City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, Interim City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: September 24, 2024
ITEM NO: 6.7
SUBJECT: Approve Budget Adjustment of $50,000 to Address the Increased Cost of Biosolids Disposal and authorize staff to negotiate a contract with Synagro for the disposal of remaining biosolids at the WQCF.
RECOMMENDATION
Motion to Approve Budget Adjustment of $50,000 to Address the Increased Cost of Biosolids Disposal and authorize staff to negotiate a contract with Synagro for the disposal of remaining biosolids at the WQCF.
BACKGROUND
Municipal wastewater treatment involves several biological and chemical processes to clean sewage. The liquid portion is treated to meet the limits set by the Waste Discharge Requirements Permit (WDR) issued by the Regional Water Quality Control Board. During this process, biosolids are produced and processed using a centrifuge, then transported by dump truck to a drying bed.
Disposal of these biosolids, classified as Class B, requires a licensed hauler due to strict federal, state, and local regulations. Synagro is the current contractor for these services. The budget initially allocated $69.80 per ton for biosolid removal for the 2024/2025 Fiscal Year. However, after the budget was submitted, the disposal rate increased to $93.50 per ton in May 2024, representing a 34% increase. This significant price hike has drastically impacted the ability to manage and dispose of biosolids within the current budget.
ANALYSIS
Proper disposal of biosolids is essential to the wastewater treatment process. The Water Quality Control Facility (WQCF) relies on storage facilities and drying beds to manage biosolids. If these facilities reach maximum capacity, it can disrupt operations and affect overall system performance.
Disposing of Class B biosolids in California presents particular challenges due to stringent regulatory requirements. According to the California Code of Regulations (CCR) Title 22, biosolids must meet specific pathogen reduction and vector attraction reduction criteria before disposal (CCR Title 22, Chapter 15). Additionally, the California Department of Resources Recycling and Recovery (CalRecycle) imposes further guidelines for the land application and disposal of biosolids, including comprehensive reporting and adherence to local waste management regulations (CalRecycle, SB 1383 Regulations).
These regulatory challenges have led to drastic and sudden increases in biosolid disposal costs over the last several years. The volatility in disposal costs is largely due to the evolving regulatory landscape and its impact on disposal practices. Increased compliance requirements and fewer qualified disposal facilities have contributed to this cost instability. For example, the recent rate increase of 34% from $69.80 to $93.50 per ton reflects broader market trends driven by regulatory pressures and operational challenges faced when the city deals with disposal contractors.
The cost of disposing of Class B biosolids can vary significantly based on seasonal factors and regulatory compliance. Biosolids are drier and less costly to dispose of during dry weather, while wet biosolids during the rainy season are substantially more expensive. Given these dynamics, causing the current budget constraints, managing biosolid disposal effectively under the increased rate is challenging. To avoid exceeding drying bed capacity and to ensure continuous and compliant operation, an additional $50,000 is required. This increase will address the shortfall and enable proper disposal of all biosolids before the rainy season begins.
FISCAL IMPACT
The current budget for biosolid removal is $150,000. Due to the increased disposal costs, this budget will be fully utilized, and an additional $50,000 is necessary to account for the shortfall in account 605-790-6240. This adjustment will bring the total budget required to $200,000. The additional funding will ensure that all biosolid storage and drying facilities are cleared and that the WQCF remains operational and compliant. Once disposal of the remaining biosolids at the plant is completed (prior to the wet weather), staff will initiate a comprehensive contractor selection process for calendar year 2025 disposal needs to ensure the city receives the lowest price available.