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HomeMy WebLinkAbout7 Purchase of Electric Metersenda Item # CONSENT To: Board of Directors From: Regina Wise Date: March 01, 2017 Subject: Consideration to Authorize the Purchase of Electric Meters 1. WHY THIS MATTER IS BEFORE THE BOARD Board approval is required for expenditures in excess of $15,000. 2. HISTORY 7 The District's electric meters are used to record power consumption of District customers. District Resolution 2013-19 authorizes the sole source purchase of iTron electric meters from General Pacific. This sole source procurement is necessary to maintain compatibility with the District's current electric billing system, particularly because meters manufactured by other companies do not offer the same integration, functionality, and quality. General Pacific is the current factory -authorized distributor of iTron meters for our area. 3. NEW INFORMATION The District's last large quantity meter purchase was in 2013. Since that time, the District has procured only small quantities that totaled less than $15,000 annually. Purchases have been minimized in order to keep inventory low. Lower inventory has been maintained in anticipation of an upcoming upgrade to the District's electric meters (AMI Pilot Project) and associated information system. In 2016, the District did complete an AMI Pilot test project, however the meters tested did not meet District standards and delayed the upgrade process into FY17. The delay results in the need to purchase more of the current meters in order to maintain integrity of billing in the interim, and particular as the failure rate of meters has increased during this interim period as the existing meters are reaching end of life. The per meter cost for the standard 200 amp meter is $54.85 for a pallet cost of $6,585.60. Staff is projecting a need of up to four pallets of residential meters (120 meters per pallet) for FY17 for a total not to exceed amount of $26,342,40, Additionally, some homes are equipped with a 400 amp meter which is $351.85 each, staff is projecting a need of up to 80 of these meters in FY17 for a total amount of $2851480 Although this staff report identifies the total anticipated quantity needed during FY17, all meters will be ordered only on an as needed basis throughout the year. Staff is also working on the next AMI Meter Pilot project, and will closely monitor progress to ensure the District will not have excess inventory on hand that won't be able to be used once the District transitions from the current meter system to the upgraded meter system. 4. FISCAL IMPACT Sufficient funds exist in the Electric Utility General Fund for the purchase of electric meters. 5. RECOMMENDATION Authorize the General Manager to procure electric meters for FY17 from General Pacific on an as needed basis not to exceed $54,490, plus shipping and tax. Jeremy Popov Administrative Services Manager Michael D. Holley General Manager