DATE: August 31, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russell Truell, Assistant City Administrator / CFO
Mark Hilty, Water Management Director
Brian Wilcox, Purchasing Manager
SUBJECT:
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Acknowledge Report Of Sole-Source Purchase From The C.I. Thornburg Co., Inc. Of Nashville, TN Of 1,000 Sensus Model 520M Water Meter Transceiver Units In The Total Amount Of $125,000 For The Water Distribution Division Of The Water Management Department ($132,000 Budgeted In The Water Fund For This Purchase)
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Purpose
The purpose of this procurement is to purchase 1,000 Sensus model 520M water meter transceiver units (MXUs) as inventory for installation over time by City crews. MXUs communicate meter readings from the water meter to the vehicle transceiver unit (VXU).
Background
An August 22, 2013 memo to the Budget & Finance Committee, and included in the September 10, 2013 Board agenda packet, provides background information about the meter reading equipment now being utilized by the City.
Staff is of the opinion that the purchase of Sensus model 520M MXUs is a sole-source purchase. Evidence to support this opinion includes:
• Water meter transceiver units are an integral component of the City’s water meter network.
• The City’s water meter network is manufacturer-specific.
• The manufacturer, Sensus, has stated in writing that The C.I. Thornburg Co., Inc. of Nashville is the sole source available to the City of Franklin for this purchase.
MXU orders will be placed on a recurring basis as inventory is depleted.
Financial Impact
The value of this order, $125,000, is based on the unit pricing of $125 each. The C.I. Thornburg Co. has stated in writing that the quoted pricing is the lowest municipal unit pricing available at that time and in the foreseeable future for the quantity indicated. City Water Management Department staff is of the opinion that this unit pricing is within what would be expected in the market place for this industry at this time.
The Water Management Department Water Distribution Division budget for fiscal year 2017 allocates $132,000 out of the Water Fund for this purchase.
Options
Previously, staff has explored and considered options to purchase of the “M” model MXU, including continuing replacement of aging MXUs with the “R” model.
Recommendation
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Staff recommends the Board of Mayor and Aldermen acknowledge receipt of this report of the sole-source purchase from The C.I. Thornburg Co., Inc. of Nashville, TN of 1,000 Sensus model 520M water meter transceiver units in the total amount of $125,000 for the Water Distribution Division of the Water Management Department. Purchasing Manager Brian Wilcox is of the opinion that the sole-source nature of the purchase appears to be justified.