Explanation
This legislation authorizes the Director of Public Utilities to modify the service contract with Bermex, Inc. to add funding in the amount of $600,000.00 for continuation of Water Meter Reading Services for the Division of Water.
Ordinance 0445-2022 previously extended the term of contract through July 31, 2023.
Ordinance 1466-2018 authorized the Director of Public Utilities to enter into contract with Bermex, Inc. to provide Water Meter Reading Services, recurring monthly and quarterly for predetermined routes within the City of Columbus. Services include data collection through manual reads and radio reads using DPU’s equipment.
DPU has been working on an Enhanced Meter Project (EMP) since 2018 which will upgrade the City’s metering system. The implementation is expected to continue through 2024. The intent of this contract is to bridge the gap between the start of the AMI implementation and its conclusion, where it is expected that most meters will be able to be read remotely.
The Department of Public Utilities solicited Competitive Bids for these services in accordance with the provisions of Chapter 329 (RFQ008758). 76 vendors were solicited. Two (2) bids were received and opened on 4/27/18. The Division of Water recommended the contract be awarded to the most responsive and responsible bidder, Bermex, Inc.
The original contract was for one (1) year, from the date of execution (August 1, 2018 to July 31, 2019), with the option to renew for five (5) additional years based upon mutual agreement, budgeted funds, and approval by City Council. For each renewal year, funds for service shall be reviewed and expenditures shall be approved by ordinance of City Council, and the appropriation and certification of funds by the City Auditor.
The maximum obligation of the City, for service described in this agreement, is limited to the amount of $600,000.00. If unforeseen issues or difficulties are encountered that would require additional funding, a modification would be required.
SUPPLIER: Bermex Inc. Vendor# 015334 (38-3326896), Expires 9/29/22
Bermex Inc. does not hold MBE/FBE status.
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.
1. Amount of additional funds: Total amount of additional funds needed for this contract modification no. 10 is $600,000.00. The Division will request additional future modifications as additional work orders are approved. Total contract amount including this renewal is $6,295,000.00.
2. Reasons additional funds were not foreseen: The potential need for additional funds was known and provided for at the time of the initial contract. This modification is to provide the additional funding necessary to pay for services in 2022 and 2023.
3. Reason other procurement processes were not used: The potential need to modify this contract to add funding was provided for in the original contract.
4. How was cost determined: The cost, terms and, conditions are in accordance with the original agreement.
FISCAL IMPACT: $600,000.00 is budgeted in the Water Operating Fund and available for this contract.
$531,221.36 has been spent so far in 2022
$1,576,354.34 was spent in 2021
$1,513,032.07 was spent in 2020
Title
To authorize the Director of Public Utilities to modify and extend a service contract with Bermex, Inc. to provide Water Meter Reading Services for the Division of Water; and to authorize the expenditure of $600,000.00 from the Water Operating Fund. ($600,000.00)
Body
WHEREAS, Ordinance No. 1466-2018, passed by the Columbus City Council on June 11, 2018, authorized the Department of Public Utilities, Division of Water, to enter into a contract with Bermex, Inc. for Water Meter Reading Services; and
WHEREAS, the original contract was for one (1) year from the date of execution, with the option to renew for five (5) additional one-year terms based upon mutual agreement of the parties, budgeted funds, and approval by City Council; and
WHEREAS, this ordinance authorizes the modification of this contract to add funding and the expenditure of $600,000.00, or so much thereof as may be needed, from the Water Operating Fund, along with the extension of this contract through July 31, 2023; and
WHEREAS, this modification is in accordance with the relevant provisions of Chapter 329 of the City Code relating to contract modifications and renewals; 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 extend the contract for Meter Reading Services with Bermex, Inc.; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities be and hereby is authorized to modify and extend the contract with Bermex, Inc. for the Department of Public Utilities, Division of Water.
SECTION 2. That said firm shall conduct the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Water.
SECTION 3. That the expenditure of $600,000.00 or so much thereof as may be needed, is hereby authorized in object class 03 Services, Water Operating Fund 6000, per the accounting codes in the attachment to this 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.