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HomeMy WebLinkAbout00-185 Resolution No. 00-185 RESOLUTION AUTHORIZING EXECUTION OF AN ASSIGNMENT AND ASSUMPTION OF LIME RESIDUE AGREEMENT WITH WHEELABRATOR WATER TECHNOLOGIES, INC. AND SYNAGRO MIDWEST, INC . BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Joyce A. Parker, City Manager, and Dolonna Mecum, City Clerk, be and are hereby authorized and directed to execute an Assignment and Assumption of Lime Residue Agreement on behalf of the City of Elgin with Wheelabrator Water Technologies, Inc . and Synagro Midwest, Inc . for the assignment of the contract for removal and disposal of lime residue from BioGro to Synagro Midwest, Inc . , a copy of which is attached hereto and made a part hereof by reference . s/ Ed Schock Ed Schock, Mayor Presented: August 9, 2000 Adopted: August 9, 2000 Omnibus Vote : Yeas 7 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk ASSIGNMENT AND ASSUMPTION OF LIME RESIDUE AGREEMENT This Assignment and Assumption Agreement is hereby made and entered into this )q day of 40.,4c,o , 2000 , by and betWeenWHE$LABRATOR WATER TECHNOLOGIES INC. a Mkryland corporation authorized to do business in the State of Illinois (hereinafter referred to as "Assignor") and SYNAGRO MIDWEST INC. , a Delaware corporation also authorized to do business in the State of Illinois (hereinafter referred to as "Assignee" ) and the CITY OF ELGIN, a municipal corporation organized under the laws of the State of Illinois (hereinafter referred to as "City" ) . WHEREAS, the City and "Bio-Gro" , a division of Assignor have entered into a contract on January 31, 2000, for the removal of lime residue as specified in the City' s RFP Number 99-113 and the other documents made a part of said contract (hereinafter referred to as the "Lime Residue Agreement" . WHEREAS, Assignor and Assignee have entered into an agreement whereby Assignee 'as acquiring the "Bio-Gro Division" of Assignor; and "parent WHEREAS, Assignor and Assignee desire to execute and deliver this Assignment and Assumption of the Lime Residue Agreement to effect the assignment of Assignor ' s interest in the Lime Residue Agreement to the Assignee; and WHEREAS, City has approved the assignment of the Assignor' s interest in the Lime Residue Agreement to the Assignee by virtue of a resolution passed by the City Council of the City of Elgin on /105..G, 1 , 2000 . NOW, THEREFORE, the parties hereto agree as follows : 1 . Assignor hereby assigns to Assignee all of its right, title and interest in and to the Lime Residue Agreement with City. 2 . Assignee hereby assumes all of Assignor' s obligations under the subject Lime Residue agreement . Assignee agrees that it is liable for all obligations to the City arising under the Lime Residue Agreement . 3 . The City hereby consents to the Assignment and Assumption of the Lime Residue Agreement as provided herein. 4 . This Assignment and Assumption Agreement shall be deemed effective as of / , 2000 . IN WITNESS WHEREOF, the parties hereto have executed this Assignment and Assumption Agreement as of the date first written above . ASSIGNOR: ASSIGNEE : WNEELABRATOR WATER TECHNOLOGIES SYNAGRO MIDWEST , INC . IN BY k ( " By David M. Beavens Alvin L. Thomas Its Vice President Its Vice President, General Counsel CI ' OF ELGIN Aill By .. _ irtA Jo e A, Par er Ci y Manager Attest : City C erk Agenda Item No. City of Elgin g ter. �,.Ig .400 E Ili L4 {:!I June 2, 2000 Ittp Is III Ga ,�n ; ofl , !i1,1111 run ; I{ N rEEll i1.1111 • TO: Mayor and Members of the City Council FINANCIALLY STABLE CIT Y GOVERNMENT EFFICIENT SERVICES. AND QUALITY INFRASTRUCTURE FROM: Joyce A. Parker, City Manager SUBJECT: Sale of BioGro by Waste Management PURPOSE The purpose of this memo is to give the Mayor and the City Council information to consider agreeing to the assignment of a contract with BioGro to Synagro Technologies. BACKGROUND At their February 9, 2000 meeting, the City Council passed a resolution authorizing execution of an agreement with Wheelabrator Water Technologies, Inc. , a Waste Management Company, BioGro Division, for removal and disposal of lime residue at the Riverside Water Treatment Plant. On May 1, 2000, the City received a letter from Waste Management announcing that BioGro was being sold to Synagro Technologies. The announcement stated that this sale would have no impact on Biogro' s operations or project commitments . Staff has checked Synagro' s references and has found their performance with other clients to be satisfactory. Article VII of the agreement between BioGro and the City states that no interest in the agreement will be assigned, sold or transferred without the written consent of the City. While the contract is not technically being assigned, it is recommended that the City receive from Synagro an explicit, written acceptance of the City' s contract. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. rik • 1 ' •- Sale of BioGro by Waste Management June 2, 2000 Page 2 lykFINANCIAL IMPACT None. Future payments under the transferred agreement will go to Synagro rather than BioGro. LEGAL IMPACT t40/ - None. The Legal Department has prepared an Assignment Agreement, attached. ALTERNATIVES None. RECOMMENDATION It is recommended that the City Council approve assignment of the contract for removal and disposal of lime residue from BioGro to Synagro. / 1, Re ctfully submitt . 62 ' alL)L-- Jo e A. Parker City Manager • erw I ``0 of e4c 1 iiii f Q ti Agenda Item No. City of Elgin g tillK February 5, 1997 TO: Mayor and Members of the City Council FROM: Robert O. Malm, Interim City Manager SUBJECT: Award of Contract for Removal and Disposal of Lime Residue PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider in awarding three successive one-year contracts to Wheelabrator r Water Technologies, Inc. , BioGro Division, for the removal and land application of the lime residue generated by the water treatment processes . BACKGROUND The Riverside Water Treatment Plant produces lime residue as a by-product of the water softening and clarification reac- tions . The material, consisting mostly of calcium carbonate, is pumped to the storage lagoons near South McLean Boulevard and Bypass Route 20 . The storage lagoons are almost at capacity and, therefore, continual removal and disposal of some of the material is necessary. Water Department staff requested proposals for this work since the former contract with Browning-Ferris Industries expired on December 31, 1996 . The request for proposals included several options for disposal of the lime residue to allow for the evaluation of different methods . Four firms submitted proposals; two addressed landfilling the material and three land applica- tion. A tabulation of the proposals is attached. Water Department staff evaluated and ranked the proposals according to several categories including feasibility, clari- ty, experience, available equipment, familiarity with local areas and conditions, and total cost. A summary of the evaluations is attached. The proposal from Wheelabrator was ranked first in all categories . Its cost for the second and third years is also lowest. Wheelabrator has a facility in South Elgin and also received a good recommendation from the Fox River Water Reclamation District staff, who recently awarded the company a five-year contract. CITY OF ELGIN WATER DEPARTMENT Bid Tabulation Sheet For Lime Residue Removal January 1997 Contractor Bio Gro A&J Cartage T&W Edmier Enterprise Env. Disposal Method Land Application Land Application Land Fill Land Application Year One Price $46.50 $59.50 $66.25 $57.85 Year Two Price $47.90 $59.50 $69.75 $62.75 Year Three Price $49.33 $59.50 $73.25 $65.75 The Prices are based on $/Dry Ton r CITY OF ELGIN WATER DEPARTMENT Tabulation of Evaluation Proposals for Lime Residue Removal .. . . . ._.... .. ..... .. . ........... Evaluator Total Points Awarded Bio Gro A&J Cartage Environmental T & W Edmier Engineering Peter L. Bityou 1775 1515 1385 1270 Kurt Eshelman 2155 1815 1965 1845• Paul Miller 2115 1700 1250 815 Maximum Possible Points 2175 • r \0 OF ft_ L . /l o .. r Agenda Item No.• , „ ail,,. City of Elgin n 1,,,,,tk.; r February 5, 1997 TO: Mayor and Members of the City Council FROM: Robert 0. Malm, Interim City Manager SUBJECT: Award of Contract for Removal and Disposal of Lime Residue PURPOSE The purpose of this memorandum is to provide the Mayor and members of the City Council with information to consider in awarding three successive one-year contracts to Wheelabrator Water Technologies, Inc. , BioGro Division, for the removal rk and land application of the lime residue generated by the water treatment processes . BACKGROUND The Riverside Water Treatment Plant produces lime residue as a by-product of the water softening and clarification reac- tions . The material, consisting mostly of calcium carbonate, is pumped to the storage lagoons near South McLean Boulevard and Bypass Route 20 . The storage lagoons are almost at capacity and, therefore, continual removal and disposal of some of the material is necessary. Water Department staff requested proposals for this work since the former contract with Browning-Ferris Industries expired on December 31, 1996 . The request for proposals included several options for disposal of the lime residue to allow for the evaluation of different methods . Four firms submitted proposals; two addressed landfilling the material and three land applica- tion. A tabulation of the proposals is attached. Water Department staff evaluated and ranked the proposals according to several categories including feasibility, clari- ty, experience, available equipment, familiarity with local areas and conditions, and total cost. A summary of the evaluations is attached. The proposal from Wheelabrator was ranked first in all categories . Its cost for the second and third years is also lowest. Wheelabrator has a facility in South Elgin and also received a good recommendation from the Fox River Water Reclamation District staff, who recently awarded the company a five-year contract. k COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. FINANCIAL IMPACT The contract with Wheelabrator totals $697 ,500 for 1997 . The Water Department' s budget for 1997 contains $760,000 under appropriation #401-4002-771 .45-99 , Other Miscellaneous Services, for the first year' s contract. The second and third years of the contract will be included as part of the budget process in those respective years but are accommodated within the adopted Five-Year Financial Plan. LEGAL IMPACT None. ALTERNATIVES The option of landfilling the lime residue was shown to be more costly than land application, as indicated in the con- tractor' s proposals . The beneficial reuse of this material in a land application program is currently the most feasible option. No proposals for other uses, such as flue-gas desulfurization of coal-fired furnaces, recalcification of the lime, or synthetic topsoil/soil-blending operations, were received. These options may be explored in the future if interest is shown. RECOMMENDATION It is recommended that the City Council approve the award of a contract to Wheelabrator Technologies, Inc . , BioGro Divi- sion, for the removal and disposal of a minimum of 15, 000 dry tons of lime residue at a cost of $46 .50 per dry ton. Respectfully submitted, ` Il Ldcr E . Deibert D' - • of Water Department �C 62Z `vs ---- Robe t 0. Malm Interim City Manager ROM:LED:PTM: jm 01140117 .497 Attachment