HomeMy WebLinkAbout04/21/2020 Motion to accept bid for Water Meter Services in an amount not to exceed $149,596.70.8/20/2020 BoardDocs® Pro
Agenda Item Details
Meeting Apr 21, 2020 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m.
%Ca teg o ry 9. VILLAGE MANAGER'S REPORT
Subject 9.1 Motion to accept bid for Water Meter Services in an amount not to exceed $149,596-70.
Access Public
Type Action
Preferred Date Apr 21 2020
Absolute Date Apr 21, 2020
Fiscal Impact Yes
Dollar Amount 149,596.70
Budgeted Yes
Wriget Source Water and Sewer Fund
Recommended Action Accept the proposal for Water Meter Services as submitted by HBK Water Meter Services of
Rolling Meadows, Illinois in an amount not to exceed $149,596-70.
Public Content
V r, T COT F "IT. 1 =
In order to limit water loss or unaccounted water consumption in the Village -Owned potable water distribution
system; Public Works routinely performs water meter testing, water meter replacements and meter repairs on a
scheduled basis.
This work generally requires access to water meters installed behind locked doors on private property. As 2
consequence; it is often necessary to schedule appointments with property owners prior to performing this task.
In addition to this work; inspections of sump pumps and storm water conveyances installed on private property are
also performed. These inspections are required by Village Code and are pursuant to the Village's Long -Term
Maintenance obligations under the Metropolitan Water Reclamation District of Greater Chicago (MWRDGC) Sewer
Ordinance. The MWRDGC requires that the Village inspect at least 2% of all single family homes each year.
Also, included is the identification of the type of pipe material used in the water service as this is a State of Illinois
regulation being implemented by the Illinois Department of Public Health and the Illinois Environmental Protection
Agency as part of lead and copper mitigation efforts. All of this work will be scheduled in one appointment to reduce
the inconvenience to the property owner.
The scope of work also includes significant outreach to solicit customer appointments. Up to three (3) attempts t1f:
schedule appointments are required for each meter. The successful contractor is also required to enter asset inventory
data and testing records directly into the Public Works Department work management software (Cartegraph) via a
virtual private network (VPN) computer connection.
The Village has awarded a multi-year water meter testing,, replacement and repair contracts since 1985. The clear
water inspection of sump pumps and downspouts was added in 1999.
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past,In the - water meterreplacement program •-• out .!! • :11.911 meters annually. Since tht
automated water meter reading (AMR) system effort was completed, the number of water meters to be replaced each.
year has been -• to 500-600 meters.
Additionally, approximately 120 commercial ter meters are annually tested for accuracy in accordance with national
standards.
Staff prepared a detailed set of specifications for each of the efforts and requires that the contractor maintain unit
pricing for the three-year contract period. No price increases will be allowed during the three-year period. A copy of
the specifications is attached.
The successful contractor is required to be a licensed plumbing contractor in the State of Illinois and to employ
properly plumbers to perform •
The Water Meter Services bid was sent to five (5) firms and the notice to bidders was posted on the Village's website
using the Demandstar online bid service. The companies that received the bid specifications were Professional Meters,,
Inc., Vanguard Utility Services, Inc.,, HBK Water Meter Services,, Inc.,, M.E. Simpson and Calumet City Plumbing Co.
Sealed bids were received on April 6, 2020. One (1) contractor submitted a bid for this project., two declined and two
were unresponsive. HBK Water Meter Services,, Inc. of Rolling Meadows was the contractor to submit. M.E. Simpson
and Professional Meters, Inc. were the two contractors to decline and Calumet City Plumbing Co. Inc. and Vanguard
Utility Service t • not respond.
Meter Installation /
Replacement
HBK
HBK
Meter size
QTY
Price
Extended Price
5/8" x 1/2" or 3/4" M25 Badger
AMR
0
$100.00
3/4" M35 Badger AMR
5
$100.00
$500.00
1" M55 Badger AMR
42
$115.00
$4,830
1-1/2" Metron with Innov8
Register
92
$175.00
$16,100
2" Metron with Innov8 Register
5
$248.00
$1,240
3" Metron with Innov8 Register
2
$375.00
$750.00
4" Metron with Innov8 Register
1
$470.00
$470.00
Water Meter Body Exchange
and endpoint re -install - 5/8 -
3/411or 1 flat rate fee per
meter size
453
$105.00
$47,565.00
5/8" PDM
5
$25.00
$125.00
3/4" PDM
5
$25.00
$125.00
1" PDM
5
$33.00
$165.00
1-1/2" PDM
1
$43.00
$43.00
2" PDM
1
$137.00
$137.00
3" PDM
1
$137.00
$137.00
4" PDM
1
$160.00
$160.00
8" PDM
1
$180.00
$180.00
Water Meter Testing / repair
Meter size
1st test
2" Si
40
$175.00
$7,000
2" Compound
$175.00
3" Si
30
$175.00
$5,250
3" Compound
$175.00
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4" Si
30
$275.00
$8,250
4" Compound
$275.00
8" Si
1
$320.00
$320
In -shop Meter Testing
5/8", 3/4", 1", 1-1/2" Meters,
0
$35.00
Village to remove/install meters
5/8", 3/411, 1 ", 1-1/2" Meters,
Contractor to remove/install
0
$325.00
meters
Install Remote Register and
0
$220.00
Meter
With up to 50' cabling
Install Remote AMR and
0
$125.00
Endpoint
With up to 50' Cabling
Broken appointment fee
0
$50.00
Percentage Markup on repair
50%
pa its
Private Building Surveys
Per Survey Site w/ Meter or Meter
300
$60.00
$18,000
body exchange
Per Survey Site W/O Meter or
200
$62.00
$12,400
Meter body Exchange
Re -inspection FEE
150
$55.00
$8,250
Per Mailing Fee
1000
$4.00
$4,000
Grand Total
$135,997
WaterHBK - -r Services submitted a • • •• • in the amountof 1''. of - total bid as required in the • •' • •••
Typically,packet. Their submitted bid was also checked for its accuracy. HBK correctly signed their bids and bid bonds. i
HBK Water Meter Services, Inc. has been the Village's water meter replacement,, meter testing and internal buildin
inspection contractor for previous contracts and has an outstanding record of service with the Village. i
• •' be - to move forward with • - • •; however,,• a rebid would most likelynot
produce a different result. It is the opinion of staff that regulatory requirements and market constraints tend to
limit competition for •
Notably, the Illinois Department of Public Health requires that a vendor must be a licensed plumbing contractor to
complete - -• - -requirement• • on the number of qualified bidders.
- - of - meters • meter testing• •rs completing this worksolely
focusing on -ter replacements and t- • Historically,- • been licensed plumbers.
requirements to become a licensed plumbing contractor- onerous resultin• in a numberof - - replacement
Simpson) to abandon meter -p - - •Illinois.
However, there are firms focusing on meter replacements that have the required plumbing license (i.e. Professional
Meters Inc. (PMI)). Staff conversations with PMI suggest that their business model is based on large volum4
contracts requiring the replacement of thousands of meters in a matter of months. Their business is not as viable
when applied to smaller contracts such as ours. It is seemingly the proverbial "Catch-22" that firms seeking smaller
contracts do not want to take on the State of Illinois licensing requirements while firms; willing to obtain licensing do
not •
inspectionIn addition to meter replacement and testing, the Village also requires the successful contractor to complete an
of each • ••- pump and storm- • The Village combines
with meter-• to minimize the inconvenienceto homeowners by • • • all interiorone
visit. These building inspections, or colloquially - "sump pump" inspections,, are required by the Metropolitan Water
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Reclamation District of Greater Chicago (MWRDGC). Notably, these inspections are not routinely required outside this
MWRDGC service area (Cook County); a constraint that tends to further limit the number of potential bidders. I
The prices submitted by HBK represent a slight increase over the most recent bid submitted in 2017. There have beer
no price increases since 2017. Furthermore, the proposed contract holds prices flat (no increases) for the entire term
no price increases through 2022).
The two primary cost drivers of the current bid are (1) meter body/endpoint replacement and (2) building inspection
with meter replacement. These costs increase 10% and 9% respectively. The consumer price index (CPI) has
increased 5.5% since 2017. Assuming historical escalation., costs at the end of the proposed contract term (2022) will
approximately be the same as costs paid in 2017 when adjusted for inflation.
Finally, it is significant to note that HBK's current bid prices are lower than the second lowest bid submitted in 2017.
Staff is confident that the bid submitted by HBK is responsive and competitive. Further, staff is confident that HBK has
the experience and skills necessary to prosecute the proposed contract successfully.
The total contract for year one (20 20) will be $135,997. The available funding for year one (20 20) of the three-year
contract for the tasks under this bid is $172,214-00. The contract award for year 2021 and 2022 will be limited to
annual funding levels approved by the Village Board. Staff is recommending a 10% contingency be added to the
award to adjust for the actual quantities tested,, inspected and or repaired during the year. This contingency will bring
the contract award amount to $149.,596.70.
Please note that all non -emergency water meter replacements,, tests,, and building inspections have been
temporarily suspended due to COVID-19 contagion concerns. Work requiring interior access to homes and
businesses will not be resumed until conditions warrant. Staff is hopeful that this work can be safely resumed later
this year.
In addition, please be aware that there are no contract minimums or required payments associated with this contract.
If no work is performed, no payment is due. Furthermore, work slated for this year, but not completed, can be
aggregated and carried to subsequent years of the contract without penalty.
OR47M.
1. Accept proposal for water meter service
2. Action at discretion of Village Board. I
Staff Recommendation
Staff recommends accepting the results from the Water Meter Services bid to HBK Water Meter Services of Rolling
MeadowsIllinois in an amount not to exceed $149,596.70 in 2020. Sufficient funds exist in the current 2020 budget
for this project. Expenditures in 2021 and 2022 will be at the contract rates, but limited funds appropriated in 2020
budget
HBK Bid Submital.pdf (1,725 KB) M.E. Simpson response letter.pdf (53 KB)
Water Meter Services Contract Bid Specifications 2020-2022 - Due 4-6-2020.pdf (229 KB)
Administrative Content
Executive Content
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Motion & Voting
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Accept the proposal for Water Meter Services as submitted by HBK Water Meter Services of Rolling Meadows, Illinois
in an amount not to exceed $149,596-70.
Motion by Paul Hoefert, second by Richard Rogers.
Final Resolution: Motion Carries
Yea: Paul Hoefert, William Grossi,, Eleni Hatzis, Colleen Saccotelli., Michael Zadel,, Richard Rogers
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