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HomeMy WebLinkAbout07.a. Amend technical consulting services agreement with The Avogadro Group, LLCCentral Contra Costa Sanitary District BOARD OF DIRECTORS 'a' POSITION PAPER Board Meeting Date: March 15, 2012 subiect: AUTHORIZE THE GENERAL MANAGER TO AMEND THE TECHNICAL CONSULTING SERVICES AGREEMENT WITH THE AVOGADRO GROUP, LLC. FOR ASSISTANCE WITH MULTIPLE HEARTH FURNACE SOURCE TESTING Submitted By Initiating Dept. /Div.: Randy Schmidt, P.E. Plant Operations Department Senior Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION: LitM 14. Sihn1idt B. Than M. Orr Ann E. F rell, James M. Kelly, Deputy General General Manager Manager ISSUE: In accordance with purchasing procedures, Board authorization is required for the General Manager to execute a technical consulting services agreement in an amount greater than $100,000. RECOMMENDATION: Authorize the General Manager to amend the existing $99,995 technical consulting services agreement with The Avogadro Group, LLC, increasing the cost ceiling to an amount not to exceed $225,000, for assistance with multiple hearth furnace source testing. FINANCIAL IMPACTS: The total anticipated cost for assistance with source testing is $225,000. ALTERNATIVES /CONSIDERATIONS: The Board could reject the proposed amendment to the current contract. This is not recommended because the information is necessary to determine if the District can meet current and future multiple hearth furnace standards using landfill gas. BACKGROUND: Last June the District conducted a source test on multiple hearth furnace (MHF) 1 air emissions and learned in September that three constituent's (mercury, dioxins /furans, and hydrogen chloride) may be above the new sewage sludge incinerator (SSI) Clean Air Act (CAA)129 limits while firing landfill gas (LG). Previous SSI 129 testing (done for the EPA rule making in 2009) was done only on natural gas (NG). All parameters from that test met the new SSI 129 standards estimated to be implemented in California by 2015/2016. LG is an important aspect of the Districts fuel inventory because it lowers the overall greenhouse gas (GHG) emissions to below the California Cap- and -Trade compliance threshold; therefore saving the District from buying offsets for GHG generation in the N: \POSUP \Board of Directors \Board - Position Papers\2012 \TP - Avogadro LLC amendment 03- 15- 12.doc Page 1 of 2 POSITION PAPER Board Meeting Date: March 1, 2012 subject. AUTHORIZE THE GENERAL MANAGER TO AMEND THE TECHNICAL CONSULTING SERVICES AGREEMENT WITH THE AVOGADRO GROUP, LLC. FOR ASSISTANCE WITH MULTIPLE HEARTH FURNACE SOURCE TESTING newly adopted California Cap- and -Trade Program. It is important that the District gain a full understanding of the possible permit implications while firing LG. Also, with regards to the SSI 129 regulations, recent indications from the Bay Area Air Quality Management District (BAAQMD) are that the limits for mercury, nitrogen oxides and carbon monoxide may be regulated more stringently than in the federal SSI 129 regulation. More emissions data when firing LG is necessary to determine the potential impact of the SSI 129 regulations and the potentially more stringent BAAQMD interpretation of those regulations. Staff conducted a request for proposal (rfp) process and selected Avogadro Group, LLC to do additional monitoring of furnace air emissions when firing LG. The initial scope targeted the SSI 129 parameters. More recently staff learned of the potential additional requirements from BAAQMD and it was necessary to expand the monitoring scope. The overall scope will now include measurements of the following parameters: oxygen, carbon dioxide, carbon monoxide, nitrogen oxides, sulfur dioxide, total hydrocarbons, non - methane organic carbon, particulate matter (2.5 and 10 microns), hydrogen chloride, dioxins /furans, and trace metals under three conditions. The three conditions are NG and sludge; LG and sludge; and blended LG /NG and sludge. An analysis will also be done on the LG itself looking at metals, total hydrocarbons, dioxins /furans, and hydrogen chloride content. RECOMMENDED BOARD ACTION: Authorize the General Manager to amend the existing technical consulting services agreement with The Avogadro Group, LLC in an amount not to exceed $125,005, for a new contract ceiling of up to $225,000, for assistance with multiple hearth furnace source testing. N: \POSUP \Board of Directors \Board - Position Papers\2012 \TP - Avogadro LLC amendment 03- 15- 12.doc Page 2 of 2