To: MAYOR AND CITY COUNCIL
From: ANDREW WINJE, PUBLIC WORKS DIRECTOR
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ADOPT BY TITLE ONLY RESOLUTION NO. CC-2606-039 OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DECLARING THE REPLACEMENT OF EQUIPMENT AT THE CITY FUEL ISLAND PROJECT AND ONGOING MAINTENANCE SERVICES AS “MAINTENANCE” AND EXEMPTING IT FROM BIDDING REQUIRMENTS PURSUANT TO SECTIONS 19 AND 19.1(a) OF THE CITY CHARTER OF REDONDO BEACH
APPROVE AN AGREEMENT WITH SUNWEST ENGINEERING CONSTRUCTORS, INC. TO REHABILITATE THE EXISTING FUEL DISPENSING SYSTEM AT THE CITY YARD AND PROVIDE THREE YEARS OF ONGOING MAINTENANCE FOR A NOT TO EXCEED AMOUNT OF $253,405
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EXECUTIVE SUMMARY
The City of Redondo Beach operates a municipal fueling facility located at 531 North Gertruda Avenue that supports unleaded gasoline and diesel fueling for the City’s fleet of municipal vehicles, including emergency response, public works, and general administrative units. The existing fueling station requires significant rehabilitation and replacement of the older equipment to provide reliable, safe, and efficient delivery of unleaded gasoline and diesel fuel for the City’s fleet operations. The contract for the Fuel Island Maintenance Project, if approved, would improve operational reliability, ensure environmental compliance, and ensure the Island aligns with air quality standards. In addition, the contractor would provide three years of ongoing maintenance, regulatory compliance inspections, and testing of the fuel island. Staff is also recommending that Council adopt a resolution designating the project as a maintenance project, exempting it from Sections 19 and 19.1(a) of the City Charter.
BACKGROUND
The City of Redondo Beach municipal fueling facility has experienced reliability issues with the unleaded gasoline and diesel pump and dispensers. These issues have caused the fuel island to be out of service for multiple extended periods while parts and qualified technicians can be procured to perform repairs. This downtime has cost implications as City vehicles need to purchase fuel at other locations which is inconvenient and more expensive for Departments throughout the organization, including public safety. The City also houses a Compressed Natural Gas (CNG) fueling station at the site. The CNG station is supported by a maintenance contract with Clean Energy and is not part of this project, as it is still provides reliable fueling for the City’s fleet of CNG vehicles.
The City Council approved funding for a Capital Improvement Project (CIP) to carry out repair work on the City Fuel Island at the Public Works Yard. City staff initially issued an informal request for bids for the fuel island upgrade project that included design services; however, no bids were received. Staff changed its approach and revised the project to be a maintenance project to rehabilitate and repair the failing system. Sun West Engineering Constructors, Inc (Contractor) submitted a proposal to replace the existing unleaded/diesel fueling infrastructure on a like-for-like basis to maintain and improve the current system. A Resolution has been prepared for Council to reflect the change in approach and designate the project as a maintenance effort.
The scope of work included in this project includes removing and replacing outdated fuel equipment, including pumps and dispensers, and installing new fuel monitoring and control systems. The work also includes updating piping, wiring, and related components to ensure the fuel system operates safely, efficiently, and in compliance with current regulations. The cost of the initial maintenance project will be funded through the Fuel Island Maintenance Project, CIP Job No. 21100, for a total of $168,386. A 25% contingency has been added to the project budget to cover unforeseen costs that may be uncovered when work commences. The annual ongoing costs, which total $42,921 over three years, would be funded from the Public Works Fleet Division Operating Budget. The total not to exceed amount for the three-year agreement is $253,405.
If approved, the Contractor would work to obtain South Coast Air Quality Management District (SCAQMD) permits, which is anticipated to take 8 weeks. Appropriate equipment would be procured once all permits are secured, and work on-site is estimated to take two weeks. The total estimated timeline from Agreement approval to project completion is 23 weeks. Staff and the contractor plan to make efforts to minimize the time that the fuel island is out of service during the project.
Under the terms of the agreement, the Contractor is responsible for planning, coordinating, and obtaining all required inspections by City, County, and State agencies, including, but not limited to, the SCAQMD permits. The Contractor shall provide proof of passage and compliance with all testing and certification requirements. Following the completion of the initial maintenance project, the Contractor will carry out ongoing maintenance for the remainder of the three-year term of the contract, including monthly inspections and annual certification, monitoring, and testing.
COORDINATION
The City Attorney’s Office prepared the Resolution and approved the Agreement as to form.
FISCAL IMPACT
The Fuel Island Repair Project account currently includes $200,000 of funding. The proposed CIP proposes an additional $25,000 of funding for contingencies. The cost of the initial repairs is $168,386. The ongoing costs, of $42,921 over the next three years, are to be funded from the Public Works Fleet Division Operating Budget.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Reso - No. 2606-039 Public Works Fuel Island Maintenance Project Resolution
• Agmt - Agreement with Sun West Engineering Constructors, Inc.
• Insurance -Sun West Engineering Constructors, Inc.