HomeMy WebLinkAboutSole Source Procurement with Delta Engineering Sales, LLC foDept. ID 15-053 Page 1 of 2
Meeting Date: 8/17/2015
Approved 7-0
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 8/17/2015
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Travis K. Hopkins, PE, Director of Public Works
SUBJECT: Approve Sole Source Procurement Request with Delta Engineering Sales, LLC,
for purchase of Advanced Meter Infrastructure (AMI) equipment that utilize water
meters that automaticallv transmit water usage readings
Statement of Issue:
Submitted for City Council approval is a Sole Source Procurement Request for Delta Engineering
Sales, LLC, for the Advanced Meter Infrastructure (AMI) program. Administrative Regulation 229
requires City Council approval for all sole source procurements over $50,000.
Financial Impact:
Funds for this purchase are budgeted in Water Fund Account 50685805.84300.
Recommended Action:
Approve Sole Source Procurement Request with Delta Engineering Sales, LLC, for the purchase of
Advanced Meter Infrastructure equipment.
Alternative Action(s):
Deny the Sole Source Procurement Request for Delta Engineering Sales, LLC, and direct staff
accordingly.
Analysis:
In Fiscal Year 2010/11, the City implemented Phase 1 of the Advanced Meter Infrastructure (AMI)
program. AMI utilizes water meters that automatically transmit water usage readings via a Meter
Transmitter Unit (MTU) to a Data Control Unit (DCU) via radio frequency, which then relays the
data to the Network Control Computer (NCC), located at City Hall. This program will eliminate the
need for staff to manually read over 53,000 meters per month.
The City originally awarded the contract to purchase the water meters, MTUs and DCUs to
Measurement Control Systems, who was the only authorized dealer of Neptune meters and Aclara
AMI products at the time. In 2011, Neptune terminated its local distributor agreement with
Measurement Control Systems and assigned the distribution rights to Equarius. Following this
assignment, the City Council approved a Public Works Department request on December 19, 2011
to similarly assign the procurement contract to Equarius. Most recently, in March 2015, Equarius
was sold to Ferguson Enterprises thereby requiring a similar assignment of the procurement
contract for continuity of the City's AMI program.
Ferguson will continue to sell the Neptune meters but will not be carrying the Aclara MTUs and
DCUs that are compatible with the City's system. Delta Engineering Sales, LLC, has acquired
Dept. ID 15-053 Page 2 of 2
Meeting Date: 8/17/2015
exclusive distribution rights to the Aclara MTUs and DCUs in California. As a result, staff is
requesting approval of a Sole Source Procurement request in order to continue purchasing the
Aclara equipment for the AMI program from Delta Engineering Sales, LLC.
Approval of the Sole Source Procurement Request will not have any budget impact as it simply
changes the approved vendor for the Aclara equipment. The Water Fund includes $2,500,000 in
the approved Fiscal Year 2014/15 budget for the AMI program. Administrative Regulation 229
requires City Council approval for all sole source procurement requests over $50,000.
Environmental Status:
Not applicable
Public Works Commission Action:
Not required
Strategic Plan Goal:
Enhance and maintain infrastructure
Attachmentfs):
1. Sole Source Justification
REC,F1'VED
CITY OF HUNTINGTON BEACH JUN 23 Z015
Sole -Source Justification
(For use on all goods and services acquisitions.) til4 I
This justification document consists of two (2) pages. All information must be provided and all questions must be answered. The "Required
Approvals" section must include a date for each signature, as appropriate for the transaction.
Requesting Department Information
Date: May 11, 2015
Requestor Name: Rudy Ocampo
Division Manager: Brian A. Ragland, P.E.
(Type names. Do not sign.)
Department: Public Works
Department Head: Travis K. Hopkins, P.E.
(Type names. Do not sign. Must be same as signature below.
Department Contact Information
Contact Name: Rudy Ocampo
Street Address: 19001 Huntington Street, H.B., Ca. 92648
Telephone: 714-536-5453
Fax: 714-847-1067
Shipping Address:
Cellular phone: 714-907-7409
Required Contact Information
Contractor/Supplier Name: Delta Engineering Sales, LLC
Contractor/Supplier Address: PO Box 663
Contractor/Supplier City/State/Zip: Downingtown, PA. 19335
Original Contract Amount:*
$2,500,000
(*Includes original contract and previously
approved amendments)
Amendment Amount:* (if applicable)
$
*Current amendment only)
New Contract Amount:*
$
(*Includes original contract and all amendments,
including current amendment)
Provide a brief description of the acquisition, including all goods and/or services the contractor will provide:
Aclara RF meter reading equipment and parts.
Contract Type and Term
Contract Type:
Select One: ® Goods
❑ Service
❑ Goods & Services,
Contract Term:
Begin:
End:
What account number will be used to purchase?
Business Unit: 50685805
Object Code: 84300
Required Approvals
Department Head
Approved ❑ Denied
Fiscal Services anager
Appr ❑Denied
Director of Finance
❑ pproved ❑ Denied
De ty. City,f inistrator
p roved ❑Denied
Tign9ture
zo
Signature
Signature
_
Signature
Date
Date
Date
Date
(Transactions exceeding $50,000
must be approved by City Council)
ITT OF HUNTINGTON* BEACH
Sole Source Justification
(For use on all goods and services acquisitions.)
Complete responses must be provided for all of the following items.
A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED
NE -LOW:
1. Why is the acquisition restricted to this goods/services/supplier?
(Explain why the acquisition cannot be competitively bid.)
Per the attached letter from Aclara. Delta Engineering Sales has exclusive rights in California to the
Aclara Automated Metering Infrastructure (AMI) product line.
2. Provide the background of events leading to this acquisition.
As of March, 2015 Equarius Water Works was sold to Furguson Enterprises. For the next thre years
Furguson Enterprises will be dba Equarius Water Works Meter and Automation Group for the Neptune
AMI product. Equarious no longer sells the Aclara AMI product to any new customers. They only offer the
Neptune AMI product which is a different system that the City currently has. Details regarding this
termination cannot be discussed at this time. However, Director Bernard Dunham has extensive
experience in the water environment and more recently selling and supporting Aclara AMI, RF and
exclusive contracts that we had with Aclara.
3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
In FY 2011/20012, the city implemented Phase 2 of the Automated Meter Installation program utilizing
Equarius Water Works who was the authorized dealer of Neptune product at the time.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
Please see the attached letter from Aclarapelta Engineering has exclusive rights in California to the
Aclara AMI product line.
5. What market research was conducted to substantiate no competition, including evaluation of other items
considered?
(Provide a narrative of your efforts to identify other similar or appropriate goods/services, including a summary of how the department
concluded that such alternatives are either inappropriate or unavailable. The names and addresses of suppliers contacted and the reasons
for not considering them must be included OR an explanation of why the survey or effort to identify other goods/services was not performed.)
Please see the attached letter from Aclara, Delta Engineering has exclusive rights in California to the
Aclara AMI product line.
B. PRICE ANALYSIS
How was the price offered determined to be fair and reasonable?
(Explain what the basis was for comparison and include cost analyses as applicable.)
Delta Engineering submitted a quote (Attached) for the AMI product. The pricing for the MTU's are the
same and in some cases lower than what we are currently paying for.
2
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
See item # 1 above.
Remit completed form to: City of Huntington Beach — Purchasing Division
2000 Main Street, Huntington Beach, CA 92648-2702
945 Hornet Drive
Hazelwood, MO 63042
www.Aclara.com
314.896,6400
314.895.6463 fax
May 11, 2015
Rudy Ocampo
City of Huntington Beach
19001 Huntington Street
Huntington Beach, California 92648
Subject: Update of Aclara Distributors in the State of California
Dear Mr. Ocampo,
Aclara Technologies LLC (Aclara) is the manufacturer, supplier and maintenance provider of
the STAR Network AMI System ("STAR System"). Aclara currently has an Aclara Product
Distribution Agreements with the following company for the sale of the STAR System
products to water utilities in the Territory of California:
Delta Engineering Sales, LLC
1123 Oak Hollow Road
Downingtown, PA 19335
Contact: Bernard Dunham
Delta Engineering Sales, LLC is only Aclara Distributors for STAR Systems with a territory in
the state of California.
If I can be of further assistance, please do not hesitate to call me at 314-895-8055 or by
email at mwillis@aclara.com.
Sincerely,
Aclara Technologies LLC -
Marcia Willis
Sr. Contract Administrator