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HomeMy WebLinkAboutItem 2g - Data log radio-read water meters purchase orderSTAFF REPORT Public Works Services Department DATE: July 2, 2013 TO: Honorable Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Craig Clark, Utilities Superintendent SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO EXECUTE A ONE - YEAR PURCHASE ORDER CONTRACT EXTENSION WITH HD SUPPLY WATERWORKS FOR THE PURCHASE OF DATA LOG RADIO - READ WATER METERS FOR THE CITY'S WATER DISTRIBUTION SYSTEM IN THE AMOUNT OF $500,000 Recommendation: Approve SUMMARY On August 7, 2012, the City Council authorized the City Manager to execute a one year purchase order Agreement with optional contract extensions for the purchase of data log radio -read water meters with HD Supply Waterworks. HD Supply Waterworks is reaching the end of their contract term and has submitted a written offer to extend the existing Agreement for an additional year with no increase in unit cost. In order to accelerate the replacement of existing meters with radio -read meters, the total contact amount for this contract extension will be increased from $250,000 to $500,000. All other terms and conditions of the agreement are to remain in effect. Based on the excellent service provided by HD Supply Waterworks during the previous year, it is recommended that the City Council award a one year contract extension to HD Supply Waterworks for the purchase of data log radio -read water meters for the City's water distribution system in the amount of $500,000. DISCUSSION The goal of the Annual Meter Replacement Program is to replace the City's manual - read water meters with data log radio -read water meters. Once the conversion is complete, meter readers will be able to read the entire system in less time and more efficiently. It was originally anticipated that all of the City's 13,300 water meters would be replaced by the year 2020. As described below, by accelerating the program, it is now projected that the process will be complete by 2017. Purchase of Radio -Read Water Meters July 2, 2013 Page 2 of 2 In addition to the increased efficiency and savings in staff time required to read and record water meters, the data log radio -read water meters are capable of recording precise measurements of a customer's water usage as well as the time of use. This enhancement allows City staff to review accounts that are showing unusually high use and pass this information on to the customer. This information can be downloaded and reviewed by the customer to help in identifying leaks as well as providing the customer a history of usage on an hourly or daily basis. Additionally, water meter register accuracy is important in calculating and forecasting water demands and aids in conservation efforts. Once the data log meters are installed throughout the system, the meter reading staff can be used for other water related maintenance assignments. In order to take advantage of the savings resulting from the replacement of manual read meters to radio -read meters as soon as possible, the Public Works Services Department recommended, as part of the Fiscal Year 2013 -14 Capital Improvement Program, to increase the number of meters replaced during the next fiscal year from approximately 800 meters per year to 1,500 meters per year. This will result in the replacement of all manual read water meters to radio read meters by the year 2017. To date, 6,388 manual read water meters (48% of the total number of meters) have been converted to radio -read meters. The City's bid specs allow for an increase in the purchase order amount so long as the unit price stays the same. HD Supply Waterworks is the current vendor for this contract and they are reaching the end of their contract term. HD Supply Waterworks has submitted a written offer to extend the existing agreement for an additional year with no increase in unit pricing. HD Supply Waterworks has provided excellent service to the City and they have worked with the City in holding their prices. The increase in the budget from $250,000 to $500,000 will enable the City to change out more water meters and benefit from having radio -read water meters sooner than anticipated. FISCAL IMPACT $500,000 has been budgeted in the Capital Improvement Plan in Fiscal Year 2013 -14 for the Annual Meter Replacement Program. RECOMMENDATION It is recommended that the City Council authorize and direct the City Manager to execute a one -year purchase order contract extension with HD Supply Waterworks for the purchase of data log radio -read water meters for the City's water distribution system in the amount of $500,000. Approved: Dominic Lazzareitd City Manager