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Amendment No. 2, Biosolids Hauling and Disposal/Reuse Services • Page 2 <br />On April 5, 2016, the Biosolids Hauling and Disposal/Reuse Services Agreement was awarded to <br />Denali Water Solutions, LLC (Denali) in the amount of $5,428,895 for services from April 22, 2016, <br />through December 31, 2018. The agreement states that services can be extended for up to four <br />years upon mutual consent and approval by the City Council. <br />On September 25, 2018, the City approved the First Amendment to the Agreement for Biosolids <br />Hauling and Disposal/Reuse Services with Denali Water Solutions, LLC to extend the contract term <br />for the period of December 18, 2018, to June 30, 2022. <br />DISCUSSION: <br />The Second Amendment to the Agreement with Denali is to provide transportation and beneficial <br />re -use disposal of biosolids. Under the contract terms, Class B biosolids will continue to be hauled <br />to Arizona and beneficially reused as a soil amendment for non-food crops. Sub -Class B biosolids <br />will be hauled to Denali's preferred composting facility and beneficially used as compost. Denali <br />Water Solutions has provided these services to the City for approximately twenty years and is <br />expected to continue providing quality service to the City at a competitive rate. <br />Pursuant to Purchasing Resolution No. 23812, Section 702(h), which states "Competitive <br />Procurement through the Informal Procurement and Formal Procurement process shall not be <br />required in any of the following circumstances:...(h) When Services, except for Professional <br />Services, can be Procured from a Contractor who offers the same or better price, terms and <br />conditions as the Contractor previously offered as the Lowest Responsive Bidder under <br />Competitive Procurement or negotiations conducted by the City or another public agency, <br />provided that, in the opinion of the Manager, it is in the best interests of the City to do so". <br />The Purchasing Manager concurs that the recommendation to approve is in compliance with <br />Purchasing Resolution No. 23812. <br />STRATEGIC PLAN ALIGNMENT: <br />Theis item supports Strategic Priority 4 — Environmental Stewardship and Goal 4.2 — <br />Sustainably manage local water resources to maximize reliability and advanced water reuse to <br />ensure safe, reliable, and affordable water to our community. <br />1. Community Trust — Conducting regular water treatment routines ensures wastewater <br />discharges do not negatively impact the community and environment. The RWQCP <br />treatment facility removes organic matter from the wastewater to meet regulatory water <br />quality requirements prior to discharge to the Santa Ana River or reuse as recycled water. <br />2. Equity — Biosolids Hauling and Disposal/Reuse Services support RWQCP efforts in <br />protecting the public's health and environment by ensuring wastewater treatment is <br />performed efficiently in compliance with federal, state, regional, and local regulatory <br />requirements. <br />3. Fiscal Responsibility — Biosolids Hauling and Disposal/Reuse Services support RWQCP <br />efforts in minimizing inefficiencies and developing control methods to maximize reliability <br />and ensure efficient wastewater treatment. <br />4. Innovation — Biosolids Hauling and Disposal/Reuse Services exemplify a collaborative <br />