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Home My WebLink About08-00 RESOLUTIONt 011 • at RESOLUTION NO 8-00 MICROFILMED A RESOLUTION APPROVING AMENDMENT NO. 5 TO THE OMI AGREEMENT FOR THE OPERATIONS, MAINTENANCE AND MANAGEMENT SERVICES OF THE CITY OF FAYETTEVILLE WASTEWATER TREATMENT PLANT AT A TOTAL COST OF $3,715,901, INCLUSIVE OF A MANAGEMENT FEE OF $88,854. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approve Amendment No. 5 to the OMI Agreement for Operations, Maintenance and Management Services of the Fayetteville Wastewater Treatment Plant at a total cost of $3,715,901, inclusive of a management fee of $88,854; and authorizes the Mayor and City Clerk to execute said agreement amendment. A copy of the amendment is attached hereto marked Exhibit A and made a part hereof. PASSED AND APPROVED this 18`" day of January , 2000. APPROVED, By. //////� Fred Hanna, Mayor ATTEST: By:4..%zrrdY l "Heather Woodruff, City C e NAME OF FILE: CROSS REFERENCE: Date Contents of File NX -Do oi: igek iazizzadi (14 a.��u�c . d � ez'4/2 Kizzad...dna l�2/00 Se • , &s, g-oo • • • • AMENDMENT NO. 5 TO THE AGREEMENT FOR OPERATIONS, MAINTENANCE, AND MANAGEMENT SERVICES FOR THE CITY OF FAYETTEVILLE, ARKANSAS WASTEWATER TREATMENT PLANT THIS AMENDMENT, entered into this) d day of fe eu4', 2000, 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, 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. 5 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: 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 sixth year of this agreement owner shall pay to OMI the actual cost of services per formed plus a management fee of Eighty Eight Thousand Eight Hundred and Fifty Four Dollars ($88,854). 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. 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 2000 shall be Three Million Seven Hundred Fifteen Thousand, Nine Hundred and One Dollars ($3,715,901) annually. Details of said cost are shown in Appendix J. The base fee shall be negotiated each year in September, beginning in 2000 for calendar year 2001. 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 ($20,000), in any year of this agreement, specific approval will be obtained from the owner. „0 MI DNVMIUSERIIATAWmdT,c ling WPDauUyttmcMPFlptllet911e Ami$ doc -1- 2/2/00 N •0 3. Appendix B is hereby deleted in its entirety and replaced with the attached Appendix B 4. Appendix J is hereby deleted in its entirety and replaced with the attached Appendix J. 5. Appendix K is hereby deleted in its entirety and replaced with the attached Appendix K. 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: CC72 Bernar47(. Miller Title: Chief Operating Officer OPERATIONS MANAGEMENT INTERNATIONAL, INC. Authorized Signature. Fred Hanna, Jr. Title: Mayor CITY OF FAYETTEVILLE Date: 2 rag 09" Date: 9 F6@ aooc \ OMI DNVM105ERDATA1WordPmasing%WPDms Agntnxni1REnyc1levlle Am,5.Jx 2/2/00 gE5,8-00 KES. S-00 1• Appendix B LOCATION OF PROJECT B.1 OMI agrees to provide the services necessary for the management, operation and maintenance of the following: • a) All equipment, vehicles, grounds, and facilities now existing within the present property boundaries of or being used to operate the Owner's Wastewater Treatment Plant located at: 1500 North Fox Hunter Road Fayetteville, Arkansas b) All equipment, grounds and facilities now existing within the present property boundaries of pump stations described as follows: WW1 978 East Zion Road WW2 4938 Mission Boulevard WW3 Salem Road North of Mt. Comfort Road WW4 691 West Poplar WW5 3896 North Gregg WW6 3021 North Old Wire Road WW7 2034 North Country Road # 877 WW8 729 West North Street WW9 1336 North Porter W W 10 716 Futrall Drive WW11 4412 West 6th Street WW12 398 North Double Springs Road WWI3 878 South Stonebridge Road W W 14 1820 South Armstrong W W 15 203 East 29'h Circle W W 16 3917 South McCollum Road WW17 4394 South School W W 18 202 North Sandy (Greenland) WW19 933 South Mally Wagon Road W W20 3212 North Highway 112 WW21 1687 South Happy Hollow Road WW22 630 North Double Springs Road WW23 Masters Addition Country Club WW24 Willow West (Farmington) WW25 4071 South Mcollum (Airport East) WW26 74 South Kestrel (Sequoyah Preserve) WW27 1031 River Meadows Drive (Stonebridge Meadows) \\OMIDNVNOUSERDATMWordPromsiylW PDadUpttmcm4Vo,mwIIIc Amxa doe 2/2/00 WW28 1603 Plantation Avenue (Heritage Village) 4'ss. St 00 c) All equipment, vehicles, grounds and facilities now existing within the present property boundaries of or being used to operate the Owner's Sludge Management Site located east of the wastewater facility across the White River. d) The potable water SCADA system at the following locations: WI 215 West 24ih Street W2 844 North Crossover Road W3 4938 East Mission Boulevard W4 1016 East Ash Street W5 707 East Rogers Drive W6 456 East Baxter Lane W7 707 East Rogers Drive W8 113 North Sang W9 1170 East South Skyline W10 1044 East Township Road W11 Mt. Kessler W12 Highway 45 Valve Station W 13 Fire Tower Avenue (Goshen) W14 Fire Tower Avenue (Goshen) W15 Co. Road # 55 (Round Mountain) W16 Co. Road # 4343 (Benson Mountain) W17 Gulley Road Tank W18 Gulley Road Station 1475 Cato Springs Road 110MIDNMTIISERDATMWwdPmc sIrWPD3m1Agmnma\FlFMtiiwllle A^O5EOC -4- Pump Station Pump Station Pump Station Pump Station Pump Station Ground Storage Tank Ground Storage Tank Elevated Storage Tank Elevated Storage Tank Elevated Storage Tank Ground Storage Tank Pressure -reducing Valve Ground Storage Tank Pump Station Ground Storage Tank Ground Storage Tank Elevated Storage Tank Pump Station Water & Sewer Ops Center 2/2/00 e• Appendix J COST DETAIL a The proposed annual estimated costs for 2000 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 2000 Budget Projected 1999 $1,305,829 $ 457,040 $ 618,712 $ 30,936 $ 787,878 $ 78,788 $3,279,183 $ 85,495 $3,364,678 $ 212,500 $3,577,178 The following are the major circumstances affecting cost: Budgeted 1999 $1,329,586 $ 465,355 $ 600,000 $ 30,000 $ 793,233 $ 79,323 $3,297,497 $ 85,495 $3,382,992 $ 250,000 $3,632,992 4s, 8-oo Proposed 2000 $1,381,183 $ 483,414 $ 715,000 $ 37,750 $ 737,909 $ 73,791 $3,427,047 $ 88,854 $3,515,901 (Phase 11) $ 200,000 $3,715,901 1. Projected increase in electrical usage and demand due to increased loading, the use of the new ultra -violet disinfection system, and the requirement for 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. 3. Expansion of sewer lift -station maintenance responsibilities to include six (6) additional stations and SCADA at eight (8) additional potable water sites as noted in Appendix B. \W MIDNVM\USERDATA\W ONNaxainR\WPDIIMAgI¢mmMA,woill< AmIS,Ux -5- 2/2/00 Appendix K SCADA UPGRADE - PHASE 2 - SCOPE OF WORK The following SCADA upgrade tasks will be performed by OMI during the calendar year 2000. /as &oo- 1. Upgrade of all existing ultrasonic level measurement devices with new units capable of being calibrated without entering the wetwell area, as well as installing new devices at the four additional sewer lift stations to receive SCADA control/monitoring during this phase. 2. Purchase and installation of SCADA monitoring equipment at 15 remote valve sites in the water distribution system, specific sites to be determined by the City, to be compatible with the OMI -developed SCADA system. Note that this item specifically excludes responsibility for providing the actual sensing or control devices at these locations. 3. Purchase and installation of SCADA control/monitoring equipment at the four sewer lift stations not previously so equipped, to be compatible with OMI -developed SCADA system. 110NIDNVNIIDSERDATA1Word unah6AWPDatntkracmeninNyetievIllt AmM,yx -6- 2/2/00 • AGENDA REQUEST FORM Council Meeting of January 18,2000 Mayor's Approval FROM Don Bunn Public Works Admin Public Works Name Division Department ACTION REQUIRED Approval of Amendment No. 5 to the OMI Contract for operation and management services, Fayetteville Wastewater Treatment Plant at a total cost of $3,715,901.00, inclusive of a management fee of $88,854.00 and the SCADA upgrade cost of $200,000.00. COST TO CITY 200,000.00 $ 3,515,901.00 Cost of this Request 5400 5100 5328 00 5400 5700 5315 00 (SCADA) Account Number 300,000.00 $ 3,519,733.00 Category/Project Budget (Operations 9903.-1 (SCADA) Project Number BUDGET/CONTRACT REVIEW N4 Budget Coordinator Accoun/ g' naaper City. por P�%7n Purchasing Officer STAFF RECOMMENDATION It i approve Amendment No. 5 t Treatment Plant for 2000, mant fee of $8„ 854 Contract) -0- Funds Used to Date $ 3 819 733.00 Funds Remaining XX Budgeted Item Water/Sewer Imp'ts Wastewater Treatment Category/Project Name Program Name Water and Sewer Fund Category Budget Add. Attached Date Admin Services Director Date /-7-00 Date ADA Coordinator Date t 7-Oo Date Internal Auditor Date 1-1-00 Date s the recommendation of the Staff that the Council o the OMI Contract for operation of the Wastewater at a cost of $3,715,901.00, inclusive of a .00 and the SCADA upgrade cost of $200,000.00. rks Director C/- 07-00 Date /-7_00 Date Date /741 Date Cross Reference New Item: Yes No Prev Ord/Res # Orig. Contract Orig. Contract 94-94 Date 8-16-94 • • COMMENT SHEET Project: Amendment No. 5, OMI Operations and Management Agreement Contractor: Operations Management International (OMI) Notes to Reviewers. None FAYETTEVILI,E THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE • January 5, 2000 To: Fayetteville City Council From: Don Bunn, Assistant Public Works Director.�i�3�--------_ Thru: Charles Venable, Public Works Director Fred Hanna, Mayor Subject: Amendment No. 5 OMI Contract for Wastewater Plant Services Attached for your review and approval is a proposed Amendment No. 5 to the existing OMI contract for operations and management services at the Noland Wastewater Treatment Plant. The amendment covers the estimated cost of providing operation and management of the wastewater treatment plant (including sewage pump stations and SCADA maintenance) and the upgrade of the SCADA system. The breakdown of the costs and a comparison of budgeted amounts are: Attached is a copy of the proposed Amendment No. 5. The purpose of the amendment is to set the estimated cost of services and the fixed fee for 2000. The cost for this year breaks down as follows: Item Budgeted Amount Requested Amount Operations/Management Estimated Cost Fixed Fee Total, Operations and Management SCADA Upgrade TOTALS $ 3,519,733.00 300,000.00 $ 3,819,733.00 $ 3,427,047.00 88,854.00 3,515,901.00 200,000.00 $ 3,715,901.00 The increase in the operations and management estimated cost from 1999 to 2000 is 3.98 percent. • • The reasons given for the increase are: 1. Projected increases in power costs associated with the new UV disinfection system and possible use of the second aeration basin. 2. The addition of six (6) sewage pump stations during 1999. 3. Expansion of the SCADA system to six additional potable water sites. 4. Increased labor costs. The SCADA upgrade is a continuation of the program started in 1999 to replace our outdated SCADA system. The $200,000.00 given in the Amendment for that purpose will come from the capital portion of the 2000 Water and Sewer Capital Budget. The Water and Sewer Committee is scheduled to meet immediately following the Council Agenda Meeting on January 11, 2000, and will have a recommendation for the Council on this matter. It is the recommendation of the Staff that the Council approve the proposed Amendment No. 5. • • AGENDA REQUEST FORM Council Meeting of January 18,2000 Mayor's Approval FROM Don Bunn Public Works Admin Public Works Name Division Department ACTION REQUIRED Approval of Amendment No. 5 to the OMI Contract for operation and management services, Fayetteville Wastewater Treatment Plant at a total cost of $3,715,901.00, inclusive of a management fee of $88,854.00. COST TO CITY 200,000.00 $ 3,515,901.00 Cost of this Request Account Number Project Number BUDGET/CONTRACT REVIEW 300,000.00 $ 3,519,733.00 Category/Project Budget -0- Funds Used to Date $ 3,819,733.00 Funds Remaining XX Budgeted Item Budget Coordinator Date Accounting Manager Date City Attorney Date Purchasing Officer Date STAFF RECOMMENDATION It is the approve Amendment No. 5 to the Treatment Plant for 2000, at a ma :gement few of $88,854.00 Water/Sewer Imp'ts Wastewater Treatment Category/Project Name Program Name Water and Sewer Fund Category Budget Add. Attached Admin Services Director Date ADA Coordinator Date Internal Auditor Date recommendation of the Staff that the Council OMI Contract for operation of the Wastewater cost of $3,715,901.00, including a Ass't Public Works Director Date Department Director Date Admin Services Director Date Mayor Date Cross Reference New Item: Yes No Prev Ord/Res # Orig. Contract # Orig. Contract Date FAYETTEVR,LE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE January 5, 2000 To: Fayetteville City Council From: Don Bunn, Assistant Public Works Director,11 Subject: Amendment No. 5 OMI Contract for Wastewater Plant Services Attached for your review and approval is proposed Amendment No. 5 to the existing OMI contract for operations and management services at the Wastewater Treatment Plant. The amendment calls for a total budget of $3,715,901.00 for 2000, and breaks down as follows: Operations and Management Services - $ 3,427,047.00 Fixed Fee 88,854.00 SCADA Upgrade- 200,000.00 Total $ 3,715,901.00 There will be a Water and Sewer Committee Meeting immediately following the Agenda Session on Tuesday, January 11 to discuss the Amendment. The Committee's recommendation will be brought to the Council at their regular meeting on January 18, 2000. • • • AMENDMENT NO. 5 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 , 2000, 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 5299 DTC Boulevard, Suite 1209, Englewood, Colorado 80111- 3333 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. 5 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: 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 sixth year of this agreement owner shall pay to OMI the actual cost of services performed plus a management fee of Eighty Eight Thousand Eight Hundred and Fifty Four Dollars ($88,854). 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. 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 2000 shall be Three Million Seven Hundred Fifteen Thousand, Nine Hundred and One Dollars ($3,715,901) annually. Details of said cost are shown in Appendix J. The base fee shall be negotiated each year in September, beginning in 2000 for calendar year 2001. 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 ($20,000), in any year of this agreement, specific approval will be obtained from the owner. • • • • 3. Appendix B is hereby deleted in its entirety and replaced with the attached Appendix B. 4. Appendix J is hereby deleted in its entirety and replaced with the attached Appendix J. 5. Appendix K is hereby deleted in its entirety and replaced with the attached Appendix K. 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 Fred Hanna, Jr. Title: Mayor OPERATIONS MANAGEMENT CITY OF FAYETTEVILLE INTERNATIONAL INC. Date: Date: • • Appendix J COST DETAIL • The proposed annual estimated costs for 2000 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 2000 Budget Projected 1999 $1,305,829 $ 457,040 $ 618,712 $ 30,936 $ 787,878 $ 78,788 $3,279,183 $ 85,495 $3,364,678 $ 212,500 $3,577,178 $3,632,992 $3,715,901 Budgeted 1999 $1,329,586 $ 465,355 $ 600,000 $ 30,000 $ 793,233 $ 79.323 $3,297,497 $. 85,495 $3,382,992 $ 250,000 Proposed 2000 $1,381,183 $ 483,414 $ 715,000 $ 37,750 $ 737,909 $ 73,791 $3,427,047 $ 88,854 $3,515,901 (Phase II) $ 200,000 The following are some of the major reasons for cost circumstances: 1. Projected increase in electrical usage and demand due to increased loading, the use of the new ultra -violet disinfection system, and the requirement for 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. 3. Expansion of sewer lift -station maintenance responsibilities to include six (6) additional stations and SCADA at eight (8) additional potable water sites as noted in Appendix B. • • Appendix K SCADA UPGRADE - PHASE 2 - SCOPE OF WORK The following SCADA upgrade tasks will be performed by OMI during the calendar year 2000. 1. Upgrade of all existing ultrasonic level measurement devices with new units capable of being calibrated without entering the wetwell area, as well as installing new devices at the four additional sewer lift stations to receive SCADA control/monitoring during this phase. 2. Purchase and installation of SCADA monitor ng equipment at 15 remote valve sites in the water distribution system, specific sites to be determined by the City, to be compatible with the OMI -developed SCADA system. Note that this item specifically excludes responsibility for providing the actual sensing or control devices at these locations. 3. Purchase and installation of SCADA control/monitoring equipment at the four sewer lift stations not previously so equipped, to be compatible with OMI -developed SCADA system. Appendix B LOCATION OF PROJECT B.1 OMI agrees to provide the services necessary for the management, operation and maintenance of the following: a) All equipment, vehicles, grounds, and facilitids now existing within the present property boundaries of or being used to operate the Owner's Wastewater Treatment Plant located at: 1500 North Fox Hunter Road Fayetteville, Arkansas b) All equipment, grounds and facilities now existing within the present property boundaries of pump stations described as follows: WW1 978 East Zion Road WW2 4938 Mission Boulevard WW3 Salem Road North of Mt. Comfort Road WW4 691 West Poplar WW5 3896 North Gregg WW6 3021 North Old Wire Road WW7 2034 North Country Road # 877 WW8 729 West North Street WW9 1336 North Porter W W IO 716 Futrall Drive WW11 4412 West 6a' Street WW12 398 North Double Springs Road WW13 878 South Stonebridge Road W W 14 1820 South Armstrong WW 15 203 East 29`" Circle WW16 3917 South McCollum Road WW 17 4394 South School WW 18 202 North Sandy (Greenland) WW19 933 South Mally Wagon Road WW20 3212 North Highway 112 WW21 1687 South Happy Hollow Ro d WW22 630 North Double Springs Road WW23 Masters Addition Country Club WW24 Willow West (Farmington) WW25 4071 South Mcollum (Airport East) WW26 74 South Kestrel (Sequoyah Preserve) WW27 1031 River Meadows Drive (Stonebridge Meadows) • • WW28 1603 Plantation Avenue (Heritage Village) c) All equipment, vehicles, grounds and facilities now existing within the present property boundaries of or being used to operate the Owner's Sludge Management Site located east of the wastewater facility across the White River. d) The potable water SCADA system at the following locations: W I 215 West 24th Street W2 844 North Crossover Road W3 4938 East Mission Boulevard W4 1016 East Ash Street W5 707 East Rogers Drive W6 456 East Baxter Lane W7 707 East Rogers Drive W8 113 North Sang W9 1170 East South Skyline W10 1044 East Township Road W11 Mt. Kessler W12 Highway 45 Valve Station W13 Fire Tower Avenue (Goshen) W14 Fire Tower Avenue (Goshen) W15 Co. Road # 55 (Round Mount in) W16 Co. Road # 4343 (Benson Mountain) W17 Gulley Road Tank W18 Gulley Road Station 1475 Cato Springs Road Pump Station Pump Station Pump Station Pump Station Pump Station Ground Storage Tank Ground Storage Tank Elevated Storage Tank Elevated Storage Tank Elevated Storage Tank Ground Storage Tank Pressure -reducing Valve Ground Storage Tank Pump Station Ground Storage Tank Ground Storage Tank Elevated Storage Tank Pump Station Water & Sewer Ops Center