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BOARD MEETING DATE: March 12, 1999 AGENDA NO. 19

PROPOSAL:

Recognize Revenue from CENCO Refining Company and Issue RFP to Provide Temporary Engineering Services

SYNOPSIS:

The AQMD Hearing Board issued a stipulated Order for Abatement to CENCO Refining Company imposing requirements for the refinery to demonstrate compliance to the Executive Officer and the Hearing Board prior to the start-up of the refinery. It is necessary to hire outside engineering services with expertise in refinery operation to assist the Executive Officer and the Hearing Board in reviewing and analyzing such compliance demonstrations. CENCO Refining Company has entered into a contractual agreement with AQMD to reimburse all costs associated with such engineering services. One or more contractors will be selected to provide services as needed. It is also necessary to recognize and appropriate $200,000 to the FY 1998-99 budget for the Stationary Source Compliance (SSC).

COMMITTEE:

Administrative and Stationary Source, February 19, 1999,
Recommended for Approval

RECOMMENDED ACTION:

1. Recognize $200,000 in revenue from CENCO Refining Company and appropriate $200,000 from the Undesignated Fund Balance to the SSC’s Professional and Special Services for engineering services.
2. Approve the release of RFP No. 9899-21 entitled "Request for Proposals for Temporary Engineering Services."

Barry R. Wallerstein, D.Env.
Executive Officer

Background

CENCO Refining Company has recently acquired the refinery formerly operated by Powerine Oil Company, located at 12345 Lakeland Road, Santa Fe Springs, California 90607, and has planned to restart the refinery in late 1999. Since the refinery has not been operated since July 1995 when refining operations were suspended, staff wants to ensure that upon restart of the refinery, violations of AQMD rules, particularly those protecting against public nuisance, will not occur. The AQMD Hearing Board issued a stipulated Order for Abatement (Case No. 5031) to CENCO Refining Company on December 11, 1998, imposing requirements for the refinery to demonstrate compliance to the Executive Officer and the Hearing Board prior to the start-up of the refinery. This Order for Abatement further requires CENCO Refining Company to execute a contract with the AQMD to reimburse the AQMD for all costs of the AQMD contracting an engineering consulting firm to assist the Executive Officer and the Hearing Board in reviewing and analyzing such compliance demonstrations. As a result, CENCO has entered into a contract (Contract No. 99075) with AQMD and agreed to reimburse such costs for an amount not to exceed $200,000.

Proposal

Through the attached RFP, the AQMD seeks to competitively select one or more contractor (s) to provide temporary engineering services on an as-needed basis. Under the direction of the AQMD, the contractor(s) will assist the Executive Officer and the Hearing Board in reviewing and analyzing the compliance demonstrations and other required submittals specified in the Order for Abatement.

The contractor(s) selected as a result of this RFP process will remain pre-qualified for up to one year. As the need arises, AQMD staff will issue a firm fixed-price task order or time-and-materials task order to the contractor(s) to perform engineering services. This bidding and pre-qualification process will ensure that the AQMD can quickly obtain engineering services to adequately respond to a temporary workload increase in the most cost-effective manner.

Outreach

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

Additionally, potential bidders will be notified from the Los Angeles County MTA 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. Notice of the RFP will be 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 and Job Opportunities" icon] and AQMD’s 24-hour telephone message line for bidders (909) 396-2724.

Bid Evaluation

Quotations received will be evaluated by a diverse panel of technically-qualified individuals according to the criteria described in attached RFP.

Resources Impacts

This supplement to the FY 1998-99 Budget will have no effect on AQMD’s fiscal resources because the funds it represents are provided by CENCO Refining Company. Specifically, this supplement will recognize $200,000 in revenue from CENCO Refining Company and appropriate $200,000 from the Undesignated Fund Balance to the SSC’s Professional/Special Services.

This constitutes a supplement to the FY 1998-99 Budget. Therefore, the required 30-day public notice of a proposed supplement to the FY 1998-99 Budget was published in the Los Angeles Times.

Attachments

RFP No. 9899-21

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