Title
Department of Transportation recommending the Board consider the following pertaining to Contract 10197 for the installation of an aboveground fuel tank and dispenser system and removal of the existing underground fuel tanks located at the South Lake Tahoe Maintenance Yard:
1) Approve and adopt the Contract Documents, pending County Counsel and Risk Management Approval; and
2) Authorize advertisement for bids.
(District 5)
FUNDING: Road Fund (100%) (No Federal Funds).
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DISCUSSION / BACKGROUND
Department of Transportation maintenance yard in South Lake Tahoe currently utilizes a 20,000 gallon underground storage tank (UST), that is split into two (2) separate compartments. One (1) compartment is 14,000 gallons and the other compartment is 6,000 gallons with an original construction date of November 1998. In 2023, the 6,000 gallon UST was determined to no longer meet environmental requirements and was closed permanently. Department of Transportation (Transportation) reviewed the age of the tanks, environmental regulations and monthly monitoring costs for the UST's and determined the upfront cost to replace the system with an aboveground fuel tank system would provide long term reliability and reduce future budget items related to tank maintenance and repairs. Transportation subsequently added the replacement project to the Fiscal Year 2023/24 budget and has since been working on the various phases of the project.
The initial phases included purchasing the fuel tanks, dispensers, and other required materials, which were formally bid under 24-0067 and brought to the Board for approval on July 30, 2024, under Legistar file 24-1246. The materials were ordered in 2024 and delivered in October 2025. Then in September 2025, construction for the concrete pad for the tanks to be set on was bid and awarded. The work was completed prior to winter 2025. The final phase, covered under contract 10197, includes removing the existing system, which encompasses the underground tanks, dispensers, and all related piping, completing soil testing, and then installing the new aboveground system prior to winter 2026 to ensure Transportation has sufficient diesel readily available for snow removal operations in the Tahoe Basin.
ALTERNATIVES
1) The Board could choose not to approve the Contract Documents. Transportation will make any changes requested by the Board and return at a later date.
2) The Board could choose not to authorize advertisement for construction bids. Transportation will make any changes requested by the Board and return at a later date.
PRIOR BOARD ACTION
July 30, 2024, Legistar file 24-1246, Award of Bid #24-0067
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel and Risk Management are reviewing the Plans and Contract Documents.
CAO RECOMMENDATION / COMMENTS
Approve as recommended.
FINANCIAL IMPACT
The total estimated cost for Project construction is $450,000, which includes construction items of work, construction management, environmental monitoring, inspection, materials testing, and contingencies. Funding for the project is included in the Fiscal Year 2025/26 Adopted Budget and will be carried over to the Fiscal Year 2026/27 Recommended Budget for all work not completed prior to July 1, 2026.
There is no financial impact or change to Net County Cost associated with this item. The Board will not obligate the County with the current requested action. The obligation will arise from the subsequent award of the bid.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Rafael Martinez, Director
Department of Transportation