Explanation
This legislation authorizes the Director of Public Utilities to modify and extend the contract with Ohio Mulch Supply, Inc. to provide a biosolids beneficial reuse program, known as the Deep Row Hybrid Poplar (DRHP) program, for the Division of Sewerage and Drainage (DOSD). Ohio Mulch operates the DRHP program on its 1,012-acre New Lexington Tree Farm, LLC (NLTF) in Perry Township, Perry County, Ohio.
This contract originally authorized Ohio Mulch Supply, Inc. to remove a minimum of 27,000 and up to a maximum of 30,000 wet tons of biosolids annually from the Jackson Pike and Southerly Wastewater Treatment Plants (WWTPs) and reuse the biosolids in the DRHP program. Modification No. 3 adjusted the terms by increasing the rate of the first 0-30,000 wet tons removed to $40.00 per wet ton, and for volumes 30,001 or more wet tons to $35.00 per wet ton. Modification No. 9 further modified the terms, setting rates for removal of the first 0-30,000 wet tons at $46.97 per wet ton and volumes of 30,001 or more wet tons at $41.10 per wet ton. Modification No. 10 extends the contract for six months through June 30, 2023 under the same pricing terms.
All biosolids removed from the WWTPs under the program are Class B dewatered biosolids, which are produced from the stabilization of primary and secondary wastewater solids that have been digested to meet strict OEPA volatile solids and disease vector reduction requirements. Ohio Mulch utilizes the biosolids as a nitrogen source to grow hybrid poplar trees, which are later harvested for mulch. Additionally, the biosolids add valuable organic material to the old abandoned mine site that is now repurposed as the New Lexington Tree Farm. Ohio Mulch utilizes approximately 30 acres per year at the tree farm site, with trees harvested every 6 to 8 years.
The Director of Public Utilities received the Ohio Mulch, Inc. proposal on April 15, 2011 in response to a Request for Proposals for an innovative reuse of biosolids program. It was the only proposal received with the DRHP concept. Other proposals included mechanized dryer processes that would dry and pelletize biosolids for commercial wholesale and biosolids-cake land application proposals. The selection committee deemed Ohio Mulch’s DRHP the best fit for the DOSD Biosolids Program.
The terms for the contract award allowed for two continuation options after the first 30 months elapsed: one running for a total of five-years (including the 30 months prior) and another running for ten years (also including the initial 30 months). The latter option was chosen and has undergone a few revisions over its duration to account for unexpected transportation and operational costs. Rates were increased at various times, as mentioned above, and Ohio Mulch Supply, Inc. was required to construct a biosolids storage facility at the NLTF capable of storing 1,000 wet tons of biosolids by January 1, 2016.
This proposed modification #10 is for an unplanned additional half year of the contract in response to unforeseen issues in advertising new bids. It extends the contract through June 30, 2023 under the same pricing terms.
This ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code.
SUPPLIER:
Ohio Mulch Supply, Inc. | Federal EIN 31-1120540 | D365 Vendor #004715 | Expires 12/14/2023
Ohio Mulch 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: $0
$1,000,687.13 has been spent in 2022
$1,167,743.96 was spent in 2021
$1,141,866 was spent in 2020
Title
To authorize the Director of Public Utilities to modify and extend the contract with Ohio Mulch Supply, Inc. for services in connection with the Deep Row Hybrid Poplar Program for the Division of Sewerage and Drainage. ($0.00)
Body
WHEREAS, the Division of Sewerage and Drainage entered into a contract with Ohio Mulch Supply, Inc. to provide a biosolids beneficial reuse program, which is known as the Deep Row Hybrid Poplar (DRHP) program; and
WHEREAS, Ohio Mulch operates the DRHP program on its 1,012-acre New Lexington Tree Farm (NLTF) in Perry Township, Perry County, Ohio
WHEREAS, the Director of Public Utilities received proposals on April 15, 2011 in response to a Request for Proposals for an innovative reuse of biosolids program, and Ohio Mulch Supply, Inc., the only proposal with the DRHP concept, was deemed the best fit for DOSD’s beneficial reuse of biosolids needs and awarded the contract; and
WHEREAS, all biosolids removed from the Jackson Pike and Southerly Wastewater Treatment Plants under the program are Class B dewatered biosolids, which means they are produced from the stabilization of primary and secondary wastewater solids that have been digested to meet strict OEPA volatile solids and disease vector reduction requirements; and
WHEREAS, Ohio Mulch utilizes the biosolids as a nitrogen source to grow hybrid poplar trees, which are later harvested for mulch, and additionally, the biosolids add valuable organic material to the old abandoned mine site that is now repurposed as the New Lexington Tree Farm; and
WHEREAS, Ohio Mulch utilizes approximately 30 acres per year at the tree farm site with trees harvested every 6 to 8 years; and
WHEREAS, the original contract was for a period of six (6) months through July 1, 2013, and upon mutual agreement of the parties and approval by the Columbus City Council, could be extended for two (2) additional years on a year-to-year basis contingent on the availability of funds; and
WHEREAS, the terms for the contract award allowed for two continuation options after 30 months had elapsed: one running for a total of five-years (including the 30 months prior) and another running for ten years (also including the initial 30 months), and the latter option was chosen; and
WHEREAS, the current iteration of the contract has undergone a few revisions to account for unexpected transportation and operational costs, including increased rates and a requirement that Ohio Mulch construct a biosolids storage facility at the NLTF capable of storing 1,000 wet tons of biosolids by January 1, 2016; and
WHEREAS, the current pricing terms are $46.97/wet ton for annual volumes of 0-30,000 wet tons and $41.10/wet ton for annual volumes of 30,001 or more wet tons, and runs through January 1, 2023; and
WHEREAS, this proposed modification #10 is for an unplanned additional half year of the contract in response to unforeseen issues in advertising new bids and extends the contract through June 30, 2023 under the same price terms; and
WHEREAS, this ordinance is in accordance with the relevant provisions of Chapter 329 of City Code; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Sewerage and Drainage, to authorize the Director of Public Utilities to modify and extend the contract for the Deep Row Hybrid Poplar program with Ohio Mulch Supply, Inc.; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is hereby authorized to modify and extend contract EL013611 with Ohio Mulch Supply, Inc., 1600 Universal Road, Columbus, Ohio 43207, for the Deep Row Hybrid Poplar biosolids beneficial reuse program, in accordance with the terms and conditions on file in the office of the Division of Sewerage and Drainage. This modification extends the contract under the existing price terms. Total contract amount is $12,950,000.00.
SECTION 2. That this ordinance is in accordance with the relevant provisions of Chapter 329 of City Code.
SECTION 3. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.