Title
Resolution to Approve a Services Agreement with Michigan AgriBusiness Solutions, LLC for Land Application of Municipal Biosolids, RFP No. 20-03 ($0.039/gallon, estimated $624,000.00 first year)
Memorandum
Your approval is requested for a services agreement with Michigan AgriBusiness Solutions, LLC (MAS) for hauling and land application of municipal wastewater biosolids from the City's Wastewater Treatment Plant (WWTP) at a cost of $0.039 per gallon for the first year.
Biosolids are organic material, rich in nutrients, which are removed from wastewater through various treatment processes. During the months of approximately April through December, the WWTP utilizes contracted services for the application of stabilized biosolids to farmland as an agricultural soil supplement. These services enable the WWTP to achieve beneficial reuse of stabilized biosolids in a managed program that benefits the environment. The yearly amount of biosolids currently land applied is approximately 16 million gallons. During the balance of the year when biosolids cannot be land applied, the WWTP processes and disposes biosolids in a landfill.
Through RFP No. 20-03, WWTP staff solicited proposals for providing biosolids land application services. Proposals were received from BioTech Agronomics, Inc. (BioTech) and MAS. BioTech's proposal contained a fee of $0.0579/gallon for the three-year period. MAS proposed annual unit pricing of $0.039/gallon for year one, $0.042/gallon for year two and $0.044/gallon for year three. Based on the selection criteria listed in RFP No. 20-03, MAS was determined to be the most qualified and cost-effective firm to provide the requested services.
You are requested to approve a service agreement with MAS for three years with the option for two, one-year renewals, subject to approval by both parties, at annual unit pricing of $0.046/gallon for year four and $0.048/gallon for year five. Based on the projection that approximately 16 million gallo...
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