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HomeMy WebLinkAbout1994-05-03; Municipal Water District; 243; Purchase of a Water Billing Management SystemCARLSBAD A’- NICIPAL WATER DISTRICT - -\GENDA BILL CL / / AB # d q3 TITLE: MTG , 5/3/94 PURCHASE OF A WATER BILLING DEPT. CMWD MANAGEMENT SYSTEM RECOMMENDED ACTION: Staff recommends that the Board of Directors adopt Resolution No. 8197 , awarding two contracts and a bid for purchase of a water billing management system to the following organizations: ) Standard Register, 5675 Ruffin Road, San Diego, CA 92123, for a remittance processing system. ) Pitney Bowes Inc., 10410 Friars Road, San Diego, CA 92010, for a folder/inserter system. ) The McLean Group Inc., 1700 South El Camino Real, San Mateo, CA 94402, for the purchase of a Xerox Model 4235 high speed laser printer. ITEM EXPLANATION: In June of 1993, the Board of Directors approved staff’s recommendation to proceed with a request for proposal for three pieces of equipment that would enhance an overall water billing management system. At that time, staff explained the type of equipment being proposed and the uses and benefits of each. The equipment proposed was: 1. Remittance Processor for water payments 2. Folder/Inserter (for folding and inserting water bills into standard envelopes) 3. Laser Printer The District chose to use the competitive negotiations process as opposed to the bidding procedure because staff was not able to develop the technical specifications for an overall water billing management system. Staff felt that it would be more advantageous to the City to use the vendors’ expertise in this area due to the highly technical nature of the equipment. Therefore, in accordance with Section 3.28.140 of the Municipal Code, requests for proposal were sent to 19 vendors. The following proposals were received: Remittance processor One responsive proposal Folder/inserter machine Two responsive proposals High speed laser printer One responsive proposal The proposed remittance processor bid from Standard Register met our specifications, and we have negotiated a contract with this vendor (Resolution Exhibit A). Since we received two responsive proposals for the folder/inserter system, we evaluated the systems based on several system and vendor factors. These included performance of equipment, cost, quality of maintenance and support, ease of use, proposed training plan, recommendations of other organizations using the same equipment, and financial strength of the manufacturer. At the end of this evaluation, the Pitney Bowes machine was the obvious choice, and a contract was negotiated (Resolution Exhibit B). Page 2 of Agenda Bill No. &! 43 Xerox was the only responsive proposal for a high speed laser printer. The proposed machine met specifications but the cost of $38,210 was considered to be excessive, so the proposal was rejected. With the help of our Xerox representative, three value- added resellers (VARs) were identified as organizations selling the printer offered by Xerox. Value-added resellers are advantageous to organizations wishing to purchase equipment because they will offer the basic equipment with added services or options that are not offered by manufacturers such as Xerox. In this case, the VARs offered the services of equipment setup and programming, and staff training, which were not included with the Xerox proposal. Therefore, requests for bid were sent to these VARs and one other vendor. The three responsive bids received are shown below. The lowest bid, after considering training costs, was from The McLean Group (not including tax>. The McLean Group $30,295 Acorn Computer $30,430 Agile, Inc. $31,703 FISCAL IMPACT: In December 1991, the Board of Directors allocated the funds needed for the purchase of this equipment from excess revenues generated from the inclining block water rate that was in place from August through November of 1991. Of the $1.2 million that was received, $100,000 was set aside by the Board for water billing system upgrades to improve customer service. The total cost of the equipment is approximately $104,000 (Please see cost summary in Exhibit 2). The additional $4,000 will be taken from the water operating fund. The total includes the first year maintenance costs for the equipment. The maintenance charges were not able to be included as part of the Information Systems Department budget for 1994-95 because of timing issues. Beginning with fiscal year 1995-96, maintenance costs for these three machines will be included in the budget. The available balance of the water operating fund, including the reserve for billing upgrades, as of March 31, 1994, is $4,450,700. This figure also includes $274,000 remaining in the penalty reserve fund. EXHIBITS 1. Resolution No. 8 b(? management system. awarding contracts for purchase of a water billing A. Contract between Carlsbad Municipal Water District and Standard Register. B. Contract between Carlsbad Municipal Water District and Pitney Bowes. 2. Costs for equipment and services to be purchased. . /I 1 2 3 4 5 RESOLUTION NO. 869 A RESOLUTION OF THE CARLSBAD MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS OF CARLSBAD, CALIFORNIA, AWARDING TWO CONTRACTS AND A BID AND AUTHORIZING THE PURCHASE OF A WATER BILLING MANAGEMENT SYSTEM 6 7 WHEREAS, the Board of Directors of the Carlsbad Municipal Water District previously authorized the request for proposals for three pieces of equipment that 8 would enhance an overall water billing management system; and 9 WHEREAS, the City of Carlsbad staff has received proposals and bids and 10 11 12 13 evaluated these in accordance with the Municipal Code; and WHEREAS, only one bid for each piece of equipment was responsive; and WHEREAS, funds for the purchase of this equipment are available from the water operating reserves. 14 15 NOW, THEREFORE, BE IT RESOLVED, as follows: 1. That competitive negotiations were used to purchase this equipment because 16 of the more technical nature of the equipment, and the best offers were accepted. 17 2. That the .President is authorized to execute the contract attached hereto l8 /I (Exhibit A) with Standard Register, 5675 Ruffin Road, San Diego, CA 92123, for a 19 j , remittance processing system. 20 /I I 3. That the President is authorized to execute the contract attached hereto 21 22 (Exhibit B) with Pitney Bowes, Inc., 10410 Friars Road, San Diego, CA 92101, for a folder/inserter system. 23 24 4. That the bid for the high speed laser printer be awarded to The McLean Group, Inc., 1700 South El Camino Real, San Mateo, CA 94402. 25 5. That the Purchasing Officer is authorized to issue purchase orders for the 26 27 remittance processing system, the folder/inserter system, and the high speed laser printer. I 1 .I. 2 6. That funds in the amount of $105,000 are appropriated from the water 3 operating reserves to purchase the water billing management system and fund first 4 year maintenance costs. 5 PASSED, APPROVED AND ADOPTED at a special meeting of the Carlsbad 6 Municipal Water District held on the 3rd day of MAY , 1994, 7 by the following vote to wit: 8 AYES: Board Members Lewis, Stanton, Kulchin, Nygaard, Finnila 9 NOES: None 10 ABSENT: None 11 12 13 14 ATTEST: e 15 16 &&klh 17 ALETHA L. RAUTENKRANZ, Secretary) 18 cSEAL) II 19 I 20 21 22 23 24 25 ’ 26 27 I 28 -. EXHIBIT A CONTRACT FOR PURCHASE, INSTALLATION AND SET-UP OF A REMITTANCE PROCESSING SYSTEM THIS CONTRACT, is made and entered into this 10th day of MAY, 1994 by and between the Carlsbad Municipal Water District, hereinafter referred to as “Dist;ict” and . The Standard Register Company, hereinafter referred to as “Contractor”. WHEREAS, the Contractor has submitted to the District a proposal to provide for purchase, installation and set-up of a remittance processing system. WHEREAS it has been determined that it is in the best interests of the District to enter into the contract hereinafter contained. NOW, THEREFORE, in consideration of the mutual promises, conditions, and covenants herein contained, the parties hereto agree as follows: 1. Items to be Purchased The Carlsbad Municipal Water District will purchase the following items at the indicated total price: Standard Register Model S40 RPS including: OCRA Numeric Reader MICR encoder at 40 characters/second 512 KB main memory 16 KB Non-volatile memory Numeric keyboard 20 character alphanumeric display 5-114 ” high density floppy disk drive Four pocket stacker Reject return station 28 column high speed thermal printer Programmable dual line matrix endorser Interface RS-232 port to PC Workstation Table Interface Cable Software necessary to operate machine as proposed Turnkey System Price: $37,930.00 Tax $2,655.10 Total Delivered Price $40,585.10 1 of6 will be as described in Section 3 of literature. 2. Description of System The system in paragraph one of this contract the Contractor’s proposal and accompanying 3. Responsibilitv for System Performance The Contractor represents that the system proposed will perform in a manner which will meet the needs of District as described in the Districts request for proposal. If the system does not perform at the proposed level, the Contractor, at no increased cost to the District, will add or upgrade equipment as necessary to meet the proposed standard. 4. Items Included in Price Included in the total cost of the system in paragraph one of this contract are delivery and freight charges, installation costs, setup and ‘adjustment, the cost of the required performance bond, the cost of required insurance, the cost of a City of Carlsbad license, and training, as described in section four of the proposal, of City personnel. 5. Deliver-v All equipment will be delivered to the required site at the City of Carlsbad no later than 60 calendar days after the City mails the purchase order. The Contractor will advise the City of the estimated delivery date and of actual delivery date at least one week prior to that date. 6. Installation and Setup Initial setup and adjustment will be completed by the Contractor no later than eight business hours after delivery, unless both City personnel and the Contractor agree to a different setup and adjustment schedule. 7. Traininq of City Personnel Training of City personnel will proceed as in Section Four of the Contractor’s proposal. Training will be on dates agreed to by the City. Number of employees initially trained will be decided by the City. 2 of6 8. Payment Payment to the Contractor will be due 30 days after the Purchasing Officer issues, a ‘memo of acceptance. Acceptance will occur only after all equipment is installed and is operating in accordance with specifications proposed by the Contractor and other contractual obligations have been discharged to the satisfaction of the . Purchasing Officer. 9. 10. 11. 12. Warrantv The Contractor hereby supplies a warranty that the equipment, along with the software, will perform as described in the Contractor’s proposal after installation and setup. Equipment Maintenance Aoreement . The Contractor will offer an annual service agreement covering equipment maintenance and software support. The cost will not exceed $4,560.00 for the first year and will be as described in section five of the Contractor’s proposal. If the District chooses to enter into the agreement, the agreement will begin the day after acceptance of the system and will end after 365 days. Faithful Performance Bond Within 10 days after the issuance of the purchase order for this equipment, the Contractor will provide an executed performance bond on the form provided by the City. Insurance The contractor shall obtain and maintain policies of general liability insurance, and a combined policy of worker’s compensation and employers liability insurance from an insurance company authorized to do business in the State of California which meets the requirements of City Council Resolution No. 91-403 in an insurable amount of not less than one million dollars ($1,000,000) each, unless a lower amount is approved by the City Attorney or the City Manager. This insurance shall be in force before the delivery of any equipment and end after installation, setup and training is complete. 13. Business License . The Contractor shall maintain a business license to operate in the City of Carlsbad. 3 of6 14. lmmiqration Reform and Control Act The Contractor shall be aware of the requirements of the Immigration Reform and C.ontrol Act of 1986 and shall comply with those requirements including but not limited to verifying the eligibility for employment for all agents, employees and subcontractors that are included in the contract. 15. Hold Harmless The City, its officers, and employees shall not be liable for any claims, liabilities, penalties, fines, or any damage to goods, properties, or effects of any person whatever, nor for personal injuries or death caused by, or resulting from, any intentional or negligent acts, errors or omissions of the Contractor or the Contractors agents, employees, or representatives. Contractor agrees to defend, indemnify, save free, and hold harmless the City and its officers, agents, and employees against any of the foregoing claims, liabilities, penalties or fines, including liabilities or claims by reason of alleged defects in any plans and specifications, and any cost, expense or attorney’s fees which are incurred by the City on account of any of the foregoing. 16. Independent Contractor It is expressly understood and agreed that the Contractor herein named is acting as an Independent Contractor and not as an agent, servant, or employee of the City. 17. Assianment of Contract Contractor may not transfer, assign, or subcontract this contract without prior written consent of the District. 18. Notice Any and all notices, notifications, changes or other matters relating to this contract shall be given in writing by the individual designated by the Contractor and, if agreed to, shall be effective only when received by the City at the following address: Purchasing Department, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad CA 92008. All notices to the Contractor from the City will become effective when mailed to the following address: Standard Register, 5675 Ruffin Road STE 315, San Diego CA 92123. 4 of6 19. Governino Law All matters regarding this contract shall be interpreted in accordance with the laws of the State of California, and any controversy that cannot be settled directly shall be initially submitted to an arbitrator mutually acceptable to the parties. Judgment upon the arbitration award rendered may be entered by any court having , jurisdiction thereof, if the parties do not exercise their right to a judicial - determination. 20. Chanqes in Contract If, in the course of this contract, changes seem merited by the Contractor or the District, and informal consultations by one party with the other indicate that a change in the conditions of the contract is warranted and is mutually agreed to, the Contractor or the District may request a change in this contract. Such changes shall be processed by the District in the following manner: A letter outlining the changes shall be forwarded to the District by the Contractor describing the changes along with any updates to charges or level of service. A supplemental contract shall be prepared by the District and approved by the District in accordance with applicable City codes. Such supplemental contract shall not render ineffective or invalidate unaffected portions of this contract. 21. Verbal Aqreement or Conversation No verbal agreement or conversation with any officer, agent or employee of the District, either before, during or after the execution of this contract, shall affect or modify any of the terms or obligations herein contained nor entitle the Consultant to any additional payment whatsoever under the terms of this contact. /II Ill I// JJJ J/l /II Jff Ill J/l J/l JJJ Ill l/l J/J 5 of 6 . 22. Authorized Siqnature The person signing this contract for the Contractor is an agent authorized by The Standard Register Company to bind the Contractor. IN WITNESS WHEREOF, the parties hereto have executed the contract at Carlsbad, * California, the day and year first above written. Carlsbad Municipal Water District Contractor Attest: l9l4xL. 3!. PA, Aletha L. Rautenkranz, Secretary Approved as to form: 6 of6 EXHIBIT B CONTRACT FOR PURCHASE, INSTALLATION AND SET-UP OF A FOLDER/INSERTER SYSTEM THIS CONTRACT, is made and entered into this 10th day of MAY, 1994 , by and between the Carlsbad Municipal Water District, hereinafter referred to as “District” and . Pitney Bowes Inc., hereinafter referred to as “Contractor”. WHEREAS, the Contractor has submitted to the District a proposal to provide for purchase, installation and set-up of a folder/inserter system. WHEREAS, it has been determined that it is in the best interests of the District to enter into the contract hereinafter contained. NOW, THEREFORE, in consideration of the mutual promises, conditions, and covenants herein contained, the parties hereto agree as follows: 1. Items to be Purchased The Carlsbad Municipal Water District will purchase the following items at the indicated total price: 1 EAF430 Spectrum Base Unit $9,235.00 2 EAF431 Spectrum Insert Feeders (2,375.OO ea) $4,750.00 1 EAF432 Spectrum Folding Module $2,460.00 1 EAF434 Spectrum Sheet Feeder $2,545.00 Subtotal $18,990.00 Less Value Plus Discount -$2,500.00 Net FOB Destination $16,490.00 Tax (7.00%) $1154.30 Total Cost of Equipment $17,644.30 2. Description of Equipment The equipment in paragraph one of this contract will be as described in paragraph 3.1 of the Contractor’s proposal and accompanying literature. 1 of6 3. Responsibility for System Performance The Contractor represents that the system proposed will perform in a manner which will meet the needs of the District as described in the Districts request for proposal. If the system does not perform at the proposed level, the Contractor, at no increased cost to the District, will add or upgrade equipment as necessary to - meet the proposed standard. 4. Items Included in Price Included in the total cost of equipment in paragraph one of this contract are delivery and freight charges, installation costs, setup and adjustment, the cost of the required performance bond, the cost of required insurance, the cost of a City of Carlsbad business license, and training, as described in paragraph four of the proposal, of City personnel. 5. Delivers All equipment will be delivered to the required site at the City of Carlsbad no later than 60 calendar days after the City mails the purchase order. 6. Installation and Setup Initial setup and adjustment will be completed by the Contractor no later than eight business hours after delivery, unless both City personnel and the Contractor agree to a different setup and adjustment schedule. 7. Traininq of Citv Personnel As stated in the Contractor’s proposal, the Contractor will conduct initial training on all installed equipment with no limit on the number of initial trainees. 8. Pavment Payment to the Contractor will be due 30 days after the Purchasing Officer issues a memo of acceptance. Acceptance will occur only after all equipment is installed and is operating in accordance with specifications proposed.by the Contractor and other contractual obligations have been discharged to the satisfaction of the Purchasing Officer. 2 of6 9. Warranties and Guarantees The Contractor will provide a go-day warranty as described in paragraph 5.1 of the Contractor’s proposal. Also the Contractor will provide a five-year customer satisfaction guarantee as described on the Pitney Bowes certificate number AD 10807 Rl(91) which was included in the Contractor’s proposal. Both the warranty and the guarantee will start after acceptance as discussed in paragraph seven of . this contract. IO. Equipment Maintenance Aqreement The Contractor will offer an equipment maintenance agreement based on a monthly usage of less than 42,000 equipment cycles per month for a cost not to exceed $1,502.00 for the first year as described in paragraph 5.2 and 5.3 of the Contractor’s proposal. If the District chooses to enter into the agreement, the agreement will begin after the initial warranty expires and will end 365 day later. II. Faithful Performance Bond Within 10 days of the issuance of the purchase order for this equipment, the Contractor will deliver to the City an executed performance bond on the form provided by the City. 12. Insurance The contractor shall obtain and maintain policies of general liability insurance, and a combined policy of worker’s compensation and employers liability insurance from an insurance company authorized to do business in the State of California which meets the requirements of City Council Resolution No. 91-403 in an insurable amount of not less than one million dollars ($l,OOO,OOO) each, unless a lower amount is approved by the City Attorney or the City Manager. This insurance shall be in force before the delivery of any equipment and end after the go-day warranty period. 13. Business License The Contractor shall maintain a business license to operate in the City of Carlsbad. 14. lmmiqration Reform and Control Act The Contractor shall be aware of the requirements of the Immigration Reform and Control Act of 1986 and shall comply with those requirements including but not 3 of 6 limited to verifying the eligibility for employment for all agents, employees and subcontractors that are included in the contract. 15. Hold Harmless The City, its officers, and employees shall not be liable for any claims, liabilities, penalties, fines, or any damage to goods, properties, or effects of any person . whatever, nor for personal injuries or death caused by, or resulting from, any intentional or negligent acts, errors or omissions of the Contractor or the Contractors agents, employees, or representatives. Contractor agrees to defend, indemnify, save free, and hold harmless the City and its officers, agents, and employees against any of the foregoing claims, liabilities, penalties or fines, including liabilities or claims by reason of alleged defects in any plans and specifications, and any cost, expense or attorney’s fees which are incurred by the City on account of any of the foregoing. 16. Independent Contractor It is expressly understood and agreed that the Contractor herein named is acting as an Independent Contractor and not as an agent, servant, or employee of the City. 17. Assiqnment of Contract Contractor may not transfer, assign, or subcontract this contract without prior written consent of the District. 18. Notice Any and all notices, notifications, changes or other matters relating to this contract shall be given in writing by the individual designated by the Contractor and, if agreed to, shall be effective only when received by the City at the following address: Purchasing Department, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad CA 92008. All notices to the Contractor from the City will become effective when mailed to the following address: Pitney Bowes Inc.,10410 Friars Road, San Diego CA 92010. 19. Governinq Law All matters regarding this contract shall be interpreted in accordance with the laws of the State of California, and any controversy that cannot be settled directly shall be initally submitted to an arbitrator mutually acceptable to the parties. Judgment 4 of6 20. 21. upon the arbitration award rendered may be entered by any court having jurisdiction thereof, if the parties do not exercise their right to a judicial determination. Chanses in Contract If, in the course of this contract, changes seem merited by the Contractor or the . District, and informal consultations by one party with the other indicate that a change in the conditions of the contract is warranted and is mutually agreed to, the Contractor or the District may request a change in this contract. Such changes shall be processed by the District in the following manner: A letter outlining the changes shall be forwarded to the District by the Contractor describing the changes along with any updates to charges or level of service. A supplemental contract shall be prepared by the District and approved by the District in accordance with applicable City codes. Such supplemental contract shall not render ineffective or invalidate unaffected portions of this contract. Verbal Aqreement or Conversation No verbal agreement or conversation with any officer, agent or employee of the City, either before, during or after the execution of this contract, shall affect or modify any of the terms or obligations herein contained nor entitle the Consultant to any additional payment whatsoever under the terms of this contact. Ill /II J/l IJJ Ill Ill Ill IIJ l/J J/J /II J/l J/l Ill l/J Ill JIJ JJJ l/J 5 of6 . 22. Authorized Siqnature The person signing this contract for the Contractor is an agent authorized by Pitney Bowes Inc. to bind the Contractor. IN WITNESS WHEREOF, the parties hereto have executed the contract at Carlsbad, - California, the day and year first above written. Carlsbad Municipal Water District Contractor Name, Title Pitney Bowes Attest: tik:L Aletha L. Rautenkranz, Secretary Approved as to form: General Counsel 6 of 6 EXHIBIT 2 WATER BILLING MANAGEMENT SYSTEM FINAL FIGURES ::::,:,:,:,:i:::::::.:.:.:.:.:...:..............,...:.~ A........ ././ .,,,., ,,,_,_,, ,,,,,,.. ,,,_,,,( (,,,,,,, ,:..;,:,;,:,:,:,:,:,:,:::::~:~~~~~~~~:~~~:~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~ ““’ ‘.’ ‘.‘.““’ .‘:. ‘.‘.“.‘.““.“““i:‘:.:.:‘.:.:.:.:.:.:.:.: . . . . . . . . . . . . . . . . . . . . . . . . . . _,._.,., ,., ,_,,,, ,,,,,,,,,, “““~~~“.‘i.“~“““~‘~‘~‘~~~‘~“““.~.’.~.’.~~. ... I.. . . . .i...vi./ . . . . . . . . .,..., :_: _.,.,._.,.,.,.,.,.,.,.,.~.,.,.~.,.,.,.,., ,,.,,. : :::, ,‘,‘.‘,‘,‘,‘,., “““:‘:‘:‘:‘.‘.....‘.‘.‘.‘...’ ““” ““““““‘“““‘L”‘...‘.‘.“““:‘:‘~.:.:.::::::::::::::::::::::::::::::::::::::::::::::::~:~~::~ ,~.:.:.:.:.:.:.:.:.:,:.~.~.~.~,~.~.~.~,~.~,,.,,,,,: _,,(,, : : : : : : : : . . . . . . ,,, ‘.‘..““‘..“‘.““““.‘.““.‘.‘.. .~...~~...i.......... ~..................../..,.,.,.,.,.,.,..........,,,_,,_,,,,.,.,,,,.,,,,,,,.,,,.,./,,,,,,,,,,,,~,,,,~~,~~~~ :,:,, s e ::: :.:.: .A, . . . . ~~i~:.:.:.::.:.:,:.:,:,:.~~:~:,:.:.: _.._.... ,:: .: :. . . . . . . .,.i,.,,ii,., iii~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ .j:~~ll:l~~F’i:~~~~~~ Remittance Processing System $40,585.10 $4,560.00 I Folder/Inserter $17,644.30 I I Xerox Laser Printer w/Interface Box $32,415.65 I Total Grand Total $90,645.05 $13,342.00 ..>y..> ..,. :.:..:.:..:: .,.; :.:: .. ti;.;;;. i:--:~:iiaii;$;l.o5~8~6~~ ..:. : .:.:..:.:: . . . . ..,...,.. : . . . . . . .,.... I ,..... :.. . . . . ::..:.;:.. ,/ / :: First year maintenance costs were not able to be budgeted as part of the Information Systems Department charges for fiscal year 1994-95, and are therefore being included as part of the purchase price. Future maintenance costs will be included as part of the Information System Department budget.