1i. Water Meter Radio Replacement: Reject Bids-Auth. Readvertisement0
CITY OF
CgANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227.1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
7901 Park Place
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
www.ci.chanhassen.mn.us
MEMORANDUM
TO: Todd Gerhardt, City Manager
FROM: Paul Oehme, Director of Public Works /City Engineer <1
DATE: July 23, 2012 4 6 0
SUBJ: Water Meter Radio Replacement Project — PW02401: Reject Bids
and Authorize Readvertisement for Bids
PROPOSED MOTION
"The City Council approves a resolution rejecting bids and authorizing
readvertisement for bids."
City Council approval requires a simple majority vote of the City Council
present.
BACKGROUND
At Council worksessions in February, March and May, staff presented the need
for replacing the radio devices on all water meters in the city. In 2001, the City
installed radio devices on all the water meters to obtain the water usage remotely
without having to go on private property and physically read the meters.
Previously, each meter had to be physically read which would take weeks to
complete. This system has served the city well; however, the batteries for the
radios have begun to fail. The batteries for the radios have a life expectancy of 10
years.
At the March and May Council meetings, the Council reviewed the costs and cost
benefits for several radio battery replacement options. The City Council directed
staff to take bids for upgrading the radio meter system with a fixed based system.
The benefits for this option are as follows:
1. Entering the homes of our businesses and residents only one time in the next
ten years versus two times compared to replacing the existing batteries.
2. Multiple customer service features available to residents.
3. Staff time spent on re -reads will essentially be eliminated.
4. Final reads go from 3 -4 days to 10 -15 minutes.
5. Leak detection is an option available to customers.
6. Tamper detection available to city.
7. Twenty (20 +) year battery life.
8. An option to provide leak detection in City's watermains is available.
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Chanhassen is a Community for Life -Providing for Today and Planning for Tomorrow
Todd Gerhardt
Water Meter Radio Replacement Project
July 23, 2012
Page 2
9. The possibility of human errors on final reads or re -reads would be eliminated.
10. The existing mobile reading device is no longer manufactured. If, in an extreme case, the
mobile reader is destroyed, it would be time consuming and costly to find or engineer a
replacement.
11. On -going staff time to do mobile reads is eliminated.
DISCUSSION
On June 18, 2012, bids were opened for the meter radio replacement project. The City received
two very competitive bids. Bids received are as follows:
Ferguson Waterworks $1,253,601.17
H.D. Supply $1,246,374.25
Each bid met the specifications for the project. The low bidder, HD Supply located in Eden
Prairie, submitted a bid to have the installation portion of the contract completed by a company
located in New Jersey (National Metering Services, Inc.). This company has mainly completed
installation projects on the east coast with the exception of two projects in Oklahoma and Texas.
They have not completed projects in Minnesota or the upper Midwest. Staff checked references
of the company and all Cities contacted had good experiences working with the company and the
projects went well. However, staff feels this installation company is not a good fit for our
project and therefore recommends the bids be rejected and rebid at this time. Award of bids is
anticipated for the September 10, 2012 City Council meeting.
Attachment: Resolution
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: July 23, 2012 RESOLUTION NO: 2012-
MOTION BY:
SECONDED BY:
A RESOLUTION REJECTING BIDS AND AUTHORIZING
READVERTISEMENT FOR BIDS FOR THE
WATER METER RADIO REPLACEMENT PROJECT, PW02401
WHEREAS a bid opening was held on Monday, June 18, 2012 and two bids were
received; and
WHEREAS the low bidder submitted a bid to have the installation portion of the contract
completed by a New Jersey company who has not completed projects in Minnesota or the upper
Midwest; and
WHEREAS although the New Jersey company had favorable references, staff does not feel
this is a good fit for the City's project and is recommending the bids be rejected and rebid.
NOW THEREFORE BE IT RESOLVED that Council reject the bids received and
authorize readvertisement for bids for the Water Meter Radio Replacement Project.
Passed and adopted by the Chanhassen City Council this 23 day of July, 2012.
ATTEST:
Todd Gerhardt, City Manager
Thomas A. Furlong, Mayor
YES NO ABSENT