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HomeMy WebLinkAbout10/20/1998, C8 - AMENDMENT NO. 1 TO AGREEMENT WITH BIOGRO SYSTEMS, INC. FOR WASTEWATER SLUDGE SOLIDS MANAGEMENT AND DISPOSAL/RECLAMATION OF THE CITY'S BIOSOLIDS. counat OcD� Oct. 20 1998 acEnba REpoRt CITY OF SAN LUIS OBI/JS�POO FROM: John Moss,Utilities Ilirecto>J Prepared By: David Hix, astewater Division Manager/ SUBJECT: Amendment No. 1 to Agreement with BioGro Systems,Inc. for wastewater sludge solids management and disposal/reclamation of the City's biosolids. CAO RECOMMENDATION By motion, amend the Agreement with Wheelabrator Water Tech Inc., Bio Gro Division (contractor) for management and disposal/reclamation of the City's biosolids for an additional two years. Authorize Mayor to execute amendment with contractor subject to the following terms: a. Cost for services will be $ 18.95 per ton biosolids removed from the Water Reclamation facility. b. Biosolids will be hauled and applied to permitted farmland(s) in compliance with applicable rules and regulations. c. Changes in costs resulting from local county/agency regulations regarding hauling and/or land application to be negotiated by the City and contractor. d. Contract duration of two years. DISCUSSION During the past two years the City has contracted with Wheelabrator Water Tech., Bio Gro Division (Bio Gro),to land apply the Water Reclamation Facility's (WRF)biosolids. Bio Gro has. hauled and land applied approximately 6,000 tons of the City's biosolids over the past two years to farmland in San Luis Obispo County as a demonstration application and permitted agricultural land in Merced and Kern Counties. During the past two years Bio Gro has aggressively pursued a biosolids reclamation site in San Luis Obispo County. In February of 1997 Bio Gro submitted an application to apply biosolids to a local farm. In May of the same year, Bio Gro received a waiver from the Central Coast Regional Water Quality Control Board (CCRWQCB) to land apply biosolids on that local farm as a demonstration project. The farmer, CCRWQCB, Bio Gro and City staff were pleased with the results of the project and felt that Bio Gro's application for a permitted facility would be approved by the CCRWQCB quickly. In May of this year Bio Gro was denied a permitted facility because the CCRWQCB wanted an Environmental Impact Report (EIR) for the project. Staff and the consultant feel that an EIR is not warranted and will make the project cost prohibitive. Currently the state is working on a state wide biosolids EIR that should address the issue. Since the May meeting the City's biosolids have been hauled to Kern and Merced counties. C8- / Council Agenda Report-Biosolids Services Contract Amendment Page 2 Bio Gro has provided the City with a high level of service and professionalism at an extremely competitive price. Currently Bio Gro is hauling and land applying the City's biosolids for $16.94 per ton. Because of problems acquiring a local permitted facility, Bio Gro 7s has quoted the City a new price of$18.95 per ton for the next two years for hauling biosolids to the Central Valley. Although higher than the current price, it is lower than the next lowest bidder's proposal submitted to the City two years ago. The City's agreement for biosolids services allows for two, one year extensions of the contact. Staff recommends a contract extension of two years because the proposed state biosolids EIR should be completed in two years, Bio Gro is offering an excellent price and service and additional amendments or an RFP will consume additional staff time next year at no savings to the City. Recently many counties in the Central Valley are looking at implementing ordinances that further regulate biosolids to recover costs for permit processing, inspection or road damage. Bio Gro has requested that they be able to negotiate any additional costs, due to a county or local agency passing a biosolids ordinance, with the City. The amendment would allow this, but if the City and BioGro could not agree to the cost, Bio Gro would provide biosolids services for 90 days at the price of$18.95 per ton, giving the City sufficient time to request new proposals. City staff have been worldng with the San Luis Obispo County health commission to help them better understand some of the health related issues relating to biosolids reclamation. The health commission is studying whether a county ordinance could better protect county residents. City staff is providing factual information and data to the commission and answering any question they may have regarding local biosolids issues. City staff's goal is if an ordinance is recommended, it would be sensible and allow the beneficial uses of biosolids to be utilized county wide. An information session will be held on November 14, at the Vet's Hall, to provide information about biosolids,biosolids regulations and biosolids management to the public. Staff feels that Bio Gro is committed to continuing to obtaining a San Luis Obispo County facility which will offer the best long term price for responsible biosolids reclamation. Problems with the CCRWQCB's requirements should be addressed with the state wide biosolids EIR and a San Luis Obispo County facility should be approved sometime after its adoption. FISCAL IMPACT The identified cost for annual biosolids disposal for 1998-99 at $18.95 per ton is approximately $57,000. Staff has budgeted $85,000 for 1998-99 to have all annually generated biosolids and biosolids which have been stored from last year's maintenance activities to be hauled. Adequate funds have been budgeted and are available in the Water Reclamation Facility Budget. ALTERNATIVES 1. Solicit new bids. Staff does not recommend this alternative because Bio Gro has provided competitive prices with excellent service. Staff does not believe that better prices and/or service can be secured by soliciting new bids. 2. Co-composting with yard waste. Staff does not recommend this alternative because large amounts of additional staff time would be needed to implement a composting program and Council Agenda Report-Biosolids Services Contract Amendment Page 3 currently the City lacks an appropriate site. Costs for a contractor to operate a composting operation for the City are unknown but may be higher. City staff will work with Cold Canyon Landfill to investigate the feasibility of using biosolids at the Landfill's composting operation. Currently the landfill is prohibited from using biosolids for co-composting. ATTACHMENTS Attachment: Amendment Agreement C S'3 AMENDMENT NO. 1 AGREEMENT FOR MANAGEMENT AND DISPOSAURECLAMATION OF BIOSOLIDS BETWEEN CITY OF SAN LUIS OBISPO AND WHEELABRATOR WATER TECH.,BIO GRO DMSION THIS AMENDMENT NO 1,entered into this day of November 1998,by and between the City of San Luis Obispo(herein referred to as the CITY)and Wheelabrator Water Tech Inc.,Bio Gro Division (herein referred to as CONTRACTOR),provides for changes to the CONTRACTOR Agreement dated December 19, 1996 as follows: WITNESSETH WHEREAS,CONTRACTOR was hired by the CITY to land apply the Water Reclamation Facility's biosohds to agricultural land in Kern and Merced counties; and WHEREAS,CONTRACTOR has provided the CITY with a high level of service and professionalism at a very competitive price and the CITY wishes to continue its contract with the CONTRACTOR; NOW,THEREFORE,in consideration of their mutual convents the parties hereto agree as follows: 1. Cost of services will be$18.95 per ton biosolids removed to a permitted facility 2. Biosolids will be hauled and land applied to perrrutted fam land(s)in compliance with all applicable laws,rules and regulations,whether local,state or federal. 3. Changes in costs resulting from local county/agency regulations regarding hauling and/or land application of biosolids will be immediately brought to the attention of the CITY by the CONTRACTOR If CITY and CONTRACTOR cannot reach an agreement on new costs, CONTRACTOR will provide CITY with biosolids services at the contract cost of S 18.95 per ton until CITY can acquire other biosolids management services within 90 days. 4. Contract duration of two years;from date of execution of this contact until December 19, 2000 5. All other terms and conditions of the Agreement for Management and Disposal/Reclamation of Biosolids"per specification 97-22,dated December 19, 1996 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 WHEELABRATOR WATER TECH INC.,BIO GRO DMSION By. ATTEST: Approved As to Fo : By: aGs, City Clerk t orn AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on this 19 day of_ December, 1996 . by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [Wheelabrator Water ], hereinafter referred to as Contractor. Tech Inc. , Bio Gro Division WITNESSETH: WHEREAS, on ( October 5, 1996 ], City invited proposals for Management and DisposaUReclamation ofBiosolids per Specification No. 97-22. WHEREAS, pursuant to said request, Contractor submitted a proposal which was accepted by City for said services. NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows: 1. TERM. The term of this Agreement shall be from the date of this Agreement is made and entered, as first written above, for a period of two years, with a possibility of two - one year extensions as mutually agreed. 2. INCORPORATION BY REFERENCE. City Specification No. 97-22 and Contractor's proposal dated [October 31, 1996 ], are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing services as specified in this Agreement, City will pay and Contractor shall receive therefor payments based upon the actual quantities hauled and disposed/reclaimed as specified in this proposal. 4. CONTRACTOR'S OBLIGATIONS. For and in consideration of the payments and agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to do everything required by this Agreement and provide services as described in Exhibit [ ] attached hereto-and incorporated into this Agreement. 13 cis 5. AMENDMENTS. Any amendment, modification, or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Administrative Officer, or designee. 6. COMPLETE AGREEMENT. This written Agreement, including all«7itines specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding, or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding, or representation be binding upon the parties hereto. 7. NOTICE. All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows: City City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Contractor E Wheelabrator Water Tch Inc. , EBio Gro Division I E19600 Fairchild Suite 110 [ Irvine, CA 92715 S. 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 first above written. ATTEST: CITY OF SAN LUIS OBISPO, A Municipal Corporation B u-- ity Clerk ity Adrninistra ive Officer APPROVED AS TO FORM: CONT TOR ` By: a ' ty me -7gT1//lJ1NMN Mark , Taylor, VP & GM W. Regior 14 C - _�