Title
Consider a resolution authorizing the Mayor to execute an Agreement with Wastewater Transport Services, LLC for the purchase of sludge hauling and composting services
Body
The City of Round Rock is one of the owners of the Brushy Creek Regional Wastewater System along with our partner Cities of Cedar Park, Austin, and Leander. In addition, the City of Round Rock is the operator of the regional wastewater system and have been utilizing Sheridan as our hauler for the waste sludge that is generated at the two wastewater treatment plants and JV Dirt and Loam as the operator of the facility that composts the sludge. These businesses have recently been purchased by Wastewater Transport Services, LLC. The City would now like to enter into a new contract with Wastewater Transport Services, LLC for continuation of the sludge hauling and composting services.
The contract price is for $51.50 per ton with an estimated annual sludge production of 32,000 tons generated by the two regional wastewater treatment plants. Prices shall remain firm during the initial 12 months of this Agreement. A price increase to this Agreement may be considered and shall be equal to the U.S. Department of Labor Consumer Price Index (CPI-U) for all Urban Customers for that year.
This agreement is for 5 years for a not-to-exceed amount of $8,240,000. These sludge hauling and composting costs are shared by the four partner Cities based on their annual operating budget percentages that is calculated each year.
Cost: $8,240,000.00
Source of Funds: Regional Wastewater Operating Fund