Okaloosa County BOCC — July 19, 2016 — Sensus USA - Contract Renewal & Amendment — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: July 19, 2016 TO: Honorable Chairman and Members of the Board FROM: Jeff Littrell SUBJECT: Sensus USA - Contract Renewal & Amendment DEPARTMENT: Water and Sewer BCC DISTRICT: All STATEMENT OF ISSUE: Okaloosa County Water & Sewer (OCWS) staff requests Board of County Commissioners (BCC) approval to authorize the Chairman to execute a contract renewal and amendment with Sensus USA, Inc. for water meters and associated products. BACKGROUND: OCWS has used Sensus water meters for over 25 years. For purposes of standardization and compatibility, we need to have 1 manufacturer of water meters. 99.9% of the 32,000 meters we have in our system are Sensus. For our meter reading and billing system to work properly, water meters need to be 1 brand. Sensus has provided thousands and thousands of high quality meters and other associated products over the years. The most common item we purchase is Line Item 1 - the 3/4" iPERL water meter, at a price of $87.53 per meter. We have checked with many other utilities in NW Florida and the rest of the state, and this unit price is at or lower than almost all. Because of the excellent quality, great service, and good prices, the majority of utilities in NW Florida use Sensus - they are considered the best in the industry. The current contract was entered into with Sensus USA, Inc. (C01-0614-WS) in August 2013. The current contract is effective from 10/1/2013 to 9/30/2016, and provides for up to three years of renewals OCWS' 5-year Capital Improvement Plan includes a multi-year residential meter exchange program - where we intend to replace approximately 28,000 aging water meters with new, start- of-the-art water meters and other parts. This project will also include installing dual check backflow preventers and transmitters that are fixed to the meter box, so the meters can be read via radio frequency or a drive-by unit. This massive undertaking is based on Sensus meters, associated products, and these contract prices. Staff is now requesting to enter a 3-year renewal period. Along with the renewal, the unit prices are being updated. Current unit pricing will be increasing by a modest amount (2.013%) due to the published Producers Price Index over the last three years. Also, additional line items are being added per staff's request - for more modern parts, equipment, and software. The "Renewal and First Amendment" would make the renewal period from 10/1/2016 to 9/30/2019. The renewal/amendment is attached for your consideration, along with the County Contract Review Coordination Sheet, updated Certificate of Insurance, and a copy of the current contract. OPTIONS: Approve or deny. RECOMMENDATIONS: OCWS requests BCC approval to authorize the Chairman to execute the "Renewal and First Amendment" with Sensus USA, Inc. for water meters and associated products. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator