Automatic Meter Read Water Meter System RFP

1. Automated Meter Read Water Meter
System
Request for Proposal
Robert Galindo, Finance Director
Item # 5
April 25, 2016

2. 2
BACKGROUND
• San Antonio Water System (SAWS) contract to
provide meter reading services ended December
2013
• Month-to-month since December 2013
• SAWS sent a letter saying it would like to
terminate agreement October 30, 2015

3. 3
BACKGROUND CONTINUED
• City sent request to SAWS for an extension
• SAWS agreed to keep meter reading services for
9 months through July 2016 with cost increase
• Cost increases from $1,612 to $3,000 per month
beginning November 1, 2015
• Solution and action is needed very soon

4. 4
RFP FOR WATER METER READING SERVICES
• Issued June 17, 2015
• Deadline July 20, 2015
• No Responses

5. 5
STAFF RESEARCH
• Team is composed of Operations and
Administrative Staff
• Viable Options
• Long Term Solution
• General Condition of Water Meter
Infrastructure

6. 6
WATER METER INFRASTRUCTURE
• Meter life is about 15 years for average use
• Current meters installed by SAWS in 2006
• Usage above average
• More than 10 different brands of meters
• More time, effort and cost needed for
maintenance
• Hard water minimizes life of meter

7. 7
REVIEWED LONG TERM EVALUATION
OF POSSIBLE OPTIONS (15 YEARS)
• CONTRACT METER READING ANALOG
METERS
• IN-HOUSE METER READING ANALOG METERS
• AUTOMATED METER READS (AMR)

8. 8
AUTOMATED METER READ (AMR) RFP
• After evaluating all three options in November 2015, it was
decided that the City issue an Request for Proposal (RFP) for
the purchase and installation of Automated Meter Read
(AMR) Water Meter System
• An RFP was issued on December 16 and submission period
closed on January 15
• Received six proposals
• Corix Water Products US, Inc • RG3 Meter Company
• HydroPro Solutions • HD Supply Waterworks
• Aqua Metric Sales Company • Ferguson Waterworks Enterprise, Inc

9. 9
AUTOMATED METER READS (AMR) RFP
• All proposals were evaluated by evaluation team using six
separate criteria areas:
– Rates and expenses
– Qualifications and experience
– Project time-line
– Project design and methodology including technical approach and
understanding of the scope of the project
– Single vendor overseeing entire project with detailed experience
information
– References

10. 10
AUTOMATED METER READS (AMR) RFP
• The evaluation team believes the proposal submitted by
Ferguson Enterprises, Inc. meets all the RFP requirements and
provides the best value for the City.
• Several references that had similar services rendered by
Ferguson were contacted.
• Reponses were more than favorable by the agencies for the
purchase and installation services provided.
• The AMR meters that Ferguson offers for purchase and
installation are Mueller Meters with Hot Rod registers.
• The Mueller Systems Route Management Software is compatible
with the City’s current utility billing system InCode.

11. 11
MUELLER METERS WITH HOT ROD REGISTERS

12. 12
MUELLER METERS WITH HOT ROD REGISTERS

13. 13
FISCAL IMPACT
• Contract Cost is $910,942 with a twenty percent
(20%) contingency of $189,058 totaling $1,100,000
• The City has options to either finance the full
amount at a current rate of 1.95% over a 7 year
financing period or utilizing some of the CIED funds
to offset the amount to be financed

14. 14
AMR PROJECT FUNDING OPTIONS
TOTAL ESTIMATED INITIAL COST $1.1 Million
7 YEAR FINANCING
CIED Transfer to Utility Fund $ 300,000 $ 500,000 $ 0
Finance over 7 years from Utility
Fund
$ 800,000 $ 600,000 $ 1,100,000
Estimated Annual Payments for 7
years at 1.95%
$ 122,819 $ 92,114 $ 168,875
Estimated Total Cost w/Financing $ 1,159,730 $ 1,144,797 $ 1,182,128

15. Consideration of an Resolution awarding a
contract for the purchase and installation of
an Automated Meter Read Water Meter
System to Ferguson Enterprises, Inc. and
authorizing the City Manager to negotiate
and execute contracts (1) for such services
and (2) for the financing of such services.