From
Anda Upchurch
Title
Ratify and approve previous equipment purchase from Itron, Inc. in the amount of $150,000; award a new agreement to Itron, Inc., a sole source provider, for ongoing annual maintenance to the Automated Metering Infrastructure (AMI) System, and the purchase of AMI modules and meter reading equipment; this new agreement will be for 15 months in the amount of $509,151.22, with the option to renew for four additional one-year periods, with a 5% annual increase on the maintenance, totaling $2,346,620.99 if all extensions are exercised; authorize the City Manager to execute the renewal options with aggregate price fluctuations of the lesser of up to $50,000 or 25% of the original maximum price so long as sufficient funding is appropriated by the City Council to satisfy the City’s obligation during the renewal terms
Presenter
Gabriel Johnson, Director of Public Works
Recommended Action
Approve
Analysis
In August 2014, the City of Grand Prairie received proposals for an Automated Metering Infrastructure (AMI) System (RFP# 14104).
A provision of RFP # 14104 stated the City intended “to award a contract for a five-year deployment. However, the Proposer’s obligations to warranty and support the system shall extent for the life of the system expected to be 20 years.” Annual maintenance costs during the deployment phase were approved by City Council as part of the implementation contract.
The final equipment order placed under this contract exceeded the approved contract amount by $150,000.00. At this time, staff is requesting ratification and approval for the final equipment order placed under contract 14104. Additionally, please approve a price agreement for ongoing maintenance costs as well as for sole source equipment purchases for the next five years.
Chapter 271.022 of the Local Government Code authorizes local governments to exempt competitive sealed bids/proposals when the required items or services are only available from a single source.
Previous Contract #14104 Contract Value Paid by Water Department
Approved Contract Amount $14,324,550.22
Previously spent $14,250,909.28
Amount remaining on contract $73,640.94
Final order amount $223,640.94
Difference: $150,000.00 *ratify
New Contract #20040
Hardware, equipment, parts Contract Value To be paid by Water Department
FY20-21, 15-month term $336,420.94
FY22 $268,816.87
FY23 $267,618.79
FY24 $268,499.73
FY25 $269,424.71
Subtotal: $1,410,601.04
Network-as-a Service Annual Maintenance To be paid by IT Department
FY20-21 $98,993.64
FY22 $102,735.82
FY23 $107,872.61
FY24 $113,266.24
FY25 $118,929.56
Subtotal: $541,797.87
New Contract for Itron Managed Services-InField Network Maintenance - To be paid by IT Department
FY 20-21 $73,916.64
FY22 $76,380.53
FY23 $78,844.42
FY24 $81,308.30
FY25 $83,772.19
Subtotal: $394,222.08
New Contract Grand Total $2,346,620.99 *if all extensions are exercised
Financial Consideration
Funding for equipment orders through September 30, 2020 are available in the Water Capital Projects Fund (500592) WO #02009903 (FY20 AMI Meter Maintenance) and FY 2019/2020 Water Wastewater Fund, Water Meters (361010-68280), and will be charged accordingly on orders through the end of the current fiscal year. Funding for future fiscal years will be paid from that year’s approved budgets.
Funds for Network-as-a-Service annual maintenance and Itron Managed Services/In-Field Network Maintenance will be paid thru the City's Information Technology Department. Funding for future fiscal years will be paid from that year's approved budgets.