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Item F1 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 2/18/2004 Division: Public Safety Bulk Item: Yes No~ Department: Solid Waste AGENDA ITEM WORDING: Consideration ofaltematives and directions to staff regarding the removal and disposal of septage and biosolids generated in Monroe County ITEM BACKGROUND: Item background is provided on a separate sheet attached hereto. PREVIOUS REVELANT BOCC ACTION: Approval of the original agreement with Wheelabrator Clean Water Systems, Inc. on March 15, 1995. The original agreement provided for up to two (2) additional renewal periods of four (4) years each. Approval of the assignment to A & J Cartage Southeast, Inc. on 5/20/1997. Approval ofa renewal agreement for a period offour (4) years, effective March 15,2003, with A & J Cartage Southeast, Inc. on 1/15/03. CONTRACT/AGREEMENT CHANGES: Not applicable STAFF RECOMMENDATIONS: Discussion TOTAL COST: BUDGETED: Yes No COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Yes No AMOUNT PER MONTH YEAR APPROVED BY: County Atty nla DIVISION DIRECTOR APPROVAL: DOCUMENTATION: Included ~ To Follow Not Required_ AGENDA ITEM # F \ DISPOSITION: Consideration of Alternatives and directions to staff regarding the removal and disposal of septage and biosolids generated in Monroe County ATTACHMENT 1 ITEM BACKGROUND: · March 15, 1995: BOCC enters into an Agreement with Wheelabrator Clean Water Systems, Inc. for the removal and disposal of septage and biosolids generated in Monroe County. The County desires to have all septage and wastewater biosolids generated within Monroe County removed and disposed of outside the boundaries of the County. Wheelabrator shall receive biosolids and septage from local haulers at the Key Largo, Long Key and Cudjoe Key transfer stations sites and shall provide the necessary labor, materials, and equipment to transfer, store, transport, and dispose of same. The original operating term of the Agreement is for a period of four years. The Agreement may be renewed for up to two additional periods, four years each. Provisions of that Agreement most pertinent to the current issues are as follows: · Section: 3.7 It is estimated that 5,000,000 gallons of biosolids and septage will be delivered to the transfer station sites during the first year of this Agreement. If the amount ofbiosolids and septage handled falls below 4,500,000 gallons in the first year or any year thereafter, the County and Wheelabrator agree to negotiate an adjustment in the unit price or adjust the scope of Wheelabrator' s services. If a mutually agreeable adjustment cannot be reached, Wheelabrator or the County reserves the right to cancel the Agreement within 90 days advance notice, with no further obligation thereafter to either party. · Section 5.8 Should the County or Wheelabrator at any time during the progress of the work, request any alterations in, deviations from, additions to, or omissions from the Scope of Services to be provided under the Agreement, either of them shall be at liberty to do so, and the same shall in no way affect or make v\)id the Agreement. The changes and amount of compensation must be agreed upon in writing in a document of equal dignity herewith prior to any deviation from the terms of the Agreement. All such changes, when properly executed, shall become an amendment to the Agreement. · May 20, 1997: BOCC consents to the assignment of the March 15, 1995 Agreement with Wheelabrator Clean Water Systems, Inc. to A & J Cartage Southeast. · October 2002: A & J Cartage Southeast, Inc. (Synagro of Florida) contacts Monroe County regarding the County's intent to renew its existing Agreement with them. The Agreement is due to expire on March 14,2003. A representation is made to the County that the earlier the Agreement is renewed, the earlier Synagro can proceed to make some equipment improvements. · January 15, 2003: BOCC grants approval and authorizes execution of a Renewal Agreement with A & J Cartage Southeast, Inc., effective March 15, 2003 for a period of four (4) years. 1 Consideration of Alternatives and directions to staff regarding the removal and disposal of septage and biosolids generated in Monroe County . March 12, 2003: A letter is sent to the Florida Department of Environmental Protection (FDEP) by Sweetwater Environmental, Inc. (Sweetwater), trucking agent for Synagro Southeast, Inc., regarding permitting requirements for residuals disposal in Monroe County. That letter indicates that Synagro will continue to be Monroe County's contractor. . March 21,2003: FDEP responds to Sweetwater's aforementioned letter indicating that a separate permit is not required to bypass the Monroe County Transfer Stations and dispose of residuals directly to the wastewater treatment plants (WWTPs) identified in the permit for the Monroe County Transfer Stations contingent upon several things, with the first three being that: 1. Hauling residuals directly to the Miami-Dade Black Point WWTP or to the Miami-Dade Virginia Key WWTP is not inconsistent with any Monroe County requirements or Synagro's Agreement with Monroe County; 2. Sweetwater notifies Monroe County prior to hauling residuals directly to the aforementioned WWTPs; 3. The FDEP, Synagro, or Sweetwater does not receive an objection from Monroe County. . March 25, 2003: Sweetwater sends a fax to Monroe County stating: "The Florida Department of Environmental Protection has requested that we notify Monroe County that Sweetwater Environmental, Inc. will begin transport of domestic wastewater residuals from Monroe County directly to wastewater treatment facilities in Miami- Dade County. Sweetwater Environmental, Inc. is the contract hauler for Synagro in Monroe County." · April 1, 2003: FDEP, Marathon Office, receives a letter from Sweetwater indicating that pursuant to FDEP's letter of March 21,2003, they are submitting the requested declarations and documentation; the first three of those being that: 1. Hauling residuals directly to the Miami-Dade Black Point WWTP or to the Miami-Dade Virginia Key WWTP is not inconsistent with any Monroe County requirements or Synagro's Agreement with Monroe County. 2. Sweetwater has notified Monroe County that Sweetwater Environmental, Inc. will begin transport of domestic wastewater residuals from Monroe County directly to wastewater treatment facilities in Miami-Dade County. 3. There has been no known objection from Monroe County. . April 28, 2003: Monroe County's staff meets with representatives of Sweetwater regarding the proposed transport of domestic wastewater residuals directly to Miami- Dade WWTPs. At that meeting, there is implication that the direct transport of residuals to Miami-Dade is not inconsistent with any Monroe County requirements or Synagro's Agreement with Monroe County, since Sweetwater is the trucking agent for Synagro Southeast, Inc. A significant reduction in volumes received at Monroe County's three transfer stations begins in April 2003. It is the direct result of Sweetwater, as Synagro's trucking agent, beginning to bypass the Monroe County Transfer Stations and dispose of residuals directly to the Miami-Dade WWTPs. 2 Consideration of Alternatives and directions to staff regarding the removal and disposal of septage and biosolids generated in Monroe County · July 31, 2003: Synagro sends a letter to Monroe County indicating that it wishes to close the Key Largo and Long Key sludge transfer stations due to a reduction in volumes, and to continue to provide services utilizing the Cudjoe Key transfer station. Synagro cites that their Agreement, Sections 3.7 and 5.8, allows the contractor the right to request and negotiate an adjustment in the scope of the contractor's services under such circumstances. · September 11,2003: FDEP sends a letter to Synagro advising of possible violations of law for which Synagro may be responsible regarding numerous maintenance deficiencies at all three transfer stations in Monroe County. FDEP conducted field inspections on June 9 and August 7, 2003. · September 25, 2003: Monroe County holds a meeting with Synagro and local septage/sludge haulers regarding Synagro's wishes to close the Key Largo and Long Key transfer stations and how that might impact the local hauler's operations. The overwhelming conclusion is that closing the Key Largo transfer station will be of little impact due to its proximity to Miami-Dade WWTPs, however the closing of the Long Key station will be significant. · October 15, 2003: Synagro sends a letter thanking Monroe County for sponsoring the September meeting, but reiterating its inability to continue operating the Key Largo and Long Key stations. Synagro proceeds to inform the County that if agreement cannot be reached regarding its requested modification of the scope of services, then it will have no alternative but to give the County its 90 days notice to end the Agreement. Synagro proposes that the Key Largo station closes on November 1, 2003 and that the Long Key station closes on December 31,2003. In this scenario Synagro would continue to run the Cudjoe Key transfer station. Another alternative Synago proposes is that the Key Largo station close on November 1, 2003 and that it will give 90 days notice as to the entire Agreement on November 1,2003 to be effective January 31,2004. In this scenario Synagro would not run any of the stations as of the January 31st date. Furthermore, Synagro offers to assist in the transfer of its permits to the County or to any third party of the County's choosing. In addition, Synagro proposes to donate most of its equipment to the County and clean and drain the equipment as needed if the station is to be closed_ · October 27,2003: Monroe County holds a second meeting with Synagro and local septage/sludge haulers. Synagro's proposed alternatives and others are discussed. Most local haulers contend that if they have to haul everything to either Cudjoe Key transfer station or to a Miami-Dade WWTPs, they could be forced out of business, thus resulting in Sweetwater having a monopoly in Monroe County. There is concurrence among the participants about the need for volumes to be at certain levels in order for transfer stations at Cudjoe Key and Long Key to be financially self- supporting, with an alternative being for the County to subsidize the operations. To that end, a solution might be for the County to mandate that all residuals generated in Monroe County have to be transported to its transfer stations. Staff ofFDEP and a consultant of SCS Engineers in attendance both indicate that counties and municipalities probably can regulate the transportation of residuals locally. 3 Consideration of Alternatives and directions to staff regarding the removal and disposal of septage and biosolids generated in Monroe County · October 30,2003: FDEP sends a letter to Sweetwater Environmental, Inc. to determine its compliance with certain conditions of the Department's letter dated March 21,2003, pertaining primarily to the preparation and maintenance of records about the transportation of residuals. · November 2003: County staff continues to explore and research possible solutions to the current situation. Numerous contacts are made and discussions held, both internally and externally, and including some with Synagro, regarding the issues. · December 1, 2003: Synagro sends a letter to Monroe County giving its 90 day termination of the Agreement in its entirety no later than February 29,2004. · December 17,2003: A County staff report is made to the BOCC about Monroe County's contract with A & J Cartage Southeast a/kJa Synagro Southeast, Inc., and Synagro's contracting with Sweetwater Environmental to be their trucking agent. · December 19, 2003: County staff meets with a representative of Synagro regarding what Synagro would require, in lieu of increased volumes, in order to continue operating both Cudjoe Key and Long Key transfer stations. Synagro's representative indicates he would have to get back with the County on that after discussing it with his superiors. Subsequently, Synagro is informed that Monroe County is willing to close the Key Largo Septage/Sludge transfer station effective January 1, 2004 if Synagro agrees to extend the Agreement termination deadline to March 31,2004. · January 6,2004: Synagro sends an email to Monroe County indicating its acceptance of the Agreement termination deadline to March 31,2004. · January 7, 2004: County staff contacts Synagro as a follow up to the December 19, 2003 meeting regarding minimum volumes or dollars needed to run the Cudjoe Key and Long Key stations. · January 20, 2003: Synagro sends an email to Monroe County stating its need for a put or base price monthly income of $49,366.66 to continue the operations of the Cudjoe Key and Long Key stations only. This base amount is 2,000,000 gallons at $ .2962 per gallon divided by twelve months to establish a monthly revenue base. All additional gallons will be charged at the current rate of $ .1347. · January 23, 2003: FDEP sends a letter to Sweetwater Environmental, Inc. regarding the location of hauling records for residuals from Monroe County wastewater treatment facilities. FDEP was informed that the location of the records was not known during a recent inquiry made to Synagro. FDEP's March 21,2003 letter requires hauling records to be maintained at the Key Largo transfer station. FDEP requested a response from Sweetwater with the location of the records within ten days of receipt of its letter. 4 BOCC Meeting Date: 2/18/2004 Agenda Item: F-l Agenda Item Wording: Consideration of Alternatives and directions to staff regarding the removal and disposal of septage and biosolids generated in Monroe County ATTACHMENT 2 STAFF RECOMMENDATIONS: 1. Prepare and send a letter to the Department of Environmental Protection, Synagro d/b/a A & J Cartage Southeast, Inc., and Sweetwater Environmental, Inc. objecting to Sweetwater's operation of bypassing the Monroe County Transfer Stations and hauling residuals directly to the wastewater treatment plants in Miami-Dade County for disposal, and requiring that such operations be discontinued immediately, because it is inconsistent with Monroe County's agreement with A & J Cartage, Inc. for removal and disposal of septage and biosolids generated in Monroe County. 2. Prepare and advertise for Public Hearing an amendment to the applicable section(s) of the Monroe County Code that will require that all sludge generated and collected within the territorial limits of the Solid Waste Municipal Service District shall be hauled to the County's transfer stations by specialty haulers who provide for the collection of special solid waste and who are licensed under the provisions of section 8-82, Monroe County Code. 3. Contact Synagro and ask if they are interested in rescinding the notice to terminate the Agreement with Monroe County as of March 31, 2004, and to continue to provide the scope of services in accordance with the current Agreement's terms and conditions, predicated upon the above actions becoming effective and the volume of sludge being delivered to the transfer station sites being restored to at least 4,500,000 gallons a year. If Synagro is not interested in the aforementioned, accept Synagro's January 6, 2004 proposal for a put or base price monthly income of $49,366.66 to continue the operations of the Cudjoe Key and Long Key stations only on an interim month-to-month basis while awaiting the results of a new Request for Proposals (RFP) for those services. 4. Immediately, prepare and advertise an RFP for the removal and disposal of septage and biosolids (sludge) generated in Monroe County.