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CC 2018-07-24_09m Authorization to Purchase Water MetersMEMORANDUM TO: CITY COUNCIL FROM: BILL ROBESON, DIRECTOR OF PUBLIC WORKS BY: SHANE TAYLOR, UTILITIES MANAGER SUBJECT: AUTHORIZATION TO PURCHASE WATER METERS DATE: JULY 24, 2018 SUMMARY OF ACTION: Annual bulk purchase of replacement water meters. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The FY 2018-19 Budget includes funding of $41,000 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 $41,000 during FY 2018/19. 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 2018-19. Item 9.m. - Page 1 CITY COUNCIL AUTHORIZATION TO PURCHASE WATER METERS JULY 24, 2018 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.m. - Page 2 ATTACHMENT 1 Item 9.m. - Page 3 Shane Taylor City of Arroyo Gr ande TR/PL Conversion Kit $88.40 TRPL housings (included with convers ion kits) Accustream 5/8" X ¾" ¾" 1" Omn i 1-1/2" 2" 3" 4" 6" $148.72 $154.96 $216.32 R2 $499.20 $700.96 T2 $911.04 $1,080.56 $1,324.96 2018 Pricin g C2 $1,640.08 $2,074.80 $3,608 .80 $6,232 .72 Terms are net 30 days . Free Shipping w ith o rd ers greater than$7,500.00. Quote valid unti l 12/31/2018 . Please add you r tax rate to totals of your orde r s. Hector Gutierrez Account Mana ger 951-255 -5736 m obile Item 9.m. - Page 4 A TTACHMiNT 2 -- William J Boyd District M anager W estern Region 4050 Fla t Rock Drive Riverside , Ca 92505 T: 909 553-1399 F : 951 784-5317 sensus May 15, 2012 To Whom It May Concern: bill .boyd@sensus .co m www .sensus .com The Measure of the Futu Please b e advised that Aqua-Metric Sales Company of Riverside, California, is the sole factory authorized representative for all Sensus USA products and services, including the new iPerl and Omni meter systems, 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 service 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. 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. Sincerely, William J. Boyd District M anager Sensus USA (909) 553-1399 Item 9.h . -Page 4