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TO: Mayor Thomas J. Weisner
FROM: Beatrice Torres, Assistant Finance Director of Water Billing
DATE: October 3, 2014
SUBJECT:
Resolution to Accept the Proposal of United Meters, Inc., Morris, Illinois for the 2014 Water Meter and Reading Device Change-Out Program.
PURPOSE:
To obtain the City Council's approval of a proposed resolution that would permit the execution of a contract with United Meters, Inc., to replace residential and commercial water meters and reading devices in the City.
BACKGROUND:
The City conducted a meter and reading device change-out over 10 years ago. The radio-read devices that were installed over 10 years ago are highly efficient. Customer Service Workers can almost instantaneously obtain many readings in a large geographical area by simply activating a computerized receiver unit within a specified distance of that area. Customer Service Workers need not enter a building to obtain a reading or even approach the building. Inclement weather has little impact upon the ability of the Customer Service Worker to obtain readings.
The batteries in the Sensus RadioRead Meter Transceiver Units (MXUs) that were installed over 10 years ago are expiring/have expired and there is an urgent need for all older model reading devices to be replaced with the new SmartPoint reading devices. Also, the older model meters will need to be replaced with the new iPerl meters because the reading accuracy of the older model meters has deteriorated over the years. As reading accuracy declines, the meters do not measure all usage and amounts due are understated.
The amount of estimated reads for Water Billing customers is slowly increasing to 3-4 estimates for the past few billing periods due to the large amount of MXU reading device batteries expiring. Although the Water Meter Maintenance Division has continued to do some "change-out" projects, the staffing of the division is insufficient to permit it to undertake a program to change-out meters and reading devices throughout the City. The focus of the Water Meter Maintenance Division is primarily upon repairing water meters and installing meters in new construction. Therefore, a decision package for $800,000 per year for the next six years was provided in the 2014 City Budget to begin an annual, large-scale "change-out program" through the engagement of an outside contractor. Funding is available in the Water Billing Fund of the 2014 budget and the anticipated 2015 budget, account numbers 510-2560-511.38-53 and 510-2560-511.65-50.
DISCUSSION:
The City solicited proposals for the 2014 Water Meter Change-Out Program. On August 6, 2014 the City received qualified proposals from four firms. The total price for installation of the 5/8" and 3/4" meters and reading devices for this project (cost of meters & reading devices not included) is listed below per company.
R.J. O'Neil Inc. $8,640,450
Calumet City Plumbing & Heating Co., Inc. $3,006,750
Professional Meters, Inc. $2,985,228
United Meters, Inc. $2,848,500
While the differential in the proposals of Professional Meters, Inc. and United Meters, Inc. is inconsequential, United Meters, Inc. is the preferred firm for the following reasons; 1) United Meters has significant current experience in installing water meters and reading devices manufactured by Sensus. The City has adopted Sensus water meters as its standard. 2) A handful of current United Meters staff and installers worked on our original project over 10 years ago. 3) We contracted with United Meters in April, 2014 to help assist the Water Meter Maintenance Division change-out meters and reading devices due to the increase in customer appointments. United Meters is most familiar with our problem and have already worked with us on changing out our meters and reading devices.
Subsequent to the original submission of this recommendation, a staff selection committee heard presentations from the two companies with the most competitive proposals (UMI and PMI). This was in response to a request from PMI. In the final analysis, the committee determined that UMI submitted the lowest responsible proposal.
IMPACT STATEMENT:
Currently, the City bills its water customer's bi-monthly based upon actual readings (if they can be obtained). Estimated bills based upon historical consumption patterns are issued whenever a read cannot be obtained. There are a few areas of town that customers are now into their 3rd system generated estimate. This causes concern with customers when we are finally able to obtain a read from their meter and the system generated estimate was too low. Once the change-out is complete we will be able to read meters accurately and promptly. With the iPerl meters and SmartPoint reading devices in place, we could then install the FlexNet Towers that will read our meters automatically eliminating our current drive-by system and allowing us to detect leaks and tampering almost instantly.
RECOMMENDATIONS:
If approved, please forward to the Finance Committee for the October 14, 2014 committee meeting.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution to Accept the Proposal of United Meters, Inc., Morris, Illinois for the 2014 Water Meter and Reading Device Change-Out Program.
body
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, in 2000 the City of Aurora migrated to a radio-read system, replacing manual read meters with radio-read meters and since its inception the batteries in the Sensus RadioRead Meter Transceiver Units (MXUs) are expiring or have expired which is causing an increase in system generated estimates for customer's water bills; and
WHEREAS, the City desires to implement a large-scale "change-out program" replacing old meters with new iPerl Meters and replacing old MXU reading devices with new SmartPoint reading devices; and
WHEREAS, the City expects to change-out approximately 30,000 water meters and reading devices throughout the duration of the project; and
WHEREAS, proposals were received and publicly opened and read on August 6, 2014, for the 2014 Water Meter and Reading Device Change-Out Program and United Meters, Inc., Morris, Illinois, submitted the lowest responsible proposal meeting all proposal specifications in the amount of $2,848,500.00; and
WHEREAS, funds have been appropriated in Water Billing's 2014 budget and the anticipated 2015 budget in the amount of $979,000.00 for the first phase of this project; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: does hereby authorize the execution of a contract with United Meters, Inc., in the amount of $2,848,500.00 or as specified above, to implement a Water Meter and Reading Device Change-Out Program for the City of Aurora.
PASSED AND APPROVED on ______________.
AYES ____ NAYS ____ NOT VOTING ____ ABSENT ____
____________________________ __________________________
Alderman Bohman, Ward 1 Alderman Garza, Ward 2
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Alderman Mesiacos, Ward 3 Alderman Donnell, Ward 4
____________________________ __________________________
Alderman Peters, Ward 5 Alderman Saville, Ward 6
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Alderman Hart-Burns, Ward 7 Alderman Mervine, Ward 8
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Alderman Bugg, Ward 9 Alderman Johnson, Ward 10
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Alderman Irvin, At Large Alderman O'Connor, At Large
ATTEST:
____________________________ __________________________
City Clerk Mayor