City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 12, 2023 FROM: PUBLIC WORKS DEPARTMENT WARDS: ALL
SUBJECT: SECOND AMENDMENT TO PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR ADDITIONAL MONITORING, REPORTING, AND ASSOCIATED OPERATION SERVICES FOR THE CLOSED TEQUESQUITE LANDFILL GAS COLLECTION SYSTEM AND FLARE WITH ECOTEC SOLUTIONS, INC. OF COLTON, CALIFORNIA, IN THE AMOUNT OF $124,090 FOR A REVISED TOTAL CONTRACT AMOUNT OF $532,458.40; SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $124,090 – SUPPLEMENTAL APPROPRIATION ISSUE:
Approve the Second Amendment to a Professional Consultant Services Agreement with ECOTEC Solutions, Inc. of Colton, California for additional monitoring, reporting, and associated operation services for the closed Tequesquite Landfill gas collection system and flare in the amount of $124,090.00 for a revised total contract amount of $532,458.40, and approval of a supplemental appropriation.
RECOMMENDATIONS:
That the City Council:
Approve a Second Amendment to a Professional Consultant Services Agreement with ECOTEC Solutions, Inc. of Colton, California for additional monitoring, reporting, and associated operation services for the closed Tequesquite Landfill gas collection system and flare in the amount of $124,090.00 for a revised total contract amount of $532,458.40; Authorize the City Manager, or designee, to execute the Second Amendment to the Professional Consultant Services Agreement and any additional documents necessary for the Agreement, including amendments and extensions and making minor and non-substantive changes; and With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation in the amount of $124,090.00 from Refuse Fund available Working Capital to the Refuse Fund, Disposal Professional Services Regulatory Compliance account to fund the services performed by ECOTEC Solutions, Inc.
BACKGROUND:
The closed Tequesquite Landfill (Landfill) is a 120-acre Class III landfill owned and operated by the City of Riverside. The Landfill was active from 1947 to 1985 and is maintained in its closed state through a site-specific Closure/Post-closure Maintenance Plan (Maintenance Plan) approved by the California Department of Resources Recycling and Recovery, the Riverside County Department of Environmental Health and the California Regional Water Quality Control Board. The Maintenance Plan describes post-closure activities necessary to comply with the requirements of Title 14 of the California Code of Regulations, Title 23 of the California Code of Regulations, and Title 40 of the Code of Federal Regulations, each administered separately by the aforementioned agencies having jurisdiction.
The Maintenance Plan requires the City to maintain the Landfill as a closed site and complete the following ongoing activities:
Landfill gas collection and migration control which includes collection, destruction, monitoring and reporting of methane gas produced by the landfill Groundwater quality monitoring at, and within, the vicinity of the landfill On May 13, 2021, staff issued Request for Proposals (RFP) No. 2097 for a qualified firm to provide regulatory required operations, maintenance, monitoring, and reporting services for the Landfill, the associated gas collection system, and flare station.
On November 2, 2021, the City Council awarded RFP No. 2097 to ECOTEC Solutions, Inc. of Colton, California (ECOTEC). ECOTEC was selected as the most qualified respondent due to a demonstrated ability to perform the items required in the scope of work, project approach, and cost of services. The two-year agreement with ECOTEC was approved at an annual cost of $87,842.80 per fiscal year through June 30, 2024, for a total contract amount of $263,528.40.
On July 26, 2022, Public Works Maintenance staff inspected the flare facility at the closed Tequesquite Landfill. Staff identified an issue with the flare gas compressor and determined it needed to be rebuilt.
On August 1, 2022, staff engaged the compressor manufacturer and repair company, McKenna, to initiate a compressor rebuild.
The failed compressor is a necessary and critical component of the flare system. The flare is used to mitigate gas generated from the Landfill. As a result of the flare's inability to function optimally, staff requested that the South Coast Air Quality Management District (SCAQMD) grant an interim variance from the applicable rules and regulations, which would allow continued use of the flare and fulfillment of the testing requirements that are usually associated with it.
On October 4, 2022, SCAQMD granted the City the requested variance through June 30, 2024. As a condition of their approval, SCAQMD required the City to immediately begin a schedule of heightened and more stringent sampling and monitoring for the duration of the compressor outage, along with follow-up sampling to confirm a successful repair. ECOTEC Solutions Inc. immediately started performing accelerated monitoring under their existing agreement.
On October 5, 2022, staff received a quote requested from ECOTEC to continue the SCAQMD-required variance monitoring for the duration of the variance period, along with a return to their normal contract obligations after that in the amount of $144,840 for a total contract amount of $408,368.40. An amendment to the existing agreement is requested to cover the additional costs.
On June 21, 2023, staff received the rebuilt compressor and on June 22, 2023 attempted to install the unit. As delivered, the compressor was rebuilt incorrectly, with the housing assembled 180 degrees out and missing oil lubrication points. Staff returned the compressor to McKenna to have these issues resolved.
On June 26, 2023 staff worked with SCAQMD Counsel on a Modification of an Existing Variance to extend the July 2, 2023 deadline to October 6, 2023. SCAQMD Counsel agreed to process the extension as a stipulation to the order. The conditions of the stipulation included continued accelerated air quality monitoring.
On July 2, 2023 as part of the continued variance and stipulation, ECOTEC continued performing accelerated air quality monitoring in addition to their normal contract obligations. The additional accelerated monitoring quote was for $124,090, including weekly reports as required by SCAQMD.
On July 31, 2023 the compressor was delivered by McKenna and installed by staff. The source test of the flare was conducted on August 29, 2023. Accelerated air quality monitoring will continue until the source test report is complete and accepted by SCAQMD. Upon acceptance of the source test report by SCAQMD, the landfill will be in compliance and has met the obligations of the variance.
DISCUSSION:
On June 2, 2023, staff received a quote of $124,090.00 from ECOTEC to continue performing additional monitoring, sampling, testing, and necessary reporting, for a total contract amount of $532,458.40 during the variance period through June 30, 2024.
Purchasing Resolution 23914 Section 1104 “Change Orders” states that “Modifications to a Purchase Order shall be made only by Change Order. Subject to availability of funds, Change Orders may be utilized for purposes of… (2) modifying unit pricing, [or] … (5) modifying contract completion time or the term of a Contract.” This section goes on to state that Awarding Entity approval is required when a modification is made that adds an amount greater than 10% of the original contract price for Contracts and/or Purchase Orders or when it exceeds an amount previously approved by the Awarded Entity.
Long-term Strategy
Staff recommends a full replacement of the compressor units in the future with quieter, reduced flowrate units sufficient to manage current and future gas production. The anticipated cost is $1,000,000. New units would extend the useful life of the gas collection system, significantly reduce the potential for future variances, non-compliance, or related heightened monitoring, and reduce noise levels for adjacent residents. Staff are working to identify an appropriate funding source for replacing the compressor units.
The Purchasing Manager concurs that the recommended action to approve the amendment is in compliance with Purchasing Resolution 23914.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 5 – High Performing Government and Strategic Priority 6 – Infrastructure, Mobility, and Connectivity and Goal 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This item aligns with each of the Cross-Cutting Threads as follows:
Community Trust – Staff acted quickly to address the malfunctioning flare unit and secured a timely variance from SCAQMD to ensure any deficiencies are monitored and reported.
Equity – This amended agreement supports efforts to protect public health and the environment by ensuring the closed Tequesquite Landfill is compliant and aligns with local laws and regulations along with disclosure of any periods of non-compliance.
Fiscal Responsibility – The amended agreement with ECOTEC represents the most economical means to meet SCAQMD’s requirements for additional monitoring and sampling under the approved variance.
Innovation – This agreement exemplifies a collaborative partnership between the City, SCAQMD, and ECOTEC Solutions, Inc., to support regularity compliance, monitoring, and reporting services for the closed Tequesquite Landfill.
Sustainability & Resiliency – This agreement supports continual monitoring and evaluation of the closed Tequesquite Landfill to meet current and future laws and regulations and efforts towards long term solutions to avoid future service interruption.
FISCAL IMPACT:
The total fiscal impact of this action is $124,090. Upon Council approval, a supplemental appropriation will be recorded in the Refuse Fund, Disposal Prof Svcs Regulatory Comp account number 4130200-421043. Sufficient funding is available in the Refuse Fund Available Working Capital (fund reserves).
Prepared by: Christina Navaratnam, Senior Administrative Analyst Approved by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Second Amendment to Professional Consultant Services Agreement ECOTEC Solutions, Inc., First Amendment ● Page 5