CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year One to Contract 17-199, Biosolids Removal Services, to Stewart Spreading for an amount not to exceed $205,500
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On November 7, 2017, City Council approved the award of Contract 17-199 to Stewart Spreading for a two-year term, with one one-year option to extend. The licensed contractor hauls biosolids from the Springbrook Water Reclamation Center (SWRC) to agricultural farmland and/or sod farms. Biosolids (sludge) are removed, transported and land applied by the contractor. The contractor provides the service in accordance with the United States Environmental Protection Agency (40 Code of Federal Regulations Part 503) and other federal, state and local regulations.
Biosolids (sludge) produced at SWRC are Class B centrifuge dewatered cake. SWRC biosolids (sludge) originates from the aerobic digestion process. The aerobically digested thickened biosolids (sludge) are pumped to the biosolids processing building where centrifuges dewater the material. Dewatered solids are stored in a Biosolids Storage Building until removed by the hauling service.
DISCUSSION:
Stewart Spreading performed well during the original two-year contract term. During the original term, the Water Utilities used Stewart Spreading to perform seasonal hauling of biosolids for a total of 10,474 cubic yards in 2018 ($167,165.04) and 9,232 cubic yards to date in 2019 ($147,342.72). The original contract was awarded for $399,000 with $84,492.24 available for the remainder of the two-year contract period. Depending on weather and field availability, up to 5,250 additional cubic yards may be hauled prior to the end of 2019 at a cost of $83,790, which is within the budgeted amount.
The original award provided for a maximum three-percent increase on the Class B dewatered biosolids (sludge) removal price per cubic yard. The Water Utilities’ current cost is $15.96/cubic yard. When City staff contacted the vendor to extend for the one-year option, Steward Spreading requested a 3% increase due to the following factors:
• State of Illinois doubled fuel taxes;
• State of Illinois raised vehicle registration fees; and
• the Consumer Price Index (CPI) increased 4% during the two-year contract period.
City staff is recommending the approval of the 3% maximum increase as allowed in the contract, which will increase the per cubic yard cost to $16.44.
The term of the one-year extension is effective January 1, 2020 through December 31, 2020.
FISCAL IMPACT:
CIP: N/A
Biosolids removal is expensed to the operational service account listed below. The proposed contract will begin in 2020. A total of $205,000 is budgeted for contract biosolids removal in the 2020 Proposed Budget, pending Council approval.
|
Account Number |
Fund Description |
Total Budget Amount |
|
41251530-531308 |
Water & Wastewater |
$304,500 |