Memorandum 16-109 Funding to Remove Sewer Treatment Plant Underground Fuel Storage Tank

Memorandum 16-109

TO:                       Katie Koester - City Manager

FROM:                 Carey Meyer – Public Works Director

DATE:                  June 17, 2016

SUBJECT:         Request for Funding to Remove Sewer Treatment Plant Underground Fuel Storage Tank

Public Works has been closing underground fuel storage tanks (UST’s) every chance we get to remove the threat of release, soil contamination, and costly clean-up projects.  Additionally, removing the UST’s saves money by decreasing the City’s pollution liability policy costs, and by eliminating the need to keep up with ever-changing ADEC installation and monitoring regulations. 

There is a 1,100 gallon steel UST at the sewer treatment plant that was installed in 1991 that has been utilized for heat and for the backup generator.  The tank is now only being utilized for the backup generator.  We have an above ground tank (AST) on site to replace the underground tank.  Removal of the underground tank will require a formal closure of the existing UST which will entail pumping, cleaning, removal, and ADEC reporting.  This work will require a contractor approved for this type of work.  In an effort to save funds, PW can assist the contractor with the excavation, removal, and backfill.  I have been in contact with a few contractors on the ADEC approved list and have a proposal that would keep us below $10,000.  This includes the environmental contractor proposal and some piping and fittings necessary to make the transition to the AST.

We were advised by ADEC in the fall of 2015 that the cathodic protection system needs to be upgraded on this tank, and that we need to upgrade the tank and piping leak detection and begin monthly monitoring.  Going ahead and making the transition to the AST will eliminate any additional expense associated with maintaining a UST and meeting regulatory requirements.

Funding in the amount of $9,970 is requested.  This will cover the $8,170 proposal from Prism Construction, and an estimated $1,800 for materials to make the plumbing transition to the AST (piping, fittings, day-tank).

Recommendation

The Homer City Council pass an ordinance authorizing an expenditure from the Sewer Reserve Account in the amount of $9,970 for the removal of the existing underground fuel storage tank at the sewer treatment plant. (Fiscal Note: 215-0004)