FROM: James D. Herberg, General Manager
Originator: Lan C. Wiborg, Director of Environmental Services
SUBJECT:
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UPDATES TO BIOSOLIDS ACCOUNT POOL LANGUAGE
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Authorize the General Manager to amend biosolids management contracts in the Biosolids Account Pool (BAP) to move funds from one contract to another within the BAP, as necessary due to anticipated changes in climate, regulations, contractor performance, or to realize operational and financial efficiencies; with the total of all contracts not to exceed the Board authorized annual amount of $19,000,000.
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BACKGROUND
Biosolids are the solid product of municipal wastewater processing which have been treated. They may be safely recycled to amend soil directly or create composted soil amendments, and other beneficial uses. Currently, the Orange County Sanitation District (Sanitation District) produces approximately 550-600 tons of biosolids per day. The Sanitation District manages its biosolids by transporting approximately 40% to land application sites in Arizona and 60% to composting facilities.
The Board of Directors have previously authorized assigning $19,000,000 of funds to the BAP for staff to move from one contract to another, as deemed necessary, due to unanticipated circumstances. Currently, the contracts associated with the BAP consume the total $19,000,000 assigned. In the event that a contract expires or terminates, this revision would allow any funds assigned to the pool to be used to increase and amend associated contracts, as deemed necessary, for ongoing operation of the biosolids program.
Revising the language of the BAP to allow the movement of funds for operational and financial efficiencies, rather than only unanticipated circumstances, can provide cost savings for the Sanitation District as well as flexibility of operations which can vary depending on multi...
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