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HomeMy WebLinkAbout11/17/1992, 7 - WASTEWATER SLUDGE (BIOSOLIDS) MANAGEMENT AND DISPOSAL/RECLAMATION AGREEMENT WITH PIMA GRO SYSTEMS, INC. FROM REQUEST FOR PROPOSALS WW 92-08. IIIII�IbNI�IIIIIII�pflIlln1l MEETING DATE: B UI City or san IS QBISpO November 17., 1992 COUNCIL AGENDA REPORT STEM NUMBER: FROM: John E. Moss Prepared By: David C. Hix Interim Utiliti9eirector Industrial Waste Coordinator SUBJECT: Wastewater Sludge (Biosolids) management and disposal/reclamation agreement with Pima Gro Systems, Inc. from Request For Proposals WW 92-08. CAO RECOMMENDATION: By motion, approve agreement with Pima Gro Systems Inc. (contractor) for management and disposal/reclamation of the City's biosolids. Authorize CAO to execute agreement with contractor subject to submission of regulatory permits and materials. Agreement with contractor subject to the following terms: a. Cost for services will be $19.50 per ton biosolids removed to a facility in San Luis County and/or $27.75 per ton biosolids removed to a facility in Merced County. b. Biosolids will be hauled and applied to permitted farmland(s) in compliance with applicable rules and regulations. C. Contract duration of two years (with option for at least one additional year). REPORT IN BRIEF: In July 1990, proposals were sought for disposal/reclamation of approximately 7,000 cubic yards of biosolids stockpiled at the City of San Luis Obispo's Water Reclamation Facility (WRF). After negotiations with the California Regional Water Quality Control Board (CRWQCB), a contract was approved by Council with Bio-Gro, Inc. and the stockpiled biosolids were applied at a site in Buellton, California. Regulatory constraints imposed by the CRWQCB would not allow the City to continue application of its biosolids at this site on an on-going basis. Stockpiles of approximately 4,000 yards have again accumulated at the WRF. Council approved Request for Proposal for Operations Maintenance Services for Management and Disposal/Reclamation of the City's biosolids and authorized staff to solicit bids on August 18, 1992. Six proposals were received and the lowest responsible proposal was submitted by Pima Gro Systems, Inc. with two options: 1) Use the stockpiled biosolids and all future generated biosolids as a beneficial soil amendment on a large ranch located in the northern part of San Luis Obispo County. This option is favored by staff.but requires permitting by the CRWRCB; 2) Application of the biosolids at Pima Gro's currently permitted facility in Merced County. 7% �������►r�►i�l11111111p° 9111111 city of san t s oBispo Hia; COUNCIL AGENDA REPORT Biosolids Dis/Rec November 17, 1992 Page 2 Pima Gro's proposal covers both the City's short and long-term disposal/reclamation needs by beneficial reuse of the City's stockpiled biosolids and continued reuse of future generated biosolids for a recommended period of two years. The two options provide the City with a flexible biosolids reuse program should permitting or operational problems preclude the use of either site. Staff estimated approximately $150,000 would be required to remove existing stockpiles as well as that being generated during the 1992-93 fiscal year. Funding for disposal/ reclamation of the biosolids has been identified in the 1991-93 Financial Plan and $150,000 approved funding is available in the 1992-93 Water Reclamation Facility Operating Program Budget. Adequate funding is available to support the recommended disposal/reclamation program. DISCUSSION: Over the past several years, the City has experienced significant difficulty in management and disposal/reclamation of the sludge residuals (biosolids) from the wastewater treatment process. In July 1990, proposals were sought for disposal/reclamation of approximately 7,000 cubic yards of biosolids stockpiled at the City's Water Reclamation Facility. After lengthy negotiations with the California Regional Water Quality Control Board (CRWQCB), a contract with Bio-Gro Inc. was approved by Council and the stockpiled biosolids were applied as an agricultural soil amendment at the Gardner Ranch near Buellton, California in May 1991 at a cost of $250,000 or $34.50 per yard. Staff was attempting at that time to negotiate a long term contract for disposal/reclamation of the biosolids, however regulatory constraints imposed by the CRWQCB would not allow the City to continue application of its biosolids on the Gardner Ranch on an on-going.basis. Staff's next course of action was to attempt to identify a lower cost, local solution to the City's problem with biosolids. A conceptual program for composting the biosolids with wood chips generated by the City Parks Division and agricultural land application to City owned properties located adjacent to the Water Reclamation Facility and Laguna Lake Park was brought before Council on March 24, 1992. This program wasrejected by Council as it was not consistent with Council direction regarding the aesthetics of the southerly entrance to the City. Additionally, sufficient space does not exist for exclusive land application to these proposed sites. Staff was directed by Council to pursue negotiations with local area landowners and Cal Poly in an effort to establish a local agricultural land application program. Staff has made extensive efforts in this regard and to date has been unsuccessful in �����►�►►►�IIIIIIIIIII°�"'9@III city of San ' is OBISPO NiiN COUNCIL AGENDA REPORT Biosolids Dis/Rec November 17, 1992 Page 3 locating a willing landowner. Several contacts have been made with Cal Poly and there seems to be very little interest in participating in a biosolids reclamation program with the City. The stockpiles at the City's Water Reclamation Facility (WRF) have again accumulated to a point where removal is critical. It is estimated there is 4,000 cubic yards of biosolids currently stockpiled at the WRF in addition to the 2,000 cubic yards produced each year. With all other options being nearly exhausted or proceeding at a pace which is inconsistent with current needs, staff requested Council approval to request proposals from qualified firms for management and disposal/reclamation of the City's Biosolids (WW 92-08). The RFP was advertised on August 22 and opened on September 24, 1992. Six firms submitted proposals, below is a brief overview of the firms proposals and their respective costs for management and disposal of the City's biosolids. 1. Pima Gro Systems, Inc. - Proposed beneficial reuse through land application on farmlands) in Northern San Luis Obispo County or Merced County. Cost: $19.50 per ton in Northern .San Luis Obispo County and/or $27.75 per ton in Merced County. I 2. San Joaquin Composting, Inc. - Proposed beneficial reuse through composting the City's Biosolids at their Kern County Facility. Cost: $36.00 per ton. 3. Residuals Processing, Inc. - Proposed beneficial reuse through land application, composting with various wastes and a back-up disposal option of landfilling at Chicago Grade Landfill. This proposal provides no operational proposal for compost disposal and/or marketing. Cost: $56.03 per cubic yard for land application and composting and $35.10 per cubic yard for landfill disposal.* 4. Bio Gro Systems, Inc. - Proposed beneficial reuse through land application on farmland(s) in Northern San Luis Obispo County. Cost $29.80 per cubic yard.* 5. Earth Renewal Organic Composting Systems. - Proposed beneficial reuse using on- site, in-vessel composting. This proposal would be based at the City's Water Reclamation Facility and offers no disposal or marketing plan for the compost. Cost: no cost estimate provided with proposal. 6. Gardner Ranch. - Proposed beneficial reuse through land application on farmland in Central Santa Barbara County. Cost: $28.00 per cubic yard.* 7 ����,��►►►IUIIIIIIIIIP► ll�lll city Of San t_1 S OBI SPO COUNCIL AGENDA REPORT Biosolids Dis/Rec November 17, 1992 Page 4 * One cubic yard of the City's biosolids is approximately 85% of a ton. PROPOSED RECLAMATION PLAN The lowest responsible proposal was submitted by Pima Gro Systems, Inc. with two options. The first option is to use the stockpiled biosolids and all future generated biosolids as a beneficial soil amendment on a large ranch located in the Northern part of San Luis Obispo County. The biosolids application will serve to enhance the agricultural productivity of the site by improving the soil fertility, water holding capacity and micronutrient requirements of . the soil. This is considered a beneficial use. Pima Gro Systems is currently working with the Regional Water Quality Control Board (CRWQCB) and the County to secure the proper permits for land application of the biosolids on farmland in Northern San Luis Obispo County. CRWQCB staff favors and supports an ongoing.management plan for the City's Biosolids, like Pima Gro's, and have implied that a temporary permit or exemption may be granted to allow rapid application of the City's stockpiled biosolids pending a full permit. City staff will attend the CRWQCB November 13, 1992 meeting to seek a temporary permit exemption for disposal/reclamation of the City's stockpiled Biosolids. Long term permits should be obtained by Pima Gro by April of 1993 pending CRWQCB staff review and Board approval. When permitted the Northern San Luis Obispo County operation will meet all Federal, State and Local rules and regulations for beneficial use of biosolids. Pima Gro Systems has managed a similar operation since 1990 in Merced County under a permit from the Central Valley Regional Water Quality Control Board and has been land applying biosolids in Southern California and Arizona since 1988 and 1983 respectively. The second option is similar to the Northern San Luis Obispo option but the application of biosolids would occur at Pima Gro's currently permitted facility in Merced County. Hauling of stockpiled and generated biosolids could commence immediately to this facility if Pima Gro has difficulty obtaining an exemption and/or permit for the San Luis Obispo facility. This option offers the City a prompt method of disposal/reclamation for its stockpiled biosolids if required permits cannot be properly granted by the CRWQCB. Operations at the Water Reclamation Facility may be negatively impacted due to lack of storage space and off- site migration of the biosolids may occur with heavy winter rains. Pima Gro's proposal covers both the City's short and long-term disposallreclamation needs by beneficial reuse of the City's stockpiled biosolids and continued reuse of future generated biosolids for two years. Staff feels that this proposal will provide the City with the most cost effective and responsible beneficial use for the City's stockpiled and generated biosolids. 7-4�1 �,�H�►�ui�IIIIIII�p�l II81Il city Of San ' 'I s OBI SPO COUNCIL AGENDA REPORT Biosolids Dis/Rec November 17, 1992 Page 5 Staff is recommending that Council approve the agreement with Pima Gro with the San Luis Obispo County option being primary choice and allowing staff to proceed with the Merced County option if the required permits cannot be obtained from the CRWQCB for removal of the existing stockpiles prior to the winter rains. FISCAL IMPACT The estimated cost for this project is detailed below: i SHORT TERM (Stockpiled) Cost per ton $ 19.50 Currently stockpiled (tons) 3,400 Cost without contingencies $66,300 Contingencies @ 10% $6.630 TOTAL COST FOR SAN LUIS COUNTY OPTION $ 72,930 Cost per ton $27.75 Currently stockpiled (tons) 3.400 Cost without contingencies $94,350 Contingencies @ 10% $9,435 TOTAL COST FOR MERCED COUNTY OPTION $103,785 LONG TERM (Generation) Cost per ton $ 19.50 Annual generation of biosolids (tons) 1.700 Cost without contingency $33,150 Contingencies @ 10% $ 3,315 ANNUAL COST FOR SAN LUIS OBISPO OPTION $ 36,465 Cost per ton $ 27.75 Annual generation of biosolids (tons) 1.700 Cost without contingency $477175 Contingencies @ 10% $ 4,717 ANNUAL COST FOR MERCED COUNTY OPTION $ 51,892 �I�� ��►i�illllll�i° ����U City of San t"_,S OBISpo COUNCIL AGENDA REPORT Biosolids Dis/Rec November 17, 1992 Page 6 Staff estimated that approximately $150,000 would be required to remove existing stockpiles as well as that being generated during the 1992-93 fiscal year. Assuming a worse case scenario of both the stockpiled and generated (short and long-term) biosolids being hauled to Pima Gro's Merced County site, the 1992-93 cost would be $141,525 excluding contingency. Funding for disposal/reclamation of the biosolids has been identified in the 1991-93 Financial Plan, and $150,000 approved funding is available in the 1992-93 Water Reclamation Facility Operating Program Budget (052-5071-008-110). Adequate funding is available to support this disposal/reclamation program. ALTERNATIVES 1. Select another proposal. Staff does not recommend this alternative as some of the other proposals do not adequately address disposal of composted products, have not submitted a cost estimate and/or have higher costs. I 2. Take no action. Staff does not recommend this alternative because.lack of storage sites for accumulating biosolids may hinder efficient operation of the Water Reclamation Facility. Biosolids may also pose a threat to environmental and water quality should heavy rains occur this winter and cause off-site migration of the biosolids. Staff is continuing to pursue other options for long-term disposal/reclamation of the City's biosolids, however these options do not address the immediate need of the City to remove the existing stockpiles from the Water Reclamation facility. Co-composting with yard waste is j being reviewed with the City's Solid Waste Program and may be done in the future on a regional basis with the County. In any event, staff feels the cost provided with the recommended proposal would be far lower than the capital and operating costs of a co- composting program. Additionally, development of a co-composting program would take at least two (2) years to develop, implement and construct. Therefore staff recommends the Council approve the agreement with Pima Gro for a period of two years with an option for at least one additional year. Attachment: Agreement A copy of Pima Gro's proposal is available in the Council Office for review. 7-4 AGREEMENT FOR SLUDGE MANAGEMENT AND DISPOSAL/REUSE SERVICES This agreement is made between: The City of San Luis Obispo hereinafter referred to as the "City AND PIMA GRO SYSTEMS, INC. registered to do business in the State of California, hereinafter referred to as "Contractor". The Contractor agrees to provide sludge management and disposal/reuse services for the City of San Luis Obispo's Water Reclamation Facility located in the City of San Luis Obispo, California. The City is currently stockpiling sludge at it's Water Reclamation Facility. The intent of this agreement is for the contractor to provide an absolutely reliable and continuous sludge removal service during the agreement term. The contractor shall provide all services related to transportation, disposal/reuse, permitting and monitoring of the City's wastewater sludge and the site of application in accordance with all applicable Local, State and Federal requirements. The following specific items are a part of the agreement. 1. SLUDGE VOLUME A. Contractor agrees to accept and remove the entire quantity of sludge currently stockpiled at the City's Water Reclamation Facility, approximately 4,000 cubic yards. B. Contractor agrees to haul up to 100 percent of the sludge being generated by the City's facility, approximately 1,500 cubic yards per year. These quantities are approximations only, based on anaerobically digested sludge dewatered to 50% total solids. 2. PERMITS The Contractor agrees to provide the City with copies of all required approved regulatory permits for hauling and disposal/reuse of the entire quantity of sludge as specified in item 1 above. The contractor agrees to pay all fees associated with permitting. 3. MONITORING AND REPORTING The Contractor agrees to provide all required monitoring and reporting imposed by all regulatory agencies having jurisdiction over the Contractor's disposal/reuse operations, and shall provide the City with copies of all reports involving the City's sludge. In addition the contractor agrees to provide the City with a document for each load of sludge received from the City which is to include the date, time, driver, destination and estimated load volume. The estimated load volume shall be signed by a City representative prior to removing the load from the City's facility. 1 —7' 4. ENVIRONMENTAL The Contractor agrees to provide all necessary capital improvements and operating expenses needed at the disposal/reuse site, to protect surface and groundwaters and the air resources environment per the requirements of the responsible regulatory agencies. The Contractor also agrees to design and operate the hauling and disposal/reuse program for the City's sludge in full compliance with all Federal, State and Local environmental requirements. The Contractor shall provide covers for the trailers to prevent any loss of sludge while being transported from the Water Reclamation Facility to the final point of application. 5. SLUDGE QUALITY The City shall be responsible for providing a sludge of quality acceptable by the California Department of Health Services as a non-hazardous material. In the event that, for any reason, the material supplied by the City is not acceptable under State and Federal guidelines, the City will stockpile that sludge which is not acceptable at its Water Reclamation facility and shall be responsible for the classification of the waste and its subsequent disposal. The City shall be responsible for providing periodic testing of the sludge in accordance with the provisions of the City's NPDES Permit No. CA0049224. The current requirement for sludge monitoring is once annually. In addition, the City performs periodic process control and quality analyses on the sludge treatment process and sludge for internal use. The City shall maintain and make available to the Contractor all documentation related to sludge quality and treatment process for the sludge to be hauled by the Contractor. 6. SLUDGE LOADING A. The contractor shall provide sufficient trailers, loaders and equipment operators to remove the currently stockpiled sludge within a 6 month time frame. Contractor will be responsible for loading all sludge currently stockpiled at the Water Reclamation Facility. B. The contractor shall provide sufficient trailers, loaders and equipment operators to remove the sludge being continuously generated at least quarterly. 7. LOAD WEIGHT The Contractor shall be responsible for insuring that each trailer is loaded to the proper weight for hauling the sludge. The contractor shall be responsible for periodically checking the load weight and shall be responsible for and pay any and all expenses incurred due to an overloaded trailer and all traffic violations incurred as a result of hauling operations. 8. SCHEDULE The Contractor will provide a sufficient number of trailers and a pickup frequency sufficient to handle the sludge volume at all times. The Contractor shall develop a mutually agreeable schedule based on accommodating the City's sludge production schedule and the requirements of the Contractor's disposal/reuse.site and haul routes. 2 7-8 9. LICENSING The Contractor shall be responsible for insuring that all equipment utilized in connection with this contract shall be fully licensed to operate in the State of California and all public highway drivers and operators of such equipment shall be fully licensed by the State of California Department of Motor Vehicles. 10. INSURANCE The Contractor shall secure and maintain in force throughout the duration of the contract all insurance as required, and shall also provide all endorsements of such insurance as identified in the attached Exhibit 1. 11. PROJECT START-UP The Contractor shall begin hauling sludge to the proposed discharge area within 30 days following notice to proceed. 12. SITE INSPECTION The Contractor shall provide access to the disposal/reuse site to City representatives upon request of the City. 13. INCLEMENT WEATHER There may be times during the year due to inclement weather where it will be impossible to load the trailers or haul sludge. The Contractor and the City shall mutually modify the haul schedule to make up for lost sludge removal time and avoid excessive stockpiling of sludge on City properties. 14. DISPOSAL SITE AND OPERATIONS The Contractor shall provide sufficient facilities (land) to accommodate 150 percent of the total anticipated amount of the sludge to be disposed/reclaimed during the contract period. The Contractor shall also be responsible for furnishing all equipment, labor and materials required for the Contractor's disposal/reuse operations. 15. AGREEMENT TERM Two years from the date of execution of the agreement (with option for at least one additional year). 16. PAYMENT The Contractor shall be paid by the City for completed work and services rendered under this agreement as follows: a. Payment shall be made on a basis of $19.50 per ton of sludge hauled from the City's facility to Pima Gro's San Luis Obispo County site and $27.75 per ton of sludge hauled to Pima Gro's Merced County site. 3 b. The Contractor may submit vouchers to the City once per month during the progress of the work. Such vouchers will be checked by the City and upon approval thereof, payment will be made to the Contractor in the amount approved. C. Final payment of any balance due the Contractor of the total contract price earned will be made promptly by the City upon its ascertainment and verification by the City after the completion of the work under this agreement and its acceptance by the City. d. Payment as provided in this section shall be full compensation for work performed, services rendered and for all materials, supplies, equipment and incidentals necessary to complete the work. e. The Contractor's records and accounts pertaining to this agreement are to be kept available for inspection by representatives of the City and State for a period of three (3) years after final payments. Copies shall be made available upon request. f. The San Luis Obispo County site is the primary site - removal of biosolids to the Merced County site shall be on approval of the Utilities Director. 17. COMPLIANCE WITH LAWS The Contractor shall, in performing the services contemplated by this agreement, faithfully observe and comply with all Federal, State, and local laws, ordinances and regulations applicable to the services to be rendered under this agreement. 18. INDEMNIFICATION Contractor agrees to defend, indemnify, protect and hold City and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. 19. DISCRIMINATION PROHIBITED The Contractor, with regard to the work performed by it under this agreement, will not discriminate on the grounds of race, color, national origin, religion, creed, age, sex, or the presence of any physical or sensory handicap in the selection and retention of employees or procurement of materials or supplies. 20. ASSIGNMENT The Contractor shall not sublet or assign any of the services covered by this agreement without the express written consent of the City. 4 �D 21. NON-WAIVER Waiver by the City of any provision of this agreement or any time limitation provided for in this agreement shall not constitute a waiver of any other provision. 22. TERMINATION a. The City reserves the right to terminate this agreement at any time by giving ten (10) days written notice to the contractor. b. In the event of the death of a member, partner or officer of the contractor, or any of its supervisory personnel assigned to the project, the surviving members of the contractor hereby agree to complete the work under the terms of this agreement, if requested to do so by the City. This section shall not be a bar to renegotiations of this agreement between the surviving members of the contractor and the City, if the City so chooses. 23. NOTICES Notices to the City of San Luis Obispo shall be sent to the following address: City of San Luis Obispo Utilities Department 955 Morro Street San Luis Obispo, CA 93401 Notices to the contractor shall be sent to the following address: Pima Gro Systems, Inc. P.O. Box 7547 Redlands, CA 92375-0547 24. INTEGRATED AGREEMENT This agreement together with attachments or addenda, represents the entire and integrated agreement between the City and the contractor and supersedes all prior negotiations, representations, or agreements written or oral. However, the proposal submitted by the contractor and related documents establish the background and framework in which the contract was prepared and do set forth the expectations of each party to the contract. This agreement may be amended only by written instrument signed by both the City and Contractor. • . DATED this day of 1992. CITY OF SAN LUIS OBISPO CONTRACTOR City Administrative Officer Attest: Diane Gladwell, City Clerk 5