HomeMy WebLinkAbout02/19/1991, 7 - WASTEWATER SLUDGE DISPOSAL/RECLAMATION AGREEMENT WITH BIO-GRO SYSTEMS, SPECIFICATION NO. 90-41 AGREEMENT NO. A 110-90-CA. (� MEETING DATE:
jiIIIII�III�I�''111I!jj city of San tuts OBispo February 19 1991
_ COUNCIL AGENDA REPORT ITEM NUMBER:407
FROM: William T. Hetlandll� Prepared By: John E. Moss
Utilities Director Wastewater Division Manager f
SUBJECT:
Wastewater Sludge Disposal/Reclamation Agreement With Bio-
Gro Systems, Specification No. 90-41 Agreement No. A 110-
90-CA.
CAO RECOMMENDATION:
By motion, approve and authorize the Mayor to execute, an
agreement with Bio-Gro Systems for Disposal/Reclamation of
the City's stockpiled wastewater sludge subject to the
following terms:
a. Cost for the services will be $34 .50 per cubic
yard of sludge removed.
b. Completion of the project not to exceed six (6)
months from notice to proceed.
DISCUSSION:
BACKGROUND
In October 1987 the City's wastewater sludge was found to
contain elevated levels of soluble lead. The sludge was
then automatically classified as hazardous waste and as such
could no longer be disposed of at other than a hazardous
waste disposal landfill (class 1 landfill) . Staff
immediately began working with the appropriate regulatory
agencies in an attempt to declassify the sludge.
On February 23, 1990 the City received a nonhazardous
classification of the sludge from the State Department of
Health Services (DHS) . This opened the door for disposal
and/or reuse of the sludge, however, it still requires that
the sludge be managed in such a way as to not present a
threat to water quality. Disposal of the sludge is being
regulated by the California Regional Water Quality Control
Board (RWQCB) .
In July 1990 staff solicited proposals for disposal and or
reclamation of the sludge. Proposals were solicited for
short term disposal of the existing sludge stockpiles,
approximately 6, 000 cubic yards, and long term disposal of
the sludge being generated at the City's wastewater
facility. Five proposals were received and evaluated by
staff to determine which provided the most cost effective
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�!�;U city of San .aIS osIspo
COUNCIL AGENDA REPORT
Sludge Disposal Agreement
Meeting of February 19, 1991
Page 2
and environmentally safe alternative. The City's consulting
engineer, Brown and Caldwell, prepared a Sludge Management
and Disposal Plan in July 1990 which outlined the various
disposal/reclamation options available to the City from a
regulatory and environmental standpoint. This Plan formed
the basis of the request for proposals and subsequent
proposal evaluations.
The lowest responsible proposal was submitted by the firm of
Biosystems Management International (BMI) . They proposed to
utilize the sludge as an amendment to the final cover soils
of the Los Osos Landfill. Staff worked closely with the
RWQCB, the County of San Luis Obispo, and BMI in obtaining
the appropriate permits to implement this proposal.
However, due to a reluctance on the part of the County to
allow the sludge to be applied at the landfill site, the
project was dropped. Staff then began working with the firm
of Bio-Gro Systems, the second lowest responsible proposer,
in obtaining the appropriate permits and negotiating the
contract.
A copy of the Request for Proposals and copies of the ,
proposals received are available, for Council to review, in
the Council Office.
PROPOSED RECLAMATION PLAN
The firm of Bio-Gro Systems acting as consultant for the
Gardner ranch has submitted a proposal to transport and
utilize the existing stockpiled sludge ( app. 8, 000 cu.yds. )
to amend and fertilize the soils on the Gardner Ranch
property near Buellton, CA. The sludge application will
serve to enhance the agricultural productivity of the site
by improving the soil fertility and water holding capacity
of the soils. This is considered a beneficial use of the
sludge.
The Gardner Ranch is currently permitted by the California
Regional Water Quality Control Board (RWQCB) to receive,
compost, and land apply municipal sewage sludge on its
agricultural properties. They are currently receiving
sludge from the City of Santa Barbara, Buellton Community
Services District, and Montecito Sanitary District. The
RWQCB has provided permission for the Gardner Ranch to also
accept sludge from the City of San Luis Obispo. The Gardner
Ranch operation meets all Federal,State and Local rules and
regulations for the beneficial use of sludge.
���h�ItlfNllllEli� IIiU'ICI'�11`I City Of San LUIS OBISPO
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WUMe COUNCIL AGENDA REPORT
i
Sludge Disposal Agreement
Meeting of February 19, 1991
Page 3
This proposed plan and agreement covers only the short term
disposal of the sludge currently stockpiled at the
wastewater treatment plant. Long term disposal of the
sludge being generated will be covered under a separate
agreement. Staff feels that this plan will provide the City
with the most cost effective and environmentally safe
beneficial use of the stockpiled sludge.
FISCAL IMPACT:
The total estimated cost for this project is $289,800, as
detailed below:
Cost per cubic yard $34.50
Estimated cubic yards 8 . 000
TOTAL ENGINEER'S ESTIMATE $276, 000
Contingencies @ 5% _$13 .800
TOTAL PROJECT COST $289,800
A copy of Bio-Gro's proposal is available in the Council
Office for review.
On June 12, 1990, Council approved a wastewater treatment
operating program budget adjustment request for the 1990-91
fiscal year in the amount of $250,000 for the disposal/reuse
of the stockpiled sludge (page A-5, 1989-91 Financial Plan
and Approved 1991 Budget) . Estimated cost of disposal at
the time of the budget adjustment request was $40 per cubic
yard for 6, 000+- cu.yds. Since that time an additional
2, 000 .cu.yds. of sludge has accumulated on site due to the
cleaning of two (2) of the anaerobic digesters. If
approved, this agreement will fall approximately $39,000
above the original total estimate however is less than the
original estimated price per cu.yd. Sufficient funding is
available in the 1990-91 wastewater program balance to cover
the additional cost of this project.
Prior expenditures related to the sludge disposal are
estimated as follows:
Laboratory analyses $10,000
DHS classification 7, 500
Brown and Caldwell Sludge
Management and Disposal Plan 5. 000
TOTAL PRIOR COSTS $22,500
An estimated on going annual expenditure of $50, 000 for
removal of the sludge being generated was also identified
and approved by Council on June 12, 1990. As stated
earlier, staff will be bringing a separate agreement for
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MOGs COUNCIL AGENDA REPORT •
Sludge Disposal Agreement
Meeting of Februry 19, 1991
Page 4
these long term services to Council for approval at a later
date as appropriate permits from the RWQCB have not yet been
obtained.
ALTERNATIVES:
1. Direct staff to develop and implement a City operated
disposal/reuse program for the sludge using City
resources, personnel and properties. This alternative
is not recommended as sufficient resources, personnel
equipment and properties are not available. This
alternative would not be a cost effective solution at
this time. The Public Works Solid Waste Coordinator is
investigating this option as a future co-composting
project. In addition, there is an immediate need to
remove the sludge from the treatment plant site prior
to the start of the Unit 3 construction project and the
capital facilities for composting will take several
years to develop.
RECOMMENDATION:
By motion, approve and authorize the Mayor to execute, an
agreement with Bio-Gro Systems for disposal/reclamation of
the City's stockpiled wastewater sludge subject to the
following terms:
a. Cost for the services will be $34.50 per cubic
yard of sludge removed.
b. Completion of the project not to exceed 6 months
from notice to proceed.
Attachments:
Agreement
7- L/
AGREEMENT FOR SLUDGE MANAGEMENT
AND DISPOSAL/REUSE SERVICES
This agreement is made between:
The City of San Luis Obispo hereinafter referred
to as the "City" ,
AND
BioGro Systems. Inc. a Corporation
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
Wastewater Treatment Facility located in the City of San Luis
Obispo, California. The City is currently stockpiling sludge at
it's wastewater treatment facility.
The intent of this agreement is for the contractor to provide an
absolutely reliable and continuous sludge removal service during
the agreement term. The contractor shall provide all services
related to transportation, disposal/reuse, permitting and
monitoring of the City's wastewater sludge and the site of
application in accordance with all applicable Local, State and
Federal requirements. The following specific items are a part of
the agreement.
1. SLUDGE VOLUME
Contractor agrees to accept and remove the entire quantity
of sludge currently stockpiled at the City's wastewater
treatment facility, approximately 8, 000 cubic yards.
These quantities are approximations only, based on
anaerobically digested sludge dewatered to 50% total solids.
2. PERMITS
The contractor agrees to provide the City with copies of all
required approved regulatory permits for hauling and
disposal/reuse of the entire quantity of sludge as specified
in item 1 above. The contractor agrees to pay all fees
associated with permitting.
3 . MONITORING AND REPORTING
The contractor agrees to provide all required monitoring and
r reporting imposed by all regulatory agencies having
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jurisdiction over the contractor's disposal/reuse
operations, and shall provide the City with copies of all
reports involving the City's sludge. In addition the
contractor agrees to provide the City with. a document for
each load of sludge received from the City which is to
include the date, time, driver, destination and estimated
load volume. The estimated load volume shall be signed by a
City representative prior to removing the load from the
City's facility.
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 wastewater treatment
facility to the final point of application.
5. SLUDGE QUALITY
The City shall be responsible for providing a sludge of
quality acceptable by the California Department of Health
Services as a non-hazardous material. In the event that,
for any reason, the material supplied by the City is not
acceptable under State and Federal guidelines, the City will
stockpile that sludge which is not acceptable at it's
wastewater treatment facility and shall be responsible for
the classification of the waste and it's subsequent
disposal.
The City shall be responsible for providing periodic testing
of the sludge in accordance with the provisions of the
City's NPDES Permit No. CA0049224. The current requirement
for sludge monitoring is once annually. In addition the
City performs periodic process control and quality analyses
on the sludge treatment process and sludge for internal use.
The City shall maintain and make available to the contractor
all documentation related to sludge quality and treatment
process for the sludge to be hauled by the contractor.
6. SLUDGE LOADING
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
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responsible for loading all sludge currently stockpiled at
the wastewater treatment facility.
7. LOAD WEIGHT
The contractor shall be responsible for insuring that each
trailer is loaded to the proper weight for hauling the
sludge currently stockpiled at the City's facility. The
contractor shall be responsible for periodically checking
the load weight and shall be responsible for and pay any and
all expenses incurred due to an overloaded trailer and all
traffic violations incurred as a result of hauling
operations.
8. SCHEDULE
The contractor will provide a sufficient number of trailers
and a pickup frequency sufficient to handle the sludge
volume at all times. The contractor shall develop a
mutually agreeable schedule based on accommodating the
City's sludge production schedule and the requirements of
the contractor's disposal/reuse site and haul routes.
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 full vehicle insurance for all
equipment, workers compensation insurance as required by
law, comprehensive general liability insurance with a
minimum coverage of $500,000 per occurrence and $1,000,000
aggregate for personal injury, and $500,000 per
occurrence/aggregate for property damage.
11. PROJECT STARTUP
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.
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13 . INCLEMENT WEATHER
There may be times during the year due to inclement weather -1'
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 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
This agreement shall be in force and valid for a period of
six (6) months from the date of entry.
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 $--24. 50 per
cubic yard of sludge hauled from the City's
facility.
b. The contractor may submit vouchers to the City
once per month during the progress of the work.
Such vouchers will be checked by the City and upon
approval thereof, payment will be made to the
contractor in the amount approved.
C. Final payment of any balance due the contractor of
the total contract price earned will be made
promptly by the City upon its ascertainment and
verification by the City after the completion of
the work under this agreement and its acceptance
by the City.
d. Payment as provided in this section shall be full
compensation for work performed, services rendered
and for all materials, supplies, equipment and
incidentals necessary to complete the work.
e. The contractor's records and accounts pertaining
to this agreement are to be kept available for
inspection by representatives of the City and
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State for a period of three (3) years after final
1 payments. Copies shall be made available upon
request.
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
The contractor shall indemnify, defend and hold harmless the
City, its officers, agents and employees, from and against
any and all claims, losses of liability, or any portion
thereof, including attorneys fees and costs, arising from
injury or death to persons, including injuries, sickness,
disease or death to contractor's own employees, or damage to
property occasioned by a negligent act, omission or failure
of the contractor.
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.
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
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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:
BioGro Systems
180 Admiral Cochrane Drive, Suite 305
Anapolis, Maryland 21401
24. INTEGRATED AGREEMENT
This agreement together with attachments or addenda,
represents the entire and integrated agreement between the
City and the contractor and supersedes all prior
negotiations, representations, or agreements written or
oral. However, the proposal submitted by the contractor and
related documents establish the background and framework in
which the contract was prepared and do set forth the
expectations of each party to the contract. This agreement
may be amended only by written instrument signed by both the
City and Contractor.
DATED this day of , 1990.
CITY OF SAN LUIS OBISPO
HONORABLE MAYOR RON DUNIN CONSULTANT
Title
Attest/Authenticated: Approved as to form:
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C.A.O. SPECIAL REPORT
February 1, 1991
FROM: William T. Hetland Prepared By: John E. Moss
Utilities Director Wastewater Division Manager
SUBJECT:
Wastewater Sludge Disposal/Reclamation, additional funding
required, use of 1989-90 wastewater carryover funds.
RECOMMENDATION:
Approve the use of $39,000 of 1989-90 Wastewater Carryover
funds to provide sufficient funding for completion of the
wastewater sludge disposal/reclamation agreement with BioGro
Systems Inc.
DISCUSSION:
The City has been stockpiling its wastewater sludge for the
last three years due to elevated concentrations of soluble
lead. After extensive review and analysis, the City
received a nonhazardous classification of the sludge from
the State Department of Health Services. Staff subsequently
requested proposals for sludge management and
disposal/reclamation services.
Staff will be bringing an agreement with BioGro Systems to
Council for approval ozaFebruary 19, 1991 for the above
mentioned services. An additional $39,000 will be required
to complete the sludge management project and staff is
requesting CAO approval for the use of 1989-90 wastewater
carryover funds.
Detailed discussion of the project and the related impacts
can be found in the attached February 19, 1991 Council
Agenda Report.
FISCAL IMPACT:
To date $48,096 have been expended from the 1989-90
wastewater carryover fund balance. These expenditures have
been for collection system maintenance program upgrade,
organization development, departmental computer purchases
and vactor repairs. There is a remaining carryover fund
balance of $174,795. Approved expenditure of $39,000 for
this project will leave a wastewater carryover fund balance
of $135,795.
Total expenditure for the project is estimated at $289,000
as detailed in the attached agenda report. $250, 000 for
this project was previously approved as a 1990-91 operating
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C.A.O. SPECIAL REPORT
water Sludge Disposal
February 1, 1991
Page 2
program change (page A-5 1989-91 Financial Plan and Approved
1990-91 Budget) .
RECOMMENDATION:
Approve the. use of $39, 000 of 1989-90 Wastewater Carryover
funds to provide sufficient funding for completion of the
wastewater sludge disposal/reclamation agreement with BioGro
Systems Inc.
Approved:
City Finance Director
C' y tto ne
City Admirristratofve Officer
.. city o� San Luis oBiSpo NUMBER
Efts'slod BuaGCt amendment QEquest
REQUESTING DEPARTMENT FUND AMENDED FUND NO.
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REVENUES
ACCOUNT DESCRIPTION DEPT. OBJ. SUB-OBJ. CURRENT PROPOSED AMENDED
BUDGET AMENDMENTS BUDGET
TOTAL
EXPENDITURES
ACCOUNT DESCRIPTION DEPT. OBJ. SUB-OBJ. CURRENT PROPOSED AMENDED
BUDGET AMENDMENTS BUDGET
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TOTAL Q
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