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,...
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