Title
Resolution to Approve the Purchase of Residential Water Meters from Michigan Meter Technology Group, Inc. $75,360.60 for a Period of Three Years ($226,081.80; Bid No. ITB-4407)
Memorandum
Attached for your review and consideration is a resolution authorizing up to $75,360.60 per fiscal year for the purchase of residential water meters from Michigan Meter Technology Group, Inc. for a period of three years (FY 2016 to FY 2018).
The purchase was advertised on the City’s website and on the Michigan Inter-governmental Trade Network (ITB-4407). Three bids were received and publically opened on October 22, 2015. The lowest responsible bid was from Michigan Meter Technology Group, Inc. in the amount of $50,240.40 for annual residential meter needs. Attached is a tabulation of the bids received for this purchase.
The bid amount represents recent average annual meter needs. Due to the variability in meter demand associated with private development, an annual contingency of 50% is requested on the approved bid amount to ensure the City can maintain an adequate inventory of residential meters.
The City must keep adequate parts inventory to accommodate new requests and install replacement units in a timely manner so that water use data collection is not interrupted.
Budget Impact:
Funding is available in the approved FY 2016 Water Supply System and Sewage Disposal System operating budgets and will be available in subsequent budgets if approved by Council.
Michigan Meter Technology Group, Inc. complies with the City’s Non-Discrimination and Living Wage ordinances.
Staff
Prepared by: Chris Elenbaas, P.E., Field Operations
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved by: Tom Crawford, Interim City Administrator
Body
Whereas, The Public Services Area needs to purchase residential water meters and supplies for operations and maintenance of the water and sanitary system;
Whereas, Three competitive bids (ITB-4407) were received by the Procurement Unit on October 22, 2015. Michigan Meter Technology Group, Inc. was the lowest responsible bidder with a submitted bid of $50,240.40 for annual residential water meter needs;
Whereas, Water meter inventory needs fluctuate with repair and development demands and so to ensure parts are available, an annual contingency amount of $25,120.20 shall be provided, for a total annual residential water meter purchase of up to $75,360.60;
Whereas, Funding is available in the approved FY 2016 Water Supply System and Sewage Disposal System budgets, and will be available in subsequent budgets if approved by Council; and
Whereas, Michigan Meter Technology Group, Inc. complies with the City’s Non-Discrimination and Living Wage ordinances.
RESOLVED, That Council approve the issuance of a purchase order to Michigan Meter Technology Group, Inc. in the amount of $50,240.40 per fiscal year for the next three years for the purchase of residential water meters, pending budget approvals in FY 2017 and FY 2018;
RESOLVED, That a contract contingency amount of $25,120.20 be established each year, pending budget approvals in FY 2017 and FY 2018, and that the City Administrator be authorized to approve additional change orders to the purchase order, not to exceed $25,120.20 annually, in order to have adequate water meter inventory to meet customer demand; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.