Council approved the contract with Sweetwater Environmental, Inc. for Biosolids Hauling and Disposal on March 28, 2011. The initial term was three (3) years with the option to renew for two (2) additional one (1) year terms. This contract is used for hauling and disposal of Wastewater biosolids.
Sweetwater Environmental, Inc. is requesting to increase the haul rate from $20.35 to $25.35 per wet ton. In addition, Sweetwater is requesting to increase the rate for emergency disposal to $51.40 per ton. The request is based on Sweetwater's inability to recover fixed costs due to lower actual quantities hauled than what was estimated at the time of bid. In addition, variable costs such as fuel have increased during the last three years. Based on current usage, the increased amount will be approximately $215,000.00 per year or 14% of the total contract amount.
The Procurement and Contracts Division and the Wastewater Division have evaluated the request and are recommending approval. A recent market survey indicates other local municipalities are paying more for the same type of service.