M&C Review


COUNCIL ACTION:  Approved on 6/11/2019 

DATE: 6/11/2019 REFERENCE NO.: **C-29146 LOG NAME: 60AMEND1 48070 MTRRD AND DEL DAN AGREEMENT
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
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:

Year

Cost Per
Meter

Meter Annual Amount Cost per DAN DAN Annual Amount Annual Total Cost
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
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Chris Harder (5020)
Additional Information Contact:
Jerry Pressley (8257)

 
 
ATTACHMENTS