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AGENDA ITEM REVIEW FORM |
5.G.
Regular City Council Meeting
- Meeting Date:
- 06/09/2021
- Department Head:
- Jorge Perez
- Submitted By:
- Jorge Perez, Billing & Collections Manager, Finance Department, Billing & Collections
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the request to purchase a large volume of water meters and MXUs from Dana Kepner Company due to the shortage of supplies and the increased lead-times for products. (Jorge Perez, Billing & Collections Manager)
SUMMARY:
As we all know, COVID-19 has negatively impacted the world's health and economy. Many supplies and suppliers have struggled to keep up with the products that they offer and no one has been untouched by the current state of affairs, including Xylem (Sensus).
During the past month of May, we received a notification from Xylem (Sensus) on the impact on current orders of water meters and all other products that they offer including MXUs (Antennas). Sensus is a worldwide manufacturer and uses distributors around the globe. Our assigned distributor in the State of Arizona is Dana Kepner Company, with whom we are in touch, and keep us updated of the situation. We attempted to purchase water meters from different distributors from other states, but we keep being sent back to our local distributor in Arizona.
Dana Kepner Company just informed us of lead times of up to 22 weeks on water meters coming from Sensus. Because of this reason, we would like to place an order for water meters and MXUs that would last a year. We currently have about 120 water meters in stock for new homes, which should last about three months based on the average monthly installation rate.
Staff seeks approval for the purchase of water meters and MXUs (antennas) in the amount of $177,026.65. Purchase is to be made from Dana Kepner Company, our sole source vendor/distributor for Xylem (Sensus) products. Staff also recommends that formal bidding procedures be waived for this purchase as allowed under the San Luis City Code §3.05.010(H).
Staff also seeks approval to transfer $130,000.00 from the Water CIP account 300-302-90015 and $47,000.00 from the salaries account 300-302-50000 to Minor Tools / Equipment Supplies account 300-302-60035 in the amount of $177,000.00 to proceed with this purchase.
During the past month of May, we received a notification from Xylem (Sensus) on the impact on current orders of water meters and all other products that they offer including MXUs (Antennas). Sensus is a worldwide manufacturer and uses distributors around the globe. Our assigned distributor in the State of Arizona is Dana Kepner Company, with whom we are in touch, and keep us updated of the situation. We attempted to purchase water meters from different distributors from other states, but we keep being sent back to our local distributor in Arizona.
Dana Kepner Company just informed us of lead times of up to 22 weeks on water meters coming from Sensus. Because of this reason, we would like to place an order for water meters and MXUs that would last a year. We currently have about 120 water meters in stock for new homes, which should last about three months based on the average monthly installation rate.
Staff seeks approval for the purchase of water meters and MXUs (antennas) in the amount of $177,026.65. Purchase is to be made from Dana Kepner Company, our sole source vendor/distributor for Xylem (Sensus) products. Staff also recommends that formal bidding procedures be waived for this purchase as allowed under the San Luis City Code §3.05.010(H).
Staff also seeks approval to transfer $130,000.00 from the Water CIP account 300-302-90015 and $47,000.00 from the salaries account 300-302-50000 to Minor Tools / Equipment Supplies account 300-302-60035 in the amount of $177,000.00 to proceed with this purchase.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE PURCHASE OF THE WATER METERS IN THE AMOUNT OF $177,026.65, TO WAIVE FORMAL PURCHASING PROCEDURES, AND TO TRANSFER FUNDS AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- CITY
- TOTAL:
- $177,026.65
- BUDGETED AMOUNT:
- See fiscal impact stmt
- AVAILABLE AMOUNT TO TRANSFER:
- $177,000.00
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Capital Outlay - CIP - 300-302-90015 - $130,000.00 / Salaries - 300-302-50000 - $47,000.00
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
We are requesting transfer from:
Capital Outlay - CIP - 300-302-90015 - $130,000.00
Salaries - 300-302-50000 - $47,000.00
To:
Minor Tools and Equipment account t 300-302-60035
Capital Outlay - CIP - 300-302-90015 - $130,000.00
Salaries - 300-302-50000 - $47,000.00
To:
Minor Tools and Equipment account t 300-302-60035