Memorandum

City of Lawrence

Utilities Department

TO:	Diane Stoddard - Interim City Manager Casey Toomay – Assistant City Manager Brandon McGuire – Assistant to the City Manager
FROM:	Mike Lawless – Deputy Director of Utilities
CC:	Dave Wagner – Director of Utilities Bryan Kidney – Finance Director
DATE:	January 4, 2016
RE:	January 12, 2016 Agenda Item – Authorize the Interim City Manager to Execute a Professional Services Agreement for Advanced Metering Infrastructure Assessment with UtiliWorks Consulting, LLC, Project UT1507

Background

The Lawrence Finance and Utilities Departments provide service to 34,000 metered water accounts read manually or through a remote read system on meter vaults or areas that are difficult to access. Meters are read on a monthly basis by five (5) full time meter readers with turn-ons, turn-offs, re-reads, and small meter replacement handled by five (5) full time field representatives. A working supervisor oversees the ten (10) employees and an additional four (4) temporary meter readers during the KU rush between the end of May and beginning of August. In an effort to become more efficient and provide better customer service, staff has been investigating Advanced Metering Infrastructure (AMI) systems to enhance customer service, become more efficient in service delivery and provide improved diagnostic capabilities.

Project Details

The systems and technologies to deliver AMI are complex and rapidly changing. Staff is proposing to contract with a qualified consulting firm for professional services to assess the needs of the departments and help couple that with the latest technology in AMI for the water utility. The proposed system will read water meters through a wireless network, provide consumption data on at least a daily basis, provide new diagnostic capabilities for Utility Billing and Utilities Department managers and staff, and enhance customer service.

Project History

On August 11, 2015, City Commission authorized staff to advertise a Request for Proposals for Advanced Meter Infrastructure Assessment.

On September 11, 2015, staff received proposals from ten (10) interested firms. Proposals were received from Black & Veatch, CMG Consulting, Excergy, HDR, Johnson Controls, SL-serco, Util-Assist, UtiliWorks, Valutech Solutions, and West Monroe.

A review committee consisting of staff from the Finance and Utilities Departments evaluated the proposals. Excergy, UtiliWorks, and Valutech Solutions had the best proposals and were invited to interview with the review committee.

UtiliWorks was selected by the review committee based on the RFP response, their knowledge and presentation during the interview, the project manager, and the positive responses received during reference checks.

Current Status

Staff has negotiated an appropriate scope and fee for the project. The scope of work includes

· Review of existing vendors and AMI technology

· Review of current business processes, practices, and personnel to establish a baseline for assessing AMI readiness

· Customer Information System compatibility review

· Multiple meetings with Finance, Information Systems, and Utilities staff

· Meetings with Westar and Black Hills Energy on potential efficiencies and cost savings opportunities

· Development of a business case model and findings

· Development of a Proof of Concept Plan for an initial test area including coverage area, acceptance criteria, and testing methodology

· Development of a final assessment report

Completion of the project will take four to five months.

Project Funding

The project will be funded from the Department of Utilities Non-bonded Construction Fund.

Action Request

Authorize the Interim City Manager to execute a Professional Services Agreement in the amount of $95,295 with UtiliWorks Consulting, LLC for Advanced Metering Infrastructure Assessment, Project No. UT1507.