Explanation
BACKGROUND: This legislation authorizes the Director of Public Utilities to modify an existing contract with Bermex, Inc. to add additional funding in the amount of $2,200,000.00 for Water Meter Reading Services for the Division of Water, recurring monthly and quarterly for predetermined routes within the City of Columbus and contract communities. Services will include data collection through manual reads and radio reads using the Department of Public Utilities’ equipment.
In 2023, the City started a Sensus-based AMI implementation which is currently scheduled to continue into 2027. Once changed to the Sensus system, the meter will no longer need to be read manually and will drop off of the meter reading route. The City is anticipating approximately 10,000 water meters per month will be converted starting near the end of 2024 and continue until the completion of the project. The City is anticipating approximately 2,000 electric meters per month will be converted starting in Spring 2025. As meters are changed to the AMI system, meter reading routes will be consolidated as needed by DPU. The intent of this contract is to bridge the gap between the start of the EMP implementation and its conclusion, where it is expected that meters will be able to be read remotely.
While the AMI project may come to a completion in 2027, it is anticipated that the meter reading services outlined in the RFP may continue until 2030.
PROCUREMENT: The Department of Public Utilities solicited competitive proposals through Vendor Services and Bonfire from September 12th, 2024 to October 11th, 2024 for the Customer Self-Service Portal Solution and Implementation in accordance with the relevant provisions of Chapter 329 of City Code, RFQ028673. Three (3) bids were received by Bermex, Inc., Texas Meter and Device Co., and Olameter Coporation. They were all deemed responsive and were evaluated on November 5th, 2024. The evaluation committee determined that Bermex Inc. submitted the strongest proposal because of the relevant experience of its project team, its understanding of the Department’s scope of work, its understanding of the requirements of the water meter reading services.
The term of the contract will be for one-year with anticipation that the meter reading services may be needed beyond the completion date. For each year of the contract, funding is contingent on funding availability, mutual agreement between the parties, approval of City Council, and certification of funds by the City Auditor.
This ordinance authorizes the first modification of the contract and is being submitted in accordance with the relevant provisions of Chapter 329 of City Code.
1. Amount of additional funds: The total amount of additional funds needed for this contract modification #1 is $2,200,000.00. Total contract amount including this modification is $4,400,000.00
2. Reason additional funds were not foreseen: The need for additional funds was expected at the time of the initial contract.
3. Reason other procurement processes were not used: Regular procurement processes were utilized.
4. How was cost determined: The modification is based upon estimated requirements for 2026 at rates established in the existing contract.
SUPPLIER: Bermex, Inc. Vendor# 015334; cc exp 6/3/2026
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
FISCAL IMPACT: $2,200,000.00 is budgeted in the Water Operating Fund and available for this contract. This ordinance is contingent on the passage of the 2026 operating budget, Ordinance 2939-2025.
$2,012,941.14 has been spent so far in 2025
$2,020,287.45 was spent in 2024
Title
To authorize the Director of the Department of Public Utilities to modify an existing contract with Bermex, Inc. to add additional funding to provide Water Meter Reading Services for the Division of Water; and to authorize the expenditure of $2,200,000.00 from the Water Operating Fund. ($2,200,000.00)
Body
WHEREAS, it is necessary to authorize the Department of Public Utilities, Division of Water, to modify a contract with Bermex, Inc. for Water Meter Reading Services; and
WHEREAS, the Department of Public Utilities, Division of Water solicited proposals for the water meter reading services and implementation in accordance with the provisions of Chapter 329 of City Code through RFQ028673; and
WHEREAS, the Department of Public Utilities, Division of Water wishes to modify this contract for a period of one (1) year along with the optional extension of this contract through 2030; and
WHEREAS, it is necessary to authorize the expenditure of $2,200,000.00 from the Water Operating Fund; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities to authorize the Director of Public Utilities to modify a contract for Meter Reading Services with Bermex, Inc. so that the contract can be timely executed and services can continue given that current funding will run out in March 2026; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Utilities be and hereby is authorized to modify an existing contract with Bermex, Inc. for the Department of Public Utilities, Division of Water for Water Meter Reading Services to add additional funding. The amount authorized by this ordinance is $2,200,000.00.
SECTION 2. That this contract is in accordance with the relevant provisions of Chapter 329 of the Columbus City Codes.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 5. That the expenditure of $2,200,000.00 or so much thereof as may be needed, is hereby authorized from object class 03, Services, Water Operating Fund, per the accounting codes in the attachment to this ordinance.
SECTION 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.