Staff recommends the authorization of a one-year contract in the amount of $316,690 to Inframark for the replacement of water meters and materials costs (meters, meter boxes, and curbstops)  in the City of Sugar Land and authorizing the automatic renewal of four additional one-year terms in the amount of $100,890 per year for a total contract amount of $720,250.

In 2016, the Public Works Department completed an Intelligent Meter Conversion Feasibility Study (AMI Feasibility Study) and a Water Loss Audit (Audit). The Audit identified a number of ways the City can improve accountability. One of the recommendations was to restart the meter replacement program. The Audit estimates the City is losing 117 million gallons of water each year because of meter inaccuracies. This loss is responsible for approximately $684,000 in lost revenue. The AMI Feasibility Study confirmed that proactive meter replacement would not directly affect long-term AMI decisions.

The Audit identified a number of ways the City can improve accountability in Greatwood and New Territory. Greatwood and New Territory have a total of 9,127 meters that are 1” and smaller. The Audit recommends a 10 year replacement cycle for these meters. This cycle is consistent with the meters in the City’s main water system. For this to take place each year, the City needs to replace 913 meters in Greatwood and New Territory.

In addition to incorporating a 10 year life cycle plan, there is a need to do a one-time replacement of meters that are beyond their useful life. The City does not have recorded install dates for the meters within the annexed area, so we have to turn to the meter reading number to determine average age. Of the 9,127 meters, 3,071 have a meter reading greater than 1,000,000 gallons.

Using the recent IWRP demand analysis, the average equivalent single family connection uses 308 gallons per day. 308 gallons per day equates to 112,000 gallons per year and 1,120,000 gallons in 10 years. Using this logic, any meter with a dial reading over 1,000,000 gallons has reached the end of their useful life and should be replaced as soon as possible. For this reason, staff is requesting a one-time replacement of 3,071 meters that have reached the end of their useful life, followed by an annual program to replace 913 meters.

Invitation to Bid No. 2018-31 (ITB) was advertised on September 5 and 12, 2018, for the replacement of 3,071 meters in year one, with the ability to renew the contract for four (4) additional terms, if the City so desires. Each renewal will be for the replacement of 913 meters. The ITB included cost for replacing broken meter boxes and curb stops. The ITB only included labor to complete the replacement. The City will purchase the materials (meters, meter boxes, and curb stops), through current parts contracts already in place. This allows the City to utilize an already competitively bid price for the materials.

On September 20, 2018, the City received two bids. After reviewing, one of the bids was deemed non-responsive by the City’s legal team. Staff determined that the lowest responsive bidder is Inframark.

The City has a long-standing relationship with Inframark. Inframark is currently under contract with the City for the City’s Main System Meter Replacement Contract, City Wide Excavation Contract, and the Annual Fire Hydrant Painting Contract. In addition to being the lowest responsive bidder, Inframark was previously under contract with the City to conduct meter replacement. Inframark is familiar with the meter replacement process and has worked well with the Treasury department in the past.

Funding for this contract is available through the Public Works Utilities Operations budget. The contract is structured as a unit price contract which enables the Public Works Department to only pay for the specific quantities needed for meter replacement. Should the future year funding not be approved for any reason, the contract will terminate on the first day of the new fiscal year.

The FY19 budget includes one time supplemental funds to complete the replacement of meters in the annexed area that exceed 1 million gallons. Recurring funding will support $100,890 per year in annual meter replacement.

Staff recommends the authorization of a one-year contract in the amount of $316,690 to Inframark for the replacement of water meters and materials costs (meters, meter boxes, and curbstops) in the City of Sugar Land and authorizing the automatic renewal of four additional one-year terms in the amount of $100,890 per year, for a total contract amount of $720,250.