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Home My WebLink About1996-09-16 City Council (39)TO: City of Palo Alto Manager’s Report HONORABLE CITY COUNCIL 9 FROM:CITY MANAGER DEPARTMENT: Public Works AGENDA DATE: September 16, 1996 CMR: 385:96 SUBJECT:Approval of Contract Amendment with PETROTEK, for Fuel Site Improvements - CIP 19250, and Fuel Storage Tank Upgrade - CIP 19205, Budget Amendment Ordinance REQUEST This report requests that Council approve a contract amendment in the amount of $75,000 to PETROTEK, for Fuel Site Improvements and Fuel Storage Tank Upgrades. Staff also requests that a Budget Amendment Ordinance (BAO) for $75,000 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. Council approved an award of contract and BAO on April 15, 1996 (CMR:224:96) to PETROTEK for $216,000 including change order authority. This BAO allows for an increase of $75,000 to cover additional work required to complete the project. RECOMMENDATIONS Staff recommends that Council: Approve the attached Budget Amendment Ordinance in the amount of $75,000 to fund additional work required for Fuel Site Improvements and Fuel Storage Tank Upgrades. Authorize the City Manager or her designee to negotiate and execute one or more change orders to the contract with PETROTEK, increasing the total value of change orders by $75,000 from $9,929 and shall not exceed $84,929. 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 Capital Improvement Projects have been designed to bring City fueling sites into compliance with local, state and federal CMR:385:96 Page 1 of 3 regulations affecting fuel storage facilities. The site improvements include the Municipal Service Center, Golf Course Maintenance Yard, and Fire Stations 1, 2, 4 and 5. Work in Progress PETROTEK started work at Fire Station 1, which had the most severe code compliance problems. After removal of the tank cover and an examination of all tank components, it was discovered that much more extensive work was necessary to bring the tank system into compliance with current codes. In addition to the tank, components such as piping and sumps required retrofitting. Upon further investigation, it was determined that all eight sites were in similar condition. Staff then evaluated the options of retrofitting or replacing the tank systems. The main problem with retrofitting the existing tanks is changing the plumbing connections. These tanks were not designed for new sumps and, as a result, have insufficient clearances for standard plumbing connections. Modifying the plumbing would make future maintenance difficult. Also, the plumbing could more easily be affected by ground settling and earthquake movement. Therefore, staff recommends that the existing tank system not be modified, but replaced with new tank systems. Staff received an estimate of $4,289 for a new 1,000 gallon tank as compared to $6,550 for retrofitting the existing tank. Staff recommends: o Removal and disposal of eight existing underground fuel tanks. Installation of new tanks to resolve the issue of proper plumbing installation. Installation of new tanks above ground at the Golf Course Maintenance Yard to avoid problems of water intrusion from the high water table. Locating the dispensers and tanks away from the buildings and installing emergency shutoffs in appropriate locations. The benefits of these recommendations are: 2. 3. 4. 5. 6. Increased fuel inventory by 100 percent and improved emergency reserve. Safer access for equipment filling by employees. Reduced fuel restocking by 50 percent per year. Improved Fire Station access for fuel deliveries. Avoidance of impacts to future building remodeling or construction. Extended tank warranty coverage by a single contractor and manufacturer to 30 years. The request for an additional $75,000 includes $40,000 for the cost of six new underground tanks for the Fire Stations and two aboveground tanks for the Golf Course Maintenance Yard to replace two underground tanks, and $35,000 for the cost of removing the eight existing underground fuel storage tanks at these sites. CMR:385:96 Page 2 of 3 FISCAL IMPACT Funds are requested from the Vehicle Maintenance Reserves per the attached BAO; and funds have been previously 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 oft he CEQA Guidelines (Replacement of existing facilities). ATTACHMENTS A - Cost Summary B - Budget Amendment Ordinance PREPARED BY: Alan Simpson, Fleet Manager DEPARTMENT HEAD REVIEW: GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: \City Manager CMR:385:96 Page 3 of 3 Cost Summary-Fuel Site Improvements Current Contract including change order Purchase 6 new belowground tanks and 2 aboveground tanks Remove 8 old belowground tanks BAO subtotal request Revised total cost for Fuel Site Improvement Project Ao (B+C) D. (A4-D) E. $ 40,000 $ 35,000 $216,000 $ 75,000 $291,000 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING ’THE BUDGET FOR THE FISCAL YEAR 1996-97 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 24, 1996 did adopt a budget for fiscal year 1996-97; and wHEREAS, the Capital Improvement Project 19205, Fuel Storage Tank Upgrade was created to bring City fueling sites into compliance with local, state, and federal regulations; and WHEREAS, the appropriation to this CIP was previously increased based on contractor’s estimates to conduct the final phase of fuel tank upgrading; and WHEREAS, at the commencement of the final phase of upgrade work it was discovered that the fuel tanks included leak containment systems which had not been documented in origina! tank work and which are insufficient for leak containment; and WHEREAS, through further research it has been determined that the safest and most appropriate course of action is to remove the current tanks and. replace them with new tanks which contain leak containment systems; and WHEREAS, the budget needs to be amended to provide an additional appropriation to Capital Improvement Project 19205, Fuel Tank Storage Upgrades, of $75,000 and funding is available in the Vehicle Maintenance Fund Retained Earnings; and WHEREAS, City Council authorization is needed to amend the 1996-97 budget as hereinafter set forth. < NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The sum of Seventy Five Thousand Dollars ($75,000) 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 $504,400 to $429,400. 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 has been determined to be categorically exempt under Section 15302 of the California Environmental Quality Act. 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 Administrative Department Manager, Services Director of Public Works