AGENDA MEMORANDUM

Meeting Date:           July 25, 2011

From:                          Mike Thornton

Subject:                      Purchase request 43798 for electric meter testing for the Electric Department

Staff Recommendation:

Staff recommends approval of purchase request 43798 to M & R Services for electric meter testing for a total amount for this purchase of $21,400.00.  This purchase plus a previous purchase request approved by the City Manager will make an aggregate amount spent with this vendor $42,800.00.

Analysis:

This vendor provided meter testing services to the Electric Department.  The Electric Department previously had 200 meters tested at a cost of $107.00 per meter; that expense was within the City Manager’s signature authority.  The Electric Department is now requesting an additional 200 meters be tested, which requires City Commission approval due to the aggregate exceeding $25,000.

The previous purchase added to this current request places the aggregate expense at the City Commission approval level.

This vendor is used because of a previous agreement between M & R Services and FMPA.  There is no longer a relationship between M & R Services and FMPA, but the Electric Department requests this vendor be used based on positive past performance.  The vendor also provides a very detailed and useful report following the PT & CT testing of each electric meter.

Options:

1.  Approve the purchase to M & R Services; or

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Funds of $42,800.00 were not specifically budgeted for this service, but are available within the category.  It is important to note that this testing service has resulted in meter adjustments which will generate more revenue than the cost of the services provided.  In addition, the meter testing ensures a smooth transition from the current metering environment to the smart meters by  alleviating any billing discrepancies that would have surfaced as a result of meter change out. 

Submission Date and Time:    7/22/2011 5:24 PM____

Department: __Electric Department______ Prepared by:  __Mike Thornton_________                      Attachments:         Yes____   No ___X__ Advertised:   ____Not Required ____X__ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________             Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. ___________JB_____                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. __041-1062-531.34-10_ Project No. ___415860__________ WF No. ______NA_____________ Budget  ______________________ Available _____________________