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Item 1.A.2.
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| City Council Regular | |
| Date: | 05/08/2023 |
| Title: | W.O. 22-27, Landfill Gas Compliance Flare Installation, Bid Award |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review | Not Applicable |
RECOMMENDATION
Staff recommends the City Council award a contract for W.O. 22-27, Landfill Gas Compliance Flare Installation, to Western Municipal Construction, Inc. in the amount of $1,857,538.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
W.O. 22-27, Landfill Gas Compliance Flare Installation, is intended develop the landfill gas compliance flare site at the Billings Regional Landfill (BRL), install the flare equipment, and tie the flare into the existing landfill gas collection piping system to bring the landfill into environmental compliance.
In the active areas of the landfill where waste is being continually added, the waste has been on the ground less than the 5+ years required to produce the mature gas that MDU needs, but is still producing gas that is outside of EPA emissions limits. This construction package is the last phase of the effort to bring the BRL emissions within limits established by the EPA and MT DEQ under the Title V air quality permit. Upon completion, the flare package will extract the gas from the open cells of the landfill, consume the gas at the flare, and ultimately bring the landfill into emissions compliance. The gas quality coming out of the open cells will be routinely monitored, and once it matures to the appropriate level, it will be diverted to MDU's facility and sold as a profit for both the city and MDU. The flare will also be sized to accommodate the total gas flow that is processed at the MDU landfill gas processing facility if the MDU plant has a prolonged outage due to a maintenance or emergency shutdown, allowing the landfill to operate safely and within emissions compliance limits when the plant is out of service.
In the summer of 2022, gas collection piping was installed in the open cells of the landfill. In June 2022, the City purchased the flare equipment. This project will bring those two phases together by installing the new compliance flare equipment and connecting the gas collection piping to the new flare.
The project was advertised on March 3, March 10, March 17, March 24 and March 31, 2023, in the Yellowstone County News and on the City's website. Bids were opened on April 4th and one bid was received. Western Municipal Construction, Inc. submitted a responsible bid. Staff has reviewed the bid and will recommend reducing the scope of work after award in order to save money on the project.
In the active areas of the landfill where waste is being continually added, the waste has been on the ground less than the 5+ years required to produce the mature gas that MDU needs, but is still producing gas that is outside of EPA emissions limits. This construction package is the last phase of the effort to bring the BRL emissions within limits established by the EPA and MT DEQ under the Title V air quality permit. Upon completion, the flare package will extract the gas from the open cells of the landfill, consume the gas at the flare, and ultimately bring the landfill into emissions compliance. The gas quality coming out of the open cells will be routinely monitored, and once it matures to the appropriate level, it will be diverted to MDU's facility and sold as a profit for both the city and MDU. The flare will also be sized to accommodate the total gas flow that is processed at the MDU landfill gas processing facility if the MDU plant has a prolonged outage due to a maintenance or emergency shutdown, allowing the landfill to operate safely and within emissions compliance limits when the plant is out of service.
In the summer of 2022, gas collection piping was installed in the open cells of the landfill. In June 2022, the City purchased the flare equipment. This project will bring those two phases together by installing the new compliance flare equipment and connecting the gas collection piping to the new flare.
The project was advertised on March 3, March 10, March 17, March 24 and March 31, 2023, in the Yellowstone County News and on the City's website. Bids were opened on April 4th and one bid was received. Western Municipal Construction, Inc. submitted a responsible bid. Staff has reviewed the bid and will recommend reducing the scope of work after award in order to save money on the project.
ALTERNATIVES
City Council may:
- Award W.O. 22-27, Landfill Gas Compliance Flare Installation, to Western Municipal Construction, Inc. in the amount of $1,857,538; or
- Not award a contract and reject the bid. If the project is not awarded, the landfill will continue to produce gas emissions that are in excess of the environmental regulation limits, and the City may be subject to fines.
FISCAL EFFECTS
The following bids were received:
The project was budgeted in FY23 using Solid Waste Landfill Funds. The scope of work will be reduced and approximately $167,000 will be change ordered out of the contract amount, leaving a budget shortfall of $300,000. The shortfall will be offset with funds from the cancellation of another landfill project. Over time, the cost of these improvements will be offset by revenue generated by the production and sale of natural gas.
| Contractor | Base Bid |
| Western Municipal Construction, Inc. | $1,857,538.00 |
The project was budgeted in FY23 using Solid Waste Landfill Funds. The scope of work will be reduced and approximately $167,000 will be change ordered out of the contract amount, leaving a budget shortfall of $300,000. The shortfall will be offset with funds from the cancellation of another landfill project. Over time, the cost of these improvements will be offset by revenue generated by the production and sale of natural gas.