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HomeMy WebLinkAbout21-99 RESOLUTIONRESOLUTION NO 21-99 A RESOLUTION APPROVING AMENDMENT NO. 4 TO THE OMI CONTRACT FOR THE OPERATION OF THE PAUL NOLAND TREATMENT PLANT, AND APPROVAL OF A BUDGET ADJUSTMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS• Section 1 That the City Council hereby approves Amendment No. 4 to the contract with OMI for the operation of the Paul Noland Treatment Plant in the amount of $3,632,992 for 1999; and authorizes the Mayor and City Clerk to execute said contract amendment. A copy of the contract amendment is attached hereto marked Exhibit "A" and made a part hereof. Section 2 The City Council hereby approves a budget adjustment in the amount of $55,941 increasing PCP Operation Contract, Acct. No. 5400 5100 5328 00 decreasing Use of Fund Balance, Acct. No. 5400 0940 4999 99. A copy of the budget adjustment is attached and made a part hereof. PASSED AND APPROVED this T day of February , 1999. ATTEST im,) /j j 'Heather Woodruff, City Clerk r « 1 r • . j/' . J��i� APPROVE 9 By. Fred Hanna, Mayor Appendix 1 COST DETAIL The proposed annual estimated costs for 1999 were calculated as follows: Direct labor and benefits Labor overhead @ 35% Electricity Electric overhead @ 5% All other direct costs Other direct costs overhead 10% Sub -Total Fixed Fee Total Operating Budget SCADA Upgrade - Phase 1 Total 1999 Budget Projected 1998 S1,267,408 S 443,593 $ 579,956 $ 28,998 $ 779,688 $ 77.969 $3,177,612 $ 82.666 $3,260,278 Budgeted 1998 51,290,521 $ 451,682 $ 540,000 $ 27,000 $ 799,257 $ 79.926 $3,188,386 $ 82.665 $3,271,051 The following are some of the major reasons for cost circumstances: Proposed 1999 $1,329,586 $ 465,355 S 600,000 S 30,000 S 793,233 5 79.323 S3,297,497 5 85.495 S3,382,992 S 250,000 $3,632,992 1. Projected increase in electrical usage and demand due to increased loading, and the requirement to begin part-time utilization of the second aeration basin. Continued increase in the cost of providing skilled professional labor in Northwest Arkansas' highly competitive job market. ‘OMIDN wPW?DATfl ptw.ar»r.rtue.,n.1.- 01/19/99 Appendix K SCADA UPGRADE - PHASE 1 - SCOPE OF WORK The following SCADA upgrade tasks will be performed by OMI during the calendar year 1999. Replacement of 41 (now discontinued) existing remote terminal units with OMI - developed remote terminal units at each SCADA remote location, including all existing SCADA-equipped wastewater lift stations, water tanks, and water pump/booster stations. (This project specifically excludes costs associated with installations of new SCADA equipment at locations not presently so equipped. This project also specifically excludes replacement of the existing Motorola radios associated with each remote terminal unit) 2. Replacement of existing human/machine interface software with Y2K compliant `Lookout' v3.8 by National Instruments. 3. Replacement of two remaining existing central computers (out of the original four) with five updated and modernized versions for improved access and redundancy. These computers will be IBM compatible with minimum 350 MHz processors. 4. Upgrade of systemic remote control and monitoring capability with the replacement of existing mobile computer and addition of three mobile computers and the implementation of point-to-point protocol (PPP) dial-up networking. v4)MIDNVP.7 PDA TASAp.ec 1 fli)allnill, tibr 01/19/99 OFYL- I 4Vz2./1 1 oTE(MM/°°"" AI:11l I. CERTIFICATE OF INSURANCE 90 2 917 • PRODUCER J&H MARSH & McLENNAN 1225 17TH STREET SUITE 2100 DENVER CO 80202 THIS CERTIFICATE S ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POUCIES BELOW. COMPANIES AFFORDING COVERAGE ATTN PAULA DELEON 15114-01234 OMI3M OMI COMPANY A ZURICH AMERICAN INSURANCE COMPANY INSURED OPERATIONS MANAGEMENT COMPANY r B NATIONAL UNION FIRE INSURANCE COMPANY ---- INTERNATIONAL, INC. 6060 SOUTH WILLOW DRIVE COMPANY GREENWOOD VILLAGE, CO 80111-5124 _ C COMPANY D COVERAGES _. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS CO I TYPE OF INSURANCE LTR POLICY NUMBER POLICY EFFECTIVE DATE (MM/DONG POLICY EXPIRATION DATE (MM/DDNYI LIMITS GENERAL LIABILITY GENERAL AGGREGATE 5 2,000,000 A X COMMERciAL GENERAL LIABILITY GL08378563-04 05/01/99 05/01/00 PRCOUCTS • COMP/OP AGG $ 2.000.000 CLAMS MADE X ocr.un PERSONAL & ADV INJURY 5 850.000 OWNER S& CONTRACTORS PROT EACHOCCURRENCE S 850.000 1 X $150,000 SIR I FIRE DAMAGE (Any one fire) S 850.000 MED EXP (Any one person) S A AUTOMOBILE LIABILITY _.. ANY BAP8378516-04 (AOS) 05/01/99 05/01/00 COMBINED SINGLE OMIT $ 1.000.000 ALL OWNED AUTOS TAP8378560-04 (TX) 05/01/99 05/01/00 BCOLYINJURY -- SCHEDULED AUTOS BAP8378561-04 (VA) 05/01/99 05/01/00 (P0f p419OA) S HIRED AUTOS MAP8378562-04 (MA) 05/01/99 05/01/00 BCOLYINJURY NON -OWNED AUTOS (Pei accident) 5 PROPERTY DAMAGE 5 RAGE LULBIuTY AU TO ONLY • EA ACCIDENT S ANY AUTO OTHER THAN AUTO ONLY. EACH ACCIDENT 5 AGGREGATE 5 B EXCESS LIABILITY EACH OCCURRENCE 5 3.000 000 X 1 UMBRELLA FORM 13E7011399 05/01/99 05/01/00 AGGREGA-E 5 3,000,000 OTHER THAN UMBRELLA FORM S WORKERS COMPENSATION AND X I STATLITOFry LIMITS A EMPLOYERs'LIABIUTY WC8378566-05 05/01/99 05/01/00 EACH ACCIDENT 1$ 1,000000 A THE PFNJPRETOR/ PARTNERS/EXECUTIVEOFFICERS X I INCL WC8378565-04 05/01/99 05/01/00 DISEASE • POLICY OMIT $ 1,000,000 ARE. E%CL DISEASE • EACH EMPLOYEE S 1.000.000 OTHER DESCRIPTION OF OPERATIONS/LOCATIOMSNEHICLES/SPECIAL ITEMS (OMITS MAY BE SUBJECT TO RETENTIONS) OPERATION, MAINTENANCE AND MANAGEMENT SERVICES FOR THE CITY OF FAYETTEVILLE. CERTIFICATE HOLDER NAMED AS ADDITIONAL INSURED AS THEIR INTEREST MAY APPEAR AS RESPECTS AUTOMOBILE LIABILITY, UMBRELLA LIABILITY AND AS PER BLANKET ENDORSEMENT TO GENERAL LIABILITY POLICY. CERTIFICATEHOLDER- - - - CITY OF FAYETTEVILLE ATTN PEGGY BATES 113 WEST MOUNTAIN STREET CANCELLATION - - - - SHOULD ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEFORE THE EXWILL EXPIRATION DATE THEREOF, THE ISSUING COMPANY ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, FAYETTEVILLE AK 72701 BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBUGATION OR LIABILITY OF ANY KIND UPON COMPANY. ITS AGENTS OR REPRESENTATIVES. ACORD 2S-S'(3I83).. -.. .; - AUTHORIZED REPRESENTA _ . AQa D CORPORATION _1983. City of Fayetteville, Arkansas Budget Adjustment Form EXHIBIT 13 Budget Year 1999 Department: Public Works Division: Wastewater Treatment Plant Program: Date Requested 01/22/99 Adjustment # Project or Item Requested: Additional funding is requested for the wastewater treatment plant operations contract. Project or Item Deleted: None. Use of fund balance is proposed for this adjustment. Justification of this Increase: The additional funding is requested due to projected increases in utilities associated with operating a second aeration basin. Justification of this Decrease: Sufficient cash & investments exist to fund this request and planned expenditures. Increase Expen e (Decrease Revenue) Account Name Amount Account Number Project Number PCP Operation Contract 55,941 5400 5100 5328 00 Decrease Expense (Increase Revenue) i Account Name Amount Account Numher Protect Numher Use of Fund Balance 55,941 5400 0940 4999 99 Approval Signatures Requested By Budge Coordinator )ate Dan' Date 25-4+kigoj Aduhin. Serylcas Directo Date Mayor r - ale Budget Office Use Only Type: A B C Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log E Blue Copy: Budget h Research / Yellow Copp: Requeste C:UPP\99BUDGE7\RUDGTAIXAOMI RA.' FAYETTEVILLE THE CITY Of FAYETTEVILLE. ARKANSAS DEPARTMENTAL CORRESPONDENCE 6L - To: Don Bunn, Assistant Public Works Director From: Heather Woodruff, City Clerk Date: February 10, 1999 Attached are copies of the resolution, budget adjustment, and contract with OMI for your records. I am also returning one original contract for you to distribute. The originals will be microfilmed and filed with the City Clerk. cc. File Budget Internal Auditor EXHIBIT A AMENDMENT NO. 4 TO THE AGREEMENT FOR OPERATIONS, MAINTENANCE, AND MANAGEMENT SERVICES FOR THE CITY OF FAYETTEVILLE, ARKANSAS WASTEWATER TREATMENT PLANT THIS AMENDMENT, entered into this day of Fo e,,zz,/ , 1999, by and between the City of Fayetteville, Arkansas (hereinafter "Owner"), whose address for any formal notice is 113 West Mountain Street, Fayetteville, Arkansas 72701 and Operations Management International, Inc. (hereinafter "OMI"), with offices at 6060 South Willow Drive, Suite 200, Greenwood Village, Colorado 80111-5142 is made and entered into for purposes of amending certain provisions of the "Agreement for Operations, Maintenance, and Management Services for the City of Fayetteville's Wastewater Treatment Plant," dated August 16, 1994 (the "Agreement") to prevent the facilities covered by the Agreement from being deemed to be used in the trade or business of OMI pursuant to Section 141 (b) of the Internal Revenue Code of 1986, as amended. This is Amendment No. 4 to the Agreement dated the 16th day of August 1994, between Owner and OMI. NOW THEREFORE, Owner and OMI agree to amend the Agreement as follows: I . Article 4.1 is hereby deleted in its entirety and replaced with the following Article 4.1: 4.1 For services rendered during the fifth year of this agreement owner shall pay to OMI the actual cost of services performed plus a management fee of Eighty Five Thousand Four Hundred and Ninety Five Dollars (S85,495). Said fee and estimated cost (base fee) shall be paid in twelve (12) equal monthly installments. The management fee for subsequent years will be determined proportional to the increase in estimated cost. Article 4.3 is hereby deleted in its entirety and replaced with the following Article 4.3: 4.3 OMI estimates that cost for services for calendar year 1999 shall be Three Million Six Hundred Thirty Two Thousand, Nine Hundred and Ninety Two Dollars (S3,632,992) annually. Details of said cost are shown in Appendix J. The base fee shall be negotiated each year in September, beginning in 1999 for calendar year 2000. Should Owners and OMI fail to agree, the base fee will be determined by the application of the base fee adjustment formula shown in Appendix F. Should the actual expenditures exceed estimated expenditures by more than Twenty Thousand Dollars (S20,000), in any year of this agreement, specific approval will be obtained from the owner. %UMW%\ N'LWIOAIAMrnm.e'rJn.aallit 01/19/99 Appendix J is hereby deleted in its entirety and replaced with the attached Appendix .1. Appendix K is hereby addcd to the Agreement. All other terms and conditions remain in effect in accordance with the Agreement referenced in this Amendment. Both parties indicate their approval of this Amendment to the Agreement by their signatures below as of the date shown above. Authorized Signature: Authorized Signature. 2,,,Anac() Lk r-. Bernard A. Miller Title: Chief Operating Officer Fre Hanna, Jr. Title: Mayor OPERATIONS MANAGEMENT CITY OF FAYETTEVILLE INTERNATIONAL, INC. Date: 1 S 7H-1.4 1 ¶ 5 Date w 44 a. 01/19/99 • • XXX AGENDA REQUEST, FROM: Don Bunn Name MICRO" AGENDA REQUEST FORM 2s 2/99 MED City Council meeting of February Public Works Admin Public Works Division Department ACTION REQUIRED: A resolution authorizing the execution of Amendment Not$' to our contact with OMI for the operation of the Paul Noland Treatment Plant, and the approval of a budget adjustment. The amendment provides for a total of $3,632,992 for operations services during 1999. COST TO CITY: $ 250,000.00 $ 3,382,992.00 Cost -This Request 5400-5700-5315-00 5400-5100-5328-00 Account Number 99033 N/A Project Number $ 250,000.00 $ 3,327,051.00 Category/Project Budget Funds Used To Date Water/Sewer Imp'v'ts PCP Operations Category/Project Name Program Name 250,000.00 $ 3,3271051.00 Water/Sewer Fund Funds Remaining Fund Category BUDGETT//CCOONNTTRACT REVIEW: Budget Coordinator Acco C ty Atto ney l V m Purchasing Officer XX Budgeted Date /-X1-017 Date Date 1-a 5.99 Date em ^ ACX Budget Adj. Attached Administrative Services Director ADA Coo Date 1111411 In ernal Auditor Date STAFF RECOMMENDATION: It is thed recommendation of the Staff that the Council approve Amendment No. P in the amount of $3, 632,992.00 and a budget adjustment. �j Public rks Director a`'`te 1- partment Director Admin i. 1. uutii.. ervices eirector May r 1-22-99 Date !—Zs-ff Date Date //u/ft Date Cross Reference New Item: Yes No Prev Ord/Res 9: Orig Contract Date: Aug 16, 1994 FAYETTEVILLE THE CITY OF FAYETTEVILLE. ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Fayetteville City Council From: Donald R. Bunn, Assistant Public Works Director Thru• Charles Venable, Public Works Director Mayor Fred Hanna Subject: Amendment No. 4 Agreement for Operation Paul Noland Wastewater Treatment Plant January 20, 1999 Attached for your review and approval is Amendment No. 4 to our contract with Operations Management International, Inc. for the operation of our Noland Treatment Plant and Sewer Pump Stations. The original agreement was executed on August 16, 1994. The purposes of the Amendment are to: 1. Provide for payment to OMI for services during the 1999 Calendar Year. 2. To provide for negotiation of'costs and fees for the year 2000. 3. Provide for services in connection with the upgrading of the City's SCADA (Supervisory Control and Data Acquisition) network. Item No. 1: OMI has estimated the cost of providing operations service during the 1999 calendar year is 53,297,497.00. They arc also proposing a management fee of S85,495.00 for a Total Operating Budget of 3,382,992.00. This is a 3.42 percent increase over 1998. The additional cost is due mainly to an anticipated increases labor costs and an increase in power costs ($60,000) due to the possibility of having to operate a second aeration basin for extended periods of time during the year. The second aeration basin would be in response to increased loading at the plant. Item No. 2: This is a sentence which provides for the negotiation of fees and expenses for 2000 to begin in September of 1999. It also provides for a base fee should the City and OMI fail to reach an agreement. Item No. 3: The City of Fayetteville has budgeted 5250,000 in the 1999 Capital Improvement Program for partial replacement of the City's SCADA system. The SCADA system consists of the remote sensing devices at all of our sewage pump stations and water pump stations. Since OMI operates and maintains our pump stations and has the technical capability to do the work, we recommend City Council authorize them to do the replacements and upgrades. The cost of the SCADA upgrade will be paid directly from the Capital Improvement Budget. Another 3600,000 is shown in the Capital Improvement Program in 2000 and 2001 to complete the upgrading project. The total cost of Amendment No. 4 is: Plant Operation Cost Fixed Fee Total Operations Cost SCADA Upgrade Amendment Total $ 3,297,497.00 85,495.00 S 3,382,992.00 250,000.00 $ 3,632,992.00 The amount budgeted for operation of the treatment plant is 3 3,327,051.00. Therefore, a budget adjustment of 555,941.00 will be required to cover the additional estimated expense. This amount can be directly attributable to the possible operation of the second aeration basin (power costs). It is the recommendation of the Staff that Amendment No. 4 be approved along with a budget adjustment to move S55,941 00 from Water and Sewer Fund Balance to the Pollution Control Plant Operations Budget.. AMENDMENT N0. 4 TO TIIE AGREEMENT FOR OPERATIONS, MAINTENANCE, AND MANAGEMENT SERVICES FOR TIIE CITY OF FAYETTEVILLE, ARKANSAS WASTEWATER TREATMENT PLANT TIIIS AMENDMENT, entered into this day of , 1999, by and between the City of Fayetteville, Arkansas (hereinafter "Owner"), whose address for any formal notice is 113 W. Mountain St, Fayetteville, Arkansas 72701 and Operations Management International, Inc., (hereinafter "OMI") with offices at 6060 South Willow Drive, Suite 200, Grccnwood Village, Colorado 801 1 1-5142 is made and entered into for purposes of amending certain provisions of the "Agreement for Operations, Maintenance, and Management Services for the City of Fayetteville's Wastewater Treatment Plant," dated August 16, 1994 (thc "Agreement") to prevent thc facilities covered by the Agreement from being dcemcd to be used in the trade or business of OMI pursuant to Section 141 (b) of the Internal Revenue Code of 1986, as amended. This is Amendment No. 4 to the Agreement dated the 1 Gth day of August, 1994, bctwcen Owner and OMI. NOW THEREFORE, Owner and OMI agree to amend the Agreement as follows: 1. Article 4.1 is hereby deleted in its entirety and replaced with the following Article 4.1: 4.1 For services rendered during the fifth year of this agreement owner shall pay to OMI the actual cost of services performed plus a management fee of Eighty Five Thousand Four Hundred and Ninety Five Dollars ($85,495). Said fee and estimated cost (base fee) shall be paid in twelve (12) equal monthly installments. The management fee for subsequent years will be determined proportional to thc increase in estimated cost. 2. Article 4.3 is hereby deleted in its entirety and replaced with the following Article 4.3: 4.3 OMI estimates that cost for services for calendar year 1999 shall be Three Million Six Hundred Thirty Two Thousand, Nine Hundred and Ninety Two Dollars ($3,632,992) annually. Details of said cost are shown in Appendix J. The base fee shall be negotiated each year in September, beginning in 1999 for calendar year 2000. Should Owners and OMI fail to agree, the base fee will be determined by the application of the base fee adjustment formula shown in Appendix F. Should thc actual expenditures exceed estimated expenditures by more than TwLnty Thousand Dollars ($20,000), in any year of this agreement, specific approval will be obtained from the owner. Appendix J is hereby deleted in its entirety and replaced with the attached Appendix J. S 1Wr dLy.. ... ,'W rI LbN,. 444.64.41444.41.111•• Mt a 14.4: 01/14/99 4. Appendix K is hereby added to the Agreement. All other terms and conditions remain in effect in accordance with the Agreement referenced in this Amendment. Both parties indicate their approval of this Amendment to the Agreement by their signatures below as of the date shown above. Authorized Signature: Authorized Signature: Bernard A. Miller Title: Chief Operating Officer OPERATIONS MANAGEMENT INTERNATIONAL, INC. Date: (9 oAtiNi 1555 Fred Hanna, Jr. Title: Mayor CITY OF FAYETTEVILLE Datc: 01/19/99 Appendix J COST DETAIL The proposed annual estimated costs for 1999 were calculated as follows: Direct labor and benefits Labor overhead @ 35% Electricity Electric overhead @ 5% All other direct costs Other direct costs overhead 10% Sub -Total Fixed Fee Total Operating Budget SCADA Upgrade - Phase 1 Total 1999 Budget Projected 1998 $1,267,408 $ 443,593 $ 579,956 $ 28,998 $ 779,688 $ 77 969 $3,177,612 $ 82,666 $3,260,278 Budgeted 1998 $1,290,521 $ 451,682 $ 540,000 $ 27,000 $ 799,257 $ 79 926 $3,188,386 $ 82,665 $3,271,051 Proposed 1999 $1,329,586 $ 465,355 $ 600,000 $ 30,000 $ 793,233 $ 79 323 S3,297,497 $ 85,495 $3,382,992 $ 250,000 $3,632,992 The following are some of the major reasons for cost circumstances: I. Projected increase in electrical usage and demand due to increased loading, and the requirement to begin part-time utilization of the second aeration basin. 2. Continued increase in the cost of providing skilled professional labor in Northwest Arkansas' highly competitive job market. K w'wr.Kws s. W lghuU it ••••••• & V )0••• die a y., 01/14/99 • • Appendix K SCADA UPGRADE - PHASE 1 - SCOPE OF WORK The following SCADA upgrade tasks will be performed by OMI during the calendar year 1999. I. Replacement of 41 (now discontinued) cxisting rcmotc tcrminal units with OMI -developed rcmotc tcrminal units at cach SCADA remote location, including all cxisting SCADA- equipped wastewater lift stations, watcr tanks, and water pump/booster stations. (This project specifically cxcludcs costs associatcd with installations of new SCADA equipment at locations not presently so equipped. This project also spccifically excludes replacement of thc existing Motorola radios associatcd with each remote tcrminal unit) 2. Replacement of existing human/machine interface software with Y2K compliant 'Lookout' v3.8 by National Instruments. 3. Replacement of two remaining existing ccntral computers (out of the original four) with five updated and modernized versions for improved access and redundancy. These computers will be IBM compatible with minimum 350 MHz processors. 4. Upgrade of systemic remote control and monitoring capability with thc replacement of existing mobile computer and addition of three mobile computers and the implementation of point-to-point protocol (PPP) dial-up networking. [ \wus•Irywr+pvt0.iMpw...-14V„mo.n, (4 01/14/99 • • City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 1999 Department: Public Works Division: Wastewater Treatment Plant Program: Date Requested 01/22/99 Adjustment 11 Project or Item Requested: Additional funding is requested for the wastewater treatment plant operations contract. Project or Item Deleted: None. Use of fund balance is proposed for this adjustment. Justification of this Increase: The additional funding is requested due to projected increases in utilities associated with operating a second aeration basin. Justification of this Decrease: Sufficient cash & investments exist to fund this request and planned expenditures. Increase Expen e (Decrease Revenue) Account Name Amount Account Number Project Number PCP Operation Contract 55,941 5400 5100 5328 00 Decrease Expense (Increase Revenue) Account Name Amount Account Number _ Project Number Use of Fund Balance 55,941 5400 0940 4999 99 Approval Signatures Requested By 41/4 Budge Coordinator Ade tin. Services Director /bate Date Date Mayor Date Budget Office Use Only Type: A B C Date of Approval Posted to General Ledger Posted to Project Accounting Entered in Category Log Woe Cops: BiuI, cr Research / fellow Culp: Requester C':V1!'1'091l UDGE7\BUDGTADJ'OAII liA.'