REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
BY: MARTIN WENDELS, Project Manager
Department of Public Utilities - Water Division
SUBJECT
Title
Reject all bids for the Requirements Contract for meter boxes, lids, and related parts (Bid File 9665) (Citywide)
Body
RECOMMENDATION
Staff recommends that Council reject all bids for the Requirements Contract for meter boxes, lids, and related parts (Bid File 9665).
EXECUTIVE SUMMARY
The Department of Public Utilities - Water Division, seeks to reject the sole bid proposal for the Requirements Contract for Meter Boxes. The sole proposal received in the amount of $519,324.65 by Pace Supply, Corp. (Pace) was determined to be in excess of the current contract by more than 200 percent. The current contract is with Pace and has two one-year extensions remaining.
BACKGROUND
The City of Fresno has utilized Badger meter products since the inception of the automatic water meter reading program which was completed at the end of 2012. Upgrades to water meter and transmitter technology have occurred which have resulted in a need for meter boxes and lids to change as well. The current meter box and lid configuration do not accommodate the newest transmitter technology and require retrofitting in order to allow acceptable fit and signal transmission. In an effort to minimize retrofitting costs and expedite the installation process, Water Division staff revised the meter box specifications to match the current transmitter technology needs and advertised an updated requirements contract.
On August 31, 2022, four (4) Building Exchanges were provided with updated specifications and a Notice Inviting Bids for a Requirements Contract for Meter Boxes (BF 9665). Six (6) specifications were distributed to prospective bidders. On October 25, 2022, a total of one (1) bid was received and opened. Pace was determined to be the sole responsible and responsive bidder. The sole bidder proposed a new contract value that exceeded their current contract by over 200 percent. After considerations were made with respect to the methods and costs needed to retrofit the current meter box and lid, it was determined that the proposed contract could not be justified.
The Department of General Services - Purchasing Division has engaged with Pace and has implemented the first of two remaining one-year extensions of the current requirements contract which will allow an uninterrupted supply of meter boxes and lids. Water Division staff will continue to retrofit the current design to accommodate the updated technology until the end of the requirements contract cycle. Staff recommends that Council reject all bids.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378, the rejection of all bids does not qualify as a “project”.
LOCAL PREFERENCE
Local preference is not applicable as this action is not an award of a contract.
FISCAL IMPACT
The rejection of all bids has no financial impact on the General Fund or the Water Division Enterprise Fund.
Attachment: Bid Evaluation BF9665 Meter Boxes