TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. Subject
title
Authorize purchase of water meters from Ferguson Waterworks as the sole authorized distributor of Neptune Technology Group, Inc. in the State of California.
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2. Summary
Neptune Water Meters have been approved as the standard water meter in the City of Orange. Neptune Meters are used exclusively to ensure meter reading compatibility with our water billing system. Approximately, 1,800 meters are replaced each year as part of an on-going meter replacement program. Staff is requesting the authorization to purchase replacement meters in the amount of $400,000 from Ferguson Waterworks during Fiscal Year 2024-2025.
3. Recommended Action
recommendation
Approve the purchase of replacement water meters from Ferguson Waterworks in the amount of $400,000 for Fiscal Year 2024-2025.
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4. Fiscal Impact
The expense for this purchase is $400,000 and will be funded upon adoption of the proposed Fiscal Year 2024-2025 budget through Water (600):
600.8041.56032.18102 Meter Replacement Program $200,000
600.8011.55470.00000 Meters 50,000
600.8041.55470.00000 Meters 150,000
Total: $400,000
5. Strategic Plan Goals
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
6. Discussion and Background
For the past 20 years, the City has been using Neptune Technology Group, Inc. (Neptune) water meters and hand-held meter reading devices. Neptune products have proven themselves dependable and are continuously improving data collection speed and accuracy. These products have also facilitated data transfer to the water billing system. Neptune products, which include water meters, remote read water meters, hand-held meter reading equipment, and related software, are proprietary. Neptune uses specific data collection and transfer software and technology unique to its own specific applications. To ensure continued data collection compatibility for ongoing meter reading operations, the City has purchased Neptune meters exclusively. The City Council has previously authorized Neptune Technology Group, Inc. as a sole source vendor, and this sole source specification is a continuation of that policy.
With approximately 36,000 meters in the system, the City has an ongoing need to replace meters as they break, become stuck, or need to be upgraded with more efficient radio read meters as water projects or developments are constructed. The City replaces approximately 1,800 meters annually as part of the meter replacement program. Additionally, the new meters allow for the automated method of gathering meter reads, consumption data, and other system information that will benefit water operations and customers.
The City has previously found the most cost-effective method for purchasing meters in volume is directly from Neptune. However, Neptune has stopped selling their products directly to customers. All Neptune products are now sold through Ferguson Waterworks, which serves as Neptune’s sole authorized distributor in California. It is for these reasons that the Public Works Department Water Division is requesting this sole source purchase of water meters from Ferguson Waterworks. Staff will continue to monitor both cost and alternative products to ensure the City is getting the best value available.
7. ATTACHMENTS
• Ferguson Waterworks - Sole Authorized Distributor in State of California Letter