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WATER METERS

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Vivian Moon View Drop Down
MUSA Council
MUSA Council


Joined: May 16 2008
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Topic: WATER METERS
    Posted: Jan 26 2013 at 5:13am

LEASE OBLIGATION 

The City entered into a $8,023,623 eleven-year lease obligation in February 2006. The lease proceeds were used to replace almost all of the 18,000 commercial and residential water meters in Middletown. The monthly lease payments due are split evenly between the City’s Water and Sewer Funds. The Lease agreement requires the City to pay interest only for the first twelve months of the lease period with principal payments beginning in March 2007. The interest rate on this lease is 3.68%.


Gentlemen
This entire statement seems wrong to me. I thought we paid for the water meters with a $10,000,000 bond. And we only replaced 18,000 meters?
If we are going to tear down 300 homes this year are the meters sent back to company or stored for later use or thrown in the trash?
Anyone remember the details of this deal?

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Middletown29 View Drop Down
MUSA Citizen
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Middletown29 Quote  Post ReplyReply Direct Link To This Post Posted: Jan 27 2013 at 3:50am
I think the almost $2 million difference was used by city officials for personal vehicles and travel to foreign countries.
I am sure the city throws the meters away from houses torn down.
Glad you were able to dig this information up Vivian.
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Vivian Moon View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jan 29 2013 at 5:33am

ORDINANCE NO. O2005-125                                 

 

AN ORDINANCE ESTABLISHING A PROCEDURE FOR AND AUTHORIZING A CONTRACT WITH JOHNSON CONTROLS, INC. FOR THE WATER METER REPLACEMENT PROJECT AND DECLARING AN EMERGENCY.

 

BE IT ORDAINED, by the City Council of the City of Middletown, Butler/Warren Counties, Ohio that:

                                                                     Section 1

 

The City Manager without complying with the procedures of Chapter 735 of the Ohio Revised Code shall enter into a contract with Johnson Controls, Inc. for the replacement of city water meters and the installation of new automatic meter reading system and fixed based wireless communication system in a form substantially similar to Exhibit “A” attached hereto.

 

                                                                     Section 2

 

For said purpose the Director of Finance is hereby authorized and directed to pay a sum not to exceed $9,475,147.00 of which $4,737,573.50 shall be from the Water Fund and $4,737,573.50 shall be from the Sewer Fund, which said $9,475,147.00 is hereby appropriated.

 

                                                                     Section 3

 

This Council hereby determines that the procedure to be followed in the award and execution of the aforesaid contract shall consist solely of the procedure set forth in this Ordinance and the provisions of Chapter 735, Ohio Revised Code, shall not be applicable to the award and execution of the aforesaid contract.

 

                                                        Section 4

 

It is hereby determined that the subject matter of this legislation is not of a general and permanent nature, does not provide for a public improvement, and does not assess a tax or payment.

 

                                                        Section 5

 

This ordinance is declared to be an emergency measure necessary for the immediate preservation of the public health, safety and general welfare, to wit: to obtain the present financing terms and avoid increases in interest, and shall take effect and be in force from and after its adoption.

           

 

_______________________________                                                                                  Mayor

 

Adopted: December 6, 2005                                                           

 

Attest:     _______________________                                                          

Clerk of the City Council

 

 

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Vivian Moon View Drop Down
MUSA Council
MUSA Council


Joined: May 16 2008
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jan 29 2013 at 5:51am

S T A F F R E P O R T

For the Business Meeting of: December 6, 2005

November 21, 2005

TO: Bill Becker, City Manager

FROM: David J. Duritsch Jr., Environmental Services Director

WATER METER REPLACEMENT PROJECT

PURPOSE

To authorize the City Manager to enter into a contract with Johnson Controls, Inc. to replace the City’s water meters, and install a new automatic meter reading system and fixed base wireless communication system: and appropriate the necessary funds.

BACKGROUND and FINDINGS

As was discussed with City Council at our last meeting, the City of Middletown has been working with Johnson Controls over the past year to evaluate the potential for performance contracting opportunities in our water meter reading system.

The current billing system protocol requires quarterly meter readings and monthly bills, creating the need for estimated bills during the non-read months. This process is very inefficient and has been confusing for residents and cumbersome for water billing staff. In addition, the City has been working towards a drive-by radio read system over the past 10 years whereby vehicles could drive down the street and capture meter readings each month. This technology is very dated and will take well over 50 years to implement at the current rate of change out.

Under the proposed performance contract, Johnson Controls will install 20,155 new meters and guarantees their accuracy for 10 years. This guarantee will require annual testing of meters to verify accuracy as well as training on the new automatic meter reading system and wireless communication system during the same 10 year timeframe.

ALTERNATIVES

This project can be financed through traditional borrowing or using HB 300.

FINANCIAL IMPACT

The total cost of the project, including water meters, automatic meter reading system, wireless communication platform, and annual consultation and verification, is $9,475,147.00. This fee is broken down into $8,023,683 for the infrastructure improvements to be made over a 14 month period (through February 2007) and $1,451,464 for the annual consultation and verification services over the next 10 years. The additional revenues estimated from the improved meter accuracy will pay for the total project cost in just over 11 years. This project will require a supplemental appropriation, half of which will come from each of the Water and Sewer Funds.

CONFORMITY TO CITY POLICY

Conforms.

OTHER CONSIDERATIONS

None.

EMERGENCY/NON EMERGENCY

Emergency. As interest rates rise, sooner implementation should result in more favorable financing terms.

RECOMMENDATION

Staff recommends award of a contract with Johnson Controls, Inc. in an amount not-to-exceed $9, 475,147 to install more than 20,000 water meters, automatic meter reading system, and fixed base wireless communication system.

ATTACHMENT

Cash Flow Analysis
DJD/dd
cc: Ginger Smith, Public Works Director
John Lyons, Finance Director
Russ Carolus, Assistant Finance Director
Leslie S. Landen, Law Director
Betsy Parr, Clerk of City Council
File

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VietVet View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Jan 29 2013 at 6:08am
"This guarantee will require annual testing of meters to verify accuracy as well as training on the new automatic meter reading system and wireless communication system during the same 10 year timeframe".


I remember when I was contacted to install a reading device to the water meter downstairs. I hestitated to schedule a time to have the sending unit installed on my meter because the program wasn't explained very well in my opinion. When the city contacted me a second time, I got a better explanation and had the work done.

I have a question concerning the above statement from Duritsch to Becker. It states that there would be an annual test of the meters to verify accuracy. How is this done? Is it done on an annual basis as the letter states? Do they come to the house to do this because I haven't seen anyone at my house since the installation years ago. How do we know that they are accurate? Don't see the report of accuracy sent to the homeowner. How about a letter from the city in our next water bill verifying accuracy? I'm not going to take their word for it. For all we know, we could be getting a higher water bill than what our usage actually is. Where's the proof that your meters are accurate city?
I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.
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Vivian Moon View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jan 29 2013 at 6:23am

S T A F F R E P O R T

For the Business Meeting of February 7, 2006

February 3, 2006

TO: Bill Becker, City Manager

FROM: John Lyons, Finance Director

PURPOSE

The purpose of this staff report is to explain the ordinance authorizing a lease purchase agreement with Chase Equipment Leasing, Inc.

BACKGROUND and FINDINGS

Ordinance No. 02005-125 authorized a ten year, $9,475,147 contract with Johnson Controls, Inc. for a water meter replacement project. The cost of this contract included $8,203,623 for the purchase and installation of water meters and other equipment and $1,451,524 for Johnson Controls, Inc. consulting services on this project for a ten year period.

The cost of this contract will be evenly divided between the City Water and Sewer funds.

The proposed ten year lease agreement with Chase Equipment Leasing is for the purchase and installation of water meters and other equipment connected with this meter change-out project.

The Finance Department requested quotations from Chase Equipment Leasing, Inc., Citicapital Leasing, Inc. and Fifth-Third Bank. Chase Equipment Leasing, Inc. submitted the lowest bid.

The monthly lease payments will be paid from the operating earnings of the Water and Sewer funds over the next ten years. The interest rate of this lease is expected to be around 4%. The exact rate will be fixed on the loan closing date in mid-February.

EMERGENCY/NON EMERGENCY

This is an emergency ordinance because the funds are needed as soon as possible. The Johnson Controls contract approved last November calls for a substantial payment to Johnson Controls by the end of February.

DEPARTMENTAL COPIES

Clerk of the City Council
Law Department
Environmental Services
Purchase Agreement – Chase Equipment Leasing, Inc.

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Vivian Moon View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jan 29 2013 at 6:27am

ORDINANCE NO. O2006-8

AN ORDINANCE AUTHORIZING THE EXECUTION OF A LEASE-PURCHASE AGREEMENT BETWEEN CHASE EQUIPMENT LEASING INC., AS LESSOR, AND THE CITY OF MIDDLETOWN, AS LESSEE, AND DECLARING AN EMERGENCY.

WHEREAS, the City of Middletown has determined to provide for the acquisition and installation of water meter equipment pursuant to a Master Lease-Purchase Agreement and an Equipment Description Schedule and other schedules and addenda between Chase Equipment Leasing Inc., as lessor ("Lessor"), and the City, as lessee; and

WHEREAS, the obligations of the City under the Lease are subject to annual appropriations by this Council;

NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Middletown, Butler and Warren Counties, Ohio, that:

Section 1.

The City Manager and Director of Finance are each hereby authorized to sign and deliver, in the name of and on behalf of the City, the schedules ("Schedules") and Addendum ("Addendum") to the Master Lease-Purchase Agreement dated November 17, 2000 between Chase Equipment Leasing, Inc. as successor to Banc One Leasing Corporation, as Lessor, and the City, as Lessee (the "Master Lease" and together with all schedules and addenda thereto, the "Lease") substantially in the form attached as Exhibits A and B to this Ordinance. The form of Schedules and Addendum are approved with such changes therein that are not materially inconsistent with this Ordinance and not substantially adverse to the City and that are permitted by law and shall be approved by the officer signing the Schedules and Addendum, provided that the aggregate principal components of the Basic Rent (as defined in the Schedules) payable during all Lease Terms under the Schedules shall not exceed $8,023,623, the interest component of the Basic Rent shall accrue at an annual rate not in excess of 5.00% and the term of the Lease for the water meter equipment shall not exceed 11 years and one month. The approval of such changes, and that such changes are not materially inconsistent with this Ordinance and not substantially adverse to the City, shall be conclusively evidenced by the signing of the Schedules and Addendum by such officer. The City Manager and Director of Finance and the Clerk of Council are each further authorized to sign an escrow agreement, in substantially the form attached as Exhibit C to this Ordinance, and such certifications, financing statements, or other documents or instruments and to take such other actions as are desirable, advisable, necessary or appropriate to consummate the transactions contemplated by this Ordinance and the Lease.

Section 2.

This Council finds and determines that all formal actions of this Council or of any of its committees concerning and relating to the passage of this Ordinance were taken in an open meeting of this Council and of any of its committees, and that all deliberations of this Council and of any committees that resulted in those formal actions were in meetings open to the public in compliance with the law.

Section 3.

This Ordinance is declared to be an emergency measure necessary for the immediate preservation of the public peace, health, safety or property of the inhabitants of the City, and for the further reason that this Ordinance is required to be immediately effective to enable the City to fund its existing contract with Johnson Controls on favorable terms for the acquisition and installation of water meters and related equipment which is necessary for the efficient operations of the water system of the City; wherefore this Ordinance shall be in full force and effect immediately upon its passage.

Passed: February 7, 2006 ____________________________________

Mayor

Attest:

Clerk of City Council

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Middletown29 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Middletown29 Quote  Post ReplyReply Direct Link To This Post Posted: Jan 29 2013 at 7:05am
I can't believe the City got away with this scam. What happened to the $10,000,000 and where are the meters? Who is doing the testing?
How much did Becker pocket? Where is the investigation?
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Vivian Moon View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jan 30 2013 at 3:21pm

The City entered into a $8,023,623 eleven year lease in February 2006. The lease proceeds were used to replace almost all of the 18,000 commercial and residential water meters. To date all but approximately 200 meters have been replaced.

Michelle Greis

Assistant Finance Director/Treasurer
City of Middletown

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Vivian Moon View Drop Down
MUSA Council
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Vivian Moon Quote  Post ReplyReply Direct Link To This Post Posted: Jan 30 2013 at 3:56pm

Michelle
If all the new water meters are not installed then are we still paying someone in the water department to read the meters? How many meter readers do we now employ? I thought it was the salaries of the meter readers that was going to help pay for this project.
Six years and this project is still is not completed?
Vivian

So sorry, I discovered that all meters that were identified for the replacement program have been replaced. 

Michelle Greis
Assistant Finance Director/Treasurer
City of Middletown

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Middletown29 View Drop Down
MUSA Citizen
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Middletown29 Quote  Post ReplyReply Direct Link To This Post Posted: Jan 30 2013 at 4:44pm
So someone must have eaten a bunch of water meters and I am guessing it was the meter readers.
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