PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.F
Meeting Date: June 17, 2025
TITLE:
Contract Amendment #1 with Engel & Gray, Inc. for Biosolids Composting RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the existing Vendor Services Agreement with Engel & Gray, Inc. to provide biosolids composting in the amount of $130,000 per year for three years.
DISCUSSION:
The City has been using Engel & Gray, Inc. (Engel & Gray) to provide hauling, treatment, and disposal of the City’s Wastewater Treatment Plant biosolids. The City’s Wastewater Treatment Plant produces approximately 130 tons of biosolids per month, or 1,560 tons per year. In 2013, 2018 and most recently in June of 2022, the City Council authorized an exemption from formal bidding procedures for this service due to geographical constraints and proximity of other vendors resulting in increased composting rates.
The City entered into a contract with Engel & Gray for a three-year term with an option to extend the agreement for an additional one-year period, or longer as the parties agree in writing. The initial contract authorized by the City Council on June 21, 2022, was for $390,000 or $130,000 per year. Staff requested a quote from Engel & Gray to continue to provide biosolids composting for an additional three-year term beginning July 1, 2025.
The quote is for $68.24 per ton for hauling and composting, not to exceed $130,000 per year. The overall cost will be determined by the amount of waste per ton removed and processed. The proposed Amendment #1 will bring the total not to exceed contract cost for FY 2023 through FY 2028 to $780,000.
Conclusion and Recommendation
Staff recommends that the Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute Amendment #1 to the existing vendor services agreement with Engel & Gray in the amount not to exceed $130,000 per year for biosolids composting for Fiscal Year (FY) 2026 through FY 2028.
FISCAL IMPACT:
The fiscal impact of adopting the attached Resolution is $130,000 per year and $390,000 over three fiscal years (FY 2026 through FY 2028) in the Wastewater Enterprise Fund.
This amount is based on the price per ton at the rate of $68.24 and historical actual costs.
The Wastewater Enterprise Fund, Biosolids Treatment and Disposal account includes $130,000 for FY 2026.
Council Agenda 6-17-2025 9.F-1
Table 1. Fiscal Impact of Contract Amendment
Item Fiscal Impact
Project Budget $130,000
Engel and Gray annual contract ($130,000)
Remaining/Shortfall $0
ATTACHMENTS:
1. Resolution
2. Engel & Gray Amendment #1
Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Rosemarie R. Gaglione, PE, Director of Public Works City Manager Approval:
Council Agenda 6-17-2025 9.F-2
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #1 TO THE EXISTING VENDOR SERVICES AGREEMENT WITH ENGEL & GRAY, INC.
TO PROVIDE BIOSOLIDS COMPOSTING IN THE AMOUNT OF $130,000 PER YEAR
FOR THREE YEARS
WHEREAS, Engel & Gray, Inc. has been the City's service provider for biosolids composting since 2013, providing hauling, treatment and disposal of the City’s Wastewater Treatment Plant biosolids; and
WHEREAS, In 2013, 2018 and most recently in June of 2022, City Council authorized exemption from formal bidding procedures for this service due to geographical constraints and proximity of other vendors resulting in increased composting rates; and WHEREAS, the current contract with Engel & Gray includes an option to extend the agreement for an additional period as the parties agree in writing; and WHEREAS, the quote from Engel & Gray, Inc. is for an additional three year term at $68.24 per ton for hauling and composting and the overall contract cost will be determined by the amount of waste per ton removed and processed; and WHEREAS, the contract cost will not exceed $130,000 per year, and $390,000 over three fiscal years (FY 2026 through FY 2028).
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 to the existing Vendor Services Agreement with Engel & Gray, Inc. in the amount of $130,000 per year and $390,000 over a three-year term, in substantially the form provided in staff’s report dated June 17, 2025, to provide biosolids composting for Fiscal Year (FY) 2026 through FY 2028.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 17th day of June 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Council Agenda 6-17-2025 9.F-3
Attachment 1
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand on _______________________. ________________________
Erica Inderlied, City Clerk
Council Agenda 6-17-2025 9.F-4
Attachment 1
AMENDMENT # 1
to the
JULY 24, 2022 AGREEMENT BETWEEN THE CITY OF PISMO BEACH AND ENGEL & GRAY, INC.
Pursuant to the July 24, 2022 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Engel & Gray, Inc., hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1.Additional services shall be performed as set forth in the proposal dated May 20, 2025, which is attached hereto and by this reference made a part hereof.
2.Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of $68.24 per ton not to exceed one hundred thirty thousand dollars ($130,000) per year or three hundred ninety thousand ($390,000) over the three year term, without prior written approval of the City.
3.The revised fee under the July 24, 2022 contract, plus this addendum, is seven hundred eighty thousand dollars ($780,000).
4.The term end date of the agreement is hereby revised to June 30, 2028.
5.All other provisions of the subject agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Rosemarie R. Gaglione, PE
Title: Director of Public Works
Dated: ________________________________
Signed:
Name: Jorge E. Garcia
Title: City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
VENDOR:
Engel & Gray, Inc.
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Cost Proposal
Council Agenda 6-17-2025 9.F-5
Attachment 2
Council Agenda 6-17-2025 9.F-6
Attachment 2
Council Agenda 6-17-2025 9.F-7
Attachment 2
Legal name of firm submitting proposal
Engel & Gray Inc.
P.O. Box 5020
Santa Maria, CA 93456-5020
(805)925-2771
Name, address and telephone number of the person to whom correspondence should be directed.
Bob Engel
Engel & Gray, Inc.
P .0. Box 5020
Santa Maria, CA 93456-5020
Voice (805) 925-2771
Description of work.
FAX (805) 925 8023
Engel & Gray Inc. proposes to provide the rolloffboxes, trucks, manpower, and equipment needed to transport the biosolids generated at the Pismo Beach Waste Treatment Facility. Based on the current projections of biosolids being generated, we propose to haul the material on a weekly basis or more frequently as needed. The material will be transported to our regional composting facility located in Santa Maria. Once the material is delivered to our facility it will be placed into windrows, blended with organic feedstock and begin the composting process.
We utilize a mechanically aerated, open windrows system for composting biosolids, manures, Greenwaste and vegetative materials. In this type of system, mixed feedstock are placed in rows and turned periodically, by specialized mechanical equipment. Height, width, shape, and spacing of the windrows will vary depending on the nature of the feedstock and the type of equipment used for turning. Oxygen is supplied primarily by convective ventilation due to the buoyancy of hot gases produced in the windrow (resulting in a chimney-like effect) and, to a lesser extent, by gas exchange during turning. Water is applied as needed and mixed into the windrow to maintain the necessary moisture content in the composting matrix. All windrows are monitored for temperature and moisture daily to·insure proper (effective) composting is being achieved.
Finished product moisture is generally allowed to come down to the 25-35% range to facilitate handling, retard continued microbial action, and produce the most desirable end-product.
A primary approach of Engel and Gray is to accomplish what we have done with other waste water treatment plants (wwtp) and the agricultural community. We have taken what once was a disposal issue for many wwtp's and turned it around and made a beneficial custom compost product that the landscape industry uses as a beneficial soil amendment. We have also accomplished this task in the winery and vineyard industry by taking the pomace generated by the wineries and converting that to a custom compost blend that is then taken back to the vineyards, thereby replacing the use of synthetic fertilizers. The vegetable industry has also utilized this practice in that they too bring us their culls and cuttings and we generate a compost to be applied on their farming fields as well. This type of recycling program has been strongly embraced by the landscape and agricultural communities, and we feelas though the City of Pismo Beach can continue to benefit from this type of recycling program as well.
Engel & Gray would propose to compost the City of Pismo Beach biosolids,with other local organic material from the Central Coast. We would work with the City and local schools to start or enhance their school garden programs like we do across the Central Coast. We would also provide the City with 70 .yards of Harvest Blend Compost on an annual basis to utilize in local projects. This would illustrate to the community the full recycling program at work.
Engel & Gray has developed markets for different types of compost and has established working relationships with the agricultural, horticultural, and landscape communities. We believe that this too would be Council Agenda 6-17-2025 9.F-8
Attachment 2
a mutually beneficial relationship and look forward to expanding on our experience of working with the City of Pismo Beach Water Treatment Facility.
Firm Experience
Engel & Gray, Inc. operates a regional organic materials composting facility in a rural area of Northern Santa Barbara County. The facility is the result of successful composting and been in operation since July 1993. The first trial project back in 1993 was with the City of Santa Maria and the City of Pismo Beach. The trial project in 1993 showed the feasibility to compost biosolids locally and reap the benefits of the compost product in improving local soils. The facility is located approximately three miles west of the City of Santa Maria on a 40- acre portion of the City's Waste Water Treatment Plant. We are located less than three miles from the San Luis Obispo County line.
The facility is designed to function in an environmentally sensitive manner. Native soils comprising the site's working surface are compacted to achieve very low permeability rates. The facility's design incorporates a perimeter berm, precluding storm water run on and retention basins designed to contain the total site runoff from a 1 00-year/24-hour storm event.
Composting itself is a naturally occurring, environmentally friendly process. Engel & Gray has developed and refined the concept for this facility and its management during twenty-five years of on-going research, full-scale feasibility studies, and successful composting. This project is intended to work cooperatively with local governments to divert and/or recover residual organic resources from traditional waste streams, thereby minimizing potential groundwater impacts from disposal. The project is included as a biosolids disposal option in the City of Santa Maria's Wastewater Master Plan and is utilized by the City of Santa Maria, County of Santa Barbara and County of San Luis Obispo as a green material recycling facility. Current customers of the facility include the Cities of Santa Maria, San Luis Obispo, Buellton, Solvang, Carpinteria, and Santa Barbara. We also service districts including South San Luis Obispo Sanitation District, Montecito, and Laguna.
The project also works extensively with the agricultural community to meet the demand for quality fertilizing materials and soil amendments. Marketing is directed at horticultural, landscaping, and other general wholesale and retail areas. E&G maintains incoming feedstock are clean, naturally occurring, organic (i.e., derived from living organisms), and readily decomposable materials. All compost products produced at the proposed facility are nuisance free, non-toxic, biodegradable materials with no restrictions as to where they can be applied. This facility has permitted annual capacity to convert over 400,000 cubic yards of organic residuals into beneficial marketable end-products. The site is permitted by the County of Santa Barbara, California Integrated Waste Management Board, and the Central Coast Regional Water Quality Control Board.
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Attachment 2
Council Agenda 6-17-2025 9.F-10
Attachment 2
4.E&G shall provide sufficient facility capacity to accommodate 150 percent of the total anticipated amount of biosolids to compost during the contract period.
5.E&G shall be responsible for furnishing all equipment, labor and materials for the compost facility operations.
QUALIFICATIONS
E&G has been providing compost services to the Central Coast since 1993. Pismo Beach composted biosolids with Engel & Gray, Inc. in 1993 as part of the original project feasibility study to establish a regional compost facility. Engel & Gray, Inc has a proven track record of providing these services. Engel & Gray Inc. has previous operating experience with composting biosolids and is currently providing similar services for many Central Coast cities and agencies. E&G complies with all applicable regulatory requirements and shall provide all permits required for this work scope. E&G shall be capable of hauling to the proposed composting facility immediately following notice to proceed.
OPERATIONAL PROCEDURES AND HAULING SCHEDULES
Operational procedures shall be mutually arranged between the City and E&G. E&G shall provide sufficient trailers, loaders and equipment to remove biosolids continuously generated from the Water Reclamation Facility site at a frequency of not less than bi-monthly (every two months). Actual details of scheduling shall be directed by city personnel. The City may consider alternate hauling schedules as proposed if, in the opinion of the City, the proposed alternative schedule does not impede the operation of the City's Water Reclamation Facility.
E&G shall not assume that the City can store more than 500 cubic yards ofbiosolids on site.
Costs shall be based on a unit cost per ton. All load weights shall be provided by certified scales and provided to the City with contract invoicing.
BIOSOLIDS QUALITY
The City shall be responsible for producing PC biosolids that that do not exceed Table 3 requirements for pollutants [40 CFR 503.13], meet alternative 1 [40 CFR 503.33(b)] for vector attraction using Volatile Solids Reduction (VSR) of 38% or greater and meet alternative 2 for Processes to Significantly Reduce Pathogens (PSRP) [40 CFR 503.32(b)(3)] using anaerobic digestion. The City will provide biosolids quality monitoring as required by the 40 CFR 503 regulations and Engel & Gray Inc., permits.
The dewatered biosolids come from a belt filter press. The belt press solids are approximately 15% to 20% solids and of moist cake consistency.
E&G shall provide covered bins during transport to prevent any loss ofbiosolids while being transported from the Water Reclamation Facility to the compost facility.
LICENSING
All equipment utilized in connection with this contract shall be fully licensed to operate on the highways of the State of California. All public highway drivers and operators of such equipment shall be fully licensed by the State of California Department of Motor Vehicles.
EQUIPMENT CLEANING
E&G Inc., shall be responsible for keeping our equipment in neat and clean manner. Major cleaning and servicing of equipment shall not take place at the City's Water Reclamation Facility.
Council Agenda 6-17-2025 9.F-11
Attachment 2
Council Agenda 6-17-2025 9.F-12
Attachment 2