From
Ron McCuller
Title
Ordinance amending the FY 2016/2017 Capital Improvement Projects Budget; Contract Amendment with Itron, Inc. and the acceleration of the Automated Metering System installation
Presenter
Ron McCuller, Public Works Director
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. This allowed AMI installation in the portion of the city generally south of I-20.
Another $1,250,000 was likewise budgeted in FY16 for AMI installation. For FY17, $2,190,000 was budgeted. We are currently ahead a schedule on this project, currently working in in area between SH303 and Main Street and predict that we will run out of funds in April or May. Unless we are able to appropriate more funds, the contractor will of necessity leave town and work on other projects, creating a hiatus in the work continuity and perhaps an unacceptable delay in getting the project restarted.
Financial Consideration
We are asking for additional funds of $3,000,000 in order to provide continuity for the remainder of FY17. We plan to budget $2,000,000 in the CIP for this project in FY18 which should allow us to complete the project about midyear of 2018.
Funds are available as follows:
1. $1,400,000 is available by appropriating and transferring from the unobligated fund balance in the Water Capital Projects Fund (500592) to Grant (500892) WO #42514022 (Automated Metering)
2. $1,600,000 is available by appropriating and transferring from the unobligated fund balance in the Water & Sewer Impact Fee Fund (500392) to Grant (500892) WO #42514022 (Automated Metering)
Staff is also requesting that the current year's allocation previously approved by Council on 11/1/16 (16-6156) in Water Capital Projects Fund (500592) WO#01709703 (AMI Meter Project Phase I) be transferred to Grant (500892) WO#42514022 (Automated Metering).
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING THE FY 2016/2017 CAPITAL IMPROVEMENT PROJECTS BUDGET BY TRANSFERRING AND APPROPRIATING $1,400,000 FROM THE UNOBLIGATED FUND BALANCE IN THE WATER CAPITAL PROJECTS FUND (500592) AND TRANSFERRING AND APPROPRIATING $1,600,000 FROM THE UNOBLIGATED FUND BALANCE IN THE WATER/WASTEWATER IMPACT FEE FUND TO GRANT (500892) WO #42514022 (AUTOMATED METERING) AND TRANSFERRING $2,750,000 FROM THE WATER CAPITAL PROJECTS FUND (500592) WO#01709803 (AMI METER PROJECT PHASE I) TO GRANT (500892) WO #42514022 (AUTOMATED METERING)
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. THAT THE FY 2016/2017 Capital Improvement Projects Budget be amended by transferring and appropriating $1,400,000 from the unobligated fund balance in the Water Capital Projects Fund (500592) to Grant (500892) WO #42514022 (Automated Metering)
SECTION 2. THAT THE FY 2016/2017 Capital Improvement Projects Budget be amended by transferring and appropriating $1,600,000 from the unobligated fund balance in the Water/Wastewater Impact Fee Fund (500392) to Grant (500892) WO #42514022 (Automated Metering)
SECTION 3. THAT THE FY 2016/2017 Capital Improvement Projects Budget be amended by transferring $2,750,000 from Water Capital Projects Fund (500592) WO#01709803(AMI Meter Project Ph I) to Grant (500892) WO #42514022 (Automated Metering)
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 7TH DAY OF FEBRUARY, 2017.