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REQUEST FOR COUNCIL ACTION Date: January 26, 2015 Item No.: 8.j Department Approval City Manager Approval Item Description: Approve Resolution Awarding Bid for 2015 Meter Replacement Project 1 BACKGROUND 2 The City Council authorized upgrading from a manual water meter reading system to an 3 automated reading system (AMR) in October 2010. AMR technologies allow us to not only 4 remotely read the water meters, but they are designed to be an effective approach in reducing 5 operating costs, enhancing customer service, and mitigating risk. We are realizing these benefits 6 with just over 4,000 new meters and radios already installed. Many customers are appreciative 7 of the enhanced customer service, such as immediate leak detection and detailed usage history. 8 Reading and collecting data from the meters not yet upgraded, however continues to be a labor- 9 intensive and costly process. 10 At its November 10, 2014 meeting, the City Council approved the purchase of 4,400 meters and 11 radios to avoid inflationary cost increases for the completion of the replacement of all water 12 meters in the city. 13 14 DISCUSSION 15 The implementation plan originally was to complete commercial upgrades first, then move on to 16 residential customers. Currently, all commercial properties and 32% of residential accounts are 17 upgraded to AMR equipment. Our estimated completion date was the end of 2016. With each 18 account we implement, we have immediate access to detailed data to improve customer service. 19 If we continue down our current path, it is going to be a challenge to hit our targeted goal to 20 provide all customers and the City this benefit by the end of 2016. We have committed one FTE 21 staff person installing new meters and radios. However, obstacles such as last winter‘s frozen 22 services and water breaks and other unforeseen issues are making it difficult to upgrade as fast as 23 we would like. To meet our initial target completion we would need to commit two FTE staff to 24 installing meters and radios and significant additional hours from other administrative staff for 25 scheduling and data entry. By purchasing all the meters and radios needed to finish the upgrade 26 as a single purchase, and contracting out scheduling and installation, we would not only realize 27 the substantial meter and radio cost savings, but we would also save on administrative costs 28 associated with a longer upgrade process. Staff requested coming back to the Council at a 29 subsequent meeting to present meter installation contractor costs. Estimated numbers showed 30 the cost to be around the $50 to $65 range per installation. Staff has now solicited bids for meter 31 and radio installation from three known local firms that have done these types of projects. 32 Staff requested a bid alternate to include sump pump inspections during the meter replacement 33 appointment. Inflow and infiltration (I/I) reduction and elimination continues to be a priority for 34 the City. The Metropolitan Council Environmental Services (MCES) requires communities with 35 excess I/I to invest in local reduction remedies such as disconnecting sump pumps and 36 Page 1 of 3