HomeMy WebLinkAboutItem 13n - Purchase of Data Log Radio Water MetersAward Purchase Order for Water Meters
June 21, 2022
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DATE: June 21, 2022
TO: Honorable Mayor and City Council
FROM: Paul Cranmer, Public Works Services Director
By: John Corona, Utilities Superintendent
SUBJECT: PURCHASE ORDER WITH HYDROPRO SOLUTIONS FOR THE
PURCHASE OF DATA LOG RADIO READ WATER METERS FOR THE
CITY’S WATER DISTRIBUTION SYSTEM IN THE AMOUNT OF
$931,266.94
Recommendation: Approve
SUMMARY
As part of the Annual Meter Replacement Program, the Public Works Services
Department (“PWSD”) Warehouse maintains a supply of water meters for the Utilities
Section. To ensure that the City is receiving the most competitive prices for Advanced
Metering Infrastructure (“AMI”) radio read water meters, a formal bid process was
conducted in 2021 and Core & Main was awarded a Purchase Order (“PO”) for the lowest
responsive bid in the amount of $800,000 for Fiscal Year 2021-22. In May 2022, the City
received a letter from Master Meter, Inc. stating that HydroPro Solutions will be the
exclusive distributor of their products in the State. This renders the remaining PO balance
of $131,266.94 with Core & Main unusable since they can no longer sell Master Meter
products, which the City needs to purchase for its Annual Meter Replacement Program.
It is recommended that the City Council approve a sole source Purchase Order with
HydroPro Solutions for the purchase of AMI radio read water meters and related
infrastructure for the City’s water distribution system in the amount of $931,266.94.
BACKGROUND
The Annual Meter Replacement Program was created to replace manually read water
meters with new meters that are capable of being read via radio frequency. Currently,
the City’s radio read water meters utilize Automatic Meter Reading (“AMR”) technology,
which automatically collects consumption, diagnostic, and status data from the water
meter. The data collected is then uploaded to a central database for utility billing
purposes. In 2019, the PWSD Utilities Section began replacing the first-generation AMR
radio read water meters with Advanced Metering Infrastructure (“AMI”) radio read water
Award Purchase Order for Water Meters
June 21, 2022
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meters. The new AMI meters provide real time data to the consumer and will be read
remotely through the AMI meter infrastructure and base station hubs.
AMI radio read water meters have the capability of capturing the precise measurements
and readings of a customer’s water usage; it also includes leak detection and data logging
functions. AMI meters will also enable residents to monitor and be alerted for possible
leaks on their property, as well as assist them with historical water usage.
Water meter register accuracy is important in calculating water demands, forecasting
customer demands, and aids in conservation efforts. Once the AMI data log meters are
installed throughout the City’s water system, the meter reading staff can be used for other
water related maintenance assignments. However, as the system continues to be
converted over to AMI radio read, meter reading staff will complete other tasks such as
meter change outs, leaks, rereads, and other related maintenance to water meters and
boxes. The meter sizes that are being changed range from 5/8” to 2”. This work will also
include installing 2 base stations, 3 repeater stations, and 1 main data collection hub. It
is expected that it will take approximately 2 to 3 years to convert the water system over
to AMI meters.
DISCUSSION
The PWSD Warehouse is responsible for distributing all water meters to the Utilities
Section for meter replacement and new installations. The Warehouse maintains an on-
hand inventory to prevent an interruption of this service and orders replacement meters
to keep the inventory at acceptable levels. Typical meters in the City’s system are
replaced once every 15 years to ensure accurate water measurements. The American
Water Works Association (“AWWA”) standard for 5/8” to 2” water meters recommend this
replacement schedule to ensure water meter accuracy.
To receive the best prices possible for water meters, the City conducted a formal bid on
July 20, 2021, and Core & Main submitted the lowest responsive bid in the amount of
$815,208.35. On August 3, 2021, the City Council awarded a PO of $800,000 to Core &
Main for Fiscal Year 2021-22. On May 11, 2022, the PWSD received a letter from Master
Meter, Inc., stating that HydroPro Solutions will be the exclusive distributor for the State
of California effective June 1, 2022. As part of the City’s Capital Improvement Program,
the Annual Meter Replacement Program will retrofit all AMR and older meters to AMI
meters. The City utilizes Master Meter’s AMI meters for this Program and will need to stay
with the same manufacturer to ensure overall infrastructure compatibility and function.
Given Master Meter’s letter stating exclusive distribution rights belong solely to HydroPro
Solutions in California, this would make HydroPro Solutions a sole source for Master
Meter products.
Award Purchase Order for Water Meters
June 21, 2022
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The quantities previously provided in the bid specifications are based on estimates. Bid
documents state that the City may purchase an amount above or below the estimate
given according to the needs and requirements of the City at the unit prices quoted in the
bid. To ensure that there are acceptable quantities of water meters available in the City’s
warehouse, the purchase order amount will be for $931,266.94, which is the total amount
budgeted for AMI meters; however, the City will only purchase the amount necessary to
ensure enough are on hand.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
Funds in the amount of $800,000 have been budgeted in the Capital Improvement
Program in Fiscal Year 2022-23 for the Annual Meter Replacement Program. An
additional balance of $131,266.94 will be rolled over from the previous Fiscal Year’s PO.
The total amount in the proposed PO for FY 2022-23 is $931,266.94.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is, therefore, exempt under the California Environmental Quality Act
(“CEQA”); and approve a Purchase Order with HydroPro Solutions for the purchase of
Data Log Read Water Meters for the City’s water distribution system in the amount of
$931,266.94.
Attachment: Master Meter, Inc. Letter