SR-515-000-02
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I.\'R 2 4 1987
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Council Meeting: March 24, 1987
Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Waive Formal Bidding Procedures,
Appropr iate Funds, and Award Contr act to Progressive
Systems Design, Incorporated, for Repairs to City Yard
Fuel Dispensing Facility
Introduction
This report requests that the Ci ty Council adopt the attached
resolution waiving the competitive bidding for emergency repair
of the City Yards fuel dispensing facility, and appropriate funds
for such repairs.
Background
Recent testing of the City Maintenance Yards fuel storage tanks,
conducted as part of the Ci ty-wide fuel tank testing program,
ind icated that the tanks do not meet current leaking cr iter ia.
As a precautionary measure, a preliminary investigation of the
soil surrounding the tanks was undertaken which indicated that
low levels of hydrocarbons were present in the soil. Because of
the advanced age of the tanks and the low levels of contamination
found in the surrounding soil, the City Manager has determined
that there is an immediate need to determine the extent of soil
contamination and to replace the tanks and fuel island.
In the
interim, arrangements have been made for City vehicles to obtain
fuel at two private service stations in
Santa Monica and at the
Transportation Yards.
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MAR 2 4 1981
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Civ~n t:h~ immediate need for the repairs, City Staff recommends
that City Council approve the attached resolution waiving the
formal competitive bidding requirements. City Staff have already
received three informal bids for tank replacement as follows:
Stanton Construction
$269,995
$179,071
C. E. Thomas Company
Progressive Systems Designs,
Incorporated
$162,977
Staff intends to award the repair work to the low bidder and will
also
procure
services
for
additional
investigation
and
remediation of soil contamination if necessary.
Budget/Financial Impact
The
estimated
cost
for
the
repairs
described
above
is
approximately $320,000.00.
As part of the total estimate a
contingency amount of $150,000 is budgeted for soil contamination
remediation if necessary.
Funds in the amount of $41,763 are currently available in Account
Number 01-760-671-000-931 for underground tank replacement.
Additional funds will need to be appropriated from the following
funds:
Source of funds:
Refuse Fund
Water Fund
Sewer Fund
General Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$141,900
22,259
5,565
108,513
$278,237
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total appropriation required
Cost allocation to
the various
funds
is based on
the
proportionate use of the fuel facili ty by the vehicles of each
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[undo Unused appropriations will be returned proportionately to
the fund balances.
Recommendations
Staff recommends that the City Council:
1. Adopt the attached resolution waiving the competitive bidding
process;
2. Approve the following appropriations:
Refuse Fund
Water Fund
Sewer Fund
General Fund
Account No. 27-710-441-000-913
Account No. 25-760-671-000-944
Account No. 31-760-661-000-934
Account No. 01-760-671-000-931
$141,900
22,259
5,565
108,513
$278,237
Total appropriation required
Prepared by: Stan Scholl, Director of General Services
Neil Miller, Assistant Director of General Services
Desi Alvarez, City Engineer
Jean Stanley, Administrative Analyst
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