Okaloosa County BOCC — November 16, 2013 — Action Item Printout — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: September 3, 2013 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: R & E Farms - Contract Extension for Biosolids Removal DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: OCWS staff requests BCC approval of a 6-month contract extension (County Contract C09-1691-WS) with R & E Farms LLC for biosolids removal. BACKGROUND: OCWS has contracts with both R & E Farms and Crook Creek Farms for biosolids removal. Both contracts have the same prices - $5.50/cubic yard (CY) for disposal only and $15.50/CY for transportation and disposal. Currently, OCWS transports our Biosolids from the Bob Sikes WRF and the Russell Stephenson WRF to the digester at the Arbennie Pritchett WRF. The Biosolids from all three WRFs then goes through the rotary drum thickener into the Digester and finally dewatered with the centrifuge. The solids come out of the centrifuge as Class B Biosolids. OCWS has the equipment and staff, and we have been hauling to either Crook Creek Farms or R & E Farms, almost daily, for approximately 4 years. The biosolids contractor land applies the biosolids at one of their sites. The current price we pay is $5.50/CY, and we have $60,000 in the FY2014 budget, if approved. The Crook Creek Farms contract was approved by the BCC 12/8/2012, as a backup facility, in case R & E Farms was out of compliance with FDEP; although, we have not hauled biosolids to Crook Creek Farms in years. Because both contracts expire 9/30/2013, Purchasing and Water & Sewer went out to bid for this biosolids removal service as Bid # WS 42-13. Bids were received on 8/8/2013; the bid tabulation is attached. New FDEP biosolids regulations have resulted in higher prices than expected, and we would not be able to meet our biosolids budget for FY2014. The apparent low bidder is $6.95/CY for disposal only; unfortunately, this site is northeast of Dothan, Alabama - a 160-mile round trip. Even though their cost is not too far above the current price of $5.50/CY, it would result in significant staff and equipment time and possibly alter the WRF facilities operations for compliance compared to the current situation, where we transport within Florida. The second-to-lowest bidder is R & E Farms, whose price for disposal only is $13.60/CY. No matter how we do the math, OCWS will significantly exceed our FY2014 biosolids removal budget, because of FDEP's unfunded mandate. Therefore, OCWS proposes the following two actions. First, R & E Farms has agreed to a 6- month contract extension (through 3/31/2013) at their current prices, terms, and conditions. The contract extension form is attached. This would result in a cost savings to OCWS compared to the current bid. This extension should allow us to stay within budget for the first six months of FY2014. Second, OCWS staff would like to work with Purchasing to re-write some of the specifications and go out to bid again. We have talked w/ FDEP, and by doing some further permit revisions and paperwork, our Class B Biosolids can be hauled across state lines to Alabama. By allowing land application sites in Alabama, this should open up competition and eliminate the issue of FDEP's unfunded biosolids regulations. At least one of our current biosolids contractors (R & E) has facilities in Alabama that are much closer than Dothan. After receiving bids, OCWS would do a financial analysis of all the scenarios - with or without transportation and in or out of Florida (taking into account the mileage). In summary, during the 6-month R & E Farms contract extension, staff would revise the specs, go through the bidding process again, do the financial analysis, and sign a new biosolids removal contract to begin 4/1/2014. OPTIONS: Approve or deny. RECOMMENDATIONS: Staff recommends BCC approval for the Chairman to execute the Contract/Lease Renewal Form for a 6-month contract extension with R & E Farms for biosolids removal. If approved, staff would also re-bid this service. RECOMMENDED BY: APPROVED BY: Ernie Padgett, County Administrator