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Home My WebLink About186-20 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 186-20 File Number: 2020-0520 CH2M HILL ENGINEERS, INC.: A RESOLUTION TO APPROVE AN OUT -OF -SCOPE AGREEMENT WITH CH2M HILL ENGINEERS, INC. TO PERFORM OR SUBCONTRACT REPAIRS TO THE THERMAL DRYER AT THE BIOSOLIDS MANAGEMENT SITE IN EXCESS OF $10,000.00 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 an out -of -scope agreement with CH2M Hill Engineers, Inc., a copy of which is attached to this Resolution, authorizing CH2M Hill Engineer's, Inc. to perform or subcontract repairs to the thermal dryer at the Biosolids Management Site in excess of $10,000.00. PASSED and APPROVED on 7/7/2020 Attest: ER K Kara Paxton, City Clerk Treasurer :may•.NSN 9,p� S 70, 14ON O n,%�0 injil Page 1 Printed on 7=0 "�. 113WestMountainStreet City of Fayetteville, Arkansas Fayetteville, AR 72701 — (479) 575-8323 Text File File Number: 2020-0520 Agenda Date: 7/7/2020 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: A. 14 CH2M HILL ENGINEERS, INC.: A RESOLUTION TO APPROVE AN OUT -OF -SCOPE AGREEMENT WITH CH2M HILL ENGINEERS, INC. TO PERFORM OR SUBCONTRACT REPAIRS TO THE THERMAL DRYER AT THE BIOSOLIDS MANAGEMENT SITE IN EXCESS OF $10,000.00 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 an out -of -scope agreement with CH2M Hill Engineers, Inc., a copy of which is attached to this Resolution, authorizing CH2M Hill Engineer's, Inc. to perform or subcontract repairs to the thermal dryer at the Biosolids Management Site in excess of $10,000.00. City of Fayetteville, Arkansas Page 1 Printed on 71812020 Tim Nyander Submitted By City of Fayetteville Staff Review Form 2020-0520 Legistar File ID 7/7/2020 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 6/18/2020 WASTEWATER TREATMENT (730) Submitted Date Division / Department Action Recommendation: Staff recommends the approval an Out -Of -Scope Agreement with CH2M Hill, Inc. (CH2M) for performing repairs to the Thermal Dryer at the Biosolids Management Site. Budget Impact: N/A N/A Account Number N/A Project Number Budgeted Item? NA Current Budget Funds Obligated Current Balance Does item have a cost? NA Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget Fund N/A Project Title S - V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE PAO ARKANSAS MEETING OF JULY 7, 2020 TO: Mayor Lioneld Jordan THRU: Susan Norton, Chief of Staff FROM: Tim Nyander, Utilities Director DATE: June 18, 2020 CITY COUNCIL MEMO SUBJECT: Out -Of -Scope Agreement with CH2M Hill Engineers, Inc. for Thermal Dryer Repairs at the Biosolids Management Site RECOMMENDATION: Staff recommends the approval an Out -Of -Scope Agreement with CH2M Hill, Inc. (CH2M) a wholly owned subsidiary of Jacob's Engineering Group, Inc. for performing repairs to the Thermal Dryer at the Biosolids Management Site. BACKGROUND: CH2M Hill is currently under contract to provide water and sewer operation and maintenance services to the City's water and sewer systems. This agreement includes the management, operation and maintenance of the City's Biosolids Management Site. The Biosolids Management Site utilizes a 24-cubic yard Fenton Thermal Dryer system to convert wet biosolids to a Class -A fertilizer. Biosolids, a dewatered microbial biomass, is the byproduct of the city's wastewater biological nutrient removal process. The Noland and West Side treatment facilities produce an average of over 100,000 pounds of dewatered biosolids every day. The thermal dryer, in combination with the site's solar house dryers, reduces the daily biosolids volume down to approximately 15,000 lbs. of Class -A, Exceptional Quality fertilizer. The nearly full-time biosolids dryer operation saves the city significant landfill costs annually, as well as allows for beneficial reuse of the biosolids material. DISCUSSION: As the thermal dryer ages, repairs to continue its operation have become more frequent. The dryer is nearly the only piece of major equipment in the treatment process that does not have a second unit for redundancy. When the dryer is being repaired, each day that it is inoperable requires staff to transport partially dewatered biosolids to the landfill for disposal. The average cost for landfill disposal is approximately $2,500 per day. This Out -of -Scope Agreement will allow CH2M to directly perform or subcontract repairs to the dryer in excess of $10,000, which is currently the threshold for direct repairs as specified in the Agreement for Operations and Maintenance between CH2M and the City of Fayetteville. This Out -Of -Scope agreement will facilitate the expedited repair of the thermal dryer, thus saving funds Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 by reducing the landfill disposal costs. The repair services performed will be contingent on the approval of the City's Utilities Director. The Out -Of -Scope Agreement will allow the repairs to be performed through December 31, 2020. BUDGET/STAFF IMPACT: CH2M will invoice these charges, along with the other Operations and Maintenance charges, the month after the costs are incurred in accordance with Section D.2.4 of the current contract. Attachments: Out -Of -Scope Letter Agreement — BMS Dryer Subcontract 2 Jacobs June 18, 2020 Mr. Tim Nyander City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 Subject: Out of Scope Letter Agreement- BMS Dryer Subcontract Dear Mr. Nyander In order to facilitate the expedited repair of the thermal dryer at the Biosolids Management Site, the City of Fayetteville (the "City") has requested for CH2M HILL Engineers, Inc. ("CH2M") to perform certain services which are ancillary to the services provided by CH2M to the City under the terms of the Agreement for Operations and Maintenance Services dated December 15, 2009 (the "Agreement") between the parties. The additional Out of Scope services will be performed as set forth below: What is being provided: Capital Expenditures (as defined in Section B.2 of the Agreement) related to the Thermal Dryer Repairs at Biosolids Management site, more specifically allowing CH2M to perform or subcontract performance of repairs to the dryer in excess of $10,000 directly. When it is being provided: The Services will be provided upon approval of this Out of Scope Letter Agreement by the City's Utility Director and continue through December 31, 2020. Price of services: The cost of services under this Out of Scope Letter Agreement shall be in accordance with Section D.2.3 of the Agreement, as it has subsequently been amended.. Payment terms: Invoices shall be paid in accordance with D.2.4 of Amendment 11 to the Agreement dated December 5, 2019. Page 2 of 2 All other terms and conditions of the Agreement, as it has subsequently been amended, between CH2M and The City of Fayetteville remain in full force and effect. If these terms are agreeable to you, please sign both copies of this letter. We will return one fully executed original for your files. CH2M appreciates the opportunity to provide these additional services to the City of Fayetteville. Sincerely, Greg y0eeks / L Both parties indicate their approval of the above -described services by their signature below. Authorized CH2M: Name: Steve Carpenter Title: Manager of Projects Date: 06/18/2020 Authorized City of Fayetteville, Arkansas: Title: Mayor Date: -71-711