REPORT TO COUNCIL
SUBJECT
Title
Amend an Existing Agreement with Synagro-WWT for Dredging and Dewatering of solids at the Water Pollution Control Plant (F18-287)
Report
REPORT IN BRIEF
Approval is requested to amend an existing contract with Synagro-WWT, Inc. for dredging and dewatering of solids at the Water Pollution Control Plant (WPCP), increasing the not-to-exceed to $10,700,000 and extending the term of the agreement through June 30, 2019.
EXISTING POLICY
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for the procurement of goods and 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, organic matter that is separated from wastewater, in two areas of the treatment process: Oxidation Ponds where bio-solids settle to the bottom; and Digesters which stabilize the solids settled from the primary treatment process. From the inception of the WPCP in 1956 through 2009, the solids settled in the Oxidation Ponds and had never been removed, thereby filling up the ponds and reducing the treatment capacity. Beginning in 2009, the City contracted with Synagro-WWT, Inc. to dredge the ponds and dispose of the bio-solids (RTC No. 09-291). Since the ponds are an active treatment system, the rate of dredging is managed to not upset the biology and ecology of the ponds, which requires spreading the operation throughout the year and over several years.
On the second solids processing area, the digester solids are further dried over tile beds and hauled off for disposal. In 2015, as part of the WPCP rebuild program (Clean Water Program - CWP) the drying area was taken over for construction of the new primary facilities and the digester solids drying process was transferred to Synagro-WWT, Inc.’s operations. Currently, the pond dredging and digester solids drying contract with Synagro-WWT, Inc. is set to expire on June 30, 2018.
The CWP anticipates the ponds to be in service until the year 2035. Dredging the ponds to maintain treatment process capacity is essential for the remaining duration of the ponds anticipated service period. As part of the WPCP rebuild, construction of new digester solids drying processes are anticipated to be completed by 2025. Until these new processes are in place, there is a need to continue contracting out the current drying processes.
When the City solicited for contracting these services in 2009, it received only one qualified proposal from Synagro-WWT, Inc. To determine the existence and interest of any other vendors who provide these services, staff conducted a Request for Information process (RFI F18-165) earlier this year and received submittals from two vendors, one of which being the current vendor, Synagro-WWT, Inc. Therefore, staff is preparing to issue a Request for Proposals (RFP F18-274) to the qualified vendors determined from this process. The anticipated contract resulting from this RFP is for a long duration. The new contract will include the costs associated with setting up the dredging and drying operations at the WPCP, and the technical complexities associated with negotiating the scope of work for the term of the contract. This solicitation and contract award is anticipated to take six to nine months with a potential for an additional three months of set up should a new vendor be selected.
To ensure uninterrupted processing of the bio-solids at the WPCP, staff is requesting that the current contract be extended until June 30, 2019, which will allow time for a new contractor to be ready to operate. While the current contract is projected to have a remaining balance of $450,000, processing the bio-solids during the extension would require an additional $700,000 in contract value. Therefore, staff is requesting a contract amendment to increase the contract maximum value from the current amount of $10,000,000 to $10,700,000.
FISCAL IMPACT
Project 825521 - WPCP Bio-solids Processing was initiated in 2009 to appropriate funds for these contracted services. Sufficient funds are available to support the additional $700,000 contract amendment. This project is funded in 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
Authorize the City Manager to execute a fourth amendment to an existing contract with Synagro-WWT, Inc. in substantially the same form as Attachment 1 to the report, increasing the not-to-exceed value from $10,000,000 to $10,700,000 and extending the term of the agreement through June 30, 2019.
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 Fourth Amendment