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HomeMy WebLinkAbout05/04/1999, C5 - ABOVE-GROUND FUEL STORAGE TANKS council 5/4/99 j acEnaa Report CITY OF SAN LUIS O B I S P O FROM: Robert F.Neumann,Fire Chief 0 Prepared By: Spencer Meyer, Fire Protection Specialist Viv R.Dilts, Administrative Assistant SUBJECT: Above-Ground Fuel Storage Tanks CAO RECOMMENDATION • Approve Specification No. 90018 to solicit bids for two, 12,000 gallon above-ground fuel storage tanks for the Corporation Yard: One for the storage/dispensing of gasoline One(7/5K Split) for the storage/dispensing of gasoline and diesel fuels • Authorize the CAO to award the contract if it is within the project's budget of$80,000. DISCUSSION In 1987, this department developed a plan to address the regulatory requirements for the City's thirteen underground storage tanks. At that time, the program's intent was to upgrade all of the City's existing tanks to meet the minimum requirements of the State and Federal Underground Tank Regulations. However, as these regulations became more sophisticated and remediation costs for leaking tank sites skyrocketed, it became clear that merely upgrading the City's existing tanks was only an expensive short-term fix which did not address the potential environmental liability issue. Therefore, staff changed the objective of the tank program to focus on the removal of non-complying/non-essential tanks and replacement of essential tanks with aboveground ones. In late December, 1998, it was discovered that the underground fuel storage tanks located at the Corporation Yard did not meet current state and federal regulations and should be replaced. While the tanks themselves were within standards, the tank fill areas required spill control/catch basins and the associated plumbing to the tanks from the fill basins did not meet standards. As discussed in the alternative, the tanks which are single-wall construction are currently the industry's minimum standards. Staff believes it is only a matter of time before the standard is increased to include a double-wall component. FISCAL IMPACT Recently, Council approved a mid-year request of$35,000 for the removal of the existing fuel storage tanks and $80,000 for two above-ground fuel storage tank replacements. C5-1 Council Agenda Report—Above-Ground Fuel Storage Tanks Page 2 ALTERNATIVES • Do not replace: The disruption caused by the inconvenience of fueling by private vendors would be significant. Additionally,there would be no reserves in case of emergencies. • Upgrade existing tanks. Upgrading existing tanks would cost $35,000-40,000 and would only meet minimum requirements. With a minimum upgrade, the system would be composed of single wall tanks and piping. The system would fall far below minimum current code requirements and industry standards, which specify double-walled systems. Single-walled systems are considered by the industry to be an unacceptable environmental liability. Staff believes that it will only be a matter of time before the entire system needs to be replaced. • Replace existing underground storage tanks with new ones. Removing and replacing existing underground storage tanks and associated piping with like tanks would cost $155,000 They would fall under the same very restrictive and ever-changing underground storage tanks regulations. Additionally,they would be costly to maintain. ON FILE IN THE COUNCIL OFFICE Bid package C5-2 i��►���iiii������ll ��►s� li eity of San Luis Obispo 990 Palm Street ■ San Luis Obispo,CA 93401 Notice Inviting Bids for Aboveground Fuel Storage Tanks To Be Located At: 25 Prado Road, City of San Luis Obispo (Corporation Yard) The City of San Luis Obispo is requesting sealed bids for the purchase of two, 12,000 gallon Aboveground Fuel Storage Tanks(AST), which shall include the following features: • One AST shall have the capacity of 12,000 gallons and shall be dedicated to the storage/dispensing of gasoline. • One AST shall have the capacity of 12,000 gallons (7/5K Split) and shall be dedicated to the storage/dispensing of gasoline and diesel fuels. Pursuant to Specification No. 90018-1A. All bids must be received by the Department of Finance by 3:00 pm, Tuesday, May 18, 1999, when they will be opened publicly in the City Hall Council Chambers, 990 Palm Street, San Luis Obispo,CA 93401. Bids received after said time will not be considered. To guard against premature opening,each bid shall be submitted to the Department of Finance in a sealed envelope plainly marked with the bid title, specification number, bidder name, and time and date of the bid opening. Bids shall be submitted using the forms provided in the specification package. Specification packages and additional information may be obtained by contacting City of San Luis Obispo Fire Department, Spencer Meyer at(805)781-7383. ® The City of San Luis Obispo is committed to including disabled persons in all of our services,programs and activities. Telecommunications Device for the Deaf(805)781-7410. C5-3 Specification No. 90018-1A TABLE OF CONTENTS A. Description of Work 1 B. General Terms and Conditions 9 Bid Requirements Contract Award and Execution Contract Performance C. Special Terms and Conditions 14 Contract Term Estimated Quantities Bid Content Bid Evaluation and Selection Bid Review and Award Schedule Start and Completion of Work Accuracy of Specifications D. Agreement 16 E. Insurance Requirements 18 F. Bid Submittal Forms 19 Bid Submittal Summary References C5-4 Section A DESCRIPTION OF WORK The City is requesting bids for the purchase of two, 12,000 gallon Aboveground Fuel Storage Tanks (AST),which shall include the following features: 1. GENERAL A) One AST shall have the capacity of 12,000 gallons and shall be dedicated to the storage/dispensing of gasoline. B) One AST shall have the capacity of 12,000 gallons (7/5K Split) and shall be dedicated to the storage/dispensing of gasoline and diesel fuels. 2. REGULATORY REQUIREMENTS A) Air Pollution Control District(APCD) 1) Obtain approval for the tanks to be installed. B) California Air Resources Board(CARB) 1) Approved for Balance Vapor Recovery, "CARB Executive Order G-70" C) California Code of Regulations(CCR) 1) Title 8,Title 19,Title 24 2) Title 8,Division 1, Chapter 4, Subchapter 7,General Industrial Safety Orders. 3) Title 8,Article 144; Service Stations. 4) Title 8,Article 145;Tanks. 5) Title 19,Division 1,Chapter 11.5: Gasoline Vapor Control Systems. 6) Title 24, Part 3; Electrical Code D) Code of Federal Regulations(CFR) 1) As administered by OSHA. E) National Fire Protection Association (NFPA) 1) NFPA 30; Flammable and Combustible Liquids Code. 2) NFPA 30A; Automotive and Marine Service Station Code. F) Occupational Safety and Health Administration(OSHA) 1) Steps and handrails per 29 CFR 1910 G) Underwriters' Laboratories,Inc. (UL) 1) UL listed, 142 Standard for Steel Aboveground Tanks for Flammable and Combustible Liquids. H) Uniform Building Code(UBC): 1991 edition: 1) Title 24 Amendments and Section 9.111 C-5 5- -1- 1) Uniform Fire Code(UFC) 1994 edition: 1) Standard No. 79-7 (Including Impact and Ballistic Tests), Testing Requirements For Protected Motor Vehicle Fuel Storage Tanks. Unless approved by the City, all testing to be performed on a single fully assembled tank unit,and no part of test shall be waived. 3. SUBMITTALS A) Test Reports and Measurements: Submit the following information to the Project Coordinator: 1) Tank UFC 79-7 Listing Numbers (as issued by Underwriters' Laboratories, Southwest Research Institute, or other City approved testing organization. 2) Proof of tank manufacturer's Product Liability Insurance in the amount of$1,000,000 minimum. 3) Tank Installation Checklist. 4) All test reports as required by the City. 4. PRODUCTS: ABOVEGROUND FUEL STORAGE TANK A) General: The Protected Aboveground Tank shall be furnished as a complete factory prefabricated unit. All components listed shall be factory installed. B) Components: 1) Primary containment of 3/16 inch steel, capable of on-site pressure testing for verification of primary tank integrity. 2) Non-settling thermal and physical protective material. Loose fill that may drain from the tank in the event of a rupture of the outer shell is not acceptable. 3) The exterior surface of the tank assembly shall be painted with two coats of petroleum resistant epoxy paint. 4) Secondary containment, with the capability of physical monitoring for leaks from the primary containment field pressure test (reproducing the listing production test), and containing a means to remove liquid. Secondary containment may be inside or outside of the then:nal/physical protective material, as submitted, tested and certified by UFC 79-7 for the tank manufacturer. 5) The entire tank assembly, including primary and secondary containments and thermal/physical protective material, shall be warranted by the manufacturer for 30 years. 6) Primary containment shall be equipped with atmospheric and emergency vents. Secondary containment shall be vented. 7) All opening to primary and secondary containment shall be on top. 8) Tank assembly shall be equipped with Zone 4 seismic anchorage brackets. 9) If used for storage and dispensing of gasoline, or other liquids regulated by CARB, tank shall be tested and equipped with required fittings. 10) Contents shall be identified and tank shall be labeled as required. 11) Fill ports shall be provided with over-fill shut-off protection and fuel fill overspill containment. Containment shall have a minimum 5 gallon capacity and manual drain valve to allow drainage back to the tank. Tanks requiring vapor recover shall be equipped with two point delivery systems. 12) Provide steps with handrail for access to fill ports. Step landing shall not be greater than 3'-2" from top of tank. Stair steps shall be slip resistant in all directions. Stairway assembly shall be able to be anchored to concrete slab with expansion type or embedded anchors. Stairway shall be hot dipped galvanized. C-5-6- -2- 13) Dispensers shall be side mounted (i.e. off the top of the tank) when top mounting would cause the center line of the fuel nozzle handle to be ore than 5'6" above standing surface. Steps shall not be used. Side mounted dispensing systems shall be designed and approved by the tank manufacturer, shall include anti-siphon valves on all liquid suction lines that drop below the top of the tank and shall be CARB approved when dispensing gasoline. C) Signage: Label tanks on all vertical walls with signs that read"Flammable", "No Smoking": appropriate fuel sign either "Gasoline" or "Diesel Fuel", and as required by the City Fire Department(i.e.NFPA 704 signage,etc.). CIS -3- 0. Tank Accessories: ITEM DESCRIPTION UNLEADED GASOLINE METHANOL DIESEL No. 1 . Nozzle Co-axial , auto shut-off Co-axial . Auto shut- with gravelle .clip, 10 gpm auto shut- off, with flow restrictor. Emco- off with gravelle Wheaton A-4000, DPW 11VF- gravelle clip. Emco 47, or equal . clip, 10 gpm Wheaton A- flow 6000, DPW restrictor. 11A. DPW 7H, DPW i1VF- or equal . 0492. Emco Wheaton A4005-135, or equal . 2. Fuel Dispenser Fill-Rite Series 712, Same as Gas. GasBoy 9123, 8 Pump GasBoy 9122, or equal . See See Note 5. or equal . Notes 1 8 2. See Notes 1 8 2. 3. Hood 8 Hook Pomeco 102-AST, or equal . Same as Gas. Same as Gas. for Nozzle but with high Storage/Spring mounted Rewind retractor for Retractor With longer diesel Hose Retractor hose. Base Stand 4. Breakaway Husky Model 3000, DPW DPW 66CL- Husky Model Coupling 66CKL, or equal . See Note 0250. Emco 2200, or 4. Wheaton equal . See A4019-OC3. Note 4. or equal . See Note 4. 5. Support Fabricated Same as Gas. Not Required. Bracket for Splitter Valve 6. Splitter Valve DPW 38-CS, or equal.. Same as Gas. Not Required. With Base Swivel 7. Pump Suction Sch 40 Steel Pipe. Same as Gas. Same as Gas. Line B. Pump Vent Sch 40 Steel Pipe. Same as Gas. I Same as Gas. Return Line 9. Coaxial Hose Sch 40 Steel Pipe. Same as Gas. Not Required. Vapor Return Line ABOVEGROUND FUEL STORAGE TANK C5-8 -4- ITEM I DESCRIPTION UNLEADED GASOLINEI METHANOL I DIESEL N0. 10. Anti -siphon PUMC Type A. Universal 403, 1 1/2" Same as Gas. Valve EBW 616-300, or equal . elect . solenoid. Magnatrol . ASCO, or equal . 11. Pipe Tee With Cast Steel Fitting Same as Gas. Same as Gas. Double Tap Plug 12. Interstitial Supplied with Tank. Supplied Supplied with Leak Detection with Tank. Tank. Tube 13. Primary Tank 6 inch; Morrison 244, or Same as Gas. Same as Gas. Emergency Vent equal . 14. (Deleted) (Deleted) (Deleted) (Deleted) 15. Tank Vent 2 inch dia. sch 40 steel x Same as Gas. Same as Gas. Riser length required to obtain 12 foot minimum from pad. 16. Pipe Coupling Steel Fitting Same as Gas. Same as Gas. 17. Pressure/Vac- 2 inch, upward vapor Same as Gas. ( Same as Gas. uum Vent Valve discharge. Hazzlett HPVB- 1, or equal . 18. Level Gauge Kruger Sentry, "At-A- Same as Gas, Same as Gas. Glance" Type "D" Gauge; with Scully Golden Gauge, or stainless equal . I steel parts. 19. Fill Vapor DPW 1611-AV/OPW 1711T, EMCO Same as Gas . Not Required. Recovery A76-003/A99-001 , or equal . Adapter With Cap 20. Spill Normally supplied integral Same as Gas. Same as Gas. Containment with tank. If added, use Pan With Lid & EBW 706-400-01 , or equal . Drain 21. Fill Pipe DPW 633-T/OPW 634-TT, or Same as Gas . Same as Gas. Adapter With equal . Cap 22. Hose Assembly Coaxial , 12 foot. DuPont Coaxial . 12Linh , 3/4 Superlite Hi -Flo. Goodyear foot. ia, 16 "Maxxim Premier" , or equal . Goodyear DuPont"M85" (greenidin color) , exor equal . 1481 equal .23. Fuel Filter Cim-Tek 300 HS10. Cim-Tek Cim-Tek k 300and Adapter 200H. or equal . 300M, or Orequal , ABOVEGROUND FUEL STORAGE TANK C5_9 —5— ITEM DESCRIPTION I UNLEADED GASOLINE METHANOL ( DIESEL NO. 24. Pump Output I Sch 40 Steel PipeI Same as Gas. Not Required. Riser 25. Dispenser Supplied with tank. Same as Gas. Same as Gas. Support Platform 26. Dispenser I Sch 40 steel pipe. Same as Gas. ( Same a.s Gas. Suction Drop Tube 27. Seismic 4 Supplied with tank. Same as Gas. Same as Gas. Restraints 28. Fill Shut-Off Clay & Bailey Model F-30, _ Same as Gas. I Same as Gas. Valve or equal . See Note 3. with nickel plating. 29. Fill Drop Tube Clay & Bailey. 2" dia. Same as Gas. Same as Gas. aluminum. Models 01228-03- with nickel 5048 (4' ) , -5072 (6') , - plating. 5096 (8' ) . cut to length as required, or equal . 30. Fill Access Ladder Industries, or Same as Gas. Same as Gas. Platform equal . 31. Thermal/Pro- Supplied with tank. Supplied Supplied with tective with tank. tank. Material 32. Gauge Stick Supplied with tank, length I Same as Gas. ( Same as Gas. as required. Notes: 1 . Phase I and II Vapor Recovery Systems shall be installed on all gasoline and methanol fuel tanks. 2. Fuel dispenser: a. Unleaded gas and methanol : 10-12 gpm must be accomplished in the field with tank 1/2 full or less. b. Diesel : 20 gpm minimum must be accomplished in field with tank 1/2 full or less. c. All dispensers shall have explosion proof UL listed motors. 115V or 220V as shown on contract drawings. AC-60Hz. universal nozzle boot and retainer, tank mounting bracket and legs as required. d. Complete with totalizer, and a lockable device to prevent unauthorized access. e. Provide appropriate fuel sign "Gasoline" . "Methanol or "Diesel" on the dispenser. f. Dispenser shall be weights and measures sealable (accurate for resale) . 3. Fuel fill shut-off valve. Valve shall be designed to operate on abovegound tanks, provide a positive shut-off, allow straight- through passage, and operate without dry-break fittings. 4. Coupling separation at 200 pounds maximum pulling force; integral , flow preventing, seals or valves activated upon coupling separating. UL listed and labeled to retain UL rating after separation. ABOVEGROUND FUEL STORAGE TANK C5-10 -6- `I 1 2 3 4 7 8 10 11 12 13 15 16 17 18 20 21 i 12'-0• MIN. Ll � :s: ifs .1t :it {r 29 ,t, jr j t5 'Sr 1S '1 ::;ii .;til{inti....;ti?i:;••ti:;tiif'4k:?i':;:'� ::;i.;ti::i: ::r j s 22 23 25 26 27 31 30 COMPONENT DESCRIPTION NOTES 1. Nozzle. 18. Level Gage. 1. No scale. 2. Fuel Dispenser&Pump. 19. Deleted. 2. Drawing Is schematic only. 3. Hook&Hood For Nozzle Storage/ 20. Spill Containment Pan With Lid& 3 Components are arranged for clarity of Spring Rewind Retractor With Hose Drain. illustration,and do not represent actual' Retractor Base Stand. 21. FII Pipe Adaptor With Cap. locations. 4. Breakaway Hose Coupling. 22. Hose Assembly. 4. Coordinate location of components with 5. Deleted. 23. Fuel Filter&Adapter. contract drawings,tank manufacturer, 6. Deleted. 24. Deleted. state construction inspector,and facility 7. Pump Suction Line. 25. Dispenser Support Platform. superintendent. 8. Pump Vent Return Line. 26. Dispenser Suction Drop Tube. S. Components shown are representative 9. Deleted. 27. Seismic 4 Restraints. only;contractor to supply all 10. Antisiphon Valve. 28. Fill Shut Off Valve. components necessary to comply with 11. Pipe Tee With Double Tap Plug. 29. Fill Drop Tube. applicable codes,regulations,and 12. Leak Detection Tube. 30. Fill Access Platform. certifications In jurisdication where tank 13. Primary Tank Emergency Vent. 31. Primary Steel Tank,Thermal& Is to be installed. 14. Deleted. Physical Protective Material, 15. Tank Vent Riser. Secondary Containment. 16. Pipe Coupling. 32. Gauge Stick, Not Shown. 17. Pressurelvacuum Vent Valve. DIESEL TANK -7- -8- Section B GENERAL TERMS AND CONDITIONS BID REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a bid shall meet all of the terms, and conditions of the Invitation for Bids (IFB specifications package. By virtue of its proposal submittal, the bidder acknowledges agreement with and acceptance of all provisions of the IFB specifications. 2. Bid Submittal. Each bid must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be enclosed in an envelope which shall be sealed and addressed to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. In order to guard against premature opening, the proposal should be clearly labeled with the proposal title, specification number, name of bidder, and date and time of proposal opening. No FAX submittals will be accepted. 3. Insurance Certificate. Each proposal must include a certificate of insurance showing: a. The insurance carrier and its A.M.Best rating. b. Scope of coverage and limits. C. Deductibles and self-insured retention. The purpose of this submittal is to generally assess the adequacy of the bidder's insurance coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required until contract award. The City's insurance requirements are detailed in Section E. 4. Year 2000 Compliance Strategy. Each proposal must include a description of the bidder's Year 2000 compliance strategy(or statement of why this is not relevant to the purchase). 5. Bid Quotes and Unit Price Extensions. The extensions of unit prices for the quantities indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces provided on the Bid Submittal Form(s). Any lump sum bid shall be stated in figures. The Bid Submittal Form(s)must be totally completed. If the unit price and the total amount stated by any bidder for any item are not in agreement, the unit price alone will be considered as representing the bidder's intention and the bid total will be corrected to conform to the specified unit price. 6. Bid Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior to the time specified for the bid opening,by submitting a written request to the Director of Finance for its withdrawal, in which event the bid will be returned to the bidder unopened. No bid received after the time specified or at any place other than that stated in the "Notice Inviting Bids" will be considered. All bids will be opened and declared publicly. Bidders or their representatives are invited to be present at the opening of the bids. C5-13 -9- 7. Submittal of One Bid Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one bid, except an alternative bid when specifically requested; however, an individual or business entity which has submitted a sub-proposal to a bidder submitting a bid, or who has quoted prices on materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other bidders submitting bids. 8. Cooperative Purchasing. During the term of the contract, the successful bidder will extend all terms and conditions to any other local governmental agencies upon their request. These agencies will issue their own purchase orders, will directly receive goods or services at their place of business,and will be directly billed by the successful bidder. 9. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged, but will be permitted. However,any such oral communication shall not be binding on the City. CONTRACT AWARD AND EXECUTION 10. Bid Retention and Award. The City reserves the right to retain all bids for a period of 60 days for examination and comparison. The City also reserves the right to waive non-substantial irregularities in any bid, to reject any or all bids, to reject or delete one part of a bid and accept the other, except to the extent that bids are qualified by specific limitations. See the "special terms and conditions" in Section C of these specifications for proposal evaluation and contract award criteria. 11. Competency and Responsibility of Bidder. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of bidders. Bidders will provide, in a timely manner, any and all information which the City deems necessary to make such a decision. 12. Contract Requirement. The bidder to whom award is made(Contractor)shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. 13. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages, and amounts specified in Section E of these specifications within 10 (ten) calendar days after notice of contract award as a precondition to contract execution. 14. Business Tax. The Contractor must have a valid City of San Luis .Obispo business tax certificate prior to execution of the contract. Additional information regarding the City's business tax program may be obtained by calling(805)781-7134. CONTRACT PERFORMANCE 15. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws,ordinances, and regulations. 16. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances,regulations and adopted codes during its performance of the work. C5-14 -10- s 17. Payment of Taxes. The contract prices shall include full compensation for all taxes which the Contractor is required to pay. 18. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees,and give all notices necessary. 19. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 20. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 21. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City,to protect City property from injury or damage. If City property is injured or damaged as a result of the Contractor's operations, it shall be replaced or restored at the Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 22. Immigration Act of 1986. The Contractor wan-ants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 23. Contractor Non-Discrimination. In the performance of this work,the Contractor agrees that it will not engage in,nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation,or religion of such persons. 24. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option,be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may,at the time of acceptance of the work, waive liquidated damages which may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 25. Payment Terms. The City's payment terns are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment, or services provided by the Contractor(Net 30). 26. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. C5-15 -11- ! 1 \ L 27. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 28. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest direct or indirect or otherwise, which would conflict in any manner or degree with the performance of the work hereunder.The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder,the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 29. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the ads or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same, provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 30. Contract Assignment. The Contractor shall not assign,transfer, convey or otherwise dispose of the contract, or its right,title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 31. Year 2000 Compliance. The Contractor warrants that the goods or services provided to the City, including those provided through subcontractors, are "Year 2000 compliant." For the purpose of this contract, "Year 2000 compliant" means that goods or services provided to the City will continue to fully function, fault-free, before, at and after the Year 2000, without interruption or human intervention; and if applicable, any data outside of the date range 1990- 1999, including leap years, will be correctly processed in any level of computer hardware or software, including,but not limited to,microcode, firmware, application programs, files and data bases. This warranty supersedes all warranty disclaimers or limitations, and all limitations on liability,otherwise provided by the Contractor. 32. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform; which notice must give the Contractor a 10 (ten) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of C5-16 -12- Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. C5-17 -13- Section C SPECIAL TERMS AND CONDITIONS INVITATION FOR BIDS 1. Contract Award. Subject to the reservations set forth in Paragraph 10 of Section B (General Terms and Conditions) of these specifications, the contract will be awarded to the lowest responsible,responsive bidder. 2. Sales Tax Reimbursement. For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues. Therefore, for bids from retail firms located in the City at the time of proposal closing for which sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the proposal by the City in calculating and determining the lowest responsible,responsive bidder. 3. Labor Actions. In the event that the successful bidder is experiencing a labor action at the time of contract award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves the right to declare said bidder is no longer the lowest responsible, responsive bidder and to accept the next acceptable low proposal from a bidder that is not experiencing a labor action,and to declare it to be the lowest responsible,responsive bidder. 4. Failure to Accept Contract. The following will occur if the bidder to whom the award is made (Contractor) fails to enter into the contract: the award will be annulled; any bid security will be forfeited in accordance with the special terms and conditions if a bidder's bond or security is required; and an award may be made to the next lowest responsible, responsive bidder who shall fulfill every stipulation as if it were the party to whom the first award was made. 5. Unrestrictive Brand Names. Any manufacturer's names, trade names,brand names, or catalog numbers used in the specifications are for the purpose of describing and establishing general quality levels. Such references are not intended to be restrictive. Proposals will be considered for any brand which meets or exceeds the quality of the specifications given for any item. In the event an alternate brand name is proposed, supplemental documentation shall be provided demonstrating that the alternate brand name meets or exceeds the requirements specified herein. The burden of proof as to the suitability of any proposed alternatives is upon the bidder, and the City shall be the sole judge in making this determination. 6. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and conditions of this IF'B package shall include delivery charges, to be delivered F.O.B. San Luis Obispo by the successful bidder and received by the City within the manufacturer's production date after authorization to proceed by the City. 7. Statement of Contract Disqualifications. Each bidder shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the IFB package. 8. Bid Content. Your bid must include the following information: Submitral Forms a. Bid submittal summary. b. Certificate of insurance. C5-18 -14- C. Description of your firm's Year 2000 compliance strategy (or statement why this is not relevant to the purchase). 9. Required Deliverable Products. The Contractor will be required to provide: a. 6 copies of tank specifications which addresses all elements of the workscope. Any documents or materials provided by the Contractor will be reviewed by City staff and, where necessary,the Contractor will be required to respond to staff comments and make such changes as deemed appropriate. 10. Accuracy of Specifications. The specifications for this project are believed by the City to be accurate and to contain no affirmative misrepresentation nor any concealment of fact. Bidders are cautioned to undertake an independent analysis of any test results in the specifications, as City does not guaranty the accuracy of its interpretation of test results contained in the specifications package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall bear sole responsibility for proposal preparation errors resulting from any misstatements or omissions in the plans and specifications which could easily have been ascertained by examining either the project site or accurate test data in the City's possession. Although the effect of ambiguities or defects in the plans and specifications will be as determined by law, any patent ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming reasonable skill, ability, and diligence on its part, knew or should have known of the existence of the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any right to assert said defects or ambiguities subsequent to submittal of the proposal. To the extent that these specifications constitute performance specifications, the City shall not be liable for costs incurred by the successful bidder to achieve the project's objective or standard beyond the amounts provided therefor in the proposal. In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged ambiguity or defect in the plans and/or specifications, or any other matter whatsoever, Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors shall continue to perform, irrespective of whether or not the ambiguity or defect is major, material, minor or trivial, and irrespective of whether or not a change order, time extension, or additional compensation has been granted by City. Failure to provide the hereinbefore described written notice within one(1)working day of contractor's becoming aware of the facts giving rise to the dispute shall constitute a waiver of the right to assert the causative role of the defect or ambiguity in the plans or specifications concerning the dispute. C5-19 -15- Section D FORM OF AGREEMENT AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of , by and between the CITY OF SAN LUIS OBISPO, a municipal corporation,hereinafter referred to as City,and f 1, hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on May 4, 1999, City invited bids for purchase of two, 12,000 gallon Aboveground Fuel Storage Tanks(AST)per Specification No. 90018-1A;and WHEREAS,pursuant to said invitation, Contractor submitted a proposal which was accepted by City for said equipment. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained,the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date of this Agreement is trade and entered,as first written above,until acceptance or completion of said equipment 2. INCORPORATION BY REFERENCE. City Specification No.90018-1A and Contractor's proposal dated f 1,are hereby incorporated in and trade a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing equipment as specified in this Agreement,City will pay and Contractor shall receive therefore compensation in a total sum not to exceed[S .001. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City to do everything required by this Agreement and the said specification 5. AMENDMENTS. Any amendment, modification,or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the Council of the City. 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral C5-20 -16- agreement,understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect,nor shall any such oral agreement,understanding, or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo,CA 93401 Contractor [ ] [ l S. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party. IN WITNESS WHEREOF,the parties hereto have caused this instrument to be executed the day and year fust above written. ATTEST: CITY OF SAN LUIS OBISPO,A Municipal Corporation By: City Clerk City Administrative Officer APPROVED AS TO FORM: CONTRACTOR By: City Attorney C5-21 _17_ Section E INSURANCE REQUIREMENTS: Supply and E ui ment Contracts The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the products and materials supplied to the City. The cost of such insurance shall be bome by the Contractor. Minimum Scope of Insurance. Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage("occurrence" form CG 0001). Minimum Limits of Insurance. Contractor shall maintain limits no less than $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used,either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City,either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations,claim administration and defense expenses. Other Insurance Provisions. The general liability policy is to contain, or be endorsed to contain, the following provisions: 1. The City,its officers,officials,employees, agents and volunteers are to be covered as insureds as respects: products and completed operations of the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees,agents or volunteers. 2. The Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. 3. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officers,officials, employees, agents or volunteers. 4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought,except with respect to the limits of the insurer's liability. 5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than AN1I. Verification of Coverage. The Contractor shall furnish the City with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. C5-22 -18- PROPOSAL SUBMITTAL FORM The undersigned declares that she or he has carefully examined Specification No. 90018-1A, which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: BID rrEMS: • One AST shall have the capacity of 12,000 gallons and shall be dedicated to the storage/dispensing of gasoline. • One AST shall have the capacity of 12,000 gallons (7/5K Split) and shall be dedicated to the storage/dispensing of gasoline and diesel fuels. Total Base Price Sales tax @ 7.25% Other(provide detail below TOTAL $ Delivery of equipment to the City to be within calendar days after contract execution and written authorization to proceed. ❑ Certificate of insurance attached; insurance company's A.M. Best rating: ❑ Description of your firm's Year 2000 compliance strategy (or statement why this is not relevant to the purchase)attached. Firm Name and Address Contact Phone :S nature of Authorized Representative Date C5-23 -19- STATEMENT OF PAST CONTRACT DISQUALIFICATIONS The bidder shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality,and if so to explain the circumstances. ■ Do you have any disqualification as described in the above paragraph to declare? Yes ❑ No ❑ ■ If Yes,explain the circumstances. Executed on at under penalty of perjury of the laws of the State of California,that the foregoing is true and correct. Signature of Authorized Bidder Representative C5-24 -20-