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Title
Change order #6 for the advanced metering infrastructure project with Itron, Inc.increasing the Itron, Inc. contract by the current year's budget allocation of $2,750,000 for a revised current contract amount of $9,093,597
Presenter
Ron McCuller, Public Works Director
Recommend Action
Approve
Analysis
On July 14, 2015 City Council awarded a contract to Itron, Inc. for the provision of a fully functioning automated metering infrastructure (AMI) System. The conversion to the new system was to take place over a 5 year period as additional funding is approved by City Council. As part of the FY 2016 budget process additional funds were approved for this project in the amount of $1.25 million.
On November 3, 2015 City Council approved am amendment to the contract with Itron, Inc. for the automated metering infrastructure system in the amount of $1.25 million for year 2 funding of the project and $400,000 for replacement meters as needed. For a total contract amount of $6,900,000, contingent upon future funding approval by the City Council.
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.
Change orders No. 2-4 were additional items needed for the project that were not included in the original pricing structure. On March 1, 2016, a clarification of the Itron, Inc. contract in the amount of $6,900,000 was presented to the City Council.
As the AMI project progressed, it became apparent that certain areas of the City would be in need of updating existing meter boxes, risers and lids so that the AMI system would be functional for all. The $556,403 will be used for price agreements with Bass & Hays (meter boxes), HD Waterworks (gaskets, riser and bolts) and BlackAnvil (meter bolts) as item 16-5835 on the 7/12/16 City Council agenda.
Change order No. 5 requested $556,403 was released from the current Itron contract C15127 for the purchase of necessary operating and replacement parts directly related to the AMI project. For a revised budget of $6,343,597.
The current Change Order No. 6 increases the Itron contract by $2,750,000 for a total revised Itron contract amount of $9,093,597. These funds were made available due to a favorable interest subsidized loan from the Water Development Board. Due to the escalated timeline on the project, multiple phasing pricing was being used. To prevent possible over or under charging, Staff requested a current year's pricing (attached EXHIBIT A). The costs have been reviewed by the City purchasing department.
The current AMI Itron, Inc. approved project total is $11,830,921. After the current request is approved, funding for the Itron contract with be $9,093,597 which is 76.8% of the total project. Depending on future year's budget allocations, remaining funding eligible for the AMI Itron, Inc. project will be $2,737,324.
The current Itron contract will not exceed the remaining funds available before the FY 2017/18 budget allocation.
Financial Consideration
Funding in the amount of $2,750,000 for Change Order #6 Advanced Metering Infrastructure project from Itron, Inc., is available in the Water Capital Projects Fund (500592) WO #01709703 (AMI Meter Project Phase I)