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R2001-0083 06-25-01 RESOLUTION NO. R2001-83 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A CONTRACT WITH ECO RESOURCES, INC., FOR PROVISION OF METER READING SERVICES. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain contract by and between the City of Pearland and ECO Resources, Inc., a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest a contract with ECO Resources, Inc., for provision of meter reading services. PASSED, APPROVEDandADOPTEDthisthe 25 dayof June A.D., 2001. c~'~,¢'~'"'/ "'~-~-~ TOM REID MAYOR ATTEST: APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY A PROFESSIONAL SERVICE CONTRACT BETWEEN ECO RESOURCES, INC. AND THE CITY OF PEARLAND Submitted By: ECO Resources, Inc. June, 2001 AGREEMENT BETWEEN THE cITY pEARLAND, TEXAS AND ECO RESOURCES, INC., PROVIDING FOR METER READING; WATER, SEWER, GARBAGE BILLING AND COLLECTION SERVICES; AND CONNECTION-DISCONNECTION SERVICES This AGREEMENT is entered into as o£this a~. ~- ~j'~ day of~, 2001, by and between the CITY OF PEARLAND, TEXAS (PEARLAND) and ECO RESOURCES, INC. (ECO). RECITALS PEARLAND owns a water utility used to provide water and wastewater services to its customers located within, or adjacent to, the city limits of Pearland in Brazoria, Fort Bend and Harris Counties, Texas, including municipal utility districts within the city limits. PEARLAND and ECO wish to enter into this Agreement to provide for the ECO to perform meter reading services for PEARLAND's water distribution and wastewater collection water utility. In consideration of their mutual promises, the parties agree as follows: ARTICLE I. DEFINITIONS, EXHIBITS AND SPECIAL CONDITIONS A. Definitions. Additional Contract Services means those services provided to PEARLAND by ECO under this Agreement that are not Base Contract Services. Agreement or Contract means this agreement or contract. Base Contract Services means all the services provided to PEARLAND by ECO under this Agreement for a specified sum paid monthly by PEARLAND to ECO as provided in this Agreement. Pearland Utility Service Contract/Page 1 Water Utility Capital Improvement means any planned work, parts, or equipment for the Water Utility for which funds have been appropriated in PEARLAND's approved budget. City means the City of Pearland, Texas, a municipal corporation. Contract Year means each August 1 to the following July 31 during the Contract Term. Current Employee means an employee of PEARLAND used to provide the services contemplated to be provided by ECO under the terms of this Agreement, who was employed by PEARLAND in that assignment on April 1, 2001 and remains continuously employed by PEARLAND to the transition date of this Agreement. Transition Date means the date on which ECO assumes responsibility for the services contemplated by this Agreement. B. Exhibits. The following listed exhibits, which are attached to this Agreement, are provided to establish standards applicable to this Agreement and are included in this Agreement for guidance. Standards for performance, training and reporting may be changed from time as necessary to improve or maintain a high level of efficiency, performance, safety of PEARLAND funds and communication between the parties. Exhibit A - Meter Reading Standards Exhibit B - Meter Reading Training Standards Exhibit C - Transition Plan Exhibit D - Personnel and Equipment Rate Schedule C. Amendment of Exhibits. The representatives of PEARLAND and ECO may by mutual agreement amend a provision contained in an exhibit that relates solely to the manner or method of performing an obligation or requirement of this Contract without the approval of PEARLAND's city Pearland Utility Service Contract/Page 2 council or ECO, if the amendment does not change the amount of compensation to be paid by PEARLAND under this Agreement, materially change the scope or type of work required of ECO, or materially increase the obligation of either party. Any exhibit amended under this provision shall be dated and signed by a representative of each party and attached to this Agreement. D. Transition of Current Employees. ECO agrees that PEARLAND may retain any of its Current Employees and transfer them for other duties with PEARLAND. ECO agrees that it will offer employment to all Current Employees not retained by PEARLAND subject to ECO's standard employment physical, drug screening, and for those individuals operating a motor vehicle on the job, a review of their driver's license record with the Texas Department of Motor Vehicles. Current Employees transferring to ECO shall be receive a minimum of their PEARLAND wage with ECO company benefits, and credit towards longevity benefits with ECO on a day-for-day basis for the time of their continuous of employment by PEARLAND immediately prior to the date of transition. E. Use of City Meter Reading Equipment. In the performance of its monthly meter reading services ECO will utilize PEARLAND's Schlumberger "Routemaps" system including associated / software, five (5) handheld meter reading devices and five (5) touchpad meter reading devices.~/ 4'/¥. PEARLAND will receive a credit of $414.5 8 applied to ECO s monthly invoice ($4,,5.~per year.} for each month that this system is used by ECO for meter reading. All labor and other equipment shall be provided by ECO and will be reimbursed monthly for the costs of labor and equipment used in the performance of the services contemplated by this agreement, in the amounts enumerated in Section VII, Compensation, Ac[iustments and Billing. Pearland Utility Service Contract/Page 3 ARTICLE II. CONTRACTOR'S SCOPE OF SERVICES. METER READING SERVICES. ECO will read accessible water meters served by PEARLAND's water system once each calendar month, using PEARLAND's existing four-cycle meter reading schedule. ECO will maintain a quality assurance program to maintain reading accuracy within 1% of the total meters read. This program will consist of supervisory field verification for quality control and software/hardware checks and balances. Client Relations Manager. ECO shall, during the term of this Contract, appoint a Client Relations Manager to be responsible for any matter relating to ECO's performance under this Contract. The Client Relations Manager shall be available at all reasonable times upon the request of PEARLAND to review any issues relating to the performance of this Agreement. Access. PEARLAND shall have access to alt areas of the Water Utility used by ECO in the performance of this agreement at all times to monitor or inspect ECO's performance of the services contemplated by this Agreement. ARTICLE III. PERSONNEL AND SUBCONTRACTORS A. Customer Complaints. ECO shall take the necessary steps to insure that its employees and subcontractors are courteous and responsive to all PEARLAND's Water Utility customers in performing the services provided for in this Contract. ECO shall promptly investigate any customer complaint regarding ECO's employees or subcontractors and take appropriate action to address the complaint. ECO shall make a written report to PEARLAND regarding any such complaint and the action taken, if any. Pearland Utility Service Contract/Page 4 B. Employee Competency. ECO shall use competent and qualified persons who are experienced in water and wastewater meter reading. Any work or repair performed by ECO shall be properly supervised by ECO so that the work or repair is performed in an efficient, expeditious, and workmanlike manner. All ECO's employees and subcontractors operating or performing any work or repair to the Water Utility, will be, where required by law or regulation, hold the required certificate or be directly supervised by persons holding the required certifications. When requested by PEARLAND, ECO shall provide a summary of the qualifications and experience of ECO personnel used to perform this Agreement. Where required by law or regulation, ECO shall notify the TNRCC of any personnel operating within the Water Utility. C. Employee Identification. Employees of ECO shall readily identify themselves when communicating with PEARLAND and PEARLAND's customers. Personnel shall possess picture identification cards and wear distinctive clothing beating ECO's name. All ECO's employees shall wear their picture identification cards when calling on customers. All ECO's vehicles used in the performance of this Agreement shall display ECO's name. ARTICLE IV. INDEMNITY ECO SHALL INDEMNIFY AND HOLD PEARLAND, ITS ELECTED OFFICIALS, OFFICERS, AGENTS, AND EMPLOYEES, HARMLESS FROM ANY CLAIMS, LOSS, DAMAGE, SUIT, AND LIABILITY OF EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND ATTORNEY'S FEES, FOR INJURY TO OR DEATH OF ANY PERSON, OR FOR DAMAGE TO ANY PROPERTY, CAUSED BY THE WILLFUL, INTENTIONAL OR RECKLESS NEGLIGENT ACTS OR OMISSIONS OF Pearland Utility Service Contract/Page 5 ECO~ ITS OFFICERS~ EMPLOYEES~ AGENTS~ OR SUBCONTRACTORS IN THE PERFORMANCE OF THIS AGREEMENT. ARTICLE V. INSURANCE AND CLAIMS A. ECO shall procure and maintain during this Agreement insurance against claims for injuries to persons or damages to property relating to the performance of this Agreement by ECO, its officers and employees as follows: (1) Workers Compensation as prescribed by law. (2) Comprehensive General Liability, including coverage of the following risks, in amounts no less than: (a) Umbrella Coverage $2,000,000 (b) Bodily Injury $2,000,000 (c) Property Damage $1,000,000 (including automobile and pollution coverage) (3) Crime Coverage $1,000,000 (Covers criminal or fraudulent acts of employees) B. ECO shall include PEARLAND as an additional insured under the policies. Certificates of Insurance and endorsements shall be furnished to PEARLAND within ten (10) days of the beginning of this Agreement. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to PEARLAND. Upon request, certified copies of all insurance policies shall be furnished to PEARLAND. Pearland Utility Service Contract/Page 6 C. ECO shall notify PEARLAND of any claim filed against ECO relating to the operation of the Water Utility or arising from any activity of ECO or its subcontractors in the performance of this Agreement. ECO shall promptly submit any claim involving the act or omission of ECO to its insurance carder. ARTICLE VI. COMPENSATION~ ADJUSTMENTS~ AND BILLING A. Initial Monthly Compensation for Base Contract Services. The annual fee for all services rendered in Article II of this agreement is $88,985. PEARLAND agrees to pay to ECO for its services the amount of $ 7,408.00 per month during the first Contract Year. B. Annual Adiustments in Monthly Compensation for Base Contract Services. On the beginning date of the second Contract Year and on the beginning date of every succeeding Contact Year of this Agreement, the monthly compensation to be paid by PEARLAND to ECO for Base Contract Services shall be adjusted by adding thereto an amount determined by multiplying $0.71 times the total number of water meter connections added to that portion of the Water Utility located within PEARLAND's Water Utility during the preceding Contact Year. C. Billing and Payment. ECO shall bill PEARLAND by the tenth (10) day of each month for all services rendered and any previously nnbilled Additional Contract Services. PEARLAND shall pay ECO's undisputed billing within thirty (30) days of receipt of the invoice. Interest shall accrue at the prime rate of interest per annum, as published in the Wall Street Journal on the date of invoice, on the amount of any undisputed bill not paid by PEARLAND within (30) days of receipt. D. Utility Costs. PEARLAND shall pay the cost of installing and providing electric, water, wastewater, telephone, and natural gas services to the Water Utility's facilities. Pearland Utility Sea, ice Contract/Page 7 E. Ad.iustments to Scope of Work. If any changes in the scope of work within the Water Utility contemplated by this Agreement should occur, including, but not limited to, changes in governmental regulations, reporting requirements and City standards that change the cost of Contract operations, the affected party may request an adjustment to monthly compensation. Such change in compensation will be negotiated in good faith by PEARLAND and ECO within 30 days of receiving such request from the affected party. F. Additional Contract Services. PEARLAND may, at its sole discretion, request that ECO perform additional work not contemplated by this Agreement during its term. If ECO agrees to perform the additional contract services, those additional contract services will be invoiced to PEARLAND at the rates for personnel and equipment presented in Exhibit D. ARTICLE VII. TERM AND TERMINATION A. Term. This Agreement shall be effective on August 1,2001, and shaI1 remain in effect until July 31, 2004. Thereafter, this Agreement shall automatically renew for successive one (1) year periods, subject to the fight of either party to terminate by giving written notice of termination to the other party no sooner than one hundred twenty (! 20) calendar days prior to the expiration date o fthis Agreement. Wherever this Contract specifies that ECO will perform any act or acts in a Contract Year, ECO's obligation to perform the act or acts shall begin with the first Contract Year following the effective date of this Agreement. B. Termination. Either party may terminate this Agreement for breach by the other party, or for failure to perform to the standards set forth by the Contact to the satisfaction of the terminating party, provided that such terminating party first provides written notice of the breach or failure to Pearland Utility Service Contract/Page 8 perform to the other party and the breach or failure to perform is not corrected within sixty (60) calendar days from the date notice is given. In the event the parties cannot agree as to the resolution ora notice of breach or failure to perform within 30 days following receipt of such notice, they agree to submit the matter for mediation, at the written request of either party, before a mediator agreed upon by both parties, prior to the forty-fifth (45) day following such notification. Each party shall pay one-half of the cost of such mediation. Upon termination, PEARLAND shall pay ECO for all services rendered up to the date of termination, prorated for less than a full month, if applicable. C. Funding Out Clause. This Agreement is subject to annual funding by the PEARLAND City Council. PEARLAND agrees that funding will not be unreasonably withheld, such as transferring funds within the City's accounts to pay others for the services contemplated herein, or other such subterfuges. ARTICLE VIII. MISCELLANEOUS A. Force Majenre. ECO shall not be deemed to be in default if performance of this Agreement is delayed, disrupted, or becomes impossible because of any act of God, war, earthquake, fire, strike, accident, civil commotion, epidemic, act of government, its agencies or offices, or any other cause beyond the control of the parties ("Force Majeure"). Upon occurrence of any such event, ECO shall operate within the Water Utility on a "best reasonable effort" basis and shall not be responsible for damages, fines, penalties, or claims resulting there from. B. Records. ECO shall maintain records that ECO initiates or receives on behalf of PEARLAND relating to the operation of the Water Utility in compliance with PEARLAND'S records retention policy. If this Contract is terminated, ECO agrees to deliver to PEARLAND all records so retained on behalf ofPEARLAND. PEARLAND agrees that ECO may make copies, at Pearland Utility Service Contract/Page 9 ECO's expense, of those records that ECO desires to retain. PEARLAND shall have the right to inspect or have its agent inspect during ECO's regular business hours the books and records of the Contract to determine if ECO has complied with any provision of this Agreement. C. Independent Contractor. ECO is not an employee of PEARLAND, but serves PEARLAND as an independent Contractor. D. Modification. Modification of this Agreement shall be made only by a written document signed by ECO and PEARLAND. E. Assignability. Neither ECO nor PEARLAND may assign its interest in this Agreement without the written consent of the other party. F. Notice. (1) Any notice required under this Agreement required to be given in writing shall be sent by registered mail to the party's address of record. Notice shall be deemed to have been given when the notice is mailed to the following address, as applicable: ECO: CITY: Regional Vice President Director of Finance ECO Resources Inc. City of Pearland 12550 Emily Court 3519 Liberty Drive Sugar Land, Texas 77478 Pearland, Texas 77581-5416 (2) Any other notice required to be given by ECO to PEARLAND under any provision of this Contract shall be given as directed by PEARLAND from time to time during the term of this Agreement. Pearland Utility Service Contract/Page 10 CITY OF PEARLAND ECO ~nc. By: By: ~ Cit r Regional Vice President Date: '7 ~ ~ ~9/ Date: ATTEST/SEAL: APPROVED AS TO FORM: City Attorney Pearland Utility Service Contract/Page 11 Exhibit A Meter Reading Standards METER READING Reading Cycles. Meter reading will be done monthly. PEARLAND's current four-cycle meter reading program will be preserved unless a change is requested by PEARLAND. Approximately 25% of PEARLAND's meters will be read each cycle. Download cycle locations to Schlumberger hand held equipment: ECO will load the routes into the handheld equipment. The usage parameters that signal the reader to verify a read will be set in accordance with the City's specifications. Read Meters: ECO will read approximately ¼ (one-fourth) of the City each week (meters will correlate with the cycles the City currently bills). Each cycle contains approximately 2,900 meters. The meter reads for each cycle will be performed by a qualified team ofreaders. The Meter Reader Manager will check all handhelds to verify reads or trouble codes have been entered for all meters. Discrepancies that are considered safety hazards are addressed or service orders are initiated. Transfer Reads: ECO personnel will electronically transfer reads to the H.T.E. system. Discrepancy Reports: The City of Pearland will generate a discrepancy report to address any meters that need unburied, new lens, changed out, etc Meters designated to be re-read: To ensure accurate reads are being used for billing, The City of Pearland will generate a list of meters to be double-checked. The City of Pearland personnel will perform these reads. Training: See Exhibits 'B', Meter Reading Training Standards and Exhibit 'C' Customer Service Training Standards. Pearland Utility Service Contract/Page 12 EXHIBIT B METER READING TRAINING STANDARDS Day 1: Supervisor meets with the employee to explain all job and safety procedures. The focus is on the importance of read accuracy and box lid replacement. The employee will then walk a route with an experienced meter reader to train primarily on accurate visual reading to meters of different types. Day 2: Accompanied by an experienced reader, the new employee will learn to follow an assigned route and train on the capabilities of the electronic hand-held device. Some of the features are address search, serial number verification, discrepancy notation, route direction, and total accounts remaining/complete. Day 3: Accompanied by an experienced reader, the employee will be given full responsibility of following the assigned route, accurate visual reading, and number entry into the hand-held system. Identification of Water System Problems During the three days the employee will also be trained to recognize and report water-related problems on his route. 1. Missing or damaged box lids 2. Water line leaks 3. Broken pipe depressions 4. Illegal hook-ups (ne~v metered connections) 5. Storm and manhole covers removed or missing 6. Algae growth on pedestrian paths due to unattended leaks Guidelines When Approached by a Customer A customer who approaches a reader generally has one of the two following concerns: Why was my bill so high?: The reader will request the customer to call the City of Pearland Customer Service department to address his concern to a representative. The customer is reminded that the phone number is listed on the water bill or a Customer Service business card is handed to the Customer. All of ECO's meter reading vehicles carry business cards. Is there a water leak?: The reader will briefly explain to the Customer that the leak indicator on his meter registers water flow through the meter. To test for a leak on the customer side, all water sources in the home must be offand then the leak indicator observed for movement. All leak concerns are noted in the hand-held to start a service order. Pearland Utility Se~wice Contract]Page 13 When a customer concern is beyond the Reader's knowledge, the reader will: 1. Notify on-site supervisor for assistance. 2. Note the concern into the hand-held system. 3. Call dispatch to report the problem. Acquiring Entry onto a Proper .ty The reader will first attempt to contact the customer in person. By identifying themselves as meter readers and offer the customer their company I.D. badge. The reader explains our inability to read their meter and requests access. A reader that is denied access to a meter box must report the reason to the Meter Reader Supervisor. If personal contact cannot be made, the supervisor will notify the Customer Service Department and request telephone contact to explain our presence and needs. Pearland Utility Service Contract/Page 14 EXHIBIT C TRANSITION PLAN Six Weeks Prior to Transition Date: 1. Contact City's Public Works Director and request: a. List of available employees. b. List of current employee positions and salary range. c. Physical addresses. d. Final determination of City's office equipment, furniture that will be utilized by ECO Resources. 2. Involve ECO' s designated Contract Manager with project; arrange a meeting with the Utility Billing Manager. 3. Inspect and record city equipment and existing inventory. 4. Schedule meeting for ECO Human Resources to conduct preliminary employee meetings. 5. Order necessary field equipment. 6. City will supply ECOa complete set of the most recent address plats in the area we are to read and bill. Four Weeks Prior to Transition Date: 1. Conduct meeting between Human Resources and current staff: a. Introduction to ECO Resources. b. ECO interview. c. Complete employee applications and arrange physical exams. 2. ECO's Meter Reading Manager will ride with various City of Pearland Meter Readers, as designated by the City, to learn the routes and become familiar with the meter locations and neighborhoods. Three Weeks Prior to Transition Date: 1. Agree on procedures with (Public Works Director) regarding: a. Customer complaints and inquiries. b. Communication and reports we will use to inform the City of all activities in their behalf. Pearland Utility Service ContracffPage 15 2. Set up computers and other office equipment and make arrangements for connections. 3. Establish accounts with local vendors as necessary. 4. Complete necessary processing paperwork for employees. 5. Order uniforms for employees. 6. Take delivery of equipment. 7. Organize staff and make job assignments. a. Order items needed for inventory. b. Establish record keeping and reporting procedures c. Follow-up on status of data line installation. 8. Contact City's Public Works Director regarding final details of transition. Make appropriate adjustments or changes. 9. Organize work schedules. Transition Date 1. Assume responsibility for reading meters. 2. Review all billing cycles with City personnel. a. Account Reconciliation b. Connection Counts c. SOP's on handling City duties 3. Initiate formal process to evaluate all personnel and assess their training needs. Pearland Utility Service Contract/Page 16 EXHIBIT D PERSONNEL AND EQUIPMENT RATE SCHEDULE The following rates for personnel and equipment apply only to additional contract services in accordance with Section VI (F) of this agreement. PERSONNEL Straight Time Overtime Rate Classification Per Hour Per Hour Operations: Field Service Representative $26.10 $32.50 Certified Operator $27.15 $34.65 Supervisor $32.25 $37.70 Area Manager $38.60 $46.60 Senior Operations Manager $45.00 $45.00 Maintenance: Laborer $19.60 $26.00 Crew Member $25.40 $32.40 Equipment Operator $28.25 $35.70 Technician $43.50 $52.00 Foreman $36.90 $44.40 Senior Maintenance Manager $45.00 $45.00 Peafland Utility Service Contract/Page 17 EXHIBIT D (Continued) EQUIPMENT Classification Hourly Rate Minimum 16 ft. Trailer $13.05 None Service Truck $13.55 None Flat Bed Truck; 1 ton or larger $21.20 2 Dump Truck $30.00 2 2 Ton Winch Truck $38.00 2 Air Compressor $38.50 None Back Hoe Rig: Flat Bed Truck, Back Hoe $54.35 2 & Trailer 7 Ton Crane Truck $54.35 2 High Pressure Pipe Cleaner (Hydra) $59.80 3 Vactor Truck (plus dump fee) $108.70 3 TV Van $108.70 3 Pearland Utility Service ContracffPage 18