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HomeMy WebLinkAbout11/09/2010, B4 - BIOSOLIDS REUSE CONTRACT AND RESOLUTION OF SUPPORT council D� 11-9-10 j agenda Report CITY OF SAN LUIS OBISPO FROM:. Carrie Mattingly, Utilities Directo Prepared By: David Hix, Wastewater Division Manajg SUBJECT: BIOSOLIDS REUSE CONTRACT AND RESOLUTION OF SUPPORT RECOMMENDATION 1. Approve Amendment No. 1 of the agreement with Engel and Gray, Inc., for biosolids services and authorize the Mayor to execute the agreement. 2. Adopt a Resolution establishing Council support for the beneficial use of biosolids within the County and City of San Luis Obispo. DISCUSSION Background The City's Water Reclamation Facility(WRF)treats approximately 4.5 million gallons per day of wastewater. During treatment, solids are removed from the wastewater and are placed in large heated tanks called digesters that stabilize organic matter and destroy pathogens. The treated solids are called biosolids and the City generates approximately 2,000 to 3,000 tons annually. Biosolids are graded based on three Federal and State standards: pollutants, vector attraction, and pathogen reduction. Exceptional Quality (or EQ) biosolids meet the most stringent of these requirements. The City's biosolids meet two of the three EQ standards for pollutants and vector attraction. The regulated pollutants include heavy metals, dioxin, and PCB's. The vector attraction requirement ensures the reduction and stabilization of organic matter so the biosolids won't attract vectors such as flies and other pests that may spread disease. While the process in the digesters significantly destroys the pathogens in the solids and is a State and Federally recognized method for pathogen reduction, further pathogen reduction is required to meet complete EQ standards. During the last nine years the City has been contracting with Engel and Grey, Inc. to haul, compost, and distribute the WRF's biosolids..Currently Engel and Gray, Inc., haul the City's biosolids from the WRF to its facility in Santa Maria where the biosolids are composted. Composting is an approved method that achieves the highest level of pathogen destruction to achieve EQ status. The City continues to examine process upgrades to achieve EQ biosolids, but capital and operational costs, and the fact that the biosolids still need to be hauled off-site, currently makes contracting for these services more cost effective than upgrading the processes. B4-1 Biosolids Reuse Agreement and Resolution Page 2 Regulatory Update Concern over a 1998 proposal to utilize biosolids as a soil amendment near San Miguel led the County Health Commission to form a task force to explore wastewater treatment and disposal issues related to biosolids. Questions from the task force led the San Luis Obispo County Board of Supervisors (Board of Supervisors) to assemble a working group in February 2000 to consider options for managing land application of biosolids. The working group recommended creation of a county ordinance that provided local oversight and more stringent requirements than existing State and Federal regulations. On March 2002, the Board of Supervisors directed County Environmental Health to draft a local ordinance based on the recommendations from the working group. In order to comply with Board direction, an interim ordinance was drafted to limit the acceptance or processing of new projects proposing land-application composting of biosolids. In September of 2004, the Board of Supervisors adopted the interim biosolids ordinance that limited the land application of biosolids to amounts that were historically applied in the county. This interim ordinance was adopted as a placeholder until a permanent ordinance could be developed and approved. In April 2009 the Board of Supervisors decided to defer the permanent ordinance after it was determined the environmental review would cost $200,000 and on February 23, 2010 the interim ordinance was extended for four years. County staff has indicated they are planning to have a permanent ordinance adopted by late 2012 or early 2013. Since 2009, staff from the City, county, and local agencies has been working on drafting language for a permanent countywide biosolids ordinance that is protective, utilizes existing regulations, streamlines the use of compost, and contains reasonable regulatory language. Within this last year, in alignment with Council's legislative platform, City staff has provided comments and language for the County's Conservation and Open Space Element and the Agricultural Grading Ordinance to ensure biosolids and biosolids compost may be used where appropriate and beneficial. Beneficial reuse is the management and utilization of biosolids to recover their resource value. When land applied, biosolids have been shown to improve soil productivity, increase water holding capacity, and provide essential plant nutrients. Currently, the interim ordinance limits the beneficial reuse of EQ biosolids countywide to 1,500 cubic yards annually within the unincorporated areas of the county and requires notification to County Environmental Health for use of more than 5 yards. While the current interum ordinance does not limit the use of biosolids within City limits, it severely limits and discourages its use within the unincorporated areas of the County. This limitation discourages the establishment of a local composting facility and/or the beneficial reuse of local biosolids in San Luis Obispo County, forcing local agencies to trick their material out of the county for beneficial reuse. Depending on the final outcome of the permanent biosolids ordinance and due to the length of time it would most likely take to get a biosolids composting facility operating in San Luis Obispo County after the adoption of the permanent ordinance, staff does not anticipate there will be a B4-2 Biosolids Reuse Agreement and Resolution Page 3 composting facility closer than Santa Maria before the expiration of the proposed five-year Amendment No. 1 to the Engel and Gray, Inc. agreement currently before Council. Composting the City's Biosolids Engel and Gray, Inc. has been hauling and composting the City's Biosolids at its Santa Maria facility for the last 9 years. Biosolids and greenwaste are blended in specific ratios and methodically turned and analyzed to ensure 1) Federal and State standards are met for EQ pathogen reduction and 2) the company's criteria is met for a marketable and superior compost product. The composted product, known as "Harvest Blend' is sold in bulk at garden centers and is widely used at a variety of locations, including some City facilities. Engel and Gray, Inc.'s facility is permitted with the Central Coast Regional Water Quality Control Board (RWQCB) and County of Santa Barbara. Monthly inspections since 1995 have resulted in no violations being issued to the facility. In 2005 staff performed a site visit to the Engel and Grey, Inc., facility in Santa Maria and was impressed by the company's investment in, commitment, and dedication to composting and environmental compliance.. Council originally selected Engel and Gray, Inc. through a competitive purchasing process in May of 2001 and in 2005 approved a five year sole-source agreement with the option of one five- year extension. While the current agreement authorizes the City Manager to approve the proposed amendment, staff is bringing this amendment to Council to support and provide background to the regulatory update and proposed Resolution supporting the beneficial reuse of biosolids. Staff is recommending Council approve the five year extension with Engel and Gray, Inc. at this time. While there are other composting facilities in the state, Engel and Gray, Inc„ has a strong environmental compliance record and is the only locally permitted facility that offers a high level of responsive customer service such as frequent hauling that offers the City operational flexibility. Based in Santa Maria, Engel and Gray, Inc. is the only "local" option with close proximity that significantly reduced road time for trucking. Presently the City is paying a base rate and fuel surcharge for a total cost of$42.96 per ton of biosolids removed from the WRF. The City has satisfactorily sole-sourced Biosolids hauling and composting with Engel and Grey, Inc. for the last five years. Engel and Gray, Inc. has submitted a letter agreeing to the same terms and conditions of the current agreement (Attachment 1). The agreement features: 1. Frequent hauling that reduces City staff time related to biosolids handling and provides operational flexibility(Attachment 2). 2. A formula that includes a reasonable base rate of$35.80 and provides for an annual Consumer Price Index (CPI) adjustment and a fuel surcharge all of which ensures a reasonable profit for the contractor and a reasonable rate for the City. Attachment 3 is an example of the how the current base rate and diesel surcharge have been used to calculate the most recent price per ton cost. B4-3 Biosolids Reuse Agreement and Resolution Page 4 Because of Engel and Gray, Inc.'s expertise in composting biosolids, compliance history, excellent service, competitive pricing, and a lack of comparable local options, staff recommends approval of Amendment No. 1 to the agreement with Engel and Gray, Inc. Other Agencies Following is biosolids handling information from other agencies in San Luis Obispo County. Cambria — $42.70/ton. Biosolids are hauled by McCarthy Farms in the San Joaquin Valley, composted, and then marketed for a variety of uses. City of Morro Bay - $42.90/ton. Biosolids are hauled by McCarthy Farms in the San Joaquin Valley, composted, and then marketed for a variety of uses. South San Luis Obispo Sanitary District (SSLOSD) - $37.53/ton. Biosolids are hauled by Liberty Composting to the San Joaquin Valley, composted, and then marketed for a variety of uses. SSLOSD is in the process of going out to bid. City of Paso Robles — $6.90/ton. Biosolids are hauled to the City-owned landfill and used as alternative daily cover. California Men's Colony - $46.96/ton. Biosolids are hauled by McCarthy Farms in the San Joaquin Valley, composted, and then marketed for a variety of uses. Resolution Reusing and/or managing City materials in a cost effective and beneficial manner helps fulfill many important City work efforts, including recycling, waste minimization, sustainability, and energy conservation. It is consistent with and fulfills General Plan goals. Policy B3.2.3 of the City's recently updated Water and Wastewater Element of the General Plan indicates that the City will pursue treatment and disposal methods which provide for further beneficial use of wastewater and biosolids. Conservation and Open Space Element (COSE) policy 4.3.3 directs the City to continue to identify energy efficiency improvement measures. COSE Program 5.5.2E specifies that the City will foster reuse and recycling by producing biosolids suitable for land application as an agricultural fertilizer or soil amendment, under scientific and health-based criteria. Approximately 100 to 150 truck trips are required annually to haul the City's biosolids to Santa Maria for composting, with the majority of the trucks traveling to San Luis Obispo empty. Use of composted biosolids can help reduce water use, improve soil structure, and, depending on the soil composition, can reduce the use of synthetic fertilizers. Parks staff has used biosolids compost for several years and is supportive of its use in the City's parks. Included in this report is a proposed Resolution (Attachment 4) that supports the use of composted biosolids at City parks and facilities where appropriate and supports a permanent, countywide biosolids ordinance that is protective of the environment and reasonable for the agencies and users. It is aligned with the Council's legislative platform supporting County development of a local ordinance. This Resolution will assist in formally memorializing the B4-4 Biosolids Reuse Agreement and Resolution Page 5 City's dedication to the ongoing beneficial use of biosolids and will be utilized by staff in its efforts with the County to adopt a reasonable and protective permanent biosolids ordinance countywide. CONCURRENCES The Public Works, Parks Maintenance Division, Parks and Recreation, and Community Development Departments concur with the recommendations in the report. The Utilities and Public Works Departments will update the Parks and Recreation Commission at its January meeting regarding biosolids compost use at City parks. FISCAL IMPACT A total of$137,000 has been budgeted in the Water Reclamation Facility's 2010-11 operating budget for biosolids disposal and is adequate for this fiscal year. Adequate funding will be included in future financial plans to cover contract costs. There is no fiscal impact associated with approval of the Resolution. ALTERNATIVES Solicit new proposals. Although this five year extension was an approved option in 2005, Council could choose to direct staff to solicit new proposals for these services. Council should only choose this alternative if it feels current service provided by Engel & Gray, Inc. is not satisfactory. Staff is satisfied with the level and quality of service provided by Engel and Gray, Inc. and believes the community receives good value for the cost of service and therefore does not recommend this alternative. Do not adopt the Resolution. Council should choose this alternative if it desires to change its legislative platform regarding the beneficial reuse of biosolids. The City's 2009 legislative platform includes language supporting a local biosolids ordinance and the support of legislation supporting the reuse of EQ biosolids. Memorializing, by Resolution, Council's support specific to the use of composted biosolids and a local ordinance will benefit the City in its on-going efforts with the County; therefore staff does not recommend this alternative. ATTACHMENTS 1. Amendment to Agreement No.1 2. Original Agreement 3. Current Base Rate and Diesel Surcharge Example 4. Resolution B4-5 Attachment 1 AMENDMENT TO AGREEMENT NO. 1 THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on 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 December 20, 2005, the City entered into an Agreement with Contractor for management and beneficial reuse of biosolids and WHEREAS, pursuant to contractor's letter dated September 13, 2010 (attached as exhibit A) Contractor offered to extend the Agreement to December 20,2010,under the same terms and conditions, WHEREAS,the City desires to accept contractor's offer NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained,the parties hereto agree as follows: I. The parties hereby agree to modify paragraph I of the Agreement to extend the term to December 20,2015. 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 Mayor APPROVED AS TO FORM: CONTRACTOR By: City Attomey B4-6 Attachment 1 Exhibit A ENGEL & GRAY, INC. 745 W. Betteravia Rd P.O. Box 5020 Santa Maria, CA 93456 Phone: (805) 925-2771 '' Fax: (805) 925-8023 September 13, 2010 Dave Hix Wastewater Division Manager City of San Luis Obispo 879 Morro Street San Luis Obispo, Ca., 93401 Dear Mr Hix, It has been great working with the City of San Luis Obispo over the last 10 years recycling the City's biosolids for beneficial reuse. As you know the contract is up for renewal in December and has an option for a five year extension. Engel& Gray, Inc. would like to propose that the agreement be extended for five years under the same terms and conditions. Engel& Gray,Inc. values the Public/Private partnership that we have had with the City and would like to build on this relationship with increased beneficial reuse of the quality compost we produce. One of the challenges we have as a Compost manufacturer, is to encourage compost use. This is usually tied to lack of education on the benefits compost brings to our soil and environment. With this goal in mind we would like the opportunity to work with the City's parks department to encourage the use of our Harvest Blend Compost in their projects. We would also like to work in getting purchasing and public works departments to specify compost such as Harvest Blend Compost. We would be glad to make a presentation to City staff at any time on the benefits of Compost and more specifically Harvest Blend Compost. We appreciate the City of San Luis Obispo's commitment to"Completing the Cycle"through the composting of biosolids. If you have any questions, or would like to discuss any aspect of our service please let us know and we will be glad to sit down with you. Thank you for the opportunity to work with the City of San Luis Obispo and we look forward to the next five years. Sincerely, Robert Engel Vice President P:\WP51\SHARED\FA%FORM B4-7 _ Attachment 1 Engel& Gray, Inc. Regional Composting Facility City of San Luis Obispo Renewal Public -Private Partnership ENGEL&GRAY, INC. 745 W. Bctteravia Road P.O. Box 5020 Santa Maria, CA 93456 Phone:(805)925-2771 Fax: (805) 925-8023 www.ENGELandGRAY.com B4-8 Attachment 1 Proposal for Renewal Public-Private Partnership with City of San Luis Obispo Engel& Gray,Inc. Regional Compost Facility Why Engel & Gray, Inc. 9 ► Engel& Gray, Inc. has a proven track record of providing quality service since its founding in 1946. ► Engel&Gray Inc. has been providing composting services since 1993 and serving the City of San Luis Obispo since 2000 ► Engel& Gray, Inc. is the only permitted site on the Central Coast to compost biosolids which provides a local regional solution for biosolids. ► City of San Luis Obispo completes the cycle of recycling by not only generating but working to recycle their waste into a beneficial new product. Why This Public Private Partnership? ► Composting of Biosolids is consistent with the highest and best use philosophy contained in the California Integrated Waste Management Act of 1989. ► The service of handling the Cities biosolids benefit from bringing the strengths of the private and public sectors together. ► With this partnership the City of San Luis Obispo realizes the benefit of a large composting facility by joining with other organic waste producers on the Central Coast. ► The benefits of site design, construction, financing, operations, management, maintenance, marketing of services and communications are all provided for with this regional facility. ► Conserving our resources means recycling. When it comes to organic resources such as Biosolids, that means Composting, transforming the organics into premium soil and soil amendments. Compost plays an important part in keeping soil healthy. It replenishes nutrients in the soil, increases organic matter, improves water holding capacity, reduces erosion,kills pathogens, and reduces need for chemical fertilizers. City of San Luis Obispo through local control and composting personify the spirit of Recycling by engaging in projects which are improving the environment, not only for themselves,but for the entire Central Coast. ► City of San Luis Obispo has demonstrated environmental stewardship,taking care of the land, being a good neighbor,this is something to take seriously. ► This project has demonstrated the practical, technical and financial feasibility of public-private B4-9 Attachment 1 partnerships and the inherent strengths that the public and private sectors can utilize to compliment one another in a common effort to meet societal needs. ► This agreement has provided a Public-Private partnership with no long term fixed capital outlay. ► Engel&Gray, Inc. has utilized the economies of scale to increase the quality and level of service over that which a single waste water treatment plant could provide on its own.. ► Engel& Gray Inc. provides stability by its partnership with the City of Santa Maria who leases the land for the regional facility to Engel& Gray, Inc. ► The cost of the service or project can be recovered through the existing rate fees ► This type of service provides an opportunity for innovation by the City through composting of their biosolids ► There is a track record of partnerships between Engel&Gray Inc. and other cities and districts along with the 10 year history of providing quality service to San Luis Obispo. Why Composting? ► Returning organic materials to the land will increase water quality and quantity,reduce nonpoint source pollution, and increase crop production. ► Composting biosolids can play an essential role in bringing many rivers, streams, and lakes up to environmental standards. Composting provides a viable and sustainable opportunity to move large volumes of organic material to areas that need organic soil amendments. ► Composting organic materials keeps them out of landfills and reduces the risk of leachate and methane production,both environmental threats. ► Soils amended with organic material require less irrigation as well as fewer fertilizers and pesticides than do depleted soils, in order to achieve optimum crop production. ► Application of compost enhances soil stability,reducing erosion and preventing the loss of nutrients into streams. Every year an average of five tons of soil is lost through erosion for every acre of cultivated crop land. Compost is a proven solution for erosion control. ► In urban areas, about half of the municipal water supply is used for landscape and garden watering. Since composting improves soil texture and water retention,use of compost, together with water- conscious yard care, could reduce the need for watering by 30 to 60 percent,reducing the demands on groundwater and surface water resources, and preventing their pollution from the runoff of chemical fertilizers and pesticides. B4-10 Attachment 2 E AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this ._day of Dp r'.0. '-2 c'n 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,the City wanti to management and beneficial reuse of biosolids. WHEREAS, Contractor is qualified to perform this type of service and has submitted a proposal to do so which has been accepted by City. 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 five years with a possibility of one five year extenson as mutually ag;eed. .a ,r it 2. INCORPORATION BY REFERENCE. Contactor proposal dated November, 15, 2005, are hereby incorporated in and part of this agreement. 3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Contractor shall receive therefor compensation based upon actual quantities hauled and disposed/beneficially j reused.as specified in the proposal. { • 3 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 provide services as set forth in Exhibit A attached hereto and incorporated into this Agreement. Contractor further agrees to the contract performance terms as set forth in Exhibit B 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 of the City. 9 N 9 p B4-11 I Attachment 2 Agreement page 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 incorporatedherein 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 879 Morro Street San Luis Obispo,CA 93401 Contractor Mr.Bob Engel 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 party. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year fust above written. ATTEST: CITY OF SAN LUIS OBISPO,A Municipal Corporation By: f City Clerk Mayer K r APPROVED AS TO FORM: CONTRACTOR I ��.o �`- By. City A_ tey s 1 i 0 B4-12 Attachment 2 U Wikt A Engel & Gray, Ince Regional Composting Facility City of San Luis Obispo Public - Private Partnership ENGEL&GRAY.INC. 745 W.Bmnavla Road P.O.BOX 5620 Santa Maria;CA 43456 Phme:(805)9254771 Fax: (805)425-8023 www.ENGELann_dGRAY.Com 's s Attachment 2 EyAk-I A Proposal for Public - Private Partnership with City of San Luis Obispo & Engel & Gray, Inc. Regional Compost Facility Why Engel & Gray. Inc. ? ► Engel&Gray, Inc. has a proven track record of providing quality service since its founding in 1946. ► Engel&Gray Inc. has been providing composting services since 1993 and serving the City of San Luis Obispo since 1000 ► Engel&Gray, Inc. is the only permitted site on the Central Coast to compost biosolids which provides a local regional solution for biosoUds. • City of San Luis Obispo completes the cycle of recycling by not only generating but working to recycle their waste into a beneficial.new product. s Yft This Public Private Partnt rship? II Composting of Biosolids is consistent with the highest and best use philosophy contained in the 1 California Integrated Waste Management Act of 1989. ► The service of handling the Cities biosolids benefit from bringing the strengths of the private and public sectors together. 3 ► With this partnership the City of San Luis Obispo realizes the benefit of a large composting facility by joining with other organic waste producers on the Central Coast. • The benefits of site design,construction,financing,operations, management, maintenance, marketing of services and communications are all provided for with this regional facility. 1 n ► Conserving our resources mans recycling. When it comes to.organic resources such as.Biosolids, that means Composting,transforming the organics into premium soil and soil ameWments. Compost plays an important part in keeping soil healthy. It replenishes nutrients in the soil,increases organic matter, improves water holding capacity, reduces erosion, kills pathogens, and reduces need for chemical fertilizers. ► City of San Luis Obispo through local control and composting would personify the spirit of Recycling by engaging in projects which are improving the environment, not only for themselves,but for the entire Central Coast. 1 2 of 10 • Gl � a 9 Attachment 2 CMIJVf A ► City of San Luis Obispo would be demonstrating environmental stewardship, taking care of the land, being a good neighbor, this is something to take seriously. ► This project will demonstrate the practical, technical and financial feasibility of public-private . partnerships and the inherent strengths that the public and private sectors can utilize to compliment one another in a common effort to meet societal needs. ► Public-Private partnership with no long term fixed capital outlay. j ► Engel&Gray, Inc. can utilize the economies of scale to increase the quality and level of service over that which a single waste water treatment plant could provide on its own. ► Engel&Gray Inc. provides stability by its partnership with the City of Santa Maria who leases the land for the regional facility to Engel&Gray, Inc. r F ► The cost of the service or project can be recovered through the existing rate fees ► This type of service provides an opportunity for innovation by the City through composting of their biosolids ► There is a track record of partnerships between Engel&Gray Ine. and other cities and districts ��Stlnfi� ► Returning organic materials to the land can increase water quality and quantity,'reduce nonpoint source pollution, and increase crop production. ► Composting biosolids can play an essential role in bringing many rivers, streams, and lakes up to environmental standards. Composting provides a viable and sustainable opportunity to move large volumes of organic material to area that need organic soil amendments. ► Compostmg organic materials keeps them out of landfills and reduces the risk of leachate and methane J production,both environmental threats. 1 li ► Soils amended with organic material require less irrigation as well as fewer fertilizers and pesticides than do depleted soils, in order to achieve optimum crop production. ► Application of compost enhances soil stability, reducing erosion and preventing the loss of nutrients into streams. Every year an average of five tons of soil is lost through erosion for every acre of cultivated crop land. Compost is a proven solution for erosion control. ► In urban areas, about half of the municipal water supply is used for landscape and garden watering. Since composting improves soil texture and water retention, use of compost,together with water- conscious yard care,could reduce the need for watering by 30 to 60 percent, reducing the demands on groundwater and surface water resources, and preventing their pollution from the runoff of chemical j fertilizers and pesticides. 3of10 C7-� a Attachment 2 CyA;h.tA Legal name of firm submitting pimml Engel&Gray Inc. P.O. Box 5020 Santa Maria, CA 93456-5020 (805)925-2771 Mame address and telephone number of the Berson to whom correspondence should be directed. Bob Engel Engel&Gray, Inc. P.O. Box 5020 Santa Maria, CA 93456-5020 Voice(805)925-2771 FAX(805)925 8023 Desedption of work. Engel&Gray Inc. proposes to provide the trucks,manpower,.and loader equipment needed to load and transport the biosolids currently accumulating at the San Luis Obispo Waste Treatment.Facility. Based on the carresu projections of biosolids being generated, we propose to haul the material on a monthly basis or as needed. Ile-material will be transported to our regional composting facility located in Santa Maria. Once the material is delivered to our facility it will be placed into windrows,blended with organic feedstock and Begin the composting process. We utilize a mechanically aerated, open windrows system.for composting biosolids, manures, and vegetative materials. In this type of system,mixed feedstock are placed in rows and turned periodically, by specialized mechanical equipment. height, width,shape;and spacing of the windrows will vary depending on the nature of the feedstock and the type of equipment used for turning. Oxygen is suppliedprimarily by convective ventilation,due to the buoyancy of hot gases produced in the windrow(resulting in a chimney-hike effect)and, to a lesser extent,by gas exchange during turning. Water is applied as needed and mixed into the windrow to maintain the necessary moisture content in the composting matrix. All windrows are monitored for temperature and moisture daily to insure proper(effective)composting is being achieved. Finished product moisture is generally allowed to come down to the 25-35% range to facilitate handling, retard continued microbial action,and produce the most desirable end-product_. A primary approach of Engel and Gray is to ammplish what we have done with other waste water treatment plants(wwtp)and the agricultural couununity. We have taken what once was a disposal issue for many wwtp's and turned it around and made,a beneficial custom compost product that the landscape industry uses as a beneficial soil amendment. We have also accomplished this task in the winery and vineyard industry by taking the pomace generated by the wineries and converting that to a custom compost blend that is then talo back to the vineyards, thereby replacing the use of synthetic fertilizers. The vegetable industry has also utilized this practice in that they too bring us their culls and cuttings and we generate a compost to be applied on their farming.fields as well.This type of recycling program has been strongly embraced by the landscape and agricultural communities, and we feel as though the City of San Luis Obispo can continue to 3 benefit from this type of recycling program as well. a a � 3 I Engel&Gray would propose to continue this type of approach for the City of San Luis Obispo. We would also propose to continue taking the Cities biosolids as we have done since 2009,compost it, and then offer a portion of the finished product back to the City of San Luis Obispo to utilize as amendment around the city. The cost of the composted product would be$19/ton plus delivery. This would illustrate:to the community the full recycling program at work. 4of10 i 4:j� • 7 J Attachment 2 CA;b,TA Engel&Gray has developed markets for different types of compost and has established working relationships with the agricultural,horticultural, and landscape communities. We believe that this too would be a mutually beneficial relationship and look forward to expanding on our experience of working with the City of San Luis Obispo Water Treatment Facility. Firm 'grace Engel&Gray, Inc. operates a regional organic materials composting facility in a rural area of Northern Santa Barbara County. The facility is the result of successful composting and been in operation since July 1993. The facility is located approximately three miles west of the City of Santa Maria on a 40-acre portion of the City's Waste Water Treatment Plaut. The proposed facility is designed to function in an environmentally sensitive manner. Native soils comprising the site's working surface are compacted to achieve very low permeability rates. The facility's design incorporates a perimeter berm,precluding storm water rum on and retention basins designed to contain the total site runoff from a I00-year/24-hour storm event. Composting itself is a naturally occurring, environmentally friendly process. Engel&Gray has developed and rimed the concept for this facility and its management during twelve years of on-going research, full- scale feasibility studies, and successful composting. This project is intended to work cooperatively with local governments to divert and/or recover residual organic resources from traditional waste streams, thereby minimizing potential groundwater impacts from disposal. The project is included as a biosolids disposal option in the City of Santa Maria's Wastewater Master Plan and will be supported by the City as a green material recycling facility. Current customers of the facility inehtde the Cities of Lompoc, Buellton, Solvang, and Santa Barbara. We also service districts including South San Luis Obispo County, Montecito, and Laguna. The project also works extensively with the agricultural community to meet the demand for quality fertilizing materials and soil amendments. Marketing is directed at horticultural, landscaping, and other general wholesale and mail areas. E&G maintains incoming feedstock are clean,naturally occurring,organic(i.e., derived from living.organisms),and readily decomposable materials. All compost products produced at the proposed facility are nuisance free,non-toxic, biodegradable materials with no restrictions as.to where they can be applied. This facility has permitted annual capacity to convert over 400,000 cubic yards of organic residuals into beneficial marketable end-products. The site is permitted by the County of Santa Barbara, California Integrated Waste Management Board, and,the Central Coast Regional Water Quality Control i Board. i a a C 7 a 5 of 10 3 G7�O a Attachment 2 istory Engel&Gray, has been in business on the Central Coast for fifty nine years and has a reputable performance record. Established in 1946 as a trucking and construction company services have grown over the.years. Currently run as a.family corporation with Carl W. Engel serving as president and Robert Engel as vice president. Engel&Gray will perform the work and meet the regulatory standards pursuant to Title 14 CCR, Division 7, Chapter3.1, Article 7,Sections 17850- 17869. Services or data to be provided by the City. Engel&Gray is a fiilly permitted composting facility and therefore has some requirements that need to be met by the City of San Luis Obispo. The Federal Part 503 regulations require the biosolids generator to evaluate biosolids quality,maintain records and distribute biosolids quality information to subsequent processors and users needing the information and that we receive these analysis at least once a year. Engel and Gray also has requirements from the Regional Water Board to obtain specified biosolids quality information on an annual basis which the City will be required to furnish annually. Proposed comMsation on a cast per ton basis. Cost per ton$32.45/ton This cost will cover the loading,transportation,composting and testing of the material. Fuel Surcharge as described In the scope of work Annual Cost of living as described in the scope of work 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. i i i 6 of 10 1 Attachment 2 i • E'xhrh,t SCOPE OF WORK Engel and Gray Inc., (E&G)shall provide all services related to transportation, Composting/beneficial reuse, permitting and monitoring of the City's biosolids in accordance with all applicable federal, state and local requirements. Engel and Gray Ines., proposal includes a detailed description of the proposed method of biosolids rause and shall include but not be limited to the fallowing: 1. E&G Inc., shall provide all required regulatory permits for hauling and composting of the entire quantity of biosolids as specified herein. E&G shall be responsible for all fees associated with permitting. E&G shall also be responsible for meeting all monitoring and reporting requirements imposed by all regulatory agencies having jurisdiction over the E&G Composting operations; and shall provide all capital improvements, and shall pay all operating expenses, needed at the composting site to protect surface and ground waters and the site resources per the requirements of the responsible regulatory agencies. Copies of all the regulatory permits shall be provided to the City upon request. Representatives of the City shall be permitted access to the composting site with reasonable notice. 2. E&G shall be responsible for hauling 100 percent of the biosolids being generated, approximately 2,000 to 4,000 tons/year for a period of five years. E&G responsibilities shall include furnishing and maintaining all bmsohds trailers, including water tight and covered trailers as required;furmshing and maintaining all truck tractors required to transport the trailers; furnishing all drivers and operators; furnishing all vehicle fuel required to traiisport the biosolids from the City to the compost facility and return trip; provide and maintain full vehicle insurance, general liability insurance and worker's compensation insurance as reed by law and identified in Exhibit B. E&G lac.,shall also be responsible for and pay all trafftc violations incurred as a result of hauling operations. 3. E&G shall be responsible for furnishing and maintaining tractor/loaders required to load the stockpiled biosolids, and equipment operators for loading the stockpiled biosolids. 4. E&G shall provide sufficient facility capacity to accommodate 150 percent of the total anticipated amount of biosolids to compost during the contras period. 5. E&G shall be responsible for furnishing all equipment, labor and materials for the compost facility operations. 6. E&G and any associate consultant or sub contractor, trust be legally qualified in the State of ' California to practice the work described in this scope of work and must hold all licenses and/or registration required by law. QUALIFICATIONS E&G has been providing comport services to the City of San Luis Obispo since 2000 and has a proven track record of providing the services. Engel&Gray Inc. has previous operating experience with composting biosolids and is currently providing similar services for many Central Coast city's and agencies. E&G complies with all applicable regniatory requirements, and shall provide all permits required for this workscope. E&G shall be capable of hauling to the proposed composting facility within(30)days following notice to proceed. 7 of 10 �7- B4- Attachment 2 ESTIMATED QUANTITIES Estimated annual biosolids production is 2,000 to 4,000 tons per year*. E&G shall base their cost on the following constraints; the E&G, shall be required to haul up to 100 percent of the biosolids being produced at the City's WWTP to the composting site and provide facilities (land) of sufficient area to accommodate 150 percent of the total estimated biosolids to be hauled. OPERATIONAL PROCEDURES AND HAULING SCHEDULES Operational procedures shall be mutually arranged between the City and E&G. E&G shall provide sufficient trailers, loaders and equipment to remove biosolids continuously generated from the Water Reclamation Facility site at a frequency of not less than bi-monthly (every two months). Actual details of scheduling shall directed by city personnel. The City may consider alternate hauling schedules as proposed if, in the opinion of the City, the proposed alternative schedule does not impede the operation of the City's Water Reclamation Facility. E&G shall not assume that the City can store more than 500 cubic yards of biosolids on site. Costs shall be based on a unit cost per ton. All load weights shall be provided by certified scales and provided to the City with contract invoicing. BIOSOLIDS QUALITY The Cityshall be responsible for producing PC biosolids that that do not exceed Table 3 requirements for pollutants [40 CFR 503.13], meet alternative 1 [40 CFR 503.33(b)] for vector attraction using Volatile Solids Reduction(VSR) of 38% or greater and meet alternative 2 for Processes to Significantly Reduce Pathogens (PSRP) [40 CFR 503.32(b)(3)] using anaerobic digestion. The City will provide biosolids quality monitoring as required by the 40 CFR 503 regulations and Engel &Gray Inc., permits. The dewatered biosolids come from drying beds and from a belt filter press. The drying bed biosolids are a loose solids containing approximately 40 % solids and resembling soil. The belt press solids are approximately 15% to 20% solids and of moist cake consistency. E&G shall provide covered trailers to prevent any loss of biosolids while being transported from the Water Reclamation Facility to the compost facility. LOAD WEIGHT It shall be the responsibility of E&G to insure that each trailer is loaded to the proper weight. The City shall require the E&G to provide the certified load weight of each vehicle at no additional cost to the City. LICENSING All equipment utilized in connection with this contract shall be fully licensed to operate on the highways of the State of California. All public highway drivers and operators of such equipment shall be fully licensed by the State of California Department of Motor Vehicles. ;7 EQUIPMENT CLEANING E&G Inc., shall be responsible for keeping his/her equipment in neat and clean manner. Major cleaning and servicing of equipment shall not take place at the City's Water Reclamation Facility. 8 of 10 a B4-20 Attachment 2 t A RULES AND REGULATIONS E&O shall be aware of existing,revised,proposed and new Federal,State and Lova!and other rules and regulations covering herthis activities in connection with this work. , Changes in regulations or practices necessitated by any revision in rules and regulations shall be brought to the attention of the City sufficiently in advance of their impletinentation so as to permit adjustment of the schedule or method of operation of the proposer. CONTRACTTERMS L�gth of Agreement, This agreement shall continue in full force and effort fora period of Five Years(5)years commencing January L 2006 and ending December 31,2010, With the ability of one five year(5)extension by mutual agreement. Cost of Livinst AWusnrlgpt& Twelve(12)months after the Commencement Date and every twelve(12)months thereafter,the Charges and Fees for the remaining lease term shall be adjusted to reflect an adjustment, compounded annually,of the change in the Consumer Price Index between the month which is Three(3)months prior to the month of the Commencement Date and the mouth which is Three(3)months prior to the adjustment date. The Consumer Price Index to be used is the All Urban Consumers Los Angeles-Anaheim-Riverside Consumer Price Index-all items,published monthly by the U.S.Department of Labor,Bureau of Labor Statistics. If said Consumer Price Index is discontinued,then the parties shall substitute therefor any successor index supplied by the U.S.Department of Labor which reflects consumer price levels for the area encompassing the District of Los Angeles,and if no such successor index exists,then the parties shall select another similar index which reflects consumer price levels. if the parties cannot agree on another index,it shall be determined by binding arbitration. Fre__ IsurchMr,. A fuel surcharge will be applied to the fee of$32.45 per ton The base price for fuel is based on a January 5,2004 pump price for Diesel of$1.674. For every$0.07 increase above this results in a one percent surcharge 0%)to the fee. The surcharge is calculated on monthly basis for that month based on the posted price of the first Monday of that month. The posted price is taken from Web URL: btt Wtpnto.eia d�aov/oor/info/wo d lie eyy�� This is the Energy Information Administration(EIA)web created in 1977. The EIA.is a P by Congress statisticsl agency of the U.S.Department of Energy. They calculate the On-highway diesel prices,by week and PADD(Self Service Cash Price in Dollars per Gallon,Including Taxes) For example if the price of Diesel on March 1,2004 rises to$1.939, $1.939 minus$ 1.674 equals$0,265. $0.265 divided by$0.07 equals 3,78 or 4 percent surcharge. a Cost per ton$32.45/ton Firm: Engel&Otey,Inc Contact: Robert Engel P.O.Box 5020 Phone (805)925-2771 I Santa Maria,Co.,93456-5020 Fax (805)925-8023 Si nre of Authorizedtedv- 9 Date 11115/2005 9of10 3 3 Attachment 2 BIOSOLIDS RECYCLING CHARGE DIESEL PRICE ADJUSTMENT WORKSHEET Month Current Biosolids Recycling Charge (a) 32 45 Diesel Price Adjustment Diesel Base Period Price (b) 1.674 Current month first week EIA price (c) Difference take a-b (d) $D.07 increments/divide into difference (e) Diesel Surcharge Multiplier((e/100)+1)(f) Current Months Hauling Price (g) 1. You take the price of diesel for the first Monday of the current month. (c) 2. You subtract the base period from the torrent months price. i 3. This gives you the difference from the base to the current price (d) i i 4. Divide the difference by .07 or 70 (e) 5. Then you take this value(e)and divide by 100 and add one for multiplier (f) i 6. Which give you the current months hauling price (9) s 3 3 Z 10 of 10 ^ Attachment 2 Engel & Gray, Inc. Regional Composting Facility FUEL SURCHARGE EXAMPLE Fuel smvharne. A fuel surcharge will be applied to the fee of$32.45 per ton. The base price for fuel is based on a January 5,2004 pump price for Diesel of$1.674. For every$0.07 increase above this results in a one percent surcharge(1%)to the fee. The surcharge is calculated on monthly basis for that month based on the posted price of the first Monday of that month. The posted price is taken from Web URL: httaJ/tonto.eia.doe.aov/ooplinfo/wohdnldiesel.asn This is the Energy Information Administration(SIA)web page,created by Congress in 1977. The EIA is a statistical agency of the U.S.Department of Energy. They calculate the On-highway diesel prices,by week and PARD(Self Service Cash Price in Dollars per Gallon,including Taxes) For example if the price of Diesel on March 1,2004 rises to$1.939, $1.939 minus$ 1.674 equals$0.265. $0.265 divided by$0.07 equals 3.78 or 4 percent surcharge. G'17/fes Attachment 2 Exf1i6r1 fj BIOSOLIDS RECYCLING CHARGE DIESEL PRICE ADJUSTMENT WORKSHEET Month Current.Biosolids Recycling Charge (a) 32 45 Diesel Price Adjustment Diesel Base Period Price (b) 1.674 Current month fust week EIA price (c) Difference take o-b (d) $0.07 increments/divide into difference (e) Diesel Surcharge Multiplkr((e1100)+1) (f) Current Months_Hauling Price (g) Steps: 1. You take the price of diesel for the first Monday of the current month. (c) 2. You subtract the base period from the current months price. 3. This gives you the difference from the base to the currant price (d) 4. Divide the differeace by.07 or 7¢ (c) 5. Then you take this value(e)and divide by 100 and add one for multiplier (t) 6. Which give you the current months hauling price (g) 1 Attachment 2 Example BIOSOLIDS RECYCLING CHARGE DIESEL PRICE ADJUSTMENT WORKSHEET Month November 2005 Current Biosolids Reeycling Charge (a) 32.45 Diesel Price Adjustment Diesel Base Period Price (b) 1.674 Current month first week EIA price (c) 2.797 Difference take c-b (d) 1.120 $0.07 increments/divide into difference (e) 16 Diesel Surcharge Multiplier(1+(e/l0U) (f) 1.16 ' Current Months Hauling Price (g) 37.64 Example 1. You take the price of diesel for the first Monday of the current month. (c) 2. You subtract the base period from the current months price. 3. This gives you the difference from the base to the current price (d) 4. Divide the difference by.07 or 7$ (e) 5. Then you take this value(e)and divide by 100 and add one for multiplier (f) 6. Which give you the current months hauling price (g) Attached is table from the EIA web page showing the Diesel price for the first Monday of November 2005 for California. The graph below shows the large increases in diesel prices since 2003. Engel&Gray Inc. feels the fairest way to deal with the large fluctuations in diesel over the last two years is through a diesel surcharge. This way if prices return to the historical averages the prices of the services will also decline. For each months billing we printout the EIA price from their email subscription service and fill out the table above and include with the billing. Attachment 2 h //tonto.eia.doe ov/oo Info/wohd diesel.a `�f A nP� B B/� p/ sp#graph battons a.Weekly Retail On-Highway Diesel Prices Dollars per gallon,including all taxes Change from Change from 10/31/2005 11/7/2005 11114/2005 week ago year ago U.S. 2.876 2.698 2.602 -0.096 0.470 Bast Coast 2.784 2.657 2.565 -0.092 0.406 New England 2.834 2.744 2.699 -0.04S 0.431 Central Atlantic 2.848 2.755 2.689 -0.066 0.427 Lower Atlantic 2.753 2,608 2:500 -0.108 0.395 Midwest 2.907 2.671 2.575 -0.096 0.479 Golf Coast 2.846 2.679 2.585 -0.094 0.529 Rocky Mountain 3.079 2.907 2.766 -0.141 0.551 West Coast 2.951 2.821 2.738 -0.083 0.464 California 2.936 2.797 2.717 -0.080 0.381 Weekly California Retail On-14111hway Diesel Prices -US -California J 3.30 320- 3.10. 900 2.20 - 2.50 80 200 2.70 2M 2.9D t7 2AO 2.50 22D 2.10 e 2A0 180 180 1.70 pens 0 1.60 150 1.40 1.3 1 Sager= 6iergy trdanadbn Adm' 30, M --... $4- Attachment 2 Exhlblt B CONTRACT PERFORMANCE TERMS 1. Badness Tax. Contractor must have a valid City of San Luis Obispo business tax certificate prior to execution of the contract. Additional information regarding the City's business tax program may be obtained by calling(805)781-7134. 2. AlifHty to Perform. Contractor warrants that it possesses,or has arranged through subcontracts,all capital and other equipment,labor,materials,and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county. city, and special district laws, ordinances, and regulations. 3.. Leve to be Observed. Contractor shall keep itself folly informed of and shall observe and comply with all applicable state ural federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 4. Payment of Taxes. The contract prices shall include full compensation for all taxes that Contractor is required to pay. S. Permits and Idcemes Contractor shall procure all permits and licenses,pay all charges and fees,and give all notices necessary. 6. Safety Provlslons. Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 7. Public and Employee Safety. Whenever Contractor's operations create a condition hazardous to the public or City employees, it shall,at its expense and without cost to the City,furnish,erect and maintain such fences,temporary railings,barricades. lights,signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 8. Preservation of City Propeuty. Contractor shall provide and install suitable safeguards,approved by the City,to protect City property from Mury or damage. If City property is injured or damaged as a result of Contractor's operations, it shall be replaced or restored at Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 9. Imntigra@on Act of 1986. Contractor warrants on behalf of itself and all sub-contractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 10. Contractor Non-Dlserindnatinn. In the performance of this work, Contractor agrees that it will not engage in,nor permit such sub,conoracturs as it may employ,to engage in discrimination in employment of persons because of age,race,color,sax,national origin or ancestry,sexual orientation,or religion of such peon i 11. Work Delays. Should Contractor be obstructed or delayed in the work required to be done hereunder by i changes in the work or by any default,act,or omission of the City,or by strikes,fire,earthquake,or any other Act of God,or by the inability to obtain materials, equipment,or labor.due to federal government. 6 restrictions arising out of defense or war programs, then the time of completion may, at the C iityls sole option,be extended for such periods as may be agreed upon by the City and the Contractor. 12. Payment Terms. The City's payment terms are 30 days fmm the receipt of an original invoice and acceptance by the City of the services provided by Contractor(Net 30). 13. Inspection. Contractor shah furnish City with every reasonable opporumity for City to ascertain that the services of Contractor are being performed in accordance with the requirements and intentions of this coact. All work done and all materials furnished,if any,shall be subject to the City s inspection mud l Attachment 2 Eyl�T h rt f lj approval. The inspection of such work shall not relieve Contractor of any of its obligations to 11M its connect requites. 14. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 15. Interests of Conhwtor. Contractor covamM that it presently has no dnteret,and shall not acquire any interest direct or indirect or otherwise,which would conflict in any manner or degree with the performance of the work hereunder. Contractor further covenants that, in the performance of this work, no sub- contractor or person having such an interest shall be employed. Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that,in the performance of the work hereunder.Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 16. Hold Harmless and Indemnification. The Contractor agrees to dead, indernne,Protect' and hold the Chy and In agents, o Zwv and employees hmmlen Ji am and agdnit arty and all claims asserted or Na WO esaablkhedfor damages or igftu*s to any person or property, inchulirg injury to Contraddes employees,agents or qukers.that mise from or are connected with or are caused or claimed to be caused by the acts or on laiden of the Contractor and las agents, officers or employees, In parfonnog the work or services herein, and aff eopensea of bwes*uft and dgfe saw;provided,however,that the Conductor's duty to uuknu{fy and hold harmless shall not include any claims or>i Wily arising from the estabiikrhed sole negCrgence or wigfal misconduct of the City,its agents,ohicers or employees. 17. Contract Assignment. Contractor shall not assign,transfer,convey or otherwise dispose of the contract,. or its right,title or interest.or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. I& Termh,ndon If,during the term of the contract, the City determines that Contractor is not faithfully abiding by any tam or condition contained herein,the City may notify Contractor in writing of such defect or,failure to perform;which notice must give Contractor a 10(tin)calendar day notice of time thanaftee in which to perform said work or cure the deficiency. If Contractor has not performed the work or cured the deficiency within the ten days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to Contractor to said effect Thereafter, neither party shall have any further duties, obligations,responsibilities or rights under the contract In said event, Contractor shall be entitled to the reasonable value of its services puf red from the beginning date in which the breach.occurs up to the day it received the City's Notice of Termination,mints any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by Contractor as may be set forth in the Agreement payment schedule;compensation for any other work, services or goods performed or provided by Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall workscope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project,as may be determined in the City's sole discretion,so as to permit a full and complete accounting of costa. In no event,however,shall Contractor be entitled to receive in excess of the compensation quoted in its proposal. 19. Ownership of MatertaI& All original drawings,plan documents and other materials prepared by or in possession of Contractor as part of the work or services under these specifications shall become the permanent property of the City, and shall be delivered to the City upon demand. The Contractor is permitted toretain copies of all materials generated as part of the work or services performed under this agreement i ^vim/ A1-Fa.chme� 2 X Release of Reports and Information Any reports,fnforroation,data,or other material given to,prepared by or assembled by Contractor as part of the work or services under these Specifications shall be the property of City,and shall not be made available to any individual or organization by Contractor without the prior written approval of the City. 21. Copies of Reports and Information. If the City requests additional copies of reports, drawings, specifications, or any other material in addition to what Contractor is required to firnish in limited quantities as part of the work or services under these specifications, Contractor shall provide such additional copies as are requested,and City shall componsate Contractor for the costs of duplicating of such copies at the Contractor's direct expense. 22. Required Deliverable ProductL Contractor will provide: L One copy of the final report that addresses all elements of the workscope. Any documents or materials provided by Contractor will be reviewed by City staff and,where necessary,Contractor will respond to staff comments and make such changes as deemed appropriate. I b. When computers have been used to produce materials submitted to the City as a part of the workscope,Contractor must provide the corresponding computer foes to the City,compatible with the following program whenever possible: e Word Processing Word • Spreadsheets Excel o Desktop Publishing Coreldraw,Pagemaker • Computer Aided Drafting(CAD) AutoCad Computer files must be on 31P2",high-density,writo-protected diskettes or CD,formatted for use on IBM-compatible systems. Each diskette or CD must be clearly labeled and have a printed copy of the directory. 23. Attendance at Meetings and Hearings. Contractor shall attend as many"working"meetings with staff as necessary in performing workscope tasks 24. Insorantoe. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by Contractor,its agents,representatives,employees or sub-contractors. IL Minimum scope of lnsarance. Coverage shall be at least as broad as: • Insurance Services Office Commercial General Liability coverage(occurrence form CG 0001). • Insurance Services Office form number CA 0001 (Ed. 1187) covering Automobile Liability,code 1(any auto). • Wo Wodoers'Compensation insurance as required by the State of Califorma and Employer's Liability l • Errors and Omissions Liability insurance as appropriate to Contractor's profession b. d9inf ntun ffmfm gt haurmtce. Contractor shall maintain limits no less than: • General Liability: $1,000,000 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 shall apply separately to this pmjecdtocation or the general aggregate limit shall be twice the required occurrence limit • Automobile Liability: $1,000,000 per accident far bodily injury and property • Employer's Liability: $1,000,000 per accident for bodily injury or disease. • Errors and Omissions Liability: $1,000,000 per occurrenm z o f C�cl,l�o�t D C. Dedudt ks and trey-wwed retentions. Any deductibles or self-insured retentions must be- declared edeclared to and approved by the City. At the option of the City,either: the insurer shall reduce or eliminate such deductibles or self insured retentions as respects the City, its officers, officials, employees and volunteers;or Contractor shall procure a bond guaranteeing payment of losses and related investigations,claim administration and defense expeiism i d. Otter fnsarnnce pmylsions. Tlie general liability and automobile liability policies are to coulain. or be endorsed to contain,the following provisions: I The City, its officers,officials. employees, agents and volunteers are to be covered as i insureds as respects: liability arising out of activities performed by or on behalf of Contractor,products and completed operations of Contractor,premises owned,occupied or used by Contractor;or automobiles owned,leased,hired or borrowed by Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City.its officers,official.employees,agents or vohmteem e For any claims related to this project,Contractor's insurance coverage shall be primary insurance as respects the City, its officers,officials,employees,agents and volunteers. Any insurance or self-insurance maintained by the City,its officers.officials,employees, agents or volunteers shall be excess of Contractor's insurance and shall not conftft to with it. e Any failure to comply with reporting or other provisions of the policies including breaches of waffm*os shall not affect coverage provided to the City, its officers, officials,employees,agents or volunteers. • Contractures insurance shall apply separately to each insured against whom claim is made or suit is brought,except with respect to the limits of the insurer's liability. e Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended,voided,canceled 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. j i e AcceptabRy of Luarers. Insurance is to be plated with insurers with a aurent A.M.Bests rating of no less than AMI. L VerykzWn of coverage. Contractor shall furnish the City with a certificate of insurance slowing maintertimm of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements ate 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(Sty before work commences: 4 9 8 n l Attachment 3 CITY OF SAN LUIS OBISPO BIOSOLIDS HAUL Diesel Price Adjustment September 2010 i Annual CPI Cost of Livin Ad'usment Adjustment Index g Numbers Hauling Price a. Current Biosolids Recycling Charge35.80 Diesel Price Adjustment b. Diesel Base Period Price 1.767 c. Current Month First Week EIA Price 3.145 d. Difference(c-b) 1.378 e. $0.07 increments/divide into difference 19.69 f. Diesel Surcharge Multiplier(e/100) 20% i g.Biosolds Recycling Surcharge $7.16 h.Revised Biosolds Recycling Charge with fuel surcharge $42.96 a. This is the Current Biosolids Recyling charge that is the dollar amount listed in the PO or contract plus annual cost of living adjustments. b.This is the.Diesel price in effect when the contract was started. This price is ; adjusted annually with the cost of living. c. This is the Current Diesel Price taken from the US Energy Information Agency of the US Government website. This printout is attached. d.This is the difference from the current cost of fuel with the cost when the contract was written. e.You take the difference in fuel price from today against when the contract was written and you divide by$0.07 or seven cents to get the percent surcharge. The percentage is entered in f. g.The percentage is then applied to the original contract price to get the biosolids recyling surcharge dollar amount. h. The Biosolids recycling charge is added to the Recycling Fuel Surcharge to arrive at.the current recycling charge. . DieselAdj08SLOWWTPrevised.xls x j i i e B4-31 Attachment 3 Diesel Prices Details- Last 53 Weeks Page 1 of 3 U.S. Energy Information Administration F---ro Independent Statistics and Analysis Glossa Home> Petroleum>Weekly Retatl Or-Hlahway Diesel Prices>Average All Types-Last 53 Weeks Weekly Retail On-Highway Diesel Prices Average All Types-Last 53 Weeks (Dollars per gallon,including all taxes) Date U.S. East New Central Lower Gulf Rocky West Average Coast" England Atlantic Atlantic Midwest Coast Mtn Coast CA j 09/06/10 2.931 2.923 2.995 3.007 2.880 2.900 2.876 3.021 3.104 3.145 08!30/10 2.938 2 930 2.996 3.020 2.886 2.909 2.888 3.019 3.101 3.150 08113/10 2.957 2.952 3.009 3.038 2.910 .2.927 2.916 3.016 3.114 3.171 08/16/10 2979 2 977 3.024 3.055 2.940 2.953 2.933 3.011 3.129 3.186 08/09/10 2.991 3.000 3.027 3.086 2.962 2.966 2947 2 991 3.124 3.183 08/02/10 2.928 2.934 3.009 3.020 2.890 2 900 2.887 2.937 3.071 3.132 j 07/26/10 2.919 2 928 3.014 3.020 2.880 2.891 2.875 2.920 3.060 3.125 07/19/10 2.899 2.913 3.015 3.012 2.861 2.866 2.859 2 902 3.042 3.116 07/12/10 2.903 2.921 3.017 3.022 2.869 2.865 2.857 2.912 3.057 3.123 07/05/10 2.924 2.944 3.033 3.055 2.889 2.890 2.866 2,928 3.077 3.132 06/28/10 2.956 2.975 3.044 3.091 2.919 2.930 2.893 2956 3.099 3.147 06/21/10 2.961 29,74 3.029 3.088 2.921 2.936 2.908 2.980 3.093 3.125 06/14/10 2 928 2.949 3.025 3.067 2.892 2.892 2.874 2.989 3.054 3.068 06/07/10 2.946 2.973 3.045 3.090 2.916 2904 2.899 3.020 3.058 3.068 05/31/10 2.980 3.005 3.064 3.121 2.950 2.940 2.936 3.061 3.082. 3.094 05/24/10 3.021 3.039 3.098 3.165 2.981 2.985 2.977 3.107 3.132 3.162 05/17/10 3.094 3.109 3.142 3.232 3.054 3.067 .3.042 3.157 3.204 3.238 05/10/10 3.127 3.136 3.161 3.246 3.087 3.102 3.087 3.169 3.233 3.269 05/03/10 3.122 3.127 3.138 3.238 3.079 3.096 3.083 3.166 3.243 3.260 i i 0426/10 3.078 3.075 3.105 3.186 3.025 3.053 3.038 3.137 3.211 3.227 04/19/10 3.074 3.081 3.103 3.189 3.033 3.044 3.034 3:109 3.203 3.228 l 04/12/10 3.069 3.082 3.086 3.186 3.037 3.045 3.023 3.082 3.]87 3.221 I 04/05/10 3.015 . 3.032 3.054 3'.136 2.986 2.989 2.978 3.044 1113 3.147 0329/10 2.939 2.965 3.029 3.075 2.913 2.910 2.899 2.968 3.027 3.073 0322/10 2.946 2.973 3.032 3.079 2.923 2.922 2.904 2.954 3.027 3.072 03/15/10 2.924 2 948 3.018 3.055 2.895 2.895 2.897 2.923 3.005. 3.065 03/08/10 2.904 2.932 3.015 3.037 2.880 2.871 2.873 .2.890 3.003 3.057 03/01/10 2.861 2.902 3.018 3.013 2.844 2.825 2.819 2.851 2.956 3.023 J I 0222/10 2.832 2:877 3.011 2.967 2.826 2.794 2.793 2.827 2.918 2.980 02/15/10 1756 2.809 2.991 2.905 2.751 2.705 2.718 2.777 2.846 2.902 fi 02/08/10 2.769 2.819 3.014 2.920. 2.757 2.724 2.729 2.782 2.860 2.920 02/01/10 2.781 2.832 3.017 2.926 2.775 2.731 2.744 2.797 2.876 2.950 j R L K...//a_�a_ _._ �__ ___.l_._I:,.r. __ .i a ii• i • . B4-321 Attachment 3 Engel&Gray, Inc. Material Receipts, by Supplier 10/12/2010 10:08 AM Page 1/1 Print range: Receipt from: FIRST to: LAST Bin from: FIRST to: LAST Supplier code from: SLOWWTP to: SLOWWTP Rea date from: 9/1/2010 to: 9/30/2010 Supplier name from: FIRST to: LAST Site from: FIRST to: LAST Material code from: FIRST to: LAST Supplier. SLOWWTP City of San Luis Obispo WWTP Rec date I Rea I Mat code I Mat.descr. Lot` Site'. Bin I Scale ticket Bill of lading Qty:tons .Qty.cu.yd. RW2010 10332 BIOWET Biosolids-Wet 1215 9252 23.90 31.80 VM010 10333 BIOWET Biasofids-Wet 1215 9248 23.90 28.40 9/312010 10334 BIOWET Biosolids-Wet 1215 9251 24.14 28.40 9/312010 10330 BIOWET Biosolids-Wet 1215 9244 23.49 30.40 9/3/2010 10331 BIOWET Biosolids-Wet 1215 9250 23.95 30.40 9/1012010 10372 BIOWET Biosorids-Wet 1229 9293 23.51 30.40 9/10/2010 10373 BIOWET Biosolids-Wet 1229 9296 23.55 30.40 9/1041010 10374 BIOWET Biosolids-Wet 1026 9300 19.68 24.10 Total month 186.12 234.30 Total supplier 186.12 234.30 ©Aschl Management Systems B4-33 • Attachment 4 RESOLUTION NO. (2010 Series) A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO TO SUPPORT THE BENEFICIAL USE OF BIOSOLIDS WITHIN THE CITY AND COUNTY OF LUIS WHEREAS, in efforts to enhance the community and address its needs and wishes the City has adopted many important goals such as waste minimization, sustainability, green house gas reduction and energy conservation; and WHEREAS, the City of San Luis Obispo's Water Reclamation Facility generates over 2,000 tons of high quality biosolids annually which are hauled to Santa Barbra County for composting, and WHEREAS, use of biosolids as a soil amendment and/or mulch can improve soil structure, diminish the use of synthetic fertilizers by providing essential plant nutrients and reduce water use, and WHEREAS, current regulations limit the use of biosolids in San Luis Obispo County limiting local options for its beneficial reuse, and WHEREAS, the City desires to be proactive and involved in the development and adoption of a protective, practical and community based permanent biosolids ordinance that would allow the greater use of biosolids within San Luis Obispo County; and WHEREAS, the use of biosolids compost at City parks and facilities will be beneficial to those facilities and help meet many existing City goals. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows; SECTION 1. Support the adoption of a protective, reasonable and community based permanent county ordinance for the beneficial reuse of biosolids and authorize staff to work towards this end; and SECTION 2. Support the use of biosolids compost at City parks and facilities. Upon motion of , seconded by and on the following vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this day of 2010. R B4-34 i Attachment 4 Resolution No. (2010 Series) Page 2 Mayor David F. Romero ATTEST: Elaina Cano City Clerk APPROVED AS TO FORM: - �t:�q /L, SUV J. Christine Dietrick City Attorney B4-35