HomeMy WebLinkAbout10/01/1996, C-11 - RFP FOR MANAGEMENT AND DISPOSAL/RECLAMATION OF BIOSOLIDS counCllOc
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Octoo
ber 1 1996
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CITY OF SAN LUIS OBISPO
FROM: John Moss, Utilities Director
Prepared By: David Hix, Wastewater Divi ' n Manager
SUBJECT: RFP FOR MANAGEMENT AND DISPOSAL/RECLAMATION OF
BIOSOLIDS
CAO RECOMMENDATION
Approve request for proposals(RFP)for Management and Disposal/Reclamation of Biosolids and
authorize contract award by CAO if selected proposal is within approved budget ($105,000
annually)
DISCUSSION
The City's Water Reclamation Facility (WRF) annually generates 3,000 to 4,000 tons of
biosolids. Biosolids are the product of anaerobically digesting the solids associated with
wastewater treatment processes. Anaerobic digestion of the solids reduces the volume of the
solids,destroys pathogens and produces a stable soil-like material formerly referred to as "sludge"
and now called "biosolids". The City's biosolids are very high quality, meeting two of the three
highest federal standards.
During the last four years the City has contracted with Pima Gro Systems Inc. to land apply the
WRF's annual production of biosolids. Presently the City is paying $27.75/ton to have the
biosolids land applied on permitted agricultural fields in the San Joaquin Valley. Pima Gro has
been working with the Central Coast Regional Water Quality Control Board (RWQCB) on
permitting a local reuse site for the past four years. A local reuse site would have lowered the
City's cost per ton to $19.50. Unfortunately difficulties with permitting a site in this region and
finally a law suit that challenges many of the permitted sites throughout the state has hindered
any chance of acquiring a local site any time soon. The City has twice exercised the option of
granting a one year extension to Pima Gro's 1992 two year contract.
The past four years have seen a significant increase in contractors and acreage/facilities for the
management and disposal/reclamation of biosolids. Although staff have been pleased with Pima
Gro's service and professionalism, savings may be experienced by requesting proposals from
today's larger and more competitive biosolids industry. This competitive atmosphere should give
the City a proposal that will address all of the City's needs at a good price.
Evaluation and selection of the proposal will include preference to beneficial reuse proposals.
After proposal review and reference checks, staff will make its recommendation to the CAO.
It is anticipated that award of the contact will be in late November 1996. Duration of the
contract will be for two years with an option for two - one year extensions.
Council Agenda Report - Biosolids RFP
Page 2
Below is a brief description of what other agencies are doing with their biosolids. The City
generates significantly more biosolids than most agencies our size because of the treatment
processes needed to attain the high level of water quality required at the WRF.
Santa Maria - Hauling to Central Valley. Santa Maria is investigating composting biosolids with
green waste at a local landfill. RWQCB will be reviewing the project after the compost company
submits an application.
Cambria - Liquid applied to ground. RWQCB is requiring Cambria to submit more
documentation and is investigating the agency's disposal method. This method of disposal will
Rely not be allowed in the future.
California Men's Colony (CMC) - Pima Gro hauled CMC's biosolids. CMC has had difficulties
operating its digesters and is currently stockpiling their biosolids for another possible haul.
South San Luis Obispo County Sanitary District - Local permitted land application.
Paso Robles - Biosolids used as an intermediate cover at City landfill.
Morro Bay - Local •unpermitted land application to agricultural land. Morro bay has been
required by the RWQCB to submit an application for biosolids reuse.
The RWQCB has previously directed Cities to develop long term biosolids management programs
and not try to rely on "one-time" applications as their main disposal/reclamation option. The
approach recommended by staff is intended to satisfy this RWQCB requirement.
FISCAL IMPACT
The 1996-97 WU budget has identified$105,000 for biosolids disposal. This figure was derived
using Pima Gro's current rate of$27.75 ton and applied to the current production of biosolids
plus some additional biosolids generated from digester maintenance.
Staff feels that the current market and number of interested biosolids contractors will produce a
proposal that will conform to the City's current funding level.
ALTERNATIVES
1. Extend Pima Gro's contact. Although staff has been very pleased with Pima Gro's
service, this alternative is not recommended. Pima Gro's contract can be extended for
another year, but as mentioned previously the City may experience savings by requesting
proposals from a biosolids industry which is more competitive than four years ago.
Council Agenda Report - Biosolids RFP
Page 3
2. Pursue other options for local long term disposal/reclamation of the City's biosolids.
Composting has been studied but the significant staff time, stringent required
documentation and record keeping, permitting, problems with siting and distribution of
biosolids generated from a City run composting operation make this option time
prohibitive and more costly than current contracts. Local permitted biosolids land
application sites are difficult to site and permit and to date no long term local sites have
been permitted with the capacity to serve the City's long term needs. Future co-
composting of biosolids with the City's yard waste is being studied with San Luis
Garbage Company. Currently the Garbage company's composting facility excludes
biosolids, but the City would consider working with the Regional Water Quality Control
Board to change the requirements if it determines that co-composting is economically
feasible.
A Copy of the Request for Proposal; Management and Disposal/Reclamation of Biosolids, is
available in the Council Office for review.
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