ATTACHMENT A
RESOLUTION NO. VWD 25-009
RESOLUTION NO. VWD 25-009
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
VICTORVILLE WATER DISTRICT WAIVING COMPETITIVE BIDDING
REQUIREMENTS PURSUANT TO VICTORVILLE MUNICIPAL CODE
SECTION 2.28.230 AND AUTHORIZING PROCUREMENT OF THE
ADVANCED METERING INFRASTRUCTURE (AMI) NETWORK
INSTALLATION PROJECT BY MEANS OF DIRECT SOLICITATION
AND NEGOTIATION WITH FERGUSON ENTERPRISES, LLC
WHEREAS, the Victorville Water District (the “ District”), is a California County Water District, and a subsidiary district of the City of Victorville (the “City”); and
WHEREAS, the District constructs, owns, operates, improves, and maintains the water system and related facilities that provide water service to over 30,000 customers in the City; and
WHEREAS, recognizing the need to modernize its water metering system to improve operational efficiency and replace aging meters that had been in place for nearly 20 years , the District previously partnered with Ferguson Enterprises, LLC (“Ferguson LLC”), to implement a comprehensive meter replacement program, installing over 36,000 Neptune Technology smart meters employing Automated Meter Reading (“AMR”); and
WHEREAS, Ferguson Waterworks (a division of Ferguson LLC) is the sole distributor of Neptune water meters, reading systems, parts, networks, and proprietary software in California ; and
WHEREAS, the District’s long -term strategic goal is to transition from AMR to an Advanced Metering Infrastructure ( “AMI”) system to enable real -time, automated data transmission from meters directly to the central system, thus enhancing customer service, facilitating proactive leak detection, and increasing billing accuracy; and
WHEREAS, the final step in transitioning from AMR to AMI requires completing the fixed network design, installing elevated towers, mounting Gateway Data Collectors, integrating necessary IT infrastructure system testing, and providing staff training; and
WHEREAS, because said final step requires integration of the District’s existing Neptune meters, proprietary software, and related equipment with the installation of the fixed network infrastructure, the District solicited a quote for AMI Project No. CC 15-035 (now Project No.
ESC25-035, hereinafter the “Project”), directly from Ferguson Waterworks, and
WHEREAS, based upon said quote, District staff negotiated and prepared a Construction and Professional Services Provider Agreement with Ferguson LLC to complete the Project (hereinafter the “Ferguson Agreement”); and
WHEREAS, Chapter 2.28 of the Victorville Municipal Code (“ VMC”) establishes standards and procedures applicable to the purchase and procurement of supplies, equipment, consultant/professional services, and public works construction projects; and
WHEREAS, VMC Section 2.28.012(b) generally makes Chapter 2.28 of the VMC applicable to the District; and
WHEREAS, the Ferguson Agreement not only contemplates the provision of equipment and professional services, but has a significant public works component as well; and
WHEREAS, VMC Section 2.28.050(17) defines a “Sole Source Purchase” as “unique services, and/or supplies and equipment that can be obtained from only one vendor, or one distributor authorized to sell in this area, with singular characteristics or performance capabilities or which have specific compatibility components with existing city products, rendering bidding or quotation requirements futile or meaningless”; and
WHEREAS, VMC Section 2.28.050(13) defines a “Technology Product" as “hardware, software, or communications equipment; or related equipment or goods which incorporate any such items”; and
WHEREAS, VMC Section 2.28.100(b)(2) permits the purchase of supplies and equipment without utilizing competitive bidding procedures “ where it is determined that such procurement constitutes a Sole Source Purchase” and VMC Section 2.28.110(d) further permits such a purchase to be made through solicitation and negotiation directly with the Sole Source when a Technology Product is involved; and
WHEREAS, Article IV of VMC Chapter 2.28 (“Article IV”) establishes the standards and procedures applicable to the procurement of public works contracts; and
WHEREAS, Section 2.28.210 of Article IV states that except as otherwise provided therein, public works projects with an estimated cost of more than five hundred thousand dollars, shall be let to contract using specified formal bidding procedures; and
WHEREAS, Section 2.28.230(a) of Article IV provides that the Board of Directors of the District (“District Board”), may waive the bidding requirements of Article IV by finding that one or more of the circumstances set forth in said Section exist and setting forth in a resolution the facts and circumstances supporting its determination that one or more of the bidding exceptions in Section 2.28.230(a) apply; and
WHEREAS, Section 2.28.230(b) of Article IV requires such resolution to be adopted by a 4/5 vote and to specify the manner in which such public works project shall be procured; and
WHEREAS, the provisions of VMC Section 2.28.230(a)(1), (a)(2), and (a)(3) respectively permit waiver of competitive bidding when: “limitations on the source or the scope and nature of the contract are such that no more than one contractor is available to meet the technical specifications and/or quality considerations of the project ”; “the work is of a highly specialized nature”; and “there would be no competitive advantage to requiring bidding for the contract”; and
WHEREAS, based on the above Recitals and the Staff Report accompanying the Agenda Item requesting approval of the Ferguson Agreement, the District Board finds that : because Ferguson LLC is the Sole Source vendor for many of the Technology Products that must be integrated into the AMI Project and further because its particular expertise is needed to ensure that the fixed network once installed functions properly with the District’s existing meters, software, and endpoints, the circumstances listed in VMC Sections 2.28.230(a)(1), (a)(2), and (a)(3) are met; and
WHEREAS, as such findings, together or independently support the waiver of its customary public works bidding procedures, the District Board wishes to authorize the procurement of the Project by means of the directly negotiated Ferguson Agreement.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE VICTORVILLE WATER
DISTRICT DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Recitals and Findings.
That the Recitals and findings set forth above are true and correct and are hereby made an operative part of this Resolution by this reference, including any definitions set out therein.
Section 2. Bidding Requirements Waived.
That the District’s customary bidding requirements applicable to the letting of public works construction contracts for projects with an estimated cost of more than five hundred thousand dollars, as set forth in VMC Section 2.28.210, are hereby waived with respect to the Ferguson Agreement in accordance with Section 2.28.230 of the VMC , based on the Recitals and findings set forth herein.
Section 3. Procurement Authorized through Negotiated Contract.
That direct solicitation and negotiation with Ferguson LLC for installation and completion of the Project is authorized.
Section 4. Effective Date.
That this Resolution shall take effect immediately upon its adoption.
Section 5. Certification.
That the District Secretary shall certify to the passage and adoption of this Resolution by a 4/5 vote of the District Board.