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.
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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
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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
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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
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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.
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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.).
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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
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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
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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
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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
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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
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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
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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.
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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
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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
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