HomeMy WebLinkAbout6/16/2010 - STAFF REPORTS - 2.L. QALM SA
;dF '��y
w c
�/ N
�o rs
o P"
4``fOs�, Citv Council Staff Repo
Date: June 16, 2010 CONSENT CALENDAR
Subject: APPROVAL OF AMENDMENT NO. 10 TO THE AMENDED AND
RESTATED WASTEWATER SERVICES AGREEMENT (AGREEMENT
NO. 4123) WITH VEOLIA WEST OPERATING SERVICES, INC.
(FORMERLY VEOLIA WATER NORTH AMERICA-WEST, LLC)
From: David H. Ready, City Manager
Initiated by: Public Works and Engineering Department
SUMMARY
Agreement No. 4123 with Veolia West Operating Services, Inc., ("Veolia"), provides the
City with turn-key operation and maintenance of the City's sanitary sewer system. An
amendment to the current agreement is recommended to compensate Veolia for on-
going operation and maintenance ("O&M") of the recently completed reclaimed water
pump station.
RECOMMENDATION.
1) Approve Amendment No. 10 to the Amended and Restated Wastewater Services
Agreement (Agreement No. 4123) with Veolia West Operating Services, Inc.
(formerly Veolia Water North America-West, LLC); and
2) Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
On June 21, 2006, City Council approved the Amended and Restated Wastewater
Services Agreement (Agreement No. 4123) with Veolia West Operating Services, Inc.
(formerly Veolia Water North America-West, LLC) ("Veolia"). The Agreement provides
the City with operation and maintenance of the City's sanitary sewer collection system
and its wastewater treatment plant, as well as to provide the City with a variety of
associated programs (such as the Fats, Oils and Grease [FOG] pollution control
program, stormwater quality program, and sewer system management plan). The
Agreement was a restatement of an original agreement with Veolia (at that time known
as U.S. Filter) approved July 28, 1999.
ITEM NO. -
City Council Staff Report
June 16, 2010- Page 2
Amendment 10 of Wastewater Services Agreement No. 4123
Pursuant to Section 7.1 "Fees" of the agreement, the City pays a monthly O&M Fee
comprised of an O&M Annual Capital Recovery fee and an O&M Fixed Component fee.
The O&M Annual Capital Recovery fee was originally negotiated at an annual rate of
$41,502 and remains unchanged. For the 2010/2011 fiscal year, the 0&M Fixed
Component fee will be $3,051,718.
Section 7.4 "Adjustment to Fees and Additional Compensation for Certain Items" of the
agreement provides for an increase to the O&M Fixed Component fee for any additional
operating and maintenance costs associated with the wastewater treatment plant
("WWTP"). Recently, Veolia completed construction of a new reclaimed water pump
station for the WWTP. Previously the existing reclaimed water pump station was
operated and maintained by the City's Department of Parks and Recreation and
provided unreliable service to the WWTP. It was determined that a new reclaimed
water pump station operated and maintained by Veolia would be in the best interests of
the WWTP, to be certain that an uninterrupted supply of reclaimed water would be
delivered to the WWTP for its use.
Section 7.4 (g) "Change of Scope" of the agreement allows for the O&M Fee to be
increased for any substantial change in the scope of Veolia's services set forth in the
agreement, and/or any substantial change in the costs of operation and maintenance of
the WWTP. In this case, the entire operation and maintenance of the reclaimed water
pump station has been transferred from the City to Veolia, by way of a new pump
station that is now completed and in use. Veolia has estimated the cost for all
maintenance and repair of the pump station for the remaining term of the agreement,
which results in an annual cost of$10,324. This increase to the O&M Fixed Component
fee would provide the City with Full-Risk Repair and Maintenance (not just inspection
and preventative maintenance). As with all other equipment at the WWTP, Veolia will
not only maintain the equipment, but will also make all required repairs or, if necessary,
replace any of the pump station equipment during the remaining term of the agreement.
As the new pump station includes a Programmable Logic Controller, 3 adjustable
frequency drives, a motorized valve actuator, and 2 flow meters, repair and replacement
of any of this equipment would be costly, and will be guaranteed by Veolia pursuant to
the terms of the agreement by officially including the pump station as an element of the
WWTP that Veolia is to operate and maintain.
Staff has prepared a contract amendment that will adjust the O&M Fixed Component
fee to reflect the O&M of the new reclaimed water pump station.
City Council Staff Report
June 16, 2010- Page 3
Amendment 10 of Wastewater Services Agreement No. 4123
FISCAL IMPACT:
Sufficient funds are available in the Wastewater Fund, account 420-6800-43200
(contractual services). All services associated with the contract amendment are related
to the sanitary sewer system, and therefore, no local General Funds will be used.
Prepared by: Recommended by:
Marcus L. Fuller David J- Barakian
Assistant Director of Public Works Director of Public Works/City Engineer
Approved by:
Thomas J. Wils6h, Asst. City Manager David H. Read ager
ATTACHMENTS:
1. Contract Amendment
3
AMENDMENT NO. 10 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 articles of Agreement No. 4123 are hereby amended as follows:
1. Section 7.1 Fees. —Sub-section (b)(ii) O&M Fixed Component shall be revised, as follows:
The fallowing shall be added:
Effective July 1, 2010, the O&M Fixed Component fee shall be increased by $10,324 for the
period of July 1, 2010, until June 30, 2011, and shall thereafter be adjusted pursuant to Section
7_2. The component of said increase is identified as the Reclaimed Water Pump Station.
Purchase Order Number(s): 816110
Agreement Number: 4123
Original City Council Approval: June 21, 2006
Original M.O. Number: 7883
Original Contract Amount: $ 3,099,980,00
Amount of Previous Increase(s) $ 129,228.00
Amount of This Increase $ 10,324.00
Amended Total: $ 3,239,532.00
Account Number: 420-6800-43200
SIGNATURES ON LAST PAGE
Except as specifically amended by this Amendment No. 10, 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 Ofli[ef).
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
Name: Name:
Title: Title;
State of f State of
County of 1S5 County of 166
On before me, On before me,
personally appeared personally appeared
who proved to me on the basis of satisfactory evidence)to be who proved to me on the basis of satisfactory evidence)to be
the persons) whose name(s) is/am subscribed to the within the person(s) whose name(s) Ware subscribed to the within
instrument and acknowledged to me that he/she/they instrument and acknowledged to me that he/she/they
executed the same in his/herttheir authorized capacity(ies), executed the same In hls/hertthelr authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) perevn(s), or the entity upon behalf of which the person(s)
acted,executed the instrument. acted,executed the Instrument.
I certify under PENALTY OF PERJURY under the laws of the I certify under PENAI,TY OF PERJURY under the laws of the
State of California that the foregoing paragraph is true and State of Califomia that the foregoing paragraph is true and
correct. correct.
WITNESS my hand and official seal. WITNESS my hand and official seal.
Notary Signature: Notary Signature:
Notary Seal: Notary Seal:
J