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Home My WebLink About12 METER READING WATER 11-05-01AGENDA REPORT NO. 12 11-05-01 MEETING DATE: TO: FROM: SUBJECT: NOVEMBER 5, 2001 400-10 WILLIAM A. HUSTON, CITY MANAGER RONALD A. NAULT, FINANCE DIRECTOR AWARD OF CONTRACT TO PROVIDE METER READING SERVICES TO THE CITY'S WATER UTILITY SUMMARY: Since late 1996 the City has been contracting for Meter Reading services on an interim basis to deal with employee turnover. Contracting out for Meter Reading services has proven to be efficient and cost effective. Staff is recommending that the City Council authorize the signing of a five year agreement for these services. RECOMMENDATION: . Authorize the Finance Director to sign a five year agreement to provide Meter Reading and other customer services, as outlined in the City's Request for Proposal, with American States Water Company for an estimated annual cost of $76,000. , Appropriate $6,000 from the Unappropriated Fund Balance of the Water Enterprise fund to account no. 70-451-6036. FISCAL IMPACT: Current 2001/2002 appropriation for Contract Meter Reading services is $70,000. An additional appropriation of $6,000 will be needed based on the proposals received. DISCUSSION: During fiscal 1995/1996 the Customer Service division of our Water Utility experienced problems with employee turnover, driven largely by a long term disability of one of our Meter Readers. We decided to seek a contract with a third party to provide Meter Reading services in the interim. We found that contracting out for these services was very efficient and cost effective. Our current in-house cost for two Meter Readers would be $103,874 per year for salaries and benefits, plus the cost of two vehicles and other supplies. Based on the American States Water proposal, we are saving $28,000 per year by contracting for their services. In 1999 the City contracted with Navigant Consultants, Inc. to do a privatization study of the City's Water Utility. Included within this study, they reviewed our Contract Meter Reading arrangement. As part of their final report they found that our contract provided a cost effective means of Meter Reading and proposed we continue to privatize that portion of the Water Utility. The City Council approved these recommendations during the 2001/2002 budget process. Staff surveyed various Utilities throughout the State to find companies that provide Meter Reading services and on September 13, 2001 we sent Requests for Proposal to thirteen firms. On October 11th we received two proposals and five notices of declining to propose. The two proposals received were from Alexander's Contract Services based in Atascadero, California, and American States Water based in Anaheim, California. The attachment summarizes the bi-monthly cost for each proposal. The Alexander's bid of $17,593 is approximately $4,500 per billing cycle higher than the American States Water proposal of $13,046 per bi-monthly billing cycle. The Alexander's proposal would cost the City water customers $27,000 per year more than the American States Water bid. Ro Finance Director Attachments - 2 RAN:WaterMeterReadingRFP2001 StaffReport.doc WATER METER READING RFP 2001 VENDOR INFORMATION: Respond? Bid? ALEXANDER'S CONTRACT SERV]:CES P. O. Box 1684 Atascadero, CA 93~23 Y Y Alexander Bid - Bi-monthly Example: $1.20 per Meter Read Customer Service Activities Included in above $500.00 monthly Meter Reading Charge $:30,00 per hour for service calls requiring more than 45 minutes. Total Meters: 13828 $1.20 Monthly Meter Reading Fee - 2 months Bi-monthly total: $16,593.60 $1,000.00 $17,593.60 AMERZ~N STATES WATER SOUTHERN CAL~FORN]:A WATER COMPANY Orange County District 1920 W. Corporate Way Anaheim, CA 92801 Y Y American States Water Bid - Bi-monthly Example: $0.50 per Meter Read $30.66 per hour Customer Service Task $ 0.00 monthly Meter Reading Charge Total Meters: 13828 $0.50 Avg Customer service tasks- 2 months (Average hours per month) Base fee - 2 months 200 $30.66 Bi-monthly total: BERMEX CONTRA~ SERV]:CES 29500 Southfieid Road #100 Southfieid, MT ~8076 Y N CAU:FORN]:A AMERJ:CAN WATER COMPANY N 111 No. Sepulveda Blvd. Manhattan Beach, CA 90266 C:\WINDOWS\Temporary Intemet Files\OLK81C2\Meter Reading RFP Recap.xls: Sheet1 N $6,914.00 $6,132.00 -0- $13,046.00 10/30/01 Page 1 of 2 - CALZFORN:[A WATER SERV]:CE COMPANY 1720 No. First Street San .lose, CA 95112-4598 MONTGOMERY WATSON HARZA 300 No. Lake Avenue, Suite 1200 Pasadena, CA 91101 PARK WATER COMPANY P. O. Box 7002 Downey, CA 902~,1-7002 SAN D]~EGO GAS & ELECTRIC 701 33rd Street #A San Diego, CA 92102 SAN GABR]:EL VALLEY WATER COMPANY P. O. Box 6010 El Monte, CA 9173~,-2010 SCHLUMBERGER INDUSTRIES 2392 Old Ranch Road Escondido, CA 92027 SOUTHERN CALI'FORN]:A ED:[SON COMPANY 14155 Bake Parkway Irvine, CA 92618 SOUTHERN CAL]:FORNI:A GAS COMPANY P. O. Box 3249 Terminal Annex LosAngeles, CA 90051 SUBURBAN WATER SYSTEMS (California "division" of Southwest Water Company) 1211 East Center Court Drive Covina, CA 9172~,-3603 N Y N N Y N Y Y N N N N N N N N N N C:\WINDOWS\Temporary Intemet Files\OLK81C2\Meter Reading RFP Recap.xls: Sheet1 10/30/01 Page 2 of 2 Finance Department September 13, 2001 SCHLUMBERGER INDUSTRIES 2392 Old Ranch Road Escondido, CA 92027 Attention' Debbi Stanley Subject: Request for Proposal (RFP) for Meter Reading City of Tustin 300 Centennial Way Tustin, CA 92780 Director (714) 573-3061 Secretary (714) 573-3060 Water Billing (714) 573-3075 FAX (714) 832-0825. Dear Ms. Stanley' The City of Tustin invites your company to submit a Proposal for meter reading and customer service activities. Our current contract ends December 31, 2001. Background The City of Tustin is located in Orange County, California and encompasses approximately 11 square miles, providing water service to most of Tustin and the foothills north of Tustin. We currently have approximately 13,700 service connections that include about 200 industrial services. Criteria Provide bi-monthly meter reading services for 8 billing cycles following current reading schedule. Provide Customer Service activities (i.e. re-reads, high/Iow investigation, daily on's and off's, door tags, delinquent shut-off's, and other customer service duties as assigned). Each cycle must be completed within 4 days of the beginning date. Request for Proposal Meter Reading Services September 13, 2001 Page 2 Criteria continued Error rate of 2 per 1000 or less with re-read done by Contractor, at no additiOnal charge, will not be counted as error. A penalty of one hour at the Customer Service charge will be credited aclainst the Contractor's invoice for each meter unread or mis-read by the Meter Rea'der if the City performs this function. Reading Equipment and Electronic Files must be compatible with NT operating system and Springbrook Software system. The Itron ~VRS is the City's preferred reading equipment. Employees to be uniformed with your company logo and identification tags. All vehicles will have your company logo and will be marked "Providing Service for The City of Tustin". Price per meter read to be included in Proposal. Price for customer service activities (i.e. re-reads, high/Iow investigation, daily on's and off's, door tags, delinquent shut-off's, and other customer service duties as assigned) shall be included. Please break out by separate service unless all services will be provided at a flat rate. Team members and contacts shall be identified. Start-up costs, if any, shall be included. References shall be included. Other pertinent information may be included. ]::[]:. Requirements _ Contract duration shall be a minimum of 5 years with either party having the right to terminate the agreement by giving 6 months prior written notice. Request for Proposal Meter Reading Services September 13, 2001 Page 3 Contractor shall maintain insurance as will protect the City of Tustin from any and all claims under the Workers' Compensation Laws and from general liabilib/claims for bodily injury, or death, or property damage which may arise from negligent performance by Contractor employees, agents, successors, and assigns while performing any service covered by this agreement. Contractor shall provide evidence of insurance to the Cib/of Tustin on a Cib/Certificate of Insurance, including thirty (30) day notice of cancellation by the insurance carrier. Said public liability and property damage insurance shall be in a minimum of one million dollars ($~,000,000). The Contractor will make reasonable efforts to obtain and supply the City of Tustin meter reads for located, accessible water meters within the service area during each reading cycle. Damaged, inaccessible or unlocated meters will be so noted at the time of the attempted read and this information will be provided to the City of Tustin who shall be responsible for correcting the problem and obtaining the reading. Bi-monthly meter readinqs shall be performed to the quidelines and schedules established by the City of Tustin. The service area may be subject to change. Conduct meetings with City of Tustin personnel at least weekly during the start-up phase and during the first month of meter reading. Afl:er the first month, performance meetings may be held at least monthly or as requested by either party. All services and work specified in this Proposal must be accomplished by the Contractor and shall not be subcontracted to a third party. ]:V. Schedule September 13, 200::[ October 1:[, 2001 October 24, 2001 November 5, 2001 January 1, 2002 Request for Proposal sent to prospective Contractors Proposals returned to City of Tustin Proposals reviewed by City of Tustin Finance Department Vendor Selection approved by the Tustin City Council Start of Contract Request for Proposal Meter Reading Services September 13, 2001 Page 4 VI Basis of Award,: Award of Contract The City of Tustin reserves the right to reject any or all Bids, including without limitation the right to reject any or all non-conforming, non-responsive or conditional Bids. The City of Tustin reserves the right to request any additional information necessary to aid in the evaluation of submittals. VT. Com_~leted Proposals Completed Proposals must be returned by the due date of October :[1, 200:L to the designated address and person, listed below. Please call our office at 714-573-3066 if you have any questions. Thank you. City of Tustin Attn: 3ennifer Shimabukuro 300 Centennial .Way Tustin~ CA 92780 ,- Files&Forms:WaterMeterReadingRFP2OOl.doc