CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #1 to Contract 23-026, Biosolids Removal Services, to Stewart Spreading, Inc. for an amount not to exceed $430,950
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director of Water Utilities
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 23-026 to Stewart Spreading on February 21, 2023, for a 22-month term from March 1, 2023, to December 31, 2024, with two, one-year options to extend. This contract provides removal, transportation, and land application of residual solids generated by the wastewater treatment process. The biosolids are hauled from the Springbrook Water Reclamation Center (SWRC) by a qualified licensed contractor to agricultural farmland and sod farms and applied in accordance with United States Environmental Protection Agency (40 Code of Federal Regulations Part 503) and other federal, state, and local regulations.
Public Act 103-0327, effective January 1, 2024, amended the Illinois Prevailing Wage Act to include the removal, hauling, and transportation of biosolids. City Council awarded Change Order #1 on April 16, 2024, to allow a rate increase to comply with this amended Act.
DISCUSSION:
During the original 22-month term of the contract, Stewart Spreading removed a total of 22,120 cubic yards of the estimated 26,000 cubic yards generated at SWRC. Weather permitting, up to 3,880 additional cubic yards will be removed at the current rate of $32 per cubic yard before the end of 2024.
Based on the vendor’s performance, Water Utilities would like to extend the contract for the first option year. Stewart Spreading has requested a 3.6% rate increase based on the Consumer Price Index change over the past 12 months. The proposed rate is $33.15 per cubic yard. An estimated 13,000 cubic yards will be hauled in 2025 at a total cost of $430,950. Staff recommends approval of this increase based on the price history for this service and current market conditions.
The term of the first option year is January 1, 2025, to December 31, 2025, with one, one-year option remaining.
FISCAL IMPACT:
CIP# N/A
Costs related to biosolids removal are proposed in the FY2025 budget at $431,000. Pending City Council’s approval of the budget in December, the requested contract award is within the budget. The expense will be assigned to the account number listed below.
|
Account Number |
Fund Description |
Proposed Budget |
|
41251530-531308 |
Water Utility Fund |
$476,000 |