HomeMy WebLinkAboutStrand Associates - Anaerobic Lagoon Upgrades-10/23/2017CITY OF WATERLOO, IOWA
WASTE MANAGEMENT SERVICES DEPARTMENT
3505 Easton Ave. • Waterloo, IA 50702 • (319) 291-4553
Steve Hoambrecker, Director
October 11, 2017
Memo to Waterloo Mayor and City Council:
RE: Engineering Contract Strand, Lagoon biogas project
Project description and discussion
This project will provide engineering evaluation of future options for biogas utilization from the
anaerobic lagoon that primarily treats waste from Tyson. The city has had an agreement with Planergy
since 2007 to treat generated biogas and resell it to Tyson's. The price of natural gas has come down
resulting is a much lower economic value for the generated biogas for resale to Tyson. Within the last
year it was necessary to reduce Planergy's rebate rate to the city from $0.50 to $0.10 for mmBTU of gas
generated. The revised contract with Planergy was for 1 year until next April. With the existing contract,
Planergy still retains the biogas rights.
We have been evaluating potential future options for the generated biogas. We have taken a two step
approach potentially hiring a consultant to evaluate options (this contract) and have received a proposal
from Planergy to implement improvements. At a minimum, the 20 year old lagoon cover needs replace
along with other lagoon improvements. The driving force for this contract is the potential for a
substantial increase in generated revenue from the biogas. This contract will identify and evaluate not
only Planergy's proposal but other options.
One of the major payback options are to make the biogas generated "Pipeline Quality". There will be a
major capital expense to accomplish this but the ROI can be short 3-5 years depending upon the
arrangements that can be made for the generated biogas. To assist with this process, Strand is working
with ECO Engineers from Des Moines. Between the two firms, they are currently working with other
Iowa entities: Des Moines, Muscatine, Sioux City and Dubuque on similar such projects.
The importance of this contract is to analyze the options available and plan accordingly. It is essential
that this evaluation be undertaken in the very near future to take advantage of potential specialty
programs: Renewable Identification Number (RIN) for digestion biogas and the Low Carbon Fuel
Standard (LCFS) credits. The potential sizeable capital investment can be done privately (like Planergy)
with a minimized city capital investment and diminished reward or payback or publically with a much
greater city capital investment with a much greater reward or financial payback. The engineering
evaluation will provide information that will improve decision making for future planning.
Funding 520-14-5320-2103
It is proposed that we utilize the engineering sewer fund, 520-14-5320-2103, currently be set aside for
SRF loan projects as this project is SRF eligible.
STRAND
ASSOCIATES"
Strand Associates, Inc."
910 West Wingra Drive
Madison, WI 53715
(P) 608-251-4843
(6) 608-251-8655
October 5, 2017
City of Waterloo
Wastewater Treatment Plant
3505 Easton Avenue
Waterloo, IA 50703
Attention: Mr. Steven Hoambrecker, Director of Waste Management Services
Re: Agreement for General Services
Anaerobic Lagoon Upgrades and Biogas End Use Study
This is an Agreement between the City of Waterloo, Iowa, hereinafter referred to as OWNER, and Strand
Associates, Inc.', hereinafter referred to as ENGINEER, to provide engineering services (Services) for
the Anaerobic Lagoon Upgrades and Biogas End Use Study. This Agreement shall be in accordance with
the following elements.
Scope of Services
ENGINEER will provide the following Services to OWNER.
1. Attend a kickoff meeting with OWNER to discuss the following:
a. Project scope, budget, and schedule.
b. Future conditions for the industrial wastewater discharges.
c. Potential lagoon upgrades and enhancements including mixing, heating, and redundancy
improvements.
d, OWNER level of interest in owning and operating the biogas management system.
2. Request and evaluate wastewater and biogas data from OWNER and third -party contractor and
request potential growth scenario information from industries that may discharge to the lagoon
in the future. These requests are anticipated to be made to the industries via OWNER's contacts
with those industries.
3. Develop a memorandum that summarizes the past data, an opinion of projected loadings and biogas
generation, as well as lagoon upgrades (nixing, heating, gas containment) and biogas alternatives,
including opinions of probable capital and operational costs to address the projected needs.
4. Conduct a technical review and evaluation of the existing anaerobic lagoon in terms of its design,
capacity, mixing and heating upgrades, potential of providing increased lagoon redundancy to
protect the main wastewater treatment plant (WWTP), and biogas collection. These evaluations
will consider constructability and will highlight the effects to the main WWTP if the lagoon were
out of service for an extended length of time.
5. Evaluate up to two technologies and alternatives to further condition the biogas to pipeline
quality natural gas. Evaluations will include opinions of probable capital and operations and
maintenance (O&M) costs, and anticipated revenues from gas sales, renewable identification
numbers (RIN), and low carbon fuel standard credits. This evaluation will include the following:
a. Review the feedstock makeup.
b. Review the planned end use and conversion processes.
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c. Conduct the Renewable Fuel Standard RIN valuation including feedstock implications
regarding D3/D5 RINs.
d. Conduct the low carbon fuel standard credit valuation including the carbon intensity
estimate.
e. Review the capital and O&M opinions of probable cost, as well as potential revenue.
6. Summarize evaluations in a report including a description of the current opportunities and
existing conditions, projections for future conditions, required upgrades, opinions of capital and
O&M costs, revenue projections, and project viability from both technical and financial
perspectives. Submit a draft report to the OWNER in portable document file format for review.
7. Attend a meeting with OWNER to review the draft report. Incorporate OWNER comments into
report as applicable and submit three hard copies and one electronic copy of final report to OWNER.
Service Elements Not Included
The following services are not included in this Agreement. If such services are required, they will be
provided as noted.
I. Additional Site Visits and/or Meetin s: Additional OWNER -required site visits or meetings will
be provided through an amendment to this Agreement or through a separate agreement with
OWNER.
2. Bidding- and Construction -Related Services: Bidding- and construction -related services for the
project will require a separate agreement with OWNER.
3. Drawings and Specifications: Final design services including drawings and specifications, if
provided by ENGINEER, will be provided through an amendment to this Agreement or through
a separate agreement with OWNER.
4. Flood Studies: Any services involved in performing flood and floodway studies, if required, will
be provided through an amendment to this Agreement or through a separate agreement with
OWNER.
5. Permit and Plan Review Fees: All permit and plan review fees payable to regulatory agencies
shall be paid for by OWNER.
6. Preparation for and/or Appearance in Litigation on Behalf of OWNER: This type of service by
ENGINEER will be provided through a separate agreement with OWNER.
7. Revisin Desi ns Drawin•s S.ecifieations, and Documents: Any services required after these
items have been previously approved by state or federal regulatory agencies, because of a change
in project scope or where such revisions are necessary to comply with changed state and federal
regulations that are put in force after Services have been partially completed, will be provided
through an amendment to this Agreement.
8. Services Related to Buried Wastes and Contamination: Should, buried solid, liquid, or potentially
hazardous wastes or subsurface or soil contamination be uncovered at the site, follow-up
investigations may be required to identify the nature and extent of such wastes or subsurface soil
or groundwater contamination and to determine appropriate methods for managing of such wastes
or contamination and for follow-up monitoring. Investigation, design, or construction -related
services related to buried solid, liquid, or potentially hazardous wastes or soil or groundwater
contamination will be provided through a separate agreement with OWNER.
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Compensation
OWNER shall compensate ENGINEER for Services on an hourly rate basis an estimated fee of $58,000.
Only sales taxes or other taxes on Services that are in effect at the time this Agreement is executed are
included in the Compensation. If the tax laws are subsequently changed by legislation during the life of
this Agreement, this Agreement will be adjusted to reflect the net change.
The estimated fee for the Services is based on wage scale/hourly billing rates, adjusted annually on Judy 1,
that anticipates the Services will be completed as indicated. Should the completion time be extended, it
may be cause for an adjustment in the estimated fee that reflects any wage scale adjustments made.
The estimated fee will not be exceeded without prior notice to and agreement by OWNER but may be
adjusted for time delays, time extensions, amendments, or changes in the Scope of Services. Any
adjustments will be negotiated based on ENGINEER's increase or decrease in costs caused by delays,
extensions, amendments, or changes.
Schedule
Services wili begin upon execution of this Agreement, which is anticipated the week of October 30, 2017.
Services are scheduled for completion on April 30, 2018.
Standard of Care
The Standard of Care for all Services performed or furnished by ENGINEER under this Agreement will
be the care and skill ordinarily used by members of ENGINEER's profession practicing under similar
circumstances at the same time and in the same locality. ENGINEER makes no warranties, express or
implied, under this Agreement or otherwise, in connection with ENGINEER's Services.
OWNER's Responsibilities
I. Assist ENGINEER by placing at ENGINEER's disposal all available information pertinent to
this project including previous reports, previous drawings and specifications, and any other data
relative to the scope of this project.
2. _Furnish to ENGINEER, as required by ENGINEER for performance of Services as part of this
Agreement, data prepared by or services of others obtained or prepared by OWNER relative to
the scope of this project, such as soil borings, probings and subsurface explorations, and
laboratory tests and inspections of samples, all of which ENGINEER may rely upon in
performing Services under this Agreement.
3. Provide access to the site as required for ENGINEER to perform Services under this Agreement.
4. Guarantee access to and make all provisions for ENGINEER to enter upon public and private
lands as required for ENGINEER to perform Services under this Agreement.
5. Examine all reports, sketches, estimates, special provisions, drawings, and other documents
presented by ENGINEER and render, in writing, decisions pertaining thereto within a reasonable
time so as not to delay the performance of ENGINEER.
6. Provide all legal services as may be required for the development of this project.
7. Retain the services of a soils consultant to provide any necessary geotechnical evaluation and
recommendations, if required.
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Opinion of'Probable Cost
Any opinions of probable cost prepared by ENGINEER are supplied for general guidance of OWNER
only. ENGINEER has no control over competitive bidding or market conditions and cannot guarantee
the accuracy of such opinions as compared to contract bids or actual costs to OWNER.
Changes
I. OWNER may make changes within the general scope of this Agreement in the Services to be
performed. If such changes cause an increase or decrease in ENGINEER's cost or time required
for performance of any Services under this Agreement, an equitable adjustment will be made
and this Agreement will be modified in writing accordingly.
2. No services for which additional compensation will be charged by ENGINEER will be furnished
without the written authorization of OWNER. The fee established herein will not be exceeded
without agreement by OWNER but may be adjusted for time delays, time extensions,
amendments, or changes in the Scope of Services.
3. If there is a modification of Iowa Department of Natural Resources requirements relating to the
Services to be performed under this Agreement subsequent to the date of execution of this
Agreement, the increased or decreased cost of performance of the Services provided for in this
Agreement will be reflected in an appropriate modification of this Agreement.
Extension of Services
This Agreement may be extended for additional Services upon OWNER's authorization. Extension of
Services will be provided for a lump sum or an hourly rate plus expenses.
Payment
OWNER shall make monthly payments to ENGINEER for Services performed in the preceding month
based upon monthly invoices. Nonpayment 30 days after the date of receipt of invoice may, at
ENGINEER's option, result in assessment of a I percent per month carrying charge on the unpaid
balance.
Nonpayment 45 days after the date of receipt of invoice may, at ENGINEER's option, result in
suspension of Services upon five calendar days' notice to OWNER. ENGINEER will have no liability
to OWNER, and OWNER agrees to make no claim for any delay or damage as a result of such suspension
caused by any breach of this Agreement by OWNER. Upon receipt of payment in full of all outstanding
sums due from OWNER, or curing of such other breach which caused ENGINEER to suspend Services,
ENGINEER will resume Services and there will be an equitable adjustment to the remaining project
schedule and compensation as a result of the suspension.
Data Provided by Others
ENGINEER is not responsible for the quality or accuracy of data nor for the methods used in the
acquisition or development of any such data where such data is provided by or through OWNER,
contractor, or others to ENGINEER and where ENGINEER's Services are to be based upon such data.
Such data includes, but is not limited to, soil borings, groundwater data, chemical analyses, geotechnical
testing, reports, calculations, designs, drawings, specifications, record drawings, contractor's marked -up
drawings, and topographical surveys.
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Termination
This Agreement may be terminated with cause in whole or in part in writing by either party subject to a
two-week notice and the right of the party being terminated to meet and discuss the termination before
the termination takes place. ENGINEER will be paid for all completed or obligated Services up to the
date of termination.
Third -Party Beneficiaries
Nothing contained in this Agreement creates a contractual relationship with or a cause of action in favor
of a third party against either OWNER or ENGINEER. ENGINEER' s Services under this Agreement are
being performed solely for OWNER's benefit, and no other party or entity shall have any claim against
ENGINEER because of this Agreement or the performance or nonperformance of Services hereunder.
OWNER and ENGINEER agree to require a similar provision in all contracts with contractors,
subcontractors, subconsultants, vendors, and other entities involved in this project to carry out the intent
of this provision.
Dispute Resolution
Except as may be otherwise provided in this Agreement, all claims, counterclaims, disputes, and other
matters in question between OWNER and ENGINEER arising out of or relating to this Agreement or the
breach thereof will be decided first by mediation, if the parties mutually agree, or with a bench trial in a
court of competent jurisdiction within the State of Iowa.
Terms and Conditions
The terms and conditions of this Agreement will apply to the Services defined in the Scope of Services.
OWNER -supplied purchase order is for processing payment only; terns and conditions on the purchase
order shall not apply to these Services.
IN WITNESS WHEREOF the parties hereto have made and executed this Agreement.
ENGINEER: OWNER:
STRAND ASSOCIATES, INC.® CITY OF WATERLOO
/t/t/t � -�I� Lc/( t/7/7Dv%Matthew S. Richards Date Quentin M. Hart Date
Corporate Secretary Mayor
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