Jersey City staff seek multiple DPW contracts; Avid Exchange clarified as billing manager, not $5M service fee

City Department of Public Works directors presented a slate of vendor contracts and renewals at the Jan. 27, 2025 Jersey City Municipal Council caucus, and staff fielded questions about a high-dollar item described as a billing-management service for utility accounts.

Director Kears listed 11 DPW items including a proposed month-to-month extension for Gateway Security Inc. (not to exceed three months, with a temporary encumbrance of $300,000), paint and supplies from Sherwin-Williams ($150,000), rental water cooler services from B. Mason Inc. ($60,000), uniform rental with Cintas ($300,000), custodial supplies and recycling disposition contracts, and an open-end moving contract with Nelson Westerberg (total $361,161.32; temporary encumbrance $30,000).

Council members focused most of their questioning on Avid Exchange, which the city proposed to use for (a) tracking energy consumption and bill management for streetlights, signals and city cameras and (b) gas and electric bill payment services for city-owned buildings. Staff reported two separate contract amounts: one contract listed a not-to-exceed amount of $5,000,000 for payment of electricity and gas charges associated with city accounts (with a $100,000 temporary encumbrance), and a second contract listed $3,556,000 for payment of gas and electric bills with a temporary encumbrance of $1,500,000.

John Lynch, the DPW staff member who manages the billing program, told the council that the $5 million figure represents the maximum amount the city expects to pay to utilities (gas and electric) through the vendor, not the vendor—9s service fee. Lynch said Avid Exchange aggregates dozens of separate utility bills (each building, streetlight and traffic signal is billed separately) into a single bill the city receives at month—9s end; without the vendor, staff said the city would have to process each bill individually or hire additional staff.

Lynch said the vendor—9s service fee is approximately $1,800 per month; the larger line-item numbers are for utility payments themselves. Council members asked for clarification and were shown that Avid serves as a billing-management intermediary after PSE&G declined to consolidate accounts directly for the city.

The other DPW contracts were described as routine operational procurements for fleet parts, custodial supplies, vehicle wash services and recycling disposition. Staff said temporary encumbrances have been established in the relevant DPW operating accounts for each item.

All DPW contract items were presented for consideration and scheduling on the formal council agenda; no final votes were recorded at the caucus meeting.