HomeMy WebLinkAbout8 Electric Meter ReplacementFrom: Joe Horvath
Mate. November 15, 200 7
Subjecto Electric Meter Replacement - Proposed Phase 2 Full Deployment
Project
.,•,••.1EQ19MIRIMAIK4- - • 111
The District has operated an Automatic Meter Reading (AMR) system for electric
customers for almost 20 years. This system has reached the end of its useful life and
must be replaced. In April, 2017 the Board approved a Phase 1 project agreement
with Tantalus Systems (Tantalus) using their RF mesh technology AMI system and
Itron meters. The scope of the Phase 1 project included about 000 meters,
approximately 280 for residential customers and the balance for commercial
customers.
The Tantalus system performed extremely well in tl-�e Phase 1 project. Tile District
evaluated key performance areas including meter read rates, billing system
integration, on -demand reads, remote disconnect/reconnect, outage notification, and
meter reliability. A formal system acceptance test was performed with a successful
result for all criteria. The Tantalus system offering, including the use of Itron meters,
exceeded the District's overall performance expectations. Our assessment of the
Tantalus AM[ system is that it is a mature and robust system that will meet District
needs now and into the future. This information was presented to the Board at the
workshop on November '1, 2017.
The Tantalus system using Itron meters is the best technology to achieve District
goals and objectives for a successful deployment of an electric meter replacement
program to all District customers. This conclusion is based on our excellent
experience with Tantalus in the Phase 1 project, and their proven track record at more
than 100 other public power utilities many of whom use NISC for billing.
The District received a price proposal from Tantalus for a Phase 2 full deployment
project that would extend the Tantalus system to all District customers. This project
would consist of about 13,400 Itron meters, 30 data collector units, software, licensing
fees, and engineering services necessary to fully deploy the system to all District
customers. General Pacific, Inc. is the exclusive distributor for Itron meters. The
District also received a price proposal from General Pacific, Inc. for the purchase of
Itron meters necessary to fully deploy this system to all customers. The price
proposals are summarized below:
Vendor
Price
Tantalus Systems
$261,433
General Pacific
$2,217,449
The District would be responsible to install the meters and the Tantalus data
collectors. In addition, the District will need to perform network upgrades and
additional modifications to the NISC billing and accounting system. The estimated
total cost for the Phase 2 project to fully deploy electric meters over FY18 and FY19 is
$3,747,219. The cost estimate, including contingencies, is as follows:
Item
Cost
Tantalus — Hardware, software, and services
$287,576
Meters and Equipment
$21534,122
Make -Ready Field Work
$232,100
NISC Software Modifications
$30,000
Network Servers
$199,100
District Labor- Network
$110,000
District Labor-- Meters
$354,321
Total
$3,747,219
Board approval is requested to sign an agreement and purchase orders with Tantalus
Systems and with General Pacific for the purchase of Itron meters. The purchase of
network servers was approved by the Board in September of this year. District labor
and materials to install meters and other equipment is included as part of the
proposed FY18 and FY19 budget.
The full deployment of the electric meter replacement program using the Tantalus AMI
system will enable the District offer prepay to our customers, and enable operations
such as on -demand meter reads and remote disconnect and reconnect. These
capabilities will greatly benefit the District and our customers by reducing costs and
increasing efficiencies.
The transition to an AMI system also presents a great opportunity for the District to
update policy issues related to meters including customer service fees, deposits, and
rate structures. The District must ensure that our costs are aligned with our rates and
fees, and that rate structures are well suited to customer classes. We expect to bring
these matters to the Board in 2018.
4. FISCAL IMPACT
The District has planned for an electric meter replacement program through the
Financial Master Plan. The cost of the Phase 2 project to fully deploy electric meters
will be funded from the Electric Capital Reserve Fund,
1. Dispense with competitive bidding for the Phase 2 full deployment project
procurement of Tantalus System's AMI hardware, software, services and Itron AMI
meters in order to ensure real-time integration and compatibility with the District's
existing NISC customer information systems and NISC accounting and billing
systems.
2. Authorize the General Manger to execute a contract and purchase order for the
Phase 2 full deployment project from Tantalus Systems for AMI hardware, software,
licensing fees, project management and engineering services, in the amount of
$261,433, plus a 10 percent change order allowance in the amount of $26,143 for an
amount not to exceed $287,576 plus tax and shipping.
3. Authorize the General Manger to execute a purchase order for the Phase 2 full
deployment project using Itron AMI meters from General Pacific, Inc. the exclusive
distributor of Itron meters, in the amount of $2,217,449, plus a 5 percent change order
allowance in the amount of $110,872 or an amount not to exceed $2,328,322 plus tax
and shipping.
Z
Stephen Hollabaugh
Assistant General Nlanager
Michael D. Holley
General Manager