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SR 08-22-2023 5G City Council Report City Council Meeting: August 22, 2023 Agenda Item: 5.G 1 of 4 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Bid to Fleming Environmental Inc. for Testing, Maintenance, and Repair of the City’s Underground and Above-ground Fuel Storage Tanks Recommended Action Staff recommends that the City Council: 1. Adopt a finding of categorical exemption pursuant to Section 15301 and Section 15308 of the California Environmental Quality Act (CEQA) guidelines. 2. Award Bid #4449 to Fleming Environmental Inc. for testing, maintenance, and repair of the City’s underground and above-ground fuel storage tanks for the Public Works Department. 3. Authorize the City Manager to negotiate and execute an agreement with Fleming Environmental Inc. in an amount not to exceed $100,000 for one year, with four additional one-year renewal options at 3% increases per year for a total amount not to exceed $531,000 over a five-year period, with future year funding contingent on Council budget approval. Summary The City of Santa Monica owns eight underground storage tanks (UST) and one above- ground storage tank containing diesel and unleaded fuel. These tanks provide fuel service for City fleet vehicles and support emergency generators at various City facilities. Each storage tank is tested once every three years to assess proper functionality and to comply with local, state, and federal guidelines. In addition, routine service and maintenance is required for each storage tank to ensure it is working properly. Staff recommends Fleming Environmental Inc. to provide testing, maintenance, and repair of the underground and above-ground fuel storage tanks in an amount not to exceed $531,000 over a five-year period. 5.G Packet Pg. 206 2 of 4 Discussion The City’s eight underground and one above ground fuel storage tanks are located at various City facilities including at four fire stations, the Public Safety Facility, and the Santa Monica Airport. The airport underground tank stations are independently managed by Aeroplex. In accordance with local, state, and federal requiremen ts, USTs and components must be regularly inspected, maintained, and tested. Fleming Environmental Inc. will perform 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. To ensure the safety of the USTs and regulatory compliance , the Public Works Department manages the City’s UST services while the Fire Department oversees enforcement of UST regulations. The Public Works Department uses an outside contractor with expertise in maintaining and testing USTs to support the City’s UST services. Best and Only Bidder Fleming Environmental Inc. Submittals Received Selection Criteria Bidder $33,450 Municipal Code SMMC 2.24.180 Evaluation Criteria Price; the ability, capacity and skill of the bidder to perform or provide the services. Bid Data Date Posted Posted On Advertised In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 03/09/2023 City's Online Bidding Site Santa Monica Daily Press 13 04/14/2023 Additional Vendor Outreach & Justification to Award Procurement conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid; No responses were received. Fisher Science Education submitted a no-bid response but did not respond to our inquiry. Fleming Environmental Inc. has provided these services in a good manner for the City for over ten years. Based on these criteria, Fleming Environmental Inc. is recommended as the best bidder. 5.G Packet Pg. 207 3 of 4 Environmental Review The routine testing and maintenance of the City’s USTs are categorically exempt pursuant to Section 15301 (Class 1 Existing Facilities) and Section 15308 (Class 8 Actions for Protection of the Environment) of the CEQA Guidelines. Section 15301 of provides exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. Section 15308 exempts actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment . Any repair or maintenance activities completed under this contract is to maintain and/or repair existing facilities and equipment to meet current standards of public health and safety and ensure protection of the environment. Financial Impacts and Budget Actions Staff seeks authority to approve available funding from the General Fund and the Big Blue Bus Fund to award a contract with Fleming Environmental Inc. for testing, maintenance, and repair of the City’s underground and above ground fuel storage tanks for the Public Works Department. Agreement Request FY 2023-24 Request Amount Account # Future Years Amount Total Contract Amount $50,000.00 01190001.550010 $215,500.00 $265,500.00 $35,000.00 60600011.550016 $150,850.00 $185,850.00 $15,000.00 01500020.529145 $64,650.00 $79,650.00 $100,000.00 Total $431,000.00 $531,000.00 Future year funding is contingent on Council budget approval. 5.G Packet Pg. 208 4 of 4 Prepared By: Thomas Poon, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. Oaks Initiative Form - Fleming Environmental Inc. 5.G Packet Pg. 209 CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every personwhois:(a)trustee,(b)director,(c)partner,(d) officer,orhas(e)morethanaten percent interest in theentity. Public benefits include: 1.Personal services contracts in excess of $25,000 over any 12-monthperiod; 2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-monthperiod; 3.Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12-monthperiod; 4.Non-competitive franchise awards with gross revenue of $50,000 or more inany 12-monthperiod; 5.Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of$25,000; 6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period;or 7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-monthperiod. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Preparedby: Title: Signature:Date: Email:Phone: Permit # FOR CITY USE ONLY: Bid/PO/Contract # Terry L. Fleming, Jr.President 07/01/2023 tfleming@flemingenvironmental.com (714)871-2800 Fleming Environmental Inc Terry L. Fleming, Jr. Terry L. Fleming, Jr. 5.G.a Packet Pg. 210 Attachment: Oaks Initiative Form - Fleming Environmental Inc. (5860 : Underground & Above-ground Fuel Storage Tank Service)