Pampa commission approves Amendment No. 3 with OMI (Jacobs) for wastewater plant operations

The City Commission approved Amendment No. 3 to the amended and restated operations and management agreement with Operations Management International, referenced in the contract as OMI (now operating under Jacobs Engineering). The council approved the measure after staff summarized the changes and fielded questions about budgeting and equipment age.

City staff explained OMI has provided services to the city since 1985 and the current agreement is year four of a 10-year term signed in 2022. Under Amendment No. 3, the contractor agreed to no fee increase for the year and to assume operations and maintenance responsibility for the reuse irrigation pump station at Hidden Hills. The amendment also raises the contractors non-capital repair budget from $42,000 to $55,000; staff said the $42,000 level had not kept pace with rising costs and that the city has exceeded that amount in recent years.

Commissioners asked how the contract price is set under the 10-year agreement. Staff explained the price is negotiated annually, with a 1% cap; if the parties cannot agree, the contract contains a fallback formula tied to the consumer price index. Staff described plant equipment age as a driver of repair costs, noting upgrades in 2002 and some pumps still dating to the 1970s.

The motion to authorize the city manager to execute Amendment No. 3 carried on a voice vote; no opposing votes were recorded in the audio transcript.