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Home My WebLink About2023-12-05; Municipal Water District; ; Accepting of Bids and Awarding a Master Purchase Agreement to Badger Meter, Inc. for the Purchase of Water MetersCA Review GH Meeting Date: Dec. 5, 2023 To: President and Board Members From: Scott Chadwick, Executive Manager Staff Contact: Andrew Wilson, Utilities Superintendent andrew.wilson@carlsbadca.gov, 442-339-2325 Eric Sanders, Utilities Manager eric.sanders@carlsbadca.gov, 442-339-2361 Subject: Accepting of Bids and Awarding a Master Purchase Agreement to Badger Meter, Inc. for the Purchase of Water Meters Districts: All Recommended Action Adopt a resolution accepting bids and awarding a master purchase agreement to Badger Meter, Inc. for the purchase of water service meters in an amount not to exceed $150,000 per agreement year. Executive Summary Water meters are installed at the properties of all Carlsbad Municipal Water District customers to measure their water consumption for billing purposes. These meters ensure accurate water accounting and revenue collection to recover the cost of providing safe and reliable drinking and recycled water to CMWD customers. Some of these meters are nearing the end of their useful life and will need to be replaced. Staff are requesting the City Council’s approval of a master purchase agreement for water meters to ensure CMWD can maintain enough water meter inventory to cover new installations and replacements when they are needed.1 With this agreement, the district can purchase water meters as needed from the distributor, with the costs not to exceed $150,000 in each year of the agreement. The previous master purchase agreement for meters ended near the end of fiscal year 2022-23, so staff are requesting CMWD Board approval of a new agreement. The City Council’s approval is required by Carlsbad Municipal Code Section 3.28.050 - Procurement of Goods because the cost to the city could be more than $100,000 per agreement year. 1 A master purchase agreement is a contract that establishes the terms and conditions under which the city will purchase goods or services. Dec. 5, 2023 Item #7 Page 1 of 12 Explanation & Analysis CMWD staff published a notice requesting bids for several sizes of domestic service cold water meters on July 10, 2023. The district received five bids on Aug. 8, 2023. Staff have reviewed the bids and completed a best-value evaluation in keeping with Carlsbad Municipal Code Section 3.28.050. Each supplier’s bid was evaluated against the following criteria: • Cost • Responsiveness to specifications • Unspecified value-added offerings • Delivery processing time • Experience/past performance with other clients Based on the sizes of the water meters requested and CMWD’s overall criteria, Badger Meter, Inc. received the highest best-value score for all meter sizes. The water meters currently used across the CMWD’s service area were installed at varying times, made by various manufacturers and have varying useful lives. Staff’s research indicates that the meters provided by Badger Meters will last longer than the meters that were previously installed. The initial term of the master purchase agreement is for two years, and the Executive Manager may amend the agreement for three additional one-year terms for a total maximum term of five years, in an amount not to exceed $150,000 per agreement year. Staff recommend the CMWD Board adopt a resolution accepting the bids and awarding a master purchase agreement to Badger Meter, Inc. for the purchase of domestic service cold water meters in an amount not to exceed $150,000. Fiscal Analysis There is approximately $170,000 remaining unencumbered, that is, not dedicated to a specific expense, in the FY 2023–24 budget for water meters and related purchases. With the CMWD Board’s approval and the execution of the agreement, staff will encumber a portion of these funds for buying water meters from Badger Meter, Inc. for the current fiscal year. (The remaining budget will be used for high-flow meters, radio transmitters that allow for remote data collection and hardware accessories from other vendors.) The maximum annual amount of the agreement is $150,000. Some expenditures toward that $150,000 will be paid for by the budget remaining in the current fiscal year’s budget and some are to be covered by the FY 2024-25 budget once it is approved. The agreement does not require CMWD to purchase meters for the full contract amount. CMWD staff monitor meter inventory levels purchase new meters only as needed to ensure there enough meters for the system’s operations. The remaining funds in the budget will be used for high-flow meters, radio transmitters that allow for remote data collection and hardware accessories from other vendors. Dec. 5, 2023 Item #7 Page 2 of 12 Next Steps Upon adoption by the CMWD Board and once the agreement is fully executed, staff will issue a purchase order and purchase meters for new installations and replacements as necessary. Environmental Evaluation This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.. Exhibit 1. CMWD Board resolution Dec. 5, 2023 Item #7 Page 3 of 12 RESOLUTION NO. 1720 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, ACCEPTING THE BIDS AND AWARDING A MASTER PURCHASE AGREEMENT TO BADGER METER, INC. FOR THE PURCHASE OF WATER SERVICE METERS IN AN AMOUNT NOT TO EXCEED $150,000 PER AGREEMENT YEAR WHEREAS, the Carlsbad Municipal Water District, or CMWD, Board of Directors of the City of Carlsbad, California has determined that it is necessary, desirable and in the public interest to purchase and replace water meters and provide new meters to its customers when necessary; and WHEREAS, on July 10, 2023, the city published a notice requesting bids for multiple sizes of water meters; and WHEREAS, on Aug. 8, 2023, five bids were received; and WHEREAS, per Carlsbad Municipal Code Section 3.28.050, CMWD staff reviewed the bids and completed a best-value evaluation; and WHEREAS, Badger Meter, Inc. received the highest best-value score for all meter sizes; and WHEREAS, staff recommend award of a master purchase agreement with Badger Meter, Inc. as the provider of the water meters; and WHEREAS, the initial term of the master purchase agreement is for two years, and the Executive Manager may amend the agreement for three additional one-year extensions for a total maximum term of five years, in an amount not to exceed $150,000 per agreement year; and WHEREAS, the City Planner has determined that pursuant to California Public Resources Code Section 21065, this action does not constitute a "project" within the meaning of the California Environmental Quality Act in that it has not potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore does not require environmental review. NOW, THEREFORE, BE IT RESOLVED by the CMWD Board of the City of Carlsbad, California, as follows: 1.That the above recitations are true and correct. 2.That the President of the Board is hereby authorized and directed to execute the master purchase agreement with Badger Meter, Inc. to provide for the purchase of water meters in an amount not to exceed $150,000 annually, attached as Attachment A. Exhibit 1 Dec. 5, 2023 Item #7 Page 4 of 12 3.That the Executive Manager may amend the Master Purchase Agreement with Badger Meter, Inc. for three additional one-year terms after the initial two-year term, in an amount not to exceed $150,000 per agreement year. PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 5th day of December, 2023, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: Blackburn, Bhat-Patel, Acosta, Burkholder, Luna. None. None. None. KEITH BLACKBURN, President SHERRY FREISINGER, Secretary (SEAL) Dec. 5, 2023 Item #7 Page 5 of 12 DocuSign Envelope ID: CC7FD793-88FF-4DD9-9863-5FC27 4BFA582 MPA24-2331UTIL EXHIBIT "A" TABLE 1 COST OF SERVICES Domestic service cold water meters price sheet. *Unit prices include all costs including shipping and tax@ 7.75%. ITEM UNIT DESCRIPTION UNIT NO. PRICE 1 EA 5/8" x 3/4" x 7 ½" E-Series Ultrasonic Meter $212.20 2 EA 3/4" x 3/4" x 9" E-Series Ultrasonic Meter $246.60 3 EA 3/4" x 3/4" x 7 1/2" E-Series Ultrasonic Meter $231.65 4 EA 1" x 10 3/4" E-Series Ultrasonic Meter $269.41 5 EA 1 1/2" x 13" E-Series Ultrasonic Meter $615.10 6 EA 2" x 17" E-Series Ultrasonic Meter $821.97 7 EA 1 1/2" x 13" Turbo Series T-160 Turbine Meter $1,128.03 8 EA 2" x 17" Turbo Series T-200 Turbine Meter $1,266.82 TOTAL NOT TO EXCEED PER AGREEMENT YEAR* $150,000 Bidder's Stated Delivery Time Delivery: 180 business days after receipt of order. Specifications and General Provisions Specifications and general provisions as published in the Request for Bid Number RFB24-2225UTIL dated July 10, 2023, titled "Domestic Service Cold Water Meters," and the Contractor's bid submitted are incorporated herein by this reference. Dec.5,2023 TABLE 2 Spending authority will not exceed $300,000 over a 2 year period. Year 1 2 Page 7 Spending Authority $150,000 $150,000 General Counsel Approved Version 5/25/2023 Item #7 Page 12 of 12