AR 032106 CUA Piggyback Contract-Hughes Supply

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CITY OF COLTON AMENDED AGENDA REPORT FOR THE COLTON UTILITY AUTHORITY MEETING OF MARCH 21, 2006 TO: HONORABLE CHAIRPERSON AND UTILITY AUTHORITY MEMBERS FROM: ERIC R. FRASER, DIRECTOR OF WATER & WASTEWATER OPERATIONS SUBJECT: PIGGYBACK ONTO THE CITY OF ONTARIO CONTRACT WITH HUGHES SUPPLY FOR THE PURCHASE OF WATER METERS EQUIPPED WITH AUTOMATED READING IN AN AMOUNT NOT -TO -EXCEED $75,000. DATE: MARCH 9, 2006 BACKGROUND: The City currently has over 10,000 water meters in service. Due to the increase in housing developments in Colton, including five major housing projects, of which three are in the Reche Canyon area, it would be in the best interest of the City to convert to the AMR (Automated Meter Reading) meters. This would allow water meters to be read remotely from a vehicle with a great deal of increased accuracy and speed. DISC USSION/ANALYSIS: Section 3.08.100 of the City's Purchasing Ordinance allows the City to enter into agreements with other agencies for the purchase of supplies, services, and equipment. In such instances, the procedures of that agency shall satisfy all City requirements for the bid and award of those purchases. On March 21, 2005 the City of Ontario solicited bids for an annual contract for AMR (Automated Meter Reading) water meters. The low bid based on representative quantities was submitted by Hughes Supply of Perris, California. Hughes supply has expertise in supplying these meters and the ability to deliver the meters in a timely manner. The City is currently working on a replacement program to replace all existing water meters with upgraded radio read meters. Most meters currently in operation are not equipped with remote read capabilities. This feature has been included in the new purchase. This new technology will maintain read accuracy and improve read frequency and response to the customers. (Attachment: City of Ontario Bid Results) Eleven purveyors in California are currently using the Dialog 3G Automated Meter Reading system, which include the following surrounding Water Purveyors: City of Ontario (6,000 units installed), City of Chino Hills (3,500 units installed), City of Hemet (1,000 Units Installed) and Coachella Valley Water District (3,000 units installed). FINANCIAL IMPACT: By piggybacking onto the City of Ontario agreement, we realize savings through volume buying. The service connection fees and meter charges received from the new developments are a significant portion of the funds that will cover the costs of the AMR water meters. Sufficient funds are budgeted and available to purchase the automated meters and software. The funds for the meters will be charged to Account Numbers 521-8100-8101-4940, 521-8100-8101-4941 and 521-8100-8101-4942. ENVIRONMENTAL IMPACT: None CONFLICT OF INTEREST — Gift Disclosure Requirements Exact Business Name: Hughes Supply President or Equal: Jerry Stalling, General Manager Contact: Chris Lambros, Meter Specialist 7/10,03 City Clark's office Cb ITEM #18