REPORT TO COUNCIL
SUBJECT
Title
Award of Contract to Synagro-WWT, Inc. for Bio-solid Disposal and Digester Cleaning (F18-274)
Report
REPORT IN BRIEF
Approval is requested to award a five-year contract to Synagro-WWT, Inc. of Sacramento in the not to exceed amount of $12,500,000 for bio-solid disposal and digester cleaning. Approval is also requested to authorize the City Manager to renew the Agreement for two additional one-year periods, depending if services and pricing remain acceptable to the City and within available budgeted amounts.
EXISTING POLICY
Pursuant to Chapter 2.08 of the Sunnyvale Municipal Code, contracts for this type of service are awarded pursuant to a Request for Proposals (RFP) best value process, unless otherwise exempt from the competitive bidding process. Additionally, City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The proposed project is categorically exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Section 15301 as it consists of maintenance of an existing public facility involving negligible or no expansion of capacity.
BACKGROUND AND DISCUSSION
The wastewater treatment process at the Sunnyvale Water Pollution Control Plant (WPCP) produces bio-solids through several treatment processes. The Primary Treatment Process removes organic matter from the influent wastewater stream which is then sent through the anaerobic digestion treatment process. The solids stabilized in the digesters are then processed for beneficial reuse, as soil amendments, by removing excess water (dewatering) and shipping these dewatered solids to land disposal sites. This process produces approximately 425 dry tons per year of bio-solids. As part of this process, the anaerobic digesters (tanks) must be emptied and cleaned of grit and debris that settles at the bottom. The WPCP has four digester tanks and one tank will be cleaned every year.
The WPCP Oxidation Ponds also convert organic matter and ammonia from the Primary Effluent into biomass that settles to the bottom. From the inception of the WPCP in 1956, through 2009, the solids settled in the oxidation ponds and had never been removed, which filled up the ponds and impacted pond effluent quality and reduced the throughput treatment capacity. Over the last ten years, the City has met with wastewater/pond experts to determine a best course of action to ensure that these ponds stay healthy and capable of providing secondary wastewater treatment services. The conclusion is to remove settled material from the pond at a rate in excess of what is being added on an annual basis.
Beginning in 2009, the City began a program of dredging the ponds and dewatering the biosolids (RTC No. 09-291) for beneficial reuse. Since the ponds are an active treatment system, the rate of dredging is actively managed to not upset the ecology (wastewater treatment services) of the ponds. This requires spreading the operation throughout the year to achieve solids mass removal goals in order to maintain required pollutant removal rates. Approximately 2,000 dry tons per year of solids are removed from the ponds. The current contract for pond dredging and solids dewatering is set to expire on June 30, 2019. The Sunnyvale Clean Water Program (CWP) anticipates the ponds to be in service until at least the year 2035. Dredging the ponds to maintain treatment process capacity is essential for the remaining duration of the ponds anticipated service period.
When the City solicited for contracting bio-solids handling services in 2009, it received only one qualified proposal from Synagro-WWT, Inc. who has performed these services over the last ten years. To determine the existence and interest of any other qualified vendors who provide these services, staff conducted a Request for Information process (RFI F18-165) in April 2018 and received submittals from two vendors.
With information gathered from the RFI, a Request for Proposal (RFP) was issued on January 8, 2019 through the City’s DemandStar public procurement network for the bio-solid disposal and digester cleaning services at the Water Pollution Control Plant. Two responsive proposals were received on February 14, 2019. A third proposal received from Denali Water Solutions, LLC is recommended to be deemed non-responsive due to the vendor not meeting the minimum qualification requirement of the Contractor Safety Documents. The two proposals were reviewed and evaluated by staff from Environmental Services Department.
The firms were evaluated based on their qualifications, experience, organization, management plan, and pricing. It was determined the proposal form Synagro-WWT, Inc. provided the best value for the City. The City then engaged in contract negotiations with Synago which resulted in a discount of five (5) dollars per dry ton for the Pond Solids Dredging and Disposal. The Proposed rates for year one will be $710 per dry ton for pond solids, $715 per dry ton for digester solids, and $83,000 per digester cleaning event. The contract includes an annual San Francisco Consumer Prices Index (CPI) and fuel surcharge increase base on the United States Department of Energy.
FISCAL IMPACT
Funding is available in Project 825521 - WPCP Biosolids Processing and Project 833060 - Annual Digester Cleaning.
Funding Source
This project is funded by the Wastewater Management Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract in substantially the same form as Attachment 1 to the report in the amount of $12,500,000 to Synagro-WWT, Inc.
- Authorize the City Manager to execute the contract when all necessary conditions have been met
- Authorize the City Manager to renew the Agreement for two (2) additional one-year periods, not-to-exceed budgeted amounts
- Make a determination that the proposal received from Denali Water Solutions, LLC is non-responsive and reject the bid.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Service Agreement