HomeMy WebLinkAbout2024-07-15 I01F_01 O&M Services Agreement Amendment_USDIAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: July 15, 2024
AGENDA ITEM:Consideration of approval of a resolution approving Amendment to
Agreement for Operations and Maintenance Services [Utility Safety and
Design, Inc. (USDI)]
FORMAT:Resolution
SYNOPSIS INCLUDING PRO & CON: The City of Waukee and USDI entered into an agreement
on October 5, 2020 to operate 14.5 miles of 8” epoxy coated, steel pipeline which will operate at
pressures between 225 to 450 psig and connect to Northern Natural Gas’s pipeline. Additional
services include watch & protect, emergency call-out, ROW maintenance and pipeline integrity.
The amendment is for pipeline reclassification from transmission to distribution. This change lowered
the annual fee $18,720.00.
The amendment is for Article II, Section A.(2)(b):
(b) for Services contracted on a Fixed Price basis as identified in Exhibit A.1 attached
hereonto and incorporated herein by reference, Customer shall promptly pay USDI the amount
shown in Exhibit A broken down into twelve monthly payments as agreed upon. For the first
Contract Year of this Agreement the Operating Fee will be monthly five hundred-forty dollars
($540.00), due and payable on or before the Commencement and at the beginning of each
month thereafter. Each subsequent payment of the Operating Fee will be due and payable on
or before the beginning of each subsequent month during the term of this Agreement.
FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT:
RECOMMENDATION: Approve the Resolution.
ATTACHMENTS: I. Resolution
II. Second Amendment to Lease Agreement
PREPARED BY: Beth Richardson
REVIEWED BY: Tim Royer TLR
THE CITY OF WAUKEE, IOWA
RESOLUTION 2024-
APPROVING AMENDMENT TO THE OPERATIONS & MAINTENANCE SERVICES
AGREEMENT BETWEEN THE CITY OF WAUKEE, IOWA, AND UTILITY SAFETY
AND DESIGN, INC. (USDI)
IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA
WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal
Organization; AND,
WHEREAS, on October 5, 2020 (RES # 2020-363), the City entered into an Agreement for
Operations and Maintenance Services; AND,
WHEREAS, the agreement with Utility Safety and Design, Inc. (USDI) was to operate 14.5 miles
of 8” epoxy coated, steel pipeline which will operate at pressures between 225 to 450 psig and connect to
Northern Natural Gas’s pipeline. Additional services include watch & protect, emergency call-out, ROW
maintenance and pipeline integrity; AND,
WHEREAS, the Amendment to the Operations & Maintenance Services Agreement is for pipe
reclassification from transmission to distribution; AND,
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Waukee that the
Amendment to the Operations & Maintenance Services Agreement Between the City of Waukee,
Iowa, and Utility Safety and Design, Inc. (USDI) is hereby approved.
Passed by the City Council of the City of Waukee, Iowa, and approved the 15th day of July,
2024.
____________________________
Courtney Clarke, Mayor
Attest:
___________________________________
Rebecca D. Schuett, City Clerk
RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN
R. Charles Bottenberg
Chris Crone
Rob Grove
Anna Bergman Pierce
Ben Sinclair
1
AMENDMENT of AGREEMENT
This amendment is made to OPERATING AGREEMENT previously executed by and
between Utility Safety and Design, Inc., hereinafter called “USDI" and City of Waukee,
hereinafter called "CUSTOMER".
It is mutually understood and agreed by and between the undersigned contracting parties to
amend that previously executed agreement as follows:
Article II, Section A.(2)(b) is changed effective July 1, 2024 to read:
(b) for Services contracted on a Fixed Price basis as identified in Exhibit A.1 attached
hereto and incorporated herein by reference, Customer shall promptly pay USDI the amount
shown in Exhibit A broken down into twelve monthly payments as agreed upon. For the first
Contract Year of this Agreement the Operating Fee will be monthly five hundred-forty dollars
($540.00), due and payable on or before the Commencement and at the beginning of each
month thereafter. Each subsequent payment of the Operating Fee will be due and payable on
or before the beginning of each subsequent month during the term of this Agreement.
Exhibit A is changed effective July 1, 2024 to read:
EXHIBIT A
To the Operations & Maintenance Services Agreement
Dated July 1, 2024
Between
City of Waukee
And
Utility Safety and Design, Inc.
SCOPE OF SERVICES
1. The following services shall be provided for the fixed fee of $6,480.00 per annum:
Operator will operate Owner’s Facilities consisting of 14.5 miles of eight (8) - inch epoxy coated,
steel pipeline which will operate at pressures of between 225 and 450 psig connected to Northern Natural
Gas pipeline (all as more particularly defined in the Operating Agreement)
Schedule of O&M Requirements covered under the “Operating Fee”:
Record Keeping Ongoing monthly (twelve times per year)
Odorizer Fill Twice per year (Odorant additional charge)
2
49 CFR §192.465 Cathodic Protection Survey Once per year
49 CFR §192.615 Public Liaison Once per year
2. Additional Services:
Marking Locates Requests
Watch & Protect
Emergency Call-out
ROW maintenance
Pipeline Integrity testing
State Audit
Plan & Manual Reviews/Updates (DIMP)
Leak Survey
Public Awareness Mailings
Valve Inspection & Maintenance
Relief Inspections & Maintenance
Regulator Inspections & Maintenance
Patrols
Atmospheric Corrosion Survey
Odorant Intensity Check
HCA Survey & House Survey
Continuing Surveillance
Rates for tasks performed but not covered under the “Operating Fee” will be billed as time and material
work. The billing rates for labor will be charged commencing at the time Operator’s employee or
contractor leaves their current location, office or home. The billing rates for labor and equipment shall be
Operator’s current billing rates. Updated rates shall be provided to Owner at beginning of each calendar
year. Materials will be charged at cost plus 25%.
3. The rates for services identified in Section B of this Exhibit A and for other Services that may be
requested by Customer or required by the state or federal government, but not otherwise described in
Sections A or B of this Exhibit A shall be provided at the current USDI Utility Retainer Rates.
All other terms and conditions that are not hereby amended are to remain in full force and
effect.
3
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to be effective as set
forth above.
Operator
By:
Name: _______________________________
Title: _______________________________
Owner
By:
Name: ________________________
Title: _________________________