Department
Public Works
Requested Action (Identify appropriate Action or Motion, purpose, cost, timeframe, etc.)
title
Request approval to renew an existing contract - Department of Public Works, 16RFP071816K-DJ, Operation & Maintenance Services for Camp Creek Managed Assets in the amount of $6,277,692.00 for FY 2022, with Veolia Water North America - South, LLC, (Atlanta, GA), to provide reliable uninterrupted, economical operation of the wastewater system operations and maintenance management systems in the Camp Creek service area. Annual fees for FY2023 - FY2026 are provided in the scope of work. This action exercises the first of one renewal option. No renewal options remain. The renewal period is for a five year period effective April 4, 2022 through April 3, 2027. (APPROVED)
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Requirement for Board Action (Cite specific Board policy, statute or code requirement)
In accordance with State of Georgia O.C.G.A. §36-60-15.1, Operation and Maintenance of Water Treatment Systems by Private Entities, the County is authorized, in the discretion of its governing authority, to enter into valid and binding leases and contracts for any period of time not to exceed 20 years to provide for the operation and maintenance of all or a portion of its waste-water treatment system, storm-water system, water system, or sewer system, or any combination of such systems, which contracts may include provisions for the design, construction, repair, reconditioning, replacement, maintenance, and operation of the system, or any combination of such services and functions.
Strategic Priority Area related to this item (If yes, note strategic priority area below)
Health and Human Services
Commission Districts Affected
All Districts ☐
District 1 ☐
District 2 ☐
District 3 ☐
District 4 ☐
District 5 ☒
District 6 ☒
Is this a purchasing item?
Yes
Summary & Background (First sentence includes Agency recommendation. Provide an executive summary of the action that gives an overview of the relevant details for the item.)
Scope of Work: Since April 4, 2017, Veolia Water North America - South, LLC has been providing all operation and maintenance functions for the wastewater managed assets in South Fulton County. This infrastructure includes the Camp Creek Water Reclamation Facility (WRF), Little Bear Creek (WRF), and eighteen (18) pumping stations. Veolia provides services to these assets twenty-four hours per day, seven days a week. The Contractor provides all labor, materials, supplies, chemicals, fuel, vehicles, services, administration, reporting, monitoring, and other necessary items or services and assumes all responsibilities and liabilities associated with operating and maintaining the facilities.
The total five-year renewal contractual value of the services will be $44,507,059 and includes four financial elements - Fixed Service Fee, Maintenance Allowance, Contingency Allowance, and Escalation:
§ The Fixed Service Fee is the amount charged by the contractor to operate and maintain all of the Camp Creek Managed Assets in compliance with the terms of the contract.
§ The Maintenance Allowance will be used to repair/replace major equipment or upgrade the Camp Creek Managed Assets at the County’s sole discretion.
§ The Contingency Allowance will be used to finance unforeseen and variable expenses during the term at the County’s sole discretion.
§ Escalation will be applied on an annual basis to cover on-going increasing expenses due to inflation and market adjustments.
The Contractor requested adjustments that were contemplated in the contract and the adjustments are summarized below and more fully presented in the Information Memo provided:
1. Restructure the biosolid disposal cost to be consistent with how the North Fulton contract (RFP# 19RFP090419K-DB) was structured in 2020. In that contract, Fulton County agreed to a baseline rate for biosolid hauling and disposal for each year of the contract. Veolia would be reimbursed at their actual costs if the rates are at or below this baseline rate. If the actual rates are less than 5% over the baseline rate, Veolia would not be reimbursed for the additional costs over the baseline rate. If the actual rates are greater than 5% over the baseline rate, Fulton County would reimburse Veolia the amount above the 5%. The current Camp Creek contract is structured differently. The Fixed Fee includes biosolid hauling and disposal at $56.75 a ton. Anything over that amount comes out of the Contingency Allowance on an annual basis. Currently rates are approximately $85 a ton, so approximately $400,000 a year is coming out of the contingency allowance to make up the difference. The proposed structure is serving both Fulton County and Veolia well as part of the North Fulton contract.
2. The global pandemic has significantly changed the chemical market. Collectively, chemical costs are now 45% greater than they were before COVID. Veolia is asking that the chemical costs included in the Fixed Fee portion of the contract be increased to accommodate the increases.
3. The current staffing plan to operate and maintain the Camp Creek assets is currently capped at 23 employees. Veolia is requesting that two additional positions be added to the contract that will allow them to provide the necessary support for the maintenance, upgrades, and operation of the assets.
4. The current contract allows an annual escalation of 2%. As everyone knows, the current escalation percentage is considerably higher than 2%. Veolia is requesting that the annual escalation be increased to 3% to be consistent with the North Fulton contract.
Public Works agrees with all four of these contractual element changes and supports including them in the renewal. If approved, the five-year contract will extend through April 3, 2027 with the following costs in the chart below:
Community Impact: The treated wastewater at these facilities is ultimately discharged to the Chattahoochee River. It is Fulton County’s responsibility to maintain a clean river that serves the entire County and allows for a healthy environment for economic and recreational activities.
Department Recommendation: The Public Works Department recommends approval.
Project Implications: As Fulton County no longer has the personnel resources to operate and maintain these assets, it is imperative that the WRFs and pump station continue to provide uninterrupted wastewater treatment services. Therefore, it is necessary that this renewal be executed prior to the end of the current contract.
Community Issues/Concerns: No issues or concerns have been raised by the Community regarding Veolia’s performance during the current contract period.
Department Issues/Concerns: Public Works does not have any issues or concerns with renewing the contract for the upcoming five year period.
Contract Modification:
|
Current Contract History |
BOC Item |
Date |
Dollar Amount |
|
Original Award Amount (FY17- 22) |
16-1181 |
12/21/2016 |
$32,969,015.00 |
|
Renewal No. 1(FY22 -FY27) |
|
|
$6,277,692.00 |
|
Total Revised Amount |
|
|
$39,246,707.00 |
Contract & Compliance Information (Provide Contractor and Subcontractor details.)
Contract Value: $6,277,696.00
Prime Vendor: Veolia Water North America South LLC
Prime Status: Non-Minority
Location: Atlanta, GA
County: Fulton County
Prime Value: $4,384,970.66 or 69.85%
Subcontractor: Khafra Engineering Consultants, Inc.
Subcontractor Status: African American Male Business Enterprise - Certified
Location: Atlanta, GA
County: Fulton County
Contract Value: $81,610.05 or 1.30%
Subcontractor: Let Us Love Your Lawn
Subcontractor Status: African American Female Business Enterprise- Certified
Location: Stone Mountain, GA
County: Gwinnett County
Contract Value: $113,626.30 or 1.81%
Subcontractor: Multi-Energy Group, LLC
Subcontractor Status: African American Female Business Enterprise - Certified
Location: Atlanta, GA
County: Fulton County
Contract Value: $75,332.35 or 1.20%
Subcontractor: Amtech Drives
Subcontractor Status: Asian American Female Business Enterprise - Non- Certified
Location: Atlanta, GA
County: Fulton County
Contract Value: $62,776.96 or 1.00%
Subcontractor: D. Clark Harris
Subcontractor Status: White Female Business Enterprise - Certified
Location: Fayetteville, GA
County: Fayette County
Contract Value: $62,776.96 or 1.00%
Subcontractor: Global Control Systems
Subcontractor Status: Asian American Female Business Enterprise -
Certified
Location: Smyrna GA
County: Cobb County
Contract Value: $126,181.69 or 2.01%
Subcontractor: Reliant Water, Inc.
Subcontractor Status: White Female Business Enterprise - Certified
Location: Butler, GA
County: Taylor County
Contract Value: $1,265,450.57 or 19.68%
Subcontractor: Prime Power
Subcontractor Status: White Female Business Enterprise - Certified
Location: Austell, GA
County: Cobb County
Contract Value: $31,388.48 or 0.50%
Subcontractor: American Facility
Subcontractor Status: White Female Business Enterprise - Certified
Location: Atlanta, GA
County: Fulton County
Contract Value: $103,581.98 or 1.65%
Total Contract Value: $6,277,696.00 or 100.00%
Total M/FBE Values: $1,757,754.88 or 28.50%
Exhibits Attached
Exhibit 1: Contract Renewal Agreement
Exhibit 2: Contractor Performance Report
Exhibit 3: Board of Commissioners Informational Memo
Contact Information
title
David Clark, Director of Public Works, (404) 612-2804
Contract Attached
title
No
Previous Contracts
title
Yes
Fiscal Impact / Funding Source
Funding Line 1:
201-540-5470-1160: Water & Sewer R&E, Public Works, Professional Services $6,277,692
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Key Contract Terms |
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Start Date: 4/4/2022 |
End Date: 4/3/2027 |
|
Cost Adjustment: Yes |
Renewal/Extension Terms: |
Overall Contractor Performance Rating:
Would you select/recommend this vendor again?
Yes
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Report Period Start: |
Report Period End: |
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7/1/2021 |
12/31/2021 |