HomeMy WebLinkAbout3/18/2025 Item 5c, Floyd and Ridgeway - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: March 18, 2025
TO: Mayor and Council
FROM: Aaron Floyd, Utilities Director
Prepared by: Julie Ridgeway, Utilities Business Manager
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 5C - AWARD CONTRACT TO ALEXANDER’S CONTRACT
SERVICES INC. FOR CONTRACT METER READING SERVICES
Staff received the following questions. The questions are below with staff’s response
shown in italics:
1) If we anticipate that the highest year’s cost in the 24/25 through 26/27 years
is going to be $154,328, is there a reason you would like to make the contract
“not to exceed amount” so much higher ($243,780)?
Staff are requesting that the “not-to-exceed” contract price for Alexander’s be set
at the full budget amount ($243,780) to allow for flexibility in the installation rate as
meters are transitioned to AMI. While staff have developed a forecast analysis for
the installation timeline, the actual rate may fluctuate due to variations in the time
required to install radios on certain meters, such as in the downtown area where
installations may take longer. Setting the contract price at the total budget amount
will allow staff to not be inhibited in utilizing Alexander’s services as they are
needed.
2) Is this contract the only meter-reading expense we have, or are there other
costs that result in the overall budgeted amount of $243,780?
The total budget of $243,780 per year accounts for both the manual meter reads
conducted by the City’s third-party meter reading company (Alexander’s) and the
monthly cellular radio charges for meters with AMI capabilities (Badger Meter).
Since both costs are incurred on a per-meter basis, the number of manual reads
performed by Alexander’s will decrease as more meters are equipped with cellular
radios. Alexander’s is aware of this transition and has taken this into account in
their proposed pricing. Staff project that the total amount for both services
combined will remain under the $243,780 per year budget during the two upcoming
years as the City transitions to AMI.