November 19, 2024
Public Works
DATE: November 19, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Public Works Director / City
Engineer
Subject:
Authorize the City Manager to Sign Letter of Intent for Sludge Ponds Lease Extension
FINANCIAL IMPACT: There is no direct financial impact associated with signing the Letter of Intent (LOI). The LOI serves as a good faith commitment to negotiate the terms of the sludge ponds
lease extension, with any future financial obligations to be addressed in the final lease agreement, which will be brought to Council for approval later. Any future costs would be paid from the Wastewater Enterprise Fund(s).
The current lease agreement is covered under
Resolution 61-20 at a rate of $293,783/year which will be paid from 40322731-400202.
PREVIOUS COUNCIL
ACTION:
Not Applicable
STATEMENT OF THE
ISSUE:
The West County Agency (WCA), responsible for
biosolids processing at the City of Richmond's
wastewater treatment plant (WWTP), is dissolving by the end of 2024. To ensure the continuation of operations at the WWTP, the City must continue having access to the
sludge ponds currently leased from West County
Wastewater (WCW). Staff is requesting City Council
approval of a Letter of Intent (LOI) with WCW to be
signed by the City Manager to continue leasing the
sludge ponds through 2025, ensuring uninterrupted
AGENDA
REPORT
November 19, 2024
biosolids processing until the new biosolids facility is in operation and the lease terms for use of the new facility are negotiated.
RECOMMENDED ACTION:
AUTHORIZE the City Manager to sign the Letter of Intent (LOI) with West County Wastewater (WCW) to continue
leasing the sludge ponds in 2025, ensuring continued
biosolids processing at the City's wastewater treatment plant following the dissolution of the West County Agency – Public Works (Robert Armijo 620-5477/Daniel
Chavarria 620-4778)
The West County Agency (WCA), a joint powers authority formed between West County Wastewater (WCW) and the City of Richmond (City), manages several critical operations shared between the two entities. These responsibilities include the National Pollutant Discharge Elimination System (NPDES) permitting and operation of the joint outfall, the Sodium Bisulfite (SBS) facilities, biosolids handling, and other key services.
Sludge, the solid byproduct of the wastewater treatment process, includes materials that remain after the entire treatment cycle, which includes primary clarification, biological digestion, and tertiary treatment. In Richmond's wastewater treatment plant (WWTP), which uses standard tertiary treatment, sludge is generated after the removal of debris, sediment, and dissolved substances, followed by biological treatment and final clarification. This sludge requires further processing to stabilize it and reduce its volume before it can be safely disposed of or reused. Currently, the final-stage sludge is transported to WCW’s sludge ponds for drying and additional treatment.
Historically, the sludge ponds, located at WCW's East Site, have been critical for the City’s biosolids management, as they allow for the sludge to be processed into a form that meets environmental standards for disposal or reuse. Without these ponds, the City would not have the necessary infrastructure to handle the final-stage treatment of sludge, which is a vital step in the overall wastewater treatment process.
The City currently has a lease agreement with WCW which allows the City to pump the biosolids generated at Richmond’s Wastewater Treatment Plant to WCW sludge ponds (Attachment 3).
WCW issued a Lease Termination Notice to the City on August 28, 2023, informing the City the ponds would no longer be available to the City after December 31, 2024 (Attachment 4). The City’s wastewater treatment plant (WWTP) lacks facilities to process final-stage sludge independently. If the City fails to process sludge properly, it risks non-compliance with environmental regulations, which could lead to fines, penalties, or disruptions to wastewater services.
November 19, 2024
WCW is building a new biosolids treatment facility at their wastewater treatment plant.
This new facility, once complete, will have the capacity to treat both WCW’s and the City’s biosolids (aka sludge) to a Class A standard, meaning the sludge will be treated to the highest level, suitable for reuse in agricultural and other applications. However, the facility is not expected to be operational by the end of 2024, necessitating an interim solution to avoid potential disruptions in the City's wastewater treatment operations.
WCW has proposed extending the current lease until such time as the new biosolids treatment facility is fully operational.
The Letter of Intent (LOI) being presented to the City Council, between the City and WCW, serves to memorialize the parties intention to extend the lease term for City’s use of the sludge ponds and for the City to eventually enter into an Operating Agreement with WCW for the treatment of the City’s biosolids as soon as the facility is online and operational (Attachment 2). While the LOI does not finalize the terms of the Operating Agreement, it informs WCW of the City’s good-faith intentions. This step is crucial to maintaining compliance with environmental regulations and avoiding any interruption in wastewater treatment services.
Approval of the LOI will confirm the City’s commitment to addressing its biosolids processing needs and provide an important step toward ensuring continued WWTP operations after the dissolution of the WCA.
Staff recommends that the City Council authorize the City Manager to sign the LOI with WCW (Attachment 1). This interim action will allow time for both parties to negotiate and finalize the Operating Agreements for the treatment of the City’s biosolids (sludge) and will ensure the City's access to the sludge ponds in 2025. Without this commitment, the City risks a lapse in biosolids processing capacity, which could have serious operational and regulatory consequences for the WWTP.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution for City Manager to sign LOI
Attachment 2 – Letter of Intent
Attachment 3 – Lease Agreement
Attachment 4 - Letter of Termination (West County Wastewater)