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SR - - PURCHASE REPLACEMENT WATER METERS AS NEEDED FY 2017-20181. SUBJECT Purchase replacement water meters from Neptune Technology Group on a sole source "as needed" basis for FY 2017/2018. 2. SUMMARY Authorize the purchase of Neptune water meters for replacement purposes in an amount not to exceed $120,000. 13. RECOMMENDED ACTION Approve the purchase of Neptune water meters on an "as needed" basis from Neptune Technology Group in an amount not to exceed $120,000. 14. FISCAL IMPACT Funds are available to cover the cost of the purchases as follows: 600.8041.55470.00000 Meters $120,000 15. STRATEGIC PLAN GOAL(S) 1 Provide for a safe community: b. Provide and maintain infrastructure necessary to ensure the safety of the public. 2. Be a fiscally healthy community: d. Effectively manage and develop City assets. 3. Provide outstanding public service: b. Provide facilities and services to meet customer expectations. ITEM 3 • 1 1 02/14/17 1 6. GENERAL PLAN IMPLEMENTATION Infrastructure Element Goal 6.0: Ensure water, sewer, and storm drain systems that meet the needs of residents and businesses. Policy 1.1: Provide sufficient levels of water, sewer, and storm drain service throughout the community. Economic Development Element Goal 6.0: Provide sufficient infrastructure to support anticipated economic development and growth. Policy 6.1: Provide public improvements to support commercial, industrial and institutional uses. 17. DISCUSSION and BACKGROUND I The Water Division has been using Neptune water meters and hand -held water meter reading devices for the past eighteen years. Neptune products have proven themselves dependable and have improved data collection speed and accuracy. These products have also facilitated data transfer to the water billing system. In 1999, after five successful years of using Neptune products, the Division reviewed and researched all available hand -held meter - reading devices on the market and determined that Neptune continued to provide the most value for our investment. In 2005, the Division revisited the options available for hand -held meter - reading devices and remote read meters and again found Neptune to be the most cost effective. Neptune Technology Group products, including their water meters, remote read water meters, hand -held meter - reading equipment, and related software are proprietary. Neptune Technology Group uses specific data collection and transfer software and technology unique to its own specific applications. In order to ensure continued data collection compatibility for ongoing meter - reading operations, the City purchases Neptune meters exclusively. With approximately 35,000 meters in the system, the Water Division has a continued ongoing need to replace meters as they break, become stuck, or need to be upgraded with more efficient radio read meters as water projects or developments are constructed. The City has found that the most cost effective method for purchasing meters in volume is directly from Neptune Technology Group. In the summer of 2006, Neptune Technology Group agreed to provide the Division with their products directly without going through a distributor, thereby providing the most cost efficient method of obtaining Neptune products. It is for these reasons that the Water Division is requesting this sole source purchase of water meters from Neptune Technology Group. The Division will continue to monitor both cost and alternative available products to ensure that we are getting the best possible product and value available. 8. ATTACHMENTS . None ITEM 02/14/17 0)