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Placentia directs staff to seek replacement-tank bids and continue talks with Galaxy over fleet-fueling
Summary
Council asked staff to obtain quotes for removing the city’s underground storage tank and for installing replacements, and authorized continued negotiations with Galaxy, the current lessee, to assess a fueling agreement with emergency-service provisions. Council recorded a 3–0 vote with two not voting on the motion to obtain bids and pursue talks.
The Placentia City Council on May 6 directed staff to move forward on contingency planning for the city's fuel system: obtain bids to remove the existing underground storage tank (UST) and to install a replacement, and continue negotiating with Galaxy (the current lessee/operator) to explore a fleet-fueling arrangement that would include generator-backed emergency access.
Staff said two options remain under consideration: remove and fuel off-site (estimated about $220,000) or remove and replace on-site underground storage tanks (estimated about $1.1 million). The city currently receives revenue from a lease and royalty arrangement at its fueling site; those royalties and an operator discount factor into an analysis comparing on-site fueling, a bulk-yard purchase, and a private-provider arrangement.
Jim Karopoulos, representing Galaxy, told the council the company maintains large on-site inventories and is a designated emergency fuel provider for major brands, and that Galaxy would install an emergency generator at its expense if needed for city use. The company also said it would dedicate dispensers to city vehicles in emergency events and highlighted its history of serving municipal fleets.
Staff recommended obtaining second bids for tank removal and replacement to ensure options are available if negotiations with Galaxy do not produce the required emergency-fueling guarantees and price terms. Council approved the staff direction and authorized continued discussions with Galaxy; the vote on the motion to seek bids and negotiate was recorded as three yes, two not voting.
Council members asked staff to ensure any arrangement preserves fuel availability for emergency response and to collect firm cost estimates for both replacement and off-site fueling options before returning with a recommended contract for council approval.
