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HomeMy WebLinkAbout06.h. Authorize the General Manager to execute a technical consulting services agreement in the amount not to exceed $480,000 with the team of Blue Sky Environmental, Inc./Gammie Air Monitoring, LLC for air emissions testing of the Wet Scrubber Pilot Pla Central San 6ohm BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 6, 2017 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A TECHNICAL CONSULTING SERVICES AGREEMENT WITH BLUE SKY ENVIRONMENTAL, INC./GAMMIE AIR MONITORING, LLC. FOR AIR EMISSIONS TESTING OF THE WET SCRUBBER PILOT PLANT SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT 7348 Submitted By: Initiating Dept.miv.' Rita Cheng —Associate Engineer Engineering & Technical Services/ g g Environmental & Regulatory Compliance Division REVIEWED AND RECOMMENDED FOR BOARD ACTION R. Schmidt—Senior Engineer L. Schectel— Environmental & Regulatory Compliance Division Manager E. Lopez — Capital Projects Division Manager Roger S.Bailey JM. Petit — Director of Engineering &Technical Services General Manager ISSUE: Board-of Directors' (Board) authorization is required for the General Manager to enter into a technical consulting services agreement exceeding $100,000. BACKGROUND: At the December 1, 2016 Board meeting, staff received Board approval to initiate the design of the Solids Handling Facilities Improvements Project, District Project 7348 (Project). At the following Board meeting on December 15, 2018, the Board adapted Resolution No. 2018-047, which authorized the execution of several contracts to implement the Wet Scrubber Pilot Plant (Pilot) supporting the Project. As mentioned at the December 15, 2016 Board meeting, staff indicated that they were planning to solicit multiple proposals for emissions testing services needed to support the Project objectives and Pilot and present it to the Board for approval. Central San is preparing for the replacement of the wet scrubbers for treatment of incinerator exhaust. The design will incorporate new air pollution control technology to meet current and future regulations and reduce process energy requirements. The objectives of the Pilot are to validate the technology, ensure compliance with the regulatory requirements for Central San's incinerators, establish design criteria, and assess impacts on final effluent quality. The proposed air emissions testing services agreement is essential to the Pilot for staff to meet the fallowing objectives: 1. Measure air pollutant concentrations during the Pilot to calculate removal efficiencies of the air pollution control technology. Page 1 of 3 POSITION PAPER Board Meeting Date.. Ap-ril 5, 2017 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A TECHNICAL CONSULTING SERVICES AGREEMENT WITH BLUE SKY ENVIRONMENTAL, INC.iGAMMIE AIR MONITORING, LLC. FOR AIR -EMISSIONS TESTING OF THE WET SCRUBBER PILOT PLANT SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT 7343 2. Determine the incinerators' ability to comply with existing clean Air Act, Section 120 emissions limits. 3. confirm the feasibility of treating incinerator exhaust emissions while bypassing the Dry Cyclone and the Waste Heat Boiler. 4. Determine the ability of the new scrubber technology to comply with the proposed Bay Area Air Quality Management District draft Air Toxics Regulation 1, Rule 18: Reduction of Risk from Air Toxic Emissions at Existing Facilities, which is expected to be adopted in May 2017. 5. Establish design criteria for a full-scale wet scrubber system that will be used by Central San's consultant during final design and confirm the feasibility of using the wet scrubber technology with the existing incinerators. 0. comply with the proposed conditions in the Bay Area Air Quality Management District's Authority-to-construct permit for the Pilot work. Staff issued a formal Request for Proposals to solicit proposals from qualified air testing firms to receive competitive pricing. Two (2) proposals were received and evaluated based on pricing, availability, and qualifications. Staff is recommending the partnership of Blue Sky Environmental, Inc./Gammie Air Monitoring, LLC. Pilot testing is scheduled from June to August 2017. Results from the Pilot testing will be used to finalize the Project predesign, expected by October 2017. ALTERNATIVESICONSIDERATiONS: Staff worked with the Pilot vendor and Project consultant to determine the minimum required testing to achieve the appropriate objectives. There are no reasonable alternatives as the Pilot is in the process of being constructed, and staff does not have the equipment or qualifications to conduct the emissions testing in-house. The complex proposed emissions testing scope involves continuous sampling for the duration of the pilot and collection of approximately 300 analytical samples at different operating conditions. Thus, the proposed testing scope requires the services of air testing professionals with specialized knowledge and experience to conduct the required Environmental Protection Agency and California Air Resources Board approved sampling methods. FINANCIAL IMPACTS: The testing agreement is anticipated to reach $430,000. The budget proposed at the December 15, 2010 Board meeting (Attachment 1) for Pilot Testing for the Project was $1,000,000, which includes the wet scrubber rental, Page 2of3 POSITION PAPER Board Meeting Date: Ap ri 161 2617 subject: AUTHORIZE THE GENERAL MANAGER TG EXECUTE A TECHNICAL CONSULTING SERVICES AGREEMENT WITH BLUE SKY ENVIRONMENTAL, INC.IGAMMIE AIR MONITORING, LLC. FOR AIR EMISSIONS TESTING OF THE INET SCRUBBER PILOT PLANT SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT-7348 installation cost, staff time, and cost for the air testing. Staff had anticipated that the cast for air testing would be $566,666, when the $1,666,666 budget was established. COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed this subject at the meeting on March 17, 2617, and recommended approval of the agreement. RECOMMENDED BOARD ACTION: Authorise the General Manager to execute a technical consulting services agreement with the team of Blue Sky Environmental, Inc./Gammie Air Monitoring, LLC. for air emissions testing of the Wet Scrubber Pilot Plant in an amount not to exceed $486,666. Page 3 of 3