December 13, 2022
City Council Item 6.4
.
CIP
Award of Biosolids Transportation &
Beneficial Use Agreements
Mariana Chavez-Vazquez, ESD Deputy Director
Napp Fukuda, ESD Assistant Director
Previous Biosolids Management Decisions
2013 Plant Master Plan
Incorporated 2010 Milpitas Guiding Principles
Biosolids management goals:
– Reduce odors
– Multiple and diversified disposition options
– Reduce footprint of processing area
– Flexibility to respond to regulatory and market
changes
2015 Biosolids Transition Strategy
Proceed with new dewatering facility and retire
lagoons and drying beds
Postpone on-site thermal and greenhouse drying
facilities
Enter into various off-site disposition service
contracts
2 What has happened since 2015?
Biosolids Disposition Market Assessment
• Purpose: Evaluate capacity and cost changes for biosolids disposition options • Findings: Limited beneficial use capacity around SF Bay Area and rising rates • Rates (per wet ton, excludes transportation costs): land application = $20-$60, composting = $37-$66, liquid fertilizer production = $65-85 2019
Approval of Dewatered Biosolids Management Strategy
• Short-term: Procurement of off-site beneficial use service agreements • Long-term: Development of an on-site partner facility that further processes the RWF’s dewatered biosolids
• Also includes permitting of local natural and working lands to receive biosolids 2021
Senate Bill 1383 Regulations Take Effect
• Goal: Reduce short-lived climate pollutants from organic waste landfill disposal • Regulations include biosolids in organic waste definition • Regulations encourage wastewater facilities to beneficially use biosolids 2022
Approval of Amended Design-Build Contract for Dewatering Facility • Anticipated completion in 2025
• Will enable RWF to the transition from an open-air drying operation to an enclosed mechanical dewatering process
2022
3 Current Biosolids Management
4 Lagoons
(~3.5 years)
Drying Beds
(~6 months)
Newby Island Landfill (ADC)
Regional
Wastewater Facility
Current Practice: ~3,500 truck
trips to transport 55k
-
65k wet
tons of biosolids from drying
beds for ADC to Newby Island
Landfill (80%
-
90% dry)
Future Biosolids Management
5 Regional
Wastewater Facility
Future Practice: ~4,500 truck trips
to transport ~100k wet tons of
biosolids from the Dewatering
Facility for beneficial use (22% dry)
New Dewatering Facility
6 Truck Entrance to Dewatering Facility
Site
7 Loadout
Structure
Security Guard
Shack
Dewatering
Building
Procurement Process
RFP issued November 30, 2021
Proposals were due March 4, 2022
Final ranking issued June 2, 2022
1. Denali Water Solutions, LLC
2. Synagro West, LLC
3. Lystek International Limited
4. Mannco Solutions of California
5. Aries Clean Technologies LLC
Negotiations began late June 2022
– Confirmed each company’s approach to managing the
RWF’s dewatered biosolids, the availability and capacity of the sites to be used, and clarified commercial terms of the agreements
8 Company Primary Beneficial Use Sites Recommended
Allocation
•Land Application Sites (Merced County –
dry weather)
•Jess Ranch Compost Facility (Alameda
County – year-round)
35%
•Land Application Sites (Sacramento
County – year-round, Merced County –
dry weather, Solano County – mid-April to
mid-October)
•Liberty Compost Facility (Kern County –
year-round)
57%
•Fertilizer Facility (Fairfield OMRC – year-
round)
8%
Proposed Management Approach
9 10
Denali
–
Land Application and Composting
Synagro
–
Land Application and Composting
11 Lystek
–
Liquid Fertilizer Production
Negotiated Rates and Benchmarking
13 Notes:
(1) Includes: Central Marin Sanitation Agency, East Bay Municipal Utility District, Palo Alto, Roseville, San Francisco Public Utilities Commission (SFPUC), Santa Cruz, Santa Rosa, and Union Sanitary District (2) Includes average paid by SFPUC for loads delivered to Merced, Sacramento, and Solano counties (3) Based on the sum of rates for third-party haulers and rates for Lystek as wastewater agencies surveyed have separate contracts for transportation and beneficial use services.
Rates Currently Paid
by Others in
Northern CA (1)
All-Inclusive Rates
Negotiated by City
Staff
Land Application $49-$106 (2)
$88.47-$89.70Composting $71-$98
Liquid Fertilizer
Production $105-$141 (3) $156
Recommendation
Adopt a resolution approving the Addendum to the Environmental Impact Report for the San José-Santa Clara Water Pollution Control Plant Master Plan Approve and execute dewatered biosolids transportation and beneficial use services agreements with:
– Denali Water Solutions, LLC to manage approximately 35% of the dewatered biosolids produced annually by the RWF through June 30, 2029, with options to extend through June 30, 2033, and a maximum compensation of $18,400,000 subject to the appropriation of funds
– Synagro West, LLC to manage approximately 57% of the dewatered biosolids produced annually by the RWF through June 30, 2029, with options to extend through June 30, 2033, and a maximum compensation of $29,600,000, subject to the appropriation of funds
– Lystek International Limited to manage approximately 8% of the dewatered biosolids produced annually by the RWF through June 30, 2029, with options to extend through June 30, 2033, and a maximum compensation of $7,300,000, subject to the appropriation of funds
Adopt a resolution delegating authority to the City Manager or their designee to negotiate and execute amendments to account for changes to the percentage of the dewatered biosolids managed under each agreement and the corresponding compensation and/or execute extensions to the initial term of the agreement if such amendments do not exceed total of $55,300,000 14