TO: Mayor and City Council
FROM: Allison Swisher, Director of Public Utilities
SUBJECT:
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Award of Contract for the 2026 Biosolids Disposal Program to New Era Spreading Inc. in the Amount of $2,516,550.00
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BACKGROUND:
The Biosolids Disposal Program is comprised of two elements: 1) land application services and 2) payment to farmers for the use of the land.
The Public Service Committee will review this matter.
CONCLUSION:
During the City's 2024 Biosolids Disposal bid process the City requested that all bidders submit optional second year (CY 2025) and optional third year (CY 2026) pricing. New Era Spreading Inc., the low bidder, submitted a bid price of $2,516,550.00 for CY 2026, which is a 3.7% increase from 2025. New Era Spreading Inc.'s work performance exceeded Staff expectations, and their bid pricing was 29% lower than the next lowest bidder's proposal. Accordingly, Staff recommends exercising the 2026 option.
The City's biosolids program also continues to provide payment to growers that experience a reduction in yield or incur costs due to the application of sludge. The base benefit to farmers is the savings realized for fertilizer costs. No payment is made with fall applications to the fields. Payment of $150 per acre is made to growers that accept sludge in the spring season for extra tillage. The crop yield is guaranteed and a payment of an amount not to exceed $150 per acre is offered for a reduction in yield below the 5-year average for the field. Any and all claims are reviewed by the City's third-party agronomist prior to recommendation for payment.
Funding for the land application will be charged to the Water & Sewer Operating Fund / ESTP - Sludge Removal (Org 50080802, Object 524200, $838,850.00), Water & Sewer Operating Fund / Aux Sable - Sludge Removal (Org 50080804, Object 524200, $838,850.00), and the Water & Sewer Operating Fund / WSTP - Sludge Removal (Org 50080803, Object 524200, $838,850.00).
RECOMMENDATION:
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