HomeMy WebLinkAbout92-11 RESOLUTIONRESOLUTION NO. 92-11
A RESOLUTION AUTHORIZING A CONTRACT WITH THE BEAVER
WATER DISTRICT FOR LAND APPLICATION DISPOSAL OF WATER
TREATMENT RESIDUALS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes a
contract with Beaver Water District for land application disposal of water treatment residuals.
PASSED and APPROVED this 7th day of June, 2011.
APPROVED:
B
ATTEST:
By:
Int
SONDRA E. SMITH, City Clerk/Treasurer
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David Jurgens
Submitted By
City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
07 -Jun -11
City Council Meeting Date
Agenda Items Only
Wastewater Treatment
Division
Action Required:
Utilities
Department
Approval of a contract with the Beaver Water District (BWD) which establishes pricing and conditions by which the
City of Fayetteville will receive and land apply BWD water treatment residual (WTR). Execution of the actions
covered by this agreement is contingent upon ADEQ issuing the City a permit for the same.
Cost of this request
Account Number
Project Number
Category / Project Budget
Program Category / Project Name
Wastewater Treatment
Funds Used to Date Program / Project Category Name
Water/Sewer
Remaining Balance Fund Name
Budgeted Item Budget Adjustment Attached
Finance and Internal Services Director
Date
1,0-1
Date
5.3.3-I%
Date
Date
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Da
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Received in City
Clerk's Office 05-20-1 1 P03 :46 RCV
Received in
Mayor's Office
ENTERED'
6 /g0/l1 Bim'
Comments:
Revised January 15, 2009
ttevllie
CITY COUNCIL AGENDA MEMO
MEETING DATE OF JUNE 7, 2011
THE CITY OF FAYETTEVILLE, ARKANSAS
ARKANSAS
www.accessfayetteville.org
To: Fayetteville City Council
Thru: Mayor Lioneld Jordan
Don Marr, Chief of Staff
From: David Jurgens, Utilities Director
Fayetteville Water and Sewer Comm.
Date: May 20, 2011
Subject: Beaver Water District Water Treatment Residual Disposal Contract
RECOMMENDATION
City Administration recommends approving a contract with the Beaver Water District (BWD) which establishes
pricing and conditions by which the City of Fayetteville will receive and land apply BWD water treatment residual
(WTR). Execution of the actions covered by this agreement is contingent upon ADEQ issuing the City a permit for
the same.
BACKGROUND
Beaver Water District produces water treatment residuals as a direct by-product of their treatment process. The WTR
is very rich in aluminum sulfate (alum), which binds with phosphorus and other material in the water and either
settles or is filtered out in the treatment process. Joint University of Arkansas, BWD and City testing has shown that
the WTR, when applied to land, can bind with free phosphorus in soil, with the result that the phosphorus will no
longer leach into ground water or be available to mix with storm water. BWD currently takes their WTR, with an
annual volume of around 6,100 wet tons, to the Waste Management landfill in Tontitown.
DISCUSSION
This agreement establishes the conditions and terms whereby BWD will pay Fayetteville to land apply the WTR on
the City's fields where biosolids have been previously applied. The soil in these fields has a very high phosphorus
content. The contract was approved by the BWD board May 19, 2011. Upon contract approval, staff will develop
and submit a land application permit application to ADEQ. ADEQ staff has stated strong support to the project, but
there is no guarantee of approval until a permit is actually issued. Upon permit issuance, there will be an estimated
$192,000 in equipment purchases required (tractor, spreader, and loader). Operational costs for this task are
integrated into the CH2M Hill wastewater treatment operations contract. The payback period is estimated at less than
five years.
This process produces several mutual benefits to both the City and BWD.
1. Provides a new steady, reliable revenue stream to the City, estimated at $198,250 per year.
2. Helps reduce free phosphorus in the soil, thus reducing the amount of phosphorus that can percolate into
ground water and eventually enter the White River and Beaver Lake.
3. Reduces BWD operating expenses.
BUDGET IMPACT
There is no appropriation directly associated with contract approval. There will be equipment purchases to be paid
from capital funds, and operational expenses, incorporated into the CH2M Hill wastewater operations contract.
BWD WTR Disposal CCMemo Juni l.doc
RESOLUTION NO.
A RESOLUTION AUTHORIZING A CONTRACT WITH THE BEAVER
WATER DISTRICT FOR LAND APPLICATION DISPOSAL OF WATER
TREATMENT RESIDUALS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes a
contract with Beaver Water District for land application disposal of water treatment residuals.
PASSED and APPROVED this 7th day of June, 2011.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
CONTRACT FOR WATER TREATMENT RESIDUAL DISPOSAL SERVICE
BETWEEN THE
CITY OF FAYETTEVILLE, ARKANSAS, AND THE BEAVER WATER DISTRICT
THIS CONTRACT made and entered into this day of Mi(),.
2011, by and between the City of Fayetteville, Arkansas, a municipal corporation,
(hereinafter called "Fayetteville"), whose address for any formal notice is 113 West
Mountain, Fayetteville, AR, 72701 and the Beaver Water District, a regional water
distribution district created under Arkansas Act 114 of 1957 (hereinafter called "BWD"),
whose address for any formal notice is PO Box 400, Lowell, AR 72745.
WITNESSETH:
WHEREAS, Fayetteville now owns and operates a biosolids management site
located at 16464 Wyman Road, Fayetteville, Arkansas; and,
WHEREAS Fayetteville has previously applied municipal biosolids to the property
at the biosolids management site; and,
WHEREAS, BWD produces an average of 6,100 wet tons of water treatment
residuals ("WTR") per year from the water treatment facility in Lowell, Arkansas; and,
WHEREAS, scientific studies have shown that the alum in water treatment
residuals may bind phosphorus in soil and reduce the concentration of phosphorus in
non -point source runoff; and,
WHEREAS, it is to their mutual advantage that BWD and Fayetteville enter into
an agreement to establish provisions for BWD to dispose of WTR at the Fayetteville
biosolids management site; and,
WHEREAS, in meeting this service commitment, Fayetteville must ensure that
this service does not place a financial burden on the citizens of Fayetteville, nor should
there be any additional financial burden on the BWD wholesale water customers for
disposal of these WTR for which the BWD does not receive a corresponding benefit;
and,
WHEREAS, it is to the parties' mutual benefit that a procedure be established for
setting disposal fees sufficient to cover costs incurred by Fayetteville in performing this
service;
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS
AND CONDITIONS HEREINAFTER SET FORTH, FAYETTEVILLE AND BWD
HERETO MUTUALLY AGREE AS FOLLOWS;
(1) COOPERATION: Fayetteville and BWD shall mutually cooperate, and all matters
related to this agreement shall be communicated through the Fayetteville City Council
and the BWD Board of Directors, or their authorized representatives.
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BWD WTR Disposal Agreementl1May11
(2) OWNERSHIP: It is agreed by the parties that Fayetteville shall continue to own,
operate, and maintain the biosolids management site, and that the BWD shall continue
to own, operate, and maintain the water treatment facility in Lowell, Arkansas.
(3) TERM OF CONTRACT: Fayetteville and BWD hereby agree that the initial term of
this Contract shall be for a period of five (5) years from the date of this Contract.
Thereafter, this Contract shall be automatically renewed for successive terms of one (1)
year each unless cancelled by either party not less than sixty (60) calendar days prior to
termination.
Either party may terminate this Contract for a material breach of this Contract by the
other party by giving written notice of the breach and allowing the other party a
reasonable time to correct the breach. Excepting breaches by BWD for non-payment of
Fayetteville invoices, neither party shall terminate this Agreement without giving the
other party thirty (30) calendar days' written notice of intent to terminate for failure of the
other party to correct the breach within a reasonable time.
(4) EFFECTIVE DATE: This Contract shall become effective and enforceable on the
date of this Contract.
(5) REGULATORY RESPONSIBILITIES: Fayetteville shall apply for and maintain
compliance with a permit from the Arkansas Department of Environmental Quality
(ADEQ) for land application of WTR. The site management plan shall be modified as
necessary and approved by ADEQ before commencement of disposal operations.
Fayetteville shall apply the WTR to the land as directed under the provisions of the
permit as well as the ADEQ approved site management plan. Fayetteville shall perform
and pay for all sampling and analysis of the WTR, soil, groundwater, and surface water
at the biosolids management site as required by the ADEQ permit. Copies of all
analyses shall be provided to BWD.
(6) DISPOSAL COSTS: BWD shall produce the WTR and convey them to the
Fayetteville site. BWD shall be responsible for all costs associated with producing and
conveying the WTR to the Fayetteville site and shall pay Fayetteville $32.50 per wet ton
of solids disposed of on the Fayetteville site. This is a fixed cost with the exception of
fuel price changes and regulatory changes. This cost is based on a City fuel cost of
$3.25 per gallon, which corresponds to $2.30 per wet ton of WTR. The billed price shall
include a proportional fuel cost adjustment that shall be reflected on each invoice as a
separate line item. This fuel cost adjustment may be either a debit or a credit. Should
regulatory requirements change resulting in a change in costs, the per -ton price shall be
renegotiated.
(7) BILLING AND PAYMENTS: Fayetteville shall weigh each truckload of conveyed
WTR and provide a receipt for that load to the driver of the truck. Fayetteville shall
issue a billing statement to BWD on a monthly basis with payment due on a net thirty
(30) calendar day basis. Fayetteville will provide BWD with a copy of an annual
certification of its truck scales.
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BWD WTR Disposal Agreementl1May11
(8) LIABILITY: It is stipulated that the furnishing of WTR disposal service by
Fayetteville is a governmental function and that Fayetteville does not agree to furnish
any specific amount of WTR disposal service. WTR disposal service shall not be
provided when conditions of weather, resource availability, restrictions of permit or site
management plan are unfavorable, although it is the intention of Fayetteville to provide
such disposal service at all times that these conditions are favorable. Fayetteville will
notify BWD as soon as practicable when such conditions exist that will not permit the
disposal of WTR. In those instances, BWD reserves the right to either use an alternate
disposal method (i.e., landfilling) or to store the WTR at BWD for later transport and
disposal by Fayetteville. BWD and Fayetteville commit to work together to coordinate
WTR disposal schedules. Fayetteville shall not be responsible for acts of God, acts of
war, acts of foreign or domestic terrorism, insurrections or rebellions, acts of a public
enemy, acts of any unauthorized person, firm or corporation, or acts of BWD. BWD
shall not be responsible for acts of God, acts of war, acts of foreign or domestic
terrorism, insurrections or rebellions, acts of a public enemy, acts of any unauthorized
person, firm or corporation, or acts of Fayetteville.
Neither party shall be liable for damages, delays or failure to perform its obligations,
under this Contract if such failure is due to any unforeseen circumstances beyond its
reasonable control. The party invoking this clause shall notify the other party
immediately by verbal communication and in writing of the nature and extent of the
contingency within ten (10) business days after its occurrence, and shall take
reasonable measures to mitigate any impact of an unforeseen circumstance.
Regardless of anything in this Contract to the contrary, title to, ownership of, and legal
responsibility and liability for any and all pre-existing conditions at or from the biosolids
management site shall remain with Fayetteville. Fayetteville shall release, defend,
indemnify and hold BWD harmless from any and all liability which may in any manner
be related to, arise from, or in any way be directly or indirectly caused by such pre-
existing conditions. BWD shall release, defend, indemnify and hold Fayetteville
harmless from any and all liability caused solely by WTR disposed by BWD.
(9) NOTICES: Any written notices provided for herein shall be sufficient if sent by
certified mail, return receipt requested, postage prepaid, to the respective parties, at the
addresses listed above.
(10) IMMEDIATE TERMINATION OF CONTRACT: Notwithstanding anything in this
Contract, Fayetteville reserves the right to discontinue performing the disposal of WTR
for BWD without notice and immediately terminate this Contract for any of the following
reasons:
a. If conditions of the ADEQ land application permit or approved site management
plan cannot be maintained through normal operating practices or if such
conditions impose undue financial hardship on Fayetteville;
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BWD WTR Disposal Agreement) 1 May11
b. If the constituents within the WTR change such that the WTR exceeds the
ADEQ permit limits for any regulated parameter or causes adverse impact to
the Fayetteville biosolids management site;
c. For emergencies where damage to property, equipment or life is possible or
likely to occur;
d. If ADEQ terminates the land application permit;
e. For noncompliance with the rules and regulations of the Arkansas Department
of Health (ADH), ADEQ, the U.S. Environmental Protection Agency; or
f. Pursuant to an order of any local, state, or federal agency or court having
jurisdiction over the disposal of WTR.
BWD reserves the right to terminate this Agreement immediately for any of the following
reasons:
a. If ADEQ terminates the land application permit;
b. For noncompliance with the rules and regulations of the ADH, ADEQ, or the
U.S. Environmental Protection Agency; or
c. Pursuant to an order of any local, state, or federal agency or court having
jurisdiction over the disposal of WTR.
(11) CITY AS PUBLIC UTILITY: Fayetteville shall perform all work under this Contract
as a Public Utility. Neither Fayetteville nor BWD shall be responsible for the acts or
omissions of the other entity's officers, agents, employees, contractors and
subcontractors. Nothing in the Contract shall be construed as creating a partnership or
joint venture between the City of Fayetteville and BWD.
(12) SOVEREIGN IMMUNITY: Nothing in this contract shall be construed to waive or
limit the sovereign immunity enjoyed by both entities. Any provision that could be
interpreted as a waiver or limitation of the sovereign immunity of either party is
expressly rejected and invalidated to the extent of such waiver or limitation.
(13) ARKANSAS FREEDOM OF INFORMATION ACT: City contracts and documents,
including internal documents and documents of subcontractors and sub -consultants,
prepared while performing City contractual work are subject to the Arkansas Freedom of
Information Act (FOIA). If a Freedom of Information Act request related to this Contract
is presented to the City of Fayetteville, or to BWD, the entity receiving the FOIA request
will do everything possible to provide the applicable documents in its possession in a
prompt and timely manner as prescribed in the Arkansas Freedom of Information Act
(A.C.A. §25-19-101 et seq.). Only legally authorized costs pursuant to the FOIA may be
assessed for this compliance.
(14) CHANGES, MODIFICATIONS OR AMENDMENTS: Changes, modifications, or
amendments to this Contract shall not be allowed without a formal written Contract
amendment approved by the Mayor and the City Council of Fayetteville and the Chief
Executive Officer and the Board of Directors of BWD in advance of the change.
(15) AUTHORITY: Both parties represent and warrant to the other party that the
execution and delivery and performance of this Contract has been duly authorized by
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BWD WTR Disposal Agreement11 Mayl 1
the responsible parties hereof. Both parties warrant that all required approvals have
been obtained and the executing party below has such authority to bind the other party.
(16) JURISDICTION: This Contract shall be governed by and interpreted in
accordance with the laws of the State of Arkansas.
(17) SEVERABILITY AND SURVIVAL: If any phrase, clause, sentence or paragraph of
this contract shall be declared invalid by the Judgment or decree of a court of
competent jurisdiction, such invalidity shall not affect any of the remaining sentences or
paragraphs of this Contract.
(18) ENTIRE AGREEMENT: This Contract contains all representations and the entire
understanding between the parties with respect to the subject matter of this Contract.
Any prior correspondence, memoranda, or agreements with respect to WTR disposal,
whether or not such correspondence, memoranda or agreements are in conflict with this
Contract, are intended to be replaced in total by this Contract. The parties mutually
declare there are no oral understandings or promises not contained in the Contract
which contains the complete, integrated, and final agreement between the parties.
IN WITNESS WHEREOF, the Mayor and City Clerk of the City of Fayetteville,
Arkansas, by authority of a resolution adopted by the City Council of the City of
Fayetteville, Arkansas, and the Chief Executive Officer and President of the Board of
Directors of BWD, Arkansas, by authority of a resolution adopted by the Board of
Directors of BWD, have hereunto set their hand and caused the corporation seal to be
affixed and dated this 1 day of 3 -tut __ 2011.
City of Fayetteville, Arkansas Beaver Water District
M ror . ioneld Jor
111
Sond Smith, City Clerk
David A. Short, President
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Alan Fortenberry, Chief Exeq(ative Officer
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BWD WTR Disposal Agreementl1 May11