===== PDF PAGE 37 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO INFRASTRUCTURE COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: Resolution No. 22-R-0067 — Contract Amendment No. 1 — | AGENDA ITEM NUMBER: pO oa 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 COMMITTEE AGENDA DATE: November 3, 2022 COUNCIL AGENDA DATE: November 7, 2022 ia SIGNATURE, APPROVED BY CITY ADMINISTRATOR: Michael L. Guttman SIGNATURE STAFF REVIEW: Mehul T. Patel, P.E., Director of Public Works 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, OMI’s staff has managed, operated, monitored, and maintained the WWTP ona 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 OMI’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 38 ===== [Extraction: OCR (rendered-page OCR)] 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 EC! 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 OMI’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: Pending recommendation from the Infrastructure Committee at its meeting on November 3, 2022.