03-11-2019 Council Packet - Laserfiche WebLink

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AGENDA ITEM Prepared By: Reviewed By: RJO Approved By: RJO 1. Purpose. The purpose of this action item is for council to reject all bids for water meter replacement and direct a revised plan for upgrading City water meters. 2. Background. The city’s existing meter reading system was installed in 2003. The life expectancy of the batteries within the meter transmitter unit (MTU) within the system is 15-20 years. The city is already experiencing increasing numbers of battery failures which is making collection of data for water billing purposes more difficult. Additionally as mechanical meters age they begin to underreport. By the time they reach the end of their life meter under report by an average of 10%. Since the City’s last meter swap out meter technology and associated hardware and software has developed significantly. New solid state meters retain their accuracy throughout their life (20years) and the newer radio transmitters, receivers and software allow for more efficient meter reading and integration with billing software. New transmitters and receivers will facilitate monthly meter readings if the city decides to go that way. Currently the city reads and bills quarterly. 3. RFP Project Scope. This project changes out the city’s water meters (Approx. 1100). The total project is planned over a 5 year period. The project also includes meter reading hardware and software upgrades. 4. Bids Received. The City solicited and received bids from 3 companies for a full meter change out. . Staff reviewed the bids and all three met the parameters laid out in the RFP. The lowest was from Ferguson. Contractor Bid Core & Main $ 449,235 Ferguson Waterworks $ 347,128 WinWater $ 376,605 5. Funding. This project will be funded through the Water Enterprise Fund. The 2019 Capital Improvement Plan (CIP) programmed $ 90,000/ year for 5 years. 6. Staff Recommendation. Staff recommend council reject the bids and direct staff to negotiate an alternate meter change out plan. The RFP review occurred concurrently with revisions to the water rate study. During the process staff concluded that an alternate meter replacement plan over an eight year time frame would be more advantageous to the city. Changing out the meters over a longer timeframe minimizes the water rate increases and allows the city to maximize use of those meters that still have reasonable life left in them. 7. Revised Meter Replacement plan. The revised plan would see approximately 130 meters replaced in 2019; 340 in 2021; 200 in 2024; and 430 in 2027. In 2019 the city would procure a vehicular meter reader and software to improve efficiency, customer service and offer the option for monthly billing. Under the revised plan the estimated cost for 2019 will be $60,500. COUNCIL ACTION REQUESTED Motion to reject all bids and direction to staff to pursue the revised meter replacement plan. Item No.: 10 Date: March 11, 2019 Item Description: Water Meter Replacement Presenter: Adam Edwards City Engineer/Dir of Public Works Agenda Section: City Engineer/ Public Works Director