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Home My WebLink About07. Authorize agreement with Montrose Air Quality Services for emissions testing Page 1 of 4 Item 7. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: JUNE 20, 2019 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A TECHNICAL CONSULTING SERVICES AGREEMENT WITH MONTROSE AIR QUALITY SERVICES, LLC IN AN AMOUNT NOT TO EXCEED $116,926 FORA ONE- YEAR (FISCAL YEAR 2019-20) PERIOD TO PROVIDE EMISSIONS TESTING SERVICES WITH THE ABILITYTO RENEW THE AGREEMENT TO ACCOMMODATE EMISSIONS TESTING SERVICES FOR TWO ADDITIONAL ONE-YEAR TERMS (FISCAL YEARS 2020-21 AND 2021-22) SUBMITTED BY: INITIATING DEPARTMENT: RITA CHENG, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- RANDY SCHMI DT, SENIOR ENGINEER ERC-REGULATORY COMPLIANCE REVIEWED BY: LORI SCHECTEL, ENVIRONMENTALAND REGULATORY COMPLIANCE DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE The Board of Directors' (Board) 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. Although Central San has an on-site laboratory, the Bay Area Air Quality Management District (BAAQMD) does not allow a facility to conduct its own compliance test because of conflict of interest restrictions and requires the use of third parties to perform compliance emissions testing in accordance with standardized federal and state testing methods. This applies not only to public June 20, 2019 Regular Board Meeting Agenda Packet- Page 42 of 120 Page 2 of 4 agencies like Central San, but also to industrial facilities. Additionally, this type of testing requires a set of specialized skills and highly specialized equipment, sampling, and testing. As required by the Clean Air Act Section 129 Sewage Sludge I ncinerator Regulations, Title V Major Facility Review Permit and the 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 the electric power cogeneration to demonstrate compliance with carbon monoxide emission limits and on the auxiliary steam boilers to demonstrate compliance with organic compounds, nitrogen oxides, and carbon monoxide emission limits in the Title V Major Facility Review Permit and BAAQMD Permit-to-Operate. To cover funding of any unanticipated air emissions testing services needed to demonstrate compliance, mitigate a potential compliance issue, and/or prepare for upcoming regulatory requirements, staff recommends adding a contingency amount in the proposed agreement for Fiscal Year(FY) 2019-20 to cover as-needed emissions testing services. The estimated 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 the Solids Handling Facility Improvements, District Project (DP) 7348. Central San is required to complete several emissions tests on an annual basis to comply with all applicable regulatory requirements. In the past, the Regulatory Compliance section worked with Purchasing to individually procure agreements for each emissions testing project. To streamline the contract development process, the Regulatory Compliance section is proposing a one-year agreement for FY 2019-20 with the ability to renew the agreement to cover additional emissions testing services for two additional FY terms (FY 2020-21 and FY 2021-22). I n April 2019, Central San issued a formal Request for Proposals (RFP)on PlanetBids to select a qualified emissions testing firm to provide emissions testing services for up to three fiscal years. While there are several emissions testing firms that perform emissions testing within the local area, Central San has in recent years typically received only two proposals for furnace emissions testing, from Blue Sky Environmental, I nc. (Blue Sky) and Avogadro (acquired by Montrose Air Quality Services, LLC (Montrose) in 2017). A single proposal was received from Montrose for this RF P. I n late 2018, a one-year emissions testing agreement (Agreement 045917)with Blue Sky was terminated for convenience by Central San due to data quality issues, and Montrose was selected to perform the remaining tasks in the agreement for FY 2018-19. For this RFP, staff contacted another potential emissions testing firm and current greenhouse gas verifier, TRC Solutions, Inc. in Concord, CA, who did not submit a proposal for consideration. Staff is also aware of two other testing firms, but to the best of our knowledge, these smaller firms do not have the full capability to perform all the required emissions testing. Even though we only received one proposal, staff recommends selecting Montrose to perform the proposed emissions testing services. Montrose has performed similar testing for Central San in prior years and is qualified for such specialty testing, and the company or its staff currently hold the following certification or accreditations: ■ California Air Resources Board Approval of Independent Contractor Certification; ■ Accredited Air Emission Testing Body issued by American Association for Laboratory Accreditation and Stack Testing Accreditation Council, Inc; and ■ Qualified Source Testing Individual issued by Source Evaluation Society June 20, 2019 Regular Board Meeting Agenda Packet- Page 43 of 120 Page 3 of 4 The proposed emissions testing costs in the Montrose proposal are comparable to prior years'emissions testing costs 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. ALTERNATIVES/CONSIDERATIONS The Board could decide to reject the proposal, but based on the qualifications at this time, additional proposals would likely not be received if the RFP was republished. Therefore, this alternative is not recommended by staff. A second alternative would be to continue developing individual agreements for each emissions testing project. However, this approach is not recommended by staff, 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 contingency for additional emissions testing services ($30,000 for FY 2019-20, $30,000 for FY 2020-21, and $20,000 for FY 2021-22). The fiscal year breakdown of the agreement cost is listed below: Proposed FY 2019-20 Emissions & Contingency Testing: $116,926 Estimated FY 2020-21 Emissions & Contingency Testing: $116,926 Estimated FY 2021-22 Emissions & Contingency Testing: $170,421* FY 2019-22 TOTAL: $404,273 *The cost of the second furnace compliance emissions test needed for the new wet scrubber is included as part of the third year and will be capitalized under DP 7348. The remaining scope items in the agreement will be funded by Operations and Maintenance under the Regulatory Compliance section's Technical Services budget (page 100 of the draft FY 2019-20 Budget). COMMITTEE RECOMMENDATION The Real Estate, Environmental and Planning Committee has reviewed this subject at its meeting on June 10, 2019 and recommended a one-year emissions testing services agreement with Montrose Air Quality Services, LLC for FY 2019-20 in an amount of$116,926 with the ability to renew the agreement to accommodate emissions testing services for two additional one-year terms (FY 2020-21 and FY 2021- 22). 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 $116,926 for a one-year period (FY 2019-20)to provide emissions testing services with the ability to renew the agreement for two additional one-year terms (FY 2020-21 and FY 2021-22). June 20, 2019 Regular Board Meeting Agenda Packet- Page 44 of 120 Page 4 of 4 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 June 20, 2019 Regular Board Meeting Agenda Packet- Page 45 of 120