RESOLUTION NO. R-2022-058
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA AUTHORIZING THE EXEMPTION FROM FORMAL BIDDING
PROCEDURES AND AUTHORIZING THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH ENGEL & GRAY, INC. IN THE AMOUNT OF $130,000 PER YEAR FOR THREE YEARS
WHEREAS, Engel & Gray, Inc. has been the City's service provider for biosolids composting since 2013, providing hauling, treatment and disposal of the City's Wastewater Treatment Plant biosolids; and
WHEREAS, in 2013 and again in 2018, the City Council authorized the exemption from formal bidding procedures for the biosolids composting contract due to geographical constraints and proximity of other vendors resulting in increased composting rates; and WHEREAS, the quote from Engel & Gray, Inc. is $61.58 per ton for hauling and composting and the overall contract cost will be determined by the amount of waste per ton removed and processed; and
WHEREAS, the contract cost will not exceed $130,000 per year, and $390,000 over three fiscal years (FY 2023 through FY 2025).
kuw NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes an exemption from the City's Purchasing Policy's formal bidding requirements due to geographical constraints and lack of proximity of other vendors resulting in increased composting rates.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter into a Professional Services Agreement with Engel & Gray, Inc. in the amount not to exceed $130,000 per year and $390,000 over the three- year term, for biosolids composting for Fiscal Year FY 2023 through FY 2025 (scope provided as Exhibit A).
BE IT FINALLY RESOLVED that the City Council of the City of Pismo Beach hereby appropriates $50,000 in the Wastewater Enterprise Fund Public Works, Wastewater Division, Biosolids Treatment and Disposal account from the Wastewater Enterprise Fund available fund balance (net position) in FY 2023.
UPON MOTION OF Council Member Guthrie, seconded by Council Member Newton, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 21st day of June 2022, by the following vote:
AYES: 5 Guthrie, Newton, Blake, Reiss, Waage
NOES: 0
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R-2022-058
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
Appro ed�:
l�tJ
Ed Waage, Mayor
Attest:
4:r�ica Inderh ity Clerk
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R-2022-058
Exhibit A
Legal name of firm submitting proposal
Engel & Gray Inc.
P.O. Box 5020
Santa Maria, CA 93456-5020
(805) 925-2771
Name address and telephone number of the person to whom correspondence should be directed.
Bob Engel
Engel & Gray, Inc.
P.O. Box 5020
Santa Maria, CA 93456-5020
Voice (805) 925-2771 FAX (805) 925 8023
Description of work.
Engel & Gray Inc. proposes to provide the rolloff boxes, trucks, manpower, and equipment needed to transport the biosolids generated at the Pismo Beach Waste Treatment Facility. Based on the current projections of biosolids being generated, we propose to haul the material on a weekly basis or more frequently as needed.
The material will be transported to our regional composting facility located in Santa Maria. Once the material is delivered to our facility it will be placed into windrows, blended with organic feedstock and begin the composting process.
We utilize a mechanically aerated, open windrows system for composting biosolids, manures, Greenwaste and vegetative materials. In this type of system, mixed feedstock are placed in rows and turned periodically, by specialized mechanical equipment. Height, width, shape, and spacing of the windrows will vary depending on the nature of the feedstock and the type of equipment used for turning. Oxygen is supplied 16W primarily by convective ventilation due to the buoyancy of hot gases produced in the windrow (resulting in a chimney -like effect) and, to a lesser extent, by gas exchange during turning. Water is applied as needed and mixed into the windrow to maintain the necessary moisture content in the composting matrix. All windrows are monitored for temperature and moisture daily to insure proper (effective) composting is being achieved.
Finished product moisture is generally allowed to come down to the 25-35% range to facilitate handling, retard continued microbial action, and produce the most desirable end -product.
A primary approach of Engel and Gray is to accomplish what we have done with other waste water treatment plants (wwtp) and the agricultural community. We have taken what once was a disposal issue for many wwtp's and turned it around and made a beneficial custom compost product that the landscape industry uses as a beneficial soil amendment. We have also accomplished this task in the winery and vineyard industry by taking the pomace generated by the wineries and converting that to a custom compost blend that is then taken back to the vineyards, thereby replacing the use of synthetic fertilizers. The vegetable industry has also utilized this practice in that they too bring us their culls and cuttings and we generate a compost to be applied on their farming fields as well. This type of recycling program has been strongly embraced by the landscape and agricultural communities, and we feel as though the City of Pismo Beach can continue to benefit from this type of recycling program as well.
Engel & Gray would propose to compost the City of Pismo Beach biosolids with other local organic material form the Central Coast. We would work with the City and local schools to start or enhance their school garden programs like we do across the Central Coast. We would also provide the City with 70 yards of Harvest Blend Compost on an annual basis to utilize in local projects. This would illustrate to the community the full recycling program at work.
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R-2022-058
Exhit it A
Engel & Gray has developed markets for different types of compost and has established workking relationships with the agricultural, horticultural, and landscape communities. We believe that this too would be a mutually beneficial relationship and look forward to expanding on our experience of working with the City of Pismo Beach Water Treatment Facility.
Firm Experience
Engel & Gray, Inc. operates a regional organic materials composting facility in a rural area of Northern Santa Barbara County. The facility is the result of successful composting and been in operation since July 1993. The first trial project back in 1993 was with the City of Santa Maria and the City of Pismo Beach. The trial project in 1993 showed the feasibility to compost biosolids locally and reap the benefits of the compost product in improving local soils. The facility is located approximately three miles west of the City of Santa Maria on a 40- acre portion of the City's Waste Water Treatment Plant. We are located less than three miles from the San Luis Obispo County line.
The facility is designed to function in an environmentally sensitive manner. Native soils comprising the site's working surface are compacted to achieve very low permeability rates. The facility's design incorporates a perimeter berm, precluding storm water run on and retention basins designed to contain the total site runoff from a 25-year/24-hour storm event.
Composting itself is a naturally occurring, environmentally friendly process. Engel & Gray has developed and refined the concept for this facility and its management during twenty-five years of on -going research, full-scale feasibility studies, and successful composting. This project is intended to work cooperatively with local governments to divert and/or recover residual organic resources from traditional waste streams, thereby minimizing potential groundwater impacts from disposal. The project is included as a biosolids disposal option in the City of Santa Maria's Wastewater Master Plan and is utilized by the City of Santa Maria, County of Santa Barbara and County of San Luis Obispo as a green material recycling facility. Current customers of the facility include the Cities of Santa Maria, San Luis Obispo, Buellton, Solvang, Carpenteria, and Santa Barbara. We also service districts including South San Luis Obispo Sanitation District, Montecito, and Laguna.
The project also works extensively with the agricultural community to meet the demand for quality fertilizing materials and soil amendments. Marketing is directed at horticultural, landscaping, and other general wholesale and retail areas. E&G maintains incoming feedstock are clean, naturally occurring, organic (i.e., derived from living organisms), and readily decomposable materials. All compost products produced at the proposed facility are nuisance free, non -toxic, biodegradable materials with no restrictions as to where they can be applied. This facility has permitted annual capacity to convert over 400,000 cubic yards of organic residuals into beneficial marketable end -products. The site is permitted by the County of Santa Barbara, California Integrated Waste Management Board, and the Central Coast Regional Water Quality Control Board.
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R-2022-058
Exhibit A
History
Engel & Gray, has been in business on the Central Coast for Seventy -Six years and has a reputable performance record. Established in 1946 as a trucking and construction company services have grown over the years. This entire period the company has been run as a family corporation. For the last 36 years the company has been guided by Carl W. Engel serving as president and Robert Engel as vice president.
Engel & Gray will perform the work and meet the regulatory standards pursuant to Title 14 CCR, Division 7, Chapter3.1, Article 7, Sections 17850 - 17869.
Services or data to be pvided b ,the Cit V.
Engel & Gray is a fully permitted composting facility and therefore has some requirements that need to be met by the City of Pismo Beach. The Federal Part 503 regulations require the biosolids generator to evaluate biosolids quality, maintain records and distribute biosolids quality information to subsequent processors and users needing the information and that we receive these analyses at least once a year. Engel and Gray also has requirements from the Regional Water Board to obtain specified biosolids quality information on an annual basis which the City will be required to furnish annually.
Pro osed corn ensation on a cost er ton basis.
This cost will cover the bins, transportation, and composting.
Fuel Surcharge as described in the scope of work
Annual Cost of living as described in the scope of work
SCOPE OF WORK
Engel and Gray Inc., (E&G) shall provide all services related to transportation, Composting/beneficial reuse, permitting and monitoring of the City's biosolids in accordance with all applicable federal, state and local requirements. Engel and Gray Ines., proposal includes a detailed description of the proposed method of biosolids reuse and shall include but not be limited to the following:
1. E&G Inc., shall provide all required regulatory permits for hauling and composting of the entire quantity of biosolids as specified herein. E&G shall be responsible for all fees associated with permitting. E&G shall also be responsible for meeting all monitoring and reporting requirements imposed by all regulatory agencies having jurisdiction over the E&G Composting operations; and shall provide all capital improvements, and shall pay all operating expenses, needed at the composting site to protect surface and ground waters and the site resources per the requirements of the responsible regulatory agencies. Copies of all the regulatory permits shall be provided to the City upon request. Representatives of the City shall be permitted access to the composting site with reasonable notice.
2. E&G shall be responsible for hauling 100 percent of the biosolids being generated, approximately 1600 tons/year.
3. E&G shall be responsible for furnishing and maintaining tractors and rolloff bins required to haul the biosolids. furnishing all drivers and operators; furnishing all vehicle fuel required to transport the biosolids from the City to the compost facility and return trip; provide and maintain full vehicle insurance, general liability insurance and worker's compensation insurance as required by law and identified in Exhibit B. E&G Inc., shall also be responsible for and pay all traffic violations incurred as a result of hauling operations.
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R-2022-058
Exhibit A
4. E&G shall provide sufficient facility capacity to accommodate 150 percent of the total anticipated amount of biosolids to compost during the contract period.
5. E&G shall be responsible for furnishing all equipment, Iabor and materials for the compost facility operations.
QUALIFICATIONS
E&G has been providing compost services to the Central Coast since 1993. Pismo Beach composted biosolids with Engel & Gray, Inc. in 1993 as part of the original project feasibility study to establish a regional compost facility. Engel & Gray, Inc has a proven track record of providing these services. Engel & Gray Inc. has previous operating experience with composting biosolids and is currently providing similar services for many Central Coast cities and agencies. E&G complies with all applicable regulatory requirements and shall provide all permits required for this work scope. E&G shall be capable of hauling to the proposed composting facility immediately following notice to proceed.
OPERATIONAL PROCEDURES AND HAULING SCHEDULES
Operational procedures shall be mutually arranged between the City and E&G. E&G shall provide sufficient trailers, loaders and equipment to remove biosolids continuously generated from the Water Reclamation Facility site at a frequency of not less than bi-monthly (every two months). Actual details of scheduling shall be directed by city personnel. The City may consider alternate hauling schedules as proposed if, in the opinion of the City, the proposed alternative schedule does not impede the operation of the City's Water Reclamation Facility.
E&G shall not assume that the City can store more than 500 cubic yards of biosolids on site.
Costs shall be based on a unit cost per ton. All load weights shall be provided by certified scales and provided to the City with contract invoicing.
BIOSOLIDS QUALITY
The City shall be responsible for producing PC biosolids that that do not exceed Table 3 requirements for pollutants [40 CFR 503.13], meet alternative 1 [40 CFR 503.33(b)] for vector attraction using Volatile Solids Reduction (VSR) of 38% or greater and meet alternative 2 for Processes to Significantly Reduce Pathogens (PSRP) [40 CFR 503.32(b)(3)] using anaerobic digestion. The City will provide biosolids quality monitoring as required by the 40 CFR 503 regulations and Engel & Gray Inc., permits.
The dewatered biosolids come from a belt filter press. The belt press solids are approximately 15% to 20% solids and of moist cake consistency.
E&G shall provide covered bins during transport to prevent any loss of biosolids while being transported from the Water Reclamation Facility to the compost facility.
LICENSING
All equipment utilized in connection with this contract shall be fully licensed to operate on the highways of the State of California. All public highway drivers and operators of such equipment shall be fully licensed by the State of California Department of Motor Vehicles.
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R-2022-058
Exhibit A
EQUIPMENT CLEANING
E&G Inc., shall be responsible for keeping our equipment in neat and clean manner. Major cleaning and servicing of equipment shall not take place at the City's Water Reclamation Facility. `r RULES AND REGULATIONS
E&G shall be aware of existing, revised, proposed and new Federal, State and Local and other rules and regulations covering her/his activities in connection with this work.
Changes in regulations or practices necessitated by any revision in rules and regulations shall be brought to the attention of the City sufficiently in advance of their implementation so as to permit adjustment of the schedule or method of operation of the proposer.
CONTRACT TERMS
Length of Agreement. This agreement shall continue in full force and effort for a period of Three (3) years commencing July 1.2022 and ending June 30, 2025. The term shall be automatically extended for successive periods of one (1) year each unless either party gives the other party not less than Two years prior written notice of its election not to extend. Except as subject to early termination as provided the agreement.
Cost of Living Adjustments. Twelve (12) months after the Commencement Date and every twelve (12) months thereafter, the Charges for the remaining agreement term shall be adjusted to reflect an adjustment of the change in the Consumer Price Index between the month which is three (4) months prior to the month of the Commencement Date and the month which is three (4) months prior to the adjustment date. 60 Fuel surcharge. A fuel surcharge will be applied to the fee per ton based on a July 2013 pump price for Diesel of $3.94. For every $ 0.07 increase above this results in a one percent surcharge (1 %) to the fee. The posted price is taken from Web URL: httt,://tonto.eia.doe.,_,ov/oou. info/wohdj)/diesel.asThis is the Energy Information Administration (EIA) web page, created by Congress in 1977. The EIA is a statistical agency of the U.S. Department of Energy. They calculate the On -highway diesel prices, by week and PADD (Self Service Cash Price in Dollars per Gallon, Including Taxes) For example if the price of Diesel on March 1, 2004 rises to $1.939, $1.939 minus $ 1.674 equals $0.265. $0.265 divided by $ 0.07 equals 3.78 or 4 percent surcharge.
We have proposed to keep the fuel base price at $ 3.94 as this had been the fuel price as recently as one year ago. Keeping it at this original rate will hopefully protect a lower rate when prices decline. We have also moved the CPI dates to four months prior to July 1, as this will enable us to provide the City with the new rate well before the start of the City fiscal year.
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