HomeMy WebLinkAbout3HCompletionAirportFuelStorageProjectCITY Of PETALUMA, CALIFORNIA
AGENDA BILL
Agenda Title:
Resolution Accepting Completion of the North Bay
Airport Fuel Storage Tank Upgrade Project No. C100106.
&H
February 25, 2008
Meetine Date:
Construction, Inc. February 25, 2005
Meetine Time: ❑X 3:00 PNI
❑ 7:00 PAI
Cateeory: ❑ Presentation X Consent Calendar ❑ Public Hearing ❑ Unfinished Business ❑ New Business
Denartment:
Public Works
Cost of Proposal
Dire tor:
Vinen arengo
t
S924,771.22
Contact Person:
Larry Zimmer
Amount Budeeted: $979,000 (construction contract plus contingency)
Phone Number:
776-3674
Account Number:
3299-54151-C100106
Name of Fund:
General Fund; Transit Fund;
FAA Airport Improvement Project
(AIP) funding
Attachments to Agenda Packet Item:
1. Resolution Accepting Completion of the North Bay Construction, Inc. Airport Fuel Storage Tank Upgrade
Project No. C 100 106
Summary Statement:
On May 4, 2005, the Petaluma Airport Commission recommended that the City proceed with design and bidding
of a reconstructed airport fuel delivery system using above -ground tanks to bring the airport fuel system into
compliance with State and local requirements. The existing system was installed about 19S4, and did not comply
with current under -ground tank and vapor recovery requirements. The project was advertised on October 9, 2006,
with bids due on November 5, 2006. A single bid for $1,552,530 was received from Paradiso Petroleum Inc.,
which was more than double the engineer's estimate. The project included replacing three under-grormd tanks
with an above -ground fueling system that met all applicable regulatory requirements. On December 20, 2006, the
City Fire Marshal issued a new Order to Comply, requiring shut down of the system if not repaired and/or
reconstructed by July 1, 2007. On January 22, 2007, City Council gave approval to reject all bids, revise the
budget and authorize the City Manager to negotiate and execute a contract for reconstruction and replacement of
the existing fuel delivery system at the Petaluma Municipal Airport in an amount not to exceed $900,000.
Negotiations were held with North Bay Construction and a contract was awarded in the amount of $794,S00. The
remaining contingency balance for construction includes the $105,200 difference between negotiated total and
allocated araount plus the $79,000 originally allotted contingency in the project budget, totaling S184,200.
Contract Change Orders amounted to $129,971.22, which represents a 16% increase over the original contract,
and is within the project contingency.
Recommended Citv Council Action/Sueeested Motion:
Adopt a resolution accepting the completion of the Airport Fuel Storage Tank Upgrade Project, Project No.
C100106. Administrative Services will release the 10% retention to the contractor within 60 days after Council
acceptruice, as noted in the contract documents.
R¢viewed by Admin. Svcs. Dir: Reviewed by City Attornev: Annrove(d_b)v City Manager:
nQ
ADa 10 (b� Date: U_ ` Date: ®®
Rev.# Date Last Revised: File: S:\.CIP Division\I'rolectsv\irpmt Fuel Stora._e Taub l.p_r;nlr
C100106\Construction\30 Agenda 17ills\,\upon PoeI 'P,nk %ccupinnu
Rev 01 15 07.doe
CITY OF PETALUMA, CALIFORNIA
FEBRUARY 25, 2008
AGENDA REPORT
FOR
RESOLUTION ACCEPTING COMPLETION OF THE NORTH BAY CONSTRUCTION,
INC. AIRPORT FUEL STORAGE TANI{ UPGRADE PROJECT, PROJECT NO. 0100106
1. EXECUTIVE SUMMARY:
On May 4, 2005, the Petaluma Airport Commission recommended that the City proceed
with design and bidding of a reconstructed airport fuel delivery system using above-
ground tanks to bring the airport fuel system into compliance with State and local
requirements. The existing system was installed about 1984, and did not comply with
current under -ground tank and vapor recovery requirements. The project was advertised
on October 9, 2006, with bids due on November S, 2006. A single bid for $1,582,530
was received from Paradiso Petroleum Inc., which was more than double the engineer's
estimate. The project included replacing three under -ground tanks with an above -ground
fiteling system that met all applicable regulatory requirements. On December 20, 2006,
the City Fire Marshal issued a new Order to Comply, requiring shut down of the system
if not repaired and/or reconstructed by July 1, 2007. On January 22, 2007, City Council
gave approval to reject all bids, revise the budget and authorize the City Manager to
negotiate and execute a contract for reconstruction and replacement of the existing fuel
delivery system at the Petaluma Municipal Airport in an aniormt not to exceed $900,000.
Negotiations were held with North Bay Construction and a contract was awarded in the
amount of $794,500. The remaining contingency balance for construction includes the
$105,200 difference between negotiated total and allocated amomit plus the $79,000
originally allotted contingency in the project budget, totaling $184,200. Contract Change
Orders amounted to $129,971.22, which represents a 16% increase over the original
contract, and is within the project contingency.
2. BACKGROUND:
The City operated an under -ground fuel storage tank facility at the Municipal Airport
consisting of three tanks. The first tank was Jet A fuel, which is a bottom loading tank
where fuel is transferred from the tank to a Jet A refueling truck. The second tanl.
dispensed Avgas (aviation fuel) from an island on the tarmac for small planes, and the
third tank dispensed unleaded gasoline for city vehicles. The existing taro: system had
three, twelve thousand (12,000) gallon double-wall fiberglass under -ground tanks, with
single wall piping in a trench liner.
S:;CIP Divisiun'.[1iu_I"ts\A irpurt Puel Suxage'rank Upgrade CI OO]WConstnictiun\30 Agenda Bi I ls',Airpon Pud Tank 2
Acceptance Rec 01 15 nZduc
3
4.
Under -ground fael tank regulation changes caused the airport fueling system to be out of
compliance with State regulations, and on November 2004 the Airport Conunission was
so informed by the City Fire Marshal, who enforces State under -ground tank regulations
within the City. At that time, the three fuel tanks were "substantially out of compliance".
There were deficiencies in the monitoring system, vapor recovery systems and piping,
due to changes in regulations. At that time, some of the deficiencies were repaired and
the operating pennit was renewed, with the understanding that the system needed to be
upgraded or a new tank system installed. The original deadline for compliance was
October, 2006.
The Airport Commission reconnnended that staff complete a design for an above -ground
fuel storage system, and prepare drawings and specifications for competitive bids. The
project was advertised on October 9, 2006, with the bids due on November 8, 2006. A
single bid for $1,582,530 was received from Paradise Petroleum hie., including the base
bid of $1,268,800 and the added alternate bid of $263,730 for tank removal.
The original project included replacing three existing under -ground fitel tanks and fueling-
system
uelingsystem with an above -ground fueling system comprised of three, 12,000 gallon tanks: 1)
an unleaded gasoline tank for fueling city vehicles, 2) a Jet A bottom loading tank, and 3)
an avgas, aviation fuel tank. Subsequently, the need for a new unleaded tank was
eliminated. The now completed construction work includes tank installation, piping,
monitoring, electrical, controls, landscaping, fencing, concrete and asphalt work to
provide a complete working system. The work did not include the removal of the existing
ander-ground tanks which are no longer in operation. The three under -ground tanks must
be removed within a year from the date they were taken out of operation.
ALTERNATIVES:
Accept the completion of this project.
FINANCIAL. IMPACTS:
The following table represents the construction project budget and the final construction
expenditures:
Description Cost
Original Contract $794,800.00
Total of Change Orders $129,971.22
Total Construction Cost $924,771.22
Total Construction Budget with Contingency $979,000.00
CIf' D iv i swn\Pigjeoi Airport Purl Storage'I'amk Upgradc C100100\Constructiun\30 Agenda tai I ls`'.Airpm t Puel'dill, 3
ACaITI:uiee Rer 01 15 OZdoc
5. CONCLUSION:
Following acceptance of the project, the City Clerk/Recording Secretary will file a Notice
of Completion with the Sonoma County Recorder. Finance Department will release the
10% retention to the contractor within 60 days after Council acceptance, as noted in the
contract documents.
6. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR
COMPLETION:
Completion of a working fuel storage system at the Petaluma Municipal Airport, which
complies with all current standards and regulations, will be an asset to the City and the
Airport for years to come.
RECOMMENDATION:
Adopt a resolution accepting completion of the Airport Fuel Storage Tank Upgrade
Project No. C100106. Administrative Services will release 10% retention to the
contractor within 60 days after Council acceptance, as noted in the contract documents.
S;\CIP Division\Projects\Airport Fuel Storage Tank Upgrade 000106\Construction\30 Agenda Bills\Airport Fuel Tank
Acceptance Rev 01 15 07.doc
ATTACHMENT #1
RESOLUTION ACCEPTING COMPLETION OF THE NORTH BAY
CONSTRUCTION, INC. AIRPORT FUEL STORAGE TANK UPGRADE PROJECT,
PROJECT NO.3299-54151-C100106
WHEREAS, on January 22, 2007, based on the findings contained in City of Petaluma
Resolution 2007-013 N.C.S., the City Manager was authorized to enter into negotiations and
execute a contract for reconstruction, replacement and repair of the Petaluma Municipal Airport
fuel tank delivery system, in an amount not to exceed $900,000.00, without further compliance
with competitive bidding requirements; and
WHEREAS, a contract was negotiated and executed with North Bay Construction, Inc.
in the amount of $794,800.00; and
WHEREAS, a construction contingency of $184,200.00 was established for this project;
and
WHEREAS, the following Change Orders affecting the Project amount have been
approved:
Change
Order #
Description
Cost
#1
Fire hydrant relocation and over -ex tank slabs
$
19,113.87
#2
Potholing and electrical
$
19,296.62
#3
Added fuel line
$
10,538.72
#4
Sanitary sewer and added aggregate base
$
55,024.85
#5
Added fence and storm drain
$
19,057.03
#6
Item balancing
$
(53,650.00)
#7
New pump, damper, sensors, & stainless steel
$
60,590.13
Total of all Change Orders $ 129,971.22
WHEREAS, the final contract amount, including all approved contract change orders, is
$924,771.22; and
WHEREAS, City of Petaluma staff have inspected the Project and determined that it has
been completed in accordance with the contract requirements, subject to the Contractor's
continuing warranty and other obligations pursuant to the contract; and
C\Documents and Settings\kcrurnp\Local Settings\Temporary Intemet Files\0LK213E\Aa-pcni Fuel Tank Acceptance Rev 5
01 1S 07.doc
WHEREAS, based on the foregoing, staff recommends acceptance of the Project on
behalf of the City of Petaluma;
NOW, THEREFORE, BE IT RESOLVED by the City of Petaluma that
1) The final total construction contract of $924,771.22 is approved and that the City Clerk is
hereby authorized to sign the Notice of Completion.
2) Administrative Services is hereby authorized to release to North Bay Construction, Inc. all
undisputed retention not subject to pending change orders, within sixty (60) days after
Council acceptance, in accordance with the terms of the Project contract, California Public
Contract Code Section 7107 and applicable law.
C:\Documenk and Seuings\kcrurnp\Local Setnngffemporary Internet Fdes\0LKK2BE\Airport Fuel tank Acceptance Rev
01 1507.doc