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Mount Prospect Public Works Department
INTEROFFICE MEMORANDUM
TO: VILLAGE MANAGER, MICHAEL E. JANONIS
FROM: DIRECTOR OF PUBLIC WORKS
DATE: MAY 14, 2014
SUBJECT: RESULTS OF WATER METER SERVICES BID ($123,860)
BACKGROUND
In order to limit water loss or unaccounted -for water consumption in the Village -owned potable water
distribution system, Public Works routinely performs water meter testing, replacements, and repairs on a
scheduled basis.
This work generally requires access to meters installed behind locked doors on private property. As a
consequence, it is necessary to schedule appointments with property owners prior to performing the work.
Commensurate with this work, inspections of sump pumps and storm water conveyance systems installed
on private property are also performed. These inspections are required by Village Code and are pursuant
to the Village's Long Term Maintenance Agreement with the Metropolitan Water Reclamation District of
Greater Chicago (MWRDGC). Sump pump inspections and meter work are performed at the same time,
during a single appointment, in order to reduce inconvenience for property owners.
The Village has awarded a water meter testing, replacement, and repair contract utilizing a competitive
bidding process since 1985. Sump pump inspections have been included in the scope of this contract
since 1999.
Annually, 500 -800 properties are targeted for water meter replacements and sump pump inspections
under this contract. Additionally, approximately 120 commercial water meters, ranging in size from 2"
diameter to 8" diameter, are tested each year.
Staff prepared a detailed set of specifications and bid documents for this proposed contract. These
documents stipulate that the successful bidder will maintain their pricing for the entire contract period.
No price increases are allowed. The current bid documents differ from prior versions as follows:
Each water meter replacement will include installation of a water meter and an end point
(module) that will be compatible with the Village's automated meter reading system (AMR).
Year 1 of the proposed contract (2014) will include an additional 32 water meter replacements
These meters are larger 3" — 8" meters that must be replaced in order to be compatible with the
Village's AMR system. This expense was previously presented for the Village Board's
consideration in a memorandum dated September 25, 2013 and discussed at the October 1, 2013
Regular Meeting. Years 2 and 3 of the proposed contract return the volume of work to traditional
levels (500 -800 meters /inspections per year).
Page 2 of 4
RESULTS OF WATER METER SERVICES BID ($123,860)
MAY 14, 2014
• The successful bidder is required to be a Licensed Plumbing Contractor in the State of Illinois.
This qualification was added pursuant to direction received from the Illinois Department of
Public Health State Plumbing Inspector in December 2013.
BID RESULTS
A bid for this work was let in April 2014. Six (6) water meter service vendors were invited to bid. The
bid notice was advertised in a local newspaper as required by the Village Purchasing Policy. One (1)
additional vendor requested a bid packet. A total of seven (7) bids were distributed.
Bids were received on May 5, 2014, opened, and read aloud. Only one (1) bid was received from HBK
Water Meter Service, Inc. of Palatine, Illinois. The results of the bid and the extended costs for 2014
planned work are as follows:
Bid Item
Meter Replacements
Quantity
Bid
Extension
5/8" x 3 /4 " diameter
575
$84.00
$48,300.00
1" diameter
65
$95.20
$6,188.00
3" diameter
20
$212.00
$4,240.00
4" diameter
10
$331.50
$3,315.00
6" diameter
1
$424.00
$424.00
8" diameter
1
$750.00
$750.00
Meter Testing
85
Varies*
$15,000.00
Sump Pump Inspections
631
$50.40
$25,000.00
Sub - Total:
$103,217.00
Re- Inspections & Missed
Appointments Allowance
20%
$20,643.00
Total:
$123,860.00
DISCUSSION
Staff attempted to contact the six remaining bid holders to find out why they did not submit a bid. The
results of these inquiries are as follows:
• Vanguard Utility Service Owensboro, Ky: Could not satisfy Illinois Licensed Plumbing
Contractor requirement.
• M.E. Simpson Valparaiso, IN: Could not accommodate work load.
• Wachs Water Services Buffalo Grove, IL: Could not satisfy Illinois Licensed Plumbing
Contractor requirement.
• Calumet City Plumbing Calumet City, IL: Concluded that they could not be cost competitive
staging crews out of the south suburbs.
• Professional Meters, Inc ., Morris, IL: Did not respond.
• Utility Partners of America Greenville, SC: Did not respond.
Page 3 of 4
RESULTS OF WATER METER SERVICES BID ($123,860)
MAY 14, 2014
The bid results present an increase of approximately 12% when compared to the most recent contract
(2012 -2013) for water meter services. For example, the lowest cost price currently proposed for the
replacement of a 5/8" x 3 /4" water meter is $84.00. The cost for the same work in the most recent water
meter services contract was $75.
This contract has been publicly let on more than a dozen occasions since 1985. Analysis of these
cumulative bid results indicate that geographic proximity to the work, the requirement to perform sump
pump inspections, the requirement to report work utilizing an interface with the Village's computer
system, and, most recently, the State of Illinois Licensed Plumbing Contractor requirement are all factors
that influence the number of bidders.
Contractors have explained that the most cost effective method to perform the work is to schedule
appointments consecutively. Unfortunately, since appointments are largely determined by the
availability of private property owners, it is often not feasible to organize substantive batches of
work. As a result, contractors that have to travel greater distances to the work face higher costs
for transportation and idle time.
Contractual performance of sump pump inspections are an oddity. Very few communities utilize
water meter plumbing contractors to perform this work. As a consequence, few contractors are
prepared to perform them. Most indicate a preference to avoid the training, job time, and back -
office tasks necessary to perform sump pump inspections as well as the follow -up work necessary
to achieve compliance. However, it is the opinion of staff that there is significant value, most
notably reduced customer inconvenience, in bundling sump pump inspections with water meter
work.
Our bid documents also stipulate that the successful contractor will utilize a virtual private
network (VPN) connection with the Public Works Department's computerized infrastructure
management system (Hansen) to document work progress, update meter records, report test
results, and file sump pump inspections. There are no hardware or software costs associated with
this requirement, but the work does require training and back -office support over the life the
contract. Contractors have expressed a preference to report work utilizing their own database and
reporting systems. However, it is the opinion of staff that reduced data entry and improved data
accuracy are valuable benefits of an interface with the Village computer system.
Finally, the most recent bid results indicate that some contractors do not hold the Illinois
Plumbing Contractor License required by the Illinois Department of Public Health for firms
engaged in this type of work. Apparently, this requirement is not well publicized. For the short
term, it appears that this requirement will limit qualified bidders.
HBK Water Meter Service, Inc. has been the Village's water meter replacement contractor and meter
testing service provider for previous contracts and has an outstanding record of service with the Village.
HBK Water Meter Service, Inc. has previously performed all of the tasks outlined in a satisfactory
manner.
Sufficient funds exist in the current budget for the proposed 2014 expenditure. The contract awards for
2015 and 2016 will be limited to annual funding levels approved by the Village Board.
Page 4 of 4
RESULTS OF WATER METER SERVICES BID ($123,860)
MAY 14, 2014
RECOMMENDATION
I recommend that the Village Board accept the lowest responsible bid for specified water meter services
as submitted by HBK Water Meter Services of Palatine, Illinois for an amount not to exceed $123,860 in
contract year 2014. Expenditures in 2015 and 2016 will be limited to amount authorized in the Village
budget.
P. Dorsey
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