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Home My WebLink About188-04 RESOLUTIONRESOLUTION NO.1 88-04 A RESO1 UTION APPROVING AMENDMENT NO. 11 TO THE CONTRACT WITH OPERATIONS MANAGEMENT INTERNATIONAL (OMI) IN THE AMOUNT OF 54,484,325.00 FOR THE OPERATION AND MANAGEMENT OF THE FAYETTEVILLE WASTEWATER TREATMENT PLANT FOR 2005. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves Amendment No. 11 to the contract with Operations Management International (OMI) in the amount of $4,484,325.00 for the operation and management of the Fayetteville Wastewater Treatment Plant for 2005. A copy of Amendment No. 11, marked Exhibit "A" is attached hereto, and made a part hereof. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor to sign Amendment No. 11 to the contract with OM1, contingent upon final approval of the FY2005 Budget. PASSED and APPROVED this 7th day of December 2004. ATTEST: .................. AG\.Z Y °P. CesS • •13? .U; • 's •FAYETTEVILLE• •> %s 9RKAN5 oJ: '......roN.�,•. By: ,para.. cHkc ' SONDRA SMITH, City Clerk APPROVED: By: DAN COODY, Mayor �r • • AMENDMENT NO. 11 TO THE AGREEMENT FOR OPERATIONS, MAINTENANCE, AND MANAGEMENT SERVICES FOR THE CITY OF FAYETTEVILLE, ARKANSAS WASTEWATER TREATMENT PLANT THIS AMENDMENT NO. 11 to the Agreement for Operations, Maintenance and Management Services for the City of Fayetteville, Arkansas Wastewater Treatment Plant dated September 1, 1994 (the "Agreement"), entered into this 151 day of January, 2005, by and between the City of Fayetteville, Arkansas, whose address for any formal notice is 113 W. Mountain St, Fayetteville, Arkansas 72701 and Operations Management International, Inc., (hereinafter "OMI") with offices at 9193 S. Jamaica Street, Suite 400, Englewood, Colorado 80112 is made and entered into for purposes of amending certain provisions of 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. NOW THEREFORE, The City of Fayetteville and OMI agree to amend the Agreement as follows: 1. Article 4.1 is hereby deleted in its entirety and replaced with the following: 4.1 For services rendered during calendar year 2005 the City of Fayetteville shall pay to OMI the actual cost of services performed plus an annualized management fee of Eighty Two Thousand Three Hundred Forty Nine Dollars (582,349.00). 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 the cost for services for calendar year 2005 shall be Four Million Four Hundred Eighty Four Thousand Three Hundred Twenty Five Dollars (54,484,325.00). Details of said cost are shown in Appendix J. The base fee shall be negotiated each year in September for the upcoming calendar year. Should the City of Fayetteville 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 City of Fayetteville. Article 4.8 is hereby deleted in its entirety and replaced with the following Article 4.8: 4.8 OMI agrees to incur up to $69,362.00 in calendar year 2005 in lift station odor control direct expenses, including costs for necessary chemicals, pumps, tanks, related equipment andsuch outside services as needed. OMI will rebate to the City the entire amount that actual lift station odor control expenses are less than 569,362.00 in calendar year 2005. Appendices B, D, E, H, and J are hereby deleted in their entirety and replaced with the attached Appendices B, D, E, H and J. This Amendment No. 11 together with the Agreement constitutes the entire agreement between the Parties and supersedes all prior oral and written understandings with respect to the subject matter set forth herein. Unless specifically stated all other terms and conditions of the Agreement shall remain in full force and effect. Neither this Amendment nor the Agreement may be modified except in writing signed by an authorized representative of the Parties. Page 1 of 9 • • The Parties, intending to be legally bound, indicate their approval of the Amendment by their signatures below. OPERATIONS MANAGEMENT INTERNATIONAL, INC. 8.(. Roger B. Quaylo Senior Vice President Date: November 23, 2004 1 -4 -11 -23 -04 - CITY OF FAYETTEVILLE Dan Coody Mayor Date: l 2 Page 2 of 9 • • 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 City of Fayetteville's Wastewater Treatment Plant located at: 1400 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 E. Zion Road WW2 4938 Mission Blvd. (Timbercrest) WW3 2805 N. Salem Road (Crystal Springs) WW4 691 W. Poplar WW5 3896 N. Gregg WW6 3021 N. Old Wire Road WW7 2034 N. County Road 877 WW8 729 W. North Street WW9 1336 N. Porter WW10 716 Futrell Drive WWII 4412 W. 6'' Street WW12 398 N. Double Springs Road WW13 878 S. Stonebridge Road WW14 1820 S Armstrong WW15 203 E. 29t Circle (Country Club) WW16 3917 S. McCollum Road WW17 4394 S. School WW18 202 N. Sandy (Greenland) WW19 988 S. Mallywagnon Road WW 20 3212 N. Highway 112 WW21 1687 S. Happy Hollow Road WW22 630 N. Double Springs Road WW23 440 E. Fairway Ln (Masters Addition/Country Club #2) WW24 4071 South McCollum (Airport East) WW25 511 W Aster Ave. — Farmington (Willow West) WW26 74 S. Kestrel (Sequoyah Preserve) WW27 1031 River Meadows Drive (Stonebridge Meadow) WW28 1603 Plantation Avenue (Heritage Village) WW29 390 N. Cato Springs Road - Greenland (Todd Bohannan) WW30 2324 Rupple Road (Holt Middle School) WW31 2130 W. More Ln (Research Park) WW32 478 N. Durango Place (Silverthorne) WW33 4644 N. Crossover Road (Copper Creek) WW34 7572 S. School (Airport South) WW35 3083 W, 6" Street (Lowe's) WW36 1642 N. Willowbrook Dr. (Skyler Place) WW37 3848 W. Edgewater Dr. (Clabber Creek) c) All equipment, grounds, and facilities now existing within the present property boundaries of or being used to operate the City of Fayetteville's Sludge Management Site located east of the wastewater treatment facility across the White River: d) The potable water SCADA system at the following locations: Page 3 of 9 W1 215 W. 24" Street W2 844 N. Crossover Road W4 1016 E. Ash Street W5 707 E. Rogers Drive W6 456 E. Baxter Lane W7 707 E. Rogers Drive W8 113 N. Sang W9 1170 E. South Skyline W10 1044 E. 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 Mountain) W16 Co. Road # 4343 (Benson Mountain) W17 Gulley Road Tank W18 Gulley Road Station 1475 Cato Springs Road 12141 Ed Edwards Road Pump Station Pump Station Pump Station Pump Station Ground Storage Tank Ground Storage Tank Elevated Storage Tank Elevated Storage Tank Elevated Storage Tank Elevated 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 Mt. Robinson Tower Site e) SCADA system repeater, antenna, transmission line, cabinet and backup power supply located at the City of Fayetteville communications site atop Mt. Robinson at 12141 Edwards Rd. Page 4 of 9 • • Appendix D INDUSTRIAL PRETREATMENT PROGRAM D.1 a) Conduct a survey of the industrial user base 1 time per 3 years. Update, as required, the list of significant industrial users (SIUs) as described in Appendix D according to the definition of SIU in 40 CFR 403 or the definition in the approved pretreatment program (Program), whichever is more stringent. b) Carry out inspection, surveillance, and monitoring procedures to determine if the SIUs are in compliance with the Pretreatment Standards and the approved Program. Each SIU shall be sampled and inspected at the frequency established in 40 CFR 403 or the approved Program, whichever is more stringent. Maintain adequate records. c) Maintain the laboratory analysis program for each SIU as described in Appendix D. Results of all industrial sampling and testing shall be reported to The City of Fayetteville, as required, in a timely manner. d) Implement the approved industrial permitting system. Prepare for renewal all necessary industrial user control mechanisms within 45 days of the expiration date or within 180 days after the industry has been determined to be an SIU. e) Prepare notices of violation for noncompliance with 40 CFR 403 or the approved Program. whichever is more stringent, and initiate other enforcement actions by notifying the City of Fayetteville of the appropriate enforcement action according to the approved enforcement response plan. f) Prepare for submission to the Approval Authority (EPA and/or the appropriate State agency) an annual report describing the Program activities over the previous Program year in accordance with 40 CFR 403 or the approved Program, whichever is more stringent. Assist The City of Fayetteville with annual public notice of dischargers in significant noncompliance as required by 40 CFR 403. 9) Advise the City of Fayetteville of changes in federal and State Pretreatment Standards and regulations and how the changes affect the local Program. Request approval from the City of Fayetteville and the Approval Authority prior to implementing significant changes to the approved Program in accordance with 40 CFR 403.18(c). h) Local limits evaluation, if requested, may be provided as an out of scope service. The costs of such evaluation will be determined and negotiated at the time of the request. Page 5 of 9 • D 2 Industrial Waste Dischargers and Monitoring Program • City of Fayetteville Industry Parameters Analyzed Ayrshire Electronics, LLC 1101 S. Beechwood Fayetteville, AR 72701 Mr. Tim Pearce 442-5356 ext. 2113 Cadmium, chromium, copper, lead, nickel, silver, zinc Cooper Power Systems/Kearney Operation Cadmium, chromium, copper, lead, nickel, 3660 S. School Avenue silver, zinc, cyanide Fayetteville, AR 72701 Mr. James Raynor 587-6335 Elkhart Products Corporation Chromium, copper, lead, nickel, zinc, oil & PO Box 1129 grease Fayetteville, AR 72702 Mr. Jerry Whiteside 443-2367 Hiland Dairy Company Biochemical oxygen demand, total suspended PO Box 3478 solids, phosphorus, pH, oil & grease Fayetteville, AR 72702 Mr. Dale Schoen 521-1707 Danaher Tool Group/K-D Tools Cadmium, chromium, copper, lead, nickel, 2900 City Lake Road silver, zinc, cyanide Fayetteville, AR 72701 Mr. Kelly Jones 442-7779 Marshalltown Tools Cadmium, chromium, copper, lead, nickel, 2200 Industrial Drive silver, zinc, cyanide Fayetteville, AR 72701 Mr. Jim Glass 521-4306 ext. 163 Pinnacle Foods Corporation Biochemical oxygen demand, total suspended PO Box G solids, phosphorus, pH, oil & grease Fayetteville, AR 72702 Mr. Fred McLane 443-3451 ext. 216 Superior Industries International, Inc. Cadmium, chromium, copper, lead, nickel, 1901 Borick Drive silver, zinc, cyanide Fayetteville, AR 72701 Mr. Garnett Wise 443-7870 Tyson Foods, Inc. Biochemical oxygen demand, total suspended 2615 S. School solids, phosphorus, pH, oil & grease Fayetteville, AR 72701 Mr. Richard Stockton 521-0677 Page 6 of 9 Appendix E VEHICLE AND MOBILE EQUIPMENT DESCRIPTION Unit # Unit Description Year 11092 Ford Explorer 2002 1 1 2009 Ford Ranger 4 X 4 1997 1228 Ford Ranger 4 X 4 1996 239 Ford F150 Flare Side 266 GMC V -Jimmy 1990 i 310 Ford F-350 3 -Way Dump 1990 ' 320 Ford F-350 Crew Cab 1999 ' 324 Ford F-350 w/crane 1999 339 Ford F-350 4 X 4 2002 539 i Ford CM224 Mower 1994 551 Ford 3930 Tractor 1995 556 Ford/New Holland 8160 Tractor w/Loader 1997 562 New Holland 8160 Tractor 1999 563 New Holland Tractor 1999 564 New Holland Tractor w/Loader 1999 566 Ford LS55 Lawn Tractor 1999 570 New Holland 95 hp Tractor 2000 581 New Holland T100 Truck w/Loader 2004 582 New Holland 1412 Mower 2004 644 New Holland Backhoe/Loader 2000 701 Ford 8000 Dump 1983 712 Ford 8000 (Gooseneck) 1983 734 Freight Liner 1987 76 Caterpillar Articulated Tanker 1988 77 Caterpillar Articulated Tanker 1988 806 Case 1150G Bulldozer 1995 82 Sykes 6" Pump/Trailer 1995 900 Generator 1987 9004 John Deere 348-C S.uare Baler 1999 9017 New Holland 1411 Mower 2000 9031 E -Z Go Workhorse 2001 9034 Yale Forklift 2001 9037 E -Z Go Workhorse 2002 910 ' 16 Ft. Trailer N/C 1987 927 24' Parker Gooseneck Trailer 1991 959 Bush Hog 2620 Cutter 1995 966 18 Ft. Trailer 1996 969 Lo -Boy Trailer 1996 987 Hesston Large Square Baler 1998 988 Hesston Wheel Rake 1998 989 M & W Wheel Rake 1998 990 New Holland 1411 Mower 1998 991 Polars 500 4 X 4 1998 992 Polaris 500 4 X 4 1998 9021 Volvo Penta 400 RD — Portable Diesel Power Generator at 12001 LS#8 9025 Volvo Penta 400 RD — Portable LS#9 Diesel Power Generator at 2001 Page 7 of 9 • • Appendix H THIRTY -DAY CHEMICAL INVENTORY Chemical Purpose 30 -Day Supply 2,200 Gallons Liquid Alum Phosphorus Removal Ferrous Sulfate Lift Station Odor Control 10,000 Gallons Liquid Oxygen Effluent Belt Filter Dissolved Oxygen Press 50,000 Cubic Ft 6870 Pounds Polymer Page 8 of 9 • Appendix J COST DETAIL The annualized estimated costs for calendar year 2005 are as follows: Direct Labor & Benefits Labor Markup Electricity Electrical Markup Other Direct Costs Other Direct Costs Markup Subtotal Fixed Fee Lift Station Odor Control Capital Item Amortization Total 0 & M Budget Total Annualized Budget Net Annualized Increase Current 2004 51, 671,667 5501,500 5660,000 SO 51,074,972 5107,497 $4,015,637 578,139 5179,175 5100, 622 54,373.573 54,373,573 The following are some of the major reasons for cost circumstances: • Proposed 2005 $1,671,071 5501, 321 5642,720 50 S1,288,073 5128, 807 $4,231,992 582,349 $69,362 $100,622 54,484,325 54, 484, 325 $110,730 Continued increase in the efficient use of technological automation and job -sharing within the OMI r..etwork. Continued upward pressure on the cost of fuel and vehicle expenses. Ever increasing cost to maintain community -expected high level of performance with many pieces of equipment nearing the end of their life cycle and destined to be replaced or upgraded as part of the ongoing Wastewater Improvement Protect. Continued population growth causing a related increase in sludge production and ultimate sludge disposal costs. Additional costs for maintenance of 4-5 new sewage lift stations during the next year. Potentially less expensive sludge disposal alternatives continue to be evaluated, which may or may not become feasible within the next 12 months. Page 9 of 9 NAME OF FILE: CROSS REFERENCE: Item # Date Resolution No. 188-04 w/Agreement Amendment No. 11 Document • 1 11/19/04 memo to mayor & City Council 2 draft resolution 3 Staff Review Form 4 memo to Clarice Pearman 5 memo to Pam Henson 6 7 8 9 10 11 12 13 14 15 16 NOTES: • • tiyettvvil lc City Council Meeting of December 7, 2004 CITY COUNCIL AGENDA MEMO as -a/ To: From: Date: Subject: Mayor and City Council Greg Boettcher, Water/Wastewater Director November 19, 2004 Resolution approving Amendment Number 11 with Operations Management International, Inc. for operation of wastewater treatment facilities for calendar year 2005. RECOMMENDATION Fayetteville City Administration recommends approval of "Amendment No. 1 I to the Agreement for Operations, Maintenance and Management Services for the City of Fayetteville, Arkansas Wastewater Treatment Plant." This contract amendment totalling S4,484,325.00 provides services for 2005 and is included in the proposed Fiscal Year 2005 Budget. BACKGROUND Die City of Fayetteville's first private operating contract commenced in 1987 with this ycar marking 18 years of privatized services from Operations Management International, Inc. (OMI). In May of 2003, Fayetteville City Council approved Amendment No. 9 extending this agreement through December 31, 2008. The scope of services provided by OMI to the City of Fayetteville include: ( I ) Operate and maintain the Noland Wastewater Treatment Plant, (2) Operate and maintain 37 wastewater pumping stations, (3) Administer the city's NPDES discharge permit, (4) Manage the city's sludge disposal program, (5) Implement the city's industrial pretreatment program, (6) Support the SCADA (supervisory control and data acquisition system) network that monitors water/wastewater facilities, (7)Pursue operation economics, efficiencies, and permit compliance, and (8) Actively participate in the design and construction of the Wastewater System Improvement Project providing technical, operational and maintenance input To encourage operational economy and innovation an incentive provision is incorporated within the contract, whereby, budget underruns arc distributed as follows: 87.5% to City and 12.5% to OMI. DISCUSSION l he operating expenses for fiscal year 2005 contain a slight increase from 2004 due to escalated utility consumption, higher fuel costs, labor, aging equipment and growth of loadings. The annual increase in contract value is 2.5%. Such escalation is considerably below the combined effects of the + 3 % of customer growth and the + 2.5 % cost -of -living adjustment. BUDGET IMPACT The full value of S4,484,325.00 of Contract Amendment No. 11 with Operations Management International is included in the proposed budget for Fiscal Year 2005. The approval of Contract Amcndment No. 11 is consistent with the City's financial management plan. The authorization of Amendment No. 11 will be conditioned upon the approval of the 2005 budget. • • RESOLUTION NO. A RESOLUTION APPROVING AMENDMENT NO. 11 TO THE CONTRACT WITH OPERATIONS MANAGEMENT INTERNATIONAL (OMI) IN THE AMOUNT OF $4,484,325.00 FOR THE OPERATION AND MANAGEMENT OF THE FAYErI'EVILLE WASTEWATER TREATMENT PLANT FOR 2005. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves Amendment No. 11 to the contract with Operations Management International (OMI) in the amount of $4,484,325.00 for the operation and management of the Fayetteville Wastewater Treatment Plant for 2005. A copy of Amendment No. 11, marked Exhibit "A" is attached hereto, and made a part hereof. Section 2. That the City Council of the City of Fayetteville, A less hereby authorizes the Mayor to sign Amendment No. 11 toteteletr tt with OMI, contingent upon final approval of the FY2005 Budget. tJ I PASSED and APPROVED this 7th day of December 2004. i`APPROVEILe 1 By. DPCZODY, Mayor • ATTFST: By: ' / SONDRt�SMCTH, City Clerk • City of Fayetteville • Staff Review Form City Council Agenda Items Contracts Greg Boettcher Submitted By 7 -Dec -04 City Council Meeting Date Water and Wastewater Division Action Required: Wastewater Treatment Program Department Resolution approving Amendment Number 11 with Operations Management International, Inc. for operation of the wastewater treatment facilities for calendar year 2005. $4,484,325.00 Cost of this request 5400.5100.5328 Account Number Project Number Budgeted Item X $ 6,394,776 00 Category/Project Budget Funds Used to Date $ 6,394,776.00 Remaining Balance Budget Adjustment Attached Water/Wastewater Program Category / Project Name Wastewater Treatment Program / Project Category Name Water and Sewer Fund Name �Qu //-//t 0y Departmght Director —9( Q,(4.* ---Th City Attorney IChief inistrative Officer Date Ms/ i9- r/ Date //Mc( Mayor / Date Comments: Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: 1 -Sep -94 Received in Mayor's Office filo/Di ble Received in City Clerk's Office Tarrettesil. le ARKANSAS WATER AND WASTEWATER • DEPARTMENTAL CORRESPONDENCE TO: Clarice Pearman COPY: Steve Davis, Billy Ammons, David Jurgens FROM: Greg Boettcher, P.E. Water and Wastewater Director DATE: December 8, 2004 RE: OMI Contract Amendment No. 11 Operating Service for 2005 The Fayetteville City Council approved Contract Amendment No. 11 at its December 7, 2004 meeting Upon approval of the Fiscal Year 2005 Budget, Mayor Coody is authorized to sign this amendment, such action being expected to take place on December 21, 2004 When the Mayor's signature is triggered by council action, please send one copy of the executed agreement directly to Billy Ammons at the Noland Wastewater Treatment Plant and the second copy to Pam Henson. Should you have any questions, please contact me. 113 WEST MOUNTAIN 72701 479-575-8330 FAX 479-575-8257 Wt evie ARKANSAS • City Clerk Division 113 West Mountain Fayetteville, AR 72701 Telephone: (479) 575-8323 Fax: (479) 718-7695 city_clerk@ci.fayetteville.ar.us DEPARTMENTAL CORRESPONDENCE To: Pam Henson Administration Office �,� From: Clarice Buffalohead-Pearmari k City Clerk Division Date: January 7, 2005 Re: Res. No. 188-04 The City Council approved the above resolution on December 28, 2004. Attached is a copy of the resolution approving OMI Amendment No. 11 for the wastewater treatment plant management. Greg Boettcher originated this item so I though you would know what needed to be done. Also, Nuyen Tran has received one of the two originals submitted for signature on the 61" of January. I'm sorry for the delay in returning this earlier, I've been out of the office and trying to play catch up. If anything else is needed please let the clerk's office know. Thanks. /cbp attachments