CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #2 to Contract 23-158, Fuel Site and Storage Tank Inspections and Repairs, to Crowne Industries for an amount not to exceed $225,000
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DEPARTMENT: Department of Public Works
SUBMITTED BY: Dan Randolph PE, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Manager awarded Contract 23-158 to Crowne Industries on July 31, 2023, for a one-year term from January 1, 2024 through December 31, 2024, with five one-year options to extend. The purpose of the contract is to provide maintenance, repair, and regulatory compliance inspections of the City’s fuel sites and underground fuel storage tanks.
On February 21, 2025, the City Manager awarded Option Year #1, extending the term through December 31, 2025, with four one-year options remaining.
DISCUSSION:
During the first option year of the contract, Crowne Industries completed required regulatory inspections within the terms of the agreement and within the timeframe required. Based on the vendor’s performance, the Department of Public Works - Fleet Services Division recommends extending the contract for the second option year. Crowne Industries has agreed to maintain the rates and terms provided for under the contract.
The award amount increase is to cover planned and budgeted site maintenance at the fuel site located at the Public Works Service Center (PWSC) in the amount of $135,000 and an underground storage tank removal at the Water Utility’s South Operations Center in the amount of $30,000. These expenses are in addition to the $50,000 budgeted for regulatory site inspections and other related repairs.
The term of the option year is from January 1, 2026, through December 31, 2026, with three one-year options remaining in the agreement.
FISCAL IMPACT:
CIP#: MB234 & WW085
Fuel site and storage tank inspections and repair services are expensed to the Equipment Maintenance account listed below. The 2026 budget included $798,800 for various equipment maintenance services for Fleet, including fuel site repairs. Site maintenance planned at the PWSC is expensed to the Building Improvements account listed below. Planned repairs in 2026 are associated with MB234, Fuel System Repairs, which has a budget of $165,000. Additionally, a portion of this award will go towards work being done under WW085, Water Facility Generator Replacement (South Operations Center), which has a budget of $1,135,000 in 2026. The award requested is within the amount budgeted for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
31342200-551500 |
Capital Projects Fund |
$1,954,000 |
|
31351100-531303 |
General Fund |
$798,800 |
|
41251500-551502 |
Water Utility Fund |
$86,910,285 |