Loading...
HomeMy WebLinkAbout13 Water Meter Radio Transmitter Replacement ProjectAgenda Item #13 To: From: Date: Subject: Board of Directors Neil Kaufman May 20, 2020 Award of a Contract to Perform the Water Meter Radio Transmitter Replacement - 2020 Project ACTION 1. WHY THIS MATTER IS BEFORE THE BOARD Board authorization is required for expenditures in excess of $15,000. 2. HISTORY In September 2008, the District awarded a contract for the provision of an automated meter reading (AMR) system to cover all water customers. That system utilizes water meters manufactured by the Neptune Technology Group in conjunction with a radio system and software by Aclara. The radio system consists of three main components: Meter Transmitter Units (MTUs); Distributed Collection Units (DCUs); and Network Control Computer (NCC). Each water meter is equipped with an MTU. At a given interval, the MTU reads the meter and transmits the meter reading. The first generation MTUs captured meter readings every six hours. About three years ago, the District started using an updated MTU that is capable of capturing meter readings on an hourly basis. This updated MTU has been used for new construction installations and maintenance replacements. The District did not conduct a systemwide replacement of old MTUs that were functioning properly. The MTUs are battery powered and factory sealed. When a battery fails, the entire MTU must be replaced. Currently, there are over 13,000 MTUs in the system. There is a network of 27 DCUs located throughout the District at a mixture of water storage tanks, pump station buildings and dedicated utility poles. These DCUs receive the radio transmissions from the MTUs. The data is then stored and transmitted back to the District office once a day. The NCC is located at the District office. It receives the meter data and stores it in a database. Other District functions such as billing and customer service access the database as needed. The great majority of the MTUs were installed in 2009 and 2010 as part of the original deployment of the AMR system. These MTUs have a 20 year battery warranty from the manufacturer. For MTUs that fail within the first 10 years, a replacement MTU is provided at no cost of the District. For years 11 to 20, the cost of a replacement MTU starts at 50% cost and is then pro-rated at 5% per year. For an MTU that failed in year 11, the District would pay 55% of the replacement cost. For an MTU that failed in year 15, the District would pay 75% of the replacement cost. The MTU replacement warranty only covers the MTU and does not cover the labor associated with replacing the MTU. Please note that the warranty replacement proration costs that were presented in July 2019 were incorrect. The information presented here has been verified with Aclara and the original purchase documents from 2008. As discussed at the July 17, 2019 Board Meeting, the District had been experiencing a significant number of MTU failures. The cause of the failures is believed to be a combination of the extreme temperature variations that are experienced in Truckee along with some overly-optimistic projections regarding the battery life from the manufacturer. At the time of the July 17th meeting, the District had identified approximately 3,100 MTUs requiring replacement. All of these MTUs were within the first ten years of service and the replacement MTUs were acquired from Aclara under the warranty at no cost. A contract to perform the field installation of those replacement MTUs was awarded to Concord Utility Services and completed in November 2019. It was also noted that the Water Department expected a significant number of MTU failures over the winter of 2019-2020. At the April 15, 2020 Board Meeting, the continuing MTU failures was discussed. It was noted that about 3,450 MTUs have failed or will fail shortly and are in need of immediate replacement. It was also recommended that the remaining 1,350 MTUs from the original deployment in 2009 and 2010 be replaced. At that meeting the Board authorized the expenditure of up to $240,000 for the purchase of replacement MTUs. It was also noted that the District would need to hire an outside contractor to perform the MTU replacements. 3. NEW INFORMATION A set of bid documents was prepared for the MTU replacement work. Advertising for bids began in mid-April and the bid opening was held on May 11, 2020. The Request for Bids was advertised in the Sierra Sun. Three bids were received. TOTAL AMOUNT OF BID Bidder Location Amount Responsive Concord Utility Services Murrieta, CA $318,729.60 Yes* Vanguard Utility Services Owensboro, KY $342,000.00 Yes Resource Development Sparks, NV $362,000.00 Yes Brian Wright Michael D. Holley Water Utility Director/Assistant GM General Manager It should be noted that Concord Utility Services failed to acknowledge receipt of Addendum No. 1. The only item in this addendum added firms holding a Class B California Contractor’s License as eligible to bid on the project. A discussion of this issue with the District’s legal counsel has determined that the information in the addendum would not have a material impact on the bid by Concord Utility Services. Therefore, it can be considered a minor irregularity. 4. FISCAL IMPACT The bid price from Concord Utility Services is $318,729.60. It is recommended that a 10 percent change order allowance be established. As discussed at the April 15 Board meeting, the funding source for this work is the Water Department General Fund. Sufficient funds exist in the Water Department General Fund to cover the cost of the project. 5. RECOMMENDATION 1)Waive the minor irregularity associated with the failure of Concord Utility Services to acknowledge Addendum No. 1. 2) Award the Water Meter Radio Transmitter Replacement - 2020 project to Concord Utility Services in an amount of $318,729.60, plus a ten percent change order allowance for a total authorzation not to exceed $350,600.