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HomeMy WebLinkAbout204-06 RESOLUTION• RESOLUTION NO. 204-06 • A RESOLUTION APPROVING AMENDMENT NO. 14 TO THE CONTRACT WITH , OPERATIONS MANAGEMENT INTERNATIONAL (OMI) IN THE AMOUNT OF $6,104,447.88 FOR THE OPERATION AND MANAGEMENT OF FAYETTEVILLE WASTEWATER TREATMENT FACILITIES FOR 200V, AND AN INCREASE OF $153,000.00 FOR THE COST OF SERVICES IN 2006; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $153,000.00. 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. 14 to the contract with Operations Management International (OMI) in the amount of $6,104,447.88 for the operation and management of Fayetteville Wastewater Treatment facilities for 2007, and an increase of $153,000.00 for the cost of services in 2006. A copy of Amendment No. 14, 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. 14 to the contract with OMI, contingent upon final approval of the FY2007 Budget. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves a Budget Adjustment in the amount of $153,000.00. PASSED and APPROVED this 5th day of December, 2006. APPROVED. ATTEST. By: .• l� By: antic DA COODY, Mayor SONDRA SMgirly€itg,Clerk Fa... • II Op.0.133 GV; ••35 c FAYETTEVILLE °SS% eLP••KAN10c .14•0 1''nON6TN C'v`` 'i'aewofl'" AMENDMENT NO. 14 TO AGREEMENT FOR OPERATIONS, MAINTENANCE AND MANAGEMENT SERVICES FOR THE CITY OF FAYETTEVILLE, ARKANSAS WASTEWATER TREATMENT PLANT THIS AMENDMENT NO. 14 to the Agreement for Operations, Maintenance and Management Services for the City of Fayetteville, Arkansas Wastewater Treatment Plant dated September 1, 1994 (the "Agreement"), made effective on the 1st day of January, 2007, by and between the City of Fayetteville, Arkansas, whose address for any formal notice is 113 W. Mountain St, Fayetteville, Arkansas 72701 (hereinafter the "City") and Operations Management International, Inc., with offices at 9193 S. Jamaica Street, Suite 400, Englewood, Colorado 80112 (hereinafter "OMI") 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 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 calendar year 2007 the City of Fayetteville shall pay to OMI the actual cost of services performed plus an annualized management fee of One Hundred Thousand Five Hundred Ten Dollars and Eighty Five Cents ($105,510.85). 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 the cost for services for calendar year 2007 shall be Six Million One Hundred Four Thousand Four Hundred Forty Seven Dollars and Eighty Eight Cents ($6,104,447.88). 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 and OMI fail to agree, the base fee will be determined by the application of the base fee adjustment formula shown in Appendix F. Upon each contract year renegotiation, OMI shall continue to invoice City of Fayetteville at the previous amount until the new contract year price is agreed upon. Upon written notice agreement between the parties as to the new contract year base fee, OMI shall issue an invoice retroactively adjusting the previous base fee amount. 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 prior to OMI incurring additional costs. Article 4.4 is hereby deleted in its entirety and replaced with the following Article 4.4: 4.4 An administrative fee of fifteen percent (15 %) is added to personnel services and ten percent (10%) to all other costs for administration, support, management and overhead, with the exception of electricity and lift station odor control direct expenses. 4. 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 One Hundred Fifty Three Thousand Nine Hundred Seventy Page 1 of 9 Eight Dollars and Three Cents ($153,978.03) per year in lift station odor control direct expenses, including costs for necessary chemicals, pumps, tanks, related equipment and such outside services as needed. These expenses will not include labor and benefits for OMI personnel. OMI will rebate to the City of Fayetteville the entire amount that actual lift station odor control expenses are less than One Hundred Fifty Three Thousand Nine Hundred Seventy Eight Dollars and Three Cents ($153,978.03) in any year of this Agreement. Appendices B, E, and J are hereby deleted in their entirety and replaced with the attached Appendices B, E, and J. Appendix K is hereby added to the Agreement. This Amendment No. 14 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. The Parties, intending to be legally bound, indicate their approval of the Amendment by their signatures below. OPERATIONS MANAGEMENT INTERNATIONAL, INC. Roger B. QiMyle Senior Vice President , /2-00 G Date: (( CITY OF FAYETTEVILLE Dan oody Mayor Date: APPROVED AS TO FORM: t Williams City Attomey Date: /2-1/3 /06 Page 2 of 9 ..``ERK/Tying, R e"'t G , SA.' 'G\TY�o,e.. rn , —V • •t - 5 FAYETTEVILLE: y .AN Appendix B LOCATION OF PROJECT B.I 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 Rd WW2 4938 Mission Blvd. (Timbercrest) W W 3 Salem Rd — Off Mount Comfort Rd (Crystal Springs) WW4 691 W. Poplar WW5 3896 N. Gregg Ave WW6 3021 N. Old Wire Rd WW7 2034 N. County Road 877 WW8 729 W. North St WW9 1336 N. Porter WW10 716FutrallDr WWII 4412 W. 6th St W W 12 398 N. Double Springs Rd W W 13 878 S. Stonebridge Rd W W 14 1820 S. Armstrong W W l5 203 E. 29th Circle (Country Club) W W 16 3917 S. McCollum Rd W W 18 202 N. Sandy (Greenland) W W 19 988 S Mallywagnon Rd WW 20 3212 N. Highway 112 WW21 1687 S. Happy Hollow Rd WW22 630 N. Double Springs Rd WW23 440 E. Fairway Ln (Masters Addition - Country Club 2) WW24 4071 South McCollum (Airport East) WW25 551 W. Aster Ave (Willow West - Farmington) WW26 74 S. Kestrel (Sequoyah Preserve) WW27 1031 River Meadows Dr (Stonebridge Meadow) WW28 1603 Plantation Avenue (Heritage Village) WW29 390 N. Cato Springs (Bohannon - Greenland) WW30 2324 Rupple Rd (Holt Middle School) WW31 2130 W. Moore Ln (Research Park) WW32 478 N. Durango Place (Silverthome) WW33 4644 N. Crossover Rd (Stonewood - Copper Creek) WW34 4572 S. School (Airport South) WW35 3083 W. 6th Street (Lowe's) WW36 1642 N. Willowbrook Dr (Skyler Place) W W 37 3848 W. Edgewater Dr (Clabber Creek) Page 3 of 9 WW38 3710 E. Zion Rd (Copper Creek II) WW39 2392 N. Kenswick Avenue (Crofton Manner) WW40 1811 S. Cherry Hills Dr (Stone Bridge Meadow II) WW41 1608 S. Springlake Dr (Crescent Lake) WW42 2588 N. Firefly Catch Dr (Clabber Creek III) WW43 308 S. Ray Ave (Timber Trails) W W 44 (Legacy Pointe Phase 5) 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: The potable water SCADA system at the following locations: W1 215 W. 241h 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 W19 1490 Sunrise Mountain Rd W20 Monitor Rd W21 2210 N. Old Wire Rd W22 2880 N. Old Missouri Rd W23 3385 N. Par Ct W24 3023 E. Joyce Blvd W25 Ozarks Regional Transit (Hwy 12) 2435 S. Industrial Dr. 12141 Ed Edwards Road Page 4 of 9 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 Pump Station Surge Tank Valve Valve Valve Valve Valve Water & Sewer Ops Center Mt. Robinson Tower Site Appendix E VEHICLE AND MOBILE EQUIPMENT DESCRIPTION Unit Unit Description Year 82 Sykes 6" Pump/Trailer 1995 266 GMC V -Jimmy 1990 320 Ford F-350SD 4X4 Utility, Crew Cab w/crane 1999 324 Ford F-350 SD 4X4 Utility, Reg. cab w/crane 1999 325 Ford F-350 4 X 4, Reg. cab 2000 339 Ford F-350 4 X 4, Flatbed 2002 539 Ford CM -224 Mower 1994 551 Ford 3930 Gen Purpose Tractor, 2X4 1995 556 Ford/New Holland 8160 Tractor w/Loader 1997 562 Ford/New Holland 8160 Tractor 1999 563 Ford/New Holland 8160 Tractor 1999 564 Ford/New Holland 8160 Tractor w/Loader 1999 566 Ford/New Holland LS55 Lawn Tractor 1999 570 New Holland 8670 Tractor, 145 hp, 4X4 2000 581 Ford/New Holland TS100A Tractor w/NH 52# Frontend Loader 2004 582 New Holland 1412 Discbine Mower Conditioner 2004 583 New Holland 740 Round Baler 2004 588 New Holland B940A Large Square Baler 2005 589 New Holland 1412 Discbine Mower Conditioner 2005 644 New Holland 575E Backhoe/Loader 2000 706 IHC S-1900 T/A Dump 1985 712 Ford F800 (Gooseneck) Tractor 1983 734 Freight Liner 112 Cony Tractor 1987 806 Case 1150G Bulldozer, 119 hp 1995 900 Generator 1987 910 Trailer, 16 Ft. N/C 1987 927 Parker, 24' Gooseneck Trailer 1991 959 Bush Hog 2620 Rot. Cutter 1995 966 P.J. Trailer, 18 Ft. 1996 969 LO -Boy, 25T-36FT Trailer 1996 988 Hesston 3982 Wheel Rake 1998 989 M & W DF -12 Wheel Rake 1998 992 Polaris 500 4 X 4 1998 Page 5 of 9 Appendix E VEHICLE AND MOBILE EQUIPMENT DESCRIPTION (CONTINUED) 1092 Ford Explorer 2002 2004 Ford Ranger, 4X4 1997 2007 Ford Ranger, 4X4 1997 2089 Chevy Silverado, 4X4, Reg. Cab 2006 2090 Chevy Silverado; 4X4, Reg. Cab 2006 2103 Ford 150, 1/2 Ton, 4WD, Ext. Cab 2006 9004 John Deere 348-C Small Square Baler 1999 9017 New Holland 1411 Mower Cond. 2000 9021 Volvo Penta 400 KW - Trailer Mounted Diesel Generator @ LS#8 2001 9024 Hesston GEHL WR -522 Wheel Rake 2001 9025 Volvo Penta 400 KW - Trailer Mounted Diesel Generator @ LS#9 2001 9031 E -Z -GO ST -350 Utility Vehicle 2001 9034 Yale 5000# Fork Lift, Solid Tires 2002 9037 E -Z -GO ST -480 Workhorse Utility Vehicle 2002 9083 28 yd, 38' End Dump Trailer, Tandem Axle Portable Generator for LS 2005 • Page 6of9 Appendix J COST DETAIL The annualized estimated costs for calendar year 2007 are as follows: The following are some of the major reasons for cost circumstances: OMI has significantly reduced the mark up on labor from thirty percent (30%) to fifteen percent Page 7 of 9 Current 2006 Proposed 2007 Direct Labor & Benefits $ 1,714,624.83 $ 2,180,396.37 Labor Markup @ 30% for 2006 & 15% for 2007 $ 514,387.45 $ 327,059.46 Electricity $ 576,000.00 $ 696,999.87 Electricity Markup Other Direct Costs $ 1,434,090.16 $ 1,927,477.81 Other Direct Costs Markup @ 10% $ 143,409.02 $ 192,747.78 Subtotal $ 4,382,511.46 $ 5,324,681.29 Fixed Fee $ 86,841.35 $ 105,510.85 Lift Station Odor Control $ 104,855.00 $ 153,978.03 Capital Item Amortization $ 100,621.85 $ 119,712.00 Total Estimated O&M Budget $ 4,674,829.66 $ 5,703,882.17 Odor Control System Rehabilitation $ 118,741.88 Bar Screen Relocation $ 39,422.22 Aerator Rehabilitation $ 183,085.47 HMI Integration for Westside WWTP $ 59,316.15 Total Estimated Annualized Budget $ 4,674,829.66 $ 6,104,447.88 Net Annualized Difference $ 1,429,618.23 The following are some of the major reasons for cost circumstances: OMI has significantly reduced the mark up on labor from thirty percent (30%) to fifteen percent Page 7 of 9 (15%) in recognition of the outstanding long term relationship that has existed between OMI and the City of Fayetteville and in the interest of helping the City to contain operational costs in light of recent cost issues related to the overall wastewater systerii within the City. The cost reduction is made possible by heavily leveraging OMI's experience and expertise in the wastewater treatment industry and through significant job sharing within the OMI network. Addition of 2 5 full time positions to cover additional sludge handling & disposal, O&M of the odor scrubbers for the sludge tank, headworks area, and the solids building, and 2007 cost of living adjustments. 3. Electrical budget has been increased by twenty one percent (21%) to reflect the actual electrical cost in 2006. Electrical cost has been significantly impacted by the fuel cost adjustment, which ranged from twenty three percent (23%) to forty three percent (43%) of the total electrical cost in 2006. Additional costs in chemicals to operate odor scrubbers at the Noland facility and increased alum usage to meet summer phosphorus limits in Beaver Water District agreement. 5. Additional costs for sludge disposal which include vehicle expenses, tipping fees, polymer costs, and contract hauling. 6. Additional odor control efforts in the collection system including significantly greater efforts at the Hamestring lift station which feeds the Porter Road lift station. 7. 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 Project. 8. Additional costs for maintenance of forty two plus (42+) sewage lift stations during the next year. Addition of the one-time Odor Control System Rehabilitation Project to rebuild the existing odor scrubber for odor control at the sludge holding tank. This project is not covered under the plant upgrade and should save the City about Thirty Five Thousand Dollars ($35,000) by performing the work in house. 10. Addition of the Bar Screen Relocation Project to relocate one of the existing bar screens at the Noland plant to the new headworks building. This project is not covered under the plant upgrade and allows delaying the purchase of about Four Hundred Fifty Thousand Dollars ($450,000) in additional capital items for the present time. This item will likely be duplicated in 2008 to relocate one of the existing bar screens to the Westside WWTP as well. 11. Addition of the one-time Aerator Rehabilitation Project to rebuild at least two of the twenty (20) year old aerators to keep up with the additional organic loadings. This represents about a thirty percent (30%) savings over the purchase of new units and should have similar life expectancy. 12. Addition of the one-time HMI Integration for the Westside WWTP Project to allow a Seventy Five Thousand Dollar ($75,000) deduction from the cost of the West Side WWTP construction. Much of this cost would have been expended by plant personnel anyway in becoming familiar with the new SCADA system. This project will also allow more complete integration of the new Westside WWTP with the existing SCADA system for the Noland plant and the collection system. Page 8 of 9 Appendix K 2006 BUDGET ADJUSTMENT DETAIL In accordance with Article 4.3 of the "Agreement for Operations, Maintenance and Management Services for the City of Fayetteville's Wastewater Treatment Plant" dated September I, 1994, Operations Management International respectfully requests approval of a budget adjustment to the 2006 O&M budget in the amount of One Hundred Fifty Three Thousand Dollars ($153,000.00). The estimated increase is extrapolated using the average actual O&M costs from January to September 2006 based on the major contributing factors listed below: 1. The monthly costs for electrical power are influenced by several factors. One of those factors which we have no control over relates to the cost of fuel used to generate the electricity. The normal rate structure has an estimated `normal' cost for fuel built in, but if the actual fuel costs are higher than the budgeted amount, the cooperative charges the customer for that difference via a separate line item called "Fuel Cost Adjustment". Recognizing that these costs were also higher in 2005 than we had originally anticipated, the 2006 budget included what we felt was a reasonable amount to cover the anticipated fuel - related costs as projected by the cooperative. However, the monthly charges for fuel cost adjustments have been significantly higher than even that increased amount and have greatly impacted the total electrical costs in 2006. The average fuel cost adjustment in 2006 has been 30.1% of the total monthly electrical cost compared to 18.7% for 2005 and 0% in most previous years. These high fuel cost adjustments have caused an average $4,530 cost overrun in the monthly electrical budget, or an estimated $54,360 for the year. 2. Treatment of domestic wastewater in Fayetteville produces very clean effluent but also leaves a residual product known as sludge or biosolids, which is made up largely of excess bacteria that have been removed from the treatment process. Several factors affect sludge disposal costs including: sludge hauling, landfill tipping fee, and polymer usage. The combination of higher sludge hauling costs (largely impacted by higher than anticipated costs for diesel fuel) and tipping fee (charges from the landfill which have also risen during the budget year), have caused expenses to be an average of $5,720 more per month than budgeted. In addition to the sludge hauling and disposal costs, the average polymer use was much higher in the first 6 months of 2006 due to both increased loadings and process complications caused by the ongoing construction project. Adaptation to the new sludge holding tank and alterations to the sludge processing schedule due to temporary or interim sludge pumping issues and such have required more polymer than we had planned to use. The estimated costs for polymer use are $2,500 a month more than the budgeted amount. The overall costs for sludge disposal, therefore, are estimatedto be $8,220 per month or $98,640 more than budget for the year. As always, OMI strives to provide the best value service that is possible to deliver. This is the first time in nearly twenty years of contract operations that OMI has had to ask for a budget adjustment due to situations beyond OMI's control. Even though this amount is already more than $100,000 less than projected in mid -summer of this year, OMI will obviously continue every effort to maintain expenses at the lowest level possible. Page 9 of 9 City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2006 Department: Operations Division: Wastewater Treatment Program: Wastewater Treatment Plant Date Requested 12/5/2006 Adjustment Number Project or Item Added/Increased: $153,000 is being requested in the PCP Operation Contract account. Project or Item Deleted/Reduced: $153,000 is being requested from Sewer Sales on Computer revenue account. Justification of this Increase: For the approval of amendment 14 with Operations Management International (OMI). Justification of this Decrease: Currently $181,859 has been collected over the original 2006 budgeted amount for the Sewer Sales on Computer revenue account. This additional revenue is being recognized for the OMI contract. Account Name Increase Expense Budget (Decrease Revenue Budget) Account Number PCP operation contract Account Name 5400 5100 Amount Project Number 5328 00 153,000 Decrease Expense Budget (Increase Revenue Budget) Account Number Amount Sewer sales on computer 5400 0940 4432 01 153,000 Project Number Approval Signatures RequestedBy 1 i) Alf A nager ar nt Di ector Finance & Inte Services Director Eta) AL Mayor C Date Date I N0J 06 Date 11-17-o[ Date 2- Date Budget Office Use Only Type: A B Posted to General Ledger Posted to Project Accounting Entered in Category Log E Initial Date Initial Date Initial Date David Jurgens Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 5 -Dec -06 City Council Meeting Date Water/Wastewater Division Action Required: /a/5/06 D/1 /, •,-i.eynat! Water/Wastewater Department Resolution approving Amendment No. 14 to the Agreement between the City and Operations Management, International, Inc. (OMI), for Operations, Maintenance, and Management Services for the City of Fayetteville, Arkansas Wastewater treatment Plant and approval of a budget adjustment. This contract amendment provides for $6,104,447.88 for services for 2007, and an increase of $153,000.00 for the cost of services in 2006. The 2007 cost is included in the proposed Fiscal Year 2007 Budget. A budget adjustment is attached for 2006. $6,257,447.88 Cost of this request 5400.5100.5328.00 Account Number Project Number Budgeted Item XX 6,104,447.88 Category/Project Budget Funds Used to Date 6,104,447.88 Remaining Balance Budget Adjustment Attached XX Water/Wastewater Program Category / Project Name Wastewater Treatment Program / Project Category Name Water and Sewer Fund Name Department Dir for I� City Attorney Finance and Internal Service Director Mayor 7 !' had Olo Date 11-17-41‘ Date Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number 94-94 August, 1994 412 Received in C'fy ClerkOffice N1ERED 'Received in Mayor's Office ENTERED 1149/ 'Comments: ela t'aye evi le CITY COUNCIL AGENDA MEMO City Council Meeting of December 5, 2006 To: Mayor and City Council From: David Jurgens, Water/Wastewater Director Date: November 14, 2006 Subject: ion Resolution approving Amendment Number 14 wIIh Operations Management International, Inc. for operation, maintenance and management of wastewater treatment facilities for 2007 and for reconciliation of costs for 2006 RECOMMENDATION Fayetteville City Administration recommends approval of Amendment No. 14 to the Agreement between the City and Operations Management, International, Inc. (OMI), for Operations, Maintenance, and Management Services for the City of Fayetteville, Arkansas Wastewater Treatment Plant and approval of a budget adjustment. This contract amendment provides for $6,104,447.88 for services for 2007, and an increase of $153,000.00 for the cost of services in 2006. The 2007 cost is included in the proposed Fiscal Year 2007 Budget. A budget adjustment is attached for 2006. BACKGROUND The City of Fayetteville's first private operating contract commenced in 1987 with this year marking 20 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: (1) operate and maintain the Noland Wastewater Treatment Plant; (2) operate and maintain 43 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 economies, efficiencies, and permit compliance; (8) actively participate in the design and construction of the Wastewater System Improvement Project (WSIP) providing technical, operational, and maintenance input; and (8) perform several one-time, out of scope tasks, identified in the contract, related to and saving costs from the WSIP. To encourage operational economy and innovation, an incentive provision is incorporated within the contract whereby budget underruns are distributed 87.5% to the City and 12.5% to OMI. DISCUSSION The operating expenses for fiscal year 2007 contain an increase from 2006 due to significantly higher fuel and chemical costs, a 2.6% labor increase, a 3% customer base increase, a 21% electrical cost increase, addition of four sewer lift stations, and a 12% increase in organic loadings and the resultant increase of sludge to be processed and hauled in the year. Additionally, this contract amendment includes $400,566 in costs directly related to the WSIP. The contract increase for operations (excluding one-time costs) is 21.5%; the overall contract increase is 22%. To validate the costs of the contract, staff compared operational costs between the Rogers and Fayetteville plants on a unit -cost comparison basis. Costs are broken down on a per -thousand gallons treated or a per -pound of material removed. Although Fayetteville's permit is much more stringent, the costs are very close. Rogers is higher on some specific costs; Fayetteville is higher in others. In all cases, the costs are so close that staff is confident both cities are receiving excellent value for their WWTP operation. Details are in the attached memo. BUDGET IMPACT The 2007 cost of $6 104,447.88 is included in the proposed 2006 Budget; authorization of Amendment No. 14 will be contingent upon the budget approval. A budget adjustment is attached for the $153,000.00 for the cost of services in 2006 is attached. Funds are coming from additional (higher than budgeted) sewer revenues received in 2006. RESOLUTION NO. A RESOLUTION APPROVING AMENDMENT NO. 14 TO THE CONTRACT WITH OPERATIONS MANAGEMENT INTERNATIONAL (OMI) IN THE AMOUNT OF $6,104,447.88 FOR THE OPERATION AND MANAGEMENT OF FAYETTEVILLE WASTEWATER TREATMENT FACILITIES FOR 2006, AND AN INCREASE OF $153,000.00 FOR THE COST OF SERVICES IN 2006; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $153,000.00. 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. 14 to the contract with Operations Management International (OMI) in the amount of $6,104,447.88 for the operation and management of Fayetteville Wastewater Treatment facilities for 2007, and an increase of $153,000.00 for the cost of services in 2006. A copy of Amendment No. 14, 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. 14 to the contract with OMI, contingent upon final approval of the FY2007 Budget. Section 3. That the City Council of the City of F jayettlelle, • 'kansas hereby approves a Budget Adjustment in the amount of$1.53;00�0.0O. PASSED and APPROVED this 5th da of December, 2006. Al By SMITH, City Clerk AN COODY, Mayor AMENDMENT NO. 14 TO . AGREEMENT FOR OPERATIONS, MAINTENANCE AND MANAGEMENT SERVICES FOR THE CITY OF FAYETTEVILLE, ARKANSAS WASTEWATER TREATMENT PLANT THIS AMENDMENT NO. 14 to the Agreement for Operations, Maintenance and Management Services for the City of Fayetteville, Arkansas Wastewater Treatment Plant dated September 1, 1994 (the "Agreement"), made effective on the 151 day of January, 2007, by and between the City of Fayetteville, Arkansas, whose address for any formal notice is 113 W. Mountain St, Fayetteville, Arkansas 72701 (hereinafter the "City') and Operations Management International, Inc., with offices at 9193 S. Jamaica Street, Suite 400, Englewood, Colorado 80112 (hereinafter "OMP') 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 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 calendar year 2007 the City of Fayetteville shall pay to OMI the actual cost of services performed plus an annualized management fee of One Hundred Thousand Five Hundred Ten Dollars and Eighty Five Cents ($105,510.85). 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 43 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 2007 shall be Six Million One Hundred Four Thousand Four Hundred Forty Seven Dollars and Eighty Eight Cents ($6;104,447.88). 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 and OMI fail to agree, the base 'fee will be determined by the application of the base fee adjustment formula shown in Appendix F. Upon each contract year renegotiation, OMI shall continue to invoice City of Fayetteville at the previous amount until the new contract year price is agreed upon. Upon written notice agreement between the parties as to the new contract year base fee, OMI shall issue an invoice retroactively adjusting the previous base fee amount. 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 prior to OMI incurring additional costs. 3. Article 4.4 is hereby deleted in its entirety and replaced with the following Article 4.4: 4.4 An administrative fee of fifteen percent (15 %) is added to personnel services and ten percent (10%) to all other costs for administration, support, management and overhead, with the exception of electricity and lift station odor control direct expenses. 4. Article 4.8 is hereby deleted in its entirety and replaced with the following Article 4.8: 4.8 OM agrees to incur up to One Hundred Fifty Three Thousand Nine Hundred Seventy ,Page 1 df 9 • • Eight Dollars and Three Cents ($153,978.03) per year in lift station odor control direct expenses, including costs for necessary chemicals, pumps, tanks, related equipment and such outside services as needed. These expenses will not include labor and benefits for OMI personnel. OMI will rebate to the City of Fayetteville the entire, amount that actual lift station odor control expenses are less than One Hundred Fifty Three Thousand Nine Hundred Seventy Eight Dollars and Three Cents ($153,978.03)• in any year of this Agreement. 5.' Appendices B, E, and J. are hereby deleted in their entirety and replaced.. with the attached Appendices B, E, and J. 6. Appendix K is hereby added to the Agreement. This Amendment No. 14 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 byan authorized representative of the Parties. The Parties, intending to be legally bound, indicate their approval of the Amendment by their signatures below. ' OPERATIONS MANAGEMENT CITY OF FAYETTEVILLE INTERNATIONAL, INC. Roger B. Quayle Dan Coody Senior Vice President Mayor Date: Date: APPROVED AS TO FORM: Kit Williams City Attorney Date: 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 Rd WW2 4938 Mission Blvd. (Timbercrest) WW3 Salem Rd — Off Mount Comfort Rd (Crystal Springs) WW4 691 W. Poplar WW5 3896 N. Gregg Ave WW6 3021 N. Old Wire Rd • W W7 2034 N. County Road 877 WW8 729 W. North St WW9 1336 N. Porter W W I O 716 Futrall Dr • W W 11 4412 W. 6th St WWI2 398 N. Double Springs Rd WW13 878 S. Stonebridge Rd W W 14" 1820 S. Armstrong WW15 203 E. 291h Circle (Country Club) WWY6 3917 S. McCollum Rd W W 18 202 N. Sandy (Greenland) WW19 988 S. Mallywagnon Rd WW 20 3212 N. Highway 112 ' W W21 1687 S. Happy Hollow Rd WW22 630 N. Double Springs Rd WW23 440 E. Fairway Ln (Masters Addition - Country Club 2) WW24 4071 South McCollum (Airport East) WW25 551 W. Aster Ave (Willow West - Farmington) WW26 74 S. Kestrel (Sequoyah Preserve) ' WW27 1031 River Meadows Dr (Stonebridge Meadow) WW28 • 1603 Plantation Avenue (Heritage Village) WW29 390 N: Cato Springs (Bohannan - Greenland) WW30 2324 Rupple Rd (Holt Middle School) WW31 2130 W. Moore Ln (Research Park) WW32 478 N. Durango Place (Silverthome) WW33 4644N. Crossover Rd (Stonewood - Copper Creek) WW34 4572.S. School (Airport South) • WW35 3083 W. 6'h Street (Lowe's) WW36 1642 N. Willowbrook Di (Skyler Place) WW37 3848 W. Edgewater Dr (Clabber Creek) Page 3, of 9 WW38 3710 E. Zion Rd (Copper Creek II) WW39 2392 N. Kenswick Avenue (Crofton Manner) W W40 1811 S. Chevy Hills Dr (Stone Bridge Meadow II) WW4I 1608 S. Springlake Dr (Crescent Lake) WW42 2588 N. Firefly Catch Dr (Clabber Creek III) WW43 308 S. Ray Ave (Timber Trails) WW44 (Legacy Pointe Phase 5) , MI 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: The potable water SCADA system at the following locations: WI 215 W. 241h 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 WI1 Mt. Kessler W12 Highway 45 Valve Station WI3 Fire Tower Avenue (Goshen) WI4 Fire Tower Avenue (Goshen) W15 Co. Road # 55 (Round Mountain) WI6 Co. Road # 4343 (Benson Mountain) WI 7 Gulley Road Tank W18 Gulley Road Station WI9 1490 Sunrise Mountain Rd . W20 Monitor Rd W21 2210 N. Old Wire Rd W22 2880 N. Old Missouri Rd W23 3385 N. Par Ct W24. 3023 E. Joyce Blvd W25 Ozarks Regional Transit (Hwy 12) 2435 S. Industrial Dr. 12141 Ed Edwards Road Page 4 of 9 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 Pump Station Surge Tank Valve Valve Valve Valve Valve Water & Sewer Ops Center Mt. Robinson Tower Site • • Appendix E VEHICLE AND MOBILE EQUIPMENT DESCRIPTION Page 5 of 9 Unit # Unit Description Year 82 Sykes 6" Pump)Trailer 1995. 266 GMC V -Jimmy 1990 320 Ford F-350 SD 4X4 Utility, Crew Cab w/crane 1999 324 Ford F-350 SD 4X4 Utility, Reg. cab w/crane 1999 325 Ford F-350 4 X 4, Reg. cab 2000 339 Ford F-350 4X 4,.Flatbed 2002 539 Ford CM -224 Mower 1994 551 Ford 3930 Gen Purpose Tractor, 2X4 1995 556 Ford/New Holland 8160 Tractor w/Loader 1997 562 Ford/New Holland 8160 Tractor 1999 563 Ford/New Holland 8160 Tractor 1999 564 Ford/New Holland 8160 Tractor w/Loader ' 1999 566 Ford/New Holland LS55 Lawn Tractor 1999 570 New Holland 8670 Tractor, 145 hp, 4X4 2000 581 Ford/New Holland TS 100A Tractor w/NH 52# Loader Frontend 2004 582 New Holland 1412 Discbine Mower Conditioner 2004 583 New Holland 740 Round Baler 2004 588 New Holland B940A Large Square Baler 2005 589 New Holland 1412 Discbine Mower Conditioner 2005 644 New Holland 575E Backhoe/Loader 2000 706 1HC S-1900 T/A Dump 1985 712 Ford F800 (Gooseneck) Tractor 1983 734 Freight Liner 112 Cony Tractor 1987 806 Case 1150G Bulldozer, 119 hp• 1995 900 Generator 1987 910 Trailer, 16 Ft. N/C 1987 927 Parker, 24' Gooseneck Trailer 1991 959 Bush Hog 2620 Rot. Cutter 1995 966 P.J. Trailer, 18 Ft. 1996 969 LO -Boy, 25T-36FT Trailer 1996 988 Hesston 3982 Wheel Rake 1998 989 M & W DF -12 Wheel Rake 1998 992 Polaris 500 4 X 4 1998 Page 5 of 9 Appendix E VEHICLE AND MOBILE EQUIPMENT DESCRIPTION (CONTINUED) 1092 Ford Explorer 2002 2004 Ford Ranger, 4X4 1997 2007 Ford Ranger, 4X4 1997 2089 .Chevy Silverado, 4X4, Reg. Cab 2006 2090 Chevy Silverado, 4X4, Reg. Cab 2006 2103 Ford 150, 1/2 Ton, 4WD, Ext..Cab 2006 9004 John Deere 348-C Small Square Baler 1999 9017 New Holland 1411 Mower Cond. 2000 9021 Volvo Penta 400 KW - Trailer Mounted Diesel Generator @ LS#8 2001 9024 Hesston GEHL WR -522 Wheel Rake 2001 9025. Volvo Penta 400 KW - Trailer Mounted Diesel Generator @ LS#9 2001 9031 E -Z -GO ST -350 Utility Vehicle 2001 9034 Yale 5000# Fork Lift, Solid Tues 2002 9037 E=Z-GO ST -480 Workhorse Utility Vehicle 2002 9083 28 yd, 38' End Dump Trailer, Tandem Axle Portable Generator for LS 2005 Page 6 of 9 Appendix J COST DETAIL The annualized estimated costs for calendar year 2007 are as follows: • The following are some of the major reasons for cost circumstances: OMI has significantly reduced the mark up on labor from thirty percent (30%) to fifteen percent Page 7 of 9 Current 2006 Proposed 2007 Direct Labor & Benefits $ 1,714,624.83 $ 2,180,396.37 Labor Markup @ 30% for 2006 & 15% for 2007 $ 514,387.45 $ 327,059.46 Electricity $ 576,000.00 $ 696,999.87 Electricity Markup Other Direct Costs $ 1,434,090.16 $ 1,927,477.81 Other Direct Costs Markup @ 10% $ 143,409.02 $ 192,747.78 Subtotal $ 4,382,511.46 $ 5,324,681.29 Fixed Fee . $ 86,841.35 $ 105,510.85 Lift Station Odor Control $ 104,855.00 $ 153,978.03 Capital Item Amortization $ 100,621.85 $ 119,712.00 Total Estimated O&M Budget $ 4,674,829.66 $ 5,703,882.17 Odor Control System Rehabilitation $ 118,741.88 Bar Screen Relocation $ 39,422.22 Aerator Rehabilitation 1 $ 183,085:47 HMI Integration for Westside WWTP $ 59,316.15 Total Estimated Annualized Budget $ 4,674,829.66 $ 6,104,447.88 Net Annualized Difference $ 1,429,618.23 • The following are some of the major reasons for cost circumstances: OMI has significantly reduced the mark up on labor from thirty percent (30%) to fifteen percent Page 7 of 9 (15%) in recognition of the outstanding long term relationship that has existed between OMI and the City of Fayetteville and in the interest of helping the City to contain operational costs in light of recent cost issues related to the overall wastewater system within the City. The cost reduction is made possible by heavily leveraging OMI's experience and expertise in the wastewater treatment industry and through significant job sharing within the OMI network. 2. Addition of 2 5 full time positions to cover additional sludge handling & disposal, O&M of the odor scrubbers for the sludge 'tank, headworks area, and the solids building, and 2007 cost of living adjustments. Electrical budget has been increased by twenty one percent (21%) to reflect the actual electrical cost in 2006. Electrical cost has been significantly impacted by the fuel cost adjustment, which ranged from twenty three percent (23%) to forty three percent (43%) of the total electrical cost in 2006. 4. Additional costs in chemicals to operate odor scrubbers at the Noland facility and increased alum usage to meet summer phosphorus limits in Beaver Water District agreement. 5. Additional costs for sludge disposal which include vehicle expenses, tipping fees, polymer costs, and contract hauling. 6. Additional odor control efforts in the collection system including significantly greater efforts at the Hamestring lift station which feeds the Porter Road lift station. 7. 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 Project. 8. Additional costs for maintenance of forty two plus (42+) sewage lift stations during the next year. 9. Addition of the one-time Odor Control System Rehabilitation Project to rebuild the existing odor scrubber for odor control at the sludge holding tank. This project is not covered under the plant upgrade and should save the City about Thirty Five Thousand Dollars ($35,000) by performing the work in house. 10. Addition of the Bar Screen Relocation Project to relocate one of the existing bar screens at the Noland plant to the new headworks building. This project is not covered under the plant upgrade and allows delaying the purchase of about Four Hundred Fifty Thousand Dollars ($450,000) in additional capital items for the present time. This item will likely be duplicated in 2008 to relocate one of the existing bar screens to the Westside WWTP as well. 11. Addition of the one-time Aerator Rehabilitation Project to rebuild at least two of the twenty (20) year old aerators to keep up with the additional organic loadings. This represents about a thirty percent (30%) savings over the purchase of new units and should have similar life expectancy. 12. Addition of the one-time HMI integration for the Westside WWTP Project to allow a Seventy Five Thousand Dollar ($75,000) deduction from the cost of the West Side WWTP construction. Much of this cost would have been expended by plant personnel anyway in becoming familiar with the new SCADA system. This project will also allow more complete integration of the new Westside WWTP with the existing SCADA system for the Noland plant and the collection system. Page 8 of 9 Appendix K 2006 BUDGET ADJUSTMENT DETAIL In accordance. with Article 4.3 of the "Agreement for Operations, Maintenance and Management Services for the City of Fayetteville's Wastewater Treatment Plant" dated September 1, 1994, Operations Management International respectfully requests approval of a budget adjustment to the 2006 O&M budget in the amount of One Hundred Fifty Three Thousand Dollars ($153,000.00). The estimated increase is extrapolated using the average actual O&M costs from January to September 2006 based on the major contributing factors listed below: 1. The monthly costs for electrical power are influenced by several factors. One of those factors which we have no control over relates to the cost of fuelused to generate the electricity. The normal rate structure has an estimated `normal cost for fuel built in, but if the actual fuel costs are higher than the budgeted amount, the cooperative charges the customer for that difference via a separate line item called "Fuel Cost Adjustment". Recognizing that these costs were also higher in 2005 than we had originally anticipated, the 2006 budget included what we felt was a reasonable amount to cover the anticipated fuel - related costs as projected by the cooperative. However, the monthly charges for fuel cost adjustments have been significantly higher than even that increased amount and have greatly impacted the total electrical costs in 2006. The average fuel cost adjustment in 2006 has been 30.1% of the total monthly electrical cost compared to 18.7% for 2005 and 0% in most previous years These high fuel cost adjustments have caused an average $4,530 cost overrun in the monthly electrical budget, or an estimated $54,360 for the year. 2. Treatment of domestic wastewater in Fayetteville produces very clean effluent but also leaves a residual product known as sludge or biosolids, which is made up largely of excess bacteria that have been removed from the treatment process. Several factors affect sludge disposal costs including: sludge hauling, landfill tipping fee, and polymer usage. The combination of higher sludge hauling costs (largely impacted by higher than anticipated costs for diesel fuel) and tipping fee (charges from the landfill which have also risen during the budget year) have caused expenses to be an average of $5,720 more per month than budgeted. In addition to the sludge hauling and disposal costs, the average polymer use was much higher in the first 6 months of 2006 due to both increased loadings and process complications caused by the ongoing construction project. Adaptation to the new sludge holding tank and alterations to the sludge processing schedule due to temporary or interim sludge pumping issues and such have required more polymer than we had planned to use. The estimated costs for polymer use are $2,500 a month more than the budgeted amount. The overall costs for sludge disposal, therefore, are estimated to be $8,220 per month or $98,640 more than budget for the year. As always, OMI strives to provide the best value service that is possible to deliver. This is the first time in nearly twenty years of contract operations that OMI has had to ask for a budget adjustment due to situations beyond OMI's control. Even though this amount is already more than $100,000 less than projected in mid -summer of this year OMI will obviously continue every effort to maintain expenses at the lowest level possible. Page 9 of 9 • • iUevIlle AIIKANSAS WATERAND WASTEWATER DEPARTMENT DEPARTMENTAL CORRESPONDENCE To: Mayor Dan Coody From: David Jurgens, Water and Wastewater Director j dyl l Date: November 2, 2006 rj Subject: Comparison of Rogers -Fayetteville Wastewater Trea{ent Plant Costs Staff compared operational costs between the Rogers and Fayetteville wastewater treatment plants. It is difficult to develop a valid comparison, as the size, NPDES permits, and complexities of the two operations are much different although the treatment methods are similar. Fayetteville - Roeers WWTP Operational Comparison Operational Component Rogers Jul - Sep 06 t Units Difference Rogers Three Month Total O&M Expense Fayetteville $488,950 Average Daily Flow mgd Three Month Total Plant Flow (gallons) 594,563,000 6.0 469,587,000 Three Month Average 0 & M Cost /1,000 gallons 12 6 NPDES Permit Limits // Agreement Limits $0.83 $0.01 Three Month Average Total Cost /1,000 gallons $1.24 BOD mg/I $0.02 10 998,226 2,029,692 5 TSS mg/I $0.44 10 Total Cost / lb. CBOD Removed 5 Ammonia mg/I 1.5 1,139,933 2,169,598 2 Phosphorous 1 mg/1 None // 1.0 1 // 0.5 Rogers has no NPDES phosphorous limit; Fayetteville has a 1.0. By agreements, Rogers has a 1.0 limit; Fayetteville has a 0.5. On the advice of Mike Lawrence, Rogers Water Utility, I opted for a unit -cost comparison. Costs are broken • down on a per -thousand gallons treated and a per -pound of material removed basis. The numbers are actual costs of operation for July — September, 2006 which contained wet and dry months. Sludge disposal costs are included. HDR/EES consultants who are conducting rate studies for both utilities were available. Tom Gould reviewed the analysis, and felt it was a valid comparison and that the numbers for both utilities were correct. Fayetteville - Roaers WWTP Cost Comparison Expense Element Rogers Jul - Sep 06 t Fayetteville 2 Jul - Sep 06 Difference Three Month Total O&M Expense $488,950 $887,338 $398,388 Three Month Total Plant Flow (gallons) 594,563,000 1,064,150,000 469,587,000 Three Month Average 0 & M Cost /1,000 gallons $0.82 $0.83 $0.01 Three Month Average Total Cost /1,000 gallons $1.24 $1.26 $0.02 Three Month Total Pounds CBOD Removed 998,226 2,029,692 1,031,466 O & M Cost / lb. CBOD Removed $0.49 $0.44 ($0.05) Total Cost / lb. CBOD Removed $0.74 $0.66 ($0.08) Three Month Total Pounds TSS Removed 1,139,933 2,169,598 1,029,665 O & M Cost/ Ib. TSS Removed $0.43 $0.41 ($0.02) Total Cost / Ib. TSS Removed $0.65 S0.62 ($0.03) Rogers WWTP numbers based on input from Mike Lawrence, Rogers Water Utility, using actual costs related to WWTP O&M, deducting capital and depreciation. 2' Fayetteville WWTP numbers using actual percentage of OMI contract related to WWTP O&M, thus deducting capital, depreciation, lift station, and SCADA maintenance. Fayetteville - Rogcrs WWTP Cost Comparison Oct06 vcr 2 1(12.6.06) Clarice Pearman - OMI Page 1 From: Clarice Pearman To: Jurgens, David Date: 12.6.06 5:44 PM Subject: OMI David, The Council passed your item for OMI however I do not have a signed agreements. Please let me know when I might expect signed agreements. Thanks. Clarice • • • RESOLUTION NO. 204-06 A RESOLUTION APPROVING AMENDMENT NO. 14 TO THE CONTRACT WITH OPERATIONS MANAGEMENT INTERNATIONAL (OMI) IN THE AMOUNT OF $6,104,447.88 FOR THE OPERATION AND MANAGEMENT OF FAYETTEVILLE WASTEWATER TREATMENT FACILITIES FO AND AN INCREA OF $153,000.00 FOR THE COST OF SERVICES IN 210. AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $153,000.00. 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. 14 to the contract with Operations Management International (OMI) in the amount of $6,104,447.88 for the operation and management of Fayetteville Wastewater Treatment facilities for 2007, and an increase of $153,000.00 for the cost of services if' A copy of Amendment No. 14, 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. 14 to the contract with OMI, contingent upon final approval of the FY2007 Budget. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves a Budget Adjustment in the amount of $153,000.00. PASSED and APPROVED this 5th day of December, 2006. APPROVED: ATTEST. By: DAN COODY, May By: SONDRA SMITH, City Clerk • / RESOLUTION NO. A RESOLUTION APPROVING AMENDMENT NO. 14 TO THE CONTRACT WITH •OPERATIONS MANAGEMENT INTERNATIONAL (OMI) IN THE AMOUNT OF .$6,104,447.88 FOR _THE OPERATION AND MANAGEMENT OF FAYETTEVILLE WASTEWATER TREATMENT FACILITIES FOR 2006, AND AN INCREASE OF $153,000.00 FOR THE COST OF SERVICES IN 2006; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $153,000.00. 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. 14 to the contract with Operations Management International (OMI) in the amount of $6,104,447.88 for the operation and management of Fayetteville Wastewater Treatment facilities for 2007, and an increase of $153,000.00 for the cost of services in 2006. A copy of Amendment No. 14, 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. 14 to the contract with OMI, contingent upon final approval of the FY2007 Budget. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves a Budget Adjustment in the amount of $153,000.00. PASSED and APPROVED this 5th day of December, 2006. ATTEST: By: SONDRA SMITH, City Clerk APPROVED: By: DAN COODY, Mayor • CH2MHILL loop OMI MEMORANDUM TO: Duyen Tran FROM: Andrea Nicolelli DATE: December 7, 2006 SUBJECT: Amendment No. 14 PROJECT(s): Fayetteville Attached please find two original amendments for Fayetteville Please have the client execute both originals, keeping one for their files and returning the other to my attention: Andrea Nicolelli Contract Administrator OMI, Inc. 9193 S. Jamaica Street, Suite 400 Englewood, CO 80112 If you have any questions please feel free to contact me directly at 720/286-4306. Respectfully, Andrea Nicolelli Contract Administration [(12/12/2006) Amber Wood - Fwd: OMI Contract Agenda Item Error Page 1 From: David Jurgens To: Wood, Amber Date: 12/12/2006 8:13 AM Subject: Fwd: OMI Contract Agenda Item Error »> David Jurgens 12/11/2006 9:24:03 pm »> Sondra, I just discovered an error. The 5 December meeting included the following: 4, Operations Management International (0MI): A resolution approving Amendment No. 14 to the contract with Operations Management International (OMI) in the amount of $6,104,447.88 for the operation and management of Fayetteville Wastewater Treatment Facilities for 2006, and an increase of $153,000.00 for the cost of services in 2006; and approving a budget adjustment in the amount of $153,000.00. It should have read: 4. Operations Management International (OM1): A resolution approving Amendment No. 19 to the contract with Operations Management International (OMI) in the amount of $6,109,447.198 for the operation and management of Fayetteville Wastewater Treatment Facilities for 20071 and an increase of $153,000.00 for the cost of services in 2006; and approving a budget adjustment in the amount of $153,000.00. The amendment covered operations and maintenance for 2007, and the smaller change for services in 2006. The date appears to have been correct in the text of the resolution (in the draft agenda packet) but was incorrect in the title and on the Agenda itself. I apologize for not seeing this earlier. Please give guidance as to what we need to do now. Thank you, David »> City Clerk 11/22/2006 1:31:09 pm »> Attached is a copy of the Tentative Agenda for the December 5, 2006 City Council meeting. If you have any questions please feel free to contact our office at the number listed below. Have a great holiday! City of Fayetteville City Clerk's Office 113 W. Mountain Fayetteville, AR 72701 479-575-8323 (12.15.06) Clarice Pearman - Res. 204-06 From: To: Date: Subject: Attachments: CC: Attention Nuyen: Page 1 Clarice Pearman Waste Water Treatment Plant 12.15.06 3:25 PM Res. 204-06 204-06 OMI Amendment No. 14.pdf Audit; Fell, Barbara Attached is a copy of the resolution passed by City Council, December 5, 2006. I finally got everything signed and processed. I will forward to you via interoffice mail one of two original agreements I will also forward the budget adjustment to Budget & Research. If anything else is needed please let me know. Thanks. Clarice Clarice Buffalohead-Pearman, CMC City Clerk/Treasurer Division 113 West Mountain Fayetteville, AR 72701 479-575-8309 cpearman@cl.fayetteville.ar.us