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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />FEBRUARY 6, 2012 <br />TITLE: <br />CONTRACT RENEWAL TO BADGER <br />METER, INC. FOR COLD WATER METERS <br />(SPEC. NOS. 09 -001 & 09 -035) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1st Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Renew the contract with Badger Meter, Inc. for the purchase of cold water meters and <br />miscellaneous supplies for a one -year period in an amount not to exceed $170,000. <br />DISCUSSION <br />The Public Works Agency Water Resources regularly performs installation, maintenance, and <br />replacement of residential and commercial water meters. The three types of meters used by the <br />City are positive displacement, multi -jet and turbine meters. Positive displacement meters are <br />used primarily for residential applications. Multi -jet meters are used for multi - family residents, <br />irrigation and commercial applications. Turbine meters are used for high volume water users, <br />including industrials, commercial, irrigation and large multi - family residential applications. <br />There are approximately 45,000 metered service locations in the City. The meters are purchased <br />through the Central Stores warehouse for distribution to the Public Works Agency as needed. <br />Typically, a water meter is replaced every 15 years which has the water crews working on 3,000 <br />meters annually. However, as a result of staffing constraints, only 1,617 meters were replaced <br />during the prior contract year. Consequently, Water Resource crews have been shifted to meet <br />the demands of the recommended annual replacement volume of water meters. <br />On March 2, 2009 the City awarded Badger Meter, Inc. a contract for positive displacement meters <br />and on August 3, 2009 additionally warded to Badger Meters, Inc. a contract for multi -jet and <br />turbine cold water meters for a one -year period with four one -year renewal options. The vendor <br />has performed satisfactorily during the past contract period and has agreed to renew the contract <br />with a three percent increase due to higher material cost. The requested increase is below the U.S. <br />Department of Labor announced 12 -month 5.7% increase in the Producer Price Index for Materials <br />for durable manufacturing. Staff recommends the second renewal of the contract. <br />22C -1 <br />