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HomeMy WebLinkAboutItem 06.fDate: 10 May 2010 MR Item No. APPROVAL OF CONTRACT ADDENDUM WITH RMR SERVICES, LLC EXTENDING CONTRACT WATER METER READING SERVICES FOR 2010 - 2011 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 2010-2011. Passage of this motion allows the Finance Department 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, and 2006 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 fourth 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 aproximately16,581 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 2010 - 2011. Staff has reviewed the contract addendum and recommends its approval. Primary Issues to Consider The continuation of contract meter reading services. Review of alternative methods for meter reading and current staffing bear out that contract meter reading is cost effective. Supporting Information • A copy he propossed�contract addendum is attached. Christopheee ' Operatio d Maintenance Director Financial Impact: $32,433 Related Documents (CIP, ERP, etc.): Notes: Budgeted: Yes Source: 7608 Meter Reading CONTRACT ADDENDUM CONTRACT ADDENDUM made this 17th day of May 2010, 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 May 18, 2010, and end on December 31, 2011, 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 AND Holly Dahl, Mayor Charlene Friedges, Clerk PROVIDER: RMR SE VIC LC BY: I�rc'S:dvwk