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HomeMy WebLinkAboutContract 48070-A1 52019 CITY SECRETARY CONTRACT NO. � ry �rCREr4RRTy AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT NO. 48070 AN AGREEMENT FOR WATER METER READING SERVICES AND DELIVERY OF DELIOUENT ACCOUNT NOTICES FOR THE CITY OF FORT WORTH WATER DEPARTMENT THIS CONTRACT AMENDMENT No.1 is entered into by and between the City of Fort Worth ("City"), a home-rule municipality in the State of Texas, acting through Jesus "Jay" Chapa, its duly authorized Assistant City Manager, and Bermex, Inc., acting through Todd E. Jones, its duly authorized President ("Contractor"). WHEREAS, on August 2, 2016, the City Council authorized an Agreement (M&C P- 11901) with Bermex Inc., in an amount not to exceed $2,394,934.00 for the first annual term to provide timely, accurate and efficient reading of its water meters and for the delivery of customer Delinquent Account Notifications (DANs) throughout the City of Fort Worth; WHEREAS, the term of the Agreement was one year with five (5) one-year renewal options; WHEREAS, in 2018, the City received notification from its meter reading equipment suppliers that existing handheld meter data acquisition equipment (Roadrunner system) purchased and maintained by the City had been discontinued, and would no longer be supported; WHEREAS, the parties wish to amend the Agreement to transition to a Smart Phone Meter Reading (SPMR) system; WHEREAS, this amendment will also increase the per water meter reading price from $0.53 per read to $0.71 in the current year to compensate the contractor for taking on the additional responsibility for procuring, maintaining, and replacing equipment used in collecting and transmitting meter data into the City's billing system and adjust per meter read costs in the renewal options; and WHEREAS, the parties also wish to provide for an additional contract renewal term, to align the manual meter reading with the MYH2O program schedule. NOW, THEREFORE, the parties agree to amend the Agreement as follows: I. Section 2. TERM. The term of this Agreement shall be amended to allow for an additional renewal term, providing for six (6) one-year renewals in total. CFW/[AMENDMENT NO. 1 BERMEX INC.CSC 480701 Page 1 of 15 i:-`;''"C1pkD RY v`1,y S` m W114 II. Section 3. COMPENSATION. Section 3, Compensation shall be amended as follows: The City shall pay Contractor as stated below however, total payment made under this Agreement by the City for all services shall not exceed Two Million, Nine Hundred Thirty-One Thousand, Six Hundred Dollars ($2,931,600.00) for the first year of this Amendment. Contractor shall not perform any additional services for the City not specified by this Agreement unless the City requests and approves in writing the additional costs for such services. The City shall not be liable for any additional expenses of Contractor not specified by this Agreement unless the City first approves such expenses in writing. Cost per Meter Meter Annual Amount Cost Per DAN DAN Annual Amount $0.71 $1,698,600.00 $3.17 $634,000.00 If the City exercises its option to renew, Contractor agrees that the prices for the water meter services and Delivery of delinquent account notices shall be as stated in Exhibit E to this Amendment. Payment shall be based upon the performance of the Contractor and shall be measured by the number of meters successfully read, with no errors, and with no skips except when verified by the City based on acceptable skip codes. All questionable readings shall be reread by the Contractor. An error reading shall be defined as a questionable reading without just cause that is verified by the City and Contractor and still found to be in error. The Contractor shall be paid the cost per meter amount only for each successful meter read. Re-reads shall be made by the Contractor without any additional charge to the City. Contractor shall review the first fail audit report. Contractor will have access to Datamatic's Smart Phone Meter Reading (SPMR) software to review reads and pictures. If an account requires a reread and/or recapture pictures, then Contractor shall revisit the location and reread and or recapture. City will review the final failed audit report and identify failed reads. If the account reading is inline within established parameters and the reading is visible in the picture, then the City will consider this a successful read and will not assess the administrative fee. If the account reading is not in-line with established parameters and/or the picture is not CFW/[AMENDMENT NO. I BERMEX INC.CSC 480701 Page 2 of 15 clear, then the Contractor shall recapture the reading and new picture. In this case, the Contractor will be assessed an Administrative Fee of $12.50. Contractor will be given 24 hours to recapture the meter reading and picture if the Contractor is on schedule with the read-to-bill calendar. If the Contractor fails to capture a reading and picture, the City will capture the meter reading and picture. If the City captures the reading and picture, the full $25.00 Administrative fee will be assessed to the Contractor. III. Section 4. TERMINATION. Subsection 4.1 of the Section 4, Termination, shall be amended to be as follows: The City or Contractor may terminate this Agreement at any time and for any reason by providing the other party with one-hundred twenty (120) days written notice of termination. IV. EXHIBIT A. SCOPE OF SERVICE AND STANDARD OF SERVICE. Exhibit A, Scope of Service and Standard of Service, shall be amended in its entirety to now be as shown in the attachment to this Amendment. V. EXHIBIT E. COST SCHEDULE SUMMARY. Exhibit E, Cost Schedule Summary, shall be amended in its entirety to now be as shown in the attachment to this Amendment. VI. OTHER PROVISIONS. All other provisions of the Agreement which are not expressly amended herein shall remain in full force and effect. [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] CFW/[AMENDMENT NO. I BERMEX INC.CSC 480701 Page 3 of 15 Executed on this the L,�Aday of , 2019. CITY OF FORT WORTH: BERMEX, INC. By: _ By: '— esus J. Chapa Tod E Jones Assistant City Manager President Date: APPROVAL RECOMMENDED: By: 6� (_` Christopher Harder, P.E. Fort Worth Water Department Director Date: APPROVED AS TO FORM AND LEGALITY: B y: NAA Ch staYope nolds, Senior Assistant City Attorney ATTEST- O . •��� ` B U y: _ ai /NlalYK * :S City Secretary Date: (?OM M CFW/[AMENDMENT NO. 1 BERMEX INC.CSC 480701 OFNUAL RECORD Page 4 of 15 Cff"SECRETARY Contract Authorization: M&C: _ C"?A[4'6 Date: to-I(-1 1 CONTRACT COMPLIANCE MANAGER: By signing, I acknowledge that I am the person responsible for the monitoring and administration o r contract, including ensuring all performance and reporting requirements. By: '/�7'/ Ecl ar 'a &ae-4 Title: � IV Exhibit A Revised SCOPE OF SERVICES 1.0 REQUIRED WATER METER READING SERVICES AND DII1 INr ACCOUNT NOTICES DELIVERED 1.1 The City intends to secure a service based contract as outlined in the Payment Section of this agreement for the timely, accurate and efficient reading of all assigned water meters and delivery of customer DANs on a daily basis. Contractor payment shall be based upon the performance of the Contractor and shall be measured by the number of meters successfully read, with no errors, meters not read or acceptable skip codes and number of DANs delivered. All questionable readings shall be reread by the Contractor without additional charge to the City. An error reading shall be defined as a questionable reading without just cause that is verified by the City and is found to be in error. The Contractor shall be paid the unit price only for each successfully read meter without error and successfully delivered customer DANs. CFW/[AMENDMENT NO. 1 BERMEX INC.CSC 480701 Page 5 of 15 l.2 Implementation/Training: 1.2.1 In order to ensure a smooth transition, if transition of a Contractor is necessary, the existing meter reading Contractor to any new proposed Contractor, the City shall require the successful proposer to be physically on site thirty (30) days prior to the final contract date of the existing Contractor. This time of transition is to test the Contractor's program and ability to ensure a successful start-up. A meter reading transition period of up to sixty (60) days may be utilized by the Contractor to transition meter reading services from the old Contractor to the new Contractor. The sixty (60) days will begin when the City issues the Notice to Proceed to the successful Contractor. The City will provide the Contractor with a detailed and mandatory Contractor Transition Plan (CTP) at the time the City issues the Contractor a Notice-To-Proceed (NTP). The CTP team members will consist of personnel from the City, the new Contractor and the old Contractor. 1.2.2 The Contractor must demonstrate that trained, responsible people will be used for this agreement. Employee training shall include classroom and field work with a qualified instructor. The Contractor shall provide the City with a written training plan for each meter reader working under this contract. The City will provide training for up to four representatives/meter readers working under this contract. This time frame will be used by the Contractor to learn the routes, locate meters, review and train meter readers and to become familiar with the City processes in place. No payment will be made to the incoming Contractor or staff during the implementation period. The Contractor shall develop a training program for new employees, hired after the 60 day transition that ensures the Contractor provides sufficient staff for the continuous reading of water meters without any delays. 1.2.2 If necessary, the City will provide 24 hours of training on the Datamatic meter reading equipment at no cost to the Contractor. All products, deliverables and documentation generated as a result of the efforts described herein are the exclusive property of the City. 2.0 COMPLETION OF WORK CFW![AMENDMENT NO. I BERMEX INC.CSC 490701 Page 6 of 15 2.1 Weather conditions shall not prevent the Contractor from completing the assigned routes each day nor shall the weather conditions prevent any associated contract conditions. (All Contractor employees are to be considered as essential staff in relationship to inclement weather). Contractor is responsible for collecting meter readings and delivery of customer DANs regardless of weather, water meter condition and/or other impediments unless pre-authorized by City in advance. Under extreme or continuous inclement weather conditions the Contractor may request additional time to perform manual reads. Any request will be reviewed by City and determination if the request can be accommodated within the City's Billing Calendar's read to bill process. Contractor shall notify City if they know they will not be able to complete a full billing cycle read. Contractor shall notify City's Field Operations Supervisor overseeing Contractor as well as Field Operations Superintendent. 2.2 All meter boxes or meter conditions that may impose an impediment to the readers or the public shall be entered into the SPMR handheld equipment when observed. Other conditions affecting the reader shall also be noted. The reason for skipping the meter reading shall be noted into the SPMR handheld equipment for follow up by City staff. The reason for the skipped reading shall be identified using the approved skipped codes provided to the Contractor by the City. If it is found that meter readings were skipped without reasonable justification, the Contractor shall be assessed a $25.00 administrative fee for each meter error. During the transition period to SPMR, the $25.00 administrative fee for each meter error may be waived for the first 30 days, at the City's discretion. 2.3 Contractor shall provide, maintain, and replace mobile devices (smart phones) compatible with Smart Phone Meter Reading (SPMR) software. When Contractor purchases new mobile devices, Contractor shall contact City to verify compatibility with SPMR software. Contractor shall ensure all mobile devices are charged each day and ready for meter reading. Contractor shall supply any necessary equipment or associated devices to keep mobile devices charged throughout the manual meter reading process. Contractor shall provide list of mobile device cellular numbers to City, the City shall then identify and activate each mobile device in SPMR software. CFW/[AMENDMENT NO. 1 BERMEX INC.CSC 480701 Page 7 of 15 2.4 City shall provide access to the SPMR software to Contractor for reporting, live view of meter reads, and know where Contractor employees are located. City to provide two software seats for Contractor use. Contractor shall ensure employees are trained to utilize the SPMR software. Contractor shall ensure proper use of SPMR software per software usage policy. 2.5 On day one of assigning a Cycle and Routes, the City shall assign specific billing cycle and routes in SPMR software to each individual mobile handheld device. Contractor shall start to capture manual reads by 7:30 am each day. Contractor shall manually read each meter using SPMR software with mobile device. Contractor shall capture one picture on each manual meter read. Contractor shall take a clear and unobstructed picture of meter register dials/display. If SPMR software high or low alarm is triggered, Contractor shall capture up to three additional clear and unobstructed pictures, one of meter register dials/display, the second of the meter cap with serial number, and a third if there is a physical reason, like a private leak near or at the water meter. Contractor at minimum will be required to take two pictures during high and low alarm. Contractor shall monitor cellular signal strengths throughout the process to ensure reads are being transmitted and when there is no signal, Contractor shall connect to wireless internet connection (WIFI) to ensure reads are transmitted to SPMR software. Contractor shall manually read up to 6PM. 2.6 When a billing cycle is not completed, Contractor shall complete the full Cycle before being assigned a new billing cycle. Contractor may request to split a route within a billing cycle if the Contractor is on schedule. Contractor may request a secondary billing cycle if the Contractor is on schedule to City's billing calendar read dates. Any request will be reviewed by City and determination if the request can be accommodated within the City's Billing Calendar's read to bill process. Contractor to notify City if they know they will not be able to complete a full billing cycle read. Contractor shall notify City's Field Operations Supervisor overseeing Contractor as well as Field Operations Superintendent. 2.7 The Contractor shall review the manual meter reading live in SPMR software to ensure meter reads are within established parameters. Contractor shall also review pictures to ensure they are clear and unobstructed. When Contractor finds reads or pictures do not meet standards, the Contractor shall re-read and recapture picture. CFW/[AMENDMENT NO. 1 BERMEX INC.CSC 480701 Page 8 of 15 2.8 On day two, Contractor shall review the first meter read failed audit report. The Contractor shall reload these specific accounts to mobile devices and re-read and recapture picture of meter reads not within established parameters. Contractor will be given up to 6PM to complete failed audit. Contractor shall monitor meter reads live in SPMR software. 2.9 On day three, City to review final meter read failed audit report. If the account reading is inline within established parameters and the reading is visible in the picture, then the City will consider this a successful read and will not assess the administrative fee. City to identify meter readings not within established parameters and review and compare to meter reading on picture/s. If the account reading is not within established parameters, but reading on picture is within established parameters, then the City will consider this a successful read and will not assess the administrative fee. If account reading is not within established parameters and the picture reading is not clear or obstructed, then the City will consider this an unsuccessful read. If the Contractor is on track with the established read schedule the City to reload these specific accounts to Contractors mobile device and assess $12.50 Administrative Fee. Contractor will be given up to 1PM to recapture read and picture. If new reading is within established parameters and picture clear the read to bill process shall continue. If the picture reading is not clear and reading is still not within established parameters, City will utilize City employee to capture meter reading and new picture/s. The City will then assess the full $25.00 Administrative Fee to Contractor. If the Contractor is not on track with the established read schedule the City will utilize City employees to capture meter reading and new picture/s. The City will then assess the full $25.00 Administrative Fee to Contractor. City to submit read file to continue read to bill process. 2.10 Contractor can request a second review to ensure Administrative Fee is assessed according to agreement. Contractor to review questionable assessment with City's Meter Services Field Operations Supervisor. City's Meter Services Supervisor to review SPMR reads, pictures, and Contractor's proof and make final decision if questionable assessment applies or is waived according to agreement terms. 2.11 The delivery of customer DANs is a vital service provided under this agreement. The Contractor shall be provided detailed procedures for a one-hundred (100) percent delivery rate, with acceptable non-delivery codes allowed as detailed in, "Exhibit B"-Contractor's Reporting CFW/[AMENDMENT NO. 1 BERMEX INC.CSC 480701 Page 9 of 15 Requirements. Failure to attempt or not make a delivery of the DANs, other than the ones falling under the acceptable non-delivery codes, the Contractor shall be assessed an administrative fee of $25 per undelivered DANs. This administrative fee shall be deducted from the Contractor's monthly invoice submitted to the City. 3.0 CONTRACTOR'S SPECIFICATIONS AND REQUIREMENTS 3.1 Provide necessary, as identified in the Contractors proposal, field personnel and supervision to read contracted routes and deliver customer DANs. The Contractor shall be responsible for retaining adequately trained employees to read all meter types utilized by the City and to complete the meter reading assignments and deliver customer DANs under the terms and conditions of the Agreement. The Contractor shall also provide sufficient administrative personnel dedicated to this contract to process and track administrative actions for meter reading services. This administrative staff shall maintain documentation in sufficient detail, as directed by the City, to completely support monthly invoices submitted to the City. 3 . 2 Provide uniforms to Meter Readers (subject to approval by the City). All of the Meter Readers employed by the Contractor shall be required to wear a City approved long or short sleeved American National Standards Institute (ANSI) Class 2 Level Safety shirt. Contractor supplied a cap with a City approved "logo". Contractor identification shall be on the shirt and cap. Below is a suggested sample of the required shirt to be worn by the meter reader while performing services under this agreement. CFW 1[AMENDMENT NO. 1 BERMEX INC.CSC 490701 Page 10 of 15 DOER.. ' U 3.3 Should seasonal weather require a jacket or coat to be worn over the shirt, the jacket or coat shall be the same type for all employees and shall include the same approved "logo" and Contractor identification on the jacket or coat. The "logo" shall be inscribed with "City of Fort Worth" and the Contractors name. The "logo" shall be worn on the upper left portion of the shirt, jacket or coat. Pants may be in the form of blue jeans, pants, or uniform shorts. Any change in uniforms must be documented, approved, and reported to the City's Water Department designee. 3.4 All shirts, pants, shorts, caps, jackets or coats shall be neat and clean at all times when worn while performing this Contract. The employee shirt, jackets or coats, and identification badges shall be worn only during business hours and while performing work under this Contract. No smoking or use of personal entertainment devices shall be allowed while on any City customer's property. 3.5 The Contractor shall be responsible and liable for the supervision, CFW/[AMENDMENT NO. 1 BERMEX INC.CSC 480701 Page 11 of 15 control and actions of its personnel and employees pursuant to this contract. The Contractor shall take appropriate action whenever they observe, or the City or its agent's report, that an employee has not performed their duties in accordance with the provisions of this Contract. The City shall be informed, in writing, immediately, of any situation that will result in the Contractor's inability to fulfill this Contract. 3.6 Provide employee identification badges, provided by the Contractor, which include a photograph of the employee. Employee identification badges shall be worn at all times while performing work under this Contract. Said badges shall be displayed prominently on the front of the employee's shirt or jacket in such a manner as to readily identify the employee. 3.7 Each employee shall possess a current Texas driver's license if operating a vehicle in performance of this contract. The Contractor's vehicles and employee vehicles utilized in this Contract shall meet all State of Texas licensing and insurance requirements prior to performing any work on this contact. In addition, all Contractor vehicles shall have magnetic signage, approved by the City, attached to the two front doors identifying the Contractor vehicle as a meter reading vehicle. Should an employee utilize their personal vehicles for business and are reimbursed by the Contractor for their mileage, they are also required to have magnetic signage attached to the two front doors of the vehicle while performing this Contract. They are also required to carry and provide copies to the City of current State of Texas automobile liability insurance. The Contractor shall provide automobile insurance with coverage as stated under the "Insurance Clause" of this agreement for all leased, company owned, and employee vehicles and provide copies of Certificates of Insurance for the employee to carry in their vehicle. Failure to provide this Certificate of Insurance upon request shall be immediate cause for dismissal from duty and count as a failure to perform meter readings. The Contractor shall verify on a monthly bases that its employees have current automobile liability insurance and valid driver's licenses. The vehicle magnetic signage must contain the following identifying markings. Each magnetic sign shall be 14 inches high x 20 inches long with three (3") inch letters. CFW/[AMENDMENT NO. 1 BERMEX INC.CSC 480701 Page 12 of 15 Meter Reading Contractor Fort Worth Water Department (817) 392-4477 3.8 The Contractor shall maintain a supply, at all times, of all materials and supplies necessary to complete the assigned work. Those supplies shall include, but not be limited to, reading tube, meter bar, binoculars, hand pump, safety equipment and such items that are to be utilized in obtaining meter readings. Traffic Safety cones, in compliance with Texas Department of Transportation (TxDot) Specification Number 550- 78-33, REVISED: JANUARY 2008, DHT No. 4306, will be placed outside of the front and back wheels, on the street side, of the Contractor's vehicle while performing services on this agreement. 3.9 Contractor shall conduct routine pest control in or near water meter boxes for meter reader safety for wasps, bees and ants in an effort to obtain a read. Other infestations or larger infestations shall be reported to City. 3.10 Read a minimum number of scheduled contracted routes per day in a 21- day cycle for a total of approximately 557 routes per month. 3.11 The Contractor shall perform a National Criminal Background Check for each employee prior to that employee training or performing any work on this Contract. The original Criminal Background Check shall be kept in the Contractor's local office. The City or its agents may request a copy of the Criminal Background Check of any employee at any time. Applicants for employment for this Contract shall not conduct City business nor be employed for this Contract if they are known to be, or are, convicted felons involving sexual assaults, burglary, assaults with a deadly weapon, or serious physical harm or threats of harm. 3.12 The Contractor shall perform pre-employment and random drug tests for all employees. Contractor must ensure that employees do not consume alcohol or use controlled substances during work hours and will not work under the influence of alcohol, controlled substances or dangerous drugs. The results of the initial employment and random drug tests shall be maintained by the Contractor for review by the City. Employment drug test results will be completed upon employment of a new CFW 1[AMENDMENT NO. 1 BERMEX INC.CSC 480701 Page 13 of 15 employee. The results of employee random drug tests shall be maintained by the Company and provided to the City upon request. The Contractor must maintain a copy of their "Drug Testing" policy on file in their local office and make it available to the City upon request. 3.13 Contractor is responsible for ensuring that all its employees conduct themselves in a courteous and professional manner when dealing with all customers of the City of Fort Worth Water Department. The Contractor is responsible for ensuring that all customers and the property of all customers are treated with respect and that good customer relations are maintained at all times. The Contractor is also financially responsible for any and all damage to a customer and/or damage to a customer's property caused by the Contractor employees. The Contractor shall also report all property damage, injury to customer pets, lost pets and criminal damage, etc., to the City as soon as possible. Excessive verified complaints of this nature could be cause for termination of this Contract. 3.14 Deleted. 3.15 Deleted. 3.16 Contractor shall immediately notify City of observed or suspected water leaks. 3.17 Deleted. 3.18 All services shall be performed as described in the Scope of Work specification. 3.19 Deviations will not be considered or approved unless the Contractor can explain in written detail that the deviation is of material benefit to the City and provides service levels at least equal to the specified services. CFW/[AMENDMENT NO. 1 BERMEX INC.CSC 480701 Page 14 of 15 EXHIBIT E Revised COST SCHEDULE SUMMARY Based on the stated cycle/route size and potential growth, pricing is quoted per meter for this amendment. The price quoted is all inclusive; no other costs will be considered. COST PER METER Base Year Quantity of Meters\Monthly $ 0.51 Per Meter X 240,000 Meters/Monthly= $122,400.00 X 14 Month (Base Year) _ $1,713,600.00 Option Years Price Per Meter (Annual Amount) Option Year 1 (FY 18) $ 0.53 /$ 1,526,000.00 Option Year Two (FY 19) (9 Months)$ 0.53 /$ 1,144,800.00 Option Year Two (FY 19) (3 Months)$ 0.71 /$ 553,800.00 (260,000 Meters\Month) (260,000 Meters Per Month (Annual Amount) Option Year Three (FY 20) $ 0.73 /$ 2,277,000.00 Option Year Four (FY 21) $ 0.73 /$ 2,277,000.00 Option Year Five (FY 22) $ 0.75 /$ 2,340,000.00 Option Year Six (FY 23) $0.75 /$2,340,000.00 Based on the hand delivery of approximately 200,000 Customer DAN's, quote separately for this service for each year. 2017 Per Notice Delivered Quote Per Delivery Notice Delivered (Annual Amount) Base Year WY 2017) $ 2.92 /$584,000.00 Option Years Price Per Delivery Notice Delivered (Annual Amount) Option YR 1 (FY 18) $3.02 $604,000.00 Option YR 2 (FY 19) $3.17 $634,000.00 Option YR 3 (FY 20) $3.27 $654,000.00 Option YR 4 (FY 21) $3.42 $684,000.00 Option YR 5 (FY 22) $3.52 $704,000.00 Option YR 6 (FY 23) $3.62 $724,000.00 CFW/[AMENDMENT NO. I BERMEX INC.CSC 480701 Page 15 of 15 M&C Review Page 1 of 2 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FO H COUNCIL ACTION: Approved on 6/11/2019 REFERENCE ** 60AMEND1 48070 MTRRD DATE: 6/11/2019 NO.: C-29146 LOG NAME: AND DEL DAN AGREEMENT CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Execution of Amendment Number 1 to City Secretary Contract No. 48070 with Bermex, Inc. to Enable a Meter Reading System Upgrade, Update Pricing for a Total Contract Amount not to Exceed $2,931,600.00 and to Include One Additional Annual Renewal Option (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of Amendment No. 1 to City Secretary Contract No. 48070 with Bermex, Inc., to upgrade the current manual meter reading system to a Smart Phone Meter Reading (SPMR) system, improving the timeliness and accuracy of water meter readings throughout the City in an annual amount not to exceed $2,931,600.00; and 2. Increase the per water meter reading price from $0.53 per read to $0.71 in the current year to compensate the contractor for taking on the additional responsibility for procuring, maintaining, and replacing equipment used in collecting and transmitting meter data into the City's billing system and adjust per meter read costs in the renewal options; and 3. Provide an additional one-year renewal option to enable service through September 30, 2023. DISCUSSION: On August 2, 2016, the City Council authorized an Agreement (M&C P-11901) with Bermex, Inc., in an amount not to exceed $2,394,934.00 for the first annual term to provide timely, accurate and efficient reading of its water meters and for the delivery of customer Delinquent Account Notifications (DANs) throughout the City of Fort Worth. The original term was one year with five one-year renewal options. In 2018, the City received notification from its meter reading equipment suppliers that existing handheld meter data acquisition equipment (Roadrunner system) purchased and maintained by the City had been discontinued, and would no longer be supported. This M&C will authorize an amendment that will enable the transition to a Smart Phone Meter Reading (SPMR) system. The SPMR system will provide for a fully supported, reliable, accurate and timely water meter reading program. Through this amendment, responsibility for procuring, maintaining, and replacing equipment used in collecting and transmitting meter data into the City's billing system will be transferred to Bermex, Inc. Projected annual expenditures reflect anincreasing customer base offset by the gradual phase-out of manual meter reading services through the implementation of the MYH2O program. It is anticipated that meter reading and delinquency notice services will be required through September 2023, necessitating the additional one year renewal option. The amended agreement provides for the following per read pricing and the estimated annual cost: I H M&C Review Page 2 of 2 Year Cost Meter Annual I Cost DAN Annual Total Per Amount per Annual Cost Meter DAN Amount 2019 $0.71 $1,698,600.00 $3.17 $634,000.00 $2,332,600.00 2020 $0.73 $2,277,600.00 $3.27 $654,000.00 $2,931,600.00 2021 $0.73 $1,716,960.00 $3.42 $684,000.00 $2,400,960.00 2022 $0.75 $1,170,000.00 $3.52 $704,000.00 $1,874,000.00 2023 $0.75 $585,000.00 $3.62 $724,000.00 $1,309,000.00 The project is located in ALL COUNCIL DISTRICTS. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation, funds will be available, as appropriated, in the Water and Sewer Fund. Prior to an expenditure being made, the Department has the responsibility to validate the availability of funds. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference# Amount ID I ID I I Year ChartfieId 2 Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Chris Harder(5020) Additional Information Contact: Jerry Pressley (8257) ATTACHMENTS