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SR-1000-008 (7) . . ~~ GS:SES:DA:JAS Council Meeting: ~ OOD ~ ao0 March 28, 1989 Santa Monica, California TO: Mayor and city council FROM: City Staff SUBJECT: Award of Contract for Installation of Corrosion Protection System at Transportation Yard Introduction This report requests that the city Council award a contract to install a corrosion protection system at the Transportation Yards to California Electrical Services, the lowest reponsible bidder, in the amount of $38,000. Background On December 13, 1983, the City Council adopted Ordinance 1291 (ecs) adding Section 8600 to the Santa Monica Municipal Code regarding hazardous material underground storage tanks. The Transportation Department has underground fuel tanks which are regulated by the city's ordinance. Section D. 1 of the City I s regulations for underground tanks specifies that protection be provided to prevent corrosion of underground storage tanks and appurtenances. section 0.2 provides the minimum requirements for a corrosion protection system. A corrosion protection system will protect metallic structures, such as the tanks and pipelines from soil corrosion. The system will extend the life of the lines and will aid in preventing leaks. The system functions by applying electrical current from - 1 - ~~ MAR 2 8 1989 . . anodes located in the ground. This electrical current aids in reducing the natural corrosive activity that occurs when steel structures are located in the soil. A Notice Inviting Bids was published on January 23 and 24, 1989, in the Evening Outlook and in four construction journals. Bidding documents were also forwarded to seven minority/women contracting associations. Bidding packages were requested by five contractors. The bids were received, opened and publicly read by the Deputy City Clerk on February 28, 1989. Four bids were received as follows: California Electrical Services $38,000 Encino Engineering Inc. 56,000 Energy Economics Inc. 57,700 Farwest Corrosion Control Company 62,500 The low bidder, California Electrical Services, has successfully completed other projects for the City. Financial Impact Funds Required Contract $38,000 Contingencies ~,800 $41,800 Total Funds Required Appropriation authority is available in Account No. 41-750-657-000-907 ($11,447) and 41-750-657-000-908 ($30,353). - 2 - . . Recommendation It is recommended that the city Council: 1. Award a contract to install a corrosion protection system at the Transportation Yard to California Electrical Services, the lowest responsible bidder, in the amount of $38,000; and 2. Authorize the city Engineer to issue any change orders necessary to complete additional work to the extent of funds available in accordance with the Administrative Instruction on Change Orders. Prepared by: stan Scholl, Director of General Services Desi Alvarez, City Engineer Jean stanley Higbee, Administrative Analyst (cathodic) - 3 -