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Agenda 09/08/2020 Item #16C5 (Master Sales Agreement #18-7301-NS)09/08/2020 EXECUTIVE SUMMARY Recommendation to authorize an increase in funding for the operational costs and term of the Sole Source Waiver and Master Sales Agreement # 18-7301-NS with Itron, Inc., for automated meter reading services pertaining to the utility system acquired from the Florida Government Utility Authority (“FGUA”). OBJECTIVE: To increase the amount of the available funding to acknowledge the annual operational costs and limit of the contract and reflect the increase of the annual amount and term of the sole source waiver. CONSIDERATIONS: On July 10, 2018 (Agenda Item 16.C.1), the Board approved a Master Sales Agreement with Itron, Inc., for Advanced Metering Infrastructure Services under Agreement # 18-7301- NS (the “Agreement”) and Sole Source Waiver. The Agreement provides for automated meter reading of the system acquired in the FGUA acquisition. Not all operational costs were known since taking over the FGUA system and without recognizing the increase the anticipated expenditures under the Agreement will be under-funded. On December 11, 2018 (Agenda Item 16.C.6), the Board approved an increase in funding for the existing Agreement with Itron, Inc., up to $100,000 for the initial year for implementation services and annual operating expenses, $50,000 for the successive years, and acknowledged the revised Sole Source Waiver reflecting the increased amount and term. The amounts reflected in the original Fiscal Impact Section of the Executive Summary was based on estimated sums without having any experience with Advanced Metering Infrastructure. Staff has now determined ongoing annual operating costs to be approximately $100,000, in line with the initial implementation year. The Board previously approved the Agreement with Itron, Inc., as a sole source vendor as allowed under section eleven, sub-paragraph 10 of Collier County Procurement Ordinance No. 2017-08, as amended. Staff recommends approval of extending the sole source waiver term and increasing the annual expenditure (in the amount $100,000 amount noted above) for the life of the Agreement. FISCAL IMPACT: Annual operating costs are estimated to be $100,000. Funds are available in the Water-Sewer Operating Fund (408). LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. RECOMMENDATION: To approve an increase in funding for the existing Agreement with Itron, Inc., approved under Agenda Item 16.C.1 on the July 10, 2018 Board Meeting (Agreement # 18 -7301-NS) up to $100,000 for annual operating expenses and to acknowledge the attached sole source waiver reflecting the increased amount for the term of the Agreement. Prepared By: Jesse Komorny, Manager - Meter Services, Operations Support Division Donna Deeter, Contract Administration Specialist, Operations Support Division 16.C.5 Packet Pg. 976 09/08/2020 ATTACHMENT(S) 1. FY20 Waiver Request 088 - Itron (Amended) (PDF) 2. 18-7301-NS_ItronAgreement_FullyExecuted (PDF) 16.C.5 Packet Pg. 977 09/08/2020 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.5 Doc ID: 13052 Item Summary: Recommendation to authorize an increase in funding for the operational costs and term of the Sole Source Waiver and Master Sales Agreement # 18-7301-NS with Itron, Inc., for automated meter reading services pertaining to the utility system acquired from the Florida Government Utility Authority (“FGUA”). Meeting Date: 09/08/2020 Prepared by: Title: – Public Utilities Department Name: Drew Cody 07/29/2020 9:49 AM Submitted by: Title: Division Director - Operations Support – Public Utilities Operations Support Name: Joseph Bellone 07/29/2020 9:49 AM Approved By: Review: Public Utilities Operations Support Donna Deeter Additional Reviewer Completed 07/29/2020 9:53 AM Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 07/29/2020 9:57 AM Procurement Services Opal Vann Level 1 Purchasing Gatekeeper Completed 07/29/2020 10:35 AM Procurement Services Sara Schneeberger Additional Reviewer Completed 08/03/2020 9:09 AM Procurement Services Sue Zimmerman Additional Reviewer Completed 08/04/2020 2:30 AM Procurement Services Sandra Herrera Additional Reviewer Completed 08/04/2020 2:15 PM Procurement Services Catherine Bigelow Additional Reviewer Completed 08/06/2020 9:32 AM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 08/07/2020 9:46 AM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 08/07/2020 1:55 PM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 08/07/2020 3:03 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/07/2020 3:05 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/07/2020 4:26 PM Budget and Management Office Ed Finn Additional Reviewer Completed 08/18/2020 1:02 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 09/01/2020 10:02 AM Board of County Commissioners MaryJo Brock Meeting Pending 09/08/2020 9:00 AM 16.C.5 Packet Pg. 978 Collier County Instructions Waiver Request Form Completed waiver requests accompanied by any associated backup documentation (sole source letter, business case, etc.) must be submitted to the division’s Procurement Strategist for any procurement, without competition, in excess of $3,000. Waiver requests greater than $50,000 will require approval by the Board of County Commissioners. Sole source refers to a procurement where the selection of one particular supplier to the exclusion of all others may be based on having only one supplier in the market place, proprietary technology, copyright, patent, or a supplier’s unique capability. Single source refers to a procurement directed to one source because of standardization, warranty, geographic territory, or other factors, even though other competitive sources may be available. Requester Name: Division: Item/Service: Vendor Name: Historical Countywide Spend: ______________________ Requested date range: _____________ Not to Exceed per Fiscal Year: _______________ Is there an agreement associated with this waiver to be reviewed by Contracts? † Yes † No †Sole Source †Single Source †One Time Purchase †Multiple Purchases Description of Purchase: Enter a description of the item(s) that will be purchased under this waiver. Purpose: Describe in detail, the public purpose of the requested item(s) and why it is essential to County operations. Information Technology: Select Yes if the products/services are related to Information Technology. If yes, please provide the Purchasing Compliance Code (PCC) number or email approval documentation. †Yes †No If yes, provide the PCC number:__________________________________________________ Jesse Komorny Public Utilities Fiscal Operations Itron Equipment and Service Itron, Inc. $90,000FY FY20-FY26 $100,000 Fixed Network Software & Itron Total AMI - Itron Analytics Software required as part of the FGUA acquisition to read AMI meters and bill new customers of Golden Gate City, including parts and repairs for Meters, Collectors and Repeaters required to operate the system. Itron Total AMI - Fixed Network Software & Itron Total AMI - Itron Analytics Software is proprietary software to Itron and required to read AMI meter technology. Required to properly bill customers within this service area. 210151 - RAD01✔ ✔ ✔✔ 16.C.5.a Packet Pg. 979 Attachment: FY20 Waiver Request 088 - Itron (Amended) (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # Justification: Identify the criteria that qualifies this purchase as a sole or single source. Select from the list below. Check all that apply (if box is checked, please make sure to provide an explanation below): †Sole Source †Only Authorized Vendor or Distributor: Is this vendor the only vendor authorized to sell this product/service? If yes, explain below and provide documentation from the manufacturer confirming claims made by the distributors. †No Comparable Product or Service: Is there another vendor who can provide a similar product/service, regardless of cost, convenience, timeliness, etc.? †Product Compatibility: Does this product/service provide compatibility with existing equipment that prohibits switching to another comparable brand/vendor? If yes, provide the detailed explanation below, including what would occur if the other brand/vendor were used. †Proprietary: Is this product/service proprietary? If yes, provide a detailed explanation below on how its use is restricted by patent, copyright or other applicable laws and provide documentation validating that claim. †Single Source †Standardization: Is this product/service part of a purchase that the County has already standardized on? If yes, please provide the detailed information below. Date of BCC Standardization: ___________________ BCC Agenda Item number: __________________ †Warranty: Is this the only vendor able to complete factory-authorized warranty services on County owned equipment? If yes, provide the documentation verifying the warranty. †Geographic Territory: Is this vendor the only vendor authorized to sell this product/service in our region? If yes, provide documentation from the manufacturer confirming those claims. †Other Factors: Any other reason not listed above, explain below. Explain: How does this purchase meet the identified sole or single source criteria listed above? The CCWSD acquired the FGUA utility and inherited their newly implemented AMI software systems. Without the use of the Itron software and equipment, staff would not be able to import meter reads into the software system accurately and timely. The software uses AMI technology that UBCS did not possess. Billing would be inaccurate without the Itron software and equipment. The equipment and replacement parts are a sole source supplied by this vendor and are required for repair, maintenance and new installations. ✔ ✔ 16.C.5.a Packet Pg. 980 Attachment: FY20 Waiver Request 088 - Itron (Amended) (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # Explain why it is in the County’s best interest to use this product/service rather than issuing a competitive solicitation: What are the benefits from the continued use? Are there costs that would be incurred if a different vendor/product was used? What would occur if another brand/vendor was used? Explain how this pricing compares to other vendors/products and is it considered to be fair and reasonable: Provide information on historical use and whether pricing has increased/decreased. If sole source and no other product is available, provide the cost for addressing the needs via an alternate approach. Will this purchase obligate the County to future ancillary products or services? Either in terms of maintenance or standardization. †Yes †No If yes, explain what types: How was the decision made to use this vendor? Describe in detail if a formal standardization process was performed via Procurement or if there is a historical precedence established for the use of the product, please explain purchase and use history and the current level of County investment in the product. Public Utilities took over FGUA and inherited their newly installed AMI software systems. Itron Total AMI - Fixed Network Software and Itron Total AMI - Itron Analytics Software are proprietary software to Itron and required to read AMI meter technology. The County has invested over $175,000 to date. Without the use of the Itron software, staff would not be able to import meter reads into software system accurately and timely. The software uses AMI technology that the CCWSD did not possess. We would not be able to bill accurately without the software. This system was purchased by FGUA as a new system just prior to the acquistion. Replacement costs are estimated to be two million dollars to replace approximately 4,000 meters currently in use, which are still under warranty. No market research or alternatives were reviewed. The CCWSD acquired theFGUA utility in Golden Gate City and inherited their newly installed software systems. Replacement costs are estimated to be two million dollars to replace approximately 4,000 meters currently in use, which are still under warranty. Annual software maintenance ✔ 16.C.5.a Packet Pg. 981 Attachment: FY20 Waiver Request 088 - Itron (Amended) (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # Market research and market alternatives: When was the last time a market evaluation was performed to determine if either the technology or vendor offerings have changed? Based on the life expectancy of the product, when do you anticipate evaluating the market again? Please attach a detailed market evaluation report should the complexity, duration, and dollar amount of the purchase be a high risk to the County. It is a felony to knowingly and intentionally circumvent a competitive process for commodities or services by fraudulently specifying sole source to obtain a benefit for any person or to cause unlawful harm to another. Florida Statute 838.22(2). Requested by: Signature: Date: Division Director: Signature: Date: Department Head: Required if over $50,000 Signature: Date: Procurement Strategist: Signature: Date: Procurement Director: Or designee Signature: Date: For Procurement Use Only:  †Approved †Requesting Additional Information †Requires RFI/Intent to Sole Source †Rejected Procurement Comments: †Current FY Approval †Multi-Year Approval Start Date: ______________ End Date: __________ No market research or alternatives were reviewed. The current value of the investment with Itron is in excess of two million dollars. Staff will solicit for proposals in approximately ten years after warranty expiration of the current meters. Jesse Komorny Joseph Bellone Dan Rodriguez Sara Schneeberger Catherine Bigelow Replaces the current FY19 Waiver #75 09/08/2020 07/09/2026 Jesse Komorny Digitally signed by Jesse Komorny Date: 2020.06.15 07:54:11 -04'00' Joseph Bellone Digitally signed by Joseph Bellone Date: 2020.06.17 14:45:51 -04'00' Dan Rodriguez Digitally signed by Dan Rodriguez Date: 2020.06.26 09:41:50 -04'00' SchneebergerS ara Digitally signed by SchneebergerSara Date: 2020.07.21 09:00:19 -04'00' Cat Bigelow Digitally signed by Cat Bigelow DN: cn=Cat Bigelow, o=Collier County Government, ou=Procurement Services, email=catherinebigelow@colliergov.net, c=US Date: 2020.07.21 15:04:39 -04'00' ✔ ✔ 16.C.5.a Packet Pg. 982 Attachment: FY20 Waiver Request 088 - Itron (Amended) (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # 2111 North Molter Road tel 509-924-9900 Liberty Lake, WA 99019 fax 509-891-3355 www.itron.com toll-free 800-635-5461 June 16, 2020 Collier County, FL Re: Itron AMR/AMI Modules & Itron Reading Equipment Please accept this letter as confirmation that Collier County is serviced by Itron as a direct account. As a result, no distributor or other entity is authorized, by Itron, to sell Itron’s Mobile Collector 3 (MC3), Mobile Collector 3Lite (MC3 Lite), FC300’s, and AMR/AMI modules (100W+ and Riva) - Itron’s latest generation of automatic meter reading (AMR) devices & AMR/AMI modules. If you have any questions, please do not hesitate to contact me. Sincerely, Rusty Agi Area Manager 16.C.5.a Packet Pg. 983 Attachment: FY20 Waiver Request 088 - Itron (Amended) (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # 16.C.5.bPacket Pg. 984Attachment: 18-7301-NS_ItronAgreement_FullyExecuted (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # 16.C.5.bPacket Pg. 985Attachment: 18-7301-NS_ItronAgreement_FullyExecuted (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # 16.C.5.bPacket Pg. 986Attachment: 18-7301-NS_ItronAgreement_FullyExecuted (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # 16.C.5.bPacket Pg. 987Attachment: 18-7301-NS_ItronAgreement_FullyExecuted (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # 16.C.5.bPacket Pg. 988Attachment: 18-7301-NS_ItronAgreement_FullyExecuted (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # 16.C.5.bPacket Pg. 989Attachment: 18-7301-NS_ItronAgreement_FullyExecuted (13052 : Increase in funding for the Sole Source Waiver and Master Sales Agreement # 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