Title
MOTION TO APPROVE AN AGREEMENT FOR THE PURCHASE OF NEPTUNE WATER METERS, EQUIPMENT AND SOFTWARE, ON AN AS-NEEDED BASIS, FROM THE SOLE SOURCE PROVIDER, FERGUSON ENTERPRISES LLC., IN AN AMOUNT NOT TO EXCEED $1,440,000 FOR AN INITIAL 2-YEAR TERM, PURSUANT TO SECTION 35.18(C)(3) OF THE CITY’S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City's Code of Ordinances is titled "PROCUREMENT PROCEDURES, PUBLIC FUNDS."
- Section 35.18 of the City's Code of Ordinances is regarding "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(A) of the City's Code of Ordinance, "A purchase of or contracts for commodities or services that is estimated by the Chief Procurement to cost more than $100,000 shall be based on sealed competitive solicitations as determined by the Chief Procurement Officer."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(3) of the City's Code of Ordinances, "City Standard, single-source and sole-source commodities or services. City standard, single-source and sole-source commodities or services are exempt from competitive bidding."
-Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $100,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The City of Pembroke Pines Utilities Department utilizes residential water meters manufactured by Neptune Technology Group Inc. (“Neptune”) throughout the City. The City’s service provider and contractor, Jacobs/OMI, is expected to replace approximately 2,000 water meters annually.
2. Approximately 73% of the City’s existing water meters are equipped with Neptune drive-by Automated Meter Reading (AMR) technology.
3. To maintain compatibility with the City’s existing meter reading infrastructure, the Utilities Department recommends continuing to utilize Neptune water meters and associated equipment and software. Maintaining the existing Neptune platform will support reliable consumption measurement, meter reading, billing, and payment processing while avoiding compatibility issues associated with transitioning to a different manufacturer.
4. Neptune has provided a letter stating that Ferguson Enterprises LLC (“Ferguson”) is the sole authorized Neptune distributor for resale in the State of Florida. Ferguson has provided the City with a price list for Neptune water meters, equipment, and software.
5. The City has negotiated an agreement with Ferguson for an initial two (2) year term. The Agreement provides for two (2) additional two-year renewal periods. Unit pricing set forth in Exhibit "A" will be held firm for the first year of the initial term and will thereafter be subject to annual adjustments on each anniversary date of the Agreement based on the Consumer Price Index (CPI), not to exceed three percent (3%) annually.
6. Recommend City Commission approve an agreement with Ferguson Enterprises LLC for the purchase of Neptune water meters, equipment, and software, on an as-needed basis, as the sole authorized Neptune distributor in the State of Florida, in an amount not to exceed $1,440,000 in the 2-year term, pursuant to Section 35.18(C)(3) of the City’s Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $1,440,000 for the 2-year contract term
b) Amount budgeted for this item in Account No: $700,000 in Account no. 471-533-6032-552651-0000-000-0000- (Non-capital Meters) and $70,000 in Account no. 471-536-6010-552652-0000-000-0000- (Non-capital Software & License)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5-year projection of the operational cost of the project
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|
FY 2027 |
FY 2028 |
Year 3 |
Year 4 |
Year 5 |
|
Revenues |
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|
|
|
|
|
Expenditures |
$700,000 |
$740,000 |
|
|
|
|
Net Cost |
$700,000 |
$740,000 |
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e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable