Title
Contract No. 2204515
Loading, Hauling, and Disposal of Scum
O&M
Body
Agenda of: May 24, 2023
Item No.: 2023-178
Amount: $2,185,008.00
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: May 2, 2023
RE: Contract No. 2204515
Loading, Hauling, and Disposal of Scum
Vendor: LGC Global, Inc.
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. 2204515, “Loading, Hauling, and Disposal of Scum” with LGC Global, Inc., at a cost not to exceed $2,185,008.00 for a duration of three (3) years with two (2) one-year renewal options; 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) treats approximately 550 million gallons as daily annual average flow of wastewater. As part of the water resource recovery process, the fats, oil, and grease (FOG) and other floatable material are separated from the rest of the waste stream that creates a byproduct called scum. The facility generates approximately 1,500 tons of scum per year with an approximate annual average production of 4.1 tons per day. The production of the material is weather dependent and can vary from zero to 50 tons per day. The production amounts provided are intended to give the Vendor the relative idea of the quantities they will be responsible for removing on average, but do not entitle the Vendor to additional compensation if the daily amount generated is less than, or exceeds the daily amounts identified above.
JUSTIFICATION
The WRRF is required by the National Pollutant Discharge Elimination System (NPDES) permit to remove the FOG and scum from the effluent before it is discharged. In order to meet this requirement, the WRRF removes the FOG and scum through primary treatment and dispose to the landfills. This contract is necessary for loading, transportation, and discharge of the scum material from the WRRF to the landfill.
FINANCIAL PLAN IMPACT
Summary: There are insufficient funds in the current financial plan for this proposed contract should it be utilized to the maximum value. The volume of scum disposed of may vary by year, which could possibly require a budget amendment to that year’s financial plan. First, offsetting other disposal costs that may be reduced, then from other areas, and finally from the unallocated reserve.
Funding Source: Operations and Maintenance (5960) Budget
Cost Center: Biosolids Dryer Facility, Central Offloading Facility & Hauling (Wastewater System Operations Cost Center 892227)
Expense Type: Contractual Operating Services (617900)
Estimated Cost by Year and Related Forecast Variance: See table below.
Fiscal Year Amount
FY 2024 Budget $219,200.00
FY 2025 Financial Plan 223,600.00
FY 2026 Financial Plan 227,000.00
FY 2027 Financial Plan 293,000.00
FY 2028 Financial Plan 231,600.00
Total Financial Plan $1,194,400.00
Maximum Proposed Contract $2,185,008.00
Variance (positive/(negative)) ($ 990,608.00)
COMMITTEE REVIEW
This item was presented to the Operations and Resources Committee at its meeting on May 10, 2023. 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.