598-2022

Ordinance

Amend contract with Synagro West, LLC to correct a pricing error and account for a price increase due to an introduced tax from Metro for a total not to exceed cost of $9,082,945 (amend Contract No. 30007677)

Referred

The City of Portland ordains:

Section 1. The Council finds:

  1. The Bureau of Environmental Services has ten digesters at the Columbia Blvd. Wastewater Treatment Plant.  To maintain their efficiency, they need to be periodically cleaned.  This translates into cleaning five (5) digesters per year per contract with Synagro
  2. Clean digesters increase the organic material capacity therefore augmenting the potential of biogas production. By having clean digesters that contain mostly organic material, this increases the efficiency of the plant by maximizing digester volume for regulatorily mandated detention time and volatile solids reduction, increase bio-gas production as well as reducing the potential of sending flows to the plant's facultative lagoon when the digesters have reached their capacity.
  3. On February 19, 2020, City Council approved Ordinance No. 189865 authorizing a competitive solicitation for digester cleaning services and the resulting contract No. 30007677 for an estimated annual cost of $1, 250,000, for a total not-to-exceed cost of $6,250,000 over five (5) years.
  4. An error occurred in the original establishment of Contract 30007677; the pricing provided by Synagro estimated the annual cost for cleaning five digesters to be $1,776,335.25 but this was not reflected on page one of the Contract which established the annual amount to be $1,250,000.00, therefore the annual amount needs to be increased by $526,335.25.
  5. Another error to the original contract occurred on page 37, Section 4, Project Schedule, 4.1; Number of Digesters should read 5 per year instead of 3 to coincide with the intent of this Contract on its inception.
  6. Metro has introduced an excise tax, which increases the operating costs of Vendors performing this work. As such, Synagro has absorbed the costs for the first year, but will need a price change to account for the new tax beginning July 1, 2022. The price increase requested by Synagro is a 2.8% increase to the cost per dry ton of waste hauled, from $594.50 to $611.15 for an additional $50,317.25 per year for four years.
  7. The requested amendment increases the annual cost from $1,250,000 to $1,826,652.50 for a not-to-exceed total value of $9,082,945.25.  Funds are available in the Sewer System Operating Fund, FY 2022-23 Budget, Bureau of Environmental Services,  ESOM000003

NOW, THEREFORE, the Council directs:

  1. The Chief Procurement Officer is authorized to execute an amendment to Contract No. 30007677 with Synagro for the purposes described in Section 1, in a form similar to the amendment added as Exhibit A, to increase the not-to-exceed contract value to $9,082,945.25, provided the amendment has been approved as to form by the City Attorney’s Office.
  2. The Mayor and Auditor are hereby authorized to draw and deliver warrants chargeable to the Sewer System Operating Fund Budget when demand is presented and approved by the proper authority.

Documents and Exhibits

Impact Statement

Purpose of Proposed Legislation and Background Information

This amendment to Contract No. 30007677, between the City of Portland’s BES, and Synagro West, LLC (Synagro) for digester cleaning, hauling and disposal services is to correct a pricing error reflected in original not-to-exceed (NTE) amount, and account for an increase of price due to an introduced tax from Metro (Ordinance; amend Contract No. 30007677)

The Bureau of Environmental Services needs to have its ten digesters at the Columbia Blvd. Wastewater Treatment Plant cleaned every two years to maintain maximum biosolids storage and biogas production. This translates into cleaning five digesters per year which will realize that each digester gets cleaned every other year.

Clean digesters increase the organic material capacity therefore augmenting the potential of biogas production. By having clean digesters that contain mostly organic material, this increases the efficiency of the plant by maximizing digester volume for regulatorily mandated detention time and volatile solids reduction as well as reducing the potential of sending flows to the plant's facultative lagoon when the digesters have reached their capacity.

Ordinance No. 189865 was approved by City Council on February 9, 2020, authorizing the Chief Procurement Officer to issue a competitive solicitation for the digester cleaning

services on behalf of BES.  This will be the first amendment to this contract.

No revenues will be impacted by this legislation.

This legislation does not change existing City policy.

Financial and Budgetary Impacts

Funding for this purchase will be provided by the Bureau of Environmental Services. Funding is available in the Sewer System Operating Fund budget under ESOM000003

Community Impacts and Community Involvement

No known persons or groups will be testifying. No future public involvement is anticipated or necessary for this request.

100% Renewable Goal

This action does not increase or decrease the City’s total energy use. This action does not increase or decrease the City’s renewable energy use.

Budget Office Financial Impact Analysis

The requested amendment increases the annual cost by $576,653, from $1,250,000 to $1,826,653, for a not-to-exceed total value of $9,082,945. Funds are available in BES’s FY 2022-23 budget in the Sewer System Operating Fund.

Agenda Items

598 Regular Agenda in June 29-30, 2022 Council Agenda

Referred to Commissioner of Public Safety

Requested Agenda Type

Regular

Date and Time Information

Requested Council Date
Time Requested
15 minutes