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Home My WebLink AboutEquarius Waterworks - Automated Meter Installation Program - i Council/Agency Meeting Held: / Deferred/Continued to: 4Appraved ❑ Conditionally Approved ❑ Denied �.-�/Gd"P-erO Sig tune Council Meeting Date: December 19, 2011 Department ID Number: PW 11-066 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION 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 with Equarius Waterworks for Automated Meter installation program Statement of Issue: Submitted for City Council approval is a Sole Source procurement request for Equarius Waterworks for the Automated Meter installation 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: Motion to: Approve Sole Source Procurement with Equarius Waterworks for Automated Meter Installation. Alternative Action(s): Deny Sole Source Procurement with Equarius Waterworks and direct staff accordingly. Analysis: In Fiscal Year 2010, the City implemented Phase 1 of the Automated Meter Installation program and awarded the project to Measurement Control Systems, who was the only authorized dealer of Neptune Products at the time. As of August 15, 2011, Neptune Technology Group terminated its local distributor agreement with Measurement Control. Neptune has subsequently assigned exclusive rights in California to Equarius Waterworks. Equarius Waterworks has agreed to honor all existing terms, conditions and pricing in the original agreement with Measurement Control Systems. The Water Fund has budgeted $2,500,000 in the approved FY 2011/12 budget for the project. Approval of the sole source procurement will not have any budget impact and will simply change the approved vendor. Administrative Regulation 229 requires City Council approval for all sole source procurement over $50,000. Public Works Commission Action: Not Required. xB -165- Item 9. - I REQUEST FOR COUNCIL ACTION MEETING DATE: 1 211 9/201 1 DEPARTMENT ID NUMBER: PW 11-066 Environmental Status: Projects over which public agencies exercise ministerial authority, such as this agreement contracting for preparation of environmental documentation, are categorically exempt from the California Environmental Quality Act pursuant to Section 15300.1. Strategic Plan Goal: Maintain, improve and obtain funding for infrastructure and equipment Attachment(s): • s - e . 1. 1 Sole Source Justification Item 9. - 2 xB -166- ATTACHMENT # 1 CITY OF HUNTINGTON BEACH Sole-Source Justification (For use on all goods and services acquisitions.) This justification document consists of two(2)pages. Ali 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: October 17, 2011 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. T e names. Do not sign. Must be same as signature below. Department Contact Information Contact Name: Rudy Ocam o Street Address: 19001 Huntington Street, H.B., Ca. 92648 Telephone: 714-536-5453 Fax: 714-847-1067 Shipping Address: Cellular hone: 714-907-7409 Required Contact Information Contractor/Supplier Name: E uarius Waterworks Contractor/Supplier Address: 20655 S.Western Ave.,#108 Contractor/Supplier City/State/Zip: Torrance, CA. 90501 Original Contract Amount:* Amendment Amount:* (if applicable) New Contract Amount:* $2,500,000 $ $ ("Includes original contract and previously ("Includes original contract and all amendments, approved amendments) (*Current amendment only) including current amendment Provide a brief description of the acquisition, including all goods and/or services the contractor willprovide: Neptune RF meter reading equipment, Neptune water meters and parts. Contract Type and Term Contract Type: Contract Term: What account number will be used to purchase? Select One: ® Goods Begin: Business Unit: 50685805 ❑ Service ❑ Goods&Services End: Object Code: 84300 Require Approvals Department Head Fiscal Services Manager D' ector of Finance D uty City Administrator Approved El Denied Q.Appr enied Appr Denied Approve El Denied Signature Signa ure Signature Signa ure 7 I i // - -7._ /f %lz ate Date D e f-Date (Transactions exceeding$50,000 must be approved by City Council Item 9. - 4 HB -168- CITY OF HU TINGTN 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 BELOW: 1. Why is the acquisition restricted to this goods/services/supplier? (Explain why the acquisition cannot be competitively bid.) Per the attached letter from Neptune Technology Group, Inc. EQUARIUS Waterworks has exclusive rights in California to the Neptune product line. 2. Provide the background of events leading to this acquisition. As of August 15,2011 Neptune Technology Group terminated its local distributor Measurement Control Systems, Inc. Details regarding this termination cannot be discussed at this time. However, Neptune did an extensive market analysis post termination and signed up Equarius Waterworks. President Eric Tracy has extensive experience in the water/wastewater environment and more recently selling and supporting Neptune meters, RF and exclusive contracts that we had with Aclara,formerly known as Hexagram. 3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?). In FY 2010/2011,the city implemented Phase 1 of the Automated Meter Installation program utilizing Measurement Control Systems 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 Neptune Technology Group, Inc. EQUARIUS Waterworks has exclusive rights in California to the Neptune 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 Neptune Technology Group, Inc. EQUARIUS Waterworks has exclusive rights in California to the Neptune product line. B. PRICE ANALYSIS 1. How was the price offered determined to be fair and reasonable? (Explain what the basis was for comparison and include cost analyses as applicable.) The city went out to bid in 2010 and Measurement Control Systems was awarded the project. Per the attached letter from EQUARIUS Waterworks,they have agreed to honor all existing terms,conditions and pricing contained in the original agreement between the city and Measurement Control Systems. xB -169- Item 9. - 5 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 Item 9. - 6 HB -170- Sep f!c iber27. 2011 To Whom 2 May Concern: EQU ARIRS WaterNvorksAc2rre eil the only authorized diKrib ,ut in the Stlaeof California frl< NeptuneRFmJw reading JUipenG Neptune waetr m6ys and sl . £/UA DS Waterworks is ƒclizod by yept ne to submit an ofTer for Neptune water m2ersad related uclG. Thanks you for your interest in Neptu! eprocl12s / alll any question,-;., please contact your loc/ representative,Erc Tracy at 4I 30 2702 or your m C� Neptune representative Andy Bohn. at JIS7l 2 . ��\ ` Regards. Chris Knapp Field.Support Manager NERPTUNE TECHNOLOGY GROUPING ! !G Gm @R «29,ma;eK a - SU Saes aepund$men /8 -171- Item 9. - 7 "' p,PARIUS u,6,tcr?v,,rks October 51h,2011 EQUARIUS Waterworks 20655 S.Western Ave., #108 Torrance,CA 90501 Ms. Sharon Griffin City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648-2702 Dear Ms. Griffin: I am writing you to let you know that EQUARIUS Waterworks, the exclusive Neptune Distributor in California,will be honoring all existing terms, conditions, and pricing contained in Huntington Beach's Purchase Order# 16805-OP. We look forward to working with the City during the remaining implementation of its AMI Water Meter Program. Please do not hesitate to contact me if you have any questions. Best Regards, G5. l 2r-CY Eric Tracy President EQUARIUS Waterworks (415)309-2702 etracy@equariusww.com ENCLOSURES: EQUARIUS Waterworks Exclusivity Letter from Neptune Huntington Beach PO#16805-OP EQUARIUS Waterworks W-9 Form Item 9. - 8 H -172-