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a <br /> VogPrer 430,0: <br /> q PURCHASING <br /> MEMORANDUM <br /> TO: Ned Johnston, City Attorney <br /> FROM: Clark Langstraat <br /> DATE: April 3, 2007 <br /> SUBJECT: Sole Source for Neptune Water Meters <br /> ATTACHMENT: Ferguson Quote <br /> The City has been buying Neptune water meters for many years and has effectively established a <br /> standard based on extensive installation of this proprietary equipment.These items were last bid in <br /> 1997 and the resulting supply contract has been renewed without price adjustment since then. <br /> Understandably,the current Neptune distributor is unwilling to continue providing these items at the <br /> 10-year old pricing. In researching various procurement options Purchasing and Public Works have <br /> determined that it would be not be practical for the City to competitively procure these items for the <br /> following reasons: <br /> 1. Purchasing meters other than Neptune is impractical because of the extensive installation of <br /> this proprietary technology. <br /> 2. Ferguson Waterworks is the sole distributor for Neptune in Washington State. <br /> 3. While purchasing the meters directly from the factory is possible,it is not desirable to lose <br /> the support of a local distributor for local stocking,repair and warranty issues. <br /> Purchasing and Public Works have negotiated pricing and terms with Ferguson and Neptune that they <br /> believe are the most favorable the City can obtain. The City's annual requirements are estimated at <br /> $124,000. We are requesting your approval of this Sole Source purchase. <br /> � 9 <br />