HomeMy WebLinkAboutE-5 Staff Report - Authorize BPO to Procure Electric Meter Locking RingsCONSENT ITEM
E-5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: APRIL 6, 2020
SUBJECT: REQUEST TO INCREASE FISCAL YEAR 2019/20 BLANKET PURCHASE
ORDER TO PROCURE ELECTRIC METER LOCKING RINGS FROM
INNER-TITE CORPORATION FOR THE ADVANCED METER
INFRASTRUCTURE PROJECT
BACKGROUND:
On June 25, 2018, during the regular Utility Board meeting, pursuant to Section 2-250 b-2 of the
Azusa Municipal Code, the Utility Board approved the selection of Inner-Tite Corporation
(Inner-Tite) as a sole source vendor to supply its proprietary electric meter locking ring for the
implementation of the Advanced Meter Infrastructure Project (AMI). As Staff planned for the
implementation of Phase II of the AMI Project, Staff sought Utility Board’s authorization of the
issuance of a blanket purchase order to Inner-Tite in the amount not to exceed $250,000. In
addition to replacing existing locking rings for the AMI project, ALW now anticipates the 3,500
additional electric services to serve Accessory Dwelling Units, which will also require electric
meter locking rings.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Amend the existing blanket purchase order with Inner-Tite Corporation to increase the
authorized amount from $250,000 to $320,000 for the acquisition of 3,500 additional electric
meter locking rings.
ANALYSIS:
Throughout Phase I and currently with Phase II of the AMI project, tamper proof meter-locking
devices (Locking Ring) manufactured by Inner-Tite have been installed with new AMI electric
meters.
APPROVED
CITY COUNCIL
4/6/2020
Electric Meter Locking Device
April 6, 2020
Page 2
These patented rings require proprietary keys for unlocking. The patented keys are serialized and
are sold exclusively to utility companies.
Throughout the current Phase II of the AMI project, contractor Utility Partners of America (UPA)
is installing and activating electric AMI meters for the entire system and concurrently installing
new locking rings. Based on the expectation of additional requests for electric service due to the
increase in Accessory Dwelling Units, staff foresees the need to acquire 3,500 additional units.
In light of the above and the amendment request exceeding $25,000 per Sec. 2-518 (b) of the
Azusa Municipal Code, Staff is seeking the Utility Board’s authorization to amend the existing
blanket purchase order to Inner-Tite from $250,000 to $320,000.
FISCAL IMPACT:
Total cost of the additional procurement of meter locking ring for the Phase II of the AMI Project
is estimated at $70,000 and budgeted funds are available in CIP Account No. 33-80-000-730-
7140/73018B- 7140 (Electric AMI).
Prepared by: Reviewed and Approved:
Richard Torres Manny Robledo
Assistant Director of Utilities Director of Utilities Electric
Resource Management Operations
Prepared by: Reviewed and Approved:
Hien K. Vuong Sergio Gonzalez
Assistant Director of Utilities City Manager
Electric Operations