File #: 21-1525    Version: 1
Type: BID, RFP, RFQ, COOP, SOLE SOURCE, OPTION YEAR Status: Passed
File created: 11/16/2021 In control: City Council
On agenda: 12/21/2021 Final action: 12/21/2021
Title: Approve the award of Option Year 2 to Contract 18-285, Water Meter Replacement Program, to HBK Water Meter Service, Inc. for an amount not to exceed $639,111 plus a 3% contingency and for a one-year term
Attachments: 1. WU019, 2. WU020
Related files: 19-007B, 20-1276B
CITY COUNCIL AGENDA ITEM

ACTION REQUESTED:
title
Approve the award of Option Year 2 to Contract 18-285, Water Meter Replacement Program, to HBK Water Meter Service, Inc. for an amount not to exceed $639,111 plus a 3% contingency and for a one-year term
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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 one-inch) water meters and reading devices located at residences throughout the city. Water meters deteriorate with age, losing accuracy as moving parts wear out. Any meter over 16 years of age, in addition to any meter that are not compatible with AMI technology, are targeted for replacement. The term of the award was January 1, 2019 through December 31, 2020. The first optional extension was awarded by the Council on December 1, 2020.

DISCUSSION:
HBK Water Meter Services, Inc. performed well during the first contract extension term. During the current term, the vendor installed approximately 2,700 residential water meters from January 2021 to December 2021.

Because of the COVID-19 pandemic, global chip shortage, and supply chain issues the vendor was not able install as many meters as planned for 2021. Approximately 6,800 3/4-inch and one-inch water meters are currently planned for replacement from January 1, 2022, through December 31, 2022.

Prevailing wages increased 1.5% for a plumber and 3.4% for the laborer from January 2021 to December 1, 2021. Due to these increases, HBK requested a 2% increase for the final optional contract renewal. The requested award is for the term January 1, 2022 through December 31, 2022.

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 $1,350,000 is budgeted for replacement meters under WU019 and WU020 in 2022.

Account Number...

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