Title
Consider a memorandum/resolution approving support addendum No. 3 with Routeware, Inc., to continue providing route optimization tracking for the City of Killeen’s Solid Waste fleet, in the amount of $86,048.
Body
DATE: December 3, 2024
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Routeware, Inc. Support Addendum No. 3 to Master Agreement
BACKGROUND AND FINDINGS:
On November 10, 2015, City Council authorized the award of a contract to Routeware, Inc. to implement hardware and software technology in the Solid Waste Division’s vehicles. On September 5, 2023, the City Council approved a hardware upgrade for 37 residential and 18 commercial Solid Waste vehicles, replacing outdated equipment that was no longer supported by Routeware. Routeware, Inc. is a premium service optimization company that specializes in the solid waste industry.
Routeware’s innovative products and services increase driver productivity and reduce direct costs. Routeware has allowed the Solid Waste Division to avoid paper-based routing methods, automate vehicle communications, and avoid manual data processing of operational information. During the pilot program, Solid Waste realized cost savings and efficiencies because of reduced idle time, enlarged spans of supervisory control, and decreased vehicle wear. Also, Solid Waste received fewer callbacks while simultaneously receiving a higher capture of overages via overloaded container fees, missed pickup fees, and bulk charges. Entering this Support Addendum No. 3 for a term of five (5) years, will allow for continued substantial efficiencies, lead to better support, and contribute to estimated cost savings per truck of $25 to $30 per day per route.
Routeware is a cost-effective, proven solution currently used by the City of Killeen, as well as other Texas cities, including Waco and El Paso. This system has allowed professional conflict resolution over disputed charges and has significantly reduced the number of customer service calls the Solid Waste Division receives. The Solid Waste Division anticipates this product will continue to reduce expenses, while significantly increasing the quality of service we provide to the citizens and businesses of Killeen. Routeware is contracted through the Houston-Galveston Area Council Cooperative Contract #FL03-21.
THE ALTERNATIVES CONSIDERED:
1. Search for a different hardware/software provider.
2. Choose not to renew the contract, which would cause the division to return to paper-based routing methods.
3. Authorize execution of Routeware, Inc. Support Addendum No. 3 to continue services for a period of five (5) years from January 1, 2025, to December 31, 2029.
Which alternative is recommended? Why?
Alternative three (3) is recommended to meet the department’s mission and allow Solid Waste to continue increasing driver productivity, reduce direct costs, and provide superior customer service to the citizens of Killeen.
CONFORMITY TO CITY POLICY:
This purchase will be made through Routeware, Inc, HGAC, Contract #FL03-21. Purchases made through a cooperative contract are exempt from the competitive bidding process, as stated in Texas Local Government Code (TLGC) section 271.102, subchapter F, “a local government that purchases goods or services under this subchapter satisfies any state law requiring the local government to seek competitive bids for the purchase of the goods or services.”
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
Funds are allocated in the Fiscal Year (FY) 2025 Solid Waste annual budget in the amount of $89,190 split between residential and commercial budgets. Estimations for future years are as follows and are dependent on approval of annual budget: FY 2026 - $90,351; FY 2027 - $94,868; FY 2028 - $99,612; FY 2029 - $104,592.
Is this a one-time or recurring revenue/expenditure?
This is a recurring expenditure.
Is this revenue/expenditure budgeted?
Yes, the funds are available in the Solid Waste Fund accounts:
540-54300-400-409-000000 Software Subscription $53,019
540-54150-400-409-000000 Telecommunications $6,660
540-54300-400-410-000000 Software Subscription $26,271
540-54150-400-410-000000 Telecommunications $3,240
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
Yes
RECOMMENDATION:
Authorize the City Manager, or his designee, to execute the Routeware, Inc., Support Addendum #3 to Master Agreement for services from January 1, 2025, to December 31, 2029; and authorize the City Manager, or his designee, to execute any and all change orders within the amounts set by state and local law.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
City Attorney
ATTACHED SUPPORTING DOCUMENTS:
Addendum
Contract
Contract Verification
Master Agreement
Certificate of Interested Parties
Presentation