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HomeMy WebLinkAboutORDINANCE 5916R E 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 5916 File Number: 2016-0447 MUELLER SYSTEMS, LLC: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF A LEAK DETECTION SYSTEM PILOT PROGRAM FROM MUELLER SYSTEMS, LLC IN THE AMOUNT OF $26,985.00. WHEREAS, the City has implemented a leak detection program to reduce the amount of unmetered water loss in the City's water distribution system and staff recommends that the City Council approve the purchase and implementation of an automated leak detection system pilot program to compare its effectiveness to other measures the City has taken; and WHEREAS, the Mueller Mi.Echo Leak Detection System is the only automated leak detection system compatible with the Mueller fire hydrants in use within the City's water distribution system and Mueller Systems, LLC is the only distributor of that system. 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 finds that such circumstances constitute an exceptional situation where competitive bidding is deemed not feasible or practical, and therefore waives the requirements of formal competitive bidding and authorizes the purchase of an automated leak detection system pilot program from Muller Systems, LLC in the amount of $26,985.00. PASSED and APPROVED on 10/18/2016 Page 1 Printed on 10119116 Ordinance: 5916 File Number- 2016-0447 Page 2 Attest: C' S-14, its Sondra E. Smith, City Clerk Trrl�.f FAYEii EV1l,l', f rf Printed on 10119116 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2016-0447 Agenda Date: 10/18/2016 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: C. 1 MUELLER SYSTEMS, LLC: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF A LEAK DETECTION SYSTEM PILOT PROGRAM FROM MUELLER SYSTEMS, LLC IN THE AMOUNT OF $26,985.00 WHEREAS, the City has implemented a leak detection program to reduce the amount of unmetered water loss in the City's water distribution system and staff recommends that the City Council approve the purchase and implementation of an automated leak detection system pilot program to compare its effectiveness to other measures the City has taken; and WHEREAS, the Mueller Mi.Echo Leak Detection System is the only automated leak detection system compatible with the Mueller fire hydrants in use within the City's water distribution system and Mueller Systems, LLC is the only distributor of that system. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section I: That the City Council of the City of Fayetteville, Arkansas hereby finds that such circumstances constitute an exceptional situation where competitive bidding is deemed not feasible or practical, and therefore waives the requirements of formal competitive bidding and authorizes the purchase of an automated leak detection system pilot program from Muller Systems, LLC in the amount of $26,985.00. City of Fayetteville, Arkansas Page 1 Printed on 1011912016 Tim Nyander Submitted By City of Fayetteville Staff Review Form 2016-0447 Legistar File ID 0/ . / 016 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 9/28/2016 Water & Sewer Maintenance / Utilities Department Submitted Date Division / Department Action Recommendation: Staff recommends passing an Ordinance to waive the requirements of formal competitive bidding and authorize the purchase of a Leak Detection Pilot Program from Mueller Systems LLC in the Amount of $26,985.00. 5400.720.1840-5801.00 Account Number 13019.1 Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? No Previous Ordinance or Resolution # Original Contract Number: Comments: Budget Impact: Water & Sewer Fund W/S Equipment Expansion Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Project Title $ 420,081.00 �$ 123,000.00 $ 26,985.00 Approval Date: V20140710 CITY OF vile �e ARKANSAS MEETING OF OCTOBER 18, 2016 TO: Fayetteville City Council CITY COUNCIL AGENDA MEMO THRU: Mayor Lioneld Jordan Don Marr, Chief of Staff Fayetteville Water and Sewer Committee FROM: Tim Nyander, Utilities Director DATE: September 28, 2016 SUBJECT: Ordinance to waive the requirements of formal competitive bidding and authorize the purchase of a Leak Detection Pilot Program from Mueller Systems LLC in the Amount of $26,985.00 RECOMMENDATION: Staff recommends passing an Ordinance to waive the requirements of formal competitive bidding and authorize the purchase of a Leak Detection Pilot Program from Mueller Systems LLC in the Amount of $26,985.00. BACKGROUND: Fayetteville continues with our leak detection program to reduce the amount of unmetered water loss. We have done contracts and continue with in-house staff to survey the system for leaks, but need to use more measures to identify water leaks. DISCUSSION: The Mueller Mi.Echo Leak Detection system that will be permanently installed in the area roughly bordered by E. Township Street on the north, N. Juneway Terrace on the west, E. Elm Street on the south, and N. Old Wire Road on the east. The system will continuously "listen" for frequency changes in the water lines to identify water leaks as they form and increasingly degrade, until repairs are needed. This system will help us better plan routine work and reduce emergency repairs on the water system. If this system proves to be effective, it could be expanded into other areas of the City. The leak detection system nodes are compatible with the Mueller Centurion A-423 fire hydrants in use within the City of Fayetteville water distribution system. Mueller is the only company that offers this leak detection system that would work with the existing hydrants. BUDGET/STAFF IMPACT: Funds are available in the Water & Sewer Equipment Expansion Project. ATTACHMENTS: Staff Review Form Mueller MiEcho Leak Detection System - Pilot Proposal Sole Source Justification Letter from Mueller Sole Source Justification Form Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 A DIVISION OF rMU01101 f CO.) MUellef SYSTEMS echolo ics Mi.Echo Distribution Leak Detection System Pilot Prepared for City cf Fayetteville, AR Prepared by: Ken Schone 903/2016 www.echologics.com Executive Suj-nn-aary The City of Fayetteville (Fayetteville) would like to monitor for leaks within the distribution piping system. Using the Mi.Echo distribution main leak detection system from Mueller Systems and Echologics, Fayetteville will be able to monitor leak noise events and locate leaks within the monitored pilot area. Mi.Echo combines The Mi.Echo system works on the same technology as the Mueller Mueller System AMI Systems Mi.Net smart meter AMI communications network. infrastructure with Echologics advanced The Mi.Echo automated leak detection system integrates acoustic - technology. based leak detection technology from Echologics, with the Mi.Net Mueller infrastructure network. Mi.Net is Mueller Systems' fixed, two- way AMI network for utilities that fully automates meter readings, and this latest feature incorporates automated leak detection. This proposal provides the system description, pricing, and a brief outline of the technical approach. Regards, Ken Schone A DIVISION OF Mue-118r CIO. System Description The Mi.Echo automated leak detection system will be installed along the section of distribution main piping system identified by Fayetteville. The main component of the Mi.Echo system is the node —a radio frequency transceiver featuring Echologics' sensors, logger board, communications hardware, and battery power source. G 'Pip WE. chr; Diode hutted in >t,,nd,-ird hydrant yap Figure 1 Mi.Echo node: Designed for installation in 90% of the pumper nozzle Continuous pipeline caps in North America. monitoring reduces the consequences of The Mi.Echo node is housed in a cast-iron or high -density plastic leaks. enclosure that replaces the pumper nozzle caps of wet and dry barrel fire hydrants throughout a utility's service area Leak detection is performed by a pair of Mi.Echo nodes in a similar fashion as the LeakFinderRT correlator. The transceivers collect acoustic data from pipelines before generating and wirelessly transmitting files containing the data to the Mi.Net System's host software component—Mi. Host. r The NALHuQ data collector to ni+. r <.n r,G foueller Data center it b rface Figure 2 Mi.Echo System: Based on next -generation proven LeakFinderRT TM technology. A DIVISION OF M—yelle co. 11w— System operators can view the locations of leaks to determine whether or not immediate repairs need to be made, and they can compare collected data to reports transmitted by other Mi.Echo nodes to rule out false leak alarms. Detected leaks can be viewed by utility workers online through the Mi.Host user interface, which is integrated with ESRI GIS Mapping software. _b cCf'tati Figure 3 User Interface: Graphical and visual display of system status leveraging functionality of Mi.Host. Information provided by continuous monitoring improves Mi.Echo nodes are spaced at a maximum distance of 1,500 feet. The customer service. number of Mi.Hub data collection units for the pilot area have been determined based on the completed logger placement study and network survey. The Mi.Hub data collection units are not limited by the number of Mi.Echo nodes, but rather by local topography. A DIVISION OF MUeller CCJ Project Description The Mi.Echo automated leak detection system pilot will be installed within Fayettevilles' distribution main piping system. For the purposes of this proposal, 11 Mi.Echo nodes and 1 collector will be provided. (See attached propagation and logger placement study for target area) The specific locations of the hydrant nodes and the collector have been determined based on the completed logger placement study and network propagation study. Some of the factors that affected the placement of nodes and collector were local topography, elevation of the Mi.Hub collector, and area density. Pricing is provided in the Pricing Information section. � r t Figure 5 shows pricing for the supply and installation of the Mi.Echo system pilot. Item Mi.Echo acoustic hydrant sensor node with Mi.Net radio Est. Qty Sale Price Total 11 $1,200.00 $13,200.00 Mi.Hub data collector unit 1 $4,290.00 $4,290.00 Mi.Repeater unit Mi.Host, User Interface Software - leak detection and mapping functionality, <1 k units 1 $9,600.00 $9,600.00 GPRS data backhaul fees System Operations Training — Per Day 1 $360,00 $360.00 3 $1,500.00 $4,500.00 Engineering Services, project planning, node and collector installation and start up Sub -total Lot $20,435.00 $20,435.00 $52,385,00 Special Mi.Echo pilot discount 1 ($)5A00 t';: Mi.Echo Distribution Main Leak Detection System $26,985.00 Figure 5 —Pricing Table valid until October 31, 2016, not including any applicable taxes. *The price includes installation of the Mi.Echo system. Should any civil works or traffic control be required for installation, this would be the responsibility of Fayetteville. *Ann11n1 franc- MiHost — Fee will be no more than listed in price table above if number of loggers remains below 1000 units. For quantities of 11 to 100, price will be $3,500.00 Cellular Backhaul - $360.00 Collector Maintenance (Optional) - $450.00 A DIVISION OF lulu loll l r Co. tateb,rjent of','Vork Mueller Systems and Echologics propose the following technical details critical for the installation and operation of the Mi.Net AMI System. Acoustic Survey — Echologics will survey the proposed area to conduct a thorough acoustic analysis of the piping network and to validate and supplement the data provided by Fayetteville. Specific hydrants selected for installation of leak detection sensors will be dependent upon input from Echologics. Data Backhaul —3G Wide Area Network supported by AT&T will be used as the default communications to/from the Mi.Hub collector unit(s) and the Mi.Host data server. If available from the City, fiber or Ethernet connectivity is supported. Network Installation — The required Mi.Hub Collector is proposed to be installed on the Water Tower located at 36.096273 Lat &-94.143227 Lon. AC power will provided by Fayetteville. Mueller Systems: 1) Cooperate with Utility to identify locations for the Mi.Net infrastructure and the Mi.Echo nodes. 2) Prior to commencement of the system: a. Provide all required AMI system hardware b. Set-up a hosted Mi.Host AMI server and website for customer use. C. Provide the services of a qualified Mueller Systems Project Manager to conduct product hardware, software and service tool training for the Customer, as applicable. 3) Set up network communication between the Mi.Echo nodes, Mi.Hub collectors and the Mi.Host Software. 4) Supply all necessary system operational training to utility personnel during the pilot period. 5) Fully cooperate with Fayetteville in performing the required testing of the pilot products. 6) Assist Utility with installation and commissioning, as applicable for the product, and provide Customer Support in accordance with Echologics/ Mueller Systems policies, procedures and practices. A DIVISION OF IML!lleftf CO. Fayetteville Responsibilities: 1) Assist Mueller Systems with site location and equipment installation of all AMI Pilot products in accordance with Mueller Systems standard product installation recommendations, including but not limited to: a. Mi.Hub network collectors. b. OWL or DC repeaters. 2) Provide traffic control during installation of repeaters. 3) Assist Mueller Systems in selecting locations for the Mi.Echo nodes. 4) Provide samples of every distinct type of hydrant cap before the start of the project. 5) Cooperate with Echologics/ Mueller Systems in performance testing of all the AMI System components for proper functionality. 6) Utility will monitor data via the Muller Systems Mi.Host User Interface (UI) web site. 7) Provide feedback on system operation. 8) Identify one person as a primary user and contact and data manager (Utility Project Manager) to provide a single channel of communications. A DIVISION OF iMUellgf CO.. Mueller SYSTEMS 10210 Statesville Blvd. P.O Box 128 Cleveland, NC27013 Ph: 704.278.2221 Fx: 704.278.9616 www. M u ellerSvstems.corn August 10, 2016 To whom it may concern: RE: Sole Source Vendor for Mi.Net® Thank you for your interest in the Mueller Infrastructure System (Mi.Net). The Mi.Net system links water meters, Mi.Echo leak detection sensors, and other control devices in an efficient wireless network for real- time access. This smart, migratable solution provides the ultimate in flexibility and scalability for water utilities. The Mi.Net System is the only Full 2-Way Meter Management AMI system that includes permanent leak detection installed inside the fire hydrant available on the market today. Mueller Systems is the sole source of the Mi.Net System and no other company or firm sells or distributes directly to The City of Fayetteville Arkansas. Competition in providing many of the Mi.Net System products are precluded by the existence of multiple patents and patents pending. As a few examples: • US Patent: 9291502 — Acoustic Leak Sensor in a Fire Hydrant • US Patent: 8660134 — Systems and Methods for Time -Based Hailing of Radio Frequency Devices • US Patent: 8833390 — Remote Disconnect Water Meter • US Patent: 8047072 — Composite Water Meter with Metal Threads • US Patent: 8994551 — Systems and Methods for Remote Utility Metering and Meter Monitoring • US Patent: 6453247 — PC Multimedia -Based Leak Detection System for Water Transmission Pipes • US Patent: 8931505 — Infrastructure monitoring devices, systems, and methods There are no other like System's available for purchase that would serve the same purpose or function and there is only one price for the Mi.Net System because of exclusive distribution and marketing rights. Mueller Systems provides Smart Metering solutions to optimize the delivery and use of water. Municipalities that supply water need innovative ways to increase efficiencies, reduce costs, conserve water, and improve customer service. For more than 150 years, the most practical, respected and intuitive products in the water industry have been built by the company now known as Mueller Systems. Sincerely, lmQ/v! A0111711__� Matt Thomas District Manager SOLE SOURCE JUSTIFICATION PURPOSE: This form, with one or more categories completed, must accompany purchase requisitions for the sole source procurement of equipment, services or supplies exceeding $1000 (purchased from State Contract venders excepted), The purpose of sole source justification is to show that competitive bidding is impractical because only one product or service provider can meet a specific need. Therefore, an equitable evaluation of comparable products or services must be made and documented by the requester who shows that rejection of other products or services is based solely on their failure to meet that need. In cases where no other comparable source can be identified, a technical description of the product requested and a listing of those companies which were considered as alternative sources must be provided. Quality can be a subjective evaluation based upon opinion. Municipal (public) procurement law requires price considerations be evaluated via competitive quoting or bidding. While all sole source justifications are subject to review, sole source justified purchases of $20,000.00 or more must be publicly bid or a bid waiver approved by Council. Justifications must contain clear, in-depth, and accurate information in order to avoid protests and the possibility of delaying the procurement. INSTRUCTIONS: 1. Please type or print legible in ink. 2, Complete all categories and sections that apply. 3. Provide full explanation, complete descriptions, and/or list all relevant reasons where space has been provided. Sole Source Justification forms lacking sufficient detail cannot be approved. 4. Sign and date the form in the space provided for "signature". 5. Improperly completed, and/or unsigned forms will be returned to the sender. TO: FROM: SUBJECT: Purchasing Division Jeff Mincy Mark Rogers Names of Requisitioner and Dept Sole Source Justification Purchase Requisition Proposed Vendor Mueller Systems Date: si14116 Dept: Water & Sewer Head (attached) Product Description Mueller Mi,Echo Leak Detection system for Water Distribution STATEMENT I am aware that Fayetteville Code of Ordinances, Title III Administration, Chapter 34, Article II mandates that the procurement of services, materials, equipment and supplies be via competitive quotes whenever the amount is over $1,000.00. However, I am requesting sole source procurement based on the following criteria. (Attach additional sheets as necessary): 1. The requested product is an integral repair part or accessory compatible with existing equipment. (please state the manufacturer and model number of existing equipment): The Mueller Mi.Echo automated leak detection system will be installed along a section of Water distribution main. The system nodes are compatible with the Mueller Centurion A-423 fire hydrants in use within the City of Fayetteville water distribution system. 2. The requested product has special design/performance .features which are essential to my needs. Bath A and B portions of this category must he completed. A. These features are: The Mueller Infrastructure System (Mi.Net) links water meters, Mi.Echo leak detection sensors, and other control devices in an efficient wireless network for real-:ime access_ This smart, migratable solution provides the ultimate in flexibility and scalability for water utilities. B. In addition to the product requested, I have contacted other suppliers and considered their product of similar capabilities. I find their product unacceptable for the following reasons (identify companies contacted, individuals contacted, model number and specific technical deficiency). There are no other like System's available for purchase that would serve the same purpose or function and there is only one price for the MI.Net System because of exclusive distribution and marketing rights. 3. 1 have standardized the requested product/service; the use of another would require considerable time and money to evaluate. Explain 4. The requested product is one which T (or my staff) have specialized training and/or extensive experience. Retraining would incur substantial cost in money and/or time. Explain: T 5. Please consider sole source approval for this reason(s) (e.g. trade-in allowance; availability of services, parts and maintenance; product is a prototype; inventory of parts are maintained, etc.); Mueller systems has provided a substantial Pilot pricing discount of-$25,400.00 from the subtotal of $52,385.00 leaving a balance due of $26.985.00 for this purchase. Authorization: Full Name and Title of lZequisitioner Jeff Mincy -Lead Warehouse Attendant (typed or printed in ink) Signature \ 1,0 Date 9/14/16 Full Name of Division mead Mark Rogers -Operations Manager cf✓ (typed or printed in ink) Signature Date 09/14/2016 NORTHWESTARKANsAs Democrat .0, 3.3 �) _� .' 'z, �T:Ji f,.. t`.^2 -'rlF ... "F;_�', € 1„ °L"it"•r'i �e `. ..1 ...,.f.- AFFIDAVIT OF PUBLICATION I Karen Caler, do solemnly swear that I am the Legal Clerk of the Northwest Arkansas Democrat -Gazette, printed and published in Washington County and Benton County, Arkansas, and of bona fide circulation, that from my own personal knowledge and reference to the files of said publication, the advertisement of - CITY OF FAYETTEVILLE Ord. 5916 Was inserted in the Regular Edition on: October 27, 2016 Publication Charges: $ 94.90 Karen Caler Subscribed and sworn to before me This ( day of �D f , 2016. (a - Notary Public My Commission Expires: CATHY WILES Arkansas - Benton County Notary Public - Comrn;r 123 7118 �? i My Commission E pins f=eb 202024 Please do not pay from Affidavit. Invoice will be sent. Ordinance: 5916 File Number: 2016-0447 MUELLER SYSTEMS, LLC: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF A LEAK DETECTION SYSTEM PILOT PROGRAM FROM MUELLER SYSTEMS, LLC IN THE AMOUNT OF $26,985.00. WHEREAS, the City has implemented a leak detection program to reduce the amount of unmetered water loss in the City's water distribution system and staff recommends that the City Council approve the purchase and implementation of an automated leak detection system pilot program to compare its effectiveness to other measures the City has taken; and WHEREAS, the Mueller Mi.Echo Leak Detection System is the only automated leak detection system compatible with the Mueller fire hydrants in use within the City's water distribution system and Mueller Systems, LLC is the only distributor of that system. 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 finds that such circumstances constitute an exceptional situation where competitive bidding is deemed not feasible or practical, and therefore waives the requirements of formal competitive bidding and authorizes the purchase of an automated leak detection system pilot program from Muller Systems, LLC in the amount of $26,985.00. PASSED and APPROVED on 10/18/2016 Approved: Lioneld Jordan, Mayor Attest: Sondra E. Smith, City Clerk Treasurer 73902557 Oct. 27, 2016 RECEIVED Nov 0­3 2016 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE Tim Nyander Submitted By �A z I Iie'y 8 y ekC'n-6 , u e , , a 4 � U lP_a �c-4ior� � p City of Fayetteville Staff Review Form 2016-0661 Legistar File ID N/A City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 12/16/2016 Utilities Director / _ Utilities Department Submitted Date Division / Department Action Recommendation: APPROVAL AND SIGNATURE OF AN AGREEMENT WITH MUELLER SYSTEMS, LLC FOR USE OF HOSTING SOFTWARE AND SUPPORT ASSOCIATED WITH LEAK DETECTION EQUIPMENT PURCHASED IN 2016 Budget Impact: N/A N/A Account Number Fund N/A N/A Project Number Project Title Budgeted Item? NA Current Budget $ - Funds Obligated $ - Current Balance Does item have a cost? No Item Cost $ - Budget Adjustment Attached? NA Budget Adjustment $ - Remaining Budget $ - V20140710 Previous Ordinance or Resolution # Ord. 5916 Original Contract Number: Comments: Approval Date: [ a - a rl - I t, CITY OF T,ave edi,e ARKANSAS TO: Mayor Lioneld Jordan FROM: Tim Nyander, Utilities Director T� DATE: December 15, 2016 STAFF MEMO SUBJECT: Agreement with Mueller Systems, LLC to use their Mi.Net Leak Detection Software RECOMMENDATION: Staff recommends the approval and signature of an Agreement between the City and Mueller Systems, LLC to allow use of their Leak Detection software with the Leak Detection equipment purchased by the Utilities Department in 2016. BACKGROUND: The Utilities Department purchased a Leak Detection Pilot Program in October 2016, approved by Ordinance 5916. Purchase Order 2016-00000546 was issued on October 27, 2016 in the amount of $29,616.04 to purchase the pilot program from Mueller Systems, LLC. The Leak Detection Pilot Program included the leak detection equipment nodes and data collector that the City will permanently own after the pilot program is complete. DISCUSSION: The Agreement will allow the City to use the Mi.Net software system, which will work with the existing leak detection system. The software communicates with the data collector and hosts the data that comes from the leak detection system. Mueller Systems, LLC will also provide support for the software as part of the agreement. The software will have an annual cost of approximately $4,250.00 in future years, but is included with the Leak Detection Pilot Program purchased in 2016. BUDGET/STAFF IMPACT: The software was previously budgeted for in 2016. Attachments: Staff Review Form Agreement Ordinance 5916 Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 MUELLER SYSTEMS MASTER AGREEMENT THIS MASTER AGREEMENT (this "Agreement") is entered into this Z q day of between MUELLER SYSTEMS, LLC, a Delaware limited liability corporation having its principal offices at 10210 Statesville Blvd, Cleveland, North Carolina 27013 (referred to in this Agreement as "Provider"), and Fayetteville. Arkansas , a City having its principal offices at 113 West Mountain Street Fayetteville AR 72701 (referred to in this Agreement as "Customer"). This Agreement governs the sale by Provider and the purchase by Customer for its own use and not for resale of, as applicable, Equipment, Software, Documentation and other items related to advanced metrology infrastructure systems . In consideration of the mutual obligations set forth in this Agreement, Customer and Provider agree as follows: DEFINITIONS. a. "Content" means the information developed or legally acquired by Customer which may be used in connection with or accessed by any module of the Software. b. • "Documentation" means the user guides, reference manuals, and installation materials provided by Provider to Customer related to the Software and Equipment. C. "Equipment" means the components, devices, products, equipment and related items provided by Provider identified in Appendix A. d. "Services" means activities related to deployment and installation services, repair services, hosting services and technical support/maintenance services as identified in Appendix B. C. "Software" means the object code versions of the Provider's software identified in Appendix A, together with all subsequent authorized updates, replacements, modifications or enhancements. 2. SOFTWARE a. License. Provider hereby grants to Customer, a limited, non-exclusive; nontransferable license (without the right of sublicense) to, in connection with the Equipment, use, install, run, execute, display and, subject to the restrictions described below; duplicate and distribute internally, the Software and Documentation solely for Customer's internal information management and processing purposes. b. Restrictions. Except as specifically and expressly permitted in writing by Provider, Customer shall not (i) violate any restriction set forth in this Agreement; (ii) modify, translate, de -compile, reverse compile, disassemble, or Host — 08.14 create or attempt to create, by reverse engineering or otherwise, the source code from the object code of the Software; (iii) adapt the Software in any way for use to create a derivative work; (iv) include or combine the Software in or with any other software; or (v) use the Software to provide processing services to third parties or on a service bureau basis. Except as expressly permitted in this Agreement, Customer may not copy the Software other than to make one machine readable copy for disaster recovery or archival purposes. Customer may only make copies of Documentation as reasonably necessary for the use contemplated herein and with proper inclusion of Provider's copyright notices. C. I Ownership. This Agreement does not grant to Customer any ownership interest in the Software or Documentation. Customer has a license to use the Software and Documentation as provided in this Agreement. Customer hereby agrees and acknowledges that Provider owns all right, title; and interest in the Software and Documentation, and Customer will not contest those rights or engage in any conduct contrary to those rights. Any copy, modification, revision, enhancement, adaptation, translation, or derivative work of or created from the Software and Documentation made by or at the direction of Customer shall be owned solely and exclusively by Provider; as shall all patent rights, copyrights, trade secret rights, trademark rights and all other proprietary rights, worldwide. d. Reservation. Provider reserves all rights not specifically granted under this Agreement. 3. EQUIPMENT In consideration of the fees set forth in Appendix D of this Agreement, Provider will provide the Equipment identified in Appendix B. 4. SERVICES In consideration of the fees set forth in Appendix D of this Agreement, Provider will provide the Services identified in Exhibit B. 5. CONFIDENTIALITY The Software, Equipment and Documentation, including any ideas, concepts, know-how and technology contained therein, shall be considered the proprietary and confidential information of Provider and, as such, shall be subject to the confidentiality provisions of this Agreement. If a separate, written non -disclosure agreement exists between Provider and Customer, such agreement will control and will apply according to its terms and conditions to all confidential information the parties exchange with each other. If no separate, written non -disclosure agreement exists between Provider and Customer, the terms listed in Appendix C will apply to the confidential information the parties exchange with each other. FEES AND PAYMENT a. Software Fees. Customer shall pay the Software fees set forth in Appendix D of this Agreement. b. Equipment Fees. Customer shall pay the Equipment fees set forth in Appendix D of this Agreement. Title to the Equipment, except the Software and Documentation that are subject to licenses provided in this Agreement, passes from Provider to Customer when Provider ships the Equipment. C. Service Fees. Customer shall pay the Service fees set forth in Appendix D of this Agreement. d. Taxes. All prices and fees are in U.S. dollars unless otherwise specified. All amounts payable under this Agreement are exclusive of all sales, use, value-added, excise, property, withholding, and other taxes and duties. Customer will pay all taxes and duties assessed by any authority in connection with this Agreement and with Customer's performance hereunder. Customer will promptly reimburse Provider for any and all taxes or duties that Provider may be required to pay in connection with this Agreement or its performance. This provision does not apply to taxes based on Provider's income, or any taxes for which Customer is exempt, provided Customer has furnished Provider with a valid tax exemption certificate. Host — 08.14 e. Payment. Unless provided otherwise herein, Customer agrees to pay all amounts specified in Appendix D or otherwise due under this Agreement within thirty (30) days after the date of invoice. Past due amounts will shall bear interest from the due date until paid at a rate of (i) one and one-half percent (1.5%) per month or (ii) the maximum rate permitted by law, whichever is less. All payments made under this Agreement shall be nonrefundable, except as specifically provided otherwise in this Agreement. TERM; TERMINATION a. Term. The term of this Agreement is one (1) year commencing upon the date of this Agreement. This Agreement will automatically renew for subsequent, successive one (1) year periods at the then current Provider prices unless either party gives the other party written notice of its intent to not renew at least thirty (30) days prior to the expiration of the then current term. Provider may increase support fees at any time on thirty (30) days prior notice to Customer. Within such thirty (30) days, Customer may terminate the Agreement by providing written notice to Provider. b. - Termination for Breach. If either party breaches this Agreement, and such breach is not cured within ten (10) days of the breach, after receiving written notice, the non -breaching party may terminate this Agreement, including all licenses provided herein, effective upon written notice to the other party. The breaching party agrees that if it breaches this Agreement, the non -breaching party will be entitled to injunctive or similar equitable relief and that the breaching party will not argue in any proceeding that its breach will not cause irreparable harm to the non -breaching party or that the non - breaching party can be adequately compensated for any such harm by any remedies other than by injunctive relief. C. Effect of Termination. Termination of this Agreement shall have the effect designated in Appendix B. d. Non -Exclusive Remedy. Termination of this Agreement or any license granted hereunder shall not limit the remedies otherwise available to either party, including injunctive relief. e. Survival. Unless otherwise stated herein, any provision that, by its nature or terms, is intended' to survive the expiration or termination of this Agreement, will survive. 8. LIMITED WARRANTIES; REMEDIES a. Software. Subject to the exclusions herein, including those in Appendix A. Provider warrants that commencing from the date of shipment to Customer and continuing for the period set forth in Appendix A (the "Warranty Period"), (i) the media on which the Software is furnished will be free of defects in materials and workmanship under normal use; and (ii) the Software will perform substantially in conformance with the applicable Documentation provided to Customer by Provider. Provider does not warrant that the Software will operate in combinations with other software, except as. specified in the Documentation, that the Software will meet the Customer's requirements or that the operation of the Software will be uninterrupted or error -tree. Customer assumes responsibility for taking adequate precautions against damages which could be caused by defects; interruptions or malfunctions in the Software or the hardware on which .it is installed. Provider's entire obligation and Customer's exclusive remedy with respect to the Software warranties set forth above shall be, at Provider's . option; to either (x) repair or replace any Software containing an error or condition which is reported by Customer in writing to Provider which causes the Software not to conform with the warranty set forth herein; or (y) refund a pro rated amount paid by Customer to Provider and terminate this Agreement and all licenses provided herein. b. Services. Provider warrants that all services provided by it to Customer under this Agreement shall be performed in a workmanlike manner. Provider's entire obligation and Customer's exclusive remedy with respect to the Service warranties set forth above shall be the re - performance of the applicable non -conforming Service. C. Equipment. Subject to the exclusions herein, including those in Appendix A, Provider warrants to Customer that the Equipment will be free from defects in material and workmanship for the periods specified in Appendix A. Claims under this Section will be considered if submitted to Provider within sixty (60) days Host — 08.14 following the discovery of any defect covered by this Section and provided Provider or its agents are permitted a commercially reasonable opportunity to examine and analyze the material or workmanship claimed to be defective. Provider's entire obligation and Customer's exclusive remedy with respect to the Equipment warranties set forth herein, at Provider's option, is repair or replacement of any Equipment found defective during the applicable warranty period after such Equipment is properly packaged and returned prepaid to Provider's designated service center. d. Costs. Any and all costs associated with uninstalling and shipping defective Equipment and Software and installing replacement Equipment and Software will be the responsibility of Customer. Customer agrees to furnish Provider reasonable access to such Equipment and Software. During the warranty prior for infrastructure type products list as Hardware or Software in Appendix A, Provider will pay any and all costs associated with installations and shipping of defective Equipment and Software. e. Exclusions. The warranties provided by Provider shall not.apply to Equipment and/or Software which: (i) have been altered, except with the express written consent, permission or instruction of Provider, (ii) have been used in conjunction with another product resulting in the defect, except for those third party products specifically approved by Provider, (iii) were other than the most current version of the Software (but only to the extent that any failure of the Software would have been avoided by the use of the most current version), (iv) have been damaged by improper environment; abuse, misuse, accident, negligence, act of God, excessive operating conditions, or unauthorized attachments or modifications, (v) have not been properly installed and operated in accordance with the Documentation, or as otherwise instructed by Provider, or (vi) any other exclusion set forth in any Appendix hereto. F. DISCLAIMERS. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE WARRANTIES AND REMEDIES STATED ABOVE ARE EXCLUSIVE AND NO OTHER WARRANTIES OR REMEDIES EXPRESS, IMPLIED OR STATUTORY, APPLY TO THE DOCUMENTATION, THE SOFTWARE, THE EQUIPMENT OR ANY SERVICES TO BE PROVIDED BY PROVIDER UNDER THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO WARRANTIES OR CONDITIONS OF TITLE, NON - INFRINGEMENT, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, QUALITY OR PERFORMANCE, AND ANY IMPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF TRADE, ALL OF WHICH PROVIDER EXPRESSLY DISCLAIMS. 9. INDEMNIFICATION Provider will indemnify and defend Customer from any third party claim that the Software and Equipment infringe on another person's or company's patent, copyright or other intellectual property right as specified in this Section. This indemnity does not cover and specifically excludes (a) intellectual property rights recognized in countries and jurisdictions other than the United States, and (b) claims relating to third party products and software. Provider has no obligation under this Section for any claim to the extent it results from or arises out of Customer's modification of the Equipment or Software or from any combination, operation or use of the Software or Equipment with other third party products or services. Provider's • duty to indemnify under this Section is contingent upon Provider receiving prompt notice of a claim and Provider's right to solely control resolution of a claim. Customer's sole remedy for an indemnified claim under this Section is as follows: Provider will; at its expense and in its discretion either (a) resolve the claim in a way that permits Customer's continued ownership and use of the affected Software and Equipment, (b) provide a comparable; non -infringing replacement at no cost to Customer, or (c) accept return of the Software and Equipment, provide a reasonable depreciated refund and terminate this Agreement and all licenses herein. This Section is the exclusive statement of Provider's liability and responsibility for indemnifying Customer for infringement of intellectual property rights 10. LIMITATION OF LIABILITY a. IN NO EVENT WILL PROVIDER BE LIABLE FOR ANY LOSS OF PROFIT OR OTHER COMMERCIAL DAMAGE, INCLUDING BUT NOT LIMITED TO SPECIAL, INCIDENTAL, CONSEQUENTIAL OR OTHER INDIRECT DAMAGES UNDER Host — 08.14 ANY CAUSE OF ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, CLAIMS ARISING FROM MALFUNCTION OR DEFECTS IN THE SOFTWARE OR EQUIPMENT. THESE LIMITATIONS WILL APPLY FOR ANY CLAIMS, INCLUDING WITHOUT LIMITATION, CONTRACT, TORT (INCLUDING NEGLIGENCE) AND STRICT LIABILITY EVEN IF PROVIDER OR ITS REPRESENTATIVE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. PROVIDER'S MAXIMUM LIABILITY HEREUNDER IS EXPRESSLY LIMITED TO THE TOTAL AMOUNT PAID FOR THE SOFTWARE, SERVICES, AND EQUIPMENT IN THE IMMEDIATELY PRECEDING TWELVE (12) MONTHS AND WILL UNDER NO CIRCUMSTANCE EXCEED THE AMOUNT PAID BY CUSTOMER IN THE IMMEDIATELY PRECEDING TWELVE (12) MONTHS FOR THE - SOFTWARE, SERVICES AND EQUIPMENT PROVIDED BY PROVIDER UNDER THIS AGREEMENT. Some states do not allow the limitation and/or exclusion of liability for incidental or consequential damages, so the above limitation may not apply. b. The provisions of this Agreement allocate the risks between Customer and Provider. Provider's pricing reflects this allocation of risk and the limitations of liability specified herein. 8. NOTICE. All notices required to be given hereunder shall be in writing. Notice shall be considered delivered and effective upon receipt when sent by registered or certified mail, return receipt requested; addressed to the parties as set forth above. Either party; upon written notice, may change any name or address to which future notice shall be sent. IL GENERAL. The Software will not be exported or re-exported in violation of any export provisions of the United States or any other applicable jurisdiction. The rights and obligations of this Agreement are personal rights granted to the Customer only. The Customer may not transfer or assign any of the rights or obligations granted under this Agreement to any other person or legal entity. Any such purported transfer or assignment shall be null and void. Provider will be free of liability to the Customer where Provider is prevented from executing its obligations under this Agreement in whole or in part due to force majeure, such as earthquake, typhoon, flood, fire, and war or any other unforeseen and uncontrollable. Any modification or amendment to any of the provisions of this Agreement will be in writing and signed by an authorized officer of each party. This Agreement does not create or imply any relationship in agency or partnership between the parties. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. The validity of this Agreement and the rights, obligations, and relationship of the parties resulting from same will be interpreted and determined in accordance with the law of the State of T6xas, and applicable— federal law, without regard to its choice of law provisions. The parties specifically exclude from application to the Agreement the United Nations Convention on Contracts for the International Sale of Goods and the Uniform Computer . Information Transactions Act. If any.provision of this Agreement is contrary to and in violation of any applicable law, such provision will be considered null and void to the extent that it is contrary to such law, but all other provisions will remain in effect. The waiver or failure of either" - party to -exercise any right -herein shall not deemed a waiver of any further right hereunder. _. This Agreement constitutes the entire agreement between the'.parties with respect to the subject..., matter hereof and supersedes all other prior and . _... _ . contemporary agreements, understandings, and commitments between the parties regarding the subject matter of this Agreement. [Signature Block Follows] EACH PARTY ACKNOWLEDGES THAT IT HAS READ THIS AGREEMENT, UNDERSTANDS 1T, AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. Provider f By: Al K. Anita Short Name (Print or Type) 12/19/16 Date Host — 08.14 5 Name (Print or Type) Mcu oK Title /a-z7-/`� Date Appen_ dix A Software / Equipment 1. AMR / AMI Products I: Software — Mi.Host, Mi.Data„ Mi.Echo, EZReader and other software products are covered by a one (1) year warranty on material and workmanship and shall perform substantially as described with Provider then current Documentation. Hardware — Mi.Node electric (Smart Meter), Mi.Hub Data Collector, Street Machine RF Receiver, Pit Stop handheld receivers, TRuReadTM remotes, laptops PC's, Server Hardware and all other peripheral electronic products are covered by a one (1) year warranty on material and workmanship. Radio Modules — Mi.Node Water Modules and Hot RodTM Modules are covered by a ten (10) year warranty on material and workmanship. Additionally, Mi.Node Water Modules and Hot RodTM Modules are covered by a prorated warranty for years eleven (I I ) through fifteen (15) at a fifty -percent (50%) discount, years sixteen (16) through twenty (20) at a twenty -five -percent (25%) discount. Mi.Hydrant Repeater Transceivers and Mi.Echo loggers are covered by a ten (10) year warranty on material and workmanship. 420RDM (Remote Disconnect Valve) are covered by a five (5) year warranty on material and workmanship. Additionally, the unit is covered by a prorated warranty for years six (6) through ten (10) at a fifty -percent (50%) discount. All prorated warranty credit listed will apply to list pricing in effect at the time of the return. Encoder Register Products — Hersey TranslatorTM Encoder Registers, Hersey SSR Solid -State Registers, Wall Pads and Pit Pads are covered by a ten (10) year warranty on material and workmanship. Additionally, the complete unit is covered by a prorated warranty for years eleven (I 1) through fifteen (15) at a fifty -percent (50%) discount, -years sixteen (16) through twenty (20) at a twenty -five -percent (25%) discount. The prorated warranty credit listed will apply to list pricing in effect at the time of the return. 2. Water Metering Products: Models 400, 500, MVR, RFM, FM3, HM, and HbMag cold -water meters and detector check models, EDCIV are covered against defects in material and workmanship for a period of one (1) year from the date of installation. Main cases for the above listed meters are guaranteed to be free from defects in material and workmanship for a period of twenty-five (25) years from the date of installation. Standard Registers for the above listed meters are guaranteed to be free from defects in material and workmanship for a period of fifteen (15) years from the date of installation. Models 400 and 500 meters are guaranteed to perform to AWWA new meter accuracy standard as defined in the most current revision for a period of five (5) years from the date of installation. Models MVR, RFM, FM3, HM and HbMag meters are guaranteed to perform to AWWA new meter accuracy standard as defined in the most current revision for a period of one ( I ) year from the date of installation. Models 400 and 500 meters are guaranteed to perform to AWWA repaired meter accuracy standards for the following time periods: 5/8" — Fifteen (15) years from the date of installation, or the registration of 1,750,000 U.S. gallons, whichever comes first; 3/4" — Fifteen (15) years from the date of installation, or the registration of 2,000,000 U.S. gallons, whichever comes first; I"— Fifteen (15) years from the date of installation, or the registration of3,000,000 U.S. gallons, whichever,comes first; 1-1/2" — Fifteen (15) years from the date of installation, or the registration of 5,500,000 U.S. gallons, whichever comes first:_ 2" — Fifteen (15) years from the date of installation, or the registration of 8,500,000 U.S. gallons, whichever comes first. If the above listed meters do not perform as specified, Provider will repair or replace them, at Provider's option, subject to the following: a) Provider shall be determined to not be performing as guaranteed if it fails to pass an accuracy test, conducted by the customer according to AWWA standards. If the meter is inoperative because of foreign material, all such material must be removed prior to testing. A copy of the customer's test results must accompanythe Hersey meter being returned. If the customer chooses not to test a Hersey meter before returning it, Provider will repair or replace the met er at Provider's option after the meter has been tested by Provider. When test is conducted by Provider, the customer will be charged a reasonable testing fee. I Unless otherwise expressly stated herein, all warranty terms are provided from the date of this Agreement 08.14 Appendix B Services Softvare Services and Support Obligations a. "Update" to the Software means a subsequent release of the Software that Provider makes generally available to its current customers for the Software. Updates include changes and corrections to the Software as are required to keep the Software in substantial conformance with the applicable Documentation and that are cleated by Provider as corrections for defects in the Software. Updates shall not include any release, option or future product that Provider licenses separately. Provider shall in its sole discretion determine the nature, content, timing and release of any Updates. b. Web -based support, consisting of information on the most current release of the Software through Provider's web site-_­ C. --.- . c. Phone support in the form of advice and counsel via telephone regarding Customer's use of the most current release of the Software; as well as Customer's connectivity and ability to access Content. Phone Support shall be provided from 8:00 AM to 5:00 PM (Eastern Standard Time); Monday through Friday, exclusive of holidays observed by Provider. 2. Sofhvare Hosting Services a. Except as specifically permitted in this Agreement, Customer shall have web -based access the Software hosted by Provider pursuant to this Agreement. b. -.. Provider.shall provide Customer with access and related. hosting services to the Software installed on Provider's servers. Provider will also install the Content provided by Customer. Provider will define the appropriate.performance.specifications and.will host the.seiwer.at a.Provider's location. Provider will monitor and -perform robtine-rriaintenance on the-servee, and if the servef -is not operating properly, will make a good faith effort to operate Customer's. system on a;backup server, if available: access to Customer's server is restricted to authorized Provider information technology and support personnel only. Differential and full server backups are performed when reasonably practicable- C. - Customer shall be responsible for installing; operating and maintaining the equipment, software, and/or facilities'at Customer location recommended by Provider -for- effective access to and use of the Software installed on the Provider. server. Customer shall be responsible for providing and maintaining its own Internet access and all necessary telecommunications equipment at Customers location- necessary for accessing the Software. d. Upon termination, for any reason, of the Agreement or any licenses) granted herein, Provider shall immediately cease providing access to the Software and Hosting Services. Customer shall (i) immediately stop access and use of all.such Provider confidential information (including -Software); (ii) shall return all copies of the Software, Documentation, and any Provider confidential information to Provider; and (iii) delete all Software, Documentation, and other confidential information off of any and all storage media possessed or controlled by Customer. Customer shall provide Provider with written certification signed by an officer of Customer that Customer has complied with the provisions of this Section. Customer shall immediately pay all amounts due to Provider. r Host — 08.14 Appendix C Confidential Information For purposes of this Attachment, "party" or "parties" shall mean Provider and Customer, including their respective subsidiaries and affiliates who are providing information under this Agreement. The parties agree to maintain confidential information as follows: l . Definition of Confidential Information. The parties understand and agree that confidential information is any and all current and future Equipment, Documentation and/or Software information, roadmap, technical or financial information, customer names, addresses and related data, contracts, practices, procedures and other business information, including software reports, strategies, plans, documents, drawings, machines, tools, models, patent disclosures, samples, materials and requests for proposals that may be disclosed between the parties, whether written, oral, electronic or otherwise, however and wherever acquired ("Confidential Information"). Confidential Information excludes any information which would otherwise fall in the definitions above, but which was (a) known to the recipient of the information ("Recipient") before receipt from the disclosing party; (b) publicly available through no fault of Recipient; (c) rightly received by Recipient from a third party without a duty of confidentiality; (d) disclosed by disclosing party to a third party without a duty of confidentiality on the third party; (e) independently developed by Recipient without breach of this or any other confidentiality agreement; or (f) disclosed by Recipient after prior written approval from the disclosing party. 2. Obligations of Confidentiality and Remedies. Recipient agrees to protect the disclosing party's Confidential Information with the same degree of care, but no less than a reasonable degree of care, as Recipient uses with respect to its own Confidential Information. Neither party has any obligation to exchange Confidential Information. Both parties acknowledge and agree that the disclosure of the other party's Confidential Information could cause irreparable harm. Therefore, an injured party is entitled to applicable equitable relief, including injunctions, in addition to other remedies, for such wrongful disclosure of Confidential Information. In addition, disclosure of Confidential Information required by a government body or court of law is not a violation of this Section if the Recipient gives prompt notice of the required disclosure to the disclosing party. 3. "rerm of Confidentiality Obligations. Recipient's duty to protect Confidential Information expires three (3) years from the date of disclosure of the particular Confidential Information. No Warranties on Confidential Information. Neither party warrants or guarantees the accuracy of any Confidential Information transferred between the parties. Host — 08.14 Appendix D Annual Fees Annual MiEcho Software Retail Price (Hosted) (Hosted Services) (Annual Cost) Number of Loggers: 1— 100— 100 1,000 Mi.Host AMI Software for Water System $3,500 $9,600 Annual Hardware Maintenance Part Number Retail Price 'Mi.Hub Collector maintenance per year MS-G-M-YR $750 C Pricing Effective 01/11/2016 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 5916 File Number: 2016-0447 MUELLER SYSTEMS, LLC: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF A LEAK DETECTION SYSTEM PILOT PROGRAM FROM MUELLER SYSTEMS, LLC IN THE AMOUNT OF $26,985.00. WHEREAS, the City has implemented a leak detection program to reduce the amount of unmetered water loss in the City's water distribution system and staff recommends that the City Council approve the purchase and implementation of an automated leak detection system pilot program to compare its effectiveness to other measures the City has taken; and WHEREAS, the Mueller Mi.Echo Leak Detection System is the only automated, leak detection system compatible- with the Mueller fire hydrants in use within the City's water distribution system and Mueller Systems, LLC is the only distributor of that system: - 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 finds that such circumstances constitute an exceptional situation where competitive bidding is deemed not feasible or practical, and therefore waives the requirements of formal competitive bidding and authorizes the purchase of an automated leak detection system pilot program from Muller Systems, LLC in the amount of $26,985.00. PASSED and APPROVED on 10/18/2016 Page 1 Printed on 10/19116 Ordinance: 5916 File Number 2016-0447 Attest: r lit Sondra E. Smith, City Clerk TrBK�: • Go Y c�F •.,Cr;�� =.��.. Vll 1=' F AYidyl*e. •q' ,fA N`�t� • ��� f Page 2 Printed on 10119118 f City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville. AR 72701 (479) 575-8323 Text File File Number: 2016-0447 Agenda Date: 10/18/2016 Version: 1 Status: Passed In Control: City Council Meeting , File Type: Ordinance Agenda Number: C. 1 MUELLER SYSTEMS, LLC: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL .COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE' OF A LEAK DETECTION SYSTEM PILOT PROGRAM FROM MUELLER SYSTEMS, LLC IN THE AMOUNT OF $26,985.00 WHEREAS, the City has implemented a leak detection program to reduce the amount of unmetered water loss in the City's water distribution system and staff recommends that the City Council approve the purchase and implementation of an automated leak detection system pilot program to compare its effectiveness to other measures the City has taken; and WHEREAS, the Mueller Mi.Echo Leak Detection System is the only automated leak detection system compatible with the Mueller fire hydrants in use within the City's water distribution system and Mueller Systems, LLC is the only distributor of that system. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section l: That the City Council of the City of Fayetteville, Arkansas hereby finds that such circumstances constitute an exceptional situation where competitive bidding is deemed not feasible or practical, and therefore waives the requirements of formal ' competitive bidding and authorizes the purchase of an automated leak detection system pilot program from Muller Systems, LLC in the amount of $26,985.00. City o1 Fayetteville, Arkansas Page 1 Printed on 10/1912016 City of Fayetteville Staff Review Form 2016-0447 '-egist;ar file iD City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Tim Nyander 9/28/2016 Water & Sewer Maintenance / Utilities Department Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends passing an Ordinance to waive the requirements of formal competitive bidding and authorize the purchase of a Leak Detection Pilot Program from Mueller Systems LLC in the Amount of $26,985.00. Budget Impact: 540.0.720.1840-5801.00 Water & Sewer Account Number Fund 13019.1 W/S Equipment Expansion Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? No Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Project Title $ 420,081.00 $ 123,000.00 i $ 26,985.00 Remaining Budget V20140710 Previous Ordinance or Resolution q Original Contract Number: Comments: Approval Date: CITY OF T e _ 1 e. ARKANSAS MEETING OF OCTOBER 18, 2016 TO.: Fayetteville City Council CITY COUNCIL AGENDA MEMO THRU: Mayor Lioneld Jordan Don Marr, Chief of Staff Fayetteville Water and Sewer Committee FROM: Tim Nyander, Utilities Director DATE: September 28, 2016 SUBJECT: Ordinance to waive the requirements of formal competitive bidding and authorize the purchase of a Leak Detection Pilot Program from Mueller Systems LLC in the Amount of $26,985.00 RECOMMENDATION: Staff recommends passing an Ordinance to waive the requirements of formal competitive bidding and authorize the purchase of a Leak Detection Pilot Program from Mueller Systems LLC in the Amount of $26,985.00. BACKGROUND: Fayetteville continues with our leak detection program to reduce the amount of unmetered water loss. We have done contracts and continue with in-house staff to survey the system for leaks, but need to use more measures to identify water leaks. DISCUSSION: The Mueller Mi.Echo Leak Detection system that will be permanently installed in the area roughly bordered by E. Township Street on the north, N. Juneway Terrace on the west, E. Elm Street on the south, and N. Old Wire Road on the east. The system will continuously "listen" for frequency changes in the water lines to identify water leaks as they form and increasingly degrade, until repairs are needed. This system will help us better plan routine work and reduce emergency repairs on the water system. If this system proves to be effective, it could be expanded into other areas of the City. The leak detection system nodes are compatible with the Mueller Centurion A-423 fire hydrants in use within the City of Fayetteville water distribution system. Mueller is the only company that offers this leak detection system that would work with the existing hydrants. BUDGET/STAFF IMPACT: Funds are available in the Water & Sewer Equipment Expansion Project. ATTACHMENTS: Staff Review Form Mueller MiEcho Leak Detection System - Pilot Proposal Sole Source Justification Letter from Mueller Sole Source Justification Form Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 A DIVISION OF Mueller to r113r SYSTEMS echolo ICS Mi.Echo Distribution Leak Detection System Pilot F'repared for City of Faye'ttaville, AR Prepa,ed by: Ken Schone Executive Summary The City of Fayetteville (Fayetteville) would like to monitor for leaks within the distribution piping system. Using the Mi.Echo distribution main leak detection system from Mueller Systems and Echologics, Fayetteville will be able to monitor leak noise events and locate leaks within the monitored pilot area. Mi.Echo combines The Mi.Echo system works on the same technology as the Mueller Mueller System AMI Systems Mi.Net smart meter AMI communications network. infrastructure with Echologics advanced The Mi.Echo automated leak detection system integrates acoustic - technology. based leak detection technology from Echologics, with the Mi.Net Mueller infrastructure network. Mi.Net is Mueller Systems' fixed, two- way AMI network for utilities that fully automates meter readings, and this latest feature incorporates automated leak detection. This proposal provides the system description, pricing, and a brief outline of the technical approach. Regards, Ken Schone iR1�tFA A DIVISION OF Muellef Co. System Description The Mi.Echo automated leak detection system will be installed along the section of distribution main piping system identified by Fayetteville. The main component of the Mi.Echo system is the node —a radio frequency transceiver featuring Echologics' sensors, logger board, communications hardware, and battery power source. Figure 1 Mi.Echo node: Designed for installation in 90% of the pumper nozzle Continuous pipeline caps in North America. monitoring reduces the consequences of The Mi.Echo node is housed in a cast-iron or high -density plastic leaks. enclosure that replaces -the pumper nozzle caps of wet and dry barrel fire hydrants throughout a utility's service area. Leak detection is performed by a pair of Mi.Echo nodes in a similar fashion as the LeakFinderRT correlator. The transceivers collect acoustic data from pipelines before generating and wirelessly transmitting files containing the data to the Mi.Net System's host software component—Mi. Host. 71) ., J Figure 2 Mi.Echo System: Based on next -generation proven LeakFinderRTTM technology. A DIVISION OF [Mueller System operators can view the locations of leaks to determine whether or not immediate repairs need to be made, and they can compare collected data to reports transmitted by other Mi.Echo nodes to rule out false leak alarms. Detected leaks can be viewed by utility workers online through the Mi.Host user interface, which is integrated with ESRI GIS Mapping software. rE 9 Figure 3 User Interface: Graphical and visual display of system status leveraging functionality of Mi.Host. Information provided by continuous monitoring improves Mi.Echo nodes are spaced at a maximum distance of 1,500 feet. The customer service. number of Mi.Hub data collection units for the pilot area have been determined based on the completed logger placement study and network survey. The Mi-Hub data collection units are not limited by the number of Mi.Echo nodes, but rather by local topography. A DIVISION of Mueller Co. Project Description The Mi.Echo automated leak detection system pilot will be installed within Fayettevilles' distribution main piping system. For the purposes of this proposal, 11 Mi.Echo nodes and 1 collector will be provided. (See attached propagation and logger placement study for target area) The specific locations of the hydrant nodes and the collector have been determined based on the completed logger placement study and network propagation study. Some of the factors that affected the placement of nodes and collector were local topography, elevation of the Mi.Hub collector, and area density. Pricing is provided in the Pricing Information section. Pricing Information Figure 5 shows pricing for the supply and installation of the Mi.Echo system pilot. _ .- .............. �. _ _._.-.__-....... .... _ .. Item _............. Est. Qty _ ._...._.__.._._...._ Sale Price Total Mi.Echo acoustic hydrant sensor node with Mi.Net radio ...............__._...___—_. 11 $1,200.00 $13,200.00 Mi.Hub data collector unit 1 $4,290,00 $4,290.00 Mi.Repeater unit Mi.Host, User Interface Software - leak detection and mapping .. functionality, <1 k units 1 $9;600.00 $9,600.00 GPRS data backhaul fees $360.00 $360.00 System Operations Training — Per Day 3 $1,500.00 $4,500.00 Engineering Services, project planning, node and collector installation and start up Lot $20,435.00 $20,435.00 Sub -total $52,385.00 Special Mi.Echo pilot discount 1 25.A! ;I,[ 0-;?} MLEcho Distribution Main Leak Detection System $26,985.00 Figure 5 —Pricing Table valid until October 31, 2016, not including any applicable taxes. "The price includes installation of the Mi.Echo system. Should any civil works or traffic control be required for installation, this would be the responsibility of Fayetteville. *Annual fees: MiHost - Fee will be no more than listed in price table above if number of loggers remains below 1000 units. For quantities of 11 to 100, price will be $3,500.00 Cellular Backhaul - $360.00 Collector Maintenance (Optional) - $450.00 A DIVISION OF , �uelll�r Co. Statement of Work Mueller Systems and Echologics propose the following technical details critical for the installation and operation of the Mi.Net AMI System. Acoustic Survey — Echologics will survey the proposed area to conduct a thorough acoustic analysis of the piping network and to validate and supplement the data provided by Fayetteville. Specific hydrants selected for installation of leak detection sensors will be dependent upon input from Echologics. Data Backhaul —3G Wide Area Network supported by AT&T will be used as the default communications to/from the Mi.Hub collector unit(s) and the Mi.Host data server. If available from the City, fiber or Ethernet connectivity is supported. Network Installation — The required Mi.Hub Collector is proposed to be installed on the Water Tower located at 36.096273 Lat &-94.143227 Lon. AC power will provided by Fayetteville. Mueller Systems: 1) Cooperate with Utility to identify locations for the Mi.Net infrastructure and the Mi.Echo nodes. 2) Prior to commencement of the system: a. Provide all required AMI system hardware b. Set-up a hosted Mi.Host AMI server and website for customer use. C. Provide the services of a qualified Mueller Systems Project Manager to conduct product hardware, software and service tool training for the Customer, as applicable. 3) Set up network communication between the Mi.Echo nodes, Mi.Hub collectors and the Mi.Host Software. 4) Supply all necessary system operational training to utility personnel during the pilot period. 5) Fully cooperate with Fayetteville in performing the required testing of the pilot products. 6) Assist Utility with installation and commissioning, as applicable for the product, and provide Customer Support in accordance with Echologics/ Mueller Systems policies, procedures and practices. A DIVISION OF ,�ueller C®. Fayetteville Responsibilities: 1) Assist Mueller Systems with site location and equipment installation of all AMI Pilot products in accordance with Mueller Systems standard product installation recommendations, including but not limited to: a. Mi.Hub network collectors. b. OWL or DC repeaters. 2) Provide traffic control during installation of repeaters. 3) Assist Mueller Systems in selecting locations for the Mi.Echo nodes. 4) Provide samples of every distinct type of hydrant cap before the start of the project. 5) Cooperate with Echologics/ M_ueller.Systems in. performance testing of all the AM[ System components for proper functionality. 6) Utility will monitor data via the Muller Systems Mi.Host User Interface (UI) web site. 7) Provide feedback on system operation. 8) Identify one person as a primary user and contact and data manager (Utility Project Manager) to provide a single channel of communications. A DIVISION OF p. Nlu�lhf SYSTEMS 10210 Statesville Blvd. P.O. Box 128 Cleveland, NC27013 Ph: 704.278.2221 Fx: 704,278.9616 www.MuellerSystems:cdm August 10, 2016 To whom it may concern: RE: Sole Source Vendor for Mi.Net® Thank you for your interest in the Mueller Infrastructure System (Mi.Net). The Mi.Net system links water meters, Mi.Echo leak detection sensors, and other control devices in an efficient wireless network for real- time access. This smart, migratable solution provides the ultimate in flexibility and scalability for water utilities. The Mi.Net System is the only Full 2-Way Meter Management AMI system that includes permanent leak detection installed inside the fire hydrant available on the market today. Mueller Systems is the sole source of the Mi.Net System and no other company or firm sells or distributes directly to The City of Fayetteville Arkansas. Competition in providing many of the Mi.Net System products are precluded by the existence of multiple patents and patents pending. As a few examples: • US Patent: 9291502 — Acoustic Leak Sensor in a Fire Hydrant • US Patent: 8660134 — Systems and Methods for Time -Based Hailing of Radio Frequency Devices • US Patent: 8833390 — Remote Disconnect Water Meter • US Patent: 8047072 — Composite Water Meter with. Metal. Threads • US Patent: 8994551 — Systems and Methods for Remote Utility Metering and Meter Monitoring • US Patent: 6453247 — PC Multimedia -Based Leak Detection System for Water Transmission Pipes • US Patent: 8931505 — Infrastructure monitoring devices, systems, and methods There are no other like System's available for purchase that would serve the same purpose or function and there is only one price for the Mi.Net System because of exclusive distribution and marketing rights. Mueller Systems provides Smart Metering solutions to optimize the delivery and use of water. Municipalities that supply water need innovative ways to increase efficiencies, reduce costs, conserve water, and improve customer service. For more than 150 years, the most practical, respected and intuitive products in the water industry have been built by the company now known as Mueller Systems. Sincerely, /M 41 7"�, Matt Thomas District Manager SOLE SOURCE JUSTIFICATION PURPOSE: This form, with one or more categories completed, must accompany purchase requisitions for the sole source procurement of equipment, services or supplies exceeding $1000 (purchased from State Contract venders excepted). The purpose of sole source justification is to show that competitive bidding is impractical because only one product or service provider can meet a specific need. Therefore, an equitable evaluation of comparable products or services must be made and documented by the requester who shows that rejection of other products or services is based solely on their failure to meet that need. In cases where no other comparable source can be identified, a technical description of the product requested and a listing of those companies which were considered as alternative sources must be provided. Quality can be a subjective evaluation based upon opinion. Municipal (public) procurement law requires price considerations be evaluated via competitive quoting or bidding. While all sole source justifications are subject to review, sole source justified purchases of $20,000.00 or more must be publicly bid or a bid waiver approved by Council. Justifications must contain clear, in-depth, and accurate information in order to avoid protests and the possibility of delaying the procurement. INSTRUCTIONS: 1. Please type or print legible in ink. 2. Complete all categories and sections that apply. 3. Provide full explanation, complete descriptions, and/or list all relevant reasons where space has been provided. Sole Source Justification forms lacking sufficient detail cannot be approved. 4. Sign and date the form in the space provided for "signature". 5. Improperly completed, and/or unsigned forms will be returned to the sender. TO: Purchasing Division Date: 9)14116 FROM: Jeff Mincy Mark Rogers Dept; water & Sewer Names of Requisitioner and Dept. Head SUBJECT: Sole Source Justification Purchase Requisition (attached) Proposed Vendor Mueller systems Product Description Mueller Mi.Echo Leak Detection system for Water Distribution STATEMENT I am aware that Fayetteville Code of Ordinances, "I'itle III Administration, Chapter 34, Article 11 mandates that the procurement of services, materials, equipment and supplies be via competitive quotes whenever the amount is over $1,000.00. However, I am requesting sole source procurement based on the following criteria. (Attach additional sheets as necessary): 1. The requested product is an integral repair part or accessory compatible with existing equipment. (please state the manufacturer and model number of existing equipment): The Mueller Mi:Echo automated leak detection system will be installed along a section of Water distribution main. The system nodes are compatible with the Mueller Centurion A-423 fire hydrants in use within the City of Fayetteville water distribution system. 2. The requested product has special design/performance features which are essential to my needs. Both.A and 13 portions of this category must becon)[ leted. A. These features are: The Mueller Infrastructure System (Mi.Nel) links water meters, Mi.Echo leak detection sensors, and other control devices in an efficient wireless network for real-;ime access. This smart, migralable solution provides the ultimate in flexibility and scalability for water utilities. B. In addition to the product requested, 1 have contacted other suppliers and considered their product of similar capabilities. I find their product unacceptable for the following reasons (identify companies contacted, individuals contacted, model number and specific technical deficiency). There are no other like System's available for purchase that would serve the same purpose or function and there is only one price for the Mi.Nel System because of exclusive distribution and marketing rights. 1 1 have standardized the requested product/service; the use of another - would require considerable time and money to evaluate. Explain: 4. The requested product is one which 1 (or my staff) have specialized training and/or extensive experience. Retraining would incur substantial cost in money and/or time. Explain: S. Please consider sole source approval for this reason(s) (e.g. trade-in allowance; availability of services, parts and maintenance; product is a prototype; inventory of parts are maintained, etc.): Mueller systems has provided a substantial Pilot pricing discount of-$25,400.00 from the subtotal of $52.385.00 leaving a balance due of $26,985.00 for this purchase. Authorization: Full Name and Title of RegUlsltloner JeffMincy -lead Warehouse Attendant ���� (typed or printed in ink) Signature _ }`ylly��'`� Date 9/14/16 Full Name of Division Head Mark Rogers -Operations Manager (typed or printed in ink) 1/2016 SlgrlatUl'C; _y`' Date 09/11