Explanation
This ordinance authorizes the Director of Public Utilities to modify and increase a contract with Sensus USA Inc. to provide ongoing software, hardware, and maintenance of the system required as part of the Enhanced Meter Project (EMP) legislated under Ordinance #1024-2020. Planning area - 99 (Entire service area including suburbs).
This contract is for the ongoing operation and maintenance of the system and software to ensure the system implemented as part of the EMP is usable. As legislated under Ordinance #1024-2020, the Enhanced Meter Project CIP will replace outdated and underperforming meters, install radio transmitting infrastructure to allow wireless readings relayed to the billing software at a central location, and provide an environmentally efficient way to read meters.
PROCUREMENT:
Chapter 329 of Columbus City Code was followed as part of the Enhanced Meter Project CIP, which was legislated under Ordinance #1024-2020. After proposals were received, the Software-as-a-service (SAAS) contract and cost were negotiated and the department determined the price to be acceptable. During negotiations with the selected vendor for the EMP, the department determined that using a SAAS and Managed Services model, where the vendor hosts all data and software on their computer servers and maintains the system, is in the best interest of the City and the Division of Water. As the meter equipment is proprietary to the vendor, it is in the City’s best interest to waive the competitive bidding provisions of City Code for the operating portion of the contract.
The term of the operating contract shall begin on the Effective Date and continue through March 31, 2026 (the “Initial Term”). The Contract is subject to annual funding approval, which will require the authorization of Columbus City Council, the appropriation of additional funds by the Columbus City Auditor, and the execution of a contract modification to increase the maximum obligation.
Per Ordinance 1266-2020, the City may, at its option, perform a contract modification under the same terms and conditions, for fifteen additional one-year terms after the initial term. Costs for any modifications after the initial term will be negotiated at a future date. If unforeseen issues or difficulties are encountered that would require additional funding, a modification would be requested.
This ordinance authorizes the fourth modification for the fifth year 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 #4 is $650,000.00. Total contract amount including this modification is $3,625,000.00
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract.
3. Reason other procurement processes were not used: Regular procurement processes were utilized and this is the fifth year of six authorized modification options.
4. How was cost determined: The modification is based upon estimated requirements for 2024 at rates established in the existing contract.
SUPPLIER:
Sensus USA, Inc. | EIN on file| D365 Vendor #008960 | Expires 3/14/2024 |
The company does not hold MBE or WBE status.
FISCAL IMPACT:
$650,000.00 is budgeted and available for this contract.
This ordinance is contingent on the passage of the 2024 Operating Budget, Ordinance 3012-2023.
$133,822.02 has been spent in 2024
$322,725.27 was spent in 2023
$0.00 was spent in 2022
Title
To authorize the Director of Public Utilities to modify and increase a contract with Sensus USA, Inc. for ongoing software, hardware, and maintenance of the system for the Enhanced Meter Project for the Division of Water; to authorize the expenditure of $650,000.00 from the Water Operating Fund; and to waive the competitive bidding provisions of City Code. ($650,000.00)
Body
WHEREAS, Ordinance #1024-2020 authorized the Enhanced Meter Project CIP to replace outdated and underperforming meters, install radio transmitting infrastructure to allow wireless readings relayed to the billing software at a central location, and provide an environmentally efficient way to read meters; and
WHEREAS, during negotiations with the selected vendor for the Enhanced Meter Project CIP, the Division of Water determined that using a Software-as-a-service (SAAS) and Managed Services model, where the vendor hosts all data and software on their computer servers as well as maintaining the system, is in the best interest of the City and its customers; and
WHEREAS, the operating contract provides for the ongoing software, hardware, and maintenance of the system that is required as part of the Enhanced Meter Project; and
WHEREAS, the meter equipment is proprietary to the vendor so it is in the City’s best interest to waive the competitive bidding provisions of City Code for the operating portion of the contract; and
WHEREAS, the initial term of the contract is from the date of execution through March 31, 2026 and funding will be requested for this contract each year subject to approval by Columbus City Council; and
WHEREAS, this ordinance provides funding for the contract through March 31, 2024; and
WHEREAS, the City may, at its option, perform a contract modification under the same terms and conditions, for fifteen additional one-year terms after the initial term. Costs for any modifications after the initial term will be negotiated at a future date; and
WHEREAS, the expenditure of $650,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6000, Water Operating Fund, in object class 03, Services, per the accounting codes attached to the ordinance; 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 and increase the contract for operations, maintenance and software services pertaining to the Enhanced Meter Project with Sensus USA.; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is hereby authorized to modify and increase the contract with Sensus USA, Inc., 637 Davis Drive, Morrisville, NC 27560, for operations, maintenance and software services pertaining to the Enhanced Meter Project. This modification #4 adds $650,000.00 to the contract. Total contract amount including this modification is $3,625,000.00
SECTION 2. That this Council finds it in the best interest of the City to waive the competitive bidding provisions of Chapter 329 of City Code for the contract with Sensus USA, Inc.
SECTION 3. That the expenditure of $650,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6000, Water Operating Fund, in object class 03, Services, per the accounting codes attached to the ordinance.
SECTION 4. 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 5. 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 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.