(25)AR 081908 Purchase of AMR Water Readers

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ITEM #27 CITY OF COLTON AGENDA REPORT FOR THE CITY COUNCIL AND COLTON UTILITY AUTHORITY MEETING OF AUGUST 19, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL, HONORABLE CHAIRPERSON AND UTILITY AUTHORITY MEMBERS FROM: ERIC R. FRASER, DIRECTOR OF WATER & WASTEWATER OPERATIONS SUBJECT: WAIVER OF COMPETITIVE BIDDING AND AWARD OF SOLE SOURCE TO HD SUPPLY WATERWORKS FOR THE PURCHASE OF AMR WATER METERS EQUIPPED WITH AUTOMATIC METER READING IN AN AMOUNT NOT -TO - EXCEED $105,000. DATE: August 7, 2008 BACKGROUND: In Fiscal Year 02/03 the City of Colton implemented a Meter Replacement Program to replace all meters over ten years old. By replacing the old meters it has reduced the amount of unaccounted water in our system and ensures that all customers pay for the water they use on an equal basis. The City currently has over 10,000 water meters in service. The City is currently working on a replacement program to replace all existing water meters with upgraded radio read meters. Most meters currently in operation are not equipped with remote read capabilities. This feature has been included in the new purchase. This new technology will allow water meters to be read remotely from a vehicle with a great deal of increased accuracy and speed., it would be in the best interest of the City to continue to convert to the AMR (Automated Meter Reading) meters. The City has purchased and installed approximately 1,000 AMR water meters. DISCUSSION/ANALYSIS: In order to keep uniformity in the City's Meter Replacement Program and due to the software investment the City has made Staff is recommending the City continue with the AMR Meters. Diligent effort was made to solicit bidders for the AMR (Automated Meter Reading) meters and found that HD Supply Waterworks is the only vendor who sells the AMR Water Meters. Master Meter and The B.E.S.T. Meter Company sell the AMR Water Meters, but are the Distributors/Suppliers to HD Supply Waterworks. The Colton Municipal Code, Title 3, Chapter 3.08.140(b) "States in part that competitive bidding is not required when the City Council determines, in accordance with applicable law, that a competitive market does not exist, and that no competitive advantage will be gained by the public bidding process." Therefore, City Staff respectfully requests that City Council ratify the City Manager's waiver of competitive bidding, and award the purchase of AMR meters to HD Supply Waterworks in an amount not -to -exceed $105,000.