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THE CITY OF 1 2 CITY COUNCIL AGENDA REPORT pLE ASANTON. May 2, 2017 Operations Services Department TITLE: APPROVE FIRST AMENDMENT TO AGREEMENT IN THE AMOUNT OF $950,000 WITH DELTA ENGINEERING SALES, LLC. FOR COMPLETION OF THE AUTOMATED METERING INFRASTRUCTURE PROJECT SUMMARY The Automated Water Meter Infrastructure (AMI) Upgrade project was initiated in June 2016, and in September 2016, the selected contractor, Delta Engineering Sales, LLC (Delta Engineering), began installing new metering infrastructure in the City. The initial project plan was to replace approximately 80% of the existing meters outright and to salvage approximately 20% of older pre-existing meters that were not yet completely at the end of their useful life and were potentially compatible with the new meter reading and transmitting technology. However, during the installation, the older meters have proven to be less accurate and less compatible than initially anticipated. The final total of older meters that meet an acceptable level of accuracy and remaining useful life is expected to be only 3%. Of the originally planned and funded amount of $8,275,000 dedicated to the AMI project, the initial contract came to $7,181,782, leaving an available balance of approximately $1,125,000 to fund this $950,000 amendment. RECOMMENDATION Authorize the City Manager to increase the existing Contract with Delta Engineering in the amount of$950,000 for the completion of the procurement and installation of the City- owned portion of the AMI project. FINANCIAL STATEMENT The Automated Metering Infrastructure project was originally funded at $8,275,000 as follows: 1. CIP Project #13-1016 - $3,000,000 for the purchase of the remote read data transmission technology and software 2. CIP Projects #13-1040, #14-1040, and #15-1040 - $525,000 for replacement of water meters which 3. FY 2016/17 mid-term CIP budget adjustments - $4,750,000 as follows a. $3,250,000 to complete the purchase of City-wide new water meters; and b. $1,500,000 to cover the AMI project installation costs Of the total approved Project Budget of $8,275,000, only $7,150,000 (apprx.) has been spent to date, leaving an available balance of approximately $1,125,000 to fund the amendment to the agreement and complete the expanded project. Additionally, at project end, there will be a $135,000 (apprx.) credit for meter recycling resulting in an entire estimated project cost of approximately $7,995,000.