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HomeMy WebLinkAboutAgenda Report - April 16, 2014 C-05AGENDAITEM CO!5 CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Accept Improvements Under Contract for Fixed Network Project MEETING DATE: April 16, 2014 PREPARED BY: Public Works Director RECOMMENDED ACTION: Accept improvements under contract for Fixed Network Project. BACKGROUND INFORMATION: The contract was awarded to various vendors including Itron, Inc., Dell Marketing, LLP, General Pacific, Inc., Vertex Business Services Holdings, LLC, and RuggedCom in the amount of $890,633 on June 1, 2011, October 5, 2011 and August 15, 2012. The contract work has been completed. This project included the design and installation of hardware, software, collectors and repeaters, all a part of the fixed network automated meter reading system for the Electric and Water utilities. The final costs for the project are summarized in the table below. Fixed Network Final Project Cost Design and Installation (Itron) $245,383 Software (Itron) $45,000 Software (Vertex) $115,760 Hardware $174,878 Radio Backhaul $39,863 Fiber Optic Upgrade $50,100 Water Meter ERT Upgrade $100,465 Credit (From Past Contract) ($40,200) Credit (Itron Misdirection to Vertex) ($10,500) TOTAL $720,749 In the initial contract and through the course of the project, two credits were negotiated with Itron. The $40,200 credit was offered to resolve a lingering dispute from a past Electric Utility contract. The second credit was offered to offset some of the additional costs associated with Vertex reprogramming the Customer Information System (CIS). The contract completion date was March 31, 2013. There was a delay in bringing the project to Council for acceptance while negotiations proceeded with Itron regarding additional expenses incurred by the City during the course of the project. A fair resolution with Itron was reached by virtue of Itron offering a $12 discount on future purchases of 6,370 water meter ERTs amounting to $76,440. The final contract price was $720,749 while the project budget was $472,000. The difference between the budget amount and the final contract price is due to costs associated with changing 1,000 60 -watt ERTs to 1 00 -watt ERTs, programming changes to the CIS, purchasing radio backhaul equipment and upgrading the City's fiber optic data facilities. APPROVED: m City Manager K:\WP\PROJECTS\WATER\Meters\Fixed Network\CAcceptdoc 3/31/2014 Accept Improvements Under Contract for Fixed Network Project April 16, 2014 Page 2 FISCAL IMPACT: Personnel annual cost savings of $75,000 to the City and additional potential savings to customers from early detection of unusual usage patterns resulting in higher utility bills. FUNDING AVAILABLE: This project was funded by the Water and Electric utilities. ld-oa",C� 1,0(� F. Wally Saffdelin Public Works Director FWS/pmf cc: Director — Electric Utility Deputy Public Works Director — Utilities K:\WP\PROJECTS\WATER\Meters\Fixed NetworMCAccept.doc 3/31/2014