To: Mark R. Hafner, City Manager
From: Aaron Rector, Director of Administrative Services
Subject:
Title
Consider a resolution approving a contract with Core and Main LP for Neptune water meters and accessory components, for the Utility Billing Department, for a one-year period, with the option to extend unit prices for four (4) additional one-year renewals, not to exceed a period of five (5) years; declaring that in accordance with the Texas Local Government Code Chapter 252.022. General Exemptions. (a) (7), Core and Main LP., qualifies as a sole-source provider /distributor for water meters and accessory components; and authorizing the City Manager to execute all contract documents relating thereto on behalf of the City of Keller, Texas.
Action Requested:
Consider a resolution authorizing the City Manager to execute a contract for unit pricing for water meters and accessory components for a one-year period, with the option to extend unit pricing for four (4) additional one-year periods.
Background:
Water meters are an essential part of the operations of the Water and Wastewater Fund. Monthly water bills are based on the amount of water used by customers, as measured by the water meters. The recommended useful life of a 5/8-inch by 3/4-inch water meter is approximately ten (10) years. With over 15,500 water meters in use, it is necessary for the City to replace about 1,550 water meters every year, in addition to installing water meters for new development.
The City's water meters and meter reading technology are not compatible with other types of meter manufacturers or meter reading systems. Because water meters used by the City contain technology that is compatible with only Neptune meter reading equipment, this contract meets the sole source bidding exception.
The City purchases water meters and accessories on an as needed basis throughout the year, thus the contract provides amounts for unit prices, rather than an annual not to exceed amount. Additionally, the contract provides for optional renewals each year, not to exceed five (5) years.
Financial Impact:
The 2021-22 Water and Wastewater budget provides a total of $389,143 for purchase/replacement of water meters. Monthly water bills are based on the amount of water used by customers, as measured by the water meters. Water revenues generate approximately 69.1% of the total revenues in the Water and Wastewater Fund. In addition, monthly wastewater charges are also based on water consumption.
Citizen Input/Board Review:
N/A
Legal Review:
N/A
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
City Council approval of resolution as presented.