City Council Meeting: July 25, 2006

Agenda Item: 1-G  

To: Mayor and City Council 

From: Steve Stark, Chief Financial Officer

Subject: Underground Storage Tank Improvements

Recommended Action

It is recommended that the City Council award Bid #2906 and authorize the City Manager to negotiate and execute a contract and any associated change orders with Fleming Environmental, Inc., to provide various underground storage tank improvements at City-owned facilities.

Executive Summary

The City maintains underground storage tanks at various facilities throughout the City. These underground storage tanks are used to store gasoline and diesel fuel for routine and emergency operations for the Big Blue Bus, the City Yards and Fire Stations. Maintenance of these existing tank systems is subject to regulations imposed by the State of California and the South Coast Air Quality Management District. Fleming Environmental, Inc., will make improvements to City storage tank systems to comply with these regulations in the amount of $371,725 plus a 10% contingency of $37,173 for a total cost not to exceed $408,898.

Discussion

The City must make significant upgrades to underground storage tank systems at Fire Stations #1 and #5 in order to comply with current regulations imposed by the State of California and the South Coast Air Quality Management District. These upgrades include replacement of containment sumps, all associated piping, monitoring equipment, and installation of an emergency day tank. Modifications, including upgrade of manhole covers to facilitate maintenance and repair of tank systems located at Fire Stations #2 and #3, the City Yards, and the Big Blue Bus will also be performed. In addition, enhanced leak detection testing is required at the City Yards due to its proximity to a drinking water well.

Vendor Selection

In January 2006, the city published Notices Inviting Bids. Bid forms were distributed to twelve vendors and notices were advertised in accordance with the City Charter and the Municipal Code. Four bids were received and publicly opened and read on March 1, 2006 as follows:

Vendor Bid Amount

Fleming Environmental $371,725

EFS West 401,415

Tait Environmental Systems 505,635

MJK Construction 538,723

Due to the complexity of the technical bid specifications and number of City locations requiring underground storage tank improvements, staff required additional time to review and analyze the bids received. Staff requested additional information/clarification in writing and conducted individual oral interviews with each bidder, which impacted the time it took to analyze the bid and make a recommendation for bid award.

Bids were evaluated based on competitive pricing, qualifications, responsiveness to bid requirements and references. Based upon these criteria, Fleming Environmental, Inc., is the best bidder to provide the required services.

Budget/Financial Impact

Budget authority for this purchase is in the following accounts in the General, Water, Solid Waste, Wastewater, Vehicle, and Big Blue Bus Funds:

$200,542 – C010020.589000 – “Underground Tank Upgrades”

$139,213 – C250020.589000 – “Underground Tank Management”

$9,929 – C270020.589000 – “Underground Tank Management”

$4,088 – C310020.589000 – “Underground Tank Management”

$2,491 – C540020.589000 – “Underground Tank Management”

$52,635 – C410826.589000 – “Facilities Upgrade and Renovation”

Prepared by:

Diane Howell, Purchasing Agent

Approved:	Forwarded to Council:
Steve Stark Chief Financial Officer	P. Lamont Ewell City Manager