Title
Contract No. 2101765
Hauling of Biosolids to Disposal Sites
Vendor: DHT Transport LLC
Body
Agenda of: January 26, 2022
Item No.: 2022-009
Amount: Two Year Contract $2,297,500.00
First Year Renewal Option 1,206,290.00
Second Year Renewal Option 1,236,530.00
Total Contract $4,740,320.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Interim Chief Executive Officer
Great Lakes Water Authority
DATE: January 4, 2022
RE: Contract No. 2101765
Hauling of Biosolids to Disposal Sites
Vendor: DHT Transport LLC
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 Interim Chief Executive Officer (ICEO) to enter into Contract No. 2101765, “Hauling of Biosolids to Disposal Sites” with DHT Transport LLC, in the amount of $2,297,500.00 for a duration of two (2) years, with two (2) one (1) year renewal options at a cost not to exceed $1,206,290.00 and $1,236,530,00 respectively for each renewal year for a total contract amount of $4,740,320.00; and authorizes the ICEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Water Resource Recovery Facility (WRRF) treats on average 650 million gallons per day (MGD) of wastewater and can increase to 1,700 MGD during wet weather events. WRRF serves a combined sewer system, where solids loading to the facility is increased during wet weather conditions. Biosolids Dryer Facility (BDF) and Incineration are our two primary methods of disposal of solids. Central Offloading Facility (COF) is utilized as a backup disposal method in case one of the two primary methods of disposal should become unavailable. The solids processed through COF require hauling to landfills for disposal.
JUSTIFICATION
The current National Pollutant Discharge Elimination System (NPDES) permit requires the WRRF to have a peak solids processing and disposal capacity of 850 dry tons per day (dtpd), calculated as a 10-day average. The firm capacity of our two primary disposal methods (BDF and Incineration) together is 853 dtpd. This contract is a contingency for biosolids hauling to landfills when COF is used as a backup method.
FINANCIAL PLAN IMPACT
Summary: The forecast for the disposal of material from the Water Resource Recovery Facility (WRRF) is an ongoing component of the wastewater financial plan. The maximum value of the contract exceeds the current financial plan for this service. With this contract specified as a contingency, on an as-needed basis, it is budgeted accordingly. Should this contingency contract be exercised a budget amendment may be needed. First, offsetting other costs that may be reduced, then from other areas, and finally from the unallocated reserve.
Funding Source: Operations and 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 Forecast Variance: See table below.
FY 2022 Budget (prorated) $42,000.00
FY 2023 Plan 103,200.00
FY 2024 Plan 105,300.00
FY 2025 Plan (prorated) 62,650.00
Financial Plan Forecast $313,150.00
Maximum Contract $4,740,320.00
Forecast Variance (positive/
(Negative)) ($4,427,170.00)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on January 12, 2022. The Operations and Resources Committee unanimously recommended that the GLWA Board adopt the resolution as presented, subject to receiving confirmation of cost savings from the previous contract.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.