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HomeMy WebLinkAboutItem 2f: Contract with HD Supply Waterworks for purchase of Data Log Radio Read Water MetersDATE: August 7, 2012 STAFF REPORT Public Works Services Department TO: Mayor and City Council FROM: Tom Tait, Public Works Services Director By: Craig Clark, Utilities Superintendent SUBJECT: AWARD A ONE YEAR CONTRACT TO HD SUPPLY WATERWORKS FOR THE PURCHASE OF DATA LOG RADIO READ WATER METERS FOR THE CITY'S WATER DISTRIBUTION SYSTEM IN THE AMOUNT OF $250,000 Recommendation: Approve SUMMARY As part of the Annual Meter Replacement Program, the City Warehouse maintains a supply of water meters for the Utilities Section. To ensure that data log radio read water meters are purchased at the best price and delivered in a timely manner, a competitive bid was conducted. Based on the results of the bids submitted, it is recommended that the City Council award a purchase order to HD Supply Waterworks for the purchase of data log radio read water meters for the City's water distribution system in the amount of $250,000. DISCUSSION The goal of the Public Works Services Annual Meter Replacement Program is to replace the City's 13,300 manually -read water meters with new meters that are capable of being read via radio frequency. In 2006, Field Maintenance workers began replacing water meters with radio read meters. The Annual Meter Replacement Program is expected to be completed by year 2020 (15 -Year Program). Once the conversion is complete, meter readers will be able to read the entire system in less time and more efficiently. Approximately 48 %, or 6,388 water meters, have been converted over to data log radio read meters. In Fiscal Year 2012 -13, the Public Works Services Department plans to replace approximately 1,000 water meters. The meter sizes that are being changed range from 5/8" to 2 ". Mayor and City Council August 7, 2012 Page 2of3 Large water meters (3" to 8 ") are not a part of this program. It is usually more economical to repair or rebuild large meters instead of replacing them and these meters are converted to radio read at the time that they are rehabilitated. In addition to the new meter's capability of capturing the precise measurements and readings of a customer's water usage, it also includes leak detection and data logging functions that enable staff to alert residents for possible leaks on their property, and to assist them with historical water usage. Water meter register accuracy is important in calculating water demands, forecasting customer demands and aids in conservation efforts. Once the data log meters are installed throughout the system, the meter reading staff can be used for other water related maintenance assignments. However, as the system continues to be converted over to radio read, meter reading staff are being used for other tasks such as completing meter change outs. The Public Works Services Department's Warehouse is responsible for distributing all water meters to the Utilities Section for meter replacement and new installations. The Warehouse maintains an on -hand inventory to prevent an interruption of this service and orders replacement meters to keep the inventory at acceptable levels. Typical meters in the City's system are replaced once every fifteen (15) years to ensure accurate water measurements. The American Water Works Association (AWWA) standard for water meters recommends this replacement schedule to ensure water meter accuracy. A notice inviting bids was published in the City's adjudicated paper and bid packages were distributed to area vendors. The City Clerk publicly opened the following two sealed bids on July 24, 2012: BIDDER LOCATION BID AMOUNT HD Supply Waterworks Valencia, CA $344,203.05 The B.E.S.T. Meter Co., Inc. Covina, CA $427,622.61 The bid documents were reviewed for content and the background and competency of the lowest responsible bidder was verified. It was concluded that HD Supply Waterworks could provide the type and quantity of water meters that was specified in the bid documents. HD Supply Waterworks has supplied the City with water meters in the past and has always provided excellent service. The bid specifications provided a list of meter sizes and anticipated quantities to be purchased for Fiscal Year 2012 -13. However, the bid documents clearly state that the actual quantities ordered will be based on the City's available budget and actual need. The Public Contract Code Section 20103.8 (a) and (c) does permit for the reduction in quantities from the scope of work when awarding a contract, so long as the contract amount is less than or equal to the approved funding by the City Council. In June 2012, the Arcadia City Council approved the 2012 - 2014 Capital Improvement Program that Mayor and City Council August 7, 2012 Page 3 of 3 included $250,000 for the Annual Water Meter Replacement Program. Based on the City's budget and the successful bidder's unit price, approximately 802 meters can be purchased. Therefore, it is recommended that the City Council award a purchase order contract to HD Supply Waterworks for the purchase of data log radio read water meters for the City's water distribution system in the amount of $250,000. FISCAL IMPACT $250,000 has been budgeted in the Capital Improvement Plan in Fiscal Year 2012 -13 for the Annual Meter Replacement Program. RECOMMENDATION 1. Award a one (1) year purchase order contract to HD Supply Waterworks for the purchase of data log radio read water meters for the City's water distribution system in the amount of $250,000. 2. Waive any informality in the bid or bidding process. APPROVED: Dominic Lazzar o City Manager