CITY OF CARLSBAD RFP. NO AGREEMENT FOR THE PURCHASE OF EFFLUENT WASTE WATER

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1 CITY OF CARLSBAD RFP. NO AGREEMENT FOR THE PURCHASE OF EFFLUENT WASTE WATER General Information: The City of Carlsbad is soliciting formal sealed proposals for the purchase and use of Effluent Water generated at the City of Carlsbad Waste Water Treatment Plant facility. The City of Carlsbad produces effluent waste water at our treatment plant facility on a regular basis. The City desires to sale some of its effluent water resources to the public which may utilize this water for its own private or commercial use. The City seeks to publically solicit proposals from parties interested in entering into an agreement with the City to purchase a minimum of 25 acre feet of effluent water per month with an option to purchase additional effluent water up to 50 acre feet per month. Proposals must be received by City of Carlsbad, Purchasing Manager, Room 115, Carlsbad Municipal Building, 101 North Halagueno, Carlsbad, New Mexico no later than Monday, June 1, 2015 before 5:00 p.m. (MDT). Proposals submitted after the due date/time will not be accepted.

2 RFP. NO AGREEMENT FOR THE PURCHASE OR EFFLUENT WATER TERMS AND CONDITIONS The City will entertain offers for the purchase of effluent water from the City of Carlsbad Waste Water Treatment Plant that meet the following minimum conditions: A. The offerer must agree to purchase a minimum of 25 acre feet of effluent water per month. B. The offerer will have the right to purchase up to 25 acre feet of additional effluent water per month, with a maximum cap of 50 acre feet per month. C. The offerer agrees to provide at its own expense, suitable on-site water storage pumping and conveyance equip. Water hauling one tanker truck at a time will not be allowed. D. The storage tank will be located on City property, outside of the perimeter of the treatment plant facility. Offerer will be allowed to access the property to install the storage and conveyance equipt. and to provide maintenance to such equipt. E. The offerer agrees to maintain the operation and structural integrity of the storage and conveyance equipt. in addition to maintaining the overall appearance and condition of the tank site at its own expense. F. The City will provide the necessary infrastructure to move the effluent water from the treatment plant to the on-site storage facility provided by the offerer. G. The offerer will at its own expense establish a suitable connection to the City infrastructure to ensure the efficient transfer of effluent water into the offerer s storage facility. H. The City will meter the transfer of effluent water to the offerer s storage with metering equipment located within the treatment plant facility. The meter will be maintained and read by the City. I. The City will be responsible for invoicing the offerer on a once per month basis according to the usage determined by the City meter up to the 50 acre foot per month cap. The minimum monthly bill will be based on the 25 acrefeet minimum usage. The monthly bill will also include charges for any additional usage up to 50 acres-feet. J. The City s Wastewater Treatment Plant and the Effluent Storage Site are

3 located on County Road 606 (Tell Tale Lane). It will be the responsibility of the offerer to obtain, all the necessary permits to install transmission line(s) and any other equipment in the County Right-of-Way. K. The offerer agrees to provide a detailed explanation in its proposal of how it intends to use the effluent water, i.e., (hydraulic fracturing, irrigation etc.) L. The offerer agrees to abide by all applicable laws pertaining to effluent waste water use, transfer, transport, and discharge and will provide proof of any required licenses and/or permits related to the use, transfer, transport and discharge of the effluent waste water if applicable by law. M. The offerer agrees to obtain and maintain, at its own expense throughout the term of the agreement, public liability insurance in the sum of two million dollars ($2,000,000.00). The offerer shall provide the City with a current Certificate of Insurance. The insurance shall be with a company or companies licensed and authorized to do business in the State of New Mexico. The offerer shall annually furnish to the City a Certificate of Insurance for the above required insurances. The offerer shall provide the City with notice of any change thereof, and furnish to the City evidence of acquirement of a substitute therefore, and payment of the premium thereof. N. The offerer agrees to indemnify, save, and hold harmless the City, its officers, and employees against all liability, claims, damages, losses, or expenses of every kind, including reasonable attorneys' fees together with costs and expenses of litigation related to the terms and conditions of this agreement. O. Offerer must be willing and able to pay a deposit in an amount equivalent to 60 days security based on the anticipated minimum monthly usage at commencement of the agreement. Note: This requirement may be waived with satisfactory letter of credit from a financial institution. P. The term of this Agreement shall be for four (4) years in length, renewed annually. Instructions to Offerer: 1. Prospective offerers shall submit to the City of Carlsbad one original and five copies of their proposal in the following format: 2. All proposals must be delivered to the City in a sealed envelope. 3. All proposals shall be on 81/2 x 11 inch paper, type written.

4 4. Proposals shall include a cover letter which includes all necessary contact information and which is signed by the CEO/responsible party submitting the proposal. 5. Proposals shall be organized and tabbed as outlined below in the section entitled "Contents of Proposal." 6. Proposals will not be accepted by facsimile transmittal and the City of Carlsbad will not be responsible for any costs associated with or incurred in the preparation and submission of proposals. 7. Proposals including all cover letters and cover sheets shall not exceed 10 total pages in length. Proposals shall include the completed "Campaign Contribution Disclosure Form" included herein. 8. Correction or Withdrawal of Proposals: Proposals containing mistakes discovered by the oferer, prior to the proposal deadline may be modified or withdrawn prior to the time set for the receipt of such proposals. Withdrawn proposals may be resubmitted up to the date and time designated for the receipt of proposals. Proposal Evaluation: Proposals will be evaluated by City staff with a recommendation to the Carlsbad City Council. Approval of the agreement will be at the discretion of the City. The City will award the agreement on the basis of the most qualified offer that is most beneficial to the City using the criteria as outlined in the Terms and Conditions section of this request for proposals. The award of the agreement will be conditional upon acceptance by the City and approval of the Carlsbad City Council. The City reserves the right to accept or reject any or all offers. Content and Outline of Proposal A. General information 1. Name of proposer, address, telephone number. 2. Type: Individual/Sole Proprietorship Partnership (see Note 1) Corporation (see Note 2) Note 1: If a partnership, list the names & address of all partners, share percentages, role and date of partnership. Note 2: If a corporation, list state of incorporation, date of incorporation, names, titles and addresses of all principal officers, New Mexico Registered Agent and address of home office. B. Use of Effluent Water Describe how you plan to use the effluent waste water and the anticipated

5 monthly usage amount. C. Technical Approach and Resources The Offerer shall describe how the firm intends to meet the conditions outlined in the Terms Conditions Section, items A through P and the type and size of the storage tank(s) to be utilized and the method in which the water will be transferred from the the storage tanks at the City facility to the destination point of use. D. Financial Ability Demonstrate your firms ability to enter into and meet the financial obligations of this agreement. Provide any relevant documentation. (Most recent financial statements, letter of credit or deposit in an amount equivalent to 60 days of security. E. Offer Price Provide the price (per barrel/per gallon) you are willing to pay for the use of the effluent water. Please provide this information on the form provided by the City. (Attachment A).

6 Attachment A Please provide your offer price in the space provided below Effluent Water Proposed Offer Price per barrel $ Or Effluent Water Proposed Offer Price per Gallon $ Notes: City will invoice based on a price per unit of 1000 gallons per barrel of water is equal to 42 gallons. One acre-foot of water is equal to 325,850 gallons Signature Printed Name Title Company Name Date of Offer