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HomeMy WebLinkAbout06-09-17 Agenda PacketTHE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org MWMC MEETING AGENDA Friday, June 9, 2017 @ 7:30 a.m. City of Springfield City Hall, Library Meeting Room 225 Fifth St., Springfield, OR 97477 7:30 – 7:35 I. ROLL CALL 7:35 – 7:40 II. CONSENT CALENDAR a. MWMC 5/12/17 Meeting Minutes b. Ratification of the Regional Wastewater Program Budget and Capital Improvements Program for FY 2017-18 Action Requested: By motion, approve the Consent Calendar 7:40 – 7:45 III. PUBLIC COMMENT Request to Speak slips are available at the sign-in desk. Please present request slips to the MWMC Secretary. 7:45 – 8:10 IV. FY 2017-18 INSURANCE RENEWAL . . . . . . . . . . . . . . . . . Katherine Bishop Action Requested: By motion, authorize and direct the General Manager to enter into agreements to secure property insurance coverage for the period July 1, 2017 through June 30, 2018. 8:10 – 8:30 V. POPLAR HARVEST MANAGEMENT SERVICES – BIOCYCLE FARM MU2 HARVEST P80083 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Todd Miller Action Requested: Approve, by motion, Resolution 17-09 and Resolution 17-10 8:30 – 8:55 VI. SYSTEM DEVELOPMENT CHARGES (SDCs) . . . . . . . . . . . . . . . . Matt Stouder Action Requested: Discussion and direction 8:55 – 9:05 VII. BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR 9:05 VIII. ADJOURNMENT Turn off cell phones before the meeting begins. _______________________________________________________________________________ The meeting location is wheelchair-accessible. For the hearing-impaired, an interpreter can be provided with 48-hours-notice prior to the meeting. To arrange for service, call 541-726-3694. All proceedings before the MWMC are recorded. MWMC MEETING MINUTES Friday, May 12, 2017 @ 7:30 a.m. City of Springfield City Hall, Library Meeting Room 225 Fifth St., Springfield, OR 97477 Vice-President Ruffier opened the meeting at 7:30 a.m. Roll call was taken by Kevin Kraaz. ROLL CALL Commissioners Present: Pat Farr, Doug Keeler, Walt Meyer, Joe Pishioneri (via phone conference), and Peter Ruffier Commissioners Absent: Bill Inge; City of Eugene Councilor - vacant Staff in Attendance: Meg Allocco, Jolynn Barker, Dave Breitenstein, Judy Castleman, John Huberd, K.C. Huffman (attorney), Laura Keir, Tonja Kling, Kevin Kraaz, Shawn Krueger, Barry Mays, Troy McAllister, Todd Miller, Josh Newman, Loralyn Spiro, Anette Spickard, Matt Stouder, Mark Van Eeckhout, Greg Watkins, and John Williamson Guest: Mike Brye, Camp Creek Electric CONSENT CALENDAR a. MWMC 04/14/17 Meeting Minutes MOTION: IT WAS MOVED BY COMMISSIONER KEELER WITH A SECOND BY COMMISSIONER MEYER TO APPROVE THE CONSENT CALENDAR. THE MOTION PASSED UNANIMOUSLY 5/0. PUBLIC COMMENT There was no public comment. FY 2016-17 SUPPLEMENTAL BUDGET #3A Meg Allocco, MWMC Accountant, stated that the existing budget for the O&M BIP is $14.9 million and an additional $3.9 million is needed to bring the total budget amount to $18.8 million. Staff is requesting approval of Supplemental Budget #3A in the amount of $3.9 million for the project to award the contract for the Base Bid with Deductive Alternate #2 per Commission direction at the April 14, 2017 meeting. RESOLUTION 17-06: IN THE MATTER OF APPROVAL OF THE FISCAL YEAR 2016-17 SUPPLEMENTAL BUDGET #3A MOTION: IT WAS MOVED BY COMMISSIONER MEYER WITH A SECOND BY COMMISSIONER FARR TO APPROVE RESOLUTION 17-06. THE MOTION PASSED UNANIMOUSLY 5/0. MWMC Meeting Minutes April 14, 2017 Page 2 of 10 CONSTRUCTION CONTRACT AWARD FOR OPERATIONS AND MAINTENANCE BUILDING IMPROVEMENTS PROJECT P80085 Mr. Van Eeckhout stated that he would like to request approval of Resolution 17-07 to allow for the execution of a construction contract with Wildish Building Company for the construction of the additions to the Maintenance building and the construction of a new Water Quality Lab. The total contract value will be $13,123,000 which includes the reduction of $3.4 million for the Alternative Deduct #2. He hopes to start the project in June and complete the construction early in 2019. Commissioner Ruffier said he saw no protests reported. Mr. Van Eeckhout said the Intent to Award was issued on April 14 and the seven day protest period passed without protests. Commissioner Farr asked, historically is it the case to have no protests? Mr. Van Eeckhout replied that normally the MWMC does not see protests; it is part of the MWMC’s procurement rules. Commissioner Farr said that is reflective of a deliberative process. RESOLUTION 17-07: IN THE MATTER OF DELEGATING AUTHORITY TO AWARD A CONTRACT FOR THE CONSTRUCTION OF PROJECT P80085 OPERATIONS & MAINTENANCE BUILDING IMPROVEMENTS MOTION: IT WAS MOVED BY COMMISSIONER MEYER WITH A SECOND BY COMMISSIONER KEELER TO APPROVE RESOLUTION 17-07. THE MOTION PASSED UNANIMOUSLY 5/0 RENTAL AGREEMENT FOR TEMPORARY STAFF HOUSING – P80085 Mr. Van Eeckhout stated that the southern portion of the Maintenance building will be demolished which includes office space and bathrooms. The need for space was discussed with the Maintenance staff and it was decided a 24 by 60 foot temporary construction trailer would cover their need. Staff talked to Modern Equipment out of Aumsville, Oregon, about renting a trailer. Modern provided the Industrial Source trailer and the current construction trailer at the WPCF. Mr. Van Eeckhout reached out to the Springfield School District who is currently contracted with Modern Building Systems. They contracted with Modern through a public agency purchasing co- op called King County Directors Association (KCDA). KCDA provides services for a number of public agencies within the Northwest and has a pricing agreement with Modern as well as other organizations. With this purchasing arrangement in mind we moved forward directly with Modern Building Systems. Mr. Van Eeckhout stated a draft contract has been reviewed through MWMC’s legal counsel and asked the Commission to move forward with the agreement for a 24 by 60 foot trailer for roughly 12 months with the option to continue on a per month basis, if needed. Commissioner Ruffier asked if any other alternatives had been looked into. Mr. Van Eeckhout replied they had looked at putting staff elsewhere at the plant but there was not a good alternative. Commissioner Ruffier asked what the difference is in the purchase price versus leasing. Mr. Van Eeckhout replied that 10-years-ago the MMWMC purchased the construction trailer for around $100,000. The trailer staff is looking at is used and is in the $80,000 to $90,000 range. RESOLUTION 17-08: IN THE MATTER OF DELEGATING AUTHORITY TO AWARD A LEASE AGREEMENT FOR THE RENTAL OF TEMPORARY SITE TRAILERS IN SUPPORT OF PROJECT P80085 OPERATIONS & MAINTENANCE BUILDING IMPROVEMENTS MWMC Meeting Minutes April 14, 2017 Page 3 of 10 MOTION: IT WAS MOVED BY COMMISSIONER KEELER WITH A SECOND BY COMMISSIONER FARR TO APPROVE RESOLUTION 17-08. THE MOTION PASSED UNANIMOUSLY 5/0. Commissioner Pishioneri left the meeting. PUBLIC INFORMATION PROGRAM UPDATE Loralyn Spiro and Laura Keir, Communications Coordinators, presented the annual Public Information update. The Public Information Program is guided by the MWMC’s Communication Plan (developed and finalized in 2015), and particularly by the MWMC’s Commission Goal – Key Outcome #5 as part of the annual budget. The Communication Plan contains four main strategies to reach the overall goal of increasing awareness of the MWMC and its role in the health and vitality of our community and environment. The strategies and tactics support the MWMC’s mission, vision, and values statements. The findings from the FY 2015 Community Survey helped define the overarching goal of the 2015 Communication Plan. One of the immediate steps taken to implement the plan was the continuation of the Commission’s work on strategic planning through a facilitated discussion and surveys done by both the Commission and staff. The MWMC’s mission, vision, and value statements were adopted by the Commission in August 2016 and are used in communication pieces to further explain who we are, what we do, and what is important to the partnership. Tactics: Sponsorships: Sponsorships tactic for the MWMC were added to the updated 2015 Communications Plan, The plan calls to sponsor 3-4 events a year. We’re on track with three completed and a fourth in the works. EWEB’s Run to Stay Warm – (Third year in a row) the sponsorship covers the cost of port- a-potties at the event. In addition to being listed as a sponsor on event materials and EWEB’s website, each port-a-potty has a flier displayed to raise awareness about the MWMC. The Run to Stay Warm event benefits EWEB’s Customer Care program to help income-eligible customers who are having difficulty paying their utility bills. Lane County Fair - In 2016 the MWMC sponsored the fair for the first time and will do so again in 2017. The sponsorship covers the majority of the cost of port-a-potties at the event and each port-a-potty has a flyer displayed in it. Lane County’s Home & Garden show - The MWMC once again sponsored an informational table with other agencies that are part of the P2C. E-Newsletter: The MWMC’s e-newsletter is sent out quarterly and is a great opportunity to connect with those we serve, as well as staff and partner agencies. Currently there are 141 subscribers. While the number of subscribers isn’t as high as staff would like, the average open rate for the past year was 60% and the click through rate was 26%. Both are above the desired standard of 20-25%. Staff will be promoting the newsletter sign-up and readership with the launch of the MWMC’s social media channels and on the new website that is to be launched soon. Pollution Prevention Campaign: It is a way we can help community members understand the everyday actions they can take to help improve water quality. In 2016, the MWMC partnered with MWMC Meeting Minutes April 14, 2017 Page 4 of 10 Lane County Public Health to promote the use of prescription drug drop boxes in Lane County. Bi- Mart was particularly supportive in helping to post it in all their Lane County stores. The Annual Report: It has been completely moved over to a digital format with the second digital version released the beginning of April 2017. The focus of the annual report is in three parts: 1) Highlight successes from previous year; 2) Highlight upcoming significant initiatives and/or projects; 3) Report financials from the previous year. The digital format allows for links to additional information, flexibility to build content without print page requirements, versatility in delivery through multiple communication channels such as website and email, ease of sharing by staff and commission members, and also a cost savings. Photos: In 2016, new aerial photos were taken of the Water Pollution Control Facility, the Biocycle Farm, and the Willamette River. The last year the aerial photos were taken was 2013. By updating MWMC’s aerial photo inventory periodically, we can capture natural changes and work that has occurred and use in marketing and outreach. In 2017, professional photos of operational staff working and the Commission conducting a monthly meeting will be taken to build on the MWMC’s image archive that will be used for upcoming communication tactics. Mr. Stouder added that the photos turned out really well. Staff has used them in some presentations to other agencies and a few slide shows. Commissioner Keeler said the plant landscaping is very beautiful right now. If we need more photos, now would be a great time to get them. Ms. Spiro replied that was a great suggestion. She said the aerial photographer went back in the fall to get the fall colors. It would be a good idea to get some spring shots as well. Commissioner Ruffier said that raises a question for future construction projects, the use of drones to do aerial photography from a closer distance to track progress. It might pay to purchase a drone for in-house photos. Mr. Stouder replied staff could look into it. Mr. Breitenstein added the Fire Department provided the drone to take photos of the winter storm damage on the Poplar Farm. Rate Brochures: Every year the MWMC partners with the City of Eugene and the City of Springfield to produce rate brochures that are mailed to all EWEB and SUB customers. It includes information on how wastewater and stormwater fees are structured and calculated within each city. Project Profiles: Project Profiles is a new tactic implemented in 2016. It captures an overview summary of a project, key facts, and frequently asked questions and answers in one document. Project Profiles are done when a project is anticipated to generate multiple questions from external and internal stakeholders. The first Project Profile was done on the O&M project and is available on the website on the CIP page. Tours: More than 750 people toured the treatment plant this past year including industry partners, the general public, and students from several community colleges, the University of Oregon, and Clean Water University. Four groups were highlighted, they were: The University of Oregon’s H2Oregon Community for Ecological Leaders; Lane Community College’s Water Conservation Class, Churchill High School’s Environmental Science Academy; and The University of Oregon’s Architecture and Environmental Studies School. MWMC Meeting Minutes April 14, 2017 Page 5 of 10 Clean Water University (CWU): The MWMC in conjunction with the City of Springfield continues to provide CWU to fifth graders in Springfield schools. CWU provides classroom sessions covering wastewater and stormwater systems and benefits plus a tour of the wastewater treatment plant. Staff previously explored options to expand to more local schools and implemented more streamlined curriculum. However, the schools currently participating in CWU are finding it challenging to find classroom time due to State testing requirements. Based on this information, staff will be surveying teachers currently participating in CWU and those that haven’t to determine what is the best approach to continue CWU and also allow for expansion to more schools. Mr. Stouder added that there are two CWU sessions, spring and fall. Spring is challenging with testing and fall is challenging for a number of reasons but mainly because that is when most want this service. The Commission has asked staff to reach out to more schools on a number of occasions and feel that this is an important program. Staff is trying to figure out what kind of resources it would take to expand the program in Springfield and also into Eugene. Even if we were able to utilize volunteers and teachers, some oversight will still be needed. When staff comes back in the fall with the Communication Plan update, there will be some options for how we could expand CWU based on the information we have gotten from previous meetings. When we finalize the Communication Plan, we can move forward to next year’s budget process with proposed resources needed depending upon direction provided. Considering the time restraints in the academic school year, Commissioner Ruffier asked if staff has considered summer programs with camps like Camp Harlow. Ms. Spiro replied we have not, but it is a great idea. Commissioner Farr mentioned producing 10 minute films to show kids stating if we have something as cool as the Incredible Journey, the kids would enjoy it. Social Media: Social media is a part of the MWMC Communication Plan, including use of an MWMC YouTube channel which launched in the spring of 2016. The MWMC had professional videos on the channel that were very popular. Staff is building on that foundation to expand into Facebook and Twitter. There are lots of wastewater agencies and other public utilities that use social media channels. It is a good way to directly communicate with the community and provide them with interesting tips and information. Commissioner Ruffier asked if we have had any feedback yet. Ms. Spiro responded that we haven’t launched the social media yet. Staff is working on a draft plan for the social media and will be reaching out to other organizations and staff for feedback. Mr. Stouder stated that staff has received positive feedback when they have done public presentations. Ms. Spiro added that on the CWU tours the parents will sometimes come along with the students and by the end of the tour the parents are saying, “I didn’t know” – “this is exciting.” So it is not only beneficial to the students but also to the parents that come along. Commissioner Ruffier stated it is a very valuable program and effort, the caveat is that once you get engagement, you will need to have a timely response. That will be a resource issue as time goes along to be able to keep track of input and response. MWMC Meeting Minutes April 14, 2017 Page 6 of 10 Ms. Keir said they are working on the strategy for how to launch Facebook and Twitter and coordinate and continue to keep it responsive and keep it going. She said hopefully we will be launching in the summer. MWMC’s Website mwmcpartners.org: It continues to be an effective communication channel. The new website will be launched on June 17, 2017 and will be more user and mobile friendly and ADA compliant. Additionally, it has a new editing platform that will save time in managing and updating the website. Commissioner Ruffier asked about the ADA compliant piece. Ms. Spiro replied that someone who is visually impaired may have readers that can make the top font bigger. So the website will be compatible with that. Commissioner Keeler said he understands that the first part of good public relations is having a good story to tell. The MWMC has a great story to tell. He appreciates the effort that the Communication Coordinators have gone to. The MWMC has a program, strategy, and great content. We have already identified and talked about how challenging it is to grow the audience, how to get more people clicking on our links, and how to get more kids through CWU. But staff is working on it so he has every confidence that it will grow as well. Commissioner Ruffier said that the neighborhood organizations in Eugene are fairly well formulated and it might be another opportunity to get on their agenda and provide a presentation. They usually look for topics to cover and this would be a good one. Maybe after the social media is launched, it would be a good way to tie into it through the neighborhood presentations. Commissioner Farr asked if the MWMC has a booth at the fair. Ms. Spiro responded that we don’t have a booth at the fair, partly because of staff capacity. Commissioner Farr said he could visualize a booth entitled “Where Does It Go”, and then, Flush Here to View. Commissioner Meyer asked if the MWMC has the ability to send a flier out with the utility bills. Mr. Stouder responded that with SUB we are limited to two brochures a year. He thinks EWEB is the same. One of the brochures is rates, how they are structured and what the increase will be. The second brochure, on Springfield’s side, is dedicated to stormwater because we are required as part of the stormwater permit to be doing public outreach/education. Commissioner Meyer said that he thinks for the long term, it would be a good avenue to reach all our customers to publicize programs like the Drug Take Back. Mr. Stouder replied that we can look into that and see how both sides work, and how challenging that may or may not be to increase it. Mr. Huffman asked Commissioner Ruffier if he thinks social media would help with Inflow and Infiltration (I&I) problems. Commissioner Ruffier replied that once the base is established, you could use social media to educate people on I&I problems and maybe get their buy-in for solutions. Commissioner Ruffier stated one of the questions that always comes up in regards to communication is which is better, to keep your head down and stay out of the limelight and go about your business or to build up a reservoir of community good will. Questions he would leave us with are how do we assess the community good will and how do we assess how well we are doing? The MWMC puts a lot out there and doesn’t receive a lot of feedback. MWMC Meeting Minutes April 14, 2017 Page 7 of 10 Mr. Stouder said when staff goes out on road shows, one of the things we find is that people are skeptical to start with because they don’t know who the MWMC is or what it does. Then when we explain to them, they are either very appreciative or say something like, “I guess I am not hearing about you in the news; therefore, you must be doing something right.” Commissioner Keeler added that when wastewater utilities do have problems with the media, rather than take our message that we are discharging treated water, the message becomes dumping sewage. So to the extent that we can build our good will with the community will undermine the negative and not necessarily accurate message from the media. Commissioner Ruffier stated other wastewater agencies have developed an interactive game module which you can click on your house and follow the pathway to the treatment plant. He thought it is something to consider with regards to schools (less time available) as well as provide them with videos or internet resources, something they could use in class on their own schedule. It is expensive to develop that kind of game but it might be worth it to consider for the long haul. RESILIENCY PLANNING Mr. Stouder stated that recently there has been a lot of focus on the Oregon Resiliency Plan and the Cascadia subduction zone earthquake but resiliency planning also includes a number of other items, such as dam failure, flooding, extended power lost, or even climate change implications. The Oregon Resiliency Plan is on the State’s website for anyone who is interested in it. http://www.oregon.gov/oem/Documents/Oregon_Resilience_Plan_Final.pdf The State did this plan in 2013. This plan primarily focuses on reducing risk and improving recovery with a Cascadia subduction zone quake. It doesn’t analyze flooding events or other risks. The chief finding of the plan is large earthquakes are going to occur, they have occurred with some regular frequency over time, and the State is poorly prepared to deal with a large quake. Wastewater and water systems are particularly vulnerable; treatment systems in general and pump stations are likely to fail in the event of a large quake. The recommendations that came out of the plan are that utilities and cities undertake a comprehensive assessment of their structures, to do work on that information, and then launch a resiliency program of capital investments to help improve their resiliency. At the local level, Eugene and Springfield have a Natural Hazards Mitigation Plan. It was done in 2014 after conducting a climate and hazards vulnerability assessment. The two cities looked at earthquakes, flooding, landslides, dam failure, etc. The findings for wastewater services are that they are vulnerable to winter storms, earthquakes, and flooding. Significant damage would occur for a Cascadia subduction zone earthquake event and would take months to years to repair. A couple other findings were that wastewater systems are particularly dependent upon transportation and electrical systems; electrical systems for power of the plant and transportation of chemicals and parts that are needed. Many of the parts that are used at the plant are custom and require certain vendors to make them and require trucking to be brought to the plant. So if the transportation system is down, they are not going to get here. At the utility level, Clean Water Services and other utilities are at the same stage as MWMC, trying to figure out where they want to go and recognizing it is a need. In 2015, the Eugene Water and Electric Board (EWEB) adopted a resiliency plan which evaluated hazards that could affect EWEB’s critical facilities and infrastructure, with a chief goal of restoring water service as quickly MWMC Meeting Minutes April 14, 2017 Page 8 of 10 as possible to customers after a catastrophic event. They did an RFP and looked at their infrastructure, evaluated their critical assets, and came up with recommendations for things that they can be doing over a 50 year time period. The MWMC serves roughly 225,000 people. Restoring wastewater service after a major event is a priority. We did our most recent planning effort in 1996. It focused on evaluating critical infrastructure from a seismic perspective at the plant and a number of life safety improvements were addressed. It didn’t evaluate the pump stations off site or the infrastructure at the Biosolids Management Facility or elsewhere. There have been substantial changes since 1996 and a lot of information has been learned. Experts now have a better understanding of what will happen as far as ground deformation. We have real world experiences from Chile and Japan where we have seen the aftermath and seen where systems have failed. We know the earlier standards that were in place in 1996 underestimated the impact from an earthquake. Mr. Stouder said there are two pieces to resiliency planning: 1) how to respond and 2) what do we do before it happens so there is less risk. We are working on how to respond with our partner agencies, the cities of Eugene and Springfield. We have plans in place on how we can respond to events where there is power failure, earthquake, or some other event. The second piece is what we need to do ourselves. Next Steps – Mr. Stouder stated he thinks the MWMC would benefit from doing an updated resiliency plan. He doesn’t know yet what level of scope that should look like. He wanted to discuss this with the Commission. A couple avenues we could take moving forward would be to put out a request for information or place a request for proposal. We need to evaluate our infrastructure and see where we have risks. Right now we have around $300,000,000 in assets, we know we have critical infrastructure but staff can’t tell you if, for example, the crossing at the Owasso Bridge is a higher priority or more at risk than one of the pump stations. We need some facilitated help to make those determinations. Commissioner Keeler asked what help or guidance can ACWA or National ACWA provide. Mr. Stouder replied he would check with ACWA. Commissioner Meyer said that State Resiliency Plan is where the 50-year plan comes from. They know we cannot strengthen all our facilities to meet the new subduction zone type earthquakes. They said that utilities should set up a program to be there within 50 years knowing full well that it could happen anytime (big earthquake). Commissioner Meyer said a high level look, similar to EWEB’s or the City of Eugene’s (for their pumping stations) would be helpful. It would show us MWMC’s vulnerability, which facilities are within a liquefaction zone, and to know what the expectation is from the State level for when we are back into service. That then allows us to focus on a more detailed assessment of those facilities that are most vulnerable and critical to get where we want to be in 50 years. It is a step by step process. Mr. Stouder said it would really help on capital planning moving forward. Right now we don’t have a planning effort that would help us understand what standard we might be willing to build to. We are making decisions on project by project basis. Mr. Stouder said that we obviously want to look at subduction zone quakes and earthquakes, but a high level look at flooding and extended power loss as well. He wouldn’t recommend volcano eruption. An RFP to do some work like this and see what we get back is the direction we want to move in. MWMC Meeting Minutes April 14, 2017 Page 9 of 10 Commissioner Keeler said doing a little bit of research by looking at other organizations and seeking some kind of template to help with the RFP. Mr. Breitenstein stated that we are members of ORWARN so we have mutual aid agreement set up other municipalities for sharing resources. He noticed on OWRARN website, the EPA offers a check list for self-evaluation for 100 and 500 year flood events. The plant is going to do the self- assessment for flood risks. Mr. Breitenstein stated that the current emergency response plans by the City of Eugene are set- up and based on an all-hazards event. It would be good for the MWMC to hone in on where our specific vulnerabilities are and what we can do to shore those up. Commissioner Ruffier said to redo the vulnerability assessment as a base starting point to see what our critical infrastructure is and then do a critical parts inventory to determine what parts we would actually have to have that is hard to get. That will lead into price agreements and prioritization agreements because when things go bad, everybody will be looking for the same resources. Competition will drive up prices and having an agreement with the vendor will be helpful to get needed equipment, parts, etc. Mr. Stouder added that there could be decisions made on how the MWMC stocks it inventory. Commissioner Ruffier stated that the effort needs to be closely coordinated with EWEB, in regards to the subduction zone quake, because they are prioritizing areas for water restoration and that is where the plant gets its primary flows. Mr. Stouder said that if President Inge was here he would want to know what is the likelihood of these events happening and how much is it going to cost. An important thing about doing this work is we will know where our risks are and what could happen. It doesn’t mean that we need to take action, but it also allows us to make more informed decisions in the future, and potentially where to prioritize and spend money. Commissioner Ruffier said one more thing to add to the vulnerability assessment is widespread conflagration in the south hills where there could be a massive fire. If all the power poles burn down, what happens? Mr. Stouder said that staff will look at what other communities have done and find something that is appropriate for the MWMC. He will come back at a future date with a more formalized proposal. BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR Commission: Commissioner Ruffier asked if there were any public comments at the public hearings for MWMC’s budget ratifications at either city. Mr. Stouder replied that there was not at either city or the county. There were comments on the Eugene local side but not on the regional budget. Commissioner Keeler asked about a replacement for Eugene’s Council person for MWMC. Mr. Stouder said that he had talked to Eugene’s Public Works Director and some staff; they are working on getting a replacement, he is hoping by June but not certain. Commissioner Ruffier commended the staff for the annual and monthly reports which hold much information. He would like to add the Monthly Report to our consideration in the MWMC Meeting Minutes April 14, 2017 Page 10 of 10 performance measures when we take that topic up, so we could align the two and maybe get an update or a fresh look of what is included in the monthly reports. General Manager: Budget: Mr. Stouder stated that all three partner agencies have ratified the regional budget. In June it will come before the Commission for a final adoption on the consent calendar. Brown Lane Property: An agreement with the owner to purchase the three properties on Brown Lane has been signed. Staff is moving forward with the due diligence process. Mr. Huffman was able to get an addendum to the agreement that allows the MWMC to purchase each piece of property individually. We are hiring a consultant to do a Level One environmental site assessment. S ystem Development Charge (SDC): A request from Square One Villages has been submitted to MWMC requesting SDCs be waived. They are a non-profit 501(c)3, and will be constructing 22 tiny houses in Eugene. Another request to waive SDCs will be coming from the City of Springfield. Springfield is trying to incentivize Accessory Dwelling Units (ADU). Mr. Stouder has reached out to Deb Galardi who is very familiar with MWMC’s SDC work and has done SDC work around the State. o Commissioner Keeler asked what an accessory dwelling unit is. Mr. Stouder replied it is a unit that is constructed on a parcel of low or medium residential land that is accessory to the primary residence. o Commissioner Meyer said he wants to know the long term disposition of the units. If it is an emergency shelter, he thinks our standing would be different than if it is ownership where someone is gaining equity. Wastewater Director: Mr. Breitenstein stated replacement of the underground fuel tank has been completed at the plant. It is a single tank with dual compartments for gasoline and diesel. The old tank was completely removed rather than filled. He thanked Commissioner Keeler for encouraging the project and the rest of the Commission for supporting it in last year’s budget. 1 st of May moved into the summer permit season. Winter season was successful with treatment that met all the permit requirements and no sanitary overflows; given the wet weather was several inches above normal. It rained steady and constant for seven months versus getting all the rain in three months. He gave credit to the local agencies, Springfield and Eugene, for keeping all the system’s pipes open and also all the work they are doing to reduce Inflow and Infiltration. o Commissioner Meyer said that a few years ago we used a series of monitoring stations throughout the system. Are they still being maintained? Mr. Breitenstein replied that they are and have been updated. The City of Eugene’s staff has done quite a bit of work on improving the model that is being used for I&I studies and has been assisting Springfield with their work as well. ADJOURNMENT Vice-President Ruffier adjourned the meeting at 9:00 a.m. M E M O R A N D U M DATE: June 2, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Matt Stouder, MWMC General Manager Prepared By: Katherine Bishop, ESD Program Manager SUBJECT: Ratification of the Regional Wastewater Program Budget and Capital Improvements Program for Fiscal Year 2017-18 ACTION REQUESTED: Adoption of the final Regional Wastewater Program Budget and Capital Improvements Program for Fiscal Year 2017-18 _____________________________________________________________________ ISSUE The FY 2017-18 (FY 17-18) MWMC Regional Wastewater Program (RWP) Budget and Capital Improvement Program (CIP) have been ratified by the City of Springfield on May 1st, City of Eugene on May 8th and Lane County on May 9th. The Commission’s final adoption, which is scheduled for the June 9th MWMC Consent Calendar, will complete the FY 17-18 budget and CIP adoption process. BACKGROUND AND DISCUSSION On April 14, 2017, via Resolution 17-05, MWMC adopted the FY 17-18 Budget and CIP. Consistent with the Intergovernmental Agreement (IGA), MWMC then referred the Regional Wastewater Program Budget and CIP to the governing bodies for ratification. The City of Springfield, City of Eugene and Lane County ratified the Budget and CIP on May 1, 2017, May 8, 2017 and May 9, 2017 respectively. The City of Springfield is MWMC’s financial agent; as such the MWMC Budget and CIP amounts are incorporated into the City’s budget. ACTION REQUESTED The Commission is requested to adopt the final FY 17-18 Regional Wastewater Program Budget and Capital Improvement Program as part of the June 9, 2017 Consent Calendar approval. M E M O R A N D U M DATE: June 2, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Katherine Bishop, ESD Program Manager SUBJECT: Insurance Renewal - Effective July 1, 2017 ACTION REQUESTED: Authorize and direct the General Manager to enter into agreements for insurance coverage to be effective on July 1, 2017 _____________________________________________________________________ ISSUE The Metropolitan Wastewater Management Commission’s current property insurance coverage will expire on June 30, 2017. The MWMC’s insurance agent of record is Brown & Brown Northwest. Ron Cutter, Senior Vice President/NW Public Sector Practice Leader and staff at Brown & Brown NW have obtained property insurance coverage pricing for further discussion and consideration. BACKGROUND The MWMC carries insurance policies that provide risk insurance coverage, including property insurance and liability insurance. Liability Insurance – At the December 9, 2016 meeting, the Commission authorized the MWMC General Manager to enter into an agreement for liability (casualty) insurance coverage for the 2017 calendar year effective January 1, 2017. This policy covers general liability, administrative liability, public officials’ liability, non-owned and hired automobile liability, hired automobile physical damage, and umbrella/excess liability. Property Insurance - Generally covers physical loss to buildings, equipment and systems, underground sewer pipelines, electronic data processing, and business personal property of the Commission. The property insurance also includes earthquake and flood coverage. The MWMC maintains several insurance coverage levels including a $100 million policy limit, with earthquake and flood coverage of $100 million including earthquake coverage on underground pipes. The property insurance deductible is $250,000 (with some exceptions) per occurrence, as such, the MWMC is self-insuring for potential losses below the deductible amount(s). Memo: Insurance Renewal - Effective July 1, 2017 June 2, 2017 Page 2 of 3 DISCUSSION Property Asset Values – The total insured value of the MWMC’s assets is $320.5 million in FY 2017-18, an increase of $25.3 million (8.5%) when compared to FY 2016-17. The increase includes 8.4% ($24.66M) in property values and 30.4% ($680,000) in mobile equipment values. The increase in asset values takes into consideration: added and/or upgraded systems/equipment/mobile equipment, Digester #4 and the Operations and Maintenance Building Improvements currently in construction, plus minor adjustments to property values. The property premium pricing accounts for projects in construction and takes into consideration the construction schedules. It is helpful to note that last year in FY 2016-17, the MWMC asset values decreased by $7.4 million (2.5%). The decrease was based on the outcome of a 2016 evaluation of the MWMC owned collection system pipe materials and construction service costs. Property Insurance – Due to the $320.5 million in assets and historical coverage levels for earthquake and flood, many insurance providers do not have the capacity to provide insurance coverage to meet the standard MWMC coverage levels for earthquake including underground pipes, and flood. Staff is recommending property insurance renewal with Starr Technical Risks Agency effective July 1, 2017, to include a two-year rate lock agreement. The additional Difference in Conditions (DIC) earthquake coverage is provided by a separate insurance provider, with DIC earthquake in year two subject to market changes and based on quotes in 2018. The table below provides the property insurance proposal pricing from Starr Tech. The Starr Tech property insurance includes a policy limit of $100 million, a flood sublimit of $100 million, an earthquake sublimit of $50 million and a sewer pipes sublimit of $10 million. The DIC additional earthquake pricing for $50 million (to $100M) excludes underground sewer pipes. Staff will provide additional information at the meeting. thru June 30, 2017 July 1, 2017 Expiring Recommended Program Pricing $100M Earthquake $100M Earthquake Starr Tech / ACE America All Risk Property Insurance includes $50M EQ $207,832 $213,435 DIC Earthquake at $50M $57,902 $56,895 TOTAL Premium $265,734 $270,330 Property Insurable Values $298,174,850 $323,513,600 DIC EQ Insurable Values $240,774,850 $242,274,000 Premium Rate/$100 Starr Tech 0.070 0.066 Premium Rate/$100 DIC 0.024 0.023 Property Coverage Memo: Insurance Renewal - Effective July 1, 2017 June 2, 2017 Page 3 of 3 Fiscal Impact: The approved FY 2017-18 MWMC budget includes $360,000 programmed for property and liability insurance, the MWMC agent of record service expense based on an annual fee paid directly by MWMC, plus other insurance related services. The requested action is for the property insurance coverage. Staff will return to the Commission in late 2017 regarding general (casualty) liability insurance coverage for the 2018 calendar year. Staff is recommending property insurance coverage with Starr Technical / Ace America All Risk with a two-year rate lock agreement, at a premium cost of $213,435 for the fiscal year July 1, 2017 through June 30, 2018. The Starr Tech property policy includes earthquake insurance coverage at $50 million. Staff is further recommending additional DIC earthquake insurance coverage at $50 million to maintain a total of $100 million in earthquake coverage. ACTION REQUESTED After review and discussion, the Commission is requested by motion, to authorize and direct the General Manager to enter into agreements to secure property insurance coverage for the period of July 1, 2017 through June 30, 2018. M E M O R A N D U M DATE: June 2, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Todd Miller, Environmental Management Analyst SUBJECT: Poplar Harvest Management Services – Biocycle Farm MU2 Harvest P80083 ACTION REQUESTED: Approve Resolutions 17-09 and 17-10 (goods and services procurement) _____________________________________________________________________ ISSUE The MWMC solicited an Invitation to Bid (ITB) for Project P80083: Poplar Harvest Management Services – Biocycle Farm MU2 Harvest on May 3, 2017. The ITB is for goods and services and allowed for award of contracts to multiple bidders. Two bidders submitted bids on May 24, 2017. Pending final determination of the responsive and responsible lowest priced bidder, staff will request approval of Resolutions 17-09 and 17-10 to authorize the contract for the Biocycle Farm MU2 Harvest. BACKGROUND MWMC Project P80083: Poplar Harvest Management Services budgets for ongoing harvest and replanting efforts through the entire first rotation of the MWMC’s Biocycle Farm hybrid poplar plantation’s three management units (MUs). The project develops understanding of the economics of poplar harvest and re-planting issues and explores new opportunities for poplar markets and uses. The MWMC previously contracted for the initial harvest and replanting of MU1 in 2013 and 2016, respectively. The MWMC now requires the complete harvest of MU2 and the partial harvest of MU3 due to tree damage incurred during the December 2016 ice storm. Staff initially scheduled MU2 harvest for 2018 but re-scheduled harvest one year earlier due to the extensive tree fall in the unit. MU3 is scheduled for harvest in 2020 but some storm-impacted trees need to be removed in 2017. The MU3 partial harvest is included in the MU2 harvest event. DISCUSSION Attachment 1 presents the ITB (without its exhibits, attachments, and appendices) and the related Addendum No. 1 to the ITB. The ITB for the Biocycle Farm MU2 Harvest was prepared to accomplish the following goals: Memo: Poplar Harvest Management Services – Biocycle Farm MU2 Harvest June 2, 2017 Page 2 of 3 Harvest of storm-damaged trees in timely manner in 2017, including complete harvest of MU2 Provide cost effectiveness to the MWMC Provide flexibility to allow the MWMC to continue to develop market relationships for its poplar product The ITB presented four separate bid items representing different scopes of work that could be performed by a single or multiple contractors. Bid Items could be bid individually, “all in”, or in any combination deemed cost effective by the bidder. The four bid items are: Bid Item 1: MU2 complete harvest and processing Bid Item 2: MU3 partial harvest and processing Bid Item 3: Poplar material marketing Bid Item 4: Stump treatment (Option A: herbicide treatment, Option B: grinding) Attachment 2 presents the Bid Sheet (Part 2 of the ITB’s Bid Submittal Form) used for preparing each bid option submitted by bidders. Bids were based on total extended cost based on number of units estimated by the MWMC for the purpose of the ITB at the unit price offered by the bidder. The Bid Sheets presents the MWMC with unit price commitment regardless of the quantity of marketable poplar material produced. Bid Items 1 and 2 solicited costs to harvest trees and process into saw logs (at the MWMC’s direction) and merchantable chip and hog fuel material. Bid Item 3 solicited total net market revenue of the poplar materials produced under Bid Items 1 and 2 except for any saw logs produced for the MWMC to be sold under separate log purchase contract(s). Bid Item 4 solicited costs for two stump treatment methods (either herbicide treatment or grinding) to be selected at the MWMC’s discretion. A voluntary pre-bid meeting and site tour was held on May 10, 2017. Lane Forest Products was the sole bidder to attend. Based on questions posed at the pre-bid meeting, clarifications to the ITB were issued via Addendum No. 1 on May 19, 2017. Bids were due May 24, 2017 at 2:00 pm and a public bid opening was held on May 24, 2017 at 3:00 pm. The following two businesses submitted bids: Lane Forest Products (8 bid options submitted) GTFF Millcorp (2 bid options submitted) Attachment 3 presents the ten bid options as received from the two bidders. The lowest bid options from each of the two bidders are labeled as LFP A (Lane Forest Products) and GTFF 1 (GTFF Millcorp). Of those, GTFF 1 presents the lowest cost bid to the MWMC. Bid Item 4 (Stump Treatment) is optional and independent of Bid Items 1, 2, and 3. LFP’s Bid Item 4, Option 2 presents the most cost-effective option for stump treatment. RECOMMENDATION The Bid evaluation team recommends contracting with GTFF Millcorp for Bid Items 1, 2, and 3 at their bid unit prices presented in their Bid Sheet #1 (GTFF 1) for a total contract of $237,600, and contracting with Lane Forest Products for Bid Item 4 at their unit price Memo: Poplar Harvest Management Services – Biocycle Farm MU2 Harvest June 2, 2017 Page 3 of 3 for Option 2 (stump herbicide treatment) for a total contract of $79,200. The total multiple contract cost of the Biocycle Farm MU2 Harvest project is $316,800. Staff issued a notice of Intent to Award Contract to the bidders on May 31, 2017. The seven day protest period after notice closes on June 7, 2017. ACTION REQUESTED Approve Resolution 17-09 for award of contract to GTFF Millcorp and Resolution 17-10 for award of contract to Lane Forest Products. These resolutions are presented in Attachment 4. ATTACHMENTS 1. Invitation to Bid (ITB) – Biocycle Farm MU2 Harvest 2. Bid Sheet Form 3. Summary of Bid options received in response to the Biocycle Farm MU2 Harvest ITB 4. Resolutions 17-09 and 17-10 www.mwmcpartners.org INVITATION TO BID for POPLAR HARVEST MANAGEMENT SERVICES May 3, 2017 Project Name & Number: Biocycle Farm MU2 Harvest Procurement Type: Goods & Services Project Location: MWMC Biosolids Management Facility and Biocycle Farm 29686 Awbrey Lane, Eugene, Oregon 97402 MWMC Project Manager / Contact: Mr. Todd Miller Environmental Management Analyst City of Springfield – Development & Public Works Department Environmental Services Division 225 Fifth Street, Springfield, OR 97477 tmiller@springfield-or.gov (541) 736-7137 Bids Due: May 24, 2017 12:00 pm Website Information: http://www.mwmcpartners.org/Bids.html ATTACHMENT 1 Page 1 of 28 Procurement Information Summary Sheet This page of information is provided reference convenience only. Refer to the full ITB for complete details. DESIGNATED BID RECIPIENT / PROCUREMENT CONTACT MWMC Project Manager Todd Miller – Environmental Management Analyst Environmental Services Division City of Springfield – Development & Public Works Department 225 Fifth Street, Springfield, OR 97477 E-mail: tmiller@springfield-or.gov Tel: (541) 736-7137 VOLUNTARY PRE-BID MEETING AND PLANTATION TOUR May 10, 2017, 9:00 am – 12:00 noon MWMC Biocycle Farm Eugene-Springfield Biosolids Management Facility 29686 Awbrey Lane Eugene, Oregon 97402 Google Map Link: http://goo.gl/maps/yBILo PROJECT LOCATION MWMC Biocycle Farm Eugene-Springfield Biosolids Management Facility 29686 Awbrey Lane Eugene, Oregon 97402 MWMC Administration City of Springfield Development & Public Works Department 225 Fifth Street, Springfield, OR 97477 Tel: (541) 726-3694 SOLICITATION SCHEDULE SELECTION SCHEDULE MILESTONES DATE ITB Open (first date of advertisement). May 3, 2017 Pre-Bid informational meeting May 10, 2017 Deadline to submit Bids May 24, 2017 12:00 noon Bid opening May 24, 2017 at 3:30 pm Evaluation period May 25 – May 26, 2017 Top rated Bid identified and Notice of Intent to Award Contract May 26, 2017 Protest period (10 days) May 26 – June 8, 2017 TENTATIVE POST-BID EVALUATION AND CONTRACTING SCHEDULE MWMC authorization to award contract June 9, 2017 Contract negotiations, including meetings to confirm scope of work June 12- June 16, 2017 Finalize and execute contract June 19 – June 23, 2017 Notice to proceed with contract services June 23, 2017 ONLINE INFORMATION Bid Documents http://www.mwmcpartners.org /invitation_bid.html Biocycle Farm Information http://www.mwmcpartners.org /biocyclefarm.html ATTACHMENT 1 Page 2 of 28 Request for Bids POPLAR HARVEST MANAGEMENT SERVICES Biocycle Farm MU2 Harvest Table of Contents I. GENERAL INFORMATION ............................................................................................................................... 1 A. OVERVIEW ........................................................................................................................................................ 1 The Metropolitan Wastewater Management Commission (MWMC) ................................................................. 1 Project and Administrative Locations .................................................................................................................. 1 Scope of Services Requested ................................................................................................................................ 1 B. BID PROCESS ..................................................................................................................................................... 2 Pre-Offer Meeting and Site Tour ......................................................................................................................... 2 Bid Submittal ....................................................................................................................................................... 3 Bid Opening ......................................................................................................................................................... 3 Bid Ownership and Public Record ........................................................................................................................ 3 Recourse for Exceptions to ITB ............................................................................................................................ 3 C. NOTICES AND ADDENDA .................................................................................................................................. 4 Viewing the ITB .................................................................................................................................................... 4 Terms of the ITB .................................................................................................................................................. 4 Addenda Issuance and Notification ..................................................................................................................... 5 Request for Clarifications .................................................................................................................................... 5 II. AGENCY NEED FOR SERVICES REQUESTED ...................................................................................................... 6 A. SCOPE OF WORK ............................................................................................................................................... 6 B. ANTICIPATED DUTIES OF THE CONTRACTOR .................................................................................................... 8 C. PERFORMANCE EXPECTATIONS ........................................................................................................................ 9 Poplar Harvesting and Removal Objectives ......................................................................................................... 9 Poplar Sales Objectives ........................................................................................................................................ 9 D. INVOICING REQUIREMENTS ............................................................................................................................. 9 III. CONTRACTOR QUALIFICATIONS AND REQUIREMENTS ................................................................................. 10 A. EXPERIENCE AND PAST PERFORMANCE ......................................................................................................... 10 B. FINANCIAL CAPACITY ...................................................................................................................................... 10 C. INSURANCE COVERAGE .................................................................................................................................. 10 IV. BID SUBMITTAL, EVALUATION, AND SELECTION PROCESS ............................................................................ 12 A. SUBMITTAL PROCESS ..................................................................................................................................... 12 B. BID SUBMITTAL FORM .................................................................................................................................... 12 Part 1: Cover Sheet ............................................................................................................................................ 12 Part 2: Bid Sheet ................................................................................................................................................ 12 Part 3: Statement of Qualifications ................................................................................................................... 13 Part 4: Financial Integrity .................................................................................................................................. 13 Part 5: Legal Compliance ................................................................................................................................... 13 C. BID EVALUATION ............................................................................................................................................ 14 D. AWARD OF CONTRACT ................................................................................................................................... 14 Notice of Intent to Award Contract ................................................................................................................... 14 Duration of Contract .......................................................................................................................................... 14 ATTACHMENT 1 Page 3 of 28 V. BACKGROUND INFORMATION ..................................................................................................................... 15 A. THE EUGENE-SPRINGFIELD REGIONAL WASTEWATER PROGRAM ................................................................. 15 Regional Wastewater Program Partnership ...................................................................................................... 15 City of Eugene Facilities Operation .................................................................................................................... 15 City of Springfield Administration ...................................................................................................................... 15 B. ABOUT THE BIOCYCLE FARM POPLAR PLANTATION ....................................................................................... 16 Geographic Location .......................................................................................................................................... 16 Past Harvest Yields ............................................................................................................................................ 17 EXHIBIT A LEGAL REQUIREMENTS AND TERMS OF PROCUREMENT EXHIBIT B INSURANCE REQUIREMENTS EXHIBIT C TECHNICAL SPECIFICATIONS EXHIBIT D SAMPLE CONTRACT APPENDIX I PLANTING LAYOUT AND MANAGEMENT UNIT MAPS ATTACHMENT 1 BIOCYCLE FARM SITE ACCESS, INDEMNITY, AND RELEASE AGREEMENT ATTACHMENT 2 BID SUBMITTAL FORM ATTACHMENT 1 Page 4 of 28 List of Acronyms BDT Bone Dry Tons DEQ Department of Environmental Quality EFU Exclusive Farm Use FOB Freight On Board MU Management Unit (e.g. MU1, MU2, MU3) MWMC Metropolitan Wastewater Management Commission NPDES National Pollutant Discharge Elimination System OAR Oregon Administrative Rule ORS Oregon Revised Statute ITB Invitation to Bid UGB Urban Growth Boundary ATTACHMENT 1 Page 5 of 28 1 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 INVITATION TO BID POPLAR HARVEST MANAGEMENT SERVICES Biocycle Farm MU2 Harvest I. GENERAL INFORMATION This section provides details about this Invitation to Bid (ITB), the requesting agency, the purpose of the solicitation, and the Bid submittal process. A. OVERVIEW1 This document along with all attachments and exhibits constitutes an invitation for sealed competitive Bids for Goods and Services under MWMC Rules 137-047-0000 through 0810 as adopted by the MWMC and in accordance with the requirements and provisions herein. A listing of legal requirements and terms of the procurement is presented as Exhibit A. The Metropolitan Wastewater Management Commission (MWMC) The Metropolitan Wastewater Management Commission (MWMC) is an intergovernmental entity formed by the City of Eugene, the City of Springfield, and Lane County, Oregon (the Regional Partners). The MWMC is the governing body that directs the Regional Wastewater Program. The Regional Wastewater Program comprises the administration, operation, and management of the regional Eugene-Springfield wastewater system. The regional system includes the Water Pollution Control Facility (WPCF) and associated satellite facilities to provide wastewater management services, including the Biocycle Farm poplar plantation and the Beneficial Reuse Site (a seasonal water storage and agricultural irrigation use facility). Project and Administrative Locations MWMC Biocycle Farm Eugene-Springfield Biosolids Management Facility 29686 Awbrey Lane Eugene, Oregon 97402 Link to Address via Google Maps MWMC Administration City of Springfield Development & Public Works Department 225 Fifth Street, Springfield, OR 97477 Tel: (541) 726-3694 Scope of Services Requested The MWMC requires contract services to harvest farmed poplar from two Management Units (MUs) at its Biocycle Farm facility. Harvest includes standing and storm-damaged trees. Four distinct scopes of work are identified covering harvests, marketing, and stump treatment. The MWMC elects to award one or multiple contracts based on the lowest responsive and responsible Bids for each scope of work, if it in the MWMC’s best interest to do so. 1 The information in this section is presented per requirements of MWMC Rule 137-047-0255. ATTACHMENT 1 Page 6 of 28 2 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 The four scopes are identified as follows: Bid Item 1: MU2 Harvest. Full harvest of 117 acres of standing and damaged plantation poplar trees, including mobilization/demobilization, all tree felling, processing, and stockpiling, debris removal and mulching, and ground restoration. Processing includes optimum chip production and grinding of residual material into hog fuel; at the direction of the MWMC, processing may also require identifying and cutting sawlogs to specification for cold decking. Bid Item 2: MU3 Harvest. Partial harvest of approximately 15 acres of 118 acre plantation poplar unit comprising mostly damaged trees. Includes mobilization/demobilization, all tree removal, processing, and stockpiling, debris removal and mulching, and ground restoration. Processing includes optimum chip production and grinding of residual material into hog fuel; at the direction of the MWMC, processing may also require identifying and cutting sawlogs to specification for cold decking. Bid Item 3: Poplar Marketing. Marketing of harvested and processed chips and hog fuel, including all on-site loading, trucking/sales documentation, freight, and revenue accounting. At direction of the MWMC, may include oversight of FOB sales of cold-decked sawlogs or optional sales identified by the Contractor. Bid Item 4: Stump Management. Treatment of stumps by herbicide application or grinding/removal across 132 acres of harvested area at approximately 222 stumps per acre. Includes final site grading and cleanup as impacted by stump management. See Section II for detailed scopes of work, specifications, and contractor duties. B. BID PROCESS2 Bidders must review the bid information and complete the bid process as defined in the ITB. See Section IV for instructions on bidding. Pre-Offer Meeting and Site Tour The MWMC encourages all Bidders to attend the voluntary pre-Bid meeting and site tour hosted by MWMC project representatives. Important details may be gained and Bidders will have the opportunity to directly assess site conditions. Time: 9:00 a.m. – 12:00 noon Date: Wednesday, May 10, 2017 Location: MWMC Biosolids Management Facility, central office 29686 Awbrey Lane Eugene, Oregon 97402 2 The information in this section is presented per requirements of MWMC Rule 137-047-0255. ATTACHMENT 1 Page 7 of 28 3 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 The MWMC project representatives will make every effort to answer questions and, if warranted, to clarify the ITB through issued addenda. Statements made by the MWMC’s representatives at the meeting are not binding on the MWMC unless confirmed in writing via an addendum to the ITB. IMPORTANT: In order to participate in the on-site plantation tour, Bidders need to have a signed Biocycle Farm Site Access, Indemnity, and Release Agreement (Attachment 1) and a certificate of general liability insurance coverage on record with the MWMC. Bidders planning on attending the site tour should submit the documents in advance of the tour, or ensure that they bring the sufficient documentation with them to the pre-Bid meeting. Bid Submittal Bids shall be returned using the provided Bid Form in a sealed envelope per instructions in Section IV no later than 12:00 pm, Wednesday, May 24, to MWMC/DPW Springfield City Hall. Late Bids Not Considered. The Project Manager will verify Bids are received by 12:00 p.m. on the due date. Any Bids received after the deadline may not be considered. Bidders should submit Bids early to ensure timely receipt. Bid Opening Bids will be publicly opened at 3:30 pm on May 24, 2017 at Springfield City Hall, 225 Fifth Street, Springfield, OR 97477 in the Library Meeting Room (a map of Springfield City Hall is located on the City of Springfield website at www.springfield-or.gov3). Any change to the meeting room location or time will be posted on the MWMC website at least 24 hours prior to the opening. Bidder names become part of the public record available to disclosure upon opening. Bid Ownership and Public Record All materials submitted by the Bidder as part of its Bid shall be considered property of the MWMC, and the MWMC shall not be required to return the materials to the Bidder unless otherwise noted in this ITB. The material submitted by Bidders will be treated in the same manner as the MWMC’s own records. Upon announcement of intent to award contract,4 all Bids become part of the public record unless exempt under Oregon Public Records law. Bidders wishing to exempt appropriate portions of their Bids from disclosure as public records shall identify the portions requested for exemption from disclosure in the Bid cover sheet(as described in Section V) as well as take all other steps required by law. Bidders are encouraged to discuss their disclosure concerns with the MWMC Project Manager prior to the submission of their Bids. Refer to Exhibit A for related legal terms and conditions. Recourse for Exceptions to ITB If for any reason, a Bidder should find fault with the structure of this ITB or with the evaluation process, concerns may be submitted in writing (in hardcopy or electronic means) to the MWMC Project Manager. Further information on procurement rules and ITB protest is located in Exhibit A. 3 The direct link to the map file is http://springfield-or.gov/CMO/KIOSKsmall112006.pdf 4 Section VI describes the announcement of intent to award contract procedure. ATTACHMENT 1 Page 8 of 28 4 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 C. NOTICES AND ADDENDA Viewing the ITB The full ITB, including all documents and supporting materials referenced in the ITB, will be available for online or in-print viewing beginning at the locations below: To View Online: ¥ http://www.mwmcpartners.org/invitation_bid.html ¥ Or, navigate to MWMC website home page, following links to Capital Improvements Program>Invitation to Bid. To View in Print: Customer services counter, Room 101 Environmental Services Division Springfield City Hall, Northwest Wing 225 Fifth Street, Springfield, Oregon 97477 Terms of the ITB Responsive Bids must include the following elements. All required information shall be entered in the appropriate sections of the Bid Submittal Form. ¥ Oregon Resident Bidder Status: Each Bidder must identify whether the Bidder is a "resident Bidder” as follows: “Resident Bidder” means a Bidder that has paid unemployment taxes or income taxes in this state during the 12 calendar months immediately preceding submission of the bid, and has a business address in this state. Indicate Resident Bidder status via check box on Bid Submittal Form; provide additional information if necessary describing relationship to business in Oregon. ¥ Certification of Non-Discrimination: Bidder's certification of nondiscrimination in obtaining required subcontractors in accordance with ORS 279A.110(4). Bidder shall certify in the Bid that the Bidder has not discriminated and will not discriminate against a disadvantaged business enterprise, a minority-owned business, a woman-owned business, a business that a service-disabled veteran owns or an emerging small business in awarding a subcontract. ¥ Affirmation of capability documenting minimum insurance coverage requirements per Exhibit B ¥ Financial capacity demonstration ¥ Bid Sheet (Bidder’s table of costs) ¥ Statement of Qualifications ¥ List of references ¥ Performance Bond capacity affirmation The MWMC reserves the right to: ¥ Change the schedule of the Bid and selection process. ¥ Delay, suspend, or cancel the procurement or reject any or all Bids.5 5 When in the MWMC’s best interest, in accordance with ORS 279B.100 ATTACHMENT 1 Page 9 of 28 5 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 ¥ Seek clarification of each Bidder’s Bid if necessary during the evaluation process. ¥ Award different items or groups of items of the final contract, if so itemized in this ITB, to different Bidders.6 Addenda Issuance and Notification Any changes or additions to the ITB content developed after release of the ITB will be described in addenda. Such changes and/or additions include any change of dates in the ITB Schedule. In the event that it is necessary to amend, revise, or supplement any part of the ITB, an addendum will be issued and posted online via the MWMC website (see “Viewing the ITB” above). Any addenda so issued shall be considered part of the specifications of the ITB. The MWMC is not responsible for any explanation, clarification, interpretation, or approval made or given in any manner except by written addenda issued by the MWMC. In case of any doubt or differences of opinion as to the services to be furnished hereunder, or the interpretation of the provisions of the ITB, the decision of the MWMC shall be final and binding upon all parties. The MWMC will not issue addenda less than 72 hours (3 calendar days) prior to 8:00 a.m. on the Bid closing date. Should the Bid closing date be extended by addendum, the extended Bid closing date will supersede the prior closing date in determining the 72-hour addendum window. Bidders should check the MWMC website frequently until the closing date (i.e. at least weekly leading up to the week of closing and daily during the week of closing). Request for Clarifications Specific questions or clarifications shall be directed to the MWMC Project Manager. Bidders are encouraged to contact the MWMC Project Manager prior to submitting their Bid to discuss general information regarding this ITB, the project in more detail, the work that has been done to date, and the project objectives and scope. MWMC Project Manager Todd Miller – Environmental Management Analyst Environmental Services Division City of Springfield – Development & Public Works Department 225 Fifth Street, Springfield, OR 97477 E-mail: tmiller@springfield-or.gov Tel: (541) 736-7137 Statements made by the MWMC Project Manager are not binding on the MWMC unless confirmed in writing via an addendum. Addenda will be issued for significant clarifications that arise during the pre-Bid meeting or during the response period up to the final date of addenda issuance. 6In accordance with ORS 279B.055(1) and MWMC Rule 137-047-0600(4)(a) and (c)). ATTACHMENT 1 Page 10 of 28 6 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 II. AGENCY NEED FOR SERVICES REQUESTED This section provides details about the services required, the scope of work to be performed, and the performance expectations of the service provider (Bidder). The MWMC requires logging services on its Biocycle Farm plantation-grown poplar tree facility. The MWMC needs to entirely harvest its MU2 block of trees and partially harvest its MU3 block of trees. . Both units received damage from winter storm events leaving sections of trees severely damaged. MU2 comprises 117 acres of 10-year old trees that were scheduled to be harvested in 2018; however, due to the extensive damage to this unit, the entire harvest has been rescheduled for 2017. MU3 comprises 118 acres of 8-year old trees that were less extensively damaged. The damaged sections of MU3 shall also be harvested in 2017. A. SCOPE OF WORK The scope of work for the four key services needed (Bid Items 1 through 4) is outlined below.. Contractors shall use recyclable products to the maximum extent economically feasible in the performance of the contract work set forth in this document.7 Bid Item 1 – MU2 Full Harvest Harvest Management Unit 2 (MU2) plantation farmed poplar trees (approximately 117 acres of 10- year old trees) o Includes approximately 30 acres (actual extent is to be determined by Bidder in assessing harvest conditions) of storm-damaged trees in uprooted, snapped, and widowmaker conditions. o The remaining acreage may include partially damaged trees throughout the unit of mostly standing trees. Buck and cold deck sawlogs o At direction of MWMC part or all of MU2 harvest will be prioritized for sawlogs/peeler logs for FOB sales on site. o Identify and select logs that meet specifications for peelers (see Attachment NN), typically butt logs and low-taper logs, and buck to specifications. o Cold deck spec logs for FOB sales to be arranged by the MWMC. o Process remaining tree material for chips and hog fuel Process poplar materials for chips and hog fuel o Recover and process as much saleable wood chip and hog fuel to maximum extent feasible and sell to offset harvest costs o Grind non-saleable material for onsite mulch and distribute evenly throughout harvest area. 7 In following with the requirement for state agencies per ORS 279B.055(2)(f). ATTACHMENT 1 Page 11 of 28 7 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 Groom site for pre-planting conditions o Cut all stumps flush to ground o Remove all wood debris o Grind and spread any remaining poplar residuals on site o Restore any stump holes, ruts, or damaged areas to level soil condition Bid Item 2 – MU3 Partial Harvest Harvest storm-damaged sections of trees from MU3 o Select harvest of MU3 8-year old trees to remove damaged trees isolated to approximately 10% of the 116 acre harvest area (i.e. approximately 12 acres total, depending on additional trees necessary to harvest to remove the damaged sections). o Process and finish site per MU2 harvest scope of work above. Bid Item 3 – Poplar Materials Marketing o Arrange sales of chips and hog fuel to appropriate markets o Oversee transfer of sawlogs to MWMC-arranged buyer(s) o Coordinate spreading of unsalable mulch material onsite (may be performed by other contractors or site personnel as appropriate) o Document all quantities of materials produced, stockpiled, sold, or spread on site. The MWMC’s certified truck scales located at the main gate to the Biosolids Mangement Facility and Biocycle Farm are available for Contractor use. Bid Item 4 – Stump Treatment Alternative 4A: Treat stumps with herbicide o Apply appropriate and approved herbicide to cambium ring of stumps to prevent regrowth. Alternative 4B: Grind stumps in place o Grind stumps to a minimum 18-inch diameter and 18-inch below grade. Larger stumps may require grinding to 50% larger diameter than the root flare diameter. o Remove all wood debris o Grind and spread any remaining poplar residuals on site o Restore any stump holes, ruts, or damaged areas to level soil condition For all scopes of work, activities must be managed and coordinated with the MWMC’s ongoing biosolids and recycled water application needs. The MWMC will strive to manage its operations to be in as little conflict as reasonably possible with poplar harvest operations. ATTACHMENT 1 Page 12 of 28 8 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 B. ANTICIPATED DUTIES OF THE CONTRACTOR The anticipated duties in fulfilling the requested services and scopes of work are summarized in Table 1 below. Table 1. Anticipated Contractor Duties Principal Duty Associated Tasks Deliverable/Milestone Document Harvest Plan ¥ Outline a written plan for acceptance by the Project Manager ¥ Include details about mobilization, access, staging, harvest technique, tree processing and marketing, freight load tracking, and site cleanup and restoration. ¥ Detail operations plan, project leader contact information, and site sanitation, health, and safety. ¥ Follow the MWMC’s Environmental Management System (EMS) training materials and policies. ü Harvest Plan Harvest Poplar ¥ Complete harvest of entire MU2 not later than September 30, 2017 ¥ Complete tree clean up in damaged sections of MU3 not later than September 30, 2017 ¥ Process harvested poplar, to maximum extent achievable, into chip and hog fuel product Harvest Report Process Poplar Biomass ¥ As directed, buck tree logs to spec and cold deck for sawlog sales ¥ Manage stockpiling of chip and hog fuel stock for market sales Market Poplar Materials ¥ Market chip and hog fuel quantities to buyers ¥ Coordinate stockpiled materials for trucking to buyers ¥ Oversee, at the MWMC’s direction, sales of cold- decked logs to sawlog buyers ¥ Prepare summary sales report (Market Report) documenting measured yield of harvest, sales inventory records, freight costs, and overall market performance. ü Market Report Restore Harvest Area for Planting ¥ Site cleanup and restoration per contract specifications (removal of wood debris, grinding and spreading of mulch material, filling and leveling of any holes, divots, or ruts left from equipment or operations). ü Site inspection with MWMC Project Manager Stump Treatment ¥ Per contract agreement, treat stumps by specified herbicide or grinding method. ü Site inspection with MWMC Project Manager ATTACHMENT 1 Page 13 of 28 9 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 C. PERFORMANCE EXPECTATIONS The Contractor shall meet or exceed the highest standards prevalent in the industry or business most closely involved in providing the requested services.8 The Contractor shall strive for sustainable business practices in its operations, project approach, and/or market use of materials produced while providing the required services for the MWMC. The Contractor shall meet the following performance objectives: Poplar Harvesting and Removal Objectives ¥ Ensure complete and timely harvesting of trees within the allocated timeframe of July 1, 2017 through October 31, 2017 ¥ Remove all wood, slash, and materials from the site to ensure clear ground for site personnel or other contractors to maintain ongoing operations and replanting activities. ¥ Ensure site is left in a planting-ready condition (ruts/holes repaired, no large woody material left on site that would interfere with normal equipment operations). ¥ Coordinate all harvesting activities with the MWMC Project Manager to ensure site operational needs are met and safety plans are followed. Poplar Sales Objectives ¥ Secure fair market price for products given poplar quantity and quality available. ¥ Utilize the highest percentage of poplar biomass as economically feasible. ¥ Manage chip and hog fuel inventory to optimize costs and shipping efficiency by considering benefits of drying time to reduce moisture content to optimize volume shipped and reduce truck miles and fuel use. ¥ Ensure all logs from designated harvest area(s), as directed by the MWMC Project Manager, meet specifications for sawlog purposes and are appropriately cold decked for FOB origin sales. D. INVOICING REQUIREMENTS Contractor shall submit monthly cost documentation to the MWMC Project Manager in the form of an invoice reflecting the agreed-upon per acre cost for the service provided, the number of acres reflected in the invoice period, a brief description of the services provided including current site conditions, material stockpiles, etc. For market services, provide an accounting of total mass of material handled and sold, including gate price received for material and freight trip ticket details. Appropriate documentation to support each invoice must accompany the invoice, including: ¥ Brief summary of work accomplished for the invoice period. ¥ Demonstration that the invoice to date reflects percent job complete (depending on complete or partial harvest events). ¥ An overall summary for the project to date including measure(s) of work completed. 8 This standard expectation is a requirement under ORS 279B.060(2)(a). ATTACHMENT 1 Page 14 of 28 10 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 III. CONTRACTOR QUALIFICATIONS AND REQUIREMENTS This section describes the qualifications required of the Bidder, including business experience, professional resources, financial capacity, insurance coverage, and special considerations. Bidder must be able to agree to and comply with all standard contractual requirements as presented in the sample contract in Exhibit D. Additionally, Contractor must meet the following minimum qualifications. A. EXPERIENCE AND PAST PERFORMANCE Bidders must demonstrate qualifications of key personnel, team members and sub-contractors, and relevant experience each has had with the harvest, processing, and marketing of poplar or similar plantations. Qualifying Bidders must demonstrate the following capabilities: ¥ Qualifications and relevant experience with the type of work required. ¥ List experience with at least three similar or closely related projects within the past five years. ¥ Provide contact information for three or more references who can attest to the qualifications and past performance of the Bidder. B. FINANCIAL CAPACITY Only Qualified contractors having the financial strength, bonding capability, operational experience, and ability to financially undertake the project will be considered. Qualified Bidders shall be able to comply with the following financial requirements: ¥ Demonstrate financial integrity through three years of similar work or services. ¥ Have the financial capacity to carry performance and payment bonds to guarantee the delivery of services requested. C. INSURANCE COVERAGE Bidders are strongly encouraged to review the insurance requirements specified in Exhibit B with their insurer to determine their ability to obtain the required insurance prior to submitting a Bid. These insurance requirements may generate additional premiums which must be anticipated in the Bid prices. If a Bidder is not able to procure the required insurance, the Bidder shall note any and all exceptions in the Bid Submittal Form and any other relevant sections with related appropriate details. All insurance required shall be obtained through a company or companies having a policyholders’ best’s rating of at least A-VIII. Such company or companies shall be duly authorized to transact business in the State of Oregon and shall be acceptable to the MWMC. All insurance carried by the Contractor shall be primary to any insurance or self-insurance of the MWMC. ATTACHMENT 1 Page 15 of 28 11 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 The Bidder awarded the contract (Contractor) shall not commence work until it has provided the MWMC with the required insurance certificates in a manner acceptable to the MWMC. The Contractor’s failure to maintain any of the required insurance shall be sufficient cause for termination or suspension of the contract. The Contractor shall ensure that all of its subcontractors of any tier provide insurance coverage and limits identical to the insurance required of the Contractor under the contract, unless lesser coverage is proposed, reasonable, and acceptable to the MWMC. ATTACHMENT 1 Page 16 of 28 12 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 IV. BID SUBMITTAL, EVALUATION, AND SELECTION PROCESS This section describes the procedure for Bid submittal, the criteria by which Bids will be evaluated, and the selection of the lowest responsible Bidder. A. SUBMITTAL PROCESS Bidders shall follow the requirements and procedures below in preparing their final Bid document and ensuring proper submittal and receipt. ¥ Submit no later than 12:00 p.m. on the Bid closing date. ¥ Submit Bid Submittal Form and all required additional forms. Bidders who are unable or unwilling to meet one or more the requirements of this ITB, including required insurance, should include as part of their response, written exceptions to those requirements, as well as any exceptions to the ITB or conditions of the contract taken by the Bidder. B. BID SUBMITTAL FORM All Bids must include the following six elements of the Bid Submittal Form as identified in Table 2 and described in specific detail below. Table 2. Bid Submittal Form Elements Bid Form Bid Element Part 1 Cover Sheet Part 2 Bid Sheet Part 3 Statement of Qualifications Part 4 Financial Integrity Part 5 Legal Compliance Part 1: Cover Sheet The cover letter must include business name, mailing address, e-mail address, website address, and telephone number of the primary contact for the project and to whom all related correspondence from the MWMC would be sent. The cover sheet includes a statement of resident Bidder which must be checked. If the Bidder is not a resident Bidder, the Bidder may provide additional detail on their business relation to Oregon. A principal member of the Bidder’s firm authorized to bind the firm must sign the Bid. Included with the signature should be the principal’s printed name, title, address, email and telephone number. Part 2: Bid Sheet The Bid Sheet included in the Bid Submittal Form is available as a Microsoft Excel-based worksheet form that allows entry only in the price-per-unit cost boxes. Total costs will be automatically calculated based on the MWMC’s assumed total units for the project. Bidders may print and hand ATTACHMENT 1 Page 17 of 28 13 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 enter or type their unit cost bids if electronic completion is not feasible. Bidders may elect to calculate total extended costs (should automatic calculation in Excel not be feasible) but doing so is NOT required. The Bids will be evaluated for lowest apparent unit cost based on each of the four Bid Items. The MWMC may opt to enter into one or multiple contracts for services as bid on the Bidder’s Bid Sheet. The MWMC will take the following factors into consideration when making its decision to award one or multiple contracts: ¥ Total extended costs of multiple Bid Items; and ¥ Likelihood of economies of scale by awarding one or more of the contracts to the same Bidder. Part 3: Statement of Qualifications Provide the information requested on the Bid Submittal Form, including: ¥ Background. Describe briefly the Bidder’s capability/experience to provide the requested services. Indicate how many years the company has been in business (as relevant to each of the Bid Item scopes of work). ¥ Relevant Experience. List at least 3 similar projects recently completed (within the past 5 years). List at least two projects directly relevant to each of the Bid Items elements (Harvest, Marketing, Stump Treatment). ¥ Project Readiness. List the names of key personnel who would act in supervisory and professional capacities on the project. Specifically identify the proposed main contact for the MWMC for the duration of the project. o Include a list of proposed subcontractors, if any, who will perform more than 5% of the work and anticipated work to be provided by the subcontractor(s). ¥ References. List a minimum of three references with current contact information who can attest to Bidder’s performance on similar projects within the past 5 years. Part 4: Financial Integrity ¥ Document Bidder’s financial integrity based on similar work accomplished over the past three years of a magnitude similar to requested services. ¥ Identify and list any claims, lawsuits, or judgments against or pending with the proposing organization(s). In the event the MWMC desires additional information regarding the documentation of such claims, lawsuits, or judgments, the MWMC shall ask for such information and Bidder shall promptly provide it. ¥ Indicate capability to hold both payment and performance bonds; surety must be demonstrated prior to contract execution. ¥ Affirm that Bidder can and will sustain the levels of insurance coverage required per Exhibit B. Part 5: Legal Compliance ¥ The Bidder shall certify in the Bidder’s Bid, that the Bidder has not discriminated and will not discriminate against any minority, women or emerging small business enterprise or against a ATTACHMENT 1 Page 18 of 28 14 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 business enterprise that is owned or controlled by or that employs a disabled veteran in obtaining a required subcontract.9 ¥ Bidder shall not be listed on the Oregon Bureau of Labor and Industries (BOLI) list of persons having violated prevailing wage rate laws. If Bidder is from a state other than Oregon then Bidder shall not be listed on that state’s list of persons having violated prevailing wage laws. Bidder shall not be in violation of any tax laws.10 C. BID EVALUATION The MWMC shall provide written determination of the Bid that is the most advantageous to the MWMC based on the evaluation process, factors described in this ITB, and any negotiation with Bidders as authorized in this ITB and/or state law, if any. The MWMC intends to award the contract to the Bidder that submits the best combination of: ¥ The lowest unit cost for the Bid Items; and ¥ The economies of scale achieved by awarding one or more of the contracts to the same Bidder even if a different Bidder submits a lower unit cost for certain Bid Items. A Bid Evaluation Committee chaired by the MWMC Project Manager and comprised of staff members of the Regional Wastewater Program will evaluate Bids based on the factors set forth above and in Exhibit D (Bid Submittal Form). Committee members will meet to discuss the unit pricing and effect of economies of scale. D. AWARD OF CONTRACT Notice of Intent to Award Contract The MWMC shall notify Bidders of the results of the Bid Evaluation Committee’s findings immediately after the Bid Evaluation Committee has made its decision. Notification will occur via e- mail to the contact address provided by the Bidder. Duration of Contract The resulting contract for service will be in effect through December 31, 2017. All site operations shall be substantially completed by September 30, 2017 and fully completed by October 31, 2017. 9 Discrimination is defined as being in violation of subsection (1) of ORS 279A.110 10 In accordance with ORS 701.227 and ORS 305.385. ATTACHMENT 1 Page 19 of 28 15 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 V. BACKGROUND INFORMATION This section provides information about the MWMC’s Regional Wastewater Program, the Biocycle Farm poplar plantation, and the history of previous poplar harvests. A. THE EUGENE-SPRINGFIELD REGIONAL WASTEWATER PROGRAM Regional Wastewater Program Partnership The MWMC was formed by Eugene, Springfield, and Lane County through an intergovernmental agreement (IGA) in 1977 to provide wastewater collection and treatment services for the Eugene- Springfield metropolitan area. The seven-member Commission is composed of members appointed by the City Councils of Eugene (3 representatives), Springfield (2 representatives) and the Lane County Board of Commissioners (2 representatives). Since its inception, the Commission, in accordance with the IGA, has been responsible for oversight of the Regional Wastewater Program including: construction, maintenance, and operation of the regional sewerage facilities; adoption of financing plans; adoption of budgets, user fees and connection fees; adoption of minimum standards for industrial pretreatment and local sewage collection systems; and recommendations for the expansion of regional facilities to meet future community growth. Staffing and services have been provided in various ways over the 36 years of the MWMC’s existence. Since 1983, the Commission has contracted with the Cities of Springfield and Eugene for all staffing and services necessary to maintain and support the Regional Wastewater Program. Lane County’s partnership has involved participation on the Commission and support to the Lane County Metropolitan Wastewater Service District, which managed the proceeds and repayment of general obligation bonds issued to construct Regional Wastewater Program facilities. More information about the MWMC, the seven-person commission body, Regional Wastewater Program management, and wastewater facility operations is available at www.mwmcpartners.org. City of Eugene Facilities Operation The City of Eugene operates and maintains the regional wastewater facilities, which include the treatment plant (WPCF), the Biosolids Management Facility, the Biocycle Farm, the Beneficial Reuse Site, the regional pump stations, and the regional force mains and gravity sewers. In addition, major equipment replacement, infrastructure rehabilitation programs, and laboratory services are also managed by the City of Eugene. City of Springfield Administration Administration of the MWMC is provided by the City of Springfield. This includes legal and risk management services, financial management and accounting, budget and rate development, capital program administration, public policy development, intergovernmental coordination, and public education. The City of Springfield also provides long-range capital planning, design, and construction management. ATTACHMENT 1 Page 20 of 28 16 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 B. ABOUT THE BIOCYCLE FARM POPLAR PLANTATION The MWMC operates the Biocycle Farm, an approximately 596-acre facility hosting approximately 396 acres of poplar trees. The plantation was established as a permanent land application site for Class B biosolids, which are reclaimed from the wastewater treatment process. The plantation is irrigated through application of biosolids and recycled water. Land application of biosolids and recycled water is conducted under a National Pollutant Discharge Elimination (NPDES) Permit and a Biosolids Management Plan and Recycled Water Use Plan approved by the Oregon Department of Environmental Quality (DEQ). The Biocycle Farm is an agricultural hybrid poplar operation with a maximum allowed rotation age of 12 years.11 The farm is organized into three management units—MU1, MU2, and MU3—planted in years 201612, 2007, and 2009, respectively. The MWMC has operated the plantation with wood product generation in mind and has sought and collaborated on other emerging market opportunities for poplar. Geographic Location The Biocycle Farm is located northwest of Eugene, Oregon, adjacent to the MWMC’s Biosolids Management Facility operations at 29686 Awbrey Lane, Eugene, Oregon 97402. Figure 1. Biocycle Farm Vicinity Location and Site Layout Maps of the MU2 and MU3 planting layout are provided in Appendix 1. 11 The Biocycle Farm operates under agricultural rules associated with its designated land use as “farmed wetland,” which limits growth of poplar crops to 12 years or less (ORS 308A.056(3)(j)). 12 MU1 initially was planted in 2004 and subsequently fully harvested over 2013-2015. ATTACHMENT 1 Page 21 of 28 17 POPLAR HARVEST MANAGEMENT SERVICES ITB - May 3, 2017 Land Use Classifications The Biocycle Farm land is classified as farmed wetland and is zoned for exclusive farm use (EFU) with the exception of the southwestern 200 acres of MU1 that lies with the urban growth boundary (UGB). The area within the UGB is zoned for Heavy Industrial (I-3) use but is retained in farmland use and has not been otherwise developed. As farmed wetland, only agricultural and wetland uses are permissible on the EFU land.13 The Biocycle Farm is managed to retain seasonal wetland hydrology while under agricultural use. Two wetland swales transect the site, one of which results in a 400- foot-wide buffer dividing the MU1 and MU2 plantations. The other swale provides the northern boundary to MU2 and MU3. Class B Biosolids Management The MWMC applies biosolids14 to the plantation during the summer months. Biosolids are applied in liquid form via sprayers attached to hose reels. Recycled water is also applied via this system as warranted to augment irrigation. Only authorized personnel may be permitted onsite and access may be restricted during active biosolids application. Site Accessibility The Biocycle Farm is a controlled biosolids application site.15 The entire site is fenced and access is controlled through the main entrance to the MWMC’s Biosolids Management Facility at 29686 Awbrey Lane. Additional access points can be considered as needed for poplar harvesting and processing operations. Potential alternative access points include the south end of MU1 from Awbrey Lane and the north end of MU2 from Meadowview Road. Past Harvest Yields The MWMC expects minimum harvest yields from MU2 to match or exceed yields from MU1 harvest that occurred from 2013-2015. Largely, MU2 trees grew better than MU1 trees based on improved practices in planting and maintenance. In general, the mass of chips per acre increases proportionally to hog fuel with age. Table 3. Average Per Acre Yield of MU1 Harvests 2013-2015 Harvest Year Chip Yield Hog Fuel Yield Other Biomass Total Recovered Biomass 2013* 26.1 BDT 19.1 BDT 5.4 BDT 50 BDT 2014 27.8 BDT 16.5 BDT 1.6 BDT 46 BDT 2015** 33.6 BDT 18.3 BDT --* BDT 52 BDT * Yields from 2013 include extracted and grinded stump material. ** Other non-saleable biomass residuals in 2015 were spread onsite without weighing. Hog fuel yield in 2015 may have included onsite residuals left over from the 2014 harvest. 13 As farmed wetland, the Biocycle Farm is managed under agricultural rules, which limits the rotation age of hybrid poplar grown as a crop to a maximum of 12 years. 14 The MWMC manages its biosolids as Class B under DEQ rules. The biosolids are treated to levels that could meet Class A standards should the end use warrant the additional monitoring procedures required. 15 As a Class B biosolids application site and Class D recycled water application site, the Biocycle Farm is entirely fenced at the required setback distances from operations to prevent untrained personnel from entering the site. ATTACHMENT 1 Page 22 of 28 www.mwmcpartners.org ADDENDUM NO. 1 to the INVITATION TO BID for BIOCYCLE FARM MU2 HARVEST May 17, 2017 Project Name & Number: Poplar Harvest Management Services, P80083 Procurement Type: Goods & Services Project Location: MWMC Biosolids Management Facility and Biocycle Farm 29686 Awbrey Lane, Eugene, Oregon 97402 MWMC Project Manager / Contact: Mr. Todd Miller Environmental Management Analyst City of Springfield – Development & Public Works Department Environmental Services Division 225 Fifth Street, Springfield, OR 97477 tmiller@springfield-or.gov (541) 736-7137 Website Information: http://www.mwmcpartners.org/Bids.html ATTACHMENT 1 Page 23 of 28 Addendum No. 1 to the Invitation to Bid Biocycle Farm MU2 Harvest Contract Poplar Harvest Management Services Project (P80083) This Addendum No. 1 to the Invitation to Bid (ITB) for the subject project is hereby made a part of the ITB, and as such, supersedes anything within the ITB to date with which it may conflict. BID DUE DATE AND TIME The Bid due date was incorrectly advertised as Tuesday, May 24, 2017; the correct date is Wednesday, May 24, 2017. The Bid due date is correctly listed as May 24, 2017 in the ITB. The due date on the Bid Submittal Form is incorrectly listed as May 23, 2017 and shall be disregarded. The Bid due date and time is Wednesday, May 24, 2017 at 2:00 pm. The Bid due time is now extended to 2:00 pm (superseding the ITB due time of 12:00 noon). The bid opening time remains 3:00 pm. OTHER CORRECTIONS AND CLARIFICATIONS The following sections of the ITB are corrected or clarified as stated below. TITLE PAGE The ITB name and associated project name were inadvertently swapped. The project number was omitted. The correct reference names are as follows: Invitation to Bid for: Biocycle Farm MU2 Harvest Contract Project Name & Number: Poplar Harvest Management Services (P80083) II. AGENCY NEED FOR SERVICES (A) Scope of Work Responsibility for stump removal: the Contractor(s) responsible for the Bid Items 1 and 2 scopes of work shall be responsible for removing and processing any uprooted stumps. Stumps that can be cut flush to ground surface may to be left for the Bid Item 4 scope of work (stump ATTACHMENT 1 Page 24 of 28 treatment). Processing of uprooted stumps may be accomplished on site through grinding and spreading with other residual material as mulch. Spreading of poplar residuals: the intent of spreading residual poplar grindings as mulch is primarily to suppress weed growth during subsequent tree establishment. Therefore, mulch layers shall be concentrated on tree rows per specifications (Exhibit C). Saw log specifications: the ITB incorrectly references specifications for peeler logs as Attachment NN; the correct reference is Exhibit C. The Bidder shall be responsible for ensuring that logs are processed to meet the peeler log specifications in Exhibit C. The MWMC shall notify the Bidder completing the Bid Item 1 scope of work of the quantity of saw logs requested a minimum of two (2) business days in advance of requiring the Bidder to start saw log processing. Additionally, processing of saw logs is an option that the MWMC may request; however, the Bidder may pursue saw log sales independently of the MWMC’s industry connections as part of the Bidder’s market costs for Bid Item 3. Cold decking: The ITB scope of work identifies the potential for cold decking saw logs for sales to a third party arranged through the MWMC. The MWMC understands that should a third party log sale be arranged, the buyer may want to ship logs as close to harvest time as possible; therefore, the log decks may not sit long before loading. Currently, the MWMC’s buyer’s interest is tentative and the Bidder should plan for marketing 100% of the poplar materials if no log sales are contracted by the MWMC.However, the MWMC intends to test market saw logs if possible. The Bidder can submit multiple Bid Sheets as part of Bidder’s submittal should the Bidder find that significant cost differences arise depending on “saw log sales” or “no saw logs sales” final condition. Refer to the amendments to Section IV (B) below for instructions on submitting multiple Bid Sheets. (B) Anticipated Duties of the Contractor The ITB identifies a principal duty as “Harvest Poplar” with associated tasks of complete harvest of MU2 and damaged tree removal of MU3 to be completed no later than September 30, 2017. Completion date is a performance expectation; Bidders should refer to the amended statement regarding performance expectations below. Harvest Plan: the ITB identifies a principal duty as “Document Harvest Plan” for acceptance by the MWMC project manager. This duty is more appropriately a “Mobilization and Staging Plan” and shall be required of each Bidder contracted to perform any of the Bid Items. Refer to Section V of the ITB and amendments to Section V of the ITB for additional information regarding site access and staging. (C) Performance Expectations Timely completion of the project is identified in the ITB as to be within the timeframe of July 1, 2017 through October 31, 2017. This performance expectation is clarified as follows: ATTACHMENT 1 Page 25 of 28 On-site work may proceed as early as mid- to late June depending on the dates of final contract execution, including all bond and insurance documentation, and Contractor’s submittal of an acceptable Harvest Plan per the scope of work. The Bidder shall plan for substantial completion of harvest work by September 30, 2017 and for all final site clean up and stump treatment by October 31, 2017 as stated in the ITB. The Bidder shall also plan for contingencies in the event of early onset of wet weather conditions. The Bidder should allocate adequate resources for timely completion of the project. The MWMC retains the right to stop work if weather conditions present perceived risks to the MWMC (such as fire risk or saturated ground rutting/compaction risks). Reasonable delays, unforeseen weather events, and other schedule impacts shall be communicated by the Bidder to the MWMC within five (5) business days of Bidder’s awareness of potential schedule impacts. III. CONTRACTOR QUALIFICATIONS AND REQUIREMENTS The Bidder is required to be licensed under the Oregon Landscape Contracting Board (LCB). Should a Bidder elect to bid on Bid Item 4(A) – stump treatment with herbicides, the Bidder will be required to document that the Bidder or Bidder’s subcontractor is a licensed herbicide applicator with the correct category of license. The Bidder shall provide the MWMC with the Bidder’s LCB and/or herbicide applicator’s license number(s) in the “Business Name” line on Part 1 of the Bid Submittal Form; if more space is needed, the Bidder may include the licensing number(s) on page 3 of the Bid Submittal Form in the box for Bidder’s explanations or exceptions. IV. BID SUBMITTAL, EVALUATION, AND SELECTION PROCESS (B) Bid Submittal Form Bid Sheet clarifications: Bid units – all Bids shall be submitted based on the units defined on the Bid Sheet (either dollars per acre or dollars per bone dry ton (BDT). If a Bidder is basing the Bidder’s pricing based on market units of green tons, the Bidder shall convert the pricing to the dollars-per-BDT equivalent by calculating a conversion rate of 60% BDT per green ton. For example, 10 green tons x 60% = 6 BDT. Quantity – the estimated quantities represented on the Bid Sheet reflect the MWMC’s best understanding of likely harvest yield based on previous harvest experience; quantities are not guaranteed and are not based on actual measurements. The MWMC estimates that at yield of pulp wood for chips or logs should be at least 30 BDT/acre. In the event that saw logs are produced for the MWMC, the MWMC estimates the remaining chip yield will be reduced to 10 BDT/acre as noted on the Bid Sheet. Multiple Bids – a Bidder may offer multiple Bids under the same Bid by submitting more than ATTACHMENT 1 Page 26 of 28 one Bid Sheet along with the rest of the Bid Submittal Form. The submittal of multiple bids shall be described in the Bidder’s Explanations on page 3 following the Part 1 Cover Sheet. Examples of when multiple Bids may be beneficial: If a Bidder determines the Bidder can offer the MWMC a better overall price on Bid Items under the condition that the Bidder is awarded all the Bid Items bid on, but the Bidder can also offer adjusted bid prices on individual Bid Items in the event those items are awarded to separate contractors, the Bidder may submit a separate Bid Sheet for each of its defined options (e.g. “Bid Option 1: Award of all Bid Items to Single Bidder” and “Bid Option 2: Award of Bid Items to Multiple Bidders.” If a Bidder determines that the market rates/economies of scale are impacted by the total mass of chips or logs produced for market, the Bidder may submit two or more Bid options with different prices (e.g. “Bid Option 1: 10 BDT/acre chip equivalent sold” and “Bid Option 2: 30 BDT/acre chip equivalent sold”). The extended price on the Bid Sheet is based on 10 BDT/acre; the MWMC shall evaluate Bids based on the unit price only and will recalculate the extended price should that Bidder’s option be selected as the best cost Bid. (C) Bid Evaluation The ITB references the Bid Submittal Form as “Exhibit D”; this is incorrect. The correct reference to the Bid Submittal Form location is Attachment 2. In the case a Bidder submits multiple bids, the Bid Evaluation Committee will take each separate bid into consideration on its own merits and in considering the economies of scale as described in the ITB as well as the opportunity for the MWMC to develop market relationships with buyers of saw logs or veneer blocks. (D) Award of Contract The intended duration of contract is as stated in the ITB. However, the contract duration and schedule may be altered or extended at the sole discretion of the MWMC per the considerations cited above regarding Section II (C) Performance Expectations. V. BACKGROUND INFORMATION (B) About the Biocycle Farm Poplar Plantation The following information supplements details about the Biocycle Farm layout and conditions as described in the ITB. Tree spacing – all trees are planted on a 14’ x 14’ spacing (14 feet between trees within rows and 14 feet between tree rows) as shown on maps presented in Appendix I of the ITB. Rows are oriented north-south in line with irrigation standpipe risers along the access road through the ATTACHMENT 1 Page 27 of 28 middle of each unit. An 8-foot wide grass row (alley) is maintained between tree rows. Site access – the ITB describes the main entrance to the Biocycle Farm as the driveway to the Biosolids Management Facility at 29686 Awbrey Lane. Instead, the main entrance for poplar harvest operations should be the “Site Entrance” location further west on Awbrey Lane as identified on Figure 1 of the ITB (Biocycle Farm Vicinity Location and Site Layout). The BMF driveway should be avoided as much as feasible due to concurrent biosolids drying activities at the BMF; loose biosolids from equipment can be picked up by passing vehicles using the driveway and should be avoided and cleaned off if unavoidable. The third access point noted in the ITB is off Meadowview Road to the north of the Biocycle Farm. Access from Meadowview Road is tentative and would need to be coordinated with the MWMC, due to the MWMC’s obligations to the tenant farmer who leases the fields between MU2 and Meadowview Road. Staging areas – possible staging areas include grass buffer strips surrounding the tree units, a 5- acre area of previously harvested (but not yet replanted) section of MU2 (southwest corner), an area south of MU3., and asphalt drying beds at the BMF. The drying beds will mostly be unavailable due to ongoing biosolids drying operations during the summer season. One drying bed (Drying Bed 13) could be available to contractors until it is closed for resurfacing starting August 1, 2017. That drying bed is the northeastern-most of the beds and closest to the Biocycle Farm. The MWMC may arrange to mow specific areas beneficial for staging, in coordination with the project contractor(s). Coordination of staging areas shall be part of the required Harvest Plan (or Staging Plan) prior to start of equipment mobilization. APPENDIX I - PLANTING LAYOUT AND MANAGEMENT UNIT MAPS The attached MWMC Biosolids Reuse Site Layout Map is added for further reference. ATTACHMENT 1 Page 28 of 28 MWMC P80083 Biocycle Farm MU2 Harvest INVITATION TO BID PART 2 – BID SHEET INSTRUCTIONS: Bidders may bid on one, all, or any combination of Bid Items; the MWMC reserves the right to award the contract to a single or multiple service provider(s). Contract(s) will be awarded on a per unit price basis. Enter Bid values in Unit Price column by double-clicking on the workbook to open it in Microsoft Excel. The Extended Costs will automatically calculate. Alternatively, print this sheet and hand-enter values. BID ITEM DESCRIPTION QUANTITY (estimated) UNIT OF MEASURE UNIT PRICE EXTENDED COST 1 Full harvest of MU2 including mob/demob, all tree felling, processing, and stockpiling, debris removal and mulching, and ground restoration. Assume 50% material meets sawlog specs. 117 acres $ - $ - 2 Partial harvest MU3 including mob/demob, all tree removal, processing, and stockpiling, debris removal and mulching, and ground restoration. Assumes no sawlog recovery. 15 acres $ - $ - Market chips and hog fuel, including all on-site loading, trucking/sales documentation, freight, and revenue accounting. Chip sales - net revenue. Assumes 10 BDT/acre (accounting for sawlog set aside) @ 132 acres.1,320 BDT $ - $ - Hog fuel sales - net revenue. Assumes 15 BDT/acre @ 132 acres.1,980 BDT $ - $ - Sawlog sales management. Assumes the MWMC is directly paid for FOB Origin sales from buyer (i.e. no Contractor revenue). Unsold logs shall be processed for chips/hog fuel sales. Assumes 20 BDT/acre of suitable sawlog material @ 117 acres. 2,340 BDT $ - $ - Market net revenue total (this is your bid for Item 3) $ - Stump management. Optional stump management through removal/grinding or herbicide in place to prevent regrowth. Option 1: Stump herbide treatment. Assumes 132 acres @ 222 stumps per acre.132 acres $ - $ - Option 2: Stump removal/grinding. Assumes 132 acres @ 222 stumps per acre.132 acres $ - $ - 3 4 ATTACHMENT 2 Page 1 of 1 Summary of Bid Options Received in Response to Invitation to Bid ATTACHMENT 3 Page 1 of 2 Table 1: Submitted Bidder Options – Extended Costs Based on Bid Unit Prices Bid Options Description of Bid Option Bid Item 1 (MU2 Harvest Cost) Bid Item 2 (MU3 Harvest Cost) Bid Item 3 (Market Sales Revenue) Total Cost (Harvest/Sales) LFP A Harvest and sell all, treat stumps $462,150 $66,750 ($171,600) $357,300 LFP B Harvest and deck logs, sell remainder, treat stumps $462,150 $66,750 ($19,500) $509,400 LFP C LFP A, no stump option $462,150 $66,750 ($171,600) $357,300 LFP D LFP B, no stump option $462,150 $66,750 ($19,500) $509,400 LFP E Harvest only, no sales $462,150 $66,750 N/A $528,900 LFP F LFP E, with stump option $462,150 $66,750 N/A $528,900 LFP G Stump option only N/A N/A N/A N/A LFP H Market sales only N/A N/A No Bid N/A GTFF 1 Harvest and sell all (logs, chips, hog fuel) $210,600 $27,000 $0 $237,600 GTFF 2 Harvest and deck logs, mulch remainder $210,600 $27,000 ($118,942) $356,542 Notes: Since no Bidder offered services on Bid Item 3 independent of Bid Items 1 and 2, and since the MWMC’s potential independent log sale buyer has withdrawn interest, the only options the bid evaluation team needed to consider were LFP A and GTFF 1 (full harvest and market sales by the Bidder). Of those, GTFF 1 presents the lowest cost Bid to the MWMC. Bid Item 4 (Stump Treatment) is optional and independent of Bid Items 1, 2, and 3. LFP bid on both Bid Item 4 (Stump Treatment) options (Option 1 – Herbicide and Option 2 – Grinding). For Bid Item 4, GTFF bid only on Option 2. Table 2: Submitted Bidder Options for Bid Item 4 – Extended Costs Based on Bid Unit Prices Bidder Bid Item 4, Option 1: Herbicide Cost Bid Item 4, Option 2: Removal/Grinding Cost LFP $79,200 $264,000 GTFF N/A $264,000 Summary of Bid Options Received in Response to Invitation to Bid ATTACHMENT 3 Page 2 of 2 Table 3: Unit Prices – Current Bids Compared to Past MU1 Calculated Equivalents Comparison Bulk Harvest Cost ($/acre) Partial Harvest Cost ($/acre) Chips Revenue ($/BDT) Hog Fuel Revenue ($/BDT) Stump Removal Cost ($/acre) Stump Herbicide Cost ($/acre) MU1 2013 $3,625 N/A $66.11 $10.98 $1,195 N/A MU1 2014 $3,072 N/A $91.73 $12.37 $1,176 N/A MU1 2015 $3,316 N/A $104.65 $7.72 $2,354 N/A MU2 2015 N/A $4,000 N/A N/A $1,208 N/A LFP A Bid $3,950 $4,450 $55.00 -$15.00 $2,000 $600 GTFF 1 Bid $1,800 $1,800 N/A N/A $2,000 N/A Notes to Table 3: BDT: Bone Dry Ton Past MU1 calculated equivalents are best assessment of costs associated with compared cost item. Per unit costs were not contractual and were based on the contractor’s submitted cost data for market value, associated material freight, harvest-associated activities, and stump removal and final site clean up costs. The stump removal cost for MU1 2015 activity included final site clean up that included some of the previously harvested acreage. METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 17-09 ) IN THE MATTER OF CONTRACT AWARD ) FOR MWMC PROJECT P80083 – ) POPLAR HARVEST MANAGEMENT ) SERVICES - BIOCYCLE FARM MU2 ) HARVEST (TREE HARVEST AND ) MATERIAL MARKETING) WHEREAS, Fiscal Year 2016/2017 Budget includes Biocycle Farm Poplar Harvest Management Services, Project P80083; WHEREAS, the Metropolitan Wastewater Management Commission (MWMC) has followed the procedures for competitive sealed bidding set forth in MWMC's Procurement Rules, Section 137-047-0255; WHEREAS, MWMC advertised an Invitation to Bid (ITB) for Poplar Harvest Management Services – Biocycle Farm MU2 Harvest contract on May 3, 2017; WHEREAS, MWMC received Bids from two (2) respondents on May 24, 2017; WHEREAS, an interagency evaluation committee comprised of members from the Springfield Environmental Services Division and the Eugene Wastewater Division (Evaluation Committee) evaluated the Bids pursuant to the criteria in the ITB and MWMC legal counsel reviewed the Bids pursuant to applicable law and determined that GTFF Mill Corp. was the lowest cost responsive Bidder for Bid Items 1, 2, and 3 (tree harvest and material marketing); WHEREAS, pursuant to MWMC Procurement Rule 137-047-0610, a conditional notice of MWMC's intent to award the contract was issued to the Bidder on May 31, 2017; WHEREAS, pursuant to MWMC Rule 137-047-0740, the protest period will expire if no protest is received within seven (7) calendar days after the date of the conditional notice of intent to award the contract; WHEREAS, after the expiration of the protest period without a protest and after the conditions set forth in the MWMC legal counsel’s letter have been satisfied, the award of contract shall automatically become final; WHEREAS, contract negotiations between regional wastewater staff and GTFF Mill Corp. are expected to be successful; and WHEREAS, the MWMC has appointed Anette Spickard as its duly authorized Executive Officer for efficient execution of the day-to-day administration of MWMC business. NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION: ATTACHMENT 4 1 of 4 Anette Spickard, as the duly authorized Executive Officer of the MWMC, is hereby authorized to: a) Execute a contract agreement with GTFF Mill Corp. for Poplar Harvest Management Services – Biocycle Farm MU2 Harvest (Tree Harvest and Material Marketing), Project P80083 for an authorized amount not-to-exceed $237,600; and b) Delegate performance of project management functions including, but not limited to, issuance of notices to proceed, execution of contract amendments not to exceed a cumulative total of 15% ($35,640) of the initial contract amount, and management of the contract to ensure deliverables and services meet the contract requirements. ADOPTED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION OF THE SPRINGFIELD/EUGENE METROPOLITAN AREA ON THE 9TH DAY OF JUNE 2017. ________________________________________ President: Bill Inge ATTEST: _______________________________ Secretary: Kevin Kraaz Approved as to form: _______________________ MWMC Legal Counsel: K.C. Huffman ATTACHMENT 4 2 of 4 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 17-10 ) IN THE MATTER OF CONTRACT AWARD ) FOR MWMC PROJECT P80083 – ) POPLAR HARVEST MANAGEMENT ) SERVICES - BIOCYCLE FARM MU2 ) HARVEST (STUMP TREATMENT) WHEREAS, Fiscal Year 2016/2017 Budget includes Biocycle Farm Poplar Harvest Management Services, Project P80083; WHEREAS, the Metropolitan Wastewater Management Commission (MWMC) has followed the procedures for competitive sealed bidding set forth in MWMC's Procurement Rules, Section 137-047-0255; WHEREAS, MWMC advertised an Invitation to Bid (ITB) for Poplar Harvest Management Services – Biocycle Farm MU2 Harvest contract on May 3, 2017; WHEREAS, MWMC received Bids from two (2) respondents on May 24, 2017; WHEREAS, an interagency evaluation committee comprised of members from the Springfield Environmental Services Division and the Eugene Wastewater Division (Evaluation Committee) evaluated the Bids pursuant to the criteria in the ITB and MWMC legal counsel reviewed the Bids pursuant to applicable law and determined that Lane Forest Products, Inc. was the lowest cost responsive Bidder for Bid Item 4 (stump treatment); WHEREAS, pursuant to MWMC Procurement Rule 137-047-0610, a conditional notice of MWMC's intent to award the contract was issued to the Bidder on May 31, 2017; WHEREAS, pursuant to MWMC Rule 137-047-0740, the protest period will expire if no protest is received within seven (7) calendar days after the date of the conditional notice of intent to award the contract; WHEREAS, after the expiration of the protest period without a protest and after the conditions set forth in the MWMC legal counsel’s letter have been satisfied, the award of contract shall automatically become final; WHEREAS, contract negotiations between regional wastewater staff and Lane Forest Products, Inc. are expected to be successful; and WHEREAS, the MWMC has appointed Anette Spickard as its duly authorized Executive Officer for efficient execution of the day-to-day administration of MWMC business. NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION: Anette Spickard, as the duly authorized Executive Officer of the MWMC, is hereby authorized to: ATTACHMENT 4 3 of 4 a) Execute a contract agreement with Lane Forest Products, Inc. for Poplar Harvest Management Services – Biocycle Farm MU2 Harvest (Stump Treatment), Project P80083 for an authorized amount not-to-exceed $79,200; and b) Delegate performance of project management functions including, but not limited to, issuance of notices to proceed, execution of contract amendments not to exceed a cumulative total of 15% ($11,880) of the initial contract amount, and management of the contract to ensure deliverables and services meet the contract requirements. ADOPTED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION OF THE SPRINGFIELD/EUGENE METROPOLITAN AREA ON THE 9TH DAY OF JUNE 2017. ________________________________________ President: Bill Inge ATTEST: _______________________________ Secretary: Kevin Kraaz Approved as to form: _______________________ MWMC Legal Counsel: K.C. Huffman ATTACHMENT 4 4 of 4 M E M O R A N D U M DATE: June 2, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Matt Stouder, General Manager SUBJECT: System Development Charges ACTION REQUESTED: Discussion and direction regarding next steps for waiving or incentivizing System Development Charges _____________________________________________________________________ ISSUE Staff has recently received requests asking the MWMC to consider waiving regional wastewater system development charges (SDCs). The MWMC does not have policy guidance associated with requests to waive SDCs, and staff is seeking direction from the Commission on the issue. BACKGROUND SDCs are impact fees that are generally collected when expansion, new development or intensification of use occurs on a property served by municipal infrastructure (wastewater, stormwater, transportation, etc.). SDCs allow for the accumulation of capital funding needed to provide sufficient capacity in infrastructure systems to accommodate growth associated with development/redevelopment. SDCs also provide for the ability to recoup a portion of the community’s investment in existing infrastructure. The MWMC has an existing SDC methodology (46 pages; located at http://www.mwmcpartners.org/AboutMWMC/Documents/2009-SDCupdate.pdf), which meets Oregon requirements and was developed with the guidance of a Citizen Advisory Committee. MWMC’s SDC methodology was adopted by the Commission on September 11, 2009, following a 90-day public notification process and public hearing. On January 13, 2017, after completing a review of the regional wastewater SDCs to ensure equity and fairness in the amounts by type and establishment, the Commission conducted a public hearing and thereafter adopted modifications to the regional SDC capital improvements project list and the revised 2017 SDC Fee Schedule (Attachment 1). SDC Waivers/Incentives --- History of Partner Agencies and MWMC The City of Eugene has not provided SDC waivers or incentives in the past, but has on occasion paid for SDCs on behalf of a particular development from another City fund or from property tax revenues. Memo: System Development Charges June 2, 2017 Page 2 of 3 The City of Springfield has provided SDC incentives in the past in an effort to spur economic growth. In 2012, the Springfield Council authorized a 50% reduction to local SDC’s for all development types for the period of February 7, 2012 to December 31, 2012. The City has also used Urban Renewal Funds in some instances to pay the SDCs on behalf of a developer in one of its two Urban Renewal Districts. The MWMC has not provided SDC waivers or incentives in the past, and the Commission does not have a policy in place regarding criteria for waivers or incentives. Recent Requests Regional wastewater program staff recently received a request from Square One Villages, a local 501(c)3 nonprofit organization, asking MWMC to consider waiving (or paying on behalf of the developer) SDCs for 22 “tiny” homes as part of a planned development in Eugene (Attachment 2). Staff also understands that the Springfield City Council will direct Springfield staff at its June 5, 2017 meeting to formally request the MWMC to consider waiving regional SDCs for accessory dwelling units (ADU’s) built in Springfield for an upcoming two-year period. DISCUSSION The matter of considering whether or not to waive, incentivize or pay SDCs on behalf of a development raises a number of questions and policy issues that will require further investigation. Staff is currently investigating these issues, which generally fall into one of the categories discussed below. Intergovernmental Any action the Commission may take with respect to SDCs will need to be consistent with the terms of MWMC’s Intergovernmental Agreement (IGA). After discussion with legal counsel, it appears a conflict may exist with the language in the IGA regarding revenue adequacy and the requirement to uniformly charge SDC’s throughout the service area to achieve full cost recovery. This issue will require further evaluation and follow up, and very possibly an IGA update. Consistency across the region is another intergovernmental factor requiring consideration. For example, if MWMC were to waive SDCs for ADU’s in Springfield, then they would also need to be waived in Eugene to be consistent across both cities. Additional intergovernmental factors that require consideration and investigation include: Is an SDC methodology change needed to grant a waiver or incentive? Are there any bond covenants that would be affected by an SDC waiver or incentive? Which governing bodies would need to approve the request? Would it be just Eugene and Springfield, or also Lane County? Would Eugene and Springfield need to adopt a consistent definition of what constitutes an ADU and/or Tiny House? Staff time associated with preparing and presenting Memo: System Development Charges June 2, 2017 Page 3 of 3 Rationale When considering waiving, incentivizing or paying SDCs on behalf of a specific development or development type, the collecting agency generally has a specific rationale for doing so. Usually, the rationale is to try to stimulate economic development within the community or to incentivize a specific kind of development type that is a priority of the governing body. The MWMC’s Mission, Vision and Values statements, as well as regional wastewater program purpose and key outcomes do not list incentivizing development as a core function of the MWMC. However, there are other factors that the MWMC could consider as rationale for waving or incentivizing SDCs. These include, but are not limited to: Does the development type provide a direct benefit to water quality? Will the development result in a decrease in treatment costs at the Water Pollution Control Facility (WPCF)? W ill the development have a significantly lesser impact on the overall system? Equity Ensuring equity across the region (Eugene and Springfield) as well as between user classes is a concern in any conversation involving SDCs. Currently, there is no statutory authority that exists to allow MWMC to waive or incentivize SDCs for projects on the basis of preference. Therefore, if the MWMC were to consider waiving SDCs on the basis of non-profit ownership (e.g. Square One Villages) the waiver would also need to extend to all non-profits across the region. Financial An evaluation of the financial impacts associated with any SDC waiver or incentive would require careful attention. The magnitude and scope of the impact would be dependent upon the request and potential action. However, any action taken that would result in the MWMC collecting less revenue in SDCs than would otherwise be the case would require a need to make up the funding difference elsewhere (i.e. user fees, a lesser transfer to capital reserves, etc.). ACTION REQUESTED Staff requests discussion from the Commission on the topic of regional wastewater SDC’s and next steps. ATTACHMENTS 1. 2017 MWMC SDC Fee Schedule 2. Square One Villages SDC Waiver Request Metropolitan Wastewater Management CommissionRegional Wastewater SDC Charge Schedule - Total Cost per FEU%Change500Very High500Very High500Very HighEATING PLACE WITH MINIMAL FOOD PREPARATION*** TGSF300410 615 1,193 150 Low0.5130.513$211.19 $3,112.23 $39.13 $431.68 $2,930.878355DDRINKING PLACE WITH MINIMAL FOOD PREPARATION*TGSF340464 697 1,353 150 Low0.5810.581$239.35 $3,527.20 $44.34 $489.24 $3,321.65DRINKING PLACE WITH RESTAURANT LIKE FOOD PREPTGSF500683 1,024 1,989 150 Very High 3.989 3.989 $1,202.69 $12,429.97 $160.50 $1,609.26 $12,183.89ATTACHMENT 1 Page 1 of 2 Metropolitan Wastewater Management CommissionRegional Wastewater SDC Charge Schedule - Total Cost per FEU%ChangeABBREVIATIONSNOTESATTACHMENT 1 Page 2 of 2 Executive Director Dan Bryant 541-344-1425 Program Director Andrew Heben Project Director Alicia Ginsberg Board of Directors President: Lorne Bostwick Vice-President: Steve Gibson Secretary: Susan Schroeder Treasurer: Donna Reitz Michael Carrigan Val Hoyle Justin King Wesley Lucas Minalee Saks 458 Blair Blvd Eugene OR 97402 SquareOne Villages is a 501(c)(3) nonprofit organization. Tax ID # 46-0801991 www.squareonevillages.org Like us on Facebook Our mission: to create self- managed communities of low-cost tiny homes for people in need of housing. April 28, 2017 Subject: Letter of Support for Square One Villages To the Metropolitan Wastewater Management Commission Square One Villages is a Lane County based 501(c)3 nonprofit providing housing to men, women and families who otherwise would likely be homeless. It’s work includes a continuum of housing types including innovative and highly cost-effective dignified living units scattered throughout the county. It’s efforts are lauded broadly and it’s CEO, Dan Bryant has personally conducted tours to commissioners and other officials from more than two dozen Oregon cities and counties. One of the nation’s more innovative housing projects is underway in Eugene. Emerald Village Eugene (EVE) is completing the planning stage and entering into construction of 22 “tiny” houses. Each house is architecturally designed and will provide self- contained safe, secure and sanitary places to live. More details are on their website: http://www.squareonevillages.org/emerald All of the architectural design and much of the labor and construction material is donated. The nonprofit purchased the property on Railroad Boulevard, Eugene that the village will be constructed on. So far the City of Eugene has paid system development charges (SDC’s) in excess of $119,000. Additionally EWEB has provided metering concession that will save the village $400 per month in perpetuity by allowing for only two meters instead of 22, one for each unit. The board of EVE is asking MWMC to consider waiver or payment of its SDC’s which are listed at $1500 per unit, to the total amount of $33,000. We appreciate the consideration of this request and can provide more information upon request. Sincerely, Dan Bryant, Square One Villages ATTACHMENT 2 Page 1 of 2 PAT FARR Lane County Commissioner North Eugene District Pat.Farr@co.lane.or.us PUBLIC SERVICE BUILDING / 125 EAST 8TH AVENUE / EUGENE, OR 97401 / (541) 682-4203 / FAX (541) 682-4616 April 28, 2017 Subject: Letter of Support for Square One Villages To the Metropolitan Wastewater Management Commission Square One Villages is a Lane County based 501(c)3 nonprofit providing housing to men, women and families who otherwise would likely be homeless. It’s work includes a continuum of housing types including innovative and highly cost-effective dignified living units scattered throughout the county. It’s efforts are lauded broadly and it’s CEO, Dan Bryant has personally conducted tours to commissioners and other officials from more than two dozen Oregon cities and counties. One of the nation’s more innovative housing projects is underway in Eugene. Emerald Village Eugene (EVE) is completing the planning stage and entering into construction of 22 “tiny” houses. Each house is architecturally designed and will provide self-contained safe, secure and sanitary places to live. More details are on their website: http://www.squareonevillages.org/emerald All of the architectural design and much of the labor and construction material is donated. The nonprofit purchased the property on Railroad Boulevard, Eugene that the village will be constructed on. So far the City of Eugene has paid system development charges (SDC’s) in excess of $119,000. Additionally EWEB has provided metering concession that will save the village $400 per month in perpetuity by allowing for only two meters instead of 22, one for each unit. The board of EVE is asking MWMC to consider waiver or payment of its SDC’s which are listed at $1500 per unit, to the total amount of $33,000. We appreciate the consideration of this request and can provide more information upon request. Sincerely, Dan Bryant, Square One Villages Pat Farr, Lane County Commissioner ATTACHMENT 2 Page 2 of 2