CITY COUNCIL AGENDA ITEM
Memo Date: September 30, 2020
Agenda Date: October 13, 2020
Prepared By: Rebecca Bowman, CGFO, CGFM, Finance Director
Through: Stockton Whitten, City Manager
Requested Action:
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To Approve Addendum #1 to the Master Agreement For Water Meter and Meter Reading Equipment Purchases with Sunstate Meter & Supply, Inc., Approve the Exemption to Competitive Bid Form and authorize the City Manager to approve a Blanket Purchase Order for Sunstate Meter and Supply Inc. up to $1,500,000 and Request Council approval of a Resolution to Waive Competitive Bid with Sunstate Meter and Supply Inc for the purchase of Neptune water meters and other ancillary hardware required to support meter operations for FY22.
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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, 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 Sunstate Meter and Supply Inc. 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 Sunstate Meter and Supply, Inc. throughout FY22. 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 utilize a Blanket Purchase Order through Sunstate Meter and Supply Inc. for a blanket purchase order amount of up to $1,500,000 for FY22. The expenditures related to the purchase of new meters has increased in recent years as the City has been installing radio read meters only. 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 FY22 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 Yes
If not budgeted, is amendment/transfer attached? N/A
Amount Requested
Up to $1,500,000 FY22
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.
RECOMMENDED MOTION:
To Approve Addendum #1 to the Master Agreement For Water Meter and Meter Reading Equipment Purchases with Sunstate Meter & Supply, Inc., Approve the Exemption to Competitive Bid Form and authorize the City Manager to approve a Blanket Purchase Order for Sunstate Meter and Supply Inc. up to $1,500,000 and Request Council approval of a Resolution to Waive Competitive Bid with Sunstate Meter and Supply Inc for the purchase of Neptune water meters and other ancillary hardware required to support meter operations for FY22.