The Public Works Service Center has four underground fuel tanks to service City vehicles. Two for unleaded gasoline and two for diesel.  Three of the four fuel tanks are over thirty (30) years old and have exceeded their useful life.  The Texas Commission on Environmental Quality (TCEQ) does not currently require tanks over thirty (30) years of age to be removed.  However, many states are beginning to make this removal a requirement.  The City is taking proactive measures in replacing the three aging tanks to prevent further aging and costly repairs.

The original design of the project was completed in May of 2019.  One bid was received in June of 2019, and it was above the available budget.  The consultant and City staff have worked to revise the scope and to make the project attractive to more bidders and more affordable.  The redesign was completed in August of 2020. 

The base bid of the project includes removing from service the three oldest of the underground tanks and installing one, ten thousand (10,000) gallon above ground unleaded fuel storage tank.  To be included is the necessary piping, monitoring sensors, concrete pad, and connection of the new above ground tank to the City's existing fueling software and future piping components for a future aboveground diesel tank. The existing fueling area canopy is to remain in place, and the one remaining good tank will remain in place. 

The project was bid with three alternate items to be completed if project funding allows.  Alternate #1 being replacement of the three existing fuel dispensers.  Alternate #2 is removal of the three oldest underground tanks. Removal of these tanks would eliminate the need for yearly TCEQ required monitoring and remove the potential environmental risk associated with the out-of-service tanks. Alternate #3 is new overhead lighting for the existing canopy over the fuel dispensers.  

The project was advertised September on 2nd and 9th, 2020.  Five bids were opened and received on September 24, 2020.  The consultant and staff have reviewed the bids, and due to good market pricing, the recommendation is to award the base bid and all three alternate items. The bid summary is presented below.

The responsible low bidder is IBC Construction LLC, with a total bid (base bid plus all three alternates) of $269,940.00. There is currently $262,500.00 in the Fuel Tank/Dispenser Replacement Phase I CMU1905 budget.  We have also identified there may be the need to install shoring to protect the one underground diesel tank that is to remain in place while the other three tanks are being removed.  This is dependent upon soil conditions encountered during the removal process of the three  other tanks.  We have a cost quote from IBC Construction LLC, of $38,700.00 for the shoring.  Should the shoring be needed, this would increase the budget shortfall to $46,140.00. Staff is requesting a budget amendment in the amount of $75,000.00 from the General CIP Fund Balance, with the remaining funds to be used for project contingency.  Savings from a related project- MU1802 Fuel Tank/Dispenser have been closed out and are requested to be combined with CMU1905 to fund the project with alternates.

The Notice to Proceed is anticipated to be issued in December 2020. The project is to be completed within one hundred and eighty (180) calendar days placing final completion approximately May 2021.

In accordance with Policy CO-110, Notification of Construction Impacts and Service Interruption, this project is classified as a Neighborhood Project.  However, there will be no service interruption to the public.  The project is on City property and within fences.  Fueling service interruption for City vehicles will be kept to a minimum, and instruction on an available fuel site will be provided.  

The Engineering and Environmental and Neighborhood Services Departments recommend authorizing the execution of a construction contract with IBC Construction LLC, in the amount of $269,940.00, for the Fuel Tank Replacement Phase I, CIP CMU1905 and authorize a budget amendment in the amount of $75,000.00 to CIP CMU1905 from General CIP Fund Balance.