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HomeMy WebLinkAboutContract 41019 (2)Form Services Agreement Bermex, Inc. Page 1 of 9 TV SECRETARY .mm6; P\ timinpadamemeas PROFESSIONAL SERVICES AGREEMENT This PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into by and between the COLEY OF FORT WORTH (the "City"), a home rule municipal corporation situated in portions of Tarrant, Denton and Wise Counties, Texas, acting by and through Fernando Costa, its duly authorized Assistant City Manager, and Bermex, Inc. ("Consultant"), a Michigan Corporation and acting by and through Henry G. Mello, its duly authorized President. 1. SCOPE OF SERVICES. Consultant hereby agrees to provide the City with professional consulting services for the purpose of ensuring that monthly water meter readings are conducted accurately throughout the City. Attached hereto and incorporated for all purposes incident to this Agreement is Exhibit "A," Scope of Work, more specifically describing the services to be provided hereunder. 2. TERM. This Agreement shall commence upon October 1, 2010 ("Effective Date") and shall expire on, September 30, 2011, unless terminated earlier in accordance with the provisions of this Agreement. This Agreement shall have five one-year renewal options, which must be executed in writing by duly authorized representatives of both parties but shall not require City Council approval. 3. COMPENSATION. The City shall pay Consultant an annual amount not to exceed $1,353,600.00 in accordance with the provisions of this Agreement and the Payment Schedule attached as Exhibit "S," which is incorporated for all purposes herein. Consultant 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 Consultant not specified by this Agreement unless the City first approves such expenses in writing. 4. TERMINATION. 4.1 Termination for Convenience and for Cause City may terminate this Agreement for its convenience on 30 days' written notice. Either the City or the Consultant for cause may terminate this Agreement if either Party fails substantially to perform through no fault of the other and does not commence correction of such nonperformance with 5 days of written notice and diligentc_o_mplete the correction thereafter 4.2 Notice of Terminate r nc Mins RECOKO SECRETARY WORTH, IX 1 �__--- i u U I :L.) �--� 1 If City chooses to terminate this Agreement under Article 8, upon receipt of notice of termination, Consultant shall discontinue services rendered up to the date of such termination and City shall compensate Consultant based upon calculations in Article 2 of this Agreement and Exhibit "B" attached hereto and incorporated herein. 4.3 Reports and Documents All reports, whether partial or complete, prepared under this Agreement, including any original drawings or documents, whether furnished by the City, its officers, agents, employees, consultants, or contractors, or prepared by Consultant, shall be or become the property of the City, and shall be furnished to the City prior to or at the time such services are completed, or upon termination or expiration of this Agreement. 4.4 Nonnappropriation of Funds. In the event no funds or insufficient funds are appropriated by the City in any fiscal period for any payments due hereunder, City will notify Consultant of such occurrence and this Agreement shall terminate on the last day of the fiscal period for which appropriations were received without penalty or expense to the City of any kind whatsoever, except as to the portions of the payments herein agreed upon for which funds shall have been appropriated. 4.5 Duties and Obligations of the Parties. In the event that this Agreement is terminated prior to the Expiration Date, the City shall pay Consultant for services actually rendered up to the effective date of termination and Consultant shall continue to provide the City with services requested by the City and in accordance with this Agreement up to the effective date of termination. 5. DISCLOSURE OF CONFLICTS AND CONFIDENTIAL INFORMATION. Consultant hereby warrants to the City that Consultant has made full disclosure in writing of any existing or potential conflicts of interest related to Consultant's services under this Agreement. In the event that any conflicts of interest arise after the Effective Date of this Agreement, Consultant hereby agrees immediately to make full disclosure to the City in writing. Consultant, for itself and its officers, agents and employees, further agrees that it shall treat all information provided to it by the City as confidential and shall not disclose any such information to a third party without the prior written approval of the City. Consultant shall store and maintain City Information in a secure manner and shall not allow unauthorized users to access, modify, delete or otherwise corrupt City Information in any way. —Consultant shall notify the City Form Services Agreement � EV Bermex, Inc. Page 2 of 9 r tY k FT. titleaTil, TX immediately if the security or integrity of any City information has been compromised or is believed to have been compromised. 6. RIGHT TO AUDIT. Consultant agrees that the City shall, until the expiration of three (3) years after final payment under this contract, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records of the consultant involving transactions relating to this Contract at no additional cost to the City. Consultant agrees that the City shall have access during normal working hours to all necessary Consultant facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this section. The City shall give Consultant reasonable advance notice of intended audits. Consultant further agrees to include in all its subcontractor agreements hereunder a provision to the effect that the subcontractor agrees that the City shall, until expiration of three (3) years after final payment of the subcontract, have access to and the right to examine at reasonable times any directly pertinent books, documents, papers and records of such subcontractor involving transactions related to the subcontract, and further that City shall have access during normal working hours to all subcontractor facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this paragraph. City shall give subcontractor reasonable notice of intended audits. 7. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Consultant shall operate as an independent contractor as to all rights and privileges granted herein, and not as agent, representative or employee of the City. Subject to and in accordance with the conditions and provisions of this Agreement, Consultant shall have the exclusive right to control the details of its operations and activities and be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors and subcontractors. Consultant acknowledges that the doctrine of respondeat superior shall not apply as between the City, its officers, agents, servants and employees, and Consultant, its officers, agents, employees, servants, contractors and subcontractors. Consultant further agrees that nothing herein shall be construed as the creation of a partnership or joint enterprise between City and Consultant. 8. LIABILITY AND INDEMNIFICATION. CONSULTANT SHALL BE LIABLE AND RESPONSIBLE FOR ANY AND ALL PROPERTY LOSS, PROPERTY DAMAGE ANDIOR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, TO THE EXTENT CAUSED BY THE NEGLIGENT ACT(S) OR OMISSION(S), MALFEASANCE OR INTENTIONAL 1 Form Services Agreement Bermex, Inc. Page 3 of 9 etric si.t;ick.:�Q�+'r :: T ttY L_I e %: ' h' J i Form Services Agreement Bermex, Inc. Page 4 of 9 MISCONDUCT OF CONSULTANT, ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES. CONSULTANT CVENANTS AND AGREES TO, AND DOES HERE.- Y, INDEMNIFY, HOLD HARMLESS AND S EFEND T Le'E CITY, ITS OFFICERS, GENTS, SERVANTS AND EMPI . YFES, FROM AND AGAINST ANY AND A L L CLAIMS OR I ,AWSUITS FOR EITHER PRO:NERTY DAMAG1. OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO CONSULTANT'S BUSINESS AND ANY RESULTING LOST PROFITS) ANDIOR PERSONAL INJURY, INCLUDING DEATH, TANY AND ALL PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, TO THE EXTENT CAUSED BY THE NEGLIGENT ACTS OR OMISSIONS OR MALFEASANCE or INTENTIONAL MISCONDUCT OF CONSULTANT, ITS OFFICERS, AGENTS, SERVANTS OR EMPL O YEE S. 9. ASSIGNMENT AND SUBCONTRACTING. Consultant shall not assign or subcontract any of its duties, obligations or rights under this Agreement without the prior written consent of the City. If the City grants consent to an assignment, the assignee shall execute a written agreement with the City and the Consultant under which the assignee agrees to be bound by the duties and obligations of Consultant under this Agreement. The Consultant and Assignee shall be jointly liable for all obligations under this Agreement prior to the assignment. If the City grants consent to a subcontract, the subcontractor shall execute a written agreement with the Consultant referencing this Agreement under which the subcontractor shall agree to be bound by the duties and obligations of the Consultant under this Agreement as such duties and obligations may apply. The Consultant shall provide the City with a fully executed copy of any such subcontract. 10. INSURANCE. Consultant shall provide the City with certificate(s) of insurance documenting policies of the following minimum coverage limits that are to be in effect prior to commencement of any work pursuant to this Agreement: 10.1 Coverage and Limits (a) Commercial General Liability $1,000,000 Each Occurrence $2,000,000 Aggregate (b) Automobile Liability $1,000,000 Each accident on a combined single limit basis or $250,000 Bodily injury per person $500,000 Bodily injury per occurrence $100,000 Property damage iFIF Athlt c; 3� i`LJl�YC. G ` o X Coverage shall be on any vehicle used by the Consultant, its employees, agents, representatives in the course of providing services under this Agreement. "Any vehicle" shall be any vehicle owned, hired and non -owned (c) Worker's Compensation Statutory limits Lmployer's liability $100,000 Each accident/occurrence $100,000 Disease per each employee $500,000 Disease -policy limit This coverage may be written as follows: Workers' Compensation and Employers' Liability coverage with limits consistent with statutory benefits outlined in the Texas workers' Compensation Act (Art. 8308 — 1.01 et seq. Tex. Rev. Civ. Stat.) and minimum policy limits for Employers' Liability of $100,000 each accident/occurrence, $500,000 bodily injury disease policy limit and $100,000 per disease per employee (d) Errors & Omissions (Professional Liability): $1,000,000 Each Claim Limit $2,000,000 Aggregate Limit If coverage is written on a claims -made basis, the retroactive date shall be coincident with or prior to the date to the contractual agreement. The certificate of insurance shall state that the coverage is claims -made and include the retroactive date. The insurance shall be maintained for the duration of the contractual agreement and for five (5) years following completion of the services provided under the contractual agreement or for the warranty period, which ever is longer. An annual certificate of insurance submitted to the City shall evidence coverage. 10.2 Certificates. Certificates of Insurance evidencing that the Consultant has obtained all required insurance shall be delivered to the City prior to Consultant proceeding with any work pursuant to this Agreement. All applicable policies shall be endorsed to name the City as an additional insured thereon, as its interests may appear. The term City shall include its employees, officers, officials,. agent, and volunteers in respect to the at SECRETARY Form Services Agreement '+ Bermex, Inc. FT. Page 5 of 9 contracted services. All policies except Professional Liability shall provide a Waiver of Subrogation in favor of the City. Any failure on the part of the City to request required insurance documentation shall not constitute a waiver of the insurance requirement. The City reserves the right to make reasonable requests or revisions pertaining to the types and limits of that coverage. A minimum of thirty (30) days notice of cancellation or reduction in limits of coverage shall be provided to the City. Ten (10) days notice shall be acceptable in the event of nonpayment of premium. Such terms shall be endorsed onto Consultant's insurance policies. Notice shall be sent to the Risk Manager, City of Fort Worth, 1000 Throckmorton, Fort Worth, Texas 76102, with copies to the City Attorney at the same address. 11. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS. Consultant agrees to comply with all applicable federal, state and local laws, ordinances, rules and regulations. If the City notifies Consultant of any violation of such laws, ordinances, rules or regulations, Consultant shall immediately desist from and correct the violation. 12. NON-DISCRIMINATION COVENANT. Consultant, for itself, its personal representatives, assigns, subcontractors and successors in interest, as part of the consideration herein, agrees that in the performance of Consultant's duties and obligations hereunder, it shall not discriminate in the treatment or employment of any individual or group of individuals on any basis prohibited by law. If any claim arises from an alleged violation of this non-discrimination covenant by Consultant, its personal representatives, assigns, subcontractors or successors in interest, Consultant agrees to assume such liability and to indemnify and defend the City and hold the City harmless from such claim. 13. NOTICES. Notices required pursuant to the provisions of this Agreement shall be conclusively determined to have been delivered when (1) hand -delivered to the other party, its agents, employees, servants or representatives, (2) delivered by facsimile with electronic confirmation of the transmission, or (3) received by the other party by United States Mail, registered, return receipt requested, addressed as follows: To The CITY: City of Fort Worth Attn: Fernando Costa 1000 Throckmorton Fort Worth TX 76102-6311 Facsimile: (817) 392-8654 Form Services Agreement Bermex, Inc. Page 6 of 9 To CONSULTANT: Bermex, Inc. Henry G. Mello 37244 Groesbeck Highway, Suite A Clinton Township, Michigan 48036 Facsimile: (586) 461-2054 CITY SECRETAitY FT. WORTH, TX 14. ,GOVERNMENTAL POWERS. It is understood and agreed that by execution of this Agreement, the City does not waive or surrender any of its governmental powers. 15. NO WAIVER. The failure of the City or Consultant to insist upon the performance of any term or provision of this Agreement or to exercise any right granted herein shall not constitute a waiver of the City's or Consultant's respective right to insist upon appropriate performance or to assert any such right on any future occasion. 16. GOVERNING LAW/VENUE. This Agreement shall be construed in accordance with the internal laws of the State of Texas. If any action, whether real or asserted, at law or in equity, is brought on the basis of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. 17. SEVERABILITY. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 18. FORCE MV1AJEURE. The City and Consultant shall exercise their best efforts to meet their respective duties and obligations as set forth in this Agreement, but shall not be held liable for any delay or omission in performance due to force majeure or other causes beyond their reasonable control (force majeure), including, but not limited to, compliance with any government law, ordinance or regulation, acts of God, acts of the public enemy, fires, strikes, lockouts, natural disasters, wars, riots, material or labor restrictions by any governmental authority, transportation problems and/or any other similar causes. 19. HEADINGS NOT CONTROLLING. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 20. REVIEW OF COUNSEL. Form Services Agreement B erm ex, Inc. Page 7 of 9 {►L RECORD The parties acknowledge that each party and its counsel have reviewed and revised this Agreement and that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or exhibits hereto. 21. AMENDMENTS / MODIFICATIONS / EXTENSTIONS. No extension, modification or amendment of this Agreement shall be binding upon a party hereto unless such extension, modification, or amendment is set forth in a written instrument, which is executed by an authorized representative and delivered on behalf of such party. 22. ENTIRETY OF AGREEMENT. This Agreement, including the schedule of exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Consultant, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. 23. SIGNATURE AUTHORITY. The person signing this agreement hereby warrants that he/she has the legal authority to execute this agreement on behalf of the respective party, and that such binding authority has been granted by proper order, resolution, ordinance or other authorization of the entity. The other party is fully entitled to rely on this warranty and representation in entering into this Agreement. (SIGNATURE PAGE FOLLOWS] IFFti%JJ� 1"3 0; OD tall STY FT. IN011111, Form Services Agreement B erm ex, Inc. Page 8 of 9 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples this day of i1,fl o tin.4y�.¢ , 20oIU F FORT W RTH: elassisses.4) Fernando Costa ^°" ..,ca.Q Assistant CityMana er `� Orfr gap � �„ o. -- ATTEST: Marty H" drix City Secretary 00 Berme; Inc: Henry G. Mello President 40patej/ � O octecK e'' WITNESS: APPROVED AS TO FORM AND LGALITY: ( (k) It I (1 Cheista R. Reynolds Sr. Assistant City Attorney CONTRACT AUTHORIZATION: M&C: e cis -es - Date Approved: Form Services Agreement Bermex, Inc. Page 9 of 9 Ljte“-t- B y: A1A ,v OFFICA L RECORD CITY SECRETARY FT.Wcrm; TX NA) /0 EXHIBIT A SCOPE OF WORK OVERVIEW OF BUSINESS OBJECTIVES AND GOALS The City of Fort Worth (City) is soliciting proposals for experienced and qualified Meter Reading Services for an agreement to read standard routes for monthly water meter reading throughout the City. The City provides retail treated water to over 240,000 customers, all of whom with minor exceptions are located within the corporate limits of the City with a service area totaling approximately 325,000 square miles. The Service area is divided into both walking and "drive -out" routes. The City uses several makes of meters. All of the meters have either dial or digital type displays and most read left to right. Meters are read two (2) days prior to billing with approximately 240,000 accounts billed monthly. Most of the meters are in relatively easy to read locations, but some are located in underground vaults and in remote locations. The City currently utilizes a 21-day cycle for a total of approximately 390 routes per month. The City is responsible for calculation, billing and receipt from water, wastewater and solid waste services. As a major source of revenue, the accuracy, timeliness and completeness of meter reading information is critical for management. Readings must be taken in all weather, site and meter conditions. The City currently utilizes approximately 28 Datamatic handheld devices with charging and communication cradles. Meter reading route information is down- loaded from the Customer Information System (CIS), which is the City's mainframe. As the meter reader traverses the reading route, the handheld device displays the street address, commentary, prompts for the meter data and abnormal conditions. After the route is complete, the handheld device is again connected to the cradle for charging and communications. The devices are unloaded nightly to the CIS and are loaded with the route schedule for the next day. Various reports are available from the CIS summarizing the activity from each unloaded device. Routes are determined and periodically adjusted based on the order in which the meters are read. Meter locations and other special comments are stored in the CIS and are available for the meter reading devices. REQUIRED SERVICE The Contractor shall report to the Water Director, S. Frank Crumb P.E., or his designee, Fort Worth Water Department and shall obtain meter readings each month according to pre -arranged meter reading and billing schedules for all retail customers of the City. Task 1- Training Contractor must demonstrate that trained, responsible people will be used for this agreement. Employee training should include classroom and field work with a qualified instructor. It is expected that actual field experience will be part of the training. i Ml i Gat( SILCHETAkY I Ft WORTH, TX Task 2 -Quality of work Per American Water Works Association (AWWA) standards, meters must be accurate with an error level of not greater than one (1) error per 1,000 reads. On a monthly basis, a penalty of $25.00 will be assessed for each reading error in excess of 1 per 1,000 reads. Errors are defined as misreads found by field audit re -reads prior to billing or through customer request investigations (re -reads). After completion of investigation, reading error is confirmed. Contractor is responsible for insuring that individual error levels will not exceed a maximum of three (3) errors per 1,000 reads for more than two (2) consecutive months. Failure to correct could result in agreement termination. Failure to read for any reason, Contractor will incur penalty of $5.00 for each un- read meter. Falsification of readings will result in a $500.00 liquidated damages per each false read identified. Falsification of readings may also result in immediate termination of agreement. Task 3 - Completion of work Handheld devices shall be picked up by 6:00 a.m. each work day and all meter readings are to be completed on the day scheduled. All work must be returned to the City by 5:00 p.m. on the day the meter is read. All handheld devices must be picked up from and returned to the site determined by the City. Weather conditions must not prevent the accomplishment of services under this agreement unless preauthorized by the City in advance. The reading schedule is provided with a certain degree of flexibility which does allow for occasional modification. Upon prior approval from the City, reading periods can be extended through "no -read" days or holidays. The average read time for a route is five (5) to six (6) hours. Contractor is to establish work schedules for personnel. The successful Contractor's role in the Meter Reading Services Agreement will be to: Provide necessary field personnel and supervision to read contracted routes. Provide uniforms to Meter Readers (subject to approval by the City) Provide employee identification which includes a photograph of the employee. Personnel will be required to wear Contractor provided uniforms and identification badge. Furnish and be responsible for all transportation necessary to complete the work. Provide City approved vehicle signs with the following identification and must be professionally maintained so as to provide a clean and mechanically sound image. Meter Reading Contractor Fort Worth Water Department (817) 392-4477 Provide tools, materials and supplies required by Meter Reading, i.e. meter bars, reading scopes, hand pumps, animal repellant, etc. Read a minimum number of scheduled contracted routes per day in a 21-day cycle for a total of approximately 390 routes per month-. CITY SECR C;. Ft WORTH, TX i if Provide management information reports on a daily, weekly and monthly basis. Maintain liability and insurance coverage in such form and amounts specified in the Professional Services Agreement. Perform criminal history checks on each new employee. Provide proof of valid driver's license every six (6) months for all employees who are required to drive. Contractor must ensure that employees will not consume alcohol or use controlled substances during work hours and will not work under the influence of alcohol, controlled substances or dangerous drugs. 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. Contractor is responsible for collecting meter readings regardless of weather, meter condition and/or other impediments unless pre -authorized by City in advance. Should a failure of the handheld meter reading devices equipment occur, the Contractor is expected to return the device to the City as soon as possible after the failure is encountered so that attempts can be made to retrieve the data. If the data is lost, Contractor will be responsible for re -obtaining the lost readings. The City will compensate the Contractor for the actual cost of the retrieval of readings. Contractor will be held financially liable for any damage or loss to the handheld meter reading equipment, including the cost of transporting damaged equipment to the repair facility, due to negligence or abuse by its employees. Contractor and its employees are prohibited from tampering, altering or adjusting the handheld reading devices and associated equipment. Upon completion of services under this agreement the Contractor must return all handheld meter reading devices, battery packs and associated equipment to the City by 6:00 p.m. CST (unless mutually agreed by the City and Contractor) on the day of agreement termination or expiration All services shall be performed as described in the scope of work specification. Deviation will not be considered unless the Contractor can explain in detail that the deviation is of material benefit to the City and provides service levels at least equal to the specified. ASSUMPTIONS 4s1 If necessary, the Contractor will be provided 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 of Fort Worth. Contractor will track issues, action items and meter reading items. CITY SECtiutimice Ft WORTH, TX The City will accept or reject all deliverables within ten (10) business days. Business days are considered to be the normal City hours of operation: Monday — Friday; 8:00 a.m. — 5:00 p.m., excluding City holidays and furlough days. Minimal administrative support will be required, but in those instances when it is required, it will be provided by the Contractor. The Contractor's work will be conducted on site, travel time and costs are included in agreed upon pricing. CRITICAL SUCCESS FACTORS Effective management and oversight is critical to the success of the agreement. The Contractor will work with the Water Conservation Services to ensure the City's business priorities are being met. Monitoring and evaluation of performance will be accomplished through the tracking of milestones and targets, and future compensation will be tied to performance. Communicate progress and findings to the Water Conservation Manager via email, minutes and briefings on a weekly basis throughout the duration of the agreement. Assist with the preparation of briefing materials and presentation of such to the City Manager staff, Infrastructure and Transportation Committee (ITC), City Council and Employee Meetings as requested. OUT OF SCOPE Implementation of any technology solutions is considered out of scope. The Contractor will be providing meter reading and associated services only. Development and documentation of departmental procedures and/or desk top work instructions will remain the responsibility of City of Fort Worth staff. '' r p Ns�.Y_7nrA relit "__ tatc?..' I if1 ' r4 EXHIBIT B CITY OF FORT WORTH WATER DEPARTMENT CONTRACT METER READING SERVICES PROPOSAL COST SUMMA i YY Based on stated cycle/route size and potential growth factors, pricing should be quoted per meter. COST PER METER $ 0.47 X 12 MONTHS (year 1) X 240,000 METERS = $ 112 800.00 $ 1,3 53,600.00 Mileage Cost N/A /mile $ N/A Miscellaneous Cost $ N/A (Specify Additional Charges) One Year Option Two Year Option Three Year Option Four Year Option Five Year Option 404 $ 0.47 ($1,353,600, Annual) $ 0.49 ($1,411,200, Annual) $ 0.49 ($1,411,200, Annual) $ 0.49 ($1,411,200, Annual) $ 0.51 ($1,468,800, Annual) OFFICIAL RECORD D CITY SECRETARY FT. wpm, Tx M&C Review Page 1 of 2 Official site of the City of Fort Worth, Texas Fowr' \VORu 1 COUNCIL ACTION: Approved on 10/19/2010 DATE: CODE: C SUBJECT: 10/19/2010 REFERENC NO.: TYPE: C-24552 NON - CONSENT LOG NAME: UBLIC HEARING: 13 P 10-0536 METER READING JR NO Authorize a One -Year Contract in an Initial Amount Up to $1,353,600.00 with Bermex, Inc., for Meter Reading Services with Options to Renew the Contract for Up to Five One - Year Periods RECOMMENDATION ■ It is recommended that the City Council authorize a one-year contract in an initial amount up to $1,353,600.00 with Bermex, Inc., for Meter Reading Services with options to renew the contract for up to five one-year periods. DISCUSSION: The City of Fort Worth Water Department utilizes a third party to read water meters at over 240,000 retail account locations. The accuracy, timeliness and completeness of meter reading information is critical. This agreement will be used to ensure that monthly water meter reading is conducted accurately throughout the City. The information obtained from these meter readings will allow for the calculation, billing and receipt of water and wastewater service revenue. The Purchasing Division issued a Request for Proposals (RFP) on August 2, 2010, soliciting qualified firms to conduct water meter reading services for the City. The evaluation factors included methodology and approach to the project, responsiveness to the scope of work, demonstrated applicable experience, personnel qualifications of staff to be assigned to the project, total cost and schedule. The vendors were required to meet minimum specifications designed to establish criteria to demonstrate the capability and experience in providing meter reading services for a major utility similar to the City of Fort Worth Water Department. In addition to these requirements, vendors were required to submit proof of at least five years of operating experience and performance. An evaluation panel was made up of representatives from the Water Department. Seven proposals were received in response to the RFP. Proposals were received from Bermex, Inc., Corix Utilities (US) Inc., Trace Services, LP, US Metering & Technology, Inc., AMS Utiliserv, Utility Partners of America, and Water Alternative Natural Gas I . The recommended service provider, Bermex, Inc., was determined the most qualified to perform the required services. ADVERTISEMENT - This RFP was advertised in the Fort Worth Star -Telegram on August 4, 2010, August 11, 2010, August 18, 2010 and August 25, 2010. PRICE ANALYSIS - The Cost Per Meter under the recommended agreement will remain the same as the 2009 Agreement and will not increase until Fiscal Year 2012. The Water Department has reviewed the pricing and determined it to be fair and reasonable. Prices for each year's meter reading services are estimated based on stated cycle/route size and potential growth factors: Year 2010 2011 2012 2013 I OFFICIAL RECORD 1 Ft Weintio TX http://apps.cfwnet.org/council_packet/mc_review.asp?ID=14066&councildate=10/19/2010 10/25/2010 Cost Per Meter $ 0.47 $ 0.47 $ 0.49 $ 0.49 Estimated Total Cost $1,353,600.00 $1,353,600.00 $1,411,200.00 $1,411,200.00 M&C Review Page 2 of 2 2014 2015 5 year total $ 0.49 $ 0.51 $1,411,200.00 $1,468,800.00 $8,409,600.00 AGREEMENT TERMS - Upon City Council's approval, the Agreement will begin October 1, 2010 and expire September 30, 2011 unless terminated earlier in accordance with its terms. RENEWAL OPTIONS - This Agreement may be renewed for up to five additional one-year terms at the City's option. Additional services, not to exceed $50,000.00 in excess of the annual amount, may be required based on the number of new meters installed throughout the agreement period. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term. M/WBE - A waiver of the goal for M/WBE subcontracting requirements was requested by the Purchasing Division and approved by the M/WBE Office because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that funds are available in the current operating budget, as appropriated, of the Water and Sewer Fund TO Fund/Account/Centers FROM Fund/Account/Centers PE45 539120 0604009 $1,353,600.00 Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: ATTACHMENTS Fernando Costa (6122) Frank Crumb (8246) Jack Dale (8357) James Rodriguez (2057) http://apps.cfwnet org/council_packet/mc review.asp?ID=14066&councildate=10/19/2010 10/25/2010