The City of Sugar Land (City) owns and maintains two (2) Wastewater Treatment Plants (WWTP). The North WWTP was constructed in 1975 by the Brazos River Authority (BRA). The City retained ownership of the facility in 2005 and elected to continue contracting operations with BRA. The plant is currently permitted to treat 6 million gallons of wastewater per day (MGD). Last year the North WWTP averaged 4.2 MGD. The South WWTP was transferred to the City after annexation of Ft. Bend County Mud 13 in 1995. The South WWTP has also been operated by BRA since 2005. The South WWTP is currently permitted to treat 7.5 MGD. Last year the South WWTP averaged 4.4 MGD. The South WWTP is also home to a reclaimed water facility which provides reclaimed water for irrigation and amenity lake filling in the Riverstone area.

In 2009 the City went through a thorough selection process for wastewater operations. The City solicited an initial Request for Qualifications (RFQ) to identify qualified operators. After review, a short list was generated and each of the selected applicants submitted formal operating proposals. From these proposals, along with a panel interview, the Brazos River Authority (BRA) was selected as the most qualified applicant to continue operation at each facility. The City currently has an operating agreement (Agreement) with BRA for the operation and maintenance of both wastewater treatment plants.

The original three-year Agreement began on October 1, 2010, and was extended per the Agreement terms for an additional three years on October 1, 2013. This three year extension would have expired on September 30, 2016. However, on August 16, 2016 City Council and BRA agreed to mutually extend the existing operations agreement for an additional two years. The two year extension was intended to give the City time to finalize any annexation decisions and build a wastewater operating agreement that includes all additional treatment facilities. All terms and conditions remained in effect as originally written. BRA also operates and maintains the reclaimed water facility, located at the South WWTP, since its startup in 2016.

In addition to the two existing wastewater treatment facilities, two independent wastewater treatment plants servicing the New Territory and Greatwood subdivisions will be added to the City's inventory upon annexation. The plants are permitted to treat 2.5 million gallons per day (New Territory) and 1.35 million gallons per day (Greatwood). The Plants are currently operated by Si Environmental Inc. On December 12, 2017 the City will take ownership of all water and wastewater infrastructure within these areas. Throughout the annexation process, the City has always planned for these two facilities to be operated though an operations contract similar to the one currently in place for the two existing treatment plants.

The City plans to incorporate the operations of all four facilities into one or multiple long-term operation contracts starting at the end of the existing agreement (October 1, 2018). In order for the contract terms to align and in an attempt to identify any potential savings associated with an all-inclusive wastewater treatment operations contract, the City is planning in enter into a 10 month agreement with the existing wastewater operations contractor for Greatwood and New Territory (Si Environmental Inc.).

The City has reviewed the current operator’s performance record, received recommendations from current MUD Directors, and has been working together with the current operator throughout the annexation process. City staff is confident the current operator is well equipped to successfully meet all current City service levels with respect to wastewater treatment operations. 

The contract consists of a Base Fee intended to capture all daily operations. This Base Fee includes but is not limited to:

• Daily Operations
• Water Quality Monitoring and Reporting
• Routine maintenance
• Preventative maintenance
• Some landscaping
• Sludge dewatering and hauling

It is important to note, the Preventive Maintenance program has been established to align with equipment manufactures recommended maintenance, the City’s required maintenance schedule, and the current schedule performed by the MUD districts.

In addition to this work, the City also anticipates unforeseen needs throughout the year. The contract requires the operator to receive City approval for any work outside the Base Fee that exceeds $3,000. The City also conducted a comprehensive facility assessment during the beginning of the annexation process. The assessment identified capital needs as well as operational needs. Portions of the proposed budget will be used to address these operational concerns.

The Budget Breakdown is as follows.

• Base Fee:$357,570
• Unforeseen Needs / Assessment Identified Improvements: $242,430
• Total Contract Award:$700,000

After reviewing the current operations contract with the MUD Districts, the last year’s total invoices included approximately $600,000 in work between the two facilities. The increased award amount will be used to make identified improvements to the facilities.

The Agreement is exempt from the competitive bidding requirements pursuant to Section 252.022(a)(2), Texas Local Government Code. The plan to enter into an agreement with the current operator was presented as part of the annexation plan to the City’s Finance and Audit Committee on April 14, 2016. At that time, the Finance and Audit committee concurred with staff that the City’s best option for maintaining consistently reliable service was to enter into a contract with the existing contractor for ten months.

The Public Works Department recommends approval of a ten (10) month contract in the amount of $700,000.00 between The City of Sugar Land and Si Environmental LLC., for Operation and Maintenance of the City’s Greatwood and New Territory Wastewater Treatment Facilities.