07/16/2013AP - Laserfiche WebLink

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Page - 2 — UTILITIES: ENIERGENCY ITEM Elster, to its credit, flew over two representatives from Aichi Japan where the meters are fabricated. It (W was part of their commitment to research and investigate why the meters were failing. Ultimately, changes to the meter manufacturing would be needed to prevent this from occurring in the future. In addition, sacrificial zinc anodes were recommended Elster to be placed on the exterior of the meter to prove e cat l�—odic protecrron� -t e -meta : In- short;= the zinc would=begin-to-corrode faster than the—-- associated metal and is used as a preventative measure. On March 27, 2013 Elster, its Japanese experts, IRCUD and Avanti met at the Utilities conference room to formalize a path forward. Elster verbally agreed to fabricate and provide 189 new meters using a change in its manufacturing process to address the heat passivation issue and it would provide the zinc anodes. Elster and IRCUD have been negotiating the terms and logistics of the Remedy Agreement since that time. Elster and its legal department have been working with Indian River County and its legal department to refine the specifics and to solidify each party's responsibilities and understandings. Attached is the remedy agreement which outlines the process moving forward. As part of this process, the Utility department is understandably concerned about the proposed manufacturing process. Elster assures us that this change will address the issues but staff has been interested in a more real-time method to determine if the meters are functioning properly. The Utilities department wishes to purchase additional modules from Elster in order to track consumption and data -log meter operation. These modules will allow staff to read meters more quickly and efficiently. As part of the Remedy Agreement, IRCUD will receive 189 modules along with the new meters. IRCUD will only be required to pay half the cost now ($19,089). If all the meters are working properly after a years' time, then the remaining 50% or $19,089 would be paid to Elster. Since the modules cannot be sourced through other competitors, staff is asking for Board approval to sole source the modules directly from Elster. A sole source letter is attached. Time is of the essence. Due to the condensed timeframe before most of our seasonal residents come back to Vista Gardens and Vista Royal, staff is adding this remedy agreement as an emergency item. Once approved, Elster has committed to IRCUD to have all 189 of the new meters to IRCUD by August 31, 2013. FUNDING: Funding for the Elster Modules is available from the Capital Account 471-166008. Funding for this account is derived from water and sewer sales. ACCOUNT NO.: Description Account Number Amount Elster Meter Modules 471-166008 $38,178.00 /yo •0L