AGENDA ITEM SUMMARY

Consider purchase of the Itron Openway meter reading infrastructure to replace the Smart Synch AMI system in the amount of $1,461,266.47, using funds from the Municipal Competitive Trust Short Term Flexible Operating account, and amend the budget accordingly. Electric Director Bill Bosch will address

Due to the turn down of 2g communication by AT&T, the Smart Synch system will soon be obsolete. Through negotiations the proposed price was discounted  $1.6 million to compensate for impact on COG. The need to change these meters will also be under a time restraint by Jan 1 2017, when AT&T turns off 2g data communication.

Tru-check will be used under our present meter contract to change out these meters at a cost of $10.72 cents per residential meter, and $16.70 per commercial meter. Total cost of meter changes to be approximately $164,410.00.

Staff recommends approval. Based on the fact that existing meters will not communicate after the Jan 1, 2107 date, along with discounted price for replacement system will not be available in the future.  Normal cost for this system is in excess of $3mil.

There will be no impact on COG ratepayers, funds will be drawn from the Electric Municipal Trust and excess energy sales.

Total cost of project is recommended at a "do not exceed" price of  $2 million:  $1,461,266.47 for the meter system, approximately $164,410 for meter change outs, and an estimated $50k for Cogsdale integrations. (Cogsdale expense in 15-16 budget) not part of Municipal trust payment.

MEAG Trust Short Term Operating balance as of Dec. 31, 2015 is $8,828,321.40.