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ITEM 3.7 Fergus Power Pump IncI -P F Otsezo MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Utilities Utility Manager Neidermeier August 28, 2017 PRESENTER(S) REVIEWED BY: ITEM #: Consent City Administrator/Finance Director Flaherty 3.7 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/JUSTIFICATION: Approximately 900,000 gallons of generated biosolids will be applied to local approved agricultural sites this fall; 500,000 gallons will be removed from the West Facility and 400,000 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 $44,100.00. The cost per gallon is consistent with previous year's rates. Staff recommends approval as the contractor has provided satisfactory application services in prioryears. SUPPORTING DOCUMENTS ATTACHED: • 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 2017. BUDGET INFORMATION FUNDING: BUDGETED: 602-49450-419 Yes Tami Loff From: Sent: To: Subject: August 17, 2017 Mr. Kurt Neidermeier City of Otsego Jim - Fergus Power Pump <jim@ferguspowerpump.com> Thursday, August 17, 2017 3:37 PM Kurt Neidermeier Biosolids Hauling for City of Otsego R GUS OWE UMPINC, RE: Biosolids Hauling for City of Otsego Dear Mr. Neidermeier, • 24978 - 225th Street Phone (218) 736-6772 Email: fppinc@prtel.com kwlio Mamagement Fergus Falls, MN 565; 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 900,000 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 500,000 gallons to permit sites approximately 2 miles away for the west plant and will haul 400,000 gallons for the east plant and the permitted sites are approximately 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 900,000 gallons from both plants and provide a quote as follows: Page 2 Ms Kurt Neidermeier People Service Inc. West Plant Hauling, Land Application 500,000 gallons @ $0.045 / gallon $22,500.00 Fast Plant Hauling, Land Application 400,000 gallons @ $0.054 /gallon $21,600.00 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