File #: 20-1276B    Version: 1
Type: BID, RFP, RFQ, COOP, SOLE SOURCE, OPTION YEAR Status: Passed
File created: 11/18/2020 In control: City Council
On agenda: 12/1/2020 Final action: 12/1/2020
Title: Approve the award of Option Year One to Contract 18-285, Water Meter Replacement Program, to HBK Water Meter Service, Inc. for an amount not to exceed $561,246 plus a 3% contingency and for a one-year term
Attachments: 1. Project Page (WU019), 2. Project Page (WU020)
Related files: 19-007B, 21-1525
CITY COUNCIL AGENDA ITEM

ACTION REQUESTED:
title
Approve the award of Option Year One to Contract 18-285, Water Meter Replacement Program, to HBK Water Meter Service, Inc. for an amount not to exceed $561,246 plus a 3% contingency and for a one-year term
body

DEPARTMENT: Water Utilities

SUBMITTED BY: Darrell Blenniss, Director

BOARD/COMMISSION REVIEW:
N/A

BACKGROUND:
In January 2019, the City Council approved Bid 18-285 to replace approximately 11,000 small-diameter (3/4-inch and 1-inch) water meters and reading devices located at residences throughout the city. Water meters deteriorate with age, losing accuracy as their moving parts wear out. Any meters over 16 years old, in addition to any meters that are not compatible with AMI technology, are targeted for replacement. The term of the award was January 1, 2019 through December 31, 2020.

DISCUSSION:
HBK Water Meter Services, Inc. performed well during the original contract term. During the current term, the vendor installed approximately 7,000 residential water meters from April 2019 to December 2020. Due to the COVID-19 pandemic the vendor was not able install as many meters as planned. Approximately 6,000 3/4-inch and 1-inch water meters are currently planned for replacement from January 1, 2021 through December 31, 2021.

Due to increases in postage, insurance, and prevailing wages, HBK requested a 2% increase. On November 17, 2020 Council directed staff to negotiate with the vendor for a zero percent increase. The vendor agreed to the City's request. As a result, there will be no price increase for the first option year. The requested award is the first of two optional renewals and for the term January 1, 2021 through December 31, 2021.

FISCAL IMPACT:
CIP: WU019, WU020

Water meter replacements are expensed to the infrastructure account listed below as part of the capital improvement program. A total of $1,700,000 is tentatively budgeted for replacement meters under WU020 in 2021. An additional ...

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