MEMORANDUM

To:     Mike Wildgen

          City Manager

From: Jeanette Klamm

          Residuals Coordinator

Re:     agenda item

Date:  December 8, 2004

Please place the following item on the City Commission agenda for consideration at their December 14, 2004 meeting:

Project Description.  Staff is recommending extension of the biosolids land application contract for 2005.

Project Description/History.  The current (2004) biosolids land application contract was awarded in response to an RFP in November 2003. The current contractor (Nutri-ject Systems, Inc. of Hudson, Iowa) has held a contract with the City for these activities since 2000. Nutri-ject has done a good job for the City and has been very responsive to our needs and requests over the last 5 years, as well as offered us an excellent price when compared to other projects of similar scope and size. Nutri-ject is one of only a few (and the closest) such contractors in the region that has the experience and reputation expected to successfully complete this type of federally regulated activity.

Project Status.  The current contract allows for extension with approval from both parties with inflationary adjustment, consistent with past contracts and Finance Department oversight and approval. Nurti-ject has agreed to an extension of the current contract for consistent services as we have received in past years for the current price plus inflationary adjustment.

Project Details. 

This extension of the contract would include all services, agreements, and responsibilities that are currently being provided by the contractor.       The contract extension would be for the current price plus inflationary adjustment, making the 2005 cost of $10.62/yard. This is approximately $.50/yard increase due to increased fuel and other operating costs over the past year.

We anticipate approximately 10,000 cubic yards of material to be handled by the contractor or approximately $106,000.

A copy of the contract is attached for reference.

Project Funding.  Biosolids land application activities are budgeted in the 2005 operating budget under other contractual services line item. The land application of biosolids saves the City over $200,000/year in our disposal cost compared to the alternative of landfilling.

Action Request.   Staff is recommending that the City Commission authorize the City Manager to enter into this contract with Nutri-ject Systems, Inc. for $106,000 for biosolids land application services for 2005.