To:   HONORABLE MAYOR AND                     From:  Jose Obregon

                        CITY COUNCIL                                                     

 

   Subject:   SEE BELOW                                                             Date: October 29, 2003

 

 

SUBJECT:     AGREEMENT WITH BROWNING-FERRIS INDUSTRIES, INC., FOR THE REMOVAL, TRANSPORTATION AND BENEFICIAL REUSE OF BIOSOLIDS                                                    

 

                       

RECOMMENDATION

 

Report on a Request for Proposal and adopt a resolution authorizing the Director of General Services to:

 

a.       negotiate and execute a one-year agreement with four, one-year options with Browning-Ferris Industries, Inc. for the  removal, transportation and beneficial reuse of biosolids, with the first year compensation not to exceed $1,185,730; and

 

b.      execute each of the options to renew without further City Council action other than the appropriation of necessary funds.

 

 

BACKGROUND

 

On February 18, 2003 item 2.4 Council approved to reject the sole proposal received for the removal, transportation and beneficial reuse of biosolids and authorized the Director of General Services to re-solicit proposals.  Prior to re-solicitation, staff conducted additional outreach efforts to increase RFP exposure and stimulate competition for this RFP.

 

Browning Ferris Industries (BFI) has been performing this work for the City since the inception of the biosolid removal program in 1993.  In 1998, the City entered into an agreement with BFI for the beneficial reuse of biosolids, which ended on March 31, 2003.  Approximately 60,000-91,000 dry tons of biosolids are processed and stockpiled annually. These biosolids are the byproduct of wastewater treatment and meet all applicable reuse requirement regulations.  A majority of the biosolid material is used for alternate daily cover on the Dixon Landing Road Newby Island Landfill, just north of the Water Pollution Control Plant.

 

ANALYSIS

 

A Request for Proposal (RFP) was advertised and made available to the public on July 16, 2003. 33 companies requested and received the RFP.  A non-mandatory pre-proposal conference was held on July 30, 2003, which was attended by five companies.  On August 28, 2003 two proposals were received as listed below:

 

Company

Total

BFI (Milpitas, CA)

$1,185,730

 

Synagro (Houston, TX)

$3,406,130

 

 

The total dollars are based on 91,000 tons.

 

The evaluation committee was comprised of individuals from the Environmental Services Department/Water Pollution Control Plant and the Department of General Services/Purchasing Division. 

 

Proposals were evaluated on the following criteria:

                        1)         Quality of the proposal

2)                  Cost to the City

3)                  Capability and expertise of the contractor

4)                  Adherence to applicable Council policies

 

BFI and Synagro met the specifications of the RFP and both companies possess the capabilities and proven expertise to beneficially reuse the biosolid material.  Both BFI and Synagro were considered technically sound, therefore cost became the determining factor.  BFI submitted the lowest cost.

 

The Synagro cost was substantially higher due to the transportation cost attributed to the location of their proposed land use site.  Synagro proposed to haul the biosolid material to Merced County for agricultural purposes and their proposed cost per dry ton is $37.43.

 

BFI proposed to remove, transport and beneficially reuse the biosolids at a cost of $13.03 per dry ton.  BFI will reuse the biosolids as Alternate Daily Cover at the Newby Island Landfill.  In addition, the hauling route will be mainly on the City’s haul roads accessible by gate at the biosolid job-site, which runs directly to the Newby Island Landfill.  This will limit the hauling over public roads.  Future road repair to the access roads on Plant property may require the hauling of the biosolid material on public roadways.  A cost per ton of $15.63 has been proposed due to the additional distance required to transport material on the public roadways.

 

 

Staff recommends Browning-Ferris Industries, Inc. (BFI) and this contract will be subject to Prevailing Wage Policy.

 

 

PUBLIC OUTREACH

 

This proposal was placed on the City of San Jose web site.

 

 

COORDINATION

 

This memorandum has been coordinated with the City Attorney’s Office, the Environmental Services Department, the Office of Equality Assurance and the City Manager’s Budget Office.

 

This recommendation is scheduled to be heard at the Treatment Plant Advisory Committee (TPAC) on November 13, 2003.

 

 

COST IMPLICATIONS

 

This item is consistent with the Council approved Budget Strategy recommendation under General Principal #2,  “We must focus on protecting our vital core city services.”

 

 

BUDGET REFERENCE

 

Fund #

Appn #

Appn. Name

RC #

Total Appn.

Amt. for Contract

2003-2004 Proposed Operating Budget Page

Last Budget Action (Date, Ord. No.)

513

0762

Non-Personal/

Equipment

911450

$30,196,654

$1,185,730

871

09/09/03, Ord. No. 26978

 

 

CEQA

                       

Exempt, PP 03-09-300

 

 

Jose Obregon

Director of General Services