HomeMy WebLinkAbout13 - Amendment No. 1 to Water Meter Reading Service AgreementQ �EwPpRT
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<,FORN'P City Council Staff Report
May 12, 2020
Agenda Item No. 13
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Mark Vukojevic, Utilities Director - 949-644-3011,
mvukojevic@newportbeachca.gov
PREPARED BY: Steffen Catron, Utilities Manager, scatron@newportbeachca.gov
PHONE: 949-644-3011
TITLE: Approval of Amendment No. 1 to Water Meter Reading Service
Agreement with Alexander's Contract Services
ABSTRACT:
The Utilities and Finance Department utilize a service provider to physically read the
City's water meters. These water meters are manually read (in person) monthly or
bimonthly by a contractor and the agreement expires on May 31, 2020. Utilities is
requesting to amend and extend the current contract for water meter reading services
with Alexanders Contract Services as the City implements and completes the Automated
(Water) Meter Infrastructure project.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Approve Amendment No. 1 to the Service Agreement with Alexander's Contract
Services for Water Meter Reading Services, with an additional $500,000 in contract
compensation and a two-year contract extension, and authorize the Mayor and City
Clerk to execute the agreement.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this Agreement. The costs for
services under this Agreement will be expensed to the Water Enterprise Fund program
account in the Utilities Department, 7019052-811049.
13-1
Approval of Amendment No. 1 to Water Meter Reading Service Agreement with
Alexander's Contract Services
May 12, 2020
Page 2
DISCUSSION:
The City contracts with a service provider for the manual water meter reading of the
26,000+ water meters throughout the City's water service boundary. 95% of the City's
water meters are manually read in person by Alexander's Contract Services (Alexander's)
on a monthly basis for California State mandated water usage reporting requirements and
on a bi-monthly basis for billing purposes. Alexander's has provided this service to the
City since 2010 when the City first contracted out meter reading services. Inconsideration
of the upcoming phase-out of the service, the competitive existing pricing, and the current
COVID-19 crisis, extending the current agreement is recommended by staff.
As the City implements the Advanced Water Metering Infrastructure (AMI) project over
the next two to three years, Alexander's services will gradually be phased out. As a
manually read meter is replaced with an AMI meter, it will no longer need to be manually
read by Alexander's. Over the next two years, this will decrease Alexander's quantities
and the cost of the service will be proportionally reduced. There will be a meter reading
and AMI overlap for quality assurance purposes. The first year of the contract use is
estimated at 100% and the second year contract is estimated at 50%. When AMI is fully
implemented, the annual savings equates to $325,000. As the AMI project nears
completion at the end of this agreement term, another agreement amendment with
Alexander's may be required or City staff will manually read any remaining meters.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING -
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Amendment No. 1 to Service Agreement with Alexander's Contract
Services
13-2
ATTACHMENT A
AMENDMENT NO. ONE TO
SERVICE AGREEMENT
WITH ALEXANDER'S CONTRACT SERVICES, INC. FOR
WATER METER READING SERVICES
THIS AMENDMENT NO. ONE TO SERVICE AGREEMENT ("Amendment No.
One") is made and entered into as of this 12th day of May, 2020 ("Effective Date"), by
and between the CITY OF NEWPORT BEACH, a California municipal corporation and
charter city ("City"), and ALEXANDER'S CONTRACT SERVICES, INC., a California
corporation ("Contractor"), whose address is 8655 Morro Road, Suite C, Atascadero,
California 93422, and is made with reference to the following:
RECITALS
A. On June 1, 2015, City and Contractor entered into a Professional Services
Agreement ("Agreement") to engage Contractor to perform water meter reading
services for City ("Project").
B. The parties desire to enter into this Amendment No. One to extend the term of the
Agreement to May 31, 2022, to increase the total compensation, to update the
Contractor's Project Manager's name, to update the City's Administration of the
Agreement, and to update insurance requirements.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. TERM
Section 1 of the Agreement is amended in its entirety and replaced with the
following: "The term of this Agreement shall commence on the Effective Date, and shall
terminate on May 31, 2022, unless terminated earlier as set forth herein."
2. COMPENSATION TO CONTRACTOR
Exhibit B to the Agreement shall be supplemented to include the 2020 Schedule
of Billing Rates, attached hereto as Exhibit B and incorporated herein by reference. The
2020 Schedule of Billing Rates shall be effective as of June 1, 2020. Exhibit B to the
Agreement and Exhibit B to Amendment No. One shall collectively be known as "Exhibit
B."
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Contractor for the Services on a time and expense not -to -exceed
basis in accordance with the provisions of this Section and the Schedule of Billing Rates
attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise
provided herein, no rate changes shall be made during the term of this Agreement without
the prior written approval of City. Contractor's compensation for all Services performed in
accordance with this Agreement, including all reimbursable items, shall not exceed Two
Million Six Thousand Six Hundred Dollars and 001100 ($2,006,600.00), without prior
written amendment to the Agreement."
Alexander's Contract Services, Inc. Page 1 13-3
The total amended compensation reflects Contractor's additional compensation for
additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subcontractor fees, in an amount not to exceed Five
Hundred Thousand Dollars and 001100 ($500,000.00).
3. PROJECT MANAGER
Section 5.1 of the Agreement is amended in its entirety and replaced with the
following:
"5.1 Contractor shall designate a Project Manager, who shall coordinate all
phases of the Project. This Project Manager shall be available to City at all reasonable
times during the Agreement term. Contractor has designated Bill Van Wagoner to be its
Project Manager. Contractor shall not remove or reassign the Project Manager or any
personnel listed in Exhibit A or assign any new or replacement personnel to the Project
without the prior written consent of City. City's approval shall not be unreasonably
withheld with respect to the removal or assignment of non -key personnel."
4. ADMINISTRATION
Section 6 of the Agreement is amended in its entirety and replaced with the
following:
"This Agreement will be administered by the Utilities Department. City's Utilities
Manager or designee shall be the Project Administrator and shall have the authority to
act for City under this Agreement. The Project Administrator shall represent City in all
matters pertaining to the Services to be rendered pursuant to this Agreement."
5. INSURANCE REQIREMENTS
Exhibit C, "Insurance Requirements," Section 5(A), is amended in its entirety and
replaced with the following.-
"A.
ollowing:
"A. Evidence of Insurance. Contractor shall provide certificates of insurance to
City as evidence of the insurance coverage required herein, along with a waiver of
subrogation endorsement for workers' compensation and other endorsements as
specified herein for each coverage. All of the executed documents referenced in this
Contract must be returned to City within ten (10) regular City business days after the date
on the "Notification of Award." Insurance certificates and endorsements must be
approved by City's Risk Manager prior to commencement of performance. Current
certification of insurance shall be kept on file with City at all times during the term of this
Contract. The certificates and endorsements for each insurance policy shall be signed
by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15)
days prior to the expiration of any such policy, evidence of insurance showing that such
insurance coverage has been renewed or extended shall be filed with the City. If such
coverage is cancelled or reduced, Contractor shall, within ten (10) days after receipt of
written notice of such cancellation or reduction of coverage, file with the City evidence of
insurance showing that the required insurance has been reinstated or has been provided
Alexander's Contract Services, Inc. Page 2 13-4
through another insurance company or companies. City reserves the right to require
complete, certified copies of all required insurance policies, at any time."
6. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Alexander's Contract Services, Inc. Page 3 13-5
IN WITNESS WHEREOF, the parties have caused this Amendment No. One to be
executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Date: y/Z C O ZO
Aar& C. Harp
City Attorney
ATTEST:
Date:
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Will O'Neill
Mayor
CONTRACTOR: Alexander's Contract
Services, Inc., a California corporation
Date:
By: By:
Leilani L Brown Mark T. Hibshman
City Clerk Chief Executive Officer
Date:
By:
Chris G. Molina
Chief Financial Officer
[END OF SIGNATURES]
Attachments: Exhibit B — Schedule of Billing Rates
Alexander's Contract Services, Inc. Page 4 13-6
EXHIBIT B
SCHEDULE OF BILLING RATES
2020 Billing Rates — Water Meter Reading Services
(Effective June 1, 2020)
*Exact number of meters subject to change based on new work scheduled by the City.
Alexander's Contract Services, Inc. Page B-1 13-7
Unit Price:
Quantity*:
Frequency:
Annual Total:
Monthly Meter,
Reading
_$1.02
27,000
12 times per
year
$330,480.00
*Exact number of meters subject to change based on new work scheduled by the City.
Alexander's Contract Services, Inc. Page B-1 13-7