Agenda Item
City Council
Item #: 3.41. 6/14/2022 File #: 22-0325
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Authorize purchase of water meters from Neptune Technology Group, Inc. as a sole source vendor.
2. SUMMARY
The Neptune Water Meter has been approved as the standard product in the City of Orange.
Neptune Meters are used exclusively to ensure meter reading compatibility with our water billing system. Approximately, 1,800 meters are replaced each year as part of an on-going meter replacement program. Staff is requesting the authorization to purchase replacement meters in the amount of $375,000 from Neptune Technology Group, Inc. during Fiscal Year 2022-2023.
3. RECOMMENDED ACTION
Approve the purchase of replacement water meters from Neptune Technology Group, Inc. in the amount of $375,000 for Fiscal Year 2022-2023.
4. FISCAL IMPACT
The total expenditure for this purchase is $375,000 and will be funded through:
Water Fund (600) $225,000
Meter Replacement Program (18102) $150,000
Total: $375,000
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. DISCUSSION AND BACKGROUND
The City has been using Neptune Technology Group, Inc. (Neptune) water meters and hand-held meter reading devices for the past 20 years. Neptune products have proven themselves dependable and have improved data collection speed and accuracy. These products have also facilitated data transfer to the water billing system. The City Council has previously authorized Neptune products and this sole source specification is a continuation of that policy.
Neptune products, which include water meters, remote read water meters, hand-held meter reading City of Orange Printed on 6/9/2022Page 1 of 2
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Item #: 3.41. 6/14/2022 File #: 22-0325
Neptune products, which include water meters, remote read water meters, hand-held meter reading equipment, and related software, are proprietary. Neptune uses specific data collection and transfer software and technology unique to its own specific applications. To ensure continued data collection compatibility for ongoing meter reading operations, the City purchases Neptune meters exclusively.
With approximately 36,000 meters in the system, the City has an ongoing need to replace meters as they break, become stuck, or need to be upgraded with more efficient radio read meters as water projects or developments are constructed. The City replaces approximately 1,800 meters annually as part of the meter replacement program. Additionally, the new meters allow for the automated method of gathering meter reads, consumption data, and other system information that will benefit water operations and customers.
The City has found that the most cost effective method for purchasing meters in volume is directly from Neptune. It is for these reasons that the Public Works Water Division is requesting this sole source purchase of water meters from Neptune Technology Group, Inc. Staff will continue to monitor both cost and alternative products to ensure the City is getting the best value available.
7. ATTACHMENTS
· None
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