TO: Mayor and Commissioners
FROM: Marjorie Craig, P.E., Utilities Director
THROUGH: Mark R. Lauzier, City Manager
DATE: June 5, 2018
Title
APPROVE RESOLUTION NO. 36-18 TO AWARD A CITY STANDARD AGREEMENT WITH BADGER METER INC. DBA NATIONAL METER AND AUTOMATION FOR BADGER METER, INC. BRAND WATER METERING TECHNOLOGY PRODUCTS IN A TOTAL AGREEMENT VALUE NOT-TO-EXCEED $692,000 THROUGH MARCH 8, 2020
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Recommended Action:
Recommendation
Motion to approve Resolution No. 36-18 to award a city standard agreement with Badger Meter Inc. DBA National Meter and Automation (Agreement) for the purchase of Badger Meter, Inc. brand water metering technology products in a total Agreement value not-to-exceed $692,000 through March 8, 2020.
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Background:
Bid No. 2013-17 was awarded in 2013 to Innovative Metering Solutions, Inc. for the procurement and installation of a comprehensive $7.74 million, multiyear, advanced metering infrastructure and water meter replacement project for the City of Delray Beach's Utilities Department (City or DBUD). This project included, but was not limited to, installing Badger Meter, Inc. meters, meter components, and customer service software and hardware (water metering technology products) for residents and businesses citywide. On March 9, 2018, Badger Meter, Inc. water metering technology products were approved as a city standard, since changing from Badger Meter, Inc. branded water metering technology products after the initial project investment would be cost prohibitive due to the proprietary technology and efficiencies realized by standardizing on the product. In January 2018, Innovative Metering Solutions, Inc. was acquired by Badger Meter Inc. DBA National Meter and Automation. These products are sold and maintained by Badger Meter Inc. DBA National Meter and Automation as the sole authorized distributor for Florida.
In 2011, Sarasota County initiated a similar project to replace their metering infrastructure and water meters countywide, which resulted in an award to Innovative Metering Solutions, Inc. Then, in 2012, Sarasota County negotiated a contract with Innovative Metering Solutions, Inc. for the same water metering technology products as a sole source. The pricing was updated in 2017, and the City has been extended the same pricing negotiated by Sarasota County.
The DBUD is requesting approval of this Agreement not to exceed $692,000 for the following anticipated expenditures:
|
Year |
Expenditure Type |
Cost |
Total |
|
6/2018-3/2020 |
Meters and parts |
$225,000 annually |
$450,000 |
|
2018 |
Upgrade metering software |
$126,000 onetime cost |
$126,000 |
|
2019 - 2020 |
Annual subscription cost |
$58,000 annually |
$116,000 |
|
|
|
TOTAL |
$692,000 |
The annual parts expenditure of $225,000 will allow as-needed purchases to replenish inventory in the City’s Central Warehouse: providing supplies related to daily operations for new metered connections; potable and reclaimed meters; and replacements of damaged meters, data collector units, and metering interface units.
In addition, this contract will upgrade the current meter reading software, which will not be supported in the future, to a cloud based system that includes a customer-facing portal. The existing fixed network “Badger Read Center” (Read Center), a local server-based system of capturing water metering information via fixed radio antennas, will be upgraded to a cloud based cellular system, referred to as the “Badger Beacon” (Beacon) system. The Beacon system has an enhanced customer facing portal similar to Florida Power and Light’s electric Smart Meter system, which allows customer viewing. The current Read Center will not be supported by Badger in the future and is scheduled to be phased out within the next two to three years, and DBUD supports moving forward with this upgrade now. Annual subscription costs of $58,000 for 2019 and 2020 are included in this agreement.
Therefore, staff requests approval of a total agreement value not-to-exceed $692,000 to Badger’s National Meter and Automation through March 8, 2020.
This motion is in accordance with City Code of Ordinances Section 36.02, Commission Approval Required and Purchasing Policies; Limited or No Competition Acquisitions.
Attachments:
Attachment 1 - City Standard Justification Memorandum
Attachment 2 - Resolution
Attachment 3 - Agreement
Attachment 4 - Legal Review Checklist
City Attorney Review:
Approved as to form and legal sufficiency.
Funding Source:
Funding is available from account numbers 442-36-260-537.64-91, Machinery and Equipment Automated Meter Reading, 442-36-260-537.63-19, Capital Outlay Water Mtr Replcmnt / Swale Recon, 442-36-260-537.52-39, Operating Supplies <$1,000 Water Meter, 441-36-283-536.52-39, Operating Supplies <$1,000 Water Meter, and 441-0000-141.12-00, Materials & Supplies Inventory - Utility Warehouse.