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HomeMy WebLinkAboutAMENDMENT NO 6 OMI . ',~ AMENDMENT NO.6 TO THE AGREEMENT FOR OPERATIONS, MAINTENANCE AND MANAGEMENT SERVICES FOR AUGUSTA, GEORGIA This AMENDMENT No.6 to the Agreement dated July 20, 1999 is made and entered into this ~day of ~l;41J.J4.- , 2002, between Augusta, Georgia, a political subdivision of the State of Georgia, whose address for any formal notice is 530 Greene Street, Room 801, Augusta, Georgia 30911, Attention: City Administrator (hereinafter "Owner"), and Operations Management International, Inc. (hereinafter "aMI"), with offices at 9193 South Jamaica Street, Suite 400, Englewood, Colorado 80112-3333, whose address for any formal notice is Post Office Box 6607, Englewood, Colorado 80155-6607. NOW, THEREFORE, Owner and OMI agree to amend the Agreement as follows: 1. Article 2.10.2 is hereby deleted in its entirety and replaced with the following 2.10.2 2.10.2 aMI shall endeavor to deliver sludge at not less than 16 percent solids based on monthly averages. Should aMI deliver sludge at greater than 17 percent solids and the total cost is less than the Biosolids Application cost listed in Appendix K, the management fee set forth in Article 4.1 shall be increased by twelve and one-half percent (12.5%) of the savings in the cost of wastewater sludge disposal up to a maximum incentive equal to aMI's Management Fee set forth in Article 4.1. 2. Article 2.34 is hereby deleted in its entirety and replaced with the following Article 2.34: 2.34 Provide, for and document repairs as described in Appendix A.5, provided the total amount OMI shall be required to pay does not exceed Three Hundred Forty-nine Thousand One Hundred Eighty-eight Dollars ($349,188.00) during the fourth year of this Agreement (January 1, 2003 through December 31, 2003). At such time that actual repair's costs exceed the annual repairs limit, OMI shall invoice and the Owner shall pay excess repairs' cost on a monthly basis. Said repairs will be invoiced at direct costs, with no markup for overhead or profit. aMI will rebate to Owner the entire amount that actual repairs are less than the repairs' limit during the period of this Agreement. Repairs' amounts below or in excess of the annual repairs' Limits shall not contribute to Base Fee overages or underages. 3. Article 4.1 is hereby deleted in its entirety and replace with the following Article 4.1: 4.1 For services rendered during the fourth period of this Agreement (January 1, 2003 through December 31,2003), Owner shall pay to OMI a base fee equal to the actual cost of services as provided in Article 4.3 performed, which includes a Management -1- OPERA nONS MANAGEMENT INTERNATIONAL, INe. Date: Dee.. i q 'ZOcY2- I AUGUST A, GEORGIA Fee of One Hundred Fifty-six Thousand, Six Hundred Fourteen Dollars and Eighty Eight Cents ($156,614.88). Said Management Fee and Base Fee shall be paid in twelve equal monthly installments. Management Fee shall increase proportionally with Base Fee adjustments described in Article 4.4. ' 4. Article 4.3 is hereby deleted in its entirety and replaced with the following Article 4.3: 4.3 . OMI estimates that cost for services for the fourth period under this Agreement (January 1, 2003 through December 2003) shall be Five Million, Nine Hundred Twenty Five Thousand, Two Hundred Sixty Three Dollars ($5,925,263). Details of said cost are shown in Appendix K. The Base Fee shall be negotiated each year beginning 120 days prior to conclusion of contract year. Should Owners and OMI fail to agree, the Base Fee will be determined by the application of the Base Fee Adjustment Formula shown in Appendix F. 5. Article 5.1 is hereby deleted in its entirety and replaced with the following Article 5.1: 5.1 One Twelfth (1/12) of the base fee for the fourth period shall be due and payable on the first of the month for each-month that services are provided. 6. Appendix K.is hereby deleted in its entirety and replaced with the attached Appendix K. All other terms and conditions remain in effect in accordance with the original Agreement. Both parties indicate their approval of this Agreement by their signatures below. Authorized Signature: ~V~ E. Fotrdt ForbesL../ Vice President ~ ATTEST: Date: #iJ ~ ATTEST: .11J1 Clerk (,-\\i\Cl"V \'V\ -2- November'11, 2002 p{ t Appendix K Estimated Costs Description Annualized Cost Labor and Benefits $ 1,829,720.76 Administrative $ 103,738.68 Equipment and Vehicle Expense $ 67,520.40 Biosolids Application $ 1,016,807.00 Training $ 49,025.88 Materials and Supplies $ 87,644.28 Chemicals $ 326,852.44 Outside Services $ 92,400.00 Power $ 1,045,932.00 Repairs $ 349,188.00 . Miscellaneous $ 1,666.60 Sub-total $ 4,970,496.04 Overhead 10.5% $ 521,902.08 Management Fee $ 149,114.88 Sub-total $ 671,016.96 Directors Allowance $ 250,000.00 Overhead 10.5% $ 26,250.00 Management Fee $ 7,500.00 Sub-total $ 283,750.00 Total $ 5,925,263.00