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TRANSMITTAL FORM FOR LEGISLATION
MAYOR’S OFFICE OFFICE OF THE CHIEF OF STAFF
PART 1.
Type of Request: ☒ Cycle submission
indicate cycle number: 5
☐ Committee Walk-in
indicate the name of the committee and meeting date:
☐ Personal Paper
indicate the name of the committee and meeting date:
If requesting a committee walk-in or personal paper, please provide an explanation why this legislation was not introduced via the regular cycle and why it is needed.
Originating Department: Department of Watershed Management
Name of Commissioner of Department:
Mikita Browning
Chief of Staff Deadline: February 3, 2021 Date Submitted to Chief of Staff: Department Legislative Liaison: Cristi Bickham Contact Number:
678-923-2814
Email Address: cbickham@atlantaga.gov
Staff Presenter at Committee: Quinton Fletcher Contact Number:
770-865-2240
Email Address: qfletcher@atlantaga.gov To Be Completed by the Originating Department
Please provide a summary (Justification statement) of the purpose of this legislation and why it is needed, including background data. Describe operational concerns that will be addressed with the approval of this legislation. Please attach accompanying documents, if applicable. Ordinance No. 17-O-1387 authorized Ostara USA, LLC to design and build the RM Clayton WRC Nutrient Harvesting System under
Contract FC-10043. In accordance with Ordinance No. 17-O-1387, upon substantial completion, Ostara USA, LLC would operate and maintain the System and the purchase struvite produced by the System. The project reached substantial completion on February 28, 2020. The City desires to change the initial term of the Operations and Maintenance (FC-10042-OM) and the Offtake Agreement (FC-10043-OP) from a 10-year base with two five-year renewal options to a five-year base with three five-year renewal options. For the O&M agreement, the amount not to exceed is $1,465,000.00 for the initial term.
Insert Caption of Legislation: AN ORDINANCE AMENDING ORDINANCE 17-O-1387, IN ACCORDANCE WITH SECTION 2-1163 SUBSECTION (C) (REMEDIES AFTER AWARD), ARTICLE X, PROCUREMENT AND REAL ESTATE CODE OF THE CITY OF ATLANTA CODE OF ORDINANCES TO AMEND THE TERMS FOR A NUTRIENT RECOVERY SYSTEM OPERATION AND MAINTENANCE SERVICES AGREEMENT AND A FERTILIZER OFFTAKE AGREEMENT WITH OSTARA USA, LLC, ON BEHALF OF THE DEPARTMENT OF WATERSHED MANAGEMENT, TO A TERM OF FIVE (5) YEARS WITH RETROACTIVE EFFECT FROM FEBRUARY 29, 2020 THROUGH FEBRUARY 28, 2025 WITH THREE (3) FIVE (5) YEAR RENEWAL OPTIONS TO BE EXERCISED AT THE DISCRETION OF THE CITY, IN AN AMOUNT, FOR THE OPERATION AND MAINTENANCE AGREEMENT, OF TWO HUNDRED NINETY-THREE THOUSAND DOLLARS AND ZERO CENTS ($293,000.00) ANNUALLY AND NOT TO EXCEED ONE MILLION FOUR HUNDRED SIXTY FIVE THOUSAND DOLLARS AND ZERO CENTS ($1,465,000.00) OVER THE INITIAL TERM, WITH FUNDING FOR YEARS 3 THROUGH 5 TO BE SUBJECT TO AND EXPRESSLY CONTINGENT UPON THE ADOPTION AND APPROVAL OF BUDGETS FOR THE FISCAL YEARS 2022 THROUGH 2024; TO RATIFY ALL SERVICES RENDERED FROM FEBRUARY 29, 2020; AND FOR OTHER PURPOSES.
Is this a COVID-19 related request? If yes, please explain.
No
Please identify any financial or schedule impacts if this legislation is not approved for the current cycle? If yes, please explain. Please describe how the timeline for approval may impact the execution or renewal of a contract.
Delay will impact payment to the vendor for services rendered.
Please indicate whether this legislation financially impacts other Departments/Offices? If yes, please list the departments:
☐ Yes ________________________________ ☒ No
Anticipated Council Committee of Purview:
City Utilities
For Ordinances, Anticipated Committee Meeting Date for First Read: February 23, 2021
For Ordinances, Anticipated Committee Meeting Date for Second Read: March 9, 2021
For Resolutions, Anticipated Committee Meeting Date for First Read: TBD (Resolutions only require one read)
Anticipated Full Council Date for Adoption: March 15, 2021
DocuSign Envelope ID: 43580184-B38B-4D04-AEFA-A0917D3D0269 DocuSign Envelope ID: 9279C438-615A-4E36-978A-D7DA449E788A
Page 2 of 2 Please identify any legal impacts/conflicts if this legislation is approved. If yes, please explain:
To be completed by AIM
Please identify any technology impacts/conflicts if this legislation is approved. If yes, please explain:
To be completed by the Originating Department
Procurement-related information:
Indicate Contract Type:_Design Build____________________________________________________________________ Describe the Source Selection:_Sole Source_______________________________________________________________ ____________________________________________________________________________________________________ Have Invitations/Request for Proposals been issued?_N/A____________________________________________________ Indicate the number of invitations issued_N/A______________________________________________________________ What is the term of the contract? _ Five (5) years w/ Three (3) additional five (5) year Renewal Options______
To be completed by the Originating Department and Verified by the Department of Finance
Fund Account Center: Source of Funds:
Fund Account Center (Please answer):
☐Cost will be covered by the Department’s Current Year budget ☒Budget Neutral-No Monetary Impact
☐Budget Neutral-Requiring a BA or TR
☐Cost not anticipated in the Department’s Current Year Budget ☐Amendment to the Current Budget
☐Please indicate if there is a method of cost recovery. If so, please describe in detail. ______________________________________ ____________________________________________________________________________________________________________
Signatures/Dates
Originating Department’s Commissioner/Chief: Date:
Department of Law/Attorney of Record: Date:
Chief Financial Officer: Date:
Chief Procurement Officer (Required ONLY for purchase of any goods or services):
Date:
Chief Information Officer (Required ONLY for technology review/impacts): N/A
Date:
If approval from Procurement or AIM is not required, please indicate the reasons below: There isn’t a procurement of technology or an impact
Mayor’s Office Only
Date Received/Staff Person (COO): Date Reviewed/Staff Person (COS): Initial/Date:
Final Approval by Chief of Staff: Signature/Date:
Final Check Off by COS office: Initial/Date: 1/27/2021 1/28/2021 1/28/2021 1/28/2021 1/28/2021 1/28/2021 2/2/2021 2/10/2021 2/11/2021 2/11/2021
AN ORDINANCE
BY CITY UTILITIES COMMITTEE
AN ORDINANCE AMENDING ORDINANCE 17-O-1387, IN ACCORDANCE WITH SECTION 2-1163 SUBSECTION (C) (REMEDIES AFTER AWARD), ARTICLE X, PROCUREMENT AND REAL ESTATE CODE OF THE CITY OF ATLANTA CODE OF
ORDINANCES TO AMEND THE TERMS FOR A NUTRIENT RECOVERY SYSTEM
OPERATION AND MAINTENANCE SERVICES AGREEMENT AND A FERTILIZER OFFTAKE AGREEMENT WITH OSTARA USA, LLC, ON BEHALF OF THE DEPARTMENT OF WATERSHED MANAGEMENT, TO A TERM OF FIVE (5) YEARS WITH RETROACTIVE EFFECT FROM FEBRUARY 29, 2020 THROUGH FEBRUARY 28, 2025 WITH THREE (3) FIVE (5) YEAR RENEWAL OPTIONS TO BE EXERCISED AT THE DISCRETION OF THE CITY, IN AN AMOUNT, FOR THE OPERATION AND MAINTENANCE AGREEMENT, OF TWO HUNDRED NINETY-THREE THOUSAND DOLLARS AND ZERO CENTS ($293,000.00) ANNUALLY AND NOT TO EXCEED ONE MILLION FOUR HUNDRED SIXTY FIVE THOUSAND DOLLARS AND ZERO CENTS ($1,465,000.00) OVER THE INITIAL TERM, WITH FUNDING FOR YEARS 3 THROUGH 5 TO BE SUBJECT TO AND EXPRESSLY CONTINGENT UPON THE ADOPTION AND APPROVAL OF BUDGETS FOR THE FISCAL YEARS 2022 THROUGH 2024; TO RATIFY ALL SERVICES RENDERED FROM FEBRUARY 29, 2020; AND FOR OTHER PURPOSES.
WHEREAS, in accordance with Section 4 of Ordinance No. 17-O-1387, the City of Atlanta (“City”) was authorized to enter into agreement FC-10043, Nutrient Recovery System Operation and Maintenance Services, with Ostara USA, LLC for operation and maintenance services for the nutrient recovery system, on behalf of the Department of Watershed Management, in an amount not to exceed Two Hundred Ninety-Three Thousand Dollars Zero Cents ($293,000.00) annually plus an incremental indexed amount, with a maximum expenditure for all operations and maintenance services not to exceed Three Million Two Hundred Fifty Thousand Dollars and Zero Cents ($3,250,000.00) (“OM Agreement”); and
WHEREAS, in accordance with Section 5 of Ordinance No. 17-O-1387, the City of Atlanta (“City”) was authorized to enter into agreement FC-10043, Guaranteed Long Term Fertilizer Off-take Agreement, with Ostara USA, LLC for the purchase of recovered commercially specified struvite, on behalf of the Department of Watershed Management, for Four Hundred Twenty-Five Dollars ($425.00) per ton (or such other lesser amount as may be agreed upon by the parties for non-standard by-product struvite) for use as a fertilizer granule (“OP Agreement”); and
WHEREAS, the term authorized for each of the OM Agreement and OP Agreement under Ordinance No. 17-O-1387 was for ten (10) years with two (2) five (5) year renewal options to be exercised at the discretion of the City; and
WHEREAS, the effective date of each of the OM Agreement and the OP Agreement was contemplated to be upon substantial completion of the nutrient recovery system; and
WHEREAS, the project achieved substantial completion on February 29, 2020 and Ostara USA, LLC began providing all operations and maintenance services and off-take services for the nutrient recovery system as of that date without agreements being executed; and
WHEREAS, the City desires to change the term of both the OM Agreement and the OP Agreement authorized under Ordinance No. 17-O-1387 from a term of ten (10) years with two (2) five (5) year renewal options to an initial term of five (5) years with three (3) five (5) year renewal options to be exercised at the discretion of the City; and
WHEREAS, the Commissioner of the Department of Watershed Management and the Chief Procurement Officer recommend amending 17-O-1387 to change the term of both the OM Agreement and the OP Agreement to a term of five (5) years with retroactive effect from February 29, 2020 through February 28, 2025, with three (3) five (5) year renewal options to be exercised at the discretion of the City, in an amount, for the OM Agreement, of Two Hundred Ninety-Three Thousand Dollars and Zero Cents ($293,000.00) annually and not to exceed One Million Four Hundred Sixty Five Thousand Dollars Zero Cents ($1,465,000.00) over the initial term, with funding for Years 3 through 5 to be and subject to and expressly contingent upon the adoption and approval of budgets for the fiscal years 2022 through 2024, plus an indexed amount, if any, according to the Consumer Price Index (All Urban Consumers) for each renewal term, and to ratify all services rendered by Ostara USA, LLC since February 29, 2020.
THE CITY COUNCIL OF THE CITY OF ATLANTA, GEORGIA, HEREBY ORDAINS:
SECTION 1: That in accordance with Section 2-1163, Subsection (c) (Remedies After Award), Article X of the Procurement and Real Estate Code of the City of Atlanta Code of Ordinances, Section 4 of 17-O-1387 is repealed and replaced with the following:
“That the Mayor or her designee is authorized to execute a services agreement with Ostara USA, LLC for the operation and maintenance of the Pearl® nutrient recovery system, on behalf of the Department of Watershed Management, for a term of five (5) years with retroactive effect from February 29, 2020 through February 28, 2025, with three (3) five (5) year renewal options to be exercised at the discretion of the City, in an amount of Two Hundred Ninety-Three Thousand Dollars and Zero Cents ($293,000.00) annually and not to exceed One Million Four Hundred Sixty Five Thousand Dollars Zero Cents ($1,465,000.00) over the initial term, with funding for Years 3 through 5 to be subject to and expressly contingent upon the adoption and approval of budgets for the fiscal years 2022 through 2024, plus an indexed amount, if any, according to the Consumer Price Index (All Urban Consumers) for each renewal term.”
SECTION 2: That in in accordance with Section 2-1163, Subsection (c) (Remedies After Award), Article X of the Procurement and Real Estate Code of the City of Atlanta Code of Ordinances, Section 5 of 17-O-1387 is repealed and replaced with the following:
“That the Mayor or her designee is authorized to execute a guaranteed long term fertilizer off-take agreement with Ostara USA, LLC for the purchase of recovered commercially specified struvite, on behalf of the Department of Watershed Management, for Four Hundred Twenty-Five Dollars ($425.00) per ton (or such other lesser amount as may be agreed upon by the parties for non-standard by-product struvite) for use as a fertilizer granule, for a term of five (5) years with
retroactive effect from February 29, 2020 through February 28, 2025, with three (3) five (5) year renewal options to be exercised at the discretion of the City.”
SECTION 3: That all services rendered by Ostara USA, LLC, since February 29, 2020 are hereby ratified.
SECTION 4: All other ordinances or parts of ordinances in conflict with this Ordinance are hereby waived to the extent of such conflict.
Mikita K. Browning COMMISSIONER Keisha Lance Bottoms
MAYOR DEPARTMENT OF WATERSHED MANAGEMENT 72 Marietta Street, NW
Atlanta, Georgia 30303
C I T Y O F A T L A N T A
MEMORANDUM
To: Martin H. Clarke, Chief Procurement Officer Department of Procurement
From: Mikita K. Browning, Commissioner
Department of Watershed Management
Cc: Robert A. Bocarro, P.E., Deputy Commissioner Quinton Fletcher, Deputy Commissioner Ade Abon, Program Director
Robert Sherrod, Urban Planner, III Joyce Webb, Procurement Manager
Cynthia L. Lunn, Watershed Manager, Sr.
Date: January 21, 2021
Re: Legislative Request for FC-10043, RM Clayton Water Reclamation Center Nutrient Recovery System Operations and Maintenance Services Agreement and Fertilizer Offtake Agreement Contractor: Ostara USA, LLC
Term: Five (5) Years with Three (3) Five (5) Years Renewal Options Effective Date: February 29, 2020 through February 28, 2025
The Department of Watershed Management desires to enter FC-10043-OP, Operations and Maintenance Services Agreement and FC-10043-OP, Fertilizer Offtake Agreement, for the above referenced contract; amend the terms of the agreements to Five (5) Years with Three (3) Five (5) Years Renewal Options; establish a retroactive Effective Date of February 29, 2020; and ratify services rendered by Ostara USA, LLC.
It was contemplated in the original design-build agreement that upon substantial completion, Ostara USA, LLC would operate and maintain the System and purchase struvite produced by the System. The project reached substantial completion on February 28, 2020.
The costs for FC-10043-OP, Operations and Maintenance Services Agreement is an amount not to exceed Two Hundred Ninety-Three Thousand Dollars Zero Cents ($293,000.00) annually, One Million Four Hundred Sixty-Five Thousand Dollars and Zero Cents ($1,465,000.00) over the initial term, with funding for Years 3 through 5 to be and subject to and expressly contingent upon the adoption and approval of budgets for the fiscal years 2022 through 2024, plus an indexed amount, if any, according to the Consumer Price Index (All Urban Consumers) for each renewal term.
Page Two of Two Legislative Request for SS-S-1200080, IBM Maximo Asset Management Annual Software Subscription and Support Services – Amendment No. 1
The guaranteed long-term fertilizer off-take agreement with Ostara USA, LLC for the purchase of recovered commercially specified struvite, on behalf of the Department of Watershed Management, in the amount of Four Hundred Twenty-Five Dollars ($425.00) per ton (or such other lesser amount as may be agreed upon by the parties for non-standard by-product struvite) for use as a fertilizer granule. An Ordinance is being submitted for Cycles 4 and 5 (February 19, 2021) adoption.
If you have any additional questions, please contact Cynthia Lunn, Watershed Manager, Sr. at 678.720.6857.
DocuSign Envelope ID: 1BB1F601-84E2-42E6-B8AA-2B1D79262502 DocuSign Envelope ID: 43580184-B38B-4D04-AEFA-A0917D3D0269 DocuSign Envelope ID: 9279C438-615A-4E36-978A-D7DA449E788A
MEMORANDUM
TO: Mohamed M. Balla, Deputy Commissioner, OFA
Department of Watershed Management
FROM: Robert A. Bocarro, P.E., Deputy Commissioner, OES
Department of Watershed Management
DATE: December 16, 2020
Re: OSTARA USA, LLC / FC-10043 - REVISE CONTRACT TERM AND NUMBER OF RENEWAL OPTIONS FOR THE O&M SERVICE AGREEMENT AND OFFTAKE AGREEMENT / O&M BUDGET PAYMENT FOR RM CLAYTON WRC - $586,000.00
The purpose of this legislation is for three reasons: 1) To revise the initial term of the agreement for the Operation and Maintenance Agreement (FC-10043-OM) and Offtake Agreement (FC-10043-OP) from ten years to five years. 2) Revise the number of five-year renewable options for the Operation and Maintenance Agreement (FC-10043-OM) and Offtake Agreement (FC-10043-OP) from two to three. 3) To obtain authorization to pay Ostara USA, LLC for the first two years of operation and maintenance services from February 29, 2020 to February 28, 2022 in the amount of $586,000.00.
PTAEO:
17111674 (RM Clayton Compliance Upgrade) 103 (Nutrient Harvesting) 505221391 (Water and Wastewater R&E Fund) 5414002 (Facilities other than Buildings) COA (City of Atlanta)
FDOA:
5051 (Water & Wastewater Renewal Revenue Fund) 170204 (DWM Treatment Plant- RM Clayton) 5212001 (Consulting / Professional Services) 4335000 (Sewage Treatment Plants)
If you have any questions or need any additional information, please feel free to contact Robert Bocarro at rbocarro@atlantaga.gov or 404-546-3229.
cc: Cristi Bickham, DWM Quinton Fletcher, DWM Ade Abon, DWM Demetris Johnson, DWM Robert Sherrod , DWM Mikita K. Browning COMMISSIONER Keisha Lance Bottoms
MAYOR
C I T Y O F A T L A N T A DEPARTMENT OF WATERSHED MANAGEMENT
72 MARIETTA STREET NW ATLANTA, GEORGIA 30303
