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2009-2013 Biosolids Transportation & Application ~ ,..... " ~:' & City of Salina. Kansas Utilities Department AGREEMENT RELATED TO THE TRANSPORTATION AND LAND APPLICATION OF MUNICIPAL WASTEWATER BIOSOLlDS THIS AGREEMENT effective the 2-1f.:i!-day of ~, 2008, by and between: The City of Salina, Kansas, a municipal corporation (the "City'); and Mattison Farms. Inc. ("Contractor"). WHEREAS, the City, as the "preparer" of biosolids, owns and operates a Wastewater Treatment Plant (the "Facility") which treats municipal wastewater and generates municipal wastewater biosolids which must be used or disposed of in accordance with Environmental Protection Agency (EPA) Regulations, 40 CFR Part 503, "Standards for the Use and Disposal of Sewage Sludge"; and WHEREAS, Mattison Farms. Inc., as the biosolids "applier", operates a farming operation which can beneficially use all or a portion of the municipal wastewater biosolids generated by the City; and NOW, THEREFORE, in consideration of the services set forth herein, the parties agree as follows: (A) Contractor shall be responsible for the followina: 1. Overall Manaaement. Contractor shall provide the necessary management services relative to the local, State of Kansas Department of Health and Environment (KDHE) and federal (US-EPA, 40 CFR Part 503) regulations ("Regulations") for the removal, transportation and beneficial land application of wastewater biosolids from the City. Contractor shall abide by and observe all 40 CFR Part 503 requirements, which pertain to the "applier" of biosolids. 1 <, 2.. Acceptance of Biosolids. Contractor shall accept from the City, stabilized biosolids in liquid and cake form which meet the minimum Class B pathogen reduction and vector attraction reduction requirements of the Regulations. The biosolids are suitable for beneficial use in a land application program. 3. Biosolids Loadina and Transport. Contractor shall provide the necessary labor and equipment to efficiently and safely load biosolids into transport vehicles and to transport the biosolids from the Facility and suitable farmland application sites. The vehicles utilized for the transportation of biosolids shall not leak material to the outside. Contractor shall clean any biosolids off tires, trailer, truck and any other equipment prior to leaving the Facility and prior to leaving the application site to eliminate tracking/spillage of biosolids, etc. onto public roadways. The Contractor shall abide by all local laws, regulations and ordinances, including but not limited to, weight and speed limits on roadways and bridges. Contractor shall warrant that all drivers transporting biosolids have a valid commercial driver's licenses (CDL) unless specifically exempt from the CDL requirements. Contractor and City agree that the loading and transport of. biosolids either in liquid or solid form (cake) and application of same to agricultural sites shall be made in a timely manner based on weather, farming and cropping practices. In the event loading, transportation and application are not feasible for a period of time, the City agrees to provide a limited amount of storage of said biosolids without the necessity of its immediate disposal. 2 '. .' 4. Determination of Quantity Removed. Contractor shall provide to the City, copies of log sheets which detail the following: date of biosolids removal; gallons of liquid biosolids or tons of cake loaded on the vehicle; percentage of dry solids in liquid or cake; and field identification. 5. Land Applications .of Biosolids. Contractor shall provide labor and equipment to properly apply the biosolids uniformly to suitable application sites at agronomic rates. in accordance with all applicable Regulations. Contractor shall also not apply biosolids in the. cake form or surface apply liquid biosolids to any portion of an agricultural field that is within 200 ft. of the center of a public roadway or within 600 ft. of a residential dwelling. Subsurface injection of liquid biosolids is permitted within 300 ft. of a residential dwelling. The above buffer distances related to residential dwellings and public roadways may be reduced with the consent of the homeowner or the City. 6. Aaronomic Services. Application sites shall not be used for any other biosolids or residuals (sludges) sources without the City's approval. Sites shall meet the criteria for land application in accordance with applicable Regulations regarding the use and application of biosolids. The City shall approve all sites before commencin'g application of biosolids. . Contractor shall engage the services of a biosolids consultant, approved by the City, to evaluate the nutrient level of the biosolids in conjunction with the soil analysis to . establish the appropriate biosolids application rate to satisfy the agronomic requirements of a proposed crop. 3 '< With each submitted monthly invoice for payment, the Contractor agrees to deliver to the City a report in a form acceptable to the City which shall include, but not limited to, the acreage on which biosolids was applied; application method; biosolids form (liquid or cake); loading rates of nutrients applied to the parcels; application dates; dry tons applied per day; and documentation of compliance with the Regulations relating to site restrictions. 8. Annual Reports. Contractor shall compile all records and generate all state and federal annual reports as directed by Regulations. All reports should be in an approved format approved by the City prior to submittal. These records shall be maintained for five (5) years by the Contractor and shall be available to the City and any regulatory agency upon request. 9. Review of Operations. Contractor shall allow City to inspect any and all proposed sites used for application of biosolids and allow City to monitor daily operations with respect to the application of biosolids. The City reserves the right to cease Contractor's operation any time that Contractor's actions are in not in compliance with the Regulations pertaining to the biosolids application program until such deficiencies are corrected. 4 i 10. Emeraencv ResDonse. In the event of a spill or regulatory problem involving biosolids from the City, Contractor shall promptly notify the City. If such events are attributed to Contractor, Contractor shall provide for the prompt clean-up of any spill utilizing Contractor's equipment or shall reimburse the City for any costs of cleaning up spills, which at the City's option, are cleaned up by the City. Contractor shall conform to the following practices when addressing biosolid spills: Prevent spilled material from entering waterways; remove all leaked/spilled material from roadways; divert traffic from the leak/spill area; thoroughly clean biosolids from the entire area affected by the leak/spill; and do not leave the area ) without cleaning up the leaked/spilled material. . 11. Access Control. Contractor shall place "No Trespassing" signs at approximately 660 ft.. intervals around the entire perimeter of the agricultural fields receiving biosolids. These signs shall be properly maintained to alloW clear visibility. Also, place "No Trespassing" signs at all entrances to the fields receiving biosolids. Contractor shall ensure the entrance gate(s), if any, to agricultural fields are closed when biosolids application operations are concluded each day. 5 ," -"- .., t .' (B) The City shall be responsible for the followina: 1. Inaress and Earess. The City shall provide ingress and egress to Contractor to facilitate the removal of biosolids from the Facility, including access gates and roadways. 2. Relative Knowledae. The City shall provide necessary information to Contractor relative to the generation and composition of the biosolids that are to be land applied. The City also agrees to provide to the Contractor copies of all permits, approvals, or other information obtained from regulatory agencies applicable to the scope of work contemplated herein. 3. Biosolids Qualitv. The City shall offer and maintain a good quality stabilized Class 8 biosolids that are acceptable for land application and meet minimum treatment criteria and pathogen reduction requirements. The City shall abide by and shall have responsibilities as, "preparer" of the biosolids under the requirements of 40 CFR Part 503. 4. Valid Permits. The City shall be responsible for, and maintain, a valid state or federal biosolids management permit and associated NPDES permit. 5. Laboratory Analvses. The City shall obtain the necessary soil samples after each crop harvest and be responsible for the soil analysis prior to any biosolids application on the site. The City shall also obtain biosolids samples and perform the appropriate laboratory analyses of the biosolids as needed for land application. This 6 "" ..'", J ' . ., sampling shall include, but is not limited to, quarterly analysis of pollutant concentrations and nutrients concentrations; solid concentration; pathogen reduction; vector attraction reduction; etc. All sampling and testing methods shall be performed in a manner'meeting regulatory requirements and in such a way to allow the results to be used for biosolids application compliance purposes. . Copies of all lab reports will be furnished to the Contractor. (C) General Conditions: 1. Payment. (a) The City agrees to pay Contractor for transporting and applying the liquid biosolids to farmland $139.98 per ton of dry solids. The City also agrees to pay Contractor for transporting and applying dewatered cake to farmland $79.20 per ton of dry solids. The City agrees to make payment to Contractor for transportation and application of biosolids, both liquid and solid form, within 20 days following delivery of a written invoice from Contractor. The City agrees that the unit price payments set forth above shall be increased by 4% at the beginning of each calendar year to allow for projected increases in labor costs, fuel costs, chemical costs, transportation costs and other related costs. involved in the transportation and application of the liquid biosolids or dewatered cake by the Contractor. (b) Both City and Contractor agree that this Agreement is subject to renegotiation if the Regulations change during the term of this Agreement so as to materially affect either party's performance of the Agreement. If the Agreement is not renegotiated to the acceptance of either the City or Contractor, either party may elect to terminate this Agreement following 30 days written notice of said termination. 7 . . ~ .- , , ~ ' .. . 2. Terms. (a) The term of this Agreement shall commence on the date of its execution by both City and Contractor and sh~1I continue until December 31. 2013 (5 years). This Agreement may be cancelled or terminated by either the City or Contractor by the delivery of written notice of said termination, at least 120 days prior to the termination date except that if the reason for termination is the failure of either party to comply with the terms of this Agreement, then only a 30 day written notice of termination shall be required. Following the initial term of this Agreement, the same shall automatically renew itself from calendar year to calendar year unless either the City or Contractor notifies the other in writing at least six months prior to the expiration of the term of the Agreement of the election of said party to terminate the Agreement following expiration of said present term. (b) The City shall not be obligated to make any payments to Contractor in accordance with the terms of this Agreement, except those payments that can lawfully be made from funds budgeted and appropriated for this purpose during the City's appropriate budget year. In the event the City shall not be able to make payments to Contractor, Contractor reserves the ability at its election to terminate this Agreement upon 30 days written notice of said termination. (c) The Contractor agrees to comply with the terms of the Contractor's Insurance Requirements attached and incorporated'as Exhibit A. (d) The terms of this Agreement shall be interpreted in accordance with the laws of the State of Kansas. (e) Time is of the essence in all terms and provisions of this Agreement. (f) The terms, conditions and stipulations aforesaid are to become and shall be binding upon the parties hereto and their respective heirs, devisees, legatees, 8 . ......<1' "~... " " ~ . .. executors, personal representatives, administrators, successors and assigns, and each of them. 3. Notice. Notices as used herein shall mean delivery of written notice to the respective parties hereto at the following addresses: "CITY" ATTN: Director of Utilities P.O. Box 736 300 W. Ash Street Salina, KS 67402 FAX: 785-309-5713 "CONTRACTOR" Roger Mattison Mattison Farms, Inc. 4369 E. Campbell Rd. New Cambria, KS 67410 All notices required under the terms of this Agreement, shall be made in writing and delivered either by (a) hand delivery and considered delivered upon receipt; (b) telefacsimile and considered delivered upon completion of transmittal; or (c) certified mail and considered delivered upon signed receipt or refusal to accept notice. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed the day and year set below their respective executions. "CITY' "CONTRACTOR" THE CITY OF SALINA, KANSAS BY:51Ou ~J Date: ~O- t,-.Of) MATTISON FARMS, INC. BY:~.u , Date: I IJ- If;... CJ~ 9 , .' ... .. ~ Contractor's Insurance Requirements . . . ' . 5aIina The following requirements shall not be construed to limit the liability of the Contractor or It's insurer(s). The City does not represent that the specified coverages or limits of insurance are sufficient to protect the Contractor's interests or liabilities. Required coverages are to be maintained without interruption from the date of the commencement of the work until date of final payment and termination of any coverage required to be maintained after final payment. Questions regarding these requirements should be directed to Nancy Schuessler, Risk Management Specialist at (785) 309-5705. Commercial General Liabilitv Insurance The Contractor shall provide public liability insurance coverage in an amount no less than $500,000 covering the liability of the Contractor and any and all consultants, agents, independent contractors, etc. which are employed or retained by the Contractor, on an occurrence basis. The insurer must be acceptable to the City of Salina. Upon review of each project, the Risk Management Department may require higher or lower coverage limits. In lieu of the above coverage, the Contractor may provide coverage for his own firm in the above amount or an additional amount and submit proof all his consultants, agents and independent contractors have insurance deemed adequate by the City of Salina. Automobile Liabilitv The Contractor shall provide coverage protecting the contractor against claims for bodily injury and/or property damage arising out of the ownership or use of any owned, hired and/or non- owned vehicle. Required minimum limits: $500,000 each accident, combined single limits, bodily injury and property damage. Worker's Compensation Before beginning work, the Contractor shall furnish to the City satisfactory proof that he has taken out, for the period covered by the work under this contract, full workers' compensation coverage as required by state law for all persons who he may employ directly, or through subcontractors, in carrying out the work contemplated under this contract, and shall hold the City free and harmless for all personal injuries of all persons who the contractor may employ directly or through subcontractors. Certificate(s} of Insurance Certificate(s} of Insurance acceptable to the City shall be filed with the City at the time the contract between the City and the Contractor is executed. These certificates shall contain a provision that coverage afforded under the policies will not be cancelled or substantially . changed until at least thirty (30) days prior written notice has been given to the City and acknowledged. Note: if the Contractor is subject to worker's compensation law a certificate shall be provided. Notice of Claim The Contractor, upon receipt of notice of any claim in excess of $1 ,000 in connection with this contract shall promptly notify the Risk Management Department, (785) 309-5705, providing full details thereof, including an estimate of the amount of loss or liability. Indemnification Clause The Contractor agrees to indemnify and save harmless the City, its officials, agents, servants, officers, directors and employees from and against all claims, expenses, demands, judgements and causes of action for personal injury or death or damage to property where, and to the extent that, such claims, expenses, demands judgement or causes or action arise from the Contractor's negligent acts. Exhibit A CERTIFICATE OF LIABILITY INSURANCE Amerioe.n I=amlly Insurance Company 0 American Family Mutuallneurance Company if solootion bolC is not checked. 6000 Amorlcan Pky Madison, Wi500nldn 53793.0001 Agent's Namll, Address and Phone Number (AgI./Ols!.) Daran Fl. Neuschafer (785) 827-5150 1526 E. Iron Ave, Salina, KS 67401 (2501660) Insvred'e Neme and Address Roger & Maureen Mattison 609 Starlight Drivo Salina, KS 67401 Thie certifi~te 1$ l$$...ed .. . maUer Of Infor'mlltlon only and corifers no righW upon the CertlflO.le Holder. This clnlflcato does not amend, extlnd or alter Ihe coverage afforded by the pollc1eell$18d below. ~.i.!!.Ii!!C!!, .' .,...'. ~, . . . . ........".J . ... " " .....: .' ...' ':.......':.:.:. ',' ..':. . '.,".')~,7~:,'~. ','. . ..... ~:... . :.", ....,'.. ....:... ":.:",,~. '.". "',':. '.: ,.:.'.~:'.,',; ,'.' . ..' . .' .' . : ....: :~~~, .'. '."I",':,):,:-<"~,,,~:,'''' .'~.'~~'::.~_~.'. ,:,".,'.~"'.":'~1,~...,"'::::'''''',,1I~e..k-.':',.'{~~'. ':~"'~"'." ':.':,~. ~.....o:;~~\;.:.:.:::,..;,.,...';~,',<:~',~...~.,:.:~",., :. ;":;,., ,':.... . .' ,.""' .,,- ...................,......,.,m' lhls 18 10 certify thAt pollel88 01 Insuronce 118\8d beloW h8'1e been 188Ue<l10 \he Ill$ured """,ad abova fDr tha polley pe,I<JIj fn(fIcaI8d, nolWllhetanlllng any mqulramanl. ",nn Of COIldlUon 01 any CO/llraet 0' Qtho, dOO\Jment wnn reapeClIO which lhI8 cenJllcate may be l8SU8d or msy pertain. tIIell18umnce afforded by lI1e pqJIQIQ$ t,l,ccrib"d h.teln la SUbject to III tile term&, e~du.lon.. and wlldlllons 01 sllCh policies, lYPE OF INSURANCE Homeowner" Mobilehomeown8l'e Liability eoatowners Liability POLICY NUMBER F&,E&:JV';n FJI!la~I~~ Personal Umbrella LIability 15U8167101 03/1712008 03/1712009 Farm/Ranch Liability 15-P93625-Q1-00 1/1512008 1/1512009 Workers Compensatlon and emploYl1~ Li.bllltv t 1------ .-'"" ....---...... '...-.- '.--.' .,- Genelllll.lebility CJ Commercial General UabUily (ucoorrllnCfl) o o Suelnessowners liability Uquor Liability -....--........ A...tomoblle LIability o Any Aulu o All OWned Auto& D Schadulod Autos o Hired Avlo D NonownQd Autos CJ Exeess Liability o Commsrcial Blanket EKC$$$ o Other (Milcellaneo..., Coverages) LIMITS Ol'l L1ABIUTY BDdlly InJuJY &lid PIOjlerty DlV118ge' Each OCCUrrence $ ,000 Bodily Inlury and Proplllly Damage Esm OOOIIrrellCe $ ,000 lIodlly Injury and P.uplllly Illlmllge E:acl\OOCUrrence $ 1,000 ,000 Farm UlIIllIUy '" PfIl8Ot181 Usbnlly Eeol1 O<;l'olrranoa $ 1,000 ,000 F8lIll Employet'& LlablllY $ 10 000 E&ell O:e\lrren"" SlmIIlQry ......UU.. Esch Aclcldant $ ,000 0I8888e . ElICh EmplOYlle $ ,000 DI8e8ll8 - Policy LIm~ $ ,000 GonDnd Ayg'''Il''Ut $ 000 PrOlf~ets ' Con,.lelad OIleratlOl18 AmrenAte $ ,000 Person8lSnd AQvertl"~'.. ~,;ur" $ _..JOll Each Ogcurrenco $ 000 Dame"" to premtses Flenlod to VaU $ 000 Mtod.~ El<IlllnB8 IAnv one psn;on) $ 000 Eaell OOCUmlllcet t $ ,000 AosrD91l8tt $ ,000 (;Qmman Cause Umll $ .000 Alll1rooo\e UmiI $ ,000 ... BodilY InJury. !!Ad> I'a,..., $ ,000 '. Sodlly inJUry. EDell Accident $ ,000 P.opsl\)' Damage $ ,000 Bodily InJwy ""d Property Ol\lMge Comblnlld $ ,000 Ell"'" OOCUrrenceJAggfllll.... $ ,000 - t lhelndivldual 0, partnsl1shown ..Insured 0 HIlvo CJ li8V8 not ol~r;I8d to be oovered m; I/lIIplO\I88e under lh~ policy. t t ProcIUcIa.()ornP/uted Oper&lIonG "lllI...gBte 10 OQuol It> aach occurr_ Umlllllld Islnoludod in policy sgllAl1l010. .~ ':'. : ,': :.;. ,'. ..:~ : :/ . :' ";i :.". ,. ,9ANCE.~~'l!~",'~~';;,: ::: ~;'.:.\;;'.,f~*~i~:..:;t;,~~,: .. '0' ShOuld' any ~ thll above'deecribBd Dolioies be canco!JEld before th9 exp,lrallon date thereo,!. IhQ company, will Qndeavor to mall .( daylO) wnllen notice to the uertnlcate Holaer named, but failure tl) mail sueti nollce shall im~ no obligation or liability I,lf any kind UP.9.n thll company. Its aaente or representativeS. .fO daye unless lllfferef'lt number Of d\\ys Shown. !II This oertlfle& coverage on Ill" date of Issue only. Tho above de$Crlbed polioie5 al'Q subject 10 cancellation In conformity with their terms and Dy the laws of the state 01 iSBue. "'tilTIrlssueo IAUTrl'~FlI'IAllvt:.. ) 1011312006 r~!' A.AJ/J I , ~ OESCRIPTION OF OPERA'nONSI LOCATIOIIIS I VEHICLES I FlESTRIC'I'IONS I SPECIAL ITEMS ,."',,, """'.'!'I.: ""C"r:H.'TllOi~"HI'\E~E'R'.D"UAM~'AIii''''''A'DDRI:SS''''' . ". :.~ ~~,....,,~.::~/:.:~ "';" '"ii;,~' 1~~"~~.~11'}?"'..et' . ~:,...,:" "'... ~~.~ '" . .~ . ":~..' ..:: : -........ . City Of Salina ATTN: Dlreotor of Utilities PO Box 736 SaUna, KS 67402 U-201 Ed. 5100 Certificate Holder ld Wd6S:v0 B00c El '+00 lvvLLcBSBL: 'ON X~~ Stock No. 06668 ~e\l. 7/02 WO~~