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Home My WebLink About172-00 RESOLUTIONRESOLUTION NO. 172-00 MICROFILMED A RESOLUTION APPROVING AMENDMENT NO. 6 TO THE OMI CONTRACT FOR THE OPERATION AND MANAGEMENT SERVICES OF THE FAYETTEVILLE WASTEWATER TREATMENT PLANT IN THE AMOUNT OF $3,715,901. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS • Section 1. That the City Council hereby approves Amendment No. 6 to the OMI contract for the operation and management services of the Fayetteville Wastewater Treatment Plant in the amount of $3,715,901. A copy of the agreement amendment is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 19th day of December , 2000. APPROVE By: ATTEST: By: #ig UC/ i�Cer Woodruff, City rk Fred Hanna, Mayor NAME OF FILE: • esdeoddi /7/1-- CROSS 7 -- CROSS REFERENCE: Date Contents of File Initials a/9-ai.44a7 '6. /7% -DD .X „ /14& za e 4i(ci,:ice? rte goat iii S4- /./.-91.0a� 44z d ..lege./."b. zecyzy,"0 /.lam 0/-G3 Dl l// ro .IAt4mr, Cit Gl fr_.i. /- • • EX EXHIBIT A 9 N" AMENDMENT NO. 6 TO THE AGREEMENT FOR OPERATIONS, MAINTENANCE, AND MANAGEMENT SERVICES FOR THE CITY OF FAYETTEVII J F, ARKANSAS WASTEWATER TREATMENT PLANT THIS AMENDMENT, entered into this /9 day of `/aCt)n4, 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 S. 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. 6 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: Article 4.1 is hereby deleted in its entirety and replaced with the following Article 4.1: 4.1 For services rendered during the seventh year of this agreement owner shall pay to OMI the actual cost of services performed plus a management fee of Ninety One Thousand One Hundred and Twenty Eight Dollars ($91,128). 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 2001 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 2001 for calendar year 2002. 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. rn i 4 • 3. Appendix J is hereby deleted in its entirety and replaced with the attached Appendix J. 4. 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: BernarfA. Miller Title: Chief Operating Officer me/Sit-- Fred Hanna, Jr. Title: Mayor OPERATIONS MANAGEMENT CITY OF FAYETTEVILLE INTERNATIONAL, INC. Date: - _ Date: • • Appendix J COST DETAIL • The proposed annual estimated costs for 2001 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 2000 $1,385,000 $ 484,750 $ 670,000 $ 33,500 $ 775,000 $ 77,500 $3,425,750 $ 88,854 $3,514,604 Budgeted 2000 $1,381,183 $ 483,414 $ 715,000 $ 37,750 $ 737,909 $ 73,791 $3,427,047 $ 88,854 $3,515,901 Proposed 2001 $1,434,176 $ 501,962 $ 700,000 $ 35,000 $ 766,941 $ 76,694 $3,514,773 $ 91,128 $3,605,901 $ 156,546 (Phase IDS 200,000 (Phase III) $ 110,000 $3,671,150 $3,715,901 $3,715,901 The following are some of the major reasons for cost circumstances: 1. Projected decrease in electrical usage and demand due to the expectation that part-time utilization of the second aeration basin will be limited. 2. Continued increase in the cost of providing skilled professional labor in Northwest Arkansas' highly competitive job market. 3. Expense associated with maintenance of UV disinfection system after warranty period expires i Appendix K SCADA UPGRADE - PHASE 3 - SCOPE OF WORK The following SCADA upgrade tasks will be performed by OMI during the calendar year 2001. 1. Installation of SCADA monitoring equipment (purchased and constructed in 2000) 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, any road boring or road cutting required for access, installation of electrical service, or purchase/installation of mechanical equipment at these locations. 2. Upgrade of all original (1991 model) Motorola radios at previously existing SCADA installations, to radios completely compatible with new system. (Parts are no longer available for the old Motorola units) 3. Purchase and installation of a second repeater, antenna, and transmission line at the Mt. Robinson tower site, to enable true redundancy for the repeater system at this location. (This step will be taken with the assumption that the City will continue to maintain the Mt. Robinson tower site as the repeater location for the entire SCADA _ _ __ _installation, even after any general radio system upgrades that may occur) CITY of FAYETTEVILLE DEPARTMENTAL CORRESPONDENCE DATE: November 27, 2000 To: Fayetteville City Council From: Don Bunn, Ass't Public Works Director Thru: Charles Venable, Public Works Director Fred Hanna, Mayor Subject: Amendment No. 6, OMI Contract Wastewater Treatment Plant Services Attached for your review and approval is a proposed Amendment No. 6 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 Phase III of the upgrade to our SCADA system. Attached is a copy of the proposed Amendment No. 6. 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 $ 3,605,901.00 $ 3,514,773.00 91,128.00 3,605,901.00 SCADA Upgrade 150,000.00 110 000.00 TOTALS $ 3,755,901.00 $ 3,715,901.00 The increase in the operations and management estimated cost from 2000 to 2001 is 2.56 percent. Some of the factors involved in the cost of operations for 2001 are: 1. Projected demand in power costs is due to the expectation that part time use of the second aeration basin will be limited in 2001. 2. Increased maintenance on the UV Disinfection system as the warranty period expires. 3. Competition for skilled professional labor in the Northwest Arkansas area. 4. Continued replacement and upgrade of our SCADA System. • • The SCADA upgrade is a continuation of the program started in 1999. The $110,000.00 given in the Amendment for that purpose will come from the capital portion of the 2001 Water and Sewer Budget. It is the recommendation of the Staff that the Council approve the proposed Amendment No. 6. • AGENDA REQUEST FORM Council Meeting of December 19, 2000 FROM Don Bunn Public Works Admin Public Works Name Division Department ACTION REOUIRED Approval of Amendment No.6 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 $91,128 and the Phase III of the SCADA upgrade cost of $110,000.00. COST TO CITY 110,000.00 $ 3 605,601.00 Cost of this Request 150,000.00 $ 3,605,901.00 Category/Project Budget 5400 5100 5328 00 (OPERATIONS) 5400 5700 5315 00 (SCADA) -0- Account Number 99031-1 (SCADA) Project Number BUDGET/CONTRACT REVIEW udget Coordinator Ai. Accou M./ . Ai City AttoLest ey, Water/Sewer Imp'ts Wastewater Treatment Category/Project Name Funds Used to Date Program Name l50, 000.00 $ 3,605,901.00 Funds Remaining XX Budgeted Item Date //-?R r/0 Water and Sewer Fund Category Budget Adj. Attached Admin Services Director Date Date ADA Coordinator ft-2ra/ Date Internal Auditor 11-2-00 Purchasing Officer Date Date kin— Dat STAFF RECOMMENDATION It is the recommendation of the Staff that the Council approve Amendment No. 6 to the OMI Contract for operation of the Wastewater Treatment Plant for 2001, at a cost of $3,715,901.00, inclusive of a mana^S-nt fee of $91,128.00 and the SCADA upgrade cost of $110,000.00. Mayor Date Cross Reference New Item: Yes No Prev Ord/Res # Orig. Contract Orig. Contract 94-94 Date 8-16-94 ro, 1 • COMMENT SHEET Project: Amendment No. 6, OMI Operations and Management Agreement Engineer/Contractor: Operations Management International (OMI) Notes to Reviewers: None FAYETTEVOLLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Don Bunn, Assistant Public Works Director From: Heather Woodruff, City Clerk Date: January 3, 2001 Attached is a copy of the resolution approving Amendment No. 6. To the OMI Contract for operation and management services for the wastewater treatment plant. I am also returning two originals for you to distribute. The original will be microfilmed and filed with the City Clerk. cc: Nancy Smith, Internal Audit 14 • RESOLUTION NO. 172-00 A RESOLUTION APPROVING AMENDMENT NO. 6 TO THE OMI CONTRACT FOR THE,OPERATION AND MANAGEMENT SERVICES OF THE aFAYETTEVILLE' WASTEWATER TREATMENT PLANT IN THE AMOUNT OF $3,715,901. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves Amendment No. 6 to the OMI contract for the operation and management services of the Fayetteville Wastewater Treatment Plant in the amount of$3,715,901. A copy ofthe agreement amendment is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 19th day of December 2000. APPROVE , /— By. lJ��i Fred Hanna, Mayor ATTEST: By: 4Asrteather Woodruff, City rk r..