HomeMy WebLinkAboutAMENDMENT NO 1 OMI
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AMENDMENT NO. 1
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TO THE
AGREEMENT FOR OPERATIONS,
MAINTENANCE AND MANAGEMENT SERVICES
FOR
AUGUSTA, GEORGIA
This(A11ENDME1'IT No.1 to the Agreement dated July 20, 1999 is made and entered into this
7 ;'':S' day of /(.G..:..; , 2000, between August~ Georgia, a political subdivision
of the State of GeorgjL whose address for any formal notice is 530 Greene Street, Room 801,
August~ Georgia 30911, Attention: City Administrator (hereinafter "Owner"), and Operations
Management International, Inc. (hereinafter "OMI"), with offices at 6060 South Willow Drive,
Suite20u, Greenwood Village, Colorado 80111-3333, whose address for any formal notice is Post
Office Box 6607, Englewood, Colorado 80155-6607.
NOW, THEREFORE, Owner and OMI agree to amend the Agreement as follows:
1. Article 2.9 is hereby deleted in its entirety and replaced with the following Article 2.9:
2.9 Effective July 1, 2000, provide for the disposal of sludges and biosolids to
disposal sites consistent with industry-accepted management practices. OW will
maintain adequate records regarding disposal of residuals and make reasonable
efforts to minimi7.e associated cost. Any permits for sludge disposal shall remain in
the name of Augusta.
2.9.1 Industry accepted management practices shall include, but shall not be
limited to, the following:
2.9.1.1 General. OMI shall be responsible for removing sludges and
biosolids from the James B. Messerly WPCP for transporting said
sludges and biosolids to destination points at approved sites, and
for applying the biosolids to Approved sites in an approved
manner. OMI shall be responsible for acquiring, operating, and
maintaining all equipment, and for providing sufficient, trw.ned
personnel required for its operations described herein.
2.9.1.2 Utilization at Approved Sites. OMI shall:
2.9.1.2.1 Arrange for utilization of all of the biosolids on
approved sites. 0111 acknowledges that Augusta
currently has contracts in place for the utilization of
biosolids on certain sites within Richmond County,
Burke County, and Jefferson County, Georgia, which
sites shall be Approved sites. OMI agrees to continue
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the utilization disposal of biosolids on said sites, and
to comply with all terms and conditions contained in
those existing contracts. Owner and 0111 may open
new sites with the mutual consept of the parties, which
sites will then become Approved sites. In such
instance, OMI and Owner shall collaborate in
negotiating contracts acceptable to Augusta for the
. utilization of biosolids on the site, for executing any
and all contacts required for use of any approved site
and in advance of utilization, obtain all permits;
provided, however, that any such permits shall be in
the name of Augusta, Georgia. Augusta may, in its
sole discretion, direct OMI to develop and use a
particular site as an Approved. site, pending necessary .
regulatory and/or landowner approval. Any such
directive shall comply with all Environmental Laws
and all other applicable laws. Such agreements shall
be between Augusta and the site owners.
2.9.1.2.2 Obtain, when contracting for the use of any approved
site, the long-term, continued right of ingress . and
egress by Augusta for the purpose of testing and
monitoring each approved site to review compliance
by OMI with all federal, state, and local
Environmental Laws.
2.9.1.2.3 Not place, hold, locate, release or dispose of, or knowingly permit
others to place, hold, locate, release, or dispose of, any hazardous
substance, hazardous waste, or other toxic substance on, under or at
any Approved site.
2.9.2 Utilization of Biosolids. aMI shall dispose of and utilize the biosolids in
accordance with the Rules of the Georgia Environmental Protection
Division. Chapter 391-3-4, all Federal Statutes, rules, and regulations,
including without limitation 40CFR Part 503, and all applicable State and
local statutes, rules and regulations.
2.9.3 Equipment and Vehicles. OW shall be responsible for providing all
equipment and vehicles necessary to remove, transport, and utilize the
biosolids without unreasonable interruption of operation due, for example,
to breakdown or in operation of such equipment and vehicles. aMI will
maintain all of its equipment and vehicles, including any which are leased
by 0111, in good working order and clean, free from a buildup of mud, dirt,
rock, gravel and other sediment. OMI shall take every precaution
reasonably necessary to prevent its equipment and vehicles from depositing
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Biosolids, mud, dirt, rock, gravel or other sediment on public roadways or
rights-of-way.
2.9.3.1 OMI further acknowledges and agrees that it is responsible for
procuring any and all licenses and permits, and making all filings
with the State of George and/or other applicable regulatory
authorities, necessary in connection with operation of the
vehicles.
2.9.4 Liming Program. OMI shall operate a liming program in conjunction with
the biosolids services to be performed hereunder, as follows:
2.9.4.l aMI shall be responsible for taking annual soil samples of
approved sites, and applying lime to said sites in accordance with
the results/recommendations of the s(\il samples.
2.9.4.2 aMI shall not apply, nor invoice Augusta for more lime than is
indicated by the soil samples.
2.9.4.3 OMI agrees that it will avoid liming of any approved sites as to
which past liming practices have been poor with the intent of this
subsection that Augusta not be required to pay for reclamation
liming of such sites, but be required to apply only for liming
which is part of a soil pH maintenance program.
2.9.5 Federal Permit Requirements. OMI shall abide by all federal rules and
regulations governing the land application of wastewater and water
residuals. This includes the self-implementing provision of 40 CFR
Part 503. OMI shall abide by all federal monitoring and reporting
requirements applicable to land appliers. This includes preparation of an
annual report to Augusta meeting the monitoring and reporting
requirements of 40 CFR Part 503 that are applicable to land application,
for submittal by Augusta to Region IV of the EP A.
2.9.6 State Land Application Permit Requirements. aMI shall abide by all
requirements and conditions of the State of Georgia Environmental
Protection Division Permit No. GA0020087 that are applicable to the land
applier for the continued operation of Augusta's wastewater residual land
application program. This includes preparation of an annual report to
Augusta meeting the monitoring and reporting requirements of State
Regulations to land application for submittal by Augusta.
2;9.7 Local Requirements and Issues. OMI shall comply with the following local
requirements:
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2.9.7.1 OMI shall endeavor to maintain excellent working relationships
with the landowners. Periodic work shops shall be held to inform
the landowners of the current status of the program and of any
changes.
2.9.7.2 OW shall maintain equipment in a condition that is reasonably
acceptable to maintain a positive image for Augusta.
2.9.7.3 OMI shall develop a spill protection plan for transport and land
application sites and submit the plan for approval. prior to
beginning operations.
2.9.7.4 0111 shall inspect 011l's residuals storage, transport, and
application facilities to prevent malfunctions and deterioration,
operator errors and wastewater residua! discharges which may
cause or lead or the release of wastes to the environment, a threat
to human health, or a nuisance. 0111 shall maintain an inspection
log or summary including at least the date and time of the
inspection, observations made, and any maintenance, repairs, or
corrective actions taken by 0111.
2.9.8 If any part of the work under this Agreement is sublet or if any
independent contractor is hired to perform any part of the work under this
Agreement, the Subcontractor and/or independent contractor shall be
required to meet all insurance requirements set forth in Exhibit G to the
Agreement dated July 20, 1999, and the _provision for Automobile
Liability Insurance hereinafter set forth. However, this will in no way
relieve OMI from meeting all insurance requirements or otherwise being
responsible for the subcontractor and/or independent contractor.
2.9.8.1 Automobile Liability. For each vehicle (whether owned, non-
owned or hired) utilized by q11l or any independent contractor
or subcontractor working with OMI in the performance of this
Agreement, automobile liability insurance. must be carried as
follows: bodily injury and property damage liability covering all
owned, non-owned and hired automobiles for limits of not less
than One Million Dollars ($l,OOO,OOO) bodily injury each person,
each accident and One Million Dollars ($l~OOO,OOO) combined
single limit bodily injury and property~ge.
2. . 2.10 is hereby deleted in its entirety effective upon substantial completion of the
1IDProvements provided for in Article 2.56 hereof.
3. 'Articl~:2.40is.hereby deleted in its entirety and replaced with the following Article 2.40:
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2.40 Owner-Directed Capital Improvements. This agreement includes an allowance of
Seven Hundred Thousand Dollars ($700,000.00) for the initial term and Five
Hundred Thousand Dollars ($500,000) per year thereafter to allow OMI to
perform major corrective repair, replacement, rehabilitation, and/or construction of
facilities and equipment associated directly with or peripheral to the Owner's
wastewater conveyance and treatment facilities. Owner has the sole authority to
identify specific projects and issue a formal request in writing for OM! to perform
said Owner-Directed Capital Improvements. OM! has the sole right to accept or
reject project, based primarily on whether OM! has the expertise and resources.
available to perform said project. 011l's compensation for Owner-Directed Capital
Improvements, is direct cost plus a fee offive percent (5%), in lieu of the ten and
one-half percent (10.5%) adminimative fee set forth in Article 4.8. On-site labor
already covered under this contract shall not be billed against the Owner-Directed
_ "Capital Improvements account.
4. Add Article 2.55:
2.55 0111 agrees to provide interim dewatering during the digester rehabilitation in
order for residuals of the digesters to be disposed of in a landfill. It is anticipated
that OW's monthly cost to perform this service is as follows:
Equipment Rental
Landfilling
Fee
$15,000
$56,000
$10,750
OW's one-time mobilization and demobilization cost is estimated at $8,000.
In addition, there will be some "reduction in the sludge disposal cost. Therefore,
there mayor may not be any overall increased cost to Augusta." In the event this
additional service causes a budget overage parties agree it shall not effect 011l's
management fee and Augusta will pay such additional cost.
5. Add Article 2.56:
2.56 Design and construct, on existing grounds and/or in existing buildings,
improvements at the James B. Messerly Water Pollution Control Plant (WPCP)
capable of thickening sludge, dewatering sludge and transporting the sludge
between these processes consistent with OW's Residual Management Alternative
proposal dated Aprill8, 2000 attached and included herein.
6. Add Article 2.56.l:
2.56.1 aMI shall purchase the instrumentation and control, gravity belt thickeners
and belt filter presses; provided, however, OW shall submit to Augusta not
less than three quotes from recognized vendors for such equipment.
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7. Add Article 2.56.2:
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2.56.2 Design, purchase, installation, start up of equipment and construction will
be performed with a not to exceed cost of Three Million, Three Hundred
Thousand Dollars ($3,300,000).
8. Add Article 2.56.3:
2.56.3 Construction will be completed within six months of notice to proceed.
9. Add Article 4.10:
4.l0 Compensation to 0111 for the transport and land application ofbiosolids shall be
included in the base fee for services in this Agreement, and not invoiced separately.
10. Add Article 4.12
4.12 Compensation for the Instrumentation and Equipment purchases and Design Build
services included in Article 2.56 shall be invoiced to the City of Augusta as
follows: a) Instrumentation and Equipment - Owner will pay for these costs
directly as incurred, b) Design Build Services - 0111 shall invoice the Owner for
payment requests received from CH2M :mLL as outlined in the proposal by
CH2M IDLL. CH2M IDLLwill submit invoices to OMI each month covering
Work completed to date and materials and equipment delivered and stored on-site
or off-site. Compensation for these services shall not" be included in the Base Fee
of this Agreement. Payment for these services shall be in accordance with Article
5.2 of this Agreement.
ll. Appendix A is modified to include the following definitions:
A12 Substantial Completion of the Work, or ofa designated portion, occurs on the date
when construction is sufficiently complete in accordance with the Contract
Documents so that Owner can occupy or utilize the Project, or a designated
portion, for the use for which it is intended.
A.13 A Change Order is a written order to OMI signed by Owner, issued after the
execution of the Agreement, authorizing a Change in the Work or an adjustment in
the Contract Price or Contract Time. A Change Order signed by OW shall be
considered an amendment to the Agreement.
A.14 Liens are mechanics' and materialmen's liens, security interests or encumbrances
on real or personal property.
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l2. Appendix C, Item CA is modified to include:
Solids Disposal
lB. Messerly WPCP
18 dry tons per day
All other tenns and conditions remain in effect in accordance with the original Agreement.
Both parties indicate their approval of this Agreement by their sigi:latures below.
Authorized Signature:
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E. Forrest Forbes ~
Vice President
OPERATIONS MANAGEMENT
INTERNATIONAL, INC.
Date:
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ATTEST:
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AUGUSTA, GEORGIA
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OMI
Residuals Management Alternative
Prepared for
Augusta-Richmond County
April 18, 2000
I. Introduction and Background
The purpose of this memorandum is to perform technical and economic comparisons of Augusta's current
liquid-based residuals management program versus a proposed dewatered residuals management program.
Several years ago, Augusta adopted land application of wastewater residuals as a cost-effective,
environmentally sensitive mechanism for ultimate disposal of the solids generated within the lB. Messerly
wastewater treatment plant (WWTP). The residuals are applied to agricultural land in Richmond, Burke,
and Jefferson Counties at a rate that is equal to or less than the agronomic nitrogen uptake rate, based on
the crops being grown. All aspects of this program are governed by 40 CFR 503, as administered by
Georgia EPD and U.S. EPA. All of Augusta's current liquid sludge application practices, documentation,
and reporting are consistent with these requirements. The proposed dewatered residuals manage.llent
approach will continue to be consistent with these regulations.
The major point of concern with the existing program is the sheer volume of liquid sludge that must be
transported from the J.B. Messerly WWTP to the land application sites, some of which are located more
than 50 miles away. During peak periods, more than fifty 6500-gallon tankers have been loaded in a single
day. Due to the costs of transporting and handling this quantity of material, it may be advantageous for
Augusta to consider technologies that dramatically increase the residuals' solids concentration. Although
.~ this would not reduce the number of acres necessary for annual land application requirements, it could
reduce hauling costs by 70 to 80%. However, these sludge hauling savings cannot be realized without
installing new sludge dewatering equipment
The purpose of this memorandum is to document all assumptions, design basis, and capital and O&M costs,
thereby allowing an order-of-magnitude economic analysis to be performed. In addition, non-economic
factors were considered.
II. Description of Existing Conditions
Augusta's current program utilizes a liquid-based land application program. A general description of the
sludge treatment process is summarized as follows.
Sludge is generated at two places within the treatment facility. After raw wastewater is screened for
removal of large debris, the wastewater enters a primary clarification process, which removes readily
settleable material prior to biological treatment. The settled material, called primary sludge, is pumped to
one of two primary anaerobic digesters at approximately 3-percent solids. The liquid effluent from primary
treatment flows into aeration basins where a biological culture consumes organics and pollutants, yielding
new biological growth. This excess biological growth is removed daily as waste-activated sludge. It is
pumped at ~ concentration of approximately 1% to a single gravity belt thickener, which increases the
waste-activated sludge concentration to approximately 5%. The thickened waste-activated sludge is then
pumped to one of two primary digesters for stabilization. After centrifuge thickening, the digested primary
sludge is blended with the waste-activated sludge in a secondary digester. The secondary digester also
serves to thicken the sludge, thereby minimizing the total volume to be land applied. Liquid biosolids are
transferred into contractor-provided tankers and hauled to the land application sites. Table 1 shows the
quantities and estimated O&M costs associated with the current program.
1999
August
September
October
November
Decem ber
Average
Volume
(MG/month)
4.260
3.419
4.485
3.789
5.414
4.273
Table 1. Liquid Hauling Program
Total Solids Concentration
(Ibs/month) %TS
1,314,551 3.70
1,092,104 3.83
1,376,500 3.68
998,568 3.16
1,566,801 3.47
3.57
Tanker
loads/day
28
28
25
28
33
29
Improvements to Existing Equipment
The existing gravity belt thickener, used to thicken waste-activated sludge, has been installed outdoors and
is exposed to the environment. It is marginally sized and essentially requires a mechanical "overhaul" to
repair or replace rollers, bearings, and instrumentation. It is a bottleneck in the entire system and since there
is no recilmdancy, it jeopardizes the entire facility's treatment reliability. Therefore, in any scenario
contemplated, two new gravity belt thickeners must be incorporated to bring the waste-activated sludge;
thickening process up to some reasonable standard of reliability.
An ongoing project is currently degritting and retrofitting the heating and mixing equipment within four of
the primary anaerobic digesters. For purposes of this evaluation, it is assumed that the digester
rehabilitation will be completed within this year. In addition, the existing primary sludge centrifuges
require major repair efforts. Improvements and repairs common to both liquid and dewatered application
efforts are shown in Table 2.
Table 2. Improvements and Repairs to Augusta's Sludge Treatment Process
Re uired for Both Liquid and Dewatered Land A lication 0 tions
. $ 180,000
. $ 90,000
. $ 12,000
. $ 275,000
. $ 50,000
. $ 75,000
. $ 50,000
. $ 100,000
$ 832,000
Current Sludge Production
In 1999, approximately 5,426 dry tons ofbiosolids were land applied at an average concentration of 2.34%,
which equates to 56,348,000 gallons. This is approximately 15 dry tons per day, which is congruent with
data compiled by JJ&G (City of Augusta Solids Management Plan, June 1993). However, the tonnage is
significantly less than OMI's own first-hand experience derived from 5 months of onsite operation, from
August to December 1999. Based on OMI's experience, the WWTP currently generates approximately 20.9
dry tons of residuals each day. It should also be noted that a major process issue, which plagued the WWTP
prior to OMI's contract, was an ongoing backlog of solids. All indications are that solids removal did not
keep pace with solids production. Therefore, for the purposes of this comparison, it is assumed that OMI's
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data are the most recent and most reliable. Thus, the J.B. Messerly WWTP will generate approximate 20.9
dry tons/day of residuals, at a minimum.
As a result of proces~ improvements and OMI's optimization program, OMI has been successful in
increasing the liquid-haul sludge concentration from 2..34% to 3.57%. The increased concentration
represents a 65% reduction in the overall liquid volume to be hauled and land applied. However, current
production levels dictate a range of 25 to nearly 50 sludge tanker loads per day. The cost estimate is based
upon Synagro's reported average of 29 tankers per day (on a 5-day-per-week operational schedule) since
August 1999 when OMI assumed facility operations responsibility.
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It should be noted that sludge production is directly related to plant influent loading, and plant loading is
anticipated to increase at some nominal rate over the next few years. It is beyond the scope of this
evaluation to estimate future flows and loads. However, as flows increase; a dewatered land application
program becomes even more attractive. For conservatism, it is assumed for purposes of this evaluation that
at worst case flows and loads will not decrease.
Liquid Application O&M Costs
Based. on the current agreement with Synagro, O&M costs for the program are estimated at approximately
$1.6 million/year. The program requires an approximate la-person staff: including a program manager,
eight truck drivers, and one driver/spreader. Although we have estimated approximately 29 loads per day,
our experience is that at times over 50 loads per day are required to keep up with sludge production. The
O&M estimate includes leasing costs for all equipment, including tankers, tractors, and sludge spreading
equipment However, liquid hauling is sensitive to fuel costs, which may result in a sizable increase in
future program costs if fuel costs continue to escalate.
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25 - 50
Aside from. the recommended improvements described in Table 2, there are no additional capital costs
required for this effort.
Most of the primary constraints and concerns associated with liquid land application is the sheer volume of
material to be handled, much of which is water. Due to the volume and the number of daily tanker-trips
required, liquid hauling is a very labor- and equipment. intensive effort. Potential for safety incidents,
accidents, and public relations issues are also high due to the tanker traffic. Costs go up quickly as haul
distances increase. There are few, if any, other short-term options for storage or disposal if land is not
available (i.e., if landfilling is not an option).
III. Description of Proposed Dewatering Program
In recognition of the costs of hauling millions of gallons of water from the J.B.Messerly WWTP to the
land application sites, conversion to a sludge dewatering process merits consideration. Similar to the liquid
hauling scenario, two new gravity belt thickeners would be used to reliably increase waste-activated. sludge
solids from less than 1.0% to approximately 5.0-6.0% concentration. Thickened waste-activated sludge
would be blended with primary sludge from the primary clarifiers at approy.imately 3% far co-digestion in
one of four anaerobic digesters that are currently being upgraded. To facilitate. stabilization, these digesters
would be completely heated and mixed. Stabilized sludge is conveyed ta a holding tank (secondary
digester). Instead of being hauled as liquid to the land application sites, the stabilized sludge will be
pumped to one of two new 3.0-meter belt filter presses. The dewatered sludge would be discharged via a
conveyor system into the bed of a dump truck or similar container at a concentration of approximately 25%
solids. The sludge dewatering scenario represents an approximate 84% reduction in volume of sludge (as
compared to hauling liquid at 3.6%), resulting in a dramatic reduction in overall hauling and storage
requirements.
Dewatered Program O&M Costs
Labor and equipment requirements for the dewatered application program are significantly less than the
liquid program. In contrast to 29 tanker-loads per day, the dewatered sludge program would require
approximately four (4) 3D-cubic-yard dump trailer loads per day, dramatically reducing the truck traffic
around the treatment facility. Dump trailers would be delivered to. a staging area at a specific land
application site. One person would operate both the onsite spreader vehicle and a four-wheel-drive
articulating loader to load the dewatered cake into the spreader vehicle. It is anticipated that OMI would
need a minimum of four dump trailers, one spreader vehicle, one articulating four-wheel-drive loader, and
two tractor-trailer trucks. Labor requirements include four people total: one full-time manager, one
. 10ader/5IJI:eader operator, and two truck drivers.
. Capital Costs
In addition to the capital requirements described in Table 2, the proposed dewatering program will require
two new 3.0-meter belt filter presses and associated equipment as summarized in Table 4. The belt presses
will be installed in an existing building, requiring minimal structural modifications. There will be a
significant amount of mechanical modifications, consisting of installing 11 new sludge feed/transfer pumps
and associated piping.
Table 4. Dewaterin
uirements
ui meot costs.
IV. Cost~Effective Analysis
Order-of-magnitude cost estimates were developed for continuation of the liquids program and for the
dewatered sludge alternative. Although the actual equipment life should be approximately 12 to 15 years,
capital costs were amortized at an 8% interest rate, over a 10-year lifecycle. The $832,000 capital required
to upgrade the gravity belt and centrifuge sludge thickening systems is contained in capital estimates for
both the liquid and dewatered programs. O&M costs are estimated at $1.6 million/year for the liquid
application program (may go higher due to fuel costs) and conservatively at $895,000 for the dewatered
application. It should be noted that for the purposes of this evaluation, safety factors were used to ensure
conservatism on both the dewatered capital and O&M, to represent a "worst-case" scenario in order to help
Augusta make a "go versus no-go" decision. Based on the best information available, the dewatered sludge
alternative is approximately $337,000 per year less expensive than the CUITent liquid application program
(see Table 5).
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