Title
Consider a memorandum/resolution authorizing a Letter of Agreement in an amount not to exceed $982,975, and a 5-year Annual Services Agreement in an amount not to exceed $141,089 with Aqua-Metric Sales Company for advanced water metering infrastructure.
Summary
DATE: January 17, 2023
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Authorize the execution of a Letter of Agreement and 5-year Annual Services Agreement with Aqua-Metric Sales Company for the advanced water metering infrastructure.
BACKGROUND AND FINDINGS:
On August 10, 2021, City Council approved the purchase of 5,000 smart water meters from Aqua-Metric Sales Company for the first phase of the water meter replacement program. During this Council meeting, City staff discussed the eventual automation of these meters to create an advanced metering infrastructure (AMI) pilot. During the installation of the 5,000 smart water meters, staff conducted extensive research to find an AMI system that will provide the best value and interface between the City’s current billing system and the 5,000 Sensus iPERL water meters.
Aqua-Metric submitted a quote off the HGAC Buy purchasing cooperative contract No. WM09-20 in the amount of $1,009,548.76 to provide and install the Sensus Flexnet AMI system (which includes 5,000 radios and one base station installed at Bundrant Elevated Storage Tank), configure the system, provide training, and host and support the required software for one year. Aqua-Metric then provided the costs associated with continued software support and hosting services for subsequent years in the amounts of $27,371.90 for year two; $28,193.08 for year three; $29,038.87 for year four; and $29,910.02 for year five.
Funding for the AMI pilot is allocated in the Fiscal Year 2023 Water and Sewer CIP fund. A Letter of Agreement and an Annual Service Agreement with Aqua-Metric for the AMI pilot have been proposed.
THE ALTERNATIVES CONSIDERED:
(1) Do not approve the Letter of Agreement and Annual Services Agreement with Aqua-Metric and select another vendor.
(2) Approve the Letter of Agreement and Annual Services Agreement with Aqua-Metric.
Which alternative is recommended? Why?
City staff recommends Alternative (2), approval of the proposed Letter of Agreement and Annual Services Agreement with Aqua-Metric due to their exceptional support and service in providing the Sensus iPERL water meters and the recommendations from several Texas cities who use Aqua-Metric for their Sensus Flexnet AMI system provider.
CONFORMITY TO CITY POLICY:
The purchase of smart water meters from Aqua-Metric Sales Company and the software hosting and support will be completed through a purchasing cooperative. Purchases made through a cooperative contract are exempt from the competitive bidding process as stated in Texas Local Government Code section 271.102, subchapter F; a local government that purchases goods or services under this subchapter satisfies any state law requiring the local government to seek competitive bids for the purchase of the goods or services.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The total expenditure for FY 2023 will not exceed $1,009,549. This cost includes purchase, installation, configuration, training, and one year of software hosting and support. Future expenses incurred by the Annual Services Agreement will not exceed $27,372 for FY 2024; $28,194 for FY 2025; $29,039 for FY 2026; and $29,911 for FY 2027.
Is this a one-time or recurring expenditure?
The purchase and installation of AMI components pursuant to the Letter of Agreement is a single expenditure. However, the costs associated with software hosting and support in accordance with the Annual Services Agreement will be a 5-year recurring annual expenditure.
Is this expenditure budgeted?
Yes, funds for FY 2023 expenditures are available in the Water & Sewer CIP Fund account 387-8934-493.69-03. Expenditures associated with FY 2024-2027 are subject to future appropriation by City Council.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
City staff recommends that the City Council authorize the City Manager or designee to execute a Letter of Agreement in the amount not to exceed $982,975, and a 5-year Annual Services Agreement in an amount not to exceed $141,089 with Aqua-Metric Sales Company.
DEPARTMENTAL CLEARANCES:
Public Works
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Quote
Letter of Agreement
Annual Services Agreement
Certificate of Interested Parties