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HomeMy WebLinkAboutC10 RFP for Contract Meter ReadingCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number August 19, 2014 C10 FROM: Carrie Mattingly, Utilities Director Prepared By: David Hix, Utilities Deputy Director - Wastewater Brigitte Elke, Business Manager Ron Munds, Utilities Services Manager SUBJECT: REQUEST TO AUTHORIZE STAFF TO ADVERTISE A REQUEST FOR PROPOSALS FOR CONTRACT WATER METER READING RECOMMENDATION Authorize staff to advertise a Request for Proposals (RFP) for contract meter reading in order to resolve irregular billing period lengths and dates during the Winter Water Use billing cycle. DISCUSSION Background In 2007, the City implemented its current volume based sewer user charge. In order to gauge water used for irrigation purposes versus water discharged into the sewer system from single family residences, the rate structure established a sewer cap period during the winter months when outdoor irrigation is minimal or turned off. The sewer cap period, or Average Winter Water Use (AWWU) period, establishes the residential sewer cap during three winter months and the average monthly use represents the maximum sewer volume charge for the residence during summer irrigation months. There are currently four full time employees (two regular and two temporary due to recent retirements) who read and maintain meters and related infrastructure. Readings taken by these staff members in the winter months help establish the AWWU period. Since there are only four staff members to cover approximately 14,000 meters, meter reading dates for the AWWU period vary according to staffing availability. This means that the AWWU period for some ratepayers is different than other ratepayers, which creates non-standardized billing period lengths and dates citywide. Contract Meter Reading A viable option to achieve consistency in determining the AWWU period and resolve changing billing dates could be to contract out meter reading services. Contract meter reading would allow for all meters to be read during the first week of each month, which would help standardize the AWWU period for all ratepayers. Contract meter reading will also give the City added flexibility to shift the AWWU period in response to seasonal conditions such as prolonged drought. Recent dry winter months and on- going drought conditions have raised concerns from the City Council and ratepayers about the drought’s effect on the residential sewer caps established during the AWWU period. On May 6, 2014, the City Council directed staff to return with a draft policy to establish guidelines for AWWU determination related to drought situations. Conducting an RFP process will help clarify C10 - 1 RFP for Contract Meter Reading Page 2 if contract meter reading will help alleviate Council and ratepayer’s concerns, and will inform ongoing development of the requested policy for drought situations. Nexus with Utilities Department Organizational Assessment Consistent with the Utilities Department Strategic Plan established in 2009, the Utilities Department is working on an organizational review to assess the internal structure and work capacity requirements of the department. The strategic plan contains an organizational goal to ensure excellence in performance and service delivery. Based on the initial workload analysis and other data developed for the assessment, contract meter reading could provide solutions to the needs surfacing in the review of the Water Distribution and Customer Service sections. A preliminary work analysis indicates that additional staffing resources in these areas will be needed in order to continue to provide essential services. If the City Council approves the recommended action, staff will return for the Council’s consideration results of the RFP together with the subsequent impacts of contract meter reading on the department’s organizational assessment. Request for Proposals If the City Council is supportive of exploring contract meter reading staff will advertise the Request for Proposals (Attachment 1). Responsive bids would then be brought back to the Council with an analysis of the information provided by the bidders, as well as the fiscal implications and organizational impacts to the City. Prior to coming to Council to discuss exploring contract meter reading and the issuance of a RFP, a meeting was held with all the employees in Water Distribution and Utilities Services, a representative from the Finance and Information Technology Department Revenue Division, as well as SLOCEA representatives. There was support from the employees and SLOCEA to explore contract meter reading. A formal meet and confer process will be needed should the City decide to further pursue contract meter reading. Next Steps If Council authorizes the advertising of an RFP for contract meter reading, below is the timeline to bring this item back to Council. This will include staff’s recommendation for an AWWU policy, staffing implications regarding Utilities organizational assessment, how such a change aligns with the department’s Strategic Plan and coordination with other affected departments. 9/26/14 Evaluation of Proposals Coordinate with Finance 10/17/14 Depending Conclusion - Meet &Confer with SLOCEA 11/18/14 Recommendation to City Council regarding AWWU Policy & Contract Meter Reading. 3/1/15 Possible Implementation of Contract Meter Reading C10 - 2 RFP for Contract Meter Reading Page 3 FISCAL IMPACT There is no direct cost related to the recommendations to issue an RFP. However if contract meter reading is deemed a viable option, staff will return with a detailed fiscal impact pertaining to any recommendations that will come forth from the process including the cost of such a contract and the associated fiscal impacts on the department’s organizational assessment. ALTERNATIVE 1. Do not authorize staff to advertise an RFP and direct staff to draft an AWWU policy that does not consider the assessment of contract meter reading. Council should only choose this alternative if it is opposed to the concept of contract meter reading. ATTACHMENT Attachment 1 - Contract Meter Reading RFP 2014 T:\Council Agenda Reports\2014\2014-08-19\Winter Water Use Policy and RFP for Contract Meter Reading (Mattingly-Hix-Munds) C10 - 3 Attachment 1 The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities. Telecommunications Device for the Deaf (805) 781-7410. 990 Palm Street  San Luis Obispo, CA 93401 Notice Requesting Proposals for City of San Luis Obispo Utilities Department CONTRACT WATER METER READING SERVICES The City of San Luis Obispo’s Utilities Department is requesting sealed proposals for CONTRACT WATER METER READING SERVICES pursuant to Specification No. 91315. All proposals must be received by the Department of Finance by 3:00 p.m., September 11, 2014 when they will be opened publicly in the City Hall Council Hearing Room, 990 Palm Street, San Luis Obispo, CA 93401. Proposals received after said time will not be considered. To guard against premature opening, each proposal shall be submitted to the Finance Division in a sealed envelope plainly marked with the proposal title, specification number, proposer name, and time and date of the proposal opening. Proposals shall be submitted using the forms provided in the specification package. There will be a mandatory pre-proposal meeting on Wednesday, September 3, 2014. Interested proposers should meet at 10:00 a.m. at the Utilities Department Office, 879 Morro Street, San Luis Obispo to ask questions of City staff regarding the project. Additional information may be obtained by contacting Ron Munds, Utilities Services Manager, at 805-781-7258. C10 - 4 Attachment 1 Specification No. 91315 TABLE OF CONTENTS A. Description of Work ............................................................1 B. General Terms and Conditions ............................................9 Proposal Requirements Contract Award and Execution Contract Performance C. Special Terms and Conditions ..........................................14 Contract Term Estimated Quantities Proposal Content Proposal Evaluation and Selection Proposal Review and Award Schedule Unrestrictive Brand Names Start and Completion of Work Accuracy of Specifications D. Agreement ..........................................................................16 E. Insurance Requirements .....................................................18 F. Proposal Submittal Forms ..................................................20 Proposal Submittal Summary References C10 - 5 City of San Luis Obispo Request for Proposals, Specification 91315 1 Section A DESCRIPTION OF WORK BACKGROUND Currently, the City’s Utilities Customer Service staff is responsible for reading approximately 14,700 water meters on a monthly basis. In addition to these regular readings, staff is responsible for readings for account activations and closings, billing disputes, and high-read investigations. There is currently four full-time Customer Service staff which receives the equivalent of one full time position of support from the Water Distribution section to conduct customer service meter readings and related maintenance. There is three staff in the Finance Department associated with utility billing, and two staff in Utilities Services section that conduct high-read investigations. With increasing water system maintenance and repair demands and the desire to consolidate the meter reading routes into a five day period at the beginning of each month for consistent billing purposes, the City has been researching efficiency measures which would allow for the shifting of resources to address these demands and address customer service concerns regarding billing frequency and timeliness. Contract water meter reading was identified as a measure to support this objective. SCOPE OF WORK The City is seeking proposals for a three-year contract, with the option to extend for two additional years, for monthly water meter reading services. The following sections explain the scope of work and technical requirements the City is seeking. 1. Start-up Activities The Contractor will perform all start-up activities necessary to provide monthly meter reading services for up to 15,000 customer accounts. Initial start-up meter reading activities include, but are not limited to, staff training, route efficiency confirmation, integration of the Contractor’s and City’s meter reading activities, integration of meter reading information for utility billing and development of service reports. The Contractor shall be available to meet on a regular basis during the start-up period as determined by the City and/or Contractor to resolve any issues, clarify information or provide alternatives to successfully transition to contract meter reading services. The Contractor shall demonstrate to the City’s satisfaction full compatibility with City software prior to the go live date of March 15, 2015. As shown in Figures 1 and 2, the City has detailed maps of existing water meter routes that were prepared using GPS data. This data (including route number, sequence, address and meter number) would be made available for the Contractor to use in developing meter routes. The Contractor will be responsible for reading all meters assigned. The City has approximately C10 - 6 City of San Luis Obispo Request for Proposals, Specification 91315 2 Meter Size Quantity 5/8 inch 7,051 3/4 inch 3,691 1 inch 3,119 1.5 inch 408 2 inch 371 3 inch 32 4 inch 31 6 inch 9 8 inch 8 Total 14,720 nine brands of water meters currently used in the system including Badger, Elster, Metron, Sensus, Itron, Master, Neptune, Hersey, and Rockwell. The City is in the process of analyzing the benefits of standardizing the brand of meters being used. The City’s meters range in size from 5/8” to 8” (approximately 80 meters are in vaults). Each month, the Contractor must read the following types and approximate quantities of meters. These quantities are current estimates and it is understood that the City may add and remove meters over the term of the contract. Upon the City’s execution of the contract, the successful Contractor will have 30 calendar days to become familiar with the meter reading routes and operating procedures, as well as successfully verify and/or integrate meter reading software with the City’s billing software before commencing the reading of the meters. Exceptions may be granted if mutually agreed to by the Contractor and the City’s Contract Administrator. C10 - 7 City of San Luis Obispo Request for Proposals, Specification 91315 3 Figure 1. Existing City Water Meter Routes C10 - 8 City of San Luis Obispo Request for Proposals, Specification 91315 4 Figure 2. Existing Railroad Route. C10 - 9 City of San Luis Obispo Request for Proposals, Specification 91315 5 2. Meter Reading Requirements Contractor will read each meter once per month with at least 99.8 percent accuracy (i.e., no more than two (2) missed or incorrect meter reads per 1,000 meters). A penalty of $15.00 per error will be applied against the Contractor’s monthly invoice for each missed or incorrect read in excess of two (2) errors per 1,000 meters. The meter reading penalties will commence 90 days after the execution of the contract. All meters will be read during the first five working days of the calendar month and all reads provided to the City’s Utility Billing section daily with all data transmitted by the end of the fifth working day in an electronic format compatible with the City’s operating and billing systems. See also #11, Normal Work Hours. There shall be no change in the number or configuration of the water meter reading routes without the prior consent of the Contract Administrator. Each water meter route must be read in a sequence and timely fashion to support the City’s utility billing. The Contractor shall read each water meter regardless if the meter is turned on or off. Estimations will not be accepted. It is expressly understood that Contractor will make every effort to read all meters in the route, however, if a read is not obtained due to no fault of Contractor, the read shall be noted but shall be marked as “Unread Meter” with a note. The Contractor shall report all meter reading issues by the end of each working day to the City’s designated person. The proposal shall contain what problems the respondent normally reports. Contractor shall coordinate with the City’s Contract Administrator and submit any and all proposed meter route changes that will optimize reading schedule and efficiencies. Coordination with the Contract Administrator is required if re-sequencing of meter routes is needed. There a number of new developments being proposed within the city limits, the Contractor’s proposal shall demonstrate the capacity, or ability to obtain the capacity, to expand meter reading services should the City determine this service is needed. Expansion of service during the contract term shall be at the sole discretion of the City. The cost to provide the expanded service shall be at the same rate as provided in the Contractor’s proposal unless otherwise negotiated and agreed to by both parties in writing. 3. Meter Reading Equipment The City recently launched the use of a new meter reading software, DataZeo which is integrated with the City’s utility billing software (Springbrook). We are requesting the Contractor be able to either: A). Provide and utilize DataZeo application to read the meters, paying the monthly data/phone charges or providing its own handheld device for reading meters, (at no additional cost to the City); or C10 - 10 City of San Luis Obispo Request for Proposals, Specification 91315 6 B). Offer, at no charge, the Contractor’s web based meter reading software to launch citywide. The Contractor’s software shall allow for reading synchronization using a wireless process from the field throughout the day and have the ability to receive re-reads from the office to the handhelds wirelessly. Again, it is the City’s goal is to use only one software version for all meter reading. The Contractor shall provide its own handheld devices and will maintain those devices required to read meters for the City. Should the Contractor offer its own software to use citywide, contractor will ensure that all meter reading equipment, software and files used are compatible with City operating and billing systems. Integration must be completed within 30 days of the City’s issuance to proceed. 4. Meter Read In-Field Verification In the field, the Contractor will validate questionable reads based on the City’s specified variance parameters (parameters such as if the consumption exceeds 125 percent of the previous read). The Contractor will provide “certified water meter reads” using handheld device technology with picture taking capabilities to document and verify each meter read (please indicate whether an additional charge would apply). 5. Repair Work Order Reporting The Contractor shall note obvious problems with the meter, such as, but not limited to; broken meter, broken lids, dead meters, meter leaks, high/low consumption, meters found and not listed and possible customer leaks. Contractor will collect data through its own system with the capability to transmit the data to the City in order to generate work orders for needed repairs (broken/obscured register, meter box too high/low). Contractor shall notify the City the same day of any hazardous conditions requiring immediate attention (broken water meter box lids, broken meters, potential water leaks, construction issues). A penalty of $15.00 per meter will be credited against the Contractor’s invoice for each inaccurate work order. 6. Stopped and Stuck Water Meters Contractor will check for "stopped/stuck" meters on all accounts that reflect no consumption by reviewing the meter status (on or off) and occupant activity (visibly occupied or unoccupied). Contractor will report suspected malfunctioning meters to the City for repairs. 7. Water Meter Reporting Incentive The City will credit $15.00 to the Contractor for each inoperative meter identified by the Contractor not previously identified as inoperative by the City or the Contractor and verified by the City to be inoperative. Excluded from the meter reporting incentive is any meter that is inoperative due to physical abuse or damage by the Contractor. C10 - 11 City of San Luis Obispo Request for Proposals, Specification 91315 7 8. Report to the City any located meters that are not within the City read file. Contractor will inform the City’s Contract Administrator of the address, meter ID number, location and current read. The City will credit $15.00 to the Contractor for each meter that is not within the City’s active read file. 9. Illegal Connection Incentive The City will credit a $50.00 incentive to the Contractor per location for identification of illegal connections not previously identified as an illegal connection by the City or the Contractor and verified by the City to be an illegal connection. 10. Normal Work Hours Contractor’s normal hours of operation will be between the hours of 7:00 a.m. and 7:00 p.m., Monday through Friday. Deviation or exceptions from the work schedule must be approved by the City’s Contract Administrator in advance. Contractor will submit a list of holidays observed by Contractor with its proposal. The awarded Contractor shall be able to manage its own staff, ensuring they have completed the routes that have been assigned on a daily basis. 11. Contractor’s Employees and Vehicles Due to its visibility in the community, the Contractor represents the City. Therefore, the awarded Contractor’s employees shall dress in a professional manner with the company’s logo clearly marked on an outer garment such as a uniform shirt or jacket, possess and display identification such as a tag or badge holder, drive a clean, clearly marked, well maintained vehicle, marked appropriately for the service provided in accordance with California traffic law and conduct themselves in a manner that reflects upon the City in a professional manner. Uniforms and/or clothing and vehicles shall be provided by the Contractor. At all times, the Contractor shall employ only competent readers, experienced or well trained in the task being performed, and who are familiar with meter locations. Employees must be able to effectively communicate in a courteous manner when approached by a customer and will refrain from answering questions but provide information or materials supplied by the City directing the customers to a City contact. Contractor shall continuously oversee the activities of such readers. At the City’s written request, and based upon reasonable evidence, the Contractor shall immediately remove and replace any incompetent, careless or negligent meter readers. Ongoing Coordination/Meetings Contract amount shall include the cost for ongoing coordination and other meetings during the contract term as agreed upon by the City and Contractor. C10 - 12 City of San Luis Obispo Request for Proposals, Specification 91315 8 OPTIONAL SERVICES Optional Service 1: Provide cost to turn on and off water meter service at the initiation and discontinuance of service. Optional Service 1: Provide cost to reread meters at the City’s requests. C10 - 13 City of San Luis Obispo Request for Proposals, Specification 91315 9 Section B GENERAL TERMS AND CONDITIONS PROPOSAL REQUIREMENTS 1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal shall meet all of the terms, and conditions of the Request for Proposals (RFP) specifications package. By virtue of its proposal submittal, the proposer acknowledges agreement with and acceptance of all provisions of the RFP specifications. 2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the specifications and accompanied by any other required submittals or supplemental materials. Proposal documents shall be enclosed in an envelope that shall be sealed and addressed to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis Obispo, CA, 93401. In order to guard against premature opening, the proposal should be clearly labeled with the proposal title, specification number, name of proposer, and date and time of proposal opening. No FAX submittals will be accepted. 3. Insurance Certificate. Each proposal must include a certificate of insurance showing: a. The insurance carrier and its A.M. Best rating. b. Scope of coverage and limits. c. Deductibles and self-insured retention. The purpose of this submittal is to generally assess the adequacy of the proposer’s insurance coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not required until contract award. The City’s insurance requirements are detailed in Section E. 4. Proposal Quotes and Unit Price Extensions. The extensions of unit prices for the quantities indicated and the lump sum prices quoted by the proposer must be entered in figures in the spaces provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount stated by any proposer for any item are not in agreement, the unit price alone will be considered as representing the proposer's intention and the proposal total will be corrected to conform to the specified unit price. 5. Proposal Withdrawal and Opening. A proposer may withdraw its proposal, without prejudice prior to the time specified for the proposal opening, by submitting a written request to the Director of Finance for its withdrawal, in which event the proposal will be returned to the proposer unopened. No proposal received after the time specified or at any place other than that stated in the "Notice Inviting Bids/Requesting Proposals" will be considered. All proposals will be opened and declared publicly. Proposers or their representatives are invited to be present at the opening of the proposals. 6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to make or file, or to be interested in more than one proposal, except an C10 - 14 City of San Luis Obispo Request for Proposals, Specification 91315 10 alternative proposal when specifically requested; however, an individual or business entity that has submitted a sub-proposal to a proposer submitting a proposal, or who has quoted prices on materials to such proposer, is not thereby disqualified from submitting a sub-proposal or from quoting prices to other proposers submitting proposals. 7. Cooperative Purchasing. During the term of the contract, the successful proposer will extend all terms and conditions to any other local governmental agencies upon their request. These agencies will issue their own purchase orders, will directly receive goods or services at their place of business and will be directly billed by the successful proposer. 8. Communications. All timely requests for information submitted in writing will receive a written response from the City. Telephone communications with City staff are not encouraged, but will be permitted. However, any such oral communication shall not be binding on the City. CONTRACT AWARD AND EXECUTION 9. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of 90 days for examination, comparison and to evaluate the impacts of the changes to the Utilities Department’s organizational structure. Since contract meter reading is a significant change to the current meter reading business model, understanding impacts of the change may take additional time to work through before the award of the contract. The City also reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations. See the "special terms and conditions" in Section C of these specifications for proposal evaluation and contract award criteria. 10. Competency and Responsibility of Proposer. The City reserves full discretion to determine the competence and responsibility, professionally and/or financially, of proposers. Proposers will provide, in a timely manner, all information that the City deems necessary to make such a decision. 11. Contract Requirement. The proposer to whom award is made (Contractor) shall execute a written contract with the City within ten (10) calendar days after notice of the award has been sent by mail to it at the address given in its proposal. The contract shall be made in the form adopted by the City and incorporated in these specifications. 12. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages and amounts specified in Section E of these specifications within ten (10) calendar days after notice of contract award as a precondition to contract execution. 13. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license and tax certificate before execution of the contract. Additional information regarding the City's business license and tax program may be obtained by calling (805) 781-7134. C10 - 15 City of San Luis Obispo Request for Proposals, Specification 91315 11 CONTRACT PERFORMANCE 14. Ability to Perform. The Contractor warrants that it possesses, or has arranged through subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work hereunder in compliance with any and all federal, state, county, city, and special district laws, ordinances, and regulations. 15. Faithful Performance Bond Requirement. The proposer to whom the contract is awarded (Contractor) shall execute the contract and furnish a surety bond in the amount of 6 months of the annual contract price guaranteeing the faithful performance of the contract, including any attorney's fees or other collection costs. 16. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances, regulations and adopted codes during its performance of the work. 17. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Contractor is required to pay. 18. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and fees, and give all notices necessary. 19. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety established by OSHA and the California Division of Industrial Safety. 20. Public and Employee Safety. Whenever the Contractor's operations create a condition hazardous to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures as are necessary to prevent accidents or damage or injury to the public and employees. 21. Preservation of City Property. The Contractor shall provide and install suitable safeguards, approved by the City, to protect City property from injury or damage. If City property is injured or damaged resulting from the Contractor's operations, it shall be replaced or restored at the Contractor's expense. The facilities shall be replaced or restored to a condition as good as when the Contractor began work. 22. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors engaged for the performance of this work that only persons authorized to work in the United States pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work hereunder. 23. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in employment of persons because of age, race, color, sex, national origin or ancestry, sexual orientation, or religion of such persons. C10 - 16 City of San Luis Obispo Request for Proposals, Specification 91315 12 24. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire, earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor due to federal government restrictions arising out of defense or war programs, then the time of completion may, at the City's sole option, be extended for such periods as may be agreed upon by the City and the Contractor. In the event that there is insufficient time to grant such extensions prior to the completion date of the contract, the City may, at the time of acceptance of the work, waive liquidated damages that may have accrued for failure to complete on time, due to any of the above, after hearing evidence as to the reasons for such delay, and making a finding as to the causes of same. 25. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance by the City of the materials, supplies, equipment or services provided by the Contractor (Net 30). 26. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to ascertain that the services of the Contractor are being performed in accordance with the requirements and intentions of this contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and approval. The inspection of such work shall not relieve Contractor of any of its obligations to fulfill its contract requirements. 27. Audit. The City shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its invoices to City as a condition precedent to any payment to Contractor. 28. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The Contractor further covenants that, in the performance of this work, no subcontractor or person having such an interest shall be employed. The Contractor certifies that no one who has or will have any financial interest in performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the performance of the work hereunder, the Contractor shall at all times be deemed an independent contractor and not an agent or employee of the City. 29. Hold Harmless and Indemnification. The Contractor agrees to defend, indemnify, protect and hold the City and its officials, agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the Contractor's employees, agents or officers that arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that the Contractor's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers or employees. C10 - 17 City of San Luis Obispo Request for Proposals, Specification 91315 13 30. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of the contract, or its right, title or interest, or its power to execute such a contract to any individual or business entity of any kind without the previous written consent of the City. 31. Termination. If, during the term of the contract, the City determines that the Contractor is not faithfully abiding by any term or condition contained herein, the City may notify the Contractor in writing of such defect or failure to perform. This notice must give the Contractor a ten (10) calendar day notice of time thereafter in which to perform said work or cure the deficiency. If the Contractor has not performed the work or cured the deficiency within the ten (10) days specified in the notice, such shall constitute a breach of the contract and the City may terminate the contract immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have any further duties, obligations, responsibilities, or rights under the contract except, however, any and all obligations of the Contractor's surety shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the termination thereof. In said event, the Contractor shall be entitled to the reasonable value of its services performed from the beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any offset from such payment representing the City's damages from such breach. "Reasonable value" includes fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement payment schedule; compensation for any other work, services or goods performed or provided by the Contractor shall be based solely on the City's assessment of the value of the work-in-progress in completing the overall work scope. The City reserves the right to delay any such payment until completion or confirmed abandonment of the project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of the compensation quoted in its proposal. C10 - 18 City of San Luis Obispo Request for Proposals, Specification 91315 14 Section C SPECIAL TERMS AND CONDITIONS 1. Contract Term. The services identified in these specifications will be used by the City for the term of the contract. The prices quoted for these items must be valid for the entire period indicated above unless otherwise conditioned by the proposer in its proposal. 2. Contract Extension. The term of the contract may be extended by mutual consent for an additional two year period. During this extended periods, unit prices may not be increased by more than the percentage change in the US consumer price index for All Urban Consumers (CPI-U). 3. Change in Work. The City reserves the right to change quantities of any item after contract award. If the total quantity of any changed item varies by 25 percent or less, there shall be no change in the agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of 25 percent shall be subject to negotiation with the Contractor. 4. Qualifications / References. Each proposer shall submit a statement of qualifications and references on the form provided in the RFP package and as described in #6 (d), Proposal Content, below. 5. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any past governmental agency bidding or contract disqualifications on the form provided in the RFP package. 6. Proposal Content. Proposals should not exceed 25 double-sided pages, including all attachments and supplemental materials. Seven copies of the proposal must be submitted. Your proposal must include the following information: a. Understanding of City’s Scope of Work Proposals shall include a description of the Vendor’s understanding of the City’s Scope of Work. b. Detailed Cost Breakdown Proposals shall include a cost for all items included in the Scope of Work described in Section A. c. Submittal Forms • Proposal submittal summary. • Certificate of insurance. • References from at least three agencies/municipalities for whom you have provided similar products/services (See Section F). d. Qualifications/References Proposals shall include detailed qualification and references representing the experience of your firm in providing similar services. The City is specifically interested in the following information: C10 - 19 City of San Luis Obispo Request for Proposals, Specification 91315 15 • Ability and experience to accurately read meters as specified in the RFP • Ability to provide the meter service within the five day schedule • Professionalism of staff 7. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee based on the following criteria: a. Quality, clarity and responsiveness of the proposal. b. Demonstrates that the technical requirements of the water meter reading system and equipment including its ability to integrate with City’s existing billing system, meets or exceeds the requirements in Section A. c. Recent experience of the contractor providing water meter reading services for similar or larger sized communities. d. Demonstrated ability of contractor to perform water meter reading services for similar sized or larger communities. e. References. Recommendations of Contractor’s water meter reading services. f. Proposed cost. As reflected above, contract award will not be based solely on price, but on a combination of factors as determined to be in the best interest of the City. After evaluating the proposals and discussing them further with the finalists or the tentatively selected contractor, the City reserves the right to further negotiate the proposed work and/or method and amount of compensation. 8. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for proposal review and contract award: Issue RFP (City Council 8/19/14) 8/22/14 Pre-proposal Meeting 9/3/14 Receive proposals 9/18/14 Complete proposal evaluation 9/26/14 Conduct finalist interviews (if needed) week of 10/6/14 Finalize staff recommendation 10/15/14 Award/execute contract (by City Council) 11/18/14 Begin Start-up Activities 3/1/15 9. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it believes will also meet the City's project objectives but in a different way. In this case, the proposer must provide an analysis of the advantages and disadvantages of each of the alternatives, and discuss under what circumstances the City would prefer one alternative to the other(s). If an alternative proposal is submitted, the maximum length of the proposal may be expanded proportionately by the number of alternatives submitted. C10 - 20 City of San Luis Obispo Request for Proposals, Specification 91315 16 Section D FORM OF AGREEMENT AGREEMENT THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [insert day, date, year] by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and [CONTRACTOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor. W I T N E S S E T H: WHEREAS, on [insert date], City requested proposals for contract water meter reading services per Specification No. 91315; WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City for said services. 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 Specification No. 91315 and Contractor's proposal dated [insert date], are hereby incorporated in and made a part of this Agreement. 3. CITY'S OBLIGATIONS. For providing equipment and services as specified in this Agreement, City will pay and Contractor shall receive therefore compensation in a total sum not to exceed $_______________. 4. CONTRACTOR'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 provide equipment and services as described in (insert exhibit reference) attached hereto and incorporated into this Agreement. C10 - 21 City of San Luis Obispo Request for Proposals, Specification 91315 17 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 Utilities Director of the City. 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. 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 City Clerk City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 Contractor Name Address 8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each individual 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. ATTEST: CITY OF SAN LUIS OBISPO ________________________________ By:_____________________________________ City Clerk Utilities Director APPROVED AS TO FORM: CONTRACTOR ________________________________ By: _____________________________________ City Attorney C10 - 22 City of San Luis Obispo Request for Proposals, Specification 91315 18 Section E INSURANCE REQUIREMENTS Consultant Services The Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Errors and Omissions Liability insurance as appropriate to the consultant's profession. Minimum Limits of Insurance. Contractor shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Employer's Liability: $1,000,000 per accident for bodily injury or disease. 4. Errors and Omissions Liability: $1,000,000 per occurrence. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, official, employees, agents or volunteers. 2. For any claims related to this project, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. C10 - 23 City of San Luis Obispo Request for Proposals, Specification 91315 19 3. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing maintenance of the required insurance coverage. Original endorsements effecting general liability and automobile liability coverage required by this clause must also be provided. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City before work commences. C10 - 24 City of San Luis Obispo Request for Proposals, Specification 91315 20 Section F PROPOSAL SUBMITTAL SUMMARY PROPOSAL SUBMITTAL FORM The undersigned declares that she or he has carefully examined Specification No. 91315, which is hereby made a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing firm; and agrees to perform the specified work for the following cost quoted in full: Description Proposed Cost Water Meter Reading Services Item 1: Start-up activities cost Item 2: Cost per water meter read per month TOTAL $ Optional Services: Item 3: Cost per water meter re-read Item 4: Cost per water meter read verification by photo Item 5: Cost per water meter turn on and/or off Item 6: Other Item 7: Other TOTAL OPTIONAL SERVICES $  Certificate of insurance attached; insurance company’s A.M. Best rating: __________________. Firm Name and Address Contact Phone Signature of Authorized Representative Date C10 - 25 City of San Luis Obispo Request for Proposals, Specification 91315 21 REFERENCES Number of years engaged in providing the services included within the scope of the specifications under the present business name: . Describe fully the last three contracts performed by your firm that demonstrate your ability to provide the services included with the scope of the specifications. Attach additional pages if required. The City reserves the right to contact each of the references listed for additional information regarding your firm's qualifications. Reference No. 1 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 2 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome Reference No. 3 Customer Name Contact Individual Telephone & FAX number Street Address City, State, Zip Code Description of services provided including contract amount, when provided and project outcome C10 - 26 City of San Luis Obispo Request for Proposals, Specification 91315 22 STATEMENT OF PAST CONTRACT DISQUALIFICATIONS The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it, has ever been disqualified, removed, or otherwise prevented from proposal on, or completing a federal, state, or local government project because of the violation of law, a safety regulation, or for any other reason, including but not limited to financial difficulties, project delays, or disputes regarding work or product quality, and if so to explain the circumstances.  Do you have any disqualification as described in the above paragraph to declare? Yes  No   If yes, explain the circumstances. Executed on at _______________________________________ under penalty of perjury of the laws of the State of California, that the foregoing is true and correct. ______________________________________ Signature of Authorized Proposer Representative C10 - 27 Page intentionally left blank. C10 - 28