CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #2 to Contract 23-026, Biosolids Removal Services, to Stewart Spreading, Inc. for an amount not to exceed $443,430 and for a one-year term
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
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. The City Council awarded Change Order #1 on April 16, 2024, to allow a rate increase to comply with this amended Act.
The City Council awarded the first Option Year on October 15, 2024 for a one-year term from January 1, 2025 to December 31, 2025.
DISCUSSION:
During the original term and the first Option Year of the contract, Stewart Spreading removed a total of 32,597 cubic yards of biosolid material generated at SWRC. Up to an additional 5,975 cubic yards will be removed at the current rate of $33.15 per cubic yard before the end of 2025.
Based on the vendor’s performance, Water Utilities recommends extending the contract for the second Option Year. Stewart Spreading has requested a 2.9% rate increase based on the Consumer Price Index change over the past 12 months. The proposed rate is $34.11 per cubic yard. An estimated 13,000 cubic yards will be hauled in 2026 at a total cost of $443,430. Staff recommends approval of this increase based on the price history for this service and current market conditions.
The term of the second option year is January 1, 2026, to December 31, 2026, with no Option Years remaining.
FISCAL IMPACT:
CIP# N/A
Costs related to biosolids removal will be charged to the Operational Service account number listed below and are proposed in the FY2026 budget at $443,950. Pending City Council’s approval of the budget in December, the requested contract award of $443,430 is favorable to the budget.
|
Account Number |
Fund Description |
Proposed Budget |
|
41251530-531308 |
Water Utility Fund |
$488,950 |