HomeMy WebLinkAboutItem 08 - Award Contract to Alexander's Contract Services for Meter Reading Services
Department Name: Utilities
Cost Center: 6105
For Agenda of: March 3, 2020
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Jennifer Thompson, Utilities Business Manager
SUBJECT: AWARD CONTRACT TO ALEXANDER’S CONTRACT SERVICES FOR
METER READING SERVICES
RECOMMENDATION
Award a three-year contract to Alexander’s Contract Services for contract utilities meter reading
in an amount not to exceed $195,000 per year.
DISCUSSION
Background
On December 3, 2019 the City Council authorized staff to advertise a Request for Proposals
(RFP) for contract meter reading (Attachment A) and to authorize the City Manager to execute
an agreement if the selected proposal is less than or equal to $182,000.
Three proposals were received and evaluated. Only one proposal, from Alexander’s Contract
Services (Alexander’s), was determined to be responsive to all required elements of the RFP. As
the total cost of Alexander’s contract exceeds the previously authorized $182,000, staff is
returning to the City Council to award the contract.
Previous Council or Advisory Body Action
On December 3, 2019 the City Council authorized staff to advertise an RFP for contract meter
reading.
Policy Context
The Fiscal Sustainability and Responsibility Major City Goal work plan includes developing
efforts to increase operational efficiencies. Contract meter reading has proven to increase
operational efficiencies.
Public Engagement
This is an administrative item, so no outside public engagement was completed. Public comment
can be provided to the City Council through written correspondence prior to the meeting and
through public testimony at the meeting.
CONCURRENCE
The Finance Department concurs with this recommendation.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
Sewer Fund $136,066 $195,000
State
Federal
Fees
Other:
Total $195,000
Alexander’s charges $1.01 per meter read plus $0.25 for each certified -read photograph. Meter
reads are photographed when the water consumption falls outside of a normal range based upon
pre-specified parameters. There are currently approximately 15,800 water meters in the City
resulting in monthly water meter reads costing $15,958 per month, or $191,496 per year.
Alexander’s certifies approximately 400 meter reads per month which will cost $100 per month,
or $1,200 per year. The “not-to-exceed” contract price is $195,000 to allow for new meters that
will be installed during the three-year term of the contract. The additional cost in the current
fiscal year can be covered by the Sewer Fund budget.
Contract meter reading benefits both the Water and Sewer funds. Currently, t hough, the entire
Utility Billing Program budget, including contract meter reading, is located within the Sewer
Fund. This is offset by budget in the Water Distribution Program, a Water Fund Program. Water
Distribution pays for two Water Distribution Operators whose responsibilities include
maintaining water meters; all of the water meter purchases; and other operating expenditures. At
the end of each year these expenditures are reconciled to ensure that the Water and Sewer Funds
are each contributing equally to water meter reading and maintenance. Staff will be modifying
these budgets with the Financial Plan Supplement to more accurately reflect each Funds
responsibility for these expenditures.
ALTERNATIVES
Do not Award the Contract. Council may decide not to award the contract to Alexander’s
Contract Meter Reading however, the current contract will expire March 31, 2020. Staff does not
recommend this option, as the City has come to rely upon and recognize the benefits of contract
meter reading.
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Attachments:
a - COUNCIL READING FILE - Council Agenda Report from December 3, 2019
b - Agreement with Alexander's Contract Services
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AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on ______________ by
and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and
ALEXANDER’S CONTRACT METER READING, hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, on ______________, City requested proposals for Contract Meter Reading Services,
per Project No. 1912-001; and
WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City
for said project; and
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and
entered, as first written above, for three years with the option to extend for two additional years upon
agreement of both parties.
2. INCORPORATION BY REFERENCE. City Project No. 1912-001 and Contractor’ proposal
dated January 7, 2020 are hereby incorporated in and made a part of this Agreement.
3. CITY'S OBLIGATIONS. For providing the services as specified in this Agreement, City will
pay, and Contractor shall receive therefore compensation in a sum not to exceed $1.01 per water meter
plus/minus any agreed upon incentives and/or penalties.
4. CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and
agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to
do everything required by this Agreement and the said specifications.
5. AMENDMENTS. Any amendment, modification or variation from the terms of this
Agreement shall be in writing and shall be effective only upon approval by the City Manager.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto.
No oral agreement, understanding or representation not reduced to writing and specifically incorporated
herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation
be binding upon the parties hereto.
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7. NOTICE. All written notices to the parties hereto shall be sent by United States mail,
postage prepaid by registered or certified mail addressed as follows:
City Jennifer Thompson
Utilities Department
879 Morro St. San Luis Obispo, Ca 93401
Consultant Mark Hibsham
CEO
8655 Morro Rd. Atascadero, Ca 93422
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that
everyone executing this agreement on behalf of each party is a person duly authorized and empowered
to execute Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first above written.
CITY OF SAN LUIS OBISPO:
By: _____________________________________
Heidi Harmon, Mayor
APPROVED AS TO FORM: CONSULTANT:
________________________________ By: _____________________________________
J. Christine Dietrick, City Attorney Mark Hibshman, CEO
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