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HomeMy WebLinkAboutR-2003-082 Natural Selection Farms, Inc. Agreement (re: use of Wastewater’s biosolids )RESOLUTION NO. R-2003- 82 A RESOLUTION authorizing the City Manager to execute, as a sole source purchase without calling for bids, an agreement between the City of Yakima and Natural Selection Farms, Inc. whereby said entity shall accept and utilize biosolids from the Yakima Regional Wastewater Treatment Facility for application to agricultural land in accordance with applicable environmental laws and regulations. WHEREAS, Article VI, section 6 of the City of Yakima Charter and the Yakima Municipal Code Chapter 1.80 generally require that purchases of services in excess of $25,000 be done by competitive bidding, subject to certain exceptions; and WHEREAS, the law recognizes a "sole source" exception from these competitive bid requirements when, due to unique service requirements, it would be futile to utilize competitive bidding; and WHEREAS, in December 2002 the Wastewater Division was informed that, due to the declining market for hops, Charron Farms would no longer be available for application of the City's biosolids; and WHEREAS, for the following operational reasons, the Wastewater Division requires hauling of biosolids to be performed by its own staff and with Wastewater Division equipment: • Increased flexibility and efficiency of biosolids de -watering schedules. • Wastewater Division drivers and equipment are immediately available to pickup and haul biosolids to the utilization site (no downtime waiting for contract hauler). • Wastewater Division has sufficient equipment to permit immediate switching of trailers when full without having to wait for a driver or another trailer. • Wastewater Division drivers are trained and familiar with state rules and regulations regarding the handling and transportation of biosolids. • Wastewater Division has greater ability to properly control and maintain its facilities and equipment to meet NPDES permit requirements. • Greater flexibility in scheduling maintenance and cleaning of equipment. WHEREAS, due to inclement weather road conditions, geographic features, safety considerations, equipment use/maintenance, need to minimize vehicle fuel consumption, communication concerns, operational efficiency, and familiarity of drivers with local roads, the biosolids utilization site must located in the Yakima Valley within Yakima County; and WHEREAS, the Wastewater Division has conducted extensive research regarding available service providers and concluded that Natural Selection Farms, Inc. has the only permitted biosolids utilization site in Yakima Valley within Yakima County; and • WHEREAS, Natural Selection Farms, Inc. is willing to offer such services for a service fee of $15.00 per wet ton of biosolids in accordance with the attached "Agreement Between the City of Yakima, Washington, and Natural Selection Farms, Inc., for the Beneficial Use of Biosolids"; and WHEREAS, the City Council finds it would be futile to call for bids regarding the described services because Natural Selection Farms, Inc. is the only source available for said services; and WHEREAS, the City Council finds that it is in the best interest of the City to authorize purchase of services from Natural Selection Farms, Inc. as a sole source purchase without calling for bids, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized to execute, as a sole source purchase without calling for bids, the attached and incorporated "Agreement Between the City of Yakima, Washington, and Natural Selection Farms, Inc., for the Beneficial Use of Biosolids" whereby NSF shall accept and utilize biosolids from the Yakima Regional Wastewater Treatment Facility for application to agricultural land in accordance with applicable environmental laws and regulations. ADOPTED BY THE CITY COUNCIL this 20th day of May, 2003 ATTEST: City Clerk AN AGREEMENT BETWEEN CITY OF YAKIMA, WASHINGTON, AND NATURAL SELECTION FARMS, INC., FOR THE BENEFICIAL USE OF BIOSOLIDS This Contract is made and entered into as of the_ day of May, 2003, (the "Effective Date') by and between the City of Yakima, Washington (the "Generator") and Natural Selection Farms, Inc., ("NSF'), a Washington corporation. Whereas, the Generator produces significant amounts of sewage sludge (hereinafter referred to as "biosolids") as a by-product of its sanitary sewage treatment process; and Whereas, NSF has expertise in the storage and application of biosolids to agricultural lands in Eastern Washington; and Whereas, it is in the best interests of the environment, the Generator, the agricultural community and the public health, safety and welfare of Generator's citizens that this Contract be entered into; Now, therefore, in consideration of the mutual promises and covenants herein contained and for other good and valuable consideration, it is hereby agreed as follows: 1. Purpose. Generator and NSF enter into this Contract to establish terms and conditions for NSF to beneficiallyuse or otherwise manage biosolidsproduced by Generator. 2. Generator's Obligations. Generator shall be obligated to perform the following with respect to a minimum of ninety percent (90%) of the biosolids generated at Generator's wastewatertreatment facilities,or 1,200 dry tons of biosolids, per calendar year, whichever amount is less: a deliver biosolids to such Yakima County site or sites as may be directed by NSF, using trucks and other necessary and sufficient equipment of Generator, at Generator's sole cost and expense, and at a time mutually agreeable to Generator and NSF; b. ensure that the tendered biosolids meet applicable federal, state and local standardsgoverning land applicationof biosolids to agriculturallands as the same currently exist and as they may be modified or altered from time to time, and as set forth herein at Section 3; o test the tendered biosolids in accordance with appropriate testing procedures and applicable federal, state, and local law and regulations and provide NSF all information required by law or that otherwise is necessary for NSF to use and manage application of the biosolids to agricultural lands in a safe, consistent, and reliable manner, including providing to NSF test results confirming acceptable compliance with all applicable trace metal standards as well as confirming percent solids by 1 weight and nitrogen content as expressed by total Kjeldahl nitrogen (TKN); d. provide certificationto NSF that biosolidsare qualified as such as the term "biosolids" is defined in applicable law and regulations, including Ch. 70.95J RCW and Ch. 351 Title 173 WAC, or as the same may be hereafter amended, and as further evidenced by Generator's provision to NSF of certification in a form substantially similar to the document attached hereto as Exhibit "A" and incorporated herein by this reference; and, e. pay NSF service fees as provided in Section 6 below and all Health District oversight fees as the same currently exist or may be modified from time to time during the term of this Contract. 3. Generator's Covenants and Warranties. Generator hereby expressly warrants that allbiosolids tendered to NSF shall comply with all standards and requirements under federal, state and local laws and regulations applicable to NSF's intended use of the biosolids for land application as described herein, as the same currently exist and as they may be modified or altered from time to time. 4. NSF's Obligations. NSF shall: a receive biosolids at such site or sites as may be directed pursuant to Section 2(a), above, and use the same for application agriculturallands in Eastem Washingtonas a soil amendment,compost ingredient or other permitted beneficial use as may be determined by NSF, in NSF's sole discretion; and, b. provide all of the facilities, equipment, and personnel necessary for such work, and perform the application of biosolids in compliance with all applicable local, state, and federal regulations. 5. NSF's Covenants and Warranties. NSF warrants and represents that it has the business, professional, and technical expertise to use and manage the application of biosolids and shall at all times do so in a prudent and workmanlike manner. Furthermore, .NSF warrants and represents that it has the equipment, plant and employee resources required to perform this Contract. 6. Billing and Payment. a Billing. NSF shall provide to the Generator, by the fifteenth (15th) day of the month following acceptance of the Generator's biosolids, a statement in a format that is mutually agreeable to NSF and the Generatotietailing they number of wet tons of biosolids accepted by NSF in the preceding month. The method of determining tonnage shipped shall be by public or private 2 number of wet tons of biosolids accepted by NSF in the preceding month. truck scales as may be mutually selected by the Generator and NSF. The scale charge for weighing on the truck scales shall be paid by the Generator. b. Service Fees. NSF's service fee for receiving, transporting and land applying Generator's biosolids will. be fifteen dollars ($15.00) per wet ton; provided that this service fee will be adjusted from time to time as set forth herein. c. Price Adjustment for Inflation: The service fee shall be adjusted annually on February 1st of each year commencing February 1, 2004. Said adjustment shall be dictated by, and directly proportional to, the percentage change in the Consumer Price Index for AH Urban Consumers (CPI -U) for all U.S. cities over the preceding twelve (12) months for which applicable data is available. d. Price Adjustmentfor Change in Law. NSF may, after notices Generator, increase the servicefee by up to one hundred percent (100%) of NSF's reasonable actual increased costs of performing its obligationainder this Contract due to a change in law. For purposes of this section, a "change in law" includes new laws, regulations, ordinances of general application and modifications of them; new decisions. of tribunals, either judicial or administrative, and any modifications of them; or the imposition of any material conditions on the renewal of any permit, license or approval which makes the transportation, storage, land application or other management of biosolids more burdensome financially than under the requirements in effect at the Effective Date. Whether or not a change in law materialto this Contract has occurred shall be determinednutually by NSF and the Generator. In the event that a mutual agreement cannot be reached, either party may, at their option, terminate this Contract upon written notice and with no further obligation to the other. e. Payment in the Event of Termination. In the event that either party terminates this Contract under Section 15, NSF shall be compensated in accordance with the above terms for all satisfactory services provided to the Generator under this Contract up to the effective termination date. 7. Employment -Related Taxes and Assessments. NSF shall be solely responsible for compensating its employees and for paying all related taxes, deductions, and assessments, including but not limited to, federal income tax, FICA, social security' tax, assessmentsfor unemploymentand industrial injury, and other deductions frorn income which may be required by law or assessed against either party as a result of this Contract. 8.. Sales Tax. The application of biosolids is not subject to state sales or use tax, however, if for any reason the state requires sales or use tax for this service, Generator will make payments directly to the state for all applicable state sales or use taxes. If NSF is so registered, it shall add the sales or use tax to each invoice and upon receipt of payment from Generatorpromptly remit appropriateamounts to the State of Washington. 3 9. Nondiscrimination Provision. During the performance of this Contract, NSF shall not discriminate on the basis of race, age, color, sex, religion, national origin, creed, marital status, political affiliation, or the presence of any sensory, mental or physical handicap. This provision shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, selection for training, and the provision of services under this Contract. 10. No Conflict of Interest. NSF represents that it and its employees do not have any interest and shall not hereafter acquire any interest, direct or indirect, which would conflict in any manner or degree with the performance under this Contract. NSF further covenants that it will not hire anyone or any entity having such a conflict of interest during the performance of this Contract. 11. Conditions Precedent. It shall be a condition precedent to the obligations of either party hereunder that that party shall have obtained all applicable and necessary permits, licenses and approvals of any federal, state, and local government or other governmental authority; provided, however, and except as provided herein to the contrary, the failure of either party to obtain any necessary permits, licenses, or approvals shall not constitute a defense to any liability to the other party for any breach of this Contract. 12. Term and Extension. The term of this Contract shall be for five (5) years, commencing as of .the Effective Date herein. This Contract shall b e automatically renewable for additional one year terms as provided for herein; provided, however, that each such renewal shall be subject to the re -negotiation of the succeeding year's minimum service fees to be paid to NSF. Either party may prevent said automatic renewal without cause by giving the other party written notice of intention not to renew at least sixty (60) days prior to the Contract termination date. In the event of a re-negotiationof the service fee to be paid to NSF, the parties shall execute a written agreementreflecting the Contract's continuance under saic re -negotiated fees. A meeting of the parties for the re -negotiation of service fees shall occur not less than sixty (60) days prior to the Contract termination date and may be called for by either party. Failure to agree on a new service fee shall permit either party to terminate the Contract by written notice delivered prior to the termination date then approaching. 13. Insurance. a No Insurance. It is understood that the Generator does not maintain liability insurance for NSF and/or its employees, agents, officers, and subcontractors. b. Commercial Liability Insurance. Before this Contract is fully executed by the parties, NSF shall provide the Generator with a 4 certificate of insurance as proof of commercial liability insurance with a minimum liability limit of Two Million Dollars ($2,000,000.00) combined with single limit bodily injury and property damage. The certificate shall clearly state who the provider is, the coverage amount, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificates issued as a matter of information only and confers no right upon the certificate holder" shall be deleted.) Said policy shall be in effect for the duration of this Contract. The policy shall name the Generator, its elected officials, officers, agents, and employees as additional insureds, and shall contain a dause that the insurer will not cancel or change the insurance without first giving the Generator thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such, notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initialed by the insurance agent.) The insurance shall be with an insurance company or companies rated A-VII or higher in Best's Guide and admitted in the State of Washington. a Commercial Automobile Liability Insurance. Before this Contract is fully executed by the parties, NSF shall provide the Generator with a certificate of insurance as proof of commercial automobile liability insurancewith a minimum liability limit of Two Million Dollars ($2,000,000.00) combinedsingle limit bodily injury and property damage. Automobile liability will apply to "Any Auto" and be shown on the certificate. The certificate shall clearly state who the provider is, the coverage amount, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificates issued as a matter of information only and confers no right upon the certificate holder" shall be deleted.) Said policy shall be in effect for the duration of this Contract. The policy shall name the Generator, its elected officials, officers, agents, and employees as additional insureds, and shall contain a dause that the insurer will not cancel or change the insurance without first giving the Generator thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initialed by the insurance agent.) The insurance shall be with an insurance company or companies rated A-VII or higher in Best's Guide and admitted in the State of Washington. d. Insurance Provided by Subcontractors. NSF shall ensure that all subcontractors it utilizes for work/services required under this Contract shall comply with all of the above insurance requirements. 14. Permits. NSF shall maintain all necessary permits and approvals in accordance with law. 15. Records and Meetings. The following provisions in this paragraph 15 governing the obligation of NSF to maintain records, provide status reports, attend meetings, and report spills or other similar serious occurrences, shall apply only with respect to the subject matter of this Contract (i.e., biosolids tendered by Generator and NSF's performance of its duties with respect thereto): a NSF shall maintain records showing the design and location of biosolids storage or composting facilities, amounts and duration in storage, areas and rates of application, calculations for determining application rates, and any known instances of migration of biosolids from the area intended for their storage or application. NSF shall also maintain copies of all reports to and correspondence with regulatory agencies. Copies of all records required to be maintained shall be provided to the Generatoas they are createdand/or received. These records shall also be availableor Generator'scopying and review upon seven (7) written days notice provided to NSF. All records required to be maintained by NSF shall be preserved for at least three (3) years following termination of this Contract. b. When requested to do so by Generator representatives, NSF shall make the cost records, accounts and related financial documents pertaining to this Contract available for inspection by Generator representatives during the term of this Contract and for a period of three (3) years following the final payment to NSF by Generator. Subject to said duty to preserve records, in the event that any audit or inspection identifies any discrepancy in such financial records, NSF and/or Generator, as the case may be, shall provide each other with appropriate clarification and/or financial adjustments within thirty (30) calendar days of notification of the discrepancy. c. NSF shall provide weekly status reports to Generator in a format substantially similar to the report set forth as Exhibit B, and incorporated herein by this reference. d. NSF shall collect and document all data required by appropriate regulatory or permitting agencies and shall assist Generator in producing an annual report. The annual report shall include at a minimum the following: i. Total deliveries and locations; ii. Actual application rates versus prescribed application rates; iii. Total applications and location; iv. Environmental data; and v. Crop information. e. Generator representativeswill meet with NSF on a monthly basis or as may be required to discuss the service provided under this Contract. The purpose of these monthly meetings shall be to inform Generator and NSF 6 of the status of operations conducted under this Contract. f. In the event of a spill or other seriousimilar occurrence,NSF shall immediately contact Generator's biosolids contact and shall submit a report summarizing the incident within 24 hours. 16. Termination; Default. NSF may terminate this Contract if:' i. the Generator fails to make any payment required hereunder within fifteen (15) days after receiving notice of nonpayment from NSF; ii the Generator breaches any material representation or warranty set forth herein; iii. the Generator defaults in the performance of any other obligation of the Generator under this Contract and fails to cure such default within thirty (30) days after receiving written notice thereof from NSF; iv. any applicable law or governmental regulations or other circumstances outside NSF's control cause the services required of NSF to be economically unfeasible for NSF, or NSF is otherwise prohibited from providing the services required of it by the Contract; or v. as provided in section 6(d) above. b. Generator may terminate this'Contract if: i. NSF breaches any material representationor warranty set: forth herein; ii. NSF defaults in the performance of any other material obligation of the Generator under this Contract and fails to cure such default within thirty (30) days after receiving written notice thereof from the Generator; iii. NSF fails to comply with any federal, state or local laws, rules, orders or ordinances,or regulations that pertairto the transportation of use of biosolids and fails to cure such non-compliance within thirty (30) days after receiving written notice from the appropriate agency or court; or iv. as provided in section 6(d) above. 7 17. Non -conforming Biosolids. NSF shall be entitled to inspect and analyze each load of biosolids tendered by the Generator. NSF's right to verify Generator's biosolids testing under this section is entirely discretionary and imposes no duty on NSF. Generator bears sole responsibility under this Contract for tendering only biosolids that conform to the warranty standards set forth herein. If NSF tests Generator's biosolids and the biosolids are found to be non -conforming, Generator shall pay NSF's commerciallyreasonable costs incurred in the testing. If NSF determines that the biosolids do not conform to the warranty standards set forth herein, it may reject the biosolids by notifying the Generator in writing. Timely removal (if necessary) and disposal of rejected biosolids shall be at the Generator's sole cost and responsibility; provided that if NSF rejects biosolids as non -conforming, NSF reserves the right, notwithstanding any other remedy available at law or otherwise, to transport the biosolids to a disposal site or to return the biosolids to Generator's site, and to collect from Generator any commercially reasonable expenses or damages incurred thereby, including but not limited to transport, storage or disposal costs. Before biosolids may be rejected, transported and/or disposed of as non -conforming under this section, an independent third party selected by both NSF and Generator must confirrri non -conformity through verification sampling and testing. 18. Indemnification. a NSF agrees to protect,defend, indemnify,exonerate, and hold harmless Generator, its agents, elected officials, officers, and employees from and against any and all daims, demands, causes of action, damages, liabilities, losses, expenses, liens, fines, lawsuits and other proceedings and all judgments, awards, costs and expenses, ("Losses") as well as attorneys' fees and disbursements resulting from NSF's performance and/or nonperformance of this Contract. b. Generator agrees to protect, defend, indemnify, exonerate and hold NSF, its agents, officers,and employees, harmless from and against any and allclaims, demands, causes of action, damages, liabilities, losses, expenses, liens, fines, lawsuitsand other proceedingsand all judgments, awards, costs and expenses caused by or resulting from (I) Generator's obligation to tender only biosolids that conform to the warranty standards set forth above or other breach of this Contract and (II) Generator's negligent acts or omissions in the performance of its duties as described in this Contract. Notwithstanding any other provision herein, the obligationareated by this section shall survive any termination of this Contract. 19. Safety Standards and Instruction. NSF shall provide adequate training of its personnel involved in management of biosolids. NSF shall inform its personnel that sewage treatment plants process sanitary and industrial waste, that any workers involved in biosolids management may be exposed to pathogens, and that such workers should follow proper hygiene and workplace safety practices. 8 20. Landowners/Lessees of Land Application Sites. NSF shall have a separate agreement with each landowner/lessee of land application site that provides NSF the authorization to use the land for biosolid application. NSF shall inform the landowner of any sites where NSF will apply Generator's biosolids about the general benefits and risks of the use of municipal biosolids as a soil amendment. NSF shall encourage landowners/lesseespf land application sites to maintain application sites in a clean and orderly fashion and NSF shall cooperate fully with Generator to maintain the highest reasonable public image. 21. Compliance with Laws. The Generator and NSF shall each fully comply with edl applicable laws, ordinances, decisions, orders, rules or regulations of any government or governmental agency pertaining to its handling, storage, transportation, treatment, use or management of the biosolids. 22. Disputes, Governing Law, Venue. This Contract shall be governed by and construed in accordance with the laws of the State of Washington. If litigation arises concemingthe interpretation of any of the terms of this Contract, venue for such litigation shall be in the Superior Court of the State of Washington in Yakima County. 23. Savings. If any part of this Contract is declared to be invalid or, unenforceable, the rest of the Contract shall remain binding, unless such invalidity or unenforceability destroys the purpose and intent of this Contract. 24. Independent Contractor, No Third Party Beneficiaries. Each party hereto is and shall perform this Contract as an independent contractor, and as such, shall have and maintain completecontrol over all of its employes, agents, and operations. Neither party nor anyone employed by it shall be, representact, purport to act or be deemed to be the agent, representative,employee partner or servant of the other party. No term or provision of this Contract is intended to be, or shall be, for the benefit of any person, firm, organization or corporation not a party hereto, and no such other person, firm, organizatiorwr corporation shall have any right or cause of action hereunder, whether as a third party beneficiary or otherwise. 25. Force Majeure. Should either party be prevented wholly, or in part, from performing its respective obligationsunder this Contract by a cause reasonably outside of and beyond the control of the partylffected thereby, including but not limited to war, government regulation, strike, lockout, accidents, storms, earthquake, fire, acts of God or public enemy or any similar cause beyond the control of the parties,then such party shall be excused hereundeduring the time and to the extentthat the perfomianceof such obligationsare so prevented,and such party shall have no liability whatsoever for any damages, consequential or otherwise, resulting therefrom. 9 26. Non -Waiver. Either party's failureto strictly enforce its rights under any provision of this Contract shall not be construed to be a waiver of that provision. No waiver of any breach of this Contract shall be held to be a waiver of any other breach. 27. Assignment. This Contract shall not be assignable by either. party without the prior written consent of the other; which shall not be unreasonably withheld. In the event that such prior written consent to an assignment is granted, the assignee shall assume all duties, obligationsand liabilities of NSF stated herein. 28. Notices. All notices required under this Contract shall be personally delivered or mailed by certified or registered mail, postage prepaid as follows: If to the Generator, addressed to: Mr. Doug Mayo Yakima Regional Wastewater Treatment Facility 2220 East Viola Street Yakima, WA 98901 If to NSF, addressed to: John A. Huffman Natural Selection Farms PO Box 893 Sunnyside, WA 98944 or to such other address as any party shall specify by written notice so given. Notices shall be deemed to have been given and received as of the date so delivered or three (3) business days after being deposited in the U.S. Mail. 10 29. Entire Contract, Amendment. This Contract constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes any and all other communications, representations, proposals, understandings or agreements, either written or oral, between the parties with respect to such subject matter. This Contract may not be modified or amended, in whole or in part, except by a writing signed by both parties. IN WITNESS WHEREOF, the parties have executed this Contract as of the date first above written. NATURAL SELECTION FARMS, INC.,THE CITY OF YAKIMA By: Ted Durfey, President Date: Date: R.A. Zais, Jr. Its: City Manager s, City Clerk .Lii�ala G(Ja kits *TI.oj 11 CITY ccgrucT NO' �„ ✓ RESOLUTION NO: in Exhibit A, A. Please pro. ide pollutant concentrations Polluter t Arsenic Concentration (mg/kg) . Measured Dry Weight Instantaneous value Pollutant Concentrations (mg/kg) (Table 3 40 CFR 503.13)Lmonthly average) Ceiling Concentrations* (Table 1 In 40 CPR 503.13) (Instantaneous maximum) 75 W 41 . Cadmium _ 39 gg Chromium 1,200 3,000 Co• •er 1,500 4,300 Lead 300 840 Mercu 17 57 Mol bdenum N/A 75 Nickel 420 420 Selenium 36 100 Zinc 2,800 7,500 TKN N/A N/A... NH4-N N/A N/A NO3-N •&awe N/A N/A aA_I Q 91Udde rr iv net ha I nd annl e V F a ., u. if...b. pie exceed these values B. Pathogen F }duction (40 CFR 503.32) -Please Indicate the level achieved E ]Class A Class B C. Vector Attrt otion Reduction (40 CFR 503.33) - Please indicate the option performed E Option 1 E:Option 5 Option 2 Option 3 [ Option 4 Option 6 1Option 7 E ] No vector attraction reduction options were performed D, CERTIPICA rioN 1 cer fy, under penalty of law, that this document and all attachments were prepared under my direction or supe vision In aocordance with aiystem designed to assure that qudlitied.personnel properly gather and evali ate the information submitted. Based on my inquiry of the person or persons who manage the system or th • persons direotly responslble for gathering the information, the information submitted is, to the best of my I rowledge and belief, true; accUrste, and Complete. I am aware that there are Significant penalties for suhn Itting false information, Including the possibility of fine and Imprisonment for knowing vioations, Yakima, Washii gton A, Name and C fficial Title (type or print) C. Signature Option 8 B. Area Code and Telephone Number D. Date Signed OUR SOIL OUR STRENGTH 1 1T B BiOSOlids Weekly Summary Contractor: Natural Selection Farms Project:. Green Valley Project Manager: Ted Durfey Site/Operations Supervisor: Arlie Huffman Deliveries see haul tickets for actual : Ellensbu.r4 Grandview Harrah :KC -WP KC -Rn Kitsap Mabtort Midway Raches Prosser Puyallup Sunnyside: ,Current Site Information (field and storage status): Future Site Schedule (anticipated applications for following week): COmmo11tS (milestones, meetings, site tours, interactions with public/media, operational variations, etc): NSF Biosolids Application Contract ITEM TITLE BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. *aVO For Meeting Of May 20, 2003 Resolution authorizing execution of sole source agreement with Natural Selection Farms, Inc., for the receipt and beneficial use of biosolids SUBMI ITED BY: Douglas Mayo/ Wastewater Manager Daryl Bullard/ Wastewater Biosolids Chief Operator CONTACT PERSON/TELEPHONE: Douglas Mayo/ 575-6077 SUMMARY EXPLANATION: The Yakima Regional Wastewater Treatment Facility ("YRWwTF") generates approximately 1,600 dry tons (approximately 8,000 wet tons) of biosolids annually. For a number of years these biosolids were taken to a site owned by Charron Company, Inc. In December 2002, the Charron Company informed Wastewater Division representatives that due to changes in its farming practices, it could no longer utili7e these biosolids. A search was conducted for an alternative site within the Yakima Valley that could receive and use the biosolids in accordance with environmental law and regulations. The only available permitted facility within that geographic scope is that of Natural Selection Farms, Inc. ("NSF"). NSF has offered to provide this service at a rate of $15 per wet ton received and in accordance with the other terms and conditions of the attached agreement. To ensure a stable biosolids utilization program, the agreement has a 5 year term. (Continued) Resolution X Ordinance _ Other (Specify) Contract X Mail to (name and address): Natural Selection Farms, Inc. Phone (509) 837-3501 P.O. Box 893 Sunnyside, WA 98944 Cost $120,000 per year Funding Source Fund 473 Wastewater operating Fund (unbudgeted) appropriation ordinance) APPROVED FOR SUBMITTAL: (see accompanying STAFF RECOMMENDATION: Approve resolution authorizing execution of sole source agreement with Natural Selection Farms, Inc. for the receipt and beneficial use of biosolids. • COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2003-82 (Continued from front page) NSF will be responsible for receiving and applying biosolids on agricultural land under the environmental regulations and guidance of the Washington State Department of Ecology. NSF work in partnership with City of Yakima personnel to manage this project, which includes hundreds of neighboring farmers and landowners using biosolids on thousands of acres of farmland for its soil conditioning. Based upon the production figure of 8,000 tons, the annual estimated cost is $120,000, or approximately $600,000 over five years; the estimated cost for the remainder of 2003 is $90,000. There is a provision in the agreement for annual adjustment of the rate based upon the consumer price index that may increase the annual costs during the term of the agreement. The Wastewater Treatment Division is seeking authorization of a sole source exception to standard procurement procedures to award a special market condition contract for the receipt and application of YRWwTF's biosolids. The contract, if approved, would be with Natural Selection Farms, Inc. ("NSF"), located in Yakima County. A sole source contract appears justified by the unique circumstance of this issue. History - The YRWwTF has been working with Charron Company, Inc., located approximately 7 miles east of Moxee since 1988. This site utilized most of the biosolids produced at YRWwTF. Staff has been responsible for the biosolids site permitting processes, the required soil and water monitoring, biosolids hauling and has assisted with the biosolids application. Since October 1998, dewatered biosolids hauled directly from the plant's centrifuge facility have been stockpiled at the utilization site for subsequent application. The City was informed in late December of 2002, that due to a change in Laming practices, Charron would no longer be utilizing biosolids. When the Charron site was no longer available for biosolids utilization, the City began hauling biosolids to the only two permitted sites within a reasonable distance, Cheyne Landfill (Yakima County) and NSF. However, Cheyne Landfill does not have sufficient acreage to utilize the biosolids quantity produced at the City's wastewater treatment facility. Long-term usage of the landfill for biosolids is also not allowed under the state permit. Finally, of the two facilities, only NSF is considered a beneficial use facility for utilizing biosolids by the regulatory agencies. Consequently, since the beginning of 2003, nearly all dewatered biosolids have been hauled to one of NSF's storage sites, near Sunnyside. NSF is a permitted biosolids utilization facility with thousands of acres under permit. NSF charges a fee for use of its sites. These charges cover the costs of testing, applying, and monitoring the areas where biosolids are applied. Ownership and ultimate responsibility of the biosolids still remain with the City. Sole Source Tustification - Justification of the agreement with NSF as a sole source purchase without calling for bids largely rests upon two operational and safety criteria: (1) that YRWwTF employees and equipment are utilized to transport the biosolids to the chosen site; and (2) that the site be located within the Yakima Valley within Yakima County. Use of YRWwTF employees and equipment to transport the biosolids from the treatment facility to the storage/utilization site is critical for several reasons. The City's new NPDES permit requires that the City shall at all times properly operate and maintain all facilities and systems of treatment and control. Treatment facility drivers are already knowledgeable of state rules and regulations regarding handling and transportation of biosolids. Use of these trained drivers assists the City in meeting said NPDES permit requirements and avoids the issue of constantly training contract drivers regarding travel routes, policy, safe handling standards and actions to take in the event of a spill. It is also easier to ensure that City -owned trucks and trailers are properly maintained and operated. Using treatment .facility drivers and equipment is more efficient in other ways. Using treatment plant drivers, trucks and trailers increases flexibility for dewatering schedules, which makes dewatering planning easier. The drivers are immediately available when needed and are able perform other operational duties at the treatment facility when not engaged in the process of transporting biosolids. There is no downtime waiting for a private hauling contractor to show up. The facility also has a sufficient number of trucks and trailers available to avoid the problem of interrupting the dewatering process because no trucks/trailers are available. A trailer can always be switched out when full without having to overload the trailers or interrupt, dewatering process. Location of the site within the Yakima Valley within Yakima County is crucial for both safety and operational reasons. It provides that there are no significant hilts, passes and/or grades on the travel route to the biosolids delivery site. This produces less wear and tear on the vehicles and reduces fuel consumption. The relatively short travel distance of this requirement has a similar effect. The lack of geographic features and abbreviated transportation route is also safer for vehicle operators, especially during periods of inclement weather. Operationally, a site within the Yakima Valley means that drivers spend less time away from their other operational duties at the wastewater facility. Finally, a travel route within the Yakima Valley largely avoids "dead" communication areas. Extensive search efforts by YRWwTF representatives revealed that only the site owned and operated by Natural Selection Farms, Inc. meets the aforesaid criteria. Thus, it appears that it would be futile to call for bids, as it would only produce one responsive bid. Accordingly, authorization is requested to enter into a biosolids utilisation agreement with NSF as a sole source contract without calling for bids.