Submitted By: Public Works
Prepared By: Julie Schmidt, Sr. Management Analyst
Subject:
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CONSIDERATION OF A RESOLUTION APPROVING THE PURCHASE OF WATER METERS FOR FISCAL YEAR 2027 FROM FERGUSON WATERWORKS AND METRON-FARNIER AS SOLE-SOURCE VENDORS IN A CUMULATIVE AMOUNT NOT TO EXCEED $152,140, AND FINDING THE PROJECT CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
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Summary:
The City Council is being asked to consider the adoption of a resolution (Attachment 1) authorizing Fiscal Year 2027 expenditures for water meter purchases and replacements from Ferguson Waterworks and Metron-Farnier as sole-source vendors based on fixed-price quotes (Attachments 2 and 3).
Background:
The City of San Clemente's water service area includes approximately 17,600 water meters, primarily ranging from one to 12 inches in size. To maintain system reliability, Utilities staff must routinely replace aged or damaged meters, and also install meters for new development. Staff recommends continuing the standardized use of Neptune meters for small services (1 to 2 inches) and Metron-Farnier meters for large services (3 to 12 inches). Both brands are available exclusively through single proprietary distributors in Southern California.
Discussion:
Small Water Meters (1" to 2")
Small meters represent the City's most frequently purchased meter sizes.
• Background: The City previously relied on highly reliable Actaris meters until they were discontinued. Following extensive testing of alternative brands available in Southern California, Utilities staff selected Neptune meters as the optimal choice for quality, reliability, and compatibility.
• Justification for Standardization: Continuing to use Neptune meters ensures a consistent infrastructure throughout the distribution system. This consistency streamlines maintenance and reduces operational costs by allowing the City to stock replacement parts for only one brand. Furthermore, neighboring agencies, including the Irvine Ranch Water District, widely trust and use Neptune meters.
• Vendor Availability: Ferguson Waterworks is the sole authorized distributor for Neptune water meters in Southern California.
Large Water Meters (3" to 12")
Large water meters require specialized capabilities to capture highly variable water usage.
• Background & Selection: Following a comprehensive evaluation of multiple vendors and consultations with local water agencies, staff selected Metron-Farnier meters for all large-scale applications.
• Justification: Metron-Farnier meters were chosen for their exceptional accuracy and superior performance in reading a wide range of water volumes, from ultra-low to high flows.
• Vendor Availability: Metron-Farnier operates as the exclusive factory-direct distributor for these specific high-performance meters.
City Policy Number 201-2-1, Procurement Policy and Procedure, allows for these types of purchases as follows:
• V- Purchasing Cycle, Section 7.6.4
This section of the Policy allows these types of purchases under a "Contract Purchase Order" which is an agreement whereby the terms and conditions, pricing, and special provisions are agreed to and apply to individual commitments within a pre-established time period. The price quotes attached for Fiscal Year 2027 from Ferguson Waterworks and Metron-Farnier would result in Contract Purchase Orders.
• V - Purchasing Cycle, Section 7.6.4 (a)
This section of the Policy regarding "Exclusive Requirements" would apply to these Contract Purchase Orders since no guarantee is made as to the quantity to be purchased, but it is agreed that any and all requirements will be purchased only under each Contract Purchase Order and from no other sources.
• XI - Exemptions To The Formal & Informal Solicitation Process, Section 1.7
This section of the Policy allows for exemption from the Informal and Formal Bidding Process for "Sole Source" suppliers, which allows approval of the attached price quotes with these vendors since Ferguson Waterworks is the only distributor in Southern California for Neptune Meters, and Metron-Farnier is the only distributor for the large meters that the City purchases.
Attached are the fixed-price quotes from Ferguson Waterworks and Metron-Farnier for Fiscal Year 2027. The prices for the smaller meters from Ferguson Waterworks reflect an average 10.4% increase from Fiscal Year 2026, and the prices for the large meters from Metron-Farnier reflect no increase from Fiscal Year 2026.
Considerations Identified by Staff:
Utilities staff recommends standardization of the City’s 17,600-meter water system using Neptune meters for small services (1 to 2 inches) and Metron-Farnier meters for large services (3 to 12 inches) to optimize operational efficiency, lower inventory costs, and ensure maximum billing accuracy across all flow ranges. Rigorous staff testing and regional benchmarking against neighboring agencies, such as the Irvine Ranch Water District, confirm these brands offer superior durability and technical performance. Because both manufacturers utilize exclusive distribution networks, with Ferguson Waterworks as the sole Southern California distributor for Neptune, and Metron-Farnier operating as a factory-direct sole source, this standardized procurement complies with City sole-source purchasing policies.
Council Options:
• Adopt Resolution No. 26-167, authorizing the Purchase of Water Meters for Fiscal Year 2027 and finding the project categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 (Existing Facilities, 14 CCR section 15301) of the State CEQA Guidelines.
• Modify and adopt Resolution No. 26-167.
• Continue the Item and direct staff to provide additional information.
• Deny Resolution No. 26-167 and deny the approval of the purchase of water meters for Fiscal Year 2027.
Environmental Review/Analysis:
The purchase of water meters has no potential to result in either a direct or physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Staff recommends that the City Council determine this action to be categorically exempt from the California Environmental Quality Act (CEQA) under Class 1 of the state CEQA Guidelines Section 15301 (14 CCR Section 15301, Existing Facilities). Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.
Fiscal Impact:
Funding for water meter purchases and replacements is included in the approved Fiscal Year 2027 budget, and no additional appropriation is being requested. Budget allocations have been approved in the following accounts:
• 052-463-42495 - $2,140
• 052-466-43420-000-23401 - $150,000
Potential Action(s):
recommendation
If the City Council concurs with the contents of this report, moving this item without modifications would result in adoption of Resolution No. 26-167, which would:
1. Find the project categorically exempt from CEQA under Class 1 (Existing Facilities, 14 CCR section 15301) of the state CEQA Guidelines.
2. Approve the purchase of water meters from Ferguson Waterworks as a sole source vendor based on the attached fixed price quote, provided as Attachment 2 of the Administrative Report dated October 20, 2026, and on file with the City Clerk.
3. Approve the purchase of water meters from Metron-Farnier as a sole-source vendor based on the attached fixed-price quote, provided as Attachment 3 of the Administrative Report dated October 20, 2026, and on file with the City Clerk.
4. Approve the expenditure for water meter purchases for Fiscal Year 2027 for a total amount not to exceed $152,140.
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Attachments:
1. Resolution No. 26-167
2. Price quote for small water meters from Ferguson Waterworks for Fiscal Year 2027
3. Price quote for large water meters from Metron-Farnier for Fiscal Year 2027
Notification:
None.