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APPROVE MOTION TO AWARD A PROFESSIONAL SERVICES CONTRACT FOR ON-CALL ENVIRONMENTAL SERVICES FOR THE DOWNTOWN FUEL TANK REMOVAL, LEAK ASSESSMENT PROJECT
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RECOMMENDATION
It is recommended that the City Council approve a motion to:
1. Award a Professional Services Contract to AdvancedGeo, Inc., of Stockton, CA, in the amount not to exceed $150,000, for on-call environmental services for the Downtown Fuel Tank Removal, Leak Assessment, Project No. PW1425.
2. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.
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Summary
On June 6, 2004, Pacific Gas and Electric Company (PG&E) struck a 3,000-gallon underground storage tank (UST) located under the sidewalk and within City right-of-way at 601 East Main Street. The UST showed evidence of leaking. The Central Valley Regional Water Quality Control Board (Water Board) has jurisdiction over the process and cleanup decisions for a leaking UST. On April 9, 2008, a “Notice of Responsibility” letter was sent to the City, which required the City to address contamination associated with the UST.
Underground fuel tank removals and remediation often take many years to complete. Accurate and complete records of correspondence, monitoring, and testing is needed as evidence and documentation for the regulatory agency with jurisdiction over protecting groundwater resources. AdvancedGeo, Inc. has been performing environmental monitoring and mitigation work at this site since 2009 under a small purchase contract and has expended approximately $26,000 to-date.
In 2019, the Water Board reviewed the status of contamination levels and concluded that additional investigation and monitoring work would be necessary, including a site assessment, well installation report, and soil gas sampling event. Because AdvancedGeo, Inc. has extensive knowledge of site conditions and mitigation history to-date, staff recommends contracting with AdvancedGeo, Inc. on a sole-source basis. AdvancedGeo, Inc. submitted a proposal to perform the work at the UST location as prescribed by the Water Board in the total amount of $150,000.
It is recommended that Council approve a motion authorizing the City Manager to execute a Professional Services Contract in the amount not to exceed $150,000 to AdvancedGeo, Inc. for environmental services for the Downtown Fuel Tank Removal, Leak Assessment, Project No. PW1425.
DISCUSSION
Background
USTs hold toxic material, such as fuel and other liquids, which can harm human health, safety, and the environment. Leaking USTs, if undetected, can cause pollution to the surrounding soil and groundwater, which must be mitigated or cleaned up. The process and cleanup decisions for a leaking UST is typically guided by the San Joaquin County Environmental Health Department (EHD) or other regulatory agency with jurisdiction over protecting groundwater resources.
On June 6, 2004, PG&E struck a 3,000-gallon UST located under the sidewalk and within City right-of-way at 601 East Main Street. The UST was likely used to store heating oil for street lamps that was used until the early twentieth century. Subsequently, EHD was notified of the UST.
On June 11, 2004, EHD sent letters to the City and the adjacent property owner, Main Street Investors, indicating that both parties were responsible for the tank removal and site remediation. Main Street Investors removed the tank in 2004, which was permitted and inspected by EHD. Subsequent to the removal, soil samples were collected beneath the UST that revealed high levels of diesel or dissolved petroleum hydrocarbons. Main Street Investors did not take action to assess the lateral and vertical extent of the contamination by April 1, 2008, as required by EHD.
On April 9, 2008, EHD sent a “Notice of Responsibility” letter to the City, which required the City to address the regulatory concerns at the contaminated site. The City Attorney’s Office reviewed the matter and advised the Public Works Department to proceed with evaluation and potential cleanup of the site. The City responded to EHD with a Preliminary Site Assessment Work Plan developed by AdvancedGeo, Inc. and approved by EHD on January 13, 2009.
In 2011, AdvancedGeo, Inc. completed the site assessment of dissolved petroleum hydrocarbons in which soil samples revealed no contamination concerns. The City submitted a “No Further Action Request Report” for the site to be closed. EHD responded with additional concerns with the site and required soil samples along with a vapor intrusion investigation. The City, through AdvancedGeo, Inc., continued to perform more sampling and monitoring of the site. In 2015, jurisdiction for UST compliance transitioned to the Water Board.
Present Situation
The Water Board staff recently reviewed the status of contamination levels and concluded that additional investigation and monitoring work would be necessary. A letter from the Water Board dated April 23, 2019, requested the City to submit a site assessment and well installation report, perform a soil gas sampling event, and resume the quarterly groundwater monitor reporting.
Underground fuel tank removals and remediation often take many years to complete. Accurate and complete records of correspondence, monitoring, and testing is needed as evidence and documentation for the regulatory agency with jurisdiction over protecting groundwater resources. AdvancedGeo, Inc. has been performing environmental monitoring and mitigation work at this site since 2009 under a small purchase contract and has expended approximately $26,000 to-date.
Staff recommends Council approve a motion to award a five-year Professional Services Contract not to exceed $150,000 to AdvancedGeo, Inc. for on-call environmental services for the Downtown Fuel Tank Removal, Leak Assessment, Project No. PW1425 (Attachment B). Public Works staff, together with Procurement, recommend contracting with AdvancedGeo, Inc. on a sole-source basis because of their extensive knowledge of the existing project site conditions and mitigation oversight to-date. AdvancedGeo, Inc. submitted a proposal to perform the work outlined in the Water Board’s April 23, 2019, letter for a total of $150,000 for as needed installation of wells, analysis, monitoring reports to the Water Board, and other time and materials services that are anticipated for project closeout. Public Works staff will issue task orders to the contractor to manage the as-needed services through the duration of this multi-year contract set to expire June 30, 2025.
Immediate proposed work is estimated to cost approximately $60,000 and will be funded through the Leaking Underground Fuel Tank Program, PW1425. Program funding for the current fiscal year includes $50,000 in General Funds appropriated through the 2020-2025 Five-Year Capital Improvement Plan. Funding for additional work, not to exceed $150,000, will be contingent on future annual budget appropriations to the program.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:
1. The City does not have the specialized equipment or qualified staff available to perform the required environmental subsurface investigation directed by the Water Board.
2. AdvancedGeo, Inc. is recommended as a sole-source vendor due to their extensive mitigation, monitoring, and reporting history related to this project, and they are capable of supplying the specialized services needed to address the Water Board regulatory actions.
FINANCIAL SUMMARY
The Professional Services Contract with AdvancedGeo, Inc. is proposed to be funded through the Leaking Underground Fuel Tank Program, PW1425, General Capital Fund account number 301-3020-640. Sufficient budget is available in the program to fund immediate work, estimated to cost approximately $60,000.
Funding for additional work, not to exceed $150,000, will be contingent on future annual budget appropriations to the program.
There is an impact to the City’s General Fund as a result of taking the recommended action.
Attachment A - Vicinity Map
Attachment B - Professional Services Contract with AdvancedGeo, Inc.