Title
Contract No.: RFB 1127
Hauling and Disposal of Ash and Grit
Body
Agenda of: June 20, 2018
Item No.: 2018-782
Amount: $ 624,600.00 2 Years
$ 312,300.00 First Year Renewal Option
$ 312,300.00 Second Year Renewal Option
Total: $1,249,200.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: June 7, 2018
RE: Contract No.: RFB 1127
Hauling and Disposal of Ash and Grit
Vendor: Custom Ecology of Ohio
MOTION
Upon the recommendation of Suzanne Coffey, Chief Planning Officer, Interim Chief Operating Officer - Wastewater, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes the Chief Executive Officer (CEO) to enter into Contract No. RFB 1127, “Hauling and Disposal of Ash and Grit” with Custom Ecology of Ohio, at a cost not to exceed $624,600.00 for a duration of two years with two one-year renewal options at $312,300.00 per year; 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 traditionally uses this proposed contract to remove moistened incinerator ash from ash silos outside of the incineration complex. The scope of work requires the contractor to furnish all labor, materials, supplies, equipment and disposal sites (landfills) necessary for the safe loading, transporting and disposal of the moistened ash estimated to be 18,000 tons per year, into a State approved, licensed landfill.
JUSTIFICATION
The NPDES Permit MI0022802 requires the Water Resource Recovery Facility (WRRF) to limit solids discharged into the Detroit River and Rouge River. After dewatering, the biosolids (sludge) are disposed of via the biosolids dryer facility, incineration, land application or burial in an approved type II landfill. After incineration, a vendor is needed to haul and dispose of the ash and grit from incinerators from the Water Resource Recovery Facility to various State approved licensed landfills.
FINANCIAL PLAN IMPACT
Summary: The financial plan forecasts a consistent rate of expenditure. The actual rate of spend will vary year to year based on volume. Future financial plans will be adjusted to accommodate the forecasted variance.
Funding Source: Operations & Maintenance Budget
Cost Center: Biosolids Dryer Facility, Central Offloading Facility & Hauling
(Sewage Disposal Cost Center 892227)
Expense Type: Contractual Operating Services (5960-892227.000-617900-SD9020)
Estimated Cost by Year and Related Forecasted Variance: See table below.
|
Fiscal Year |
Current Forecasted Amount |
Revised Forecasted Amount |
|
FY 2019 Proposed (prorated) Budget |
$ 209,300.00 |
$ 234,225.00 |
|
FY 2020 Plan |
279,072.00 |
312,300.00 |
|
FY 2021 Plan |
279,072.00 |
312,300.00 |
|
FY 2022 Plan |
279,072.00 |
312,300.00 |
|
FY 2023 Plan Pro-rated to 08/31 |
69,770.00 |
78,075.00 |
|
Financial Plan Forecast |
$ 1,116,286.00 |
$1,249,200.00 |
|
Maximum Contract |
1,249,200.00 |
1,249,200.00 |
|
Forecasting Variance |
$ (132,914.00) |
$ 0.00 |
SAVINGS, COST OPTIMIZATION, AND REVENUE ENHANCEMENT IMPACT
The increased use of the Biosolids Dryer Facility has resulted in a reduction of volume processed through incineration. This has resulted in an increased cost per ton for this service.
|
Project estimate |
$ 15.50 / Ton |
|
Actual bid |
$ 17.35 / Ton |
|
Estimate variance |
$ 1.85 / Ton |
COMMITTEE REVIEW
This item is being presented directly to the full Board of Directors for consideration.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.