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HomeMy WebLinkAboutIR 7745 INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 7745 T ?16. To the Mayor and Members of the City Council July 27, 1993 X Subject: PREPARATION OF BID PACKAGE FOR BIOSOLIDS DEWATERING AND LAND APPLICATIONS Background The City's 1989 Final Updated 201 Facilities Plan recommended that the sludge drying bed facility be decommissioned and a sludge-only landfill (SOL)be constructed for the plant's future biosolids disposal. The facility plan called for the drying beds to be phased out and the SOL be in operation by 1993. In 1990, Alan Plummer and Associates, Inc. (APAI) provided the City with a plan for temporarily relieving biosolids inventory, and general guidelines for decommissioning the drying beds. It also provided the City with a plan to extend the 20-year life expectancy of the SOL. In January 1991, APAI completed special contract documents for beneficial biosolids use. The documents were structured to allow the City to extend the contract for a second year. On May 14, 1991, the City Council approved the award of the contract to Oscar Renda Contractors, Inc. (ORC). In June 1992, the City Council approved the extension of the ORC contract for the continued operation of the dewatering facilities and beneficial use of biosolids on agricultural land. On June 29, 1993, the City Council approved a change order extending the ORC contract until October 1993. Proposed Project A consultant team has been working with the Water Department staff since June 1993 to prepare bid documents for dewatering of approximately 100 tons per day at the SOL. An interim project will be bid concurrently which will continue dewatering up to 60-70 tons/day after October 1, 1993, until the new facilities can be constructed at the SOL. Project Goals have been developed and are included as Attachment A. Legal/Regulatory Considerations The City of Fort Worth's Wastewater Treatment Plant is subject to stringent regulations under both Federal and State law. The U.S. Environmental Protection Agency (EPA) and the Texas Water Commission (TWQ each issue the City a discharge permit which requires specific standards for operation of the wastewater treatment facilities and failure to maintain compliance with TWC and EPA permits can result in monetary penalties of up to $25,000 per day and/or mandated administrative compliance orders. OFFICIAL RECORD CITY SECRETARY a. WORTH, TEX. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7745 To the Mayor and Members of the City Council July 27, 1993 Page 2 of 3 Subject: X PREPARATION OF BID PACKAGE FOR BIOSOLIDS DEWATERING AND LAND APPLICATIONS EPA published regulations requiring additional monitoring and solids handling processes on February 19, 1993. TWC revised state regulations for wastewater solids processing and disposal on June 23, 1993. The City's primary facility for processing digested wastewater solids is a 160-acre solids drying facility that was designed and constructed in the 1960's and 70's. The solids drying facilities have been a cost- effective primary solids management procedure for more than 20 years of continuous operation (365 days per year). In additioh to permit considerations, the City can be held responsible for the ultimate disposal of the wastewater solids and should consider the risks of actual or alleged damages for improper disposal including possible remediation costs at some time in the future. These risks are considered "Contingent Liabilities" and vary depending on the disposal option selected. See Attachment B for recommendations. Cost Impacts The transition to a new biosolids management facility which can maintain compliance with new EPA and TWC regulations will result in increased costs. It is anticipated that the competitive bid process will identify the most economical dewatering and disposal alternatives available to the City, consistent with the City's goals. The costs for the privatized dewatering and beneficial use of biosolids is anticipated to be between $5.5 and $9.2 million per year and for a 5-year privatized contract with options to extend for an additional five years at the City's option. DBE A review of the work elements involved in the proposed project was made by the City's DBE Office and Water Department staff. Due to the number of DBE opportunities, the Water Department and the DBE Office recommend that the City's current goal of 15 percent be increased for this project. Prohibition on Contact Staff proposes that during the competitive bid process, prospective bidders, their officers, employees, agents and representatives are prohibited from contacting and lobbying individual City Council members and that all communications if ,�,AL RC,�and made during open City Council meetings. See Attachment C. ;, NICK RECO!'T My SECKURY FT. WORTH, TDL WORTH, ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 7745 &AWRTE FO July 27, 1993 To the Mayor and Members of the City Council Page 3 of 3 * _ 'txp• • Subject: PREPARATION OF BID PACKAGE FOR BIOSOLIDS 187 DEWATERING AND LAND APPLICATIONS Summary We are proposing an environmentally sound and cost-effective plan for processing and disposal of biosolids for the next 5 to 10 year period for the City of Fort Worth's Village Creek Wastewater Treatment Plant. This plan is consistent with state and federal policies and regulations and continues Fort Worth's history of beneficial use. The staff of the Water Department seeks your input and direction. Bob Terrell City Manager CITY SI- RfTARY FT. WORTH, TEX. ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS ATTACHMENT A PROJECT GOAD The Water Department provided the following six goals to the Consultant team for incorporation into the Project to dewater and dispose of the City's wastewater solids. These are as follows: 1. Develop bid documents and specification requirements that provide for a cost- effective processing and disposal project. Provide an opportunity for Innovative proposals from Contractors active in the environmental market place as long as the cost savings features are consistent with other project goals and can be thoroughly evaluated prior to contract award. Consider both short-term and long-term cost factors. 1 2. Produce a solution which is sound environmentally and is consistent with the policies and regulations of the Texas Water Commission (TWC). U.S. Environmental Protection Agency (EPA) and the intent of the Texas Legislature's waste minimization and land disposal requirements. Maintain a policy which is op,", compatible with Clean Texas 2000 and the use of biosolids as a resource. 3. Move forward in a timely way to avoid accumulating excess solids in the drying beds and to permit decommissioning the sludge drying beds as an active solids drying facility as soon as possible. Preserve drying beds as an emergency backup system. 4. Review past DBE participation in the existing dewatering and disposal contract and provide a higher goal (greater than 15 percent) if the City Council so desires. 5. Provide a bidding format that is fair and open which results in intense cost competition between qualified bidders. 6. Obtain maximum public acceptance for the Project. OFFICIAL REC Ong CITY SECRETARY FT. WORTH, Tit. ATTACHMENT B The consultant team and the City staff have made several recommendations to address "contingent liability' concerns. The key points are as follows: 1. The City has a long history of beneficial use of biosolids (sludge) by the Texas Highway Department and the City Park and Recreation Department and is perceived to have a low risk of claims for damages from other parties for past or current disposal practices. 2. The City has not co-mingled biosolids with other Owner's municipal biosolids, industrial or hazardous waste or municipal solid waste. Continuation of this policy will rule out some disposal options which may have a lower initial cost, but have a correspondingly higher risk of, future liability for clean up or remediation of waste disposal sites where City biosolids have been disposed and co-mingled with other wastes. Numerous claims have been made against industries and some municipalities under the 'superfund' clean-up programs for industrial and hazardous wastes, and it is recommended that the City continue its policy of prohibiting co-mingling of wastes. Because of the issue of 'Joint and O., severable liability', an industry or municipality could be held responsible for any or all cleanup cost, regardless of the volume of waste contributed if the other Potentially Responsible Parties (PRP's) can not fund the cleanup. 3. Adequate insurance coverage including comprehensive general liability, and environmental impairment liability is required under the present contract and is recommended to protect the City. Performance, payment and maintenance bonds should be required as well . 4. Beneficial use of biosolids for land application or landfilling in a sludge monofill dedicated to the City are considered to be the lowest risk options available under current regulations. Bidders may propose other options which must be carefully evaluated and analyzed. Firm bid price information will be available for comparison; however, a risk assessment should be made for alternate bids that involve other risk factors. OFFICIAL RECORD CITY SECRETARY ,p- FT. WORTH, TEX. ATTACHMENT C Following issuance of these project documents for preparation of competitive bids, and until contracts are awarded and executed, prospective bidders, their officers, agents, employees and representatives are prohibited from communicating with individual City Council members, unless such communication is made in public session. Written request for information may be addressed to the Director of the City of Fort Worth Water Department. Such request for .information, and responses thereto, shall be provided to all prospective bidders who are entitled to receive such responses. No request for information will be accepted after 0 Improper contact by a prospective bidder or its officers, agents and representatives regarding this project shall be grounds for disqualification. L-ORFIC-IA�LRECORO TARY TEX.