HomeMy WebLinkAbout89-25 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 89-25 File Number: 2025-374 HENARD UTILITY PRODUCTS, INC. (PURCHASE AGREEMENT): A RESOLUTION TO APPROVE THE PURCHASE OF 1,300 BADGER CELLULAR WATER METERS IN THE AMOUNT OF $642,250.00 FROM HENARD UTILITY PRODUCTS, INC. PLUS ANY APPLICABLE TAXES AND FREIGHT CHARGES, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the Utilities Department has been installing AMI meters, or "smart" meters in the City's water distribution system over the past few years; and WHEREAS, due to the increasing growth of the City, the Utilities Department is utilizing the biggest part of the current meter budget on new services, which leaves an extremely small inventory remaining to address failing meters; and WHEREAS, the Utilities Department recommends purchasing 1,300 smart meters to increase the number of smart meters available for installation in 2025. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the purchase of 1,300 Badger cellular water meters in the amount of $642,250.00 from Henard Utility Products, Inc. plus any applicable taxes and freight charges. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, to allow for the purchase of additional smart meters in late 2025 if the need arises. PASSED and APPROVED on April 1, 2025 Approved: Attest: .y� ov;RKnrvsP •• �` ........... .N. Molly Rawn, Mayor Kara Paxton, City Clerk Treasurer Page 1 CITY OF FAYETTEVILLE ARKANSAS MEETING OF APRIL 1, 2025 CITY COUNCIL MEMO TO: Mayor Rawn and City Council THRU: Keith Macedo, Interim Chief of Staff FROM: Tim Nyander, Utilities Director SUBJECT: HENARD UTILITY PRODUCTS, INC. (PURCHASE AGREEMENT): RECOMMENDATION: 2025-374 Staff recommends approval of the purchase of 1,300 Badger cellular water meters from Henard Utility Products, Inc. in the amount of $642,250.00 plus applicable taxes and freight charges, and approval of a budget adjustment. BACKGROUND: Over the past few years, the Utilities Department has been installing AMI meters, or "smart" meters in the City's water distribution system. Smart meters can be read through the cloud and reduces truck rolls. Eventually, the customer will be able to monitor their individual water meter. Smart meters can also assist in leak detection and water loss reduction. On January 3, 2023, the City Council passed Ordinance 6634 which waived the requirement of formal competitive bidding for water meters and other equipment needed by the Utilities Department. DISCUSSION: Due to the increasing growth of the City, the Utilities Department are utilizing the biggest part of the current meter budget on new services. This leaves an extremely small inventory remaining to address the failing meters. This additional order will increase the number of smart meters available for installation in 2025. Freight is included within the quoted pricing and taxes are estimated at $62,619.38 for a total estimated cost of $704,869.38. BUDGET/STAFF IMPACT: Funds will be moved from the Water Tank Improvements account to the Water Meters account to cover the cost of this purchase. The budget adjustment in the amount of $800,000.00 will allow for other additional smart meter purchases in late 2025 if the need arises. ATTACHMENTS: SRF (#3) , BA (#4), Quote from Henard Utility Products (#5) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2025-374 HENARD UTILITY PRODUCTS, INC. (PURCHASE AGREEMENT): A RESOLUTION TO APPROVE THE PURCHASE OF 1,300 BADGER CELLULAR WATER METERS IN THE AMOUNT OF $642,250.00 FROM HENARD UTILITY PRODUCTS, INC. PLUS ANY APPLICABLE TAXES AND FREIGHT CHARGES, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the Utilities Department has been installing AMI meters, or "smart" meters in the City's water distribution system over the past few years; and WHEREAS, due to the increasing growth of the City, the Utilities Department is utilizing the biggest part of the current meter budget on new services, which leaves an extremely small inventory remaining to address failing meters; and WHEREAS, the Utilities Department recommends purchasing 1,300 smart meters to increase the number of smart meters available for installation in 2025. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the purchase of 1,300 Badger cellular water meters in the amount of $642,250.00 from Henard Utility Products, Inc. plus any applicable taxes and freight charges. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, to allow for the purchase of additional smart meters in late 2025 if the need arises. Page 1 Tim Nyander Submitted By City of Fayetteville Staff Review Form 2025-374 Item ID 4/1/2025 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 3/13/2025 WATER SEWER (720) Submitted Date Division / Department Action Recommendation: Staff recommends approval of the purchase of 1,300 Badger cellular water meters from Henard Utility Products, Inc. in the amount of $642,250.00 plus applicable taxes and freight charges, and approval of a budget adjustment. 5400.720.1840-5811.00 Account Number 02065.1 Project Number Budgeted Item? Yes Does item have a direct cost? Yes Is a Budget Adjustment attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Budget Impact: Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Water & Sewer Fund Water Meters Project Title $ 1,127,645.00 $ 731,633.13 396,011.87 $ 704,869.38 $ 800,000.00 e. 491,142.49 Previous Ordinance or Resolution # Approval Date: V20221130 Comments: Freight is included within the quoted pricing and taxes are estimated at $62,619.38 for a total estimated cost of $704,869.38. City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number WATER SEWER (720) /Org2 2025 Requestor: Cheryl Partain BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Staff recommends approval of the purchase of 1,300 Badger cellular water meters from Henard Utility Products, Inc. in the amount of $642,250.00 plus applicable taxes and freight charges, and approval of a budget adjustment to fund the cost of the needed meters. Budgeted funds from the Water Tank Improvements project are being moved to cover the cost of the meters. COUNCIL DATE: 4/1/2025 ITEM ID#: 2025-374 Kevin Springer 317312025 q:29 Pln RESOLUTION/ORDINANCE Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL Account Number - - Increase / (Decrease) Expense Revenue Project.Sub# Project Sub.Detl AT v.2025311 Account Name 5400.720.1840-5811.00 800,000 - 02065 1 EX Water Meters 5400.720.5600-5808.00 (800,000) - 14010 1 EX Improvements - Water Line I of 1 QUOTATION FROM HENARD UTILITY PRODUCTS, INC. P.O. Box 9238 SEARCY, ARKANSAS 72145 PHONE (501)268-1987 FAX (501)268-7437 www.henardutility.com TO Fayetteville Water and Sewer Harlan Henson Email: hhenson@fayetteville-ar.gov WE ARE PLEASED TO QUOTE AS FOLLOWS: INQUIRY NO: 31125-1 11 March 2025 DATE TERMS 30 Days DELIVERY TBD PRICES ARE QUOTED F.O.B. Shipping Point QTY. DESCRIPTION PRICE EA. AMOUNT 1,300 Badger Model M25 — 5/8x3/4 Low Lead Bronze Positive $272.50 $354,250.00 Displacement Meter — Plastic Bottom — HR-E 8 Dial Encoder — LTE-M Beacon Cellular Endpoint - US Gallons — Twist Tight Connector — Serial Numbers to be Embossed on Outside of the Lid. 2,000 Badger LTE-M Beacon Cellular Endpoint — Twist Tight $144.00 $288 000.00 Connector — 100-2810 ' Subtotal $642,250.00 Tax @ 9.75% $62,619.38 TOTAL $704,869.38 *Note Price Valid thru 12/31/2025 QUOTED BY: Alex Bunn abunn(&henardutility.com