (PAC) WOs/TAs for Existing Contracts – Regardless of
  score. (PAC WOs associated with executed contracts)
● Site Rehabilitation Funding Allocation Agreement (SRFA) WOs/TAs for Agreements That
  Commit Lump Sums or Cleanup Funds Out of Priority Order – Regardless of score.
  (WOs/TAs for SRFA’s not committing funds out of priority order are Priority #3)
● PBC Verification Sampling WOs/TAs.
● PBC Milestone Authorizations & Amendments to PBC Agreements.
● Approved Bankruptcy/Court Order WOs/TAs – Regardless of score. (Required by Section
  376.30711(3), F.S.)
● Free Product Recovery Initiative (FPRI) WOs/TAs – Regardless of score for site below
  funded score range.
● Change Orders (COs) from official Change Order & Invoice Form for Current Fiscal Year
  WOs/TAs Originally Executed with Current Year Budget.
● COs from official Change Order & Invoice Form for Prior Fiscal Year WOs/TAs Originally
  Executed With Prior Year Budget but Charged to Current Year Budget When Prior Year’s
  Budget is Exhausted. (Overages)
● Limited Source Removals in Association with UST Secondary Containment Upgrade
  Initiative (LSRI) – Regardless of score for sites below funded score range.
● O&M Continuation (including initial O&M for newly installed systems based on previously
  executed WOs/TAs) – Regardless of score.
● Limited Source Removals Conducted in Association with FDOT Road Construction Projects
  That Will Become Inaccessible for Future Remediation – Regardless of score for sites below
  funded score range.
● Well Abandonment for SRCO - Funded Sites.
● Investigative Derived Waste (IDW) Removal/Disposal - Funded Sites.
● Department Discretion – For Special Projects as Approved by the Bureau Chief on a Case by
  Case basis.

Priority #3 - Process After Approval in Priority Score Order Up to Weekly Cap
● Standard WOs/TAs.
● Site Rehabilitation Funding Allocation Agreement (SRFA) WOs/TAs for Agreements That
  Do Not Commit Lump Sums or Cleanup Funds Out of Priority Order.


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● Original Performance Based Cleanup (PBC) WOs/TAs.
BCO Special Category – Process After Approval, Not Part of Weekly Cap
(Note, these categories are for non-fixed capital outlay expenses and circumstances other than normal
funded cleanup activities and that letter designations for categories that are no longer valid have been
skipped. This list is subject to change as projects are completed and new ones arise.)
● Well Abandonment for SRCO (unfunded eligible Sites).
● Potable Well Surveys.
● Free Product Delineation.
● Verification Sampling.
● Generator Cost Estimates.
● Backfill Project.
● Electrical – Underground Installation.
● IDW Removal/Disposal (unfunded eligible sites).
● Standard Equipment Design.
● Department Discretion

Copies of all WOs/TAs are to be routed to the BPSS Accounting Section after signature by the
Cost Center Administrator but prior to mailing to the Contractor for logging into the accounting
and prioritization databases. Each WO/TA shall be identified using the applicable priority
funding code on the BPSS FCO Encumbrance Routing Slip for proper characterization in the
tracking system. Billings for utilities will be sent directly to the Accounting Section for tracking
prior to payment.

Teams may mail out Priority #1 WOs/TAs without delay provided they have sent copies of the
WOs/TAs and the associated cover sheets to the Accounting Section. The Accounting Section
may process without delay utility billings after entering these obligations onto the weekly
tabulation sheets. WOs/TAs for Priority #2 and #3 and BCO Special Category sites shall have
their weekly obligations tabulated on the weekly sheets. Teams shall await confirmation of
funding status on the approved weekly obligation list each Friday before mailing out any Priority
#2 and #3 and BCO Special Category WOs/TAs.

The Accounting Section will log the information from the WOs/TAs and billings, including the
site score and other procedure-specific information affecting prioritization, into the financial
tracking system and the weekly prioritization tracking system.

As the week progresses the weekly obligation list will be sorted in priority category (all) and
priority score order (Priority #3 only) and include other procedure-specific information
(obligation type), which may require immediate action. The list, which will include all
WOs/TAs, billings and procedure-specific information for the week, will be finalized between
noon and the close of business on Thursday, executed by the Bureau Chief with an indication of
which items are funded, and posted each Friday. This process (execution by the Bureau Chief
and posting) will occur on Thursday for those Fridays that are holidays.


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The total amount for the WOs/TAs and billings to be mailed to contractors and vendors will be
equal to or less than the maximum obligation amount available for the applicable week. For
Priority #3 items, if two or more WOs/TAs that are next in line for consideration have the same
priority score and there are insufficient funds in the weekly cap to cover them all, a secondary
prioritization will be applied based on the date of the Cost Center Administrator’s signature. The
WOs/TAs and billings that are approved within the available weekly obligation cap will become
the activation list for that week. The activation list will be posted on the BPSS web site. If the
total amount for all obligations in a given week is less than the maximum available obligation
amount or if the amount left is insufficient to cover the next WO/TA or billing in priority order,
then the balance will be carried forward and increase the next week’s obligation amount.

WOs/TAs that do not make the activation list and are not mailed to the contractors will be
carried forward and incorporated into the next week’s prioritization listing and no additional
priority is given. If there are significant delays in the execution of a WOs/TAs based on this
procedure, time extensions for deliverables will be approved by the Site Manager.

II. OTHER PROCEDURES

All individual work orders or task assignments, including PAC work orders, shall not exceed
$250,000. Projects requiring an amount greater than $250,000 will have to be broken out into
multiple work orders or task assignment spanning multiple weekly approval cycles. Work orders
that were split prior to June 1, 2007, may proceed based upon their previously established
strategy. Generally, commencement of work for any portion of a split project is conditional
upon execution of all associated WOs/TAs.

Approved CDF's requesting a switch in the designated contractor for a site that has already been
assigned to a Site Manager will be forwarded to that Site Manager.

Re-scored sites may be activated for entry into the Preapproval Program if the score is within
current funding range or the site is otherwise authorized to proceed pursuant to these spending
procedures. If a site is re-scored at the request of the owner/responsible party and the new score
is below the current funding threshold and does not qualify pursuant to these spending
procedures, it will no longer be authorized to continue work under Preapproval this fiscal year
unless approved by the Bureau Chief as an imminent threat or emergency.

WOs/TAs and verbal change orders (VCO’s) shall only be written to cover field and office work
necessary through the end of December 31, 2008. No WO/TA or VCO will extend field or
office work beyond December 31, 2008.

All deliverables shall be received by December 31, 2008, finalized by program staff by March 1,
2009, and all invoices submitted and received by May 1, 2009.

All change orders will be tracked by the BPSS Accounting Section as the official Change Order
& Invoice Forms are processed. Note that VCO’s are not tracked until they are compiled and
presented on the Change Order & Invoice Form.




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VCO’s greater than $10,000 shall receive Cost Center Administrator approval (sign off on
VCO). VCO’s that have not been properly and completely executed on the VCO form prior to
the performance of the work shall not be payable.

Owners and responsible parties who believe that their site should be classified as an imminent
threat should contact Mr. Jeff Priddle, P.G., BPSS Petroleum Cleanup Section One, at 850/245-
8860 to begin the process of providing the applicable documents and information necessary to
make a determination of imminent threat. As in the past, emergency situations (contamination
causing an immediate health or safety problem) for any site, regardless of score or whether the
site is eligible or ineligible, will be handled on a case-by-case basis and require approval by the
Bureau Chief.

Work at cluster sites will continue if the highest scored site within the cluster is within funding
range. However, the work order should be clearly marked to highlight the fact that it involves a
cluster and what the highest score in the cluster is.

Any modifications to the above stated procedures shall require approval by the Bureau Chief.

These procedures will be re-evaluated no later than January 31, 2008.




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