Consideration and Acceptance of Bid: 2014-75 for Utility ITRON Reader Water Communication Modules

Accept bid from National Meter and Automation, Inc. for the purchase of Itron Water Communication Modules in the amount of $95,000 annually.  Authorize the City Manager to execute the necessary documents.

The City is currently not under contract with any vendor to purchase Itron Water Communication Modules and has been making purchases on an as needed basis from a variety of vendors.  The lack of a formal bid has kept the City from securing a guaranteed supply of Itron Water Communication Modules.  The bid will provide a steady supply of parts at a guaranteed price for the term of the contract.  In addition, the recommended Water Communication Modules are capable of reading in two different modes: automated meter reading (AMR), or drive-by reading, and advanced metering infrastructure (AMI), or fixed network reading.  This will allow the City to easily convert from drive-by infrastructure to fixed network infrastructure in the future.

Subsidiary Decisions Points: None.

The City is currently purchasing Itron Water Communication Modules for similar prices directly from multiple vendors.  This contract will allow the City to continue purchasing Itron Water Communication Modules and have a formal bid/pricing structure in place.  This item is budgeted every year as part of the ongoing meter replacement/maintenance program.  The recommended bid translates into an estimated reduction of $1.00 per unit for the dual port units the City currently purchases.  The City does not currently buy tri port units but staff felt that a bid should contain the tri port units in case of future need.  Based on estimated quantities for dual port and tri port units, the combined price to the City will be lower with National Meter and Automation, Inc. than the other vendors. 

Repair, replace and maintain infrastructure (Water Meter Reading Equipment).  The Itron Water Communication Modules are a key component for timely and accurate water meter reads.

No.

1) Accept bid from lowest responsive and responsible bidder National Meter and Automation, Inc.
2) Do not approve the recommended bid with National Meter and Automation, Inc. and continue to purchase Itron Water Communication Modules without a contract on an as needed basis.

In the late 1990's, the City of Flagstaff began a process of transitioning from a manual water meter reading process to an automated water meter reading process utilizing automated meter reading (AMR), or radio read, technology.  As part of the transition to an automated process, each water meter in the City requires conversion to radio read meter technology, specifically a radio read capable water meter register and an encoder receiver transmitter (ERT).  With this technology, City staff is able to read meters via radio signals rather than through a visual read.  The conversion process is approximately 80% complete through May 2014.

Throughout this process, the City has utilized Itron meter reading technology.  The recommended bid will allow the City to continue as an Itron customer and not require any technology changes or upgrades.  Itron is an industry leader and is compatible with virtually every major water meter manufacturer.

This contract will allow the City to continue the process of transitioning to an automated meter reading (AMR) technology for meters that are currently read visually.  It will also allow the City to replace Water Communication Modules that fail.

None.

This contract will allow the City to continue purchasing Itron Water Communication Modules and have a formal contract/pricing structure in place.  A formal contract will guarantee delivery of essential components for the water system and ensure that there is minimal impact to customers, such as misreads and incorrect billings, from failed equipment that the City is unable to replace in a timely manner.

Inform.