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Home My WebLink About2011 09 12 Consent 208 Meter Reading Services COMMISSION AGENDA X CONSENT ITEM 208 INFORMATIONAL PUBLIC HEARING REGULAR MGR /DEPT September 12, 2011 Meeting Authorization REQUEST: The Finance Department is requesting authorization from the City Commission to extend the City’s current contract with Severn Trent Environmental Services, Inc. to read City water meters for the contract period October 1, 2011 to September 30, 2012. SYNOPSIS: The purpose of this Agenda item is to request authorization to extend the City’s current meter-reading contract for Fiscal Year 2011-2012. CONSIDERATIONS: On July 28, 2008 Consent Item # 204 was approved by the City Commission which authorized the City to piggyback off the City of Mount Dora’s contract with Severn Trent Environmental Services, Inc. for contract meter-reading services. According to the Agreement, Section 1.1 allows for annual extensions providing both sides agree in writing. Please see Severn Trent’s contract extension letter dated August 31, 2011. Per Section 9.5 of the City of Mount Dora’s contract, annual pricing shall be increased by the lesser of 4% or the Consumer Price Index for all Urban Consumers (CPI-U) each October 1. This year the City requested that Severn Trent not exercise their contractual right to increase the rates by an approximate CPI-U index of 2%. Severn Trent agreed to the concession, therefore the attached meter reading services extension letter reflects rates and services which remain unchanged from the current fiscal year. The contract as extended allows for contract release by either party given 30 days written notice. Of Severn Trent’s Florida customers the City of Winter Springs enjoys the lowest rates of those utilities with comparable volume. An informal survey of area municipalities indicates that these renewal rates are very competitive. Of the competing companies we contacted, they either do not engage in business in the Central Florida area or their rates were in excess of those being proposed. This contract will be reviewed and bid during the summer of 2012. Our working relationship with Severn Trent is a good one. They have valuable experience and familiarity with our procedures, routes and meter locations. Therefore, daily transactions are City Commission – Regular Meeting September 12, 2011 Consent Item #208 Page 2 of 2 seamless and uneventful. Service has been good and their responsiveness to special requests and areas of concern is excellent. Over the last year they initiated monthly meetings with the utility billing and meter-reading staff in order to stay abreast of potential issues. FISCAL IMPACT: Funding is payable from the Utility Billing Division of the Finance and Administrative Services Department (General Fund 1360-53188) at a cost of $0.72 cents per manual-read meter, $0.62 per touch-read meter and $0.62 per remote-read meter, which is unchanged from the current fiscal year. Most of our meters are manually read with the exception of Courtney Springs and a portion of Parkstone which are touch-reads. The General Fund will be reimbursed by the Water and Sewer Utility Fund for 100% of the fees charged. The 2011-2012 Proposed Budget has included $126,000 for this contract. COMMUNICATION EFFORTS: This Agenda Item Has Been Electronically Forwarded To The Mayor And City Commission, City Attorney/Staff, And Is Available On The City’s Website, LaserFiche, And The City’s Server. Additionally, Portions Of This Agenda Item Are Typed Verbatim On The Respective Meeting Agenda Which Has Also Been Electronically Forwarded To The Individuals Noted Above, And Which Is Also Available On The City’s Website, LaserFiche, And The City’s Server; Has Been Sent To Applicable City Staff, eAlert/eCitizen Recipients, Media/Press Representatives Who Have Requested Agendas/Agenda Item Information, Homeowner’s Associations/Representatives On File With The City, And All Individuals Who Have Requested Such Information. This Information Has Also Been Posted Outside City Hall, Posted Inside City Hall With Additional Copies Available For The General Public, And Posted At Five (5) Different Locations Around The City. Furthermore, This Information Is Also Available To Any Individual Requestors. City Staff Is Always Willing To Discuss This Agenda Item Or Any Agenda Item With Any Interested Individuals. ATTACHMENTS: Severn Trent Contract Extension letter dated August 31, 2011 RECOMMENDATION: It is recommended that authorization be granted to extend the City’s contract with Severn Trent Environmental Services, Inc. to read City water meters for the contract period October 1, 2011 to September 30, 2012 at the following price structure: $0.72 cents per manual-read meter, $0.62 per touch-read meter and $0.62 per remote-read meter; and that authorization be given to the City Manager and the City Attorney to prepare and execute the necessary documents for the contract extension. Via Federal Express Severn Trent Services 4837 Swift Road, Suite 100 August 31, 2011 Sarasota, FL 34231 United States Kevin L. Smith T: +1 941 925 3088 City Manager F: +1 941 924 7203 City of Winter Springs www.severntrentservices.com 1126 East State Road 434 Winter Springs, Florida 32708 Subject: Meter Reading Services Agreement Extension Dear Mr. Smith: I would like to take this opportunity to thank the City of Winter Springs for the opportunity Severn Trent Environmental Services Inc. has had to provide meter-reading services to you and your homeowners over this past year. According to your piggyback agreement to the City of Mt. Dora Meter Reading Services agreement, Section 1.1 allows for annual extensions provided both sides agree in writing. At this time, Severn Trent would like to offer a (1) one-year extension effective October 1, 2011 through September 30, 2012. As requested, due to the City’s budgetary constraints, Severn Trent will forego the scheduled CPI with this renewal and the current rates will remain as listed below: Manual Reads: $0.72 Radio Reads $0.62 If you are in agreement with the above, please sign the three originals of this letter and return two originals to me at the address listed above and retain the other original for your files. It has been a pleasure to serve the City and its customers over the past year and we look forward to working with you for many more. If you have any questions or would like to discuss any of Severn Trent’s other services, please do not hesitate to call me or Rita Varona at (941) 925-3088. Sincerely, Agreed to and Accepted By: Rich Gardner _____________________________ ___________ _ Regional General Manager City of Winter Springs Date Kevin L. Smith, City Manager copy: Rita Varona, Regional Operations Support Manager Victor Cozart, Meter Reading Manager Page1 of 1 Correspondence should be addressed to: Severn Trent Environmental Services, Inc. SEVERN TRENT SERVICES Via Federal Express Severn Trent Services 4837 Swift Road, Suite 100 August 31, 2011 Sarasota, FL 34231 United States Kevin L. Smith T: +1 941 925 3088 City Manager F: +1 941 924 7203 City of Winter Springs 1126 East State Road 434 www.sevemtrentservices.com Winter Springs, Florida 32708 Subject: Meter Reading Services Agreement Extension Dear Mr. Smith: I would like to take this opportunity to thank the City of Winter Springs for the opportunity Severn Trent Environmental Services Inc. has had to provide meter - reading services to you and your homeowners over this past year. According to your piggyback agreement to the City of Mt. Dora Meter Reading Services agreement, Section 1.1 allows for annual extensions provided both sides agree in writing. At this time, Sevem Trent would like to offer a (1) one -year extension effective October 1, 2011 through September 30, 2012. As requested, due to the City's budgetary constraints, Sevem Trent will forego the scheduled CPI with this renewal and the current rates will remain as listed below: Manual Reads: • $0.72 Radio Reads • $0.62 If you are in agreement with the above, please sign the three originals of this letter and return two originals to me at the address listed above and retain the other original for your files. It has been a pleasure to serve the City and its customers over the past year and we look forward to working with you for many more. If you have any questions or would like to discuss any of Sevem Trent's other services, please do not hesitate to call me or Rita Varona at (941) 925 -3088. Sincerely, it edekka(0-44u-63 Agreed to and Accepted By: Rich Gardner 9 Regional General Manager C' ' of Wing dings Date Kevin L. Smi i , ',CO Manager 5 copy: Rita Varona, Regional Operations Support Manager Victor Cozart, Meter Reading Manager Page 1 of 1 Correspondence should be addressed to: Severn Trent Environmental Services, Inc.