Consideration and Approval of Contract:  Purchase Itron Encoder Receiver Transmitters (ERT) Endpoints and related parts and supplies from Mountain States Pipe and Supply, Co. through a Sole Source purchase contract in the amount not to exceed $200,000.

1. Approve the sole source purchase contract with Mountain States Pipe and Supply, Co. to purchase Itron Encoder Receiver Transmitters (ERTs) and any related parts not to exceed $200,000; and
2. Authorize the City Manager to execute the necessary documents.

Water Services utilizes the Itron ERT to transmit meter data to a collector used by the City's Meter Readers. The contract for purchasing Itron ERTs through a cooperative contract has expired and is no longer available. The new ERTs will be used as part of the Radio Read upgrade program which replaces old and out dated meters and ERTs every 10 to 12 years in addition to new meter sets for new construction projects. This sole source purchase contract will purchase approximately 2,300 endpoint units for installation over the next 12 months.

The Radio Read replacement Program is funded annually through the Water Services Operational Budget as well as through project funding.

Radio Read Meter Replacement  202-08-370-3170-0-4461 $267,076 Available FY 2020-21
Water & Sewer Parts 202-08-303-1055-0-4360 $5,445 Available FY 2020-21

Priority Based Budget Key Community Priorities and Objectives

Yes, April 16, 2019 Agenda Item 9E

• Approve as recommended by staff; or
• Reject the use of the Sole Source purchase contract and seek an alternative to the existing system of reading meters.

The City of Flagstaff has been utilizing the Itron Encoder Receiver Transmitters (ERTs) for many years. The Itron system reduces issues caused when different types or manufacturers of meters are used. The last contract for the ITRON ERT was executed in April of 2019 and prior to that was February 2012.

In 2018, Council approved the new meter contract with Core & Main for Neptune Mach10 ultrasonic meters. This was the first step in advancing the City's meter technologies. The ERT also needs to be replaced at the same time due to its limited battery life and the fact that it is a sealed unit.

Attached is a letter from the manufacturer, Itron Corporation, verifying that Mountain States Pipe and Supply, Co. is their only distributor for the state of Arizona making this a sole source procurement.

The City of Flagstaff chose the Itron system as its basic communication platform for all water meters and has been utilizing the system for many years.

Water Services continually funds a meter replacement program whether in the operating budget or under the Capital program. Upgrading the older system to newer technology and batteries will allow the city to continue its path forward in developing an Automatic Meter Read system in the future.

Upgrade the technology for a better more accurate meter data acquisition. The system allows for accurate meter readings that can help the customer be aware of their actual water usage and conserve the valuable resource.