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Agenda 12/11/2018 Item #16C 612/11/2018 EXECUTIVE SUMMARY Recommendation to approve an increase in funding for the operational costs and term of the Sole Source Waiver and Master Sales Agreement with Itron Incorporated for automated meter reading services for the utility system acquired from the Florida Government Utility Authority approved at the July 10, 2018 Board Meeting (Agenda Item 16.C.1). 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 Collier County Board of County Commissioners (Board) approved a Master Sales Agreement with Itron, Inc., for Advanced Metering Infrastructure Services under Contract #18-7301-NS (the “Agreement”) and Sole Source Waiver. This Agreement provides for automated meter reading of the system inherited with 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. The amounts reflected in the original Fiscal Impact Section of the Executive Summary were based on estimated sums without having any experience with Advanced Metering Infrastructure (AMI). The increase will allow the contract limits to reflect the total anticipated amount for the initial term and through the life of the Agreement. As requested in the original Executive Summary, the Board approved the Agreement with Itron, Inc. as a sole source vendor pursuant to Section Eleven, sub-paragraph 10 of Collier County Procurement Ordinance No. 2017-08. Staff recommends approval of the extended waiver and an increase in the annual expenditure set forth for the five-year base period of the Agreement. FISCAL IMPACT: Funding for implementation services in an amount up to $50,000, an increase of $8000 over the amount previously approved for this service, is available in the Water User Fee Fund (412). Annual operating costs are estimated to be $50,000, an increase of $10,000 over the amount previously estimated for these services, 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 (Contract #18-7301-NS) up to $100,000 for the initial year for implementation services and annual operating expenses, $50,000 for the successive years, and to acknowledge the attached Sole Source Waiver reflecting the increased amount and term. Prepared By: Sue Jim Zimmerman, Contract Administration Specialist, Public Utilities Department ATTACHMENT(S) 1. Attachment 1 - 18-7301-NSExecSumm&Waiver 16C1 7-10-18 (PDF) 2. Attachment 2 - Corrected FY19 Waiver Request 075 - Itron (PDF) 16.C.6 Packet Pg. 1765 12/11/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.6 Doc ID: 7351 Item Summary: Recommendation to approve an increase in funding for the operational costs and term of the Sole Source Waiver and Master Sales Agreement with Itron Incorporated for automated meter reading services for the utility system acquired from the Florida Government Utility Authority approved at the July 10, 2018 Board Meeting (Agenda Item 16.C.1). Meeting Date: 12/11/2018 Prepared by: Title: Planner – Public Utilities Operations Support Name: Sue Zimmerman 11/14/2018 4:34 PM Submitted by: Title: Division Director - Operations Support – Public Utilities Operations Support Name: Joseph Bellone 11/14/2018 4:34 PM Approved By: Review: Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 11/14/2018 4:42 PM Procurement Services Opal Vann Level 1 Purchasing Gatekeeper Completed 11/15/2018 8:11 AM Procurement Services Sara Schneeberger Additional Reviewer Completed 11/15/2018 9:31 AM Procurement Services Ted Coyman Additional Reviewer Completed 11/15/2018 5:46 PM Procurement Services Catherine Bigelow Additional Reviewer Completed 11/16/2018 8:42 AM Public Utilities Department Sarah Hamilton Level 1 Division Reviewer Completed 11/16/2018 12:33 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 11/16/2018 4:16 PM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 11/19/2018 1:37 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/19/2018 2:36 PM County Attorney's Office Emily Pepin CAO Preview Completed 11/19/2018 3:52 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/20/2018 9:02 AM Budget and Management Office Ed Finn Additional Reviewer Completed 11/20/2018 4:14 PM County Manager's Office Geoffrey Willig Level 4 County Manager Review Completed 11/28/2018 4:54 PM Board of County Commissioners MaryJo Brock Meeting Pending 12/11/2018 9:00 AM 16.C.6 Packet Pg. 1766 07/10/2018 EXECUTIVE SUMMARY Recommendation to approve a Master Sales Agreement with Itron, Inc., for Advanced Metering Infrastructure Services, Collier County Contract #18-7301-NS. OBJECTIVE: To approve a Master Sales Agreement (Collier County Contract # 18-7301-NS) between Itron, Inc. (Itron) and the Collier County Board of County Commissioners (Board), which will provide Advanced Metering Infrastructure (AMI) Services to collect water meter readings for monthly utility bills currently installed in the Golden Gate City System, as well as other areas in the Collier County Water- Sewer District (CCWSD), when and where feasible following pilot tests. CONSIDERATIONS: Meter Services Operations is responsible for the operations, maintenance and repair of the Itron AMI supported system within Golden Gate City. This contract is necessary to properly import meter readings for the installed meter base of approximately 3,800 AMI meters for proper billing to the Golden Gate City utility customers. Itron currently provides the software for reading all our current non-AMI meters. Today, staff relies on the US Water Services contract for customer service and meter reading services at a monthly cost of more than $17,000. The CCWSD is embarking on a pilot AMI program within the North-East and South-East service areas to test this technology. This vendor will provide a central service area location in Golden Gate City and give us good insight into how well the technology could work for the CCWSD in other areas. The software and system being procured is proprietary to Itron. Pursuant to Section Eleven, sub-paragraph 10 of the Collier County Procurement Ordinance 2017-08, staff requests that the Board find that it is in the best interest of the County to purchase these advanced metering infrastructure services from Itron as a sole source vendor. FISCAL IMPACT: Funding for implementation services in the amount of $41,921 is available in the Water User Fee Fund (412). Annual operating costs are estimated to be $40,000 and 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: This project meets current Growth Management Plan standards to ensure the adequacy and availability of viable public facilities. RECOMMENDATION: To approve and authorize the Chairman to sign the attached Master Sales Agreement for the Golden Gate City AMI Services, Collier County Contract #18-7301-NS with Itron, Inc., in the amount of $41,921. Prepared by: Jesse Komorny, Manager, Meter Operations Joseph Bellone, Director, Financial Operations Support ATTACHMENT(S) 1. Sole Source Waiver and Letter from Itron (PDF) 2. 18-7301-NS Itron Inc. Master Sales Agreement (PDF) 16.C.1 Packet Pg. 982 16.C.6.a Packet Pg. 1767 Attachment: Attachment 1 - 18-7301-NSExecSumm&Waiver 16C1 7-10-18 (7351 : Recommendation to approve increase) 07/10/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.1 Doc ID: 5461 Item Summary: Recommendation to approve a Master Sales Agreement with Itron Inc. for Advanced Metering Infrastructure Services, Collier County Contract #18-7301-NS. Meeting Date: 07/10/2018 Prepared by: Title: Division Director - Operations Support – Public Utilities Operations Support Name: Joseph Bellone 05/31/2018 9:07 AM Submitted by: Title: Division Director - Operations Support – Public Utilities Operations Support Name: Joseph Bellone 05/31/2018 9:07 AM Approved By: Review: Public Utilities Operations Support Teresa Riesen Additional Reviewer Completed 05/31/2018 9:25 AM Procurement Services Sandra Herrera Additional Reviewer Completed 05/31/2018 9:59 AM Procurement Services Opal Vann Level 1 Purchasing Gatekeeper Completed 05/31/2018 10:00 AM Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 05/31/2018 3:12 PM Procurement Services Ted Coyman Additional Reviewer Completed 05/31/2018 5:59 PM Public Utilities Department Sarah Hamilton Level 1 Division Reviewer Completed 06/04/2018 9:52 AM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 06/05/2018 10:18 AM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 06/11/2018 2:02 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/11/2018 2:55 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/13/2018 1:10 PM Office of Management and Budget Susan Usher Additional Reviewer Completed 06/13/2018 4:30 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/14/2018 2:34 PM Board of County Commissioners MaryJo Brock Meeting Pending 07/10/2018 9:00 AM 16.C.1 Packet Pg. 983 16.C.6.a Packet Pg. 1768 Attachment: Attachment 1 - 18-7301-NSExecSumm&Waiver 16C1 7-10-18 (7351 : Recommendation to approve increase) 16.C.1.a Packet Pg. 984 Attachment: Sole Source Waiver and Letter from Itron (5461 : Agreement with Itron Inc. for Advanced Metering Infrastructure Services)16.C.6.a Packet Pg. 1769 Attachment: Attachment 1 - 18-7301-NSExecSumm&Waiver 16C1 7-10-18 (7351 : Recommendation to approve increase) Instructions Collier County 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: Fiscal Year:Requested date range: ______________ Not to Exceed per Fiscal Year: Is there an agreement associated with this Yes †No † Waiver? Sole Source:†Single Source:†One Time Purchase:†Multiple Purchases:† Description of Purchase: Enter a description of the item(s) items 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. How was the decision made to use this vendor?Describe in detail if a formal standardization process was performed via Procurementorifthereisahistoricalprecedenceestablishedfortheuseoftheproduct,pleaseexplainpurchaseandusehistory and the current level of County investment in the product. What is the cost/benefit of using, or continuing to use, this vendor for this product(s)?Describe savings or benefit of staying with this firm and the additional cost or down side of switching to another provider. 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? When will your next evaluation be performed? Citing the definitions provided at the top of this form, why is this either a Sole Source or a Single Source? If a sole source please provide a letter from the manufacturer indicating so, or indicating a controlled distribution to only one authorized source. If a Single Source please elaborate and justify. Teresa Riesen Public Utilities Itron Implementation Services Itron 18-23 7/10/18-7/9/23 $100,000 ■ ■ *ltron Implementation Services "Hosted Fixed Network Implementation & Training *ltron Analytics Implementation & Training *ltron Total AMI - Cloud Services Initial Set-up & Server fees for Fixed Network *ltron Total AMI - Cloud Services Initial set-up & server fees for Itron Analytics Implementation (including configuration) services for Itron Total AMI -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 other annual services. Itron Total AMI - Fixed Network Software & Itron Total AMI - Itron Analytics Software is proprietary software to Itron and required to read AMI meter technology. 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 UBCS did not possess. We would not be able to bill accurately without the software. No market research or alternatives were reviewed. UBCS took over FGUA and inherited their software systems. Itron Total AMI - Fixed Network Software & Itron Total AMI - Itron Analytics Software is proprietary software to Itron and required to read AMI meter technology. 16.C.6.b Packet Pg. 1770 Attachment: Attachment 2 - Corrected FY19 Waiver Request 075 - Itron (7351 : Recommendation to approve increase) Date of BCC standardization(if applicable):BCCItemnumber: It is a felony to knowingly circumvent a competitive process for commodities or services by fraudulentlyspecifying sole source. Florida Statute 838.22(2). Requested by:Signature:Date: Division Director:Signature:Date: Procurement Strategist:Signature:Date: Procurement Director: Or designee Signature:Date: For Procurement Use Only: Current FY Approval:†Multi-Year Approval:†Start End Teresa Riesen Joseph Bellone Sara Schneeberger Catherine Bigelow ■07/10/2018 07/09/2023 BelloneJoseph Digitally signed by BelloneJoseph Date: 2018.11.14 07:48:02 -05'00' SchneebergerS ara Digitally signed by SchneebergerSara DN: dc=net, dc=colliergov, dc=bcc, ou=Divisions, ou=ASD, ou=ASD Purchasing, ou=Purchasing User Accounts, cn=SchneebergerSara, email=SaraSchneeberger@colliergov.net Date: 2018.11.14 09:12:12 -05'00' 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: 2018.11.14 09:24:38 -05'00' Teresa Riesen Digitally signed by Teresa Riesen Date: 2018.11.14 07:02:15 -05'00' 16.C.6.b Packet Pg. 1771 Attachment: Attachment 2 - Corrected FY19 Waiver Request 075 - Itron (7351 : Recommendation to approve increase)