HomeMy WebLinkAboutItem 06.i
Date: April 17, 2017 Item No.
APPROVAL OF A CONTACT AMENDMENT WITH RMR SERVICES, LLC EXTENDING
THE CONTRACT FOR WATER METER READING SERVICES FOR 2017
Proposed Action
Staff recommends adoption of the following motion: Move to approve the contract
amendment with RMR Services, LLC extending contract meter reading services for 2017.
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, 2012, 2013,
2014, and 2015 the contract was extended by mutual agreement of both parties. There has
not been a price increase since 2005.
This contract amendment represents the ninth 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 19,287 residential water meters of which RMR Services
reads about 11,000. The Utilities Division reads the remainder using a remote meter reading
system.
RMR Services, LLC does not propose any increase to the current per meter reading cost of
$.451 for 2017.
Staff has reviewed the contract amendment and recommends its approval.
Primary Issues to Consider
• Is contract meter reading cost effective? Yes, the City is not staffed to read the remaining
11,000 water meters. As the Utilities Division changeover to remotely read water meters
progresses, the City will gradually take over meter reading for the entire system. Until that
changeover is complete contract meter reading remains cost effective.
Supporting Information
• A copy of the proposed contract amendment is attached.
Financial Impact: $23,452.00 Budgeted: Yes Source: 7608.6280
Related Documents (CIP, ERP, etc.): 2017 Adopted Budget
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Neil Normandin, Public Works and Facilities Coordinator
CONTRACT AMENDMENT
CONTRACT AMENDMENT made this 17th day of April 2017, by and between the
CITY OF LAKEVILLE, a Minnesota municipal corporation (“City”), and the undersigned
provider of services RMR SERVICES, LLC, a Minnesota limited company (“RMR”).
Recitals
A. The parties have previously entered into a contract for meter reading services
dated December 22, 1999, as previously amended to extend the term (the “Contract”).
B. The parties desire to extend the termination date of the Contract and
compensation.
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 Contract
continue in full force and effect.
2. Amendment to Paragraph B, Compensation, of the Contract. Paragraph B1 of the
Contract is amended to read as follows:
1. The City agrees to pay RMR $.451 per meter read under this agreement.
RMR shall submit to the City a monthly billing statement based on
reported meter reads supplied to RMR by the City.
3. Amendment to Paragraph C.1., Term and Removal, of the Contract. Paragraph
C.1. of the Contract is amended to extend the termination date of the Contract to
April 30, 2018, inclusive.
IN WITNESS WHEREOF, the parties have entered into this Agreement on the day and
year first above written.
CITY OF LAKEVILLE
BY: _____________________________
Douglas P. Anderson, Mayor
AND: ____________________________
Charlene Friedges, Clerk
RMR SERVICES, LLC
BY: _____________________________
Its: