Title
Resolution to Approve a Construction Contract with American Process Group LLC in the amount of $3,919,401.97 for the WTP Lime Residual Removal Contract No. 2 - Dredging and Hauling (RFP 25-18)
Memorandum
This memorandum and resolution requests approval of a construction contract with American Process Group LLC in the amount of $3,919,401.97 for the WTP Lime Residual Removal Contract No. 2 - Dredging and Hauling (RFP 25-18).
The Water Treatment Plant (WTP) generates lime residuals as a byproduct of the lime softening process. The residuals are dewatered on-site using filter presses and hauled away for disposal. During times when the filter presses are not operational, or other related process upsets at the WTP, the lime residuals are pumped directly to the lime residuals lagoon located directly south of M-14 and west of Wines Elementary School. Discharges from the lagoon are regulated through the Michigan Department of Environment, Great Lakes and Energy (EGLE) National Pollutant Discharge Elimination System (NPDES) permit.
Managing this material as well as the lagoon is critical for operating the WTP. The lagoon is nearly full, and removal efforts are needed to provide storage capacity. In 2018, the WTP had prepared bid documents for this project, as well as Contract No. 1, to remove significant material from the lagoon. However, due to budget constraints the project was delayed and reprogrammed in the CIP for fiscal years (FY) 2026 and 2027.
This project will occur in two phases. The first phase (Contract No. 1) approved under resolution R-25-194, will consist of the site modifications needed at the lagoon site and at the WTP site to facilitate the second phase of work (Contract No. 2). Contract No. 2 work will consist of dredging lime residuals from the lagoon, pumping to the WTP to be dewatered and hauled away. The lime residual removal volume included in the base bid is 10,000 dry tons, which is roughly equivalent to 10 years of storage capacity. Additional residual removal is possible pending additional budget and Contractor performance. A contingency of 25% is being requested to cover residual removal above and beyond the 10,000 dry tons if that opportunity arises.
The proposed improvements are necessary to provide critical storage capacity in the lagoon for on-going WTP operations. Both phases of this project are programmed in the City’s Capital Improvements Plan (UT-WS-16-18).
Solicitation of Proposals
Water Treatment Services Unit (WTSU) staff supervised the development of plans and contract documents and solicited proposals for construction of the project through the City’s Procurement Unit. On May 14, 2025, the City received four (4) proposals for this work. A selection committee comprised of Water Treatment Services staff reviewed the proposal and determined that the respondent provided the Best Value based on the criteria provided in ORD-21-41:
• Qualifications, Experience & Accountability (20%)
• Workplace Safety (20%)
• Workforce Development (20%)
• Social Equity & Sustainability (20%)
• Schedule of Pricing/Cost (20%)
After evaluation of the bid, staff has determined that American Process Group LLC’s bid is responsible, and it is in line with the construction cost estimate. Therefore, WTSU recommends approving the Contract for these services to American Process Group LLC.
After reviewing and scoring the proposals, staff ranked the responding firms in the following order:
1. American Process Group LLC
2. Merrell Bros, Inc.
3. GFL Environmental Services USA, Inc.
4. Synagro Central, LLC
American Process Group LLC received the highest score among the proposals reviewed by the selection committee. Therefore, staff recommends awarding the contract for this project to American Process Group LLC. American Process Group LLC complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget/Fiscal Impact: The WTP Lime Residual Removal project has been identified in the Capital Improvements Plan (UT-WS-16-18.) This project is to be partially funded from the approved FY 2026 Water Supply System Capital Budget and continued funding will be available in future fiscal years throughout the life of the project if so, approved by Council.
Staff
Prepared by: Emily Schlanderer, PE, Water Treatment Plant Engineer
Molly Maciejewski, Water Treatment Services Unit Manager
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney, Jr., City Administrator
Body
Whereas, The WTP lime softening process generates lime residuals that require proper management to maintain WTP operations;
Whereas, The existing lime residual lagoon exists to store excess lime residuals during maintenance and emergency scenarios;
Whereas, The lagoon is near capacity for storing solids and removal efforts are required;
Whereas, The WTP Lime Residual Removal project will remove significant volume of residuals from the lagoon to increase storage capacity;
Whereas, Competitive bids were solicited by Procurement on May 14, 2025 (RFP 25-18) and the bid received from American Process Group LLC received the highest score and a bid amount of $3,919,401.97;
Whereas, The WTP Lime Residual Removal Contract No. 2 - Dredging and Hauling is included as a project in the Capital Improvement Plan;
Whereas, Funding is available in the approved FY26 Water Supply System Capital Budget and will be available in future fiscal years throughout the life of the project, if so approved by Council; and
Whereas, American Process Group LLC has submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Conflict of Interest Disclosure forms and complies with the requirements of the City’s Non-Discrimination and Living Wage ordinances;
RESOLVED, That City Council approves the Construction Contract with American Process Group LLC in the amount of $3,919,401.97 for the WTP Lime Residual Removal Contract No. 2 - Dredging and Hauling (RFP 25-18);
RESOLVED, That a contingency amount of $1,000,000.00 be established within the project budget and that the City Administrator be authorized to approve construction change orders not to exceed that amount, in order to satisfactorily complete this project;
RESOLVED, That the City makes the following declaration for the purpose of complying with the reimbursement rules of Treas. Reg. 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended, that the City reasonably expects to reimburse itself for expenditures for the costs of the WTP Lime Residual Removal Contract No. 2 - Dredging and Hauling Project with proceeds of Bonds;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take all necessary actions to implement this resolution.