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HomeMy WebLinkAboutStaff Report 4.A 05/15/2017DATE: May 15, 2017 Agenda Item #4.A TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan S ; - CE — Director, Public Works & Utilities Leah er, P.E. — Environmental Services Manager SUBJECT: Resolution Authorizing a Two -Year Extension of the Professional Services Agreement with Total Waste Systems for the Hauling and Disposal or Beneficial Reuse of City Biosolids RECOMMENDATION It is recommended that the City Council adopt the attached Resolution Authorizing a Two -Year Extension of the Professional Services Agreement with Total Waste Systems (TWS) for the Hauling and Disposal or Beneficial Reuse of City Biosolids. BACKGROUND The Ellis Creek Water Recycling Facility treated 1,938 million gallons of municipal wastewater in 2016 and produced 7,940 tons of biosolids. Biosolids is a term used to denote a byproduct of domestic wastewater treatment. It was coined in 1991 by the Water Environment Federation to differentiate raw, untreated sewage sludge from treated and tested sewage sludge that can be beneficially utilized as a soil amendment and alternative daily cover at landfills. During the wastewater treatment process, bacteria and other microorganisms create biomass by breaking down components in wastewater into simpler and more stable forms of organic matter. This biomass and other settable solids are separated from the liquid stream in the clarifiers, and the solids are stabilized and dewatered using an anaerobic digestion process and mechanical dewatering. Hence, the treatment process has two main outputs: biosolids and effluent. The dewatered biosolids are pumped into watertight trailers, and hauled off -site for disposal or reuse at pre- approved sites. The subject contract addresses this critical step. DISCUSSION The City issued a Request for Proposal for the hauling and disposal or beneficial reuse of City biosolids in December 2013, and received two responsive proposals. On April 7, 2014, the City Council approved awarding Total Waste Systems (TWS), a wholly owned subsidiary of The Ratto Group, a Professional Services Agreement for hauling and disposal or reuse of City biosolids for a period of three years through June 30, 2017 for a total of $1,263,000, with an option to renew the agreement for one additional two -year period should TWS perform satisfactorily. The current agreement stipulates that TWS is responsible for furnishing the necessary resources for hauling and disposal or reuse of the City's biosolids, and that the City has limited authority to redirect TWS to alternate disposal or reuse locations. TWS's proposal was based on hauling biosolids to Hay Road Landfill in Vacaville, CA for beneficial reuse. The addendum to extend the agreement for two years includes a provision that will allow the City to direct TWS to haul biosolids to alternate sites, granting the City flexibility in diversifying its biosolids disposal options. The provision would compensate TWS for additional hauling costs and tipping fees should the City elect to participate in alternative disposal or reuse projects such as land application, composting, or enhanced treatment, which would produce biosolids deemed eligible for unrestricted use. These options are important as recent legislation has focused on the need to divert organics from landfills, and, thus, eliminate future diversion credits for some alternate daily cover materials. As a result, these legislative changes have brought into question the long- term viability of landfills accepting biosolids. TWS has provided reliable hauling service, and has met the performance standards defined in the agreement's scope of services. The company has been responsive to the needs of the treatment plant, and their hauling schedule has allowed the plant to maintain efficient dewatering operations. Their drivers communicate daily with operations staff, minimizing potential disruptions and ensuring full trailers are hauled off and empty trailers are available. Based on TWS's performance and pricing structure, it is recommended that the professional services agreement for hauling and disposal or reuse of City biosolids be extended for two years, pursuant to the terms of the agreement and amendment. FINANCIAL IMPACTS The two -year extension adds an additional $970,000 to the original three -year contract including $46,000 for additional hauling and tipping fees, should the City direct TWS to deliver biosolids to alternate reuse sites. The cost shall not exceed $2,233,000 over the five -year period ending June 30, 2019. The proposed contract extension is budgeted and funded through the sewer rates collected within the wastewater enterprise fund. ATTACHMENTS 1. Resolution 2. Amendment No. 1 2 Attachment 1 RESOLUTION AUTHORIZING A TWO -YEAR EXTENSION OF THE PROFESSIONAL SERVICES AGREEMENT WITH TOTAL WASTE SYSTEMS FOR THE HAULING AND DISPOSAL OR BENEFICIAL REUSE OF CITY BIOSOLIDS. WHEREAS, biosolids production is inherent in the process of wastewater treatment; and WHEREAS, the City has incorporated technology and systems for appropriate management of biosolids into the design and operation of the Ellis Creek Water Recycling Facility (ECWRF); and WHEREAS, as part of the implementation of a sound management plan for biosolids produced at the ECWRF, the City intends to continue its existing practice of contracting for hauling and offsite disposal or reuse of biosolids; and WHEREAS, the City issued a Request for Proposals for the Hauling and Beneficial Reuse or Disposal of City Biosolids on December 19, 2013, which was circulated to professionally qualified firms for responses; and WHEREAS, Total Waste Systems, a wholly owned subsidiary of The Ratto Group, was awarded a Professional Services Agreement for Hauling and Disposal or Reuse of City Biosolids for a period of three years through June 30, 2017 with an option to renew the agreement for one additional two -year period up to June 30, 2019 based on satisfactory performance; and WHEREAS, Total Waste Systems has provided reliable service, and met the performance standards described in the scope of services; and WHEREAS, Total Waste Systems has been responsive to the needs of the facility to maintain efficient dewatering operations; and WHEREAS, the extension of the agreement continues an existing City activity, and the contractor's disposal and reuse methods employ existing sites which are permitted, approved and in use, and the extension of the agreement does not constitute a "project" under the California Environmental Quality Act ( "CEQA" ); see Title 14, Chapter 3, California Code of Regulations ( "CEQA Guidelines "), Sections 15060(c) (2) and 15368. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City hereby: 1. Approves the amendment to extend the Professional Services Agreement, included as Attachment 2, for Hauling and Disposal or Beneficial Reuse of City Biosolids for a two - year period up to June 30, 2019, in a not to exceed amount of $2,233,000 for the full five- year term of the agreement. 2. Authorizes the City Manager or his designee to execute said amendment on behalf of the City of Petaluma. Attachment 2 AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT FOR Hauling and Beneficial Reuse or Disposal of City Biosolids THE AGREEMENT entered into and effective as of May 21 , 2014, by and between the City of Petaluma, a municipal corporation and a charter city (hereinafter referred to as "City ") and Total Waste Systems (hereinafter referred to as "Consultant ") is hereby amended as follows: The following sentence is added to the end of Section 1, "Services ": In addition to the services described in.Exhibit A, Consultant shall provide the additional services described in Exhibit A -1 attached hereto. The "Not -to- Exceed Amount" specified in Section 2.A is amended as follows: Original Agreement Amount $ 1,263,000 Amendment No. $ 970,000 Total Not -to- Exceed Amount $ 2,223,000 3. Term. The term of this Agreement commences on the Effective Date, and terminates on June 30, 2019, unless sooner terminated in accordance with Section 4. Upon termination, any and all of the City's documents or materials provided to Consultant and any and all of the documents or materials prepared for City or relating to the performance of the Services, shall be delivered to the City as soon as possible, but not later than fourteen (14) days after termination of the Agreement. IN WITNESS WHEREOF, the parties hereto have executed this document the day of .20 CITY OF PETALUMA City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney CONSULTANT LIZ Signature Name and Title Address City State Zip Taxpayer I.D. Number Petaluma Business Tax Certificate Number Amendment To Professional Services Agreement (Scope- Cost -Term) 4 March 2017 Exhibit A- l Amended Scope of Services The services described in Exhibit A are amended as follows: • Paragraph 2.3.13.1 is added to the List of Services described in Section 23. o The CITY may at its sole discretion instruct the CONSULTANT to haul biosolids to an alternate disposal or reuse site. The CITY shall compensate the CONSULTANT for additional hauling costs and tipping fees.