HomeMy WebLinkAbout209-07 RESOLUTIONRESOLUTION NO. 209-07
A RESOLUTION APPROVING CONTRACT AMENDMENT NO.
15, WHICH EXTENDS FOR ONE YEAR THE CONTRACT WITH
OPERATIONS MANAGEMENT INTERNATIONAL (OMI) IN
THE AMOUNT OF $6,797,685.28 FOR THE OPERATION,
MAINTENANCE AND MANAGEMENT OF FAYETTEVILLE
WASTEWATER TREATMENT FACILITIES FOR 2008; AND
APPROVING A 5% CONTINGENCY IN THE AMOUNT OF
$340,000.00.
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 Contract Amendment No. 15, which extends for one year the
contract with Operations Management International (OMI) in the amount of
$6,797,685.28 for the operation, maintenance and management of Fayetteville
Wastewater Treatment facilities for 2008. A copy of Amendment No. 15, marked
Exhibit "A" is attached hereto, and made a part hereof.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves a 5% contingency in the amount of $340,000.00.
Section 3. That the City Council of the City of Fayetteville, Arkansas
hereby authorizes the Mayor to sign Amendment No. 15 to the contract with ,,,,
OMI, contingent upon final approval of the FY2008 Budget. ✓ T < h/,
PASSED and APPROVED this 4th day of December, 2007.
APPROVED: ATTEST.
By: WG ^"' 1. 1;2By: lo
DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer
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AMENDMENT NO. 15
TO
AGREEMENT FOR OPERATIONS, MAINTENANCE AND MANAGEMENT SERVICES
FOR THE CITY OF FAYETTEVILLE, ARKANSAS WASTEWATER TREATMENT PLANTS
THIS AMENDMENT NO. 15 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 1" day of January, 2008, 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 2008 the City of Fayetteville shall pay to OMI
the actual cost of services performed plus an annualized management fee of One Hundred
Eighteen Thousand Seven Hundred Fifty Dollars and Fifty Three Cents ($118,750.53).
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 2008 shall be Six Million Seven
Hundred Ninety Seven Thousand Six Hundred Eighty Five Dollars and Twenty Eight
Cents ($6,797,685.28). 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 4.8 is hereby deleted in its entirety and replaced with the following Article 4.8:
4.8 OMI agrees to incur up to One Hundred Nine Thousand Five Hundred Forty Two Dollars
and Ninety Cents ($109,542.90) 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 Nine Thousand Five Hundred Forty Two
Dollars and Ninety Cents ($109,542.90) in any year of this Agreement.
Page 1 of 14
4. Article 7.1 is hereby deleted in its entirety and replaced with the following Article 7.1:
7.1 This initial term of this Agreement shall be five (5) years and four (4) months
commencing on September 1, 1994 and ending on December 31, 1999, followed by two
(2) successive five (5) year options, each renewable at the sole discretion of the Owner.
This initial term provided for fifteen (15) years of contract service, of which the City has
opted to use fourteen (14), with the current agreement set to expire at the end of the
calendar year 2008. The City of Fayetteville is amending its second extension option for a
period of one additional year with the new ending date for the contract period to be
December 31, 2009. All contract periods and renewals are subject to and contingent upon
yearly budget approval by the Owner.
5. Appendices B, C, D, E, J, and K are hereby deleted in their entirety and replaced with the attached
Appendices B, C, D, E, J, and K.
This Amendment No. 15, 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.
_flat
0 0 • .ger ' . Quayle
Sen .r Vice Pr=i
Date:
CITY OF FAYETTEVILLE
Dan Coody
Mayor
Date: /2--r 07
ATTEST:
Sondra Smith
City Clerk
Date:
Page 2 of 14
is - 6 - 07
Apuendiz 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 Noland Wastewater
Treatment Plant located at:
1400 North Fox Hunter Road
Fayetteville, Arkansas
b) Upon the beginning of operations, all equipment, vehicles, grounds and facilities now
existing within the present property boundaries of or being used to operate the City of
Fayetteville's West Side Wastewater Treatment Plant located at:
5 North Broyles Road
Fayetteville, Arkansas
c) All equipment, grounds, and facilities now existing within the present property
boundaries of pump stations described as follows:
WWI 978 E. Zion Rd (Lowe's -Zion Rd PS)
WW2 3500 E. Mission (Timbercrest PS)
WW3 2805 N. Salem Rd (Crystal Springs PS)
WW4 691 W. Poplar St (Poplar PS)
WW5 3896 N. Gregg Ave (Gregg Ave PS)
WW6 3021 N. Old Wire Rd (Old Wire PS)
WW7 2034 N. Sunshine Rd (Hamestring PS)
WW8 729 W. North St (North St PS)
WW9 1336 N. Porter Rd (Porter Rd PS)
W W 10 716 N. Futrall Dr (Futrall Dr PS)
WWI 1 4412 W. 6th St (Farmington East PS)
W W 12 398 N. Double Springs Rd (Farmington West PS) - Farmington
W W 13 878 S. Dead Horse Mountain Rd (Dead Horse Mountain PS)
W W 14 1820 S. Armstrong Ave (Industrial Park PS)
W W 15 203 E. 291 Circle (Country Club PS)
W W 16 516 W. Ernest Lancaster Dr (Airport North PS)
W W 18 202 N. Sandy (Greenland PS) - Greenland
W W 19 933 S. Mally Wagnon Rd (Malty Wagnon PS)
WW20 3212 N. Highway 112 (Truckers Dr PS)
W W21 1720 S. Armstrong Ave (Happy Hollow PS)
WW22 630 N. Double Springs Rd (Owl Creek PS)
WW23 440 E. Fairway Ln (Masters PS)
WW24 265 W. Ernest Lancaster Dr (Airport East PS)
WW25 551 W. Aster Ave (Willow West PS)
WW26 74 S. Kestrel (Sequoyah Preserve PS)
WW27 1031 River Meadows Dr (Stonebridge Meadows Phase 1 PS)
WW28 1603 Plantation Avenue (Heritage Village PS)
WW29 390 N. Cato Springs Rd (Bohannan PS) - Greenland
WW30 2423 N. Rupple Rd (Holt Middle School PS)
WW32 478 N. Durango Place (Silverthorne PS)
WW33 4644 N. Crossover Rd (Stonewood PS)
WW34 4572 S. School Ave (Airport South PS)
WW35 3083 W. 6th St (Lowe's -6'h Street PS)
WW36 1642 N. Willowbrook Dr (Skyler Place PS)
WW37 3848 W. Edgewater Dr (Clabber Creek PS)
WW38 3710 E. Zion Rd (Copper Creek Phase 2 PS)
WW39 2392 N. Kenswick Ave (Crofton Manner PS)
W W40 1811 S. Cherry Hills Dr (Stone Bridge Meadows Phase 2 PS)
W W41 1608 S. Springlake Dr (Crescent Lake PS)
WW42 2588 N. Firefly Catch Dr (Clabber Creek Phase 3 PS)
WW43 196 S. Woodsprings Dr. (Timber Trails PS)
WW44 (Legacy Pointe Phase 4 PS)
WW45 (Timberlake Office Park PS)
WW46 3788 E. Spyglass Hill Dr (Stonebridge Meadows Phase 5 PS)
WW47 (Embry Acres)
d) All equipment, grounds, and facilities now existing within the present property
boundaries of or being used to operate the City of Fayetteville's Land Application Site
located east of the Noland wastewater treatment facility across the White River.
e) All equipment, grounds, and facilities associated with or being used to complete routine
O&M activities for the City of Fayetteville's Mitigated Wetlands Site now existing
within the present property boundaries located north of the West Side Wastewater
Treatment Plant. This excludes specialized contract maintenance activities such as
compliance monitoring, burning, herbicide application, etc.
0 The potable water SCADA system at the following locations:
WI 215 W. 24th St (South Mountain)
W2 844 N. Crossover Rd (Hyland Park)
W4 1016 E. Ash St
W5 707 E. Rogers Dr
W6 456 E. Baxter Ln
W7 707 E. Rogers Dr
W8 133 N. Sang Ave
W9 1170 E. South Skyline Dr
(Mt. Sequoyah)
W I0 1044 E. Township Rd
W11 3280 W. Judge Cummins Rd
(Kessler Mountain)
W12 7001 E. Mission (Highway 45 Valve
Station)
W13 1589 Fire Tower Road (Goshen)
W14 17301 Lake Sequoyah Rd (Round Mtn)
W15 14360 Round Mt Comm Rd
(Round Mountain)
W16 22032 Fire Tower Rd
Pump Station
Pump Station
Pump Station
Pump Station
Ground Storage Tank (2 each)
Ground Storage Tank (2 each)
Elevated Storage Tank
Elevated Storage Tank
Elevated Storage Tank
Ground Storage Tank (2 each)
Pressure -reducing Valve
Pump Station and Ground
Storage Tank
Pump Station
Stand Pipe
Stand Pipe
(Benson Mountain)
W17 3265 N Gulley Rd
W18 3788 N Gulley Rd
W19 3370 S Coach Rd
W20 2098 Woodcliff Rd
W21 2210 N. Old Wire Rd
W22 2800 N. Old Missouri Rd
W23 3385 N. Par Ct
W24 3023 E. Joyce Blvd
W25 Ozarks Regional Transit (Hwy 412)
W26 Township Tank Weather Station
2435 S. Industrial Dr
12141 Ed Edwards Rd
Elevated Storage Tank
Pump Station
Pump Station
Surge Tank
Valve
Flowmeter
Valve
Valve
Valve
Weather Station
Water & Sewer Ops Center
Mt. Robinson Tower Site
C.1
Appendix C
NPDES PERMIT AND PROJECT CHARACTERISTICS
OMI will operate the Paul R. Noland Wastewater Treatment Plant and the West Side Wastewater
Treatment Plant so that effluent will meet the requirements of NPDES permit numbers
AR0020010 and AR0050288, respectively. OMI shall be responsible for meeting the effluent
quality requirements of Fayetteville's NPDES permits unless one or more of the following occurs;
(1) the plant influent does not contain adequate nutrients to support operation of the treatment
plant's biological processes and/or contains biological toxic substances which cannot be removed
by the existing processes and facilities; (2) the maximum monthly flow does not exceed 16.9
MGD for the Noland WWTP or 17.8 MGD for the West Side WWTP; (3) the annual flow,
influent BOD5, and/or suspended solids exceeds the plant design parameters which are:
Annual Average
Paul R. Noland
WWTP
West Side
WWTP
Unit
Influent Flow
11.2
10.0
million gallons
per day (mgd)
Influent BOD
26,370
14,595
pounds per day
Influent TSS
20,620
14,595
pounds per day
Influent TKN
960
2,919
pounds per day
Influent Phosphorus
680
584
pounds per day
The above characteristics are the plant designed annual averages. Any change of ten percent
(10%) or more in any of these characteristics, based upon a twelve (12) month moving average,
will constitute a change in scope.
C.2 In the event any one of the plant influent characteristics, suspended solids, BOD5, and/or flow,
exceeds the parameters listed above, OMI shall return the plant effluent to the characteristics
required by the NPDES permit in accordance with the following schedule after plant influent
characteristics retum to within design parameters.
Characteristics Exceeding
Listed Parameters By
10% or less
Above 10% Less than 20%
20% and Above
Recovery Period
Maximum
5 days
10 days
30 days
Not withstanding the above schedule if the failure to meet effluent quality limitations is caused by
the presence of biological toxic substances or the lack of adequate nutrients in the influent, then
OMI will have a thirty (30) day recovery period after the influent is free from said substances or
contains adequate nutrients.
Page 6 of 14
C.3 OMI shall not be responsible for fines or legal action as a result of discharge violations within the
period that influent exceeds design parameters, does not contain adequate nutrients, contains
biologically toxic substances (that exceed process inhibiting levels or creates concentrations
exceeding application or discharge limitations), and the subsequent recovery period.
Page 7 of 14
D.1
Appendix D
INDUSTRIAL WASTE DISCHARGES AND MONITORING PROGRAM
a) Conduct a survey of the industrial user base 1 time per 3 years Update, as required, the
list of significant industrial users (Sills) 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 to meet or exceed
Federal and State requirements.
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) hnplement 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 non-compliance 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)
g)
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.
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.
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 8 of 14
D.2 Industrial Waste Dischargers and Monitoring Program
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
Custom Powder Coating Services, Inc.
1629 W. Farmington St.
Fayetteville, AR 72701
251-0500
Cadmium, chromium, copper, lead, nickel,
silver, zinc, cyanide
Danaher Tool Group/K-D Tools
2900 City Lake Road
Fayetteville, AR 72701
Mr. Dwight Canfield
442-7779 ext. 207
Cadmium, chromium, copper, lead, nickel,
silver, zinc, cyanide
Elkhart Products Corporation
PO Box 1129
Fayetteville, AR 72702
Mr. Jerry Whiteside
443-2367 ext. 1724
Chromium, copper, lead, nickel, zinc, oil &
grease
Hiland Dairy Company
PO Box 3478
Fayetteville, AR 72702
Mr. Dale Schoen
521-1707
Biochemical oxygen demand, total suspended
solids, phosphorus, pH, oil & grease
Marshalltown Tools
2200 Industrial Drive
Fayetteville, AR 72701
Mr. Robert O'Connell
521-4306 ext. 150
Cadmium, chromium, copper, lead, nickel,
silver, zinc, cyanide
Pinnacle Foods Corporation
PO Box G
Fayetteville, AR 72702
Mr. Patrick Abshier
443-3451 ext. 216
Biochemical oxygen demand, total suspended
solids, phosphorus, pH, oil & grease
Superior Industries International, Inc.
1901 Borick Drive
Fayetteville, AR 72701
Mr. Garnett Wise
443-7870 ext. 6331
Cadmium, chromium, copper, lead, nickel,
silver, zinc, cyanide
Tyson Foods, Inc.
2615 S. School
Fayetteville, AR 72701
Mr. Richard Stockton
521-0677 ext. 420
Biochemical oxygen demand, total suspended
solids, phosphorus, pH, oil & grease
Page 9 of 14
Appendix E
VEHICLE AND MOBILE EQUIPMENT DESCRIPTION
Unit #
Unit Description
Year
82
Sykes 6" Pump/Trailer
1995
266
GMC V -Jimmy
1995
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 4 X 4, Flatbed
2002
551
Ford 3930 Gen Purpose Tractor, 2X4
1995
556
Ford/New Holland 8160 Tractor w/Loader
1997
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 Conv Tractor
1996
751
Sterling LT9500 Truck
2006
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
1092
Ford Explorer
2002
2004
Ford Ranger, 4X4
1997
2007
Ford Ranger,
4X4
1997
Page 10 of 14
Appendix E
VEHICLE AND MOBILE EQUIPMENT DESCRIPTION (CONTINUED)
2089
Chevy Silverado, 4X4, Reg. Cab
2006
2090
Chevy Silverado, 4X4, Reg. Cab
2006
2103
Ford 150, 1/2 Ton, 4WD, Ext. Cab
2006
5001
John Deere 6615 Tractor
2007
5002
John Deere 6615 Tractor
2007
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
1999
9088
Lufkin ULD -38 Trailer
2006
20374
Kenworth T-800 Tractor
1999
22246
Kenworth T-800 Tractor
1999
39605
Kenworth Tractor
2000
New Holland 740 Round Baler
2007
New Holland 1412 Discbine
2006
Portable Generator for LS
2005
Lufkin ULD -38 Trailer
2004
Lufkin ULD -38 Trailer
2004
Lufkin ULD -38 Trailer
2004
Page 11 of 14
Aaaendrx J
COST DETAIL
The annualized estimated costs for calendar year 2008 are as follows:
The following are some of the major reasons for cost changes:
The scope of work is expanded to include the operations startup of the new West Side Wastewater
Treatment Plant (WWTP), the operations and maintenance of the new facility, and limited routine
maintenance of the wetland at the West Side WWTP. This minimal cost increase is made possible
by heavily leveraging OMI's experience and expertise in the wastewater treatment industry and
through significant job sharing within the OMI and CH2M HILL network.
Page 12 of 14
Current 2007
Proposed 2008
Direct Labor & Benefits
$ 2,180,396
$ 2,556,326
Labor Markup @ 15%
$ 327,059
$ 383,449
Electricity
$ 697,000
$ 865,615
Other Direct Costs
$ 1,927,478
$ 2,461,348
Other Direct Costs Markup @ 10%
$ 192,748
$ 246,135
Subtotal
$ 5,324,681
$ 6,512,872
Fixed Fee
$ 105,511
$ 118,751
Lift Station Odor Control
$ 153,978
$ 109,543
Capital Item Amortization
$ 119,712
$ 56,520
Total Estimated O&M Budget
$ 5,703,882
$ 6,797,685
Odor Control System Rehabilitation
$ 118,742
-
Bar Screen Relocation
$ 39,422
-
Aerator Rehabilitation
$ 183,085
-
HMI Integration for West Side WWTP
$ 59,316
-
Total Estimated Annualized Budget
$ 6,104,448
$ 6,797,685
Net Increase from 2007 to 2008
$ 693,237
The following are some of the major reasons for cost changes:
The scope of work is expanded to include the operations startup of the new West Side Wastewater
Treatment Plant (WWTP), the operations and maintenance of the new facility, and limited routine
maintenance of the wetland at the West Side WWTP. This minimal cost increase is made possible
by heavily leveraging OMI's experience and expertise in the wastewater treatment industry and
through significant job sharing within the OMI and CH2M HILL network.
Page 12 of 14
2. Electrical budget has been increased by twenty four percent (24%) to allow for the electrical usage
for the West Side WWTP and a reduction in the electrical consumption from the Noland WWTP.
3. Reduction in lift station odor costs are expected as a result of the reduction in overall force main
detention related to the shorter pumping distances to the new West Side WWTP
4. Reduction in Capital Item Amortization. In June 2008, the City will complete the payment of the
OMI financed purchase of the sludge handling equipment; which includes a 2 -meter Andritz Belt
Filter Press and three tractor -trailer combinations. OMI purchased the equipment in 2003 as the
City was required to begin hauling sludge to land fills rather than continuing land application.
Completion of the four supplemental capital improvement projects related to the ongoing
Wastewater System Improvement Project (WSIP) that were included in the 2007 budget.
The following table delineates the cost centers contained in the above -annualized estimated costs:
Category Description
Wastewater
Division
Administration
& SCADA
Noland WWTP
O&M (mci.
land apphcation
site)
West Side
WWTP O&M
(incl. wetlands
mitigation site)
Lab &
Industrial
Pretreatment
Program
Lift Station
Maintenance
Direct Labor
470,960
810,149
770,699
227,802
276,717
Labor Markup, 15%
70,644
121,522
115,605
34,170
41,508
Electricity
534,103
331,512
Direct Expense
338,775
1,284,095
630,774
84,419
123,285
Expense Markup, 10%
33,878
128,409
63,077
8,442
12,329
Capital Item
Amortization
56,520
Lift Station Odor Control
109,543
Fixed Fee
118,751
Totals
$ 1,033,007
$ 2,934,798
$ 1,911,667
$ 354,833
$ 563,381
Grand Total
$6,797,685
Page 13 of 14
Appendix K
WSIP CUTOVER/DEMOLITION PLANNING AND IMPLEMENTATION
The ongoing Wastewater System Improvement Project (WSIP) will require significant modification of a
number of existing sewer lines and lift stations This will include fully decommissioning several lift
stations after rerouting the flow to the new West Side WWTP, and salvaging any remaining useful
equipment. Several other stations will require modification and/or rehabilitation to enable them to
function properly under the new flow management and treatment scenario. The precise scope of this work
has not yet been determined and will be defined by the City's WSIP team. Performing the actual work
required can be most efficiently and cost-effectively performed by existing wastewater treatment plant and
lift station personnel over a relatively long time frame. The work will begin at the same time the new West
Side WWTP is placed in service in May of 2008 but will likely not be completed until sometime in early
2009. As this project will be very closely intertwined with ongoing operation and maintenance of the
overall sewer lift station/collection system, the new West Side WWTP and the existing Noland WWTP,
and due to the time involved, it is understood that the City's intention is to sign an out -of -scope letter
agreement with CH2M HILL OMI to perform this work when the full scope has been identified. This
agreement should be in place in early 2008 but must in any case be executed before the startup of the West
Side WWTP.
Page 14 of 14
David Jurgens
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
4 -Dec -07
City Council Meeting Date
Wastewater Treatment
Division
Action Required:
s
�z/q/o7
ao9
04'/
4nifilAwei/S
Water/Wastewater
Department
Approval of Amendment Number 15 with Operations Management International, Inc. for operation, maintenance and
management of wastewater treatment facilities and activities for 2008, in the amount of $6,797,685.28, approval a 5%
contingency of $340,000, and approval of a one year extension of the contract to 2009.
$7,137,685.28
Cost of this request
5400.5100.5328.00
Account Number
Project Number
Budgeted Item
XX
7,137,685.28
Category/Project Budget
Funds Used to Date
7,137,685.28
Remaining Balance
Budget Adjustment Attached
Water/Wastewater
Program Category / Project Name
Wastewater Treatment
Program / Project Category Name
Water and Sewer
Fund Name
Depart e
r 'Ih
t Dincctor
City Attorney
Finance and Internal Service Director
Mayor
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Date
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Date
Date
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
94-94
August, 1994
412
Received in Ci e
D
ce
Received in Mayor's Office
Comments:
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CITY COUNCIL AGENDA MEMO
To: Mayor and City Council ("\
From: David Jurgens, Water/Wastewater Director \v gin S
Date: November 6, 2007
Subject: Approval of Amendment Number 15 with Opera Management International, Inc. for
operation, maintenance and management of wastewater treatment facilities for 2008
City Council Meeting of December 4, 2007
RECOMMENDATION
Fayetteville City Administration recommends approval of Amendment Number 15 with Operations Management
International, Inc. (OMI) for operation, maintenance and management of wastewater treatment facilities for 2008,
in the amount of $6,797,685.28, approval of a 5% contingency of $340,000 and approval of a one year extension of
the contract to 2009.
BACKGROUND
The City of Fayetteville's first private operating contract commenced in 1987 with this year marking 21 years of
services from OMI. In May 2003, Fayetteville City Council approved Amendment No. 9 extending this agreement
through December 31, 2008.
The scope of services provided by OMI include: (1) operate and maintain the Noland Wastewater Treatment Plant
(WWTP); (2) operate and maintain the West Side WWTP; (3) operate and maintain 45 wastewater pump stations;
(4) administer the City's NPDES discharge permits; (5) manage the City's sludge disposal program; (6) manage the
City's industrial pretreatment program; (7) support the SCADA (supervisory control and data acquisition system)
network that monitors water and wastewater facilities; (8) pursue operation economies, efficiencies, and permit
compliance; and (8) participate in the construction of the Wastewater System Improvement Project (WSIP).
To encourage cost saving operations, the contract contains an incentive provision whereby budget underruns are
distributed 87.5% to the City and 12.5% to OMI.
DISCUSSION
Operating expenses for 2008 contain a $693,237 increase from 2007 due primarily to the operation of the West Side
WWTP, scheduled to begin receiving wastewater flow in May, 2008. This increase is lower than anticipated due to
the detailed analysis of expected treatment costs, and OMI's completion of several capital projects in 2007. A
detailed breakdown of cost, with comparisons to 2007, is in Appendix J of the amendment.
The West Side WWTP construction and system -wide tie -over operations will not be completed until mid -2009.
Staff thus recommends the OMI contract be extended for one year, to December 31, 2009. Given the complexities
of this transition and startup, it will not be in the City's best interests to be completing construction, starting
operations, tying over the collection system, and simultaneously soliciting proposals for a new operating firm.
Additionally, the scope of work for wastewater operations at both WWTPs can be much better defined after a full
year's operation is completed under the new configuration. This is the final extension allowed by the original
agreement; new proposals must be solicited in 2009 for operations in 2010.
With the uncertainties associated with startup of the West Side WWTP, staff recommends a 5% contingency to
cover unanticipated operations and maintenance items that may arise.
Tie -over activities, which includes work at over 12 lift stations, is expected to be executed by OM1 under a separate
letter agreement in early 2009 when the scope of work can be fully defined.
BUDGET IMPACT
The 2008 cost of $6,797,685.28 and $340,000 contingency are included in the proposed 2008 Budget; authorization
of Amendment No. 15 will be contingent upon the budget approval.
OMI Amendment No 15-2008 CC Memo Nov07.doc
RESOLUTION NO.
A RESOLUTION APPROVING CONTRACT
AMENDMENT NO. 15, WHICH EXTENDS FOR ONE
YEAR THE CONTRACT WITH OPERATIONS
MANAGEMENT INTERNATIONAL (OMI) IN THE
AMOUNT OF $6,797,685.28 FOR THE OPERATION,
MAINTENANCE AND MANAGEMENT OF
FAYETTEVILLE WASTEWATER TREATMENT
FACILITIES FOR 2008; AND APPROVING A 5%
CONTINGENCY IN THE AMOUNT OF $340,000.00.
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 Contract Amendment No. 15, which extends for one year the
contract with Operations Management International (OMI) in the amount of
$6,797,685.28 for the operation, maintenance and management of Fayetteville
Wastewater Treatment facilities for 2008. A copy of Amendment No. 15, marked
Exhibit "A" is attached hereto, and made a part hereof.
Section 2. That the City Council of the City of Fayetteville, Arkansas
hereby approves a 5% contingency in the amount of $340,000.00.
Section 3. That the City Council of the City of Fayetteville, Arkansas
hereby authorizes the Mayor to sign Amendment No. 15 to the contract with
OMI, contingent upon final approval of the FY2008 Budget.
PASSED and APPROVED this 4th day of December, 2007.
APPROVED: ATTEST.
By: By:
DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer
AMENDMENT NO. 15
TO
AGREEMENT FOR OPERATIONS, MAINTENANCE AND MANAGEMENT SERVICES
FOR THE CITY OF FAYETTEVILLE, ARKANSAS WASTEWATER TREATMENT PLANTS
THIS AMENDMENT NO. 15 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 1SI day of January, 2008, 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 2008 the City of Fayetteville shall pay to OMI
the actual cost of services performed plus an annualized management fee of One Hundred
Eighteen Thousand Seven Hundred Fifty Dollars and Fifty Three Cents ($118,750.53).
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 2008 shall be Six Million Seven
Hundred Ninety Seven Thousand Six Hundred Eighty Five Dollars and Twenty Eight
Cents ($6,797,685.28). 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 4.8 is hereby deleted in its entirety and replaced with the following Article 4.8:
4.8 OMI agrees to incur up to One Hundred Nine Thousand Five Hundred Forty Two Dollars
and Ninety Cents ($109,542.90) 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 OM1 personnel.
OMI will rebate to the City of Fayetteville the entire amount that actual lift station odor
control expenses are less than One Hundred Nine Thousand Five Hundred Forty Two
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Dollars and Ninety Cents ($109,542.90) in any year of this Agreement.
Article 7.1 is hereby deleted in its entirety and replaced with the following Article 7.1:
7.1 This initial term of this Agreement shall be five (5) years and four (4) months
commencing on September 1, 1994 and ending on December 31, 1999, followed by two
(2) successive five (5) year options, each renewable at the sole discretion of the Owner.
This initial term provided for fifteen (15) years of contract service, of which the City has
opted to use fourteen (14), with the current agreement set to expire at the end of the
calendar year 2008. The City of Fayetteville is amending its second extension option for a
period of one additional year with the new ending date for the contract period to be
December 31, 2009. All contract periods and renewals are subject to and contingent upon
yearly budget approval by the Owner.
5. Appendices B, C, D, E, J, and K are hereby deleted in their entirety and replaced with the attached
Appendices B, C, D, E, J, and K.
This Amendment No. 15, 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 CITY OF FAYETTEVILLE
INTERNATIONAL, INC.
Roger B. Quayle Dan Coody
Senior Vice President Mayor
Date: Date:
ATTEST:
Sondra Smith
City Clerk
Date:
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