Automated Meter Read Water Meter System

Request for Proposal

Robert Galindo, Finance DirectorItem # 5

April 25, 2016

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BACKGROUND

• San Antonio Water System (SAWS) contract to provide meter reading services ended December 2013

• Month-to-month since December 2013

• SAWS sent a letter saying it would like to terminate agreement October 30, 2015

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BACKGROUND CONTINUED

• City sent request to SAWS for an extension

• SAWS agreed to keep meter reading services for 9 months through July 2016 with cost increase

• Cost increases from $1,612 to $3,000 per month beginning November 1, 2015

• Solution and action is needed very soon

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RFP FOR WATER METER READING SERVICES

• Issued June 17, 2015

• Deadline July 20, 2015

• No Responses

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STAFF RESEARCH

• Team is composed of Operations and Administrative Staff

• Viable Options

• Long Term Solution

• General Condition of Water Meter Infrastructure

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WATER METER INFRASTRUCTURE• Meter life is about 15 years for average use

• Current meters installed by SAWS in 2006 • Usage above average

• More than 10 different brands of meters• More time, effort and cost needed for

maintenance

• Hard water minimizes life of meter

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REVIEWED LONG TERM EVALUATION OF POSSIBLE OPTIONS (15 YEARS)

• CONTRACT METER READING ANALOG METERS

• IN-HOUSE METER READING ANALOG METERS

• AUTOMATED METER READS (AMR)

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AUTOMATED METER READ (AMR) RFP• After evaluating all three options in November 2015, it was

decided that the City issue an Request for Proposal (RFP) for the purchase and installation of Automated Meter Read (AMR) Water Meter System

• An RFP was issued on December 16 and submission period closed on January 15

• Received six proposals• Corix Water Products US, Inc • RG3 Meter Company

• HydroPro Solutions • HD Supply Waterworks

• Aqua Metric Sales Company • Ferguson Waterworks Enterprise, Inc

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AUTOMATED METER READS (AMR) RFP

• All proposals were evaluated by evaluation team using six separate criteria areas: – Rates and expenses

– Qualifications and experience

– Project time-line

– Project design and methodology including technical approach and understanding of the scope of the project

– Single vendor overseeing entire project with detailed experience information

– References

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AUTOMATED METER READS (AMR) RFP• The evaluation team believes the proposal submitted by

Ferguson Enterprises, Inc. meets all the RFP requirements and provides the best value for the City.

• Several references that had similar services rendered by Ferguson were contacted.

• Reponses were more than favorable by the agencies for the purchase and installation services provided.

• The AMR meters that Ferguson offers for purchase and installation are Mueller Meters with Hot Rod registers.

• The Mueller Systems Route Management Software is compatible with the City’s current utility billing system InCode.

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MUELLER METERS WITH HOT ROD REGISTERS

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MUELLER METERS WITH HOT ROD REGISTERS

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FISCAL IMPACT• Contract Cost is $910,942 with a twenty percent

(20%) contingency of $189,058 totaling $1,100,000• The City has options to either finance the full

amount at a current rate of 1.95% over a 7 year financing period or utilizing some of the CIED funds to offset the amount to be financed

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AMR PROJECT FUNDING OPTIONSTOTAL ESTIMATED INITIAL COST $1.1 Million

7 YEAR FINANCINGCIED Transfer to Utility Fund $ 300,000 $ 500,000 $ 0

Finance over 7 years from Utility Fund

$ 800,000 $ 600,000 $ 1,100,000

Estimated Annual Payments for 7 years at 1.95%

$ 122,819 $ 92,114 $ 168,875

Estimated Total Cost w/Financing $ 1,159,730 $ 1,144,797 $ 1,182,128

Consideration of an Resolution awarding a contract for the purchase and installation of an Automated Meter Read Water Meter System to Ferguson Enterprises, Inc. and authorizing the City Manager to negotiate and execute contracts (1) for such services and (2) for the financing of such services.