TO: Mayor and Commissioners
FROM: John Morgan, Director of Environmental Services
THROUGH: Donald B. Cooper, City Manager
DATE: August 16, 2016
Title
CHANGE ORDER NO. 1 TO INNOVATIVE METERING SOLUTIONS, INC. (WATER METERING EQUIPMENT SUPPLIER) IN THE AMOUNT OF $300,000 FOR THE PURCHASE OF ADDITIONAL WATER METERS FOR THE WATER METER REPLACEMENT AND ADVANCED METERING INFRASTRUCTURE PROJECT (PROJECT NO. 2012-013).
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Recommended Action:
Recommendation
Motion to Approve Change Order No.1 in the amount of $300,000 for the purchase of additional water meters related to the Water Meter Replacement and Advanced Metering Infrastructure Project (Project No. 2012-013).
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Background:
On January 15, 2013, City Commission approved the first-year of a multi-year water meter replacement contract to Innovative Metering Solutions, Inc. (IMS), as the metering equipment vendor. The water meter replacement project was awarded utilizing “Badger” brand water meters through a formal bid process. The total project award recommendation was for the multi-year project totaling $5,145,964.70, phased over five to six years.
Subsequent to project commencement, staff determined that accelerating the implementation of the water meter replacement would ensure that the City was accounting for all water distributed to customers. On March 3, 2015, City Commission approved the acceleration of the project, implementing all subsequent phases, not exceeding the $5,145,964.70 per the original award recommendation of January 15, 2013. The project is nearing completion, with 70 percent of the meters replaced.
Prior to this replacement project, the City previously used Sensus brand water meters. For the most recently installed Sensus brand meters (less the five years old), Badger offered a retrofit kit with their Meter Interface Units (MIU’s), although cautioned that it may not be completely reliable on all models of Sensus meters. However, during project scope development, retrofitting these Sensus meters was considered more cost effective than a complete new meter. Of the estimated 3,600 Sensus units identified for retrofit, approximately 800 have been completed, and reliably operational. Unfortunately, of the remaining 2,800 units, retrofits will not work; therefore these units will need to be replaced with new water meters. The estimated cost difference between retrofit kits and new meters is an additional $264,604.75 in meters (labor is per another contract). In addition, staff requests to purchase two additional hand held water meter reading units for $9,000 ($4,500 ea.). All associated costs are itemized on the attached Change Order spreadsheet.
In summary, this Change Order No.1 in the amount of $300,000, includes the additional material cost of new meters vs retrofits kits and the purchase of two additional hand held meter reading units, as itemized on the attached spreadsheet.
This recommendation is in compliance with the City Code of Ordinances, Chapter 36, Section 36.06(A)(1), "Change Orders, Beyond Scope of Work".
City Attorney Review:
Approved as to form and legal sufficiency.
Finance Department Review:
Finance recommends approval.
Funding Source:
Funding is available from project account, 442-5178-536-64.46, Water & Sewer Fund/Automatic Meter Reading, after budget transfers.
Timing of Request:
This request is time-sensitive in order to keep the accelerated project on schedule.