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Home My WebLink AboutRes2013-006Sponsored 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. y 0 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 None None None Ja Q na Kin ey, C_MC nClerk �ClaS' G •^GCs�Pofiq'•• •��: <0 SEA—m" 0 4p 0• .• e .•y,9� • ,F 1:13•. �Q,,e�. •,•FrOT AV��,a m 01 p" 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)