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Home My WebLink About7-87 RESOLUTIONRESOLUTION ND. 7-87 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AMENDMENT NO. 2 TO THE CITY'S WASTEWATER TREATMENT PLANT MANAGEMENT AGREEMENT WITH CH2M HILL SOUTHEAST, INC. TO PROVIDE FOR MANAGEMENT SERVICES AT THE EXISTING PLANT PENDING COMPLETION OF THE NEW FACILITY. BE IT RESOLVED BY THE BOARD OF DIREICIORS OF THE CITY OF FAYEITEVILLE, ARKANSAS: That the Mayor and City Clerk are hereby authorized and directed to execute amendment No. 2 to the City's wastewater treatment plant agreement with CH2M Hill Southeast, Inc. to provide for management services at the existing plant pending completion of the new facility. A copy of the amendment authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 3 day of February APPROVED By Magor 1987. AMENDMENT NO. 2 TO THE AGREEMENT BETWEEN THE CITY OF FAYETTEVILLE AND CH2M HILL SOUTHEAST, INC. TO FURNISH OPERATIONS AND MANAGEMENT SERVICES FOR THE FAYETTEVILLE, ARKANSAS WATER POLLUTION CONTROL PLANT This Amendment is made and entered into this 3r -day of 1987 by and between CH2M HILL SOUTHEAST, INC. (hereinafter "Engineer"), whose address for any formal notice required by this Agreement is P 0. Box 230548, Montgomery, Alabama 36123-0548, and the CITY OF FAYETTEVILLE, ARKANSAS (hereinafter "Owner"), whose address for any formal notice required by this Agreement is 113 West Mountain Street, Fayetteville, Arkansas 72701. This is Amendment No. 2 to the Agreement dated February 27, 1984 between the Engineer and the Owner. WHEREAS, the Owner and the Engineer have entered into contracts under which the Engineer will design, supervise construction of improvements to, and operate the Fayetteville Water Pollution Control Plant to bring said plant into compliance with an Administrative Order issued by the United States Environmental Protection Agency. THEREFORE, the parties mutually agree to amend said agreement as stated herein. Article 2.0, DEFINITIONS, is amended by adding the following: 2.15 "Start up" is defined as the date that the contractor notifies the Engineer that the New Facility is substantially complete and ready for operation and the Engineer accepts the notification and notifies Operations Management International, Inc. (hereinafter "OMI"). OMI shall then notify the Owner that start up of the New Facility has occurred. • i EXHIF- A mgCOM/d.5404 - 1 • • 2.16 "Existing Facility" is defined as all unit processes and equipment at the location which are' fully functional and required for treatment of the raw sewage and for solids disposal as of January 1, 1987. 2.17 "New Facility" is defined as the liquid processes and equipment at the location which are fully functional .and required for treatment of the raw sewage as of the start-up date. The following paragraphs are added at the beginning of Article 5.1: 5.1 Within the treatment capacity and capability of the Existing Facility, commencing on January 1, 1987, the Engineer will provide required expertise to manage, operate, and maintain the facilities noted in Article 4 herein so that effluent discharged therefrom to receiving water meets the requirements of the Owner's ADPC&E permit number 1633 -WR -1 and U.S. EPA Administrative Order 6-83-756 dated February 16, 1984 (Appendix B). 'It is understood that the Engineer is assuming operation of the Existing Facility which is overloaded. As such, the Engineer will make best efforts to meet existing permit conditions, but shall not be liable if the permit requirements are not achieved. In addition, it is recognized that the construction contractor is behind schedule and the Engineer shall not be responsible for violations which may occur during the transition period from the Existing Facility to the New Facility caused by the contractor construction and interconnection tasks. Article 6.1, COMPENSATION, is replaced in its entirety by the following: 6.1 For services rendered by the Engineer, during the first 12 months after start up, the Owner shall pay to the Engineer the estimated annual actual cost of services performed under Article 5.0, plus a fee equivalent to sixty-three thousand two hundred seventy-three dollars ($63,273.00). Said fee and estimated costs shall be paid in twelve (12) equal monthly installments except as prorated for partial months. Payment shall be made in accordance with Article 7.1. mgDS3/d.302 - 2 Articles 6.4, 6.5, and 6.6 are replaced in their entireties by the following: 6.4 For services rendered by the Engineer for operating the Existing Facility commencing on January 1, 1987, the Owner shall pay to the Engineer monthly, one hundred thirty-one thousand three hundred dollars ($131,300.00) for the estimated monthly cost for services under this Agreement. Said monthly payment shall continue until the start up of the New Facilities Any partial month's cost of services shall be prorated based on the number of days that the level of services is provided compared to the number of calendar days of that month. Payment shall be made in accordance with Article 7.1. Invoiced amounts and actual costs shall be reconciled in accordance with Article 6.2. The Engineer estimates theannual actual cost of services under this Agreement for the New -Facility beginning with the start-up date to be two million one hundred thirty-two thousand eight hundred dollars ($2,132,800.00). Details of said estimated annual cost are shown in Exhibit G. After start up of the New Facility, the Engineer will provide the Owner with an estimate of actual cost annually on or before September 1st of each new contract year. 6.5 The fee payable to the Engineer under this Agreement shall be renegotiated annually three (3) months prior to the anniversary of the start-up date of the New Facility hereof. If the fee is not agreed upon by the anniversary date, the fee will be determined by the application of the Fee Adjustment Formula shown in Appendix F. 6.6 The Owner shall withhold three thousand dollars ($3,000.00) per month from the fee specified in Article 6.1 beginning at start up of the New Facility for partial months to be utilized as a bonus fund for performance relative to Article 8.3 of this Agreement. Following any bonus deductions made pursuant to said Article 8.3, the Owner shall pay to the Engineer any balance in said bonus fund within ten (10) days after the summary of laboratory results for a specific month is presented to the Owner. mgCOM/d.5404 - 3 6 • • Article 10, TERM and TERMINATION, is amended as follows: 10.1 This Agreement shall begin on January 1, 1987 and shall continue for two (2) years beyond the start-up date of the New Facility, and shall continue in accordance with Article 11 unless terminated as provided by this Article 10. The completion date shall be reflected in a certificate of completion executed by the Owner and the Engineer. Article 11.0, RENEWAL, is amended as follows: • 11: RENEWAL No Tess than one hundred eighty (180) days prior to the date of expiration, the Engineer and the Owner will meet for the express purpose of considering and agreeing on any renewal or extension of this Agreement beyond the term described in Article 10.1. All other terms and conditions remain in effect in accordance with the Agreement first referenced in this Amendment No. 2, and in Amendment No. 1 unless superceded by this Amendment No. 2. IN WITNESS THEREOF, the parties have caused this Amendment to be executed as of the date firstwritten above. Authorized Signature Marilyn °Johnsg Mayor • 4t4.44,- CITY t4.44 CITY OF FAYETTEVILLE, ARKANSAS Date mgCOM/d.5404 Authorized. Signature Clirff G. Thompson Vice President CH2M HILL SOUTHEAST, INC. Date 44 4 - /A-2