Agenda Item Wording:
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Award a contract for disposal of Class B biosolids - Authorize the City Manager to award a contract to Holloway Environmental Solutions for the disposal of Class B biosolids generated at the Visalia Water Reclamation Facility for a one-year term, with four annual renewal options, with an initial not-to-exceed amount of $250,000 and a total contract limit of $1,350,000 over the five-year term and appropriate $450,000 from the Wastewater Fund.
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Agenda Date: 05/18/2026
Prepared by:
Ben Litwack, Public Works Manager, ben.litwack@visalia.gov, 559-713-4671
Nick Bartsch, Public Works Director, nick.bartsch@visalia.gov, 559-713-4052
Department Recommendation: Staff recommends that the City Council authorize the City Manager to award a one-year contract, with four annual renewal options, to Holloway Environmental Solutions, LLC for the disposal of Class B biosolids generated at the Visalia Water Reclamation Facility, with an initial not-to-exceed amount of $250,000 and a total contract limit of $1,350,000 over the five-year term and appropriate $450,000 from the Wastewater Fund.
Summary:
The City of Visalia issued Request for Bids (RFB) 25-26-39 for an annual contract for the disposal of Class B biosolids generated at the Visalia Water Reclamation Facility. Holloway Environmental Solutions, LLC submitted the lowest responsive bid to receive and dispose of Class B biosolids at the Lost Hills Environmental Waste Facility at a tipping fee of $25.00 per wet ton. The contract term will be one year with four additional annual renewal options. Staff recommends awarding the contract with an initial not-to-exceed amount of $250,000 and a total five-year contract limit of $1,350,000 to account for annual price adjustments and potential increases in biosolids disposal quantities. Staff also recommends the appropriation of $450,000 from the Wastewater Fund to account for the anticipated combined total of hauling and disposal.
Background Discussion:
The Visalia Water Reclamation Facility (WRF) produces Class B biosolids as part of the wastewater treatment process. These biosolids must be managed and disposed of in compliance with applicable federal and state regulatory requirements, including EPA 40 CFR Part 503 biosolids regulations and requirements administered by the State Water Resources Control Board.
The WRF typically produces approximately 7,000 to 10,000 tons of Class B biosolids annually, provided that they’re removed during the dry Summer and Fall seasons. Maintaining a reliable disposal outlet is necessary to support continuous WRF operations, prevent accumulation of biosolids on site, and ensure the facility can continue to process solids generated by the treatment process.
On March 17 and March 24, 2026, the City advertised RFB 25-26-39 for an annual contract for disposal of Class B biosolids. The RFB requires the disposal facility to maintain the permits necessary to receive and manage Class B biosolids, accept a minimum of 300 tons per day allocated to the Visalia WRF, provide certified weigh tickets or documentation confirming tonnage received, and maintain safe and efficient receiving operations. The RFB provides for an initial twelve-month contract term, with the City option and contractor consent to extend the contract annually for four additional one-year periods. The RFB also allows annual price adjustments at the time of renewal based on the CPI-U, U.S. City Average, All Items, with any annual increase not to exceed 5%.
Bids were opened on April 23, 2026. The City received bids from Synagro and Holloway Environmental Solutions, LLC. Synagro identified a disposal facility at 12421 Holloway Road in Lost Hills and submitted a tipping fee of $32.07 per ton. Holloway identified the Lost Hills Environmental Waste Facility at 14045 Holloway Road in Lost Hills and submitted a tipping fee of $25.00 per ton.
The RFB evaluated bids using a True Delivered Cost formula to account for both the bidder’s tipping fee and the City’s transportation cost. The formula was TDC = T + (0.30 x D), where T is the bidder’s tipping fee per wet ton and D is the one-way distance in miles from the Visalia WRF to the disposal facility. The $0.30 factor represents the City’s standardized hauling cost per wet ton per one-way mile, based on a $135 per hour hauling rate, 20-ton average payload, 45 mph average travel speed, and round-trip travel. This allowed the City to compare disposal options based on the overall estimated cost to the City, rather than tipping fee alone. The calculation results are as follows:
Holloway:
Distance From WRF - 68.5 miles
Tipping Fee - $25 per ton
Calculation - 25 + (0.30 x 68.5) = $45.55
Synagro:
Distance from WRF - 71.1 miles
Tipping Fee - $32.07 per ton
Calculation - 32.07 + (0.30 x 71.1) = $53.4
Utilizing the True Delivered Cost formula, it was determined that Holloway submitted the lowest bid. The City has previously utilized Holloway Environmental Solutions, LLC for disposal of Class B biosolids generated at the WRF. Holloway has been a reliable vendor and has provided responsive service during prior disposal operations, including periods when the City needed additional disposal capacity. While delays at Holloway’s receiving facility did lead to increased hauling costs last year, staff believes that an earlier start to hauling operations during the dry summer months will help to mitigate that risk.
Staff recommends awarding a one-year contract, with four annual renewal options, to Holloway Environmental Solutions, LLC for the disposal of Class B biosolids generated at the WRF.
Fiscal Impact including annual maintenance and operating costs: Staff is requesting an initial not-to-exceed (NTE) amount of $250,000 for the first contract year. Holloway Environmental Solutions, LLC submitted a bid of $25.00 per wet ton; however, the total annual cost will depend on the actual quantity of biosolids delivered to the disposal facility during the contract year.
The requested total five-year contract limit is $1,350,000. This amount accounts for the initial annual NTE, potential CPI-based annual price adjustments allowed under the RFB, and the possibility that biosolids disposal quantities may increase over the term of the contract. Funds are budgeted annually in the Wastewater Fund (431) Operating Budget within 4336-55700. Adequate funds are budgeted for biosolids disposal but additional funds will need to be appropriated at a future date to account for the increase in hauling costs due to the Tulare County Landfill’s ongoing capacity issues and potential fuel price increases.
Prior Council Action:
August 18, 2025 - Authorized an emergency contract with Holloway Environmental Solutions, LLC for disposal of Class B biosolids generated at the Visalia Water Reclamation Facility.
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to award a one-year contract, with four annual renewal options, to Holloway Environmental Solutions, LLC for the disposal of Class B biosolids generated at the Visalia Water Reclamation Facility, with an initial not-to-exceed amount of $250,000 and a total contract limit of $1,350,000 over the five-year term.
Environmental Assessment Status: N/A
CEQA Review: N/A
Deadline for Action: 05/18/2026
Attachments:
RFB 25-26-39
Addendum No. 1
Bid Summary RFB 25-26-39
Holloway Environmental Solutions, LLC Bid
Ownership Disclosure
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Check all that apply.
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