Item 4M - Memo FINAL Item 4M
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M E M O R A N D U M
(October 02, 2018)
To: Shana Yelverton, City Manager
From: Rob Cohen, Director of Public Works
Subject: Approve an annual purchase agreement for BEACON Cellular
Service with Badger Meter Inc. in an amount of $123,395
Action
Requested: Approve an annual purchase agreement for BEACON Cellular
Service with Badger Meter Inc. in an amount of $123,395.
Background
Information: As part of the FY 2016 roll out of the Water Smart Southlake
initiative, Public Works oversaw the technology upgrade of all water
metering equipment throughout the City. As part of the project, all
water meters were equipped with equipment that transmits daily
readings back to a central database via the cellular network.
The central database, BEACON Eye on Water, stores utility
customer’s water consumption readings which are used to
accurately bill customers every month. Eye on Water also allows
customers to set up accounts to monitor their water usage and
make adjustments to conserve water and save money. The
software tool allows staff to monitor and investigate leaks, identify
hardware issues, and ensure cellular radio communication is
maintained.
The City has approximately 12,500 cellular endpoints including
those for residential domestic and irrigation meters, as well as
compound commercial meters which utilize 2 endpoints per meter.
The City is responsible for paying a monthly fee for the cellular
service that is used to transmit meter reading data from the field.
Financial
Considerations: As part of the initial agreement with Badger, Southlake was
provided with fifteen (15) months of free monthly cellular service
which started in May 2016. In October 2017, the City began to pay
monthly cellular service on all endpoints in the field. The monthly
cellular service is $0.89/unit/month or approximately $133,500/year
for 12,500 cellular endpoints.
Item 4M
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Public Works has worked with Badger Meter to obtain a lower
service unit rate if the annual fee is paid as a lump sum payment.
Public Works has negotiated a reduced monthly service rate from
$0.89/unit/month to $0.81/unit/month or $121,500/year for 12,500
cellular endpoints. The 9% reduction in the service rate translates
to a cost savings of approximately $12,000/year for the City.
Funding for this contract is budgeted in the amount of $123,395 in
the FY 2019 Water Division annual operating budget. While the
current cost estimate with the negotiated lower rate of
$0.81/unit/month is $121,500/year for 12,500 cellular endpoints,
staff is requesting City Council authorization of up to the $123,395
budgeted amount. This delta allows for the addition of a total of 195
new endpoints as the City continues to grow this fiscal year. In FY
2017, 233 new cellular endpoints were installed in the City. In FY
2018-to-date, 121 new cellular endpoints have been installed. This
number will grow each year as the City continues to develop.
Strategic Link: This item links to the City’s strategy map relative to the strategic
focus areas of Infrastructure and Performance Management &
Service Delivery. The specific corporate objectives that are met by
this item include: (B2) Collaborate with select partners to implement
service solutions and (F2) Invest to provide & maintain high quality
public assets.
Citizen Input/
Board Review: N/A
Legal Review: None
Alternatives: The City Council may approve or deny this request.
Supporting
Documents: Attachment A: Badger Meter Quotation No. 398254
Staff
Recommendation: Approve an annual purchase agreement for BEACON Cellular
Service with Badger Meter Inc. in an amount of $123,395.
Staff Contact: Rob Cohen, Director of Public Works
Cristina McMurray, M.P.A, C.P.M, Deputy Director of Public Works
4545 W Brown Deer Road Milwaukee WI 53223
PO Box 245036 Milwaukee WI 53224-9536
Phone: 800-876-3837 Fax: 888-371-5982
Customer Service Rep: Lschleker@badgermeter.com Revised Date: September 17, 2018
TO Kyle Flanagan CUSTOMER ID: 00002499
CITY OF SOUTHLAKE
ACCOUNTS PAYABLE1400 MAIN ST STE 440
SOUTHLAKE Texas 76092
Phone:
Fax:
E-mail: kflanagan@ci.southlake.tx.us
EFFECTIVE DATES: 9/17/2018-9/16/2019
SALESPERSON PROPOSAL SUBJECT SHIPPING TERMS/INCO TERMS PAYMENT TERMS
007723
BEACON CELLULAR ENDPOINT
SERVICE UNITS
PREPAY/NO CHARGE
FCA FACTORY
NET 30 DAYS
LINE #
DESCRIPTION QTY UNIT NET PRICE
USD
LINE TOTALS
USD
1 ORION CELLULAR LTE SERV UNIT
68886-104
1 $0.81 $0.81
2 ORION CELLULAR 1XRTT SERV UNIT
68886-101
1 $0.81 $0.81
Notes and Assumptions:
NOTE - PRICING IS VALID FOR UNITS 75,001 OR GREATER WITH A SINGLE PURCHASE ORDER SUBMITTED
If applicable, sales tax and freight charges will be added at time of invoice.
Actual lead time to be provided at time of order.
If you have any questions concerning this quotation, please contact:, ,
To place an order, please contact: Laura A. Schleker, 800-616-3837, Lschleker@badgermeter.com
Official authorized quote of Badger Meter Inc.
,
QUOTATION
Quotation No.398254
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