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TO: Mayor Richard C. Irvin
FROM: John Hoffmann, P.E., Engineering Coordinator
DATE: August 21, 2023
SUBJECT:
A Resolution authorizing the Director of Purchasing to enter into a professional services agreement with Olea Networks, Inc. DBA Olea Edge Analytics, Bee Cave, TX for large water meter sensor and analytical services in the amount of $185,300 with an additional $100,000 of contingent meter repair services, for a total of $285,300.
PURPOSE:
Large meter testing programs are an important tool to combat water loss and maintain revenue. The City’s largest water meters, 98 4-inch and 11 6-inch meters, constitute only 0.2% of all the City’s water meters but see 3.8% of total end-user flow. The City has not previously conducted a targeted meter testing program on the large meters. Preliminary analysis through Sensus Analytics, a meter health diagnosis tool provided by the meter manufacturer, estimates that issues with the City’s largest meters result in $257,275 in lost annual revenue.
BACKGROUND:
The City advertised a QBS on March 16, 2023 with submissions due on April 7, 2023. Due to the specialized nature of the request, only two firms responded. A team of three individuals reviewed the submittals and selected Olea Edge Analytics (Olea) as the highest-ranking firm. Staff then engaged with Olea over the next several months to finalize the scope to achieve the most cost-effective solution across the one-year program. Based on the success of the program, the City will have the option to continue the use of the meters in future years and also determine if monitoring smaller meters would further reduce the City's water losses and recapture additional revenue.
DISCUSSION:
Though the City’s largest meters represent only a small amount of the total meter population, they measure an outsized proportion of total end-user flow. Olea’s sensors are installed directly on the large meters, providing detailed analysis on the health and flow profiles of each meter. This enables City staff to determine whether the meter needs to be right-sized (matching the flow profile of the meter size to the flow profile of the end user), repaired, or replaced. City staff aim to use these devices to correct all issues with the largest meters, therefore establishing a baseline for which staff can then enact annual flow-testing programs to maintain meter accuracy.
This project will be funded by account 510-4058-511-32.23 (IB058) which has sufficient funds to cover the project. The attached Exhibit "A" shows the two proposals for these services that were received, and that Olea Edge Analytics was the highest ranked vendor. The cost of the program is $185,300 with an additional $100,000 earmarked for contingent external meter repair services. Local preference does not apply to qualified based selections.
IMPACT STATEMENT:
The sensors can be installed with no service interruption to the customer's service; minor disruption is to be expected in the event that the sensors identify a meter that needs to be replaced or serviced. Water and Sewer Meter Shop staff will also receive meter training from Olea Edge.
RECOMMENDATIONS:
I recommended the proposed resolution be adopted.
cc: Infrastructure and Technology Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution authorizing the Director of Purchasing to enter into a professional services agreement with Olea Networks, Inc. DBA Olea Edge Analytics, Bee Cave, TX for large water meter sensor and analytical services in the amount of $285,300.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, Large meter testing programs are an important tool to combat water loss and maintain revenue; and
WHEREAS, 98 4-inch and 11 6-inch meters will be equipped with meter sensors and analyzed to determine meter accuracy and recommended sizing, repairs or replacement; and
WHEREAS, the attached Exhibit "A" shows the two proposals that were received, with Olea Networks, Inc. DBA Olea Edge Analytics being the highest ranking consultant; and
WHEREAS, the cost of the program is $185,300 with an additional $100,000 earmarked for contingent external meter repair services; and
WHEREAS, the required funds will come from account 510-4058-511-32.23 (IB058).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: the Director of Purchasing is hereby authorized to enter into a professional services agreement with Olea Networks, Inc. DBA Olea Edge Analytics, for large water meter sensor and analytical services in the amount of $285,300.