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CC 2017-07-25_09h Authorize Purchase of Water Meters MEMORANDUM TO: CITY COUNCIL FROM: CHRISTOPHER MAGDOSKU, DIRECTOR OF PUBLIC WORKS BY: SHANE TAYLOR, UTILITIES MANAGER SUBJECT: AUTHORIZATION TO PURCHASE WATER METERS DATE: JULY 25, 2017 RECOMMENDATION: It is recommended the City Council approve the purchase of water meters from Aqua Metric in the amount of $41,000 during FY 2017/18. SUMMARY OF ACTION: Annual bulk purchase of replacement water meters. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The FY 2017-18 Budget includes funding of $41,000 in the Water Fund for water meter replacements. BACKGROUND: The City’s water distribution system currently has 6,433 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 40 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 $41,000 provides an efficient method of purchasing the meters and replacement parts. This will also allow the City to take advantage of freight charge reduction and reduced staff time to process multiple purchase orders throughout the fiscal year. ADVANTAGES: A single blanket purchase order will provide the most efficient method of purchasing water meter/parts in Fiscal Year 2017-18. Item 9.h. - Page 1 CITY COUNCIL AUTHORIZATION TO PURCHASE WATER METERS JULY 25, 2017 PAGE 2 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 $41,000; 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 9.h. - Page 2 ATTACHMENT 1 Aq a 4050 Flat Rock Drive Riverside, California 92505 Shane Taylor Water Department City of Arroyo Grande Arroyo Grande, CA 93420 All meters are priced with TR/PL housing. TR/PL Conversion Register w/ housing Accustream 5/8" x %" %" 1" Omni R2 1-1/2" $489.38 2" $683.38 3" 4 " 6" $85.00 $152.38 $158.38 $217 .38 T2 $885 .38 $1,048.38 $1,283.38 $2,454.31 $4,411.06 2017 Pricing C2 $1,379.48 $1 ,601.08 $2025.53 $3,511.12 $6,857.83 Terms are net 30 days. Free shipping with orders> or= $7,500 . Quote valid thru 12/31/17. Item 9.h. - Page 3 ATT ACH MEN T 2 --William J Boyd District Manager W estern Region 4050 Flat Rock Drive Riverside , Ca 92505 T: 909 553-1399 F: 951 784-5317 bill .boyd@sensus.co m www .sensus .com sensus The Measure of the Future M ay 15, 2012 To Whom It May Concern: Please be advised that Aqua-Metric Sales Company of Riverside, California, is the sole factory auth orized representative for all Sensus USA products and services, including the n ew iPerl and Omni meter systems, in the Southern California and Clark County Nevada geographic are a s . Customers purchasing Sensus products froJ11 Aqua-Metric Sales enjoy full factory w arranty co verage as well as the ability to draw from local inventory and obtain local service that the factory cannot provide. In this way, we hope to provide our customers with the best of both worlds: facto ry support and technical knowledge coupled with local sourcing and timely service. W e 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. Sincerel y, William J. Boyd Distric t M anager Sensus USA (90 9) 553 -1399 Item 9.h. - Page 4