Background:
On February 13, 2024, the City of Sunrise Commission approved Contract No. C-22-14-09-HR for Advanced Meter Infrastructure (AMI) services via Resolution 24-16. The Utilities Department and Public Service Division are currently in the process of modernizing the City’s existing water meter and natural gas meter reading operations through the phased implementation of AMI technology. As part of this initiative, the City is transitioning away from traditional manual meter reading methods in favor of automated meter reading capabilities that improve operational efficiency, data accuracy, and provide better customer service.
The City currently maintains a contract for meter reading services with Bermex, Inc. that was awarded by City Commission on February 14th, 2023 via Resolution 23-21 (Contract C-22-57-08-WL), that was originally structured and priced based on a per-meter read amount with assumptions of required number of employees and quantity of meters to read. Under the existing pricing methodology, the rate is tied to labor field activities associated with physically reading meters on established routes throughout the City divided into cycles taking geography and distance into account. Additionally, Bermex, Inc. utilizes a smartphone meter reading (SPMR) system they procured to specifically service the City of Sunrise.
As the new electronic meters are coming on-line, we have less demand for manual meter reading, which necessitates an amendment to the existing agreement from a per-meter read rate to a monthly flat rate, based upon the number of manual meters requiring reading. This new model shows a progressive decrease in the overall cost per month, reflecting the actual work the Contractor is completing.
Staff evaluated alternative options for delivering these services to customers; however, it was determined that due to the specialized equipment that Bermex uses, this is the most appropriate course of action to ensure uninterrupted service at a lower cost.
Accordingly, staff is requesting approval of a First Amendment to revise the pricing methodology for the existing meter reading services contract, effective April 1, 2026, to better support the City’s phased AMI implementation plan where the demand for service continues to decrease at an accelerated pace. The contract is expected to phase out over the next six to nine months as AMI installation is completed throughout the City's service areas.