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AMENDMENT NO. ONE TO CONTRACT K-1415-34: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND RJN GROUP, INC,. INCREASING THE CONTRACT BY $154,998 FOR A REVISED CONTRACT AMOUNT OF $383,412 TO PROVIDE PERMANENT WASTEWATER FLOW METERING SERVICES AND EXTENDING THE CONTRACT UNTIL AUGUST 31, 2016.
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BACKGROUND: In October 23, 2001, 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. Contract K-0102-50 was amended several times in subsequent years to authorize continued maintenance, data collection, and reporting.
The program began with the installation of 10 flow meters at discharge points serving the University of Oklahoma (OU). The wastewater metering program generated $895,888.50 for the 12 months ending in October 2014; new sewer rates were implemented in November 2013.
After five years, a Request for Proposal (RFP) was forwarded to interested engineering firms. On August 28, 2007, Contract K-0708-42 for Permanent Wastewater Flow Metering services was awarded to RJN in an annual amount not to exceed $150,000. Under Contract K-0708-42, additional unit prices were provided to perform meter maintenance, if necessary, and install a total of 19 meters. Additional meters were installed at discharges from several satellite systems such as mobile home parks and apartment complexes to determine if permanent meters were justified at these locations. Additional meters were installed to determine wastewater flows prior to and following improvements under the Sewer Maintenance Program (SMP) to determine the effectiveness of the sewer main replacements.
The NUA approved five amendments to Contract K-0708-42 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.
DISCUSSION: The NUA approved Contract K-1415-34 with a “not to exceed” amount of $228,414 on September 23, 2014. It was based on a continued maintenance, meter repairs, data collection and reporting for a total of 18 meters for a duration of 12 months at an estimated cost of $147,687; additionally, RJN purchased and installed 9 new meters at an estimated cost of $80,727.
The new unit price for monthly monitoring and data collection had an increase of 3% from $437 to $450 per meter per month. 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).
The existing metering equipment for OU was originally installed in 2002; installation of new metering equipment at each of nine OU monitoring locations will ensure continued collection of accurate flow data for billing purposes. The WRF interceptor meters were originally installed in 2010; these meters will remain in service and, if required, will be repaired by utilizing spare parts from the older metering equipment removed from service.
The RJN Group, Inc. agreed to extend current unit costs in Amendment No. 1 to Contract K-1415-34 for the service and data management agreement. The unit price for engineering, maintenance, and installation services to perform flow monitoring services will remain at $450.00 per meter for a period from September 1, 2015 through August 31, 2016.
The Fiscal Year Ending 2016 (FYE16) budget includes $250,288.00 in account 032-5552-432.40-99 Water Reclamation Fund, Professional Services and is sufficient to fully fund Contract K-1415-34 with RJN.
RECOMMENDATION: Staff recommends approval of Amendment No. 1 to Contract K-1415-34 with RJN Group, Inc. in an amount not to exceed $154,998.