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HomeMy WebLinkAbout09.a. Agreement with Blue Sky Environmental, Inc. for testing of Multiple Hearth Furnaces (MHF) No. 1 for compliance with Title V Air Permit requirementsCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS q.a. POSITION PAPER Board Meeting Date: February 7, 2013 Subject: AUTHORIZE THE GENERAL MANAGER TO APPROVE THE TECHNICAL CONSULTING SERVICES AGREEMENT WITH BLUE SKY ENVIRONMENTAL, INC., FOR MULTIPLE HEARTH FURNACE SOURCE TESTING Submitted By: Initiating Dept. /Div.: Randy Schmidt, Senior Engineer Plant Operations / Operations REVIEWED AND RECOMMENDED FOR BOARD ACTION: R. Schmidt, Senior Engineer A. Weer, Provisional Plant Operations Division Manager D. Craig, Interim Director of Plant Operations C. Swanson Provisional General 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 approve a technical consulting services agreement not to exceed $140,000 with Blue Sky Environmental, Inc., for the testing of Multiple Hearth Furnace (MHF) No. 1 for the following: 1. Compliance with Title V Air Permit requirements,- $40,000. 2. Engineering evaluation to verify compliance with Section 129 emission limits - $100,000. FINANCIAL IMPACTS: The total anticipated cost for the source testing is $140,000. ALTERNATIVES /CONSIDERATIONS: The Board could reject the proposed contract. This is not recommended for two reasons. First, the Title V Air Permit requires a source test of MHF No. 1 every 60 months, and failure to do so will result in enforcement action from the Bay Area Air Quality Management District. Second, the source test data from MHF No. 1 is needed to demonstrate that the District can meet current and future standards for sewage sludge incinerators (SSI) under Section 129 of the Clean Air Act Section (CAA). BACKGROUND: The District is required by the Title V Permit to conduct an emission test on MHF No. 1 every 60 months to demonstrate Title V compliance. Also, testing is required to determine whether the District can comply with the new Section 129 requirements of the CAA. The two tests are being completed simultaneously to minimize costs and reduce the number of furnace shutdowns. The 2013 source test is scheduled to begin early March 2013 and will last for approximately five calendar weeks. C: \Users \danderson\App Data \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Blue Sky Contract 02-07 - 2013.doc POSITION PAPER Board Meeting Date: February 7, 2013 subject AUTHORIZE THE GENERAL MANAGER TO APPROVE THE TECHNICAL CONSULTING SERVICES AGREEMENT WITH BLUE SKY ENVIRONMENTAL, INC., FOR MULTIPLE HEARTH FURNACE SOURCE TESTING Staff requested cost estimates from four different source test companies for this work. The District selected Blue Sky Environmental, Inc., to conduct the 2013 testing of furnace air emissions because of cost and quality of personnel. The scope for the 2013 source test on MHF No. 1 will include: 1. Five -year Title V compliance testing. 2. Engineering evaluation for meeting Section 129 emission limits and setting parametric monitor operating limits. Similar testing on MHF No. 2 was completed in the second quarter of 2012. The proposed source test on MHF No. 1 will complete the engineering evaluation and compliance testing of both furnaces. RECOMMENDED BOARD ACTION: Authorize the General Manager to approve the technical consulting services agreement with Blue Sky Environmental, Inc., in an amount not to exceed $140,000 for assistance with MHF source testing. C:\ Users \dandersonWppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Blue Sky Contract 02-07 - 2013.doc