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ITEM 3.5 Fergus Power Pump biosolids haulTY 0 tI�ce F o MINNESOTA DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Utilities Utility Manager Neidermeier August 27, 2018 PRESENTER(s) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.5 STRATEGIC VISION MEETS: I THE CITY OF OTSEGO: application for solids removal from the Otsego Wastewater Treatment Facilities. Is a strong organization that is committed to leading the community through innovative communication. X Has proactively expanded infrastructure to responsibly provide core services. No Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. Approximately 575,000 gallons of generated biosolids will be applied to local approved agricultural sites Is a social community with diverse housing, service options, and employment opportunities. Requirements of the project include injection, load documentation, spill prevention measures and Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: Staff recommends approval of Fergus Power Pump Inc. to complete the fall biosolids haul and land application for solids removal from the Otsego Wastewater Treatment Facilities. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/J USTI FICATION: Approximately 575,000 gallons of generated biosolids will be applied to local approved agricultural sites this fall; 300,000 gallons will be removed from the West Facility and 275,000 gallons from the East Facility. Requirements of the project include injection, load documentation, spill prevention measures and conducted per MPCA and EPA rules of application standards. Utility Operations Staff Type IV certified operators will identify sites, application rates and oversee the work to ensure all requirements are met. Quotes were requested from two contractors for this falls' application. Fergus Power Pump Inc. provided the only response for a total haul and application cost of $28,350.00, which is under the amount budgeted in 2018. The cost per gallon is consistent with previous year's rates. Staff recommends approval as the contractor has provided satisfactory application services in prior years. Staff reviewed the quote with the Public Works Subcommittee at the August 15 meeting, and recommended the item be placed on the Consent Agenda for full Council approval. SUPPORTING DOCUMENTS ATTACHED: 0 Quote from Fergus Power Pump Inc. POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion to approve Fergus Power Pump Inc. for hauling and land application of biosolids from the Otsego Wastewater Treatment Facilities during the fall of 2018. BUDGET INFORMATION FUNDING: BUDGETED: 602-49450-419 Yes Tami Loff From: Sent: To: Subject: August 08, 2018 Mr. Kurt Neidermeier City of Otsego Jim - Fergus Power Pump <jim@ferguspowerpump.com> Thursday, August 9, 2018 7:43 AM Kurt Neidermeier Biosolids Hauling for City of Otsego RE: Biosolids Hauling for City of Otsego Dear Mr. Neideimeier, 24978 - 225th Street Phone (218) 736-6772 Email: fppinc@prtel.com 96010 knuement Fergus Falls, MN 56537 Fax (218) 736-7115 www.ferguspowerpump.com Thank you for the opportunity to offer a proposal for hauling and land applying Biosolids from the City of Otsego Wastewater Treatment Facility. According to your email, we understand the following to be true. There are approximately a total of 600,000 gallons at 3.0 solids of Biosolids between the west and east plant, to haul and dispose of at permitted field sites for City of Otsego. Fergus Power Pump Inc. will provide quote for the hauling and injection of Biosolids. Fergus Power Pump, Inc. will haul 300,000 gallons to permit sites approximately 2 miles away for the west plant and will haul 275,000 gallons for the east plant and the permitted sites are approximately 2.0 miles and 10 miles away. Fergus Power Pump, Inc. acknowledges the requirements are in the proposal request. Fergus Power Pump, Inc. will supply all equipment necessary to remove, haul and injection of 600,000 gallons from both plants and provide a quote as follows: Page 2 Mr. Kurt Neidermeier City of Otsego West Plant Hauling, Land Application 300,000 gallons @ $0.045 / gallon $13,500.00 East Plant Hauling, Land Application 275,000 gallons @ $0.054 /gallon $14,850.00 Land Application of Biosolids will be conducted as per Minnesota Pollution Control Agency, MPCA and EPA Rules within regard to land application of Biosolids. Fergus Power Pump is a MPCA Type IV Certified Corporation. A fuel surcharge will be added should the price of fuel be over $3.50 / gallon, per invoice of usage per unit. All equipment necessary will be full of fuel at the start of the project and refueled at the end of the end of the project. Example: Surcharge = Current price of fuel $3.85 - $3.50 = $0.35 * gallons used per unit We will need to have a current analysis of the Biosolids and a copy of letter of authorization of the permitted site before land application can take place. If you have any questions or need clarifications please do not hesitate to call. Sincerely, Mitch Okerstrom President