Title
Proposed Amendment No.1
Contract No. GLWA-PC-792/SCN-0000449
Biosolids Dryer Facility
O&M
Body
Agenda of: May 28, 2025
Item No.: 2025-149
Amount: Original Contract Amount: $684,000,000.00
Proposed Amendment No.1 1,500,000.00
New Contract Amount $685,500,000.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: April 28, 2025
RE: Proposed Amendment No. 1
Contract No. GLWA-PC-792/SCN-0000449
Biosolids Dryer Facility
Vendor: New England Fertilizer Company
Status: Amendment/Change Order
MOTION
Upon recommendation of Navid Mehram, Chief Operating Officer - Wastewater Operating Services, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. GLWA-PC-792/SCN-0000449, Amendment No. 1, “Biosolids Dryer Facility” with New England Fertilizer Company, with an increased cost of $1,500,000.00 for a total cost not to exceed $685,500,000.00 with no increase in duration for a total duration of 8,902 days; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Water Resource Recovery Facility (WRRF) produces sludge as a byproduct of the Wastewater Treatment process. Currently, approximately 75% of the sludge is dried through large heating units and converted to fertilizer for beneficial reuse for land application. The remaining 25% is incinerated in multi-hearth incinerators, where it is converted to ash which is then landfilled. GLWA has identified an opportunity to utilize its on-site railroad system to transport and landfill the 25 percent sludge production in lieu of incineration. GLWA is interested in implementing a 30-day pilot program to evaluate the viability of this alternative disposal method.
JUSTIFICATION
Stable disposal of the sludge produced by the WRRF is critical for successful wastewater treatment operations. In collaboration with Synagro, the current operator of the Biosolids Dryer Facility (formerly New England Fertilizer Company) plans to transport the approximate 25% sludge production to landfill via rail. GLWA, through its existing dewatering equipment and Central Offload Facility, will load the dewatered sludge into fully sealed intermodal containers designed for rail transportation. The containers are then loaded onto railcars (six containers per railcar) which are then coordinated through Conrail for transportation to the landfill.
This disposal method offers GLWA significant benefits, including simplified operations, reduced reliance on natural gas, avoidance of large rehabilitation projects identified for incineration, and greater cost stability under a multi-year contract. Additionally, the adoption of this approach provides an opportunity for the facility to reduce its greenhouse gas emissions.
PROJECT MANAGEMENT STATUS
Original Contract Time 8,902 days (5-13-2013) - (10-13-2037)
Proposed Amendment No. 1 0 days
New Contract Time 8,902 days (5-13-2013) - (10-13-2037)
PROJECT ESTIMATE
Original Contract Price $684,000,000.00
Proposed Amendment No. 1 $1,500,000.00
New Contract Total $685,500,000.00
FINANCIAL PLAN IMPACT
Summary: The proposed amendment was not anticipated during the completion of the current wastewater financial plan, and therefore would exceed the value for contractual operating services.
The shutdown of the Incineration process presents opportunities to offset some of the costs associated with the 30-day pilot program. Reduced ash disposal and polymer use, along with utility decreases in electricity, natural gas, and water service are expected to offset 40% of the pilot program’s expenses. The remaining offsets are forecast to come from other positive variances in the current wastewater financial plan.
Funding Source: Operations and Maintenance Budget (5960)
Cost Center: BDF, COF & Hauling (892227)
Expense Type: Contractual Operating Services
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on May 14, 2025. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.