Item Coversheet


LEGISLATIVE MEMORANDUM


TO:


Honorable Mayor and Members of the City Council
FROM: Suzanne Sherman, City Manager
THRU: Christopher A. Little, P.E.; George Barber, Chief Procurement Officer
DATE:

12/7/2023
RE:

Contract: Neptune Technology Group, Inc., water meters and parts - Utilities Department (Ferguson Waterworks, $1,500,000 (annual estimate) (standardized, sole source)

The Utilities Department standardized water meters based on the Neptune Technology Group, Inc., radio read system for water meters. 

 

In March 2003, the City purchased the Neptune hardware and software for the radio reading of water meters.  Subsequently, the City has continued to use the Neptune system and kept the system current through upgrades to the system hardware and software.  The Neptune software and hardware are a proprietary system designed to communicate with the Neptune radio read meters. Neptune water meters are the only radio read meters that are compatible with this proprietary system. Additionally, this system has been integrated to work, via data upload, with the City's utility billing system.

 

The main items purchased are the Neptune 5/8” x ¾” T10 BB Bronze Bottom R900i Meter Complete and Neptune R900 Pit Gallon Registers.  An average of 2,500 meters and 1,500 registers are purchased annually, in addition to smaller quantities of other items on the pricing list.  As an added benefit, Neptune offers a generous prorated warranty program for registers that qualify. Under this program non-working registers are returned to the manufacturer to be inspected. Over 80% of the registers returned qualify for warranty and are replaced under the prorated warranty program. An average of 1,400 registers are purchased annually via the warranty program. 

 

In Fiscal Year (FY) 2021, the Utilities Department upgraded the mobile data collectors and software to the Neptune 360 Mobile Application. This upgrade requires an annual subscription of $0.82 per meter/per year. For FY 2024 the estimated subscription cost will be $30,000. 

 

The current agreement with Ferguson Waterworks was approved by City Council on December 6, 2022; this agreement expires December 31, 2023.  Ferguson Waterworks has submitted a new pricing agreement for the term beginning January 1 through December 31, 2024. There is no price increase for the meters, a 2% price increase on the registers, and a 16% increase for the annual subscription. 

 

Ferguson Waterworks is the sole source provider of Neptune water meters and parts for the State of Florida. 

 

Per City Code of Ordinance 38.12 SOLE SOURCE PURCHASES: The Chief Procurement Officer may make or authorize the purchase of goods and/or services, subject to the mandatory City Council approval level stipulated in this Ordinance, without competitive solicitation when the director of the client department has documented in writing that such good and/or service is the only item that meets the need and is available through only one source of supply, or when the intent to award via sole source is posted on the City’s website for a reasonable time period but at a minimum of seven (7) calendar days, or when a documented research effort by the Chief Procurement Officer fails to identify further competing sources of the goods or services.  Such written determinations and supporting documentation shall be retained by the Chief Procurement Officer for public inspection and auditing purposes.  Where standardization is determined by the Chief Procurement Officer to be appropriate, and negotiation of such standard items is appropriate, a sole source determination is justified.  



REQUESTING DEPARTMENT:
Utilities, Procurement

FISCAL IMPACT:
Meters are purchased as an asset (inventory) for future use and are not expensed until they are issued.  No specific amount is budgeted for meters.  The estimated annual expenditure is $1,500,000.   The meters will be expensed, at time of issue, to Utilities operating, and Utilities renewal and replacement accounts 421-8020-533-6322 and 424-8022-533-6322. The estimated annual expenditure is $1,500.000. Purchase orders are issued on an “as needed” basis.  Funding is available for the annual subscription in Utilities operating account 421-8016-536-3411. 

RECOMMENDATION:

Motion to 1) approve the Standardized Sole Source purchase of Neptune Technology Group, Inc., water meters and parts from Ferguson Waterworks; and 2) approve the price agreement for the term January 1, 2024, through December 31, 2024. 

ATTACHMENTS:
Description
Price Agreement
Sole Source