R2014-127 ACCEPTING THE BID Illinois Oil Marketing

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PUBLIC WORKS MEMORANDUM NO. 2014 - 55 DATE: October 15, 2014 TO: Honorable Mayor McElroy and City Council Members FROM: Ryan P. McCrady, City Manager Richard G. Marley, P.E., Public Works Director Deborah M. Perry, Purchasing Supervisor SUBJECT: Resolution Accepting the Bid of Illinois Oil Marketing for Shear Valve & Containment Installation Project SUMMARY RECOMMENDATION: It is recommended that the City Council approve the attached resolution accepting the bid for the Shear Valve & Containment Installation Project to Illinois Oil Marketing, for a cost not to exceed $41,507.00. BACKGROUND: The State Fire Marshal's biennial site visit on September 5, 2014 has resulted in a Notice of Violation of the City's Underground Storage Tank(UST) at the City's fuel site at the Municipal Service Center. The Violation states that four(4) fuel dispenser impact valves (shear valve) are not at the proper grade level at the MSC fuel site. State Fire Marshal's visit has also resulted in a Notice of Violation of the spill prevention device and requires replacement. Two (2)of the Four (4) Risers are too tall and will not let the spill bucket lids seal properly. A Riser is the coupling pipe or in ground fuel delivery. Specifications and bidding documents were prepared by Fleet management staff. The notice to contractors for replacement of impact valves, containment sumps and lower fuel tank fill risers was sent to Illinois Oil Marketing, R.L. Hoener Company, Bodine Services, and Seneca Oil. Illinois Oil Marketing was the only bidder with a bid of$41,507.00. The City's fuel site should be able to provide fuel to the City's vehicles while the repairs are made to the fuel dispensers. If the repair work is not complete November 4, 2014, the underground storage tanks system will be"Red Tagged"by the Fire Marshal and fuel suppliers will be able to refill the fuel tanks. The City still will be able to dispense fuel until the tanks are empty. Should the repair work take longer than expected, alternative arrangements to dispense fuel have been made with the City's fuel supplier, Morgan Distributing Company.