Agenda Item
City Council
Item #: 3.4. 4/11/2023 File #: 23-0211
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Agreement with Alexander’s Contract Services for meter reading services.
2. SUMMARY
There are approximately 36,000 meters in the water distribution system. These meters are read on a bi-monthly basis for billing purposes. Because of the current vacancies, the Public Works Water Division needs temporary staff augmentation services to maintain continuity of meter reading activities. Alexander’sContract Services (ACS) is providing meter reading service to Irvine Ranch Water District (IRWD) at the cost of $1.03 per meter. ACS agrees to provide the same terms and service to the City of Orange. The estimated cost for a one-year service agreement is $220,000.
3. RECOMMENDED ACTION
1. Authorize the transfer of $220,000 from account number 600.8041.50002.00000, Regular Salaries to account number 600.8041.51670.00000, Other Professional & Consulting Services.
2. Approve the service agreement with Alexander’sContract Services in the amount of $220,000 for meter reading services and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this contract is $220,000.00 and will be funded through the Water Fund (600).
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
a: Provide staffing and resources to deliver services that ensure public safety.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
There are approximately 36,000 meters in the water distribution system. These meters are read bi- monthly for billing purposes. The customer service crew at the Public Works Department Water Division is responsible for reading these meters along with inspecting, repairing leaks, replacing meters, and resolving billing related issues. Aside from the core duties, the customer service crew City of Orange Printed on 4/5/2023Page 1 of 2
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Item #: 3.4. 4/11/2023 File #: 23-0211
plays an important role in water conservation outreach with their frequent interaction with the public.
Recently, the customer service crew lost two out of its five-member staff, or 40 percent of its workforce, to retirements and staff departures for other opportunities. The recruitment process for the vacant positions has started; however, there is not enough manpower to handle the normal workload in the short term. Staff proposes a solution through securing temporary staff augmentations services for some of our meter reading services until the vacant positions are filled.
This temporary staffing solution will enable the City to continue with uninterrupted billing services and allow the remaining City staff to work on the maintenance, repair, and installation of smart meters.
Currently, IRWD, a neighboring agency, is using ACS for their meter reading service at the cost of $1.03 per meter. ACS agrees to provide the same terms and service to the City of Orange. The proximity of IRWD and Orange’sservice area makes it possible and cost effective for ACS to add Orange to their work schedule. The estimated cost for a one-year service agreement is $220,000.
The City can terminate the contract at any time by giving the contractor a five- day written notice. To cover the cost of the proposed meter reading service, staff proposes using salary savings from vacant positions in the Water division.
For comparison purposes, the cost to perform the meter reading service in-house is about $1.60 per meter not including fuel, transportation, and equipment. However, City staff provide more value in terms of customer service, meter reading data analysis, and billing related issues. The service agreement with ACS provides a much-needed stopgap during the recruitment process for the vacancies on the customer service crew. Therefore, staff recommends that ACS be awarded the contract in the amount of $220,000 for meter reading services.
7. ATTACHMENTS
· Professional Services Agreement with ACS
City of Orange Printed on 4/5/2023Page 2 of 2
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