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2004-2008 Wastewater Biosolids City of Salina Kansas Department of Utilities AGREEMENT RELATED TO THE TRANSPORTATION AND APPLICATION OF MUNICIPAL WASTEWATER BIOSOLIDS THIS AGREEMENT effective the 1Q... day of January, 2004 ,by and between: THE CITY OF SALINA, KANSAS, a municipal corporation (the "City"); and Roger Mattison Farms ("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, Roger Mattison Farms 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 ManaQement. 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 the biosolids. 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 Loading 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 to 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 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 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 it's immediate disposal. 2 4. Determination of Quantity Removed. Contractor shall providl3 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 vehiGle; % of dry solids in liquid or cake; and field identification. 5. Land Applications of Biosolids. Contractor shall providH 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. Agronomic Services. Application sites shall not be used by 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 commencing 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 7. Periodic Reports. Contractor shall complete any federal and state biosolids land application worksheets as required relative to the beneficial use of the applied biosolids. These records shall be maintained for five (5) years by the Contractor and copies shall be provided to the City. With each submitted invoice for payment, the Contractor agrE!eS to deliver to the City a report in a form acceptable to the City which shall include, but not be limited to, the acreage on which biosolids was applied; application method; biosolids form (liquid or cake); loading rates of nutnients 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 biosolid8. 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 11. (B). 1. 10. Emergency Response. 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 leakedlspilled material from roadways; divert traffic from the leak/spill area; thoroughly clean biosolids from the entire area affE!cted by the leak/spill; and do not leave the area without cleaning up the leaked/spilled material. 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 concludE~d each day. Citv shall be responsible for the following: Ingress and Egress. City shall provide ingress and egress to Contractor to facilitate the removal of biosolids from the Facility, including ;access gates and roadways. 5 2. Relative Knowledge. 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 applicable permits, approvals, or other information obtained from regulatory agencies applicable to the scope of work contemplated herein. 3. The City shall offer and maintain a good quality Biosolids Qualitv. stabilized Class B 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 "pmparer" of the biosolids under the requirements of 40 CFR Part 503. 4. Valid Permits. City shall be responsible for and maintain a valid state or federal biosolids management permit and associated NPDES permit 5. Laboratory Analvses. City shall obtain the necessary soil samples after each crop harvest and be responsible for the soil analysis prior to any biosolids application to the site. City shall also obtain biosolids samples and perform thH appropriate laboratory analyses of the biosolids as needed for land application. This sampling shall include, but 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. 6 C. General Conditions: 1. (a) (b) Payment The City agrees to pay Contractor for transporting and applying the liquid biosolids to farmland $ 144.65 per ton of dry solids. The City, also, agrees to pay Contractor for transporting and applying dewatered cake to farmland $ 71 .50 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, chHmical costs, transportation costs and other related costs involved in the transportation and application of the liquid biosolids or dewatered cake by the Contractor. 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 pHrformance of this 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 (b) (c) 2. Terms: (a) The term of this Agreement shall commence on the date of its execution by both City and Contractor and shall continue until December 31, 2008 . This Agreement may be cancelled or terminated by either the City or Contractor by the delivøry 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, th43n 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 eithør 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 elHction of said party to terminate the Agreement following expiration of said present term. 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 it's election to terminate this Agreement upon 30 days written notice of said termination. The terms of this Agreement shall be interpreted in accordance with the laws of the State of Kansas. 8 (d) Time is of the essence in all terms and provisions of this Agreement. (e) The terms, conditions and stipulations aforesaid are to become and shall be binding upon the parties hereto and their respective heirs, devisees, personal representatives, legatees, executors, administrators, successors and assigns, and each of them. 3. Indemnification. City and Contractor each agree to indemnify, defend and hold harmless the other from and against any and all claims, expenses, or liabilities, including attorneys fees and other costs of defense" arising from damages caused by their respective negligent acts or failure to comply with the Regulations. 4. Contractor's Insurance. Prior to or at the time of execution of the contract, the Contractor shall file with the Owner a "Certificate of Insurance" or other evidence as necessary to show that he and his subcontractors, if any, carry adequate coverage fully to protect themselves against such claims which may arise from operations under this contract, whether such operations be by the Contractor or any subcontractor or anyone directly or indirectly employed by either; said coverage to be in the form and minimum amounts hereinafter specified. Each certificate shall contain a clause requiring the insurer to notify the Owner at least 30 days in advance of any cancellation or change in insurance contracts. All policies shall be subject to approval by the Owner as to insurer and adequacy of protection. The following minimum coverage shall be maintained in full force and effect until completion of the contract and acceptance thereof by the Owner. 9 (a) (b) (c) (d) Workmen's Compensation Insurance. The Contractor shall provide workmen's compensation and employer's liability insurance as required by law fully to cover all employees. Bodily Injury and Property Damage Insurance. A comprehensive general bodily injury and property damage policy, including automobiles, covering the work to be performed, shall be written to provide a coverage of $500,000 (combined single limit policy) covering bodily injury liability; property damage; dl3struction of property; and automobile damage occurring durin!J the policy period. Automobile Liability. The Contractor shall provide coverage protection the Contractor against claims for bodily injury and/or property damage arising out of the ownership or use of any owned, hired andlor non owned vehicle. Required minimum limits: $300,000 each accident, combined single limits, bodily injury and property damage. Commercial General Liability Insurance. The Contractor shall provide public liability insurance coverage in an amount no less than $250,000 covering the liability of the Contractor and any an all consultants, agents, independent contractors, etc:. which are employed or retained by the Contractor, on an occurrence basis. The insurer must be acceptable tot he City of Salina. Upon review of each project, the Deputy City Manger may require higher coverage limits. 10 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. (e) 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 Deputy City Manager (785)309-5715, providing full details thereof, including an estimate of the amount of loss or liability. Contact Deputy City Manger Immediately if any bodily injury does occur. 5. Notices. Notices as used herein shall mean delivery of written notice to the respective parties hereto at the following addresses: "CITY" A TTN: Director of Utilities P.O. Box 736 300 W. Ash Street Salina, KS 67402 FAX: 785-826- 7256 "CONTRACTOR" Mattison Farms c/o Roger Mattison 2119 Melrose Lane Salina. KS. 67401 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. 11 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 - Mattison Farms / Jl\l!. by:-a~[.~ Alan E. Jilka, ayor'-- by: ~~ ~ ~~~) Date: \ ~ \-i\ ô>tX)3 Date: )... Ó(O. . O¥ 12