AGENDA TITLE:
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Adopt a Resolution Authorizing City Manager to Execute 5-Year Professional Services Agreement with MARS Company, of Ocala FL for Water Meter Bench Annual Software Subscription and Maintenance Services ($297,315) (PW)
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MEETING DATE:
January 15, 2025
PREPARED BY:
Public Works Director
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing City Manager to execute 5-Year Professional Services Agreement with MARS Company, of Ocala FL for Water Meter Bench Annual Software Subscription and Maintenance Services in the amount of $297,315.
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BACKGROUND INFORMATION:
On November 16, 2022, the City Council approved the purchase of a Water Meter Test Bench System (Meter Test Bench) and associated software from the MARS Company in the amount of $252,220. The Meter Test Bench has been in service since early 2023. Staff utilizes the Meter Test Bench to periodically test water meters that are in service to assure accuracy. The American Water Works Association (AWWA) recommends that residential water meters be tested at least once every 10 years. Lodi currently has over 17,000 residential water meters in service.
The original Meter Test Bench purchase agreement included a one-year software license subscription, in addition to initial start-up, calibration and certification services that included a term through January 2024. On February 26, 2024, the City executed a Professional Services Agreement (Agreement) with MARS in the amount of $52,060 to provide a one-year subscription for software maintenance, calibration and certification services. Staff initiated the short-term Agreement to observe if any of these services could be conducted in-house to save costs. Staff determined that these services require specialized expertise and find it most appropriate for MARS to continue performing the contract services. These services (necessary for proper Meter Test Bench operation) are due to expire at the end of January 2025.
To take advantage of substantial cost savings, Staff recommends the five-year agreement for the software license subscription and maintenance, calibration and certification services (Exhibit A). The software license subscription is required to operate the bench in various automated testing formats ranging from 3/4 to 2-inch meters. Also as noted above, Staff recommends including the maintenance, calibration and certification service provided by MARS due to their specialized expertise. By entering into a multi-year contract, the City will see a total savings of $83,078 (or 21.8%) over the five-year term.
The MARS Company is the sole-source vendor (for the Water Meter Test Bench System and associated M3 Meter Management System Software. Per Lodi Municipal Code, Section 3.20.070, Bidding, the bidding process may be dispensed when the commodity can be obtained from only one vendor, due to need for branded replacement parts or supplies for equipment of like brand.
Staff recommends adopting a resolution authorizing the City Manager to execute a 5-year Professional Services
Agreement with MARS Company, of Ocala FL, for Water Meter Bench Annual Software Subscription and Maintenance Services in the amount of $297,315.
STRATEGIC VISION:
5C. Infrastructure: Address deferred maintenance.
FISCAL IMPACT:
Accurate water meter reads are critical to accurate customer billing, maintaining utility revenues and meeting mandatory state compliance. This purchase does not impact the General Fund.
FUNDING AVAILABLE:
Water Operations (56052004.72450)
Fiscal Year 24/25 $54,143
Fiscal Year 25/26 $56,678
Fiscal Year 26/27 $59,335
Fiscal Year 27/28 $62,120
Fiscal Year 29/30 $65,039
Total: $297,315
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Charles E. Swimley
Public Works Director
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Scott R. Carney
City Manager