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HomeMy WebLinkAbout10 Purchase Water Meters and UnitsAgenda Item # 10 CONSENT To: Board of Directors From: Neil Kaufman Date: July 15, 2015 Subject: Revised Authorization Limit for the Purchase of Water Meters and Meter Transmitter Units 1. WHY THIS MATTER IS BEFORE THE BOARD A finding by the Board is necessary to continue the sole source purchase of water meter meters and meter transmitter units (MTUs). These sole source purchases are necessary to maintain the compatibility and functionality of the District's AMR system. 2. HISTORY In September 2008, The District awarded a contract to Measurement Control Systems (MCS) for the provision of an Automated Meter Reading (AMR) system. That system utilizes water meters manufactured by the Neptune Technology Group in conjunction with meter transmitter units (radios) and software by Aclara. At that time, MCS was the authorized factory distributor for Northern California for both manufacturersI Since then, MCS has exited the water meter market and no longer has a commercial relationship with either Neptune or Aclara. In August 2013, the Board adopted a resolution finding that the continued sole source purchase of water meters from Neptune and MTUs from Aclara is necessary to maintain compatibility with the District's AMR system. The Board also approved expenditures of up to $50,000 per fiscal year through the end of FY 15 for the purchase of such hardware. 3. NEW INFORMATION The Water Department currently has two outstanding orders for meters and MTUs. Once these two orders have been delivered, the total expenditures for FY 15 will be about $45,000, The current lead time for the delivery of MTUs is six months. Therefore, the Water Department would like to order meters and MTUs needed for the 2016 calendar year now. The Water Department is requesting that the authorization for the purchase of meters and MTUs as necessary be revised to $1001000 per year. It is expected that orders placed now will not be delivered until 2016 and the budget for FY 16 will include this higher amount. 4. FISCAL IMPACT Sufficient funds exist in the Water Department's approved FY 15 budget and the planned FY 16 & FY 17 budgets for the purchase of water meters and MTUs. 5. RECOMMENDATION Authorize the purchase of meters and MTUs as necessary through the end of 2017 in an amount not to exceed $100,000 per year. Michael D. Holley General Manager / Water Utility Manager