AGENDA CAPTION:
Title
Consider approval of Resolution 2018-165R, approving an agreement with Cannon Technologies, Inc. for Advanced Metering Infrastructure components in the amount of $10,199,547.24 for a maximum term of six years; authorizing the City Manager or his designee to execute the appropriate documents on behalf of the City and declaring an effective date.
Body
Meeting date: September 18, 2018
Department: Public Services Department - T. Taggart, Executive Director (By Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $10,199,547.24 to be funded over the term of the agreement with FY18-19, FY 19-20 Capital Funds and multiple operational accounts.
Account Number: 21006318.53008; 22006333.53087, Future CIP Project
Funds Available: $10,200,000
Account Name: Meter Replacement, Supplies-Meters
Fiscal Note:
Prior Council Action: No prior Council Action.
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Background Information:
San Marcos Electric Utility has partnered with Cannon/Eaton Industries as the sole source of Advanced Metering Infrastructure (AMI) components since 2007. This includes all AMI software, gateways, nodes, and integrated electric meters. As we begin the upgrade/implementation to their most current AMI system (Yukon System) we anticipate that we will rely on Eaton/Cannon parts for at least another 10 years.
During the transition, we expect to continue purchasing parts for the existing system as well as purchasing parts for the new system. When possible we plan to reuse old parts as we replace them with the new system but there will be some purchases for the old system. This agreement has an initial two (2) year term with the option to renew for up to four (4) additional one (1) year terms.
The Local Government Code, Section 252.022(7) permits a limited exemption from the competitive bidding process if the items to be purchased are available from only one source. The City considers the AMI components a sole source procurement from Cannon Technologies, Inc., based on captive replacement parts or components for equipment.
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