SR-500-001 (7)
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APR 28 19&1
GS:SS:EL:JH:JS
council Meeting: April 28, 1987
Santa Monica, California
To:
Mayor and city council
From:
city Staff
Subject:
Award of Public Works Construction Contract for the
Retrofitting of Underground storage Tanks
Introduction
This report recommends that the City Council award a Public Works
Construction contract to retrofit 15 City-owned underground tanks
to Charles E. Thomas Company in the amount of $98,759.00.
Background
In FY85/86 and FY86/87 funds were appropriated to comply with the
provisions of the Underground Tank Law, Santa Monica Municipal
Code Sections 8600 - 8614, adopted December 13, 1983 and modified
December 11, 1984, and the Underground Storage of Hazardous
Materials Regulations and Procedures adopted in February, 1985.
These municipal environmental regulations require that all tanks
and associated piping be tested for leakage, that plans be
developed and implemented to test the soil for historic leakage,
that a monitoring system be designed and installed to detect
potential future leaks, and that leaking tanks be replaced
Phase I of the implementation of this proj ect involved testing
the tanks for leakage. Test results indicated that tanks
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operat~_w
APR 2 8 191
by the city were not leaking with the exception of underground
tanks operated at the City Maintenance Yards. Based on the test
resul ts, tanks indicating leakage were immediately emptied and
removed from service and are currently being replaced with new
tanks complying with required construction and monitoring
standards as authorized at the March 24, 1987 city Council
meeting.
Industry experience has shown that tanks older than 15 years
develop leaks at a significantly higher rate than do those less
than 15 years old. Using this criteria, staff assessed the
cost-effectiveness of continued operation of existing tanks
versus replacing tanks with ones meeting the construction and
monitoring requirements, and determined that replacing tanks
older than 15 years (7 tanks) and retrofitting those newer than
15 years (15 tanks) would prove to be most economical.
Location # of Tanks Proposal
Transportation Dept. 9 Retrofit
City Hall 1 Retrofit
Moss Avenue Lift station 1 Retrofit
Fire station #3 2 Retrofit
Fire station #5 2 Retrofit
Beach Maintenance 2 Replace
Fire station #2 3 Replace
Fire Station #1 2 Replace
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The replacement of the seven underground tanks is being addressed
separately as a "Phase III" in the City's Capital Improvements
procedure.
A Notice Inviting Bids was published on March 6, 9, and 10, 1987.
Plans and Specifications were issued to ten contractors and nine
construction advertising services I six of which advertise to
minority contractors. Two bids were received and read publicly by
the Deputy City Clerk on March 20, 1987.
Bids received included:
1. Charles E. Thomas Company $98,759
2. Converse Environmental Consultants
California $106,159
Staff investigated the low bidder's references and determined
that they have performed satisfactorily on similar projects.
Funds Required
Fund # Tanks
General Fund 6
Contingency (10%)
SUBTOTAL
Cost
$ 391504
3,950
$ 43,454
Transportation 9
Contingency (10%)
SUBTOTAL
59,255
5,926
$ 65,181
GRAND TOTAL
$l08,()3~
Financial/Budget Analysis
Appropriation authority in the amount of $181,928 is available in
the Transportation Fund account number 41-750-657-000-906 and in
the amount of $78,750 in the General Fund account number
01-760-671-000-943. The costs per account were derived according
to the number of tanks covered by each account. Because the
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Transportation Department is the only enterprise fund, costs
associated with those tanks (60%) will be charged to that fund.
Recommendation
It is recommended that the city council:
1. Award a contract for the retrofitting of 15 City-owned tanks
to Charles E. Thomas Company in the amount of $98/759.
2. Authorize the City Engineer to issue any change orders
necessary to complete additional work as required in an
amount not to exceed the funds available in conformance with
the Administrative Instructions on Change Orders.
Prepared by: stan Scholl, Director of General Services
Ed Lash, utilities Manager
Jack Hoagland, Administrative Water Engineer
Jennifer stone/ Toxic Chemical Coordinator
(staftank)
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