Explanation
This legislation authorizes the Director of Public Utilities to execute contract modification No. 20 to the Organic Waste Processing Agreement between the City of Columbus (City) and Kurtz Brothers Central Ohio, LLC (Kurtz).
Fixed Rate Sewerage Sludge Processing Term:
The contract continues a fixed rate fee of $33.50 per wet ton of sewerage sludge processing for the duration of this contract (10 years + 5 year extension). This contract authorizes the transfer to the organic waste recovery and reuse system of up to 25,000 wet tons of sewerage sludge per year at this rate. This contract provides DOSD with an additional beneficial alternative use option for sewerage sludge.
Log Grinding:
The contract adds a provision to fund log grinding services utilizing funds originally intended for hauling incinerator ash as part of a beneficial reuse program at the City’s two wastewater treatment plants. Incinerator ash had been historically stored at the treatment plants in lagoons and land filled at considerable expense to DOSD. This program allowed for up to 5,000 tons of wastewater treatment incinerator ash a year to be removed and adapted for beneficial reuse at a rate of $30.97 per ton, which was less than the land filing cost to the City. However, in 2015, the City ceased incineration of sewerage sludge, and thus incinerator ash generation, prior to the end of the contract.
Ash Hauling:
This modification increases the contracted amount for ash hauling per terms of the City and Kurtz’s negotiation over the remaining one-year of that provision of the contract. The City ceased incorporation of incinerator ash into its compost product ahead of that provision of the contract’s end date, and these funds, in addition to the aforementioned log grinding, are the negotiated alternative.
1. Amount of additional funds: The amount of additional funds needed for this contract is $550,000.00. The total City cost of the original contract and all modifications is $17,864,453.00.
2. Reason additional funds were not foreseen: The need for additional funds was foreseen in the original contract.
3. Reason other procurement processes were not used: This contract is for 10 years with a 5-year extension provided in the original contract.
4. How cost was determined: The cost, terms and conditions are in accordance with the original agreement as modified.
SUPPLIER:
Kurtz Brothers Central Ohio, LLC | D365 Vendor #001253 | Expires 10/25/2026 | Kurtz Brothers Central Ohio, LLC does not hold MBE/WBE status.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
FISCAL IMPACT:
$550,000.00 was budgeted for this modification. The Compost section budgeted for two other bio-solids contracts that will not be encumbered this year, so there is enough funding available to cover the contract's additional log grinding provision.
$262,326.69 has been spent so far in 2025 as of March 25, 2025
$1,795,178.73 was spent in 2024
$519,317.29 was spent in 2023
Title
To authorize the Director of Public Utilities to modify and increase an agreement with Kurtz Brothers Central Ohio, LLC for the design, construction and operation of the Organic Waste Recovery and Reuse System Project; to authorize the expenditure of $550,000.00 from the Sewer Operating Sanitary Fund. ($550,000.00)
Body
WHEREAS, the City of Columbus is committed to providing environmentally friendly programs for the beneficial reuse of yard waste, sewerage sludge, fats, oils and greases, and other waste streams from the community, and is continuously searching for alternatives to landfill disposal and incineration; and
WHEREAS, the Division of Sewerage and Drainage, Department of Public Utilities, and the Solid Waste Authority of Central Ohio were desirous of establishing an organic waste recovery and reuse system (OWRRS) program to process municipal sewerage sludge, fats, oils, greases, food waste, animal waste, yard waste and other organic material; and
WHEREAS, the Solid Waste Authority of Central Ohio and the City of Columbus utilized the Request for Statement of Qualification competitive procurement provisions of Chapter 329 of the Columbus City Code for purposes of procuring a ten-year agreement for the design, construction and operation of the area’s first organic waste recovery and reuse system, and determined Kurtz Brothers Central Ohio, LLC, to be the highest ranking offeror; and
WHEREAS, Ordinance No. 1270-2005, as passed by Columbus City Council on July 25, 2005, authorized the Director of Public Utilities to enter into an agreement on behalf of the City between Kurtz Brothers Central Ohio, LLC, and the Solid Waste Authority of Central Ohio for the design, construction and operation of an organic waste recovery and reuse system project to process municipal sewerage sludge, food waste, animal waste, yard waste and other organic material; and
WHEREAS, Kurtz Brothers Central Ohio, LLC have determined it advantageous to enter into a contract modification to provide the necessary funding and time for the additional beneficial alternative use options for sewerage sludge generated by the City’s two wastewater treatment plants; and
WHEREAS, the Solid Waste Authority of Central Ohio is no longer a party to the contract; and
WHEREAS, this modification will allow for the continuation of a fixed rate fee of $33.50 per wet ton of sewerage sludge processed for the duration of this contract (10 years + 5 year extension ending in 2025), the transfer of up to 25,000 wet tons of sewerage sludge per year at this rate to the organic waste recovery and reuse system, provides DOSD with an additional beneficial alternative use option for sewerage sludge via log grinding services, and increases the contracted amount for ash hauling per terms of the City and Kurtz’s negotiation over the remaining one-year of that provision of the contract; and
WHEREAS, the expenditure of $550,000.00, or so much thereof as may be needed, is hereby authorized in Fund 6100, Sanitary Sewer Operating Fund, in object class 03, Services, per the accounting codes in the attachment to this ordinance; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Sewerage and Drainage to, to authorize the Director of the Department of Public Utilities to modify and increase the contract for an organic waste recovery and reuse system project on behalf of the City with Kurtz Brothers Central Ohio, LLC; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Utilities is hereby authorized to modify and increase its contract with the Kurtz Brothers Central Ohio, LLC, 6055 C Westerville Road, PO Box 207, Westerville, OH 43081, by $550,000.00 for the design, construction and operation of an organic waste recovery and reuse system, for a total contract amount, including this modification, of $17,864,453.00.
SECTION 2. That this modification is in accordance with the relevant provisions of Chapter 329 of City Code.
SECTION 3. That the expenditure of $550,000.00, or so much thereof as may be needed, is hereby authorized in Fund 6100, Sewer Operating Sanitary Fund, in object class 03, Services, per the accounting codes in the attachment to this ordinance.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this Ordinance.
SECTION 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.