CITY COUNCIL STAFF REPORT
Meeting Date: October 16, 2023
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. __-23 ACCEPTING PROPOSAL AND
AWARDING THE CONTRACT FOR THE CITY OF PLEASANT HILL
POLICE DEPARTMENT UNDERGROUND STORAGE TANK
REPLACEMENT PROJECT NO. PSC-01-23 AND AUTHORIZING THE
CITY MANAGER TO EXECUTE A CONSTRUCTION CONTRACT
WITH PETRO-ANALYTICAL, INC.
SYNOPSIS
The City of Pleasant Hill Underground Storage Tank (UST) Replacement Project PSC-01-23 provides for the removal and replacement of the existing UST located at the Police Department rear parking lot. The purpose of this item is for the City Council to consider the acceptance of the lowest responsive, responsible bid from Petro-Analytical, Inc. for the project and authorize the City Manager to execute the construction contract.
DISCUSSION
Background
The City of Pleasant Hill Underground Storage Tank (UST) Replacement Project, which is identified in the approved Capital Improvement Plan FY 2022 – 2027 (CIP), to remove and dispose of the single-walled UST system located in the rear parking lot and install a new double-walled UST system in compliance with State regulations.
The existing UST system, designed in 1996 and installed in 1997, consists of a 12,000-gallon, single-walled tank, related piping, a fuel pump, fuel island, and overhead canopy. The system was upgraded in 1998 to include containment manholes, an overfill prevention system, and a tank monitoring system. Additional upgrades installed in 2002 replaced all the single-walled underground piping with double-walled piping.
On September 25, 2014, the California State Senate passed Senate Bill (SB) 445, requiring all single-walled UST’s designed and constructed before January 1, 1997, to be permanently closed no later than December 31, 2025. All single-walled UST’s that are not removed by this date will be red tagged by Contra Costa Health Services (CCHS) and subject to financial penalties of $500 to $5,000 per day per SW UST Health and Safety Code Section 25299. CCHS has notified the City this UST has been identified as one such tank, and therefore must be closed by December 31, 2025. A new, double-walled UST system must be installed to continue to provide adequate fueling services to the City’s Police Department.
SB 445 is a statewide mandate, and as such there will be significant number of single-walled UST’s being removed and replaced statewide, with a limited number of contactors and materials (tanks and piping) available to municipalities to complete the work prior to the deadline. Staff research has revealed that similar projects are taking 18 to 24 months to complete. This timeline, combined with the technical nature of the project, and the need for professional expertise required that City staff bid this project as a Request for Proposal (RFP) Design/Build project.
This process is used to identify contractors with the necessary background and experience to provide services and to ensure that the cost for services is competitive. The RFP was sent to Contractors known to the City to perform this type of work and solicited through an open and competitive RFP process. The RFP specified that selection would be based on quality and completeness of submissions, as well as a firm's experience with project work of similar scope and complexity. Staff has confirmed with the City Attorney’s office that this RFP process is appropriate for this type of project.
Environmental Review
The Zoning Administrator has determined that the City of Pleasant Hill Police Department Underground Storage Tank Project No, PSC-01-23 is categorically exempt from review under the California Environmental Quality Act (CEQA) as it is a Class 1 (CEQA Guidelines Section 15301) repair or maintenance of existing public facilities or mechanical equipment involving negligible or no expansion of an existing use, and a Class 2 (CEQA Guidelines Section 15302) replacement or reconstruction of existing facilities involving negligible or no expansion of capacity.
Analysis
Staff issued a Request for Proposals (RFP) Design/Build project on September 5, 2023, to three qualified contractors known to complete these types of projects: Petro-Analytical, Inc.; Johnson Tank Fuel Systems and Testing, and Armour Petroleum. In response, only Petro-Analytical Inc. submitted a complete project proposal for the City’s consideration by the October 3, 2023 deadline.
In order to ensure a quality project for the City, staff reviewed Petro-Analytical’s proposal and conducted an oral interview with the firm’s owner. Petro-Analytical was evaluated based on the following evaluation criteria: qualification of the project team, project understanding, and ability to meet the project schedule. In addition, Petro-Analytical has previously completed two projects for the City: the UST Repairs at the Public Services Center, and the UST Annual Sensor Installation Project. Staff believes that they have the expertise and professional competency that will result in a successful project delivery within the project schedule and budget.
The Engineer’s Estimate (EE) for the project construction is $1,200,000 and Petro-Analytical’s bid is $1,198,910 (including contingency), slightly lower than the EE. A detailed analysis of their bid revealed that the bid is complete and the bid price is reasonable for this type of project.
FISCAL IMPACT
The total authorized amount is $1,198,910, and the project is being funded from the American Rescue Plan Act as identified in the CIP. The Finance division confirmed that sufficient funds are available for the construction of this project.
PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.
RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution to accept the lowest responsive, responsible bid from PetroAnalytical, Inc. and authorize the City Manager to execute the construction contract.
ALTERNATIVES TO RECOMMENDED ACTION
None Recommended.
ATTACHMENT(S):
Proposed Resolution
Exhibit A - Proposal
Agreement
Prepared by: Ann James, Public Works Manager
Reviewed by: Erick Cheung, Finance Manager
Approved by: Ethan Bindernagel, City Manager