SR 10-09-2018 3O
City Council
Report
City Council Meeting: October 9, 2018
Agenda Item: 3.O
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Water Resources
Subject: Award Bid for the Purchase of Single-Jet and Positive-Displacement Water
Meters
Recommended Action
Staff recommends that the City Council:
1. Award Bid #4335 to Badger Meter, Inc., a Wisconsin-based company, for the
purchase of positive-displacement water meters, and Metron-Farnier, a
Colorado-based company, for the purchase of single-jet water meters, for the
Public Works Department;
2. Authorize the Purchasing Services Manager to issue a purchase order with
Badger Meter for the purchase of positive-displacement water meters in the
amount not to exceed $200,000 for one year, with four additional one-year
renewal options to extend on the same terms and conditions for a total amount
not to exceed $1,000,000 over a five-year period, with future year funding
contingent on Council budget approval; and
3. Authorize the Purchasing Services Manager to issue a purchase order with
Metron-Farnier for the purchase of single-jet water meters in the amount not to
exceed $120,000 for one year, with four additional one -year renewal options with
annual increases of 5% in years 3 to 5, for a total amount not to exceed
$637,215 over a five-year period, with future year funding contingent on Council
budget approval.
Summary
The Water Resources Division of the Public Works Department is charged with
providing safe and reliable water and wastewater services to all residential, commercial,
and institutional accounts within the City of Santa Monica. Each account is connected to
the City water supply through a water meter that registers usage for bimonthly billing.
New meters are installed for new construction projects and to replace aging meters on
an approximate 20-year cycle to ensure the accuracy of meter reads. Different meter
types are required based on the size of the water pipe fitting used. Staff recommends
issuing purchase orders with Badger Meter in an amount not to exceed $1,000,000 over
a five-year period for smaller positive-displacement meters (¾” to 2” service lines); and
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Metron-Farnier in an amount not to exceed $637,215 over a five-year period for larger
single-jet meters (2” to 10” service lines).
Discussion
The City owns and maintains over 18,000 water meters throughout its water distribution
system. Water Resources Technicians read the meters on a 60-day cycle. The
technicians upload the meter readings to an internal database so that the Billing and
Collections Office in the Revenue Division may establish the quantity of water used.
These calculations determine the customer’s water bill, making meter accuracy critical.
Water meters contain mechanical components which deteriorate over time, resulting in
a loss of accuracy as water passes through the meter without being registered.
Replacing meters on a timely basis can reduce water losses or “non-revenue” water
from the City’s distribution system. New meters are also requested and installed for new
construction or tenant improvements through the Public Works permit counter. The City
recovers the cost for the new meter purchases and installations through permit fees.
Water meters are sized to match the service line that supplies water to a property.
Positive-displacement meters are sized from ¾” to 2” and comprise most of the meters
in use in the city. These smaller meters are typically installed for domestic use by
single-family homes, landscape irrigation, some multi-family homes, some apartment
buildings, and fire sprinkler lines in smaller buildings. Single-jet meters are sized from 2”
to 10”. These larger meters are typically installed for commercial use , industrial use, and
for fire sprinkler lines in larger buildings.
The City maintains an inventory of new water meters for use in new installations and the
replacement of existing meters that are broken or have been in service for over 20
years. Staff recommends purchasing the smaller positive-displacement meters and the
larger single-jet meters, both of which are used by the City, to accommodate necessary
installations and replacements.
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Both Badger and Metron-Farnier are well established manufacturers of water meters
throughout the industry. The City has used Badger meters for 20 years and Metron-
Farnier meters for 10 years.
Table 1 – Active City Water Meter Inventory
Size/Type of Water Meter Count
.75” PD Meters 6,721
1” PD Meters 5,546
1 ½” PD Meters 4,193
2” PD & Single-Jet Meters 1,071
3” Single-Jet Meters 231
4” Single-Jet Meters 333
6” Single-Jet Meters 108
8” Single-Jet Meters 19
10” Single-Jet Meters 1
Staff anticipates purchasing approximately 1,200 smaller meters and 54 larger meters
per year. This amount includes replacements for existing meters that are broken or
have been in service for over 20 years, as well as new construction installation and size
upgrades.
The tables below list breakdowns of the amount staff recommends awarding to Badger
Meter and to Metron-Farnier.
Contract Term – Badger Meter Requested %
Increase
Annual
Amount
Years: 1, 2, 3, 4 and 5 0 $200,000
Total Amount Not To Exceed $1,000,000
Contract Term – Metron-Farnier Requested %
Increase
Amount
Year 1 0 $120,000
Year 2 0 $120,000
Year 3 5 $126,000
Year 4 5 $132,300
Year 5 5 $138,915
Total Amount Not To Exceed $637,215
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Vendor Selection
Bid Data
Bid Posting Date Bid Posted On
Bid Advertised In
(City Charter &
Municipal Code)
# of Vendors
Downloaded
# of
Submittals
Received
Date Publicly
Opened
03/08/2018 City's Online
Bidding Site
Santa Monica
Daily Press 24 2 03/26/2018
Submittals Received Vendor Selection Recommendation
Badger
Meter $257,515
Municipal
Code SMMC 2.24.072
Metron-
Farnier $2,161,501
Evaluation
Criteria
Price, previous experience, ability to deliver,
quality of product, and compliance with City
specifications.
Best
Bidders Badger Meter, Inc and Metron-Farnier
Best Bidder Justification
Badger Meter bid only to supply positive-displacement meters. The bid total of $257,515
was for a quantity of 1,600 assorted smaller meters. Badger Meter is a well-established
manufacturer and supplier of water meters throughout the industry, and their meters have
been used in the City’s water distribution system for more than 30 years. Over this time
period, Badger meters have proven to be reliable and staff has gained a familiarity in
maintaining the various models/sizes installed throughout Santa Monica. Badger meters
are also economical when compared to other brands, with the majority costing between
$92.50 (5/8” x ¾” size) and $365.95 (2” size). Meters sized between 5 /8”x3/4” to 2” make
up 96% of the City’s inventory. By comparison, a recent competitively bid purchase of
100 Neptune 5/8”x3/4” meters in June 2016 cost $144.60 each, approximately 56%
higher in price.
Metron-Farnier bid only to supply single-jet meters. The bid total of $2,161,501 was for a
quantity of 800 assorted larger meters. Metron-Farnier is a well-established manufacturer
and supplier of water meters throughout the industry, and their meters have been utilized
in the City’s water distribution system for almost 10 years. Over this time period, Metron-
Farnier meters have shown 100% accuracy even on low water flows of a half-gallon per
minute. These very low flows typically account for 10% of all flows through larger water
meters. Bid pricing has not increased since 2016 and mirrors prices in effect on the
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Financial Impacts and Budget Actions
Staff seeks authority to award a purchase order with Badger Meter for the purchase of
positive-displacement water meters.
Purchase Order Request
Request
Amount
FY 2018-19 Budget
Public Works Account #
Total Purchase Order
Amount
$200,000 50500001.525080 $1,000,000
Future year funding is contingent of Council budget approval.
Staff seeks authority to award a purchase order with Metron -Farnier for the purchase of
single-jet water meters.
Purchase Order Request
Request
Amount
FY 2018-19 Budget
Public Works Account #
Total Purchase Order
Amount
$120,000 50500001.525080 $637,215
Future year funding is contingent on Council budget approval.
Prepared By: Deborah McCloskey, Administrative Analyst
Approved
Forwarded to Council
current purchase order. Orders placed with Metron-Farnier are reliably delivered in under
two weeks, so the City does not have to stockpile large numbers of meters.
City staff reviewed IBISWorld Procurement Report 29909154, a research report that
assists buyers with data and analysis of water meter pricing. Staff concluded that the
pricings within both bids are fair and competitive.
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Attachments:
A. Badger Meter Oaks Initiative Disclosure Form
B. Metron-Farnier Oaks Initiative Disclosure Form