Eastern Municipal Water District
California

Action/Info Item
3881

Approve and Authorize a Two-Year Agreement with Aqua-Metric Sales Company, in the Full Term, Not-to-Exceed Total of $2,587,000 for the Purchase and Supply of Automated Metering Infrastructure (AMI) Meters and Appurtenances

Information

Department:ContractsSponsors:
Category:Action/Info ItemMeeting Workflows:Board Admin Committee Workflow

Attachments

  1. Printout

Background

The District finalized its Automated Metering Infrastructure (AMI) conversion project on May 24, 2019, where approximately 154,000 AMI installations were completed.  Over the multi-year effort, the District’s Warehouse provided materials and scheduling support in supplying such items as water meters, meter boxes, box covers, and AMI specific transmitters and equipmentDue to the high volume of purchase activity, logistics, and associated scheduling requirements needed to meet District requirements, Sensus USA, the District’s AMI system manufacturer, worked closely with Warehouse staff to coordinate and supply the required components directly to the District versus through their established distribution network.  The existing supply agreement with Sensus is scheduled to expire on August 31, 2019, and the company has directed the ongoing supply and support of District needs to its sole authorized Southern California distributor, Aqua-Metric Sales Company of Riverside. 

 

Aqua-Metric is a full-service, factory authorized distributor for all Sensus products and services.  In addition, the firm provides on-site technical resources and twenty-four hour support with multiple technicians located throughout Riverside County.  Due to the company’s proximity to the District and ability to quickly replenish stock, Warehouse inventory quantities and resulting costs are anticipated to decline.

 

New Technologies

 

Beginning in 2018, Sensus released initial quantities of the Ally brand water meter for testing.  This meter, with built in AMI connectivity, provides on, off, or trickle flow capability that can be activated remotely.  Essentially, the Ally meter can be used to remotely activate a new account or to discontinue service with the push of a button.  This functionality eliminates the costly and time consuming dispatch of District resources. 

 

At this time, Sensus has released a 5/8” version of the Ally meter.  Should the technology prove successful through testing currently being performed by the Meter Services department, it is then planned to deploy these meters at frequently visited customer accounts having a 5/8” service.  The release date of a 1” Ally water meter has not, yet, been confirmed.  However, it is anticipated that the 1” meter, which is required for new account installations, may occur in 2020.

 

Contract Term and Anticipated Use

 

With completion of the AMI effort, the use of Sensus brand materials will transition from that of accelerated conversion to the support of new installations, repair, and replacement on an as-needed basis. 

 

Also to be considered in projecting contract utilization is the depletion of stock on-hand.  Through the Sensus transceiver exchange program, which incentivized the replacement of Automated Meter Reading (AMR) style, or drive-by technology, over 6,000 single-port transceivers were secured at discounted rates.  These transceivers are currently available for issue through inventory and are anticipated for depletion in approximately 24-months.

 

Lastly, pending the results of the aforementioned 5/8” Ally water meter testing, as well as the anticipated release of 1” Ally meters, long-term use and expenditures are yet to be determined.

 

Accordingly, the Purchasing department has negotiated a recommended two-year contract with Aqua-Metric that is equal in price to the previous direct purchase agreement with Sensus.  It is projected that, over the recommended two-year term, the use and quantity of AMI related materials and equipment will be refined in consideration of the aforementioned factors.

 

Anticipated use and expenditures for key contract items are reflected in the table below:

 

Estimated Annual Use and Pricing

 

 

Estimated Annual Quantity

Cost Per Unit

Estimated Annual Cost

Meter, 5/8” Standard

1,580

$97.92

$154,714

Meter, 1” Standard

2,500

$143.82

$359,550

Meter, 5/8” Ally

*800

$385.00

$308,000

Meter, 1” Ally

*300

$600.00

$180,000

Transceiver, single-port

3,500

$95.72

$0 (stock on-hand)

Transceiver, dual-port

1,500

$101.96

$152,940

Miscellaneous items

 

 

$106,796

Total

 

 

$1,262,000

*Pending successful testing and product release.

 

Financial/Strat Plan/Enviro

FINANCIAL IMPACT:

Funding for this item is provided for in the Biennial Budget for Fiscal Years 2019-20 and 2020-21.

 

STRATEGIC PLANNING GOAL/OBJECTIVE:

Implement industry-leading billing, communication, and other service deployment technologies that simplify and improve the customers’ experience with EMWD while also improving efficiency.

 

ENVIRONMENTAL IMPACT:

None

Recommendation

Approve and authorize a two-year agreement with Aqua-Metric Sales Company, in the full-term, not-to-exceed total of $2,587,000, including five percent contingency covering use or price increases, for the purchase and supply of Automated Metering Infrastructure (AMI) meters and appurtenances.

Meeting History

Aug 14, 2019 7:30 AM  Board Administrative Committee Regular Meeting
draft Draft
RESULT:RECOMMENDED FOR APPROVAL
Aug 21, 2019 9:00 AM  Board of Directors Regular Meeting
draft Draft
RESULT:APPROVED [UNANIMOUS]
MOVER:David J. Slawson, Board Member
SECONDER:Randy A. Record, Board Member
YES:Ronald W. Sullivan, Philip E. Paule, Stephen J. Corona, Randy A. Record, David J. Slawson