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SR-500-001 (7) (p..w 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 - 1 - 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 - 2 - 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 - 3 - 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) - 4 -