HomeMy WebLinkAboutApprove Sole Source Procurement Request for Ferguson Waterwo 2000 Main Street,
Huntington Beach,CA
City of Huntington Beach 92y8 _0
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File #: 22-644 MEETING DATE: 8/2/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Sean Crumby, Director of Public Works
PREPARED BY: Chris Davis, Senior Administrative Analyst
Subject:
Approve Sole Source Procurement Request for Ferguson Waterworks 1083 for Neptune Water
Meters
Statement of Issue:
Submitted for City Council approval is a sole source procurement request in the amount of$250,000
for Ferguson Waterworks 1083 for Neptune Water Meters
Financial Impact:
Funds for these water meter parts are included in the FY 2022-23 Budget in Water Enterprise Fund
Business Unit 50685805.
Recommended Action:
Approve the sole source procurement of Neptune Water Meters from Ferguson Waterworks 1083.
Alternative Action(s):
Do not approve the sole source procurement request, and direct staff accordingly.
Analysis:
There are approximately 55,000 water meters in the City of Huntington Beach's water distribution
system. The typical useful life for a water meter is 15 to 20 years. Older meters tend to be less
accurate and more prone to maintenance issues over time. As such, the City implements a water
meter replacement program that replaces meters at 15 years to obtain maximum value while
ensuring that our customers are billed accurately.
The Water Meter section of the Public Works Department recently began a new cycle of its 15-year
water meter (approximately 2,500 meters per year) replacement program, and it is operationally
preferable to utilize one brand of water meters in the program. However, if the department mixes and
matches various brands, it becomes costly and time consuming to train staff to maintain each meter
City of Huntington Beach Page 1 of 2 Printed on 7/27/2022
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File #: 22-644 MEETING DATE: 8/2/2022
type, as well as to warehouse extra parts and materials for each brand. As such, the Department
believes it is critical for operational efficiency to utilize only one meter brand in the program.
Therefore, it would likely be impractical to advertise for bids from various meter manufacturers every
(3) three years, resulting in a patchwork system comprised of various types of meters.
With the exception of specialty and large meters, all water meters in the City thus far are Neptune
brand water meters. Per the attached letter from Neptune Technology Group, Inc., Ferguson
Waterworks has exclusive rights in California to the Neptune product line. The Public Works
Department has utilized Ferguson since 2004.
Huntington Beach Municipal Code Chapter 3.02 Purchases of Goods and Services states that sole
source procurements are exempt from competitive bidding requirements and are allowed in those
cases where the procurement of any product or supply is obtainable only from a single or sole
source. The proposed water meter purchase from Ferguson would be an example of such sole
source procurements.
Environmental Status:
Not Applicable
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Sole Source Justification
City of Huntington Beach Page 2 of 2 Printed on 7/27/2022
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CITY OF HUNTINGTON BEACH
Sole-Source Justification
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(For use on all goods and services acquisitions.)
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: July 7, 2022
Requestor Name: Rudy Ocampo Division Manager: Alvin Papa
(Type names. Do not sign.)
Department: Public Works Department Head: Sean Crumby
(Type names. Do not sign. Must be same as signature below.
Department Contact Information
Contact Name: Chris Davis Street Address: 19001 Huntington Street
Telephone: 1641
Fax: Shipping Address: 19001 Huntington Street
Cellular hone:
Required Contact Information
Contractor/Supplier Name: Ferguson Waterworks 1083
Contractor/Supplier Address: PO Box 740827
Contractor/Supplier City/State/Zip: Los Angeles, CA 90074
Original Contract Amount:* Amendment Amount:* (if applicable) New Contract Amount:*
$N/A $N/A $250,000
('Includes original contract and previously (*Includes original contract and all amendments,
approved amendments) "Current amendment only) including current amendment
Provide a brief description 9f the acquisition, including all goods and/or services the contractor willprovide:
6700
Contract T pe and Term
Contract Type: Contract Term: What account number will be used to purchase?
Select One: ® Goods Begin: 7/6/2022 Business Unit: 50685805
❑ Service
Goo &Services End: N/A Object Code: 84300
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Require Approvals
Pned Finapce Manager- Budget Chief Financial Officer Assistant City Manager
renied L7 proved ❑Denied p Ap ❑Denied Approved ❑ Denied
Sign ignature ignature Sign ure
Date Date Date bake
(Transactions exceeding$50,000
must be annrnvad b Ci Council
1
CITY 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 BELOW:
1. Why is the acquisition restricted to this goods/services/supplier?
(Explain why the acquisition cannot be competitively bid.)
The City has approximately 55,000 water meters in the water distribution system. The Water Meter section
of Public Works is undergoing a 15 year replacement program of the water meters in the system. It would
be extremely expensive to train staff and store different sets of parts for different meter types. Per the
attached letter from Neptune Technology Group, Inc. Ferguson Waterworks has exclusive rights in
California to the Neptune product line.
2. Provide the background of events leading to this acquisition.
The City must systematically replace water meters in the system in order to accurately measure and bill
customers for water usage. Systemwide replacement can be done on a 15 year cycle. It would be
impractical to bid every three years and risk a vendor with a different type of meter winning the bid,
resulting in multiple types of meters in the system.
3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
It would be impractical, if not impossible to risk having a vendor with a different type of meter winning the
bid, resulting in multiple types of meters in the system.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed
supplier?
Multiple types of vendors would additional staff to maintain different meters rather than the economy of
scale created by having only the one. Additionally, different parts would be needed if multiple types of
meters were used.
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.)
The Water Meter section has tested all meter types in the industry.
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.)
N/A
as
2
2. Describe any cost savings realized or costs avoided by acquiring the goods/services from this supplier.
The cost of switching to another type of meter has not been researched, but would require a large
investment in materials and staff time to replace 55,000 meters.
Remit completed form to: City of Huntington Beach—Purchasing Division
2000 Main Street,Huntington Beach,CA 92648-2702
89
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� �!� NePTUNe
TECHNOLOGY GROUP
July 7th 2022
To: City of Huntington Beach;Attn:Rudy Ocampo
Re: Sole Source California Distribution;Products and Systems Support
Dear Rudy:
Neptune Technology Group continues to value the longstanding relationship with utilities
in the Southern California market. To meet procurement requirements and provide the
City of Huntington Beach with optimum sales and customer experience,Neptune utilizes
Ferguson Waterworks,our exclusive distributor for California. Neptune takes a single
distributor approach to cover hardened territories set forth in our distribution agreements.
Ferguson is a Level One distributor of Neptune which is the highest rank meaning they
commit extra time to training to our portfolio of solutions. They have a certified sales
and support team to meet and exceed the support needs of our customer base. Their
services not only support Neptune water meters,but our parts,software,network,and
extended maintenance services.
If you have any questions,please feel free to contact me at any time. My contact
information is provided below. Otherwise,we look forward to being your most valued
partner in assisting you meet the needs of your customers in Huntington Beach.
Sincerely,
Andy Bohn
District Manager CA/NV
ab ohn(a4,neptunetg.c om
Cell:415-710-2046
1600 Alabama 800-633-8754
Highway 229 neptunetg.com
Tallassee,AL 36078