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HomeMy WebLinkAboutItem 06.h' a !v e wmmmow lvmlmnmr �� Date: 27 June 2013 Item No. APPROVAL OF A CONTACT ADDENDUM WITH RMR SERVICES, LLC EXTENDING THE CONTRACT FOR WATER METER READING SERVICES FOR 2013 - 2014 Proposed Action Staff recommends adoption of the following motion: Move to approve the contract addendum with RMR Services LLC extending_ contract meter reading services for 2013 - 2014. Passage of this motion allows the City to continue the current practice of using contract meter readers to read residential water meters. Overview In 2001, the department solicited proposals from two local companies to read meters for the City. At that time, RMR Services, LLC returned the lowest cost proposal. The initial contract term ran from 1 January 2002 to 31 December 2003. In 2004, 2005, 2006, 2010, and 2012 the contract was extended by mutual agreement of both parties, to include a 2.5 percent cost increase in 2005. This contract addendum represents the sixth extension to the initial contract with RMR Services, LLC. RMR Services has been reading residential water meters for the City since 1998. Currently, there are approximately 17,158 residential water meters divided into two meter reading cycles. RMR Services, LLC does not propose any increase to the current per meter reading cost of $.451 for 2013 - 2014. Staff has reviewed the contract addendum and recommends its approval. Primary Issues to Consider • Is contract meter reading cost effective? The City is not staffed to read water meters and alternatives require a significant investment in a meter change out program. Based on alternatives, contract meter reading remains cost effective. Supporting Information • A copy of the propos. Christopher Public Works Director contract addendum is attached. Financial Impact: $33,884.00 Budgeted: Yes Source: 7608 Meter Reading Related Documents (CIP, ERP, etc.): Notes: CONTRACT ADDENDUM CONTRACT ADDENDUM made this 1St day of July 2013, by and between the CITY OF LAKEVILLE, a Minnesota municipal corporation ( "City "), and the undersigned provider of services RMR SERVICES, LLC ( "Provider "). Recitals The parties have previously entered into a contract dated December 2001 (the "initial contract ") for meter reading services. NOW, THEREFORE, IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. INCORPORATION BY REFERENCE. Except as modified herein, the terms of the initial contract are incorporated herein. 2. TERM. The term of this agreement shall begin on July 2, 2013, and end on July 1, 2014, both dates inclusive, unless sooner terminated as otherwise provided. 3. COMPENSATION. The City agrees to pay the Provider $.451 per meter read under this agreement. IN WITNESS WHEREOF, the parties have entered into this Agreement on the day and year first above written. CITY OF LAKEVILLE Matt Little, Mayor AND Charlene Friedges, Clerk PROVIDER: RMR SERVICES, LLC Its