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A Resolution Approving A Purchase Price Agreement with Ferguson Enterprises LLC, d/b/a Ferguson Waterworks for Water Meters and Water Meter Parts in an Amount not to Exceed $212,000.00, Authorizing its Execution and Waiving the Village’s Bid Process for the Agreement
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Introduction
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This item is for the purchase of water meters for new construction, replacement water meters, water meter supplies and annual software license as part of normal operations and maintenance by the Public Works Department Water & Sewer Division. The metering equipment needs to be ordered in advance to ensure availability when needed by staff.
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Recommended Action
Adopt the Resolution.
Prior Board Action
The Village Board has approved funding for these materials as part of the Fiscal Year 2026 budget and has approved Purchase Price Agreements for these materials in the past.
Background
In an effort to strive for accurate reading of water usage and reduce non-revenue water loss, the Public Works Department continues the process of replacing older/obsolete water meters. Included in the Fiscal Year 2026 Water & Sewer Fund Budget is the purchase of water meters for new construction projects and the replacement of obsolete meters as they fail.
There are approximately 12,600 meters in the Village’s water system. The meters are necessary to record water usage for billing purposes. As meters age, they can become less accurate due to wear on the metering parts. Meters have an expected life of 15-20 years for accuracy purposes. Approximately 8,200 water meters were replaced in 2022. As meters age, they typically record less water usage than is being used, thus accounting for water usage that is not being billed.
The goal for 2026 is to service and upgrade larger diameter meters (2”, 3”, and 4” meters), which were not addressed with the Meter Changeout Program conducted in 2022. Village staff would be used to perform this work.
There are two parts to a water meter. The first is a cast metal housing made of lead-free copper alloy, through which the water flows, and measures the water. The second part is called a Register Head. The Register Head records the flow of water to determine the volume that has been used by the customer. The Register Head also communicates with the Water Meter Reading infrastructure installed around town and records the water used by customers. The readings are then provided to the Finance Department who proceeds with the billing of customers.
Staff recommends waiving the bid process for this purchase as Ferguson Waterworks is the sole source regional distributor of the Neptune water meter utilized by the Village. Neptune is the manufacturer of the meters that were purchased to start the previous change-out program in 2001 and is the preferred manufacturer of meters to complete the program to maintain continuity with the meters. Neptune has also served the water industry for over 120 years, starting in 1892, and is a leader in AMR (Automatic Meter Reading) technology’s effort to strive for accurate reading of water usage and reduce non-revenue water loss. The Public Works Department continues the process of replacing older/obsolete water meters. Included in the Fiscal Year 2026 Water & Sewer Fund Budget is the purchase of water meters for new construction projects and the replacement of obsolete meters as they fail.
Timing Considerations
Adoption of the Resolution at this time will allow for the procurement of equipment and materials in 2026.
Budget Impact
The purchase of these materials will be funded from the Fiscal Year 2026 Water and Sewer Fund Budget, Capital Improvements, account #5040-43750-781-570707, $78,500.00 and #5040-43730-777-570707, $78,500.00 which provides funds for the water meters. Water & Sewer Fund Budget, External Support, account #5040-43730-777-530667 ($55,000.00) which provides funds for annual software maintenance.
Operating Impact
There is no operating impact associated with this item. The item aligns with the department’s core service delivery.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Adopt the Resolution.
Advantages:
• This proposed resolution provides for the purchase of necessary water metering equipment and supplies.
Disadvantages:
• This action requires the expenditure of Village Funds.
Alternatives
Alternative 1:
The Board can table the item for additional information or discussion.
Advantages:
• The requested information would be presented to the Board.
Disadvantages:
• Needed materials cannot be procured until an agreement is in place.
Alternative 2:
The Board can reject the resolution.
Advantages:
• There are no advantages to this action.
Disadvantages:
• Aging water meters will not be replaced, resulting in inaccurate meter readings.
Anticipated Future Actions
It is anticipated that the Public Works Department will continue to request Village Board approval for the purchase of water meters and water meter supplies in the future.
Prepared By: Rob Sproule, Public Works Director
Reviewed By: Jack Malec, Assistant to the Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Purchase Price Agreement
3. Supporting Documents