The approved FY2022 Capital Budget includes $1,037,300 in funding to begin the Residential Water Meter Replacement Multi-Year Program. An ERT is a required component of the Automated Meter Reading (AMR) system proposed, which will transmit water meter data to existing infrastructure (ComEd meter).  

This request is for the approval of a multi-year contract for negotiated unit pricing to purchase Encoder Receiver Transmitters (ERT’s), from United Systems, Benton, Kentucky, in an amount not-to-exceed the budgeted funding allocation per year.

A detailed memorandum describing the system proposed for this multi-year project was recently provided to the Village Board.  This request authorizes the purchase of 22,000 ERT’s over the course of the next three years, in conjunction with the schedule outlined below. The proposed AMR system will require agreements with both Itron and ComEd as part of the fixed-base program, which will be brought to the Village Board in future meetings, as the project nears completion. 

By providing a commitment to purchase all 22,000 units, the vendor is able to provide reduced pricing on each unit, and the Village is able to pay for the units as they are received in line with the proposed schedule. Outside the terms of the Village-negotiated price identified below, the current pricing for the ERT model is $106/ERT. The negotiated pricing of $90/ERT represents a savings of approximately $120,000 in the first year, and an additional savings of approximately $40,000 per year for years two and three, as a 5% yearly escalator was removed during negotiations. This initial year of funding proposes purchasing approximately 33% (7,333) of the ERT’s and a percentage of water meters (to be requested under separate cover at a future Board Meeting this year). The lead time for these products is approximately four to six months. By purchasing the materials this year, the Village will be in a good position to bid out the 1st year of installation in 2023.

The pricing for these components (shown below) was negotiated as part of the comprehensive Automated Meter Reading System Program that has been budgeted and identified in the 5-Year Capital Plan.  

Itron Encoder Receiver Transmitters (ERT’s) – (Itron-500W Water Radio Modules)

2022 = 7,333   X   $90/ERT = $660,000
2023 = 7,333   X   $90/ERT = $660,000
2024 = 7,334   X   $90/ERT = $660,000

  Total   22,000         $1,980,000

Funds for these components are included in the 2022 Capital budget in Account No. 505-9001-571.50-25 (WA0302).

Staff is recommending approval of the purchase of 7,333 Encoder Receiver Transmitters (ERT’s), from United Systems, the authorized supplier of Itron products in our region.  

RECOMMENDATION

It is recommended that the Village Board approve a multi-year contract at the negotiated fixed unit prices of $90.00 per ERT, to purchase Encoder Receiver Transmitters (ERT’s), from United Systems of Benton, Kentucky, in an amount not-to-exceed the budgeted funding allocation per year. Staff requests that the Village Board authorize the execution of all necessary documents to complete this purchase commitment.