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Home My WebLink About03.a. Review draft Position Paper to authorize the General Manager to execute a technical consulting services agreement with Montrose Air Quality Services, LLC in an amount not to exceed $404,273 for a three-year period (fiscal years 2019-22) to provide Page 1 of 6 Item 3.a. Algi CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: JUNE 10, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TOAUTHORIZE THE GENERAL MANAGER TO EXECUTE ATECHNICAL CONSULTING SERVICES AGREEMENT WITH MONTROSE AIR QUALITY SERVICES, LLC INAN AMOUNT NOT TO EXCEED $404,273 FORA THREE-YEAR PERIOD (FISCAL YEARS 2019-22) TO PROVIDE EMISSIONS TESTING SERVICES SUBMITTED BY: INITIATING DEPARTMENT: RITA CHENG, ASSOCIATE ENGINEER ENG-ERC DIVISION MANAGER RANDYSCHMIDT, SENIOR ENGINEER REVIEWED BY: LORI SCHECTEL, ENVIRONMENTALAND REGULATORY COMPLIANCE DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES ISSUE The Board of Directors'authorization is required for the General Manager to execute a technical consulting services agreement in an amount exceeding $100,000. BACKGROUND Central Contra Costa Sanitary District (Central San) is required to perform annual compliance emissions testing on the multiple hearth furnaces, cogeneration, and auxiliary boilers in accordance with federal, state, and local requirements. As required by the Clean Air Act Section 129 Sewage Sludge I ncinerator Regulations, Title V Major Facility Review Permit, and the Bay Area Air Quality Management District (BAAQMD) Permit-to-Operate, the online multiple hearth furnace is required to complete an annual emissions test to demonstrate compliance with organic compounds, particulate matter, sulfur dioxide, hydrogen chloride, carbon monoxide, dioxins/furans, nitrogen oxides, mercury, cadmium, and lead emission limits. Every five years, the furnaces are required to test for additional metals to comply with the five-year Title V Major Facility Review Permit requirement. Additionally, annual emissions testing is required on cogeneration to demonstrate compliance with carbon monoxide emission limits, and on the auxiliary boilers to demonstrate compliance with organic compounds, nitrogen oxides, and carbon monoxide emission limits in the Title V Major Facility Review Permit and June 10, 2019 REEP Committee Meeting Agenda Packet- Page 3 of 30 Page 2 of 6 BAAQMD Permit-to-Operate. In the past, the Regulatory Compliance section worked with the Purchasing group to develop individual agreements for each emissions testing project. To streamline the contract development process, the Regulatory Compliance section is proposing a multi-year agreement that will cover annual emissions testing and as-needed emissions testing services for the next three fiscal years (FY) 2019-22. A contingency amount of $80,000 has been allocated in the proposed agreement to cover as-needed emissions testing services, which will be used to fund any unanticipated air emissions testing services needed to demonstrate compliance, mitigate a potential compliance issue, and/or prepare for upcoming regulatory requirements. The FY 2021-22 cost includes an additional compliance emissions test required for the anticipated completion of the first new wet scrubber on Furnace Number 2 being installed as part of District Project 7348 Solids Handling Facility Improvements Project. The agreement will be funded by Operations and Maintenance under the Regulatory Compliance section's Technical Services budget (page 98 of the draft FY 2019-20 Budget). I n April 2019, Central San issued a Request for Proposals and obtained one proposal. Montrose Air Quality Services, LLC has been selected to perform the proposed emissions testing services based on several criteria including: qualifications, California emissions testing experience, and pricing (compared to prior year cost from the same vendor). CEQA Staff has concluded that this project is exempt from the California Environmental Quality Act(CEQA) under District CEQA Guidelines Section 15301, since it involves negligible or no expansion of existing public facility. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. ALT ERNAT IVES/CONSIDERAT IONS The alternative is to continue developing individual agreements for each emissions testing project. However, this approach is not recommended as it has proven to be time-consuming and requires additional staff time on contract development. FINANCIAL IMPACTS The total estimated cost for the agreement is $404,273, over a three-year period (FY 2019-22), which includes $80,000 for as-needed emissions testing services. The fiscal year breakdown of the agreement cost is listed below: FY2019-20 Emissions Testing: $86,926 FY 2020-21 Emissions Testing: $86,926 FY2021-22 Emissions Testing: $150,421 FY 2019-22 Contingency Testing: $80,000 FY 2019-22 TOTAL: $404,273 COMMITTEE RECOMMENDATION The Real Estate, Environmental and Planning Committee reviewed this subject at its meeting on June 10, 2019 and recommended June 10, 2019 REEP Committee Meeting Agenda Packet- Page 4 of 30 Page 3 of 6 RECOMMENDED BOARD ACTION Authorize the General Manager to execute a technical consulting services agreement with Montrose Air Quality Services, LLC in an amount not to exceed $404,273 for a three-year period (FY 2019-22)to provide emissions testing services. Strategic Plan Tie-In GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations, Strategy 3- Comply with all federal, state, and local regulations related to District administration ATTACHMENTS: 1. Presentation June 10, 2019 REEP Committee Meeting Agenda Packet- Page 5 of 30 Page 4 of 6 d� �+ FY 2019-22 EMISSIONS TESTING SERVICES AGREEMENT Real Estate, Environmental and Planning Committee June 10,2019 Meeting Presented by: Randy Schmidt, PE Regulatory Compliance Senior Engineer Rita Cheng, PE Regulatory Compliance Associate Engineer REGULATORY REQUIREMENTS FOR MULTIPLE HEARTH FURNACES Air District (BAAQMD) and Environmental Protection Agency require annual and five-year emissions testing on the furnaces: • Clean Air Act Section 129 Sewage Sludge Incinerator Regulations • Annual requirement—carbon monoxide, nitrogen oxides, sulfur dioxide, hydrogen chloride, dioxins/furans, mercury, cadmium, lead, and particulate matter • Title V Major Facility Review Permit • Annual requirement—organic compounds, sulfur dioxide • Five-year requirement—additional metals r!2 CENTRALSAN 1 June 10, 2019 REEP Committee Meeting Agenda Packet- Page 6 of 30 Page 5 of 6 REGULATORY REQUIREMENTS FOR TREATMENT PLANT EMISSIONS TESTING BAAQMD requires annual emissions testing to demonstrate compliance: Cogeneration — carbon monoxide Auxiliary Boilers — carbon monoxide, nitrogen oxides, and organic compounds E 3 STREAMLINING CONTRACT DEVELOPMENT In the past, Regulatory worked with Purchasing to develop individual agreements for each emissions testing project. Moving forward, Regulatory is proposing multi- year agreements to streamline contract development. CENTRALSAN z June 10, 2019 REEP Committee Meeting Agenda Packet- Page 7 of 30 Page 6 of 6 PROPOSED EMISSIONS TESTING AGREEMENT • April 2019 — Issued Request for Proposals • Selected Montrose Air Quality Services, LLC based on qualifications, CA testing experience, and prior experience with Central San • Total estimated cost: BreakdownFiscal Year Cost FY 2019-20 Emissions Testing $86,926 FY 2020-21 Emissions Testing $86,926 FY 2021-22 Emissions Testing $150,421* FY 2019-22 Contingency Testing $80,000 FY 2019-22 TOTAL $404,273 *Includes an additional furnace emissions test for the anticipated new scrubber to be installed as part of DP 7348 Solids Project r s CENTRALSAN RECOMMENDATION Authorize the General Manager to execute a technical consulting services agreement with Montrose Air Quality Services, LLC in an amount not to exceed $404,273 for FY 2019-22 to provide emissions testing services. CENTRALSAN 3 June 10, 2019 REEP Committee Meeting Agenda Packet- Page 8 of 30