(11)AR 030607 Purchase of Itron Meters

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ITEM #11 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF MARCH 6, 2007 TO: Honorable Mayor and City Council FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Approve Purchase of Itron Meters for the Electric Utility from McAvoy & Markham Engineering and Sales Company, Inc., in the Amount of $54,453.62 DATE: February 27, 2007 BACKGROUND: The Electric Utility uses electronic receiving and transmission (ERT) meters for collecting usage data from utility customers. ERT meters are primarily used on accounts where it is difficult for our personnel to access the meter on the customer's property, but are also being installed as older meters are replaced as part of our standardization program. On June 1, 1999 the City Council approved the standardization of the Itron meter reading system. DISCUSSION/ANALYSIS: The City of Colton standardized its meter reading system to Itron in 1999. Currently, the Utility has a requirement for meters to be utilized by residential, commercial and industrial customers. The meters will be used for both new services and also to replace old, malfunctioning meters in the field. Currently, McAvoy & Markham Engineering and Sales Co. is the only distributor authorized to sell Itron products in Southern California. Staff has obtained a quotation from this vendor to supply the required residential and commercial meters as follows: FM2S, CL200 Centron C 1 SD Bidirectional meter......... lea @ $225.00............ $225.00 FM16S, CL200 Centron CPISR2 meter.....................8ea @ $289.00..........$2,312.00 FM2S, CL200 Centron C1SR meter .......................768ea @ $62.50..........$48,000.00 $50,537.00 7.75% sales tax $ 3,916.62 Total $54,453.62 The Colton Municipal Code, Title 3, Chapter 3.08.140 (E) states in part, Competitive bidding, either formal or informal, is not required when the City Manager determines that it is in the best interest of the city and its administrative operations to dispense with public bidding. Staff feels that it is in the City's best interest to continue with our standardization of equipment and uniformity efforts by having the same meter reading system. Therefore staff is recommending that the City Council waive the bidding requirement and award the purchase of various Itron meters in the amount not to exceed $54,453.62 FINANCIAL IMPACT: The funds are available through the Electric Utility Plant Operation & Maintenance Account Number 520-8000-8024-3 890-0107-000. ENVIRONMENTAL IMPACT: None