Placement: Consent Agenda
Action Requested: Motion / Vote
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Ratify the Additional Expenditures for FY2025-2026 and Approve the Renewal for an Additional Period for Contract #20230033 for the Supply of Water Meters and Related Parts.
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Submitted By: Robyn Holder, CPPB, Procurement Management Division (PMD).
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Robyn Holder, CPPB (PMD).
2. Parties: City of Port St. Lucie and Ferguson Enterprises, LLC.
3. Purpose: To continue to provide radio-read water meters and related parts for potable water service.
4. New/Renewal/Modified: Modified.
5. Duration: The remainder of a one-year additional term through March 27, 2027.
6. Benefits to Port St. Lucie: The Utility Systems Department (USD) has purchased Neptune radio-read water meters and related hardware to monitor the USD’s 100,000+ commercial and residential customer’s water usage since 2004. This long-standing partnership has enabled USD to expand AMR capabilities and evaluate future Advanced Metering Infrastructure (AMI) options.
7. Cost to Port St. Lucie (Annual and Potential): The additional expenditure for FY25-26 is $375,000.00. Estimated annual expenditure for FY26-27 is $3,000,000.00. Future expenditures will be based on the customer growth, required maintenance, and approved budgets.
Presentation Information: N/A.
Staff Recommendation: Move that the Council ratify the additional expenditure forFY25-26 and approve the renewal of Contract #20230033 for another term with a price adjustment up to 3% and a manufacturer’s tariff fee of 5% with Ferguson Enterprises, LLC.
Alternate Recommendations:
1. Move that the Council amend the recommendation and ratify the additional expenditures for FY25-26 and approve the renewal of another term under Contract #20230033.
2. Move that the Council not ratify the additional expenditure nor approve the renewal for another term under Contract #20230033 and provide staff with direction.
Background: Ferguson Enterprises, LLC, is the sole authorized distributor in Florida for Neptune Technologies’ sales, parts, and warranty products associated with AMR and AMI water meter systems. USD relies on Ferguson Enterprises, LLC to provide Neptune water meters and related technology for measuring water consumption across the City’s customer base.
1. The USD respectfully requests authorization to increase the available contract expenditures for FY25-26 by an additional $375,000.00. The additional expenditures were due to a significantly higher-than-projected rate of residential water meter failures. These failures were due to the meters exceeding their life expectancy. A large number of meters were installed around the same time when the City experienced rapid growth when residential building permits exceeded 600-800 per month.
2. The City Council approved the original contract on March 27, 2023, for a one-year period with the option of four additional one-year terms. The USD is requesting approval to exercise the remaining portion* of the third of the four renewal options, and include additional products that enhance the water meter reading system. The renewal will support operational needs and sustain long-term reliability. *This is a remaining portion, because while the parties were negotiating for the full one-year renewal, Amendments #3 and #4 include short extensions while the parties negotiated.
Issues/Analysis: Staff has reviewed the new price list and find it to be acceptable. USD recommends the approval of the renewal with the price redetermination due to the single source nature of the vendor and the compatibility requirements of the system and to continue daily operations without interruption for commercial and residential customers.
Financial Information: Funds are appropriated in various Utility Funds.
Special Consideration: N/A.
Location of Project: N/A.
Attachments:
1. Amendment #5 - Signed Renewal.
2. Amendment #4.
3. Amendment #3.
4. Amendment #2.
5. Amendment #1.
6. Original Contract.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 26221-01.
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.