| Item Title: | Approval of Proposal from EquoLogic for Consulting Services for Underground Storage Tank (UST) Reimbursement Services | | Agenda Title: | Approval of Proposal from EquoLogic for Consulting Services for Underground Storage Tank (UST) Reimbursement Services | | Background: | During construction of elevators at Santa Barbara High School in 1996, the District encountered two former heating oil tanks between the Gymnasium and Field House. The tanks were discovered during construction activities associated with the elevators. Federal and State laws require every owner and operator of petroleum underground storage tanks to maintain financial responsibility to pay for any damages arising out of owing and operating their tanks. It is estimated the District spent over $500,000 from 1996 to the present for the removal, closure and cleanup requirements mandated by law.
In 1989, the California legislature established the California Underground Storage Tank Cleanup Fund (“ Fund”) with the passage of the Barry Keene Underground Storage Tank Cleanup Trust Fund Act of 1989, §25299.10 et seq., Health & Safety Code. The Fund has two purposes: 1) establish a system of ensuring the financial responsibility of owners and operators of petroleum USTs for cleanups of leaks and releases, and (2) fund the reimbursement of eligible costs for cleaning up leaks and releases. The State Legislature passed AB 2729 in 2009, which created a “Special School District Account” (SDA) in order to prioritize schools ahead of all other claimants. New legislation will allow the district to recover funds which we were previously not eligible to receive, specifically; AB120 requires the fund to waive permit requirements as a condition of eligibility for tanks that did not store fuel prior to January 1, 2003.
EquoLogic will complete of the reimbursement process on a Contingency Compensation basis. These terms allow the District to avoid any expenditure until and unless reimbursement is received directly from the UST Cleanup Fund. If the District does not receive any reimbursement funding, EquoLogic will waive all fees for the services provided. If reimbursement is received, EquoLogic is to be paid a flat fee of 10% of all funds the District receives from the cleanup Fund. During the past 2 years, this company has obtained reimbursement funding for seven other school districts in the State.
Legal Counsel has reviewed the contract and approved it as to form for board approval. | | Recommendation: | The Board Approval the Proposal from EquoLogic for Consulting Services for Underground Storage Tanks (UST) Reimbursement Funding Associated with UST Removal at Santa Barbara High School. | | Resource Person: | David J. Hetyonk, Director of Facilities & Operations | | Fiscal Impact: | Possible reimbursement of up to $300,000 for expenses related to corrective action required and accomplished by the district. Actual removal costs are not eligible. | | Funding Source: | 10% of recovered funds, original expenditures were from Measure V 2000 |
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