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TO: Mayor Richard C. Irvin
FROM: Michael Houston Superintendent of Water and Sewer Maintenance
DATE: August 19, 2024
SUBJECT:
A Resolution authorizing the Director of Purchasing to adopt new unit prices for the billing of water meters and meter accessories.
PURPOSE:
To establish revised billing standards that more accurately reflect the current market pricing for water meters and accessories.
BACKGROUND:
Section 48-II-2 of the City of Aurora Code of Ordinances states that the City owns and maintains all primary water meters. For new developments, the permittee pays a fee to cover the new water meter and accessories required for installation.
Core and Main is the sole source provider for Sensus water meters in our region.
Meters vary in size based on customer consumption needs. Based on 2024 unit pricing established by Core and Main, in nearly every application, the cost incurred by the City to procure meters & accessories exceeds the cost billed to the customer. (See attachment Table 1.1).
DISCUSSION:
In recent years industry pricing has been volatile. In addition to dealing with rising commodity pricing we're seeing an increase in freight, packaging, and labor. The disparity is significant enough for the City to consider adopting new unit pricing for billing purposes. Initial unit pricing to be adopted is shown in Table 1.1, column "Core & Main 2024 Pricing". As prices continue to change, the cost charged by the City should adjust accordingly. The attached resolution would allow the Public Works Director or their designee the option to establish the meter prices annually based upon a 5% increase of the previous year's awarded value approved by the City Council.
IMPACT STATEMENT:
Developers will pay current market pricing for water meters thereby reducing the cost burden on the City's enterprise fund because of rising prices. For reference, in 2023, 477 meter kits were sold. This year, through July of 2024, the City has sold 319 meter kits.
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