HomeMy WebLinkAbout22 - Emergency Methane Blower Replacement at Newport Terrace LandfillCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 22
January 11, 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Municipal Operations Department
Mark Harmon, Director
949 - 644 -3055, mharmon @newportbeachca.gov
SUBJECT: Budget Amendment for Emergency Methane Blower Replacement at
Newport Terrace Landfill
RECOMMENDATION:
Approve a Budget Amendment transferring a total of $14,827.78 from Environmental
Liability unappropriated fund balance, 292 -3605, to Environmental Liability, Services
Professional & Technical, 3155 -8080 to fund the emergency replacement of one (1)
methane gas blower at the Newport Terrace Landfill.
DISCUSSION:
The Newport Terrace property was acquired by the City of Newport Beach and used as
a solid waste disposal site (landfill) in the 1950s and early 1960s. It was sold to a
private company in the early 1970s and developed with residential condominium units
along both sides of the landfill area. A gas collection system was installed as part of the
residential project's construction and the homeowner's community association (Newport
Condominium Association, or NCA) was responsible for the system's operation and
maintenance.
As a result of litigation between the NCA and the City, a Settlement and License
Agreement was executed in November 2006. The City and NCA are responsible for the
ongoing operation, maintenance and monitoring (OM &M) of the gas collection system.
The Agreement provided that the OM &M costs are to be shared equally between the
City and the NCA. The City entered into an agreement with G C Environmental (GCE)
on July 1, 2009 to operate and maintain the system.
There have been numerous equipment shutdowns caused by the gas blower overloads
since July 2009. It was reported that this has been an ongoing problem at the site since
the facility was constructed. Methane exceedance on some occasions have been
addressed on an emergency basis. If the blower is not repaired, future methane probe
exceedance may violate the South Coast Air Quality Management District (SCAQMD)
Rule 1150.1 and the California Title 27 regulations for gas collection systems.
Budget Amendment for Emergency Methane Blower Replacement
at Newport Terrace Landfill
January 11, 2011
Page 2
Environmental Review:
Staff recommends the City Council finds that taking action to the recommendations in
this report is not subject to the California Environmental Quality Act ( "CEQA ") pursuant
to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable
indirect physical change in the environment) of the CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3, because the project consists of the replacement of an
existing gas collection system and will meet SCAQMD and Local Enforcement Agency
(Integrated Waste Management Department) approval.
Public Notice:
This agenda item may be noticed according to the Ralph M. Brown Act (72 hours in
advance of the public meeting at which the City Council considers the item).
Funding Availability:
The cost of the replacement of the methane gas blower at the Newport Terrace Landfill
is $14,827.78 and will need to be transferred from the Environmental Liability
unappropriated fund balance 292 -3605, to Environmental Liability, Services
Professional & Technical, 3155 -8080.
Alternative:
The alternative would be to repair the system and determine why the blower is not
performing as intended. This will require the City to shut down the entire system, which
will result in methane gas release. Reducing the operational hours of the system may
result in the emission of methane gases at an extensive rate, which may result in fines.
Attachments: Budget Amendment
Municipal
City of Newport Beach
BUDGET AMENDMENT
2010 -11
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
X Increase Expenditure Appropriations AND
Transfer Budget Appropriations
SOURCE:
from existing budget appropriations
from additional estimated revenues
NX from unappropriated fund balance
EXPLANATION:
NO. BA- 11BA -024
AMOUNT: $14,827.78
Increase in Budgetary Fund Balance
X Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To increase expenditure appropriations from the Environmental Liability unappropriated fund balance to cover
the cost of the replacement of the emergency methane gas blower at the Newport Terrace Landfill.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE Amount
Fund Account Description Debit Credit
292 3605 Environmental Liability - Fund Balance $14,827.78
REVENUE ESTIMATES (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Description
Description
Division Number 3155 Environmental Liability
Account Number 8080 Services: Professional & Technical NOC
Division Number
Account Number
Division Number
Account Number
Division Number
Account. Number
Signed: WO
Financial
Signed:
Signed:
Approval:
City Council Approval: City Clerk
Services Director
$14,827.78
�Y a3 l D
Date
ate
Date