CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 21 Section Name: {{section.name}} Account Number: 72-4671 File ID: {{item.tracking_number}} TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: June 16, 2025
SUBJECT:
Wastewater Treatment Plant Biosolids Hauling and Disposal — Contract Change Order RECOMMENDATION:
Approve Contract Change Order No. 3 to an agreement with Synagro-WWT, Inc. for wastewater treatment plant biosolids hauling and disposal services to exercise a one-year extension in the amount of $750,000, for a revised total contract amount not to exceed $2,794,250; establish a contingency reserve of $100,000; and authorize the Public Works Director to execute future change orders and extensions within the contingency balance.
BACKGROUND:
The wastewater treatment process produces biosolids, which are hauled off-site for routine disposal. The Wastewater Treatment Plant (WWTP) estimates 10,000 tons per year of biosolids requires hauling and disposal.
In June 2022, a three-year agreement was executed with Synagro-WWT, Inc. in the amount of $1,824,250 to haul and dispose of the WWTP’s biosolids. The agreement included two optional one-year extensions, which may be executed by the City at its discretion. The agreement was awarded in accordance with Municipal Code section 3.60.030, wherein a competitive public process was used to obtain bids for this service.
Change Order No. 1 was executed in May 2024 to cover increased hauling costs for the second year of the three-year agreement, increasing the agreement by $100,000 for a revised total agreement cost of $1,924,250. Change Order No. 2 was executed in April 2025 to cover increased hauling costs for the third year of the three-year agreement, further increasing the total by $120,000 for a revised total amount of $2,044,250. The WWTP has two digesters; however, Digester No. 2 has been out of commission for repairs, resulting in increased biosolids production. The increase in biosolids production necessitated the execution of Change Orders No. 1 and 2.
Contract Change Order No. 3 will authorize the first one-year extension with the term of the agreement ending on June 30, 2026. Council’s original action in June 2022 included authorizing the two one-year extensions at a cost of $610,000 each.
Per the original agreement, the unit price fees past the original three-year term are subject to escalation based on the rate of the published consumer price index (CPI) for the applicable period. In addition to adjusting for CPI, staff is estimating continued increased biosolids hauling needs as Digester No. 2 will remain out of commission for part of the upcoming fiscal year, resulting in the requested amount of $750,000 being requested for this one-year extension.
Staff recommends approval of Contract Change Order No. 3 in the amount of $750,000 and establishing a contingency of $100,000 to address any increased biosolids production that may occur as the WWTP transitions to commissioning and starting up the new facilities.
CITY OF SAN MATEO
BUDGET IMPACT:
Funding for biosolids hauling and disposal services are budgeted annually in the Wastewater Treatment Plant Operations operating budget. Pending approval and adoption of the 2025-26 Operating Budget, sufficient funds will be available to fund this change order to extend services through June 30, 2026.
ENVIRONMENTAL DETERMINATION:
This biosolids hauling and disposal is categorically exempt from CEQA as an “existing facility,” because it consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. (CEQA Guidelines Section 15301.)
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
Att 1 – Contract Change Order No. 3
STAFF CONTACT
Robert Learmonth, Wastewater Treatment Plant Manager
[email protected]
650-522-7386
Deryk Daquigan, Deputy Director Public Works
[email protected]
650-522-7287