HomeMy WebLinkAbout1/21/2015 - STAFF REPORTS - 2.L. PALM Spy
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Date: January 21, 2015 CONSENT CALENDAR
Subject: EXTENSION OF VEOLIA WEST OPERATING SERVICES, INC.,
WASTEWATER SERVICES (OPERATIONS AND MAINTENANCE)
CONTRACT TO JUNE 30, 2015
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
The existing contract with Veolia West Operating Services, Inc., (Veolia), for operation
of the City's wastewater treatment plant and maintenance of the City's sewer collection
system has been extended through February 1, 2015, to allow staff an opportunity to
complete negotiations with Veolia. An extension through July 1, 2015, is recommended
to allow for completion of the negotiations.
RECOMMENDATION:
1) Approve Amendment No. 13, to the Amended and Restated Agreement No. 4123
with Veolia West Operating Services, Inc., (formerly Veolia Water North America-
West, LLC) for Wastewater Services (Operations and Maintenance); and
2) Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
On September 1, 1999, the City of Palm Springs entered into an agreement with U.S.
Filter Operating Services, Inc. for the operation and maintenance services for the City's
Waste Water Treatment Plant. On February 2, 2004, U.S. Filter Operating Services
officially became known as Veolia Water North America Operating Services, Inc. and
subsequently Veolia West Operating Services, Inc. (Veolia).
An Amended and Restated Wastewater Services Agreement between Veolia and the
City of Palm Springs was executed on June 28, 2006, with a term extension to June 30,
2013. An additional term extension was approved by the City Council on June 19,
2013, extending the agreement with Veolia through September 1, 2014, in order to
ITEM NO. ��
City Council Staff Report
January 21. 2015- Page 2
Extension of Veolia Wastewater Services Contract to June 30, 2015
provide uninterrupted wastewater services while the City completed a performance
review of Veolia's operations from which negotiations on a new contract would proceed.
The performance review found Veolia's operations and maintenance services to be in
general conformance with all of the requirements of the amended and restated
agreement and was consistent with good industry practices. Results of the
performance review were presented to the City Council on November 6, 2013.
Subsequently, negotiations with Veolia on the terms and conditions of a new
wastewater services agreement have continued. Previously, the City Council has
approved two interim term extensions with Veolia for continued wastewater services:
1) A 60 Day extension to September 1, 2014, approved by Council on July 16, 2014;
and
2) A 90 Day extension to February 1, 2015, approved by Council on October 15, 2014.
Staff is completing its negotiations with Veolia on the terms and conditions of a new
wastewater services agreement, and recommends that the term of the current
agreement be extended through July 1, 2015. Amendment No. 13 to the amended and
restated agreement has been prepared that captures these two prior term extensions
approved by the City Council.
FISCAL IMPACT:
Wastewater services are currently budgeted at the rate of $309,551.69 per month.
Funding is available from the Waste Water Treatment Plant account number 410-6800-
43200.
SUBMITTED
Prepared by:
Marcus L. Fuller, MPA, P.E., P.L.S.
Assistant City Manager/City Engineer
Approved by:
David H. Ready, EAq�, h.D
City Manager
ATTACHMENTS: Amendment No. 13
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AMENDMENT NO. 13 TO THE AMENDED AND RESTATED AGREEMENT NO. 4123
WITH VEOLIA WEST OPERATING SERVICES, INC.
(FORMERLY VEOLIA WATER NORTH AMERICA-WEST, LLC)
WASTEWATER SERVICES (OPERATIONS AND MAINTENANCE)
The following article of Agreement No. 4123 is hereby amended as follows:
1. Section 4.1 Term. The first sentence shall be deleted and replaced with the following:
Section 4.1 Term — Subject to the other provisions of this Agreement, the initial term of
this Agreement (the "Term") commenced on September 1, 1999 and, as amended and
restated, ends on June 30, 2015.
Purchase Order (PO) Number: 13-0566
Agreement Number. 4123
Original City Council Approval: June 21, 2006
Original M.O. Number: 7883
Current Annual PO Amount: $ 3,624,698.72
Amount of This Increase Current Annual PO + 1.7% contractual CPI
Term Extended 10 months at current rate/month + CPI
$306,510.38 per month (maximum)
Account Number: 410-6800-43200
SIGNATURES ON LAST PAGE
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Except as specifically amended by this Amendment No. 13, all terms and provisions of
Agreement No. 4123 shall remain in full force and effect.
ATTEST: CITY OF PALM SPRINGS,
a California charter city
By: By:
City Clerk City Manager
APPROVED AS TO FORM:
By:
City Attorney
VEOLIA WEST OPERATING SERVICES, INC.
CONTRACTOR: Check one:_Individual_Partnership X Corporation
Corporations require two notarized signatures: One signature must be from the Chairman of Board, President, or any Vice
President. The second signature must be from the Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief
Financial Officer).
By: By:
Notarized Signature of Chairman of Board, Notarized Signature Secretary,Asst Secretary,
President or any Vice President Treasurer, Asst treasurer or Chief Financial Officer
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