SR 05-24-2022 3C
City Council
Report
City Council Meeting: May 24, 2022
Agenda Item: 3.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services
Subject: Approval of Second Modification to Agreement #3438 with Fleming
Environmental for Urgent Repairs to the Veeder Root System of Underground
Fuel Storage Tanks
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a second modification to agreement #11099 (CCS) (formerly CT# 3438) in the
amount of $182,000 (including contingency) with Fleming Environmental Inc., to perform
an urgent repair to the Underground Storage Tank (UST) monitoring system at the
Public Safety Facility (PSF) along with additional funding for maintenance and repair on
the 13 other sites located in the City. This would result in a five-year amended
agreement with a new total amount not to exceed $353,730, with future year funding
contingent on Council budget approval.
Summary
Since 2018, the City has contracted with Fleming Environmental, Inc. (Fleming) for the
routine inspection and repair of City-owned Underground Storage Tanks (UST). These
tanks are used to store fuel for backup generators and other equipment and must meet
certain Fire Life Safety criteria to be certified for use. Several critical deficiencies were
identified for the UST at the Public Safety Facility (PSF) and the Santa Monica Fire
Marshall has deemed the monitoring system for the UST as non-compliant. If these
repairs are not made, the City would not be able to fuel the PSF emergency generator
needed to supply power to crucial emergency response systems during a power outage.
The repairs identified in the inspections exceed the current scope of anticipated work,
so additional funds are requested to address these critical issues at PSF along with
additional funding for maintenance and repair on the 13 other City UST sites. This
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second modification is seeking authority to increase the contract by $182,000 for a total
contract amount Not to Exceed (NTE) $353,730 through 2023.
Discussion
The City Hall Campus (Historic City Hall, City Hall East, and the PSF) are all on an
emergency generator backup and the fuel for those generators is stored in USTs. The
USTs containing diesel and unleaded fuel are located at 14 sites throughout the City,
and in accordance with local, state, and federal requirements, underground storage
tanks and components must be regularly inspected and tested. Fleming is the City’s
current service provider for inspection and repair. This vendor performs both
Designated Operator Services (which include monthly inspections, staff training, and
alarm documentation) and Secondary Containment Testing every three years to
determine that no leaks occur from primary containment. During inspections conducted
at the PSF last year, Fleming identified several issues, such as alarm panels in a non-
monitored area, discontinuation of manufacturer’s system support, and several
malfunctioning sensors. Further, the Santa Monica Fire Marshall declared that the
issues must be addressed or PSF would be out of compliance and the emergency
generators would be taken out of service, as the fuel source would not be available. The
first modification to the contract was authorized by Council to cover necessary repairs
identified for the UST at the PSF and extend routine inspection services. After
excavating the buried tank at the PSF, the necessary repairs were found to be more
extensive than anticipated, hence this second modification request.
Vendor Selection
Fleming was selected from six vendors that responded to formal bid 4337 on March 29,
2018. A five-year professional services agreement not to exceed $80,000 was executed
in FY 2018-19 (Attachment A). Council approval was not required in accordance with
the City’s procurement policy. The first modification in the amount of $91,730 increased
the total not to exceed amount from $80,000 to $171,730 to cover necessary repairs for
the UST at the PSF, routine inspection, testing, and maintenance as well as an average
of two service repairs to each UST (Attachment B) only. This request is to award a
second modification to cover the critical and unexpected costs ($142,690) for the
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identified repairs at the USTs at the PSF, along with providing enough budget for
maintenance and repair to the other 13 UST sites in the City through the end of the
contract’s five-year term on June 30, 2023. Staff would competitively bid a new contract
in early 2023, but this repair work is crucial and must be completed immediately.
Past Council Actions
Meeting Date Description
10/27/20 (Attachment C) Approval of First Modification to Agreement with Fleming for
Inspections and Testing of Underground Fuel Storage Tanks
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund, Big Blue Bus
Fund, and Vehicle Management Fund operating budgets to increase the amount of the
agreement with Fleming Environmental Inc., to make these urgent repairs as soon as
possible and continue maintenance and repair through FY 2022/23. Future year funding
is contingent on Council budget approval.
Agreement Modification Request
Agreement #
Current Authorized
Amount
FY 2021-22
Budget
Modified
Request
Amount
Dept Account # Total Revised
Contract Amount
11099 $171,730 $39,310 Various $211,040
11099 $0 $142,690 01500020.529145 $142,690
Total: $353,730
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Prepared By: Amber Richane, Architectural Associate
Approved
Forwarded to Council
Attachments:
A. Contract 3438 - Fleming Environmental Original Agreement
B. First Modification - Contract 11099
C. October 27, 2020 Staff Report (Web Link)
D. 2021 OAKS INITIATIVE FORM
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3.C.aPacket Pg. 31Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 32Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 33Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 34Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 35Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 36Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 37Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 38Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 39Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 40Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 41Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 42Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 43Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 44Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 45Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 46Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
3.C.aPacket Pg. 47Attachment: Contract 3438 - Fleming Environmental Original Agreement (5065 : Fleming Environmental 2nd Contract Mod)
1
Contract Number 11099
(Former Contract Number 3438)
FIRST MODIFICATION OF AGREEMENT
This First Modification of Agreement Number 11099 (CCS) (“First Modification”),
entered into as of _________________(“Execution Date”), by and between the City
of Santa Monica, a municipal corporation (“City”), and Fleming Environmental Inc.
(CONTRACTOR) is made with reference to the following:
RECITALS
A. On or about February 20, 2019, the City and CONTRACTOR entered into
Agreement Number 11099 (CCS) for designated operator inspections, employee
training, general maintenance and repair, and secondary containment testing and
work plan. (“Original Agreement”).
B. The City and CONTRACTOR desire to modify the Original Agreement to in-
crease the contract price to cover emergency repair services through the end of
term of the Original Agreement.
TERMS AND CONDITIONS
Now, therefore, the undersigned parties do hereby mutually agree to modify the Origi-
nal Agreement as follows:
1. Section 2 of the Original Agreement entitled “CONTRACTOR Services” shall be
modified by adding the following paragraph:
Additional Services. CONTRACTOR will perform all of the addi-
tional services (“Additional Services”) described in Exhibit A-1, Scope
of Services. CONTRACTOR will complete the Additional Services in
accordance with Exhibit B-1, Budget.
2. Section 4 of the Original Agreement entitled “Compensation” shall be modified
by adding the following paragraph:
Compensation. The City will compensate CONTRACTOR for the
Additional Services in an amount not to exceed NINETY-ONE
THOUSAND SEVEN HUNDRED AND THIRTY DOLLARS
($91,730), as set forth in Exhibit B-1. The total contract price for ser-
vices pursuant to the Original Agreement and this First Modification
shall not exceed ONE HUNDRED AND SEVENTY-ONE
THOUSAND SEVEN HUNDRED AND THIRTY DOLLARS
($171,730).
3. Exhibit A-1 and Exhibit B-1 are attached hereto and incorporated herein by this
reference.
DocuSign Envelope ID: 223A6802-F9F0-4CDA-83A0-C5E05EF9AFE9
11/12/2020
3.C.b
Packet Pg. 48 Attachment: First Modification - Contract 11099 (5065 : Fleming Environmental 2nd Contract Mod)
2
4. Except as expressly modified by this First Modification, all other terms and condi-
tions of the Original Agreement shall be and remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this First Modification as of the
date and year first written above.
ATTEST:
______________________________
DENISE ANDERSON-WARREN
City Clerk
APPROVED AS TO FORM:
______________________________
LANE DILG
City Attorney
CITY OF SANTA MONICA,
a municipal corporation
By: ______________________________
RICK COLE
City Manager
CONTRACTOR Corporation
#VENDOR
By: _______________________________
DocuSign Envelope ID: 223A6802-F9F0-4CDA-83A0-C5E05EF9AFE9
11/9/2020
Interim City Attorney
George Cardona
Jennifer Martin
Contracts Administrator
11/11/2020
Fleming Environmental Inc.
Interim City Manager
Lane Dilg
11/12/2020
Denise Anderson-Warren
11/12/2020
City Clerk
3.C.b
Packet Pg. 49 Attachment: First Modification - Contract 11099 (5065 : Fleming Environmental 2nd Contract Mod)
Exhibit A-1 Additional Services
Emergency Repair of Underground Storage Tank (UST) and Public Safety Facility
Fleming Environmental, Inc shall be responsible for performing repair to damaged underground diesel
fuel piping at the Santa Monica Public Safety Facility.
Work Included:
• Submit work plan for permits for project
• Ensure permits are in place prior to commencing work
• Coordinate site access plans with site personnel
• Air test primary lines before any work starts
• Air test secondary lines after backfill pre concrete
• Pos construction SB 989 testing on piping only after concrete
• 6 month SB 989 testing on secondary lines
• Mobilize onsite
• Final of project
DocuSign Envelope ID: 223A6802-F9F0-4CDA-83A0-C5E05EF9AFE9
3.C.b
Packet Pg. 50 Attachment: First Modification - Contract 11099 (5065 : Fleming Environmental 2nd Contract Mod)
Exhibit B.1 Budget
Contract amount shall be increased by $91,730 to cover routine and emergency repair services, for a
total not to exceed $171,730.
Year Fiscal Year / Dates (Inclusive) Budget Available
1 Fiscal Year (FY) 2018/19
(Contract execution date to June 30, 2019)
Amount shall not exceed $12,000.
2 FY 2019/20
(July 1, 2019 to June 30, 2020)
Amount shall not exceed $45,600.
3 FY 2020/21
(July 1, 2020 to June 30, 2021)
Amount shall not exceed $66,821.
4 FY 2021/22
(July 1, 2021 to June 30, 2022)
Any unspent funding up to $171,730 total
contract value.
5 FY 2022/23
(July 1, 2022 to June 30, 2023)
Any unspent funding up to $171,730 total
contract value.
Any unspent amount for each year may be made available in the subsequent year(s), at the sole and
complete discretion of the City and subject to budgetary approval. The total amount of compensation
shall not exceed the sum of $171,730.
Pricing
Item / Service Year 1 Year 2 Year 3 Year 4 Year 5
Price Increase N/A 3% 3% 3% 3%
Recurring Services by Fiscal Year & Location
Big Blue Bus – 1620 6th Street
Designated Operator
Inspections (monthly) /
Training (2x per year)
$1,680.00
($140.00/mo)
$1,730.40
($144.20/mo)
$1,782.31
($148.53/mo)
$1,835.78
($152.98/mo) $1,890.85
($157.57/mo)
Secondary Containment
Testing
$1,650.00 $1,803.00
Corporate Yards (Fleet Services) – 2500 Michigan Avenue
Designated Operator
Inspections (monthly) /
Training (2x per year)
$1,680.00
($140.00/mo) $1,730.40
($144.20/mo) $1,782.31
($148.53/mo) $1,835.78
($152.98/mo) $1,890.85
($157.57/mo)
Secondary Containment
Testing
$3,750.00 $4,097.73
Fire Station #1 – 1444 7th Street
Designated Operator
Inspections (monthly) /
Training (3x per year)
$1,680.00
($140.00/mo) $1,730.40
($144.20/mo) $1,782.31
($148.53/mo) $1,835.78
($152.98/mo) $1,890.85
($157.57/mo)
DocuSign Envelope ID: 223A6802-F9F0-4CDA-83A0-C5E05EF9AFE9
3.C.b
Packet Pg. 51 Attachment: First Modification - Contract 11099 (5065 : Fleming Environmental 2nd Contract Mod)
Secondary Containment
Testing
$1,850.00 $2,021.54
Item / Service Year 1 Year 2 Year 3 Year 4 Year 5
Fire Station #2 – 222 Hollister Avenue
Designated Operator
Inspections (monthly) /
Training (3x per year)
$1,680.00
($140.00/mo) $1,730.40
($144.20/mo) $1,782.31
($148.53/mo) $1,835.78
($152.98/mo) $1,890.85
($157.57/mo)
Secondary Containment
Testing
$1,450.00 $1,584.45
Fire Station #3 – 1302 19th Street
Designated Operator
Inspections (monthly) /
Training (3x per year)
$1,680.00
($140.00/mo) $1,730.40
($144.20/mo) $1,782.31
($148.53/mo) $1,835.78
($152.98/mo) $1,890.85
($157.57/mo)
Secondary Containment
Testing
$1,850.00 $2,021.54
Fire Station #5 – 2450 Ashland Avenue
Designated Operator
Inspections (monthly) /
Training (3x per year)
$1,680.00
($140.00/mo) $1,730.40
($144.20/mo) $1,782.31
($148.53/mo) $1,835.78
($152.98/mo) $1,890.85
($157.57/mo)
Secondary Containment
Testing
$1,850.00 $2,021.54
Public Safety Facility – 333 Olympic Drive
Designated Operator
Inspections (monthly) /
Training (3x per year)
$1,680.00
($140.00/mo) $1,730.40
($144.20/mo) $1,782.31
($148.53/mo) $1,835.78
($152.98/mo) $1,890.85
($157.57/mo)
Secondary Containment
Testing
$1,450.00 $1,584.45
Santa Monica Airport – Aeroplex – 2501 Airport Avenue
(Bill To: Aeroplex – 3333 E. Spring Street, Suite 204, Long Beach, CA 90806)
Designated Operator
Inspections (monthly) /
Training (3x per year)
$1,680.00
($140.00/mo) $1,730.40
($144.20/mo) $1,782.31
($148.53/mo) $1,835.78
($152.98/mo) $1,890.85
($157.57/mo)
Secondary Containment
Testing
$1,450.00 $1,584.45
As-Needed Repairs and Services – Hourly Billable Labor Rates
Job Classification Year 1 Year 2 Year 3 Year 4 Year 5
Project Manager $125.00 $128.75 $132.61 $136.59 $140.69
Electrician $140.00 $144.20 $148.53 $152.98 $157.57
Laborer $110.00 $113.30 $116.70 $120.20 $123.81
General Admin $75.00 $77.25 $79.57 $81.95 $84.41
Overtime Rate* $165.00 $169.95 $175.05 $180.30 $185.71
Other Charges
Materials / Parts To be quoted individually and pre-approved by City staff.
Travel time to site for
service calls or to pick up
parts related for repairs
To be charged at rates listed above with pre-approval of City staff.
DocuSign Envelope ID: 223A6802-F9F0-4CDA-83A0-C5E05EF9AFE9
3.C.b
Packet Pg. 52 Attachment: First Modification - Contract 11099 (5065 : Fleming Environmental 2nd Contract Mod)
Hourly rates include all overhead and administration, compliance with prevailing wage/certified payroll submittal
requirements (including hard copy submittals to the City’s prevailing wage monitoring consultant), benefits and
profit.
*Overtime is applicable to work completed above 8 hours per day Monday through Friday or before 7 a.m. and after
5 p.m.; and all Saturday/Sunday hours.
Payment Terms: Net 30.
DocuSign Envelope ID: 223A6802-F9F0-4CDA-83A0-C5E05EF9AFE9
3.C.b
Packet Pg. 53 Attachment: First Modification - Contract 11099 (5065 : Fleming Environmental 2nd Contract Mod)
3.C.dPacket Pg. 54Attachment: 2021 OAKS INITIATIVE FORM (5065 : Fleming Environmental 2nd Contract Mod)
3.C.dPacket Pg. 55Attachment: 2021 OAKS INITIATIVE FORM (5065 : Fleming Environmental 2nd Contract Mod)