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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 $250,000.00, 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 an 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 2025 budget and has approved Purchase Price Agreements for these materials in the past
Background
In an effort to strive for accurate readings 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’s 2025 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 will typically record less water usage than actually is being used thus accounting for water usage that is not being billed.
The goal for 2025 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 consisting of lead-free copper alloy that the water flows through 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 recommend 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.
Timing Considerations
Adoption of the Resolution at this time will allow for the procurement of equipment and materials in 2025.
Budget Impact
The purchase of these materials will be funded from the Fiscal Year 2025 Water and Sewer Fund Budget, Capital Improvements, account #5040-43750-781-570707, $100,000.00 and #5040-43730-777-570707, $100,000.00 which provides funds for the water meters. Water & Sewer Fund Budget, External Support, account #5040-43730-777-530667 ($50,000.00) which provides funds for annual software maintenance.
Staffing Impact
This proposed item is a core service responsibility of the Public Works Department. Staffing impact for purchasing is minimal.
DEI Impact
There is no DEI Impact. This is a sole source vendor.
Community Input
There is no community input on a purchase price agreement.
Staff Recommendation
Adopt the Resolution.
Advantages:
• The proposed resolution provides for the purchase of necessary water metering equipment and supplies.
Disadvantages
• No Disadvantages
Alternatives
1. The Board can table the item for additional information or discussion.
Advantages:
• The Board would be presented with the additional information they request.
Disadvantages:
• Staff cannot procure these materials until an agreement is in place.
2. The Board can vote down the item.
Advantages:
• No Advantages - These meters are necessary equipment.
Disadvantages:
• Staff will be unable to procure water meters or water meter repair supplies as the vendor is the sole source provider
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: Ahmad M. Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution
2. Purchase Price Agreement
3. Supporting Contract Documents