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SR-504-000-01 EPWM:Rb:rb/adm/stfr/lfg2.doc Council Meeting: November 12, 2002, Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Contract with ICF Consulting to Provide Operation, Maintenance, and Monitoring Services for the Landfill Gas Extraction System at the City Yards INTRODUCTION This report recommends that the City Council authorize the City Manager to negotiate and execute a two year contract with ICF Consulting in an amount not to exceed $429,930, with a third year option not to exceed $210,340, to operate, maintain, and monitor the landfill gas extraction system currently operating at the City?s Municipal Yard and to approve $96,040 in contingency funds for the contract. In addition, this report recommends that the City Council authorization include the incorporation into this contract of an existing purchase order for the amount of $49,560 with ICF consulting for related landfill gas extraction system services. BACKGROUND Portions of the City Yard and Stewart Street Park lie over an inactive landfill. In response to the potential hazard posed by gases generated by the decomposition of the landfill, the City has installed and is operating a landfill gas extraction and treatment system to collect and treat landfill gases generated from the former landfill. The 1 extraction system has been operating on a continuous basis since July 1998. The system is permitted by the South Coast Air Quality Management District (SCAQMD) and the Los Angeles County Department of Health Services (LACDHS). DISCUSSION Permit and operational conditions for the extraction system require periodic monitoring and adjustment to maintain maximum gas extraction, treatment effectiveness, and regulatory compliance. Due to the complexity and specialized nature of the engineered system, it is necessary that a consultant experienced in landfill gas projects provide these services. A request for proposals was distributed to eight qualified and experienced landfill consultants. Three proposals were submitted and reviewed by a committee comprised of representatives from the Environmental Programs, Engineering, Maintenance Management, and Open Space Management Divisions. Based upon the qualifications, experience and cost effectiveness of their proposal, staff recommends that ICF Consulting be retained to provide landfill gas extraction services. Due to the extended period during which landfills typically generate gas, it is anticipated that the gas extraction system will be in operation at the site for an additional 10 to 12 years. Although the system will remain in consistent operation throughout this entire period, several factors restrict our ability to develop a comprehensive and cost effective scope of services for a period beyond three years. Specifically, gas conditions in the landfill are dynamic and vary over time as the extraction system effectively mitigates 2 different sections of site, thereby imposing uncertain future regulatory and monitoring standards. Additionally, possible future renovation of the City Yards may result in significant infrastructure changes that would require reconfiguration of the existing extraction and treatment systems. In light of these conditions, staff recommends that the current contract be executed for a period of two years with an option for a third year. Staff expects to return to the City Council in the future with recommendations for the continued operation of the system. BUDGET/FINANCIAL IMPACT This is a multi-year contract. The total contract amount includes funding for Fiscal Years 2002/03, 2003/04, and optionally for Fiscal Year 2004/05 totaling $786,310. Funds were previously approved by City Council and are available in the amount of $560,000 in CIP account #C01079801.589000 and $226,310 in CIP account #C01079802.589000. $49,560 of these funds has been committed to a purchase order with ICF consulting to provide services for the landfill gas extraction system in the transition period between the previous contract and the recommended contract. RECOMMENDATION Staff recommends that the City Council authorize the City Manager to negotiate and execute a two year contract with ICF Consulting in an amount not to exceed $429,930, with a third year option not to exceed $210,340, to operate, maintain, and monitor the landfill gas extraction system currently operating at the City?s Municipal Yard and to approve $96,040 in contingency funds for the contract. Staff also recommends that the 3 Purchase Order amount of $49,560 be incorporated into this contract for the completion of services associated with this purchase order. Prepared by: Craig Perkins, Director of Environmental and Public Works Brian J. Johnson, Manager of Environmental Programs Division Richard H. Berman, Senior Environmental Analyst 4