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HomeMy WebLinkAbout2009-06-22 09-214 ORDERCOUNCIL ACTION Item No. 09 214 Date: 6-22-2009 Item/Subject: Order, Authorizing the Execution of a Contract Amendment with New England Organics Responsible Department: Wastewater Treatment Plant Commentary: New England Organics, Inc. (NEO) has provided biosolids disposal services for Bangor's wastewater treatment plant (WWTP) since January 1996. Biosolids are a byproduct of the wastewater treatment process. Our plant produces approximately 6,600 wet tons or about 9,600 cubic yards per year. NEO composts most of our biosolids which are eventually sold as a soil amendment. A small percentage is buried at the Juniper Ridge landfill. The original contract was structured to provide disposal services for five years with the option to renew the contract for three more five year periods. This amendment to the contract provides for a fuel adjustment surcharge for extraordinary fuel price increases. During negotiations, the City was able to include a provision that was not included in their original draft that limits the maximum increase over the base rate in any year to no more than 10%. They also removed the minimum load penalty. Staff has worked extensively with this vendor to address this particular contractual issue to the benefit of both parties. Staff's recommendation is to amend the contract as noted above. Department Head Manager's Comments: This has been reviewed and is recommended by the Finance Committee. R)7" \, I/ City Manager Associated Information: Budget Approval: Legal Approval: Introduced Introduced for X Passage First Reading Referral Page _of_ Finance Director WON 99 2' 121 Assigned to Councilor Bronson June 22, 2009 CI'T'Y OF BANGOR (T TLE.) Order, Authorizing the Execution of a Contract Amendment with New England Organics By the City Council of the City of Bangor. ORDERED, THAT the City Manager is hereby authorized to execute a contract amendment with New England Organics, subject to the approval of the City Solicitor, allowing for the imposition of a fuel adjustment surcharge for extraordinary fuel price increases. Ilii CITY COUNCIL June 22, 2009 Passed Lk _ (TITLE)) A»thnrizin4 tho Expejit—in3a of a Contract Amendment with New England Assigned to Councilor_ ?,-7Ana: