Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: December 17, 2020
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or his designee, to execute a contract with Texas Meter and Device Company,
LLC, for meter reading services for the Water Department; providing for the expenditure of funds
therefor; and providing an effective date (RFP 7484 - awarded to Texas Meter and Device Company, LLC,
for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-
to-exceed amount of $2,636,000.00).
INFORMATION /BACKGROUND
The proposed contract is for providing manual water meter reading services. The water meter readings
throughout the City are currently collected by City staff that is augmented by contracted meter readers, as
needed. The existing contract for the staff augmentation is a short-term contract to help staff keep up with
the current workload. There are five (5) Full Time Equivalent (FTE) City staff that are currently supported
by two contracted meter readers that collect information from approximately 39,400 water meters monthly,
within the City.
The Water Department is currently reviewing alternatives and assessing feasibility of installation of
automated meter reading equipment and infrastructure that will reduce the overall effort required for manual
meter reading. Given the existing meter reading operation (with contracted meter readers) and the possible
implementation of automated meter reading equipment in the near future, engaging the services of a contract
firm to collect meter readings will help provide a smoother transition to an automated meter system by
providing time to reposition existing City staff.
Implementation of this contract will provide significant saving for rate payers. The estimated annual
expenditure to provide approximately 472,800 reads is approximately $527,200. Utilizing City staff this
cost would be approximately $886,000, therefore contracted reading services will save approximately
$358,800 per year.
Based on the existing number of meters and anticipated 3% growth per year over the next five years, the
recommended NTE for this contract is $2,636,000 for a total five (5) year contract.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
Requests for Proposals was sent to 327 prospective suppliers of this item. In addition, specifications were
placed on the Materials Management website for prospective suppliers to download and advertised in the
local newspaper. Three proposals were received and evaluated based upon published criteria including
compliance with specifications, understanding, and price. Based upon this evaluation, Texas Meter and
Device Company, LLC, was ranked the highest and determined to be the best value for the City.
NIGP Code Used for Solicitation: 961- (Service Only) - Miscellaneous
Services, No. 1 (Not Otherwise
Classified)
Notifications sent for Solicitation sent in IonWave: 327
Number of Suppliers that viewed Solicitation in IonWave: 22
HUB-Historically Underutilized Business Invitations sent out: 21
SBE-Small Business Enterprise Invitations sent out: 109
Responses from Solicitation: 3
Below is the information Texas Meter and Device Company, LLC provided regarding the wages they pay
their employees who will be assigned to the City’s contract.
Position Description Number of Assigned Employees Hourly Rate of Assigned Employees
Meter Reader 6 Employees $21.85 per hour or $0.50 per read at 350
reads per day
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On December 14, 2020, this item will be presented to the Public Utilities Board (PUB) for consideration.
RECOMMENDATION
Award a contract with Texas Meter and Device Company, LLC, for meter reading services for the Water
Department, in a one (1) year, with the option for four (4) additional one (1) year extensions, in the total
five (5) year not-to-exceed amount of $2,636,000.
PRINCIPAL PLACE OF BUSINESS
Texas Meter and Device Company, LLC
Waco, TX
ESTIMATED SCHEDULE OF PROJECT
This is an initial one (1) year contract with options to extend the contract for four (4) additional one (1)
year periods, with all terms and conditions remaining the same.
FISCAL INFORMATION
These services will be funded by Water Operation funds. The City will only pay for items purchased and is
not obligated to pay full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Pricing Evaluation
Exhibit 3: LLC Members
Exhibit 4: Presentation
Exhibit 5: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Brandon Hamby, 940-349-7645.
Legal point of contact: Marcella Lunn at 940-349-8333.