HomeMy WebLinkAboutDocumentation_Regular_Tab 12_12/10/2020Agenda Item #12.
Regular Council
STAFF MEMO
Meeting: Regular Council -Dec 10 2020
Staff Contact: Matthew Hammond, Utilities Department: Utilities
Director
Reimbursement from Core &Main for Additional Costs During AMI Project
The Village undertook an Advanced Meter Infrastructure (AMI) project beginning in December 2019.
As a part of the project the Village contracted with Core &Main to supply the water meters and
transmitters as well as install and commission the base stations, antenna and software to support the
project. During the project Core &Main ran into challenges delaying the completion of their work on
the contractually agreed upon dates. Due to lack of communication by Core &Main the challenges
resulted in problems with the Village's billing process beginning in May 2020 resulting in additional
costs to the Water Enterprise Fund over the subsequent months. The direct costs incurred by the
Village are as follows:
Temporary Employee $10,986-80 12 weeks @ $24.97/hour
(Holidays excluded)
Meter Testing $71200.00 10 meters/month for 12 months
@ $60/meter
Customer Letter (Initial) $77192.11 Previously reimbursed
Customer Letters $1,103.64 3 mailings @ $367.88 each
(Follow-up)
Total Direct Costs $267482.55
Core & Main has acknowledged these additional direct costs incurred by the Village and offered to
reimburse the Village the full amount through a material credit. Note that $7,192.11 for the printing
and postage costs of the initial letter to customers has been previously reimbursed by Core & Main. In
addition to the direct costs above, Core & Main has provided a significant amount of in -kind services
to the Village from August 2020 to date in the form of completing meter related field work that was to
be completed by Village staff to expedite the completion of the project.
POTENTIAL MOTION / DJ&ECTION REQUEST ,D:,
Accept reimbursement of $19,290.44 from Core & Main in the form of a material credit.
Letter From Core & Main.ada
Page 149 of 179
Agenda Item #12.
CORE
November 3, 2020
Mr. Matthew Hammond, PE
Utility Director
Village of Tequesta
Tequesta, Florida
Re: Request for Reimbursement
Dear Matt, per your request, Core &Main is agreeable to resolve this issue of additional cost
that you mentioned below, which were incurred by the Village of Tequesta, due to our early
delay in the AMI project.
Temporary
12 weeks @ $24.97/hour (Holidays
Employee $107986.80
excluded)
10 meters/ month for 12 months @
Meter Testing $77200.00
$60/meter
Customer Letters $17103.64
3 mailings @ $367.88 each
$19,290.44
Core & Main is willing to issue a material credit to the account of the Village of Tequesta for
$19,290.44, with the consideration that the Village of Tequesta in return would be willing to
furnish a letter of acknowledgment to Core & Main, acknowledging that the delays by Core &
Main in the initial period of the AMI project, created undue billing issues resulting in additional
cost for the Village of Tequesta, however once Core & Main was properly notified of this
situation, both Core & Main and Sensus responded quickly and worked through a resolution that
met the Village of Tequesta's expectations and satisfaction.
We appreciate your review and hopefully acceptance of this resolution.
Respectfully,
Chuck Reed
Regional Vice President - Southeast
Page 150 of 179