===== PDF PAGE 9 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO INFRASTRUCTURE COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: Resolution No. 22-R-0067 - Contract Amendment No. 1 - AGENDA ITEM NUMBER: _if_,·---'5"'--"-- Operations Management International, Inc. for Professional Services Related to the Management and COMMITTEE AGENDA DATE: November 3, 2022 Operation of the West Chicago/Winfield Wastewater COUNCIL AGENDA DATE: November 7, 2022 Authority's Regional Wastewater Treatment Plant for the Remainder of the Contract Term Ending in 2027 STAFF REVIEW: Mehul T. Patel, P.E., Director of Public Works SIGNATURE N~ ...........__ APPROVED BY CITY ADMINISTRATOR: Michael L. Guttman SIGNATURE _________ _ ITEM SUMMARY: In 2008, the City privatized its Wastewater Treatment Plant operations, and on March 26, 2008, the City Council approved a five-year contract with Operations Management International, Inc. (OMI) to perform various tasks and duties, including, but not limited to, management and operation of the City's Wastewater Treatment Plant (WWTP). In December 2012, the City Council approved another five-year contract with OMI for similar services during fiscal years 2013 thru 2017. In October 2017, the City Council approved another ten-year contract with OMI for similar services during fiscal years 2018 thru 2027. Over the past fifteen years, OM l's staff has managed, operated, monitored, and maintained the WWTP on a continuous twenty-four hours per day, seven days per week basis, so that the Plant's effluent discharge meets the requirements specified in the City's Illinois Environmental Protection Agency NPDES Permit. OMI pays all costs incurred with normal operations, including utilities, chemical purchases, and repairs, as well as all costs associated with grit, screenings, and sludge removals. They document and provide all annual maintenance and repair activities. They perform all laboratory testing and samplings required by the NPDES permit, and provide compliance inspection and oversight services of the City's Industrial Pretreatment Program in addition to preparing the annual pretreatment reports required by the USEPA. City staff, the Village of Winfield staff, and the IEPA Inspectors have all been extremely pleased with OMl's professionalism and performance over the past fifteen years. In 2019, the West Chicago/Winfield Wastewater Authority (WCWWA) was formed. OMI continued to perform at high level through the transition and they continue to do so to date. Staff believes that it would be in the best interest of the City to have OMI continue to be involved with the management and operation of the WC/WWA Regional WWTP. OMI also desires to continue to be involved in the management and operation of the City's WC/WWA Regional WWTP. OMI has submitted a proposal to revise the contract approved under 17-R-0068. The following revisions are included. 1. Revise Appendix A, Section 2.9, reducing the full time equivalent position from nine (9) to eight (8) for remainder of the contract. The reasoning for reduction is attributed to achievement of efficient plant operations due to optimization and implementation of technology at various stages of the treatment process. 2. Revise Appendix C, Section 7, the Consultant will maintain eight (8) full time equivalent positions instead of nine (9). ===== PDF PAGE 10 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO As you know, most contracts and projects are coming significantly over budget for the past year or so. The cost increases are attributed to higher labor cost, labor shortage, inflation, material supply chain issues, etc. Appendix C, Section 1 of the OMI contract, which sets the Annual Operation and Maintenance Fee (AOMF) for the next fiscal year, is revisited every fiscal year and is automatically renewed. Based on the current contract language, this section is to be revised annually by using the twelve-month percentage change (prior year to current year) in the Employment Cost Index (ECI) and the Consumer Price Index (CPI). The ECI during the past twelve month is 5.1 while the CPI is at 8. 7. Using these index figures and formula used in Appendix C, Section 4 of the contract, the AOMF will calculate to be approximately $3, 106,984 for FY2023. In exchange for the aforementioned contract revisions, OMI has agreed to increase the AOMF for FY2023 by 1.75% to $2,964,529.00, which is in line with the increases over the past few years and results in $142,000 in savings. All other provisions of the contract approved under 17-R-0068 remain unchanged including the termination clause. Considering OM l's outstanding performance over the past fifteen years, its familiarity with the WWTP and the City's ability to terminate the contract with notice for an uncured material breach, City staff recommends that City Council approved the Amendment No. 1 as presented. The Village of Winfield staff support this recommendation. ACTIONS PROPOSED: Approve Resolution No. 22-R-0067 authorizing the Mayor to execute a Contract Amendment No. 1 with Operations Management International, Inc. for Professional Services related to the management and operation of the West Chicago/Winfield Wastewater Authority's Regional Treatment Plant for the remainder of the contract term ending in 2027. COMMITTEE RECOMMENDATION: ===== PDF PAGE 11 ===== [Extraction: embedded PDF text] RESOLUTION NO. 22-R-0067 A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT AMENDMENT NO. 1 WITH OPERATIONS MANAGEMENT INTERNATIONAL, INC. FOR PROFESSIONAL SERVICES RELATED TO THE MANAGEMENT AND OPERATION OF THE WEST CHICAGO WINFIELD WASTEWATER AUTHORITY'S REGIONAL WASTEWATER TREATMENT PLANT FOR THE REMAINDER OF THE CONTRCT TERM ENDING IN 2027 BE IT RESOLVED by the City Council of the City of West Chicago, in regular session assembled, that the Mayor is hereby authorized to execute a Contract Amendment No. 1 with Operations Management International, Inc. for Professional Services Related to the Management and Operation of the West Chicago Winfield Wastewater Authority's Regional Wastewater Treatment Plant for the remainder of the contract term ending in 2027, in substantially the form attached hereto and incorporated herein as Exhibit "A". APPROVED this 7th day of November, 2022. AYES: NAYES: ABSTAIN: ABSENT: Mayor Ruben Pineda ATTEST: Executive Assistant Valeria Perez ===== PDF PAGE 12 ===== [Extraction: embedded PDF text] 9191 S.JamaicaSreet 81glewood, CO 80211Jacobs www.jacobs.com October 26, 2022 Mr. Mehul Patel Director of Public l/\brks City of I/I.est Oiicago 475 Maint Street I/I.est Oiicago, IL 60185 &Jbject: Operations, Maintenance and Management Services Compensation for January 1, 2023 to December 31, 2023 Dear Mr. Patel : In accordance with Operations Management International, Inc's (O:msultant) Agreement dated December 20, 2018, this letter confirms our mutual understanding and agreement regarding compensation for the period of January 1, 2023 to December 31, 2023. For the period of January 1, 2023 to December 31, 2023, C.Onsultant is to be compensated as follows: • Two Million Eight Hundred Fourteen Thousand Five Hundred Twenty-Nine Dollars ($2 ,814,5 2 9 .00) for activities classified as "Operations and Maintenance", and One Hundred Fifty Thousand Dollars ($15 0 ,000 .00) for activities classified as "Repairs", for a total Base Fee of Two Million Nine Hundred Sixty-Four Thousand Five Hundred Twenty- Nine Dollars ($2 ,964 ,5 2 9 .00) • Total Aggregate Budget for January 1, 2023 to December 31, 2023 is Six Hundred Four Thousand Eight Hundred Seventy-Six Dollars ($634,876). This consists of the following: o Electricity $23 7 ,000 o Natural Gas $51 ,000 o Biosolids Hauling and Disposal $260,000 o Chemicals $86,876 *Due to abnormal fluctuations in cost these budgets may need to be revisited mid-year. As outlined Amendment No . 1, the contract will be amended as follows: 1. Appendix A Section 2 .9 is hereby deleted and replaced with the following : 2.9 Staffthe Project with a minimum of eight full time equivalent positions. On-site personnel shall meet applicable certification requirements of the State of Illinois. At am inim um, the Project Manager shall maintain a State of Illinois Class "l" Wastewater Treatment Operator Certification. ===== PDF PAGE 13 ===== [Extraction: embedded PDF text] Jacobs 2. Appendix C Section 7 is hereby deleted and replaced with the fol lowing: 7. Upon commencement of this Agreement, C.Onsultant will maintain eight full time equivalent positions to provide the services included within the scope of the Agreement. All other terms and conditions of theAgreement dated December 20, 2018 between Operations Management International, Inc and the West Olicago/Wnfield V\fastewater Authority remain in full force and effect. Please sign both copies of this letter acknowledging your acceptance of the above items. We will return one fully executed original for your files. Operations Management International, Inc. appreciates the opportunity to continue providing services to the West Oiicago/ Wnfield V\fastewater Authority. Yours sincerely Brent Lautenbach Project Manager Both parties indicate their approval of the above-described services by their signature below. Authorized by Operations Management Authorized by West Oiicago/Wnfield International, Inc.: V\fastewater Authority: Kevin Dahl Mehul Patel Designated Manager Director of Public V\brks Date: ___________ _ Date: ___________ _ Biter Document No. via Document Properties 2 ===== PDF PAGE 14 ===== [Extraction: embedded PDF text] Jacobs. Escalation Backup: ECIQ2 5.10% CPI Sept 8.70% Default AF 6.90% Requested AF 0.0175 AF+1 1.0175 CY15: OMF $ 2,766, 122 CY16 Increase $ 48,407 CY16 AOMF $ 2,814,529 Rebate Increase $ Reeairs cae $ 150,000 CY16 Fee $2,964,529 Employment Cost Index (NAICS) Original Data Value Series CIU1010000000000A Id: Not ... asonally adjusted Serles Total compensation for All Civilian workers in All industries and Title: occupations, 12-month percent change Ownersh Civilian workers Ip: Compon Total compensation ent: Occupatl All occupations on: Industry: All industries Subcate All worll ln~ox for Totnl Compon oiion fnr Ch•lli>n \Vorky u. S. D~portmem of Lllbor, Rureou of Lobor S101istlcs in rho Dcrnilod RepA. CPt The twelve monlh percent eh11ngc (li'om Sc pl ember of the prior yeor ro Seprember of lite curttni )'cor) in the Consumer Price lndox for All Urban Consume!ti, Not St"ttSo11 Series Id: CUURA207SAO •series ID changed to CUURS23ASAO ===== PDF PAGE 17 ===== [Extraction: embedded PDF text] ECI Q2' 5,10% CPI Sept 8.70% Default AF 6.90% Requesled AF 0.0175 AF+1 1.0175 CY15: 0MF $ 2,766,122 CY161ncrease $ 46,407 CY16AOMF $ 2,814,529 Rebate Increase $ Re~lrs Ca~ $ 150,000 CY16 Fee $ 2,964,529 •contract specifies Q3 as the EC! qualifier, but Index was not available at time of budget submission. ===== PDF PAGE 18 ===== [Extraction: embedded PDF text] Escalation History CY Calendar Year ECI CPI DefaullAF% Requested AF% Base Fee Repairs Other Total 07 2014 1.90 0.70 1.30 1.30 2,551 ,823 150.000 20,224 2,722.047 08 2015 2.20 2.10 2.15 2.15 2.474,121 150.000 - 2.624.121 09 2016 2.00 (0.40 0.80 0.80 2.493,914 150,000 2,643.914 10 2017 2.30 0.60 1.45 1.45 2,530,076 150,000 2,680,076 11 2016 2.30 2.10 2.20 2.00 2,580,677 150,000 2,730,677 12 2019 2.80 1.60 2.20 1.75 2,625,839 150,000 2,775,639 13 2020 2.80 1.40 2.10 1.75 2.671,791 150,000 2,821 ,791 14 2021 2.40 1.40 1.90 1.75 2.718,547 150,000 2,868,547 15 2022 3.70 4.50 4.10 1.75 2,766,122 150,000 2,916.122 16 2023 5.10% 8.70% 6.90% 1.75% 2,614.529 150,000 2.964,529 ===== PDF PAGE 19 ===== [Extraction: embedded PDF text] AMENDMENT NO. 1 to the AGREEMENT FOR THE OPERATIONS, MAINTENANCE, AND MANAGEMENT OF THE WEST CHICAGO/WINFIELD WASTEWATER AUTHORITY REGIONAL WASTEWATER TREATMENT PLANT This Amendment No. 1 (the "Amendment") to the Agreement for Operations, Maintenance and Management Services for the West Chicago/Winfield Wastewater Authority Regional Wastewater Treatment Plant (the "Agreement") is made effective as of this __ day of 2022 by and between the City of West Chicago (hereinafter "City") and Operations Management International, Inc. (hereinafter "Consultant"), collectively referred to herein as the "Parties". NOW THEREFORE, City and Consultant agree to amend the Agreement as follows: 1 . Appendix A Section 2.9 is hereby deleted and replaced with the following: 2.9 Staff the Project with a minimum of eight full time equivalent positions. On-site personnel shall meet applicable certification requirements of the State of Illinois. At a minimum, the Project Manager shall maintain a State of Illinois Class "1" Wastewater Treatment Operator Certification. 2. Appendix C Section 1 is hereby deleted and replaced with the following: 1. The City shall direct the Authority to pay to Consultant as compensation for services performed under this Agreement Two Million Eight Hundred Fourteen Thousand Five Hundred Twenty-Nine Dollars ($2,814,529.00) for activities classified as "Operations and Maintenance", and One Hundred Fifty Thousand Dollars ($150,000.00) for activities classified as "Repairs", for a total Base Fee of Two Million Nine Hundred Sixty-Four Thousand Five Hundred Twenty-Nine Dollars ($2,964,529.00) for Agreement year January 1, 2023 through December 31, 2023. Subsequent years' Base Fees shall be determined as hereinafter specified, or as referenced in Appendix "A", attached hereto, which is hereby incorporated by reference. 3. Appendix C Section 7 is hereby deleted and replaced with the following: 7. Upon commencement of this Agreement, Consultant will maintain eight full time equivalent positions to provide the services included within the scope of the Agreement. This Amendment No. 1 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 specifica I ly stated al I other terms and conditions of the Agreement shall remain in full force and effect. ===== PDF PAGE 20 ===== [Extraction: embedded PDF text] The Parties, intending to be legally bound, indicate their approval of the Amendment by their signatures below. OPERATIONS MANAGEMENT CITY OF WEST CHICAGO INTERNATIONAL, INC. Name: Kevin Dahl Name: Title: Manager of Projects Title: Date:. __________ _ Date :. __________ _