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City °JArts &Innovation <br />City Council Memorandum <br />IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII <br />TO: <br />FROM: <br />SUBJECT: <br />ISSUES: <br />HONORABLE MAYOR AND CITY COUNCIL <br />PUBLIC WORKS DEPARTMENT <br />DATE: AUGUST 16, 2022 <br />WARDS: ALL <br />SECOND AMENDMENT TO THE AGREEMENT WITH DENALI WATER <br />SOLUTIONS, LLC OF GARDEN GROVE, CALIFORNIA FOR BIOSOLIDS <br />HAULING AND DISPOSAL/REUSE SERVICES TO EXTEND THE TERM <br />THROUGH DECEMBER 31, 2022 AND INCREASE THE COMPENSATION <br />DURING THE EXTENDED TERM BY AN ADDITIONAL AMOUNT OF $800,000, <br />FOR A NEW CONTRACT AMOUNT OF $16,186,211 <br />Approve the Second Amendment to the Agreement with Denali Water Solutions, LLC of Garden <br />Grove, California, for Biosolids Hauling and Disposal/Reuse Services to extend the contract term <br />through December 31, 2022, and increase the compensation during the extended term by an <br />additional amount of $800,000, for a new contract amount of $16,186,211. <br />RECOMMENDATIONS: <br />That the City Council: <br />1. Approve the Second Amendment to the Agreement with Denali Water Solutions, LLC of <br />Garden Grove, California, for Biosolids Hauling and Disposal/Reuse Services to extend the <br />contract term through December 31, 2022, and increase the compensation during the <br />extended term by an additional amount of $800,000, for a new contract amount of <br />$16,186,211; and <br />2. Authorize the City Manager, or designee, to execute the Second Amendment to the <br />Agreement, including making minor and non -substantive changes. <br />BACKGROUND: <br />The City's Regional Water Quality Control Plant treatment facility removes organic matter from <br />the wastewater in order to meet regulatory water quality requirements prior to discharge to the <br />Santa Ana River or reuse as recycled water. The organic matter (biosolids) removed under <br />contract is hauled to Arizona and beneficially reused as a soil amendment for non-food crops. <br />The quality of the biosolids complies with Environmental Protection Agency (EPA) Federal <br />Biosolids regulations. On an annual basis approximately 48,000 tons of biosolids are produced, <br />which requires 1,950 truck trips to Arizona for disposal. <br />