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HomeMy WebLinkAboutStaff Report 186-10.' . City of Palo Alto 9 City Manager's Report TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: APRIL 5,2010 CMR:186:10 REPORT TYPE: CONSENT SUBJECT: Approval of a Wastewater Treatment .Enterprise Fund Contract with Veolia ES Technical Solutions, LLC for a Period of Three Years for Provision of Services for Transportation and Disposal of Ash and Sludge for the Regional Water Quality Control Plant with Funding for the First Year Approved in the Amount of $144,510 RECOMMENDATION Staff recommends that Council direct staff to approve and authorize the City Manager or his designee to execute the attached contract with Veolia ES Technical Solutions, LLC (Veolia) for a period of three years with funding in the amount not to exceed $144,510 in the first year, and a five percent increase fot year two at an amount not to exceed $149,823, and a five percent increase for year three at an amount not to exceed $155,297 for provision of services for transportation and disposal of ash and sludge for the Regional Water Quality Control Plant (R WQCP) (Attachment A). Project Description The RWQCP produces approximately two tons per day of ash from its sewage sludge incinerators. In 2009, approximately 717 tons of ash was generated, stored in a 40 cubic yard roll-off bin, hauled away, and disposed in a landfill. The soluble copper concentration of the ash has been just above the state's hazardous waste threshold value. Consequently, the ash has been managed as a state hazardous waste and placed in a hazardous waste landfill instead of a standard landfill. The existing ash hauler is Clean Harbors Environmental Services (Clean Harbors) who has been hauling and disposing of the plant's ash since May 2007 at Clean Harbors' hazardous waste landfill in Buttonwillow, California. Staffhas investigated the origin of the soluble copper that violates the state (but not the federal) hazardous waste criteria. Staff has not been able to determine the cause of the soluble copper oj' any practical treatment modifications. The soluble copper forming in the ash during sludge incineration has not impacted the plaut's air or water discharges. Veolia will dedicate two sealed bins for ash hauling service. Veolia will pick up a full bin of ash approximately once a week and swap out the full bin with an empty bin. Veolia will transport the ash to the Kettleman Hills Hazardous Wa;ie Facility operated by Waste Management, Inc. The Kettleman Hills Hazardous Waste Facility is fully permitted to receive hazardous waste and CMR:186:10 Page 1 of3 is located approximately 4 miles west Of Interstate 5 and 3.5 miles southwest of Kettleman City, California. The City's two sewage sludge incinerators have been operating reliably since 1972, without any serious disruption to the incineration process. However, it is possible that extended incinerator downtime would leave the City without readily available sludge treatment and disposal alternatives. As a backup to ash disposal, Veolia will provide emergency sludge transport and disposal in the rare event that the plant's two sewage sludge incinerators are both inoperative for a period of more than about four days. Summary of Bid Process A request for quotation for the project was posted at City Hall and sent to three bidders. The bidding period was 26 days. Bids were received from two qualified contractors on February 23, 2010, as listed on the attached bid summary (Attachment B). Staff has reviewed all bids submitted. Bids ranged from a high of $150,805 (Clean Harbors) to a low bid of $144,510 (Veolia). The Veolia bid is 29.4 percent below the engineer'S estimate of $204,562; the bidding environment is currently very competitive with bid prices lower in this contract than in the existing hauling contract. Staff recommends that the bid of $144,510 submitted by Veolia be accepted and that Veolia be declared the lowest responsible bidder. Both bidders submitted price inereases for years two and three, which were 5% each year (Veolia) and 3% each year (Clean Harbors). Veolia's annual price increase was slightly higher than Clean Harbors' price increase, yet the total three year Veolia bid ($450,260.34) was still lower than the Clean Harbors bid ($463,838.59). The price increase for the second and third contract years was included in the bid to lock-in prices; the price increase covers the vendor's anticipated cost increases in regulatory compliance, fuel, waste hauling, labor, landfill tipping fees, and so forth. Staff checked references supplied by the contractor for previous work performed and found no significant complaints. Staff also checked with the Contractor's State License Board and found that the contractor has an active license on file. Bid NamelNumber Transportation and Disposal of Ash and Sludge / RFQ 135247 ...... Proposed Length ofProicct 1 year with option to extend two additional vears Number of Bids Mailed to Contractors 3 Number of Bids Mailed to Builder's 0 ~anJ?,()s . Total Days to Respond to Bid 26 Pre-Bid Meeting? Yes Number of Company Attendees at Pre-Bid 4 Meeting? Number of Bids Received: 3* Bid Price Range From a low of $144,510 to a high of$150,805 *Bid summary provided in Attachment B. CMR:186:10 Page 2 of3 .. RESOURCE IMPACT Funds for the first year of the contract have been appropriated in the FY 2009-2010 Wastewater Enterprise Funds. Fund for years two and three are contingent upon Council approval of the budget for each subsequent year. POLICY IMPLICATIONS This recommendation does not represent any change to existing City policies. ENVIRONMENTAL REVIEW The recommended action is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15301 (b), which exempts negligible expansion of an existing use including operation of publicly-owned sewerage services, structures, facilities, mechanical equipment, or topographical features. ATTACHMENTS Attachment A: Contract Attachment B: Bid Summary PREPARED BY: DEPARTMENT HEAD; CITY MANAGER APPROVAL: CMR:186:10 JAMES S. ALLEN Manager, Water Quality Control Plant !:Ll~· GLENN S. ROBERTS Director of Public Works Page 3 of3 , ATTACHMENT A CITY OF PALO ALTO CONTRACT NO. C10135247 GENERAl, SERVICES AGREEMENT THIS AGREEMENT made and entered inlo on the day of April, 2010, by and between the CITY OF PALO ALTO, a California Chartered Municipal Corporation ("CITY"), and VEOLIA KS TECHNICAL SOLUTIONS, LLC, a Limited Liability Company, located at 3797 Spinnaker Court, Fremont, CA 94538, Telephone Number: 510-652-1964 ("CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows: 1. SERVICES. CONTRACl'OR shall provide or furnish the services ("Services") described in the Scope of Services, attached as Exhibit A. 2. EXIllBITS. The following exhibits are attached to and made a part of this Agreement: [g] "A" -Scope of Services [g] "B" -Schedule of Performance [g] "C" -Compensation [g] "D" -Insurance Requirements D "E" -Perfonnance andlor Payment Bond (Not applieable) D "F" -Liquidated Damages (Not applicable) CONTJlACT 18 NOTCOMPLb7E UNLESS ALL EXHIBITS ARE ATTACHED. 3_ TERM. The term of this Agrcement is from April -' 2010to April _, 2013 inclusive, subject to the provisions of Section Q and V of the General Tenns and Conditions. 4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complele the Services within the term of this Agreement in a reasonably prompt and timely manner based upon the circumstances and direction communicated to CONTRACTOR, and if applicable, in accordance with the schedule set forth in the Schedule of Performance, attlched as Exhibit B. Time is of the essence in this Agreement. 5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees to accept as not to exceed compensation for the full performance of the Services and reimbursable expenses, if any: The total maximum lump sum compensation of dollars ($ );OR n The sum of dollars ($ ) per hour, not to exceed a total maximum compensation amount of dollars ($ ); OR R: A sum calculated in accordance with the fee schedule set forth in Exhibit C, not to exceed a total maximum compensation amount of one hundred forty-fonr thonsand five hundred ten dollars ($144,510.00) per year. A five percent (5%) increase will be added· for the second and third year of Illis contract for Bid line items A-I through A-4. and for Bid line items B-1 through B-4. CONTRACTOR agrees that it can perfonn the Services for an amount not to exceed the total maximum compensation set forth above. Any hours worked or services perfonned by CONTRACTOR for which payment would result in a total exceeding the maximum amount of compensation set forth above for performance of the Services shall be at no cost to CITY, r The City has set aside the sum of dollars ($ ) for Additional Services. CONTRACTOR shall provide Additional Services only by advanced, written Rev. December 1. 2009 \\CC~ TERRA\jarn:ol\PURCHDOc\sAP Bids nnd Proposals\RFQ\RFQI35247 Transportation and Disposal of Ash and Sludgc\Contrnct ClO135247 VEOUA -REVIEW -A(">AIN 03IOtO.doc CITY OF PALO ALTO CONTRACT NO. CIOl35247 authorization from the City Manager or designee. CONTRACTOR, at the CITY', request, shall suhmit a detailed writlen proposal including a description of the scope of services, schedule, level of effort, and CONTRACTOR's propo..ed maximum compensation, including reimbursable expense, for such services. Compensation shall be based on lbe hourly rates set forth above or in Exhibit C (willchever is applicable), or if such rates are not applicable, a negotiated lump sum. CITY shall not authorize and CONTRACTOR sball not perfoon any Additional Services for which payment would exceed the amount set forth above for Additional. Services. Payment for Additional Services is subject to all·rcquirements and restriotions in this Agreement. 6. COMPENSATION DURING ADDITIONAL TERMS. o CONTRACTOR'S compensation rates for each additional term shall be the same as the original tena; OR !J CONTRACTOR's compensation rates shall be adjusted effective on the commencement of each Additional Term. The lump sum compensation amount, .hourly rates, or fees, whichever is applicable as set forth in section 5 above, shall be adjusted by a percentage equal to the change in the Consumer Price Index for Urban Wage Earners and aerieal Workers for the San Francisco-Oakland-San Jose area, published by the United States Department of Labor Statistics (CPI) which is published most immediately preceding the commencement of the applicable Additional Term, which shall be compared with the CPI puhlished most immediately preceding the commencement date of the then expiring term. Notwithstanding the foregoing, in no event shall CONTRAcrOR's compensation rates be increased by an amount exceeding five percent of the rates efrective during the immediately preceding term. Any adjustment 10 CONTRACTOR's compensation rates shall be reflected in a written amendment to this Agreement. 7. INVOICING. Send all invoices to the CITY, Attention: Project Manager. The Project Manager is; James Allen, Public Works Department, Regio""l Water Quality Control Plant Division, at 2501 Embarcadero Way, Palo Alto, CA 94303, Telephone: 650·329-2243. Invoices sball be submitted in arrearS for Servrees performed. Invoices sball not be submitted more frequently than monthly. Invoices shall provide a detailed statement of Services petformed during the invoice period and are subject to verification by CITY. CITY shall pay tbe undisputed amount of invoices wilhin 30 days of receipt. GENERAL TERMS AND CONDITIONS A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of this Agreement. This Agreement includes and is limited to the terms and conditions set forth in sections I through 6 above, these general terms and conditions and the attached exhibits. B. QUALIFICATIONS. CONTRACTOR represenls and warrants that it has the expertise and qualifications to complete the services described in Section I of this Agreement, entitled "SERVlCES," and that every individual charged with the petfonnance of the services under this Agreement has sufficient skill and experience and is duly licensed or certified, to the extent such licensing or certification is required by law, 10 petform the Services. CITY expressly relies on CONTRACTOR's represenlations regarding its skills, knowledge, and certifications. CONTRACTOR shall perform all work in accordance with generally accepted business practices and performance standards of the industry, including all federal, state, and local operation and safely regulations. C. INDEP.ENDENT CONTRACTOR. It is understood and agreed thai in the perfonnance of this Agreement, CONTRACTOR and any person employed by CONTRACTOR shall al all times be considered ·an independent CONTRACTOR and not an agent or employee of CITY. CONTRACTOR shall be responsible for employing or engaging all persollS necessary to complete tha work required under this Agreement. 2 Rev. 1)~ber t,2009 \\cC·TERRA\jarreol\PURCHOOc\sAP Bids and Proposals\RFQ\RFQI35L47 Tram;,pOf1jH~on and DiSpOsal of Ash and Sludgc\ContTact C10l3S247 VEOLlA ~ FINAL 0312l0.doc CITY OF PALO ALTO CONTRACT NO. C10135247 D •. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perfonn any Services under this Agreement unless CONTRACTOR obtains prior written consent of CITY. CONTRACl'OR shall be solely responsible for directing the work of approved subcontractors and for any compensation due to subcontractors. E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes, fees, contributions or charges applicable to the conduct of CONTRACTOR's business. F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services comply with all applicable federal, state and local laws, ordinances, regulations, and orders. G. DAMAGE TO PUBLIC OR PRlV ATE PROPERTY. CONTRACTOR shall, at its sole expense, repair in kind, or as the City Manager or designee shall direct, any damage to public or private property that occurs in connection with CONTRACTOR's performance of the Services. OTY may decline to approve and may withhold payment in whole or in part to such extent as may be necessary to protect CITY from loss because of defective work not remedied or other damage to the CITY occurring in connection with CONTRACTOR's performance of the Services. CITY shall submit written documentation in support of such withholding upon CONTRACTOR's request. When the grounds described above are removed, payment sball be made for amounts withheld becarue of them. I B. . WARRANTIES, CONTRACTOR expressly warrants that all services provided under this Agreement shall be performed in a professional and workmanlike manner in accordance with generally accepted business practices and performance standards of the industry and the requirements of this Agreement. CONTRACTOR expressly warrants that aU materials, goods and equipment provided by CONTRACTOR under this Agreement shall be fit for the particular purpose intended, shall be free from defects, and shall conform to the requirements of this Agreement. CONTRACTOR agrees to promptly replace or correct any material or service not in compliance with these warranties, including incomplete, inaccurate, or defective material or service, at no further cost to OTY. The warranties set forth in this section sball be in effect for a period of one year from completion of the Services and shall survive the completion of the Services or termination of this Agreement i. COMPOSITION OF WASTE If CITY'S waste materials do not confonn to the descriptions and specifications in the corresponding Prome Sheet, CONTRACTOR and CIIT shall, in good faith, aUempt to amend the Prome Sheet and any other pertinent documents andlor correct any improper containeri2ation, marking or labeling to enable CONTRACTOR. to accept such non-conforming waste materials at. Facility. If the parties cannot, within a reasonable time after CONTRACTOR notifies OTY the waste materials are non-conforming, resolve the same as set forth above, CITY shall make prompt arrangements for the removal of such non-conforming waste materials from the Facility at which they are located to another lawful place of storage or disposal. OTY agrees to pay CONTRACTOR its reasonable expenses and charges incurred with respect to CITY'S' non-conforming waste materials. ii. CONTRACTOR REPRESENTS AND WARRANTS TO CITY THAT: a. CONTRACTOR is engaged in the business of performing Serviees with respect to waste materials and bas developed the requisite expertise to perform the Services agreed to by OIT and CONTRACTOR hereunder; b. all CONTRACTOR vehicles and each Facility utilized to perform Services hereunder shall have all permits, licenses, certificates or approvals required under applicable laws and regulations for such Services; and c. CONTRACTOR. will perfonn Services for OIT in a safe and workmanlike manner, and in compliance with all stalntes, ordinances, laws, orders, rules and regulations applicable to the Services. 3 Rev. December 1, 20D9 \\cC-TI!RRA~.rr.ol\PURCHDOC\sAP Bids and ProposaisIRFQIRFQl3S247 Transportation and Disposal of Asb and Sludse\Conlrnct C I 0 135247 VEOUA -FINAL 03121O,doc CITY OF PALO ALTO CONTRACfNO. CI0135247 Hi. CITY'S WARRANTIES CITY represents and warrants to CONTRACTOR that: a. the description of and specifications pertaining to its waste material.s in tbe Profile Sheet is and at all times will be true and correct in all material respects, imd waste materials tendered to CONTRACfOR will at all times, including, without limitation, at the time of recertification of the waste materials, conform to the description and speciflcations contained in the Profile Sbeet; b. CITY has made available all information it has regarding Ibe waste materials, and if CITY receives information that the waste materials described in a Profile Sheet present, or msy present, a hazard or risk to persons or the environment not reasonably disclosed in the Prome Sheet, CITY will promptly report sucb information to CONTRACTOR; c. if CITY is not the Generator of the waste materials (as defined in 40 CPR 260.10), CITY has all necessary authority to enter into this Agreement with respect to the waste materials; d. CITY is under no legal restraint which prolnbits the transfer of possession of sucb waste msterials to CONTRACTOR; e. CITY shall comply with all applicable stalnte$, ordinances, laws, orders, rules and regulations applicable to the services, and shall provide CONTRACfOR a sare work environment for Services performed on any premises owned or controlled by CITY; and f. ifCONTRACfORrequests that work areas be secured, CITY will be solely responsible for securing such work areas and for preventing anyone other than CONTRACfOR personnel from entering the designated work areas. L MONITORING OF SERVICES. CITY msy monitor the Services performed under this Agreement to determine whether CONTRACTOR's work is completed in a satisfactOl:Y manner and complies with the provisions ofthia Agreement. J. CITY'S PROPERTY. Any reports, information, data or other material (including copyrigbt interests) developed, collected, assembled, prepared, or caused to be prepared under this Agreement will become the property of CITY without restriction or limitation upon their usc and will not be made available to any individual or organization by CONTRACTOR or its subcontrnctors, if any, without the prior written approval of the City Manager. K. AUl)ITS. CONTRACfOR agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for three (3) years from the date of fmal payment, CONTRACTOR's records pertaining to matters covered by this Agreement. CONTRACTOR agrees to maintain accurate books and records in accordance with generally accepted accounting principles for at least three (3) following the terms of this Agreement. L. NO IMPLIED W AIVEJl. No payment, partial payment, acceptance, or partial acceptnnce by CITY shall operate as a waiver on the part of CITY of any of its rigbts under this Agreement. M. INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full force during the term of this Agreement, the insurance coverage described in Exhibit D. Insurance must be provided by companies with a Best's Key rating of A·:VII or higher and whicb are otherwise acceptable to the City's Risk Manager. The City's Risk Manager must apprnve deductibles and self-insured retentions. In addition, .11 policies, endorsements, certificates and/or binders are subject to approval by the Risk Manager a. to form and content. CONTRACTOR shall obtain • policy endorsement naming the City or Palo Alto as an additional insured under any general liability or automobile policy. CONTRACfOR shall obtain an endorsement stating that the insurance is primary coverage and will not be canceled or materially reduced in coverage or limits until after providing 30 days prior written notice of the cancellation or modification to the City's Risk Manager. CONTRACfOR shall provide certificates of such policies or other evidence of coverage satisfactory to CITY'. Risk Manager, togelber witb the required endorsements and evidence of payment of premiums, to CITY concurrently with Ibe execution of this Agreement and shall throughout the term of this Agreement provide current certificates evidencing the required insurance coverages and endorsements to the CITY'. Risk Manager. CONTRACfOR shall include all subcontractors as insured under its policies or shall ubtain and provide to CITY separate certificates and endorsements for each subeontractor that meet an the requirements of this section. The procuring of such required poliCies of insurance shan not operate to limit CONTRACTOR'. liability or obligation to indemnify CITY under this Agreement. 4 Rev, December 1, 2009 \\CC~TBRRA~arreol'IPURCHDOC\sAP Bids and Proposals\RFQ\RFQ135241 Ttansportation and rnsposat of Ash and Sludge\ConlT",' ClO135247 VroLlA· FfNA~ 031210.000 CITY OF l' ALO ALTO CONTRACT NO. ClO135247 N. HOLD HARi'~LESS. To the fullest extent permitted by law and without limitation by the provisions of section M relating to insurance, CONTRACTOR shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents from and against any and all demands, claims, injuries, losses, or liabilities of any nature, including death or injury to any person, property damage or any other loss and including without limitation all damages, penalties, fIneS and judgments, associated investigation and administrative expenses and defense cos1lO, including, but not limited to reasonable attorney's fees, cour1lO co,ts and co,t, of alternative dispute resolution), 'arising out of, or resulting in any way from or in connection with the performance of this Agreement. The CONTRACTOR', obligations under ,this Section apply regardless of whether or not a liability is caused or contributed to by any negligeut (passive or active) act or omission of CITY, except that the CONTRACTOR shall not be obligated to indamnify for liabllity arising from the sole negligence or willful misconduct of the CITY. CONTRACTOR'S obligation to indemnify the CITY shall not extend to any loss or damage of any kind or nature caused by the CITY. The aeceptanee of the Services by CITY shall not operate a. a waiver oftbe right of indemnification. The provisions of this Section ,urvive the completion of the Services or termination of this Contract. O. NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510, CONTRACTOR certifies that in the perfonnance of this Agreemen~ it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, Wltional origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONTRACTOR acknowledges that it has read and understands the provisions of Scction 2.30.510 of the Palo Alto Municipal Code relating to Noodiscri.mination Requirements aod the penalties for violation thereof; and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. P. WORKERS' COMPENSATION. CONTRACTOR, by executing tlris Agreement, certifies that it is aware of Ihe provisions of the Labor Code of the State of California which require every (employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and certifies that it will comply with such provisions, as applicable, before commencing and during the performance of the Services. Q. TERMINATION. The City Manager may terminate tlris Agreement without cause by giving ten (10) days' prior written notice thereof to CONTRACTOR. If CONTRACTOR fails to perform any of its material obligations under this Agreement, in addition 10 all other remedies provided by law, the City Manager may lerminate this Agreement immediately upon written notice of termination. Upon receipt of such notice of termination, CONTRACTOR shall immediately discontinue peribrmance. CITY, CITY shall pay CONTRACTOR for services satisfactorily perfonned up to the effective date of termination. If the termination if for cause, CITY may deduct from such payment the amount of actual damage, if any, sustained by CITY due to Contractor's failure to perfonn its material obligations under this Agreement. Upon termination, CONTRACTOR shall immediately deliver to the City Manager any aod aU copies of studies, sketches, drawings, computations, aod other material or products, whether or not completed, prepared by CONTRACTOR or given to CONTRACTOR, in connection with this Agreement. Such materials shall become the property of CITY. R. ASSIGNMEN'fSICHANGES. This Agreement binds the parties and their successors aed assigns to all covenan1lO of this Agreement. This Agreement shall not be assigned or transferred without the prior written consent of the CITY. No amendments, changes or variations of any kind are authorized without the written consent of the CITY. S. CON)l'LICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants that it presently has no interest, aod will nol acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance oftms Contract. CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any person having such an interest CONTRACTOR certifies that no City Officer, employee, or authorized representative has any fmanclal interest in the business of CONTRACTOR and that no 5 Rev. Oooember 1, 2009 \\CC.TERRA~am:ol\PURCHDOCISAP Did, and Prcposal,\RFQ\RFQI3S247 Transpol1ation and Disposal of Ash and Slads.lenon,ct CI0l3S247 VBOLlA· PINAL Q31210.dn< CITY OF PALO ALTO CONTRAcrNO. CI0135247 person associated with contractor bas any interest, diteClGr indirect, whicb oould oonilict with the faithful performance of this Contract. CONTRAcrOR agrees to advise CITY if any conflict arises. T. GOVERNING LAW. This oontract shall be governed and interpreted by the laws of the State of California. U. ENTIRE AGREEMENT. This. Agreement, including all exhibits, represents the entire agreement between the parties with respect to the services that may be the subject of this Agree:rnent. Any varianee in the exhibits does not affect the validity of the Agreement and the Agreement itself controls over any conflicting provisions in the exhibits. This Agreement supersedes 311 prior agreements, representations, statements, negonatioDS and undertakings whether oral or written. V. NON-Al'l'ROl'RIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the fullowmg fiscal year, or (b) at any time within a fiscal year in the event thaI funds are only appropriated for a portion of the fiscal year and funds for this Contract are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Contract. W. ENVIRONMENTALLY PREFERRED PURCHASING. CONTRAcrOR sball comply with the City's Environmentally Preferred Purcbasing policies whicb are available at the City'. Purchasing Department whicb are incorporated by reference and may be amended from time to time. X. AUTHORITY. The individual(s) executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Y. CONTRACT TERMS: All uncbecked box""s do not apply to this Contract. IN WITNESS WHEREOF, the parties hereto have by their duly anthorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO CONTRACTOR: VEOLJA ES TECHNICAL SOLUTIONS, LLC City Manager or Designee (Required on contracts $85,000 and over) ~~~~~WA~~ ________ _ Purchasing Manager or Designee Approved as to form, Senior Asst. City Attorney 6 Rev, December 1,2009 \\CC~ TSRRA\jam:01\PURCHDOC\SAP Bids and Proposals\RFQ\RFQ135247 Transportation and Disposal of Ash and Sludge\Contract ClO135247 VEOLIA • FlNAL 03121O.doc CITY OF PALO ALTO CONTRACT NO. ClOl35247 EXHIBIT A SCOPE OF SERVICES 1.1 BACKGROUND A. The Palo Alto Regional Water Quality Control Plant (RWQCP) operates a sewage sludge incinerator, which creates bottom ash. The sludge is thermally transformed into ash containing inorgonlc oxides. 1.2 PURPOSE 1.3 A. This contract is for hauling and disposal of ash. The contractor is to maintain qualifications and licenses to haul the ash to • State ofCaliforni. Class l-nooRCRA sanitary landfill. B. The contractor shall transport and dispose of the ash in accordance with the terms and conditions of this contract. The Contrsctor shall be expresslydesignsted by the Parties hereto as the transporter ot; and the arranger for the disposal of all wastes to be transported, managed and disposed of under this contract. C. The sewage sludge incinerators have been operating since 1972 and producing ash. Though the incinerators have never fuiled, the potential exists for incinerator nonoperation and loss of all surplus sludge storage capacity. In this case, a backup transportation and disposal contract is needed to handle dewntered, untreated sludge and disposal .t a sanitary landfill or at another sewage treatment plant. CHARACTER1STICS OF ASH AND SLUDGE A. The RWQCP produces approximately 825 dry tons of ash per year. Pickups are typically weekly. and average 14 to 15 tons per pickup. Pickups are occasionllllymore often than once a week. B. Sludge production is estimated to be 64 tons per day of 28% dry sludge cake (undigested and untreated). 1.4 ASH PACKAGING AND TRANSPORTATION A. The city will load the ash into a bin owned by the contractor and left at the plant site. The contractor shall provide two watertight, open-top, t_rped bins for ash. One bin shall remain at the RWQCP and the other shall be used by the contractor for exchanges. The contractor shall deliver the bin to the RWQCP for the temporary storage of the ash. The city will place the ash into the bin a1)d will notify the contractor for exchange of bin and disposal of the ash when the bin is sufficiently fuJI and ready for disposal. The bin, each approximately 40 cubic yards, shall be water tight, lined, tarped, and suitable for transportation of the ash. B. The city will notify the contractor two calendar days before the required disposal of the ash and bin exchange. Upon notice, the contractor shall at its expeese, remove, transport, and dispoae of the ash at .. state approved, class l-nonRCRA sanitary landfiU site suitable for proper disposal of ash. Removal and exchange of the bins shall be between the hours of7:00 a.m. and 7:00 p.m., upon city notification. Transportation shall be by licensed, registered hauler who complies with alliacal, state, and federal laws. C. The city owns and maintains an ash bin cover with. screw io move ash throughout the bin for even distribution. The waste hauler shall only provide bins compatible with the existing I Rev. December 1,2n09 \\CC-TERRA\janeol\JlURCHDOc\sAP Bids and PJ'¢posals\R.FQ\RFQ13S247 Transportation and Disposal of Ash and SludgelCon_' CIOD5247 VEOUA -FINAL 0312 lO.doc CITY OF PALO ALTOCONmACTNO. CIOt3S247 cover. A diagram and dimensions of the dty's 'slt bin COver is included in Exhibit A-I. The city will remove the ash bin cover prior to bin pickup. 1.S EMERGENCY SLUDGE PACKAGING AND TRANSPORT A TION A. The city will load the sludge into a bin owned by the contractor and left at the plant site after notification of need for this service. The contraclor shall provide multiple watertight bins for sludge. One bin shall remain at the RWQcP and the others shall be used by the contractor for exchanges. The contractor shall deliver the bin to lbe RWQCP for lbe temporary storage of the sludge. The city will place lbe sludge into lbe bin and will notify the contractor for exchange of bin and disposal of the sludge when the bin is sufficiently full aud ready for disposal. The bin, each approximately 20 cubic yards, shall be water tight, tined, and suitable for transportation of untreated sludge. B. If the emergency sludge disposal is needed, the hauler will need to mobilize to provide 'service within 24 hours. The plant will need the change oilt of five or more vendor-supplied '20-cubic yard drop-off bins per day, 24 hours per day, seven days per week. The hauling and transport of sewage sludge will continue until the sewage sludge incinerators are repaired. The vendor will need to have made arrangements in advance for this service should it be required. C. The city will notify the contractor in the event of an emergcncy need to use their services for sludge hauling. The contractor shall provide a 24-hour emergency dispatch number. Upon notice, the contractor shall at its expanse, remove, transport, and dispose of the sludge at an approved sanitary landfill site suitable for proper disposal of untreated sewage sludge. Removal and exchange of the bins shall be at all hours of plant operation. Temporary storagc of sludge bins is available onsile when landfills are closed. Transportation shan be by licensed, registered hauler who complies with all local, state, and federal laws. 1.6 WEIGHTS AND ASSAYS A. The city will keep a record of the estimated weight or volume of each truck load of waste. At . its expense, the contractor shan weigh each truckload of waste received at its disposal site and submit the weight tags to the RWQCP. 1.7 DOCUMENTATION, PERMITS AND INSURANCE A. The contractor shall maintain permits and insurance required during the term of this contract. B. Contractor shall provide all appropriate documentation, certifications and records for the transportstion, management and disposal of Class I wastes and all applicable federal, state and local laws and regulations, including. but not limited to: I. bills of lading or non-1w:ardoUl! waste manifests 2. Class I waste manifests and continuation sheets 3. Iabpack inventory sbeets 4. land disposal restriction notifications S. Class I waste prom .. 6. certificates of destruction, decontamination, disposal and/or recycling Appropriate copies of the documentation listed above as well as any other documents required by the City's Project Manager sholl be furnished to the City's Project Manager at the time of waste shipment. C. Closed originals of all unifonn hazardous (and non-hozardous) waste manifests sigoed by a duly authorized representative of the receiving TreatmentiStoragelDisposa1 Facility (TSDF) shall be furnished to the City's Project Manager within thirty (30) calendar days of waste 2 Rev, December 1,2009 \\CC-TERRA~,,,,,,oIlPURCHIlOC\sAP Bid, and ProposalsIRFQ\RFQI3S241 Transportation and DI,_I of Allh and SludgelConlnlot Cl 0135241 VEOLIA PINAL 03121O.doe CITY OF PALO ALTO CONTRACT NO. ClO135247 shipment. This requirement shall survive the expiration andlor termination of the Agreement. D. Certificates of destruction, decontamination, disposal andlor recycling signed by a duly authorized representative of the receiving TSDF shall be furnished by the Contractor to the City's Project Manager for all wastes to be managed under this contract within one hundred and eighty (180) calendar days of waste shipmen!. This requirement shall survive the expiration andlor termination of the Agreement. E. The Contractor shall, at all times during the transportation, storage, and disposal of wastes to be managed under this contract, know the location, condition and status of each item being managed. The Contractor shall make such information available in written progress reports to the City's Project Manager upon request. The progress reports shall include a listing of items removed, referenced by an appropriate identification number and unifonn Class I waste manifest number and a description of the location and status of wastes on date of the written progress report. 1.8 PICKUP ADDRESS 1.9 A. Palo Alto Regional Water Quality Control Plant Attn: Oporations Shift Supervisor or Senior Operator 2501 Embarcadero Way Palo Alto, CA 94303 65()'329·2598 • phone MISCELLANEOUS CONDITIONS A. The waste hauler will have free and easy access to the picknp site. B. The waste hauler willlllllintain containers in DOT shippable condition. C. JRANSFER OF TID;E CONTRACTOR shan take title to CiTY'. waste materials which conform In the descriptions and specifications stated in the Profile Sheet upon completion of loading into CONTRACTOR's transportation vehicles, or if transported by CITY. upon acceptance at the Facility. END OF SCOPE 3. ~v.~cemberl.2009 \\CC~TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFQ\RFQ135247 TranspO:rtalion and Disposal of Ash and Sludge'Contraot ClO135247 Vl!OLlA • FINAL 03l2JO.doc CITY OF PALO ALTO CONTRACT NO. CI0135247 EXHIBITB SCHEDULE OF PERFORMANCE CONTRACTOR shall perfonn the Services according to the following schedule: • On-GOing services for a period oflhree (3) years. 1 \\cC-TERRA'!jarreol\PURCHDOC\SAP Bids and Prnpnsals\RFQ\RFQ135247 Transponation and Disposal of Ash and SludgelContract CIO!35247 VEOLlA -FINAL 03121O.doc Bid Schedule A : BID APPROX. ITEM QTY. A-I 825 A-Z 52 A-3 52 A-4 365 A-S 825 A-6 825 A-7 I Bid Sehedule A-. BID APPROX. ITEM QTY. B·l 128 B-2 12 B·3 12 B-4 12 B-5 128 B·6 12 B-7 6 B-8 48 CITY OF PALO ALTO CONTRACT NO. CIOl35247 UNIT Ton Load Load Days Ton Ton 18 UNIT Ton Load Load Days Ton Load Each I Hour EXHIBITC SCHEDULE OF FEES DESCRlPTION Disposal cost of ash: Transportation cost of ash: Liner installation fee for ash -per load: ; Bin Rental for ash: Califomia Non-RCRA taxes fur ash: (Baaed on the most current Cn Ufomia BOE schedule Local taxes for ash, as necessary, per ton (10% per ton • based on the most current King's County tax rate) Surcharges!fees for ash, lump sum (one-time fee) DESCRlPTION Disposal cost of sludse : ; Transportatiou cost for sludge: Liner installation fee for sludge -per load: Bin Rental: i Local taxes, as necessary, per ton Surcharges/fees for sludge, Jump sum Roll.offbin mobilization during backup sludge haullng service: Onsite full·time truck and driver to move empty and full bins in and ont of the incinerator building during backup sludge hauling service: l.l 0 PRICES AND ANNUAL INCREASES A. Standard bid of ash shall include all fees, taxes, and surcharges: I. Disposal cost i. $361 ton UNIT PRICE $36.00 $1,200.00 i $45.00 I $12.50 $19.98 $3.00 $500.00 UNIT PRICE $57.75 $780.00 . $30.00 $12.50 $0.00 $8.25 . $660.00 $98.50 Rev. December 1.2009 \\CC·TERRA\janwI\PURCHDOC\SAP Bids and Proposals\RFQ\RFQ13.5247 Transportation and Disposal of Ash and SludS,IOJntrael CI0135247YEOLIA -FINAL 031210.<10<: CITY OF PALO ALTO CONTRACT NO. C10135247' 2. Transportation cost is $1200 I load 3. Liner installation in $45 I load 4. Bin rental is $12.50 / day (Note: no overlapping charge shall be applied on the day of bin exchange.] 5. California Non-RCRA taxes, $19.98 per ron based on the most current California BOE schedule 6. Local taxes, as necessary, $3 I ton, based on the most current King's County tax rate 7. Sutcbarges, $500 initial bin drop fee ( one-time fee) B. Standard bid of sludge sball include all fees, taxes, and surcharges: 1. Disposal cost is $57.75 / ton 2. Transportation cost is $780/ load 3. Liner installation is $30 / load 4. Bin rental is $12.50/ day for each bin (as necessary during mobilization) 5. Local taxes, as necessary, is $0 per ton 6. Sutcharges are $8.25 environmental fee per load 7. RoIl-oIrhin mobilization during backup sludge hauling service, $660 / bin 8. Onsite truck and truck driver to move and empty full bins in and out oftbe incinerator building during backnpsludge haudling service, $98.50/ hour c. ADDmONAL PRICING CONDmONS i. Demurrage will not be charged for pickup of waste up to and including 90 mirmtes of loading aud unloading time. After 90 minutes, the demurrage charge of $95/hour will apply if the city causes the delay. H. Demurrage will not be cberged for delays caused by the hauler not having proper paperwork at the time of arrival at the plant site. iii. Unloading demurrage will not be charged for wastes being delivered unless the City of Palo Alto creates a condition such as an improperly identified waste or nonconforming waste. iv. A minimum volume of 10 tons (or yards, whicheveris greater) will be hilled for all waste received in a rolloff container, inteemodal, or dump trailer delivered ro hauler's waste disposal facility. v. Haulers' owned or leased roll-off containers or other equipment that are damaged by City ofP.lo Alto may be repaired by contractor and invoice City at a quoted hourly rate for labor aud parts invoiced at no more than eost plus 30%. vi. Roll-oIrwashout charges ate to be inclUded in the pricing. vii. IU the event slUdge can be hauled to East Bay Municipal Utilities District, the pricing for emergency sludge disposal shall be cost plus 10%. Por the base contract, the prices in Section B above shall apply. viii. In case of price increase due to new regulatory fees, waste hauler must notify the City of Palo Alto in writing before any additional rees will be allowed. D. ANNUAL INCREASES i. The price increase for the second and third 12-month periods nf this contract is to be determined in the Base Bid Schedules. ii. The price inerease for the first optional 12 month extension of this contract is to be 5%, which shall apply to Bid line items A.l, 2, 3, and 4 and B.I, 2, 3, and 4 only. iii. The price increase for the second optional 12 month extension of this contract is to be 5%, which shall apply to Bid line iterns A.I, 2, 3, and 4 aud B.I, 2, 3, and 4 only. In the case of a price increase due ro new regulatory fees, the contractor must notify the City of Palo Alto in writiag before any additional fees will be allowed. 2 Rev, December 1.2009 \\cC·TI!RllA~alTe.JIPURCHDOC\SAP Bids and ProposaJsIRFQIRPQ135247 Transportation and Disposal of Asb and SJudgelCo_et Cl 0135247 VEQUA -FINAL Ol1210.doc ! CITY OF PALO ALTO CONTRACT NO. CI0135247 EXHIBlTD INSURANCE REQUIREMENTS CONTRACTORS TO TIlE CITY OF PALO ALTO (CITY), AT TIlEJR SOLE EXPENSE, SHALL FOR THE TERM OF TIlE CONTRACT OBTAlN AND MAlNTAlN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELeW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A-:VU, OR HIGHER, LICENSED OR AUTHORlZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. A WARD is CONTlNGENTON COMPLIANCE WITII CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW' MINIMUM LIMITS I REQUIRED TYPB OF COVFJ\AGE REQUIREMENT EACH OCCURRENCE AGGREGATE • Yl'S Yl'S Yl'S YES ! I ; NO YES ·WORKllR'S COMPENSATION STATUTORY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $I,ODo,ooo GENERAL LlABILITY, INCLUDING PERSONAL INJURY, BROAD FORM 'PROPERTY DAMAGB $\,000,000 $\,000,000 PROPERTY DAMAGE BLANKET CONTRAClUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1.000,000 , $\,000,000 LIABILITY DAMAGE COMBlNED, i i BODILY INJURY I $\,000,000 $\,000,000 . EACH PERSON $1,000,000 $\,000,000 AUTOMOBILE LlABILITY, -EACH OCCURRENCE $\,000,000 $1,000,000 I INCLUDING ALL OWNED, U1RED, ; PROPERTY DAMAOE $1,000,000 $1,000,000 : NON-OWNED $1,000,000 I BODILY INJURY AND PROPERTY $1,000,000 DAMAGll.COMBlNllD PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1000,000 TIl1l CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, 'WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS OFFICERS AGENTS, AND EMPLOYEES. I, INSURANCE COVERAGE MUST INCLUDE: A. A PROVISION FOR A WRl'ITEN mRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF S5>~O~ REQUIRE CITY'S PRIOR APPROV AL. II. CONT AC1'OR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. Ill. ENDORSEMENT PROVISIONS, WIlli RESPECT TO TIlE INSURANCE AFFORDED TO "ADOmONAL INSUREDS" I Rev. December 1,2009 \\CC-TERRA \jarreol\PURCHDOC\!',AP Bids and Proposals\R.FQ\RFQ135241 Transportation and Disposal of Ash and SJuds<\Contract CIOl35247 VEOLIA • F1NAL0312!0,do<: CITY OF PALO ALTO CONTRACT NO, CI0135247 A PRlMARY COVERAGE WlTII RESPECT TO CLAIMS ARlSmG OUT OF TIlE OPERATIONS OF TIlE NAMED mSURED, mSURANCE AS AFFORDED BY THIS POLlCY IS PRlMARY AND IS NOT ADDITlONAL TO OR CONTRIBUTmG WlTII ANY OTHER mSURANCE CARRlBD BY OR FOR TIlE BENEFIT OF THE ADDITIONAL mSUREDS. B. CROSS LIABILlTY TIlE NAMmG OF MORE TIlAN ONE PERSON, FIRM, OR CORPORATION AS mSUREDS UNDER TIlE POLlCY SHALL NOT, FOR THAT REASON ALONE, EXTlNOUlSH ANY RIGHTS OF THE INSURED AGAmST ANOTHER, BUT THIS ENDORSEMENT, AND TIlE NAMING OF MULTIPLE mSUREDS, SHAlL NOT mCREASE TIlE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLlCY. C, NOTICE OF CANCELLATION l. IF THE POLlCY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER UlAN THE NON·PAYMENT OF PREMIUM, TIlE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITIEN NOTICE BEFORE'THE EFFECTIVE DATE OF CANCELLATION, 2, IF TIlE POLlCY IS CANCELED BEFORE ITS EXPIRATION DATE FOR TIlE NON· PAYMENT OF PREMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITIEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. NOTICES SIIALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALOALTO,CA 94303 2 Rev. December l, 2009 \ICC·TERRA~arreol\PURCHDOCISAP Bids ond.Proposal,IRFQIRFQI35;l47 Tnmsportation and Disp",.1 of Ash and Sludg.IContrect ClO135247 VEOLlA • FINAL 031210.<10. " '. Attachment B -City of Palo Alto -Department of Public Works: Bid Summary . Transportation and Disposal of Ash: RFQ No. 135247 Bid Project Manager's Clean Harbors Environmental Veolia ES Technical Solutions, Item Description Estimate Services LLC Bid Schedule A -Incinerator Ash Disposal A-1 Disp()!;al Cost $64,998.13 $37,389.00 $29,700.00 A-2 Transportation Cost $70,231.75 $68,289.00 $62,400.00 A-3 Liner Installation Fee $3,804.22 $2,678.00 $2,340.00 A-4 Bin Rental $4,862.20 $3,759.50 $4,562.50 A-5 Local taxes $6,499.81 $3,630.00 $16,483.50 A-6 State Taxes $1.5,452.25 $16,483.50 $2,475.00 A-7 SurcharQes/Fees $18,243.32 $0.00 $500.00 Bid Schedule A -Subtotal $184,091.68 $132,229.00 $118,461.00 Bid Schedule B -Emergency Sludge Disposal B-1 Disposal Cost $5,120.00 $9,152.00 $7,392.00 B-2 Transportation Cost $4,800.00 $6,960.00 $9,360.00 B-3 Liner I nstallation Fee $878.00 $600.00 $360.00 B-4 Bin Rental $160.00 $120.00 $::~~~-~~~~~ B-5 Local taxes $512.00 $179.20 B-6 Surcharges/Fees $0.00 $0.00 ~~~~ Roll-off Bin 8-7 Mobilization $4,200.00 $750.00 $3,960.00 8-8 Truck and driver $4,800.00 $4,080.00 $4,728.00 Bid Schedule 8 -Subtotal $20,470.00 $21,841.20 $26,049.00 Total of Bid Schedules A & B $204,561.68 150,804.70 $144,510.00 26.3% below project manager's 29.4% below project manager's estimate estimate Note: A "no bid" was received from Synagro West, LLC 3111/2010 s ~ ~ ,.., = '.