Consideration and Approval of Contract:  Approve the purchase of utility water meters from Core & Main, LP in an amount not to exceed the FY19 budgeted amount for the utility water meter replacement program.

The purchase of these utility water meters is critical to the Water Services Division and are purchased incrementally, in bulk, on an as needed basis to maintain pre-determined inventory levels.  A contract with a prior vendor for the purchase of utility water meters was not extended for the final year due to limitations within the terms on meter sizes and meter types. Prior to the solicitation of this proposed contract, the Water Services Section has limited its purchases of new utility water meters. Meter Technology Consultants assisted the Water Services Section with the solicitation to develop a comprehensive specification for most utility water meter sizes used within the City's water distribution system. This comprehensive specification also included new meter technologies and ultrasonic meters, to extend the useful life of utility water meters and provide a more accurate low flow reading.

Utility water meter replacement should occur every 10 to 12 years based on American Water Works Association (AWWA) standards. The AWWA standard measures a mechanical-type utility water meter under normal use condition. Over time the mechanical parts of a utility water meter wear and will slowly reduce the accuracy of the utility water meter. As part of the utility meter replacement program, utility water meters should be replaced on a regular schedule.

The FY19 budgeted amount for the utility water meter replacement program is $650,000.00. These funds are held in Account No. 202-08-370-3170-0-4461.

Maintain accurate data on the water consumption throughout the water distribution system.

Council has budgeted $650,000.00 in FY19 for the utility water meter replacement program.

1.)  Approve the contract with Core & Main, LP.
2.)  Not approve the contract with Core & Main, LP.
3.)  Reject all bids as submitted and direct staff to re-solicit an Invitation for Bids.

The City has approximately 20,000 utility water meters that are billed on a monthly basis. The size of the utility water meters range from 3/4 inch up to 10 inch and utilize various mechanical technologies (nutating disc, compound, turbine etc.). The recommended purchase covers approximately 99.5% of all utility water meters used in system. The small number of specialty meters not included in the purchase will be handled on a case-by-cases basis. Examples of a specialty meter would be a stainless steel fire service meter for specific applications.

Awarding the contract to Core & Main, LP would allow the City to continue utilizing the Itron meter reading technology as well as upgrading the utility water meter technology to ultrasonic. The upgrade to ultrasonic utility water meters will increase the longevity of the meter up to twenty years with accurate readings throughout the life expectancy of the utility water meter. In addition, Core & Main, LP has a warehouse location within the City which will help facilitate stocking and delivery of the utility water meters.

On December 29, 2017, the Purchasing section posted an Invitation for Bids solicitation on the PlanetBids website and also advertised in the AZ Daily Sun. The City received 4 bids on January 19, 2018 which were reviewed by City staff. Core & Main, LP's bid was responsive and responsible, and was determined to be the lowest price in the majority of all listed items meeting the requirements of the technical specifications. As a result, staff is recommending awarding the contract in whole to Core & Main, PL. Attached is a bid matrix of bid pricing received showing lowest bid price by item. 
 

This contract will allow the City to purchase utility water meters under a formal contract with contract pricing and standard terms and conditions.

The City is currently purchasing utility water meters on an as-needed basis. This contract with Core & Main, LP will allow the City to purchase utility water meters under a formal contract that includes a guaranteed pricing structure.

This contract will allow the City to purchase utility water meters under a formal contract with established pricing structures. It will guarantee delivery of essential components for the utility water system and ensure that there are minimal impacts to customers, such as misreads or incorrect billings from failed equipment that the City is unable to replace in a timely manner.