Title
An Ordinance approving a sole source agreement in the form of purchase orders between the City of Lee’s Summit and United Systems & Software, Inc., for the purchase of encoder receiver transmitter units for radio read meters for an annual amount not to exceed $150,000.00, and authorizing the City Manager to execute the same by and on behalf of the City. (F&BC 4-20-26)
Body
Issue/Request:
An Ordinance approving a sole source agreement in the form of purchase orders between the City of Lee’s Summit and United Systems & Software, Inc., for the purchase encoder receiver transmitter units for radio read meters for an annual amount not to exceed $150,000.00, and authorizing the City Manager to execute the same by and on behalf of the City.
Key Issues:
• The ERTs that are compatible with the Itron meter reading system are proprietary and a sole source agreement provides the Utility the best option to acquire these unites directly from a Itron Distributor.
• The Water Utilities Strategic Plan outlined the need to maintain and utilize radio read technology in the collection of meter reads.
• The Water Utilities Department has implemented a radio read meter system for over 95% accounts in order to improve efficiencies and be able to read meters in rural areas and traffic areas that have potential hazards.
• The purchases includes additions for new accounts and the replacement of the original units as necessary.
• There is a cost-benefit of maintaining and expanding the radio read meter system for the Utility.
• Strengthens meter read accuracy reduces billing errors and customer disputes. Aids in reduced number of estimations during inclement weather.
• Supports continued timely and consistent billing cycles, improving customer satisfaction and revenue predictability.
Proposed Council Motion:
FIRST MOTION: I move for second reading of an Ordinance approving a sole source agreement in the form of purchase orders between the City of Lee’s Summit and United Systems & Software, Inc., for the of purchase encoder receiver transmitter units for radio read meters for an annual amount not to exceed $150,000.00, and authorizing the City Manager to execute the same by and on behalf of the City.
SECOND MOTION: I move for adoption of an Ordinance approving a sole source agreement in the form of purchase orders between the City of Lee's Summit and the United Systems & Software, Inc., for the of purchase encoder receiver transmitter units for radio meters for an annual amount not to exceed $150,000.00, and authorizing the City Manager to execute the same by and on behalf of the City.
Background:
The Water Utilities Strategic Plan identified the need to utilize automated meter reading (AMR) technology throughout the system to maintain customer service levels. Radio-read meters improve the productivity of the meter services group and assist with meeting our customer service goals. Accurate monthly reads through radio reading meters assists with billing accuracy while managing operational costs associated with meter reading. Weather and other challenges such as backyard placement of meters or high traffic areas make meter reading difficult, hazardous or time consuming to complete.
Water Utilities employs hardware and software from Itron to collect meter reads for billing purposes. The Utility has utilized radio reading technology to efficiently read meters. The radio read meters transmit reads via an encoder receiver transmitter (ERT) that wakes up when a signal is received and broadcasts the current meter read to the collection device. ERTs have an expected life of 15 years. The Itron ERT is a proprietary device to the Itron meter reading system with no compatible units available.
Lee's Summit Water Utilities continues to grow with over 40,000 accounts/meters that are read monthly. By providing monthly reads, customers are better served with regular consumption data that can be utilized to prevent unexpected costs such as those due to the leaks. The accuracy and frequency of each meter read is critical to ensure that customers are billed timely and correctly. Lee's Summit Water Utilities has developed a meter replacement program to meet AWWA standards. The Department implemented radio reading technology to over 95% of the accounts, however, new accounts are added every year and replacement ERTs are needed periodically for maintenance of the system.
Presenter
Jeff Thorn, Director of Water Utilities
Recommendation
Staff recommends approval