Title
Utility Service Line Maintenance and Repair Warranty Program Contract Award - RFP 24-0232 - Request for Award (Ordinance S-51033)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with American Water Resources, LLC, dba Oncourse Home Solutions, to provide a utility service line maintenance and repair warranty program for the City Manager's Office. Further request to authorize the City Treasurer to accept, and the City Controller to disburse, all funds related to this item. The total aggregate sales for the contract is estimated to produce $24,921,600 over a five-year term, resulting in approximately $5,738,240 in revenue to the City.
Report
Summary
This contract will establish a comprehensive utility maintenance and repair warranty program available to property owners who receive City-provided utilities and opt into the program, specifically for sewer and potable water services. The program extends coverage from the resident's structure to critical points such as the sewer main or water meter box, encompassing external sewer and water lines for which the property owner holds responsibility. Additionally, the contractor will be responsible for fee collection from the participating property owners, facilitating repair services through qualified contractors as necessary, and implementing marketing strategies targeting property owners who are customers of the City's utility services. This initiative aims to provide homeowners with assurance regarding essential utility maintenance and repairs while fostering a proactive approach to property management and community welfare.
Under this contract the City will receive an annual licensing fee of $400,000 for the use of City references and logos, in addition to a 15 percent revenue share based on the participation rates of property owners in the warranty program. Property owners in the program will pay $4.99 per month for water line coverage, with a limit of up to $10,000 per occurrence and no annual cap, and $7.99 per month for sewer line coverage with a limit of up to $8,000 per occurrence and no annual cap.
Procurement Information
The Utility Line Maintenance and Repair Warranty Program Request for Proposals (RFP) was issued on March 14, 2024, and was conducted in accordance with Administrative Regulation 3.10. The City received three proposals deemed to be responsive and responsible to the RFP's requirements. An evaluation committee evaluated the proposals based on the following criteria with a maximum possible point total of 1,000:
- Experience and Qualifications (0-400 points)
- Method of Approach (0-300 points)
- Price (0-200 points)
- References (0-100 points)
Staff recommends the proposal offered by American Water Resources, LLC, dba Oncourse Home Solutions, as the highest-scored responsive and responsible proposal.
Contract Term
The contract will begin on or about July 1, 2024, for a five-year term, with no options to extend.
Financial Impact
The contractor will pay an annual fee of $400,000 in addition to a 15 percent revenue share, resulting in approximately $5,738,240 in revenue to the City over the life of the contract.
Concurrent/Previous Council Action
The Transportation, Infrastructure and Planning Subcommittee recommended approval of this item on May 15, 2024.
Department
Responsible Department
This item is submitted by City Manager Jeffrey Barton, Deputy City Manager Ginger Spencer and the City Manager's Office, Finance and Water Services departments.