Water Meter Reading Aquila Cont
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MEMORANDUM
May 10, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Water Meter Reading Contract Renewal with Aquila
Finance Director Ken TeKippe recommends City Council approval of a third 5-year
renewal of the City of Dubuque water meter reading contract with Aquila effective
July 1, 2004. The initial agreement began July 1, 1989, and has been automatically
renewed on July 1, 1994 and July 1, 1999.
The number of monthly meters read by Aquila is in the area of 20,900, for a cost of
$9,530 and a total fiscal year expense of approximately $115,000. The City would not
be able to provide this service for the amount currently expended.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
Mike Van Milligen, City Manager
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FROM:
Ken TeKippe, Finance Director
SUBJECT: Water Meter Reading Contract Renewal with Aquila
DATE:
May 5, 2004
INTRODUCTION
The third5-year renewal of the City of Dubuque water meter reading contract with
Aquila will be effective July 1, 2004. The initial agreement began July 1, 1989 and has
been automatically renewed on July 1, 1994 and July 1, 1999. A copy of the original
contract is enclosed.
BACKGROUND
Marge Schemmel, Chris Kohlmann and I recently met with representatives of Aquila to
review a number of contract and service issues. Overall, I believe the City is satisfied
with the services provided by Aquila and with the financial arrangements of the contract.
The City would not be able to provide this service for the amount currently expended.
The number of monthly meters read is in the area of 20,900 for a cost of $9,530 anda
total fiscal year expense of approximately $115,000. The expense for the contract is
part of the meter reads/service activity under Utility Billing and funded by the water
operating fund. A recap of the past four fiscal years expenditures is enclosed
A history of the rates paid by the City and increases based on the consumer price index
follows:
Fiscal Year
Beginning July 1
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Monthly Rate
per Meter
$0.320
0.335
0.350
0.361
0.371
0.381
0.392
0.404
0.413
0.420
0.427
0.442
0.451
0.457
0.464
Percentage
Increase
Initial Contract
4.69
4.48
3.14
2.77
2.70
2.89
3.06
2.23
1.69
1.67
3.51
2.04
1.33
1.53
The rate increase effective July 1, 2004 should be less than 2%.
RECOMMENDATION
Authorization to renew the agreement is requeste~. If you would like additional
information on this agreement, please let me kno'lv.
KT/jg
Enclosures
cc:
Marge Schemmel, Utility Billing Customer Se.rvice Supervisor
Chris Kohlmann, Information Services Manager
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City of Dubuque
Water Meter Reading Contract with Aquila
Expenditure History
I FiscalYear
I 2004 2003 2002 2001
I monthly rate per meter! 0.4641 0.457! 0.451!- 0.4421
July 9,556.84 9,361.39 9,195.81 8,967.43
AuQust 9,750.40 9,579.66 9,577.07 9,603.21
September 9,614.39 9,512.09 9,411.94 9,293.49
October 9,635.39 9,502.04 9,414.65 9,295.26
November 9,598.40 9,546.79 9,414.65 9,291.72
December 9,601.60 9,542.68 9,425.93 9,291.72
Januarv 9,624.89 9,515.28 9,434.95 9,072.93
February 9,578.31 9,534.01 9,443.08 9,152.05
March 9,623.06 9,539.03 9,404.27 9,084.43
Aoril 9,548.62 9,375.38 9,202.44
Mav 9,558.21 9,382.60 9,216.58
June 9,547.25 9,369.07 9,183,88
Fiscal year total 86,583.28 114,287.05 112,849.40 110,655.14
figures represent charges incurred for the month listed
F:\123DATAmnanceIUUIOyIWat"' Mete' Read;ng ContraCl\[AquUa Expenditu,.. FY 01.04.xJs]Sheet1
April 21.2004
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HEI'ER REIID:JNG SER\1IŒS 1IGREEMENI'
THIS AGREEMENI', made and entered into this t/;J day of ~, 1989,
by and between PEOPIES NA'IURAL GAS CCl'1PANY, Division of Utilieorp united
Inc. (hereinafter referred to as "Peoples"), and the CITY OF I:UBUQUE, lemA
(hereinafter referred to as "CUstomer").
WI'INESSEIH '!HAT:
WHEREAS, CUstomer has the need for certain water meter reading
services ("se:rvices"), as more specifically defined herein; and
WHEREAS, Peoples has the necessary personnel and ~ience to perform
such se:rvices; and
WHEREAS, CUstomer desires to engage Peoples to perform the services
and Peoples desires to undertake such performance under the terms,
conditions and provisions hereinafter. set forth.
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NOW, THEREFORE, in consideration of the mutual covenants herein
contained, the parties do hereby agree as follows:
1.
Performance of services.
Peoples shall perform. for CUstomer the
following Services:
a.
Reroute Peoples' gas and Çustomer's water meter routes to
opt:iJnize efficiencies for jointly reading these meters;
b.
Integrate on a daily basis the meter routes for Peoples
and Customer;
c.
Read on a monthly basis all of CUstomer's water meters,
to the greatest extent possible;
d.
Report daily to Olstomer any unusual conditions existing on
Olstomer's metering system (as found in Exhibit B); and
e.
Deliver daily to Olstomer the water meter readings.
2.
Fees.
In consideration of the performance of the Services,
Olstomer agrees to pay to Peoples:
,
"IF'
. ,
a.
A one-time development and conversion fee of
$12.000; and
b.
A monthly fee of 32 cents for each meter with outside remote
read device actually read and 32 cents for all inside meters
scheduled to be read in the given month.
If Peoples fails to read every inside meter at least six (6) times per
contract year, a =edit of 32 cents per meter not read at least this often
times six months shall be =edited to the Olstamer for those. meters not
read, at the end of each contract year.
The monthly service fee and
annUal credit shall be adjusted on each anniversary date of this agreement
to reflect changes, if any, in the Consumer Price Index for all items
(CPI-U) during the previous twelve (12) month period.
'!he adjustments
will be based on the CPI-U found in the u.s. Department of labor Bureau of
Labor statistics monthly report using the 1982-84 = 100 base.
'!he
adjustment for the first, second, third, and fourth anniversary dates will
be calculated as. follows:
Year 2 - 1990 CPI-U
1989 CPI -U x 32 cents = 1990 service fee
Year 3 - 1991 CPI-U
1990 CPI-U x 1990 service fee = 1991 service fee
Year 4 - 1991 CPI-U
1991 CPI -U x 1991 service fee = 1992 service fee
YearS - 1993 CPI-U
1992 CPI-U x 1992 service fee = 1993 service fee
SUbsequent annual adjustments will be calculated in a s:iJnilar manner by
multiplying the then =ent service fee (Le., the fee as adjusted by
previous percentage changes in the CPI-U) by the percentage change in the
CPI -U over the :immediately preceding tweNe months.
3.
Exclusions.
Services shall not include, nor shall the one-tlme
fee and/or the monthly service fee be deemed to compensate Peoples for
service work on water meters.
4.
Nonperformance.
Peoples agrees to provide Customer with meter readings for water users to
the. greatest possible extent. Peoples shall read at a I!IÌIlÌ1I1l1I!\ all meters
with outside read remote devices no less than ten (10) times. per contract
year, but in no case shall outside reads not be read in two successive
moUths .
Peoples shall use its best efforts to read all i11side meters
(those meters without outside read remote devices) no less than six times
per year.
Failure of Peoples to comply with this Paragraph 4 shall
constitute nonperformance of the terms of this Agreement and the CUstomer
-'
shall have the option of negotiating with Peoples an adjusted fee or
termination of this Agreement by written notice thereof to Peoples.
5.
Performance Bond.
Peples shall procure and maintain for the
benefit of CUstomer a performance bond in the aJ!¥JIIDt of $100,000, which
shall assure the faithful performance of all of Peoples' obligations under
this Agrement.
6.
CUstomer's Responsibilities.
Olstomer shall continue its efforts
to install outside read remotes on inside water meter sets.
The
CUstomer's cu=ent goal is to install outside read remotes on inside
meters at a rate of 2,000 each year.
such outside read remote
installations will be placed as near as possible to the outside gas meter
locations.
In addition, Olstomer shall provide to Peoples services and
information in a=rdance with Exhibit A, ~ich is attached hereto and by
this reference made a part hereof.
If Olstomer, three and one half years
from the start of this Agreement, has 500 or more sites without remote
read devises, Peoples shall have the right to negotiate with Olstomer a
new fee for those non-remote sites.
7.
Manner of Pavment.
The one-time fee of $12.000 specified under
Paragraph 2 shall be due and payable on Julv 1. 1989.
The monthly service
fee shall be due and payable on or before the 15th day of the m:>nth
following the month in 1Nhich the Services were performed and shall be
based on the meter read fee as outlined in 2b.
Should CUstomer fail
t:ï.mely to pay part or all of the amounts on these invoices, interest
thereon shall a=rue at the rate of one percent (1%) per month from the
due date until the date of payment.
If such failure to pay continues for
~ (60) days after payment is due, Peoples, in addition to any other
,...;
remedy it may have, may refuse to provide further Services until such
amount, including interest, is paid.
8.
Term.
This Agreement shall become effective as of the date first
hereinabove written and shall continue in full force and effect for a
period of five (2) years (the "Original Tebn"). After the expiration
of the Original Term, this Agreement shall, be automatically renewed for
successive terms of five (2) year(s) each ).mless either party gives
written notice of cancellation to the other party not less than one
hundred eiqhtv (180) days prior to the las1t day of the Original Term, or
a successive term, whichever the case may be.
Peoples shall begin reading
water meters pursuant to this Agreement on July 1, 1989.
9.
Independent Contractor.
In performing the services hereunder,
Peoples shall operate as and have the status of an independent contractor,
subject only to the general direction of CUstomer regarding the Services
to be rendered as opposed to the method of performing the services.
10.
ProPrietarv Infonoation.
Any drawings, documentation,
specifications, prints, designs, ideas or other information provided by
Peoples to Olstomer or otherwise obtained by CUstomer pertaining to the
Services performed hereunder are strictly confidential and proprietary
to Peoples.
Olstomer shall not, without the prior written consent of
Peoples, disclose any such information to a third party or use any such
information for its own benefit except in connection with the operation
of Olstomer's facilities and eqüipment pursuant to this Agreement.
/11.
Assi<mment.
Neither Peoples nor CUstomer shall assign, in 'Whole
or in part, any of the rights, obligations or benefits of this Agreement,
except to a parent, affiliate or 'Wholly-owned subsidiary, without the
prior written consent of the other party.
For purposes of this
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Paragraph 11, an affiliate is defined as a conq:>any, the controlling
interest in which is owned by the parent of a party.
12.
Indemnification.
Peoples shall be liable to Olstomer and shall
save, defend and hold harmless Olstomer for claims, damages, demands,
lOsses, liabilities, costs or expenses including, without l:iJnitation,
reasonable attorneys' fees and other costs and expenses incident. to any
suit, proceeding or investigation of any clam :incurred or suffered by
Olstomer arising out of the rendering of services by Peoples hereunder,
'When such clam is the result of Peoples' fault.
13.
Consequential Daroaqes.
Neither party shall be liable to the
other for any special, indirect or consequential damages, including,
without lmtation, loss of profit, loss of product, and loss of use,
arising out of the performance of this Agreement, i=espective of either
party's fault or negligence.
14.
Force Ma:ieure.
Any delays in or failure of performance by
either party hereto of its duties hereunder (other than the payment of
money), shall not constitute default or give rise to any claims for
dænages if and to .the extent such delays or failure of performance are
caused by occu=ences beyond the control of the party involved, including
but not lmted to, acts of God or the public enemy; expropriation of
facilities, compliance with any law, proclænation, regulation, ordinance
or instruction of any government or unit thereof, including Indian
nations, having or asserting jurisdiction; acts of war; rebellion or
sabotage or dænage resulting therefrom; fires; floods; explosions;
a=idents; riots or strikes; delay by vendors in the delivery of materials
and equipment; delay by construction contractors in performing
,
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construction work; or any other causes, whether or not of the same class
or kind as those specifically named above, which are not within the
reasonable control of the party involved and which, by the exercise of
reasonable diligence, the party involved is unable to prevent or overcome,
provided, however, that such party shall give notice together with full
particulars of such causes or occu=encesin writing or by telegraph to
the other party as soon as practicable after the occurrences and the
causes or occu=ences shall as far as possible be remedied with all
reasonable diligent dispatch by the party cla:iJning such in order to put
itself in a position to carry out its obligation under this Agreement.
15.
Notices.
All notices pertaining. to this Agreement shall be in
writing, and if to Olstomer, shall be sufficient if sent by registered
JŒ!i1 to Olstomer at the following address:
city Hall
city of ThJbuque
1315 Central Avenue
ThJbuque, IA 52001
Attn: Public Works Director
and if to Peoples, shall be sufficient if sent by registered mail to
Peoples at the following address:
Peoples Natural Gas Company
1815 Capitol Avenue
Omaha, NE 68102
Attn: Tim Connealy
Eit;l}er party may change its address for purposes of this Paragraph by
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giving the other party hereto written notice of the new address in the
manner set forth above.
16.
Invaliditv of Provision.
Peoples and CUstomer agree that. if . any
term or provision of this Agreement is held by any court to be illegal. or
.,.)
unenforceable, the remaining terms, provisions, rights and obligations
shall not be affected and shall remain in full force and effect.
17.
Governincr Law.
This Agreement shall be construed and enforced in
a=rdance with the laír15 of the state of Iowa.
18.
Non-waiver.
No waiver by any party of anyone or more defaults
by the other in performance of any of the provisions of this Agreement
shall operate or be construed as a waiver of any other existing or future
default or defaults, whether of a like or a different character.
19.
Entire Aqreement .
This Agreement, including all exhibits, sets
forth the entire understanding of the parties and supersedes all prior
agreements, communications, representations or warranties, whether oral or
written, by any officer, employee or representative of either party.
20.
Amendment .
No modification or amendment of this Agreement shall
be binding upon either party unless in writing and signed by both parties.
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21.
n><:TnnP't" as a I1tef~. Pecç1es shall have the right to use
0Jstcmer asa ref~ and to ~ visits to OJstaœr's facilities,
with OJstaœrIS prior Ia'DoIleà;Je an:i a:nsent, by ¡:otenti.al users of
services siJDi1ar to the Services provided by ~les urDer this ~.
22.
Ri chts to Pra:ertv an:i ~ ~ . Arr¡ and all caIpJter prcgrams,
licenses, dcx:umentatia1, prccedures an:i inrt::ructia1 deIIel.cçed. an:l used by
~les in providing the Services are am shall remain the sole prcperty
of ~les. 0Jstaœr shall have no rights 1òhatsoeller to su::h prcperty.
m WI'INESS ærnEDF, the parti.És have caused this }qreement to be
e:xec:ut:ed by their duly autb:Iriza1 officers as of the day and year first
above written.
HDP!ES NMURAL G1;S o:::HPAI«,
Divisia1 of Utilieorp united Inc.
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I¥. (JIY.L~ ) .\. ~
Title:
Attest: i~-1 C<Þ:I
Titl~¡ "J
j/12wW'32789
'IHE ClT'i OF .DJB.QJE, Ia<IA
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