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TO: Mayor Thomas J. Weisner
FROM: Ken Schroth, P.E., Director of Public Works / City Engineer
DATE: January 18, 2016
SUBJECT:
Resolution Approving a Settlement Agreement and Authorization of a Contract for the Installation of a FlexNet System with a Five-Year Service for Analytics with the Sensus, USA, Inc Company for the Water and Sewer Meter Maintenance Division and the Water Billing Division
PURPOSE:
To obtain approval of the settlement agreement and authorization for an installation contract and a five-year service for Analytics with Sensus, USA, Inc., Raleigh, North Carolina.
BACKGROUND:
In 2013, an interdepartmental staff committee comprised of representatives from the Finance Department (including the Water Billing Division) and the Public Works Department (including the Water Production Division, Water & Sewer Maintenance Division, and Water Meter Maintenance Division) met to consider how to address the replacement of aging mechanical water meters and expiring batteries attached to the water meters. After many years in service, the metering accuracy of mechanical water meters can decline. The batteries power the electronic reading transmission component (MXU) of the meters. Those batteries must also be replaced as they expire. The MXU is a small device that attaches to a water meter and relays the reading via radio signal to a nearby vehicle mounted antenna to obtain bi-monthly readings. Prior to 2013, the City had been installing Sensus SmartPoints and iPerl meters on a limited basis. The interdepartmental staff committee met several times to review and select the next generation of MXU's that should be installed to replace the aging MXU's that had old batteries. After considering two major alternative hardware systems, the committee chose the Sensus smartpoint as the preferred MXU since there was no basis for departing from Sensus products and the fact that one day the City would be installing an Advanced Metering Infrastructure (AMI) as part of our efforts to reduce water loss. The Sensus AMI system known as Flexnet is capable of reading all meters in the City from just four strategically mounted antennae in the City. The Flexnet system utilizes Sensus Smartpoints at the water meter to relay data to the antennae. Once fully installed, the system will provide near real-time readings which will allow the City to begin to monitor water consumption in smaller districts to assist in water loss prediction. The City has approximately 48,000 MXU's in the system, approximately 22,000 of the MXU's are Sensus Smartpoints and we are currently replacing old MXU's with Smartpoints at a rate of 14,000 units per year. However, the City does not have the infrastructure in place to operate the Flexnet system since the antennae and software must be installed. Our plan was to install the Flexnet system in FY 2016.
In summer 2015, City staff was made aware that a particular batch of Sensus Ipearl meters were manufactured without a specific seal (manufacture date prior to July 1, 2014) that could potentially allow water to infiltrate the electronic component portion of the meter which may cause an erroneous meter reading. The manufacturer has found that a small fraction of one percent of that particular batch of meters has had issues. The City has approximately 48,000 meters in the system and roughly 11,000 are Ipearls and of the installed iPerls there are roughly 3,000 Ipearls in the system that were manufactured in the particular batch without seals. Once the Flexnet system is installed, the additional recorded data will allow the manufacturer to determine if any of the 3000 subject meters need to be replaced. City staff have met with Sensus representatives several times to negotiate a potential resolution.
DISCUSSION:
Under the proposed settlement agreement, Sensus will install the Flexnet System and cover the one-year service fee. The value of the installation, equipment, and service is approximately $197,000. In addition, Sensus will provide the City with a $70,000 product credit for additional purchases. Sensus will also provide the City with a water meter product credit for any of the 3,000 Ipearls that the City chooses to replace during a three year period following the effective date of the Settlement Agreement. Sensus has also agreed to extend the warranty coverage on replacement meters.
The agreement is advantageous, in that the City will have the Flexnet system installed which was a planned future improvement and expense; once fully deployed the effort in reading meters will be dramatically reduced; additional meter data will determine if any meters need to be replaced; and a substantial product credit will be given to the City which could include up to 3,000 replacement meters if desired.
Funds are not necessary in the FY 2016 budget, but annual service cost of $30,000 - $35,000 will be required after the first year of the contract.
IMPACT STATEMENT:
Assistance from the MIS Division will be necessary to integrate the new software and assist in connecting the antennae installations into the City's Fiber network.
RECOMMENDATIONS:
That a resolution approving the Settlement Agreement and Authorization of a Contract for the Installation of a FlexNet System with a Five-Year Service for Analytics with the Sensus, USA, Inc Company for the Water and Sewer Meter Maintenance Division and the Water Billing Division be approved by the Mayor and City Council. It is further recommended that this matter be submitted to the Finance Committee for review and recommendation
cc: Alderman O’Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Mesiacos, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution Approving a Settlement Agreement and Authorization of a Contract for the Installation of a FlexNet System with a Five-Year Service for Analytics with the Sensus, USA, Inc Company for the Water and Sewer Meter Maintenance Division and the Water Billing Division
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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, Advanced Metering Infrastructure will improve upon the operational efficiencies of the Water Billing Division and provide additional data to assist in water loss studies and confirmation of some meter accuracies; and
WHEREAS, the attached Proposal and Settlement Agreement will provide for the construction of the Flexnet System as well as additional product credits to offset the potential replacement of certain meters; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: Hereby authorizes approval of the attached Settlement Agreement and proposal with Sensus, USA, Inc. and does hereby further authorize its Purchasing Director and Corporation Counsel to issue the necessary orders and to execute the necessary agreements.