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HomeMy WebLinkAbout08. 18-92 FEBRUARY 27, 2018 18-92 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE PURCHASE OF 2018 WATER METERS AND TRANSMITTERS TO CORE & MAIN FOR WATER UTILITY DIVISION ($543,990.00) INITIATED BY: PURCHASING DEPARTMENT WHEREAS, the Water Utility Division has standardized upon a Sensus water meter reading system and it is necessary to order meters and associated transmitters to replace meters that fail, are sold or required updating, and WHEREAS, HD Supply Waterworks has been bought out by Core & Main and is the supplier for the standardized Sensus water meters and transmitters for this area; and WHEREAS, section 12-11 of the Oshkosh Municipal Code allows for the purchase of materials or equipment without following formal bidding or quotations processes when standardization is required and when there is only one source of supply of such materials or equipment. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized and directed to purchase water meters and transmitters from: Core & Main 15655 W. Rodgers Drive New Berlin, WI 53151 Total: $543,990.00 BE IT FURTHER RESOLVED that the proper City officials are hereby authorized and directed to enter into an appropriate agreement for the purpose of same. Money for this purpose is hereby appropriated from: Acct. No. 541-1810-1746-00000 Water Utility—Meters TO: Honorable Mayor and Members of the Common Council FROM: Jon G. Urben, General Services Manager DATE: February 16, 2018 RE: Approve Purchase of 2018 Water Meters and Transmitters to Core & Main for Water Utility Division ($543,990.00) BACKGROUND On September 13, 2006 the Common Council approved waiving bids for a new Sensus water meter reading system utilizing wireless technology. This approval included the annual purchase of Sensus water meters/transmitters to be installed system -wide. All active areas in the system are now complete. This 2018 order marks the start of a new replacement cycle and costs should be in this range for the next 10 years. Each year the Water Utility Division and Purchasing review prices for the upcoming year's water meter/transmitter order and submit a recommendation for purchase. ANALYSIS The former provider for these water meters and transmitters (HD Supply Waterworks) has been bought out by Core & Main. Attached are Core & Main's 2018 cost notice and the Water Utility Division's anticipated 2018 meter and transmitter equipment needs. FISCAL IMPACT The total fiscal impact of the 2018 meter and transmitter purchases will be $543,990.00 per the attached order summary. The 2018 order is higher due to the start of a new 10 year replacement cycle. The equipment will be purchased from the Water Utility -Meter Inventory account: 541-1810-1746-00000. The annual order cost varies each year depending upon equipment inventory and the installation schedule. As a matter of comparison the 2011 order cost was $347,486.50, the 2012 order cost was $550,415, the 2013 order cost was $729,845, the 2014 order cost was $741,210, the 2015 order cost was $157,531, the 2016 order cost was $61,315 and the 2017 order cost was $72,130. RECOMMENDATION Section 12-11 of the Municipal Code provides that subject to approval of the City Manager, purchases may be made without following a formal competitive bidding process when the purchase is from only one source of supply or when standardization or compatibility is the overriding consideration. In accordance with Section 12-11 of the Municipal Code and with approval by the City Manager, Purchasing City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 http://www.ci.oshkosh.wi.us recommends the Common Council approve this Sensus water meters/transmitters purchase from Core & Main, 15655 W. Rodgers Drive, New Berlin, WI 53151 in the amount of $543,990.00. Respectfully Submitted, Z' Approved: ---� fw--� Jon G. Urben, General Services Manager Mark A. Rohloff, City Manager