HomeMy Public PortalAboutOMI - CH2M - WWTP Operations Management Amendment July 2019AMENDMENT NO. 5
TO THE
AGREEMENT FOR OPERATIONS, MAINTENANCE AND
MANAGEMENT SERVICES FOR THE CITY OF CRESTVIEW, FLORIDA
This Amendment No, 5 to the Agreement for Operations, Maintenance and Management Services,
as it has subsequently been amended, for the City of Crestview, Florida dated October 22, 2014
(the "Agreement") is made effective this 1st day of October. 2019 by and between the City of
Crestview, Florida, a municipal corporation, whose address for any formal notice is 198 North
Wilson Street, Crestview, Florida 32536 (hereinafter "OWNER") and Operations Management
International, Inc., whose address for any formal notice is 9191 Jamaica Street, Englewood, CO
80112 (hereinafter "CONTRACTOR").
NOW THEREFORE, OWNER and CONTRACTOR agree as follows:
1. Article 4.1 is deleted in its entirety and replaced with the following:
This Agreement shall be extended by five (5) years effective October 1, 2019 and shall
remain in full force and effect through September 30, 2024. Thereafter this Agreement
shall be automatically renewed for successive terms of live (5) years unless cancelled by
either party not less than 120 days prior to expiration
2. Appendix 13, Article B.1.12 is added to this Agreement:
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13.1.12 CONTRACTOR will invest $30,000 at no costto the OWNER for the following:
B.1.12.1 Replace headworks piping & bolts including #3 discharge pipe at the
headworks screens, all three (3) 90° discharge pipe elbows at the screens,
replace all carbon steel bolts on the headworks screen discharge piping with
stainless steel,
B.1.12.2 Replace plywood siding on WWTP buildings (office and belt press room)
after installing Tyvex building wrap for weather proofing.
3. Appendix E, Article E.1.I is deleted in its entirety and replaced with the following
Article E.1.1:
E.1.1 OWNER shall pay to CONTRACTOR as compensation for services performed
under this Restated A.greernent a. Base Fee of One Million Forty Five Thousand
Twenty Eight Dollars ($1,045,028) for the period of October 1, 2019 through
September 30, 2020. Subsequent years' base fees shall be determined as hereinafter
specified. Rebateable accounts in sections E.1.4, E.1.6, E.1.8 and E.1.9 are included
in the base fee amount of $1,045,028.
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herein. Unless specifically stated all other terms and conditions of prior Amendments and 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 THE CITY OF CRESTVIEW,
INTERNATIONAL, INC.:
FLORIDA:
By: `- B 0.e,4_
Name: Kyle Holder N. f .B. Whi en
Title: Desi aced Manager Title: Mayor
.�� Date: /
Date: 7 / Lir
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TO:
CC:
FROM:
DATE:
SUBJECT:
CITY OF CRESTVIEW
AGENDA ITEM
CITY COUNCIL MEETING DATE: July 22, 2019
TYPE OF AGENDA ITEM: Consent Agenda
Mayor and City Council
City Manager, City Clerk, Staff and Attorney
Public Services Director
July 15, 2019
WWTP Contract Amendment
1. BACKGROUND:
Item # 10.1
1.1. This item was previously approved by the City Council at the March 11, 2019 council meeting.
1.2. Following the meeting the Public Services Director met with Jacobs to discuss further the base fee.
Mr. Steele had some concerns about a change in the format that showed the rebate able items in
the contract as a separate item, when prior years those items were included in the base fee.
1.3. Following the meeting, it was agreed upon to amend the contract to match the previously adopted
format.
1.4. The amount of the contract does not change, the base fee will now represent and include the
rebates, instead of them being listed separately in the contract.
1.5. In September of 2014, the contract for the operations and maintenance of the Waste Water
Treatment Plant was awarded to CH2MHi11 and approved by City Council on September 8, 2014
with the following Summary of Agreements as part of a 5-year negotiated contract term with an
additional 5-year renewal option.
1.5.1. This Agreement is the renewal option and shall extend the contract 5 years effective
October 1, 2019 and shall remain in full force and effect through September 30, 2024.
2. DISCUSSION:
2.1. CH2M OMI Inc. agrees to provide our base services for $1,045,028 from October 1, 2019 through
September 30, 2020. Subsequent years "base fees" shall be determined hereinafter as specified.
Rebate account budgets will be as stated in the agreement.
2.1.1. Rebate able accounts in sections E.1.4, E,1,6, E.1.8 and E.1.9 are now included as part of the
base fee amount of $1,045,028.
2.2. Term of the contract will be 5 years.
2.3. CH2M OMI Inc. will continue Maintenance Connection computerized maintenance
management system for the City's lift stations and wells as a cooperative effort. CH2M regional
support resources will set up the system, enter data provided by City personnel and train key staff
in the proper use of the system. If requested CH2M project personnel will assist in printing reports.
Page 1 of 2
2.4. CH2M will provide access to the City's designated personnel to review and query the wastewater
treatment plant and main lift station CMMS program.
2.5. The AMENDMENT NO. 5 as a subsequent part of the approved contract it allows for consideration
of an annual increase in labor cost and consumable operation expense relevant to the needs of the
facility. The contract also allows for consideration of an annual adjustment of the contract fee, based
upon a blended EC1/CPI numbers or a default of 2% of the base contract fee or whichever is
greater.
3. GOALS & OBJECTIVES:
3.1. This item is consistent with the goals in A New View Strategic Plan 2020 as follows;
3.1.1. Foundational- these are the areas of focus that make up the necessary foundation of a
successful local government.
3.1.1.1.1. Organizational Capacity, Effectiveness & Efficiency- To efficiently &
effectively provide the highest quality of public services
3.1.1.1.2. Infrastructure- Satisfy current and future infrastructure needs
4. FINANCIAL IMPACT:
4.1. This amendment will become effective on October 1, 2019 and is included as part of the proposed
2019-2020 budget year in the Waste Water Treatment Plant Utility Department.
5. RECOMMENDED ACTION:
5.1. Staff respectfully requests that the council approve Amendment No. 5 of the Operational &
Maintenance Contract with Ch2M OMI Inc in the amount of $1,045,028 dollars and to include all
appendix as stated in Amendment No. 5 to cover cost incurred as part of overages and rebates of
operational cost and direct the Mayor and City Clerk to execute the agreement as stated.
6. Attachments:
6.1. Signed copies of Amendment 5
6.2. Original Contract
Page 2 of 2
C112/1447.
AMENDMENT NO. 5
TO THE
AGREEMENT FOR OPERATIONS, MAINTENANCE AND
MANAGEMENT SERVICES FOR THE CITY OF CRESTVIEW, FLORIDA
This Amendment No. 5 to the Agreement for Operations, Maintenance and Management
Services, as it has subsequently been amended, for the City of Crestview, Florida dated October
22, 2014 (the "Agreement") is made effective this B O day of aleti, 2019 by and between the
City of Crestview, Florida, a municipal corporation, whose address for any formal notice is 198
North Wilson Street, Crestview, Florida 32536 (hereinafter "OWNER") and Operations
Management International, Inc., whose address for any formal notice is 9191 Jamaica Street,
Englewood, CO 80112 (hereinafter "CONTRACTOR").
NOW THEREFORE, OWNER and CONTRACTOR agree as follows:
1. Article 4.1 is deleted in its entirety and replaced with the following:
This Agreement shall be extended by five (5) years effective October 1, 2019 and shall
remain in full force and effect through September 30, 2024. Thereafter this Agreement
shall be automatically renewed for successive terms of five (5) years unless cancelled by
either party not less than 120 days prior to expiration
2. Appendix B, Article B.1.12 is added to this Agreement:
B.1.12 CONTRACTOR will invest $30,000 at no cost to the OWNER for the following:
B.1.12.1 Replace headworks piping & bolts including #3 discharge pipe at the
headworks screens, all three (3) 90° discharge pipe elbows at the screens,
replace all carbon steel bolts on the headworks screen discharge piping with
stainless steel.
B.1.12.2 Replace plywood siding on WWTP buildings (office and belt press room)
after installing Tyvex building wrap for weather proofing.
3. Appendix E, Article E.1.1 is deleted in its entirety and replaced with the following Article
E.1.1:
E.1.1 OWNER shall pay to CONTRACTOR as compensation for services performed
under this Restated Agreement a Base Fee of Seven Hundred Twenty Eight
Thousand and Twenty Eight Dollars ($728,028) for the period of October 1, 2019
through September 30, 2020. Subsequent years' base fees shall be determined as
hereinafter specified.
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This Amendment 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 prior Amendments
and 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 THE CITY OF CRESTVIEW,
INTERNATIONAL, INC.:
Name: Kyle Holder
Title: Designated Manager
FLORIDA:
By(C 0 `� (4L
Name: David Cadle
Title: ayor
Date: 2JJ
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