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Item No: 8.D. <br />Meeting Date: June 23, 2008 <br />Type of Business: Consent Agenda <br />Administrator Review: _____ <br />City of Mounds View Staff Report <br />To: Honorable Mayor and City Council <br />From: Michael Schnur, Lead Utility Operator <br />Item Title/Subject: Resolution 7300 Authorizing Staff to Enter Into <br />An Agreement With the City of Columbia <br />Heights for the Use of Water Meter Reading <br />Equipment. <br /> <br />Background: <br />The City installed an automated meter reading system in the Fall of 1995 through <br />the Spring of 1996. The initial install consisted of around 350 Radio read devices <br />when phone lines were not accessible. Through the years these radio devices, <br />which have been very reliable, have increased from the initial 350 to around 825. <br />In the beginning the City read its own meters, which took two people a day to read, <br />but now would take two people, two days plus. For the past few years, HD Supply <br />Waterworks has read our meters for us for free, but now have started to charge us <br />a reading fee. <br /> <br />Discussion: <br />There are three viable solutions: <br /> <br />1.) The City purchases its own Mobile reading unit and read the current 825 <br />Sensus Radio units with current staff. This consists of a Vehicle <br />Transceiver Unit (VXU) and Auto Read Software upgrades. No <br />additional staff time would be required to obtain the readings, because it <br />could be done at the same time as staff collects the readings of the new <br />radio system. This would be a total cost of $21,700.00 plus tax. <br />2.) The City could continue to hire HD Supply Waterworks every quarter at a <br />current cost of $500.00 per quarter. <br />3.) The City could enter into an agreement, or a letter of understanding type <br />agreement with the City of Columbia Heights, to use their VXU. <br />Columbia Heights is asking for; <br />a. A share of all future upgrades to the (VXU) in a percentage of meters <br />read. Columbia Heights reads around 6000 meters, and Mounds View <br />reads around 825, so Mounds View would pay approximately 15% of <br />all future upgrades. (Columbia Heights just upgraded their software for <br />their VXU’s and does not expect to have to upgrade for 5 years) <br />b. If the VXU unit gets damaged while Mounds View staff is using the <br />equipment, that Mounds View will pay to have it fixed up to the <br />$1,000.00 deductable.