REPORT TO THE CITY COUNCIL FROM: BROCK D. BUCHE, PE, PLS, Director Department of Public Utilities BY: RICK STAGGS, Assistant Director Department of Public Utilities - Wastewater Management Division CORY ASHER, Wastewater Manager - Certified Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Approve a first amendment to a service contract with Holloway Environmental Solutions, LLC., to increase the contract not-to-exceed amount for Biosolids reuse and disposal services in the amount of $2,826,866.69, for a total contract value of $9,198,866.69 (Bid File No. 9468) (Citywide) ..Body RECOMMENDATION Staff recommends that Council approve a first amendment to a service contract with Holloway Environmental Solutions, LLC., to provide for Biosolids reuse and disposal services in the amount of $2,826,866.69, for a total contract value of $9,198,866.69; and authorize the Director of Public Utilities, or designee, to sign the amendment on behalf of the City of Fresno (City). EXECUTIVE SUMMARY City of Fresno's Regional Wastewater Reclamation Facility (RWRF) generates Biosolids as a byproduct of wastewater treatment. The proposed first amendment would allow for Biosolids management to continue to be performed by Holloway Environmental Solutions, LLC. The Fresno Biosolids project involves transporting Biosolids by Holloway Environmental Solutions, LLC., to be used for mine reclamation and soil amendment. On January 17, 2019, the Council authorized a service contract with Holloway Environmental Solutions, LLC., for Biosolids reuse and disposal services. Currently, the Department of Public Utilities Wastewater Management Division seeks approval of a first amendment to the service contract that would increase the contract's not-to-exceed amount from $6,372,000.00 to $9,198,866.69. Biosolids disposal is a critical step in the wastewater treatment process. BACKGROUND The City of Fresno's RWRF is a 24 hours per day, 7 days per week operation, reclaiming wastewater for beneficial use for the City and the surrounding areas. The RWRF currently accepts and processes approximately 58 million gallons of wastewater daily. During the treatment process, the RWRF generates approximately 325 tons of Biosolids daily as a byproduct. These Biosolids are managed by two contracted haulers: Synagro Technologies, Inc., and Holloway Environmental Solutions, LLC. The Department of Public Utilities Wastewater Management Division has existing service contracts with both haulers mentioned. However, the initially allocated not-to-exceed amount for Holloway Environmental Solutions, LLC., has been fully utilized. Consequently, the Division is seeking the Council's approval for an additional funding allocation of $2,826,866.69. This adjustment will elevate the total contract value to $9,198,866.69, ensuring the availability of adequate funds for the uninterrupted management of Biosolids up to the contract's expiration. City Attorney has reviewed and approved the first amendment as to form. Upon approval of the City Council the first amendment will be executed by the Director of Public Utilities, or designee, on behalf of the City. ENVIRONMENTAL FINDINGS This is not a "Project" for the purposes of CEQA pursuant to CEQA guidelines section 1578(b)(5), as it is an administrative action that will not result in direct or indirect changes to the environment. LOCAL PREFERENCE Local preference does not apply to this action because this is an amendment to an existing Service Contract. FISCAL IMPACT There is no impact to the General Fund. The project has citywide benefit. Appropriations for this project are included in the Fiscal Year 2024 Wastewater Management Division's Operating Budget, and future purchases will be included in future fiscal year budgets. Attachments: Attachment 1 - Holloway Environmental Solutions, LLC., Amendment 1 Attachment 2 - Holloway Environmental Solutions, LLC., Service Contract