CITY OF CHARLOTTESVILLE, VIRGINIA
                  CITY COUNCIL AGENDA



  Agenda Date:        November 7, 2022

  Action Required:    Approve resolution

  Presenter:          Michael Goddard, Facilities Development Manager

  Staff Contacts:     Harold Young
                      Scott Hendrix
                      Chris Cullinan, Director of Finance
                      Kristel Riddervold, Environmental Sustainability Manager

  Title:              Appropriating $700,000 from the CIP Contingency to Avon Fuel Station
                      Replacement Project (2nd reading)


Background
Per the Petroleum Underground Storage Tank Financial Responsibility Requirements Regulation,
specific annual insurance coverage is required. The City has faced increased challenges and costs
associated with obtaining required insurance coverage for the Avon Street Fueling Station. The
adopted FY 2019 Capital Improvement Programs (CIP) included funding for the Avon Fuel Station
(P-00980) was funded at $520,000. An additional $271,754.74 was transferred to the project in 2021
from surpluses in other project budgets. The project has been put out for bid three separate times
and each time the bids received totaled more than the available project budget. Additional funds are
needed to complete the project.

Discussion
The project for the Avon Fuel Station involves full replacement of the underground fuel storage
system with an aboveground fuel storage system that provides for reduced compliance risk. Design
work is complete. Plans were submitted to Albemarle County Department of Community
Development and are undergoing site plan review/approval. This project is planned to be bid out for
construction in the winter with construction planned for Spring/Summer 2022. We have completed
three rounds of bidding for the Avon Fuel Station project and based on those bid prices are confident
that the project, as designed; will require approximately $1.45 million in funding to replace the tanks
and install a security gate to protect the fuel site. CITY OF CHARLOTTESVILLE, VIRGINIA CITY
COUNCIL AGENDA It is our recommendation that this funding deficit be addressed by a transfer of
CIP Contingency funds in the amount of $700,000 to the Avon Fuel Station project. This will fund
both the shortfall from the base scope of the project, as well as the security access gate. It is
expected that the remaining required funds would be recovered through an insurance settlement
associated with the damage recently incurred by the station. It is also notable that the existing fuel
station was recently damaged and is not functional. The City is currently using a fuel card system as
a temporary measure, but this program is more costly to the City than maintaining our own fuel
station. Project cost repayment, when compared to the fuel card program is approximately 7 years
per analysis performed by the City’s Fleet Division. This estimate does not take into account the cost
of removing the existing tanks, which will be required regardless of whether the fuel station upgrades
proceed.

Alignment with City Council's Vision and Strategic Plan
This proposal supports the CityCouncil’s “Green City” vision. It contributes to Goal 3 and 5 of the
Strategic Plan, a beautiful and sustainable natural and built environment and a well-managed and
responsive organization, and objectives 3.2 provide reliable and high quality infrastructure, 3.4 be
responsible stewards of natural resources, 5.1 integrate effective business practices and strong fiscal
policies.

Community Engagement
N/A

Budgetary Impact
Transfer of $700,000.00 from CIP Contingency funds

Recommendation
Staff recommends approval of this recommendation.

Alternatives
City Council could decline this recommendation. There will be insufficient funds to address the Avon
Street Fuel Station replacement project and the insurance requirements may not be met.

Attachments
1.   RES Funding for Avon Fuel Station