ADMINISTRATION - Jon Haukaas, Public Works Director
Title
APPROVE AN AMENDMENT TO THE CONTRACT FOR WATER METER RADIO REPLACEMENT, IMPROVEMENT PROJECT NO. 16-16 WITH HYDROCORP, INC. IN THE AMOUNT OF $492,800 FOR CONCURRENT WATER METER REPLACMENT SERVICES
Background
A review of our residential meter inventory exposed that there are nearly 8,000 meters that are past their useful ‘life’ of 1 million gallons of flow. Generally, one million gallons of use is the point where this type of positive displacement meter has enough wear such that it under-reports the volume used by 5% to 15%. This results in lost revenue in the Utility and a lack of transparency to our customers.
The City needs to develop a meter replacement program to install new meters and correct this deficiency. Investigating the most efficient and least disruptive manner led staff to recommend that these deficient meters be addressed by expanding the scope of our existing contract for meter communication module replacements.
On May 3, 2018, the City Council awarded Project No 16-16 to HydroCorp, Inc. for the installation of new communication modules on water meters throughout the City in order to upgrade our remote monitoring and reading program to the new Sensus FlexNet system. HydroCorp will be scheduling appointments at these residential properties to conduct the communication module replacement at which time they can also perform the meter replacement in the most efficient and least disruptive manner.
Staff approached HydroCorp and negotiated a price of $59 each for the installation of the first 2,000 meters and $55 each for an additional 6,000 meters. This would add $448,000.00 to the existing contract for the additional services.
City Council is also asked to approve a 10% contingency to bring the total project budget to $492,800.00. The funding source for this project is Water Utilities and there are sufficient funds to cover these costs.
Recommendation
By motion, adopt the resolution.
Body
WHEREAS, the City desires to replace aging residential water meters throughout the City due to age and potential inaccuracies, and
WHEREAS, HydroCorp, Inc. of Troy, Michigan is the lowest responsible bidder on Improvement Project No. 16-16 to install meter communication modules throughout the City, and
WHEREAS, HydroCorp will be scheduling appointments at these properties for the replacement of communication modules at which time they can also conduct the meter replacments, and
WHEREAS, utilizing an existing contract is the most efficient and also the least disruptive manner to conduct this replacement project with our customers, and
WHEREAS, additional services and costs to Improvement Project No. 16-16 have been determined pursuant to negotiation of a Contract Amendment for with HydroCorp, Inc
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Blaine as follows:
1. The Mayor and City Manager are hereby authorized and directed to enter into a contract amendment with HydroCorp, Inc. for the designated improvements in the amount of $448,000.00.
2. A 10% contingency is hereby approved to bring the total project budget to $492,800.00 and the Public Works Director is hereby authorized to sign all change orders up to the authorized project budget amount.
BE IT FURTHER RESOLVED by the City Council of the City of Blaine that, where allowed, the City intends and reasonably expects to reimburse itself for the payment of this contract out of the proceeds of a borrowing (general obligation water revenue bonds) to be made by the City after the date of payment of the expenditures.
PASSED by the City Council of the City of Blaine this 2nd day of August, 2018.