City Council
Report
City Council Meeting: August 22, 2023
Agenda Item: 5.G
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Bid to Fleming Environmental Inc. for Testing, Maintenance, and Repair of the City’s Underground and Above-ground Fuel Storage Tanks Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15301 and Section 15308 of the California Environmental Quality Act (CEQA) guidelines.
2. Award Bid #4449 to Fleming Environmental Inc. for testing, maintenance, and repair of the City’s underground and above-ground fuel storage tanks for the Public Works Department.
3. Authorize the City Manager to negotiate and execute an agreement with Fleming Environmental Inc. in an amount not to exceed $100,000 for one year, with four additional one-year renewal options at 3% increases per year for a total amount not to exceed $531,000 over a five-year period, with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica owns eight underground storage tanks (UST) and one aboveground storage tank containing diesel and unleaded fuel. These tanks provide fuel service for City fleet vehicles and support emergency generators at various City facilities. Each storage tank is tested once every three years to assess proper functionality and to comply with local, state, and federal guidelines. In addition, routine service and maintenance is required for each storage tank to ensure it is working properly. Staff recommends Fleming Environmental Inc. to provide testing, maintenance, and repair of the underground and above-ground fuel storage tanks in an amount not to exceed $531,000 over a five-year period.
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Discussion
The City’s eight underground and one above ground fuel storage tanks are located at various City facilities including at four fire stations, the Public Safety Facility, and the Santa Monica Airport. The airport underground tank stations are independently managed by Aeroplex. In accordance with local, state, and federal requirements, USTs and components must be regularly inspected, maintained, and tested. Fleming Environmental Inc. will perform 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. To ensure the safety of the USTs and regulatory compliance, the Public Works Department manages the City’s UST services while the Fire Department oversees enforcement of UST regulations. The Public Works Department uses an outside contractor with expertise in maintaining and testing USTs to support the City’s UST services.
Best and Only Bidder Fleming Environmental Inc.
Submittals Received Selection Criteria
Bidder $33,450 Municipal Code SMMC 2.24.180
Evaluation Criteria Price; the ability, capacity and skill of the bidder to perform or provide the services.
Bid Data
Date Posted Posted On
Advertised In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
03/09/2023 City's Online
Bidding Site Santa Monica Daily Press 13 04/14/2023
Additional Vendor Outreach & Justification to Award
Procurement conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid; No responses were received. Fisher Science Education submitted a no-bid response but did not respond to our inquiry. Fleming Environmental Inc. has provided these services in a good manner for the City for over ten years. Based on these criteria, Fleming Environmental Inc. is recommended as the best bidder. 3 of 4
Environmental Review
The routine testing and maintenance of the City’s USTs are categorically exempt pursuant to Section 15301 (Class 1 Existing Facilities) and Section 15308 (Class 8 Actions for Protection of the Environment) of the CEQA Guidelines. Section 15301 of provides exemption for the operation, repair, maintenance, permitting, or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. Section 15308 exempts actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. Any repair or maintenance activities completed under this contract is to maintain and/or repair existing facilities and equipment to meet current standards of public health and safety and ensure protection of the environment.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the General Fund and the Big Blue Bus Fund to award a contract with Fleming Environmental Inc. for testing, maintenance, and repair of the City’s underground and above ground fuel storage tanks for the Public Works Department.
Agreement Request
FY 2023-24
Request Amount Account # Future Years Amount
Total Contract
Amount
$50,000.00 01190001.550010 $215,500.00 $265,500.00
$35,000.00 60600011.550016 $150,850.00 $185,850.00
$15,000.00 01500020.529145 $64,650.00 $79,650.00
$100,000.00 Total $431,000.00 $531,000.00
Future year funding is contingent on Council budget approval. 4 of 4
Prepared By: Thomas Poon, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Oaks Initiative Form - Fleming Environmental Inc.