RESOLUTION NO. R-2022-096
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH ALEXANDER'S CONTRACT SERVICES, INC. TO PROVIDE WATER METER READING SERVICES FROM DECEMBER 1, 2022 TO
NOVEMBER 30, 2027
WHEREAS, the City of Pismo Beach has contracted with Alexander's Contract Services, Inc. to provide meter -reading services for all water meters located in Pismo Beach for many years; and
WHEREAS, the last multi -year agreement expired in March 2022, therefore, the current services are being provided to the City on a month -to -month basis with the same terms; and
WHEREAS, both City staff and Alexander's have experienced challenges with the prior agreement and have negotiated changes to the agreement, including the timing of preparing and submitting the meter reads to the City, an updated per -meter read cost, an increased credit due back to the City for any rereads that City staff is required to perform beyond a given error rate, adding a fuel escalation clause, and other minor changes; and WHEREAS, the estimated cost of this agreement is approximately $50,000 per year, split between the Water Enterprise Fund and the Wastewater Enterprise Fund budget; there is a sufficient budget in these funds in the contract services accounts to support this cost in Fiscal Year 2023.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter in an agreement (Exhibit A) with Alexander's Contract Services, Inc. to provide water meter reading services for the City of Pismo Beach from December 1, 2022 to November 30, 2027, which should not exceed $50,000 per year, or $250,000 over five years.
UPON MOTION OF Council Member Guthrie, seconded by Council Member Newton, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 111 day of November 2022, by the following vote:
AYES: 5 Guthrie, Newton, Blake, Reiss, Waage
NOES: 0
ABSENT: 0
ABSTAIN: 0
RECUSED: 0
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Approved:
Ed Waage, Mayor
Attest: '
Er' a'In exiled ity Jerk
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' Agreement for Data Collection Services
This Agreement is made and entered into as of December 1, 2022 ("Effective Date") by and between City of Pismo Beach ("the City") and Alexander's Contract Services, Inc. ("Contractor")
Recitals
A. The City desires to continue to engage Contractor as its independent contractor and Contractor desires to continue the Services Agreement with the City to read the City's Water Meters.
Agreement
Now therefore, the City and Contractor hereby mutually agree as follows:
Section 1 — Scope of Work:
Contractor will provide all of the services and personnel necessary to read each of the City's Water Meters and report resulting reads via web interface to the City. It is understood that during the term of the Agreement the number of City meters may increase or decrease. Any such increase or decrease will not alter the terms and provisions of this agreement.
Meter reads will be performed over one to two days of each month, between the 31d and 5th business day of every month, with the data given to the City within 72 hours after meter reads are completed by Contractor each month. The City agrees to have the file imported to the website by the 2nd business day of the month. Any changes to these read dates will need to be approved by both Alexander's and Pismo Beach staff.
Section 2 — Equipment:
Contractor will provide all the necessary vehicles and computerized meter reading equipment necessary to read all of the City's meters and to process the resulting readings for the City's billing system. Contractor acknowledges that it is familiar with the City's billing equipment and software input requirements and agrees that the meter reads can be provided in a format acceptable to the existing software and equipment. In the event the City changes its billing software, Contractor agrees to work with the City to implement its new system.
Section 3 — Compensation for Services:
The City will compensate Contractor for Contractor's services rendered under this agreement at the rate of $1.20 per meter for manually -read meters for each month the 1 meter is read by Contractor. Should this Agreement be extended pursuant to Section 9, the City will compensate Contractor for Contractor's services as follows during such extension periods:
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Effective December 1, 2023 the per -meter price for manually -read meters will be $1.20 per meter read.
Effective December 1, 2024 the per -meter price for manually -read meters will be $1.22 per meter read.
Effective December 1, 2025 the per -meter price for manually -read meters will be $1.24 per meter read.
Effective December 1, 2026 the per -meter price for manually -read meters will be $1.26 per meter read.
In addition, during the term of this Agreement, and during each extension year, if any, the City will pay Contractor the annual sum of $8,014.44, which will be billed out monthly, (at a rate of $667.87) with each bill for services to the City, for Contractor's computer processing of the meter reading data submitted to the City.
The City will not be charged extra for additional attempts to read a meter pursuant to Section 6 which is not readily available to Contractor on the first attempt, for meters not found by the Contractor on the first attempt or for re -reads of meters to verify accuracy or correct errors prior to completion of read file by Contractor. Contractor will send invoices via email at the completion of reading, and invoices are due and payable upon receipt.
Any invoices not paid within 30 days will incur interest at the rate of seven percent annually.
The City of Pismo Beach will not be charged for meter reads that are read incorrectly and will be credited $18.00 per meter for any rereads that the Pismo Beach staff is required to do on a monthly basis after Alexander's provides the final reads. This applies only to meters that were read incorrectly in the read file given to the contractor and above the agreed upon error rate per Section 5. If the City staff shows the meter was read incorrectly, this credit will be given on the following month's invoice. As it can take a full billing cycle before misread meter reads are discovered, the credit of $18.00 per misread meter is applicable when found and corrected by the City. Notwithstanding the foregoing, if Contractor complies with a request from the City to provide a reading for a meter that Contractor finds it unusually difficult to read as described in Section 6, such reading will not be subject to any credit pursuant to this paragraph.
Section 4 — Fuel Escalation Clause
For the purposes of calculating the fuel escalation charges in this Section, the US Energy Information Administration website will be used as the benchmark for gas prices:
https://www.eia.gov/dnav/pet/pet pri qnd dcus sca w.htm Weekly Retail Gasoline and Prices data will be used with the following filters: Area: California
Period: Weekly
The first day of the billing month for which the website shows data for Regular Grade Gasoline will be used as the benchmark price.
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' a) If and when the price per gallon is between $6.00 and $6.50, inclusive the manually read meter read will be increased by 3%, rounded down to the nearest penny. b) If and when the price per gallon is between $6.51 and $7.00, inclusive the manually read meter read will be increased an additional 3% above the read in subsection (a) rounded down to the nearest penny.
c) If and when the price per gallon is between $7.01 and $7.50, inclusive the manually read meter read will be increased an additional 3% above the read in subsection (b) rounded down to the nearest penny.
d) If and when the price per gallon is between $7.51 and $8.00, inclusive the manually read meter read will be increased an additional 3% above the read in subsection (c) rounded down to nearest penny.
'Note. If and when the price per gallon goes back down, the manually read meter read price will decrease to the rates set forth in the above escalation clause. Should the price per gallon be below $6.00, no fuel escalation charge shall be applied.
Section 5 — Meter Reading Rate of Error:
Contractor represents that the error for each meter reading monthly cycle will not exceed 2/10'"% of the total number of manual meters read during the cycle. Upon notice from the City, Contractor will take all of the steps necessary to correct any error and report the corrected reading to the City in a timely manner. The City shall seek reimbursement at the cost of $18.00 per meter for mis-read errors over and above 2/10% (2 Per 1,000 reads). For the avoidance of doubt, meters that Contractor is unable to read or finds it unusually difficult to read, as described in Section 6, will not be counted as errors for purposes of this Section 5.
Section 6 — Access to Meters:
Contractor will report in writing to the City, at the time the results of meter reading is reported to the City, all the meters which Contractor is unable to read or finds it unusually difficult to read for any reason whatsoever. The report may include, but is not limited to, meters that cannot be read as a result of issues with City infrastructure or equipment, access to meters being denied or made impossible because of the location of vehicles or equipment parked nearby, other obstacles have been placed over or near the meter, or a meter that may have been paved over.
Contractor shall use reasonable efforts to make one re -read of a meter which has been temporarily obstructed. Any meters that Contractor cannot read, after making one reasonable attempt to re -read within the reading cycle, will become the responsibility of the City once reported to the City as described herein. Contractor shall have no responsibility to read such meters until such time as the City has provided normal access.
All unread meters will have a photo and note explaining why the meter was not read.
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Section 7 — Notes and Maintenance Reports:
Contractor will supply the City with a current computer -generated list of any maintenance which, in the opinion of Contractor, needs to be done by the City to its water distribution system in order that Contractor may perform its duties and services hereunder in a timely and accurate manner. Contractor represents that it has made itself familiar with the City's distribution systems and equipment and, as of the date of the execution of this Agreement, Contractor represents that the condition of the system will not prevent Contractor from a timely performance hereunder.
Section 8 — Identification of Meter Readers/Customer Complaints:
Contractor shall ensure that all employees engaged in meter reading services shall be prominently identified as such, with uniforms or other distinctive means of identifying the employee as a meter reader. The parties agree that the standard uniform currently in use by Contractor's employees as of the date of this Agreement will satisfy this Section
8. In the event that the City receives complaints or inquiries from its customers concerning meter readings, the City shall contact the Contractor within two business days from date/time the complaint was received. Contractor agrees to cooperate with the City and use its reasonable best efforts to furnish information to the City to assist in its responses.
Section 9 — Term and Termination:
The term of this Agreement shall be one year from the Effective Date, unless otherwise terminated as provided in this Section. This Agreement shall automatically renew for one-year periods, to a maximum of four additional one-year renewals, on the same terms and conditions, with a per -meter rate adjustment as set forth in Section 3, unless either party gives written notice to the other of its intention to not renew this Agreement at least 120 days prior to the end of the term or any extension.
This Agreement may be terminated by the City, if (1) Contractor fails to perform satisfactorily any of the terms and conditions of the Agreement and (2) Contractor thereafter fails to satisfactorily perform within ten (10) days of receipt of written notice from the City specifying the manner in which Contractor has failed to perform satisfactorily. In the event of termination of the Agreement under this paragraph, the City shall provide Contractor with written notice of the effective date of termination. Contractor shall cease work upon the: effective date of termination and shall not incur further expenses in connection with the services. Contractor shall not be entitled to compensation from the City for services performed or expenses incurred after the date of termination.
However, Contractor shall be entitled to compensation for services performed satisfactorily prior to the date of termination.
Notwithstanding any other provision of this Agreement, City and Contractor shall each have the right to terminate this Agreement upon thirty (30) days written notice to the PAGE 6 OF 11
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other party. In the event of termination of the Agreement under this paragraph, Contractor shall within ten (10) days after the date of termination, provide the City with a final statement. Upon receipt by the City of this final statement, the City shall pay Contractor in the amounts and in the manner required by this Agreement.
Section 10 —Workers' Compensation Insurance:
By the signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provision of that code, and Contractor will comply with such provisions before commencing the performance of the work of this agreement.
Section 11 — Commercial General Liability, Automobile Liability and Professional Liability Insurance:
Contractor shall provide and maintain the following commercial general liability, professional liability and automobile liability insurance:
A. Coverage - Contractor shall maintain coverage at least as broad as the following:
1. Insurance Services Office Commercial General Liability Coverage (Occurrence Form CG 0001)
-� 2. Insurance Services Office Automobile Liability Coverage (Form CA 0001) r
3. Coverage for Professional Liability appropriate to the Contractor's profession covering Contractor's wrongful acts, negligent acts, errors or omissions. The retroactive date (if any) is to be no later than the effective date of this agreement.
B. Limits - Contractor shall maintain limits no less than the following:
General Liability - Two million dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance or other form with a general aggregate limit or products -completed operations aggregate limit is used, either the general aggregate limit shall apply separately to this agreement (with the insurer's endorsement provided to the City) or the general aggregate limit and products- completed operations aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability- One million dollars ($1,000,000) per occurrence for bodily injury and property damage for all vehicles used by Contractor in performing the services under this Agreement.
3. Professional Liability - One million dollars ($1, 000,000) per occurrence and annual aggregate.
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C. Required Provisions - The General liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:
1. The City, its elected and appointed officials, officers, employees, and authorized volunteers are to be named additional insured as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor; premises owned, occupied or used by the Contractor; or automobiles and other vehicles owned, leased, hired or borrowed by the Contractor. The Coverage shall contain no special limitations on the scope of protection afforded to the City, its elected and appointed officials, officers, employees, and authorized volunteers.
2. For any claims related to services rendered under this agreement, the Contractor's insurance shall be primary insurance as respects the City, its elected and appointed officials, officers, employees, and authorized volunteers. Any insurance, self- insurance, or other coverage maintained by the City, its elected and appointed officials, officers, employees, or authorized volunteers shall not contribute to it.
3. Any failure by Contractor to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its elected and appointed officials, officers, employees, or authorized volunteers.
4. The Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
5. Each insurance policy required by this section shall state or be endorsed to state that coverage shall not be cancelled by either party except after thirty (30) days (10 days for non-payment of premium) prior written notice by U.S. mail has been given to the City. The general liability policy shall cover bodily injury (including death), property damage, personal injury, owned and non owned equipment, blanket contractual liability and completed operations and products liability.
The automobile liability policy shall cover all owned, non -owned and hired automobiles and other vehicles.
Section 12 — Indemnification:
The Contractor shall indemnify and save harmless the City and its representatives from and against all losses and claims, demands, suits, actions, payments, and judgments arising from personal injury or otherwise, brought or recovered against the City or its agents, employees, or representatives, proximately caused by the negligence or willful misconduct of the Contractor, its agents, servants or employees, in the execution of the contracted work, including any and all expense, legal and otherwise, incurred by the City or its representatives in the defense of any claim or suit.
For purposes of this paragraph, (i) the City will advise Contractor of any incident PAGE 8 OF 11
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that may lead to a loss, claim, demand, suit, action, payment and/or judgment prior to formally seeking indemnification from and/or seeking to be held harmless by Contractor; and (ii) the City will give Contractor at least ten (10) calendar days to provide the City with pictures and/or other mechanisms of proof that any such loss, claim, demand, suit, action, payment, and/or judgment was not proximately caused by the negligence or willful misconduct of the Contractor, its agents, servants or employees, in the execution of the contracted work.
Section 13 — Laws, Regulations and Permits:
The Contractor shall give all notices required by law and comply with all laws, ordinances, rules and regulations pertaining to the conduct of the work. The Contractor shall be liable for all violations of the law by Contractor in connection with work furnished by the Contractor. If the Contractor performs any work knowing it to be contrary to such laws, ordinances, rules and regulations, the Contractor shall bear all costs arising therefrom.
Section 14 — Safety:
The Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its work, the Contractor shall, at all times, exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed, and be in compliance with all federal, state and local statutory and regulatory requirements including State of California, Division of Industrial Safety (Cal/OSHA) regulations, and the U.S. Department of Transportation Omnibus Transportation Employee Testing Act (as applicable).
Section 15 — Miscellaneous Provisions:
A. Independent Contractor: Contractor is an independent contractor and shall not be deemed to be the employee or agent of the City. Contractor is not to be considered an agent or employee of the City for any purpose and the officers, employees and agents of Contractor are not entitled to any of the benefits that the City provides for its employees, including but not limited to, workers' compensation insurance.
Contractor shall assume responsibility for payment of all federal state and local taxes or contributions imposed as required under employment insurance, social security, and income tax laws with respect to Contractor's employees engaged in the performance of this Agreement.
B. Governing Law: This Agreement shall be governed by and interpreted in accordance with the laws of the State of California with venue proper only in the County of San Luis Obispo, State of California.
IC. Interpretation: The provisions and language of this Agreement shall be interpreted in accordance with the plain meaning thereof and shall not be construed for or PAGE 9OF11
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against any of the parties hereto.
D. Headings: The headings used in this Agreement are for convenience and reference only and shall not be utilized in the construction of the terms or provision of this Agreement.
E. Severability: If any term, provision, covenant or condition of this Agreement shall be or become illegal, null, void or against public policy, or shall be held by any court of competent jurisdiction to be illegal, null, void or against public policy, the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected, impaired or invalidated. The term, provision, covenant or condition that is so invalidated, voided or held to be unenforceable, shall be modified or changed by the parties to the extent possible to carry out the intentions and directives set forth in this agreement.
F. Assignment: Except as expressly provided herein, no party shall have the right to assign its rights or delegate any of its obligations or duties hereunder without the express written consent of the other party.
G. Waiver: The waiver of any breach of any provision hereunder by any party to this agreement shall not be deemed to be a waiver of any preceding or subsequent breach hereunder, nor shall any waiver constitute a continuing waiver. No waivershall be binding unless executed in writing by the party making the waiver.
H. Notices: All notices, approvals, acceptance, demands and other communications required or permitted hereunder, to be effective, shall be in writing and shall be delivered either in person or by mailing the same by United States mail (postage prepaid, registered or certified, return receipt requested) or by Federal Express or similar overnight delivery service to the party to whom the notice is directed at the address of each such party as follows.
To: City of Pismo Beach
City Manager
City of Pismo Beach 760 Mattie Road
Pismo Beach, CA 93449
To: Alexander's Contract Services
Tim Alexander
Alexander's Contract Services
8655 Morro Road Suite "C"
Atascadero, CA 93422
Any written communications given by mail shall be deemed delivered two (2) business days after such mailing date and any written communications given by overnight delivery service shall be deemed delivered on (1) business day after the dispatch date. Anyparty may change its address by giving the other parties written notice of its new address as herein provided.
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' I. Conduct/Appearance: As a contractor providing services for the City, Contractor shall ensure that each person employed by the Contractor shall maintain a professional appearance and demeanor while providing services for the City.
Contractor shall ensure that its employees are dressed in professional -looking uniforms that are clean and free from rips and holes, and that identify the employees as a "meter reader". Contractor shall not permit its employees to drive in an erratic manner while providing services for the City, nor to operate any motorized vehicle on sidewalks or other places prohibited by law. Contractor shall ensure that while they are providing services on behalf of the City, Contractor's employees do not spit on public or private property, that they refrain from profane or obscene language, and that they do not engage in any actions that generate complaints to the City regarding Contractor's provision of services for the City.
Amendment: Adjustments and amendments to this Agreement and its terms and conditions shall only be made by written mutual agreement of the parties and signed by a duly authorized official representing each party.
K. Entire Agreement and Termination of Prior Agreements: This Agreement constitutes the entire agreement between the parties and supersedes any prior negotiations, agreements and understandings of the parties relating to the subject matter of this Agreement.
' L. Attorney's Fees: If any action at law or in equity is brought to enforce or interpret the provisions of the contract, the prevailing party shall be entitled to reasonable attorney's fees, court costs and necessary disbursements, in addition to any other relief to which it may entitled.
City of Pismo Beach Alexander's Contract Services
James R. Lewis, City Manager
Date:
Tim Alexander, President
Date:
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