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CC 2020-07-14_08g Authorization to Purchase Water Meters MEMORANDUM TO: CITY COUNCIL FROM: BILL ROBESON, ACTING CITY MANAGER/DIRECTOR OF PUBLIC WORKS BY: SHANE TAYLOR, UTILITIES MANAGER SUBJECT: AUTHORIZATION TO PURCHASE WATER METERS DATE: JULY 14, 2020 SUMMARY OF ACTION: Annual bulk purchase of replacement water meters. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The FY 2020/21 Budget includes funding of $48,000 in the Water Fund for new water meters and water meter replacements. RECOMMENDATION: It is recommended the City Council approve the purchase of water meters from Aqua Metric in the amount of $48,000 during FY 2020/21. BACKGROUND: The City’s water distribution system currently has 6,554 metered connections. The Utilities Division budgets annually to purchase water meters for new connections and for replacement of old meters. The meter of choice for the last 45 years has been Sensus. ANALYSIS OF ISSUES: Per the City’s Purchasing Policies and Procedures Manual, this purchase order is allowed as a sole source procurement because Aqua Metric is the only distributor of Sensus meters (Attachment 2). The authorization of one blanket purchase order in the amount of $48,000 provides an efficient method of purchasing the meters and replacement parts. This will also allow the City to take advantage of a freight charge reduction and reduced staff time to process multiple purchase orders throughout the fiscal year. Item 8.g. - Page 1 CITY COUNCIL AUTHORIZATION TO PURCHASE WATER METERS JULY 14, 2020 PAGE 2 ADVANTAGES: A single blanket purchase order will provide the most efficient method of purchasing water meter/parts in Fiscal Year 2020/21. DISADVANTAGES: No disadvantages noted at this time. ALTERNATIVES: The following alternatives are provided for Council consideration: 1. Approve a purchase order in the amount of $48,000; 2. Do not approve the purchase order; 3. Modify as appropriate and approve staff’s recommendation; or 4. Provide direction to staff. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Price Quote from Aqua-Metric 2. Letter from Aqua-Metric identifying the company as sole source distributor Item 8.g. - Page 2 ATTACHMENT 1Item 8.g. - Page 3Aqua 6\ Metric Shane Taylor Water Department City of Arroyo Grande Arroyo Grande, CA 93420 Ref: 2020 water meter pricing: Mr. Taylor, January 1, 2020 Aqua-Metric Sales Company is pleased to offer you the following prices on Sensus AMR/AMI water meter products. ** TR/PL housings-$20.72 Needs to be ordered on a separate line item, housings are not included with meters anymore. TR/PL Conversion Register kits w/ housing 5/8" X ¾" Accustream l00cfTRPL 1" Omni 1-1/2" 2" 2" (short 10") 3" 4" 6" $573.70 $797.51 $702.15 $93.71 $163.14 $228.24 $163.14 T2 $976.12 $1,111.95 $1,520.85 $1,756.65 $1,386.00 $2,705.87 $4,863.19 $2,224.95 $3,871.00 $6,672.75 Terms are net 30 days. Free shipping with orders >or= $10,000. Quote valid thru 12/31/2020. Please add your tax rate to the totals of your orders Hector Gutierrez Aqua-Metric Sales Company Account manager 714-588-4229 mobile Hector.gutierrez@agua-metric.com ATTACHMENT 2Item 8.g. - Page 4WilliamJ Boyd District Manager Western Region June 29, 2020 4050 Fist Rock Drive Riverside, Ca 92505 To Whom It May Concern: T: 909 553-1399 F: 951 784-5317 bill .boyd@sensus.com www.sensus.com --sensus Please be advised that Aqua-Metric Sales Company of Riverside, California, is the sole factory authorized distributor representative for all Sensus USA products, parts, and services, including but not limited to, the FlexNet AMI system, iPerl, Ally, SRII, accuStream, and Omni meters, in the Southern California and Clark County Nevada geographic areas. Customers purchasing Sensus products from Aqua-Metric Sales enjoy full factory warranty coverage as well as the ability to draw from local inventory and obtain local services that the factory cannot provide. In this way, we hope to provide our customers with the best of both worlds: factory support and technical knowledge coupled with local sourcing and timely service. We at Sensus USA appreciate your continued business. Should you have any questions regarding this or any other matter, please feel free to contact me at any time. Sincerely, William J. Boyd District Manager Sensus USA (909) 553-1399