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HomeMy WebLinkAboutPR 21111: PURCHASE OF 4,000 ITRON ERT'S City of - war ort rthu� INTEROFFICE MEMORANDUM Date: October 10, 2019 To: The Honorable Mayor and City Council Through: Ron Burton, Interim City Manager From: Donald Stanton, Interim Director of Water Utilities RE: PR 21111 —Purchase of 4,000 Itron ERT's Introduction: The intent of this Agenda Item is to seek City Council's approval for City Manager to purchase 4,000 residential and small commercial water meter electronic transmitters. Transmitters are sole source from Itron through Republic Meter Inc, of Dallas, Texas. The total price for these transmitters is $276,000.00 and will be charged to Water Utilities Dept., Water Distribution Div., Account No. 410-1253-532.35-00, Water System Maintenance. Another funding source is the Harvey account, 147-2300-901.35-00, split whether to replace those damaged in Harvey or for new service. Background: This procurement is exempt from the bid process under Texas Local Government Code Section 252.022, (a) (7) (D), captive replacement parts or components for equipment. The transmitters are from a sole-source vendor,the letter is attached. Budget Impact: This equipment will cost $276,000.00 and will be maintained in our warehouse inventory until installation. The equipment is to be charged to the Water Utilities Dept., Water Distribution Div., Account No. 410-1253-532.35-00, Water System Maintenance, and Harvey Account No. 147- 2300-901.35-00. Recommendation: It is recommended that City Council approve PR 21111, allowing City Manager to purchase residential and small commercial water meter electronic transmitters. "Remember,we are here to serve the Citizens of Port Arthur" P. R. No. 21111 10/10/19 bw Page 1 of 3 RESOLUTION NO. A RESOLUTION AUTHORIZING THE PURCHASE OF 4,000 ITRON ELECTRONIC METER TRANSMITTERS FOR WATER UTILITIES DEPARTMENT FROM REPUBLIC METER, INC. OF DALLAS, TEXAS, WITH A TOTAL PROJECTED BUDGETARY IMPACT OF $276,000.00. FUNDS ARE AVAILABLE IN WATER UTILITIES/WATER DISTRIBUTION, ACCOUNT NO. 410-1253-532.35-00, WATER SYSTEM MAINTENANCE, AND HARVEY ACCOUNT NO. 147-2300-901.35-00. WHEREAS,the purchase of electronic transmitters is needed to address the current Encoder receiver transmitter(ERT) failures and projected replacement needs; and, WHEREAS, additional electronic transmitters, which are used for the City's residential and small commercial water meters, are to be available as needed for new installations; and, WHEREAS, the City standard for these transmitters is Itron transmitters; and, WHEREAS, staff currently projects this number of transmitters to meet the needs of operations for approximately 12 months; and, WHEREAS, the current distributor and sole source for our area is Republic Meter, Inc., of Dallas, Texas (see Exhibit"A"); and, WHEREAS, this purchase is authorized by Procurement Policies and Procedures Section 3-105 Sole Source Procurement, b) Compatibility—The product must match an existing brand of equipment for compatibility and is available from only one supplier; and, WHEREAS, this procurement is exempt from the bid process under Texas Local Government Code Section 252.022, General Exemptions (a)(7) (D), captive replacement parts or components for equipment; and, P. R. No. 21111 10/10/19 bw Page 2 of 3 WHEREAS, the sole source for bids has been evaluated by Water Utility Operations and Purchasing (quote sheet attached as Exhibit"B"). NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, the City Manager of City of Port Arthur is hereby authorized and directed to purchase 4,000 Electronic Transmitters from Republic Meter, Inc., of Dallas, Texas, in the total amount of$276,000.00; and, THAT,funding for this material is to be charged to 410-1253-532.35-00 and Harvey 147- 2300-901.35-00; and, THAT,a copy of the caption of this resolution be spread upon the minutes of City Council. READ,ADOPTED,AND APPROVED THIS day of ,2019, at a Regular Meeting of City Council of City of Port Arthur, Texas, by the following vote: AYES: Mayor ; Councilmembers: NOES: Thurman"Bill" Bartie Mayor • P. R. No. 21111 10/10/19 bw Page 3 of 3 ATTEST: APPROVED FOR ADMINISTRATION: Sherri Bellard Ron Burton, City Secretary Interim City Manager APPROVED AS TO FORM: V � Q /. Lig,. Valecia Tizeno Clifton " illiams, CPPB City Attorney Purchasing Manager Donald Stanton Interim Director of Water Utilities APPROVED AS TO THE AVAILABILITY OF FUNDS: Kandy Daniel Interim Director of Finance EXHIBIT "A" (Sole Source Letter) Itron Knowledge to Shape Your Future October 18, 2019 Marolean Blanchette City of Port Arthur 111 W.H.O. Miles Blvd. Port Arthur, Texas 77641 (409)983-8562 Dear Marolean: Please accept this letter as verification that Republic Meter, Inc is the sole source Authorized Itron Distributor for all of the Itron products including: 100W+radio devices, Itron software, and other Itron parts for the City of Port Arthur,TX. If you have any questions, please do not hesitate to call on me. Best Regards, Todd M. Miller Account Executive- Itron 214-738-3081 2111 North Molter Road tel 509-924-9900 Liberty Lake,WA 99019 fax 509-891-3355 www.itron.com toll-free 800-635-5461 P. R. No.21111 10/10/19 bw Page 6 of 3 EXHIBIT "B" (Quote) Republic Meter Inc. Quote L.- 3839 McKinney Ave, Suite 155-218 Dallas,TX 75204 )( (214) 215-2224 accounting@republicmeter.com ADDRESS SHIP TO Rhonda Standberry Rhonda Standberry City of Port Arthur City of Port Arthur PO BOX 1089 111 W H.O. Mills Blvd. Accounts Payable (Water Water Warehouse Warehouse) Port Arthur, TX 77641 Port Arthur,Texas 77641 QUOTE# DATE EXPIRATION DATE 19-1696 10/10/2019 09/30/2020 SHIP VIA Ground ACTIVITY QTY RATE AMOUNT ERW-1300-402 4,000 69.00 276,000.00 100W+, Encoder with Integral Connector& Antenna Connector FOB. Pricing Good till September 30,2019. TOTAL $276,000.00 Accepted By Accepted Date