HomeMy WebLinkAboutContract 48070-R3 CSC No. 43MO
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FORTWORTH.
CITY OF FORT WORTH
REQUEST TO EXERCISE RENEWAL OPTION
July 23, 2019
Bermex, Inc
1333 Home Ave.
Akron, OH 44310
Email: tjones(aDbermexinc.com
Re: REQUEST TO EXERCISE RENEWAL OPTION
Water Meter Reading Services and Delivery of Delinquent Account Notices
Contract No. CSC No. 48070 (the "Contract')
Renewal Term No. 3: October 1, 2019 to September 30, 2020
The above referenced Contract will expire on September 30, 2019. Pursuant to the Contract, contract
renewals are at the sole option of the City. This letter is to inform you that the City is exercising its right to
renew CSC No. 48070 for an additional one year period, which will begin immediately upon the expiration
of the current term and will end on September 30, 2020. This renewal includes executed amendment#1
which includes revisions to Exhibit"F all other terms and conditions of CSC No. 48070 remain unchanged.
Please return this signed acknowledgement letter, along with a copy of your current insurance
certificate,to the address set forth below,acknowledging receipt of the Notice to contract Renewal.
Please log onto http://fortworthexas.gov/purchasing to insure that your company information is correct and
up-to-date.
If you have any questions concerning this Request for Contract Renewal, please contact me at the
telephone number listed below.
Sincerely,
Virginia Meza
Sr. Administrative Assistant
Water Department
Customer Care Division
Meter Services Section
817-392-2244
1 hereby acknowledge receipt of the contract Renewal Notice for CSC No. 48070 for a one year period
ending September 30, 2020. _-
OFFICIAL RECORD
CITY SECRETARY
FT WORTH,TX
CSC No.
BERMEX INC
By. �cdt t. fC�P Date: 7— Z`r' °
(Printed Name and
Signature/
CITY OF FORT WORTH:
0
By: M. k' 1�MA
Date: L1Q
Dana Burghdoff,, Assista t Cpity Manager
APPROVED AS TO FORM AND LEGALITY:
By: A, Date: J ��
Christa R. L ez- yno s, Assistant City Attorney
CONTRACT COMPLIANCE MANAGER:
By signing I acknowledge that I am the person responsible for the monitoring and administration of this
Contract, including a ring all performance and reporting requirements.
By: Date:
Ed ar rci ater Systems Superintendent
RECOMMENDED:
By: Date: _
jrar D uty Water Director
By: l i `-^ Date: _ V-5-15
Christopher Harder, Water Depart
ATTEST: j M&C No. P-11909 & C-29146
MBy: Date: " l
Mary J. Kay-,., City ecretary ..........
f
OFFICIAL REiCCj;v'
CITY SECR ETA RVV
FT. WORTH, T
F
M&C Review 7/23/2019 11:33:38 AM
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA Foa�r�7"
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:
77-1 F---]
I 11
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M&C Review 7/23/2019 11:33:38 AM
Year Cost Meter Annual 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 11 $0.73 $2,277,600.00 $3.27 $654,000.00 $2,931,600.00
2021 $0.73 $1,716,960.00 1$3.421$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 I Reference# Amount
ID ID Year I lChartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
I ID I I Year (Chartfield 2)
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Chris Harder(5020)
_ Additional Information Contact: Jerry Pressley (8257)
ATTACHMENTS
Page 2 of 2
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. 1 BERMEX INC.CSC 480701
Page 15 of 15
M&C Review 7/23/2019 11:36:05 AM
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FQR�u
COUNCIL ACTION: Approved on 8/2/2016
REFERENCE 13P16-0061 WATER METER
DATE: 8/2/2016 NO.: P-11909 LOG NAME: READING SERVICE AND
DELIVERY DG WATER
CODE: P TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Contract with Bermex, Inc., in an Amount Up to $2,394,934.00, for the First Term
for Water Meter Reading Services and the Delivery of Delinquent Account Notices for the
City's Water Department (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council authorize execution of a contract with Bermex, Inc., in an amount
up to $2,394,934.00, plus up to five renewals, for the purpose of water meter reading services and the
delivery of Delinquent Account Notices for the City's Water Department.
DISCUSSION:
The City of Fort Worth (City)will use this contract to read water meters at over 240,000 retail account
locations for the City's Water Department for monthly water meter reading throughout the City, and the
delivery of customer Delinquent Account Notifications (DANs). The contract will be used to ensure that
monthly water meter reading is conducted accurately throughout the City. The information obtained from
the meter readings will allow for the calculation, billing and receipt of water and wastewater service
revenue.
BID ADVERTISEMENT-A Request for Proposals (RFP)was advertised in the Fort Worth Star-Telegram
on Wednesdays between December 30, 2015 and January 27, 2016. Additionally, thirty-two vendors were
solicited from the purchasing database system; four responses were received. The proposals were
reviewed by an evaluation committee consisting of staff from the Water Department. The evaluation factors
included response to meeting required meter reading services, plan for completion of work, contractor's
ability to meet specifications and requirements, prior performance working with government entities
including references of work, contractor's response to reporting and progress reporting and cost. The
proposal from Bermex, Inc., was found to be fair and reasonable and presents the best value to the City.
PRICE ANALYSIS -The cost per meter offered by Bermex, Inc., will remain at$0.51 cents, the same as the
current agreement awarded in 2010, for Fiscal Year 2017, and will not increase until Fiscal Year 2018. Staff
reviewed the prices and determined the pricing to be fair and reasonable. Prices for each year's meter
reading services are estimated based on cycle and route size, and projected growth:
Cost Per DAN Annual
Year Meter Meter Annual Amount Cost Per DAN Amount Annual Total Cost
17 $0.51 $1,713,600.00 $2.92 $681,333.34 $2,394,933.34 20
20 88 $0.53 1 $1,526,o00.00 $3.02 $604,000.00 $2,130,000.00
2019 $0.53 $1,626,000.00 $3.17 $634,000.00 $2,160,000.00
2020 $0.55 $1,584,000.00 $3.27 $654,000.00 $2,238,000.00
2021 $0.55 $1,584,000.00 $3.42 $684,000.00 $2,268,000.00
2022 $0.57 $1,641,000.00 $3.52 $704,000.00 $2,345,000.00
Page 1 of 2
M&C Review 7/23/2019 11:36:05 AM
ADMINISTRATIVE CHANGE ORDER-An administrative change order or increase may be made by the
City Manager in the amount up to $50,000.00 without specific City Council approval as long as sufficient
funds have been appropriated.
CONTRACT TERMS - Upon City Council's approval, the contract will begin on August 3, 2016 and expire
on September 30, 2017.
RENEWAL OPTIONS -the contract may be renewed for up to five one-year terms at the City's sole
discretion. This action does not require specific City Council approval provided that City Council has
appropriated sufficient funds to satisfy the City's obligations during the renewal term.
M/WBE OFFICE -A waiver of the goal for the MBE/SBE subtracting requirements was requested by the
Purchasing Division and approved by the M/WBE Office, in accordance with the BDE Ordinance, because
the purchase of goods or services is from sources where subcontracting or supplier opportunities are
negligible.
FISCAL INFORMATION/CERTIFICATION:
The approval of this action provides purchasing authority up to $2,394,934.00 as specified. The Director of
Finance certifies that funds are available in the current operating budget, as appropriated, in the other
Contractual Services account of the Water Department. Prior to an expenditure being made, the Water
Department has the responsibility to validate the availability of funds.
BQN\\
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 ID Year (Chartfield 2)
56001 1 0604009 5330201 $2,394,933.34
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Aaron Bovos (8517)
Additional Information Contact: Jack Dale (8357)
Darian Gavin (2057)
ATTACHMENTS
Bermex Inc Form 1295 Certificate.pdf
Page 2 of 2