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Public Works awards $7.58 million contract to replace yard fuel tanks ahead of state deadline
Summary
The commission approved a $7,583,300 contract to replace two single-wall underground fuel tanks at the Public Works yard at 2323 Cesar Chavez Street; the work responds to California Senate Bill 445's deadline to remove single-wall tanks by Dec. 31, 2025.
The Public Works Commission on Thursday voted to award a $7,583,300 construction contract to Mitchell Engineering to replace underground fuel tanks and associated dispensers at the San Francisco Public Works yard at 2323 Cesar Chavez Street.
Project manager Britney Jones told commissioners the contract includes replacement of three fuel tanks, new dispensers and canopy work, electrical and controls, storm drainage and paving. Jones said the Office of the City Administrator's fleet services division owns and will fund the project. "Today we're going to be asking for your approval to award this contract to Mitchell Engineering in the amount of $7,583,300 with a construction duration of 490 days," Jones said.
The department said the award is driven by California Senate Bill 445 and related Health and Safety Code provisions that require removal of single-wall underground fuel tanks by Dec. 31, 2025. Jones said the site contains two single-wall tanks; state law and agency guidance expose owners to fines of up to $5,000 per day per single-wall tank, which would mean as much as $10,000 per day for the two tanks if they remain in place beyond the deadline.
The project drew only one bid. Jones and other staff said SB 445 has produced many similar projects statewide and that contractors able to perform underground-tank removals are in high demand. Jones noted the department could negotiate price, but pushing negotiations risks delaying notice to proceed and increasing exposure to fines. Don Jones of the fleet division added that retaining an on-site fueling facility helps the city ensure fuel access for municipal vehicles during a major emergency when retail stations or supply lines may be disrupted.
Commissioners asked why the bid exceeded the department's estimate and why work had not been completed earlier. Jones said differences in sewer work, electrical controls, trench and excavation support, and structural work accounted for most of the variance and that initial project funding was delayed during the COVID period. The Office of the City Administrator confirmed it will fund the contract as presented.
The motion to award the contract was made by Commissioner Gerald Turner and seconded by Chair Lauren Post; the commission approved the award by voice vote. The department estimated a 490-day construction duration after notice to proceed.
Ending: The department will post the award resolution to the commission website and proceed with pre-construction steps so the project can meet the state removal deadline.
