Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve Amendment #1 to Contract #20230050 for Biosolids (Dewatered Sludge) Hauling Services Related to Wastewater Treatment.
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Submitted By: Kevin Eggleston, Procurement Contracting Officer I, Procurement Management Division (PMD).
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Kevin Eggleston, Procurement Contracting Officer I, PMD.
2. Parties: City of Port St. Lucie and Merrell Bros., Inc.
3. Purpose: To continue the removal and disposal of the biosolid byproduct generated at the Glades and Westport Wastewater Treatment Facilities through a contract extension with Merrell Bros., Inc., ensuring uninterrupted service while a new competitive solicitation is completed.
4. New/Renewal/Modified: Modified.
5. Duration: The initial term began on January 1, 2024, and expires on December 31, 2025. This Amendment #1 will extend the expiration date of the Contract through June 30, 2026.
6. Benefits to Port St. Lucie: Proper removal and disposal of biosolids is necessary to provide environmentally safe and reliable wastewater treatment to the USD service area. Such hauling prevents interruptions to the treatment process, which can lead to service interruptions to residents and businesses within the service area.
7. Cost to Port St. Lucie (Annual and Potential): The proposed six-month extension through June 30, 2026, is estimated at $1,777,757.00. The new price per wet ton is $148.26.
Presentation Information: N/A
Staff Recommendation: Move that the Council approve Amendment #1 to Contract #20230050 for Biosolids (Dewatered Sludge) Hauling Services Related to Wastewater Treatment.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve Amendment #1 to Contract #20230050.
2. Move that the Council not approve Amendment #1 to Contract #20230050 and provide staff with direction.
Background: Biosolids are a byproduct of the wastewater treatment process and must be removed from the Glades and Westport Wastewater Treatment Facilities and transported to an approved Class AA processing facility. These hauling services are essential to wastewater operations, and the Utility Systems Department cannot function without uninterrupted disposal capacity.
Merrell Brothers currently provides these services; however, the vendor declined the upcoming renewal option due to substantial industry-wide cost increases. Recent changes in State regulations, including the implementation of Senate Bill 712, have significantly restricted land application of biosolids by imposing phosphorus-based limits. As a result, permitted land availability has sharply declined, placing heavy pressure on Class AA treatment facilities throughout Florida. Several major biosolids facilities have closed in recent years, further reducing capacity and increasing disposal costs.
These regulatory shifts, combined with rising transportation, fuel, and operational expenses, have led to a statewide capacity shortage and increased market rates. Merrell Brothers has communicated that the existing contract pricing is no longer sustainable under current conditions. To maintain uninterrupted wastewater operations while the City prepares and completes a new competitive solicitation, a short-term contract extension with updated pricing is required. This extension ensures continued compliance and reliable biosolids disposal during the transition period.
Issues/Analysis: Merrell Brothers holds the City’s current Contract for biosolids hauling. Due to significant statewide regulatory and market pressures, the vendor declined the renewal option under the existing pricing structure. The updated pricing aligns with current industry conditions, which have been affected by stricter state regulations, reduced disposal capacity, and increased operational costs across the biosolids sector.
A short-term contract extension is necessary to maintain uninterrupted hauling and disposal services while the City completes a new competitive solicitation. This extension ensures continuity of operations at both wastewater treatment facilities and prevents service disruptions that could impact compliance and public health.
Financial Information: Westport WWTF - 431-3512-543410 & Glades WWTF - 431-3513-543410.
Special Consideration: This short-term extension is required to maintain regulatory compliance and uninterrupted operations while a new competitive solicitation is completed.
Location of Project: Westport Wastewater Treatment Facility & Glades Wastewater Treatment Facility.
Attachments:
1. Amendment #1.
2. Original Contract.
3. Vendor’s Justification / Proposal.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 25317-05.
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.