3. Bid for Replacement of Existing Underground Storage Tanks at Public Wroks Facility Project 93-19 ! CITYOF 3
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CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
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1 MEMORANDUM
TO: Charles Folch, City Engineer
I FROM: Harold Brose, Equipment Superintendent
, E ui m Qpe )1. /
1 DATE: July 20, 1993
I SUBJ: Award of Bid for Replacement of Existing Underground Storage Tanks at
Public Works Facility - Project No. 93 -19
As most of us are aware, many underground fu. Y storage tanks have been found leaking and
I contaminating the ground and water. Examples are the Amoco, Holiday and Sinclair
stations in Chanhassen which have recently replaced fuel tanks.
1 r ,
The existing underground tanks at the Public Works Garage were installed in 1980. To stay
in compliance with the MPCA regulations on underground tanks, I have to daily measure
I the product level of the tanks and compare with pump readings to monitor for any tank
leakage. The problem with using a stick to measure the fuel depth in a 6,000 gallon tank
is the inaccuracy of the readings. One inch can equal up to 80 gallons. If 5 to 10 gallons
I of fuel were leaking daily, it would never be detected. This system of monitoring is MPCA
approved but it is nearly impossible to know if any of out =tanks are actually leaking.
F
I Automatic tank gauging Can be installed to obtain accurate tank monitoring for around
$7,000 on the 3 tanks. New segulAtions will ..mandate that the existing tanks must be
removed by 199 "d ,each year : until ;then. the ; lanes and tanks. Kaye to be nir tested for
1 leakage at a cost o $ 800 annually. By replacing the underground tanks now we eliminate
the possibility of fuel leakage . nd testing costs for the next 5 years . w
1 I have considered purchasing fuel from local stations instead of the City owning tanks;
however, fueling off -road equipment (lawn mowers, bobcats, grader, loaders, etc.) fueling,
off -site would be very difficult. In addition, do pearest station with diesel fuel is at Highway
I 41 and 7. We have had snow storms several times where even the gas stations were closed.
A savings in fuel costs by purchasing in transport loads over station price is around 10 cents
I per gallon. In 1992 the City used 40,000 gallons of fuel. This would be a $4,000 savings in
one year. As the City grows and uses more fuel, these savings will also increase.
I Art
t4 PRINTED ON RECYCLED PAPER
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1 Charles Folch
July 20, 1993
Page 2
I have received bids for removing the existing underground tanks and replacing them with
1 fiberglass tanks and lines. Fiberglass tanks have a warranty. No corrosion protection is
needed on fiberglass compared to steel. Automatic tank gauging would be installed on the
new tanks at this time which meets MPCA regulations for tank monitoring. No other
I annual testing of tanks or lines are required or daily monitoring. I also included bids for
above - ground tanks for comparison. The above - ground low bid is $12,000 higher than the
I underground low bid. The underground tanks have a 10,000 gallon capacity for gasoline and
6,000 gallons for diesel fuel. The above - ground tanks are 6,000 gallons for gasoline and
4,000 gallons for diesel fuel. A 6,000 gallon tank above ground is the largest allowed. I
I lowered the diesel tank to 4,000 gallons to make the above - ground system more affordable
and with blending diesel fuel in winter this size tank could be made to work. We would be
paying more for less fuel storage with above ground, using more space at the Public Works
I Facility and the rules and regulations on above - ground tanks are not permanently adopted
where the underground rules are.
I Considering all these items, I recommend accepting the low bid of Zahl Equipment Co. in
the amount of $72,290 which includes the underground tank system and removal of the
existing underground tanks. There is $70,000 budgeted in the 1993 Equipment Replacement
I Fund for this project. The low bid did come in slightly higher than budgeted. It is not
known at this time whether or not contaminated or poor soils will be encountered until the
old tanks are removed. If soil remediation is needed, additional costs would be incurred.
I Charges for removal of contaminated soil would have to be paid for by the City at time of
removal but 90% of the disposal charges would be reimbursed from the Petro Fund.
ktm OFFICIAL. ENGINEERING COP?
Received
Attachments: 1. Bid Tabulation. Revision No.
1 2. 1993 Equipment Replacement Fund #209 illoproved by City Engineer
Date _ i -9
1 CITY ENGINEER'S COMMENT Approved by City Council
Sete _
I Harold has done an excellent job of summarizing the primary issues surrounding this project
which were discussed in detail last fall with the Council during the budget work sessions.
The low bid is approximately $2,000 higher than budgeted; however, favorable bidding of
I all of the other items in the Equipment Replacement Fund currently yield excess dollars
which will more than cover this project. As it stands, the 1993 Vehicle and Equipment
Replacement Fund would come in at or below budget. I recommend award of this project
1 with the installation of underground tanks to Zahl Equipment Co. in the amount of $72,290.
1
1
CITY OF CHANHASSEN
UNDERGROUND FUEL STORAGE TANK
REMOVAL AND REPLACEMENT
IMPROVEMENT PROJECT NO. 93 -19
10:00 A.M., JULY 16, 1993
BID TABULATION
BIDDER REMOVAL OF TWO UNDERGROUND TWO ABOVE -
NAME AND ADDRESS UNDERGROUND TANKS WITH GROUND TANKS
TANKS EQUIPMENT WITH EQUIPMENT
Zahl Equipment Company I
3101 Spring Street NE $10,045.00 $62,245.00 $74,775.00
Minneapolis, MN 55413
Petroleum Maintenance Co. I
3172 Spruce Street Included with tank $74,385.00 $86,790.00
St. Paul, MN 55117 installation
Westside Equipment I
902 Highway 55 $14,777.00 $59,466.00 $70,239.00
Medina, MN 55340
Pump and Meter Service, Inc.
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11303 Excelsior Boulevard $7,348.00 $70,407.32 $80,283.00
Hopkins, MN 55343
Minnesota Petroleum Service, Inc. 1
5333 University Avenue NE
Minneapolis, MN 55421
Dem -Con Contracting, Inc.
4725 Dow Road
Saginaw, MN 55779
Robin Contracting
1851 Pennsylvania Ave. So.
St. Louis Park, MN 55426 1
Bay West
5 Empire Drive
St. Paul, MN 55103
Rollies Sales & Service, Inc.
Highway 27 West
Osakis, MN 56360
J & D Enterprises
5197 LaVaque Road $13,476.00 $85,742.00 $96,245.00 1
Duluth, MN 55803
Royal Concrete Products, Inc.
6640 Industry Avenue NW
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Ramsey, MN 55303
Ceres Contracting
2504 West Co. Rd. B
St. Paul, MN 55113
United Gunite Construction, Inc.
4158 Musgrove Drive
Florence, AL 35630
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FUND #209
E QUIPMENT REPLACEMENT FUND
SPECIAL REVENUE FUND
II 1993 BUDGET
Commentary
II I
General Comment_ This fund was established to: 1) provide a means by
II which long range capital purchases co S ld m b en on dsand
monitored planned; 2) t
provide a "control center for purchase/maintenance/usage
urcha / prating
costs f o hs peaks and I
and equipment; and 3) to divorce from the op (or not
valleys created by a number of major purchases occurring
I occurring) in any one year. During any five� year
tperiod, sinn since oorig
p ina-
tion of this fund, costs have approximated
erty within the community (the relationship between prop s
streets /utilities, and equipment necesThey for property/public
completes a debt analysis
I ments served is highly predictable). fun s
ays
study each year to insure that debt verall stays, 8
II within the 2 mill guideline and
1992 Exp
Replace Insp. #602 18,000
I Dump Truck #108
Replace Elgin Sweeper 70,000
Flail Mower • 3,000
Roll Packer Trailer 3,000
I Replace *701 18,500
Weed Sprayer 3,000
Slit seeder 3,200
Front Loader Forks 4,500
Paving tar pot 7,000
Replace Public Safety
ILI Director's vehicle 500
17 112,000
Large Rescue 334,700
i
1 Est. 1993 Expendit
Dump Truck Plow & Sander 70,000
Replace #109, 1976 F -750
Skid Steer Loader 20,000
Replace #413, 1980 Bobcat
4x4 Pickup with Plow 3,000
I Replace #405, 1982 4x4 pickup 2 23,000
Crack Sealer
Air Compressor - Replace 0137 15,500
II 1968 C.P. Air Compressr
Groundmaster Mower - Replace
1976 Allis to be used by
11 Sewer /Water /Street Depts. for
mowing areas outside the parks 15,00
Replace CSO Vehicle 2 0 920
Admin. Van 60,000
I; Re -build fire truck 7
Fuel storage tanks 333,420
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