Title
Applications for Arizona Department of Environmental Quality to Remove and Demolish Existing Underground Storage Tanks and Provide Partial Funding for New Tanks (Ordinance S-46003)
Description
Request authorization for the City Manager, or his designee, to apply to the Arizona Department of Environmental Quality (ADEQ) to remove and demolish at no cost to the City underground fuel storage tanks (USTs) at multiple City sites including the Glenrosa Service Center. Further request authorization for the City to apply to ADEQ for funding to provide partial reimbursement to the City for the City’s installation of new USTs at the Glenrosa Service Center and other City sites identified as needed using agreements with ADEQ. Further request authorization for the City Treasurer to accept all funds related to this item. Additionally, request the City Council to grant an exception to the indemnity and assumption of liability provisions of Phoenix City Code section 42-18 for mutual indemnification for the agreements with ADEQ.
Report
Summary
The Public Works Department is responsible for maintenance and repair of the City's underground fuel storage tanks. ADEQ presently has a statewide program to remove underground storage tanks that will demolish and take away USTs at no cost, as well as provide partial funding for installation of new USTs. ADEQ has notified municipal organizations of this limited time to apply for funding for USTs. Currently, there are nine USTs at the Glenrosa Service Center eligible for this program, as well as other USTs at multiple City locations. The City will use a Job Order Contract (JOC) for installation of the new tanks. Once the new tank installation is complete, the City will submit a reimbursement request to ADEQ for partial installation costs, which will allow Public Works to replace the underground fuel storage tanks at a reduced cost.
Financial Impact
There is no financial impact to the City for ADEQ to remove and demolish USTs. The reimbursement from ADEQ to install new USTs, if fully received, will be up to $300,000 per site, for a maximum amount of $3,300,000 for 11 sites. Funds are budgeted in the Public Works Department at $2,470,000 in FY 2019-20 to replace aged storage tanks at Glenrosa and other sites. The tank replacement funding from ADEQ will allow the City to save up $600,000 in project costs for the underground storage tank replacements that are planned.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.