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SR-10-13-2015-3M City Council Report City Council Regular Meeting: October 13, 2015 Agenda Item: 3.M 1 of 3 To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Water Resources Subject: Award Purchase Order for Single Jet Water Meters Recommended Action Staff recommends that the City Council: 1. Award Bid #4212 to Metron-Farnier, a Colorado based company, for the purchase and delivery of single jet water meters. 2. Authorize the Purchasing Services Manager to issue a purchase order with Metron-Farnier in an amount not to exceed $70,500 for one year, with two additional one-year renewal options to extend on the same price, terms and conditions for a total not to exceed $211,500 over a three-year period, with future year funding contingent on Council budget approval. Executive Summary The City owns and maintains approximately 1 8,000 water meters of various sizes from 5/8 x 3/4 inch to 8 inches. Approximately 3% or 540 of the City’s meters are considered large meters, 4” and above. Accurate metering of large domestic and commercial meters is achieved best with single jet meters. In August 2015, the City solicited bids for the purchase of single jet water meters. Metron-Farnier, the sole bidder, is recommended to provide single jet water meters in an amount not to exceed $70,500 for one year, for a total amount not to exceed $211,500 over a three-year period. Discussion Water meters installed throughout the City are essential to determining water consumption and generating revenue from water sales and wastewater collection. Accurate measurement of water use provides the principal revenue funds for the operating and maintenance costs of the water and wastewater utilities as self - supporting City enterprises. 2 of 3 The City owns and maintains approximately 1 8,000 meters throughout its water distribution system. Single jet meters currently comprise approximately 3% of the total or approximately 550 of the active meters in the distribution system. A single jet meter uses a small stream of water directed against a turbine within the meter body to measure the water volume flowing through it. The purchase of various large size replacement meters, miscellaneous parts, and meter registers is necessary to rebuild/refurbish existing Metron-Farnier meters. Vendor Selection On August 25, 2015, the City published a Notice Inviting Bids for the purchase and delivery of single jet water meters as required by the Water Resources Division in accordance with City specifications. The bid was posted on the City’s on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. A total of 602 vendors were notified, and 12 vendors downloaded the bid. One bid was received and publicly opened on August 25, 2015 per Attachment A. Procurement conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid. Of the 12 vendors that downloaded the bid, Metron-Farnier was the only manufacturer of single jet water meters. The other vendors included distributors of materials and tools, safety supplies, and bidding services and were not providers of the specified equipment. The bid was evaluated based on the criteria in SMMC 2.24.072, including price, ability to deliver, quality of product, and compliance with City specifications. Based on these criteria, Metron-Farnier, the only bidder, is recommended as the best bidder to provide single jet meters for the Water Resources Division. Financial Impacts and Budget Actions The purchase order to be awarded to Metron-Farnier is for an amount not to exceed $211,500 over a three-year period. Funds in the amount of $70,500 are available in the FY 2015-16 budget in the Public Works Department. The purchase order will be charged to account 25671.544010. Future year funding is contingent on Council budget approval. 3 of 3 Prepared By: Thomas Poon, Senior Administrative Analyst Approved Forwarded to Council Attachments: A. Bid Results #4212 Single Jet Meters BID RESULTS:# 4212 Single Jet Meters BID CLOSE DATE: TITLE:Furnish & Deliver Single Jet Meters Attachment A Complete Complete Period 1 (FY 16/17): Period 2 (FY 17/18): Same Price, Terms, &  Conditions Same Price, Terms, &  Conditions City Documents Addendum #1 Arizona Disclosure Oaks Initiative Living Wage Non Collusion: Complete N/A Complete 2" Meter 3" Meter Perecent Discount for Related  Items:None Payment Terms:NET 30 Delivery Lead Time:30 Days ARO Additional Fees & Charges:$0.75/lbs via Fed Ex $250 Freight 695.00$        1,595.00$     2,695.00$     3,995.00$     5,675.00$     08/25/2015 Purchasing Section 1717 Fourth Street, Suite 250 Santa Monica, CA 90401 Telephone: (310)458‐8281 Fax: (310)393‐6142 Pricing 1 1/2" Meter Metron‐Farnier Boulder, CO Residential & Commercial 515.00$        Renewal Options 4" Meter 6" Meter Industrial/Fire Service 6" Meter 8" Meter 5,995.00$