Explanation
BACKGROUND: In 1988 the Division of Water contracted with Itron, Incorporated for a data capturing system against contract number CT-09367. This system is used to read our customers' water meters, in order for them to be billed. Each successive year we have paid a maintenance agreement and would like to continue doing so. Our current maintenance agreement expires March 31, 2005 and the Division would like to modify the original contract in order to renew this agreement for another year. Because Itron, Incorporated is the only provider of this system, and any maintenance performed by another vendor would void the warranty, the Division of Water would like to modify CT-09367, based on sole source provisions of the Columbus City Code. The Contract Compliance Number for Itron, Incorporated is 91-1011792. They do not have MBE/FBE status. Because this system is used for billing purposes, it is requested that this Ordinance be handled in an emergency manner in order to pay as soon as possible in order to prevent interrupted billing cycles.
1. The amount of this year's payment is $20,589.48. The original amount of the contract (and upgrade in 1995) total $274,576.00. The amounts of modifications from 1988 through 2004 total $309,271.99. We expect to modify this contract another five years, amounting to around $138,272.00.
2. The need for annual maintenance was foreseen at the time of the original contract. We budget funds in anticipation of this expense every year.
3. It is not in the City's best interest to bid out this maintenance as Itron, Incorporated was the sole provider of this system, and they have provided the annual maintenance since its inception.
4. The cost of the maintenance agreement is contained in a clause of the agreement that pertains to the prevailing rates at the time of the current extension.
FISCAL IMPACT: The Division of Water has allocated approximately $21,500.00 in the 2005 Budget for this maintenance agreement.
$ 19,062.84 was expended for this maintenance agreement in 2004.
$ 17,984.52 was expended for this maintenance agreement in 2003.
Title
To authorize the Finance Director to increase the contract with Itron, Incorporated, for the continued maintenance of software and hardware of the data capturing system, for the Division of Water, in accordance with the sole source provisions of the Columbus City Code, to authorize the expenditure of $20,589.48 from Water Systems Operating Fund, and to declare an emergency. ($20,589.48) (AMENDED BY ORD. 1019-2005 PASSED 6/13/2005)
Body
WHEREAS, the Purchasing Office established original Contract CT-09367 with Itron, Incorporated for a data capturing system and its maintenance, and
WHEREAS, this system is used by the Division of Water to read water meters which allows us to bill customers and,
WHEREAS, Itron, Incorporated is the only provider of this system, and any maintenance performed by another vendor would void the warranty, and
WHEREAS, the current maintenance agreement with Itron, Incorporated expires March 31, 2005 and the Division would like to modify the original in order to renew this agreement for another year, and
WHEREAS, an emergency exists in the usual daily operation of the Division of Water, Department of Public Utilities, in that it is immediately necessary to authorize the Finance Director to increase the contract with Itron, Incorporated, for the continued maintenance of software and hardware of the data capturing system, for the Meter Reading activity, in an emergency manner in order to pay as soon as possible in order to prevent interrupted billing cycles, for the immediate preservation of public health, peace, property and safety; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Finance Director be and he is hereby authorized to increase contract CT-09367 with Itron, Incorporated in order to cover maintenance on the hardware and software of the data capturing system, as provided in the above mentioned contract, in accordance with the sole source provisions of Section 329.07(e) of the Columbus City Code, for the Division of Water, Department of Public Utilities.
Section 2. That the expenditure of $20,589.48 or so much thereof as may be necessary, be and is hereby authorized from Water Works Fund 600, Department 60-09, OCA Code 601898, Object Level One 03, Object Level Three 3372, to pay the cost thereof.
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.