CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Option Year #1 to Contract 22-027, Large Diameter Water Meter Testing and Repair/Replacement Services to, HBK Water Meter Service, Inc. for an amount not to exceed $238,227.50
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DEPARTMENT: Water Utilities
SUBMITTED BY: Darrell Blenniss, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 22-027, Large Diameter Water Meter Testing and Repair/Replacement Services, to HBK Water Meter Services, Inc. on January 18, 2022, for a three-year term from January 1, 2022, to December 31, 2024, with two two-year options to extend.
This contract provides the testing and repair or replacement services for large-diameter (1.5-inch and larger) water meters located on the premises of commercial and residential utility customers, including the testing and repair of three-inch rental hydrant meters.
Testing and replacement of large-diameter water meters are on a routine schedule in compliance with the American Water Works Association (AWWA) standards for meter testing frequency and to ensure accurate measurement of the water used by our largest customers. Fair and accurate billing of large accounts helps ensure fair and accurate rates for all our customers. There are approximately 3,000 testable water meters at various locations throughout Naperville. Most are in commercial or multi-family residential buildings. Staff anticipates performing approximately 2,248 large-diameter water meter tests and 128 meter replacements over the three-year life of this contract.
Prior City Council Action
This award first appeared on the Consent Agenda at the February 4, 2025 City Council meeting. At that meeting, the City Council voted 8-1 in favor of tabling the agenda item to further evaluate the applicability of the City’s responsible bidder ordinance (RBO), specifically Section 1-9B-7.5 Apprentice and Training Program.
An RBO is a local policy that establishes objective criteria and verifiable standards for contractors bidding on public construction projects. In March 2023, the City’s Procurement Code was amended to add language commonly associated with an RBO. The primary modification was to add Section 1-9B-7.5 to require evidence of participation in U.S. Department of Labor-approved apprenticeship and training programs.
The City’s Procurement Code defines construction as “the process of building, altering, repairing, improving or demolishing any public infrastructure facility, including any public improvements of any kind to real property.” Additionally, the Code goes on to exclude “the routine operation, routine repair, or routine maintenance of any existing public infrastructure facility, including structures, buildings or real property.”
To evaluate the applicability of the RBO requirements, the Procurement Team developed four categories to evaluate construction and maintenance projects:
• New construction (RBO Required): This category represents the construction of a new asset or an addition to an existing asset the City must maintain.
• Preventative maintenance (RBO Not Required): This category represents routine maintenance and repairs to an asset that do not significantly extend the life of the asset.
• Corrective maintenance (RBO Required): This category represents the process of repairing or improving an asset that significantly extends the life of the asset.
• Demolition/reconstruction (RBO Required): This category represents the removal of an asset or reconstruction of an existing asset.
DISCUSSION:
Applicability of RBO to Contract 22-027
Staff reevaluated Contract 22-027 using the criteria described above. As part of that evaluation, staff analyzed the three components of the contract, which include large-diameter meter testing, repair and replacement.
Meter testing accounts for 97% of the work performed under this contract, while repairs account for 2%. Meter replacement occurs only when a meter fails and cannot be repaired, and that accounts for the remaining 1% of the work done. Based on that, staff maintains that this is a preventive maintenance contract and not a construction contract under the provisions of the RBO.
Aside from the requirements of Section 1-9B-7.5, staff finds HBK Water Meter Service, Inc. to be a qualified contractor who meets the qualifications required by the original bid specification, including:
1. The Contractor shall have at least 10 years of experience in testing and repairing water meters of the types and sizes listed in these specifications.
2. The Contractor shall have successfully provided services of a type and scope similar to this bid for at least three municipal water utilities in the past three years.
3. Contractor employees assigned to City of Naperville work shall have at least three years of experience in testing and repairing water meters of the types and sizes listed in these specifications.
4. The Contractor must have an Illinois-licensed plumber on staff.
It is worth noting that to be an Illinois-licensed plumber requires passing an examination, which requires that applicants must have been employed as a licensed apprentice plumber for a minimum of four years and have successfully completed at least two years of high school or equivalent in addition to completing an approved course of instruction through a college, university or trade school.
HBK Water Meter Service, Inc. performed well during the original contract term. The contractor tested 2,011 large water meters and replaced 73 large water meters during that time.
HBK Water Meter Service, Inc. has not requested a price increase for the first optional extension to the contract. Based on the vendor’s performance, Water Utility would like to extend the contract for the first option year.
The term of the first option year is from January 1, 2025, to December 31, 2026, with one two-year option remaining.
FISCAL IMPACT:
CIP #: WU020 - Water Meter Replacement
Water meter testing and repair services are expensed to the account numbers listed below. The Water Utilities’ operating budget includes $77,250 for these services. Replacements completed as part of the capital improvement program will be expensed to the Infrastructure account below, for which a total of $850,000 is budgeted for all meter types in 2025.
|
Account Number |
Fund Description |
Total Budget |
|
41251510-531308 |
Water Utilities Fund |
$469,750 |
|
41251500-551502 |
Water Utilities Fund |
$68,654,488 |