(15)AR 020508 West Tek, Inc. - Laserfiche WebLink

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ITEM #15 CITY OF COLTON AGENDA REPORT FOR THE CITY COUNCIL MEETING OF FEBRUARY 5, 2008 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS FROM: AMANDA RHINEHART; INTERIM PUBLIC WORKS ADMINISTRATOR SUBJECT: APPROVE RESOLUTION AUTHORIZING A LOAN, IN THE AMOUNT OF $200,000, BETWEEN THE INTERNAL SERVICE FUND AND GENERAL FUND FOR THE FUEL TANK REPLACEMENT PROJECT; AUTHORIZE THE AWARD OF A CONSTRUCTION AGREEMENT FOR THE FUEL TANK REPLACEMENT PROJECT TO WEST TEK, INC. AS LOWEST RESPONSIVE AND RESPONSIBLE BIDDER IN THE AMOUNT OF $175,000. DATE: JANUARY 22, 2008 BACKGROUND: Corporate Yard fuel depot underground storage tanks (UST) were installed in 1989. Operating costs incurred include the following annual fees: UST Fuel Taxes to the State Board of Equalization, UST fees to the San Bernardino County Fire Department, and UST testing. The City pays approximately $8,000 annually in fees and taxes. On March 30, 2001, the State Water Resources Control Board sent a letter to all owners and operators regarding new regulatory requirements for underground storage tanks (UST). The new regulation requires UST owners and operators to: a. Perform triennial testing of secondary -containment systems, including under -dispenser containment. b. Conduct triennial enhanced leak detection for single walled UST and UST system components that are located within 1000 ft. of drinking water wells, and c. Install under dispenser containment for UST systems that are not equipped with such containment by December 31, 2003. In conjunction with the above new regulatory requirements, the State Water Resources Control Board notified the City of Colton that the Corporate Yard USTs are within 1000 ft. of a fresh water drinking well and are subject to annual Enhanced Leak Detection Inspection. On December 7, 2007, the County Fire Department Unit performed an inspection and found violations that led to the closure of the existing gasoline and diesel underground fuel storage tanks.