Loading...
HomeMy WebLinkAbout05/06/2003, C8 - AMENDMENT TO AGREEMENT WITH ENGEL AND GRAY, INC., FOR MANAGEMENT AND DISPOSAL/BENEFICIAL REUSE OF T council May 6, 2003 acEnaa Repoat C I TY OF SAN L U IS OBISPO FROM: John Moss,Utilities Director��" Prepared By: David Hix,Wastewater Div ion Manager SUBJECT: AMENDMENT TO AGREEMENT WITH ENGEL AND GRAY, INC., FOR MANAGEMENT AND DISPOSALBENEFICIAL REUSE OF THE CITY'S BIOSOLIDS CAO RECOMMENDATION Approve an amendment to the agreement with Engel and Gray, Inc. (contractor), for management and disposal/beneficial reuse of the City's Biosolids for an additional two years. Authorize Mayor to execute amendment with contractor subject to the following terms: 1. Cost of services will be $30.74 per ton biosolids removed from the Water Reclamation Facility. 2. Second year of agreement may not be increased by more than the consumer price index. 3. Contract duration of two years. DISCUSSION During the past two years the City has contracted with Engel and Gray, Inc., to compost the Water Reclamation Facility's (WRF) biosolids at its permitted composting facility in Santa Maria. Engel and Gray loads and hauls the biosolids from the WRF where they are mixed with green waste, composted, and then sold to agricultural operations or in bulk quantities. Currently the cost is $29.70 per ton. In November 2000 the City advertised a Request for Proposals (RFP) for Management and Disposal/Beneficial Reuse of Biosolids and received 5 proposals. Engel and Gray submitted the second lowest qualified proposal and was selected by the City Council in April of 2001 because of the composting component of the proposal and their facility being locally based in Santa Maria. The composting of the City's biosolids by Engel and Gray provides further treatment of the City's biosolids, producing the highest quality of material for beneficial reuse. Engel and Gray has provided excellent, individualized service by hauling more often than past contactors, which has .allowed operations staff to dedicate more time to operations and maintenance of the WRF. The more frequent and flexible hauling provided by Engel and Gray is an important advantage over past biosolids contractors and has significantly enhanced operations and maintenance at the WRF. Engel and Gray's agreement will expire in May of this year. City staff is very pleased with the service being provided and believe extending this agreement will preserve the high service level while offering the City a competitive price for biosolids reclamation. The City's agreement for C8- � 11 Council Agenda Report—Biolsolids Services Contract Amendment Page 2 biolsolids services allows for two, one-year extensions of the contract, but staff is recommending a contract extension of two years because of the excellent service and competitive price. Engel and Gray is requesting a 3.5% increase in the cost per ton based upon the Consumer Price Index (CPI- U) which would increase the cost to $30.74 per ton. This increase is allowed in the City's current agreement. Staff feels that Engel and Gray is committed to continuing its high level of service and competitive prices. Currently there is no other locally permitted facility that can perform the same level of service as Engel and Gray and it is not known when the County will adopt an ordinance addressing land application of biolsolids within San Luis Obispo County. A brief regulatory update regarding local biosolids regulations is provided below. Regulatory Update San Luis Obispo County Environmental Health is currently developing an interim biosolids ordinance that would essentially prohibit land application of biosolids, except for amounts that have been historically applied in the County, until the development and adoption of a permanent ordinance. The interim ordinance offers some County control over biosolids projects prior to development and adoption of a permanent ordinance. This interim ordinance should be adopted by the Board of Supervisors sometime in the summer of 2003. The permanent biosolids ordinance for San Luis Obispo County will be based upon the recommendation of the San Luis Obispo County biosolids task force (working group). This group met 20 times over 20 months in 2000 and 2001 and prepared six primary recommendations for the San Luis Obispo County Board of Supervisors regarding oversight, management and disposition of land application of biosolids in San Luis Obispo County. Several speakers and experts presented information to the task force and issues were considered and adopted on a majority vote basis. In addition to the six primary recommendations, several additional recommendations were also presented by the task force that should be considered when developing an ordinance. The six primary recommendations are listed below: 1. Create a local ordinance establishing more stringent requirements for quality of acceptable biosolids material, as well as local control and oversight of how, when and where biosolids may be applied. A public education campaign would be implemented concurrently. 2. Local standards for sewage sludge quality shall be derived from but not limited to state and federal regulations. 3. San Luis Obispo County should adopt a sewage sludge land application ordinance using pollution accumulation limits, considering local soil pollutant levels. 4. San Luis Obispo County should incorporate into an ordinance a comprehensive set of constituents including heavy metals, synthetic chemicals, pathogens and other pollutants ce j/ Council Agenda Report—Biolsolids Services Contract Amendment Page 3 not limited to those in current state and federal standards, for setting sewage sludge quality and land accumulation limits. 5. The County should establish a limit on accepting or processing new land application projects for treated sludge beyond historical amounts of exceptional quality (EQ) treated sewage sludge until completion of the local ordinance to control and regulate land application of treated sludge. 6. In developing an ordinance San Luis Obispo County should consider all feasible methods of treated sewage sludge/biosolids management and their relative impacts. The task force included members of the environmental community, wastewater treatment plants, citizens, biosolids companies, and other regulatory agencies. The task force's recommendations have been presented to other County advisory bodies in spring of 2002, and were later presented to the San Luis Obispo County Board of Supervisors. At that time it was decided that an interim ordinance should be adopted while development of the final ordinance is underway.. Both of the ordinances have suffered significant delays due to County staffing shortages and reprioritization of other projects. City staff continue to work with the County on these issues and has encouraged the County to develop and adopt these ordinances in the shortest time possible. The City currently produces a biosolids product that is considered EQ in all constituents with the exception of pathogens. Contracting with Engel and Gray for composting of the City's biosolids produces a product that is considered EQ, or the highest quality, under current regulations for all constituents, including pathogens. FISCAL UAPACT The annual costs for biosolids disposal in the Water Reclamation Facility's 2002-03 operating budget is $120,000 and is adequate for the remaining portion of the fiscal year. The proposed 2003- 05 WRF operating budget has identified $100,000 annually for biolsolids disposal. Staff believes this reduced amount should provide adequate funding for the WRF's annual biosolids disposal. . ALTERNATIVES 1. Solicit new proposals. Staff does not recommend this alternative because Engel and Gray has provided excellent service at competitive prices. Staff does not believe that better service or prices can be secured by soliciting new proposal. Attachments 1. Amendment to Agreement 2. Copy of original Agreement Attachment 1 AMENDMENT TO AGREEMENT THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on this day of ,by and between the CITY OF SAN LUIS OBISPO,a municipal corporation,herein after referred to as City,and Engel and Gray,Inc. hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on May 14, 2001 the City entered into an Agreement with Contractor for management and disposal/beneficial reuse of biosolids,specification No.90179;and WHEREAS, the City desires to amend the scope of services to extend the agreement for two additional years and Contractor has submitted a proposal for this purpose that is acceptable to the City. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained,the parties hereto agree as follows: 1. The scope of services and related compensation is hereby amended as set forth in Exhibit A attached hereto. 2. All other terms and conditions of the Agreement remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above. ATTEST: CITY OF SAN LUIS OBISPO By: City Clerk Lee Price Mayor David F.Romero APPROVED AS TO FORM: CONTRACTOR By: nCity Attorney Gilbert A.Trujillo Robert Engel Exhibit A Exhibit A Scope of services and related compensation for amendment to agreement between the City of San Luis Obispo and Engel and Gray,Inc.,for management and disposallreuse of biosolids 1. Cost of services will be$30.74 per ton biosolids removed from the Water Reclamation Facility. 2. Second year of agreement may not be increased by more than the consumer price index. 3. Contract duration of two years. Attachment 2 AGREEMENT -VHIS AGREEMENT is made and entered into in the City of San Luis Obispo on this day of 0o f by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and Engel and Gray Inc., hereinafter referred to as Contractor. WITNESSETH: WHEREAS, on November 9, 2000, City invited requested proposals for management and disposallbeneftcial reuse of biosolids per Specification No. 90179. WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said services. NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained,the parties hereto agree as follows:. 1. TERM. The term of this Agreement shall be from the date this Agreement is made and entered, as first written above, for a period of two vears, with a possibility of two—one year extensions as mutually agreed. 2. INCORPORATION BY REFERENCE. City Specification No. 90179 and Contractor's proposal dated December 20, 2000, are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Contractor shall receive therefore payments based upon actual quantities hauled and disposed/bcneficially reused as specified in this proposal. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by this agreement and provide services as described in Exhibit A attached hereto and incorporated into this Agreement. 5. AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Administrative Officer, or designee. .� Attachment 2 6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto.. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City Utilities Director City of San Luis Obispo 8879 Morro Street San Luis Obispo,CA 93401 Contractor Engel and Gray,Inc. P.O. Box 5020 Santa Maria,CA 93456-5020 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such parry. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written. ATTEST: CITY OF SAN LUIS OBISPO A Municipal Corporation >�.. Bv: .i City k Mayo — G APPROVED AS TO FORM: CONTRACTOR By: ity m Robert Engel ffiIBIT A Attachment 2 1 proposed compensation on a cost per ton basis. Cost per ton $ 29.70/ton This cost will cover the loading, transportation, composting and testing of the material. M. Any other information that would assist us in making this contract award decision and/or recommended modifications to The scope of work that the proposer feels would be desirable. As was stated earlier in this proposal Engel & Gray will be taking the material and combining it with other organic feedstock and composting it. One of the obvious advantages to composting this material is the end product and all of its benefits. We would propose to offer a portion the finished product back to the City of San Luis Obispo. The cost of the composted product would be $19/ton plus delivery. We feel this exemplifies the total recycling program and would further enhance a mutually beneficial relationship between The City of San Luis Obispo and Engel & Gray, Inc. n. The proposers are required to provide a guaranteed price per ton to satisfy all of the requirements specified herein. For purposes of evaluating the proposals,a zero inflation rate will be assumed during the life of the contract. Engel & Gray, Inc. acknowledges this facet of the contract. o. The proposer shall list and provide specifications of all proposed equipment to be assigned to this project. Case 621 or Cat 966 wheel loader Three axle truck tractors 1984 or newer Semi-end dumps with 36 yard capacity or greater, sealed gates, moisture tight p. The proposer shall provide all regulatory permits required to implement the proposed disposal/beneficial reuse plan. All permits shall be approved by the applicable regulatory agency. Permits currently pending approval by the appropriate regulatory agencies may be considered assuming the proposer can demonstrate to the satisfaction of the City that the permits will be obtained in a manner that will not impact the time constraints of the project. All required permits will be required prior to contract approval. Please see enclosed copies of permits and/or certificates. city clerk memorandum Date: May 5,2003 To: Council Members From: Julie O'Connor Subject. Item C8, May 6, 2003 Council Meeting The complete proposal in reference to the original agreement, dated May 24, 2001, with Engel & Gray, Inc. is in the Council Reading File for your review.