CITY COUNCIL AGENDA ITEM
Memo Date: June 25, 2024
Agenda Date: July 23, 2024
Prepared By: Brian Dale, Purchasing Manager
Through: Rebecca Bowman, CGFO, CGFM, Finance Director
Requested Action:
title
Approve an Agreement For Water Meter and Meter Reading Equipment Purchases with Ferguson Enterprises LLC., Authorize the City Manager to approve Purchase Orders for Ferguson Enterprises LLC. for up to $1,900,000 and Request Council approval of a Resolution to Waive Competitive Bid with Ferguson Enterprises LLC for the purchase of Neptune water meters and other ancillary hardware required to support meter operations upon the adoption of the FY25 BudgetEnd
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BACKGROUND:
The City of Cocoa has purchased Neptune water meters and other ancillary hardware through the Neptune authorized distributor and reseller, Ferguson Enterprises LLC (formerly Sunstate Meter and Supply) since the early 1990’s. Water meters are stocked at the warehouse until the Utilities Department withdraws the necessary hardware at which time it is charged to the appropriate repair and maintenance account.
Replacement of water meters, ancillary equipment and other ancillary hardware is vital to utility water consumption reads and billing that generate revenue for the Utility Fund. The City has standardized the use of Neptune meters and Ferguson Enterprises LLC is the only authorized dealer of Neptune meters in Florida. Staff is requesting approval of a Resolution to Waive Competitive Bid to allow purchases from Ferguson Enterprises LLC throughout FY25. Other meter and ancillary equipment purchases are done utilizing this Exemption to Competitive Bid on separate purchase orders that do not exceed the City Manager's approval authority.
To reduce the amount of purchase orders required for purchase of meters and ancillary equipment throughout the year, the staff is requesting approval to issue a Blanket Purchase Order for warehouse stock as well as individual Purchase Orders for specific projects Ferguson Enterprises LLC. Total purchases on the blanket PO for FY25 are estimated at $1,900,000. Although pricing on the meters increased slightly, about 1-3%, depending on the model, total spending is expected remain about the same.
The meters support the City's ability to transition to an automated meter reading program in the future. The Inventory Warehouse issues the meters to the Water Field Operations Division (WFO) as the meters are needed. WFO budgets for meter replacements each year in the Adopted Budget. Should FY25 purchases under the blanket purchase order exceed the amount requested, a change order to add funds will be presented to City Council for additional purchasing authority. Should the cost of the meters issued to WFO from the Inventory Warehouse exceed WFO's approved budget, a Budget Amendment Form will be either approved by the City Manager if within his approval authority) or be brought to City Council for approval. Through use of a Blanket Purchase Order, larger quantities of meters can be ordered at one time, providing administrative and operational efficiencies.
STRATEGIC PLAN CONNECTION:
N/A
BUDGETARY IMPACT:
Budgeted Upon Adoption of the FY25 Budget
If not budgeted, is amendment/transfer attached? No
Amount Requested Up to $1,900,000 FY25
Account Number 421-4025-536.46-00
Account Name Repairs and Maintenance
PREVIOUS ACTION:
On February 13, 1996, the City of Cocoa began purchasing Neptune water meters from authorized distributor and reseller, Sunstate Meter and Supply Inc.
Purchase of the meters from Sunstate Meter and Supply Inc. have been approved by the City Council through use of a piggyback agreement or approval of Exemption to Competitive Purchase in the years subsequent to 1996.
City Council approved a Master Agreement for Water Meter and Meter Reading Equipment Purchase on October 8, 2020 via agenda item # 20-679 for one year through August 16, 2021 with Sole Source Resolution #2020-217.
On September 13, 2021, City Council approved an extension to the Master Agreement, a Resolution to waive competitive bidding and a Blanket Purchase Order in the amount of $1,500,000 for FY22.
On July 12, 2022, City Council approved an extension to the Master Agreement, a Resolution to waive competitive bidding and a Blanket Purchase Order in the amount of $1,6500,000 for FY23.
On July 11, 2023, City Council approved the final extension to the 2020 Master Agreement, a Resolution to waive competitive bidding and a Blanket Purchase Order in the amount of $1,900,000 for FY24.
RECOMMENDED MOTION:
Recommendation
Approve an Agreement For Water Meter and Meter Reading Equipment Purchases with Ferguson Enterprises LLC., Authorize the City Manager to approve Purchase Orders for Ferguson Enterprises LLC. for up to $2,000,000 and Request Council approval of a Resolution to Waive Competitive Bid with Ferguson Enterprises LLC for the purchase of Neptune water meters and other ancillary hardware required to support meter operations upon the adoption of the FY25 Budget.