TO: Mayor and City Council
FROM: Rod Tonelli, Interim City Manager
SUBJECT:
title
Award of Contract for the 2024 Biosolids Disposal Program to New Era Spreading Inc. in the amount of $2,333,930.00
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BACKGROUND:
The Biosolids Disposal Program is comprised of three elements: 1) professional agronomic services, 2) land application services, and 3) payment to farmers for the use of the land. The agronomic services include locating the sites, testing soil conditions to accept biosolids materials, and documenting application rates for long term recordkeeping.
An advertisement for bids for the land application element of the 2024 Biosolids Disposal Program was published in the Labor Record on Thursday, September 28, 2023. The Public Service Committee reviewed this memo at the November 6, 2023 meeting and recommended for approval by full Council.
CONCLUSION:
Bids for the land application element of the 2024 Biosolids Disposal Program were opened at 10:00 a.m. on Thursday, October 26, 2023. Two (2) bids were received and read out loud. The bid summary is as follows:
BIDDER BID PRICE
New ERA Spreading Inc. $2,333,930.00
Stewart Spreading, Inc. $3,236,883.00
Engineer's Estimate $2,808,480.22
The low bid from New Era Spreading Inc., in the amount of $2,333,930.00, is 17% below the engineer's estimate.
The program 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.
Funds for the land application will be charged to the 2024 Water / Sewer Operating Fund / ESTP - Sludge Removal...
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