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2014 06 23 Consent 303 Biosolids Disposal COMMISSION AGENDA     Informational Consent X ITEM303 Public Hearings Regular       June 23, 2014KSKL Regular MeetingCity ManagerDepartment         REQUEST: Utility Department Requests Approval to contract with Sweetwater Environmental, Inc. for Biosolids Disposal for 12 months       SYNOPSIS: The City's Biosolids Disposal Agreement with MaxWest was cancelled by MaxWest on June 6, 2014 with no notice. Sweetwater Environmental has provided the lowest cost sludge hauling option to us for the next 12 months until a long term solution can be implemented. CONSIDERATIONS: This agenda item is needed to provide biosolids disposal for the City's two wastewater treatment plants.  On January 25, 2010, the City Commission approved an agreement with MaxWest Environmental Systems for biosolids disposal using their waste to energy gasification system that converts biosolids into inert, mineralized residual ash.  That two year agreement was satisfactory to both parties and extended for an additional five years on March 26, 2012.   The City received email notification on June 6, 2014, that the MaxWest facility was being shut down and our agreement was cancelled effective immediately.  Subsequent conversations with the City of Sanford indicated they would not be operating the gasification system at least in the foreseeable future.    Proposals were solicited from the only two known firms in the area, Sweetwater Environmental, Inc. of Sebring and Shelley's Environmental Systems of Zellwood, who can transport liquid sludge and treat biosolids to Class AA.  Shelley's quote is  for $0.16 per Consent 303 PAGE 1 OF 2 - June 23, 2014 gallon and Sweetwater's quote is for $0.114 per gallon.  Sweetwater is the hauler that MaxWest used to transport the City's liquid sludge the last four years.  The MaxWest price was $0.08 per gallon.   The City needs to haul approximately 60,000 gallons per week for the plants to be operated efficiently.  The use of Sweetwater is meant to be an interim 12 month solution while a long term sludge disposal options are evaluated and a RPQ for procurement is developed.  Staff has been in contact with FDEP on approvals and any operating permits changes that are needed. FISCAL IMPACT: The increased cost for biosolids disposal will cost an additional $10,000 per month from the Utility Enterprise Fund.  Funds needed to cover the increase for the balance of FY 14 will be transferred from the Parkstone Well capital project which is not needed at this time. COMMUNICATION EFFORTS: This Agenda Item has been electronically forwarded to the Mayor and City Commission, City Manager, City Attorney/Staff, and is available on the City’s Website, LaserFiche, and the City’s Server. Additionally, portions of this Agenda Item are typed verbatim on the respective Meeting Agenda which has also been electronically forwarded to the individuals noted above, and which is also available on the City’s Website, LaserFiche, and the City’s Server; has been sent to applicable City Staff, Media/Press Representatives who have requested Agendas/Agenda Item information, Homeowner’s Associations/Representatives on file with the City, and all individuals who have requested such information. This information has also been posted outside City Hall, posted inside City Hall with additional copies available for the General Public, and posted at five (5) different locations around the City. Furthermore, this information is also available to any individual requestors. City Staff is always willing to discuss this Agenda Item or any Agenda Item with any interested individuals.   RECOMMENDATION: The Utility Department requests that the City Commission approve the use of Sweetwater Environmental, Inc. for the City's biosolids disposal needs through July 1, 2015 estimated at $360,000 and authorize the City Manager and City Attorney to execute any and all documents necessary.  ATTACHMENTS: 1.Sweetwater Proposal 2.Shelley's Proposal 3.Maxwest Termination Notice Consent 303 PAGE 2 OF 2 - June 23, 2014 AttachmentNo.1 4141 US Hwy 27 North Suite 8 Sebring, FL. 33870 Office: (863) 385-7458 Fax: (863) 386-0196 lsteadman@sweetwaterenvironmental.com June 13, 2014 To Whom It May Concern: Sweetwater Environmental, Inc will haul liquid sludge from City of Winter Springs East plant located at 1560 Winter Springs Blvd and West plant located at 1000 West SR 434 for a price of $.114 per gallon per 6,000 gallon load to be disposed at Environmental Ag Products plant in Ft. Meade, FL. If any questions please give me a call at 863-214-6141. Sincerely, Spence Steadman VP/General Manager AttachmentNo.2 AttachmentNo.3 Kip Lockcuff From: Jeff Snyder \[JSnyder@maxwestenergy.com\] Sent: Friday, June 06, 2014 10:16 AM To: Kip Lockcuff Cc: Jeff Snyder Kip AsafollowuptoourconversationthismorningMaxWestwillbecancelingourcontractwithWinterSpringsforthe disposalofyourBiosolidseffectiveimmediately. Ourdecisiontocancelthecontractcomesafterbeingnotifiedbyourinvestorsthattheywillnolongerbefunding MaxWesteffectiveJune13,2014.Withoutourinvestorsfinancialsupportwecannotmaintainourdailyoperations. Iappreciateyourunderstandinginthismatter. ŷğƓƉ—ƚǒ WĻŅŅ{ƓǤķĻƩ Chief Marketing Officer MaxWest Environmental Systems, Inc hŅŅźĭĻʹ4073284992|aƚĬźƌĻʹ2399611189|Cğǣʹ4073209995 9ƒğźƌʹjsynder@maxwestenergy.com 1485InternationalParkway,Suite1031 LakeMary,FL32746 Toll Free: 1-855-MaxWest www.maxwestenergy.com CƚƌƌƚǞ…ƭʹ **Effective October 1, 2013 - Please note our new office address - 1485 International Parkway, Suite 1031, Lake Mary, FL 32746** This data is general information only and shall not be used to produce documents of any kind without same being submitted to, reviewed by, and approved by MaxWest in writing. All data is subject to change. User assumes all liability relating to the use of this data and agrees to release, indemnify, and hold harmless MaxWest from any and all claims relating to said use. User is responsible to check for any viruses before use.