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H5. Sludge Management Agreement st 201 1Ave E Post Office Box 1997 Kalispell, MT 59903 Telephone: (406) 758-7720 www.Kalispell.com To: Doug Russell, City Manager From: Susie Turner, Public Works Director Re: Sludge Management Agreement-Glacier Gold LLC Meeting Date: March 4, 2024 Enclosed: Sludge Management Agreement BACKGROUND: The City and Glacier Gold Compost have a Sludge Management Agreement that ensures the disposal of -solids (sludge). Wastewater Treatment Plant has been disposing sewage sludge at Glacier Gold Compost since 1993, with the current sludge management agreement initiated in 2019 and ending March 31, 2024. Glacier Gold Compost Owners and the City Public Works Staff have reached a mutual agreement to extend our collaborative partnership through an agreement. Enclosed is a copy of the updated agreement. Below is a summary outlining key sections of the updated agreement, along with highlights noting the changes incorporated from the previous agreement. Charges/Adjustments: The City is currently paying $238 per dry ton of sludge delivered to and accepted by Glacier Gold. The City will continue to pay a fixed rate of $238 per dry ton of sludge for the first year of the agreement through March 2025. Starting in 2025 this price may be negotiated, if increased the agreement amendment will require Council approval. Physical Characteristics: The sludge is required to be dewatered between 13% and 20% solids content. The typical sludge solids content for Kalispell is 13-15%. Testing: The City will continue to perform the quarterly zinc sampling per the EPA requirements. Term: The initial term of the updated Agreement is for a one-year period from April 1, 2024, to March 31, 2025. The Agreement may be extended annually for up to five one-year periods by mutual agreement in writing by both parties. Exhibit A provides an example extension to this Agreement. If any of the terms of this Agreement are to be modified by these extensions, they will be subject to renegotiation by both parties upon written notice by either party, thirty (30) days prior to the expiration of the term. Previous agreements were written for a 5-year term. Glacier Gold was only willing to update the agreement with a one-year term limit with the option to extend annually for five years. Sludge Removal and Delivery:The annual delivery shall not exceed 600 dry tonsper year unless revised by mutual consent in an amendment to the Agreement. The City may deliver up to 600 dry tons per year to Glacier Gold Composting but retains the right to dispose of biosolids as the City deems necessary to sustain disposal operations in the future. BIOSOLIDS HANDLING CAPCITY: The City uses Glacier Gold Composting as the primary method of sewage sludge disposal, and the Landfill as the secondary disposal location. The table below provides a summary of the biosolids generation and load deliveries to Glacier Gold Composting and the Landfill. Annual Dry Tons Glacier 1 Year Landfill Total Gold 2018 151 588 739 2019 181 477 658 2020 197 476 673 2021 203 528 731 2022 228 541 769 2023 199 530 729 1) Annual ton per year fluctuates due to tank servicing schedules RECOMMENDATION: Approve the Sludge Management Agreement with Glacier Gold. ACTION REQUESTED: Motion to approve the updated Sludge Management Agreement with Glacier Gold. FISCAL EFFECTS: There are no additional fiscal effects associated with this agreement. Contract Service- Glacier Gold line item 354 is budgeted annually in the Wastewater Treatment Plant Fund. ALTERNATIVES: As suggested by City Council.