HomeMy WebLinkAboutAMENDMENT NO 6 OMI
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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
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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:
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E. Fotrdt ForbesL../
Vice President
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ATTEST:
Date: #iJ ~
ATTEST: .11J1
Clerk
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November'11, 2002
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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