TITLE
Recommendation to authorize City Manager to enter into a Stipulated Agreement and any related documents with the State Water Resources Control Board for the settlement of penalties related to prior non-compliance of the City’s Underground Storage Tank (UST) systems; and
Increase appropriations by $1,700,000 in the General Fund (GP 100) in the Citywide Department (XC) for the negotiated UST settlement costs. (Citywide)
DISCUSSION
Historically, the City managed approximately 66 USTs and waste oil tanks at approximately 46 locations throughout the City. A plan to reduce and regionalize fueling facilities was contemplated as far back as 1995, though regionalization had not been completed until recently. The effort to pursue reduction and regionalization was based on potential liability related to leaking USTs and increasing regulations related to integrity testing and upgrades to UST fueling facilities. The City, through its Fleet Services Bureau in the Department of Public Works, now manages 26 USTs at 15 locations.
Regulations requiring periodic testing of secondary containment systems on all USTs became effective January 1, 2003. At that time, all USTs installed prior to January 1, 2001 were required to have been tested to ensure that the secondary containment systems were uncompromised and did not leak. Additionally, secondary containment systems were required to be tested every three years thereafter.
In April 2003, City staff devised a plan to test the secondary containment systems of the City's USTs. Some USTs were tested and most of those failed. It was later confirmed that the majority of the City's USTs were not in compliance. There is one Notice of Violation in file, dated October 2003, regarding failure to test the secondary containment system at a specific site (4320 Olympic Plaza). No evidence is available that indicates any effort to address this Notice of Violation, nor any other UST compliance issue, until mid-2006. At that time, efforts...
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