Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute Amendment No. 2 to the Non-Professional Services Agreement with Denali Water Solutions, LLC for Biosolids Hauling, Increasing the Contract by $100,000 to a Sum Not to Exceed $344,250
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
SUMMARY
The City’s Water Pollution Control Plant needs to remove additional biosolids prior to the ending of the contract with Denali Water Solutions, LLC. The amendment to the current Non-Professional Services Agreement will allow for the removal of more biosolids that are currently exceeding the capacity of drying beds at the facility.
RECOMMENDATIONS
Staff recommends City Council adopt a Resolution to approve and authorize the City Manager to execute a Non-Professional Services Agreement with Denali Water Solutions, LLC Biosolids Hauling to increase the amount being hauled which will increase the total sum of the contract by $100,000 to a total not-to-exceed $344,250.
BACKGROUND
As part of the wastewater process, biosolids are removed from the wastewater. They are treated in anaerobic digesters to reduce volatility and pathogens and then thickened to about 15% solids concentration. The biosolids are then spread on drying beds to air dry, which generally happens during the summer months. Finally, the biosolids are hauled off for agricultural land application to reduce waste.
The past two winters have been especially wet, which has shortened the effective air-drying season. This has resulted in hauling wetter biosolids and contributed to an increase in hauling costs as more water is being hauled for every dry ton of biosolids.
Analysis
The current vendor, Denali Water Solutions, was selected in a competitive bid process in March 2021, with a per-ton rate of $48.85. The per-ton hauling rate has since been adjusted for inflation to $53.75 but is still less than the next-lowest bidder. Staff intend to initiate a request for proposals process in the coming months. This contract extension will allow for the removal approximately 1,860 tons of biosolids while this process is completed. The current contract will end on November 30, 2024, by which time a new vendor will be selected.
Previous Actions
• April 19, 2021: Council adopted Resolution No. 2021-061 authorizing the City Manager to enter into a Non-Professional Services Agreement with Denali Water Solutions for a not-to-exceed amount of $244,250.
Financial Impacts
Sufficient funds are included in the Fiscal Year 2024-2025 WPCP Fund budget for Biosolids Hauling services. Account 593-51-002-5190 has a current balance of $114,383.
This Council action will not impact WPCP fund balance because there are funds available in the FY2024-2025 adopted budget.
ATTACHMENTS
Attachment A: Resolution to Authorize the City Manager to Execute Amendment No. 2 to the Non-Professional Services Agreement with Denali Water Solutions, LLC for Biosolids Hauling, Increasing the contract by $100,000 to a sum not to exceed $344,250
Attachment B: Draft Amendment No. 2 to Non-Professional Services Agreement Between the City of San Leandro and Denali Water Solutions, LLC for Biosolids Hauling
Attachment C: Non-Professional Services Agreement between the City of San Leandro and Denali Water Solutions, LLC for $244,250 for the Water Pollution Control Plant Biosolids Haul 2020-21
Attachment D: Amendment No.1 To Non-Professional Services Agreement Between The City of San Leandro and Denali Water Solutions, LLC For Biosolids Hauling
PREPARED BY:
Ramya Sankar, Management Analyst II, Water Pollution Control Division
Hayes Morehouse, Water Pollution Control Plant Manager