HomeMy WebLinkAboutRes2013-006Sponsored by: Hunt
CITY OF SEWARD, ALASKA
RESOLUTION 2013-006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING AN AMENDMENT TO THE AGREEMENT FOR
THE READING OF ELECTRICAL METERS WITH JORDAN METER
SERVICES WITHIN THE CITY OF SEWARD ELECTRIC SERVICE AREA
AND APPROPRIATING FUNDS IN THE AMOUNT OF $1,771.26 FOR
SERVICES IN 2012 AND $3,542.52 FOR SERVICES IN 2013
WHEREAS, an agreement for the reading of electrical meters between the City and Jordan
Meter Services expired on June 30th, 2012; and
WHEREAS, the City and Jordan Meter Services have mutually agreed to extend the
agreement for an additional three (3) years as outlined in the agreement; and
WHEREAS, the City and Jordan Meter Services have negotiated an amendment to the
agreement; and
WHEREAS, Jordan Meter Services has done an acceptable job and has not accrued any
penalties as outlined in the agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Council hereby approves Amendment No. 1 to the Agreement for the
Reading of Electrical Meters within the City of Seward Electric Service Area with Jordan Meter
Services.
Section 2. An increase of $1,771.26 for services will be appropriated from electrical fund
reserves to account 501-5400-5150 in 2012 and funds in the amount of $3,542.26 will be
appropriated from electrical fund reserves account 501-5400-5150 for 2013 services.
Section 3. This resolution shall take effect immediately.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of
January 2013.
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CITY OF SEWARD, ALASKA
RESOLUTION 2013-006
AYES:
NOES:
ABSENT:
ABSTAIN
ATTEST:
THE CITY OF SEWARD, ALASKA
David Seaward, Mayor
Valdatta, Bardarson, Keil, Shafer, Casagranda, Terry, Seaward
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Meeting Date:
Through:
From:
Agenda Item:
Council Agenda Statement
December 10, 2012
City Manager, Jim Hunt
Utility Manager, John Foutz
Amendment 1 to the Agreement for the reading of electrical meters within the
City of Seward Service Area
BACKGROUND & JUSTIFICATION:
The City of Seward contracts out the service of reading electrical meters inside city limits. The
current contract started in 2009 and had an expiration date of June 30, 2012 with an option for an
additional three year extension. The City sent a notice to renew to Jordan Meter Service and
requested the negotiation of an amendment to the agreement and in November 2012 the City and
Jordan Meter Service agreed, in principal, to the conditions of the amendment. The employees have
done an excellent job in their duties of reading meters, placing door hangers and limited errors.
INTENT:
This amendment is to adjust the rates outlined in the Agreement for the reading of electrical Meters
within the city of Seward Service Area to keep up with the Consumer Price Index (CPI). This
amendment will add to the functions of the meter reader the service of Initial Reads and clearly
define the Zones for the purpose of reimbursement.
CONSISTENCY CHECKLIST:
Yes
No
N/A
1.
Comprehensive Plan: Sections 2.2
X
2.
Strategic Plan (Page 3): Economic Development
X
3.
Other (list):
X
FISCAL NOTE: For comparison sake, using the same numbers prior to, and after, the increase for
an estimated average month will go from $3,481.04 to $3,776.25. This equals an estimated yearly
increase of $3,542.52 for the next two years and an estimated $1,771.26 increase for 2012. In 2015
the estimated increase of $1,771.26 over the previous fee schedule applies for the first six months of
the year. The agreement expires June 30, 2015 at which time a new agreement must be
implemented.
Approved by Finance Department: J-' & .&W2
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Council approve Resolution 2013-^ , approving Amendment 1 to the agreement for the reading
of electrical meters within the City of Seward Service Area.
• Main Office (907) 224-4050
YITY OF SEWARD Police (907) 224-3338
P-0. Box 167 Harbor (907) 224-3138
• Fire (907) 224-3445
410 Adams Street City Clerk (907) 224-4046
ieward, Alaska 99664-0167 Community Development (907) 224-4049
• Utilities (907) 224-4050
• Fax (907) 224-4038
November 8, 2012
Re: Reading of Electrical Meters C09-04
Richard Jordan
Jordan Meter Service
P.O. Box 1162
Seward, AK. 99664
COUNTER PROPOSAL TO AMEND THE METER READING CONTRACT
Dear Mr. Jordan,
The City appreciates your willingness to revise the compensation for services and to add the re -read service to
the Meter Reading Contract. After review the City agrees to all the proposed adjustments except one. The
proposed adjustment for the service of Door Hangers in Zone 1 is to go from $3.30 per hanger to $3.75 per
hanger. This is much higher than the cumulative consumer price index for the last three years. The City
Proposes to adjust this amount from $3.30 to $3.55 per hanger. With acceptance, the City will draft an
amendment to the current meter reading contract effective July 1, 2012 with the following adjustments:
Meter Reading
Door Hangers (Zone 1)
Door Hangers (Zone 2)
Door Hangers (Zone 3)
From $1.18 per meter
From $3.30 each
From $3.50 each
From $3.50 each
To $1.25 per meter
To $3.55 each
To $3.75 each
To $5.00 each
Initial reads (Zones 1 and 2) ---------------- To $25.00 per location
Initial reads (Zone 3) ---------------- To $30.00 per location
It is more accurate to use the term `initial reads' instead of re -reads. The proposed definition of this term is,
"The initial, or starting, reading of a meter outside the normally scheduled reading time during each month."
Zones 1, 2 and 3 are defined as follows:
Zone 1: Beginning at the fisheries near the Lowell Point waterfall, and north to the Resurrection River,
including Metco, and bounded by Resurrection River.
Zone 2: South of the fisheries near the Lowell Point waterfall, north and east of the Resurrection River
(including but not limited to Nash Road, SMIC and Lowell Point) and out to Mile Post 12 on the Seward
Highway.
Zone 3: North of Mile Post 12 on the Seward Highway,
The City further wishes to reduce the percentage of incorrect readings in section 13B from 2 '/z % to 1 '/z % and
from 5% to 4%. The sentence in this section, after the revision, would read, "Therefore, a penalty equaling 5%
of the Contractor's monthly earnings may be deducted from the Contractor's payment anytime the total errors
;ITY OF SEWARD
11.0. Box 167
410 Adanis Street
reward, Alaska 99664.0167
• Main Office (907) 224-4050
• Police (907) 224-3338
• Harbor (907) 224-3138
• Fire (907) 224-3445
• City Clerk (907) 224-4046
• Community Development (907) 224-4049
• Utilities (907) 224-4050
• Fax (907) 224-4038
determined by computing the sum of the incorrect readings and unread meters exceeds 1 '/2% of the total
number of meters required to be read that month. Likewise, if the total errors exceed 1 '/z % up to 4 % the
penalty shall be 10%, and if the total errors exceed 4 %, the penalty shall equal 5% of the Contractor's monthly
earnings plus the City's direct and overhead cost to read or re -read the meter and re -bill the customers."
Please respond in writing if you find this counter offer acceptable. If you have questions, don't hesitate to
contact me at 224-4071.
Sincerely,
John Foutz
tititity Mana?er
Jordan Meter Service
P.O. Box 1162
Seward, AK 99664
(907) 224-3830
(907) 362-1141) cell
November 13, 2012
John Foutz, Utility Manager
City of Seward
P.O. Box 167
Seward, AK 99664
R£: Electrical Meter Reading C09-04
Dear Mr. Foutz,
Please accept this letter as written acceptance of your counter proposal dated 11/8/12. We
understand the changes proposed as follows:
1. Door Hangers in Zone 1: $3.55
2. Reduction in percentage of incorrect readings in section 138 to 1-1/2% and 4% relative
to the penalty amounts of 5% and 10%, respectively.
Further we understand, upon receipt of this acceptance letter, the amendment to the current
meter reading contract be retroactively effective July 1, 2012,
Sincerely,
JORDAN METER SERVICE
Richard Jord
Owner/Operator
AMENDMENT NO. 1 TO AGREEMENT FOR
THE READING OF ELECTRICAL METERS
WHEREAS The City of Seward entered into an Agreement for the reading of
electrical meters within the City of Seward, Alaska electrical service area, effective July
1, 2009, between the City of Seward and Richard and Melody Jordan, and
WHEREAS Section 12 of the Agreement provided that the term would last three
(3) years provided that the City, in its discretion, may extend the Agreement for up to an
additional three (3) years, and
WHEREAS the City and the Contractor are willing to extend the Agreement
subject to this Amendment No. 1.
NOW THEREFORE the Parties agree to amend the Agreement as follows:
1. The term of the Agreement as described in Section 12 is extended for an
additional three (3) year period, to end on June 30, 2015;
2. Section 10 is deleted in its entirety and replaced with the following:
The Contractor shall be entitled to receive as compensation for the
services rendered in accordance with the following fees:
A. A monthly fee will be paid by the City in the amount of Three Thousand
Three Hundred One Dollars and Twenty-five cents ($ 3301.25) based on
approximately [2,641] electric meters and a fee of Three Dollars and Fifty
five cents ($ 3.55) for each door hanger delivered to electric utility
customers in Zone 1 and a fee of Three Dollars and Seventy-five cents ($
3.75) for each door hanger delivered to electric utility customers in Zone 2.
Any door hangers delivered to electric utility customers in the remaining
Seward electric service area, known as Zone 3, will be at a fee of Five
Dollars and no cents ($ 5.00) for each door hanger. The fee for reading
electric meters will be adjusted each year based on the number of meters
on October 1 of each year. The adjustment will be effective on and after
October 1 of each year.
B. The City may ask the Contractor to do an Initial Read of a meter
outside the regularly scheduled Meter Reading days. The Initial read is
the starting, or initial, reading of a meter outside the normally scheduled
reading time during each month. The Contractor shall be entitled to
monthly compensation for the services rendered a fee of Twenty -Five
Dollars and no cents ($ 25.00) per location in Zone 1 and 2 and a fee of
Thirty Dollars and no cents ($ 30.00) per location in Zone 3.
3. Section 13.A remains unchanged. Section 13.B is deleted and replaced
with the following:
B. A penalty may be deducted from the Contractor's monthly earnings for
incorrectly read or missed meter readings. The City's cost of responding
to customer complaints regarding incorrect or estimated billings often
exceeds the amount of a bill, not withstanding the loss of confidence of the
customer. Therefore, a penalty equaling 5% of the Contractor's monthly
earnings may be deducted from the Contractor's payment anytime the
total errors determined by computing the sum of the incorrect readings
and unread meters exceeds 1 '/2% of the total number of meters required
to be read that month. Likewise, if the total errors exceed 1 '/2% up to 4%
the penalty shall be 10%, and if the total errors exceed 4%, the penalty
shall equal 5% of the Contractor's monthly earnings plus the City's direct
and overhead cost to read or re -read the meter and re -bill the customers.
An error rate in excess of 4% for three consecutive months shall be cause
for the City to enact the conditions of paragraph 13.A, or terminate the
Agreement.
4. Section 18 is added as follows:
18. The City of Seward Electric Service Area, for the purposes of billing,
is broken into three zones. Zone 1, 2 and 3 are defined as follows:
Zone 1: Beginning at the fisheries near the Lowell Point waterfall, and
North to the Resurrection River and including Metco, bounded by the
Resurrection River.
Zone 2: South of the fisheries near the Lowell Point Waterfall, north
and east of the Resurrection River (including, but not limited to, Nash
Road, SMIC and Lowell Point) and to Mile Post 12 on the Seward
Highway.
Zone 3: North of Mile Post 12 on the Seward Highway.
5. This Amendment shall be Retroactive to the Date of July 1, 2012.
Except as provided above, all other terms and conditions of the Agreement
remain in full force and effect.
Dated this 10th day of December, 2012.
Richard Jordan
Jordan Meter Service
CITY OF SEWARD, ALASKA
James Hunt
City Manager
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)