The request of staff for City Council is to review and consider for approval a one (1) year contract extension with the same terms and conditions as set forth in the current contract with Merrell Bros., Inc. for Biosolids Hauling and Disposal dated April 16, 2013. 

The Wastewater Treatment Plant generates about 7,000 tons of biosolids or sludge annually as a by-product of the reclaimed water treatment process. This material must be transported and treated to FDEP standards prior to disposal. Our facility is not equipped to provide this level of biosolids treatment and the long distance to the disposal site makes it impractical for the City to haul the material; consequently the division has historically contracted this service out.  

As Council may recall, the existing contract dated April 16, 2013 contained  two (2) initial years and a one (1) year renewal term.  The $44.72 per ton for hauling and disposal is the lowest price since the City began hauling the by-product in 2008.  Disposal sites have changed over time due to FDEP environmental regulations and has caused an increase in the typical charge for hauling and disposal.  In 2015 Pasco County Utilities went out to bid and awarded a disposal contract at a rate of $56.46 per ton.  This rate is $11.74 higher than the existing disposal rate charged to the City, for a potential savings of $64,180 based on the City's yearly disposal average.  In January of 2017 Pasco County issued Merrell Bros., a notice to proceed with the construction of a design/build/operate sludge processing facility at the Shady Hills Wastewater Treatment Plant.  The completion of the project is expected to be completed by the end of this year.  Should City Council elect to go out to bid, disposal charges are expected to be considerably higher than the City's current rate which in turn would place an undue burden on the Wastewater Treatment Plant's operating budget for the 2016/2017 fy as well as the 2017/2018 fy operating budget for the division.

Subsequent to discussions between the contractor and City Utility staff, it has been agreed that existing terms, conditions, and pricing in the 2013 agreement shall remain the same should City Council approve the one (1) year extension.  Over the past four (4) years Merrell Bros., Inc. service to the City, has been dependable and no complaints have been filed against the contractor by staff or the public.