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Item No. 13 TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Robert G. Vine, Deputy City Manager SUBJECT: Water Meter Replacement Agreement DATE: June 24, 2024 BACKGROUND: Due to various reasons, the City has a backlog of business and residential water meters in need of replacement. The Utility Billing and Public Works Departments are teaming up to address this issue. STATUS OF ISSUE: Staff have devised a plan to replace the non -working and/or malfunctioning water meters, by creating placing these job orders into two classes, Business and Residential. Public Works Department will work on the list of business meters. Utility Billing Department is working as time allows to replace some residential meters. For the bulk of the residential meters, a third -party vendor has been selected to provide for a quicker completion of the existing list. Staff requested quotes from 3 local plumbing services capable of performing this scope of work and received quotes from two of them, with JB & L Utility Contractors having the lowest quote. With the estimated price of replacing residential water meters below $50,000.00, it is not necessary to procure this item unless directed otherwise by the City Council. The proposed agreement has a cap of $48,000 maximum spending. To protect the interest of the City, reduce liability, ensure quality of service, address this issue in a timely manner, and to protect the city's revenue stream, the City would like to enter into an agreement with JB & L Utility Contractors for this ongoing project. This agreement outlines the expectations and scope of the work to be performed by JB & L Utility Contractors. BUDGET: The City has budgeted $100,000.00 for meter replacement projects (purchasing and/or installation). The contract with JB&L will be a not -to -exceed $48,000.00 from this line item. OPTIONS: