TO: Mayor and City Commission
FROM: Cale Curtis, City Manager
DATE: August 21, 2024
Title
APPROVING A RENEWAL OF THE AGREEMENT WITH INFRAMARK LLC TO PROVIDE FOR DISCONNECTIONS, RESTORATIONS AND ADDITIONAL SERVICES; PROVIDING AN ANNUAL FLAT RATE PRICING; PROVIDING FOR EFFECTIVE DATE
BACKGROUND: The initial agreement provided for an increase on an annual and compounded basis, by the lesser of 4% or the price index increase. The current contract is due to expire on September 30, 2024. When the annual renewal notice was sent to the vendor, they requested a change from a per meters basis to an annual flat rate basis.
Inframark has only increased fees once since 2015 even though the contract allows for an annual CPI adjust of the lesser of 4 % or CPI value. If the annual CPI adjustment had been processed, the average monthly invoice would be $15,855 or 190,260 annually.
Pricing was requested from two other vendors providing this service, neither was interested in providing service due to the AMR infrastructure. The option of hiring internal staff to process disconnections and restorations exceeds the total cost of the renewal contract. Staff, fringe, vehicles and insurance cost total $190,500 and additional cost would be incurred to cover after hour restorations 3 to 4 nights a week (at a 3 hour minimum).
The non-payment fees and after hour service fees billed to the customer cover the cost of Inframark’s services. In FY2023, $288,534.43 in service fees were billed and collected and in FY2024 $227,421.38 have already been billed with an estimated $341,000 for the year (the increase is due to the new rates that went into effect 1/1/2024).
RECOMMENDATION: For Approval.
FISCAL IMPACT: $202,426 annually from the enterprise fund 456-9089-536.34-16
CONTACT PERSON: Curt Keyser, DEES Director