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PROPOSAL:

Execute Contract to Develop Additional Technologies to Monitor and Reduce Fugitive Emissions at Dry Cleaners

SYNOPSIS:

On August 14, 1998, the Board authorized the release of an RFP to select a qualified contractor to develop new technologies to reduce these fugitive emissions and to simplify, reduce, or streamline monitoring by dry cleaners. This action is to execute a contract with AVES (an affiliate of ATC Associates Inc). A total of $200,000 is available in the AB 2588 Air Toxics Fund for this purpose.

COMMITTEE:

Stationary Source, September 18, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract to develop new technologies to reduce fugitive perchloroethylene emissions and to simplify, reduce, or streamline monitoring by dry cleaners with AVES (an affiliate of ATC Associates Inc) at a total cost not to exceed $200,000 from the AB 2588 Air Toxics Fund.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

Fugitive perchloroethylene emissions from dry cleaners add substantially to the area source toxic inventory. Because dry cleaners are distributed throughout the Basin and are often located near retail businesses and residential areas, their emissions directly impact the public.

Under the California Air Toxics "Hot Spots" Information and Assessment Act (AB 2588), sources with significant emissions are required to inventory their toxic emissions and perform an individual Health Risk Assessment. To reduce the costs to dry cleaners and certain other small source categories if required to comply individually with these requirements, AB 2588 allows these sources to be grouped by category for emissions inventory purposes. AQMD is required to conduct and periodically update an industrywide emissions inventory that identifies specific areas ("hot spots") where these emissions could impose significant health risks on the public. Further decreasing fugitive perchloroethylene emissions from dry cleaners is expected to result in reduced health risks throughout the Basin.

In addition, as amended, Rule 1421 requires dry cleaners to perform daily checks for vapor leaks using a halogenated-hydrocarbon detector or a portable gas analyzer. Lower-cost halogenated-hydrocarbon detectors preferred by dry cleaners are very sensitive to perchloroethylene leaks, but do not yield the quantitative results necessary to determine which leaks require repair. Monitoring equipment capable of quantifying these leaks costs at least $3,000. This cost and the need to ensure compliance require the development of new, more cost-effective methods to monitor and reduce fugitive perchloroethylene emissions at dry cleaning operations.

At its August 14, 1998 meeting the Governing Board authorized the release of RFP #9899-05 to solicit competitive bids to develop new technologies to reduce fugitive perchloroethylene emissions and to simplify, reduce, or streamline monitoring by dry cleaners. Included among the tasks to be bid on a time-and-materials (T&M) basis were:

• Compiling available leak data from local APCDs.

• Surveying manufacturers on design criteria and recommended maintenance practices.

• Developing or refining emission factors and achievable leak rates, and estimating or measuring mass emissions as a function of relative perchloroethylene concentrations.

• Surveying monitoring equipment and monitoring needs, determining the likelihood of leaks, and proposing monitoring options which ensure high compliance levels, minimize costs, and are simple to perform.

• Performing an engineering study of several dry cleaning machines to determine causes of leaks, and recommending technological and maintenance/operational solutions.

• Developing "housekeeping" methods to reduce emissions from handling of perchloroethylene.

• Recommending changes to the state ATCM with respect to leak limits, maintenance and operational practices and monitoring requirements.

• Developing a comprehensive guidance manual for use by dry cleaners to reduce overall perchloroethylene emissions.

As detailed in the Bid Evaluation section, the evaluation panel selected AVES (an affiliate of ATC Associates Inc) based on technical and cost criteria and recommends them for contract award.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:

1. Antelope Valley Press	9. Korea Central Daily	17. Palm Springs Desert Sun
2. Black Voice News	10. La Opinion	18. Philippine News
3. Chinese Daily News	11. La Voz	19. Precinct Reporter
4. Eastern Group Publications	12. Los Angeles Daily News	20. Rafu Shimpo
5. El Chicano	13. Los Angeles Sentinel	21. Riverside Press Enterprise
6. Excelsior, The	14. Los Angeles Times	22. San Bernardino Sun
7. Inland Empire Hispanic News	15. M/W/DVBE Source	23. Santa Clarita Signal
8. Inland Valley Daily Bulletin	16. Orange County Register	24. State of California Contracts Register

Additionally, potential bidders were notified from the Los Angeles County Metropolitan Transit Authority and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business & Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line [(909) 396-2724]. A bidders’ conference was also held on September 2, 1998, which was attended by representatives from twelve firms.

Bid Evaluation

Four proposals were received in response to the RFP by the submittal deadline of 9:30 a.m. on September 15, 1998. None were from disabled veteran-owned business enterprises.

Technical points were awarded according to the apparent qualifications and experience of bidders to develop new technologies to reduce fugitive perchloroethylene emissions and to simplify, reduce, or streamline monitoring by dry cleaners; the technical/management approach proposed to undertake the tasks to be performed; and other relevant qualifications and expertise of bidders, including their demonstrated experience performing similar work.

Three of the four proposals earned technical scores of 70 points or higher and were subsequently evaluated for cost and other factors. All qualified to receive local business points.

The distribution of scores is shown below:

Panelists concurred that the AVES proposal reflects a more comprehensive, technically sound scope of work than that submitted by any other bidder. For this reason, and because the AVES technical approach was viewed as especially sensitive and responsive to industry needs, AVES earned the highest technical score.

Despite the absolute cost difference of $19,321 between AVES and its closest competitor, IRTA, the AVES bid remains $55,000 less than the amount originally budgeted for this effort. Panelists’ final scores reflect their view that the AVES proposal is relatively more cost-effective and justifiably cost-competitive, based on its more extensive scope of work.

Panelists representing the dry cleaning industry registered an especially strong preference for the AVES proposal, based on their appraisal that AVES is apparently the most familiar with and responsive to industry issues and concerns. Because industry endorsement is especially important to the success of this effort, staff concurs with the panelists’ overall recommendation that AVES be awarded a contract not to exceed $200,000 to perform this work.

Panel Composition

Proposals were evaluated and scored by a five-member evaluation panel, consisting of one industry representative each from the California Dry Cleaners Association and Korean Dry Cleaners Association, one Environmental Protection Specialist from EPA Region IX, one Air Resources Specialist from the San Diego APCD, and one Air Quality Inspector III from AQMD. Of these, three panelists are men and two are women. Additionally, one panelist is African American, one panelist is Asian/Pacific Islander, one is Hispanic, and two are Caucasian.

Resource Impacts

A total amount not to exceed $200,000 will be drawn exclusively from the AB 2588 Air Toxics Fund to fund AVES to develop new technologies to reduce fugitive perchloroethylene emissions and to simplify, reduce, or streamline monitoring by dry cleaners.

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