City Council
Report
City Council Meeting: May 24, 2022
Agenda Item: 3.C
1 of 4
To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Architecture Services Subject: Approval of Second Modification to Agreement #3438 with Fleming Environmental for Urgent Repairs to the Veeder Root System of Underground Fuel Storage Tanks
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a second modification to agreement #11099 (CCS) (formerly CT# 3438) in the amount of $182,000 (including contingency) with Fleming Environmental Inc., to perform an urgent repair to the Underground Storage Tank (UST) monitoring system at the Public Safety Facility (PSF) along with additional funding for maintenance and repair on the 13 other sites located in the City. This would result in a five-year amended agreement with a new total amount not to exceed $353,730, with future year funding contingent on Council budget approval.
Summary
Since 2018, the City has contracted with Fleming Environmental, Inc. (Fleming) for the routine inspection and repair of City-owned Underground Storage Tanks (UST). These tanks are used to store fuel for backup generators and other equipment and must meet certain Fire Life Safety criteria to be certified for use. Several critical deficiencies were identified for the UST at the Public Safety Facility (PSF) and the Santa Monica Fire Marshall has deemed the monitoring system for the UST as non-compliant. If these repairs are not made, the City would not be able to fuel the PSF emergency generator needed to supply power to crucial emergency response systems during a power outage.
The repairs identified in the inspections exceed the current scope of anticipated work, so additional funds are requested to address these critical issues at PSF along with additional funding for maintenance and repair on the 13 other City UST sites. This 2 of 4
second modification is seeking authority to increase the contract by $182,000 for a total contract amount Not to Exceed (NTE) $353,730 through 2023.
Discussion
The City Hall Campus (Historic City Hall, City Hall East, and the PSF) are all on an emergency generator backup and the fuel for those generators is stored in USTs. The USTs containing diesel and unleaded fuel are located at 14 sites throughout the City, and in accordance with local, state, and federal requirements, underground storage tanks and components must be regularly inspected and tested. Fleming is the City’s current service provider for inspection and repair. This vendor performs both Designated Operator Services (which include monthly inspections, staff training, and alarm documentation) and Secondary Containment Testing every three years to determine that no leaks occur from primary containment. During inspections conducted at the PSF last year, Fleming identified several issues, such as alarm panels in a nonmonitored area, discontinuation of manufacturer’s system support, and several malfunctioning sensors. Further, the Santa Monica Fire Marshall declared that the issues must be addressed or PSF would be out of compliance and the emergency generators would be taken out of service, as the fuel source would not be available. The first modification to the contract was authorized by Council to cover necessary repairs identified for the UST at the PSF and extend routine inspection services. After excavating the buried tank at the PSF, the necessary repairs were found to be more extensive than anticipated, hence this second modification request.
Vendor Selection
Fleming was selected from six vendors that responded to formal bid 4337 on March 29, 2018. A five-year professional services agreement not to exceed $80,000 was executed in FY 2018-19 (Attachment A). Council approval was not required in accordance with the City’s procurement policy. The first modification in the amount of $91,730 increased the total not to exceed amount from $80,000 to $171,730 to cover necessary repairs for the UST at the PSF, routine inspection, testing, and maintenance as well as an average of two service repairs to each UST (Attachment B) only. This request is to award a second modification to cover the critical and unexpected costs ($142,690) for the 3 of 4
identified repairs at the USTs at the PSF, along with providing enough budget for maintenance and repair to the other 13 UST sites in the City through the end of the contract’s five-year term on June 30, 2023. Staff would competitively bid a new contract in early 2023, but this repair work is crucial and must be completed immediately.
Past Council Actions
Meeting Date Description
10/27/20 (Attachment C) Approval of First Modification to Agreement with Fleming for Inspections and Testing of Underground Fuel Storage Tanks Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund, Big Blue Bus Fund, and Vehicle Management Fund operating budgets to increase the amount of the agreement with Fleming Environmental Inc., to make these urgent repairs as soon as possible and continue maintenance and repair through FY 2022/23. Future year funding is contingent on Council budget approval.
Agreement Modification Request
Agreement #
Current Authorized
Amount
FY 2021-22
Budget
Modified
Request
Amount
Dept Account # Total Revised
Contract Amount
11099 $171,730 $39,310 Various $211,040
11099 $0 $142,690 01500020.529145 $142,690
Total: $353,730
4 of 4
Prepared By: Amber Richane, Architectural Associate
Approved Forwarded to Council
Attachments:
A. Contract 3438 - Fleming Environmental Original Agreement B. First Modification - Contract 11099
C. October 27, 2020 Staff Report (Web Link)
D. 2021 OAKS INITIATIVE FORM