Title
Recommendation to Authorize the City Manager to Execute an Agreement with Armer Norman and Associates, Inc., in an Amount Not-To-Exceed $2,271,825, for the Underground Fuel Storage Tanks Replacement Project at Maintenance Service Center and Alameda Police Station.
This project is categorically exempt from further environmental review under the California Environmental Quality Act (CEQA) pursuant to Sections 15301 (existing facilities) and 15302 (replacement or reconstruction). (Public Works 310)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
The City of Alameda (City) owns and operates four single-walled Underground Fuel Storage Tanks (UST). Three are located at the Maintenance Service Center (MSC) and provide fuel for the entire City fleet. The fourth UST is located at the Alameda Police Station (APD) and supplies fuel to the building’s emergency generator. For environmental purposes, the State of California is requiring the closure of all single-walled USTs as they do not provide adequate safety measures. Staff recommends City Council authorize the City Manager to execute an agreement with Armer Norman and Associates, Inc. for the UST Replacement Project at MSC and APD in an amount not-to-exceed $2,271,825.
BACKGROUND
Under California Health and Safety Code Section §25292.05, all single-walled USTs must be permanently closed by December 31, 2025. Single-walled systems lack secondary containment and continuous leak detection, making them non-compliant with current standards.
The City’s fueling station at MSC is currently served by three single-wall, fiberglass USTs (one 6,000-gallon gasoline tank and two 1,000-gallon diesel fuel tanks). The City’s intent is to abandon these tanks in-place and install new Above Ground Storage Tanks (AST) and associated fueling equipment to meet current and future fueling needs and regulatory requirements. APD has one diesel-fueled standby/backup generator that is served by a 6,000-gallon, single-wall, fiberglass UST. The City’s intent is to remove this tank and replace it with a new double-wall compliant UST with a capacity of 6,000 gallons.
All tanks associated with the scope will be closed in accordance with the Alameda County Department of Environmental Health (ACDEH) requirements and associated state and federal regulations.
DISCUSSION
To solicit the maximum number of bids and most competitive price, plans and specifications were provided to 16 separate builders’ exchanges throughout the Bay Area. Notices inviting bids were placed on the City’s web page and published in the Alameda Sun on May 16, 2025. After a bidding period of 17 days, one bid was received:
|
Contractor |
City |
Base Bid Amount |
|
Armer Norman and Associates, Inc. |
San Leandro, CA |
$1,975,500 |
Although only one bid was received, it was in line with the engineering estimate provided by the design engineer. Public Works Staff contacted references provided by the bidder and received positive feedback on the ability of the company to meet the project requirements and the quality and timeliness of its work.
Staff recommends executing an agreement with Armer Norman and Associates, Inc. for a total amount of $2,271,825, which includes the base bid of $1,975,500 and a 15% contingency of $296,325. The contractor is not guaranteed any of the contingency amount and the use of the contingency will be at the sole discretion of the Public Works Director for work not originally anticipated in the plans and specifications.
ALTERNATIVES
• Award the agreement as recommended to meet the regulatory deadline.
• Adjust or modify scope within the agreement.
• Do not award the agreement and provide alternative direction to staff. Failure to meet the regulatory deadline of having USTs closed by December 31, 2025 may result in fines.
FINANCIAL IMPACT
Funds for this project are available in the Capital Improvement Program C41000 - City Buildings. There is no impact to the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Municipal Code and the City’s Procurement Policy. Also, the proposed project is consistent with the City’s Strategic Plan to “Invest in Transportation, Infrastructure, Economic Opportunities & Historic Resources.”
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
This project is Categorically Exempt from environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction).
CLIMATE IMPACT
When the project is completed, the installation of the new double-walled fuel tanks will have a direct positive impact on the climate and environmental conditions around these facilities. Installation of double-walled fuel tanks and associated piping will prevent unintended fuel leaks into the soil and groundwater underlying these facilities.
RECOMMENDATION
Authorize the City Manager to execute an agreement with Armer Norman and Associates, Inc., in an amount not-to-exceed $2,271,825, for the Underground Fuel Storage Tanks Replacement Project at Maintenance Service Center and Alameda Police Station.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Laura Pate, Project Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibit:
1. Construction Agreement