Submitted By
John P. Wielebnicki, Public Works Director
Reviewed By
AMZ
Agenda Item Title
Title
A Resolution Approving a Water Meter and Water Meter Parts Purchase Agreement with Ferguson Enterprises Inc., d/b/a Ferguson Waterworks in an Amount Not to Exceed $901,741.30, Authorizing its Execution and Waiving the Village’s Bid Process for the Agreement
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Overview
Overview
This item is for the purchase of replacement water meters and water meter parts as part of the Public Works Departments 2021-22 Water Meter Changeout Program. This is primarily a purchase for replacement water meters in anticipation of a contractor installation program scheduled to start in Q4 2021. This item is in alignment with the Village Board goal to support its vibrant, diverse neighborhoods in an effort to continue to evaluate the Village’s water loss.
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Recommendation
Recommendation
Approve the Resolution.
Fiscal Impact
The purchase of these materials will be funded from the Fiscal Year 2021 Water and Sewer Fund Budget, Capital Improvements, account #5040-43750-781-570707 (50%) and #5040-43730-777-570707 (50%) which provides funds for the water meter replacements.
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 2021 Water & Sewer Fund Budget is the beginning of a water meter replacement program.
There are two components to the water meter replacement program. One is the Village purchasing the water meters and water meter parts. That is the intent of this item. The second component is to hire a contractor to install the water meters. That part is currently under development with it anticipated to bring contractor bids for that service to the Village Board later this fall.
The purpose of placing an order now for water meters ahead of the contract services is to take advantage of a lower price. By ordering now, the Village will save on the expected January 2022 increase of three percent (3%). That allows the Village to realize approximately $27,000.00 in savings. If ordered now, the Village has until April 2022 to have the materials shipped. This is not the complete order for the replacement program but it is the bulk of the order. This is more manageable than ordering all of the materials since storage could be an issue.
There are approximately 12,600 meters in the Villages 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. 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.
There are two parts to a water meter. The first is a brass housing that the water flows through and measures the water. The second part is called a Register Head. The second part is what records the flow of water to determine the volume that has been used by the customer. The Register Head also communicates to the Water Meter Reader employee who drives down the street and records the water used by customers. The readings are then provided to the Finance Department who proceeds with the billing of customers. The current style of replacement meters will allow the Village to transition from a ‘drive-by’ reading system to a ‘fixed-base’ reading system which will collect reads on a daily basis.
Staff recommends waiving the bid process for this purchase because Ferguson Waterworks is the only regional distributor of the Neptune water meter that the Village uses. 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.
Alternatives
The Board can delay action to gain additional information.
Previous Board Action
The Village Board has approved this supplier for water meter equipment in 2021 and previous years.
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
In 2022 staff will be looking at options to move towards an Advanced Metering Infrastructure system. This would also allow the Village and residents to know real time water usage, be notified of possible leaks and offer the possibility to move to bi-monthly or monthly billing.
Intergovernmental Cooperation Opportunities
There are no opportunities for intergovernmental cooperation for the purchase of these materials at this time.