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AMENDMENT NO. FOUR TO CONTRACT K-1415-34: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND RJN GROUP, INC., INCREASING THE CONTRACT BY AN AMOUNT NOT-TO-EXCEED $169,398 FOR A REVISED CONTRACT AMOUNT OF $869,560 TO PROVIDE ADDITIONAL ENGINEERING, MAINTENANCE, REPAIR, INSTALLATION AND REPORTING SERVICES ASSOCIATED WITH PERMANENT WASTEWATER FLOW METERING EQUIPMENT AT EIGHTEEN (18) LOCATIONS THROUGHOUT NORMAN THROUGH AUGUST 31, 2019.
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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. Contract K-1415-34 was approved by the NUA on September 23, 2014, in an amount not to exceed $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 three times to extend the monitoring period through August 31, 2018.
The WRF interceptor meters were originally installed in 2010; these meters remain in service and, if required, will be repaired by utilizing spare parts from the older metering equipment removed from service. The existing metering equipment at the OU monitoring locations were originally installed in 2002 but were 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.
DISCUSSION: RJN Group, Inc. has agreed to extend current unit costs from Amendment No. 3 to Amendment No. 4 to existing Contract K-1415-34. The unit price for engineering, maintenance, and installation services to perform flow metering services will remain at $450 per meter per month for the period from September 1, 2018 through August 31, 2019 with a “not to exceed” amount of $169,398. The estimated amount for the next 12 month period is detailed in the amendment.
The Fiscal Year Ending 2019 (FYE19) budget included new funding of $155,000 in account 032-5552-432.40-99, Water Reclamation Fund, Professional Services; the budgeted amount is not adequate to cover the entire estimated not-to exceed amount of $169,398 with RJN. However, the existing on-going purchase order with RJN is sufficient to cover the $14,398 difference between the budgeted and estimated amounts. Therefore, it is recommended that the budgeted amount of $155,000 be encumbered to fund Amendment No. 4 to Contract K-1415-34.
RECOMMENDATION: Staff recommends approval of Amendment No. 4 to Contract K-1415-34 with RJN Group, Inc. in an amount not to exceed $169,398.