03.29 Water Meters Purchase FY191. SUBJECT
Purchase replacement water meters from Neptune Technology Group (Neptune) as a sole source
on an "as needed" basis.
2. SUMMARY
Authorize the purchase of Neptune water meters for replacement purposes in an amount not to
exceed $350,000 per fiscal year.
3. RECOMMENDED. ACTION
Approve the purchase of Neptune water meters on an "as needed" basis from Neptune
Technology Group in the amount not to exceed $350,000 per fiscal year.
4. FISCAL IMPACT
The total expenditure for this purchase is $350,000 and will be funded through:
Meter Replacement Program (18102) Water Fund (600) $100,000
Operati Expenditures Water Fund (600) 250 ,000
Total: $350,000
5. 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.
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 20 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, the Division reviewed and researched all available hand -held
meter reading devices on the market and determined that Neptune provides 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 products, including their water meters, remote read water meters, hand -held meter
reading equipment, and related software, are proprietorial. Neptune uses specific data collection
and transfer software and technology unique to its own specific applications. To ensure
continued data collection compatibility for ongoing meter reading operations, the City purchases
Neptune meters exclusively. With approximately 36,000 meters in the system, the Water
Division has a need to replace meters as they break, become stuck, or need to be upgraded with
more efficient meters as water projects or developments are constructed. The City has found the
most cost effective method for purchasing meters in volume is directly from Neptune. Since
2006, Neptune has provided the Division with their products directly, without going through a
distributor, thereby ensuring the lowest cost. For these reasons, the Water Division is requesting
this sole source purchase of water meters from Neptune. The Division will continue to monitor
both cost and alternative available products to ensure that we are getting the best possible
products and value available.
18. ATTACHMENTS I
• None
ITEM
08/14/18
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