TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA
TITLE: Approve Change Order No. 1 to the Sole Source Purchase of Neptune Advanced Metering Infrastructure (AMI) Water Meters from Ferguson Enterprises, LLC. dba Ferguson Waterworks for an Additional Amount of $3,507,512, for a Total Cost of $3,736,970
Recommended Action
Approve Change Order No. 1 to the Sole Source purchase of Neptune Advanced Metering Infrastructure (AMI) water meters from Ferguson Enterprises, LLC dba Ferguson Waterworks for an additional amount of $3,507,512, for a total cost of $3,736,970.
Background Information
Utilities currently utilizes Neptune meters in the distribution system, which consist of radio read and manual read meters. The AMI automation and meter replacement project will create an integrated system to collect detailed metering information throughout the City’s utility service area. With only two (2) meter readers in a rapidly growing city, the need for automation is evident to improve data collection efficiencies, identify and address potential issues, and improve customer service with residents and businesses in the area.
The city would convert current water meters to the AMI endpoints so that data collection would be automated versus being physically collected by meter readers. Data collected will be used to enhance customer convenience and service through a customer portal, which will allow a greater customer control of their consumption and alert parameters. This will enhance our services to become more proactive and promote water conversation through continually monitoring.
The solicitation for the AMI meters was publicly advertised on February 8, 2024, with Ferguson Enterprises, LLC selected as the chosen vendor for their AMI solution. The contract is currently under review by legal and in the process of being fine-tuned to capture all the necessary provisions and agreed upon terms. Since the manufacturer of the selected meters will remain the same, the newer version of the meters will be purchased with the end point being the piece that will change the remittance of the reads with a cellular based remittance.
The department currently has a purchase order with Ferguson Enterprises, LLC. approved as a Sole Source for a total amount of $229,457.40 to purchase the newer version of the meters. Utilities has purchased the new meters up to the threshold approval but will need to purchase more to keep up with new installs and conversions. The procurement method will still be a sole source with Utilities requesting additional approval for the remainder of the budgeted funds for meters.
Once the contract has been finalized, it will be brought forward to Commission for consideration. The purpose of the contract is to outline the training program that Ferguson Enterprises, LLC. will provide for all existing and new staff, to lock in the three (3) free years of the Neptune 360 software, incorporate a buyback program for the remaining inventory of the old meters, and other performance and warranty provisions.
Strategic Plan
Infrastructure & Facilities
Good Governance
Financial Impact
The amount of $3,507,512.00 is available in the account numbers below and budgeted for fiscal year 2025 in the respective project:
|
Account Number |
Project |
Available Amount |
|
420-6063-536.63-00 |
U25AMI |
$ 3,507,512.00 |
Procurement
Advanced Water Meter System project was procured pursuant to Chapter 2 - Administration, Article VIII - Procurement, Section 2-407 of the City Procurement Code - Sole Source guidelines.
Attachments:
1. Sole Source Change Order Request
2. Sole Source Procurement Request
3. Sole Source Letter
4. Florida Division of Corporations Documents
Prepared by: Michelle Tipp, Utilities Senior Business Manager
Department Director: Tricia Wisner, Interim Utilities Director