Title
Resolution to Amend a Service Agreement with Synagro Central, LLC for Land Application of Municipal Wastewater Biosolids, RFP No. 657 (estimated first-year cost of $49,350.00)
Memorandum
Your approval is requested to amend the service agreement with Synagro Central, LLC (Synagro) for hauling and land applying municipal wastewater biosolids from the City’s Wastewater Treatment Plant (WWTP).
The WWTP utilizes contracted services for the application of wastewater biosolids to farm land during certain portions of the year, which coincide with typical farming practices, and disposes biosolids in a landfill during the balance of the year. Land application usually occurs during the months of April through December. The yearly amount of biosolids currently land applied is approximately 23,500,000.00 gallons.
Through RFP No. 657, the WWTP solicited proposals for providing biosolids land application services. On May 7, 2007, Council approved a service agreement with Synagro for three years with the option for two one-year renewals to land apply biosolids at a unit cost of $0.0319 per gallon. This contract allows an annual adjustment to the unit cost based on 80% of the Consumer Price Index.
At the time Synagro submitted its proposal, it had included anticipated fuel cost adjustments in the proposed unit cost to land apply biosolids. However, it did not anticipate the level of increased costs for fuel that has occurred over the past year and requested the City to help defray these cost increases.
Your approval is requested to amend the service agreement with Synagro, retroactive to April 1, 2008, to delete the Consumer Price Index clause and include a Fuel Cost Adjustment (FCA) clause. The FCA will fluctuate with the cost of diesel fuel as published by the US Department of Energy website Midwest PADD2, for diesel fuel as published on the internet at
. Fuel cost adjustment reviews will be conducted on A...
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