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AMENDMENT NO. TWO 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 $538,410 AND EXTENDING THE CONTRACT UNTIL AUGUST 31, 2017, IN ORDER TO CONTINUE PERMANENT WASTEWATER FLOW METERING SERVICES.
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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. The program began with the installation of 10 flow meters at discharge points serving the University of Oklahoma (OU). Contract K-0102-50 was amended several times in subsequent years to authorize continued maintenance, data collection, and reporting. During Fiscal Year Ending June 30, 2016 (FYE16), wastewater metering of OU facilities generated approximately $1.15 Million.
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 and install a total of 19 meters. Meters were installed at discharges from several additional 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) to assess 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 in 2014 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 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 to replace the original metering equipment for OU installed in 2002 at an estimated cost of $80,727. With this contract, the unit price for monthly monitoring and data collection increased 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).
On August 25, 2015, the NUA approved Amendment No. 1 to Contract K-1415-34 with RJN with a “not to exceed” amount of $154,998. The cost was based on a continued maintenance, meter repairs, data collection and reporting for a total of 18 meters for duration of 12 months. Amendment No. 1 added another year of services, and the costs associated therewith, to the contract.
DISCUSSION: Amendment No. 2 will add another year of engineering maintenance and installation services, and the costs associated therewith ($154,998) to the contract. RJN Group, Inc. has agreed to extend current unit costs in proposed Amendment No. 2 to Contract K-1415-34 for the service and data management agreement. Unit costs this year are anticipated to be $154,998. Attachment B to the Amendment details the scope of services while Attachment C details the unit prices for engineering, maintenance, and installation services to perform flow monitoring; the unit price for monthly monitoring and data collection will remain at $450.00 per meter for the period from September 1, 2016 through August 31, 2017. Exhibit 1 illustrates the current locations of the flow metering equipment to be maintained by RJN. This amendment, along with the services provided in the first and second years of the contract, brings the total contract amount to $538,410.
The Fiscal Year Ending 2017 (FYE17) budget includes an unencumbered balance of $155,000 in (account 032-5552-432.40-99) Water Reclamation Fund, Professional Services (account 032-4442-432.40-99) and is sufficient to fully fund Amendment No. 2 to Contract K-1415-34 with RJN.
RECOMMENDATION: Staff recommends approval of Amendment No. 2 to Contract K-1415-34 with RJN Group, Inc. in an amount not to exceed $154,998.