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AMENDMENT NO. FIVE TO CONTRACT K-1415-34: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND RJN GROUP, INC., IN AN AMOUNT NOT-TO-EXCEED $150,000 AND EXTENDING THE CONTRACT THROUGH AUGUST 30, 2020, TO PROVIDE ENGINEERING, MAINTENANCE, REPAIR, INSTALLATION AND REPORTING SERVICES ASSOCIATED WITH PERMANENT WASTEWATER FLOW METERING EQUIPMENT AT EIGHTEEN (18) LOCATIONS THROUGHOUT NORMAN.
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BACKGROUND: In March 2002, the Norman Utilities Authority (NUA) approved Contract K-0102-50 with RJN Group, Inc. (RJN) which began a program to measure wastewater flows from satellite collection systems. The scope of services included metering equipment selection, installation, calibration, software for data collection and reporting, and a one-year maintenance contract which ended March 31, 2003. The program began with the installation of 10 flow meters at discharge points serving the University of Oklahoma. The contract was amended several times in subsequent years to authorize continued maintenance, data collection, and reporting.
After five years, a Request for Proposal (RFP) was forwarded to consultants. On August 28, 2007, the NUA approved Contract K-0708-42 with RJN in an annual amount not to exceed $150,000. Under this contract, unit prices were provided to perform meter maintenance and install a total of 19 meters. Additional meters were installed at discharges from satellite systems such as mobile home parks and apartment complexes to determine if permanent meters were justified at these locations. Additional meters were also installed to determine wastewater flows prior to and following improvements under the Sewer Maintenance Program (SMP). The NUA approved five amendments extending RJN’s services through August 27, 2014. Over that time, unit prices for data collection and reporting increased from $390 to $437 per meter per month; an average annual increase of 1.6%.
Historically, RJN has been the only qualified firm interested in performing the work and they continue to provide a competitive price due to familiarity with the equipment, software and metering locations. For these reasons, staff requested that RJN provide a new contract to be renewed annually for NUA consideration. The NUA approved Contract K-1415-34 with a “not to exceed” amount of $228,414 based on a continued maintenance, data collection and reporting for a total of 18 meters for 12 months plus purchase and installation of 9 new meters. The eighteen (18) metering installations include nine meters for OU billing purposes, seven meters to measure dry and wet weather flow data from interceptors entering the Water Reclamation Facility (WRF) and two additional meters for sewer rehabilitation evaluation under the Sewer Maintenance Plan (SMP). This contract has been amended four times extending the monitoring period through August 31, 2019.
DISCUSSION: The existing metering equipment at each of nine OU monitoring locations was originally installed in 2002 and was replaced in 2016 to ensure collection of accurate flow data for billing purposes. The OU wastewater-metering program generated $903,290 in revenue for the 12 months ending in July 2017. The WRF interceptor meters were originally installed in 2010; six of these meters are being replaced in the near future under this amendment.
Amendment No. 5 to Contract K-1415-34 with RJN Group, Inc. will extend flow-monitoring services through August 31, 2020 for a contract amount not to exceed $150,000. The unit costs for purchase and installation, engineering and maintenance to perform flow-monitoring services are detailed in Attachment C to the amendment. As noted, the estimated amount for the next 12-month period is $194,068; this includes the purchase of six new meters. However, our existing purchase order with RJN has sufficient funding to cover the difference between the estimated amount and the proposed “not to exceed” amendment amount of $150,000.
The Fiscal Year Ending 2020 (FYE20) budget included new funding of $155,000 in Water Reclamation Fund, Professional Services (account 032-5552-432.40-99). This is sufficient to cover the proposed not-to exceed amount of $150,000.
RECOMMENDATION: Staff recommends approval of Amendment No. 5 to Contract K-1415-34 with RJN Group, Inc. in an amount not to exceed $150,000.