HomeMy WebLinkAbout10. 14-44
JANUARY 28, 2014 14-44 RESOLUTION
(CARRIED__7-0______LOST________LAID OVER________WITHDRAWN________)
PURPOSE: APPROVE AGREEMENT WITH HD SUPPY WATERWORKS FOR
SENSUS FIXED-BASE WATER METER READING PROGRAM WITH
HOSTED SERVERS & FIVE-YEAR SOFTWARE MAINTENANCE
PROGRAM ($197,500)
INITIATED BY: PURCHASING DIVISION
BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper
City officials are hereby authorized to enter into an agreement with HD Supply Waterworks
for a Sensus Fixed-Base Water Meter Reading Program with hosted servers and five-year
software maintenance in accordance with the attached proposal.
Money for this purpose is hereby appropriated from:
Acct. No. 541-1810-1797-00000 Water Utility Communication Equipment
551-1910-1799-00000 Sewer Utility Communication Equipment
OJWCOIH
ON THE WATER
MEMORANDUM
TO: Honorable Mayor and Members of the Common Council
FROM: Stephan M. Brand, Public Works Utility Bureau ManagerStilif
DATE: January 23, 2014
RE: Approval of Agreement for Sensus Fixed-Base Water Meter Reading Program with
Hosted Servers and Five-Year Software Maintenance Program/
HD Supply Waterworks (HD Supply) ($197,500)
BACKGROUND
In 2006, the Water Utility selected the Sensus FlexNet system, distributed by HD Supply from New Berlin,
Wisconsin, to provide a fixed-base radio read system for water meter reading. The new meters are being
installed as part of the 10-year cycle required for testing residential meters per the Wisconsin Public
Service Commission rules for water utilities. The Utility is currently 84% complete with the meter change-
out program and will continue converting the balance of the meters over the next two years. As part of the
purchase of the original FlexNet system, the Utility purchased two servers, the associated software, and
software maintenance agreements. These servers typically have a five-year useful life before they start
becoming obsolete due to changes in technology. Our existing servers are over seven years old and
need to be replaced in order to maintain reliable hardware and software for data collection, management,
and storage of meter reading information.
ANALYSIS
There are two options available to the Utility:
1. The Utility can continue to own the servers and the licensed software, and manage both of the
hardware and software on site with a total cost over five years of$262,685, or
2. The Utility could pay an annual subscription fee to HD Supply for these services, including the
FlexNet Maintenance. The Utility would not own the hardware or the software. The five-year cost
of that option is$197,500.
These two options were reviewed by Information Technology Manager Tony Neumann and Option #2
was recommended as the most reliable and cost effective option.
FISCAL IMPACT
This agreement is for a five-year period and would total $197,500. The fees for each year are as follows:
$35,600 for Year 1; $29,800 for Year 2; $57,300 for Year 3 (this includes the cost of a software upgrade);
$37,400 for Year 4; and $37,400 for Year 5. These costs would be paid from the Water and Wastewater
Utility Operating Budgets.
RECOMMENDATIONS
Chapter 12 of the Municipal Code of the City of Oshkosh provides that professional services of a
specialized nature may be procured without the use of formal, sealed quotes. I have reviewed this
agreement and in accordance with Section 12-16 of the Code, I am hereby recommending that the
Common Council approve this agreement.
Approved:
Mark A. Rohloff
City Manager
SMB/tlt
I:1Engineenng\Tracy Taylor\Memos to Mayor&Common Counci1120141HD Supply Sensus FlexNet Hosted Service Agreement Memo_1-23-14.docx