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Agenda 12/11/2018 Item #16C 312/11/2018 EXECUTIVE SUMMARY Recommendation to accept an offer from Ferguson Enterprises, Inc. d/b/a Ferguson Waterworks for replacement of a potential failing component in 15,000 water meters purchased and installed in the County’s water distribution system and authorize the Chairman to accept and sign the offer letter. OBJECTIVE: To replace Hot Rod radio endpoints (Radio Modules) contained in 15,000 Mueller meters installed in our water distribution system prior to failure to ensure accuracy and reliability in o ur meter reading and billing system. CONSIDERATION: On September 10, 2013 (Agenda Item 11E), the Collier County Board of County Commissioners (Board) approved Agreement Bid #12-5968 between Ferguson Enterprises, Inc. (Ferguson) and Collier County (the “Agreement”). Over the last five years, in accordance with the Agreement, approximately 59,353 Mueller meters with the Radio Modules have been installed in the County’s water distribution system. Through July 2018, there have been approximately 2,000 Radio Modules replaced by Ferguson under the warranty provision of the Agreement. Staff received a letter from Ferguson advising the County that the manufacturer of the meters and the Radio Modules discovered that there have been abnormal failures of the Radio Modules manufactured during the period between January and July 2015. Approximately 15,000 of the Mueller meters in the County’s system were manufactured during that time and Mueller and Ferguson have offered to change out all the potentially affected units before a failure occurs. Ferguson has further offered to hire a local contractor experienced in this work to perform the exchange of the Radio Modules at its expense and is seeking the County’s acceptance of its offer by signing the attached offer letter. Under Ferguson’s offer letter agreement, Ferguson confirms that it and Mueller Systems, LLC, will manage the removal and replacement of the affected units at no cost to the County. Staff will work with Ferguson’s partner to ensure that it has the appropriate level of insurance required by Collier County’s Risk Management Division (including adding the County as an additional insured on the Certificate of Insurance), as well as complying with any County security clearance requirements; both of which are conditions set forth in the offer letter. County Staff recommends that the Board approve Ferguson’s proposal and authorize the Chairman to sign Ferguson’s offer letter to change out the affected units. This proactive action has the potential of avoiding equipment failure. FISCAL IMPACT: There is no fiscal impact to the County for meter replacement in the field by accepting this offer. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. RECOMMENDATION: That the Board accepts Ferguson’s offer and authorizes the Chairman to sign Ferguson’s offer letter. Prepared By: Sue Zimmerman, Contract Administration Specialist, Public Utilities Department 16.C.3 Packet Pg. 1672 12/11/2018 ATTACHMENT(S) 1. Attachment 1 - Ferguson Letter Stamped(PDF) 16.C.3 Packet Pg. 1673 12/11/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.3 Doc ID: 7310 Item Summary: Recommendation to accept an offer from Ferguson Enterprises, Inc. d/b/a Ferguson Waterworks for replacement of a potential failing component in 15,000 water meters purchased and installed in the County's water distribution system and authorize the Chairman to accept and sign the offer letter. Meeting Date: 12/11/2018 Prepared by: Title: Planner – Public Utilities Operations Support Name: Sue Zimmerman 11/09/2018 5:57 PM Submitted by: Title: Division Director - Operations Support – Public Utilities Operations Support Name: Joseph Bellone 11/09/2018 5:57 PM Approved By: Review: Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 11/13/2018 12:44 PM Public Utilities Department Sarah Hamilton Level 1 Division Reviewer Completed 11/14/2018 5:54 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 11/15/2018 7:24 AM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 11/15/2018 4:59 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/16/2018 8:16 AM Budget and Management Office Ed Finn Additional Reviewer Completed 11/16/2018 8:42 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/16/2018 10:48 AM County Attorney's Office Emily Pepin CAO Preview Completed 11/19/2018 2:04 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 11/27/2018 10:01 AM Board of County Commissioners MaryJo Brock Meeting Pending 12/11/2018 9:00 AM 16.C.3 Packet Pg. 1674 16.C.3.a Packet Pg. 1675 Attachment: Attachment 1 - Ferguson Letter Stamped (7310 : Recommendation to accept an offer from Ferguson Enterprises, Inc. d/b/a 16.C.3.a Packet Pg. 1676 Attachment: Attachment 1 - Ferguson Letter Stamped (7310 : Recommendation to accept an offer from Ferguson Enterprises, Inc. d/b/a 16.C.3.a Packet Pg. 1677 Attachment: Attachment 1 - Ferguson Letter Stamped (7310 : Recommendation to accept an offer from Ferguson Enterprises, Inc. d/b/a