Subject:
Title
Third Amendment to the agreement with Synagro-WWT Inc. for the South Cross Bayou Water Reclamation Facility Wastewater Sludge Pelletization Project.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the Third Amendment to the agreement with Synagro-WWT Inc. (Synagro) providing for a second and final term extension to the contract for South Cross Bayou Water Reclamation Facility(SCBWRF) Sludge Pelletization Project.
Contract No. 001-790-A(LN) in the amount of $9,000,000 for a term of five (5) years through April 23, 2023. The projected revenue from pellet sales over the next five (5) years of the contract term is estimated at $1,073,506. The total expenditure of $9,000,000 includes revenue recovered from sales.
Body
Strategic Plan:
Deliver First Class Services to the Public and Our Customers
5.3 Ensure effective and efficient delivery of county services and support
Summary:
This amendment exercises the second and final term extension to the contract for the day to day operation and marketing of pelletized sludge at the SCBWRF. The product generates revenue for the County by recycling sludge as a fertilizer product through drying and pelletizing and is then sold to local firms. The County is guaranteed a minimum of $20.00 per ton of pelletized sludge. The vendor’s services have been satisfactory; therefore, it is recommended that the second and final term extension be exercised through April 23, 2023.
Background/Explanation:
The Board of County Commissioners approved the execution of the Agreement on April 5, 2001, the first amendment on September 19, 2006, the second amendment on October 21, 2008. The County Administrator approved the first term extension on March 4, 2013.
Fiscal Impact:
Estimated five (5) year net* expenditure not to exceed: $9,000,000
Estimated annual expenditure not to exceed: $1,800,000
* Net expenditure includes revenue obtained from the sale of pellets
Funding is derived from the Utilities Sewer Enterprise Fund.
Delegated Authority:
Authority for the County Administrator to approve this term extension is granted under Code Section 2-176 (f).
Staff Member Responsible:
Megan Ross, Interim Director, Utilities
Joe Lauro, Director, Purchasing
Partners:
N/A
Attachments:
Third Amendment
Guarantee