HomeMy WebLinkAbout12-Consideration to Authorize the Purchase of Electric Meters and a Handheld Reader from a Sole Source VendorTRUC EE D 11 NE
Public Utility District
CONSENT
To: Board of Directors
From: Robert Mescher
Date: August 21, 2013
Subject: Consideration to Authorize the Purchase of Electric Meters and a
Handheld Reader from a Sole Source Vendor
1. WHY THIS MATTER IS BEFORE THE BOARD
A finding by the Board is necessary to continue the sole source purchase of electric
meters. This sole source purchase is necessary to maintain the compatibility and
functionality of the District's billing system.
Board approval is required for expenditures in excess of $15,000.
2. HISTORY
The District's electric meters are used to record power consumption of its customers.
A mobile data collector and a handheld device are used to collect the data from the
meters for customer billing.
3. NEW INFORMATION
The Electric Department has an ongoing need to purchase electric meters to serve
new development and to replace existing meters that are not covered under warranty.
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
electric billing system, it is necessary for the District to continue purchasing meters
and data collectors manufactured by iTron. Meters manufactured by other companies
do not offer the same functionality and quality.
General Pacific is the current factory -authorized distributor of iTron meters for our
area.
The Electric Department has been making such purchases of less than $15,000
annually from the current factory authorized distributor. However, there has never
been a formal declaration by the Board that the sole sourcing is necessary. A draft
resolution addressing the sole source purchase of electric meters is included as
Attachment 1.
General Pacific has submitted a special offer of $24,750 for 360 meters and a
handheld reader, and a $4,990 credit for returning an old handheld reader. The
effective net price is $19,760. The total value of the items, if purchased separately,
would be almost $27,000.
The District plans to use these meters within the next 24 months. A new handheld is
needed since iTron notified the District that the older current handheld readers will not
be supported after next year.
4. FISCAL IMPACT
Sufficient funds exist in the Electric Department's approved FY 2013 budget for the
purchase of electric meters and the handheld reader.
The District will potentially save $7,000 by taking advantage of the promotional offer.
5. RECOMMENDATION
a) Adopt a Resolution 2013-19 finding that the sole source purchase of iTron electric
meters from General Pacific is necessary to maintain compatibility with the District's
electric billing system.
b) Authorize the purchase of 360 electric meters and handheld reader in an amount not to
exceed $24,750 plus tax, less a credit of $4,990 an for the return of the old handheld
reader.
Robert Mescher
Administrative Services Manager
Michael D. Holley
General Manager