Town to replace Harbor Fuel System

Staff Report:

The Town applied for a Boating Infrastructure Grant (BIG) in the amount of $142.1K for a project to upgrade the Harbor fuel system totaling $189.5K. The project included three parts: $69.5K for new fuel pumps, $35.2K for new electronic card readers, and $84.8K for increased fuel storage. The grant had not been awarded at the time the FY 2019 budget was finalized. Council included $100K in the FY 2019 budget for the project, expressing uncertainty over the need to increase fuel storage capacity.

The budget assumed $33K in grant coverage based on prior experience with the BIG program. Subsequently, the grant was approved in the amount of $30K with the requirement that the entire project be
completed. In September 2018 the non-ethanol fuel supply line started leaking due to age and corrosion and was placed out of service. Two contractors inspected the supply line and determined that it is not repairable because parts and fittings are no longer available.

We had the diesel and regular gas supply lines inspected for both safety and environmental reasons since they were also buried. The best option is to install new supply lines above ground to help prevent future downtime and loss of revenue.

The Town Council authorized the contract award to Oil Equipment Sales and Service Company, Inc., in the amount of $69,139.31 for replacement of fuel lines and pumps.