Approval of a contract with Inframark for meter replacement in the  amount of $307,480.00, including a base fee of $116,655.60 for meter replacement, and materials costs (meters, meter boxes, and curbstops) estimated at $190,824.40.  The initial contract term is for one year and the City has the option to renew the contract for up to four (4) one-year extensions. This contract will automatically renew for four additional years for a total contract cost of $1,537,400.00 +/- an annual CPI adjustment.

In 2016, the Public Works Department completed an Intelligent Meter Conversion Feasibility Study and a Water Loss Audit. The audit identified a number of ways the City can improve accountability. One of the recommendations was to reinstate 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.

Public Works submitted a Key Issue to address this problem as part of the FY18 budget cycle. The Key Issue highlighted a 10-year replacement cycle for all meters 1 inch (1”) and smaller. The request was approved in the FY 18 budget.

Currently, the City has a total of 26,209 meters that are 1” and smaller, within the Main City system and River Park service area. To achieve the recommended replacement cycle, the City needs to replace the following number of meters by size each year. The cost to do this work is estimated at $307,480.

This request does not include meter replacement in Greatwood or New Territory. City staff will be working with the AMI program manager to develop an overall age of the meters and evaluate the replacements strategy for this area. Staff is also working with the Water Loss Audit team to conduct a water audit of the Greatwood and New Territory subdivisions.

An Invitation to Bid (ITB) 2018-04 for the replacement of 2,650 meters 5/8" - 1" was prepared and included cost for replacing broken meter boxes and curb stops. The ITB only included the labor to complete the replacement. The contractor will purchase the materials (meters, meter boxes, and curb stops), at unit costs already in place for the City. The City competitively bids material unit costs for water meters along with all other materials used for operations and maintenance. This structure is in the best interest of the City as it allows the City to utilize an already competitively bid price for the materials.

On December 21, 2017, the City received two bids. After reviewing, staff determined that the low bidder is Inframark. The Bid details are included below.

The City has a long-standing relationship with Inframark. Inframark is currently under contract with the City for the City Wide Excavation Contract and the Annual Fire Hydrant Painting Contract. In addition to being the low 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.

Staff recommends council approval of a contract with Inframark for meter replacement in the amount of $307,480.00, including a base fee of $116,655.60 for meter replacement, and materials costs (meters, meter boxes, and curb stops) estimated at $190,824.40. The initial contract term is for one year and the City has the option to renew the contract for up to four (4) one-year extensions. This contract will automatically renew for four additional years for a total contract cost of $1,537,400.00 +/- an annual CPI adjustment.