Title
Resolution to Approve Amendment No. 1 to the General Services Agreement with Waste Management of Michigan, Inc. (WM) for the Transport and Disposal of Dewatered Centrifuge Cake from the Water Resource Recovery Facility and to Appropriate $300,000.00 (8 Votes Required)
Memorandum
Your approval is requested for Amendment No. 1 to the General Services Agreement with Waste Management of Michigan, Inc. (WM) for the transport and disposal of dewatered centrifuge cake from the Water Resource Recovery Facility.
Wastewater Solids generated at the Water Resources Recovery Facility (WRRF) are dewatered, centrifuged and hauled to a landfill for disposal. Removing the solids is critical for the treatment plant to meet its discharge permit limits and remain in compliance with our NPDES Permit.
RFP 17-05 was issued and on May 15, 2017, City Council approved a General Services Agreement with Advanced Disposal Services Solid Waste Midwest, LLC (Advanced Disposal) for Solid Waste Transfer, Transport and Disposal Services. This agreement was transferred to Waste Management of Michigan, Inc. (WM) after WM acquired Advanced Disposal.
WM has been receiving odor complaints and violations at its Woodland Meadows landfill. The Michigan Environment Great Lakes and Energy Air Quality Division have noted sewage cake odors as a contributing cause at the landfill on several occasions in the violations. If violations continue, an Administrative Consent Order could be issued, and WM would no longer be able to dispose of dewatered centrifuge cake at the Woodland Meadows landfill. The WRRF added a third feed of a deodorizer, Planet Breeze, to accommodate Waste Management’s request that we improve or reduce odors from dewatered centrifuge cake.
WM has been able to pivot all wastewater solids to a new landfill, Pine Tree Acres. This landfill is farther from neighbors and has had no odor issues to date. WM has incurred increased costs due to the longer trucking (more than 50 minutes travel time to the new landfill) and higher operational cost differences between landfills. They have asked for an increase for cake hauling services due to the odor issues causing the longer haul to Pine Tree Acres. Based on this, we recommend that an amendment to the WM contract be approved. This will allow the WRRF to continue to remove solids and avoid plant upsets. There is also language in the amendment that would allow us to return to the Woodland Meadows landfill at current pricing if we can reduce the odors in dewatered centrifuge cake and there is no regulatory ban on their acceptance resulting from the violations being issued.
WM complies with the City’s non-discrimination and living wage ordinances.
Budget/Fiscal Impact: Funding for these services in FY27 is available in the Sanitary Sewer Disposal Fund Unobligated Fund Balance. Funding for subsequent years will be included in the budget submittals for those fiscal years and included in the WRRF Operations & Maintenance Budgets if so, approved by Council. It is estimated this amendment will cost $425,000.00 annually, factoring in current diesel pricing and quantities.
Staff
Prepared by: Keith Sanders, WRRF Manager
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Wastewater Solids generated at the Water Resources Recovery Facility (WRRF) are dewatered, centrifuged and hauled to a landfill for disposal;
Whereas, Removing the solids is critical for the treatment plant to meet its discharge permit limits and remain in compliance with our NPDES Permit;
Whereas, Waste Management of Michigan, Inc. (WM) (formerly Advanced Disposal Services Solid Waste Midwest, LLC) was selected to manage the City’s Solid Waste Transfer, Transport, and Disposal Services requested in the City’s Request for Proposal (RFP) No. 17-05;
Whereas, these services will be provided for a period of up to six (6) years, subject to the availability of funding each year, with the City reserving an option for the City to extend from 7/1/2027 thru 6/30/2032;
Whereas, It became necessary to move disposal of dewatered centrifuge cake from Woodland Meadows landfill to Pine Tree Acres landfill, which results in an increase in trucking costs;
Whereas, Funding for this Amendment is available in Unobligated Fund Balance of the Sanitary Sewer Disposal Fund; and
Whereas, Waste Management of Michigan, Inc. complies with the City’s Non-Discrimination and Living Wage Ordinances;
RESOLVED, That $300,000.00 be Appropriated to the WRRF Sanitary Sewer Fund Operations and Maintenance Budget;
RESOLVED, That City Council approve an Amendment No. 1 to the General Services Agreement with Waste Management of Michigan, Inc. (WM) for the transport and disposal of dewatered centrifuge cake from the Water Resource Recovery Facility;
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute said Amendment to the General Services Agreement after approval as to form by the City Attorney and approval as to substance by the City Administrator; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.