HomeMy WebLinkAbout11-Consideration to Authorize Sole-Source Purchase of Water Meters and Meter Transmitter Units=LOW
r TRUC EE DONNE
Public Utility District
CONSENT
To:
Board of Directors
From:
Neil Kaufman
Date:
August 21, 2013
Subject: Consideration to Authorize Sole -Source 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. 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
manufacturers. Since then, MCS has exited the water meter market and no longer
has a commercial relationship with either Neptune or Aclara.
3. NEW INFORMATION
The Water Department has an ongoing need to purchase water meters and MTUs to
serve new development and to replace existing units that are not covered under
warranty.
Normally, the Public Contract Code would require that the District competitively bid
these purchases. However, the Code (Section 3400) allows for the sole source
purchase of equipment "In order to match other products in use on a particular public
improvement." The code section requires that the awarding authority (the District)
make a finding that such sole source purchases are necessary.
In order to maintain the communication and customer service capabilities of the AMR
system, it is necessary for the District to continue purchase meters and MTUs from the
same manufacturers. MTUs manufactured by other companies are not compatible with
the District's system and water meters from other companies do not offer the same
functionality.
The Water Department has been making such purchases from the current factory
authorized distributor. However, there has never been a formal declaration by the
Board that the sole sourcing is necessary. Two draft resolutions covering this issue are
included as Attachment 1 and Attachment 2. One addresses the sole source purchase
of water meters. The second addresses the sole source purchase of MTUs.
4. FISCAL IMPACT
Sufficient funds exist in the Water Department's approved FY 2013 budget and the
planned FY14 & FY15 budgets for the purchase of water meters and MTUs.
5. RECOMMENDATION
a) Adopt a Resolution 2013-17 finding that the sole source purchase of water meters
from Neptune Technology Group is necessary to maintain compatibility with the
District's AMR system.
b) Adopt a Resolution 2013-18 finding that the sole source purchase of meter transmitter
units from Aclara is necessary to maintain compatibility with the District's AMR system.
c) Authorize the purchase of meters and meter transmitter units as necessary through the
end of 2015 in an amount not to exceed $50,000 per year.
Michael D. Holley
General Manager / Water Utility Manager