HomeMy WebLinkAboutContract 20283-R3 .j
FORT WORT H
June 1, 2010
Raquel Renda, Vice President
Renda Environmental, Inc.
2501 Greenbelt Road
Fort Worth, Texas 76118
RE: Third and Final Five Year Renewal Option to the Long-Term Solids Dewatering,
Processing and Disposal Contract with Renda Environmental, Inc.
Project#PS46-070460300020
Original Contract City Sec. Contract#20283 M&C C-14255 R Dated: Apr 05, 1994
Amendment No.I City Sec. Contract#22657 M&C C-15980 Dated.: Apr 08, 1997
I"Contract Renewal City Sec. Contract#25763 M&C C-17834 Dated: Jan 25, 2000
2nd Contract Renewal City Sec. Contract#30908 M&C C-20131 Dated, Jun 29, 2004
Amendment No. 4 City Sec. Contract#36404 'M&C C-22509 Dated: Nov 06, 2007
3rd Contract Renewal City Sec. Contract#20283-R3 M&C C-24163 Dated: Apr 06, 2010
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Dear Ms Renda:
Attached is one (1) executed copy of the third and final five year renewal option to the
Long-Term Solids Dewatering, Processing and Disposal contract. This letter is your
authority to continue work on the current biosolids processing and land application
program as well as the professional services required to operate and maintain the gas
turbine generation plant located at the Village Creek Wastewater Treatment Plant,
according to the revised contract documents.
Please note that biosolids processing and land application work must be coordinated
through Steven L. Nutter, Environmental Program. Manager; phone (817) 392-4965 and
cell (5217) 925-2271. Operation and maintenance of the gas turbines must be coordinated
through Ronald Carlson, Plant Engineer; phone(817) 392-4979 and cell (817) 980-3651.
All pay estimates (Partial and Final) for the work shall be added to the existing pay
estimate form and the existing pay estimate form shall be modified in such a fashion to
show contract renewal changes_ All pay estimates shall be routed through the
Environmental Program Manager's office located at the Village Creek Wastewater
Treatment Plant.
WATER DEPARTMENT
J POLLUTION CONTROL DIVISION
THE CITY OF.FORT WORTH*4500 WILMA LANE*ARLINGTON,TEXAS 76006
(817)392-4960*ADMINISTRATION FAX(817)392-4957
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Page No. 2
Third and Final Five Year Renewal Option to the Solids Dewatering, Processing and Disposal
and the Turbine Operations and Maintenance Contract with Renda Environmental, Inc.
Project 9 PS46-070460300020
PROJECT/ACCOUNT NUMBERS REFERENCE
A. Project Numbers for Payment PE45 - 539120 - 0705008
PE45 - 539120 - 0705007
Sincerely,
ts—
Steven L. Nutter, REM, CEA
Environmental Program Manager
Pollution Control Division
Fort Worth Water Department
_..� cc; Sebastian (Buster) Fichera, Assistant Director
Frank Crumb, P.E., Water Director
David Townsend, P.E., Facilities Engineer
Jerry Roberts, P.E., Halff and Associates
M&C Review Page I of 3
Official site of the City of Fort Worth,Texas
WoRm
CITY COUNCIL AGENDA FoRT.
COUNCIL ACTION: Approved on 4!612010
DATE: 4/6/2010 REFERENCE NO.: C-24163 LOG NAME: 60BIO RENEW/
CODE: C TYPE: NON-CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize the Third and Final Five Year Renewal Option to the Solids Dewatering,
Processing and Disposal and the Turbine Operations and Maintenance Contract with
Renda Environmental, Inc., for the Village Creek Wastewater Treatment Plant Estimated
the Amount of$44,839,276.00 Payable at a Projected Annual Cost of$8,967,855.00
(COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute the third and final five
renewal to the Solids Dewatering, Processing and Disposal and the Turbine Operations and Maintena
Contract with Renda Environmental, Inc., City Secretary Contract No. 20283, with adjusted quantities
amended terms and conditions to reflect actual daily solids production and an annual CPI calculation.
DISCUSSION:
On April 5, 1994, (M&C C-14255R) the City Council authorized execution of a Solids Dewatering
Processing and Disposal contract with Oscar Renda Contracting, Inc.lAgronomic Management Group
now known as Renda Environmental, Inc., at the Village Creek Wastewater Treatment Plant (VCWW1
On January 25, 2000, (M&C C-17834) the City Council authorized the first five year renewal and two
additional five year renewal options. Throughout the duration of the contract, the contractor operated
without interruption and in full regulatory compliance.
On December 12, 2000, (M&C C-18397) the City Council authorized the execution of a long term cont
with Lone Star Gas Energy Services, Inc., for the operations and maintenance of the two five Megawa
(MW) turbine generators at the VCWWTP. This Contract was terminated effective December 31, 2003
temporary letter agreements allowed continued operation until June 30, 2004. Renda Environmental, I
formerly known as Oscar Renda Contracting, Inc., proposed to operate these turbine generators as p�
its contract. The contract amendment reduced turbine generator operating costs from $77,000 to $60,1
per month.
On January 11, 2001, (M&C C-18877) the City Council authorized the execution of a long term contra+
Lone Star Energy Services, Inc., a subsidiary of TXU, for the purchase of landfill gas produced at the
Arlington Landfill as an additional fuel source for the VCWWTP Turbine Generators. As part of a media
settlement with TXU, this contract was terminated effective June 30, 2004. Renda Environmental, Inc.
contracted with Renovar (Landfill Gas Owner) to supply landfill gas to the City as an additional fuel for
VCWWTP turbine generators. The contract amendment with Renda Environmental, Inc., reduced fuel
from an average of$163,000 per month to a not to exceed cost of$132,500.
Staff recommends exercising the third option to renew the Long Term Solids Dewatering, Processing
Disposal Contract with Renda Environmental, Inc. for a five year agreement at the proposed cost of
$151.73/Dry Ton, with an annual CPI adjustment, not to exceed the current yearly and total contract c,
on price increases (3.5 percent and 15 percent, respectively). This third option includes other amendE
terms and conditions which shall become effective April 1, 2010, such as:
http:l/apps.cfwnet.org/council_packet/me_review.asp?ID=13217&councildate=41612010 4/12/2011
M&C Review Page 2 of 3
1. The operation and maintenance of the two five MW turbine generators and heat recovery system at
y VCWVV7P for a cost of$45,200 per month with an annual CPI adjustment not to exceed the current yE
and total contract caps on price increases (3.5 percent and 15 percent, respectively). The contract
amendment will reduce the current turbine generator operating costs from $61,921 to $45,200 per moi
This modification to the contract will reduce turbine operating and maintenance cost by $16,721 per m
($1,003,257 over five years);
2. The City funded allowance for the replacement of equipment no longer supported by manufacturer I
is capped at $100,000 over the next five years; and
3. The definition of "like new" equipment is clarified to mean the rebuild of the four existing belt presse
before the end of contract terms, by the manufacturer with a one year warranty.
Projected costs for the final five year term are as follows:
Annual Annual Cost Annual Costs Estimated
Fiscal Year Biosolids Cost Turbine Landfill Gas Total Annual
w1F&E Repairs Operations Purchase Costs
2nd half FY 2010* 2009-2010]F. $3,272,6061 $277,0921F $560,35211 $4,110,050
2010-2011 $6,739,632 $562,500 $1,135,536 11 $8,437,668
2011-2012 $7,019,479 1 579,372 $1,165,644 11 $8,764,495
2012-2013 $7,331,972 $596,760 $1,196,652 11 $9,125,384
2013-2014 $7,676,488 $614,664 $1,228,596 11 $9,519,748
1st half FY 2015** 2014-2015 11 $3,947,6651 $311,86811 $622,3981 881,931
Totals $35,987,842 $2,942,2561 $5,909,178 1 $44,839,276
* 6 Months (April 1, 2010, through September 30, 2010)
** 6 Months (October 1, 2014, through March 31, 2015)
Renda Environmental, Inc., is in compliance with the City's MIWBE Ordinance by committing to 20 per
MIWBE participation on this 3rd and Final 5 Year Renewal Option. The City's goal on this Renewal Or
is 19 percent.
Funding for this contract is budgeted on an annual basis. Additionally, the contract has a funding out c
that provides that the contract will terminate if the City fails to budget for any year of the option period.
This project is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Water and Sewer Operating Fund.
TO Fund/Account/Centers FROM FundlAccount/Centers
PE45 539120 0705008 $3,272,606.00
PE45 535130 0705007 $560,352,00
PE45 539120 0705007 $277,092.00
Submitted for City Manager's Office bk Fernando Costa (6122)
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=13217&councildate=41612010 4/12/2011
M&C Review Page 3 of 3
Originating Department Head: S. Frank Crumb (8207)
J Additional Information Contact: Buster Fichera (4978)
ATTACHMENTS
Dewatering Facift Site Plan.pdf
Projected Costs for Final 5-year Term Cost.pdf
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http:l/apps.cfwnet.org/council_packet/mc_review.asp?1D=13217&councildate=4/6/2010 4/12/2011
CITY SECRETARY
CONTRACT NCS. ?�!
--> STATE OF TEXAS
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KNOW ALL BY THESE PRESENTS:
COUNTY OF TARRANT
WHEREAS, the City of Fort Worth, a municipal corporation situated in Tarrant,
Wise and Denton Counties, Texas, hereinafter called "CITY" and Renda Environmental,
Inc., hereinafter called"CONTRACTOR", made and entered into City Secretary Contract
No. 20283 which was authorized by the City Council by M&C C-14255R on April 5,
1994; which contract was amended by City Secretary Contract No. 22657, authorized by
City Council M&C C-15980 on April 19, 1997; and which contract was amended by City
Secretary Contract No. 25763, authorized by City Council M&C C-17834 on January 25,
2000; and which contract was amended by City Secretary Contract No. 30908, authorized
by M&C C-20131 on June 29, 2004 to add a final five-year option to renew the
agreement and to add operation and maintenance of the gas turbine generation plant at
Village Creek Wastewater Treatment Plant; and which contract was further amended by
city Secretary Contract No. 31532 to provide for the Contractor to sell landfill gas to the
City (the contract, as amended, collectively referred to below as the "Contract")
WHEREAS, the Contract involves processing services for the follow-ung project:
Village Creek Wastewater Treatment Plant
Long-Term Solids Dewatering, Processing and Disposal
Sewer Project No. PS46-070460300020
WHEREAS, City now desires to further amend the Contract to exercise the final
5-year renewal option to extend the term of the Contract;
WHEREAS, on April 6, 20(v10 the City Council approved the Third and Final Five
Year Renewal Option to the Solids Dewatering, Processing and 11D.sposa1 and the Turbine
Operations and Maintenance Contract with Renda Environmental, Inc., for the Village
Creek Wastewater Treatment Plant Estimated in the Amount of$44,839,276.00 Payable
at a Projected Annual Cost of$8,967,855.00 by M&C 24163;
WHEREAS, City and Contractor wish to amend the Contract to revise the terms
for professional services required to operate and maintain the gas turbine generation plant
(Facility);
NOW THEREFORE, City, acting herein by and through Fernando Costa, its duly
authorized Assistant City Manager, and Contractor, acting herein by and through Oscar
Renda, its duly authorized president, enter into the following agreement (this
Amendment),which amends the Contract as follows:
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The following Bid Items contained in the Contract are amended as follows:
Bid Item No. 2 For receiving an average of approximately 119.3 tons per day of
dry solids and operating all necessary equipment for dewatering all
solids received and furnishing and applying chemicals or other
approved materials and/or processes to achieve acceptable Class A
pathogen and vector attraction reduction levels, and for
transporting and beneficially using on land, for 365 calendar days
per year for five years, complete for One Hundred Fifty-One
Dollars and Seventy-Three Cents ($1.51.73)per dry ton.
$151.73 x 217,836 dry tons = $33,052,256.28 or Thirty-Three
Million Fifty-Two Thousand Two-Hundred Fifty-Six Dollars and
Twenty-Bight Cents.
Bid Item No. 4B CPI Adjustment: The adjustments shall be limited to three and
one-half percent (3-112%) per year over the most recently
prevailing unit prices, not to exceed fifteen percent (15%) of the
`l initial unit price over the five-year term of the contract.
Add $2,835,585.72 (estimated maximum for duration of contract)
Total Cost Summary
Bid Item No. 2 $33,052,256.28
Bid Item No. 4B $ 2,835,585.72
Total Project $35,887,842.00
2.
The following Bid Item is hereby added to the Contract:
Bid Item No. 5 Allowance for reconditioning, cleaning, repairing or replacing
certain constructed equipment and facilities, that are to be returned
to the Owner at the end of the Contract, a maximum sum of One
Hundred Thousand Dollars ($100,000).
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3.
For the Final Five-Year term of the Contract the following changes are made to the
Specifications:
A. Part D, Special Conditions, Item D-26, Ownership of Constructed Facilities —The
following paragraph shall be added to the end of Item D-26.
The City shall allocate a maximum funding allowance of $100,000 for the sole
purpose of repairing and replacing certain identified equipment during the last
five year period of the contract. Such funding shall be provided by City when
such equipment cannot be further utilized and maintained in an operable and
efficient condition and such inoperability and non-maintainability is due to one or
more of the following: (a) essential parts are no longer manufactured, (b)
essential parts are not available in the marketplace, or (c) essential parts cannot
readily be obtained or easily replaced with similar parts of similar quality. The
equipment covered under this allowance is limited to the following:
i. Sludge feed pumps and associated controls and piping
ii. Filtrate pumps and associated piping and controls
iii. Conveyors and appurtenances
iv. Equipment within dewatering facility such as HVAC systems, piping,
pumps, tanks, electrical system, controls etc.
V. Automatic gate
vi. Contaminated storm water pumps
vii. Sludge storage tanks and associated piping
viii. Microwave solids analyzer and other laboratory equipment
ix. Polymer and chemical feed, storage, and handling systems, including
pumps, tanks, ming devices, controls, appurtenances and meters
X. Truck scales and associated equipment
Xi. Sludge grinders, controls and equipment
Should Contractor believe that one or more of the components listed above cannot
be further maintained or operated in an efficient manner, Contractor shall
research the availability of necessary parts and then Contractor shall submit a
written request with an estimate(s) for replacement and repair of such component
to the City for written approval prior to commencing work on equipment. City, in
its sole discretion, shall determine whether a component meets the criteria listed
above based upon the written information provided by Contractor. Contractor
further acknowledges that City's decision process may require more time than
Contractor has allocated and, as such, City's funding, if any, shall be in the form
of reimbursement to Contractor. Furthermore, any City payment for repairs shall
be limited to the actual costs of parts and outside labor and shall not include
markups on equipment, labor, material or handling costs. Labor and equipment
for replacement or maintenance shall be performed by Contractor staff/personnel
C., J Unless such performance is not feasible and with the City's written concurrence.
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JContractor acknowledges that the filter press systems and all other items not
specifically listed above are not included in this funding allowance.
B. Section 01700, Project Closeout, Paragraph 3.2 shall be revised to read as
follows:
3.2 - RECONDITIONING OF FILTER PRESSES
A. Each filter press shall be reconditioned to like-new condition by a
fully authorized manufacturer's representative. Contractor to pay
all costs except as stated in C. below.
B. Provide Owner with a twelve-month warranty on presses from the
equipment manufacturer after reconditioning.
C. Manufacturing costs for reconditioning to like-new condition are
capped at a total of $400,000 for all four original filter presses.
Manufacturer reconditioning costs over and above an aggregate of
$400,000 will be paid by the City based on invoice costs provided
by the manufacturer. This cap applies strictly to manufacturer
costs and does not include mark-ups or costs for removal of filter
`—� presses.
C. Section 01700, Project Closeout — The following paragraph shall be added to the
end of Section 01700:
3.6 SCHEDULE
A. All project closeout activities shall be complete so as to'allow
turnover of operation of the dewatering facility to the City's
successor contractor at 12:00 pm March 31, 2015. Toward that
end the Contractor shall prepare a detailed schedule of closeout
activities and submit to the City by January 1, 2011. The schedule
will incorporate the following key dates and activities:
1. Begin reconditioning of filter presses on or about January
1, 2011 and complete reconditioning of all four filter
presses prior to February 1, 2015. Only one filter press
may be removed from the facility at any one time for
reconditioning.
2. Submit a proposed training schedule and lesson outline to
the City for approval by January 1, 2015.
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3. Begin two week long transition training on or about
February 1, 2015 to include general operation of the
facility.
4. Included in the transition training will be five days of
operational and maintenance training related to the belt
presses and dewatering operation
5. Clean the stormwater lagoon as designated by the City,
between September 1, 2014 and March 1, 2015.
6. Remove all temporary structures at the project and storage
sites by March 31, 2015. The Contractor has the option,
with City's advance written approval, to leave structures in
place.
7. Provide all facility maintenance records to the Owner by
March 31, 2015 as required in Item D-27. Records to be
provided are limited to the five-year period prior to project
close-out. Records may be provided in digitally scanned,
DVD format.
8. Provide Record Drawings to the Owner by March 31, 2015
as required in Item D-56.
9. A final on-site inspection shall be conducted by the Owner
after completion of all closeout activities.
D. Section 13001, Paragraph 1.2.A. The end of the first sentence shall be changed to
the following: "average of approximately 238,780 dry pounds (119.39 dry tons)
of solids per day throughout the remainder of the contract."
E. Section 13001, Paragraph 1.2.C. - The "Daily Average" shall change from
"106.32 dry tons per day"to "119.39 dry tons per day."
4.
The M/WBE Goal for the Final Five-Year Renewal term of the Contract shall remain at
nineteen percent(19%).
5.
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Paragraph A of Exhibit A, Terms of Operation and Maintenance of the Electric
Generating Plant ("Facility") located at the Village Creek Wastewater Treatment Plant
Site is hereby amended to read as follows:
As full compensation for the operation and maintenance of the Facility as set forth below,
Contractor shall be compensated in the amount of$45,200 per month with an annual CPI
adjustment not to exceed the current yearly and total contract caps set on price increases
(3.5% and 15% respectively).
6.
In exchange for operation and maintenance of the hot oil system component of the gas
faeled turbine/generators, the Contractor shall assume operation and maintenance of the
steam turbine component of the proposed Johnson Controls Energy Project due to be
constructed and operational by year 2011. Systems to provide water quality for the steam
turbines will be maintained by the City.
7.
All other provisions of the Contract, which are not expressly amended herein, shall
remain in full force and effect.
8.
The effective date of this amendment shall be April 1, 2010.
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IN TESTIMONY WHEREOF, the City of Fort Worth has caused this instrument to be
Ssigned in quintuplet in its name and on behalf, by its Assistant City Manager and attested
by its City Secretary, with the Corporate Seal affixed, and the Contractor also has
properly executed this instrument in quadruplet copies each of which is deemed an
original.
EXECUTED in the City of Fort Worth, this day of AMIL. , 2010.
ATTEST: CITY OF FORT WORTH
a Aad
'0 -
Marty Hendrix o° 9 Fernando Costa
City Secretary0 Assistant City Manager
O �'°o e° ' d
°aoaoflpo
Approved as to Form and Legality 44,,. �a
Assistant 8ity Attorney
S. Frank Crumb, P.E.
Water Director
l
ATTEST: RENDA ENVIRONMENTAL, INC.
By-'/� Z'��
Corporate Secretary Oscar Re da
President
Contract Authorization
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Page 1 of I
Nutter, Steven
F J
From: Reynolds, Christa
Sent: Tuesday, June 01, 2010 10:33 AM
To: Nutter, Steven
Cc: Fichera, Buster
Subject: RE: Renda Biosolids Contract
No, it's a formality but you don't need to send it back for Renda to sign.
to S&yndds
Senior Assistant City Attorney
1000 Throckmorton
Fort Worth, TX 76102
817.392.8984
817.392.8359 (Fax)
From: Nutter, Steven
Sent: Tuesday, .lune 01, 2010 9:44 AM
To: Reynolds, Christa
Cc: Fichera, Buster
Subject: Renda Biosolids Contract
Christa,
Quick question. The corporate secretary for Renda has not signed he new biosolids contract(see attached). Do
need to get Renda to sign this, or is it not a problem?
Steven L. Nutter, REM, CEA
Environmental Program Manager
Pollution Control Division
Fort Worth Water Department
6/1/2010