HomeMy WebLinkAboutRes2017-011CITY OF SEWARD, ALASKA Sponsored by: Hunt
RESOLUTION 2017-011
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ENTERING INTO A SOLE SOURCE AGREEMENT WITH
NATIONAL METERING TECHNICAL SERVICES TO EXCHANGE ALL
ELECTRICAL METERS IN THE SEWARD ELECTRICAL SERVICE AREA
AND PERFORM RELATED TASKS, IN AN AMOUNT NOT TO EXCEED
$178,684, AND APPROPRIATING FUNDS
WHEREAS, the City of Seward received approximately 5,000 electronic meters for the cost
of shipping after Kodiak Electric contracted with National Metering Technical Services to switch out
their meters ; and
WHEREAS, the new meters will allow the City to switch out all meters on the system and
have many spare units for the future, and will enable the utility to phase out manual meter reading
and replace it with mobile meter reading which will reduce the time spent reading meters, eliminate
human error associated with meter reading estimates and errors, and enable the City to test the meters
in-house rather than the current practice of sending meters out of state for testing; and
WHEREAS, many of the current meters on the City's system are mechanical, have reached
the end of their useful lives, and spare parts are no longer available, and the new meters take
advantage of new technologies, are expected to enhance service and improve consistency and
reliability of meter -related operations and reduce confusion resulting from the use of disparate meter
types and styles; and
WHEREAS, cost efficiencies are gained by switching out all meters at one time, and the City
lacks the staff to perform this project while still accomplishing their summer construction season
work, without disruption in workload; and
WHEREAS, National Metering Technical Services has successfully performed meter
auditing services for Seward Public Utilities, is familiar with Seward's electrical system and
especially some of the more challenging large general services, and is familiar with these meters and
their installation, testing, and configuration, because they assisted Kodiak Electric with changing out
their meters; and
WHEREAS, Seward City Code §6.10.120.8 allows for an exemption from competitive
procurement provisions for specialized products and professional services stating, "To the purchase
of professional services. Professional services are those that require special knowledge and
judgment that includes analysis, evaluation, prediction, planning or recommendations and which
result in the production of a report or the completion of a task."
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
CITY OF SEWARD, ALASKA
RESOLUTION 2017-011
OF SEWARD, ALASKA THAT:
Section 1. The Seward City Council, in accordance with SCC §6. 10. 120.A. 10 and the
recitals above which are incorporated herein, finds that it is in the public interest to sole source
this work to National Metering Technical Services.
Section 2. The City Manager is hereby authorized to enter into an agreement with National
Metering Technical Services to switch out all electric meters in the Seward Electrical Service Area,
and perform other work related to the project, in substantial form as presented at this meeting.
Section 3. Funding in an amount not to exceed $178,684, consisting of a base bid of
$162,440 plus a contingency of $16,244, is hereby appropriated from the Electric Enterprise Fund
undesignated reserves account no. 15000-0000-3400 to the contracted services account no. 15000-
3009-7009.
Section 4. This resolution shall take effect immediately upon adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of
February, 2017.
THE CITY OF SEWARD, ALASKA
r✓
an Bardarson, Mayor
AYES:
Casagranda, Keil, Squires, McClure, Altermatt, Bardarson
NOES:
None
ABSENT:
Slater
ABSTAIN:
None
ATTEST:
ohanna Ki y, CMC
ity Clerk
(City Seal)
1
1
Meeting.Date:
TO:
Through:
From:
Agenda Item:
Agenda Statement-
February 1.3,2017
Seward City Council
Jim Runt, City Manager 1
John Foutz Eledtric'Utility.'Mana 'ger
Enter into a.. sole: -source -agreement with National Metering Technical
Services
i qr.ut $ery f I . lihrwwide elpet ric meter exchange
q
BACKGROUND & JUSTIFICATION:
In 2016."-Kodiak Electric .contracted with Metering to switch their system. to Automated
Meter Reading (AMR) meters: These meters -are read .at a. desktop.computer, eliminating; the'need -
for a manual meter reading process. Transition to AMR meters made. K. odiWs'approximatply 5,900
Priormeters available for Aonation. to Seward for the costof shipping:. These meters will allow the
.City,to. move -.in- the direction of electronic- meteureading..-.since the new meters can be read -remotely
bya vehicle -driviiig.in the vicinity;thereby elirhihAtiiig the Aeeid. kir 4hanuailly reading; every meter -
monthly.- If the utility were to purchase one of theso, meters :the .'cost would be in 6..kah ge of $59 to
$109each. Althougfi-the:iitl�tyow.ag:afdw,-fth oiise,.rheter5`zil4req.y we alar e.quantity.
. . ,..w . 9.
6fany'sifigle type of meter..The neWly acquired meters- are. commonly used by o es,.are arestill
in production can be purchased, from meter vendors.
.1 _ and
Many of the City's- existing -meters are mechanical, have- been on thel system, in some cases, for
decades .are no longer supported . by service or parts availability,,. and present.operational challenges.
Having -A sih& typebf meter -which is-read:electronically, is -expected to significantly reduce human.
errors in Ineter. readhig,datii 'input, and the rdii'ability of billing, The Electricwdeoatt. mien't
will havef-he ability to.prograin and test tnet6rsl ift-house. Currently, mete m st is, U be sent out of state
for -testing due :to. the variety of different meter
types.. ypes..
The , admitistration recommends that 411 -meters' be exchanged.- at the same. time due to - costPffteie.neies;2and*tomin,liniz.e,disrui).ti.ons to customers and tothe billing department: Finance staff
requires assistance from the utility.billing software vendor to automate -the meter oexchange-to
minimize billing errors, so: a single transition will enhance cfficjency,.save: cost, and reduce errors..
The exchanae is expected totake: less than one: month and the, City does not: have the resources to
accomplish this work in-house.
The administration recommends sole sourcing this' wokto: National. Metering'Teelmical Services
based onthe reasonableness of thelfbid, the success of Kodiakexchange Electric's. larger -scale ex c h
-.9
project using this vendor, and .the -Ci ssatisfaction with -this: ven&6:knowledgstem and
eofoursy..
'these meter type and s styles; and. their prior work on our behalf in.performing meter. audits. The
quality of their-workhas been very.go od,they.havecom. pl.eted their workon-tim.e.and.oribudget, and
their :staff is dedicated and very -responsive, and- haveprovided excellent -training to City staff.
National Wtering is IBEW affiliatedand has'thehistorical.and.tedhnicat'expeiti I se to assistI the City
in this project.
INTENT:
This project intends to switch out the majority of the electric meters in the Seward Electrical Service
area within a one -month period during the summery of 2017, and to properly dispose of old meters.
CONSISTENCY CHECKLIST:
Yes
No
N/A
Comprehensive Plan (1.3, 3.7.3.1, 3.7.3.2): Continue to upgrade and
1.
expand utilities to meet existing needs and encourage fi.tture
X
development.
2
Strategic Plan : The mission of the City of Selvard government is to
X
provide quality leadership and economic ivellbeing of its citizens
3.
Other (list):
X
FISCAL NOTE: The proposed cost for meter installation is $162,440 with a 10% contingency, for
a total cost not to exceed $178,684. Additional project -related costs maybe incurred for advertising,
electricians and meter testing/programming equipment, as well as for billing software automation
assistance. The City saved an estimated $354,000 to $654,000 by not having to purchase the meters.
The electric utility expects to use monies previously received from Chugach Capital credits to fund
this project, without the need to pass meter exchange costs on to the customer.
Approved by Finance Department: J jai. � __)
ATTORNEY REVIEW: Yes No X Not Applicable.
RECOMMENDATION:
Authorize the City Manager to enter into an agreement with National Metering Technical Services in
an amount not to exceed $178,684, and appropriating funds.
CITY OF SEWARD
SEWARD ALASKA
NATIONAL METERING METER INSTALLATION PROPOSAL
Provided herewith is an AMR Meter Installation Proposal dated January 5, 2017 from
National Metering & Technical Services, LLC ("NMTS- Contractor") to provide meter
services in the CITY OF SEWARD ("Utility") service territory.
1. Services Provided by Contractor
Scope of Services. National Metering & Technical Services, LLC (Contractor) to provide
Journeymen Metermen and Meter Technicians on the AMI Implementation Project at City of
Seward. This project will be for the installation of approximately 2,800 electric revenue meters
in the City of Seward service territory.
2. Contractor Responsibilities
This is a performance -based per meter quote based upon an estimated number of 2,800
meters. The Contractor will provide qualified meter personnel as per the following:
• Journeymen Metermen and Meter Technicians who are qualified to change out three
phase and single phase meters.
• Proper equipment and tools for both single and three phase meter exchanges.
• Company vehicles and fuel necessary for the period of this project. Vehicles will
prominently display signage indicating Utility and Contractor with logo on both sides of
vehicle. Magnetic placards (i.e., door magnets) or its equivalent shall be used in this
regard.
• NMTS uses Field Square software to manage scheduling and work management
system. Data will be transmitted to Utility in requested format to include csv., dat., pdf,
or Excel. File transfer will be done within 48 hours of meter exchange.
• In addition, any safety or service wiring concern will be noted. Voltage will be taken at
every meter installation. Information may include any obvious/visual evidence of
tampering that has occurred prior to meter change -out visit; and reasonable details of
any safety issues encountered. If conditions appear to be unsafe or a diversion is
evident, Contractor's installer will not remove the existing meter and will contact Utility's
designated point of contact as described therein in policies and procedures. This
information can be provided to Utility on a weekly basis in a PDF or Excel format to be
used as a maintenance tool for repairs.
3. City of Seward Responsibilities
Utility shall provide the following:
• All meters involved in the AMI project
• All seals, locking meter rings, covers, etc. required to change out meters
• Door hangers
• Notification to City of Seward electric customers of AMI Deployment
• Any route keys or special tools needed for access to all meters
• Staging areas at Utility locations for meters, seals, rings, etc.
• A service location and customer database listing in an Excel electronic format of all
meters to be changed out. This information to include customer name, address, GPS
location if available, form number, meter number, account number, customer phone
number, key or access information to include meter reader notes or route information. .
• If required, badges and hard hats with Utility logos for customer identifications
• Utility will be responsible for the recycling or disposal of old meters.
4. Schedule
Recommend duration of installation
AMI Meter Exchange to start approximately May 2017 — June 2017
• 2800 Meter installation (est. 6 weeks or less to complete)
Contractor assumes for this project that there are no blackout dates and no special
allowance in scheduling is necessary.
5. Terms of Payment
a) Fees. City of Seward shall pay National Metering for the Services in accordance
with the fee schedule attached as Attachment "C".
b) Invoice and Report. Commencing one week from Contract Start Date, National
Metering shall submit to the City of Seward Representative an invoice for costs
incurred for the immediately preceding week and weekly thereafter as described in
Attachment "C.
c) Payment of Invoice. The City of Seward Representative shall verify and approve
each invoice and shall arrange for payment with approval occurring in 3-5 business
days. Should there be any disputed portion of a given invoice City of Seward will pay
the undisputed portion without hindrance.
6. Insurance
6.1. Minimum Coverage. Before commencing the Services, National Metering shall obtain,
at its own expense, the following insurance coverage:
(a) Workers' Compensation and Employer's Liability coverage in accordance with
the statutory requirements in the jurisdiction where the Services are performed in
the minimum amount of $1 million per occurrence;
(b) Commercial General Liability for bodily injury, death and property damage in the
minimum amount of $1 million per occurrence, naming City of Seward as an
additional insured with respect to the Services.
(c) Professional liability insurance in the minimum amount of $1 million per
occurrence, and
(d) Automobile liability on all vehicles used by National Metering in connection with
this Agreement in the minimum amount of $1 million per occurrence in respect of
bodily injury, death and property damage.
ATTACHMENT A
SCOPE OF SERVICE
1. General
1.1. Installation of single phase and polyphase electric meters in the City of Seward service
area.
2. Key Deliverables and Schedule
Contractor shall perform the following Services as described:
2.1. PROJECT RESPONSIBILITIES
General
a. Contractor shall supply union skilled labor electric meter installation equipment
and related personal protective equipment necessary for meter exchange.
Contractor is responsible for providing company vehicles and fuel necessary for
the period of this contract.
b. Change Management: Contractor must follow mutually agreed upon process for
approval of any changes to contract, project scope, schedule, cost and quality.
Contractor Responsibilities
a. Contractor shall be responsible for scheduling and paying for its assigned work
force.
b. "Work Days" may be anytime between Monday — Saturday between 6:00 a.m. to
6.00p.m PST. Contractor may work (4) ten hour days or (5) eight hour days with
overtime designated as any hours worked beyond normal work schedule and
above 40 hour work week. Overtime requires National Metering and Utility
approval prior to working.
C. Contractor shall schedule all National Metering installers.
d. Contractor assumes for this project that there are no blackout dates and no
special allowance in scheduling is necessary.
e. Vehicles will prominently display signage indicating Utility and Contractor with
logo on both sides of vehicle. Magnetic placards (i.e., door magnets) or its
equivalent shall be used in this regard.
f. Contractor will stay on designated roadways and customer ingress surfaces
unless off road access to poles is required.
g. After turnover from Utility, Contractor shall be responsible for all meters provided
to Contractor until such meters are installed at the scheduled location or returned
as provided for herein.
h. Contractor will gather the assigned service and meter information in connection
for each meter installation in an electronic format mutually agreed to by both
Parties and forward to Utility via a csv file or other file format within 48 hours of
meter exchange.
Contractor shall provide installation services as defined in the Installation And
Removal Checklist (Attachment B) and in accordance with requirements stated
below:
o Verification of location/premise and meter type
o Voltage test of meter socket
o Old Meter:
■ Out Reads
■ Meter Number
■ Digital image of old meter in service;
o New Electric Meter:
■ In Reads
■ Meter Number
■ GPS Location
■ Digital image of new meter placed in service
• Photos are searchable by meter number and can be incorporated
into service information as well as separate JPG file.
• Details of any obvious/visual evidence of tampering that has occurred prior to meter
change -out visit; and
■ Reasonable details of any safety issues encountered. If conditions appear to be
unsafe or a diversion is evident, Contractor's installer shall not remove the existing
meter and shall contact Utility's designated point of contact as described therein.
If Contractor's personnel is unable to perform an installation due to access issues, its
installer shall leave a door hanger (provided by Utility), informing the customer that an
Electric Meter installation attempt was made and advising the customer that an
appointment must be scheduled to perform the installation. Such door hanger shall
provide a phone number that the customer should call for appointment purposes.
For avoidance of doubt, meter exchange cost will be charged each time National
Metering & Technical Services visits customer's service for the meter exchange. Every
effort will be made by National Metering employees to change out meter the same day
the service was visited by National Metering employees. If more than two attempts to
customer site are required that are out of National Metering's control (meter bases
burned up, outages, blocked meters, refusals, no access, etc.) the task of scheduling
and changing customer's meter will be turned over to City of Seward.
2.2. PROJECT STANDARDS
Complaint Resolution
■ All complaints, whether received in the field or via telephone shall be
documented, and addressed.
■ Contractor will investigate, in a timely fashion, any customer's complaint. If at
the conclusion of the investigation it is determined, in the reasonable belief of
Contractor, that Contractor is solely responsible for the damage giving rise to the
complaint; Contractor will compensate the customer for the damage caused by
Contractor. However, if complaint is not Contractor's responsibility, the complaint
will be turned over to Utility for resolution.
Delay of Project or Scope of Work change
• If a delay of project or scope of work change is caused by Utility and at no fault of
National Metering, and if costs are incurred for the project by National Metering,
compensation for all expenses incurred for project by National Metering shall be
reimbursed by Utility.
Incident Prevention
Contractor shall make reasonable commercial efforts to prevent any incidents
within the following categories relating to its installation of electric meters
hereunder:
a) fire;
b) damage to equipment or facilities;
c) production loss;
d) environmental damage;
e) breach of security; and
f) health and safety.
ATTACHMENT B
ELECTRIC METER
INSTALLATION AND REMOVAL CHECKLIST PROCESS
I. Installation Requirements for Electric Meters
A. All necessary personal protective equipment ("PPE"), including secondary gloves rated
for the voltage or higher and at least category 1 arc rated clothing shall be worn any
time a potentially energized meter base is opened. Arc rated face shields shall be worn
while working on voltages above 240 volts nominal. This includes checking voltage.
B. All meter bases shall be inspected for hazards prior to opening. Hazards include, but
are not limited to:
■ Obstructions such as tripping hazards, shrubs, animals, etc.
■ Damage to the meter base, such as rust, holes, burned marks, dents, broken or
missing glass, meter base falling away from a structure, etc.
■ Arcing or buzzing sounds coming from the meter base. If this condition exists,
Contractor shall contact Utility immediately.
■ Signs of tampering such as, cover damage due to prying, existing meter installed
upside down, etc. Contractor's installer shall contact Utility designated point of
contact immediately if there is evidence of any such hazard.
C. If the inspection reveals a condition that may be a hazard and cannot be corrected by
Contractor's personnel, Utility shall be notified by Contractor to address the hazard. No
attempt to remove or install a meter shall be made until all hazards have been
addressed.
D. Voltage checks shall be performed to verify that the meter being set is the correct meter
for the installation.
E. All installations shall be sealed with a Utility approved seal before leaving the meter
base.
F. No energized meter base shall be left open and unattended.
G. Once the meter base is opened, a thorough visual inspection shall be performed to
reasonably determine whether any hazard exists. Hazards include, but are not limited
to:
a. Burn marks, signs of arcing or odors related to either;
b. Cracked mounting blocks;
c. Signs of loose connections;
d. Discolored or rusted connections;
e. Insulation melted or cracking;
f. Signs of tampering; and
g. Any other abnormal condition
H. If a hazardous condition arises during the removal of a meter, such as a lug or
conductor breaking loose from an insulated mounting block, no attempt shall be made
to re -install existing meter or install the new meter. Contractor shall contact Utility
contact person immediately. No energized meter base shall be left open and
unattended.
ATTACHMENT C
Terms of Payment
UNIT PRICE - Includes all labor and expenses, travel expenses, mobilization.
*Does not include additional transportation to remote meters that are not accessible via truck only.
The actual cost for boat or air to remote meters to be charged directly to City of Seward.
*Estimated amount only -actual number to be
Approx.
Per Meter
Total Bid
determined
To Be
Bid
Done
Single Phase Meters
2600*
49.94
$ 129,844.00
Form No. 1S/2S/12S Network
Three Phase Self -Contained Meters
Form No. 12S/14S/15S/16S
Single Phase/Three Phase CT'd Meters
Form No. 3S/35S/5S/6S/9S
200*
99.98
$ 19,996.00
Total Labor for Meters
2800*
$ 149,840.00
Meters
Per
Total Vehicle
# Vehicles
Day
Expense
Vehicle Rental, Fuel, Tools and Equipment
4
150.00
$ 12,600.00
TOTAL BID
$ 162,440.00
In the event a meter service is, or becomes an unsafe condition and NMTS is unable
to put in safe condition or leave unattended, Utility will be immediately
notified for resolution. A rate of $120.00 per hour per worker will be charged after the
first 30 minutes of standby time that requires National Metering employee's presence
as a safety watch at the unsafe service.
Not included in Contract:
• Any work to include repair work other than standard meter exchanges.
• No equipment or parts not mentioned in contract.
• Any other vehicles and/or equipment not mentioned in contract.
• Meters, meter rings, seals, glass covers, door hangers
• Warehousing or storage facilities for meters.
• Recycling or disposal of meters- however, National Metering will return old meters
to a City of Seward pre -designated local disposal area.
• Programming or testing of either old or new meters.
Payment Terms:
■ Net 10 days