HomeMy WebLinkAbout11/07/1990, C-5 - BID AWARD AND CONTRACT EXECUTION FOR PROFESSIONAL SERVICES - UNDERGROUND STORAGE TANK REPLACEMENT P QVIUM111�1cityOf San IUIS OBISPO
DATE: November ?, 1990 A�
WNGe COUNCIL AGENDA REPORT
FROM: Michael Dolder, Fire Chief Vis: Bob Neumann, Fire Marshal
SUBJECT.
Michael Smith, Hazardous Materials Inspect
SND�j�JECT: Y
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Bid Award and Contract Execution for Professional Services - Underground Storage Tank
Replacement Program, (Spc No. FD90-2)
CAO RECOMMENDATION:
By motion, approve the award to, and authorize the Mayor to execute, a contract with Tait &
Associates in the amount of$29,000 for the design of plans and specifications for the installation of
six underground storage tanks.
DISCUSSION:
The City of San Luis Obispo maintains thirteen (13) underground fuel and waste oil storage tanks.
Each of these tanks is of single-wall construction without any secondary containment or leak
detection system. Previous existing law requires that these types of tanks be upgraded to provide
for leak detection and inventory control measures. Fiscal Year 1987-89 CIP funds (approximately
$86,000), were appropriated for the upgrading of these existing tanks to meet the minimum
requirements of the law, however, due to recent amendments of the laws governing underground
storage tanks, it is estimated that the minimum upgrading costs may exceed $130,000. This is
significant since 1998 is the deadline for removing all single-walled tanks from service. Based on
this premise, removing all City owned tanks and replacing selected tanks offers a better long-term
economic alternative than upgrading.
By committing to the replacement of selected tanks, the costs associated with the minimum
upgrading requirements can be redirected toward a more permanent solution. New double-wall
tanks, piping and related equipment will ensure maximum protection against potential loss of
hazardous material product into the environment, while meeting the requirements of the laws
governing underground storage tanks. Before removal and replacement may move forward,
engineering plans and specifications must be developed.
In April, staff received CAO authorization to distribute a Request For Proposal (RFP) for
professional engineering services for developing the plans and specifications needed to install new
underground storage tanks. Proposals were received from two firms. A staff committee, consisting
of three members, conducted interviews and ranked the firms as follows:
1. Tait & Associates of Orange, California
2. Engineering Development Associates of San Luis Obispo, California.
Tait & Associates was ranked number one based on their extensive and current experience with
similar fuel system design projects. Their highly experienced design team and availability of multi-
disciplined support staff will ensure the City of receiving quality and timely work. Staff has
negotiated the proposed contract with Tait & Associates, (see attached).
� ��Pi� lll city of San LUIS OBISPO
WMIGe COUNCIL. AGENDA REPORT
The proposed fuel system design will evaluate the existing site conditions, simplicity of long-term
maintenance, accessibility and location of monitoring equipment, simplicity of construction and
estimated cost, testability of complete system, depth to water table, concrete loading dynamic/static,
establish fuel flow rates, provide methanol compatibility, vapor recovery piping for diesel tank.
(future), cardlock system and interface with tank gauging system and utility availability.
FISCAL IMPACT:
Both the Fiscal Year 1987-89 and Fiscal Year 1989-91 Budgets have addressed the underground
storage tank program in two separate CIP Programs. Fiscal Year 1987-89 CIP Budget, included the
Underground Storage Tank Upgrading and Monitoring Program which was funded at $86,000. The
Fiscal Year 1989-91 CIP Budget, included the Underground Fuel Tanks Monitoring and Removal
Program which was funded at $120,000. Past expenditures include $17,000 on annual tank testing
and maintenance and $20,000 for the removal of a storage building above a tank at.Fire Station #1.
Additionally, on October 16, 1990, staff received Council approval to spend $35,000 to remove five
underground storage tanks. Both of the CIP Programs are integrated and have been combined to
accomplish the single goal of bringing City-owned underground tanks into State compliance.
The current request of $29,000 is for the design of engineering plans and specifications for the
replacement and installation of new underground fuel systems at various location throughout the
City. Sufficient funds are available for the professional services contract out of the CIP budgets, as
follows:
DESCRIPTION BUDGET EXPENDITURES BALANCE
FY 1987-89 862000. 86,000.
FY 1989-91 120,000. 206,000.
Tank Testing 17,000. 189,000.
Building Removal 20,000. 169,000.
UGT Removal (5 tanks) 359000. 1349000.
Engineering Plans
and SPECS 29,000. 1059000.
ALTERNATIVES:
There are three alternatives associated with this proposal, however, only two will meet the
regulatory provisions governing underground storage tanks. They are:
(011101 IIJ JAI city of san Luis oBispo
1MA17a COUNCIL AGENDA REPORT
Alternative #1: Approve the request authorizing the soliciting of bids and contract award for
engineering design standards and plans for underground storage tank replacement
PRO: This will ensure compliance with all underground tank regulations and provide maximum
protection against the potential release of hazardous materials product into the environment Also,
this alternative offers the City a long-term management solution to their underground storage tanks.
CON: Once committed to the replacement of existing tanks, an unknown site remediation cost
could be associated with each site. It should be noted however, that this unknown cost will always
be present, in fact in will most likely be higher in the future.
Alternative #2: Deny the request for a design plan, instead, implement the minimum upgrading
requirements for existing underground tanks.
PRO: This will ensure immediate compliance with the underground tank regulations and provide a
short term savings of $25,000 - $30,000 by not replacing the single-walled tanks.
CON: Current minimum upgrading costs are approximately $130,000, which will provide a
temporary "fix" for the underground tanks. Replacing the tanks with double-walled tanks will cost
$168,000, but will provide a long-term solution. Also, 1998 is the deadline for all single-walled tanks
to be removed from the ground, regardless of upgrading modifications, and any site remediation that
may be associated with these tanks must eventually be addressed
Alternative #3: Do not approve the design plan or implement any tank upgrading requirements.
PRO: An estimated cost savings of at least $130,000.
CON: This is in violation of City Ordinance, State and Federal laws governing underground storage
tanks.
Consequences of Not Taking Recommended Action:
The City would be in violation of City Ordinance, State and Federal laws governing underground
storage tanks. Failing to act will only delay the inevitable upgrading requirements and eventual
replacement and/or removal of all City owned underground storage tanks.
ATTACE MENT:
Professional Services Contract
FD90-ZCAO
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G CONSULTANT SERVICE CONTRACT
This contract, made this day of 1990, by and between
the City of San Luis Obispo, California (hereinafter referred to as 'City'), and
Tait R A c e o c i a t e c, . Tn c;_ (hereinafter referred to as 'C(Insultant').
WITNESSETH
WHEREAS, City desires to retain certain services in conjunction with developing plans and
specifications for installing underground storage tank.
WHEREAS,City desires to engage consultant to provide services by reason of its qualifications and
experience for performing such services;
WHEREAS, Consultant has offered to provide the required services on the terms and in the
manner set forth herein;
NOW, THEREFORE in consideration of their mutual covenants, the parties hereto agree as
follows:
1. PROJECT COORDINATION
a. City. The Fire Chief shag be the representative of the City for all purposes under
this agreement. The Fire Chief, or his designated representative, hereby is
designated as the Project Manager for the City and shall supervise the progress and
execution of the project under this agreement.
b. Consultant. Consultant shall assign a single Project Manager to liaison with the
City's representative. Should circumstances or ,conditions subsequent to the
execution of this agreement require a substitute Project Manager for any reason, the
Project Manager replacement shall be subject to the prior written acceptance and
approval of the Fire Chief: Consultant's Project Team is further described in Exhibit
'A' attached hereto and incorporated herein by this reference. The individuals
identified and the positions held as described in Exhibit 'A' shall not be changed
except by prior written approval of the City. Such approval shall not be
unreasonably withheld by the City.
2 DUTIES OF CONSULTANT
a. Services to be furnished. Consultant shall provide all specified services as set forth
in Exhibit 'A' attached hereto and incorporated herein by this reference.
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b. Laws to be observed: Consultant shall to the extent of its abilities:
1) Procure all permits and licenses (including a City of San Luis Obispo business
license), pay charges and fees, and give all notices which may be necessary
and incidental to the due and lawful prosecution of the services to be
performed by Consultant under this agreement;
2) Keep itself informed of all existing and proposed federal, state and local
laws, ordinances, regulations, orders, and decrees which may affect those
engaged or employed under this agreement, any materials used in
Consultant's performance under this agreement, or the conduct of the
services under this agreement;
3) At all times observe and comply with, and cause all of its employees to
observe and comply with all of said laws,ordinances, regulations, orders, and
decrees mentioned above.
4) Immediately report to the City's Project Manager in writing any discrepancy
or inconsistency it discovers in said laws, ordinances, regulations, orders, and
decrees mentioned above in relation to any plans, drawings, specifications,
or provisions of this agreement.
C. Release of reports and information. Any reports, information, data, or other
material given to, or prepared or assembled by, Consultant under this agreement
shall be the property of City and shall not be made available to any individual or
organization by Consultant without the prior written approval of the City's Project
Manager. The Consultant shall be allowed, for promotional purposes, to make
known the nature of the assignment is a general statement during the project and
may reproduce design information after it has become public information or upon
completion of this project.
d. Copies of reports and information. If City requests additional copies of reports,
drawings, specifications, or any other material in addition to what the Consultant is
required to furnish in limited quantities as part of the services under this agreement,
Consultant shall provide such additional copies as are requested, and City shall
compensate Consultant for the costs of duplicating of such copies at Consultant's
direct expense.
e. Qualification of Consultant. Consultant represents that it is qualified to furnish
the services described under this agreement.
3. DUTIES OF Cny
The City agrees to cooperate with Consultant to perform that work described in Exhibit
"A" attached hereto and incorporated by this reference
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4. COMPENSATION
a. The Consultant will perform the work as described in Exhibit "A".
b. Consultant will bill City as provided for in the consultant's fee schedule as
described in Exhibit "A" attached hereto. City will pay this bill within 30 days of
receipt. The Consultant may not charge more than $29,000 without prior
approval of the City's Project Manager.
5. TWE FOR COMPLETION OF THE WORK
a Project shall be completed within forty-five (45) calendar days from date of
execution of this agreement by City.
b. Time extensions maybe allowed for delays caused by City, or factors not directly
brought about by thenegligence or lack of due care on the part of the
consultant.
6. TEMPORARY SUSPENSION
The Fre Chief shall have the authority to suspend this agreement wholly or in part, for
such period as he deems necessary due to unfavorable conditions or to the failure on
the part of Consultant to perform any provision of this agreement. Consultant will be
paid the compensation due and payable to the date of temporary suspension.
7. SUSPENSION/TERMINATION
a Right to Terminate. The City retains the right to terminate this agreement for
any reason by notifying Consultant in writing seven days prior to termination and
by paying the compensation due and payable to the date of termination;
provided, however, if this agreement is terminated for fault of Consultant, City
shall be obligated to compensate Consultant only for that portion of Consultant
services which are of benefit to City. Said compensation is to be arrived at by
mutual agreement of the City and Consultant and should they fail to agree, then
an independent arbitrator is to be appointed and his decision shall_be binding
upon the parties.
b. Return of Materials. Upon such termination, Consultant shall turn over to the
City immediately any and all copies of studies, sketches, drawings, computations,
and other data, whether or not completed, prepared by Consultant, and for which
Consultant has received reasonable compensation, or given to Consultant in
connection with this agreement Such materials shall become the permanent
property of City. Cbnsaltant, however, Shan not be liable for City's use of
complete documents if used for other than the project contemplated by this
agreement
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& INSPECTION
Consultant shall furnish City with every reasonable opportunity for City to ascertain that the
services of Consultant are being performed in accordance with the requirements and
intentions of this agreement. All work done and all materials furnished, if any, shall be
subject to the City's Project Manager's inspection and approval. The inspection of such
work shall not relieve Consultant of any of its obligations to fulfill its agreement as
prescnbed.
9. OWNERSHIP OF MATERIALS
All original drawings, models, plan documents and other materials prepared by or in
possession of Consultant pursuant to this agreement shall become the permanent property
of the City, and shall be delivered to the City upon demand. Theconsultant may retain
a reproducible copy for their records.
10. ASSIGNMENT: SUBCONSULTANTS: EMPLOYEES
This agreement is for the performance of professional services of the Consultant and isnot
assignable by the Consultant without prior consent of the City in writing. The Consultant
may employ other specialists to perform special services as required with prior approval by
the City.
11. NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, by Certified
Mail, addressed as follows:-
To
ollows:To City. Fire Department
City of San Luis Obispo
748 Pismo Street
San Luis Obispo, CA 93401
To Consultant: Tait & Associates Inc.
P.O. Box 4429
Orange, CA 92613
12. INTEREST OF CONSULTANT
Consultant covenants that it presently has no interest, and shall not acquire any interest,
direct or indirect, financial or otherwise,which would conflict in any manner or degree with
the performance of the services hereunder. Consultant further covenants that, in the
performance of this agreement, no subcontractor or person having such an interest shall be
employed by consultant. Consultant certifies that no one who has or will have any.financial
interest under this agreement is an officer or employee of City. It is expressly agreed that,
in the performance of the services hereunder, Consultant shall at all times be deemed an
independent contractor and not an agent or employee of City.
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O 13. INDEMNITY
Consultant hereby agrees to indemnify and save harmless City, its officers, agents, and
employees of and from:
a. Any and all claim and demands which may be made against City, its officers, agents
or employees by reason of any injury to or death of any person or corporation
caused by any negligent act or omission of Consultant under this agreement or of
Consultant's employees or agents;
b. Any and all damage to or destruction of the property of City, its officers, agents, or
employees occupied or used by or in the care, custody, or control of Consultant, or
property of other;; or in proximity to the site of Consultant's work, caused by any
negligent act or omission of Consultant under this agreement or of Consultant's
employees or agents;
C. Any and all claims and demands which may be made against City, its officers, agents,
or employees by reason of any injury to or death of or damage to property suffered
or sustained by any employee or agent of Consultant under this agreement, however
caused, excepting, however, any such claims and demands which are the result of the
negligence or willful misconduct of City, its officers, agents, or employees;
d. Any and all claims and demands which may be made against City, its officers, agents,
or employees by reason of any infringement or alleged infringement of any patent
rights or claims caused by the use of any apparatus, appliance,or materials furnished
by Consultant under this agreement; and
e. Any and all penalties imposed or damages sought on account of the violation of any
law or regulation or of any tern or condition of any permit, when said violation of
any law or regulation or of any term or condition of any permit is due to negligence
on the part of the Consultant
Consultant, at its own cost,expense, and risk,shall defend any and all suits,actions,or other
legal proceedings that may be brought against or for employees on any such claim or
demand of such third persons, or to enforce any such penalty, and pay and satisfy any
judgment or decree that may be rendered against City, its officers, agents, or employees in
any such suit, action or other legal proceeding, when same were due to negligence of the
Consultant.
14. WORKERS COMPENSATION
Consultant certifies that it is aware of the provisions of the Labor Code of the State of
California, which require every employer to be insured against liability for workers
compensation or to undertake self-insurance in accordance with the provision of that code,
and it certifies that it will comply with such provisions before commencing the performance
of the work of this agreement
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15. INSURANCE
At the request of the City, Consultant shall provide proof of comprehensive general liability
insurance($1,0009000 including automobile)and professional liability insurance ($1,000,000)
satisfactory to the City. City shall be an additional named insured.
16. AGREEMENT BINDING
The terms, covenants, and conditions of this agreement shall apply to, and shall bind, the
heirs, successors, executors, administrators, assigns,.and subcontractors of both parties.
17. WAIVERS
The waiver by either party of any breach.or violation of any term, covenant, or condition
of this agreement or of any provision, ordinance, or law shall not be deemed to be a waiver
of any subsequent breach or violation of the same or of any other term, covenant, condition,.
ordinance, or law. The subsequent acceptance by either party of any fee or other money
which may become due hereunder shall not be deemed to be a waiver of any preceding
breach or violation by the other party of any term, covenant, or condition of this agreement
or of any applicable law or ordinance.
I& COSTS AND ATTORNEY'S FEES
The prevailing ply in any action between the parties to this agreement brought to enforce
the terms of this agreement or arising out of this agreement may recover its reasonable costs
and attorney's fees expended in connection with such an action from the other party.
19. DISCRAM47ION
No discrimination shall be made in the employment of persons under this agreement
because of the race, color, national origin, ancestry, religion or sex of such person. If
Consultant is found in violation of the nondiscrimination provisions of the State of
Consultant Service Agreement California Fain Employment Practices Act or similar
provisions of federal law or executive order in the performance of this agreement, it shall
thereby be found in material breach of this agreement. Thereupon, City shall have the
power to cancel or suspend this agreement, in whole or in part, or to deduct from the
amount payable to Consultant the sum of Two-hundred-fifty Dollars ($250) for each person
for each calendar day during which such person was discriminated against, as damages for
said breach of contract, or both. Only a finding of the State of California Fair Employment
Practices Commission or the equivalent federal agency or officer shall constitute evidence
of a violation of contract under this paragraph.
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20. AGREEMENT CONTAINS ALL UNDERSTANDINGS
This document represents the entire and integrated agreement between Cray and Consultant
and supersedes all prior negotiations, representations, or agreements, either written or oraL
This document may be amended only by written instrument, signed by both City and
Consultant. All provisions of this agreement are expressly made conditions. This agreement
shall be governed by the laws of the State of California..
IN WITNESS WHEREOF, City and Consultant have executed this agreement on the day and year
fust above written
CONSULTANT
By
Thomas R. Turner, Vice. President
CITY OF SAN LUIS OBISPO
By.
Ron Dunin, Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM
t "ey
APPROVED AS TO CONTENT
\.
ity Ad inist ive f icer
Jp
Fire Chief
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EXHIBIT "A"
Project approach by Tait & Associates:
Tait & Associates has significant experience designing fuel facilities and our approach to projects
has been refined for 26 years.
For projects such as fuel facilities, the approach is simple:
1. Research existing conditions.
2. Evaluate preliminary design ideas with the client.
3. Create final design documents.
4. Obtain final approval from the client.
5. Provide backup services during bidding and construction.
Particular work items are outlined in the fee proposal.
The most critical step in the project is establishing the preliminary design. The following factors
and problems relating to the design of the fuel facility must be considered and can be resolved by
open and frequent communication and interaction. Tait & Associates has significant experience
as a facilitator between client interests in creating a final solution which is acceptable to all.
• Existing site conditions
• Simplicity of long-term maintenance -�
• Accessibility of monitoring equipment
• Simplicity of construction
• Construction costs
• Testability of secondary containment
• Water table
• Concrete loading dynamic/static
• Fuel flow rates
• Methanol compatibility
• Vapor recovery piping on diesel tank (future)
• Cardlock system: interface with tank gauging system
• Regulatory compliance: present and future
• Tank size
• Utility availability
• Location of fill points
• Monitoring system location
Our approach to establishing the preliminary design is simple. We discuss each system issue and
component,outlining advantages and disadvantages of available alternatives. Each system that Tait
has designed is uniquely tailored to the client's preferences.
The scheduling and completion of final designs is quite simple. Tait &.Associates, Inc., has several
computer scheduling systems and will utilize our MAS-90 Job Cost/Invoicing system to track this
project.
A-1
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OEXHIBIT W
Overall, we feel the most important factor in having a successful project is communication. Our
significant experience with.similar projects has confirmed our project manager focused approach.
All communication flows through the project manager, a single point of contact is established.
Experience shows that our approach to communication and project management results in well
thought out and executed projects,
FEE PROPOSAL
Design Fee:
• Initial Kick-off Meeting and Feld Investigation
• Preliminary Design. (3 sites)
• Progress Meeting
• Final Design (3 sites)
• Pre Construction Meeting
• Blue Printing/Travel Expenses
Fee Proposal; $24,000
Schedule:
Presently we anticipate being able to, perform the design phase in 4 to 6 weeks.
Bidding and Construction Administration:
Time and Material Basis.
As Built Drawings:
The City shall provide as built drawings of all 3 sites.
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]EXEMUT OW
(Revised 10/10/90)
Project Team
Organization Chart
Project Manager
Terry Foyt, P.E.
Project Advisor Project Designer Quality Control
homas R. Turner, V.P. Bill Duree
_ Robert Close, P.E
Staff Support
Dale Dunlap, P.E.
CADD Drafters
Designer/Drafters
Specification Writers
Permit Expeditors
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