CITY MANAGER MEMORANDUM. The Honorable Mayor Kelley and City Commissioners. Auto Renew Contracts for Pace Analytical & Neptune Meters

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1 CITY MANAGER MEMORANDUM To: Through: From: The Honorable Mayor Kelley and City Commissioners Joyce A. Shanahan, City Manager Kelly A. McGuire, Finance Director Date: August 11, 2011 Subject: Auto Renew Contracts for Pace Analytical & Neptune Meters Introduction: This is a disposition item notifying the City Commission of staff s intent to allow certain contracts to automatically renew. Background: Several of the City s contracts allow for automatic renewal after the initial term of the contract. In the past, these contracts have been renewed at the discretion of the contract manager. Staff has amended the purchasing policies to provide for a broader review of contract renewals. Under the new policy, the contract manager is required to provide a written justification to renew to the Finance Director and Purchasing Coordinator for review and approval. Additionally, for contracts in excess of $25,000, notification of the intent to renew will be provided to the City Commission. Discussion: Following are contracts approaching their renewal date: Laboratory Testing Services Agreement Pace Analytical Services, Inc. Contract Manager, Dave Ponitz The City of Ormond Beach first entered into the current laboratory testing services agreement with ELAB on December 7, 2007 as a result of award of Bid No The City Commission previously authorized Consent to Assignment and Amendment to Laboratory Testing Services Agreement to Pace Analytical Services, Inc., 8 East Tower Circle, Ormond Beach, FL 32174, in October 2008 as a result of an acquisition of ELAB in August All original agreement terms and conditions remain in effect since the time of the agreement assignment. Staff has received notice from the vendor that no pricing increases are anticipated during the agreement period. The current agreement contains several unit prices for a wide range of laboratory testing services and activities to support all necessary water and wastewater regulatory standards and requirements. The laboratory well supports the City s laboratory testing needs and is proficient in their response to all City requests for reporting of sample test results. The City recently worked with Pace Analytical to provide property tax abatement for their new 8,000 square foot, state of the art soil and water testing facility, worth 2.25 million located within the City s Airport Business Park. Pace is headquartered in Minneapolis, Minnesota and is the second largest environmental testing laboratory in the United States.

2 The Honorable Mayor and City Commissioners August 11, 2011 Page 2 of 2 The current agreement automatically renews for successive one (1) year terms unless terminated by the parties with ninety (90) days written notice. To date, the agreement continues to appropriately serve interests of both parties. Based on the continued service levels provided by the vendor and noting the company is well invested in our local community, staff intends to renew for an additional year thereby extending the contract until December 7, Water Meter Purchasing Agreement (Sole Source) Sunstate Meter & Supply, Inc. (Neptune Meters) Contract Manager, Dave Ponitz The City of Ormond Beach made a decision to standardize on water meter products manufactured by Neptune Technology Group, Inc. and purchased meters from 2001 through 2006 in accordance with a piggy-back of a competitively bid meter purchasing agreement with Sunstate Meter & Supply, Inc. (sole source provider of Neptune products in Florida) as further referenced by City Resolution No The purchase of Neptune meter products continued as sole source purchase agreements with Sunstate Meter & Supply, Inc. of Newberry Florida in 2006 and again in 2008 as a result of vendor requested pricing adjustments requested at various times and as referenced in Resolution Nos and The current agreement contains several unit prices for a wide range of standardized metering devices used by the City to include scheduled and emergency delivery timing requirements. The vendor continues to proficiently support the City s varying meter procurement needs within desired delivery timeframe. Vendor also indicates that no pricing increases are anticipated during the upcoming agreement period. The current agreement was for a one (1) year period beginning in January 2008 and automatically renews for successive one (1) year terms unless terminated by the parties with thirty (30) days prior written notice. To date, the agreement continues to appropriately serve interests of both parties. Based on the continued service levels provided by the vendor and current City meter equipment standardization practices with Neptune products, staff intends to renew this sole source agreement with Sunstate Meter & Supply, Inc. for an additional year until December 31, Recommendation: This item serves as public notification of the intent to renew the aforementioned contracts. No action is required by the City Commission. Reviewed by: Approved by: Prepared by: /s/ Theodore S. MacLeod P.E., Assistant City Manager /s/ Joyce A. Shanahan City Manager David C. Ponitz, P.E., Utilities Manager Date Date

3 "Florida's Leading Distributor ojauto!nated Meter Reading Systems" August 3, 2011 Ms. Kelly A. McGuire Budget Director City of Ormond Beach P.O. Box 277 Ormond Beach, FI Phone: Fax: RE: CONTRACT PRICING - NEPTUNE WATER METERS Description Neptune, 5/8"x3/4" Tl0 Meter Complete W/Direct Read Gallon Register Complete WIR900i RF Ecoder/MIU Neptune, 5/8"x3/4" Tl0 Double Check Backflow Meter Complete W/Direct Read Gallon Register Complete W/R900i RF Ecoder/MIU Neptune, %"x3/4" T 10 Meter Complete W/Direct Read Gallon Register Complete W/R900i RF Ecoder/MIU Neptune, 1" T 10 Meter Complete W/Direct Read Gallon Register Complete WIR900i RF Ecoder/MTU Neptune, 1 1'2" TlO Meter Complete W/Direct Read Gallon Register Complete WIR900i RF Ecoder/MTU Neptune, 2" TlO Meter Complete W/Direct Read Gallon Register Complete W/R900i RF Ecoder/MTU Neptune, 1 W' HP Turbine Meter Complete W/Direct Read Gallon Register Complete W/R900i RF Ecoder/MTU Unit Price $33.50 $83.50 $ $ $ $ $65.50 $ $ $90.75 $ $ $ $ $ $ $ $ $ $ $571.00

4 "Florida's Leading Distributor ()j'automated Meter Reading Systems" Neptune, 2" HP Turbine Meter Complete WlDirect Read Gallon Register Complete W1R900i RF EcoderlMIU $ $ $ Neptune, 3" HP Turbine Meter Complete W/Direct Read Gallon Register Complete WIProread Gallon Encoder & Pad Complete WIR900i RF EcoderlMIU Neptune, 4" HP Turbine Meter Complete WlDirect Read Gallon Register Complete WIProread Gallon Encoder & Pad Complete W/R900i RF EcoderlMIU Neptune, 6" HP Turbine Meter Complete WlDirect Read Gallon Register Complete W/R900i RF EcoderlMIU Neptune, 8" HP Turbine Meter Complete WlDirect Read Gallon Register Complete WIR900i RF EcoderlMIU Neptune, 10" HP Turbine Meter Complete WlDirect Read Gallon Register Complete WlProread Gallon Encoder & Pad Complete W1R900i RF EcoderlMIU $ $ $ $1, $1, $1, $2, $2, $2, $3, $3, $3, $5, $5, $5, Neptune, 2" Tru Flo Compound Meter Complete W/Proread Gal Encoders & Pad $1, Complete WIR900i RF EcoderlMIU's $1, Neptune, 3" Tru Flo Compound Meter Complete W/Proread Gal Encoders & Pad $1, Complete WIR900i RF EcoderlMIU's $1, Neptune, 4" Tru Flo Compound Meter Complete W/Proread Gal Encoders & Pad$I, Complete W/R900i RF EcoderlMIU's $2, Neptune, 6" Tru Flo Compound Meter Complete W/Proread Gal Encoders & Pad $3, Complete W/R900i RF EcoderlMIU's $3, Neptune, 6"x8" Tru Flo Cmpd Meter Complete W/Proread Gal Encoders & Pad $5, Complete W/R900i RF Ecoders/MIU's $5, Neptune, 4"xl" HPpm Fire Service Compound Meter Complete WlProread Gal Encoders & Pad Complete W/R900i RF EcoderlMIU's Neptune, 6" x 1 Yz" HPPIII Fire Service Compound Meter Complete W/Proread Gal Encoders & Pad Complete WIR900i RF EcoderslMIU's $5, $5, $5, $6,082.00

5 "Florida '5 Leading Distributor olautomated Meter Reading S,.vstems" Neptune, 8" x 2" HPPIII Fire Service Compound Meter Complete WIProread Gal Encoders & Pad Complete WIR900i RF Ecoders/MfU's $8, $8, Neptune, 10" x 2" HPPIII Fire Service Compound Meter Complete W/Proread Gal Encoders & Pad Complete W/R900i RF Ecoders/MfU's Neptune, 2" Bronze Flanged Meter Strainer Neptune, 3" Bronze Flanged Meter Strainer Neptune, 4" Bronze Flanged Meter Strainer Neptune, 6" Bronze Flanged Meter Strainer Neptune, 8" Bronze Flanged Meter Strainer Neptune, 10" Epoxy Coated Flanged Meter Strainer Neptune, R900 Wired Pit Mill Complete W/Antenna (to convert wired Proread meters to R900 RF read - any size) Neptune, R900 Replacement Pit Coax Antenna Only Neptune, R900i Wireless Ecoder/RF Mill (to convert any Neptune meter to R900i "wireless" system - any size) Price Adder - Optional "Reclaimed" Purple Trim & Markings (per register) Neptune, 3" Portable Fire Hydrant Meter Complete W/Direct Read GaJlon Register, Hydrant Connections, & Gate Valve Neptune, Proread Register Upgrade to R900i Integrated Ecoder/Transmitter (Requires trade-in of existing Proread Register) $11, $11, $ $ $ $ $1, $2, $ $45.00 $ $3.00 $ $ Neptune, Proread Register Wired to R900 Mill Upgrade to R900i Integrated $99.00 Ecoder/Transmitter (requires trade-in of existing Proread register and wired Mill) Pricing valid Through: December 31,2012 Freight: Allowed I hope this quotation meets with your approval. Ifyou have any questions, please do not hesitate to contact me. l!pc~fi~~,d.a,...-"",, N.A. (Al) Ellenburg President/Owner