HomeMy WebLinkAboutAgenda Report - June 5, 1991 (79)r
OF
po CITY OF LO®i
COUNCIL COMMUNICATION
A SNDA TITLE: Purchase of an Electronic Meter Reading System
MEETING DATE: June 5, 1991
PREPARED BY: Finance Director
F.ECC1vA9 WED ACTION: That the City Council adopt the attached Resolution
authorizing the purchase of:
1. The electronic iyxlx reading system from Itron Corporation for the amount
of $38,023; and
2. The associated costs of a personal corputer (PC) and printer from IBM
Corporation for the amount of $5,500 ($4,550 for the PC and $950 for the
printer}.
BACKGRDUND INFORMATION: As was presented at the COUnCil Shirtsleeve Session on
May 21, 1991, the 1990-91 Budget contains an
appropriation of $43,790 for the purchase of an
electronic meter reading system including ha dware,
software, training, nor, maintenance and support. This system w i 11 be used by the
Finance Department to increase efficiency and accuracy in the areas of meter
reading and billing.
This project was budgeted in the 1989-90 Budget but was placed on hold pending
the change in the City' s camputer system. The conversion to the AS -400 has
begun, and the purchase of this system is now appropriate.
Four vendors responded to the "Request for Proposal" (RFP) _ A eamdttee was
formed to analyze the information received from the vendors. An Evaluation
Seminary was fonmlated based upon the specifications required by the City.
All proposals vv e evaluated based ' upon responses to the RFP and upon followup
questions posed to the vendors and their clients. Telephone calls were also
it to other utilities which have installed these systens.
The electronic meter reading system receiving the highest evaluation rating was
Itron Corporation. Staff rated the Itron system higher than the other vendors
in all of the following areas: Vendor, Hardware, Software, Irrplerrnntation and
Training, Maintenance and Support and Management Reporting.
APPROVED: �•
THOMAS A. PETERSON �cw•ao.a«
City Manaaer
CC -1
Purchase of ah Electronic N,czer Reading System
June S, 1991
Page Two
Itron denonstrated the highest conformance with the City's RFP. Itron is a
utility oriented firm with an extensive client list and 65 percent of the
market for electronic meter reading systems. The hand-held device Cor this
system is designed with the Meter Reader in mind. Single key entry of
information is emphasized which eliminates the need to memorize any codes.
Itron is the only vendor that employs two levels of validity checks on meter
readings, This firm has established an excellent reputation for implementation
and training as well as maintenance and support after the purchase. "lie Itron
devices are the most easily adapted for future expansion and enhaneermt to the
city's existing meter reading system,
An Annual Cost Savings arad Payback Time Frame has been attached to assist in
the cost justification process for the electronic meter reading system (see
Exhibit A). The PC and printer purchase from IELM Corporation is a separate
cast. This purchase from IBM Corporation is in line with the objective of
standardizing the ccrgmter equiprent in the Finance Department.
FUNDING: Previously appropriated in the 1990-91 Budget; no additional funds
required.
i:. Holm
Fina -ice Director
1M:D1.W:ss
Attachment: Exhibit A
Prepared by Diana L. white, Assistant Finance Director
W0x I
MIP, 1' A
CITY OF LODI
E7 DCITMC WrER READING SYSM
ANNUL COST SAVINGS AND PAYBACK TIME FRAME
I. Annual Cost Savings:
.Purchase and Printing of Meter Reading Documents $ 1,080
. Data Entry and Editing 14,311
. Storage of Meter Reading Documents 180
. Elimination of Rereads 6,510
. Custcmer Accounting/Services 21,708
Total Annual Cost Savings $43,789
11. Payback Time Frame:
Using 75% of the $43,789 Total Cost Say.;mgs Figure - $32,842
$38,023 $32,842 - 14 Months
Systempnnuiall Payback
Cost Cost savings Tim it me
NOTE: Does not include the one-time cost savings for read -to -bili
time reduction.
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RESOLUTION NO. 91-103
A RESOLUTION OF THE LODI CITY COL]NC7L
AUTHOFMNG THE PURCHASE OF
AN FLECTRC>NC METER READM SYS'IB4
WIIERFAS, in response to notice duly published in accordance with
law and the order of this City Council, proposals to furnish an
electronic meter reading system Were received and opened on April 19,
1991 at 2:00 p.m. as described in the "Request for Proposal" therefore
approved by the City Council on March 20, 1991; and
WIIEREASy said proposals have been compared and evaluated by
staff resulting in the following:
Vendor Evaluation Score rust
Itron Corporation; Spokane, M 100 $38,023
Radix Corporation; Salt Lake City, UT 53 27,089
Syscon Corporation; San Diego, CA 57 26,376
Datamatic Corporation; Richardson, TX 49 24,052
VSy Datamatic Corporation did not meet the proposal
specifications; and
VSy the City Manager and Finance Director recommend the
authorization to purchase an electronic meter reading system be made
firm the Itron Corporation whose proposal best meets the
specifications as is evidenced by the evaluation score; and
WIIEREAS, the purchase from Itron Corporation would be in the
best interest of the City as authorized by the Lodi Municipal Code,
Section 3.20.070.
NOW, THEREFORE, BE IT RESOLVED by the Lodi City Council that
authorization to purchase an electronic meter reading system be made
from Itron Corporation in the amount of $38,023 and the authorization
to purchase the associated personal computer and printer from IBM
Corporation in the amount of $5,500.
Dated: June 5, 1991
I hereby certify that Resolution No. 91-103 was passed and
adopted by the Lodi City Council in a regular meeting held June
5, 1991 by the following vote:
Ayes:
Noes:
Absent:
Council Members - Penni no, Pinkerton, Sieglock and
Snider
Council Members - None
Council Members - Hinchman (Mayor)
'r ,h.,���� i�e�L Lc 3t
li, Mt�che., City Clerk
-VIA
RES91103/TXTA.02J 91-103