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Title
Change order #5 for the advanced metering infrastructure project with Itron, Inc. reducing the Itron, Inc. contract by $556,403 ($340,821 of this amount to be used for necessary operating and replacement parts directly related to the advanced metering infrastructure project goals)
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.
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 has 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.
The current change order No. 5 requests $556,403 be released from the current Itron contract C15127. Of the $556,403 released, $215,582 to be available in the FY 2015/2016 Water Wastewater Fund (361010-68280) and $340,821 to be available in the Grant Fund (500892-42514022-68540) for the purchase of necessary operating and replacement parts directly related to the AMI project.
The current Itron contract will not exceed the remaining funds available before the FY 2017 budget allocation.
Financial Consideration
Funding for Change Order #5 Advanced Metering Infrastructure project from Itron, Inc., at a negative amount of ($556,403) is available in the Grant Fund (500892-42514022-68540-$340,821) and in the FY 2015/2016 Water Wastewater Fund (361010-68280-$215,582).