CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order One to Contract 16-260, Meter Reading Services for Water, to Alexander's Inc., expanding the scope of services and extending the contract term by four months to December 2021 (Item 2 of 2)
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Finance Department employed a full-time meter reader to perform specialty water meter reads, including AMR reads, re-reads and final reads, and Electric NWMA reads. The employee retired at the end of September 2020. Because the Water Utility is projecting that all meters will be converted to AMI by the end of 2021, the Finance Department contacted the City's current vendor, Alexander's, Inc., and requested a quote to add water meter reads and extend the final option year of the contract by four months (September 2021-December 2021).
DISCUSSION:
Alexander's, Inc. provided a quote and staff determined that accepting the quote would be more cost effective than hiring a new meter reader employee. As such, the Finance Department is recommending the Water AMR, final reads, and re-reads be added to the existing meter reading contract. The Electric NWMA reads will continue to be performed by City staff because outsourcing is not cost effective and security concerns were presented regarding access to the Smart Grid network. Staff also recommends the final option year be extended through December 31, 2021 to better align with projected November 2021 completion of the Water AMI project.
Although the duration of the final option year is longer, and the Finance meter reader reads is being added to the scope of services, staff further recommends an award amount ($445,000) that is less than the award for the second option year ($483,600). As the Water AMI contractor converts water meters to the AMI system, the number of reads conducted by Alexander's, Inc. staff will decline. The award a...
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