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HomeMy WebLinkAboutStaff Report 3.A 12/15/2014Agenda Item #3.A Og Ig58 DATE: December 15, 2014 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Dan StWddtirl4ASCE—Director, Public Works & Utilities Leonard Olive—Operations Manager, Public Works & Utilities SUBJECT: Resolution Approving the Purchase of Badger Water Meters and Registers for the Automatic Meter Read Replacement Project It is recommended that the City Council adopt the attached Resolution Approving the Purchase of Badger Water Meters and Registers for the Automatic Meter Read Replacement Project. The current General Plan identifies the need to convert to an Automatic Meter Read System (AMR) to maintain a high level of customer service and satisfaction (goal 8-G-2 Water Supply and Demand / policy 8-P-8.13). Toward that end, the City is implementing a phased project to convert to AMR. The City Council most recently approved similar purchases for earlier phases of the conversion program on March 5, 2012 and September 10, 2012. The current budget includes CIP funding for the AMR, as project C67500903. This purchase represents the final phase of the program to convert all residential and small commercial meters to the AMR system. Staff is bidding the installation contract is being bid separately and will be brought to Council at a later date. The City converted from bi-monthly billing to monthly billing in January of 2012. AMR meters were identified as the lowest cost alternative to allow for monthly reads. The AMR system significantly reduces the labor necessary to obtain monthly meter reads. The proposed action supports a multiple year program to replace existing manual read water meters with automatically read meters. There are approximately 19,700 meters in the system and of that inventory 17,090 have already been converted to Badger AMR. This proposed purchase is for 571 meters and 982 registers. AMR meters have greatly enhanced read accuracy and speed, as well as provide additional water conservation benefits such as water use profiling and leak detection. The department has been using Badger Meters since the late 1980s and began installing AMR meters in 2001. These meters have proven to be very reliable. The attached Resolution authorizes purchase of the meters and registers for the final phase of the AMR retrofit program. In cases where an existing meter is outside its useful life, the entire meter will be replaced. If the meter is still within its serviceable life of approximately 20 years, only the register portion of the meter is replaced. The register is the part of the meter that contains the AMR unit that sends the signal with the meter read to the radio receiver in the AMR truck during the monthly drive-by meter reading step. The installation of the AMR meters will be done with a combination of contract and City forces to achieve economies of scale. City staff expects to complete the AMR conversion project by August 2015. California Public Contract Code Section 3400(b)(2) allows the City to specify a product purchase by brand name if that brand is required in order to match other products in use on a particular public improvement either completed or in the process of completion. The City has standardized its use of the Badger meters for the City water meter replacement program by Resolutions 88-394 and 89-318 N.C.S., and Badger meters are in use as part of the City's water system. This standardization allows the City to maintain a smaller parts inventory, reduce training needs, improve consistency of operations and maintenance and permits equipment interchangeability. In addition, Petaluma Municipal Code Section 4.04.050 provides an exemption from the City's competitive bidding requirements when the commodity can be obtained from only one vendor. Badger is the manufacturer and supplier of this meter, and there are no other regional suppliers of these products. FINANCIAL IMPACTS The cost of the meters and registers is $267,295.28. Water Operating Funds are allocated for this purchase in the Water Utility CIP, Project C67500903, including a project budget amount of $800,000. ATTACHMENTS 1. Resolution 2. Sole Source Justification Packet Attachment 1 RESOLUTION APPROVING THE PURCHASE OF BADGER WATER METERS AND REGISTERS FOR THE AUTOMATIC METER READ REPLACEMENT PROJECT WHEREAS, Resolution No.2008-085 NCS accepted the General Plan 3025 as the governing policy document; and WHEREAS, the City of Petaluma intends to convert existing manual read meters to automatic read meters as identified by General Plan Goal 8-G-2 and Program 8-P-8.13; and WHEREAS, the funds for the conversion are allocated in the FY14/15 CIP budget, project C67500903;and WHEREAS, through Resolutions 88-394 and 89-318 N.C.S., the City standardized the equipment used as water meters tlnuoughout the City equipment to maximize flexibility, convenience, and cost in training, spare parts, operation and maintenance; and WHEREAS, Badger Meter Inc. is the sole supplier in the region of the City's standard water meter equipment; and WHEREAS, the City proposes to purchase the City's standard water meter equipment from, Badger Meter Inc.; and. WHEREAS, the City has met the requirements to sole source the equipment pursuant to the Public Contract Code section 3400(c) and City Municipal Code section 4.04.050,standardizing on this type of meter. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby authorizes the purchase of Badger Water Meters and Registers for the Automatic Meter Read Replacement Project from Badger Meter Inc., in the amount of $267,295.28. Attachment 2 CITY OF PETALUMA, CALIFORNIA PROCUREMENT SOLE SOURCE JUSTIFICATION DATE: 12/4/2014 DEPARTMENT Public Works and Utilities CONTACT Brian Heloltand TELEPHONE: 916-521-0390 VENDOR: Badger Meter _ TELEPHONE: 800-876-3837 JUSTIFICATION (Initial all entries that apply) L Amount of purchase does not exceed current dollar amount required for formal bidding. X 2 Vendor is the original equipment manufacturer, there are no regional distributors. X 3 The parts/equipment are not interchangeable with similar parts of another manufacturer. X 4 This is the only equipment that meets the specialized needs of the department and performs the intended function. Detailed justification is available which establishes beyond doubt that the Vendor in the only source practicably available to provide the items or service required. I recommend that competitive procurement be waived, and that the equipment and/or supplies on the a ached Procurement Request be purchased as a Sole �Soujrcee. Signed: % Date: f Requestor Approvals: !y Purchasing Offices Date: ' r ,