REGIONAL DISTRICT OF OKANAGAN-SIMILKAMEEN REQUEST FOR PROPOSALS ADDENDUM #1 FOR PRIVATE SECTOR ORGANICS MANAGEMENT JANUARY 14, 2016

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1 REGIONAL DISTRICT OF OKANAGAN-SIMILKAMEEN ADDENDUM #1 FOR JANUARY 14, 2016 By this Addendum # 1, the Request for Proposal document for the above noted Project shall be amended as specified below. In order to extend the closing date of this RFP by thirteen (13) calendar days please remove wording in 2.1. SUBMISSION OF PROPOSALS copied below. Proposals must be received on or before the Closing Time of: TIME: 3:00 PM local time DATE: Friday, February 5, 2016 And replace with wording copied below. Proposals must be received on or before the Closing Time of: TIME: 3:00 PM local time DATE: Thursday, February 18, 2016 Addendum #1 will share answers to questions posed by potential proponents as listed below. Question: As a Proponent, can I set up a private meeting with Regional District Staff or be provided a tour of potential landfill sites while this RFP is open? No. The Regional District has conducted several Expression of Interests where potential Proponents were allowed to ask informal questions. The public landfill sites are not part of this RFP process. Proponents are welcome to request clarifications or ask questions as per the RFP documents.

2 Question: The RFP is confusing. What does the Regional District intend to get from this RFP? The Regional District recognizes this RFP is unlike other Request for Proposals released by other local governments for Organic Management in British Columbia and, as such, may be confusing for proponents. From prior Expression of Interests, the Regional District is aware of parties with potential sites for lease or purchase, with interest in transferring waste to existing Organic Management facilities and with interest in developing Organic Management facilities on private properties within the Regional District boundaries. This RFP is intended as a format for these ideas to be presented to the Regional District for the Steering Committee to consider. This RFP is designed to save Proponents money by limiting their Proposal development cost. As defined by this RFP, Proponents only need to present a clear business plan on their proposed facility on a private piece of property. If selected, the Regional District will work with the Proponent to make their Private Service a success. If the Private Service is rejected due to issues with the selected private property the Proponent may still take part in any separate procurement process for developing an organic management facility on land leased or owned by a local government in the future. Question: What land is available at local landfills for developing a site through this RFP? This RFP is not intended to provide land at local landfills. Question: Will Proposals be accepted that recommend the Regional District move directly to development of a facility at a property provided by the Regional District? Only proposals that provide a private site for the treatment of organics will meet the basis of this RFP and will be considered as part of the Strategy process. Proposals received not meeting RFP criteria will be considered unsolicited information and the Regional District may or may not choose to review them. Questions: What scope should my proposal contain in terms of engineering work? Proposals for Private Service should include a business plan explaining the cost, technology and layout of the site as applicable. As a comparison, the Regional District conducted feasibility studies at landfill sites as per ASTM E Standard Classification for Cost Estimate Classification System between Estimate Class 2 and Class 3. Question: What type of tenure on the proposed site do I need to have to submit a Proposal? Proposals will be accepted with no tenure on an identified site. However, it is recommended that the proposal have a letter from the property owner identifying their interest in proceeding with your Proposal if it is selected by the Regional District. The Regional District will evaluate the Page 2 of 6

3 level of risk for proceeding with any Proposal including the likelihood of obtaining tenure on the property. Question: How will the existing composting sites managed by local governments be incorporated with any potential private compost sites? As shown in the background documents, only two sites, Campbell Mountain and Summerland Landfills, currently deal with bio-solids and both local governments have expressed interest in developing options for improving bio-solids handling including providing bio-solids to the private sector. The Campbell Mountain Landfill bio-solids compost site operated by the City of Penticton must be moved from its present location within the next several years. Other local government composting operations currently handle yard waste, harvest waste, green wood and agricultural waste brought to local landfills. These materials may be made available to selected Proponents as required. Question: How long a lease would the Regional District provide if a private group designed and operated an Organic Management Facility at a landfill site? Landfill sites are not a consideration for this RFP. Proponents may indicate their preferred contract length for a service at a property they are providing as part of this RFP response. Question: Can a private operator propose and own a private site? Yes. This is described as a Private Service option within this RFP. Question: Would the Regional District consider a Public Private Partnership for developing an Organic Management Facility? Will the Regional District consider funding all capital improvements? Both types of relationship would be considered, but in the context of this RFP, only for facilities on private property. Question: On Page 17 of the RFP states another RFP may be considered for development of an organic management facility on a site owned by the Regional District. Isn t this RFP doing that already? No. This RFP is specific to private sector Proposals for developing organic management facilities on private land. Page 17 refers to the potential of the Regional District to decline the private sector proposals received and instead develop a facility on land owned or leased by a local government. Question: This RFP seems to be asking for professional service for a group to design a compost site? How will operation of the site be established? Page 3 of 6

4 This RFP is not for design services. Companies came forward in the prior Expression of Interest that indicated they would obtain tenure on private land to create organic management facilities using their own technology based on their own designs. In this RFP they are called Private Service providers. They will be primarily responsible for design, construction and operations for their own site. Question: How will municipalities coordinate with the Regional District in developing Organic Management services? Member municipalities of the Regional District presently sit on the Steering Committee evaluating the results of this RFP. Commitments will be obtained from each municipality before any final feedstock commitments will be provided to a Private Service provider. Question: Are there existing contracts in place to manage organics at local landfills? The Penticton bio-solids composting operation is operated by local government staff. Regional District landfill compost sites are maintained by an operator on a per hour basis. No contracts for servicing compost sites are in place. Question: Will the Regional District accept proposals that are based on digestion of organics for the production of bio-gas or other forms of energy such as gasification of wood chips? Yes. These Proposals will be considered as long as they fit the format of this RFP of being located on private property. Question: Is an approach where bio-gas is used in waste collection vehicles a long term strategy for the Regional District? Do collection trucks in the Regional District run on natural gas? Using natural gas for garbage trucks in the future is a consideration but not presently an explicit goal for the Regional District. Presently the majority of residential waste collection in the Regional District and member municipalities is provided by Progressive Waste with diesel vehicles. The contracts for these services expire June 30 th, 2018 and the Regional District will be reviewing the potential for natural gas vehicles as part of future procurement processes. Question: Would the Regional District prefer bio-solids be composted with food waste? There is no restriction for Proposals that recommend mixing bio-solids and food waste for treatment. The Regional District assumes that compost containing bio-solids could be worth less than compost kept separate from bio-solids. Food waste compost with organic certification is expected to be of higher value. Question: I need to set an estimate for the materials to be received at my proposed facility. What estimate of materials should I use? Page 4 of 6

5 The RFP includes estimates of materials assumed to be available within the Regional District. Please explicitly show your estimates of feedstocks within your Proposal. Question: What odour complaints have existing composting sites received and can these complaints be provided to Proponents? Have there been other complaints such as vermin or trucking issues? No formal recording of odour complaints for existing local government composting sites are available. Local government staff state they have not had complaints related to vermin or trucking. Question: What is happening with the compost currently being generated? Compost containing bio-solids is being sold by the City of Penticton and District of Summerland. - City of Penticton compost is sold for $20 per tonne under 5 tonnes purchased and $12.50 per tonne for orders of over 5 tonnes. Currently the material, generally uncured compost, is undersubscribed. - District of Summerland compost is sold for $40 per tonne under 5 tonnes purchased and $25 per tonne for orders of over 5 tonnes. This is a more mature material, lower in biosolids, and is significantly undersubscribed at the time being. Compost containing only yard waste and fruit waste is sold by the Town of Osoyoos and the Oliver Landfill. - Osoyoos compost is sold for $50 per tonne under 5 tonnes purchased and $30 per tonne for orders of over 5 tonnes. It is fully sold out each year. - Oliver Landfill compost is sold at $50 per tonne and generally sells out each year. Other agricultural based compost is created and sold by private groups. Question: What volume of compost will local governments be purchasing for parks, fields and other grassy areas? Local governments may be interested in purchasing compost but the volume of materials has not been determined at this time. The Regional District is currently conducting a review of how local governments can use more compost as part of an internal compost marketing study. Question: Why does your flow chart show AWARD FACILITY DEVELOPMENT separately from AWARD PRIVATE SERVICE? Shouldn t they be the same? The flowchart is provided to show that the results of this RFP will be used to develop an overall Strategy. This Strategy may reject all Proposals received through this RFP in favour of developing a facility on local government leased or owned land. Question: What marketing support are local governments capable of providing? Page 5 of 6

6 Local governments can provide direct marketing in local newspapers and radio. Information on compost can also be included in regular local government mail outs. The Regional District provides free compost education including the appropriate use of compost for residents and has provided similar services for the agricultural sector. Developing more educational materials for the agricultural sector regarding the appropriate use of compost is a goal for the Regional District. A recent residential project was Love My Lawn where compost was provided to home owners to apply to grass to show the benefits of compost for water conservation and lawn health. What are the net tipping fees at local landfills for current feedstocks? Landfill Tipping Rates as of January 12, 2016; subject to change REFER TO SPECIFIC BYLAWS FOR DEFINITIONS Campbell Mountain, Oliver, Okanagan Falls Landfills and Keremeos Transfer Station* (per tonne) Summerland Landfill (per tonne) Osoyoos Landfill (per tonne) Princeton Landfill Garbage (includes food waste) $95 $65 $95 By vehicle type Yard waste kg; $50 per tonne over 500 kg per load kg; $20 per tonne over 500 kg per load kg; $50 per tonne over 500 kg per load $0 Wood waste kg; $50 per tonne over 500 kg per load kg; $20 per tonne over 500 kg per load kg; $50 per tonne over 500 kg per load $0 Fruit waste $10 $0 Same Yard waste $0 Agricultural waste $0 $0 Same Yard waste $0 *Okanagan Falls Landfill and Keremeos Transfer Station restrict some organic materials [End of Document] Page 6 of 6