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HomeMy WebLinkAbout19 CIP 10033 12-07-98AGENDA, , ':' Z-I- g : '~t ., NO. 19 : 12-7-98 DATE: DECEMBER 7, 1998 Inter-Com TO: FROM: SUBJECT: WILLIAM A. HUSTON, CITY MANAGER PUBLIC WORKS DEPARTMENT/FIELD SERVICES DIVISION AWARD OF CONTRACT FOR THE UNDERGROUND STORAGE TANKS REMOVAL AND REPLACEMENT PROJECT (CIP NO. 100033) ,, SUMMARY This project will provide for the removal and replacement of the underground fuel storage tanks at the Public Works Yard. This particular project is required by the State Water Resources Control Board to bring the City ofTustin's fuel island into compliance with Federal, State and County regulations. RECOMMENDATION It is recommended that the Tustin City Council: A. Award the subject contract to Miller Brooks Environmental, Inc., in the amount of $326,286.30, and authorize the Mayor and City Clerk to execute the contract documents on behalf of the City. B. Approve the transfer of $70,000 from the construction phase of the Irrigation System Replacement Project on Jamboree Road (CIP NO. 200038) to the subject project in the 1998/99 Fiscal Year Budget. C. Authorize City staff to contract with CardloCk Fuels to provide for the City's fuel needs, beginning January 1, 1999 and continuing until the completion of construction of this project. FISCAL IMPACT The Fiscal Year 1998/99 Capital Improvement Program (CIP)Budget provides $270,000 for the construction phase of this project. A transfer of $70,000 from the Jamboree Road Irrigation System Replacement Project (CIP No. 200038) to this project will provide the additional funds to cover the contract amount and will allow for a small contingency of approximately 4% of the construction contract. Funds for the construction phase of the Jamboree Road Irrigation System Replacement Project will then be requested during the FY 99/00-budget cycle based on the completion of the Irrigation System Study. The Tustin Unified School District (TUSD) previously committed to fund $115,000 of the project based on the preliminary budget cost and the current agreement with the City governing the existing fuel storage and dispensing facilities. The current agreement between the City and the TUSD was executed on June 13, 1977 for. a 25-year term and was intended to regulate the construction, operation, maintenance, and joint use of the existing fuel facility. The agreement states that the City and the TUSD shall share the cost and expenses of maintenance and replacement in the same Proportion as each has consumed fuel during the preceding twelve months. Based upon FY 97/98 fuel usage the School District would be responsible for 49.85% of the project cost (design and construction) or approximately $167,638. This excludes the removal and replacement of the used oil tank and any project Award of Contract for the Underground Storage Tanks Removal and Replacement Project December 7, 1998 Page 2 contingencies. The School District has verbally committed to provide an additional $13,000, bringing their total commitment to $128,000 or approximately 38% of the shared project costs. However, due to budgetary constraints and current obligations with their transportation contractor, the School District is unable to contribute any additional funds and continue to participate in the project. The additional $39,638 would need to be provided by the City and would increase the City's percentage share from 50.15% to 62%. During the term of construction, gasoline purchased from CardLock Fuels will cost approximately $0.08 to $0.10 over wholesale price and will impact the Field Services budget by approximately $3200. This expense was anticipated and sufficient funds have been budgeted in the FY 98/99 Operating Budget. BACKGROUND Seven (7) bids were received on November 3, 1999 and are summarized as follows: Miller Brooks Environmental, Inc ............................ Urbantec Engineers, Inc ........................................ MZN Construction, Inc ........................................ Ground Water Remediation .................................... Fleming Environmental, Inc ................................... Environmental Engineering & Contracting, Inc ............ A.E. Schmidt Environmental ...................... ............ $326,286.30 $329,025.00 $336,330.50 $351,759.49 $357,629.45 $598,718.60 Rejected as Non-Responsive The proposed project is located at 1472 Service Road, City of Tustin Maintenance Facility. The project provides for the removal of three existing 12,000-gallon, single wall, fiberglass fuel tanks and their replacement with two-fiberglass coated, double wall, steel tanks (one 15,000-gallon tank for unleaded gasoline and one 12,000-gallon tank for diesel fuel). The project also provides for the removal and replacement of one 500-gallon waste oil tank along with all piping and dispensing equipment. Current Federal, State and County regulations have mandated that all underground storage tanks (UST), installed prior to 1988, be upgraded, removed, and replaced or closed by December 22, 1998. This means that no fuel can be sold or delivered to anyone whose tanks do not meet the UST requirements after January, 1, 1999. Therefore, staff is also requesting Council authorization to contract with Cardlock Fuels, located on the southeast comer of Newport Avenue and Bonita Street, to provide the City's fleet with fuel. The Cardlock facility was selected due to its convenient location, their reasonable pricing (approximately $0.08 to $0.10 per gallon over the wholesale price), and their easy to use card system. Cardlock will issue special cards for each City division that needs to fuel their equipment during the construction period, beginning January 1, 1999. The Field Services' staff will coordinate with all divisions to ensure a smooth operation. The Tustin Unified School District and their transportation contractor, Ryder Student Transportation Services, have made independent arrangements to fuel their equipment during the construction period. Award of Contract for the Underground Storage Tanks Removal and Replacement Project December 7, 1998 Page 3 The proposed tentative schedule for this project is as follows: Award of Contract, ........................................... Commence Construction ..................................... Complete Construction ....................................... 12/07/98 01/11/99 04/15/99 Tim D. Serlet ' - - x,...._....., Director of Public Works/City Engineer Wisam Altowaiji Field Services Manager TDS:WA:Underground Storage Tanks award