REPORT TO THE CITY COUNCIL March 26, 2015 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: BUD TICKEL, Water Systems Manager Department of Public Utilities - Water Division CHRISTOPER CARROLL, Water System Supervisor Department of Public Utilities - Water Division SUBJECT ..Title Award a requirements contract in the amount of $182,807 to All West Equipment dba Frank A. Olsen Co., for magnetic flow meters and authorize the Director of Public Utilities, or their designee to execute a one-year contract with provisions for two one-year extensions - Bid File 9316 (Citywide) ..Body RECOMMENDATION Staff recommends City Council award a requirements contract in the amount of $182,807 to All West Equipment dba Frank A. Olsen Co. ("All West Equipment") for magnetic flow meters and to authorize the Director of Public Utilities, or their designee, to execute a one-year contract with provisions for two one-year extensions. EXECUTIVE SUMMARY The Department of Public Utilities - Water Division, currently has approximately 260 active groundwater pumping stations located within the Fresno area. Each well is mandated by the State Water Resources Control Board to have a working flow meter that measures both actual flow and total flow. The execution of a requirements contract with one supplier establishes a firm price, secured through competitive bidding, for a specified time, and allows the City to make purchases as needed. Funding for this requirements contract is included in the FY2015 budget. Staff recommends award of a requirements contract to All West Equipment for these magnetic flow meters in the amount of $182,807. BACKGROUND The Department of Public Utilities - Water Division, currently has multiple magnetic flow meters that are at the end of service life, inaccurate, and not capable of being repaired. Therefore, the Water Division has developed a plan to replace these flow meters over the next five years to remain compliant with the State Board and retain the ability to accurately monitor our production flows of groundwater. A Notice Inviting Bids was published on December 10, 2014, per the City of Fresno Charter Section 1208. Ten Building Exchanges were faxed Notice Inviting Bids, and 30 specifications were distributed to prospective bidders. The bid opening was on January 6, 2015, and four bids were received ranging from $181,656 to $231,333. Telstar Instruments submitted the lowest bid price in the amount of $181,656, but is non-local. Southwest Valve, LLC, submitted the next lowest bid of $181,796, but was determined non-responsive by the City Attorney's Office due to exceptions that were either material in terms or would materially alter the terms of the contract. All West Equipment submitted the third lowest bid of $182,807, and is considered the lowest responsive and responsible bidder taking local preference into account. The Notice of Staff Determination of Contract Award was posted on the City's website on February 27, 2015. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 the award of this contract does not qualify as a "project" for the purposes of the California Environmental Quality Act. LOCAL PREFERENCE Local preference was implemented because All West Equipment qualifies as a local business pursuant to Fresno Municipal Code Section 4-108(b) and is within the allowable preference; therefore, considered the lowest responsive and responsible bidder. FISCAL IMPACT The expenditure, which is citywide, will not have any impact to the General Fund. Appropriations for magnetic flow meters are included in the Water Division's FY2015 Capital Improvement Program budget within the Water Enterprise Fund (40101). Funding for this expenditure was included in the water rate model used to create the five-year utility rate plan and subsequently adopted by City Council on February 26, 2015. Attachment: Bid Evaluation