HomeMy WebLinkAbout10/16/1990, C - REMOVAL OF ALL LEAKING AND SELECTED CITY OWNED UNDERGROUND FUEL AND WASTE OIL STORAGE TANKS. 010111111JI101111��j City Or SM LUIS OBISPO TING AGENDA
jkMAGCOUNCIL AGENDA REPORVE " �fTEM #C
FROM: Michael Dolder , FireChief VIA: Bob Neumann, Fire Marsh
BY: Michael Smith, Hazardous aterials Impel
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SUBJECT.
Removal of all leaking and selected City owned underground fuel and waste o0 storage
tanks.
CAO RECOMMENDATION:
By motion, approve specifications for the removal of five (S) City owned
underground storage tanks and authorize soliciting of bids and contract award by the CAO,
if the lowest responsible bid is within the proposal's cast estimate.
DISCUSSION:
The City of San Luis Obispo maintains thirteen (13) underground fuel and waste oil storage
tanks. Each of these tanks is of single-wallconstruction 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 exacting
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 removal of selected tanks, the costs associated with the minimum
upgrading requirements can be redirected toward a more permanent solution. At this time,
annual tank testing has confirmed three leaking tanks. By law, all lealdng tanks must be
removed from the ground. Provisions to remove all material from these tanks was
undertaken after failing tank test. The other two tanks tested tight, although their-removal
is in accordance with overall tank removal and replacement project They include:
1) Waste Water Treatment Plant 1,000 gallon diesel tank, confirmed leak.
2) Fire Station #1 1,000 gallon gasoline tank, confirmed leak,
280 gallon waste ort tank, confirmed leak.
3) Fire Station #2 1,000 gallon diesel tank, scheduled for
replacement with a new double-walled tank at a
later date.
4) Fire Station #4 1,000 gallon diesel tank; discontinue fuel
dispensing services at this location.
tu �lp city of San tins OBlspo
Oman COUNCIL AGENDA REPORT
FISCAL IMPACT:
The FY 1987-88 CIP Budget, Underground Storage Tank Upgrading and Monitoring,
included $86,000 for the upgrading of existing tanks. $17,000 from this account has been
spent on annual tank testing and maintenance. A balance of approximately $68,000 has
since been incumbered into the FY 1989-90 CIP Budget. .$20,000 of these funds have been
spent for the removal of the storage building which was located above one of the
underground tanks located at Station #1, as well as an additional $30,000 allocated for the
engineering design of plans and specifications for replacement of selected underground
storage tanks. A current balance of approximately $18,000 remains available for this project.
It is estimated that the removal of the five tanks listed above will cost approximately
$35,000. FY 1990-91 CIP Budget, Underground Fuel Tanks Monitoring & Removal,
includes $120,000 for continued removal and replacement projects. It is proposed to use the
remaining $18,000 from the previous incumbered CIP funds, in conjunction with the FY
1990-91 CIP Budget. Therefore, sufficient funds are available for these contract services.
Please note that this removal estimate does not include additional costs associated with
the decontamination and subsequent reconstruction that may be required at these sites.
ALTERNATIVES:.
There are two alternatives associated with this proposal, however, only one will meet the
regulatory provisions governing underground storage tanks. They are:
Alternative #1: Approve the request authorizing the soliciting of bids for the removal of
the five underground tanks listed above.
PRO- This will ensure compliance with all underground tank regulations, provide mwdmum
protection against the potential release of hazardous materials product into the environment
and reduce the potential liability associated with leaking underground storage tanks. Also,
this alternative redirects City funds to a long-term solution for the proper management of
• their underground storage tanks well into the next century.
CON: Once committed to the removal 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 the removal of leaking and selected underground
storage tanks.
PRO: An estimated cost savings of approximately $30,000.
CON: City Ordinance, State and Federal laws governing underground storage tanks require
that all leaking tanks to be removed from service. Noncompliance would be in violation of
all these laws and regulations. Furthermore, the two tanks that are not confirmed leakers,
will be subject to the minimum upgrading standards and associated costs that we are trying
to avoid
city of san tins oBispo
Oftrus COUNCIL AGENDA REPORT
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 of all City owned underground storage tanks.
CONCLUSION.
Authorize staff to solicit bids for contractor services to remove leaking and selected
underground storage tanks from the above listed sites as prescribed in Purchase Control
Procedure PC403-3, Public Works Projects. An invitation to bid and
specifications (FD90-08-1), have been developed for this project, and is on file in the
Council Reading File. This will ensure compliance with Article 79 of the Uniform Fire
Code and City Ordinance 999 (1983 series), Underground Tank Regulations.
ATTACHNUENTS:
Attachment A: City of San Luis Obispo Underground Tank Inventory
NOTE Specifications (FD90-08-1), have been developed for this project and are located
in the Council Reading File for review.
90-08-01.CAR
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(Attachment A)
C` UNDERGROUND STORAGE TANK INVENTORY- December 1989
Currently there are thirteen (13) underground tanks owned and operated by the City of San
Luis Obispo, nine of which are operational. The following is a brief synopsis of these tanks:
Location Size (gal) Material Contents Age (yrs)
Waste Water Treatment Plant 1,000 Steel Diesel 25+ Closed
35 Prado Road 1,000 .Fiberglass Diesel 7
Fire Station #1 1,000 Steel Diesel 8
748 Pismo Street 500 Steel Waste Oil 25+ Closed
1,000 Steel Gasoline 30+ Closed
Fire Station #2 1,000 Steel Diesel 9
C136 N. Chorro Street
Fire Station #4 1,000 Steel . Diesel 9
1395 Madonna Road
Police Station 2,000 Steel, Reg. Gasoline 20+ Closed
1042 Walnut Street 5,000 Fiberglass Un. Gasoline 7
Corporation Yard 10,000 Fiberglass Un. Gasoline 6
25 Prado Road 10,000 Fiberglass Reg: Gasoline 6
6,000 Fiberglass Diesel 6
500 Fiberglass Waste Oil 6
The three tanks identified as being closed,.with the exception of P.D.'s tank, have failed
their annual hydrostatic4ntegrity test and are pending removal. It is unknown at this time
what site remediation activities will be required and their associated cost.
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