2003 AGN JUL 15 I21 - Laserfiche WebLink

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CITY OF COLTON Item #21 AGENDA REPORT ror the c.oiton ucwry Huznonty meeung or jury iz), /uus TO: HONORABLE CHAIRPERSON AND UTLITY AUTHORITY MEMBERS FROM: ERIC R. FRASER, DIRECTOR OF WATER & WASTEWATER OPERATIONS SUBJECT: PIGGYBACK ONTO THE CITY OF SAN BERNARDINO EXTENSION NO. 1 TO CONTRACT NO. 1357 WITH PERFORMANCE METER, INC., FOR THE PURCHASE OF VARIOUS DOMESTIC WATER METERS IN AN AMOUNT NOT -TO -EXCEED $80,000 DATE: July 7, 2003 BACKGROUND The City currently has over 1,930 water meters in service that date from the 1960's to the 1980's. Standard waterworks practice is to replace meters over ten years old. Due to these old meters, it was estimated that the City was losing between $500,000 and $1,000,000 annually in water sales. In order to reduce the amount of unaccounted for water in our system and ensure that all customers pay for the water they use on an equal basis, the City should continue the meter replacement program. DISCUSSION /ANALYSIS Since the inception of the meter replacement program last year, water revenue has increased on average 8%. Because commercial wastewater customers are billed based on water usage, wastewater revenue has also increased on average 12%. On July 2, 2002, the Colton Utility Authority approved piggybacking onto the City of San Bernardino contract with Performance Meter, Inc., in accordance with Section 3.08.100 of the City's Purchasing Ordinance. The bidding procedure and results were included in the July 2, 2002 staff report. Since that time, the City of San Bernardino has extended that contract through June 25, 2004. Performance Meter, Inc. has agreed to extend the same pricing and terms with the CUA. A copy of Extension No. 1 to Contract No. 1357, for the contract Performance Meter, Inc., is attached. FISCAL IMPACT By piggybacking onto the City of San Bernardino agreement, we realize savings through volume buying. The current program of replacing old meters has demonstrated increased revenue without raising water rates. The program has more than paid for itself. Funds specifically set aside for purchasing meters are available in Account Numbers 521-8100-8101-4940-0001 and 521-8100-8101-4940-0002. ENVIRONMENTAL IMPACT None. Staff recommends that the Colton Utility Authority approve piggybacking onto the City of San Bernardino contract with Performance Meter, Inc., for the purchase of various domestic water meters in an amount not - to -exceed $80,000. REVIEW TEAM City Attorney: City Manager: Page 1 of 1 (w/Attachments) T Finance Director: Other: