REPORT TO THE CITY COUNCIL March 18, 2021 FROM: MICHAEL CARBAJAL, Director Department of Public Utilities THROUGH: BUD TICKEL, Assistant Director Department of Public Utilities - Water Division BY: MARTIN WENDELS, Project Manager Department of Public Utilities - Water Division SUBJECT ..Title Award a Requirements Contract to PACE Supply, Corp., of Fresno, California in the amount of $164,513.98 for meter boxes, lids and related parts for a term of one-year with the possibility of four one-year extensions, for a total contract value of $822,569.90, plus any Producer Price Index increases. Bid File 9586 (Citywide) ..Body RECOMMENDATION Staff recommends that Council award a one-year contract with provisions for four one-year extensions to PACE Supply, Corp., in the amount of $164,513.98 to provide meter boxes, lids and related parts, and authorize the Director of Public Utilities, or designee, to sign the agreement on behalf of the City. EXECUTIVE SUMMARY The Department of Public Utilities, Water Division, is seeking to award a Requirements Contract to PACE Supply, Corp., of Fresno, California, to provide meter boxes, lids and related supplies. After updating meter box and lid specifications to accommodate the recent upgrades to the automatic meter reading system, bids were competitively solicited and PACE Supply, Corp., of Fresno, California was determined to be the lowest responsive and responsible bidder. 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. Over time, water meter and transmitter upgrades have occurred which have resulted in a need for meter boxes and lids to change as well. The existing lids do not allow signal transmission to occur from the new meter units and therefore, they must be changed out. The Water Division plans to retrofit the meter box lids during over the next few years and will total approximately 140,000 units. In addition, an inventory of the new lids is required for installation of all new services and any needed repairs. On December 21, 2020, updated specifications were made available and advertised as a Notice Inviting Bids for a Requirements Contract on PlanetBids. On January 19, 2021, bids were received and opened. A total of three companies submitted bid proposals. One bidder was non-responsive, resulting in two acceptable bids. PACE Supply, Corp., of Fresno, California was the lowest responsive and responsible bidder submitting a bid in the amount of $164,513.98. The bid will expire within 64 days of bid opening, on March 24, 2021. Staff recommends that Council award a one-year contract with provisions for four one-year extensions to PACE Supply, Corp., of Fresno, California in the amount of $164,513.98. City Attorney has reviewed and approved to form. ENVIRONMENTAL FINDINGS By definition provided in the California Environmental Quality Act Guidelines Section 15378, the award is this requirements contract does not qualify as a "project". LOCAL PREFERENCE Local preference was not implemented as both responsive and responsible bidders are local companies pursuant to the Fresno Municipal Code Section 4-108. FISCAL IMPACT The General Fund is not impacted by this citywide expenditure. Appropriations for the purchase of the meter boxes and lids are included in the FY 2021 Water Enterprise Fund budget. Attachments: -Bid Evaluation and Fiscal Impact Statement -Sample Requirements Contract