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HomeMy WebLinkAbout11/15/1994, C-3 - AMENDMENT NO. 1 TO AGREEMENT WITH PIMA GRO SYSTEMS, INC. FOR WASTEWATER SLUDGE (BIOSOLIDS) MANAGEMENT AND DISPOSAL/RECLAMATION OF THE CITY'S BIOSOLIDS. pp I�I Luis DATE: VI ��II� IUUIu city Of sm Luis OBISPO November 15, 1994 of j COUNCIL AGENDA REPORT NUMBER _ FROM: John E. Moss Prepared By: David C. Hix Utilities Dire Industrial Waste Coordinator SUBJECT: Amendment No. 1 to Agreement with Pima Gro Systems, Inc. for wastewater sludge (biosolids) management and disposal/reclamation of the City's biosolids. CAO RECOMNIENDATION: By motion, amend the Agreement with Pima Gro Systems Inc. (contractor) for management and disposal/reclamation of the City's biosolids for an additional year. Authorize Mayor to execute amendment with contractor subject to the following terms: a. Cost for services will be $27.75 per ton biosolids removed to a facility in Fresno or Merced County and/or $19.50 per ton biosolids removed to a facility in San Luis Obispo County when permitted. b. Biosolids will be hauled and applied to permitted farmland(s) in compliance with applicable rules and regulations. C. Contract duration of one year. DISCUSSION: During the past two years the City has contracted with Pima Gro Systems Inc., to land apply the Water Reclamation Facility's (WRF) biosolids. Pima Gro has hauled and land applied approximately 6,000 tons of the City's biosolids over the past two years to permitted agricultural land in Merced and Fresno Counties. The City's contract with Pima Gro has an option for at least a one year extension. One.element of Pima Gro's contract is to pursue a biosolids reclamation site in San Luis Obispo County. The site would provide a savings of $8.25/ton and offers a more sensible alternative to hauling out of the county. Last year Pima Gro submitted a permit application to the California Regional Water Quality Control Board (CRWQCB), but several problems with requirements have slowed permitting. Pima Gro is worldng expediently to attain a permit in the County, but have been held up due to the CRWQCB's stringent permit requirements. C�3-� city of San IDIS OBISPO COUNCIL AGENDA REPORT Btosolids Dis/Rec October 24, 1994 Page 2 Pima Gro has provided the City with a high level of service and professionalism at a very competitive price. Staff feels that Pima Gro is committed to obtaining a San Luis Obispo County facility which will offer the best long term price for responsible biosolids reclamation. Problems with the CRWQCB's requirements should be worked out in the future and a San Luis Obispo County facility should be operating soon. FISCAL EMPACT The identified cost for biosolids disposal at 27.75/ton for 1994-95 is $137,000, adequate funds have been budgeted and are available in the Water Reclamation Facility Budget. Staff budgeted $137,000 for 1994-95 to have all annually generated biosolids and some biosolids which have been stored from the past two years to be hauled. Because start-up operations at the WRF have made estimating biosolids production difficult, staff feels that some savings may be seen in the future because of more stable biosolids production and fine tuned operations at the WRF. Additionally, as stated earlier, continued efforts with Pima Gro and the CRWQCB should yield a local reuse site within the requested period of contract extension and offer additional significant ongoing savings. ALTERNATIVES 1. Solicit new bids. Staff does not recommend this alternative because Pima Gro has provided competitive prices with excellent service. Staff does not believe that better prices and/or service can be secured by soliciting new bids. 2. Land apply biosolids on City owned properties. Staff does not recommend this alternative because lack of adequate acreage would only allow a small portion of the City's biosolids to be applied. Land applying on City property would also require a permit from the CRWQCB and include costs for the permit fee, hauling, application, monitoring, laboratory analysis and reporting. Staff believes that it would cost more to land apply on City property then to have Pima Gro haul the City's biosolids. All these items are included in Pima Gro's contract. Land application to City owned property is also contrary to instructions from Council in March, 1992, where staff was directed to pursue other methods of disposal. 3. Co-composting with yard waste. Staff does not.recommend this alternative because large amounts of additional staff time would be needed to implement a composting program and currently the City lacks an appropriate site. Costs for a contractor to operate a composting operation for the City are unknown but may be somewhat C 3-oZ city of San LUIS osIspo AWirms COUNCIL AGENDA REPORT Biosolids Dis/Rec October 24, 1994 Page 3 higher. Currently the City of Santa Maria has hired a contractor to compost biosolids from their Wastewater Treatment Plant at $29.00/ton. Additional costs for disposal may also be encountered if the composted biosolids can not be given away or effectively marketed. Attachment: Amendment Agreement A copy of Pima Gro's proposal is available,in the Council Office for review. X33 AMENDMENT NO. 1 AGREEMENT FOR SLUDGE MANAGEMENT AND DISPOSAL/REUSE SERVICES BETWEEN CITY OF SAN LUIS OBISPO AND PIMA GRO SYSTEMS, INC. THIS AMENDMENT NO. 1, entered into this day of November, 1994, by and between the City of San Luis Obispo (herein referred to as CITY) and Pima Gro Systems, Inc. (herein referred to as CONTRACTOR), provides for changes to the CONTRACTOR Agreement dated November 30, 1992, as follows: WITNESSETH WHEREAS, CONTRACTOR was hired by the City to land apply the Water Reclamation Facility's biosolids to agricultural land in Fresno and Merced Counties; WHEREAS, CONTRACTOR is working expediently to attain a permit to obtain a biosolids reclamation site in San Luis Obispo County providing a cost savings and alternative to hauling out of the County through the California Regional Water Quality Control Board; WHEREAS, CONTRACTOR has provided the City with a high level of service and professionalism at a very competitive price; NOW, THEREFORE, in consideration of their mutual covenants the parties hereto agree as follows: 1. Cost for services will be $27.75 per ton biosolids removed to a facility in Fresno or Merced County and/or$19.50 per ton biosolids removed to a facility in San Luis Obispo County when permitted. 2. Biosolids will be hauled and applied to permitted farmland(s) in compliance with applicable rules and regulations. 3. Contract duration of one year. 4. All other terms and conditions of the "Agreement for Sludge Management and Disposal/Reuse Services" (A-84-92-CC), dated November 30, 1992 shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT on the year and date first written above. CITY OF SAN LUIS OBISPO PIMA GRO SYSTEMS, INC. By: ATTEST: Approved As to Form: City Clerk Att ey A-84-92—CC _ AGREEMENT FOR SLUDGE MANAGEMENT AND DISPOSALIREUSE 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. i 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 sh1ill provide all services related to transportation, disposal/reuse, permitting and monitoringof the City's wastewater sludge and the site of application in accordance with all applicable Local, State and Federal requirements. The following speck 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 Fau'l'ty, 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 hem 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 disposallreuse operations, and shall provide the ON 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 ' A-84-92—CC �3 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. S. SLUDGE QUALITY I 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. S. 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 incurted 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 ' -3-1A 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 �-3-7 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. t 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. 1 4 j4- .3 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 754.7 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 30th day of November 1992. errTITFITANnBISPO CONTRACTOR City A ministrative Officer President Pima Gro Systems.. Inc. Att D' ladwell, City Cle 5 C'-3-9 EXHIBIT 1 INSURANCE REQUIREMENTS FOR CONTRACTORS Contractor shall prooure.and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, his agents, represems•,ives, employees or subcontractors. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. kisurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2 Insurance Services Office form number CA=1 (Ed. 1/67) covering Automobile Liability, Code 1 (any auto). 3. Workers'Compensation insurance as required by the State of California and Employer's Liability Insurance. Knimum Limits of insurance 1 Contractor shall maintain limits no less than: 1. General UabTty. S1,=,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used,either the general aggregate limit shag apply separately to this projer../loca;ion or the general aggregate limit shall be twice the required occurrence Emit 2 Automobile Liability! $1,000.000 per accident for bodily injury and property damage. 3. Employer's Uabilidy.1== per accident for bodily injury or disease. Deductible and Ser-Insured Retentions Any deductibles or ser-insured retentions must be declared to and approved by the City. At the option of the City, either. the insurer shag reduce or eliminate such deductibles or ser-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability and automobile Eabgfty policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor, premises owned, occupied or used by the Contractor, or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shag contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers. 2 For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents or volunteers. Any insurance or ser-insurance maintained by the City, its officers, officials, employees, agoras or volunteers shag be excess of the Contractor's insurance and shag not contribute with IL 3. Any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect Coverage provided to the City, its officers, officials,employees, agents or volunteers. , 4. The Contractor's insurance shag apply separately to each Insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's fiabiThy. S. Each insurance policy required by this clause shall be endorsed to state that coverage shag not be suspended, voided, Cancelled by either party, reduced In coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. Aeceotabifrty of Insurers Insurance is to be placed with insurers with a Current Ahf. best's rating of no less than AVIL Verification of Coverage Contractor shat)furnish the City with a certificate of Insurance showing required coverage. Original endorsements effecting general liability and automobile liability coverage are also required by this Caluse. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the t City before work Commences. Subcontractors Conti or shag include all subconuaetos as insured under its polices or shall furnish separate certificates and endorsements for each subcontractor. All Coverages for subcontractors shall be subject to all of the requirements Stated herein.