HomeMy WebLinkAbout11/07/1995, C-13 - AMENDMENT NO. 2 TO AGREEMENT WITH PIMA GRO SYSTEMS, INC. FOR MANAGEMENT AND DISPOSAL/RECLAMATION OF THE CITY'S BIOSOLIDS. �IIII�IIN►I�uIIIiIIIIIIlIIUIII f MEETING ATE:
Ui�u►► cityo san tuts osispo 11/07/95
COUNCIL AGENDA REPORT ITEM MB R
FROM: John E. Moss Prepared By: David C. Hix
Utilities Director Wastewater Division Manager
SUBJECT:
Amendment No. 2 to Agreement with Pima Gro Systems, Inc. for Management and
Disposal/Reclamation of the City's Biosolids.
CAO RECOMMENDATION:
By motion, amend the Agreement with Pima Gro Systems Inc. (contractor) for management
and disposal/reclamation of the City's biosolids for an additional year. Authorize Mayor to
execute amendment with contractor subject to the following terms:
a. Cost for services will be $27.75 per ton biosolids removed to a facility in Kem,
Fresno or Merced County and/or $19.50 per ton biosolids removed to a facility in
San Luis Obispo County when permitted.
b. Biosolids will be hauled and applied to permitted farmland(s) in compliance with
applicable rules and regulations.
C. Contract duration of one year.
DISCUSSION:
During the past three years the City has contracted with Pima Gro Systems Inc., to land
apply the Water Reclamation Facility's (WRF) biosolids. Pima Gro has hauled and land
applied approximately 2,300 tons of the City's biosolids over the past year to permitted
agricultural land in Kern County. Besides hauling, Pima Gro also provides all the required
sampling, analysis and reports required for land application. The City's contract with Pima
Gro has an option for at least a one year extension. This is the second extension of Pima
Gro's contract.
One element of Pima Gro's contract is to pursue a biosolids reclamation site in San Luis
Obispo County. The site would provide a savings of$8.25/ton and offers a more sensible
alternative to hauling out of the county. During the past year Pima Gro has submitted all of
the additional information requested by California Regional Water Quality Control Board
(CRWQCB) to complete their permit application. Stringent permitting requirements from the
CRWQCB and agreement on which agency should perform the necessary requirements for
the California Environmental Quality Act (CEQA) have slowed the application process.
C/3 i
City Of San L"IS OBISPO
COUNCIL AGENDA REPORT
Biosolids Dis/Rec
November 7, 1995
Page 2
Several months ago the CRWQCB agreed to perform CEQA review and is working to
complete it soon. Board staff would like to send Pima Gro's application to the board for
approval on the first meeting of 1996. This will correspond with the CRWQCB'S general
order for permitting biosolids reuse in the Central Coast Region. All past problems with the
permitting requirements have been resolved and Pima Gro is confident that they will be
applying biosolids in San Luis Obispo by early next year.
Pima Gro has provided the City with a high level of service and professionalism at a very
competitive price. Staff feels that Pima Gro is committed to obtaining a San Luis Obispo
County facility which will offer the best long term price for responsible biosolids
reclamation.
Below is a brief description of what other local agencies are doing with their biosolids.
Please note that the City of San Luis Obispo's WRF generates significantly more biosolids
then most of the agencies listed below.
Santa Maria - Composting. Santa Maria is composting biosolids with manure from a local
stockyard. Currently a large pile of compost material is stockpiled on site and Santa Maria
has had some difficulty in having the material removed on a regular basis. Properly
composting these materials costs roughly what the City pays to have its biosolids loaded,
hauled and land applied.
Cambria - Liquid applied to ground. CRWQCB is requiring Cambria to submit more
documentation and is investigating the agency's disposal method. This method of disposal
will likely not be allowed in the future.
California Men's Colony (CMC) - Land application to the new Dairy Creek (El Chorro)
golfcourse*. CMC has some biosolids that will be applied to the new golfcourse, the
remainder will be hauled by Pima Gro. CMC has had difficulties operating its digesters and
some of its biosolids are not well digested and will not meet the CRWQCB's criteria for
application to the golfcourse.
South San Luis Obispo County Sanitary District - Local permitted land application and
possible one time land application to the new Dairy Creek (El Chorro) golfcourse*.
Paso Robles - Biosolids used as an intermediate cover at City landfill.
Morro Bay - Local unpermitted land application to agricultural land. Morro bay has been
required by the CRWQCB to submit an application for biosolids reuse.
I
-/3-2
�����i�i�►►►�IIIIIIIIII�' ����lll City of San LUIS OBISPO
COUNCIL AGENDA REPORT
Biosolids Dis/Rec
November 7, 1995
Page 3
* Dairy Creek (El Chorro) golfcourse will be using some of CMC's biosolids and possibly
South San Luis Obispo County Sanitation District's to amend the soil. Permission has been
granted for this application by the CRWQCB as a one time waiver of discharge
requirements. Currently County staff have said they have enough biosolids to amend the
entire project and are not interested in acquiring more material. Specific responsibility and
methods for monitoring, sampling, reporting, application and site specific restrictions have
not been established for this project. This may make the agencies who have participated in
this project liable in the future for any problems due to poor material and/or site
management.
FECAL EMPACT:
The identified cost for biosolids reuse at 27.75/ton for 1995-96 is $105,000. Adequate funds
have been budgeted and are available in the Water Reclamation Facility Budget.
Staff budgeted $105,000 for 1995-96 to have all annually generated biosolids and some
biosolids which have been stored from the past year to be hauled. Additionally, as stated
earlier, continued efforts with Pima Gro and the CRWQCB should yield a local reuse site
within the requested period of contract extension and offer additional significant ongoing
savings.
ALTERNATIVES:
1. Solicit new bids. Staff does not recommend this alternative because Pima Gro has
provided competitive prices with excellent service. Staff and Pima Gro have invested
a significant amount of time and effort working with the CRWQCB to develop a local
reuse site. Pima Gro is very close to receiving its permit for a local reuse operation.
Remaining with Pima Gro would be to the City's advantage. Staff recommends the
City continue to work with Pima Gro to obtain the lower rates for a local reuse site.
Also, there are no other permitted application/reuse sites capable of accepting the
City's biosolids within this County or the Central Coast Region.
Attachment: Amendment
Agreement
AMENDMENT NO. 2
AGREEMENT FOR SLUDGE MANAGEMENT AND DISPOSAL/REFUSE SERVICES
BETWEEN CITY OF SAN LUIS OBISPO AND PIMA GRO SYSTEMS, INC.
THIS AMENDMENT NO. 2, entered into this day of November, 1995, by and
between the City of San Luis Obispo (herein referred to as CITY) and Pima Gro Systems,
Inc. (herein referred to as CONTRACTOR), provides for changes to the CONTRACTOR
Agreement dated November 30, 1992, as follows:
WITNESSETH
WHEREAS, CONTRACTOR was hired by the City to land apply the Water
Reclamation Facility's biosolids to agricultural land in Kern, Fresno and/or Merced Counties;
WHEREAS, CONTRACTOR is working expediently to attain a permit to obtain a
biosolids reclamation site in San Luis Obispo County providing a cost savings and alternative
to hauling out of the County through the California Regional Water Quality Control Board;
WHEREAS, CONTRACTOR has provided the City with a high level of service and
professionalism at a very competitive price;
NOW, THEREFORE, in consideration of their mutual covenants the parties hereto
agree as follows:
1. Cost for services will be $27.75 per ton biosolids removed to a facility in Kem, Fresno or
Merced County and/or$19.50 per ton biosolids removed to a facility in San Luis Obispo
County when permitted
2. Biosolids will be hauled and applied to permitted farmland(s) in compliance with applicable
rules and regulations.
3. Contract duration of one year.
4. All other terms and conditions of the "Agreement for Sludge Management and Disposal/Reuse
Services" (A-84-92-CC), dated November 30, 1992 shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT on
the year and date first written above.
CITY OF SAN LUIS OBISPO PIMA GRO SYSTEMS, INC.
By:
ATTEST: Approved As to Form:
City Clerk ityfor y
A-84-92—CC
_ AGREEMENT FOR SLUDGE MANAGEMENT
AND DISPOSAL/REUSE SERVICES
This agreement is made between:
The City of San Luis Obispo hereinafter referred to as the "City",
AND
PIMA GRO SYSTEMS, INC. registered to do business in the State of
California, hereinafter referred to as "Contractor".
The Contractor agrees to provide sludge management and disposal/reuse services for the City of
San Luis Obispo's Water Reclamation Facility located in the City of San Luis.Obispo, California.
The City is currently stockpiling sludge at it's Water Reclamation Facility.
The intent of this agreement is for the contractor to provide an absolutely reliable and continuous
sludge removal service during the agreement term. The contractor shall provide all services related
to transportation, disposal/reuse, permitting and monitoringof the City's wastewater sludge and
the site of application in accordance with all applicable Local, State and Federal requirements. The
following specific items are a part of the agreement.
1. SLUDGE VOLUME
A. Contractor agrees to accept and remove the entire quantity of sludge currently
stockpiled at the City's Water Reclamation Facility, approximately 4,000 cubic
yards.
B. Contractor agrees to haul up to 100 percent of the sludge being generated by the
City's facility, approximately 1,500 cubic yards per year.
These quantities are approximations only, based on anaerobically digested sludge
dewatered to 50% total solids.
2. PERMITS
The Contractor agrees to provide the City with copies of all required approved regulatory
permits for hauling and disposal/reuse of the entire quantity of sludge as specified in item 1
above. The contractor agrees to pay all fees associated with permitting.
3. MONITORING AND REPORTING
The Contractor agrees to provide all required monitoring and reporting imposed by all
regulatory agencies having jurisdiction over the Contractor's disposal/reuse operations, and
shall provide the City with copies of all reports involving the City's sludge. In addition the
contractor agrees to provide the City with a document for each load of sludge received
from the City which is to include the date, time, driver, destination and estimated load
volume. The estimated load volume shall be signed by a City-representative prior to
removing the load from the City's facility.
1
A-84-92—CC
4. ENVIRONMENTAL
+ The Contractor agrees to provide all necessary capital improvements and operating
expenses needed at the disposal/reuse site, to protect surface and groundwaters and the air
resources environment per the requirements of the responsible regulatory agencies. The
Contractor also agrees to design and operate the hauling and disposal/reuse program for the
City's sludge in full compliance with all Federal, State and Local environmental
requirements. The Contractor shall provide covers for the trailers to prevent any loss of
sludge while being transported from the Water Reclamation Facility to the final point of
application.
5. SLUDGE QUALITY
The City shall be responsible for providing a sludge of quality acceptable by the California
Department of Health Services as a non-hazardous material. In the event that, for any
reason, the material supplied by the City is not acceptable under State and Federal
guidelines, the City will stockpile that sludge which is not acceptable at its Water
Reclamation facility and shall be responsible for the classification of the waste and its
subsequent disposal.
The City shall be responsible for providing periodic testing of the sludge in accordance with
the provisions of the City's NPDES Permit No. CA0049224. The current requirement for
sludge monitoring is once annually. In addition, the City performs periodic process control
and quality analyses on the sludge treatment process and sludge for internal use. The City
shall maintain and make available to the Contractor all documentation related to sludge
quality and treatment process for the sludge to be hauled by the Contractor.
6. SLUDGE LOADING
A. The contractor shall provide sufficient trailers, loaders and equipment operatorsto
remove the currently stockpiled sludge within a 6 month time frame. Contractor
will be responsible for loading all sludge currently stockpiled at the Water
Reclamation Facility.
B• The contractor shall provide sufficient trailers, loaders and equipment operators to
remove the sludge being continuously generated at least quarterly.
7. LOAD WEIGHT
The Contractor shall be responsible for insuring that each trailer is loaded to the proper
weight for hauling the sludge. The contractor shall be responsible for periodically checking
the load weight and shall be responsible for and pay any and all expenses incurred due to
an overloaded trailer and all traffic violations incurred as a result of hauling operations.
8. SCHEDULE
The Contractor will provide a sufficient number of trailers and a pickup frequency sufficient
to handle the sludge volume at all times. The Contractor shall develop a mutually agreeable
schedule based on accommodating the City's sludge production schedule and th
requirements of the Contractor's disposal/reuse site and haul routes. e
2
9. LICENSING
The Contractor shall be responsible for insuring that all equipment utilized in connection
with this contract shall be fully licensed to operate in the State of California and all public
highway drivers and operators of such equipment shall be fully licensed by the State of
California Department of Motor Vehicles.
10. INSURANCE
The Contractor shall secure and maintain in force throughout the duration of the contract all
insurance as required, and shall also provide all endorsements of such insurance as
identified in the attached Exhibit 1.
11. PROJECT START-UP
The Contractor shall begin hauling sludge to the proposed discharge area within 30 days
following notice to proceed.
12. SITE INSPECTION
The Contractor shall provide access to the disposal/reuse site to City representatives upon
request of the City.
13. INCLEMENT WEATHER
There may be times during the year due to inclement weather where it will be impossible to
load the trailers or haul sludge. The Contractor and the City shall mutually modify the haul
schedule to make up for lost sludge removal time and avoid excessive stockpiling of sludge
on City properties.
14. DISPOSAL SITE AND OPERATIONS
The Contractor shall provide sufficient facilities (land) to accommodate 150 percent of the
total anticipated amount of the sludge to be disposed/reclaimed during the contract period.
The Contractor shall also be responsible for furnishing all equipment, labor and materials
required for the Contractor's disposal/reuse operations.
15. AGREEMENT TERM
Two years from the date of execution of the agreement (with option for at least one
additional year).
16. PAYMENT
The Contractor shall be paid by the City for completed work and services rendered under
this agreement as follows:
a. Payment shall be made on a basis of $19.50 per ton of sludge hauled from
the City's facility to Pima Gro's San Luis Obispo County site and $27.75 per
ton of sludge hauled to Pima Gro's Merced County site.
3
b. The Contractor may submit vouchers to the City once per month during the
progress of the work. Such vouchers will be checked by the City and upon
approval thereof, payment will be made to the Contractor in the amount
approved.
C. Final payment of any balance due the Contractor of the total contract price
earned will be made promptly by the City upon its ascertainment and
verification by the City after the completion of the work under this
agreement and its acceptance by the City.
d• Payment as provided in this section shall be full compensation for work
performed, services rendered and for all materials, supplies, equipment and
incidentals necessary to complete the work.
e. The Contractor's records and accounts pertaining to this agreement are to
be kept available for inspection by representatives of the City and State for
a period of three (3) years after final payments, Copies shall be made
available upon request.
f. The San Luis Obispo County site is the primary site - removal of biosolids to
the Merced County site shall be on approval of the Utilities Director.
17. COMPLIANCE WITH LAWS
The Contractor shall, in performing the services contemplated by this agreement, faithfully
observe and comply with all Federal, State, and local laws, ordinances and regulations
applicable to the services to be rendered under this agreement.
18. INDEMNIFICATION
Contractor agrees to defend, indemnify, protect and hold City and its agents, officers and
employees harmless from and against any and all claims asserted or liability established for
damages or injuries to any person or property, including injury to Contractor's employees,
agents or officers which arise from or are connected with or are caused or claimed to be
caused by the acts or omissions of Contractor, and its agents, officers or employees, in
performing the work or services herein, and all expenses of investigating and defending
_ against same; provided, however, that Contractor's duty to indemnify and hold harmless
shall not include any claims or liability arising from the established sole negligence or willful
misconduct of the City, its agents, officers or employees.
19. DISCRIMINATION PROHIBITED
The Contractor, with regard to the work performed by it under this agreement; will not
discriminate on the grounds of race, color, national origin, religion, creed, age, sex,'or the
presence of any physical or sensory handicap in the selection and retention of employees or
procurement of materials or supplies.
20. ASSIGNMENT
The Contractor shall not sublet or assi
without the express written consent ogn any of the services covered by this agreement
f the City.
4
21. NON-WAIVER
- Waiver by the City of any provision of this agreement or any time limitation provided for in
this agreement shall not constitute a waiver of any other provision.
22. TERMINATION
a. The City reserves the right to terminate this agreement at any time by giving ten
(10) days written notice to the contractor.
b. In the event of the death of a member, partner or officer of the contractor, or any
of its supervisory personnel assigned to the project, the surviving members of the
contractor hereby agree to complete the work under the terms of this agreement, if
requested to do so by the City. This section shall not be a bar to renegotiations of
this agreement between the surviving members of the contractor and the City, if
the City so chooses.
23. NOTICES
Notices to the City of San Luis Obispo shall be sent to the following address:
City of San Luis Obispo
Utilities Department
955 Morro Street
San Luis Obispo, CA 93401
Notices to the contractor shall be sent to the following address:
Pima Gro Systems, Inc.
P.O. Box 7547
;Redlands, CA 92375-0547
24. INTEGRATED AGREEMENT
This agreement together with attachments or addenda, represents the entire and integrated
agreement between the City and the contractor and supersedes all prior negotiations,
representations, or agreements written or oral. However, the proposal submitted by the
contractor and related documents establish the background and framework in which the
contract was prepared and do set forth the expectations of each party to the contract.
This agreement may be amended only by written instrument signed by both the City and
Contractor.
DATED this 30thday.of November 1992.
SARA OBISPO CONTRACTOR
City A ministrative Officer President
Pima Gro Systems, Inc.
Att C � ,
D'a ladwell, ity Cie
' 5
EXHIBIT 1
INSURANCE REQUIREMENTS FOR CONTRACTORS
Contractor shall procure.and maintain for the duration of the contract insurance against claims for injuries to persons or
damages to Property which may arise from or in connection with the performance of the work hereunder by the Contractor,
his agents, representatives, employees or subcontractors.
Minimum Scooe of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Cffice Commercial General Lizbiliy coverage (occurrence form C3 0007).
2. Insurance Services Otfice form nurnber CA 0001 (Ed. 1/67) covering Autornobile Uab;l:y, Code 1 (any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.
Minimum Limits of I.�surance
Contractor shall maintain limits no less than:
1. General Liability: 81,000000 per occurrence for bodily injury, personal injury and Property damage. N
Commercial General Uzbility or other form with a general aggregate limit is used, either the general aggregate
limit shall apply separately to this projeC/Ioca;ion or the general aggregate limit shall be twice the required
occurrence limit.
2. A;nomobile liability: $1,000,003 per accident for bodily injuy and proper, damage.
3. Employer's Liability: 81,000,000 per accident for bodily injury or disease.
Deductible and SeN.insvred Retentions
es or
red
ntions must be
-!ared to and
he insrrertshlall rreducerorvelim nate such deduc'bles.of self-insured retentions roved as respthe ects the Ciy, its officers, officials,
employees and volunteers; or the Ccn;rzror shall procure a bond City. At the Option of the City, either:
claim administration and defense expenses. guaranteeing payment of losses and related investigations,
Other Insurance Provisions
The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
1. The Ci;y, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects:
liability arising out cf activities performed by or on behalf of the Contractorroducts
and of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased, hired or
borrowed by the Contractor. The coverage shall contain no special limitationson the o prations
afforded to the City, its o'l cers, officials, employees, agents or volunteers. scopecompleted
{peotect;on
2. For any claims'related to this project, the Contractor's Insurance coverage shall be primary insurance as respects "
the City, its officers, officials, employees, agents or volunteers. Any insurance or self-insurance maintained by the
City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall
not contribute with it.
3. Any failure to comply with reporting or other provisions of thepolicies, including breaches of warranties, shall not
affect coverage provided to the City, its officers, officials, employees, agents or volunteers.
4. The Contractor's 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 liabili Y.
5. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended,
voided, cancelled et 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.
A."'ceotzbitiN of Insurers
Insurance is to be placed with insurers with a current A.M. best's rating of no less than AMI.
Verification of Coveraoe
Contractor shall furnish the City with a certificate of insurance showing required coverage. Original endorsements effecting .
general liability and automobile liability coverage are also required by this ealuse. The endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the
Cry before work eonmences.
Subcontractors
Contractor shall include all subcontracios as insured under its policies or shall furnish separafe certificates and endorsements
for each subcontractor. All coverages for subeontractors shall be subject to all of the requirements stated herein.
L17/3-G
AMENDMENT NO. 1
AGREEMENT FOR SLUDGE MANAGEMENT AND DISPOSAL/REUSE SERVICES
BETWEEN CITY OF SAN LUIS OBISPO AND PIMA GRO SYSTEMS, INC.
THIS AMENDMENT NO. 1, entered into this 5th day of December, 1994, by
and between the City of San Luis Obispo (herein referred to as CITY) and Pima Gro
Systems, Inc. (herein referred to as CONTRACTOR), provides for changes to the
CONTRACTOR Agreement dated November 30, 1992, as follows:
WITNESSETH
WHEREAS, CONTRACTOR was hired by the City to land apply the Water
Reclamation Facility's biosolids to agricultural land in Fresno and Merced Counties;
WHEREAS, CONTRACTOR is working expediently to attain a permit to obtain a
biosolids reclamation site in San Luis Obispo County providing a cost savings and alternative
to hauling out of the County through the California Regional Water Quality Control Board;
WHEREAS, CONTRACTOR has provided the City with a high level of service and
professionalism at a very competitive price;
NOW, THEREFORE, in consideration of their mutual covenants the parties hereto
agree as follows:
1. Cost for services will be $27.75 per ton biosolids removed to a facility in Fresno or Merced
County and/or $19.50 per ton biosolids reinoved to a facility in San Luis Obispo County when
permitted.
2. Biosolids will be hauled and applied to permitted farmlands) in compliance with applicable
rules and regulations.
3. Contract duration of one year.
4: All other terms and conditions of the "Agreement for Sludge Management and Disposal/Reuse
Services' (A-84-92-CC), dated November 30, 1992 shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT on
the year and date first written above.
CITY OF SAN LUIS OB1SP PIM 0 SYSTEMS, INC.
By: �
Allen K. Settle, Mayor William C. Skinner, General Manager
ATTEST: Approved As to Form:
r-
ty Clerk iane Glad well �Wt!XnjKfyJorgensen