Water and Resource Recover Cetner Biosolids Management ProposalMasterpiece on the Mississippi
Dubuque
M- America City
1
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Water & Resource Recovery Center Biosolids Management Proposal
DATE: June 29, 2011
Water and Resource Recovery Center Manager Jonathan Brown is recommending
negotiation of a contract with Nutri -Ject Systems, Inc. for the Water and Resource
Recovery Center Biosolids Management Program.
With the Water & Resource Recovery Center facilities currently under construction a
need for a biosolids management program will be required late spring or early summer
2012. This program will involve the transportation, storage, land application and other
acceptable practices of handling anaerobic digested and dewatered biosolids at the
Water & Resource Recovery Center in an efficient and sustainable manner.
The services performed by the contractor will include:
Design, construction, and operation of a storage facility that has the capacity to
store biosolids generated at the Water & Resource Recovery Center for up to
180 days.
Sampling of biosolids and soil at approved application sites as required by the
City of Dubuque, the Iowa Department of Natural Resources (IDNR), and the
United States Environmental Protection Agency (USEPA)
Transportation of the biosolids from the Water & Resource Recovery Center to
either the storage facility, directly to the approved application sites, or another
approved facility.
Spreading and incorporating the biosolids within 24 hours as dictated by the City
of Dubuque, IDNR, and USEPA.
Obtaining the necessary permits and submitting the necessary reports to the City
of Dubuque Water & Resource Recovery Center for filing with the IDNR and
USEPA.
In addition to these requirements the City of Dubuque Water & Resource Recovery
Center and the selected contractor will work together to implement an Environmental
Management System (EMS) to provide for continuous improvement of the Biosolids
handling process and to ensure adherence with the City of Dubuque Sustainability
goals.
Several members of the RFP team visited Nutri -Ject Systems Biosolids management
project at the Waterloo, Iowa wastewater treatment facility. The operation in Waterloo is
similar to the operation proposed for Dubuque. Frank discussions were held with the
Waterloo staff and they reported that they were very pleased with Nutri - Ject's operation
and service. After visiting with the Waterloo staff, we toured the actual site where the
biosolids are stored and applied. Everyone on the team was pleased with the quality of
the operation.
The costs for biosolids management were included in operating cost projections
developed during the facility planning process and the Nutri -Ject proposal is right in line
with those projections. The ten year costs proposals for years 5 -10 are lower than those
used during planning.
It is the recommendation of the RFP team that Nutri -Ject Systems of Hudson, Iowa be
selected to manage the biosolids produced at the City of Dubuque Water & Resource
Recovery Center based on the following:
Favorable cost structure
Experience with IDNR biosolids management requirements
Strong reputation for quality service
Experience with similar operations in the State of Iowa and Midwest
Nutri -Ject has contacts with farmers in the area to beneficially use biosolids
In addition, Jonathan Brown recommends that a ten -year contract be negotiated with
Nutri -Ject at an annual estimated cost based on 10,220 tons processed per year, of
$369,690 in years 1 -5 and $289,290 in years 6 -10. The ten year contract gives the best
cost structure, the five through ten year fixed costs of a ten year contract are reduced
significantly, and if needed the contract could be terminated after five years with a
contract buyout cost of $200,000.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Michael C. Van Milligen
Cindy Steinhauser, Assistant City Manager
Jonathan R. Brown, Water and Resource Recovery Center Manager
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jonathan R. Brown, W &RRC Manager 0
SUBJECT: Water & Resource Recovery Center Biosolids Management Proposal
DATE: June 29, 2011
BACKGROUND
The services performed by the contractor will include:
Design, construction, and operation of a storage facility that has the
capacity to store biosolids generated at the W &RRC for up to 180 days.
Dubuque
Al- America City
2007
INTRODUCTION
The purpose of this memorandum is to request authorization for the City Manager to
negotiate a contract with Nutri -Ject Systems, Inc. of H udson, IA for the Water &
Resource Recovery Center (W &RRC) Biosolids Management Program.
With the W &RRC facilities currently under construction a need for a biosolids
management program will be required late spring or early summer 2012. This program
will involve the transportation, storage, land application and other acceptable practices
of handling anaerobic digested and dewatered biosolids at the W &RRC in an efficient
and sustainable manner.
Sampling of biosolids and soil at approved application sites as required by the
City of Dubuque, the Iowa Department of Natural Resources (IDNR), and the
United States Environmental Protection Agency (USEPA)
Transportation of the biosolids from the W &RRC to either the storage facility,
directly to the approved application sites, or another approved facility.
Spreading and incorporating the biosolids within 24 hours as dictated by the City
of Dubuque, IDNR, and USEPA.
Obtaining the necessary permits and submitting the necessary reports to the City
of Dubuque W &RRC for filing with the IDNR and USEPA.
In addition to these requirements the City of Dubuque W &RRC and the selected
contractor will work together to implement an Environmental Management System
(EMS) to provide for continuous improvement of the Biosolids handling process and to
ensure adherence with the City of Dubuque Sustainability goals.
DISCUSSION
A Request for Proposal (RFP) team was established to review proposals and to
recommend the selection of a Bio- Solids management firm. The following members
were selected to be included in this review process:
• Jonathan Brown, Water & Resource Recovery Center
• Bill Jungk, Assistant Water & Resource Recovery Center
• Don Vogt, Public Works Director
• Chuck Goddard, Solid Waste Agency Administrator
• Paul Schultz, Resource Manager
• Steve Sampson Brown, Project Manager
• Barry Lindahl, City Attorney
• Jenny Larson, Budget Director
• Todd Shoemaker, Environmental Engineer
• David Lyons, Smarter Sustainable Dubuque Project Manager
• Randy Wirtz, Strand Associates
• Rachel Lee, Strand Associates
The firms listed below submitted qualified proposals and these proposals were
presented to the RFP team for review.
- Nutri -Ject Systems, Inc. (Hudson, Iowa)
- Synagro Central, LLC (Baltimore, Maryland)
- Stewart Spreading, Inc. (Sheridan, Illinois)
The following gives a summary of the financial portion of the proposals:
Nutri -Ject Systems:
10 years
Contract Term 5 years 7 years years 1 -5 years 6 -10
Fixed Costs $254,400 $216,000 $170,400 $90,000
Unit Cost $21.20 $19.75 $19.50 $19.50
Per ton
Costs Based on
An estimated $216,664 $201,845 $199,290 $199,290
10,220 tons
Annual $471,064 $417,845 $369,690 $289,290
The fixed costs for years 6 -10 of a ten year contract would be reduced to $90,000 per
year which would make the annual costs in those years $289,290.
Synagro:
Fixed Costs $1,035,696 $845,496 $712,332
Unit Cost $19.00 $19.00 $19.00
Per ton
Costs Based on
An estimated $194,180 $194,180 $194,180
10,220 tons
Annual $1,229,876 $1,039,676 $906,512
Stewart Spreading:
5 years 7 years 10 years
5 years 7 years 10 years
Fixed Costs $451,092 $362,928 $299,460
Unit Cost $20.00 $20.00 $20.00
Per ton
Costs Based on
An estimated $204,400 $204,400 $204,400
10,220 tons
Annual $655,492 $567,328 $503,860
Several members of the RFP team visited Nutri -Ject Systems Biosolids management
project at the Waterloo, Iowa wastewater treatment facility. The operation in Waterloo is
similar to the operation proposed for Dubuque. Frank discussions were held with the
Waterloo staff and they reported that they were very pleased with Nutri - Ject's operation
and service. After visiting with the Waterloo staff we toured the actual site where the
biosolids are stored and applied. Everyone on the team was pleased with the quality of
the operation.
An interview with the management staff of Nutri -Ject was held June 23, 2011 to provide
those members of the RFP team, who were unable to meet with the Nutri -Ject staff in
Waterloo, an opportunity to ask questions and clarify points in the Nutri -Ject proposal.
The City of Dubuque's commitment to sustainability was discussed along with the desire
of the City to continue and search for the most beneficial use for the biosolids produced
at the W &RRC. Nutri -Ject indicated that they would be willing to partner with the City
with these goals in mind.
BUDGET IMPACT
The costs for biosolids management were included in operating cost projections
developed during the facility planning process and the Nutri -Ject proposal is right in line
with those projections. The ten year costs proposals for years 6 -10 are lower than those
used during planning.
RECOMMENDATION
It is the recommendation of the RFP team that Nuri -Ject Systems of Hudson, Iowa be
selected to manage the biosolids produced at the City of Dubuque W &RRC based on
the following:
Favorable cost structure
Experience with IDNR biosolids management requirements
Strong reputation for quality service
Experience with similar operations in the State of Iowa and Midwest
Nutri -Ject has contacts with farmers in the area to beneficially use biosolids
In addition I would recommend that a ten year contract be negotiated with Nutri -Ject.
The ten year contract gives the best cost structure, the six through ten year fixed costs
of a ten year contract are reduced significantly, and if needed the contract could be
terminated after five years with a contract buyout cost of $200,000.
ACTION REQUESTED
I respectfully request the City Council give approval for the City Manager to negotiate a
contract with Nutri -Ject Systems, Inc. of Hudson, IA for the Water & Resource Recovery
Center (W &RRC) Biosolids Management Program.
cc: Steve Sampson Brown, Project Manager
Paul Schultz, Resource Management Coordinator
Jenny Larson, Budget Director