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Item 1.B.1.
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| City Council Regular | |
| Date: | 06/13/2022 |
| Title: | W.O. 22-27, Landfill Gas Compliance Flare Procurement, 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 Procurement, to LFG Specialties, LLC. in the amount of $491,160.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
W.O. 22-27, Landfill Gas Compliance Flare Procurement, is intended to purchase the Landfill Gas Compliance Flare equipment package. The construction and installation of the Landfill Gas Compliance Flare will be completed under a separate installation contract.
This Landfill Gas Compliance Flare is part of the effort to bring the landfill into emissions limits established by the EPA and MT DEQ under the Title V air quality permit. W.O. 20-41 has been awarded to install gas collection piping in the open cells of the landfill, with construction to take place summer and fall of 2022. This flare package will be used to extract the gas from the gas collection piping in the landfills open cells, and then consume this gas in the flare, bringing the landfill into emissions compliance. 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 addition to the base bid, there is also an additive bid alternate of for an optional flare shroud intended to hide the flame at the top of the flare. The shroud increases the height of the flare by 16 feet and the taller flare may be more visually impactful than the shorter flare. Due to the overall cost ($141,210.00), increased overall height of the flare stack, and the manufacturer's claim that there is no guarantee that the flame will be 100% hidden with this optional shroud, this additive alternate is not recommended.
The project was advertised on April 15th, April 22nd, April 29th, May 6th, and May 13th 2022, in the Yellowstone County News and on the City’s website. Bids were opened on May 17th and one bid was received from LFG Specialties, LLC.
This Landfill Gas Compliance Flare is part of the effort to bring the landfill into emissions limits established by the EPA and MT DEQ under the Title V air quality permit. W.O. 20-41 has been awarded to install gas collection piping in the open cells of the landfill, with construction to take place summer and fall of 2022. This flare package will be used to extract the gas from the gas collection piping in the landfills open cells, and then consume this gas in the flare, bringing the landfill into emissions compliance. 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 addition to the base bid, there is also an additive bid alternate of for an optional flare shroud intended to hide the flame at the top of the flare. The shroud increases the height of the flare by 16 feet and the taller flare may be more visually impactful than the shorter flare. Due to the overall cost ($141,210.00), increased overall height of the flare stack, and the manufacturer's claim that there is no guarantee that the flame will be 100% hidden with this optional shroud, this additive alternate is not recommended.
The project was advertised on April 15th, April 22nd, April 29th, May 6th, and May 13th 2022, in the Yellowstone County News and on the City’s website. Bids were opened on May 17th and one bid was received from LFG Specialties, LLC.
ALTERNATIVES
The Council may:
- Award W.O. 22-27, Landfill Gas Compliance Flare Procurement, to LFG Specialties, LLC in the amount of $491,160; 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 bid was received:
The base bid is $491,160. Staff reviewed the one bid received and the cost is within the range of the Engineer's Estimate of probable cost. The project is using FY22 Solid Waste Landfill Funds and there is adequate budget for the 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 | Additive Alternate: Flare Shroud |
| LFG Specialties, LLC | $491,160.00 | $141,200.00 |
The base bid is $491,160. Staff reviewed the one bid received and the cost is within the range of the Engineer's Estimate of probable cost. The project is using FY22 Solid Waste Landfill Funds and there is adequate budget for the project. Over time, the cost of these improvements will be offset by revenue generated by the production and sale of natural gas.