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Home My WebLink About1996-04-15 City Council (14)City of Palo Alto City Manager’s Repor, 8 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: Public Works DATE:April 15, 1996 CMR:224:96 SUBJECT:Award of Contract to PETROTEK, for Fuel Site Improvements - CIP 19520, and Fuel Storage Tank Upgrade - CIP 19205, Budget Amendment Ordinance REQUEST This report recommends that Council award a contract to PETROTEK, in the amount of $206,071 to replace ten fuel dispensers and upgrade twelve fuel storage tanks at six City facilities. Staff also requests that a Budget Amendment Ordinance (BAO) for $91,000 be approved by Council to transfer funds from retained earnings in the Vehicle Replacement and Maintenance Internal Service Fund to the Capital Improvement Project Fund, #19205=Fuel Storage Tank Upgrades, to fund additional work required. $125,000 has been budgeted in the combined projects for CIP 19205-Fuel Storage Tank Upgrades ($75,000) and CIP 19520- Fuel Site Improvements ($50,000). This BAO allows for a five percent contingency to the contract. RECOMMENDATIONS Staff recommends that Council: Approve the attached Budget Amendment Ordinance in the amount of $ 91,000 to fund additional work required for Fuel Site Improvements and Fuel Storage Tank Upgrades. Approve and authorize the Mayor to execute the attached contract with PETROTEK, in the amount of $206,071, to replace ten fuel dispensers and upgrade twelve fuel storage tanks (CIP 19520 and CIP 19205). Authorize the City Manager or her designee to negotiate and execute one or more change orders to the contract with PETROTEK, the total value of which change orders shall not exceed $9,929. CMR:224:96 Page 1 of 3 POLICY IMPLICATIONS Authorization of the contract and approval of the Budget Amendment Ordinance do not represent any change to existing policies. EXECUTIVE SUMMARY The Fuel Site Improvements and Fuel Storage Tank Upgrade projects have been designed to bring City fueling sites into compliance with local, state and federal regulations concerning fuel storage facilities. The site improvements will include Municipal Service Center, Golf Course Maintenance Yard, and Fire Stations 1, 2, 4, and 5. The Fuel Site Improvements project will replace ten fuel dispensers at five City locations where fuel is stored and dispensed into City vehicles. These dispensers have reached the end of their useful life and are not performing optimally. Six of the ten dispensers to be replaced are more than twenty years old and are not compatible with the City’s automated fuel systems. Four of the ten dispensers are twenty years old and dispense fuel at 50 percent of rated capacity. The fuel dispensers do not have modern leak containment features and the potential exists to contaminate the soil, which would result in considerable cleanup costs. The Fuel Storage Tank Upgrade project will bring fuel storage tanks into compliance with existing codes and certain Federal regulations which become effective December 1998. The construction work includes changing underground piping, spill containment, overfill protection, and remote inventory and leak detection monitoring. During construction, existing problems with tank tightness at some locations will be addressed with replacement concrete and spill containment equipment. Bidding Process Specifications were mailed to 11 contractors on January 29, 1996. Bids were received from 3 contractors on February 27, 1996, as listed on the attached summary (Attachment A). The low bid received was $206,071, or $81,071 over budget. The original estimate for the two projects was budgeted at $125,000. Several new issues have occurred since the original project proposal was developed. Three sites (Golf Course, and Fire Stations One and Two) each have two underground fuel tanks, which have never had vapor recovery on the gasoline tanks and have never been permitted by the Bay Area Air Management Quality District. The vapor recovery permitting issue was raised after the original capital improvement projects were submitted and approved and cannot be overlooked now, because it is integral to the permitting process. Fire Station One has a special problem with venting that became an issue after renovations. were completed to the upstairs living area. The vent lines (especially gasoline) are too close to the upstairs windows, which can allow fumes to enter the building during fuel delivery CMR:224:96 Page 2 of 3 service while staff is gone. Moving these vent lines to the proper location, in accordance with code, involves 30 feet of new trenching and plumbing. Additional costs for the Municipal Services Center fuel island include converting two 10,000 gallon fuel tanks from bottom suction to top, and double wall piping from the tank farm inner wall to the dispensers. This part of the project involves completely rebuilding the fuel island to prevent future problems with leaking from the dispenser pans or product piping. This work will provide long-term monitoring for the tanks. Staff has reviewed all bids submitted in a timely manner, and recommends that the bid submitted by PETROTEK be accepted by Council, and that PETROTEK be determined the lowest responsible bidder. With this type of project there is a possibility that ground contamination may be discovered during the course of the project, therefore, a $9,929 contingency (5 percent) is being requested. FISCAL IMPACT Funds are requested from the Vehicle Maintenance Reserves per the attached BAO; and funds have been appropriated in the Equipment Replacement Fund, Fuel Site Improvements - CIP 19520 and Fuel Storage Tank Upgrade - CIP 19205. ENVIRONMENTAL ASSESSMENT This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15302 of the CEQA Guidelines (Replacement of existing facilities). ATTACHMENTS A - Bid Summary B - Budget Amendment Ordinance C - Contract PREPARED BY: Alan Simpson, Fleet Manager DEPARTMENT HEAD REVIEW: CITY MANAGER APPROVAL: GLENN S. ROBERTS JUNE FLEMING Ci,~y Manager CMR:224:96 Page 3 of 3 ATTACHMENT A BID SUMMARY PROJECT: FUEL STORAGE TANK UPGRADES Bidder Petrotek, San Jose Paradiso Mechanical, San Leandro Accutite, So. San Francisco Decon Environmental, Fremont Whiteman Petroleum, Windsor Amount $206,071 $225,031 $267,274 No bid (Late) No bid Attachment B ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1995-96 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR THE FUEL STORAGE TANK UPGRADE CAPITAL IMPROVEMENT PROJECT, 19205 WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 19,1995 did adopt a budget for fiscal year 1995-96; and WHEREAS, the Capital Improvement Project, Fuel Storage Tank Upgrade, was created to bring City fueling sites into compliance with local, state and federal regulations; and WHEREAS, the contract to upgrade the fuel tanks at certain city facilities including the Golf Course and Fire Stations One and Two was put out to bid this winter; and WHEREAS, the bids received for the work required to bring the sites into compliance exceeded the budget available in the existing capital improvement project; and WHEREAS, the budget needs to be amended provide an additional appropriation to Capital Improvement Project No. 19205, Fuel Tank Storage Upgrade, of $91,000 and funding is available in the Vehicle Maintenance Fund Retained earnings; and. WHEREAS, City Council authorization is needed to amend the 1995-96 budget as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The sum of Ninety One Thousand Dollars is hereby appropriated to Capital Improvement Project No. 19205, Fuel Tank Storage Upgrades and the Vehicle Maintenance Fund Retained Earnings are correspondingly reduced. SECTION 2. This transaction will reduce the Vehicle Maintenance Fund Retained Earnings from $652,000 to $561,000. SECTION 3. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 4. This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15302 of the CEQA Guidelines (replacement of existing facilities). SECTION 5. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Deputy City Manager, Administrative Services Director of Public Works (~.---’~Ul=Oll.~ ¯San Jose, CA ¯(408) 926-3676 @ Attachment C AGREEMENT BY THIS AGREEMENT MADE AND ENTERED INTO ON THE DAY OF BY AND 8E’f~NEEN THE CITY OF PALO ALTO (HEREINAFTER REFERRED TO AS CITY, AND (NAME) (1) (2)Petrotek, Inc. (ADDRESS)~ BOX 612317 (CITY) San Jose ~’DATE TO BE ENTERED -- [BY CITY PURCHASING (ZIP)(PHONEI4-08)453-188~ (HEREINAFTER REFERRED TO AS CONTRACTOR). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES HERETO AGREE AS FOLLOWS: CONTRACTOR SHALL PROVIDE OR FURNISH THE FOLLOWING SPECIFIED SERVICES AND/OR MATERIALS SPECIFIED IN EXHIBIT ATTACHED HERETO AND INCORPORATED HEREIN BY THIS REFERENCE: Furnish labor, equipment and materials to upgrade fuel storage tanks at Municipal Service Center, Golf Course, and Fire Stations 1,2,4 and 5 according to attached Bid #85338. EXHIBITS THE FOLLOWING ATTACHED EXHIBITS HEREBY ARE MADE PART OF THIS AGREEMENT: -Fuel Storage Tanks Upgrade Request for Proposal. Proposal from Petrotek, Inc. dated 2-22-96. -Certificate of InsuranceTERMS THE SERVICES AND/OR MATERIALS FURNISHED UNDER THIS AGREEMENT SHALL COMMENCE ON AND SHALL BE COMPLETED BEFORE Aug, ust 1, 1996 May i, 1996 COMPENSATION FOR THE FULL PERFORMANCE OF THIS AGREEMENT: ~,~ CITY SHALL PAY CONTRACTOR: monthly, final 10% of project amount paid after 35 days following Project Acceptance. [] CONTRACTOR SHALL PAY CITY: o o O PAYMENT RECORD (DEPARTMENT USE REVERSE SIDE) CITY ACCOUNT NUMBER: KEY CODE O~ECT ! PROJECT 7151~281 35~8 1 19205 71534630 3508 I 19520 PHASE NO.I DOLOR AMOUNT 999 1 75,000 999 131,071 GENERAL TERMS AND CONDITIONS ARE INCLUDED ON BOTH SIDES OF THIS DOCUMENT. THIS AGREEMENT SHALL BECOME EFFECTIVE UPON ITS APPROVAL AND EXECUTION BY CITY. IN WITNESS THEREOF, THE PARTIES HAVE EXECUTED THIS AGREEMENT THE DAY, MONTH, AND YEAR FIRST WRITTEN ABOVE. HOLD HARMLESS. CONTRACTOR agrees to indemnify, defend and hold harmless CITY, its officers, agents, and employees from any and all demands, claims or liability of any nature, including wrongful death, caused by or arising out of CONTRACTOR’S, its officers’, agents’ or employees’ negligent acts, errors, or omissions, or willful misconduct, or conduct for which the taw imposes strict liability on CONTRACTOR in the performance or failure to perform this agreement by CONTRACTOR. ENTIRE AGREEMENT. This agreement and the terms and conditions on the reverse hereof represent the entire agreement between the parties with respect to the purchase and sale of the equipment, materials or supplies or payment for services which may be the subject of this contract. All prior agreements, representations, statements, negotiations and undertakings whether oral or written are superseded hereby. NAME DEPT. PROJECT MANAGER AND REPRESENTATIVE FOR CITY Alan Simpson Public Works P.O. BOX 10250 PALO ALTO, CA 94303 Telephone 415) 496-6945 CONTRACTOR BY TITLE SOCIAL SECURITY OR I.R.S. NUMBER 77-0231328 TAA INVOICING SEND ALL INVOICES TO THE CITY, ATTN: PROJECT MANAGER CITY OF PALO ALTO APPROVALS" (ROUTE FOR SIGNATURES ACCORDING TO NUMBERS IN APPROVAL BOXES BELOW) CITY DEPARTMENT [-]Funds Have Been RISK MANAGERBudgeted (1)(2) IF OVER $5,000, REQUIRES CITY MANAGER’S SIGNATURE CITY OF PAL0 ALTO [FINANCE PURCHASING & CONTRACT ADMINISTRATION (3)(4) IF OVER $25,000, REQUIRES MAYOR AND CITY ATTORNEY SIGNATURES ATTEST:APPROVED AS TO FORM: BY:BY: