HomeMy WebLinkAbout13 - Water Meter ReadingAgenda Item No. 13
October 11. 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Municipal Operations Department
Mark Harmon, Municipal Operations Department Director
949 644 -3055, mharmon(a)newportbeachca.gov
APPROVED: 42� 6-I \
TITLE: APPROVAL OF AM €NDMENT NO. ONE TO THE CONTRACT
WITH ALEXANDER CONTRACT SERVICES, INC. TO PROVIDE
CITY -WIDE WATER METER READING SERVICES.
ABSTRACT:
Municipal Operations staff requests the approval of an amendment to the Agreement
with Alexander Contract Services, Inc. (Alexander) to expand water meter reading
services to all City residential accounts.
RECOMMENDATION:
Approve Amendment number one to the agreement with Alexander expanding contract
water meter reading services to all residential accounts.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this service. It will be
expensed to the Water Enterprise Fund in the Municipal Operations Department, 5500-
8080. Increased contract cost of the additional meter reading services will be offset by
the elimination of one (1) Utilities Specialist position in the Utilities Division.
DISCUSSION:
On June 8, 2010, the City Council approved an agreement with Alexander to provide
water meter reading services for approximately 50% of the City's residential accounts.
Previous to this action, city staff performed this function for all residential accounts. As
this was a significant change in operations, the contracting of 50% of the meter reading
was to provide a phased in approach and allow staff time to evaluate the benefits of a
1
APPROVAL OF AMENDMENT NO. ONE TO THE CONTRACT WITH ALEXANDER
CONTRACT SERVICES, INC. TO PROVIDE CITY -WIDE WATER METER READING
SERVICES.
October 11, 2011
Page 2
contract meter reading program. Alexander is currently reading 78,000 meters per year
at a contract cost of $74,000 ($0.95 per reading). They have agreed to provide the
service for the remaining residential water accounts at the same cost of $0.95 per
reading. The amended agreement with Alexander would require the bi- monthly meter
reading of approximately 156,300 meters at a total cost of $148,500 per year. This
change would represent a cost savings to the city of $70,000 per year. The Utilities
Division would eliminate a Utilities Specialist position as a result of this contract
amendment.
One of the primary performance standards for Alexander that was reviewed during this
past year was the accuracy rating in reading the meters. Misread meters cause
customer service problems /issues, and extra work for city staff to re -read and correct
the billing for misread meters. The industry standard, and the standard applied to
Alexander this past year, was a 2.0% margin of error on all meters read over the
bimonthly period. Alexander is currently at a 0.05% error rating on Newport Beach
accounts. The meter reading agreement has proven to reduce cost while maintaining
the same level of accuracy and customer service.
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).
2
APPROVAL OF AMENDMENT N0. ONE TO THE CONTRACT WITH ALEXANDER
CONTRACT SERVICES, INC. TO PROVIDE CITY -WIDE WATER METER READING
SERVICES.
October 11, 2011
Page 3
i
Submitted by:
Mark Harmon
Director
Attachments: A. Staff Report and Service Agreement with Alexander Contract
Services, Inc.
B. Amendment No. One to Service Agreement
C. Exhibit A- Revised Scope of Work
D. Exhibit B- Revised Meter Reading Service Fee Schedule
E. Exhibit C- Revised Optional Services Fee Schedule
Q
CITY OF NEWPORT BRACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 15
June 8, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Utilities Department
Craig A. Justice, Deputy Utilities Director
949 - 718 -3402 or ciustice a newportbeachca.mov
SUBJECT: APPROVAL OF AN AGREEMENT WITH ALEXANDER CONTRACT
SERVICES, INC. FOR CITY WATER METER READING SERVICES
ISSUE
Should the City Council approve an Agreement with Alexander Contract Services, Inc. for
contract water meter reading services?
RECOMMENDATION:
Approve an Agreement with Alexander Contract Services, Inc. for water meter reading services;
and authorize the Mayor and City Clerk to execute the agreement.
BACKGROUND:
Currently the Utilities Department Water Meter Division is responsible for providing water meter
reading services for over 26,500 residential and commercial customers throughout the City. The
Meter Division staff provides a high level of service beyond meter reading which includes
responding to late billing notices, meter testing, responding to customer calls, water turn -on and
tum -off requests, customer water use reviews, service inspections and meter replacement.
At the January 12, 2010 Council Study Session, staff presented information on the current water
meter reading program and Request For Proposals (RFP) for water meter reading services. The
Utilities Department evaluated the Water Meter Division work activities as part of the Early
Retirement Incentive Program (ERIP) to improve operational efficiency and customer service.
The division restructuring has created opportunities for the City to consider an outside contract
for water meter reading. The main focus is to accelerate the changes already planned in the
department to replace old water meters, implement technology to improve the efficiency of
meter reading and improve customer service. The proposed agreement will allow the City's
crews to focus on these key components.
On January 22, 2010 an RFP was distributed to four companies known to provide water meter
reading services_ . The City received one responsive proposal from Alexander Contract Services,
Inc.
Water Meter Reading Service Agreement
June 8, 2010
Page 2
The proposal from Alexander has been evaluated by staff. Their proposal demonstrates the
qualifications and experience necessary to provide the services under the terms of the RFP.
The company has been in business for over 40 years and currently provides water meter
reading services to 15 agencies in California.
DISCUSSION:
Utilities staff met with the City of San Juan Capistrano Water Department to discuss their
current meter reading service contract with Alexander. San Juan Capistrano has been
impressed with their meter reading services including customer service, the use of technology
such as wireless handheld devices and web based data transfer for accurate and efficient
billing.
Alexander would be required to read designated meter routes bi- monthly for City water utility
billing per the RFP. The term of the proposed agreement is for three years with two automatic
one -year extensions unless terminated by the City. There are provisions that allow consumer
price index adjustments, with a 2.5% cap, starting in year three of the agreement. Possible
expansion of service will be evaluated by staff during the first year. An amendment to the
agreement would be necessary to negotiate the terms for citywide water meter reading.
Alexander's proposed annual cost is not to exceed $76;950 to read up to 13,500 meters for bi-
monthly City water utility billing (13,500 meters equates to about one -half of the City's meters).
The proposal includes a $16,875 one -time set up fee to program the meter routes into the
wireless handheld devices and to develop customized service reports. An optional service fee
schedule has been provided for specialized service activities such as leak investigations, GPS
mapping and meter usage audits.
Staff performed a comparison of Alexander's proposal to the City's cost to read 13,500 meters.
The City's costs include personnel, necessary equipment, vehicles, software and data
processing. The below table summarizes Alexander's proposed cost versus the City's cost.
The information shows that Alexander's proposed meter reading cost of service is more
economical.
Should the agreement be amended in the future to cover citywide water meter reading,, the
annual contract service cost is estimated at $154,000. For comparison, the City's annual water
meter reading cost of service is approximately $220,320 or $66,320 higher.
Environmental Review:
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 to
indirectly.
5
I Alexander Contract
Services Inc.
city
Difference
Total Annual Cost
$76,950
$110,11
$33,210
The information shows that Alexander's proposed meter reading cost of service is more
economical.
Should the agreement be amended in the future to cover citywide water meter reading,, the
annual contract service cost is estimated at $154,000. For comparison, the City's annual water
meter reading cost of service is approximately $220,320 or $66,320 higher.
Environmental Review:
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 to
indirectly.
5
Water Meter Reading Service Agreement
June 8, 2010
Page 3
Funding Availability:
Sufficient Water Enterprise Fund savings have been realized through the Utilities Department
ERIP program restructuring to cover the cost of the proposed annual service agreement. There
is sufficient funding available in the current Water Enterprise Fund FY 2009 -10 budget for this
year's meter reading services and set -up costs totaling $20,000 (account No. 5500 - 8080).
Funds have been budgeted in FY 2010 -11 to cover the total annual not -to- exceed service
contract cost of $86,950. Included in the not -to- exceed annual cost is $76,950 for water meter
reading and $10,000 for the City to authorize optional services should they be necessary.
Prepared By:
Craig A. 0 stice, Deputy Utilities Director
Submitted By:
Geor u doch, Utilities Director
Attachment:
A - Service Agreement with Alexander Contract Services, Inc.
0
SERVICE AGREEMENT WITH
ALEXANDER CONTRACT SERVICS, INC.
FOR WATER METER READING SERVICES
THIS SERVICE AGREEMENT for Water Meter Reading Services ( "Agreement')
is made and entered into as of this day of June, 2010, by and between the CITY
OF NEWPORT BEACH, a California Municipal Corporation ( "City "), and ALEXANDER
CONTRACT SERVICES, INC., a California Corporation, whose address is 8655 Morro
Road, Suite D, Atascadero, California 93422 ( "Contractor ") and is made with reference
to the following:
RECITALS
WHEREAS, the City desires to retain contract services for water meter reading
services for up to 13,500 designated water meters in City route areas ( "Service Area ")
the City's bi- monthly water billing.
WHEREAS, on January 22, 2010 a Request for Proposals ( "RFP ") requesting
proposals for water meter reading services was mailed to firms performing this service.
WHEREAS, the Contractor has been deemed to be the most qualified to perform
the services out of those firms which responded to the RFP.
WHEREAS, the Contractor desires to enter into this Agreement to provide
services to the City and acknowledges that the City has relied upon its representations
and commits to faithfully perform the services required by this Agreement and in
accordance with the terms and conditions of this Agreement.
WHEREAS, the Contractor has examined the location of all proposed work,
carefully reviewed and evaluated the specifications relative to the type, common nature
and frequency of work to be performed, is familiar with all conditions relevant to the
performance of services and has committed to perform all work required for the
compensation specified in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. TERM
Unless earlier terminated in accordance with Section 23 of this Agreement, the initial
term of this Agreement shall be for a period of three (3) years. The initial term shall
commence on June 9, 2010 ( "Commencement Date'), after City Council approval of this
Agreement, and upon receipt and approval of all required certificates of insurance.
7
The term of this Agreement shall be extended for two (2) additional one (1) year terms
with the extensions to automatically commence upon the expiration of the initial term or
any extended term, unless the City notifies Contractor in writing at least thirty (30) days
before the end of the initial term or any extended term, of its intent to terminate this
Agreement at the conclusion of the initial term or any extension. Time is of the essence
in the performance of services under this Agreement. The term of the Agreement shall
not extend beyond June 9, 2015, without a separate agreement.
2. SERVICES TO BE PERFORMED
Contractor shall diligently perform all the Services described in the Scope of Work
( "Work" or "Services ") attached hereto as Exhibit 'A' and in the Schedule of Billing Rates
attached hereto as Exhibit 'B', all incorporated herein by reference. The City may elect
to delete certain tasks of the Scope of Work at its sole discretion. Upon written or
verbal request of the City Administrator (as defined in Section 14), Contractor shall
perform the "Optional Services" as described in the Optional Services Fee Schedule,
attached hereto as Exhibit'C' and incorporated herein by reference.
As a material inducement to the City for entering into this Agreement, Contractor
warrants that all Work to be provided hereunder shall be performed in a competent,
professional and satisfactory manner by an adequate level of staff with the appropriate
level of training. Contractor covenants that it shall follow the highest professional
standards in performing the Work and that all meter reading computer handheld
devices, equipment and supplies used will be of good quality, fit for the purpose
intended. For purposes of this Agreement, the phrase "highest professional standards"
shall mean those standards of practice recognized by one or more first -class firms
performing similar work under similar circumstances.
3. WORKMANSHIP, SUPERVISION, AND EQUIPMENT
3.1 Contractor shall be responsible for actions of its employees while
performing the Services. Contractor shall be responsible for compliance
with all local, state, and federal laws and regulations. Contractor shall
employ or retain, at its sole cost and expense, all professional and
technical personnel necessary to properly perform the Services.
3.2 The Contractor's work force shall include a thoroughly skilled,
experienced, and competent supervisor ( "Contractors Supervisor' or
"Supervisor") who shall be responsible for adherence to the specifications
by directly overseeing the contract operations. All supervisory personnel
must be able to communicate effectively in English (both orally and in
writing). Any order given to supervisory personnel by City shall be
deemed delivered to the Contractor. The Supervisor assigned must be
identified by name to ensure coordination and continuity.
3.3 The City reserves the right to conduct a background investigation of any
employee of Contractor and to require the Contractor to remove any
Meter Reading Service Agreement Page 2
8
employee whose performance is deemed unsatisfactory at the City's sole
discretion.
3.4 All of Contractor's employees ( "Employees ") working in the Service Area
shall be neat in appearance when performing Services under this
Agreement. All Employees shall wear identification badges or patches.
Those Employees working in or adjacent to traffic zones shall wear orange
vests. Employees shall not remove any portion of their uniform while
working within the City. Employees driving the Contractor's vehicles shall
at all times possess and carry a valid Driver's License issued by the State
of California.
3.5 If the City's Administrator determines that any person employed by the
Contractor has failed or refused to carry out the terms of this Agreement,
appears to be incompetent, acts in a disorderly, improper, or unsafe
manner, or shows signs of intoxication or other impairment, instead of
initiating termination for breach, the City Administrator (as defined in
Section 14) may notify Contractor, who shall take immediate remedial
action, which may include removing the employee from the job site. Prior
to returning a removed Employee to work within the City, the Contractor
shall provide in writing the reason for the individual's behavior and the
means used to prevent this behavior from occurring again. In no event
shall Contractor fail to prevent, prohibit, or resolve problems with its
Employees working after receiving notice of same from the City. Violation
of this section by Contractor shall be a material breach of this Agreement
and may result in the City terminating the Agreement or temporarily
suspending services hereunder, with Contractor being liable for any
resulting costs incurred by the City. No action to terminate or suspend
shall be taken by City until after Contractor is provided notice and afforded
an opportunity to respond or refute the allegations, except that the City's
Administrator may immediately suspend services hereunder if he finds
such action reasonably appropriate to protect the public safety, health or
welfare.
3.6 Complaints received by the City regarding the Contractor's performance
will be transmitted to the Contractor's office in writing, by mail or facsimile,
and handled by the Contractors Supervisor. City shall receive a follow -up
response from Contractor within twenty -four (24) hours following
notification of the Contractor of any complaint. A report of the Contractor's
investigation and the corrective action taken shall be made promptly by
the Contractor to the City Administrator. Repeat complaints may be
handled by a joint visit to the site by a City inspector and the Contractor's
Supervisor. Complaints received directly by the Contractor shall be
submitted in writing to the City on the day such complaints are received.
Contractor shall maintain a log of complaints received and corrective
actions implemented which shall be submitted to the City within ten (10)
days following the end of the month.
Meter Reading Service Agreement Page 3
9
3.7 All vehicles and equipment used in conjunction with the Work shall be in
good working order. All vehicles shall bear the identification of the
Contractor.
3.8 The Contractor warrants that it has familiarized itself with the location of all
meters in the Service Area. Contractor is also familiar with all existing
installations, both public and private, in the area where Services shall be
performed under this Agreement. Contractor shall provide adequate
safeguards to prevent damage to existing structures and improvements.
Structures or improvements of any kind, whether public or private, which
are removed, damaged or destroyed in the course of Work shall be
replaced and /or repaired, at the Contractor's expense, to the original
condition and to the satisfaction of the City. Failure to have such
damages repaired in a timely manner will result in the City deducting from
the Contractor's payment the cost to perform the necessary remedial
work.
3.9 Contractor shall be responsible for compliance with all local, state, and
federal laws and regulations applicable to the scope of Work provided
under this Agreement. Contractor shall employ or retain, at its sole cost
and expense, all professional and technical personnel necessary to
properly perform the Services.
3.10 Contractor shall ensure there is no. lapse in Service.
4. LICENSES, FEES, PERMITS AND TAXES
Contractor shall obtain at its sole cost and expense such licenses, permits and
approvals as may be required by law for the performance of the Services required by
this Agreement. Contractor shall have the sole obligation to pay for any fees,
assessments and taxes, plus applicable penalties and interest, which may be imposed
by law and arise from or are necessary for the Contractor's performance of the Services
required by this Agreement, and shall indemnify, defend and hold harmless City against
any such fees, assessments, taxes, penalties or interest levied, assessed or imposed
against City hereunder.
5. COMPLIANCE WITH ALL LAWS
All Services rendered hereunder shall be provided in accordance with all ordinances,
resolutions, statutes, rules and regulations of the City and any Federal, State, or local
governmental agency of competent jurisdiction.
Meter Reading Service Agreement Page 4 10
6. COMPENSATION TO CONTRACTOR
6.1 Annual Services Compensation
City shall pay Contractor an amount not to exceed Seventy Six Thousand Nine
Hundred Fifty Dollars and no /100 ($76,950.00) ( "Annual Services Amount ") to
perform all the monthly meter reading Services contemplated by this Agreement
and described in the Scope of Work, attached hereto as Exhibit 'A', in
accordance with this Section 6 and the Schedule of Billing Rates attached hereto
as Exhibit 'B', subject to the Consumer Price Index adjustment upon the third
anniversary of the Commencement Date, as further defined below in Section 6.5.
6.2 One -time Set -up Fees
In the first year of Service, City shall pay Contractor a one -time set -up fee in
addition to the Annual Service Amount in an amount not to exceed Sixteen
Thousand Eight Hundred Seventy -Five Dollars and no /100 ($16,875.00)
( "Set -up Fees') as total compensation for the one -time set -up to integrate City's
meter routes with Contractor's Equipment to transmit data to City's billing system
( "Set -up ") as contemplated by this Agreement and described in the Scope of
Work, attached hereto as Exhibit 'A', in accordance with this Section 6 and the
Schedule of Billing Rates attached hereto as Exhibit'B'.
6.3 Optional Services
In addition to monthly meter reading services and one -time set up and integration
to the City's billing system, the City may utilize Contractor's Optional Services, as
further described in the Optional Services Fee Schedule, attached hereto as
Exhibit 'C', and incorporated herein by reference, from time to time on as needed
basis. The City authorizes an amount up to and not to exceed Ten Thousand
Dollars and no /100 ($10,000.00) in Optional Services on an annual basis for the
term of the Agreement. Optional Services shall be paid on a time and expense
not -to- exceed basis, in accordance with the provisions of this Section and the
Optional Services fee schedule attached hereto as Exhibit'C'. Optional Services
fees shall not be subject to the Consumer Price Index adjustment.
Upon written or verbal request from the City Administrator (as defined in Sections
14 and 15), Contractor shall provide a letter proposal for Optional Services as
requested by the City. No Optional Services shall be provided until the City
Administrator has provided verbal or written acceptance of the Letter Proposal, in
accordance with the authorization schedule outlined in Section 15.
6.4 Payment Schedule
City shall pay Contractor on a monthly basis for Services rendered. Contractor
shall submit monthly invoices for Services rendered. Invoices shall include an
Meter Reading Service Agreement Page 5 11
itemized description of the Services performed, the name of the Employee(s)
who performed the Services, number of units read, and the dates the Services
were performed. Contractor shall invoice City for the Set -up Fees upon
submission of the first invoice for Services. City shall pay all invoices within thirty
(30) days after approval of the invoice by the City. Payment shall be deemed
made when deposited in the United States mail, first -class postage pre -paid, and
addressed to Contractor as specified in Section entitled "Notices."
6.5 Consumer Price Index
Upon the third anniversary of the Commencement Date (June 9, 2013) and upon
each anniversary of the Commencement Date thereafter, the Annual Service
Amount shall be adjusted in proportion to changes in the Consumer Price Index,
subject to the 2.5% maximum adjustment increase set forth below. Such
adjustment shall be made by multiplying the original Annual Service Amount by a
fraction, the numerator of which is the value of the Consumer Price Index for the
calendar month three (3) months preceding the calendar month for which such
adjustment is to be made and the denominator of which is the value of the
Consumer Price Index for the same calendar month immediately prior to
Commencement Date. For example, if the adjustment is to occur effective June
9, 2013, the index to be used for the numerator is the index for the month of
March 2013 and the index to be used for the denominator is the index for the
month of March preceding the Commencement Date.
The "Consumer Price Index" to be used in such calculation is the Consumer
Price Index, All Urban Consumers (All Items), for the Los Angeles Anaheim
Riverside Metropolitan Area, published by the United States Department of
Labor, Bureau of Labor Statistics. If both an official index and one or more
unofficial indices are published, the official index shall be used. If said Consumer
Price Index is no longer published at the adjustment date, it shall be constructed
by conversion tables included in such new index. In no event, however, shall the
amount payable under this Agreement be reduced below the Annual Service
Amount in effect immediately preceding such adjustment. The maximum
increase to the Annual Service Amount, for any year where an adjustment is
made in proportion to changes in the Consumer Price Index, shall not exceed
2.5% of the Annual Service Amount in effect immediately preceding such
adjustment.
7. INDEPENDENT CONTRACTOR
It is understood that City retains Contractor on an independent Contractor basis and
Contractor is not an agent or employee of City. The manner and means of conducting
the Work are under the control of Contractor, except to the extent they are limited by
statute, rule or regulation and the expressed terms of this Agreement. Nothing in this
Agreement shall be deemed to constitute approval for Contractor or any of Contractor's
employees or agents, to be the agents or employees of City. Contractor shall have the
Meter Reading Service Agreement Page 6 12
responsibility for and control over the means of performing the Work, provided that
Contractor is in compliance with the terms of this Agreement. Anything in this
Agreement that may appear to give City the right to direct Contractor as to the details of
the performance or to exercise a measure of control over Contractor shall mean only
that Contractor shall follow the desires of City with respect to the results of the Services.
8. REPAIR/REPLACEMENT
8.1 The Contractor shall adopt reasonable methods to furnish continuous
protection to City property and equipment to prevent loss or damage, and
shall be responsible for all such damages, to persons or property, except
such loss or damage as may be caused by City's sole negligence or willful
misconduct.
8.2 Contractor shall advise the City's Utilities Department Customer Service
Supervisor of any damage to City equipment or property immediately upon
becoming aware of the damage.
8.3 Contractor shall repair, at its sole cost and expense, any damage to City
equipment or property caused by Contractor or its agents, employees,
representatives or officers.
9. FAMILIARITY WITH WORK AND WORK SITE
By executing this Agreement, Contractor warrants that Contractor: (a) has thoroughly
investigated and considered the Scope of Services to be performed, (b) has carefully
considered how the Services should be performed, and (c) fully understands the
regulatory requirements, facilities, difficulties and restrictions attending performance of
the Services, under this Agreement. Contractor warrants that Contractor has
investigated the meter route map depicted in Exhibit 'A' and is fully acquainted with the
conditions there existing, prior to commencement of Services hereunder.
City and Contractor agree that City has made no representation regarding the order or
condition of any area or location for which Contractor is to provide Services or that the
site or location of Work will be free from defects, apparent or hidden, at the
commencement of, or at any time during the term of this Agreement.
10. HOLD HARMLESS
To the fullest extent permitted by law, Contractor shall indemnify, defend and hold
harmless City, its City Council, boards and commissions, officers, agents and
employees (collectively, the "Indemnified Parties ") from and against any and all claims
(including, without limitation, claims for bodily injury, death or damage to property),
demands, obligations, damages, actions, causes of action, suits, losses, judgments,
fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's
fees, disbursements and court costs) of every kind and nature whatsoever (individually,
Meter Reading Service Agreement ' Page 7 13
a Claim; collectively, "Claims'), which may arise from or in any manner relate (directly or
indirectly) to any Work performed or services provided under this Agreement (including,
without limitation, defects in workmanship and /or materials) or Contractor's presence or
activities conducted on the Project (including the negligent and /or willful acts, errors
and /or omissions of Contractor, its principals, officers, agents, employees, vendors,
suppliers, Contractors, subcontractors, anyone employed directly or indirectly by any of
them or for whose acts they may be liable or any or all of them).
Notwithstanding the foregoing, nothing herein shall be construed to require Contractor
to indemnify the Indemnified Parties from any Claim arising from the sole negligence or
willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be
construed as authorizing any award of attorney's fees in any action on or to enforce the
terms of this Agreement. This indemnity shall apply to all claims and liability regardless
of whether any insurance policies are applicabie. The policy limits do not act as a
limitation upon the amount of indemnification to be provided by the Contractor.
11. INSURANCE
Without limiting Contractors indemnification of City, and prior to commencement of
Work, Contractor shall obtain, provide and maintain at its own expense during the term
of this Agreement, policies of insurance of the type and amounts described below and in
a form satisfactory to City.
A. Proof 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. Insurance certificates and
endorsement 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. City reserves the right to require
complete, certified copies of all required insurance policies, at any time.
Contractor shall procure and maintain for the duration of the contract insurance
against claims for injuries to persons or damages to property, which may arise
from or in connection with the performance of the Work hereunder by Contractor,
his agents, representatives, employees or subcontractors. The cost of such
insurance shall be included in Contractor's bid.
B. Acceptable Insurers. All insurance policies shall be issued by an insurance
company currently authorized by the Insurance Commissioner to transact
business of insurance in the State of California, with an assigned policyholders'
Rating of A- (or higher) and Financial Size Category Class VII (or larger) in
accordance with the latest edition of Best's Key Rating Guide, unless otherwise
approved by the City's Risk Manager.
Meter Reading Service Agreement Page 8
14
C. Coverage Requirements.
i. Workers' Compensation Coverage. Contractor shall maintain Workers'
Compensation Insurance (Statutory Limits) and Employer's Liability Insurance
(with limits of at least One Million Dollars and no /100 ($1,000,000.00)) for
Contractors employees in accordance with the laws of the State of California,
Section 3700 of the Labor Code. In addition, Contractor shall require each
subcontractor to similarly maintain Workers' Compensation Insurance and
Employer's Liability Insurance in accordance with the laws of the State of
California, Section 3700 for all of the subcontractor's employees.
Any notice of cancellation or non - renewal of all Workers' Compensation
policies must be received by City at least thirty (30) calendar days (ten (10)
calendar days written notice of non- payment of premium) prior to such
change.
Contractor shall submit to City, along with the certificate of insurance, a
Waiver of Subrogation endorsement in favor of City, its officers, agents,
employees and volunteers.
ii. General Liability Coverage. Contractor shall maintain commercial general
liability insurance in an amount not less than One Million Dollars and no /100
($1,000,000.00) per occurrence for bodily injury, personal injury, and property
damage, including without limitation, blanket contractual liability.
iii. Automobile Liability Coverage. Contractor shall maintain automobile
insurance covering bodily injury and property damage for all activities of the
Contractor arising out of or in connection with Work to be performed under
this Agreement, including coverage for any owned, hired, non -owned or
rented vehicles, in an amount not less than One Million Dollars and no /100
($1,000,000.00) combined single limit for each accident.
D. Other Insurance Provisions or Requirements
The policies are to contain, or be endorsed to contain, the following provisions:
Waiver of Subrogation. All insurance coverage maintained or procured
pursuant to this agreement shall be endorsed to waive subrogation against
City, its elected or appointed officers, agents, officials, employees and
volunteers or shall specifically allow Contractor or others providing insurance
evidence in compliance with these requirements to waive their right of
recovery prior to a loss. Contractor hereby waives its own right of recovery
against City, and shall require similar written express waivers and insurance
clauses from each of its subcontractors.
ii. Enforcement of Agreement Provisions. Contractor acknowledges and agrees
that any actual or alleged failure on the part of the City to inform Contractor of
Meter Reading Service Agreement Page 9
15
non - compliance with any requirement imposes no additional obligations on
the City nor does it waive any rights hereunder.
iii. Requirements not Limiting. Requirements of specific coverage features or
limits contained in this Section are not intended as a limitation on coverage,
limits or other requirements, or a waiver of any coverage normally provided by
any insurance. Specific reference to a given coverage feature is for purposes
of clarification only as it pertains to a given issue and is not intended by any
party or insured to be all inclusive, or to the exclusion of other coverage, or a
waiver of any type.
iv. Notice of Cancellation. Contractor agrees to oblige its insurance agent or
broker and insurers to provide to City with thirty (30) days notice of
cancellation (except for nonpayment for which ten (10) days notice is
required) or nonrenewal of coverage for each required coverage.
v. Timely Notice of Claims. Contractor shall give City prompt and timely notice
of claims made or suts instituted that arise out of or result from Contractor's
performance under this Agreement.
vi. Additional Insurance. Contractor shall also procure and maintain, at its own
cost and expense, any additional kinds of insurance, which in its own
judgment may be necessary for its proper protection and prosecution of the
Work.
12. PROHIBITION AGAINST TRANSFERS OR ASSIGNMENT
Contractor may not assign any right or obligation of this Agreement or any interest in
this Agreement without the prior written consent of City. Any attempted or purported
assignment without the consent of the City shall be null and void. Contractor
acknowledges that these provisions relative to assignment are commercially reasonable
and that Contractor does possess special skills, abilities, and personnel uniquely suited
to the performance of the Services and any assignment of this Agreement to a third
party, in whole or in part, could jeopardize the satisfactory performance of Services.
Contractor may not employ any Subcontractors unless specifically authorized by City.
The sale, assignment, transfer, or other disposition of any of the issued and outstanding
capital stock of Contractor, or of the interest of any general partner or joint venture
which shall result in changing the control of Contractor, shall be construed as an
assignment of this Agreement.
13. RECORDS
All of Contractor's books and other business records, or such part as may be used in
the performance of this Agreement, shall be subject to inspection and audit by any
authorized City representative during regular business hours.
Meter Reading Service Agreement Page 10
16
Contractor shall keep records and invoices in connection with its Work to be performed
under this Agreement. Contractor shall maintain complete and accurate records with
respect to the costs, including man hours, incurred under this Agreement. All such
records shall be clearly identifiable. Contractor shall allow a representative of City
during normal business hours to examine, audit, and make transcripts or copies of such
records. Contractor shall maintain and allow inspection of all Work, data, documents,
proceedings, and activities related to this Agreement for a period of three (3) years from
the date of final payment under this Agreement.
14. ADMINISTRATION
This Agreement will be administered by the Utilities Department. The Deputy Utilities
Director, Craig A. Justice, or his designee shall be considered the City's Administrator
and shall have the authority to act for the City under this Agreement ( "City
Administrator "). The Administrator or his /her authorized representative shall represent
the City in all matters pertaining to the services to be rendered under this Agreement.
15. INCREASE OR DECREASE IN SCOPE OF SERVICES
15.1 Contractor may be asked to perform additional Services by the City
Administrator. The Administrator may give verbal authorization for
additional Services up to One Thousand Dollars and no /100 ($1,000.00).
The City Administrator shall provide Contractor with written authorization
prior to the performance of any additional Services that exceed One
Thousand Dollars and no /100 ($1,000.00).
15.2 City reserves the right to withdraw certain tasks or units from the Work to
be performed by Contractor pursuant to this Agreement. City shall notify
Contractor in writing of its intent to do so at least thirty (30) days prior to
the effective date of withdrawal of any task or units. In the event tasks or
units are withdrawn from •the Scope of Services, compensation to
Contractor shall be reduced in accordance with the rates as specified in
Exhibit 'B'.
16. WORK DEFICIENCIES AND CORRECTIONS
16.1 The Contractor's performance shall be evaluated on a regular basis.
When problems are identified, the City Administrator will notify Contractor.
If issues are serious or go unresolved, a Notice of Deficiency will be
issued to Contractor in writing. This notice will detail the issues and give a
cure period to resolve them.
16.2 Failure to correct the deficiencies listed in the Notice of Deficiency within
the timeframe specified by the City may, in the City's sole discretion, result
in action being taken by the City, including, but not limited to, (a)
Meter Reading Service Agreement Page 11
17
withholding payment for the subject deficiency until the Work is completed;
(b) correcting the deficiency (using the City's own work force and /or by
contracting out) and deducting any associated costs plus overhead
incurred thereby from the total bi- monthly compensation due the
Contractor; (c) deletion of units from the Scope of Work and reducing the
corresponding compensation for that month; (d) contracting with another
Vendor to perform the Services required for the remainder of the term of
the Agreement and deducting from the Contractor's total compensation
under the Agreement any costs that City pays or becomes obligated to
pay the new Contractor, including expenses City incurs over and above
the monthly billing rate by the Contractor for those units; (e) terminating
the Agreement; and /or (f) taking any other action and exercising any other
legal remedy available to the City under law.
16.3 The City reserves the right to make appropriate deductions in payments
for unsatisfactory performance or failure to perform duties under this
Agreement. Payment deductions shall be based upon the Services and
rates outlined in this Agreement and Exhibits A, B and C attached hereto.
17. DISPUTES PERTAINING TO PAYMENT FOR WORK
Should any dispute arise respecting the value of the Work done, or of any Work omitted,
or of any extra Work which Contractor may be required to do, or respecting any
payment to Contractor during the performance of the Agreement, such dispute shall be
decided by the City Manager and his decision shall be final and binding upon Contractor
and his sureties.
18. LABOR
Contractor shall conform with all applicable provisions of State and Federal law
including, applicable provisions of the Federal Fair Labor Standards Act.
Whenever Contractor has knowledge that any actual or potential labor dispute is
delaying or threatens to delay the timely performance of this Agreement, Contractor
shall immediately give notice to City, and provide all relevant information.
19. NONDISCRIMINATION BY CONTRACTOR
Contractor represents and agrees that it does not, and will not, discriminate against any
subcontractor, contractor, employee or applicant for employment because of race,
religion, color, sex, handicap, national origin, or other basis that is violation of the
federal or state constitution or federal or state law. Contractor's obligation not to
discriminate shall apply, but not be limited to, the following: employment, upgrading,
demotion, transfers, recruitment, recruitment advertising, layoff, termination, rates of
pay or other forms of compensation, and selection for training.
Meter Reading Service Agreement Page 12
18
20. CITY'S RIGHT TO EMPLOY OTHER CONTRACTORS
City reserves the right to employ other contractors in connection with the Work
contemplated under this Agreement..
21. CONFLICTS OF INTEREST
The Contractor or its employees may be subject to the provisions of the California
Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose
financial interest that may foreseeable be materially affected by the Work performed
under this Agreement, and (2) prohibits such persons from making, or participating in
making, decisions that will foreseeable financially affect such interest. The Contractor
will provide a complete disclosure form noting the above. Contractor will comply with
the Act and relevant City Rules /Resolutions.
If subject to the Act, Contractor shall conform to all requirements of the Act. Failure to
do so constitutes a material breach and is grounds for termination of this Agreement by
the City. The Contractor shall indemnify and hold harmless the City for any claims for
damages resulting from the Contractors violation of this Section.
Contractor maintains and warrants that it has not employed nor retained any company
or person, other than a bona fide Employee working solely for Contractor, to solicit or
secure this Agreement. Further, Contractor warrants that it has not paid nor has it
agreed to pay any company or person, other than a bona fide Employee working solely
for Contractor, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Agreement.
For the term of this Agreement, no member, officer or employee of City, during the term
of his or her service with City, shall have any direct interest in this Agreement, or obtain
any present or anticipated material benefit arising therefrom.
22. NOTICES
All notices, demands, requests or approvals to be given under this Agreement must be
given in writing and will be deemed served when delivered personally or on the second
business day after the deposit thereof in the United States mail, postage prepaid,
registered or certified, addressed as hereinafter provided.
Mr. Craig A. Justice, Deputy Utilities Director
Utilities Department
City of Newport Beach
3300 Newport Blvd.
PO Box 1768
Newport Beach, CA 92658 -8915
Ph: (949) 644 -3011
Fax: (949) 646 -5204
E -mail: ciustice(d.newportbeachca.gov
Meter Reading Service Agreement Page 13
19
All notices, demands, requests or approvals from City to Contractor shall be addressed
to Contractor at:
Alexander Contract Services, Inc.
Mr. Mark Hibshman, V.P. Operations
8655 Morro Road, Suite D
Atascadero, CA 93422
Ph: (805) 461 -3457
Fax: (805) 461 -1263
E -mail: markhaalexander- co.com
23. TERMINATION /DEFAULT
23.1 In the event Contractor fails or refuses to timely perform any of the
provisions of this Agreement in the manner required or if Contractor
violates any provisions of this Agreement, Contractor shall be deemed in
default. If such default is not cured within a period of two (2) working
days, or if more than two (2) working days are reasonably required to cure
the default and Contractor fails to give adequate assurance of due
performance within two (2) working days after Contractor receives written
notice of default from City, City may terminate the Agreement forthwith by
giving written notice. City may, in addition to the other remedies provided
in this or authorized by law, terminate this Agreement by giving written
notice of termination.
23.2 This Agreement may be terminated without cause by the City upon thirty
(30) days written notice. Upon termination, City shall pay to Contractor
that portion of compensation specified in the Agreement that is earned
and unpaid prior to the effective date of termination. The Contractor may
only terminate the Agreement in the event of nonpayment by the City.
23.3 In addition to, or in lieu of, remedies provided in this Agreement or
pursuant to law, City shall have the right to withhold all or a portion of
Contractor's compensation for Services if, in the judgment of the City
Manager, the level of Service falls below standards and /or Contractor fails
to satisfactorily perform the Services. City shall have the right to retain
funds withheld until the City Manager determines that Services are
performed as well and as frequently as required by this Agreement.
24. NO ATTORNEY'S FEES
If any legal action is necessary to enforce any provision of this Agreement or for
damages by reason for an alleged breach of any provisions of this Agreement, the
parties agree that attorneys' fees shall not be recoverable by the prevailing party.
Meter Reading Service Agreement Page 14
20
25. WAIVER
A waiver by either party of any breach of any term, covenant or condition contained
herein shall not be deemed to be a waiver of any subsequent breach of the same or any
other term, covenant or condition contained herein whether of the same or a different
character.
26. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or nature
whatsoever between the parties and all preliminary negotiations and agreements of
whatsoever kind or nature are merged in this Agreement. No verbal agreement or
implied covenant shall be held to vary the provisions hereon.
27. AMENDMENTS
This Agreement may be modified or amended only by a written document executed by
both Contractor and City and approved as to form by the City Attorney.
28. SEVERABILITY
If any term or portion of this Agreement is held to be invalid, illegal, or otherwise
unenforceable by a court of competent jurisdiction, the remaining provisions of this
Agreement shall continue in full force and effect.
29. CONTROLLING LAW AND VENUE
Except for payment disputes governed by Section 17, the laws of the State of California
shall govern this Agreement and all matters relating to it and any action brought relating
to this Agreement shall be adjudicated in a court of competent jurisdiction in the County
of Orange.
30. INTERPRETATION
The terms of this Agreement shall be construed in accordance with the meaning of the
language used and shall not be construed for or against either party by reason of the
authorship of the Agreement or any other rule of construction which might otherwise
apply.
31. COUNTERPARTS
This Agreement may be signed in counterparts, each of which shall constitute an
original.
[SIGNATURES ON NEXT PAGE]
Meter Reading Service Agreement Page 15
21
IN WITNESS WHEREOF, the patties have caused this Agreement to be
executed on the day and year first written above.
APPROVED AS TO FORM:
OFFICE OFT E CITY ATTORNEY
By: �
L onie Mulvihill, ��
Acting City Attorney op
ATTEST:
Leilani Brown,
City Clerk
CITY OF NEWPORT BEACH,
A California Municipal Corporation
Keith D. Curry,
Mayor
CONTRACTOR: ALEXANDER
CONTRACT SERVICES, INC.
James H. Beck
Owner /President
By:
Leslie Traveres
Chief Financial Officer
Attachments: Exhibit 'A' — Scope of Work
Exhibit 'B' — Meter Reading Service Fee Schedule
Exhibit 'C' — Optional Services
A09 -00334
[END OF SIGNATURES]
Meter Reading Service Agreement Page 16
22
EXHIBIT'A'
SCOPE OF WORK
SCOPE OF WORK
Throughout the term of this Agreement, the parties shall have the following rights and
responsibilities:
A. Contractor Shall
1. Perform start-up activities required to provide monthly meter reading services for
up to 13,500 customer accounts, within the City of Newport Beach.
2. Initial start -up meter reading activities commencing in June 2010 and continuing
until full implementation occurs includes, but is not limited to, staff training, route
efficiency confirmation, integration of the firms and City's meter reading activities,
integration of meter reading information for water billing and development of
service reports.
3. Read, or make reasonable efforts to read, all located and accessible water
meters within the service area of the City.
4. Provide and maintain for the water meters all apparatus necessary to perform the
meter reading services.
5. Have the capacity, or ability to obtain the capacity, to expand meter reading
services should the City determine this service is needed. Expansion of service
during the contract term shall be at the sole discretion of the City and will be
negotiated with the Contractor and subject to an amendment of the Agreement.
6. Deliver meter read. information via a personalized web page designed by the
contractor for the City and interface to process data to City's billing system.
7. As required operationally, re- sequence meter routes as needed in coordination
with the City's Utility Department Customer Service Supervisor. Meter routes in
the process of being re- sequenced may be read outside the normal route
schedule, provided that the City approves the route schedule change within a
week in advance of the change.
8. Provide meter reading services for designated meter routes. There shall be no
change in the number or configuration of the water meter reading routes without
the prior consent of the City and Contractor. Each water meter route must be
read in a sequence and timely fashion to support the City bi- monthly utility billing.
Meter Reading Service Agreement Exhibit'A' -Page 1
23
9. Ensure that all meter reading equipment, software and files used are compatible
with City operating systems.
10.Notify the City the same day of any hazardous conditions requiring immediate
attention (broken valve boxes, missing covers, trip hazards, potential water leaks,
construction issues etc.).
11. Report to the City damaged meters, meter boxes and lids, leaking meters,
potential water leaks or any repairs that are needed to water service meter
connections.
12. At all times, employ only competent and trained water meter readers. Readers
shall be well trained and experienced in the tasks and duties to be performed,
including work safety. The Contractor shall continuously oversee the activities of
such readers.
13. Contractor represents that the error rate for each meter reading monthly cycle
will not exceed 2% of the total number of manual meters read during the cycle.
Upon notice from the City, Contractor will take all reasonable steps to correct the
error and report the measures taken to the City in a timely manner. The City may
seek reimbursement for time and materials spent correcting contractor misreads
above 2 %.
14. Contractor will provide the City is listing of available optional customer service
duties and fee schedule that the City may utilize on an on -call basis.
15. All employees to be uniformed with the Contractor company logo and
identification tags. All vehicles shall be well maintained (clean) and marked
appropriately to identify the service provided.
B. City Shall:
1. Work diligently with the Contractor during the initial set-up phase and throughout
the term of the contract to implement a successful water meter reading program.
2. The City shall continue to read all Automated Meter Registers ( "AMRs ") within
the City service area.
3. Grants to Contractor the exclusive right to read all water meters located in the
Contractor designated areas served by the City, whether now existing or
hereafter installed during the term of the contract.
4. Provide the Contractor reasonable assistance with the training to meter readers
to perform the services under the contract, including but not limited to, allowing
the Contractor meter readers to accompany City meter readers to lean the routes
and locations of meters.
Meter Reading Service Agreement Exhibit'A' -Page 2
24
5. Provide the Contractor with any changes that occur on City meters, including but
not limited to, water meter additions, changes or substitutes and changes in
location and instruction codes via personalized webpage or any other agreed to
medium.
6. Maintain all meters and enclosures in a reasonable repair and condition at all
times in order for the Contractor to provide water meter reading services without
undue hardship or danger. Provided that the Contractor shall be responsible and
liable for any meters or meter enclosures that become defective, faulty, or broken
or damaged as a result of negligence, carelessness or intentional acts of
Contractor or Employees.
7. Provide Contractor access to all areas in the City needed for the Contractor to
perform services under contract.
Meter Reading Service Agreement Exhibit'A' -Page 3
25
City of Newport Beach Water Meter Route Map:
0,
�Ftl,
,r l m
6r..- 0. i�� f:
pir
Attachment
i!P
z-T VY
ld-W,
SO,
- I
Meter Reading Service Agreement Exhibit 'A' -Page 0
26
EXHIBIT `B'
SCHEDULE OF BILLING RATES
�.LXA f D .
iSmfar
1 `
Meter lZeadizlg Service Fee Schedule
DexctS� >i:_a _ 2AWnt X Unit PriduR Ri- btuulhU•�'ulul Nmyuani.:
Nletet•1ZCitJiug 13,500 9095 SIi.,$2).00 M- Moor)Jy
5-0c Prcfix'lolF'= Yun:nn Wpk wjlt:iu:"Tho Cty el,
MwplrtOrnch
c-kar Nmi _ Qgtmfity UMttriciu One'[]me Tmsl Frequency
SMIP11ce 13,5(R1 $1 -25 Si6,87i00 0>,e75uu:
?cxwke nyvne! n, set-up wau rwLm in Ak,wdr ti]sMn and HnuI6.1d , intepAin. ct pruFr =ing ie
K,wport rka�JLWllip,p e)NUC. .411 umpWtTrF �ACOaJII 9X LP ki hevjn \frx Rmtli. g. 0.,tnmia d V,- 'I.Fzc
-PnVYF Mi\cwpoc lltcat vnL ly;,=hnitiy
Meter Reading Service Agreement Exhibit 'B' -Page 1
27
EXHIBIT `C'
OPTIONAL SERVICES FEE SCHEDULE
- i l O r L
�a
INC.
i
Optional Senlices lice. Sebcdale.
lleseripdou Quantity Unit Priring Monthly Totnl tYegrtenn-
Cuxtumrr Scry ice 300 $6.00 $1500.00 Munthly
Rupeuant, h.9Wr wort -ort;9s to ttfmd- ttatg dom Inuga s. wn ... Inca n,N. k:A incesliprvnimi. ad 9mck mek,
IIIVCRt.If.I tl Vlla
Cnslumu-S9:nicc Jinaiq Zkrmin 54100 S90.00 Monthly
pvtl s afu.re eape_- tstist a:c on aa'As enlr,tuzy W-O... rule`
GPS Counlinutcs 26.6W &3.95 $111,670 One Time
Tle A:cdi.el 1.1 QI'a <uoMin.ateS [m Inetp4 ¢ 91y aha als`CIIiUt dl9u_1 uhUn Newt... Nash v'ilh Yuh -nacr
k)eallay did dull n�irly Ih eve raoMinates tmdl'ro nsc intlttCi:�'s CIS Rle.ln:e:
9pecllic 9tuttir9 2.616011 SM5 %105,070.00 Oue Tkue
�ia2ilu, &ni Cf:l.tret Im S nl ly is a ik4dlyd fltuiY o' eatSY uwta :vit»t iln Ling of N157mt Seal, to awrna d�
OabiEn ricnaamn_.xXr 'Co. i's ritimw- Io:dddrm nstan.ondYion aid potu:tii
d<an�:l c¢Ya-0;•d4aia�
o-ata rcua ation
fA �_lq> Gl 'AY °'�IVS Y�ii Bld ;: i7P3�.n A11 .y 7
S � �+�Flly�p�tl 1 suR
Meter Reading Service Agreement Exhibit `C' -Page 1
M
AMENDMENT NO. ONE TO
SERVICE AGREEMENT WITH ALEXANDER CONTRACT SERVICES, INC.
FOR WATER METER READING SERVICES
THIS AMENDEMENT NO. ONE TO SERVICE AGREEMENT ( "Amendment No.
One"), is entered into as of this day of October, 2011, by and between the
CITY OF NEWPORT BEACH, a Califomia Municipal corporation ( "City "), and
ALEXANDER CONTRACT SERVICES, INC., a California corporation whose address is
8655 Morro Road, Suite D, Atascadero, California, 93422 ( "Contractor"), and is made
with reference to the following:
RECITALS:
A. On June 9, 2010, City and Contractor entered into an Agreement for water meter
reading services for up to 13,500 designated water meters in City route areas
( "Service Area ") for the City's bi- monthly water billing ("Agreement").
B. The City desires to enter this Amendment No. One to reflect an expanded Service
Area to include the remainder of the water meters in City route areas for up to
27,000 designated water meters.
C. City desires to enter this Amendment No. One to increase the Scope of Services,
increase the annual compensation and update the City's Project Administrator
information.
D. City and Consultant mutually desire to amend the agreement, as provided below
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. SCOPE OF SERVICES
Section 2 of the Agreement shall be supplemented to include the replacement of Exhibit
A to reflect the expansion of the Service Area at the frequency and locations as
described in Exhibit A, attached hereto and incorporated herein by reference.
2. COMPENSATION
A. Section 6.1 of the Agreement shall be amended hereby and. the following
is substituted in its entirety:
6.1 Annual Services Compensation
City shall pay to Contractor an amount not to exceed One Hundred Fifty Three
Thousand Nine Hundred and no /100 ($153,900.00) ( "Annual Services Amount") to
perform all the monthly reading Services contemplated by this Agreement and
29
described in the Scope of Work, attached hereto as Exhibit A, In accordance with this
Section 6 and the Schedule of Billing Rates attached hereto as Exhibit B, subject to the
Consumer Price Index adjustment upon the third anniversary of the Commencement
Date, as further defined below in Section 6.5.
B. Section 6.3 of the Agreement shall be supplemented to include the
addition of optional Services and schedule of billing rates as described in Exhibit C,
attached hereto and incorporated herein by reference.
3. ADMINISTRATION
Section 14 of the Agreement shall be amended hereby and the following is substituted
in its entirety: This Agreement will be administered by the Municipal Operations
Department. The Water Customer Service Supervisor, or his/her designee shall be
the Project Administrator and shall have the authority to act for City under this
Agreement. The Project Administrator or his authorized representative shall represent
City In all matters pertaining to the Services to be rendered pursuant to this Agreement.
4. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants set forth
in Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Alexander Contract Services, Inc. Page 2
30
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the dates written below.
APPROVED AS TO FORM: CITY OF NEWPORT BEACH,
OFFICE F THE CITY ATTORNEY A California municipal corporation
Date: Date:
B . By:
Leonie Mulvihill Michael F. Henn
Assistant City Attorney Mayor
ATTEST: CONSULTANT: Alexander Contract
Date: Services, Inc., a California Corporation
Date:
By: By:
Leilani I. Brown James H. Beck
City Clerk Owner /President
Date:
Leslie Traveres
Chief Financial Officer
[END OF SIGNATURES]
Attachments: Exhibit A — Supplemental Scope of Work/ Schedule
Exhibit B — Schedule of Billing Rates
Exhibit C - Optional Services Fee Schedule
Alexander Contract Services, Inc. Page 3
31
EXHIBIT A
EXHIBIT A
SCOPE OF VVORK
SCOPE OF WORK
Throughout the term of this Agreement, the parties shall have the following rights and
responsibilities:
A. Contractor Shall !
1. Provide city -wide monthly or bi- monthly meter reading services for up to 27,000
meters in the City of Newport Beach.
2. Meter reading activities commencing in March/April 2010 and continuing until full
implementation occurs includes, but is not limited to, staff training, route
efficiency confirmation, integration of the firms and City s meter reading activities,
integration of meter reading information for water billing and development of
service reports.
3, Read, or make reasonable efforts to read all located and accessible water meters
within the service area of the City. Contractor acknowledges that the service area
of the City is subject to change.
4. Provide and maintain for the water meters all apparatus necessary to perform the
meter reading services.
Deliver meter read information via a personalized web page designed by the
contractor for the City or any other agreed upon medium to the City.
6. As required operationally, re- sequence meter routes as needed in coordination
with the Utilities Division Customer Service supervisor. To maintain a monthly
billing cycle, meter routes in the process of being re- sequenced may be read
outside the normal route schedule, provided that the contractor notifies the City.in
advance.
Provide meter reading services for all designated route areas. There shall be no
change in the number or configuration of the water meter reading routes without
the prior consent of the City and Contractor. Each water meter route must be j
read in a sequence and all reading must be completed by the end of the first full
week of every month to support the City's monthly utility billing. No changes may
be made to this schedule without the permission of the Utilities Division
Customer Service supervisor.
A -11 Page
32
EXHIBIT A
i
8. Ensure that all meter reading equipment, software and files used are compatible
with City operating systems.
9. Notify the City the same day of any hazardous conditions requiring immediate
attention (broken valve boxes, missing covers, trip hazards, potential water leaks,
construction issues etc.).
10.Report to the City damaged meters, meter boxes and lids, leaking meters,
potential water leaks or any repairs that are needed to water service meter
connections.
11. At all times, employ only competent and training water meter readers. Readers
shall be well trained and experienced in the tasks and duties to be performed,
including work safety. The Contractor shall continuously oversee the activities :.of
such readers. At the City's request and based upon reasonable evidence,
Contractor shall Immediately remove and replace any incompetent, carless Ito
negligent reader.
12.Contractor represents that the error rate for each meter reading monthly cycle
will not exceed 1% of the total number of manual meters read during the cycle.
Upon notice form the City, Contractor will take all reasonable steps to correct the
error and report the measures taken to the City in a timely manner. The City may
seek reimbursement for time and materials spent correcting contractor misreads
above 1 %.
13. Contractor will provide the City it's listing of available optional customer service
duties and fee schedule that the City may utilize on an on -call basis.
14. All employees to be uniformed with the Contractor company logo and
Identification tags. All vehicles shall be well maintained (clean) and marked
appropriately to identify the service provided.
B. City Shalt:
1. Work diligently with the Contractor during the initial set -up phase and throughout
the term of the contract to implement a successful water meter reading program.
2. The City shall continue to read all AMRs within the City service area.
3. Grants to Contractor the exclusive right to read all water meters located in the
Contractor designated areas served by the City, whether now existing or
hereafter installed during the term of the contract
i
A -21 Page
33
EXHIBIT A
4. Provide the Contractor reasonable assistance with the training to meter readers
to perform the services under the contract, including but not limited to, allowing
the Contractor meter readers to accompany City meter readers to learn the
routes and locations of meters.
Provide the Contractor with any changes that occur on City meters, including but
not limited to, water meter additions, changes or substitutes and changes in
location and instruction codes via personalized webpage or any other agreed to
medium.
6. Maintain all meters and enclosures in a reasonable repair and condition at all
times in order for the Contractor to provide water meter reading services withdut
undue hardship or danger, provided that the Contractor shall be responsible and
liable for any meters or meter enclosures that become defective, faulty, or broken
or damaged as a result of negligence, carelessness or intentional acts of
Contractor or employees.
Provide Contractor access to all areas in the City needed for the Contractor to
perform services under contract.
A -31 Page
34
EXHIBIT A
M �c
0 `� -�•s t� ♦ Jlr
Pf
y.! c}ju. I'M
ti
051 � ro �WN�� . � ;1 i A .♦
- rl•
A- 4IPage
35
EXHIBIT B
EXHIBIT B
,LLX AND r_p,,�S
�'`! Coasca INC.
:en:cn
To George 'Murdoch
From Mark Htbshman
Cc James Beek. Casey Pads. Chris Mcima
Subj Reading Proposal for City of Newport Beach
911412011
The Current Meter Reading, Contract has Alexander, Contract Services reading one Cycle per month at a
cost of S.95 per meter, Each cycle is read 3 times a year
Current Meter Readin.a Service Fee Schedule
Annual Total 78,147 5095 574,23965 Annual
Proposed Addilionid Meter Reading Service Pee Schedule
Description
Quantity
Unit Pricing_
Monthly Total
Freq
(Cycle l)
6015
£095
55.714.25
Mai
(Cycle 2)
6213
£095
56:772.35
Mo:
(Cycle 3)
7928
5055
£7,53160
Monthly
(Cycle 4)
5293
5095
£5.0222 "35
Monthly
Annual Total 78,147 5095 574,23965 Annual
Proposed Addilionid Meter Reading Service Pee Schedule
Description
Quantity
Unit Pricing
Monthly Total
Frequency
Meter Reading (Cycle 1)
6015
$0.95
55,714 25
Monthly
(Cycle2)
6813
S0.95
$6,472.35
Monthly
(Cycle3)
7928
$095
57.53160
Monthly
(Cycle4)
5293
5095
$5.02835
Monthly
Annual Total
7F, „147
50.95
$74,23965
Annual
Proposed "rotal Meter Reading Service Fee Schedule
Description Quantity Unit Pricing Monthly Total Frequency
A•Jater Reading (Cycle 1 & 2) 12.828 50.95 812.186.60 Monthly
(Cycle 3 .£ 4) 13,221 SO 95 $12.559.95 Monthly
Annual Total 156,294 $0.95 $148;779.30 'Annual
Tltis proposal for additional services will add an additional .$74,239.65 amtually to the existing
contract We also are waiving any additional set -up charges for dicsc services.
861.5 Vert e. nod. :;.its D, At 4rxr der, GA 93422 Phone 803- 461.345E Pox 803.961.1263 taw- alenanderr cam
B- 1IPage
36
EXHIBIT C
EXHIBIT C
1_CXAND1=R,,:S
INC.
arrre,
Optional Services Fee Schedule
Description Quantity Unit Pricing Monthly Total Frequency
Customer Service TBD 54.00 -S5.00 TBD Monthly
Represents basic work - orders to reread, hang doorhangers, turn on, turn off, leak investigations and stuck
meter investigations
Customer Service Hourly 2 hr Min 545.00 590.00 Monthly
Represents above aspect: that we on an "As Call` basis or "Onc Time" occurrence
Certified Reads 26,100 S-75 -51.00 TBD Monthly
The collection of dstawith Picture:, CiPS Coer6riates. Time and Date starnpmg with ID Confirmation For
meters that hxvc cxcephon-.
Specific Studies 26,100 5115 -$395 TBD One Time
Liability aad Conservation Study is a detailed study of each meter within The City a[ Newport Beach to
access the liability the meter may compose on its ciduns In addition. system condition and potential
element directly effecting water conscrvanon.
Reading Services Prefmmedwdl be as per Scope of Workwitlnn "The City urNewpor, Beach Contract
ldcrk Mbshmmt
ae.- larade =ende:.ro to.
8655 Morro: Rd. Suite D, Ate meal e.4. C A 93422 Phen, 80.5-461,.1436 1.. 90S.461.1261 w . w oIe�eod eoce cem
C- 1IPage
37