4. Contract Award - Glacier GoldKalispell Public Works Department
201 111 Avenue East, P.O. Box 1997,
Kalispell, MT 59903-Phone (406)758-7720
www.kalispell.com
To: Douglas Russell, City Manager `5 '
From: Susie Turner, P.E., Public Works Directo&
Re: Sludge Management Agreement -Glacier Gold LLC
Date: April 2, 2014
Council Meeting Date: April 7, 2014
The City and Glacier Gold Compost have a sludge management agreement which ensures the disposal of
Kalispell's bio-solids (sludge). The City uses Glacier Gold Composting as the primary method of sewage
sludge disposal. Kalispell's BNR plant has been disposing sewage sludge at Glacier Gold Compost since
1993. In 1989, the City was tasked with finding a place to dispose of the undigested sewage sludge to
meet DEQ and EPA sewage sludge disposal permit requirements. Studies were performed on alternative
disposal sites and methods, and ultimately the City partnered with Glacier Gold Composting for use of the
local compost facility. A comprehensive report detailing Kalispell's Sludge Management including
sludge generation, handling, disposal, permit requirement, and management alternative is enclosed for
reference.
Public Works Staff and Glacier Gold Composting have been working on an updated Sludge Management
Agreement. The changes to the agreement are as follows:
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
next five years. The previous contract had an annual adjustable rate based on the Consumer Price Index,
which calculated into an annual average adjustment of 2.534 % for the last five years.
Truck Washdown Service: Glacier Gold will provide a truck washdown service area at the composting
site for use by the City, at no charge to the City. This will allow the WWTP Operators to washdown the
equipment at the composting facility reducing pungent odors and fugitive biosolids from blowing out of
the back of an empty truck while traveling on the Highway.
Physical Characteristics: The sludge delivered to Glacier Gold by the City will be dewatered between
13% and 20% solids content. The previous contract stated it will be dewatered to 20% solids content.
The sludge's solids content is 15% for Kalispell, and has been since 1993. This change doesn't affect
Glacier Gold; it simply changes the contract to match Kalispell's sludge physical characteristics.
Testing: Removed the requirement for special monthly analysis for zinc. The City has proven through
21 years of monthly testing that Zinc is not a paramount of concern. Monthly Zinc sampling is not a
requirement of EPA, hence Glacier Gold conceded with the removal of the monthly zinc sampling
requirement. The City will continue to perform the quarterly zinc sampling per the EPA requirements.
RECOMMENDATION: Approve the Sludge Management Agreement with Glacier Gold for a five year
term to expire on March 31, 2019. Public Works and the City Attorney have reviewed the agreement and
have found it to be satisfactory.
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
19
201 ]'Avenue Easy P.O. Box 1997, Kalispell, MT 59903 —Phone (406)758-7720— Fax (406)758.7831, www.kalisnell.corn
DATE: April 2, 2014
TO: Doug Russell, City Manager
FROM: Susie Turner, P.E., Public Works Directo
RE: 2014 Update -Sewage Sludge Management Report
The following summarizes the Kalispell WWTP sludge generation, sludge handling, disposal,
permit requirements, and management alternatives.
Sludge Generation:
Wastewater treatment plants generate two main products; the liquid stream or effluent and the
solid stream or sewage sludge. Kalispell's Biological Nutrient Removal (BNR) plant ultimately
removes the phosphorus from the sewage through the sewage sludge removal. The sewage
sludge or biosolids product is thickened and hauled to Glacier Gold Compost and the Flathead
County Solid Waste landfill. The sludge is 80% undigested and 20% digested, therefore
containing a high count of fecal coliform bacteria. Because of the high pathogen count the
sewage sludge generated by Kalispell are classified as Class B sludge per the EPA Standards for
Use or Disposal of Sewage Sludge. Class B sludge has limited disposal application methods and
disposal site restrictions onto which Class B sewage sludge can be applied.
Kalispell's BNR treatment process uses microbes to uptake phosphorus in the bioreactors. A
percentage of the microbes from the bioreactors are returned to the activated sludge after
secondary clarification and used as seed for new influent treatment, the remaining percentage of
the microbes containing the phosphorus are "wasted" and sent to the solids processing. The
waste sludge is thickened with a polymer, pressed though a belt filter press, and conveyed into
one of three dump trucks. Sewage sludge is typically pressed and hauled daily; Monday through
Thursday, Saturday, and Sunday to the disposal facilities. Sewage sludge is only stored on site in
the trucks for minimal hours at a time to optimize odor control and because there is not a storage
area for sewage sludge at the WWTP. In a two week period 7 to 13 truckloads of sewage sludge
are disposed of at permitted facilities. The range varies depending on the time of year and
increasing flows to the WWTP. Table 1 summarizes the amount of sewage sludge produced and
disposed from 2011 to 2013.
Table 1: Slud a Quantity Summarization
2011
2012
2013
Glacier
Flathead
Glacier
Flathead
Glacier
Flathead
Gold
Landfill
Totals
Gold
Landfill
Totals
Gold
Landfill
Totals
Tipping
Fee
$227.53
$31.05
$232.94
$31.05
$237.83
$31.05
($/ton)
((per dry ton)
r wet ton
((per dry Ion)(per
wet Ion
((per dry ton)
er wet ton
Wet Weight
3,348.71
763.74
4112.45
3,312.24
758.11
4,070.35
3,361.01
647.12
4,008.13
tons
Dry Weight
502.31
114.56
616.87
496.84
113.72
610.56
504.15
97.07
601.22
tons
Tipping
Fee
$114,290.59
$23,714.13
$138,004.72
$115,733.91
$23,539.32
$139,273.23
$119,901.99
$20,093.08
Totals
I139,995.07
# of truck
233
51
284
224
51
275
229
43
272
trips
Glacier Gold Composite charges a tipping fee using $ per dry ton.
Flathead Landfill charges a tipping fee base $31.05 per wet ton, using an average percent solid of 151/o the average 2011 to 2013 cost is $207
Costs shown are calculated using 15% total solids.
Permitting:
Sewage sludge in Montana is regulated through Region 8 EPA under 40 CFR 503 regulations
through a general permit for facilities and operations that generate, treat, use, or dispose of sewage
sludge by means of land application, landfill, and surface disposal.
Kalispell's current EPA Permit, MTG-650010, is effective until May 12, 2018. The City is
permitted to dispose of sewage sludge at Flathead County Landfill, Glacier Gold Compost, and
the 40 acre disposal site. Only digester solids are allowed to be disposed of on the 40 acre site. The
EPA permit requires an application and prior approval to use the same site for a different purpose
or to establish a new site.
Kalispell is currently permitted by EPA for:
1. Category 1. Facilities that generate or partially treat sewage sludge (biosolids) but do not
use/dispose of sewage sludge. The sewage is sent elsewhere for final treatment and
use/disposal.
a. Category 1 coverage is to dispose of Kalispell's sewage sludge at Glacier Gold
Compost.
2. Category 2. Facilities that use/dispose of sewage sludge and may also generate and/or treat
sewage sludge but do not use/dispose of sewage sludge. Facilities/operations that treat
sewage sludge and have someone else use/dispose of the sewage sludge without further
treatment. The sewage is sent elsewhere for final treatment and use/disposal.
a. Subcategory 2.a coverage is for operations that land apply sewage sludge and may
also generate and/or treat sewage sludge. This category allows land application of
digested sewage sludge on the 40 acre disposal site.
b. Subcategory 2.b coverage is for operations that landfill sewage sludge and may also
generate and/or treat sewage sludge. This category allows the disposal of sewage
sludge at the Flathead County Landfill.
2
Disposal sites and management practices are restricted by the type of sewage sludge generated
and treated by the WWTP. The sewage sludge generated and treated from the Kalispell WWTP
is classified as Class B. The sludge is 80% undigested and 20% digested, therefore containing a
high count of fecal coliform bacteria. Currently the Class B requirements are being met for
pathogen and vector attraction reduction for the applications on the 40 acre site and for the
Flathead County Landfill disposal site. Glacier Gold Compost uses Kalispell's Class B sewage
sludge and processes it further to generate sludge waste that meets a Class A classification. The
Class A classifications allows Glacier Gold to use the sewage sludge in a product which can be
sold to the public for land applications.
As a generator of sewage sludge, the City is required by permit to ensure the sludge is properly
being managed and disposed in the permitted offsite treatment/disposal facilities. The
treatment/disposal facilities are required to meet all the requirements including sampling,
handling, and treatment methods, and reports outlined in EPA 40 CFR Part 257, 404, and 503
regulations.
Sampling and analysis is a component of the EPA permit. Parameter concentrations from
routine sampling are analyzed and compared to the allowed concentrations provided in EPA 40
CFR 503. Table 2 summarizes the sampling parameters and frequencies to meet Class B
disposal requirements.
Table 2: Sewage Slud a Sampling Parameters and Frequency
Site
Parameter
Frequency
Cost
Notes
Glacier Gold
TCLI' Metals
Yearly
$1600
Total Metals
Quarterly
$275
Fecal Coliform Count
Yearly
Glacier Gold's Expense
Zinc
Monthly
$75
(will be eliminated with new
a reement)
% Total Solids
Every Load
Performed at WWTP
Paint Filler Test
Yearly
Performed at WWTP
Flathead County
Landfill (FCL)
TCLP Metals
Yearly
$1600
Frequency is subject to change by
FCL if more loads are sent to
landfill
Total Metals
Quarterly
$275
% Total Solids
Every Load
Performed at WWTP
Paint Filter Test
Yearly
Performed at WWTP
40 Acre Site
Total Metals
Upon Application
$275
Typically clean Digesters once
every 5 years,
Fecal Coliform Count
Upon Application
$50
Mercury
Upon Application
$10
Ammonia
Upon Application
$15
Nitrate
Upon Application
$25
Total K'eldahl Nitrogen
Upon Application
$30
Total Solids
Upon Application
$20
Paint Filter Test
Upon Application
Performed at WWTP
Record keeping and reporting are also components of the EPA permit. The following records are
required to be retained by the facility generating the sludge for five years and reported annually
to EPA.
1. Concentration of each pollutant and Loading Rates listed in EPA 40 CFR 503.13
Pollutant limits
2. Certification statement
3. Description of how the Class B/A pathogen requirement are met
4. Description of how the vector attraction reduction requirements are met
5. Disposal facility's information and management practices
6. Tonnage disposed of at each disposal facility
Disposal Sites:
The City is permitted to dispose of sewage sludge at Flathead County Landfill, Glacier Gold
Compost, and the 40 acre disposal site. The following section summarized each disposal site's
method and costs.
Glacier Gold Compost:
Glacier Gold Composting is located in Olney, Montana. Kalispell's BNR plant has been
disposing sewage sludge at Glacier Gold Compost since 1993. In 1989, the City was tasked with
finding a place to dispose of the undigested sewage sludge to meet DEQ and EPA sewage sludge
disposal permit requirements. Studies were performed on alternative disposals sites and
methods, and ultimately the City partnered with Glacier Gold Composting for the disposal and
use of a local compost facility.
The City uses Glacier Gold Composting as the primary method of disposal for sewage sludge.
Delivery to Olney is 70 miles round trip and takes an Operator two (2) hours to deliver the
sewage sludge and return to the Kalispell WWTP. Glacier Gold Compost receives Kalispell's
Class B sewage sludge, incorporates the sludge into the compost process, and produce a Class A
sludge waste or compost product acceptable for public applications. The City does not
participate in any of the operations at Glacier Gold to further enhance the sewage sludge to the
Class A product. Sampling, handling, process methods, and final disposal or product distribution
is the responsibility of Glacier Gold Composting.
The City and Glacier Gold Compost have a sludge management agreement which ensures the
City can dispose of 600 dry tons annually. The City delivers sewage sludge to Glacier Gold
Compost on average 5 to 7 times per week. Table 3 summarizes the annual sewage sludge
disposed at Glacier Gold Compost and the associated costs for 2013.
Table 3: 2013 Glacier Gold Annual Delivery and Disposal Cost
Wet
Dry
Tipping
Delivery
Weight
Weight
Fee (per
Disposal
Cost
Delivery
tons
tons
dry ton
Cost
$/tri
Trips
Cost
Total Cost
Glacier
Gold
3,361.01
504.15
$237.83
$119,901.99
$124.13
229
$28,425.77
$148,327.76
Tipping fee is based on $/dry ton, percent solids are calculated
by the WWTP prior to delivery to Glacier Gold, analysis costs are omitted
Delivery cost is based on a 70 mile round trip, a 2.0 hour drive
time, and include employee wages
Flathead County Landfill:
In 2004, City Council requested a backup option for sewage sludge disposal sites. The second
disposal option request was due to the City reaching the yearly capacity agreement with Glacier
Gold Compost and as a good management practice. The Flathead County Landfill was added to
the list of Kalispell's sewage sludge disposal sites and the City's EPA permit was changed to allow
coverage for sewage sludge disposal at landfills. The landfill accepts one Load per day of sewage
sludge during the week.
0
Montana landfills are regulated under Administrative Rules contained in 17.50.501-542. Montana
DEQ is the primacy agency that regulates landfills. Flathead County Landfill is regulated as a
Class II landfill and able to receive solid wastes outlined in FCR 17.50.503, Waste Groups.
Undigested sewage sludge is not described in the list; only digested sewage treatment sludge is
included as acceptable. The current Flathead Solid Waste Manager is aware of the regulations and
has accommodated Kalispell's weekly load of sewage sludge. The Manager has always been
upfront with the City about the limited receiving and management capabilities due to the
Kalispell's sludge percent solids, classification, weather conditions, and the amount of garbage
received at the landfill. As with all regulated facilities, the County is obligated to maintain landfill
permit compliance and because of Kalispell's Class B classifications, the landfills ability to accept
the waste is subject to change by regulating authorities.
Currently, one load per week of sewage sludge is delivered to the landfill for disposal. The landfill
manages the sewage sludge by mixing it with the layering of the garbage. Kalispell's Class B
classification requires the sewage sludge applied to the landfill to be incorporated and covered
within 24 hours of receiving the waste. Class B sludge cannot be used as landfill cover due to the
high pathogen count. Table 4 summarizes the annual sewage sludge disposed at the Flathead Count
Landfill and the associated costs for 2013.
Table 4: 2013 Flathead County Annual Delivery and Disposal Cost
Wet
Dry
Tipping
Delivery
Weight
Weight
Fee {per
Disposal
Cost
Delivery
tons
tons
wet ton
Cost
$/tri
Trips
Cost
Total Cost
Flathead
County
647.12
97.07
$31.05
$20,093.08
$51.06
43
$2,195.58
$22,288.66
Landfill
Tipping fee is based on $31.051wet ton, analysis costs are omitted
Delivery cost is based on a 20 mile round trip, a 1 hour drive time, and include employee wages
40 Acre Disposal Site:
The 40 acre disposal site is located south of Kalispell off Cemetery Road. The property was
acquired by the City in conjunction with EPA in the 1970s as a site to dispose sewage sludge.
EPA owns 75% of the property and regulates the land use management practices. The City uses
the site for land disposal of the digester sludge. Digester sludge has a low total solids percentage
and contains plastics, paper products, hair, metal, grit and other insoluble inorganic materials.
Because of the "junk" content in digester sludge, it is impossible to run it through the plant
dewatering equipment and therefore cannot be disposed of at the Flathead County Landfill or
Glacier Gold Compost. The digesters are typically cleaned by a private company, once every 5
years at a cost of $18,000 and the sludge waste is applied to the 40 acre site. WWTP Operators
disk the sludge into the soil within six hours of application.
Management Comparison:
WWTPs generate sewage sludge as a part of the treatment process and are responsible for the
disposal of the waste. There are multiple alternatives in which sewage sludge disposal can be
managed. The disposal management has to meet federal code regulations and provide constant
disposal capacity for the generation of the sewage sludge.
5
Glacier Gold Compost currently is the City's primary alternative for sewage sludge disposal. The
products created from Glacier Gold are 100% dependent on the sewage sludge delivered by the
City of Kalispell. Glacier Gold Compost meets all the requirements for a disposal facility
accepting Class B sewage sludge and because the BNR process creates a waste sludge that is rich
in nutrients Glacier Gold Compost provides the opportunity for beneficial reuse of the sludge
byproduct from the WWTP. To ensure permit compliance with sludge disposal, Glacier Gold is a
year round reliant source that accepts the liability of Kalispell's generated sludge waste. The City
and Glacier Gold's contract limits disposal to 600 dry tons per year of sewage sludge. Over the
past 5 years the City has averaged 532 dry tons per year. As the City's sewer influent increases
and subsequently the sewage sludge produced increases alternatives will need to be studied for
additional sewage disposal.
Flathead County Landfill provides a backup site for disposal of the Class B sludge waste which
meets the permit requirements. Flathead County Landfill has not been used as the primary
disposal site because of the landfills seasonal operation management limitations for Class B
sewage sludge, landfill regulations, and the landfill does not provide the dependable year round
disposal capability.
Management costs should also be taken into consideration to evaluate cost savings and
feasibilities for sewage sludge disposal. Table 5 provides an example that compares the costs for
current disposal methods and increased disposal to the Flathead County Landfill using the 2013
tipping rates.
Table 5: 2013 Management Cost vs. Increase Disposal Cost to Flathead County Landfill
Wet
Dry
Delivery
Weight
Weight
Tipping
Disposal
Cost
Delivery
Analysis
tons
tons
Fee
Cost
$/tri
Trips
Cost
Cost
Total Cost
Glacier Gold
3,361.01
504.15
$237,83
(per dry ton)
$119,901.99
$124.13
229
$28,425.77
$3,300.00*
$151,627.76
Flathead
County Landfill
647.12
97.07
$31.05
(per wet ton)
$20,093.08
$51.06
43
$2,195,58
$22,288.66
Total
4,008.13
601.22
$139,995.07
272
$30,621.35
$3,300.00*
$173,916.42
Flathead
County Landfill
4,008.13
$31.05
(per wet ton)
$124,452.43
$51.06
272
$13,888.32
$7500**T$145,840.75
Tipping fee for Glacier Gold is based on $/dry ton, 15% percent solids was used to calculate the cost. Delivery cost is based on a 70 mile round trip, a 2 hour
drive time, and includes employee wages.
Tipping fee for FCL is based on $/wet ton. Delivery cost is based on 1 hour drive time and a 20 mile round trip.
*The same analysis at the same frequency was required for Glacier Gold and the landfill in 2013
**Assumed four TCLP analysis requirements for landfill, need verification on frequency and other sampling requirements from DEQ, EPA, and the landfill
Other alternatives for sludge waste disposal can be evaluated for cost saving and feasibility in a
cost benefit study. Some of those alternatives are listed below:
■ Alternative 1 — Generate Class A sludge, then surface apply or land application at a reduced
tipping fee. Class A production involves mechanical complexity, high capital cost, extensive
operation and maintenance requirement, storage facility, and a large quantity of land.
Alternative 2 — Inject digested sludge on other farm land. Requires large quantity of land,
storage facility, and Class A sludge generation or complete digested Class B sludge
generation.
Alternative 3 — Purchase an existing composting operation or develop a Municipal
composting facility.
Alternative 4 — Compost dewatered sludge at the Flathead County Landfill. Involves
participation, capital costs, and operational costs for County Landfill.
7
SLUDGE MANAGEMENT AGREEMENT
THIS AGREEMENT, made this , day of _ , 20 . ,
by and between the City of Kalispell, a municipal corporation, hereinafter called "CITY"
and Glacier Gold L.L.C., hereinafter called "GLACIER GOLD".
WHEREAS, the CITY operates a secondary sewage treatment plant for municipal
wastewater that produces an end product of dewatered sludge; and
WHEREAS, GLACIER GOLD has in its priced proposal alternative, dated
January 26, 2004, attached hereto and made a part of this Agreement, requested the
opportunity to obtain the sludge for its product line, and intends to use the sludge, along
with certain bulking agents, to produce a man-made humus which GLACIER GOLD
markets as an organic fertilizer and soil conditioner; and
WHEREAS, the parties are desirous of entering into an agreement whereby the
CITY provides to GLACIER GOLD the dewatered sludge.
WITNESSETH:
ARTICLE I
SERVICES AND CHARGES
1. SLUDGE REMOVAL AND DELIVERY.
The CITY will provide to GLACIER GOLD and GLACIER GOLD will
accept all the dewatered sludge produced at the CITY'S wastewater
treatment plant.
The annual delivery of sludge shall not exceed 600 dry tons per year
unless revised by mutual consent in an amendment to this Agreement. The
CITY shall supply all labor, equipment, materials, fuel, repairs, equipment
operators, supervisory personnel required to deliver the sludge to
GLACIER GOLD'S composting operation located in Olney, Montana and
to deposit the sludge as directed by GLACIER GOLD personnel on site.
2. CHARGES/ADJUSTMENTS.
The CITY shall pay to GLACIER GOLD, two hundred dollars thirty eight
dollars ($238) per dry ton of sludge delivered to and accepted by
GLACIER GOLD.
1
3. TRUCK WASHDOWN SERVICE.
GLACIER GOLD shall provide truck washdown service at its composting
operation site for use by CITY equipment, at no cost to the CITY.
ARTICLE II
SLUDGE CHARACTERISTICS
1. PHYSICAL CHARACTERISTICS.
The sludge delivered to GLACIER GOLD by the CITY shall typically be
dewatered between thirteen percent (13%) to twenty percent (20%) solids
content. Seasonal variations in percent solids may occur but at no time
shall sludge be delivered that is not suitable for use by GLACIER GOLD.
2. CHEMICAL CHARACTERISTICS.
The CITY shall not deliver to GLACIER GOLD any sludge where test
results of the sludge exceed maximum contaminant limits established by
the EPA or State Water Quality Bureau. If the sludge contains any
physical, chemical or organic chemical characteristics that render it
unsuitable for use by GLACIER GOLD, GLACIER GOLD has the right
to refuse acceptance of the sludge. The CITY agrees to notify GLACIER
GOLD within 24 hours of any test results which indicate the sludge is
unsuitable for GLACIER GOLD'S use.
ARTICLE III
MEASUREMENT AND PAYMENT
1. FORMULA FOR DETERMINING DRY TON.
For purposes of this Agreement the computation of dry tons shall be
determined as follows:
Dry ton = % of solids x wet ton
2. MAINTENANCE OF RECORDS.
CITY will maintain accurate records of tonnages delivered to GLACIER
GOLD in a form adopted by the CITY. CITY shall provide records on
2
tonnage delivered to GLACIER GOLD with each billing cycle. These
records will form the basis of payment under Article I of this Agreement.
3. LOADING MEASUREMENT.
The CITY shall determine the tonnage of sludge to be hauled by all trucks.
Tonnage delivered to GLACIER GOLD shall be determined by weighing
trucks delivering sludge when full and then weighing truck when empty.
All weighing shall be done on certified scales supplied by GLACIER
GOLD. Duplicates of weight tickets shall be supplied to GLACIER
GOLD.
4. INVOICE SUBMISSION AND PAYMENT.
CITY shall pay GLACIER GOLD within thirty (30) days of receipt of
itemized invoices. The invoices shall identify the date, tonnage, and
percent of solids for each load delivered to GLACIER GOLD by the
CITY.
ARTICLE IV
SCHEDULES AND TESTING
1. SCHEDULES.
CITY and GLACIER GOLD shall develop and agree to a normal
operating schedule which will allow the CITY to efficiently operate the
wastewater treatment plant and allow GLACIER GOLD to accept the
projected volume of the sludge. Unless otherwise agreed to in writing
between the CITY and GLACIER GOLD sludge may be delivered to the
GLACIER GOLD composting facility between 8:30 a.m. and 3:30 p.m.,
Monday through Friday.
2. TESTING.
CITY will provide to GLACIER GOLD results of tests conducted on the
sludge with regard to percent total solids with each load delivered. In
addition to the information as provided in Article II, Section 2, analyses
for TKN, total Phosphorous, ammonia, nitrates and routine heavy metals
will be provided to GLACIER GOLD -on a quarterly basis. Upon written
request from GLACIER GOLD, CITY will provide GLACIER GOLD
with the results of any additional sludge tests conducted by the CITY. If
3
GLACIER GOLD conducts any test on the sludge, GLACIER GOLD
shall provide the results of such test to CITY.
ARTICLE V
PERMITS, CHANGES TO LAW
1. PERMITS.
GLACIER GOLD shall have the full responsibility and any and all
liability for meeting the terms conditions of any permits which GLACIER
GOLD must acquire relative to the program outlined in this Agreement.
GLACIER GOLD agrees to hold CITY harmless and indemnify the CITY
with regard to GLACIER GOLD'S lack of compliance or any other reason
which results in an action of regulatory enforcement or litigation relative
to GLACIER GOLD'S program and ultimate disposition of GLACIER
GOLD'S end product. GLACIER GOLD shall acquire and maintain in
continuous effect liability insurance in the amount specified in Article VI.
GLACIER GOLD must be in continuous compliance with the provisions
of any permit or law applicable to its business operations, or it will be in
default with the provisions of this Agreement.
2. CHANGES TO LAW.
The price agreed to above is based on GLACIER GOLD'S anticipated
compliance with current Federal, State, and Local laws and permitting
requirements. In the event that there are changes in such laws, permitting
requirements, regulations, or local interpretation of the laws or regulations
which impose additional or lesser costs which are attributable to the
characteristics of the sludge, either the CITY or GLACIER GOLD may
request that the agreed to price may be renegotiated, stating in detail the
reason or justifications for the request. Such request for additional or
lesser sums must be in writing. In the event agreement of a revised amount
cannot be reached within sixty (60) days of receipt of such request, either
party may terminate this Agreement with ninety (90) days written notice.
ARTICLE VI
INSURANCE, INDEMNIFICATION, AND BONDING
1. INSURANCE REQUIREMENTS.
:d
Without limiting GLACIER GOLD'S indemnification of the CITY,
GLACIER GOLD shall provide and maintain at its own expense during
the terms of this Agreement, the following policy or policies of insurance
covering its operations hereunder, whether such operations be by
GLACIER GOLD or by any subcontractor or by anyone for whose acts
any of them may be liable. Such insurance shall be secured through a
carrier satisfactory to the CITY. Evidence of such insurance satisfactory
to the CITY shall be delivered to the CITY on or before the effective date
of this Agreement, and shall contain the express condition that the CITY is
to be given written notice at least thirty (30) days in advance of
cancellation, modification, expiration, or termination of any policy of
insurance. The CITY shall be named as an additional named insured on
all policies except worker's compensation.
2. GENERAL LIABILITY.
Such policy of insurance shall include, but not be limited to,
comprehensive general liability with explosion, collapse, and underground
hazards, contractual liability, products/completed operations and
independent contractor's endorsements, with a combined single limit not
less than $750,000.00 per claim and $1,500,000.00 per occurrence. Such
insurance shall be primary to and not contributing with any other
insurance maintained by the CITY and shall name the CITY as additional
insured.
3. WORKER'S COMPENSATION.
GLACIER GOLD'S employees shall be covered by Worker's
Compensation insurance in an amount and form to meet all applicable
requirements of the Labor Code of the State of Montana.
4. FAILURE TO PROCURE INSURANCE.
In case of failure on the part of GLACIER GOLD to procure or maintain
required insurance, GLACIER GOLD shall be deemed to be in default of
this Agreement. CITY shall notify GLACIER GOLD of such default and
GLACIER GOLD shall within 30 days of such notice of default, take
corrective action to rectify such default by procuring and maintaining the
required insurance.
5. INDEMNIFICATION.
GLACIER GOLD agrees to indemnify, defend and save the CITY, its
agents, elected and appointed officials, and employees from suppliers', or
agents' operations, or anyone directly or indirectly employed by any to
5
them, or their services, from and against any and all liability, expense,
including defense costs and legal fees (including costs and attorney's fees
on appeal), and claims for damages of any nature whatsoever, including,
but not limited to bodily injury, death, personal injury, or property damage
arising from or connected to GLACIER GOLDS, its subcontractors',
suppliers', or agents' operations, or their service hereunder, including any
worker's compensation suits, liability, or expense arising from or
connected with services by any person pursuant to this Agreement. The
CITY shall specifically be indemnified and held harmless of any liability
as a result of the sale or use of the sludge produced by the CITY in any
form whatsoever, except when the liability is occasioned by the CITY'S
negligence or failure to inform as required in Article II, Section 2, supra.
ARTICLE VII
TERM OF AGREEMENT
1. TERM.
The initial term of this Agreement is for a five (5) year period from April
1, 2014 to March 31, 2019. The Agreement may be extended for an
additional five (5) years by mutual agreement in writing by both parties.
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.
2. TERMINATION.
a) All terms and conditions of this Agreement are considered
material, and failure to perform any of the terms and conditions on the part
of either party shall be considered a breach of this Agreement. In the
event either party to this Agreement breaches the Agreement, the party not
in breach of this Agreement shall notify the breaching party in writing of
the nature of such breach. Within ten (10) days of said notice the
breaching party shall correct the breach.
b) In the event the breaching party fails to correct the breach, as
provided in (a) above, the party not in breach, without further notice, shall
have the following rights and remedies, which may be exercised singly or
in combination:
N.
i) The right to declare this Agreement, together with all rights
granted thereunder, terminated, effective immediately;
ii) The right to contract with others to perform the services
otherwise to be performed by the breaching party, or to perform
such services itself; and
iii) Any and all rights under federal laws and the laws of the
State of Montana.
c) Notwithstanding paragraphs (a) and (b), supra, the CITY shall
have the right to terminate this Agreement if GLACIER GOLD fails in
any consecutive 30 day period to accept sludge under the terms of this
Agreement.
d) Notwithstanding paragraphs (a), (b), and (c), supra, GLACIER
GOLD, upon twelve (12) months written notice, shall have the right to
terminate this Agreement for the business reason stated in the Proposal
Alternative 1, attached hereto, and for no other reason except as specified
in Article V, Paragraph 2.
ARTICLE VIII
MISCELLANEOUS
1. BINDING EFFECT.
This Agreement is binding upon the heirs, successors, administrators,
executors, personal representatives and assigns of the parties hereto.
2. ENTIRE AGREEMENT.
This Agreement and Proposal Alternative 1, attached hereto, comprise the
entire agreement between the parties. This Agreement completely
replaces any and all prior agreements of any nature whatsoever. Any
additional agreement hereafter made shall be effective to alter, change,
modify or discharge this Agreement in whole or in part unless any
additional agreement is in writing and signed by the parties hereto.
3. SEVERABILITY.
If any article, section, subsection, sentence, clause, phrase or word of this
Agreement is ever for any reason held to be invalid by a court, the parties
hereby agree that such decision shall not affect the validity of the
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remainder of this Agreement, and the parties agree that the remaining
provisions shall remain in full force and effect.
4. AFFIRMATIVE ACTION POLICY.
Contractors, subcontractors, subgrantees, and other firms doing business
with the CITY or any agency connected with the CITY must be in
compliance with the CITY'S Affirmative Action Plan and Title 49, MCA
or forfeit the right to continue such business dealings.
5. NON-DISCRIMINATION.
In connection with the performance of work and services under this
Agreement, the contractor agrees to comply with the provisions of the law
and Constitution of the State of Montana. Contractor further agrees to
comply with the Civil Rights Act of 1964 (78 Stat. 242), the regulations of
the Department of Health, Education and Welfare issued pursuant to the
Act, and the provisions of Executive Order 11246, Equal Opportunity,
September 24, 1965. The contractor agrees that any and all hiring by them
related to this Agreement shall be on the basis of merit and qualifications
and there shall be no discrimination on the basis of race, color, religious
creed, political ideas, gender, age, marital status, physical or mental
handicap, national origin or ancestry, by persons performing this contract.
Qualifications mean such abilities that are genuinely related to the
competent performance of the particular occupational task.
6. ATTORNEY'S FEES.
In the event either party brings a legal action under this agreement, the
prevailing party shall be entitled to its reasonable attorneys' fees and costs
in prosecuting or defending the action.
1.1
ATTEST:
CITY OF KALISPELL
CITY MANAGER
ATTEST: