(7)AR 051909 Patriot Environmental

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CITY OF COLTON AGENDA REPORT ITEM # 7 FOR COUNCIL MEETING OF MAY 19, 2009 TO: Honorable Mayor and City Council FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Waive Formal Bidding Requirements and Approve Contract with Patriot Environmental Services for Emergency Oil Cleanup and Transformer Removal at the Hub Substation, in the Amount NTE $75,000.00, Per Colton Municipal Code Section 3.08.140(a). DATE: May 11, 2009 BACKGROUND: The Hub Substation experienced an oil spill from a PCB contaminated transformer on March 31, 2009. The spill was quickly contained, and the proper authorities contacted and advised. The spill was confined to a small area around the transformer. On Thursday, April 16, the oil was pumped out of the transformer, and shipped to a facility in Utah for disposal. The facility could not take the oil prior to April 20. The transformer, and two others, were removed and transported to a facility in Kansas for disposal and incineration. After the oil and transformers were removed, soil remediation, including testing and removal was performed on the affected area. The contaminated soil and concrete are awaiting transportation to the disposal facility and the affected area needs to be backfilled with clean soil. DISCUSSION/ANALYSIS: The spilled insulating oil was PCB contaminated. Substation personnel contained the release. City of Colton Fire and Patriot Environmental Services responded to the incident. A Hazardous Materials Spill Report was filed with California Emergency Management Agency. In order to comply with all current State and Federal rules and regulations pertaining to the processing of materials containing PCB's staff contacted two companies who had previously handled hazardous materials removal for the City; Patriot Environmental Services and Veolia Environmental Services. Patriot responded immediately, but we did not receive a response from Veolia until April 7, 2009. Section 3.08.140(a), Exceptions to Competitive Bidding — Non -Public Projects, allows the City Manager to authorize services when the situation is determined to constitute an emergency. Since the oil in the transformers was known to contain PCB's and posed an environmental threat if not handled immediately, staff did determine the situation to be an emergency, and Patriot was engaged to perform the services at a cost not -to -exceed $75,000.00 FINANCIAL IMPACT: