DISCLAIMER

 

07-0782R                                                          REPLACEMENT


RESOLUTION AUTHORIZING CITY OFFICIALS TO CONTRACT WITH JOHNSON CONTROLS, INC., FOR THE INSTALLATION OF AN AUTOMATED METER READING SYSTEM (AMRS) FOR WATER AND GAS METERS IN THE AMOUNT OF $9,565,250.

BY COUNCILOR JOHNSON:

     RESOLVED, that city officials are hereby authorized to contract with Johnson Controls, Inc., for the installation of an automated meter reading system (AMRS) for the public works and utilities department in accordance with specifications and the vendor’s quote of $9,565,250, terms net 30, payable as follows:

     (a)  $3,443,490 from the Water Construction Bond Fund 511, Department/Agency 500, Object 5532;

     (b)  $3,156,532.50 from the Gas Construction Bond Fund 521, Department/Agency 500, Object 5532;

     (c)  $2,965,227.50 from the Sewer Construction Bond Fund 531, Department/Agency 500, Object 5532.

This resolution also authorizes the proper city officials to take steps necessary to secure long term financing.


STATEMENT OF PURPOSE:  This resolution authorizes a contract with Johnson Controls, Inc., for the installation of an automated meter reading system (AMRS) for the department of public works and utilities to be paid from the water, gas and sewer construction bond funds. The contract amount is $9,565.250.


The purpose of this upgrade is to install an AMR system to record water and natural gas use information and download it to the city’s billing system. The project, based on union labor and union wages, involves the:

     (1)  Replacement and retrofit of approximately 53,811 utility devices;

     (2)  Design and installation of an AMR system;

     (3)  Implementation of utility data analysis and measurement and verification programs; and

     (4)  Service and training programs.


The city of Duluth retains the right to determine the most beneficial financing arrangement, whether that is with Johnson Controls, Inc., a financial institution or some other source. It is anticipated that the financing arrangements will be sent to the council for approval early in 2008. The city desires to be converted and operational under the new system by the end of 2008.


The city posted a request for qualifications in August of 2007, and a request for bids in October of 2007. Johnson Controls, Inc., was the only vendor who submitted a complete bid as of the November 8, 2007, closing date.


Automated Meter Reading System for Water/Gas Meters

Tabulation of Bids November 8, 2007

Requisition #08-0026

08-0026

Vendor

Base Bid

Elster AMCO Water, Inc. Ocala, FL

no bid

Johnson Controls, Inc. Duluth, MN

$9,565,250

Ferguson Enterprises, Inc., d.b.a. Northern Water Works Supply, Blaine, MN

no bid