Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving And Authorizing The Appropriate City Officials To Execute An Agreement With Synagro South, LLC, For Hauling, Advanced Treatment, And Disposal Of Biosolids, Including Destruction Or Sequestration Of PFAS, In An Annual Amount Up To $7,476,960.00, Subject To An Annual Escalation Of Up To Five Percent (5%), For A Period Of Ten Years, With Options To Renew For Two Additional Five-Year Periods In Accordance With Section 38.41(C)(9) Of The Procurement Code. (Best Interest)
Strategic Plan Focus
Infrastructure & Facilities
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
The Department of Public Utilities is requesting approval to enter into a 10-year agreement with Synagro South, LLC, (“Synagro”) for the hauling, advanced treatment, and disposal of the City of Hollywood’s wastewater biosolids. The Agreement is necessary to ensure that the City has a reliable, compliant, and long-term solution for managing biosolids as environmental regulations continue to tighten-especially those related to per- and polyfluoroalkyl substances (“PFAS”).
Currently, the City produces approximately 48,000 wet tons of biosolids each year, and this quantity is expected to increase to approximately 53,000 wet tons by Year 5 (2031) and 58,000 wet tons by Year 10 (2036). Existing disposal options are becoming more limited, less reliable, and more expensive. Without a long-term solution, the City risks higher costs, operational disruptions, and increased regulatory exposure.
Synagro is constructing a new, advanced biosolids management and renewable energy facility in Indiantown, Florida, designed specifically to meet emerging federal and state standards-including those addressing PFAS. The facility offers guaranteed processing capacity, predictable pricing, and does not require the City to make any capital investment. The facility is projected to begin receiving the City’s biosolids in FY 2028. Synagro has also committed up to 65,000 wet tons per year of processing capacity for the City for up to 20 years, subject to the exercise of the two optional five-year renewal periods and mutual agreement, thereby providing flexibility as the City’s needs grow.
The proposed Agreement establishes an initial rate of $155.77 per wet ton, consisting of a $122.00-per-wet-ton tipping fee and a $33.77-per-wet-ton transportation charge. This rate is subject to adjustment in accordance with the Agreement, including annual escalation not to exceed 5%. Based on the initial rate and projected quantity of 48,000 wet tons, the Agreement provides for a not-to-exceed amount of $7,476,960 for Year 1. Cost amounts for future years will be determined by the volume of wet tons and the annual rates, which are subject to annual increases based upon the indexes as set forth in the Agreement not to exceed 5% annually. The City will not be required to make any payments until biosolids are delivered to and accepted by Synagro’s Indiantown Facility.
The Agreement offers additional operational resiliency through backup disposal options, including rail-supported landfill outlets, which will help ensure continuity during facility downtime or emergencies. It also supports the City’s sustainability goals through resource recovery and modern waste-to-beneficial-use practices.
Given the limited alternatives, increasing regulatory requirements, and a time-sensitive need to secure processing capacity before it is committed to other municipalities, staff has determined that entering into a 10-year agreement with Synagro is in the City’s best interest.
The Procurement Code allows the City Commission to waive competitive bidding when doing so best protects the City’s operational, regulatory, and financial stability.
Staff recommends approval of the Resolution to secure a forward-looking biosolids management solution that protects public health, ensures regulatory compliance, stabilizes costs, and maintains reliable wastewater operations.
Fiscal Impact:
Approval of this resolution will not have an immediate fiscal impact on the City as the biosolids management and renewable energy facility in Indiantown, Florida is not anticipated to open until fiscal year 2028. Funding for this service will be requested in FY 2028 Operating Budget in account number 442.400601.53600.543630.000000.000.000 and will be budgeted in subsequent fiscal years’ operating budgets subject to approval and adoption by the City Commission.
Recommended for inclusion on the agenda by:
Vincent Morello, Director, Public Utilities
Chris O’Brien, Director, Public Safety