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Title
Contract Change Order/Amendment #8 with Itron, Inc. for the City-Wide Automated Metering System installations in the amount of $1,959,158 (this item was tabled at the October 17, 2017 Council Meeting)
Presenter
Ron McCuller, Director of Public Works
Recommended Action
Approve
Analysis
Several years ago the Public Works Department recognized that the water metering industry, which had been working on evolving Advanced Metering Infrastructure (AMI) for some time, had matured to the point that the additional efficiencies for the city and customer benefits to be derived from such a system could not be ignored. These advantages include 1) elimination of employees having to physically go to each of the almost 50,000 water customers each month to obtain a meter reading for billing purposes by having readings electronically transferred to a central server. 2) hourly meter reading instead of monthly, that will help with customers concerns over high water bills by the ability to pinpoint the day and time of high water usage, allowing the customer to relate the time of high usage to some event causing the excess usage. 3) Customer interface where the customer can log into their account and monitor their water usage from their personal computer, this giving them more control over their water consumption. 4) Such monitoring can only enhance our water conservation efforts which are state mandated and essential to the future of our water deficient area.
After analyzing numerous proposals, a select committee of City employees guided by an expert consultant, selected Itron,Inc.for the installation of Advance Metering Infrastructure in the city. The entire cost of the system proposed was $11,242,204.23 based on the detailed description of the materials, labor, software and managed services provided by the through its' consultant.The proposal made it clear that the entire project was to be in phases to be fully completed within a 5 year period.
For the initial funding of Phase 1, the City budgeted $1,250,000 but had also applied for and was approved by the Texas Water Development Board (TWDB) was offered an interest subsided loan in the amount of $4,000,000, giving us a total budget of $5,250,000 for Phase 1 in our FY15.
Staff requested also to utilize meter replacement funding which is included in the annual operating budgets which will allow for broken meters in the system to be replaced with the AMI technology.
Amendment/Change orders No. 2-6 were additional funding requests per yearly budgets approved by Council.
In November of 2016 Council approved change order/amendment 7 for an additional $3,000,000 because the contractor was ahead of schedule on this project. Staff requested to allow the contractor to continue without a interruption in installations.
The current request for Change Order/Amendment 8 with Itron, Inc. will increase the contract amount by $1,959,158.
The total revised Itron contract C15127 amount will be $14,052,755
Financial Consideration
Funding for a contract Change Order/Amendment #8 with Itron, Inc. for the City-Wide Automated Metering System installations, in the amount of $2,000,000 is available in the Water Capital Projects Fund (500592) WO #01815301 (Automated Metering)