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Home My WebLink AboutOrdinance 5819O, FAYETT' u ;m 4RKA.NS PS .;: 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 5819 File Number: 2015-0431 HENARD UTILITY PRODUCTS, INC.: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF TWELVE (12) TRIMBLE RANGER HAND-HELD WATER METER READING DEVICES MANUFACTURED BY BADGER METERS, INC. FROM HENARD UTILITY PRODUCTS, INC. IN THE AMOUNT OF $51,725.00 PLUS APPLICABLE TAXES FOR USE BY THE UTILITIES DEPARTMENT WHEREAS, the City of Fayetteville uses water meters manufactured by Badger Meters, Inc. and Henard Utility Products, Inc. is the only authorized Badger Meters product distributor in the State of Arkansas; and WHEREAS, standardizing water metering and meter reading equipment is appropriate because it helps ensure minimized inventories, uniform training, compatibility of equipment, and interchangeability of devices. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the purchase of twelve (12) Trimble Ranger hand-held water meter reading devices manufactured by Badger Meters, Inc. from Henard Utility Products, Inc. in the amount of $51,725.00 plus applicable taxes for use by the Utilities Department. PASSED and APPROVED on 11/3/2015 Page 1 Printed on 1114115 Approved: Ordinance Number: 5819 Attest: `` urrrrrr r�i eon R K Bio Sondra E. Smith, City �,k`Treasure94 -. �. FAYE7TEVIt l E : X= 40° {1t Paye 2 Printed on 11/4/15 City of Fayetteville Arkansas 113 West Mountain Street 7 Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2015-0431 Agenda Date: 11/3/2015 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: C. 7 HENARD UTILITY PRODUCTS, INC.: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF TWELVE (12) TRIMBLE RANGER HAND-HELD WATER METER READING DEVICES MANUFACTURED BY BADGER METERS, INC. FROM HENARD UTILITY PRODUCTS, INC. IN THE AMOUNT OF $51,725.00 PLUS APPLICABLE TAXES FOR USE BY THE UTILITIES DEPARTMENT WHEREAS, the City of Fayetteville uses water meters manufactured by Badger Meters, Inc. and Henard Utility Products, Inc. is the only authorized Badger Meters product distributor in the State of Arkansas; and WHEREAS, standardizing water metering and meter reading equipment is appropriate because it helps ensure minimized inventories, uniform training, compatibility of equipment, and interchangeability of devices. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the purchase of twelve (12) Trimble Ranger hand-held water meter reading devices manufactured by Badger Meters, Inc. from Henard Utility Products, Inc. in the amount of $51,725.00 plus applicable taxes for use by the Utilities Department. City of Fayetteville, Arkansas Page 1 Printed on 11/412015 City of Fayetteville Staff Review Form 11/3/2015 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Tim Nyander 10/7/2015 Utilities Director/ Utilities Department Submitted By Submitted Date Division / Department Action Recommendation: Ordinance authorizing a bid waiver for the purchase of specialized water and sewer equipment and materials including water metering systems and approval of the purchase of twelve (12) hand-held touch -read water meter reading devices complete with communication accessories from Henard Utility Products, Inc. for $51,725.00 plus sales tax of $5,043.19 for a total of $56,768.19. Budget Impact: 5400.1840.5210.00 Water/Sewer Account Number Fund 02065.1 Water Meters Project Number Project Title Budgeted Item? Yes Current Budget $ 680,369.00 Funds Obligated $ 57,750.03 Current Balance $ 622,6123.97 Does item have a cost? Yes Item Cost $ 56,768.19 Budget Adjustment Attached? No Budget Adjustment Remaining Budget 5 6 5, 85 0.: 88, V20140710 Previous Ordinance or Resolution # Original Contract Number: Approval Date: Comments: CITY OF s ae ARKANSAS MEETING OF NOVEMBER 3, 2015 TO: Mayor Jordan and City Council FROM: Tim Nyander, Utilities Director DATE: October 7, 2015 CITY COUNCIL AGENDA MEMO) SUBJECT: Ordinance authorizing a bid waiver for the purchase of specialized water and sewer equipment and materials including water metering systems and approval of the purchase of twelve (12) hand-held touch -read water meter reading devices complete with communication accessories from Henard Utility Products, Inc. RECOMMENDATION Fayetteville City Administration recommends approval of a bid waiver and the authorization of the purchase of twelve (12) hand-held touch -read water meter reading devices complete with communication accessories for $51,725.00 plus $5,043.19 sales tax for a total amount of $56,768.19 from Henard Utility Products, Inc. BACKGROUND It is not feasible or practical for Fayetteville's Meter Reading Division to use a competitive bidding procedure for the acquisition of water metering and meter reading equipment as this represents an exceptional circumstance where standardization becomes a necessity. Factors that justify the use of a sole source supplier include minimization of parts inventories, uniformity of training, and compatibility of equipment and interchangeability of devices. The City of Fayetteville purchases Badger TM water meters, and the Trimble Ranger is a Badger Product. Henard Utility Products is the only authorized Badger product distributor in the state. Additionally, the City will soon be installing Orion TM transmitters, as the current transmitters are being phased out. The Trimble reader is the only product that will read their frequency. To allow competitive pricing to drive the city's purchase of metering devices would result in false economies due to the secondary costs associated with utilization of multiple providers and the operational challenges of incompatible manufacturers. Water metering equipment was determined to represent an exceptional circumstance on April 6, 1993 when the City Council passed Ordinance No. 3696, and on December 21, 2004 when the City Council passed Ordinance No. 4654, waiving the competitive bidding for such specialized and unique equipment. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 DISCUSSION The existing hand-held meter reading devices have been in active daily service for approximately 10 years. In addition to growing repair problems and reduced reliability, the devices are outdated with the current inventory being insufficient to provide spare units for personnel. The current devices will be replaced by the new units in accordance with the following pricing: 12 each Trimble Ranger 3 Hand Held Units ($4,200 each) $50,400.00 each Charging Racks included in above 0.00 1 each Latest Version of Readcenter Analytics S 0.00 1 each 2 -Da On -Site Trainin 1325.00 Sales Tax S 5,043.19 TOTAL $56,768.19 BUDGET IMPACT The approval of the resolution will have no adverse budget impact; the Meter Operations Department's budget for 2015 included funds for the replacement of the hand-held meter reading devices. ATTACHMENTS: Staff Review Form PO Request Quote for Handhelds Product Sheet Ordinance No. 4654 & No. 3696