Item 4M-4O - MemoItem 4M – Item 4O
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M E M O R A N D U M
(April 5, 2022)
To: Shana Yelverton, City Manager
From: Rob Cohen, Director of Public Works
Subject: Item 4M: Authorize expenditures with Badger Meter, Inc. for the
purchase of cellular LTE endpoints for the City’s Water Smart
Initiative Program in an amount not to exceed $169,148.
Item 4N: Authorize expenditures with U.S. Bronco Services, Inc.
for the replacement of cellular LTE endpoints for the City’s
Water Smart Initiative Program in an amount not to exceed
$300,500.
Item 4O: Approve an annual renewal purchase agreement for
BEACON Cellular Service for the City’s Water Smart Initiative
Program with Badger Meter, Inc. in an amount not to exceed
$123,396.
Action
Requested: Item 4M: Authorize expenditures with Badger Meter, Inc. for the
purchase of cellular LTE endpoints for the City’s Water Smart
Initiative Program in an amount not to exceed $169,148.
Item 4N: Authorize expenditures with U.S. Bronco Services, Inc. for
the replacement of cellular LTE endpoints for the City’s Water Smart
Initiative Program in an amount not to exceed $300,500.
Item 4O: Approve an annual renewal purchase agreement for
BEACON Cellular Service for the City’s Water Smart Initiative
Program with Badger Meter, Inc. in an amount not to exceed
$123,396.
Background
Information: Beginning in FY 2016, the City of Southlake Public Works
Department has been upgrading all the water metering equipment
throughout the City. The Water Smart Initiative Program equips all
water meters with technology capable of automatically transmitting
daily readings back to a central database via cellular network. The
central database stores utility customer’s water consumption
readings, which are used to accurately bill customers every month.
Item 4M – Item 4O
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BEACON Eye on Water is a capability-based software that improves
the customer experience and provides Public Works with the ability
to monitor water operations. Eye on Water allows customers to set
up accounts to monitor their water usage and make necessary
adjustments to conserve water and save money. The hardware and
software (system) provide near real-time data of water consumption
broken down into monthly, daily, and hourly consumption. This type
of information will assist the customer in identifying potential leaks,
irregular water consumption, and offers historical water consumption
data. The system provides real time monitoring for leak investigation,
field performance and hardware issues, and to ensure cellular radio
communication is maintained. To date, 33% of utility accounts are
using the Eye on Water app. The City is responsible for paying the
monthly cellular service and hardware repairs and upgrades used to
transmit meter reading data from the field. If approved, item 4O
would continue the annual cost for the monthly cellular service.
The life expectancy of the current CDMA endpoints is ten years, but
due to changes in cellular technology, cellular providers will no longer
support 2G and 3G technology after December 30, 2022. This
decision adversely impacts the hardware already installed as part of
Southlake’s Eye on Water Program. Therefore, staff must prepare to
convert the soon to be obsolete technology with newer equipment
compatible with 4G and 5G cellular equipment. The City has
approximately 9,500 endpoints in service that will need to be
replaced this calendar year. In the FY 2022 adopted budget, City
Council allocated funds to complete the technology switchover to
preserve the City’s Water Smart Initiative Program. The hardware
changeout process is labor intensive, and will require the assistance
of a third-party contractor, U.S. Bronco Services, Inc. to help with the
replacement effort and meet the December 30, 2022 deadline.
U.S. Bronco Services, Inc. is experienced in the replacement of
water meter endpoints and is knowledgeable of the City’s financial
program, Tyler Technologies – Munis. Provided within their proposal
are mass meter files so all data is electronically transf erred into the
City’s financial system, Munis, once the endpoints have been
replaced. If approved, item 4M will authorize the purchase of the
remaining endpoints needed, and item 4N will authorize the third
party contractor.
Financial
Considerations: Public Works staff worked with Badger Meter to purchase the new
LTE endpoints at a prorated price of $49.00 for each endpoint, as
opposed to the current market price of $121.50. The reduced cost is
because the original CDMA endpoints did not make the full ten years
as expected. The Water Division will procure 3,452 LTE endpoints at
a price of $49.00 per endpoint. Staff had procured 6,048 endpoints
Item 4M – Item 4O
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in FY 2021 at the same prorated price of $49.00 per endpoint. U.S.
Bronco Services, Inc. will replace the endpoints in two phases at a
rate of $30 per endpoint, including a data transfer for each endpoint.
In addition, Badger Meter will continue to maintain a low service unit
rate for these cellular endpoints when they convert from CDMA to
LTE, as the annual fee will be paid as a lump sum payment. Under
the proposed renewal agreement, the monthly service rate per unit
is $0.81/unit/month or $123,395.40 per year to continue supporting
the BEACON Eye on Water app. Through discussions with Badger
Meter, staff negotiated credits of $936,867 towards the pro-rated
cost of the endpoints and in its cellular service to cover the cost of
this required replacement.
Below are the budgeted expenses for each FY 2022 project of the
City’s Water Smart Initiative Program:
Item Vendor Project Cost
4M Badger Meter, Inc. LTE endpoint purchase $ 169,148
4N U.S. Bronco
Services, Inc.
Labor to replace LTE
endpoints
$ 300,500
Total Replacement Cost $ 469,648
4O Badger Meter, Inc. Cellular service
agreement – annual
renewal
$ 123,396
FY 2022 Total $ 593,044
The City’s purchasing policy for the purchase of the LTE endpoints
and replacement services are exempt from bidding under the Texas
Local Government Code Chapter 252, Section 252.022, General
Exemptions (a)(7)(D): A procurement of items that are available from
only one source, including captive replacement parts or components
for equipment.
Funding for these items is budgeted in the FY 2022 Utility Fund
budget.
Strategic Link: This item links to the City’s Strategy Map strategic focus areas of
Infrastructure and Performance Management & Service Delivery. It
specifically relates to the City’s Corporate Objectives, B6: Optimize
Use Of Technology, and F2: Invest to Provide & Maintain High
Quality Public Assets.
Citizen Input/
Board Review: None.
Legal
Review: None.
Item 4M – Item 4O
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Alternatives: The City Council may approve or deny these requests.
Staff
Recommendation: Item 4M: Authorize expenditures with Badger Meter, Inc. for the
purchase of cellular LTE endpoints for the City’s Water Smart
Initiative Program in an amount not to exceed $169,148.
Item 4N: Authorize expenditures with U.S. Bronco Services, Inc. for
the replacement of cellular LTE endpoints for the City’s Water Smart
Initiative Program in an amount not to exceed $300,500.
Item 4O: Approve an annual renewal purchase agreement for
BEACON Cellular Service for the City’s Water Smart Initiative
Program with Badger Meter, Inc. in an amount not to exceed
$123,396.
Supporting
Documents: Attachment A: Attachment A: Local Government Code Chapter
252, Section 252.002
Attachment B: Badger Meter Letter
Attachment C: U.S. Bronco Services, Inc. Proposal
Attachment D: Badger Meter Quotation No. 3347306
Staff
Contact: Rob Cohen, Director of Public Works
?
LOCAL GOVERNMENT CODE
TITLE 8. ACQUISITION, SALE, OR LEASE OF PROPERTY
SUBTITLE A. MUNICIPAL ACQUISITION, SALE, OR LEASE OF PROPERTY
CHAPTER 252. PURCHASING AND CONTRACTING AUTHORITY OF MUNICIPALITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 252.001. DEFINITIONS. In this chapter:
(1) "Bond funds" includes money in the treasury received
from the sale of bonds and includes the proceeds of bonds that have
been voted but have not been issued and delivered.
(2) "Component purchases" means purchases of the component
parts of an item that in normal purchasing practices would be
purchased in one purchase.
(3) "Current funds" includes money in the treasury, taxes
in the process of being collected in the current tax year, and all
other revenue that may be anticipated with reasonable certainty in the
current tax year.
(4) "High technology procurement" means the procurement of
equipment, goods, or services of a highly technical nature, including:
(A)data processing equipment and software and
firmware used in conjunction with data processing equipment;
(B)telecommunications equipment and radio and
microwave systems;
(C) electronic distributed control systems, including
building energy management systems; and
(D) technical services related to those items.
(5) "Planning services" means services primarily intended
to guide governmental policy to ensure the orderly and coordinated
development of the state or of municipal, county, metropolitan, or
regional land areas.
(6) "Separate purchases" means purchases, made separately,
of items that in normal purchasing practices would be purchased in one
purchase.
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Attachment A
(7) "Sequential purchases" means purchases, made over a
period, of items that in normal purchasing practices would be
purchased in one purchase.
(8) "Time warrant" includes any warrant issued by a
municipality that is not payable from current funds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 1250, Sec. 2, eff. Sept. 1, 1989; Acts
1995, 74th Leg., ch. 207, Sec. 1, eff. May 23, 1995.
Sec. 252.002. MUNICIPAL CHARTER CONTROLS IN CASE OF CONFLICT.
Any provision in the charter of a home-rule municipality that relates
to the notice of contracts, advertisement of the notice, requirements
for the taking of sealed bids based on specifications for public
improvements or purchases, the manner of publicly opening bids or
reading them aloud, or the manner of letting contracts and that is in
conflict with this chapter controls over this chapter unless the
governing body of the municipality elects to have this chapter
supersede the charter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1993, 73rd Leg., ch. 749, Sec. 5, eff. Sept. 1, 1993; Acts 1993,
73rd Leg., ch. 757, Sec. 7, eff. Sept. 1, 1993.
Sec. 252.003. APPLICATION OF OTHER LAW. The purchasing
requirements of Section 361.426, Health and Safety Code, apply to
municipal purchases made under this chapter.
Added by Acts 1991, 72nd Leg., ch. 303, Sec. 17, eff. Sept. 1, 1991.
SUBCHAPTER B. COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED
Sec. 252.021. COMPETITIVE REQUIREMENTS FOR PURCHASES. (a)
Before a municipality may enter into a contract that requires an
expenditure of more than $50,000 from one or more municipal funds, the
municipality must:
(1) comply with the procedure prescribed by this
subchapter and Subchapter C for competitive sealed bidding or
competitive sealed proposals;
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(2) use the reverse auction procedure, as defined by
Section 2155.062(d), Government Code, for purchasing; or
(3) comply with a method described by Chapter ,
Government Code.
(b) A municipality may use the competitive sealed proposal
procedure for the purchase of goods or services, including high
technology items and insurance.
(c) The governing body of a municipality that is considering
using a method other than competitive sealed bidding must determine
before notice is given the method of purchase that provides the best
value for the municipality. The governing body may delegate, as
appropriate, its authority under this subsection to a designated
representative. If the competitive sealed proposals requirement
applies to the contract, the municipality shall consider the criteria
described by Section 252.043(b) and the discussions conducted under
Section 252.042 to determine the best value for the municipality.
(d) This chapter does not apply to the expenditure of municipal
funds that are derived from an appropriation, loan, or grant received
by a municipality from the federal or state government for conducting
a community development program established under Chapter 373 if under
the program items are purchased under the request-for-proposal process
described by Section 252.042. A municipality using a request-for-
proposal process under this subsection shall also comply with the
requirements of Section 252.0215.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 1, Sec. 56(b), eff. Aug. 28, 1989; Acts
1993, 73rd Leg., ch. 749, Sec. 1, eff. Sept. 1, 1993; Acts 1993, 73rd
Leg., ch. 757, Sec. 11, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch.
45, Sec. 1, eff. May 5, 1995; Acts 1997, 75th Leg., ch. 790, Sec. 1,
eff. June 17, 1997; Acts 1999, 76th Leg., ch. 571, Sec. 1, eff. June
18, 1999; Acts 2001, 77th Leg., ch. 115, Sec. 1, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 436, Sec. 2, eff. May 28, 2001; Acts 2001,
77th Leg., ch. 436, Sec. 3, eff. May 28, 2001; Acts 2001, 77th Leg.,
ch. 1409, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 217,
Sec. 1, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1276, Sec.
12.003, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 1, eff.
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September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1213 (H.B. 1886), Sec. 1, eff.
September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1272 (H.B. 3517), Sec. 1, eff.
September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 1272 (H.B. 3517), Sec. 2, eff.
September 1, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.01, eff.
September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002
(20), eff. September 1, 2013.
Sec. 252.0215. COMPETITIVE BIDDING IN RELATION TO HISTORICALLY
UNDERUTILIZED BUSINESS. A municipality, in making an expenditure of
more than $3,000 but less than $50,000, shall contact at least two
historically underutilized businesses on a rotating basis, based on
information provided by the comptroller pursuant to Chapter 2161,
Government Code. If the list fails to identify a historically
underutilized business in the county in which the municipality is
situated, the municipality is exempt from this section.
Added by Acts 1993, 73rd Leg., ch. 749, Sec. 3, eff. Sept. 1, 1993.
Amended by Acts 1997, 75th Leg., ch. 165, Sec. 17.18, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 115, Sec. 2, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 2, eff.
September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 937 (H.B. 3560), Sec. 1.100,
eff. September 1, 2007.
Sec. 252.022. GENERAL EXEMPTIONS. (a) This chapter does not
apply to an expenditure for:
(1) a procurement made because of a public calamity that
requires the immediate appropriation of money to relieve the necessity
of the municipality's residents or to preserve the property of the
municipality;
(2) a procurement necessary to preserve or protect the
public health or safety of the municipality's residents;
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(3) a procurement necessary because of unforeseen damage
to public machinery, equipment, or other property;
(4) a procurement for personal, professional, or planning
services;
(5) a procurement for work that is performed and paid for
by the day as the work progresses;
(6) a purchase of land or a right-of-way;
(7) a procurement of items that are available from only
one source, including:
(A) items that are available from only one source
because of patents, copyrights, secret processes, or natural
monopolies;
(B) films, manuscripts, or books;
(C) gas, water, and other utility services;
(D) captive replacement parts or components for
equipment;
(E) books, papers, and other library materials for a
public library that are available only from the persons holding
exclusive distribution rights to the materials; and
(F) management services provided by a nonprofit
organization to a municipal museum, park, zoo, or other facility to
which the organization has provided significant financial or other
benefits;
(8) a purchase of rare books, papers, and other library
materials for a public library;
(9) paving drainage, street widening, and other public
improvements, or related matters, if at least one-third of the cost is
to be paid by or through special assessments levied on property that
will benefit from the improvements;
(10) a public improvement project, already in progress,
authorized by the voters of the municipality, for which there is a
deficiency of funds for completing the project in accordance with the
plans and purposes authorized by the voters;
(11) a payment under a contract by which a developer
participates in the construction of a public improvement as provided
by Subchapter C, Chapter 212;
(12) personal property sold:
(A) at an auction by a state licensed auctioneer;
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(B) at a going out of business sale held in
compliance with Subchapter F, Chapter 17, Business & Commerce Code;
(C) by a political subdivision of this state, a state
agency of this state, or an entity of the federal government; or
(D) under an interlocal contract for cooperative
purchasing administered by a regional planning commission established
under Chapter 391;
(13) services performed by blind or severely disabled
persons;
(14) goods purchased by a municipality for subsequent
retail sale by the municipality;
(15) electricity; or
(16) advertising, other than legal notices.
(b) This chapter does not apply to bonds or warrants issued
under Subchapter A, Chapter 571.
(c) This chapter does not apply to expenditures by a
municipally owned electric or gas utility or unbundled divisions of a
municipally owned electric or gas utility in connection with any
purchases by the municipally owned utility or divisions of a
municipally owned utility made in accordance with procurement
procedures adopted by a resolution of the body vested with authority
for management and operation of the municipally owned utility or its
divisions that sets out the public purpose to be achieved by those
procedures. This subsection may not be deemed to exempt a municipally
owned utility from any other applicable statute, charter provision, or
ordinance.
(d) This chapter does not apply to an expenditure described by
Section 252.021(a) if the governing body of a municipality determines
that a method described by Chapter , Government Code, provides a
better value for the municipality with respect to that expenditure
than the procedures described in this chapter and the municipality
adopts and uses a method described in that chapter with respect to
that expenditure.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 1, Sec. 47(c), eff. Aug. 28, 1989; Acts
1989, 71st Leg., ch. 1001, Sec. 1, eff. Aug. 28, 1989; Acts 1991,
72nd Leg., ch. 42, Sec. 1, eff. April 25, 1991; Acts 1993, 73rd Leg.,
ch. 749, Sec. 7, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 757,
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Sec. 9, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 207, Sec. 2,
eff. May 23, 1995; Acts 1995, 74th Leg., ch. 746, Sec. 1, eff. Aug.
28, 1995; Acts 1997, 75th Leg., ch. 125, Sec. 1, eff. May 19, 1997;
Acts 1997, 75th Leg., ch. 1370, Sec. 3, eff. Sept. 1, 1997; Acts
1999, 76th Leg., ch. 405, Sec. 41, eff. Sept. 1, 1999; Acts 2001,
77th Leg., ch. 1409, Sec. 2, eff. Sept. 1, 2001; Acts 2001, 77th
Leg., ch. 1420, Sec. 8.290, eff. Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 434 (S.B. 1765), Sec. 3, eff.
September 1, 2007.
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.77(3),
eff. April 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.02, eff.
September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002
(21), eff. September 1, 2013.
Sec. 252.023. EXEMPTIONS FROM REFERENDUM PROVISIONS. The
referendum provisions prescribed by Section 252.045 do not apply to
expenditures that are payable:
(1) from current funds;
(2) from bond funds; or
(3) by time warrants unless the amount of the time
warrants issued by the municipality for all purposes during the
current calendar year exceeds:
(A) $7,500 if the municipality's population is 5,000
or less;
(B) $10,000 if the municipality's population is 5,001
to 24,999;
(C) $25,000 if the municipality's population is
25,001 to 49,999; or
(D) $100,000 if the municipality's population is more
than 50,000.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1991, 72nd Leg., ch. 109, Sec. 1, eff. Aug. 26, 1991.
Sec. 252.024. SELECTION OF INSURANCE BROKER. This chapter does
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not prevent a municipality from selecting a licensed insurance
broker as the sole broker of record to obtain proposals and coverages
for excess or surplus insurance that provides necessary coverage and
adequate limits of coverage in structuring layered excess coverages in
all areas of risk requiring special consideration, including public
official liability, police professional liability, and airport
liability. The broker may be retained only on a fee basis and may not
receive any other remuneration from any other source.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
SUBCHAPTER C. PROCEDURES
Sec. 252.041. NOTICE REQUIREMENT. (a) If the competitive
sealed bidding requirement applies to the contract, notice of the time
and place at which the bids will be publicly opened and read aloud
must be published at least once a week for two consecutive weeks in a
newspaper published in the municipality. The date of the first
publication must be before the 14th day before the date set to
publicly open the bids and read them aloud. If no newspaper is
published in the municipality, the notice must be posted at the city
hall for 14 days before the date set to publicly open the bids and
read them aloud.
(b) If the competitive sealed proposals requirement applies to
the contract, notice of the request for proposals must be given in the
same manner as that prescribed by Subsection (a) for the notice for
competitive sealed bids.
(c) If the contract is for the purchase of machinery for the
construction or maintenance of roads or streets, the notice for bids
and the order for purchase must include a general specification of the
machinery desired.
(d) If the governing body of the municipality intends to issue
time warrants for the payment of any part of the contract, the notice
must include a statement of:
(1) the governing body's intention;
(2) the maximum amount of the proposed time warrant
indebtedness;
(3) the rate of interest the time warrants will bear; and
(4) the maximum maturity date of the time warrants.
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Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1991, 72nd Leg., ch. 109, Sec. 2, eff. Aug. 26, 1991; Acts 1993,
73rd Leg., ch. 749, Sec. 4, eff. Sept. 1, 1993; Acts 1993, 73rd Leg.,
ch. 757, Sec. 6, eff. Sept. 1, 1993.
Sec. 252.0415. PROCEDURES FOR ELECTRONIC BIDS OR PROPOSALS.
(a) A municipality may receive bids or proposals under this chapter
through electronic transmission if the governing body of the
municipality adopts rules to ensure the identification, security, and
confidentiality of electronic bids or proposals and to ensure that the
electronic bids or proposals remain effectively unopened until the
proper time.
(b) Notwithstanding any other provision of this chapter, an
electronic bid or proposal is not required to be sealed. A provision
of this chapter that applies to a sealed bid or proposal applies to a
bid or proposal received through electronic transmission in accordance
with the rules adopted under Subsection (a).
Added by Acts 2001, 77th Leg., ch. 1063, Sec. 6, eff. Sept. 1, 2001.
Sec. 252.042. REQUESTS FOR PROPOSALS FOR CERTAIN PROCUREMENTS.
(a) Requests for proposals made under Section 252.021 must solicit
quotations and must specify the relative importance of price and other
evaluation factors.
(b) Discussions in accordance with the terms of a request for
proposals and with regulations adopted by the governing body of the
municipality may be conducted with offerors who submit proposals and
who are determined to be reasonably qualified for the award of the
contract. Offerors shall be treated fairly and equally with respect
to any opportunity for discussion and revision of proposals. To
obtain the best final offers, revisions may be permitted after
submissions and before the award of the contract.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 1, Sec. 56(c), eff. Aug. 28, 1989; Acts
1995, 74th Leg., ch. 45, Sec. 2, eff. May 5, 1995.
Sec. 252.043. AWARD OF CONTRACT. (a) If the competitive
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sealed bidding requirement applies to the contract for goods or
services, the contract must be awarded to the lowest responsible
bidder or to the bidder who provides goods or services at the best
value for the municipality.
(b) In determining the best value for the municipality, the
municipality may consider:
(1) the purchase price;
(2) the reputation of the bidder and of the bidder's goods
or services;
(3) the quality of the bidder's goods or services;
(4) the extent to which the goods or services meet the
municipality's needs;
(5) the bidder's past relationship with the municipality;
(6) the impact on the ability of the municipality to
comply with laws and rules relating to contracting with historically
underutilized businesses and nonprofit organizations employing persons
with disabilities;
(7) the total long-term cost to the municipality to
acquire the bidder's goods or services; and
(8) any relevant criteria specifically listed in the
request for bids or proposals.
(b-1) In addition to the considerations provided by Subsection
(b), a joint board described by Section 22.074(d), Transportation
Code, that awards contracts in the manner provided by this chapter may
consider, in determining the best value for the board, the impact on
the ability of the board to comply with laws, rules, and programs
relating to contracting with small businesses, as defined by 13 C.F.R.
Section 121.201.
(c) Before awarding a contract under this section, a
municipality must indicate in the bid specifications and requirements
that the contract may be awarded either to the lowest responsible
bidder or to the bidder who provides goods or services at the best
value for the municipality.
(d) Except as provided by Subsection (d-1), the contract must
be awarded to the lowest responsible bidder if the competitive sealed
bidding requirement applies to the contract for construction of:
(1) highways, roads, streets, bridges, utilities, water
supply projects, water plants, wastewater plants, water and wastewater
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distribution or conveyance facilities, wharves, docks,
airport runways and taxiways, drainage projects, or related types of
projects associated with civil engineering construction; or
(2) buildings or structures that are incidental to
projects that are primarily civil engineering construction projects.
(d-1) A contract for construction of a project described by
Subsection (d) that requires an expenditure of $1.5 million or less
may be awarded using the competitive sealed proposal procedure
prescribed by Subchapter D, Chapter , Government Code.
(e) If the competitive sealed bidding requirement applies to
the contract for construction of a facility, as that term is defined
by Section 2269.001, Government Code, the contract must be awarded to
the lowest responsible bidder or awarded under the method described by
Chapter , Government Code.
(f) The governing body may reject any and all bids.
(g) A bid that has been opened may not be changed for the
purpose of correcting an error in the bid price. This chapter does
not change the common law right of a bidder to withdraw a bid due to a
material mistake in the bid.
(h) If the competitive sealed proposals requirement applies to
the contract, the contract must be awarded to the responsible offeror
whose proposal is determined to be the most advantageous to the
municipality considering the relative importance of price and the
other evaluation factors included in the request for proposals.
(i) This section does not apply to a contract for professional
services, as that term is defined by Section 2254.002, Government Code.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1997, 75th Leg., ch. 1370, Sec. 4, eff. Sept. 1, 1997; Acts
2001, 77th Leg., ch. 1409, Sec. 3, eff. Sept. 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 739 (H.B. 2661), Sec. 1, eff.
September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch. 428 (S.B. 1618), Sec. 1, eff.
June 15, 2007.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 4.03, eff.
September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 161 (S.B. 1093), Sec. 22.002
(22), eff. September 1, 2013.
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Sec. 252.0435. SAFETY RECORD OF BIDDER CONSIDERED. In
determining who is a responsible bidder, the governing body may take
into account the safety record of the bidder, of the firm,
corporation, partnership, or institution represented by the bidder, or
of anyone acting for such a firm, corporation, partnership, or
institution if:
(1) the governing body has adopted a written definition
and criteria for accurately determining the safety record of a bidder;
(2) the governing body has given notice to prospective
bidders in the bid specifications that the safety record of a bidder
may be considered in determining the responsibility of the bidder; and
(3) the determinations are not arbitrary and capricious.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 58(b), eff. Aug. 28, 1989.
Sec. 252.0436. CONTRACT WITH PERSON INDEBTED TO MUNICIPALITY.
(a) A municipality by ordinance may establish regulations permitting
the municipality to refuse to enter into a contract or other
transaction with a person indebted to the municipality.
(b) It is not a violation of this chapter for a municipality,
under regulations adopted under Subsection (a), to refuse to award a
contract to or enter into a transaction with an apparent low bidder or
successful proposer that is indebted to the municipality.
(c) In this section, "person" includes an individual, sole
proprietorship, corporation, nonprofit corporation, partnership, joint
venture, limited liability company, and any other entity that proposes
or otherwise seeks to enter into a contract or other transaction with
the municipality requiring approval by the governing body of the
municipality.
Added by Acts 2003, 78th Leg., ch. 156, Sec. 1, eff. Sept. 1, 2003.
Sec. 252.044. CONTRACTOR'S BOND. (a) If the contract is for
the construction of public works, the bidder to whom the contract is
awarded must execute a good and sufficient bond. The bond must be:
(1) in the full amount of the contract price;
(2) conditioned that the contractor will faithfully
perform the contract; and
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(3) executed, in accordance with Chapter 2253, Government
Code, by a surety company authorized to do business in the state.
(b) Repealed by Acts 1993, 73rd Leg., ch. 865, Sec. 2, eff.
Sept. 1, 1993.
(c) The governing body of a home-rule municipality by ordinance
may adopt the provisions of this section and Chapter 2253, Government
Code, relating to contractors' surety bonds, regardless of a
conflicting provision in the municipality's charter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1993, 73rd Leg., ch. 865, Sec. 2, eff. Sept. 1, 1993; Acts 1995,
74th Leg., ch. 76, Sec. 5.95(17), eff. Sept. 1, 1995.
Sec. 252.045. REFERENDUM ON ISSUANCE OF TIME WARRANTS. (a)
If, by the time set for letting a contract under this chapter, a
written petition with the required signatures is filed with the
municipal secretary or clerk requesting the governing body of the
municipality to order a referendum on the question of whether time
warrants should be issued for an expenditure under the contract, the
governing body may not authorize the expenditure or finally award the
contract unless the question is approved by a majority of the votes
received in the referendum. The petition must be signed by at least
10 percent of the qualified voters of the municipality whose names
appear as property taxpayers on the municipality's most recently
approved tax rolls.
(b) If a petition is not filed, the governing body may finally
award the contract and issue the time warrants. In the absence of a
petition, the governing body may, at its discretion, order the
referendum.
(c) The provisions of Subtitles A and C, Title 9, Government
Code, relating to elections for the issuance of municipal bonds and to
the issuance, approval, registration, and sale of bonds govern the
referendum and the time warrants to the extent those provisions are
consistent with this chapter. However, the time warrants may mature
over a term exceeding 40 years only if the governing body finds that
the financial condition of the municipality will not permit payment of
warrants issued for a term of 40 years or less from taxes that are
imposed substantially uniformly during the term of the warrants.
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(d) This section does not supersede any additional rights
provided by the charter of a special-law municipality and relating to
a referendum.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1999, 76th Leg., ch. 1064, Sec. 38, eff. Sept. 1, 1999.
Sec. 252.046. CIRCUMSTANCES IN WHICH CURRENT FUNDS TO BE SET
ASIDE. If an expenditure under the contract is payable by warrants on
current funds, the governing body of the municipality by order shall
set aside an amount of current funds that will discharge the principal
and interest of the warrants. Those funds may not be used for any
other purpose, and the warrants must be discharged from those funds
and may not be refunded.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 252.047. PAYMENT METHOD FOR CERTAIN CONTRACTS. If the
contract is for the construction of public works or for the purchase
of materials, equipment, and supplies, the municipality may let the
contract on a lump-sum basis or unit price basis as the governing body
of the municipality determines. If the contract is let on a unit
price basis, the information furnished to bidders must specify the
approximate quantity needed, based on the best available information,
but payment to the contractor must be based on the actual quantity
constructed or supplied.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 252.048. CHANGE ORDERS. (a) If changes in plans or
specifications are necessary after the performance of the contract is
begun or if it is necessary to decrease or increase the quantity of
work to be performed or of materials, equipment, or supplies to be
furnished, the governing body of the municipality may approve change
orders making the changes.
(b) The total contract price may not be increased because of
the changes unless additional money for increased costs is
appropriated for that purpose from available funds or is provided for
by the authorization of the issuance of time warrants.
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(c) If a change order involves a decrease or an increase of
$50,000 or less, the governing body may grant general authority to an
administrative official of the municipality to approve the change
orders.
(c-1) If a change order for a public works contract in a
municipality with a population of 300,000 or more involves a decrease
or an increase of $100,000 or less, or a lesser amount as provided by
ordinance, the governing body of the municipality may grant general
authority to an administrative official of the municipality to approve
the change order.
(d) The original contract price may not be increased under this
section by more than 25 percent. The original contract price may not
be decreased under this section by more than 25 percent without the
consent of the contractor.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1995, 74th Leg., ch. 706, Sec. 1, eff. Sept. 1, 1995; Acts 1995,
74th Leg., ch. 746, Sec. 2, eff. Aug. 28, 1995.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 479 (H.B. 679), Sec. 1, eff.
June 17, 2011.
Acts 2011, 82nd Leg., R.S., Ch. 1129 (H.B. 628), Sec. 2.09, eff.
September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 1127 (H.B. 1050), Sec. 7, eff.
September 1, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1356 (S.B. 1430), Sec. 2, eff.
June 14, 2013.
Sec. 252.049. CONFIDENTIALITY OF INFORMATION IN BIDS OR
PROPOSALS. (a) Trade secrets and confidential information in
competitive sealed bids are not open for public inspection.
(b) If provided in a request for proposals, proposals shall be
opened in a manner that avoids disclosure of the contents to competing
offerors and keeps the proposals secret during negotiations. All
proposals are open for public inspection after the contract is
awarded, but trade secrets and confidential information in the
proposals are not open for public inspection.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
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Sec. 252.050. LEASE-PURCHASE OR INSTALLMENT PURCHASE OF REAL
PROPERTY. (a) This section applies only to a lease-purchase or
installment purchase of real property financed by the issuance of
certificates of participation.
(b) The governing body of a municipality may not make an
agreement under which the municipality is a lessee in a lease-purchase
of real property or is a purchaser in an installment purchase of real
property unless the governing body first obtains an appraisal by a
qualified appraiser who is not an employee of the municipality. The
purchase price may not exceed the fair market value of the real
property, as shown by the appraisal.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 10, Sec. 2, eff. Oct. 18,
1989.
Sec. 252.051. APPRAISAL REQUIRED BEFORE PURCHASE OF PROPERTY
WITH BOND PROCEEDS. A municipality may not purchase property wholly
or partly with bond proceeds until the municipality obtains an
independent appraisal of the property's market value.
Added by Acts 2011, 82nd Leg., R.S., Ch. 719 (H.B. 782), Sec. 1, eff.
September 1, 2011.
SUBCHAPTER D. ENFORCEMENT
Sec. 252.061. INJUNCTION. If the contract is made without
compliance with this chapter, it is void and the performance of the
contract, including the payment of any money under the contract, may
be enjoined by:
(1) any property tax paying resident of the municipality;
or
(2) a person who submitted a bid for a contract for which
the competitive sealed bidding requirement applies, regardless of
residency, if the contract is for the construction of public works.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 979 (H.B. 3668), Sec. 1, eff.
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September 1, 2009.
Sec. 252.062. CRIMINAL PENALTIES. (a) A municipal officer or
employee commits an offense if the officer or employee intentionally
or knowingly makes or authorizes separate, sequential, or component
purchases to avoid the competitive bidding requirements of Section
252.021. An offense under this subsection is a Class B misdemeanor.
(b) A municipal officer or employee commits an offense if the
officer or employee intentionally or knowingly violates Section
252.021, other than by conduct described by Subsection (a). An
offense under this subsection is a Class B misdemeanor.
(c) A municipal officer or employee commits an offense if the
officer or employee intentionally or knowingly violates this chapter,
other than by conduct described by Subsection (a) or (b). An offense
under this subsection is a Class C misdemeanor.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by
Acts 1989, 71st Leg., ch. 1250, Sec. 3, eff. Sept. 1, 1989.
Sec. 252.063. REMOVAL; INELIGIBILITY. (a) The final
conviction of a municipal officer or employee for an offense under
Section 252.062(a) or (b) results in the immediate removal from office
or employment of that person.
(b) For four years after the date of the final conviction, the
removed officer or employee is ineligible:
(1) to be a candidate for or to be appointed or elected to
a public office in this state;
(2) to be employed by the municipality with which the
person served when the offense occurred; and
(3) to receive any compensation through a contract with
that municipality.
(c) This section does not prohibit the payment of retirement or
workers' compensation benefits to the removed officer or employee.
Added by Acts 1989, 71st Leg., ch. 1250, Sec. 4, eff. Sept. 1, 1989.
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November 19, 2021
Mr. Robert Cohen, P.E.
Director of Public Works
City of Southlake
1400 Main Street, Suite 320
Southlake, TX 76092
Re: Offer Letter
Dear Mr. Cohen:
The following is a summary of your discussion following your meeting with Kevin Davis and Jimmy Terry
on June 15, 2021, regarding the announced CDMA (1XRTT) network sunset:
•The City of Southlake will keep and use the 1,500 ORION LTE-M Cellular endpoints provided at
no charge. Reference Badger Meter order no. 631557 to replace existing CDMA endpoints.
•The remaining 8273 CDMA endpoints will be replaced with ORION Cellular endpoints at the price
of $49.00 each
•Service Units will remain at $0.81/month
In lieu of providing personnel, labor, required equipment, and accessories to perform installation
of the replacement endpoints and project oversight and management by a Badger Meter PMP
certified Project Manager, and in addition to the credit the City of Southlake has received to date
for 63,185 ORION Cellular Service Units (accumulated over the last year for the 1,500 endpoints)
valued at $51,179, Badger Meter will provide an additional 127,956 service units at no charge
valued at $103,664, effective immediately upon receipt of purchase order. Please reference Badger
Meter proposal# 3229522, attached for your convenience.
•Badger Meter will provide labor and integration services to create a new inventory file to import
the new endpoint information into Southlake’s MUNIS inventory control system with minimal
effort.
•Badger Meter will provide labor and integration services to create an electronic meter change out
file by which Southlake can import the new metering and endpoint data into MUNIS with minimal
effort.
Attachment B
Mr. Robert Cohen
Page 2
November 19, 2021
• Badger Meter will monitor, analyze and provide reports on your BEACON AMA system
performance over time, including both monitoring during the project as well as continued
monitoring and monthly reporting for a period of six months following project completion.
• Badger Meter will use reasonable effort and caution to ensure affected consumers retain their
historical data.
As part of this offer, Badger Meter requires Southlake to agree to release any current or future legal claims
(warranty, product liability or otherwise), that are based on or relate to the ORION CDMA Cellular
endpoints replaced under this agreement. The replacement ORION Cellular endpoints will be covered by
the ORION Cellular Water Endpoints, Network as a Service (NaaS) Warranty, ORI-WR-03510-EN-
01_Domestic (August 2021) attached for your convenience.
We hope you find this revised proposal acceptable, and we look forward to working with you on this project.
If the above is acceptable, please have an authorized officer of Southlake accept this offer by signing below.
Sincerely,
BADGER METER, INC.
Kim Stoll
Vice President - Sales & Marketing
The above-mentioned offer and terms and conditions are hereby accepted by the City of Southlake.
BY: ______________________________________________
(Authorized Signature)
_________________________________________________
(Print Name and Title)
_________________________________________________
(Date)
Robert Cohen
2/18/22
Attachment C
4545 W Brown Deer Road Milwaukee WI 53223
PO Box 245036 Milwaukee WI 53224-9536
Phone: 800-876-3837 Fax: 888-371-5982
Created Date 03-03-2022
To
CITY OF SOUTHLAKE
ACCOUNTS PAYABLE1400 MAIN ST STE 440
SOUTHLAKE
Texas 76092
Customer ID 00002499
Effective Dates 03-03-2022 - 04-03-2023
Salesperson Proposal Subject Shipping Terms / INCO Terms Payment Terms
007723 CITY OF SOUTHLAKE
ANNUAL SERVICE UNIT
QUOTE
PREPAY/NO CHARGE
FCA FACTORY
NET 30 DAYS
Line #Description Qty Unit Net Price
USD
Line Totals
USD
1
BMI Part No.: 68886-101
Description:
ORION CELLULAR 1XRTT SERV UNIT
76170 0.810 61,697.70
2
BMI Part No.: 68886-104
Description:
ORION CELLULAR LTE SERV UNIT
76170 0.810 61,697.70
Subtotal - USD 123,395.40
Estimated Freight Charges 0.00
Tax 0.00
Total Price - USD 123,395.40
Notes and Assumptions
Subject to application review of data sheet.
Actual lead time to be provided at time of order.
If you would like to place an order, please contact us at Utilityorders2@badgermeter.com or by calling 1-800-876-3837.
Domestic Quotation
Quotation No. 3347306
Thank you for your business!
Estimated ship dates subject to change based upon component availability, as a result of global supply chain constraints, or credit review.
This acknowledgment is made subject to the terms & conditions found on our web-site: https://www.badgermeter.com/terms-and-conditions.
Terms and conditions related to service units, training, and professional services can be found here: https://badgermeter.com/service-units-terms-and-conditions
Page 1 of 1
Attachment D