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File #: 22-644    Version: 2
Type: Consent Calendar Status: Passed
File created: 7/21/2022 In control: City Council/Public Financing Authority
On agenda: 8/2/2022 Final action: 8/2/2022
Title: Approve Sole Source Procurement Request for Ferguson Waterworks 1083 for Neptune Water Meters
Attachments: 1. Att#1 Ferguson 7-6-22-signed



SUBMITTED TO:                     Honorable Mayor and City Council Members                     


SUBMITTED BY:                     Al Zelinka, City Manager                     


VIA:                     Sean Crumby, Director of Public Works


PREPARED BY:                     Chris Davis, Senior Administrative Analyst




Approve Sole Source Procurement Request for Ferguson Waterworks 1083 for Neptune Water Meters



Statement of Issue:

Submitted for City Council approval is a sole source procurement request in the amount of $250,000 for Ferguson Waterworks 1083 for Neptune Water Meters


Financial Impact:

Funds for these water meter parts are included in the FY 2022-23 Budget in Water Enterprise Fund Business Unit 50685805.


Recommended Action:


Approve the sole source procurement of Neptune Water Meters from Ferguson Waterworks 1083.



Alternative Action(s):

Do not approve the sole source procurement request, and direct staff accordingly.



There are approximately 55,000 water meters in the City of Huntington Beach’s water distribution system.  The typical useful life for a water meter is 15 to 20 years.  Older meters tend to be less accurate and more prone to maintenance issues over time.  As such, the City implements a water meter replacement program that replaces meters at 15 years to obtain maximum value while ensuring that our customers are billed accurately.


The Water Meter section of the Public Works Department recently began a new cycle of its 15-year water meter (approximately 2,500 meters per year) replacement program, and it is operationally preferable to utilize one brand of water meters in the program.  However, if the department mixes and matches various brands, it becomes costly and time consuming to train staff to maintain each meter type, as well as to warehouse extra parts and materials for each brand.  As such, the Department believes it is critical for operational efficiency to utilize only one meter brand in the program.  Therefore, it would likely be impractical to advertise for bids from various meter manufacturers every (3) three years, resulting in a patchwork system comprised of various types of meters.


With the exception of specialty and large meters, all water meters in the City thus far are Neptune brand water meters.  Per the attached letter from Neptune Technology Group, Inc., Ferguson Waterworks has exclusive rights in California to the Neptune product line.  The Public Works Department has utilized Ferguson since 2004.


Huntington Beach Municipal Code Chapter 3.02 Purchases of Goods and Services states that sole source procurements are exempt from competitive bidding requirements and are allowed in those cases where the procurement of any product or supply is obtainable only from a single or sole source.  The proposed water meter purchase from Ferguson would be an example of such sole source procurements.


Environmental Status:

Not Applicable


Strategic Plan Goal:

 Non Applicable - Administrative Item



1.                     Sole Source Justification