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HomeMy WebLinkAboutReso - CC - 068-1998RESOLUTION 68-98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENT WITH U.S. FILTER OPERATING SERVICES FOR OPERATION OF THE WASTEWATER TREATMENT PLANT AND ASSOCIATED SERVICES RESOLVED, by the City Council of the City of Burlingame: WHEREAS, the City has contracted with Wheelabrator EO S, Inc. and its successor U.S. Filter Operating Services for the past four years to provide the operation of the City wastewater treatment plant and associated services; and WHEREAS, this arrangement has been beneficial to the City in providing a professional staff, in-depth knowledge, and efficient cost containment; and WHEREAS, negotiations between the City and U.S. Filter Operating Services have developed a proposed agreement that would sustain these services at reasonable costs to the City and the community; and WHEREAS, these services are highly specialized and unique, and a five-year renewal of the agreement with amendments between the City and U.S. Filter Operating Services would be in the best interests of the community, NOW, THEREFORE, IT IS ORDERED: 1. The Agreement attached hereto as Exhibit A is approved subject to finalization of the hold harmless and insurance provisions by approval of the City Attorney. 2. The City Manager is authorized and directed to execute the Agreement for and on behalf of the City of Burlingame when approved as to form by the City Attorney 3. The City Clerk is directed to witness the Manag3/j(sign#Kre on be�gf of the City. -1- I, JUDITH A. MALFATTI, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the 6th day of JULY 1998, and was adopted thereafter by the following vote: AYES: COUNCIL.MEMBERS: GALLIGAN, JANNEY, KNIGHT, SPINELLI NOES: COUNCILMEMEERS: NONE ABSENT: COUNCILMEMEERS: O'MAHONY y CITY CLE -2- Version 1.8 6/25/98 City of Burlingame Agreement with U.S. Filter Operating Services for Operations and Maintenance of the Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 SECTIONI. EMPLOYMENT....................................................................................................................1 SECTIONH. TERM................................................................................................................................... 1 SECTION III. USFOS SHALL PROVIDE THE FOLLOWING SERVICES ....................................... 2 A. FACILITY SCOPE............................................................................................................................... 2 B. STAFFING..........................................................................................................................................2 C. TECHNICAL SUPPORT........................................................................................................................ 3 D. EMPLOYEE PROGRAMS.....................................................................................................................3 E. COMPUTER SYSTEMS........................................................................................................................3 F. PERMIT CONDITIONS...............................................:.........................................................................3 G. SERVICE PAYMENTS......................................................................................................................... 3 H. MAINTENANCE SYSTEM.................................................................................................................... 4 I. MAINTENANCEPLAN........................................................................................................................4 J. CAPITAL PLAN..................................................................................................................................4 K. PLANT LOADINGS............................................................................................................................. 4 L. REPORTS...........................................................................................................................................5 M. INDUSTRIAL MONITORING................................................................................................................ 6 N. INSURANCE....................................................................................................................................... 6 O. COMPLIANCE WITH LAWS................................................................................................................. 8 P. LABORATORY................................................................................................................................... 8 SECTION IV. CITY RESPONSIBILITIES .............................................................................................. 8 A. COMPENSATION................................................................................................................................8 B. AUDITS............................................................................................................................................. 9 C. EASEMENTS AND LIENS.................................................................................................................... 9 D. EXISTING INVENTORIES.................................................................................................................... 9 E. CAPITAL AND MAINTENANCE PLAN REIMBURSEMENTS................................................................. 10 F. EMERGENCY REPAIRS..................................................................................................................... 11 G. DIGESTER CLEANING...................................................................................................................... 11 SECTIONV. LIMITATIONS...................................................................................................................11 A. INFLUENT CHARACTERISTICS......................................................................................................... I I B. CITY ACTS...................................................................................................................................... 12 C. FORCE MAJUERE............................................................................................................................. 12 D. LABOR CONDITIONS........................................................................................................................ 12 E. CHANGES M LAW........................................................................................................................... 13 SECTION VI. INDUSTRIAL WASTE DISCHARGE PROGRAM.....................................................13 SECTION VII. ELECTRICAL INCENTAZE PROGRAM...................................................................14 SECTION VIII. GENERAL PROVISIONS............................................................................................14 A. RENEWAL ........................................ B. TERMINATION .................................. C. HOLD HARMLESS ............................. D. WATER QUALITY PROTECTION........ E. DISPUTE RESOLUTION ...................... F. FIRE INSURANCE .............................. G. CITY FINANCIAL REVIEW ................. H. USFOS CAPITAL ............................. 1 Version 1.8 6/25/98 I. USFOS INDEPENDENT CONTRACTOR ....................... J. WAIVER OF RIGHTS .................................................. K. ASSIGNMENT............................................................ L. EQUAL OPPORTUNITY EMPLOYMENT ....................... M. AGREEMENT LIMITS ................................................. N. CITY ACCESS............................................................ O. NOTICES.................................................................... .............................................................. 19 .............................................................. 19 .............................................................. 19 .......... ................ ....... I............................ 19 .............................................................. 20 .............................................................. 20 .............................................................. 20 ATTACHMENTA................................................................................................................................... A-1 ADJUSTMENTS TO COMPENSATION............................................................................................. A-1 A. ADJUSTMENTS TO COMPENSATION............................................................................................... A-1 B. ANNUAL ADJUSTMENTS - CPI-W................................................................................................. A-2 C. PERIODIC ADJUSTMENTS.............................................................................................................. A-2 D. MAINTENANCE PAYMENTS........................................................................................................... A-4 E. CAPITAL PAYMENTS..................................................................................................................... A-5 ATTACHMENTB....................................................................................................................................B-1 LIST OF VEHICLES AND EQUIPMENT ................ ..............................................B-1 ATTACHMENTC................................................................................................................................... C-1 INDUSTRIAL WASTE PROGRAM.....................................................................................................0-1 ATTACHMENTD................................................................................................................................... D-1 ROLLING FIVE YEAR MAINTENANCE PLAN....... D-1 ATTACHMENTE....................................................................................................................................E-1 ROLLING FIVE YEAR CAPITAL PLAN ii Version 1.8 6/25/98 THIS AGREEMENT, entered into this day of 1998 by and between: City of Burlingame, in the State of California (hereinafter called City) and U.S. Filter Operating Services Inc., a Delaware Corporation located at 55 Shuman Blvd., Naperville, IL (hereinafter called USFOS) WHEREAS: CITY has jurisdiction over the wastewater treatment plant located in the City of Burlingame (hereinafter called the FACILITY); and WHEREAS: CITY is desirous that the FACILITY be operated and maintained in the most efficient manner possible, while complying with all Federal and State laws; and WHEREAS: USFOS is a corporation specializing in the business of supplying operation, maintenance and management services for such waste treatment plants; NOW, THEREFORE, in consideration of the promises and terms contained herein, the parties agree as follows: Section I. EMPLOYMENT The CITY engages USFOS to provide operations, maintenance, and management services for the wastewater treatment FACILITY under the jurisdiction of the CITY and located at 1103 Airport Boulevard, valves and force main between the FACILITY and the Rollins Road Pump Station and for the Rollins Road lift station located at 1079 Rollins Road. Section II. TERM The contract term shall commence on July 1, 1998 and expire five (5) years thereafter unless renewed in accordance with Section VIII -A. Prior to each renewal the City will work with USFOS in completing a reasonableness cost review to verify that the City's O&MAgreement 1 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 wastewater treatment costs are comparable to other local communities with similar treatment. This contract be renewed per Section VIII -A. Section III. USFOS SHALL PROVIDE THE FOLLOWING SERVICES A. Facility Scope USFOS shall operate and maintain the treatment processes that include, but are not limited to, screening, grit removal, primary clarification, activated sludge, secondary clarification, chlorination, gravity thickening, anaerobic biosolids digestion, solids dewatering, odor control systems, reclaim water system, and cogeneration facilities. Final effluent pumping and dechlorination systems will be operated as necessary. USFOS shall also operate and maintain the lift station at 1079 Rollins Road (hereinafter referred to as the Main Pump Station) and the valves and force main located between the Main Pump Station and the FACILITY. USFOS shall provide a complete review of the valves and force main located between the Main Pump Station and shall submit to the City a budget for all required repairs or replacements by December 31, 1998. It is understood that all repairs and replacements will be successfully completed by USFOS either as a capital or maintenance repair prior to commencing a full operations and maintenance obligation on these facilities. B. Staffing USFOS shall staff the FACILITY with qualified employees experienced in wastewater treatment process control and maintenance procedures. It is the intention of USFOS to make operation of the Treatment Plant a model for the San Francisco Bay Area. USFOS shall provide the level of coverage needed to ensure monitoring of all routine wastewater treatment operations called for in this Agreement. USFOS shall staff the FACILITY with employees that meet or exceed necessary certification required by governmental agencies as well as provide O&MAgreement 2 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 continued upgrading, employees in modern equipment maintenance. C. Technical Support education and training of these wastewater control, safety and USFOS shall provide, as necessary, resources and professionals with expertise and experience in process control, maintenance, management, and engineering from its affiliated companies and facilities located throughout North America. D. Employee Programs USFOS shall maintain an education and safety program for all employees. This program is to be patterned after the USFOS program currently utilized at all USFOS-operated facilities. The cost of this program will be the responsibility of USFOS. E. Computer Systems USFOS shall use a computer system and its proprietary software for the generation of process information for FACILITY control. In the event of contract termination, this software shall become the property of the CITY. F. Permit Conditions USFOS shall operate the FACILITY within the NPDES permit (No. CA0037788, dated October 30, 1995) limits for BODS and suspended solids which are 30 mg/1 BODS and 30 mg/1 suspended solids. Should any changes occur in a new permit, said changes will be addressed according to Attachment A, Section D, "GENERAL PROVISION FOR ADJUSTMENTS". G. Service Payments USFOS shall pay all expenses required for the normal operation and maintenance of the FACILITY, which includes (1) personnel costs, (2) utilities, (3) chemicals, (4) fuels and lubricants, (5) normal O&MAgreement 3 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 operating supplies, a-nd (6) all residuals, including bio -solids, grit, and screenings, and except as limited in "I and J" below, maintenance repairs and replacement of capital equipment. H. Maintenance System USFOS shall provide maintenance and repairs for the equipment, structures and vehicles consistent with industry preventive maintenance standards and practices and/or manufacturer's specifications utilizing a computerized maintenance management system. The CITY shall have the right to inspect these maintenance records during normal business hours. The CITY shall have the right to engage a consultant to review maintenance at the FACILITY. I. Maintenance Plan USFOS shall annually develop and submit to the City by February 28th of each year a five (5) year rolling maintenance plan. This maintenance plan will be reviewed and approved by the City by June 30th. See Attachment D. It is agreed to by both parties that the City will retain all maintenance and repair funds developed with this rolling five (5) year plan, but that USFOS shall direct and manage all projects within the fund as required to ensure water quality permit compliance. J. Capital Plan USFOS shall annually develop and submit to the City by February 28th a five (5) year rolling Capital plan. See Attachment E. This Capital plan will be reviewed and approved by the City by June 30th. It is agreed to by both parties that the City will retain funds developed with this rolling five (5) year plan, but that USFOS shall direct and manage all projects within the fund as required to ensure water quality permit compliance. K. Plant Loadings USFOS agrees to maintain copies of plant loading and O&MAgreement 4 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 performance data over the term of this Agreement. This data shall cover, at any given time during the execution of this Agreement, the previous five years of operation up to the current time. In the event of premature contract termination, these records will become the property of the CITY. L. Reports 1) Monthly - USFOS shall provide the CITY with monthly reports that summarize maintenance and capital activities. USFOS shall provide an accounting summary of monthly maintenance and capital expenditures.' 2) Annual - USFOS shall provide the CITY with an annual report by December 31st of each year that summarizes plant performance and major events and activities which affected the operation of the FACILITY. 3) NPDES - USFOS shall prepare all NPDES permit reports and submit these to the CITY for approval prior to transmittal to appropriate agencies. 4) An annual meeting will be held between the City and USFOS to review facility performance in relation to contractual indices and triggers. The meeting will be conducted prior to March lot and will focus on data collected over the previous calendar year. USFOS shall prepare for City a report which reviews data collected over the preceding year and will summarize the emerging trends. The indices to be assessed include, but are not limited to, the following: a) Flow b) Biochemical Oxygen Demand (BODS) loading C) Total Suspended Solids (TSS) loading d) Electrical consumption e) Electrical unit cost f) Biosolids quantities g) Biosolids unit disposal cost h) Grit and Screenings quantities i) Grit and Screenings unit disposal cost O&MAgreement 5 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 M. Industrial Monitoring USFOS shall provide the CITY with an Industrial Monitoring program. This program is discussed in more detail in Section 6 of this contract and Attachment C. N. Insurance USFOS shall maintain insurance during the life of this Agreement in compliance with the following provisions: 1. USFOS shall not commence work under this Agreement until it shall have obtained all insurance required under this SECTION and such insurance shall have been approved by CITY as to form, amount and carrier, nor shall USFOS allow any subcontractor to commence work on his subcontract until all similar insurance required of the subcontractor shall have been so obtained and approved. 2. Compensation Insurance. USFOS shall take out and maintain, during the life of this Agreement, Worker's compensation insurance as required by State Law for all its employees employed at the FACILITY and in case any work is sublet, USFOS shall require its subcontractor similarly to provide worker's compensation insurance for all of the latter's employees, unless such employees are covered by the protection afforded by USFOS. In case any class of employees engaged in work under this Agreement at the FACILITY is not protected under this Agreement at the FACILITY is not protected under any worker's compensation law, USFOS shall provide, and shall cause each subcontractor to provide, adequate insurance for the protection of employees not otherwise protected. USFOS indemnifies CITY for any damage resulting to it from failure of either USFOS or any subcontractor to take out or maintain such insurance. O&MAgreement 6 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 3. Public Liability and Property Damage Insurance. USFOS shall take out and maintain during the life of this Agreement such public liability and property damage insurance as shall protect CITY, its elective and appointive boards, officers, agents and employees, USFOS and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including death, as well as from claims for property damage which may arise from USFOS' or any subcontractor's operations under this Agreement, whether such operations be by USFOS or by any subcontractor, or by anyone directly or indirectly employed by either USFOS or any subcontractor provided, however, that USFOS is required to take out and maintain insurance only against claims to which USFOS' hold harmless of City set forth in Section 9C of this Agreement applies. The amounts of such insurance shall be as follows: (a) Public Liability (Personal Injury and Property Damage) Insurance. In an amount not less than $1,000,000.00 for injuries, including, but not limited to, death to any one person and, subject to the same limit for each person, in an amount not less than $2,000,000.00 on account of any one occurrence. 4. Proof of Carriage of Insurance. USFOS shall furnish CITY, through the City Engineer, concurrently with the execution hereof, with satisfactory proof of carriage of the insurance required, and that each carrier shall give CITY at least thirty days prior notice of the cancellation of any policy during the effective period of this Agreement. USFOS shall provide an endorsement O&MAgreement 7 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 to its public liability insurance policy demonstrating that the CITY, its elective and appointive boards, officers, agents, and employees have been named as additional insureds to provide indemnity pursuant to subparagraph 3 above. All insurance shall be primary. O. Compliance with Laws USFOS shall comply with all applicable state, federal and local laws and ordinances as they apply to the FACILITY. P. Laboratory 1)NPDES - Perform all laboratory sampling, testing and analyses presently required by existing NPDES Permit No. CA 0037788, Dated October 30, 1995, and provide a QA/QC program. Perform lab analysis for potable water samples for CITY. The frequency for the analyses consists of approximately forth (40) fecal coliforms and twelve (12) odor, color, taste, pH, and turbidity per month. 2)Sampling - Perform the sampling and analysis for Priority Pollutants, Monthly Metals, Toxicity Testing, Semi -Annual Sludge Testing, and Waste Minimization Program. Sampling parameters and sampling frequency are provided in NPDES Permit No. CA 0037788. 3) Accreditation - Conduct three (3) sets of field testing and pay the required fees to attain accreditation for the laboratory at the FACILITY. Section IV. CITY RESPONSIBILITIES A. Compensation The CITY shall initially pay to USFOS as compensation for the services performed, the sum of $133,121 per month. This compensation amount shall be payable at the first of each month the services are to be rendered. Compensation will be subsequently increased O&MAgreement $ Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 or decreased as described in Attachment A. Payment to USFOS for this and all other compensation or reimbursement arising from other provisions of this Agreement shall be made within twenty (20) days after receipt of invoice. Late payments in excess of 20 days will be subject to a service charge of 1.5% per month or maximum legal rate, whichever is less. The CITY and USFOS agree that the discount provided for residuals disposal in the agreement between Wheelabrator EOS and Wheelabrator Clean Water Systems, BioGro Division shall be retained. The parties also agree that this discount shall be reduced to reflect one half (1/2) of the difference between the former BioGro unit rate and the new disposal rate established with Pima Gro Systems. This discount shall be eliminated effective July 1, 2001. At this point the City will be invoiced for 100% of all actual costs incurred for the disposal of residuals. It is agreed and understood that the process for payment provided in this Agreement is intended to accommodate an ongoing system. Therefore, it is expected that the City shall pay compensation under this section that the City may dispute in either amount or extent, and that payment by the City shall not be interpreted to waive any rights the City may assert to dispute the amounts claimed by USFOS through the dispute resolution process of this Agreement or otherwise. B. Audits The CITY, at its own expense, shall have the right to audit USFOS costs at any time during the life of this Agreement. C. Easements and Liens Maintain existing easements, licenses and warranties for the mutual benefit of both parties. D.Existing Inventories O&MAgreement 9 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 Provide vehicles and equipment listed in Attachment B for the use of USFOS. Said vehicles and equipment shall be in good and serviceable condition and shall comply with all OSHA and State licensing requirements. Should CITY elect to remove any item listed in Attachment B from use, CITY agrees to immediately replace said item with comparable vehicles or equipment, and USFOS shall be responsible for providing proper maintenance on said replacement vehicles or equipment. E. Capital and Maintenance Plan Reimbursements City shall pay for all capital and maintenance plan improvements so that the water quality and other performance guarantees are not compromised. Payment for these invoiced services is detailed in Attachment A - Section E. Capital items which will improve productivity or other savings to the operator will not be approved unless the CITY will receive a satisfactory portion of the economic benefit. Capital items related to personnel and public safety, facility protection, compliance with new permit requirements, expanded capacities or product quality enhancement shall be evaluated on their particular merits and purchased in accordance with available funds, however these capital items remain the sole responsibility of the City. The City and USFOS understand that additional capital items maybe required at the facilities and that USFOS under a turnkey and financing approach can provide significant savings to the City. USFOS shall complete a detailed design, operation, and finance submittal for the City's review for each potential turnkey project. The City, at its sole discretion, can elect to proceed and would then adjust USFOS compensation and contract term to mutually agreeable payment terms. The CITY may also proceed to perform the work with its own forces or to otherwise contract to have the work performed. In such circumstances, USFOS shall have the option to review such CITY performed work for acceptability prior to assumption of responsibility for operation and maintenance. O&MAgreement 1 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 F. Emergency Repairs USFOS shall have the right to make emergency capital expenditures if such expenditures are necessary to continue operation of the FACILITY in order to provide for public safety and environmental protection. The CITY will reimburse USFOS for these emergency capital expenditures in accordance with Attachment A -Section D. G. Digester Cleaning Provide for digester cleaning since it is beyond normal maintenance practice and is not a normal operating expense. Digester cleaning budgeting will be accomplished in the annual capital plan process. Both parties recognize that plant upsets and unusual operations costs could be incurred by the limitations of the digester system during periods of digester cleaning. Any costs incurred by USFOS due to digester inadequacy during cleaning periods shall be the responsibility of the CITY. Section V. LIMITATIONS A. Influent Characteristics Should FACILITY influent wastewater characteristics exceed FACILITY design parameters as determined by the design engineer as outlined in the Design Engineer's Memorandum dated September 12, 1990 prepared by Black & Veatch, which states: Average Daily Flow 4.5 mgd Biochemical Oxygen Demand (BOD) 10,320 lbs. per day Total Suspended Solids (TSS) 10,300 lbs. per day or should influent contain abnormal, toxic or other substances which cannot be removed or treated by the existing FACILITY or contain discharges which violate the applicable sewage ordinances, USFOS does not accept responsibility for associated effluent characteristics or damages. USFOS shall advise the CITY of the abnormal situation and planned course of action within O&MAgreement 11 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 48 hours of occurrence. However, USFOS in such event agrees to return FACILITY effluent to contract limits within twenty (20) days after influent returns to acceptable limits. B. City Acts Wrongful, willful or negligent acts of the CITY, through its officers, agents or employees and wrongful, willful or negligent acts of third parties, or acts of God, which cause damage to the FACILITY or to other parties or properties shall be the responsibility of the CITY. USFOS shall not be responsible for: - Wrongful, willful or negligent acts of the CITY, by its officers or employees or agents not affiliated with USFOS, and - Wrongful, willful, or negligent acts of third parties not affiliated or subcontracted to USFOS, and Acts of God which cause damage to the FACILITY or damage or injury to other parties or properties. C. Force Majuere Extraordinary or unusual occurrences associated with flood, earthquakes, fire or acts of God which increase maintenance expense, repair costs or other expense shall be the responsibility of the CITY. D. Labor Conditions In the event labor picketing) causes from entering and FACILITY, the CITY, its own option shal or court orders. stoppage by employee groups (e.g., i disruption with USFOS' employees working at the treatment plant with USFOSI assistance or USFOS at L seek appropriate legal injunctions During such a designated period, USFOS shall operate the FACILITY on a best-efforts basis until labor relations are normalized and shall O&MAgreement 12 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 not be liable for any fines or penalties. The CITY retains the right to assume responsibility for the FACILITY should a labor stoppage endanger public health and safety. E. Changes in Law Changes in regulations or laws which require modification of treatment processes, addition of new or additional chemicals, or changes in staffing requirements will require modification of contract scope and may require increased payment by the City to USFOS per Attachment A, subparagraph 4. Section VI. INDUSTRIAL WASTE DISCHARGE PROGRAM USFOS shall use its best efforts to operate and manage the Industrial Waste Discharge Program (IWDP) for the CITY. This program shall consist of: investigating sources of unusual wastes entering the CITY's wastewater treatment plant; submitting reports to the Director of Pubic Works; performing field monitoring; inspection of commercial and industrial establishments; maintenance of equipment assigned to the program; sample collection and analysis, as per Attachment C; and laboratory work. All reports, monthly and annually, shall be prepared by USFOS in strict confidence and only submitted to the Director of Public Works or his designate. The Director of Public Works shall, at all times, be the Director of the Program but shall make no unreasonable demands and impose no unreasonable conditions. USFOS shall pay all expenses incurred in the operation and management of the IWDP, including wages, salaries, consumables - such as gasoline and laboratory chemicals - and industrial waste laboratory testing by an outside laboratory. USFOS shall staff the program with qualified personnel. A 15% increase or decrease in inspection, monitoring, sampling, or testing frequency time for a 12 -month average period from the list described in Attachment C, shall be subject to the terms and conditions of O&MAgreement 13 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 Attachment A, Section D, "GENERAL PROVISION FOR ADJUSTMENTS." Section VII. ELECTRICAL PROGRAM It is the intent of the electrical program to provide a basis for all electrical costs. The program is keyed on an annualized cost per kilowatt-hour and an annual total kilowatt hour consumption. Adjustments to electrical costs shall be the result of (1) changes in electrical rates by the electrical utility, (2) major additions or deletions of plant equipment, and/or (3) events outside the control of USFOS that impact overall electrical consumption. Electric cost baseline information and adjustment terms are provided in Attachment A. Adjustments to the unit cost electrical component of the compensation shall be made annually during the annual review of project indices based on a 10% increase or decrease in the Kwh unit price. Should overall electrical consumption over the monitoring period increase or decrease by 10% due to circumstances outside the control of USFOS, compensation shall be adjusted accordingly. Section VIII. GENERAL PROVISIONS A. Renewal This Agreement may be renewed for successive terms of five (5) years each as provided in this Section. If USFOS desires to renew this Agreement, it shall give written notice to the CITY no later than the January 1 preceding the July 1 termination date of the Agreement. If USFOS conditions the renewal of the Agreement on an increase in compensation above the price adjustment contained in Attachment A "ADJUSTMENTS TO COMPENSATION", USFOS shall include in the notice a clear statement of the increased compensation and a justification of the requested increase. O&MAgreement 14 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 Upon receipt of a written notice of renewal, the CITY and USFOS will prepare a reasonableness rate and cost report to assess the projected USFOS charges vs. wastewater charges and rates being paid by other municipalities in the surrounding area. The reasonableness report will be provided to the CITY no later than April 1 preceding the July 1 termination date. Any costs incurred in preparing the reasonableness report by an outside agency shall be paid by the CITY. Following receipt of the reasonableness report, the CITY may in its sole discretion determine whether to renew the Agreement on the terms offered by USFOS, negotiate a different agreement with USFOS, or take any other action that it determines appropriate. No later than June 1 preceding the July 1 termination date, CITY shall notify USFOS of its decision with regard to renewal. Should the CITY not provide this written notice, the Agreement will terminate on the July 1 termination date. If the Agreement is not renewed, USFOS shall continue to provide the current operations staff and perform services in accordance with this Agreement for one hundred eighty (180) days beyond the date of termination. During this extended period, CITY shall compensate USFOS based on USFOS' direct costs X overhead factor of 15% X 1.1 profit fee multiplier. B. Termination Either party to this Agreement may terminate this Agreement upon material breach by the other party providing that such terminating party first provide written notice of such breach to the other party and such breach is not corrected within ninety (90) days. In this event, USFOS shall continue to provide the current operations staff for a period of at least one hundred eighty (180) days beyond the set date of termination. CITY shall compensate USFOS based on USFOS' [(direct costs x [15%] overhead factor) x 1.1 profit fee multiplier]. O&MAgreement 15 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 C. Hold Harmless USFOS hereby agrees to, and shall hold CITY, its elective and appointive boards, officers, agents and employees, harmless from any liability for damage or claims for damage for personal injury, including death, as. well as from claims for property damage which may arise from USFOS, operations under this Agreement, whether such operations be by USFOS or by any subcontractor or subcontractors; provided, however, it is understood that this Agreement does not apply to bodily injury or property damage arising out of the discharge, dispersal, release or escape of the FACILITY effluent into or upon land, the atmosphere or any water course or body of water unless as a result of the negligence of USFOS or any subcontractor of USFOS. Except as provided for above, USFOS agrees to and shall defend CITY and its elective and appointive boards, officers, agents and employees from any suits or actions at law or in equity for damages caused or alleged to have been caused by reason of any of the aforesaid operations; provided as follows: a) That CITY does not, and shall not, waive any rights against USFOS which it may have by reason of the aforesaid hold -harmless agreement, because of the acceptance by CITY, or the deposit with CITY by USFOS of any of the insurance policies hereinbefore described in Section III -N. b) That the aforesaid hold -harmless agreement by USFOS shall apply to all damages and claims for damages of every kind suffered by reason of any of the aforesaid operations of USFOS or any subcontractor, regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages, except as provided in the second paragraph Section VIII -D. c) Notwithstanding anything to the contrary in this Agreement: (1) neither USFOS nor its O&MAgreement 16 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 subcontractors or vendors of any tier, nor their respective officers, directors, employees, agents or representatives, shall be liable to CITY for consequential, incidental, indirect or special damages or loss of actual anticipated profits revenue or substitute equipment, loss of use of equipment or facilities, cost in excess of estimated costs, plant down time, increased expenses of manufacturing or operation, claims or customers, costs, labor, equipment or materials required for reconstruction or repairs, or amounts of settlements arising out of or relating directly or indirectly to this Agreement; (2) CITY's exclusive remedies against USFOS and its subcontractors or vendors of any tier, and their respective officers, directors, employees, agents and representatives shall be only those expressly provided in this Agreement; (3) USFOS shall name the CITY as an additional insured on the comprehensive general liability insurance required to be carried under this Agreement, using as the endorsement the attached Exhibit A, with combined single limits of liability of $1 million per occurrence and $2 million aggregate; and (4) the cumulative liability of USFOS, its insurers, its subcontractors and vendors of any tier, and their respective officers, directors, employees, agents and representatives arising from or elating in any way to the Facility (exclusive of USFOS' liability under Section 9C for reimbursement of fines and penalties)shall in no event exceed on an annual aggregate basis an amount equal to the proceeds of insurance received by USFOS from insurance required to be carried by USFOS under this Agreement, and CITY assumes any excess liability. The foregoing shall apply regardless of whether liability or remedies arise in contract, negligence, strict liability or otherwise. O&MAgreement 17 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 D. Water Quality Protection USFOS shall reimburse the CITY for those fines and civil penalties imposed by regulatory agency on CITY during the term of the AGREEMENT for violations of the CITY's NPDES Permit #CA0037788, dated July 18, 1990, caused solely by USFOS Is negligence or willful misconduct. USFOS shall be given full authority to contest such violations and CITY shall assist USFOS in all such proceedings. E. Dispute Resolution If the parties cannot agree upon the respective liabilities of the parties, either party shall notify the other that such a disagreement exists. Within ten (10) days after receipt of such notice, each party shall appoint an arbitrator. Within twenty (20) days after those arbitrators are named, they shall appoint a third arbitrator. The three arbitrators shall forthwith meet and determine the respective liabilities of the parties. Arbitration shall be conducted according to the rules of the American Arbitration Association, Construction Industries Section. The laws of the State of California regarding arbitration, insofar as applicable, shall govern any arbitration under this paragraph. The arbitrators may examine evidence and witnesses. The decision of at least two of the three arbitrators shall be final and binding upon the parties hereto. The decision of the arbitrators shall be in writing; and immediately upon its completion, one copy shall be transmitted to the CITY and one copy to USFOS. F. Fire Insurance CITY shall purchase and maintain standard fire insurance policies, including extended coverage to the full insurable value of the FACILITY; and USFOS shall be named as an additional insured under these policies during the life of this contract; and USFOS shall have no liability to CITY with respect to loss, damage or destruction covered by such policies. O&MAgreement 18 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 G. City Financial Review USFOS agrees to make its books and records relative to he operation of the FACILITY available for inspection by CITY, its designated agent, or designated independent accountant for the specific purpose of determining the validity of any requested increase for compensation and for the general purpose of ascertaining compliance with the provisions of this Agreement. Such inspections shall be made during usual business hours. H. USFOS Capital Any capital equipment provided by USFOS during the term of this Agreement shall remain the property of USFOS. In the event USFOS sells such equipment, the CITY shall have first option to purchase. I. USFOS Independent Contractor It is understood that the relationship of USFOS to the CITY is that of an independent contractor and that none of the employees or agents of USFOS shall be considered employees of the CITY. J. Waiver of Rights The failure on the part of rights as to any provision be construed as a waiver of provision in the future. K. Assignment either party to enforce its of the Agreement shall not its rights to enforce such This Agreement shall not be assigned by either party without the prior written consent of the other unless such assignment shall be to an affiliate or successor of either party. L. Equal Opportunity Rmployment USFOS warrants that it is an equal opportunity employer and shall comply with applicable regulations governing O&MAgreement 19 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 equal employment opportunity. USFOS does not and shall not discriminate against persons employed or seeking employment with them on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or medical condition, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment & Housing Act. In performing services under this Agreement, USFOS shall not discriminate against any permit holder or persons receiving or seeking service on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or medical condition. M. Agreement Limits This Agreement contains the entire Agreement between the CITY and USFOS and supersedes all previous or contemporaneous communications, representations or agreements. This Agreement may be modified only by written amendment signed by both parties. N. City Access CITY public works staff shall have access to the FACILITY covered by this Agreement at all times, but shall be required to first sign in at the FACILITY main office. O. Notices All notices shall be in writing and delivered in person or transmitted by certified mail, return receipt requested, postage prepaid. Notices required to be given to USFOS shall be addressed as follows: Vice President/Regional Manager 2300 Contra Costa Blvd. Suite 470 Pleasant Hill, CA 94523 Notices required to be given to the CITY shall be addressed as follows: O&MAgreement 20 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 CITY MANAGER City Hall 501 Primrose Road Burlingame, CA 94010 or to such other address as may be specified in written notice. IN WITNESS WHEREOF, the CITY and USFOS have caused this Agreement to be duly executed as of the day and year first above written. CITY OF BURLINGAME US FILTER OPERATING SERVICES 0 CITY MANAGER 0 ATTEST: By UA O&MAgreement 21 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 A ADJUSTMENTS TO COMPENSATION A. Adjustments to Compensation From commencement of the contract until the contract expires, compensation shall be increased or decreased. It is the objective of this contract to minimize such adjustments. Example triggers of contract adjustments are as follows: • Annual - Consumer Price Index (CPI -W) for all costs other than electricity • Periodic - Electricity based on an increase or decrease of 10% in the 12 month average unit cost and/or the 12 month consumption of electricity in kilowatt hours • Periodic - An increase or decrease of more than 10% in 12 month averages for flow and loading • Periodic - An increase or decrease of more than 10% in Biosolids and Grit and Screenings wet ton per year volumes and/or cost required for disposal • Periodic - Other factors such as changes in regulatory requirements, approved USFOS turnkey project improvements, etc. The annual CPI adjustment shall be implemented on July 1 of each year based on the change in CPI from March 31 of the current year and March 31 of the previous year. All periodic adjustments shall be discussed during the annual meeting held prior to March 1 of each contract year. All adjustments shall be made retroactive to the date that the adjustment exceeded the upper or lower trigger values. Suitable substantiating information shall be provided by USFOS to demonstrate the need for the adjustment. Adjustments shall be based on cost exclusive of annual changes in CPI and shall be billed or credited to the CITY by May 1 of that year. -O&MAgreement A-1 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 B. Annual Adjustments - CPI -W Compensation shall be increased or decreased annually according to the following U.S. Department of Labor, Bureau of Labor Statistics (B.L.S.) index: Consumer Price Index (CPI -W) (San Francisco -Oakland, 1982-84 = 100). The first increase or decrease in compensation shall be effective July 1, 3995 1999 and shall be based on the sum total percentage change in the abovementioned indices between February 28 1998 and February 28 1999. Each subsequent increase or decrease in compensation shall be effective each July 1 and shall be based on the prior February 28 to February 28 change in the B.L.S. indices. Should the BLS index change the method and manner of the CPI -W then both parties agree to develop a new compensation standard which equitable adjusts the annual compensation. The percentage increase or decrease in service compensation to be calculated annually shall be the weighted percentage change in the CPI -W. WEIGHT INDEX CHANGE WEIGHTED % CHANGE % Change in CPI -W Wt. % Change 0.856 X San Francisco -Oakland = 1982-84 = 100) NOTE: Weighting factor is based on the percentage of overall basic compensation contract costs exclusive of electricity. C. Periodic Adjustments 1) Electricity 2) Compensation shall be increased or decreased for utility rate changes and/or overall electrical consumption. Adjustments to the unit cost electrical component of the compensation shall be made annually during the annual review of project indices—based on a 10% increase or decrease in the annualized kilowatt-hour unit price. Should -O&MAgreement A-2 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 overall electrical consumption over the monitoring period increase or decrease by 10% due to circumstances outside the control of USFOS, compensation shall be adjusted accordingly. Adjustments shall be made retroactive to the date that the cost impact of the change was documented by electric bills. Initial baseline values for electrical unit cost and overall electrical consumption are as follows: $0.0845 per kilowatt-hour 7,000 kilowatt-hours per day 3) Flow and Loading The Annual Fee for services under this AGREEMENT is based upon the following Project characteristics: Flow 3.9 mgd BODS 10,900 #/day TSS 9,800#/day Any annualized (12 month average) increase or decrease of 10% in flow, BOD loading or SS loading shall give either party the option to renegotiate service compensation upon 30 days written notification to the other party. All compensation adjustments shall be retroactive to the beginning of such 12 month period. BOD loading and SS loading for the purpose of this contract shall be calculated as follows: Monthly BODS Loading (lbs/day) -O&MAgreement Burlingame Wastewater Treatment Plant _ (monthly average of daily plant influent BODS in mg/1) x (monthly average influent flow in million gallons per day) x (8.34 lbs/gallon) -3 Version 1.8 6/25/98 Monthly Suspended Solids Loading (lbs/day) 4) Residuals Disposal (monthly average of daily plant influent suspended solids in mg/1) x (monthly average influent flow in million gallons per day) x (8.34 lbs/gallon) Residual disposal which includes screenings, grease, grit, and biosolids shall be the responsibility of the USFOS. The current baseline conditions for these residual amounts is: BioSolids 5,699 Wet Ton/Year and per ton cost of $21.61, Grit and Screenings 240 Wet Ton/Year per year and net per ton cost of $64.06. 5) General Provision For Adjustments In the event that any changes in the scope of operation for the FACILITY should occur (other than those discussed elsewhere in this Attachment), including but not limited to changes in flow or loadings, changes in governmental regulations, reporting requirements, and effluent standards which increase the cost of operating the FACILITY, or additions of turnkey capital or maintenance equipment by USFOS to the City, USFOS shall be entitled to additional compensation which would include reasonable amounts for overhead and profit. Such additional compensation will be: (1) negotiated by the parties within a reasonable period of time or, if no negotiated agreement can be achieved, (2) set as a compensation adjustment of [(direct costs x USFOS 15% overhead factor) x 1.1 profit fee multiplier]. D. Maintenance Payments The City agrees to maintain throughout the contract year the maintenance plan funds which were approved on or before June 30th. USFOS shall complete these repairs as required in a timely fashion. It is agreed that as these maintenance projects from the maintenance plan are completed, USFOS shall provide a monthly invoice to the City for all maintenance plan expenditures. The -O&MAgreement A-4 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 invoice amounts will show the actual expense with 15% for overhead and 10% for profit. E. Capital Payments The City agrees to maintain throughout the contract year the Capital plan funds which were approved on or before June 30th. USFOS shall complete these repairs as required in a timely fashion. It is agreed that as these projects from the capital plan are completed, USFOS shall provide a monthly invoice to the City for all capital plan expenditures. In the City Fiscal year 1998-1999 there will be no profit and overhead charges applied to any Capital purchases. In all subsequent contract years the invoice amounts will show the actual expense with 5% for overhead and 8% for profit. Capital plan items shall exceed the capital dollar limit of $50,000 and/or extend equipment life span. The CITY and USFOS will review the overhead and profit percentages for capital work with respect to reasonableness during the annual review meeting held in March. -O&MAgreement Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 ATTACHMENT B LIST OF VEHICLES AND EQUIPMENT Treatment Plant • ISCO Sampler: Model No. 3700 -FR Serial No. 09279-249 • ISCO Sampler: Model No. 3700 -FR Serial No. 09279-291 • ISCO Sampler: Model No. 2700 Serial No. 06162-035 • ISCO Sampler: Model No. 3700 Serial No. 19GL00588 • 1981 GMC Pickup - License E755889 • 1981 Peterbilt tractor - License E062842 • Forklift Model No. 42-SFG25 Serial No. 42-SFG20-25 Laboratory_ Equipment • Satorius Analytical Balance, BP 2105 SN: 60108259 • Coliform Incubator IC -62 Scientific Products • BOD (Biological Incubator) by Hot Pack • Blue M - Fecal Coliform H2O Bath Model Magni-Whirl • VWR Drying Oven, Model 1350F • Market -Forge Autoclave (for sterilization) • Labconco - Laborabory - Steam Dishwasher • VWR 1350G Dry Sterlizing Oven O&MAgreement B-1 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 • Thermolyne 6000 Furnace • Hach 2100N Turbidimeter • Leica Macrostar IV Phase Contrast Microscope • Orion HO pH/ISE Meter • Ohaus CT200 Media Balance O&M Agreement B-2 Burlingame Wastewater Treatment Plant Version 1.8 6/25/98 ATTACHMENT C INDUSTRIAL WASTE PROGRAM In accordance with CITY Ordinance Number 1572, USFOS shall manage the Industrial Waste Program and shall be responsible for compliance inspection, permitting, sampling, and follow-up as required. The number of industries covered under this program, as of the July 11, 1997 staff report is: Industry Type Number in Category Light 98 Moderate 16 Heavy 11 Non -Conventional/ Groundwater 7 TOTAL 132 USFOS shall be responsible for all routine testing for the above industries. However, it is anticipated that additional retesting beyond that normally required will be necessary. In such circumstances, USFOS shall invoice the CITY for actual cost of these tests plus a 15% overhead and 1.1 profit multiplier. 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