HomeMy WebLinkAbout12 - Newport Terrace Landfill Gas Collection & Control SystemCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 12
May 27, 2008
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Public Works Department
Stephen G. Badum
949 - 644 -3311 or sbadum @city.newport- beach.ca.us
SUBJECT: Newport Terrace Landfill Gas Collection and Control System —
Completion and Acceptance of Contract No. 3651 and Approval of
Amendment No. 3 with SCS Engineers- International, LLC, for Start-
up Support Services Relative to Operation and Maintenance of the
Completed System
Recommendations:
1. Accept the construction work performed and completed by Innovative
Construction Solutions, Inc. under Contract No. 3651.
2. Authorize the City Clerk to file a Notice of Completion..
3. Authorize the City Clerk to release the Labor and Materials bond 35 days after
the Notice of Completion has been recorded in accordance with applicable
portions of the Civil Code.
4. Release the Faithful Performance Bond one year after City Council acceptance.
5. Approve Amendment No. 3 to the Professional Services Agreement with SCS
Engineers - International, LLC for start-up support services relative to the
operation and maintenance of the completed landfill gas collection and control
system.
6. Approve a Budget Amendment transferring $235,110 from the Environmental
Liability Fund to Account No. 7292- C5100735 for the construction of the Newport
Terrace Landfill Gas Collection and Control System.
Background:
In accordance with the terms of the Settlement and License Agreement between the
City of Newport Beach and the Newport Condominium Association (NCA), the City has
administered the design and construction contracts for the improvements identified as
the "Newport Terrace Landfill Gas Collection and Control System ". The firm of SCS
Engineers - International, LLC (SCS) from Long Beach, California was hired to prepare
plans, specifications, and cost estimates for the scope of work referenced in the
Newport Terrace Landfill Gas Collection and Control System — Completion and Acceptance of Contract No. 3651
and Approval of Amendment No. 3 to Professional Services Agreement with SCS Engineers - International, LLC
May 27, 2008
Page 2
Settlement Agreement. A Professional Services Agreement with SCS was entered into
on December 31, 2006, to assist the City in pre - qualifying construction contractors for
competitive bidding on the work and to handle permit processing with regulatory
agencies. The not -to- exceed fee amount for this Agreement was $17,000.
By June 2007, four contractors had been pre - qualified and the project was ready for
bidding. Three of the four contractors submitted bids on June 27, 2007. The low bid of
$818,800 was submitted by Innovative Construction Solution, Inc. (ICS).
On July 10, 2007, the City Council awarded Contract No. 3651 to ICS for $818,800 and
established an amount of $80,000 to cover the cost of unforeseen construction
expenses. In addition to awarding the construction contract to ICS, the City Council
approved Amendment No. 1 to the December 31, 2006, Professional Services
Agreement with SCS in the amount of $83,162 to provide observation and support
services during construction of the improvements by ICS. SCS began construction
support services in August 2007 and was expected to continue until January 2008.
On January 22, 2008, the City Council approved Amendment No. 2 to the Agreement
with SCS in the amount of $32,838 for additional and extended construction support
services continuing into March 2008.
Discussion:
ICS has completed the work covered by Contract No. 3651 to the satisfaction of the
Public Works Department and the Newport Condominium Association and is
recommended for acceptance. The Settlement and License Agreement provides for
the City to be responsible for operating and maintaining the landfill gas collection and
control system upon completion of its construction. Operation and maintenance costs
are to be shared between the City and NCA.
The City's Utilities Department is best suited for assuming the responsibility to operate
and maintain (O &M) the landfill gas collection and control system. To assist in this
responsibility, SCS proposes to prepare an O &M manual and to provide training and
consultation to the Utilities Department staff during a "start -up and balancing" period of
approximately 60 days. A proposal letter from SCS dated April 22, 2008, describes the
services to be provided for a not to exceed amount of $44,925. During this 60 -day
period, a determination can be made to have continuing O &M performed by City staff or
by a private contractor. A report will be made to the City Council this summer to
recommend an operating budget for ongoing maintenance costs for the system.
Based on the explanation described above, staff recommends approval of Amendment
No. 3 to the Professional Services Agreement with SCS authorizing additional
consulting services for a not to exceed amount of $44,925. The proposed Amendment
No. 3 is attached for reference.
Newport Terrace Landfill Gas Collection and Control System — Completion and Acceptance of Contract No. 3651
and Approval of Amendment No. 3 to Professional Services Agreement with SCS Engineers - International, LLC
May 27. 2008
Page 3
Construction Contract Costs:
The contract awarded to ICS was based on an amount of $818,800. Progress
payments have been made to ISC from a City National Bank escrow account created
by $500,000 contributions from each the City and NCA. The final payment amounts
under the initial contract total $814,000. In addition, 14 change orders to the contract
were approved for a total of $68,840 which is equivalent to an increase of
approximately 8.41% over the initial contract amount. Payments to ICS for the initial
contract items and the change orders were made from the escrow account in equal
amounts from the City and NCA deposits. A summary listing of the 14 contract change
orders is enclosed with this report.
The initial contract completion date of January 23, 2008, was extended to May 23,
2008, due to the combination of rain days, additional change order work, and waiting for
Southern California Edison to install conductors and a new electric meter. The last ten
weeks of the contract extension time was the consequence of adding alarm monitoring
equipment for communication to the SCADA system in the City Utilities Yard. Overall,
ICS performed its work in a timely and responsible manner and staff would recommend
them for similar future work.
Environmental Review
This project is Categorically Exempt from provisions of the California Environmental
Quality Act (CEAQ) pursuant to Section 15301, Class 1 of the CEQA Implementing
Guidelines. This exemption covers operation, repair, maintenance, minor alteration,
etc., of existing structures, facilities, mechanical equipment, etc., involving no expansion
of use of that existing at the time of the City's determination. A Notice of Determination
has been filed with the Orange County Clerk's Office.
Geotechnical / Survey Services:
Surveying and construction staking services were provided by a private firm hired by
ICS as a part of the construction contract.
Construction and Project Management:
SCS provided observation and support services during construction as previously
described in this staff report. Project management and contract administration on
behalf of the Public Works Department was provided by Gail P. Pickart, P.E. under an
On -Call Professional Services Agreement approved by the City Council on July 10,
2007.
Newport Terrace Landfill Gas Collection and Control System — Completion and Acceptance of Contract No. 3651
and Approval of Amendment No. 3 to Professional Services Agreement with SCS Engineers- Intemational, LLC
May 27, 2008
Page 4
Funding Availability:
In addition to the primary construction contract, this project involved other project
expenses for material testing. Total project expenses are summarized as follows:
Construction
$882,840"`
Bidding and Construction Support
$177,925
Project Management / Contract Administration
$27,600
Compliance Probe Monitoring and Reporting of Landfill
Gas during the period from 8/06 through 3/08
$22,075
Air Quality Emissions Permit Fees
$2,010
SCE Electrical Energy
$3,000
Escrow Fees
$2,000
Reproduction and Miscellaneous Expenses
$500
Total Project Cost
$1,117,950
"$441,420 (50% of construction costs) paid by NCA from escrow funds.
Funds for the project were expended from the following account:
Account Description
Environmental Liability
NCA Escrow Contribution
Prepared by:
Gail P. Pickart, P.E.
Consulting Contract Administrator
Account Number
7292- C5100735
n/a
Attachment: Vicinity Map
Change Order Summary
Amendment No. 3
Amount
$676,530
$441,420
Total: $1,117,950
Exhibit 1
Newport Terrace Landfill Gas Collection and Control System —
Contract No. 3651
Change Order Summary
Change
Order
No.
Description of Change Order
Amount
1
Remove five trees adjacent to the equipment building
$5,900
2
Redrill wells 12 and 13 due to refusal and / or
$2,900
groundwater
3
Install lateral piping, 3" butterfly valves, and two valve
$1,600
boxes to tie wells 15 and 15A into collection system
4
Relocate sewer manhole for condensate discharge
<$5,600>
from sewer main in 19th Street to easterly end of
Seabird Court
5
Install temporary blower outside equipment building
$6,200
with flexible piping and electrical connections
6
Provide steel purlins for equipment building roof
$4,400
framework to attach corrugated metal sheeting
7
Credit for changing patterned concrete to plain concrete
$500
for equipment building access way. Install new interior
lighting, switches, and duplex outlets inside equipment
building
8
Install 3" PVC electrical conduit and main breaker panel
$9,500
for new electrical service from SCE handhole to
equipment buildin exterior
9
Install 1" PVC telephone conduit between panel on
$3,200
condo at 6 Windsong Court to equipment building
10
Video inspection to determine condition of 8" effluent
$2,750
line from equipment building to flag pole atmospheric
discharge point
11
Fabricate and install a sound enclosure over one
$8,790
methane blower and one 1-12S blower. Provide daily
monitoring of treatment compound from 3/17/08 to
4/8/08
12
Exchange NEMA3 exterior panel with a NEMA1 interior
$2,950
panel and add a main breaker
13
Furnish and install monitoring and alarm equipment for
$14,700
wireless and hardwire telecommunications between
blower building and City SCADA system at Utilities Yard
14
Two - thirds share of patterned concrete walkway
$11,050
replacement and daily monitoring of treatment
compound from 4/9/08 to 5/27/08
Total $68,840
VICINITY MAP
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PROJECT LOCATION
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VICINITY MAP
NOT TO SCALE
AMENDMENT NO. 3
TO
PROFESSIONAL SERVICES AGREEMENT WITH
SCS ENGINEERS INTERNATIONAL, LLD
FOR CONSULTING SERVICES IN CONNECTION WITH
SELECTION OF CONSTRUCTION CONTRACTOR FOR
NEWPORT TERRACE LANDFILL GAS SYSTEM MODIFICATIONS
THIS AMENDMENT NO. 3 TO PROFESSIONAL SERVICES AGREEMENT, entered
into this_ day of 2008, by and between the CITY OF
NEWPORT BEACH, a municipal corporation ( "City ") and SCS ENGINEERS
INTERNATIONAL, LLC, a Delaware Limited Liability Company, whose principal place of
business is 3900 Kilroy Airport Way, Suite 100, Long Beach, California, 90808 -6816
( "Consultant'), is made with reference to the following:
RECITALS
A. On December 31, 2006, City and Consultant entered into a Professional
Services Agreement, hereinafter referred to as "Agreement," for selection of
qualified construction contractors to bid the Newport Terrace Landfill Gas
System Modifications.
B. On July 10, 2007, City and Consultant executed Amendment No. 1 to Agreement
for observation and support services during construction of the Newport Terrace
Landfill Gas System Modifications.
C. On January 22, 2008, City and Consultant executed Amendment No. 2 to
Agreement for extended observation and support services during construction of
the Newport Terrace Landfill Gas System Modifications.
D. City desires to have Consultant provide start -up support services in connection
with the operation and maintenance of the gas system modifications at Newport
Terrace Landfill.
E. City desires to compensate Consultant for continuing and additional professional
services to be rendered to City.
F. City and Consultant mutually desire to amend Agreement, hereinafter referred to
as "Amendment No. 3 ", as provided herebelow.
NOW, THEREFORE, the parties hereto agree as follows:
1. Consultant shall provide the services outlined in the April 22, 2008 proposal from
Consultant attached hereto as "Exhibit A" and incorporated in full by this
reference.
2. Total additional compensation for services performed pursuant to this
Amendment No. 3 for all work performed, including all reimbursable items and
subconsultant fees, shall not exceed Forty -Four Thousand Nine Hundred
Twenty -Five Dollars and no1100 ($44,925.00) as outlined in Exhibit A.
3. The term of the Agreement is extended to October 1, 2008.
4. Except as expressly modified herein, all other provisions, terms, and covenants
set forth in Agreement shall remain unchanged and shall be in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 3 on
the date first above written.
APPROVED AS TO FORM:
Aaron C. Harp,
Assistant City Attorney
for the City of Newport Beach
ATTEST:
LM
LaVonne Harkless,
City Clerk
Attachment: Exhibit A — Proposal
CITY OF NEWPORT BEACH
A Municipal Corporation
By:
Edward Selich, Mayor
for the City of Newport Beach
CONSULTANT:
By:
(Corporate Officer)
Title:
Print Name:
By:
(Financial Officer)
Title:
Print Name:
f :Wserslpbw\shared \agreements%fy 07- 081scs- newport terrace Ifg- amend -3.doc
2
Environmental Consultants 3900 Kilroy Airport Way 562 426 -9544
and Contractors Suite 100 FAX 562 427 -0805
Long Beach. CA 90806 -6816 www.scsengineers.com
SCS ENGINEERS
April 22, 2008
File No. 01201221.07
Mr. Gail Pickart, PE
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92658 -8915
Subject: Proposal to Perform Initial Operations for Newport Terrace Landfill Gas System
Modifications
Dear Mr. Pickart:
This letter constitutes a proposal (revised from original January 31 version sent to Aaron Harp)
for SCS Engineers (SCS) to assist the City of Newport Beach in the initial start-up operations of
the modified landfill gas (LFG) control system at the Newport Terrace Condominiums.
Construction of the system modifications, including new collection piping, a number of new
extraction wells, and a completely re- outfitted gas treatment facility, although largely complete,
is now expected to be accepted by the city in May. At that point, the contractor will have
demonstrated mechanical completion — that the equipment installed is capable of meeting the
performance specifications (e.g., flow rates, applied vacuum and discharge pressure,
functionality of mechanical and electrical equipment).
After the system is accepted by its owner (the City and/or NCA) it will need to be operated,
maintained, and monitored. There will be an initial period of relatively intense operations,
probably about 60 days, during which the extraction of gas from the landfill (applied vacuum) is
balanced to achieve the objectives of the system, i.e., the reduction of methane concentrations in
compliance monitoring probes to acceptable levels (below 5% by volume, per state regulations).
In addition, a "source test' would be performed pursuant to the SCAQMD Permit, whereby
samples of treated gas are collected and analyzed to demonstrate that permit conditions
(adsorption of non - methane organic compounds, NMOCs) are being met.
After the initial operations the long -term operation, maintenance, and monitoring (OM &M) may
begin.
This letter presents our proposal for the initial operations. SCS would also be interested in
performing the longer term OM &M, and can prepare a proposal for those services at a later date.
SCOPE OF WORK
During the initial operations, SCS would (in general) do the following:
• Perform background (pre- startup) monitoring: methane and pressure in monitoring
probes; static pressures and gas concentrations in extraction wells.
Offices Nationwide q0
Mr. Gail Pickart
April 22, 2008
Page 2
• Initiate system operation with all flow control valves in full open position.
• Start up the collection system (blowers).
• Monitor flow rates achieved and distribution of applied vacuum throughout
wellheads.
• Begin closing extraction well control valves to achieve a balance of applied vacuums
through the well -field.
• Routinely monitor NMOC and sulfur removal in the treatment units.
• Perform lab analysis of gas samples from treatment system inlet and outlet (required
monthly per conditions of AQMD Permit).
• Monitor operation of automated condensate management system (pneumatic sumps,
pumps).
• Modify condensate trap risers to make them flush with surface.
Prepare Operation and Maintenance Manual. This document would compile all
available system construction and equipment information and permit conditions, and
provide operations and troubleshooting guidance for future system operators. We
would provide forms for future reporting of monitoring and operating data.
The immediate operational goal will be to reduce methane concentrations in compliance
monitoring probes to be below 5% by volume (several probes have had higher methane
concentrations in recent months). Once that has been accomplished, a secondary goal will be to
reduce the long -term cost of operation by reducing the flow rate of collected gas, and to
potentially reduce the hours of operation of the system. (The system is controlled by a 7 -day,
24 -hour timer, allowing less- than -full -time operation.) These measures would hopefully reduce
the rate of carbon consumption in the treatment system, and also reduce power consumption.
ESTIMATED COST AND SCHEDULE
We estimate the following level of effort and cost:
Scope Item
Estimated
Cost
Week 1
Two full -time technicians, 3 days at site (each 24 hours @
$80)
$3,840
Weeks 2 to 4
One tech, twice weekly, full -day visits (48 hours @ $80)
$3,840
Weeks 5 to 9
Twice weekly, half -day visits (50 hours @$80)
$4,000
Modification of four condensate risers
$2,800
Preparation of O &M Manual, lump sum
$7,500
Vehicles and equipment (1 1 days @ $295)
$3,245
Mr. Gail Pickart
April 22, 2008
Page 3
Note that we have not allowed for costs related to replacement (regeneration) of carbon in the
adsorption units, or for the Sulfa -Treat system. We believe it unlikely that this would be needed
within the first few months. This also does not address costs such as electrical power,
condensate disposal (to the city sewer system) or any other internal city costs.
This scope envisions a 2 -month schedule for this initial operations project.
If this proposal is acceptable, we assume the City will process the appropriate contracting
instrument.
We look forward to our continuing relationship with the City of Newport Beach. If you have any
questions about this proposal, please call the undersigned.
Sincerely,
Mark B. Beizer, P '
Senior Vice President
SCS ENGINEERS
MBB /jml
Scope Item
Estimated
Cost
AQMD source test
$6,000
Laboratory (gas analyses): 2 months (sulfur and VOC
$1,200
analyses)
Management and coordination, liaison to LEA, SCAQMD
$12,500
Total Estimate
$44,925
Note that we have not allowed for costs related to replacement (regeneration) of carbon in the
adsorption units, or for the Sulfa -Treat system. We believe it unlikely that this would be needed
within the first few months. This also does not address costs such as electrical power,
condensate disposal (to the city sewer system) or any other internal city costs.
This scope envisions a 2 -month schedule for this initial operations project.
If this proposal is acceptable, we assume the City will process the appropriate contracting
instrument.
We look forward to our continuing relationship with the City of Newport Beach. If you have any
questions about this proposal, please call the undersigned.
Sincerely,
Mark B. Beizer, P '
Senior Vice President
SCS ENGINEERS
MBB /jml
City of Newport Beach
BUDGET AMENDMENT
2007 -08
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
Increase Expenditure Appropriations AND X
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
NX from unappropriated fund balance
EXPLANATION:
This budget amendment is requested to provide for the following:
NO. BA- 08BA -074
AMOUNT: $s7s,53o.00
Increase in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
To increase expenditure appropriations from Environmental Liability unappropriated fund balance for the construction
of the Newport Terrace Landfill Gas Collection and Control System.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account
292 3605
REVENUE ESTIMATES (3601)
FundlDivision Account
EXPENDITURE APPROPRIATIONS (3603)
Description
Environmental Liability - Fund Balance
Description
Signed: �4�� ( 14 -& l _
Financial Approval: /Administratiy ervices Director
Signed:
A ministrative Approv I: City Manager
Signed:
City Council Approval: City Clerk
Amount
Debit Credit
$676,530.00
$676,530.00
Date
ate
Date
Description
Division
Number
7292 Environmental Liability
Account
Number
C5100735 Newport Terrace Landfill Gas System
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed: �4�� ( 14 -& l _
Financial Approval: /Administratiy ervices Director
Signed:
A ministrative Approv I: City Manager
Signed:
City Council Approval: City Clerk
Amount
Debit Credit
$676,530.00
$676,530.00
Date
ate
Date