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Agenda Item: 7(c) |
Prepared By: Jeffrey E. Poteet |
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Business: Consent Agenda |
Department: Water and Sewer |
Authorize the City Manager to Execute a Contract 2021-026 with Synagro South, LLC for Biosolids Removal, Dewatering and Hauling in an Estimated Annual Amount of $359,409.00
BACKGROUND:
The Marco Island Reclaimed Water Production Facility collects all the wastewater generated by the City of Marco Island. The plant currently produces approximately 455 dry tons of waste solids per year that is removed from the sludge holding tank as sludge with 2.0% to 2.5% weight solids. The sludge is either taken offsite for disposal or filtered onsite to make a filter cake, with 17-20% weight solids, which is then disposed offsite.
Because of the seasonal increase in population from 15,000 year-round residents to about 35,000 during January through about April 15, the rate of production of waste solids also increases significantly. In February and March solids production peaks at about 60 tons per month and decreases during the summer months to about 25 tons per month. When the City has 100% of the residences and commercial properties on the central sewer system, the amount of dry solids produced annually will increase to about 500 to 550 tons per year.
This bid (ITB #2021-026) was advertised on 8/24/21, 297 suppliers were notified, 10 downloaded the bid package and on 9/23/21 City received one bid for this service. Synagro South, LLC was the only firm that submitted a bid.
City staff looked at the cost to provide this service in-house (capital & operating). The capital expenses include the costs for the centrifuge, a trailer to house the centrifuge, dewatering equipment, a road tractor and trailer. The annual operational cost included staffing, chemicals, landfill/tipping fees, operation and maintenance of the equipment. An internal rate of return was calculated and is attached. Due to the required capital outlay and the expected life cycle of the centrifuge, staff does not recommend performing these services in-house.
Synagro South, LLC has been the City’s liquid biosolids removal, dewatering, and hauling service provider since 2005. This is an annual contract for the initial three (3)-year term with an option to renew for an additional one (1) three (3)-year term. After the initial three (3)-year contract period, price increase is allowed. However, price increases are limited to the Consumer Price Index for All Urban Consumers (CPI-U) increases for the South Region Size B/C as reported for October to September of each year.
FUNDING SOURCE / FISCAL IMPACT: Funding for liquid biosolids removal, dewatering, and hauling is budgeted annually in the W&S Department operating budget.
RECOMMENDATION: City staff has reviewed the submitted bid and recommends awarding the Contract 2021-026 for Liquid biosolids removal, dewatering, and hauling to Synagro South, LLC in the estimated annual amount of $359,409.00.
POTENTIAL MOTION: “I move to authorize the City Manager to execute Contract 2021-026 for Liquid biosolids removal, dewatering, and hauling to Synagro South, LLC in the estimated annual amount of $359,409.00.”