TO: Mayor and City Council
FROM: Allison Swisher, Director of Public Works
SUBJECT:
title
Award of Contract for the 2025 Biosolids Disposal Contract to New Era Spreading Inc. in the Amount of $2,425,240.00
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BACKGROUND:
The City's three wastewater treatment plants generate biosolids which require proper disposal. The Biosolids Disposal Program consists 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:
On October 26, 2023, the City opened bids for the 2024 Biosolids Disposal Contract for land application services. Two bids were received, and New Era Spreading Inc. was the low bidder. In addition to the 2024 pricing, the bidders were requested to submit an optional second year price. New Era Spreading Inc. submitted a second-year bid price of $2,425,240.00, which is a 3.8% increase from 2024. Staff recommends exercising the 2025 option.
The program provides 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. Therefore, no payment is made with fall applications to the fields. However, payment of $150 per acre is made to growers that accept sludge in the spring season for extra tillage. In addition, 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 2025 Water & Sewer Operating Fund: ESTP - Contractual Services (Org 50080802, Object 524200, $800,329.20), ASTP- Contractual Services (Org 50080804, Object 524200, $824,581.60), and WSTP - Contractual Services (Org 50080803, Object 524200, $800,329.20).
RECOMMENDATION:
recommendation
Based on ...
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