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SR 06-26-2018 3D City Council Report City Council Meeting: June 26, 2018 Agenda Item: 3.D 1 of 4 To: Mayor and City Council From: Susan Cline, Director, Public Works, Facilities Maintenance Subject: Professional Service Agreement to Provide Operation, Maintenance, and Monitoring Services for the Landfill Gas Extraction System at the City's Municipal Yard Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute an agreement with ES Engineering Services, to operate, maintain, and monitor the landfill gas extraction system currently operating at the City’s Municipal Yard for a total amount not to exceed $531,045 (including a 10% contingency) over a three-year period, with future year funding contingent on Council budget approval. Executive Summary The City has operated a landfill gas extraction and treatment system since 1998 to collect and treat landfill gases generated from the former landfill located under portions of the City’s Municipal Yard (City Yards) and Gandara Park. Landfill gas monitoring is performed to determine if the control system is adequately preventing potentially hazardous gases from permeating through the landfill cover. While routine maintenance and monitoring have been consistently performed, further repairs are needed to help the system maintain proper operation. Additionally, the previous contract to perform such monitoring and maintenance expired when staff did not exercise the agreed upon renewal option prior to the termination date. To address the needed repairs, and reestablish the service contract, staff recommends executing a new agreement with ES Engineering Services for an amount not to exceed $531,045 (including a 10% contingency) over a three-year period. Discussion Portions of the City Yards (2500 Michigan Avenue) and Gandara Park (1819 Stewart Street) lie over an inactive landfill. The natural decomposition of the materials in the 2 of 4 landfill generates gases, including methane, which must be properly managed. In response, the City has installed and operated a landfill gas extraction system to collect and treat the landfill gases since July 1998. The main purpose of landfill gas collection is to control subsurface migration and surface emission of landfill gas in compliance with federal and state regulations to protect the public and environment. The system is permitted by the South Coast Air Quality Management District and the Los Angeles County Department of Health Services. Permit and operational conditions for the extraction system require periodic monitoring and adjustment to maintain maximum gas extraction, treatment effectiveness, and regulatory compliance. In addition, the City is required to submit monitoring reports to both agencies on a quarterly basis. Due to the complexity and specialized nature of the engineered system, it is necessary that these services be provided by a consultant experienced in landfill gas projects. During the past year, investigations and repairs to the system have been undertaken. While improvements have been made, the First Quarter 2018 Compliance Report, dated April 17, 2018, yielded one probe reading above the established regulatory limit of five percent by volume in air. ES Engineering Services has provided a comprehensive list of recommended repairs to ensure compliance moving forward. Staff expects to complete the immediate, large-scale repairs during the first year of the new agreement and anticipates a reduction in the need of such repairs for the subsequent two years of the agreement. The additional repairs, as well as the need to reestablish the contract, necessitate a reauthorization by City Council. As all previous contract authority expired with the lapse of the contract, staff recommends executing a new agreement with ES Engineering Services for all services covered in CT-10340 and as-needed repairs. The estimated expense for each category and year of the contract is provided in the table below. Contract Year Maintenance and Monitoring As-Needed Repairs Total 3 of 4 Year 1 $ 131,926.00 $ 53,242.00 $ 185,168.00 Year 2 $ 135,883.00 $ 34,500.00 $ 170,383.00 Year 3 $ 139,959.00 $ 35,535.00 $ 175,494.00 Total $ 407,768.00 $ 123,277.00 $ 531,045.00 Vendor Selection On March 26, 2016, the City issued a Request for Proposals (RFP) to provide operation, maintenance, and monitoring services for the landfill gas extraction system at the City Yards in accordance with City specifications. The RFP was posted on the City’s on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. Four firms (Biogas Engineering, ES Engineering Services, ICF International, SCS Field Services) responded. Responses to the RFP were reviewed by staff from the Public Works Department. Evaluation was based on the criteria in SMMC 2.24.073, including previous experience, quality of product, and ability to deliver and comply with all City criteria. ES Engineering was recommended as the best qualified firm. The firm had the most qualified and experienced project manager who ranked significantly higher in technical competency and references than the other proposers. On July 26, 2016, Council authorized an agreement, CT-10340, with ES Engineering Services for operation, maintenance, and monitoring services for the landfill gas extraction system at the City Yards in a total amount not to exceed $131,926 for one year, with four additional one-year renewal options for a total amount not to exceed $671,623 (Attachment A). Agreement CT-10340 expired on August 25, 2017, because staff did not exercise the first renewal option prior to the termination date. Although the contract has expired, ES Engineering Services continues to operate, maintain and monitor the landfill gas extraction system under the same agreement terms and conditions. To date, the City has expended $203,615 of the original contract authority authorized by Council. 4 of 4 Financial Impacts and Budget Actions The agreement to be awarded to ES Engineering Services is for an amount not to exceed $531,045. Funds of $185,168 are available in the FY 2018-19 budget in the Public Works Department. The agreement will be charged to account 01500020.550010/014523.555010. Future year funding is contingent on Council budget approval. Prepared By: Kyla Johnson, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. July 26, 2016 Staff Report B. ES Engineering Oaks Initiative Form City Council Report City Council Meeting: July 26, 2016 Agenda Item: 3.A 1 of 4 To: Mayor and City Council From: Susan Cline, Director, Public Works, Facilities Maintenance Subject: Professional Service Agreement to Provide Operation, Maintenance, and Monitoring Services for the Landfill Gas Extraction System at the City Yards Recommended Action Staff recommends that the City Council: 1. Award RFP# 81 to ES Engineering Services, a California-based company, to operate, maintain, and monitor the landfill gas extraction system currently operating at the City's Municipal Yard; 2. Authorize the City Manager to negotiate and execute an agreement with ES Engineering Services, in an amount not to exceed $131,926 for one year, with four additional one-year renewal option(s) for a total amount not to exceed $671,623 over a five-year period, with future year funding contingent on Council budget approval. Executive Summary Since 1998, the City has been operating a landfill gas extraction and treatment system to collect and treat landfill gases generated from the former landfill located under portions of the City’s Municipal Yard (City Yards) and Gandara Park. Landfill gas monitoring is performed to determine if the control system is adequately preventing potentially hazardous gases from permeating through the landfill cover. The current contract with ICF International (#9359 CCS) is due to expire on August 26, 2016. In June 2016, the City conducted a competitive selection process for the operation, maintenance, and monitoring services for the landfill gas extraction system at the City Yards. After reviewing the four bids submitted, staff recommends ES Engineering Services as the best firm to provide these services in an amount not to exceed $671,623 over a five-year period. Background Portions of the City Yards (2500 Michigan Avenue) and Gandara Park (1819 Stewart Street) lie over an inactive landfill. In response to the potential hazard of elevated concentration of toxic air contaminants, generated by the decomposition of the materials in the landfill, the City has installed and operated a landfill gas extraction system to collect and treat the landfill gases since July 1998. The main purpose of landfill gas 2 of 4 collection is to control subsurface migration and surface emission of landfill gas in compliance with the federal and state regulations set to protect the public and environment. The composition of landfill gas could pose such hazardous effects as combustion, asphyxiation, carcinogens, smog formation, groundwater contamination and vegetation damage. A total of fifty-one gas monitoring probes have been installed throughout the landfill to monitor subsurface landfill gas concentrations which indicate whether high levels of landfill gas are escaping from the landfill surface or whether the landfill gas collection and control system is effectively working to minimize emissions. Field measurement for landfill gas composition is commonly done using a GEM2000, a portable electronic instrument, which measures the percentage of methane, carbon dioxide, oxygen and nitrogen present. When required, or necessary for verification, field samples are sent to analytical laboratories for testing using various Environmental Protection Agency (EPA) methods. The system is permitted by the South Coast Air Quality Management District and the Los Angeles County Department of Health Services. Permit and operational conditions for the extraction system require periodic monitoring and adjustment to maintain maximum gas extraction, treatment effectiveness, and regulatory compliance. In addition, the City is required to submit monitoring reports to both agencies on a quarterly basis. Due to the complexity and specialized nature of the engineered system, it is necessary that these services be provided by a consultant experienced in landfill gas projects. Although the system must remain in constant operation, several factors restrict the City's ability to develop a comprehensive and cost effective scope of services for a period beyond five years. Landfill gas conditions are dynamic and vary over time as the extraction system effectively mitigates different sections of the site. Additionally, the City Yards Modernization Plan may result in significant infrastructure changes that could require a reconfiguration of the existing extraction and treatment systems. 3 of 4 Discussion Through multiple competitive selection processes, the City has been using ICF International (formerly ICF Consulting Services) to provide operation, maintenance, and monitoring services for the landfill gas extraction system at the City Yards since 2002 . On April 26, 2011, Council authorized a contract with ICF, per Attachment A. The current agreement, contract #9359 (CCS), was executed on August 25, 2011 and is set to expire on August 26, 2016. Consultant Selection On March 26, 2016, the City issued a Request for Proposals (RFP) to provide operation, maintenance, and monitoring services for the landfill gas extraction system at the City Yards in accordance with City specifications. The RFP was posted on the City’s on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 45 vendors downloaded the RFP. Four firms (Biogas Engineering, ES Engineering Services, ICF International, SCS Field Services) responded. Responses to the RFP were reviewed by staff from the Public Works Department. Evaluation was based on the criteria in SMMC 2.24.073, including previous experience, quality of product, and ability to deliver and comply with all City criteria. ES Engineering is being recommended as the best qualified firm. The firm had the most qualified and experienced project manager who ranked significantly higher in technical competency and references than the other proposers. The firm has been managing similar landfill gas control projects for various municipalities, including the City of Newport Beach and the Garden Grove Sanitary District, and clients expressed satisfaction over the company’s professionalism and expertise. Financial Impacts and Budget Actions The agreement to be awarded to ES Engineering Services is for an amount not to exceed $671,623 over a five-year period. Funds of $109,938 are available in the FY 2016-17 budget in the Public Work Department. The agreement will be charged to 4 of 4 account 014523.555010. Future year funding is contingent on Council budget approval. Prepared By: Kyla Johnson, Administrative Analyst Approved Forwarded to Council Attachments: A. April 26, 2011 Staff Report B. Written comments REFERENCE: Agreement No. 10701 (CCS)