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ITEM 47 |
City Council Memorandum Public Works & Utilities Memo No. UA23-008
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Date: |
August 18, 2022 |
To: |
Mayor and Council |
Thru: |
Joshua H. Wright, City Manager Andy Bass, Deputy City Manager John Knudson, Public Works and Utilities Director |
From: |
Cristabel Dykstra, Utilities Admin Support Services Manager |
Subject: |
Agreement No. PW0-890-4209, Amendment No. 2, with Core and Main, LP, for Water Meters |
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Proposed Motion: |
Move City Council approve Agreement No. PW0-890-4209, Amendment No. 2, with Core and Main, LP, for water meters, in an amount not to exceed $1,500,000, for the period of September 1, 2022, through August 31, 2023. |
Background/Discussion: |
The City maintains approximately 86,500 water meters. These meters record water use from residential, landscape, multi-family, commercial, government, school, medical, and industrial water users. Staff routinely replace or repair failed meters to ensure customers are billed accurately. In addition to meter maintenance and replacement, staff installs meters for new customers connecting to the City's distribution system. The City has standardized its new and replacement water meters to the Neptune brand. Core and Main, LP, is the sole authorized distributor of Neptune water meters. This agreement authorizes the purchase of meters, registers, and meter parts that are compatible with the existing meter reading system, utility billing system, and inventory. |
Evaluation: |
On August 27, 2020, City Council approved an agreement with Core and Main, LP, for water meters, for a two-year period, with the option of up to two (2) one-year extensions. The Contractor has agreed to extend for one additional year at the same terms and conditions with a price increase. Core and Main, LP, was notified by its supplier manufacturers of price increases ranging from 11% to 45% on meter and meter-related parts. The supplier manufacturers cite cost increases based on the Producer Price Index on copper/brass and steel/iron materials, inflation in domestically sourced raw metal materials, and increases in the costs of freight and shipping as the cause of the increased prices. Staff reviewed the requested increase and finds it to be fair and reasonable based on inflation in these types of materials, which are used for meters and other meter parts. Staff recommends an extension of this agreement for the term of September 1, 2022, through August 31, 2023. This is the first extension of the original agreement. |
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Fiscal Impact |
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