AgdaPkt 2013-06-24 Closed and Joint Amended 06-21_2013

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6.1.K. - Page 1 RE PO RT To the Honorable Mayor and City Council From the Cit Mana er June 24, 2013 SUBJECT Long Term Automated Water Meter Purchasing Agreement RECOMMENDATION Approve, by motion, and authorize the City Manager to execute, a Purchasing Agreement with Golden State Flow Measurement (for the purchase of cold water meters and AMI transceivers) for a 2-year term in the amount of $1,799,950, and authorize the City Manager to renew the agreement for two additional 2-year terms in an amount not to exceed $5,750,000. BACKGROUND Public Works is in the process of converting all of the City's manually-read water meters to Automated Meter Infrastructure (AMI). In 2008, the City initiated a pilot program to test AMI effectiveness. AMI proved to be successful in not only saving employee labor cost by virtue of automated meter reading, but also by saving a significant amount of water through advanced leak detection and notification. The material cost to convert the City's aging metering infrastructure to AMI is approximately $7.5 million. The City obtained $300,000 in federal grant funding for AMI implementation and continues to pursue additional money as funding opportunities become available. ANALYSIS In March 2013, Public Works issued a request for proposals (RFP) to receive bids for the supply of cold water meters and AMI transceivers for use on a Sensus FlexNet AMI network. The RFP included two bid options for a multi-year agreement to establish a reliable supply of ineters and transceivers. The first bid option included a 5-year contract to supply meters and transceivers for a complete AMI conversion, and requested a single unit price for each size meter. The second bid option included a phased approach beginning with a 2-year contract and the option to renew annually for up to 3 years for a total of 5 years. Option two also requested a unit price for each size meter. However, the 5/8 inch meter population, which makes up over 80% of the total meter population, was divided into tiered quantity brackets enabling Public Works to receive the best volume pricing while offering additional flexibility for implementation of AMI. Award of a contract would be to the responsive and responsible bidder whose offer conformed to the RFP and was most advantageous to the City.