2006/06/13 City Council ResolutionRESOLUTION NO. 2006 -149
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK
RESCINDING RESOLUTION 2005 -253 AND AUTHORIZING THE CITY MANAGER
TO SIGN A NEW ITRON SUPPLEMENTAL PRODUCT WARRANTY AND SUPPORT
AGREEMENT
WHEREAS, the City of Rohnert Park installed radio reading devices (ERTs) to
approximately 7600 Residential meters in March 2003; and
WHEREAS, the manufacturer, Itron, has discovered that a component of the ERT is
malfunctioning and causing the battery to drain prematurely; and
WHEREAS, Resolution 2005 -253 was adopted August 9, 2005 to extend a five year
warranty, auditing and replace every nonfunctioning ERT with a new ERT and register, and
continue to perform monthly reads until 97% radio read rate is demonstrated for four months;
and
WHEREAS, due to failure to achieve a 97% read rate since August 2005, Itron has
agreed to replace the remaining 3400 Residential and 106 Commercial sites with 50W -1 ERT
modules and extend a new five -year warranty.
NOW, THEREFORE, BE IT RESOLVED that the Council does rescind Resolution
2005 -253 approving the previous warranty and hereby authorizes the City Manager to sign the
new Itron Supplemental Product Warranty and Support Agreement.
DULY AND REGULARLY ADOPTED by the Rohnert Park City Council this 13`h day
of June, 2006.
ATTEST: CITY OF ROHNERT PARK
City Clerk 2ONNERT
19
BREEZE: AYE FLORES: AYE MACKENZIE: AYE VIDAK- MARTINEZ: AYE SMITH: AYE
AYES: (5) NOES: (0) ABSENT: (0) ABSTAIN: (0)
JH- S:05 -d
117��7
May 8, 2006
Kristina Owens
Utilities Billing Supervisor
Utility Department, City of Rohnert Park
6800 Hunter Drive, Suite B
Rohnert Park, CA 94928
Electric I Gas I Water
Information cotfecficn, analysis and applicaffan
2818 North Sullivan Road
Spokane, WA 99216
509.924.9900 Tel
509.891.3355 Fax
www.itron.com
Subject: Itron Pit -set Water ERT Module Special Warranty Offer
Dear Ms. Owens,
On behalf of everyone at Itron, we'd like to thank you for your continued trust in our
products and our company. Based on your past experience we understand your concerns
related to long -term reliability of our pit -set ERT Modules. The purpose of this letter is
to address those concerns and propose a new warranty for your existing and replacement
ERT module products.
Itron proposes the following actions;
1. Replace remaining 50W -1 ERT modules with a 50W -2 ERT Module and a
new Badger Register with inline connector
2. Provide onsite AMR system operations training (3 days) and then turn
AMR system back over to Rohnert Park Operations. Training is expected to
be performed in June or July 2006.
3. Continue to perform monthly reads until in May and June 2006. Updating
ERT module data in CIS system is the responsibility of Rohnert Park.
4. Provide an extended warranty on all ERT Modules. Warranty of registers is
covered by the register manufacturer.
Itron's Extended ERT Module Warranty proposal is further documented in Attachment
"A ", the Supplemental Product Warranty and Support Agreement for Pit Set Water ERT
Modules, which should be read carefully and discussed jointly with your Itron Account
Executive, Kevin Keim, and your Badger Meter distributor. Your response to this offer
is requested by May 31, 2006 and, if you consider it a fair proposal, please sign and
return the original Agreement to my attention, keeping one copy for your records.
Kristina, Itron sincerely regrets any difficulty you have encountered with our products
and we are determined to address your concerns. We hope to receive your signed
Page 1 of 2
Electric 1 Gas /Water
Information collection; analysis and appticaiien
2818 North Sullivan Road
Spokane, WA 99216
509.924.9900 Tel
509.891.3355 Fax
www.itron.com
Agreement promptly so we may restore the performance of your Itron meter reading
service to the highest levels enjoyed by over 2,000 Itron customers nationwide.
Respectfully,
Michael Scarpelli
Director, MDC Systems Operations
4ncl: Attachment "A" - Supplemental Product Warranty and Support Agreement for Pit
Set Water ERT Modules
C: Ms. Darla Bowers
— Itron
Ms. Diane Guffin
- Itron
Mr. Don Turnage -
Itron
Mr. Kevin Keim —
Itron
Mr. James Olkowski — Itron
Mr. Allen Rogers -
Itron
Mr. Erik Tweedy —
Itron
Mr. George Efstatos — Badger Meter
Mr. Jimmy Terry —
Badger Meter
Mr. John Fillinger
— Badger Meter
Mr. Bob Neufuss —
Badger Meter
Customer File
Page 2 of 2
Electr,,. /teas / Water
®� Information collection, analysis and application
2818 North Sullivan Road
Spokane, WA 99216
509.924.9900 Tel
509.891.3355 Fax
www.itron.com
Attachment "A"
Supplemental Product Warranty
And
Support Agreement
For Pit Set Water ERT Modules
In connection with the resolution of performance problems with the Pit Set Water ERT Modules, Itron,
Inc. ( "Itron ") and the City of Rohnert Park ( "Customer ") have agreed to the terms contained in this
Supplemental Product Warranty and Support Agreement ( "Agreement ") for the Pit Set Water ERT
Module ( "ERT Module ").
Customer Commitments:
In exchange for the Extended Warranty as defined herein, Customer commits to the following:
1. Customer will support any requested Itron field visits, including cooperative efforts to a)
investigate non - functioning ERT Module equipped water meters ( "ERT'd Meters "), b) test or service
meter reading equipment, and c) profile Customer training, installation, field investigation, service,
data processing, and meter reading practices.
2. Customer will create and utilize, at its own expense, the following:
(a) A process to document ERT Module installation dates by part # and identification number.
(b) A field investigation process that collects all relevant "as found" information regarding the
ERT'd Meter's condition. This information will include the water meter brand (manufacturer), the
meter register type /model (if available), the water meter number and the ERT Module identification
number. All aforementioned information will be consolidated within a single document or, preferably,
a data source (Microsoft Excel file), and retained at the Customer's servicing location for a minimum
of twelve (12) calendar months. Customer will make such information available to Itron, Badger Meter
or manufacturer representatives as may be requested by Itron.
(c) A process to replace damaged or non - functioning ERT'd Meters in accordance with the
respective manufacturer's prescribed procedures. Customer will provide training to its field personnel
in accordance with Itron's documentation to ensure proper installation and service of ERT Modules
and will provide evidence of such training upon request from Itron.
3. Customer will conduct at least one (1) scheduled (monthly /quarterly) ERT Module /meter
reading attempt using either a radio - equipped Itron handheld or vehicle -based collection unit, prior to
initiating a field investigation of a non - functioning ERT'd Meter. During the field investigation,
Customer will attempt to read the ERT'd Meter using an Itron Handheld Reader. If Customer cannot
obtain a response from the ERT'd Meter or obtains an incorrect response, then Customer will remove
the ERT Module from service in accordance with Itron's prescribed procedures.
Attachment A Page 1 of 3
Elea_ ,e / Gres / Water
Itr6n]ntor;nation collection, analysis and appiicaticn
2818 North Sullivan Road
Spokane, WA 99216
509.924.9900 Tel
509.891.3355 Fax
www.itron.com
4. Customer's field personnel will document the date the ERT Module and register is removed
from service along with information collected in accordance with the Customer's field investigation
process. Additionally, Customer's field personnel will document manufacturer and model information
on any replacement products installed as part of the field investigation process and will include the
installer's name and employer (if a contracted labor resource). Replacement products and any other
materials, supplies or labor necessary for investigation or replacement of water metering equipment
shall be at Customer's sole expense.
5. On a regular basis, or when 12 or more failed ERTs are collected, during the Extended
Warranty period, Customer will contact Itron Customer Care and request warranty replacement of non-
functioning ERT Modules. Customer will provide Itron with model and quantity information on non-
functioning ERT Modules which Customer has removed from service. Customer will package and
ship non - functioning ERT Modules via pre -paid freight to Itron's designated servicing location. ERT
Modules that have been physically damaged are not subject to warranty replacement and should not be
returned to Itron. Customer will create and utilize a process for segregating physically damaged ERT
Modules from non - functioning ERT Modules. Additionally, Customer will coordinate disposal, at its
mwt, expense, of physically damaged ERT Modules and meter registers in accordance with applicable
manufacturer and government guidelines for proper disposal.
6. Customer will not destroy, salvage, or dispose of any non - functioning ERT'd Meter removed
from service within the Extended Warranty period without written authorization from Itron, which will
not be unreasonably withheld. Absent written authorization for equipment disposal, Customer may
dispose of the non - functioning ERT'd Meter six (6) months after removal from service.
Itron Commitments:
1. Itron shall provide an extended warranty on Itron model 50W -2 Water pit -set ERT Modules
installed at Customer site until August 1, 2011 ( "Extended Warranty "). This warranty is subject to
Section 4 of the End User License and Warranty Agreement between City of Rohnert Park and Itron,
Inc. dated January 31, 2003. Notwithstanding the foregoing, this Extended Warranty will not apply to
ERT Modules with physical damage.
2. During the Extended Warranty period, Itron will test and replace non - functioning or inaccurate
ERT Modules sent to Itron by Customer with replacement units furnished by Itron and will return the
new ERT Module via pre -paid freight from Badger Meter. Customer agrees that any ERT Module
deemed functional by Itron will not be replaced and Itron reserves the right to return functional ERT
Modules /registers to the Customer at Customer's expense.
3. During the Extended Warranty period Itron will work with Customer to implement processes
that ensure proper and consistent installation, data processing, meter reading, and field troubleshooting
practices. Itron will support Customer with an on -site Field Engineering "System Health and
Maintenance" training session that will be helpful in guiding Customer in developing and
implementing business practices to maximize AMR system performance over time.
Attachment A Page 2 of 3
Electra, r Gas / Water
Ar Information rollpo ;0n, analysis and applirafion
flarp'1%6
2818 North Sullivan Road
Spokane, WA 99216
509.924.9900 Tel
509.891.3355 Fax
www.itron.com
Customer agrees that this Agreement, including the transmitting letter from Itron, constitutes the sole
and exclusive understanding between Itron and Customer on the subject matter covered herein and
replaces in its entirety the Itron Pit -Set Water ERT Module Special Warranty Offer dated July 26,
2005. By accepting the terms of this Agreement all claims Customer may have against Itron with
regard to ERT Modules are resolved. All other provisions of Itron's End User License and Warranty
Agreement with City of Rohnert Park will remain in full force and effect. This Agreement is a
contractual settlement executed for the purpose of settling a disputed claim with regard to the ERT
Module. Nothing in this Agreement will be deemed or construed to be an admission of liability by any
party and all such liability is expressly denied. This Agreement applies only to the ERT Module and in
no way implicates any other product or arrangement between Itron and Customer. Upon execution of
this Agreement, Itron and Customer will have no other obligation or liability of any kind to each other
related to the ERT Module, except as described in the May 8, 2006 transmittal letter.
The undersigned Company representative warrants that Company has approved this transaction in
accordance with applicable law and procedures, that he is authorized to execute this Agreement on
behalf of Company, that he has read and understands the terms and conditions of this Agreement, and
that Company is entering into this Agreement voluntarily and without any promise of benefit other
than as set forth in this Agreement.
Itron Inc.
01100(D
Signature Date
Malcolm Unsworth
Sr. Vice President and General Manager,
Itron Hardware Solutions
Company: Public Works, City of Rohnert Park
Customer Signature Date
Stephen R. Donley
Customer Name (Please Print)
City Manager
Title
Per Reso. No. 2006 -149 adopted by
the City Council on 6/13/06.
Please sign both original documents, retaining one original for your records.
Please return one original document to;
ATTEST:
Mr. Michael Scarpelli
Itron, Inc.
2818 N. Sullivan Road
Spokane, WA 99216
Tel: (509) 891 -3863
Attachment A
City Clerk
Approved as to form:
City A rney
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