Title
Recommendation to Authorize the City Manager to Execute an Agreement with Tait & Associates for Engineering and Permitting Services for Replacement of the Underground Storage Tanks at the Police Station and Maintenance Service Center for a Total Not-to-Exceed Amount of $188,925.
In accordance with the California Environmental Quality Act (CEQA), this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), and 15308 (Actions by Regulatory Agencies for Protection of the Environment). (Public Works C41000)
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 Underground Storage Tanks (UST), which are regulated under the California Health and Safety Code. The USTs store fuel for fleet and emergency services. To maintain compliance with the regulatory requirements, all four tanks must be “permanently closed” by December 31, 2025. Once decommissioned, new compliant tanks can be installed. To ensure the project proceeds in accordance with the applicable health and safety codes staff issued a Request for Proposal (RFP) for engineering, design and permitting services. Through this process staff identified a qualified service provider and recommends the City enter into an agreement with Tait and Associates for a sum not-to-exceed $188,925.
BACKGROUND
The City owns and operates four active USTs. Three are located at the City’s Maintenance Service Center (MSC) and provide fuel to the City’s fleet for everyday operations, while maintaining a sufficient reserve for emergency events. The fourth UST is located at the Police Department (APD) and fuels the facility’s emergency back-up generator, ensuring the continuity of critical operations during power outages.
The existing USTs are all single-wall apparatuses and are no longer compliant under Health and Safety Code section 25290.1(c), which requires all underground storage tanks to be “designed and constructed to provide primary and secondary levels of containment of the hazardous substances stored in it in accordance with” specified performance standards. As a result, the State Water Control Board has set a December 31, 2025 deadline for the closure of all single-wall USTs. There are two options to satisfy closure: the tank may be removed or abandoned in-place. Both require multiple layers of permits and approvals from the Alameda County Department of Environmental Health, as well as close-out documentation ensuring environmental compliance.
Once closed, new compliant storage and fueling facilities will be installed so that the City can continue to provide ongoing regular use and emergency fuel service. For this purpose, staff determined that the most cost-effective and compliant solution to meet usage needs is to install new Above Ground Service Tanks (AST) at MSC and a replacement UST at APD.
DISCUSSION
The regulatory requirements and design/engineering for UST and AST facilities are complex and require specialty services. Staff prepared and published a Request for Proposal (RFP) for engineering, design, and permitting services to close and replace the USTs at both facilities. The RFP was published on February 23, 2024, advertised in the Alameda Journal, and after a submittal period of 21 days, one proposal was received. The proposal results are as follows:
|
Provider |
Location |
|
Tait & Associates |
Rancho Cordova, CA |
Although there was interest during the solicitation from multiple contractors, staff believes that only one response was received due to the advertised requirement that the awarded firm would not be eligible to bid on the construction of the new tanks. The City’s Municipal Code requires design build contracts to be in excess of one million, which this project may not be. After review of the submitted proposal, interviews with Tait & Associates, and verification of references, staff recommends awarding the contract to Tait & Associates for a total amount of $188,925.00. Tait & Associates is a well-established company with extensive experience and proven capability to perform the defined scope of work. They have demonstrated successful completion of the permitting, design, and construction of UST and AST fuel storage/fueling facilities for several municipalities. They have highly qualified engineering staff who routinely partner with municipalities to implement cost-effective solutions to maintaining compliance with regulations around these facilities. The service provider agreement is attached as Exhibit 1.
ALTERNATIVES
• Award the agreement as recommended.
• Provide direction to modify the scope or authorized amount of the agreement.
• Do not award this agreement and give another direction to staff. In-house staff do not have the knowledge or expertise to perform all the services in this agreement. Not executed this agreement may delay the work necessary to meet regulatory deadlines, exposing the City to potential fines or other regulatory action.
FINANCIAL IMPACT
The funds for this project are budgeted in the Capital Improvement Program (Project No. C41000). There is no additional impact on the General Fund.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code and is consistent with the FY 2023-26 Strategic Plan priority to Invest in Transportation, Infrastructure, Economic Opportunities and Historic Resources. This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with CEQA, this action is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), and 15308 (Actions by Regulatory Agencies for Protection of the Environment).
CLIMATE IMPACT
The closure of the existing aged UST’s will reduce the possibility of underground fuel leaks that could potentially contaminate groundwater as groundwater levels rise. Installation of ASTs at the MSC allows for more flexibility in changing fuel storage needs as the City continues to increase electric vehicle usage.
RECOMMENDATION
Authorize the City Manager to execute an Agreement with Tait & Associates for the engineering, design and permitting for the UST projects at the Police Station and MSC.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Mike Billington, Project Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibit:
1. Agreement