HomeMy WebLinkAbout7 Purchase Water Metersenda Item a
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To: Board of Directors
From: Nell Kaufman
Date: September 06, 2017
Subject: Consideration to Revise an Authorization Amount for the Purchase
of Water Meters and Meter Transmitter Units
1. WHY THIS MATTER IS BEFORE THE BOARD
Current authorization for the purchase of water meters and MTUs is $100,000 per year.
Expenditures for FY 2017 will exceed $100,000. Authorization for additional expenditures is
needed.
2. HISTORY
In September 2008, the District awarded a contract to Measurement Control Systems
(MCS) for the provision of an Automated Meter Reading (AMR) system. That system
utilizes water meters manufactured by the Neptune Technology Group in conjunction
with meter transmitter units (radios) and software by Aclara.
At that time, MCS was the authorized factory distributor for Northern California for
both manufacturers. Since then, MCS has exited the water meter market and no
longer has a commercial relationship with either Neptune or Aclara.
In August 2013, the Board adopted a resolution finding that the continued sole source
purchase of water meters from Neptune and meter transmitter units (MTUs) from
Aclara is necessary to maintain compatibility with the District's AMR system. The
Board also approved expenditures of up to $50,000 per fiscal year through the end of
FY 15 for the purchase of such hardware.
In July 2015, the Board revised the expenditures limit to $100,000 per fiscal year for
water meters and MTUs. There is no termination date for this current authorization.
3. NEW INFORMATION
Water meters and MTUs are purchased on an as -needed basis. However, there is a
significant lead time associated with delivery of the MTUs. Each Fall, the Water
Department projects the amount of new meters and MTUs that will be required during
the following year. New meters and MTUs are required for three purposes:
1) New development/new construction
2) Installation on existing customers without a meter as part of the ongoing Meter
Box Retrofit project v
3) Maintenance replacement. Failures of installed
mechanical failure of internal components, dead
and snow removal operations,
equipment can occur due to
batteries, freezing conditions
Meters and MTUs for new construction are funded by connection fees paid by
developers. Meters and MTUs for the Meter Box Retrofit project are included in the
annual budget for the project. It is currently projected that the Meter Box Retrofit
project will be completed in 2019.
Maintenance replacements are currently funded from the Water Department's
operations budget. Currently, the great majority of failed MTUs suffer from dead
batteries. These MTUs were installed in 2009 & 2010 and are still covered by the full
manufacturer's warranty. About 85% of all MTUs in the system were installed during
these two years. In such cases, the only costs to the District are for labor and return
shipping. Once these units reach 10 years in age, there will be increased costs
associated with maintenance replacements.
Water meters do not have a comparable 10 year warranty. It is believed that most
water meter failures are caused by either mechanical wear or freezing conditions,
neither of which is covered by the manufacturer's warranty.
To date, for FY 17 the Water Department
There is an additional invoice for $23,550
invoice has not been made since such a
established by the Board.
has spent $80,076 for meters and MTUs.
that has been received. Payment of this
payment would exceed the $100,000 limit
Given the level of new development in 2017 and an expectation that the level of new
development in 2018 will likely be greater, it is recommended that the authorization for
purchase of meters and MTUs be increased to $150,000 per fiscal year.
4. FISCAL IMPACT
Sufficient funds exist in the Water Department's approved FY 17 budget for the purchase
of water meters and MTUs. The forthcoming FY 18 budget will include sufficient funds.
5. RECOMMENDATION
Authorize the purchase of meters and MTUs as necessary in an amount not to exceed
$150,000 per fiscal year.
Michael D. Holley
General Manager /Water Utility Manager