HomeMy WebLinkAbout9B Criteria for Automatic Water Reading SystemO� PR16
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4646 Dakota Street SE
1Nnr�s0t Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING DATE: JANUARY 18, 2011
AGENDA #: 9B
PREPARED BY: STEVE ALBRECHT, PUBLIC WORKS DIRECTOR
PRESENTER: STEVE ALBRECHT
AGENDA ITEM: CONSIDER APPROVAL OF MINIMUM VENDOR PREQUALIFICATION
CRITERIA FOR AUTOMATIC METER READING SYSTEM
REPLACEMENT PROJECT
DISCUSSION: Introduction
The purpose of this agenda item is to review the minimum criteria for
prequalification of vendors for the automatic meter reading system
replacement project.
Histo
In 2002 the City of Prior Lake replaced approximately 4,200 water meters
and installed a fixed base automated meter reading system for all 6,000
meters. This system automatically reads water consumption via a radio
transmitter unit connected to every meter. The City maintains 14 antenna
collection sites around the City that relay this information to the utility billing
department. The radio units are powered by a battery pack that is not
replaceable. When the battery dies the entire radio unit must be replaced.
The current system is based on outdated technology and utilizes minimal
battery life radio units.
The system installed in 2002 -2003 had a five year warranty with an
expected battery life of 7 -12 years depending on the frequency of readings.
The City has begun replacing as many as two of these units per week. It is
anticipated that all units will need to be replaced within the next five years.
At the December 20, 2010 City Council meeting, the City Council directed
staff to proceed with developing a Request for Qualifications (RFQ) to
prequalify vendors for the Automatic Meter Reading System (AMRS)
replacement project. Prior to issuance of the RFQ the City Council directed
that City Staff bring back for City Council review the basic criteria for the
prequalification process.
Current Circumstances
City Staff has met or discussed the RFQ with five vendors interested in
providing the AMRS to the City. City Staff has also researched systems
from other vendors to develop the base criteria that will be applied to
prequalify AMRS. The purpose of the prequalification is to make sure the
systems being considered are adequate to meet the City's needs while
ensuring that there are sufficient systems to provide for competitive
bidding.
City Staff is recommending the following minimum criteria:
1) Vendor Experience:
- Minimum five years experience in providing Fixed Base AMRS
- Minimum of three municipal water system references for AMRS
systems installed in the last two years in cities of similar size or
larger
2) Suitability of AMRS:
- Fixed base system
- Provide minimum of hourly reading capabilities
- Tamper, backflow and no flow automatic notifications
- Leak detection alerts
- High, abnormal, zero and non -read notifications
- Support for automated water conservation efforts
3) AMRS must be compatible with INCODE Utility Billing Software
4) AMRS must be able to provide criteria #2 features via a -coder
encoders on Schlumberger /Neptune Meters
5) AMRS shall be a fixed base two -way reading system with less than
14 collectors and repeaters
6) Minimum 20 -year battery life with 20 -year battery and radio
warranty (10 -year full, 10 -year pro- rated)
7) Available customer service 7 a.m. to 5 p.m. CST
8) Local (Minnesota) parts distribution and warranty support
Based on these criteria the City expects that a minimum of four to six
AMRS will be prequalified.
Conclusion
The City Council should provide comment on any of the proposed criteria.
Based on that direction staff will complete the RFQ which will be advertised
and sent to vendors. The City will then prequalify systems for competitive
bid of the project most likely in March 2011.
ISSUES: During the December 20 report, questions were received about why the
City shouldn't wait until the current radio units begin to fail en masse to
replace them. The process of bidding and starting replacement takes a
minimum of three months. Were the City to wait until the units begin to fail
in large numbers it could cost the City between $4k and $12k per day in
lost revenues depending on time of year. Long term the City would most
likely be able to recover those revenues but only via a manual reading
process. Based on the potential financial impacts City staff does not
believe it is prudent to wait until a majority of the system fails to begin
replacement.
Questions regarding the City's existing system batteries were also asked.
City Staff has provided one of the City's current meter reading units to a
local battery replacement company to evaluate the true cost of
replacement. The replacement would involve cutting open the units,
installing (soldering) a new battery pack, inspecting /reconnecting all wire
connections, sealing the units and testing the radios. It should be noted
that new 20 -year units that meet the criteria discussed earlier in the report
cost around $110. Staff will provide the costs and details related to re-
commissioning (if possible) the existing units to the City Council prior to
proceeding with the bidding of the project.
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In order to allow the City the option of completing this work over a five -year
period, staff believes the City needs to proceed this year with the
replacement program. The following is a tentative project schedule:
• January 18, 2011 — City Council Approves Minimum RFQ Criteria
• January 31, 2011 — RFQ Issued to Vendors
• March 7, 2011 - City Council Approves Vendor Prequalification list and
authorizes advertisement for Bids
• April 4, 2011 — City Opens Bids
• April 18, City Council Receives Bids and Considers Award of Contract
• May /June 2011 — Replacement Project Begins
FINANCIAL By establishing minimum criteria for AMRS that allows competition the City
IMPACT: will ensure that it gets the lowest cost option that meets the City's needs.
ALTERNATIVES: The alternatives are as follows:
1. Provide Staff with comments on the AMRS prequalification criteria for
the RFQ.
2. Table the item for a specific reason.
3. Direct Staff not to proceed with the RFQ.
RECOMMENDED Alternative No. 1
MOTION:
Frank Bylyle$, qy Manager
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