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SR 05-25-2021 3E City Council Report City Council Meeting: May 25, 2021 Agenda Item: 3.E 1 of 3 To: Mayor and City Council From: Rick Valte, Acting Public Works Director, Public Works, Water Resources Subject: Award Bid #4413 to Ferguson Waterworks LLC for DFW Water Meter Boxes Recommended Action Staff recommends that the City Council: 1. Award Bid #4413 to Ferguson Waterworks LLC for the purchase of DFW water meter boxes for the Public Works Department; 2. Authorize the Procurement Manager to issue a purchase order with Ferguson Waterworks LLC for the purchase of DFW water meter boxes in an amount not to exceed $50,000 for one year, with four-additional one-year renewal options to extend with a 5% increase per year, for a total not to exceed amount of $275,000, with future year funding contingent on Council budget approval. Summary The Water Resources Division purchases, in-bulk, meter boxes which house water meters for both residential and commercial customers. DFW is a proprietary brand of meter box utilized by Water Resources and is distributed through select suppliers. DFW meter boxes are constructed of a heavy-duty polymer meant to withstand environmental effects and are made in various sizes to fit a variety of meters. In February 2021, the City solicited bids for the supply and delivery of DFW meter boxes. Staff seeks to award a purchase order to Ferguson Waterworks, the sole bidder, for $50,000 for the first year, with four one-year options to renew not exceeding a 5% increase each year, for a total not to exceed amount of $275,000. Discussion The Water Resources Division conducts installation and replacement of meter boxes as needed. Water meter boxes are routinely inspected as Water Resources Technicians visit properties to read gauges or conduct repairs, and damaged boxes are flagged for replacement. Meter boxes are also replaced when there is an increase in the size of meter required to provide water service to a location, such as with new construction or 3.E Packet Pg. 113 2 of 3 significant renovation. DFW brand meter boxes are the preferred box used by the City of Santa Monica as they are reliably constructed of heavy-duty polymer that can withstand environmental elements better than concrete boxes, which exhibit cracks and erosion overtime. Polymer boxes also weigh much less than traditional concrete meter boxes and are therefore easier for City staff to lift and install. Lastly, unlike concrete meter boxes, polymer boxes allow for advanced meter reading, or automated meter reading (AMR). Meter boxes are typically purchased in bulk and stored at the City Yards for use as needed. In February 2021, the City’s Water Resources Division issued Request for Bids #4413 and Ferguson Waterworks provided the sole response. Ferguson Waterworks is an authorized distributor of DFW meter boxes and has supplied these products for the City in the past with excellent service and delivery turnaround time. Based on average historical volume of purchases of each type of meter box and lid and the price sheet Ferguson Waterworks LLC submitted, the total annual for the first year was $49,900. Water Resources seeks to establish a purchase order agreement in FY 2021-22 for $50,000, with four one-year renewal options not exceeding a 5% increase each year, for a total amount not-to-exceed $275,000. Vendor Selection Best and Only Bidder Ferguson Waterworks LLC Submittals Received Selection Criteria Bidder $49,800 Municipal Code SMMC 2.24.180 Evaluation Criteria (Include all that apply) Price; the ability, capacity and skill of the bidder to perform or provide the materials or services; the capacity of the bidder provide the service promptly, within the time specified, and without delay or interference; the reputation, experience, and efficiency of the bidder; any other factor that will further the intent set forth in Section 608 of the City Charter. The City shall have absolute discretion in determining the applicability and weight of the criteria listed above. The City is not required to select the bid with the lowest price. Bid Data Date Posted Posted On Advertised In (City Charter & SMMC) Vendors Downloaded Date Publicly Opened 02/24/2021 City's Online Santa Monica Daily Press 12 03/17/2021 3.E Packet Pg. 114 3 of 3 Bidding Site Additional Vendor Outreach & Justification to Award Procurement conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid; one vendor stated that they were unable to be competitive with quantity and price, another vendor did not submit a bid as they are a sister company of Ferguson Waterworks. Financial Impact Staff seeks authority to approve funding from the Water Fund to award a purchase order with Ferguson Waterworks LLC to procure DFW water meter boxes. Funds are included in the FY 2021-23 Proposed Biennial Budget. Future year funding is contingent on Council budget approval. Purchase Order Request FY 2021-22 Budget Request Amount Department/CIP Account # Total Purchase Order Amount $50,000 50500001.525080 $275,000 Prepared By: Kori Jones, Administrative Analyst Approved Forwarded to Council Attachments: A. Ferguson Waterworks Oaks Form 3.E Packet Pg. 115 CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: FERGUSON ENTERPRISES, LLC DBA: FERGUSON WATERWORKS Name(s) of trustees, directors, partners, and officers: KEVIN MURPHY, CEO ALEX HUTCHERSON II, COO BILL BRUNDAGE, CFO Name(s) of persons with more than a 10% equity, participation, or revenue interest: N/A Prepared by: AARON SADLER Title: MUNICIPAL SALES Signature: Date: 3/16/2021 Email: AARON.SADLER@FERGUSON.COM Phone: 714-865-5196 FOR CITY USE ONLY: Bid/PO/Contract # Permit # 3.E.a Packet Pg. 116 Attachment: Ferguson Waterworks Oaks Form (4505 : DFW Meter Boxes Bid Award)