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Home My WebLink AboutItem 11k - Water Conservation Software DATE: August 16, 2022 TO: Honorable Mayor and City Council FROM: Paul Cranmer, Public Works Services Director By: Mandy Jiang, Management Analyst SUBJECT: EXTENSION TO THE SERVICES AGREEMENT WITH WATERSMART SOFTWARE, INC. TO PROVIDE WATER CONSERVATION EDUCATION SOFTWARE FOR ARCADIA WATER CUSTOMERS IN THE AMOUNT OF $133,407 Recommendation: Approve SUMMARY The existing Agreement with WaterSmart Software, Inc. approved by the City Council on September 4, 2018, is expiring and the vendor has offered a three-year extension. The proposed extension to the Services Agreement ensures that new and existing Arcadia utility residential customers continue to receive Home Water Reports and WebPortal access supplied by WaterSmart Software. The WaterSmart Software provides individualized household water use goals and water conservation tips that are essential for water conservation efforts. The proposed three-year extension of services agreement has an overall cost of $133,407 and will be paid at an annual rate of $43,057 in Fiscal Year 2022-23, $44,469 in FY 2023-24, and $45,881 in FY 2024-25. It is recommended that the City Council approve, authorize, and direct the City Manager to execute an Extension to the Service Agreement with WaterSmart Software, Inc. to provide water conservation education software for Arcadia water customers. BACKGROUND California is in a state of drought emergency. On May 25, 2022, the State Water Resources Control Board adopted emergency drought regulations as directed by Governor Newsom’s executive order, which includes a ban on irrigating non-functional turf in commercial, industrial, and institutional sectors to assist in efforts to conserve water, the City of Arcadia adopted Resolution No. 7430 and revised the summer watering schedule to two days per week as opposed to three days a week. As California continues to experience unpredictable weather conditions and water conservation remains of state legislative interest, it is beneficial to the City and community to continue efficient water use habits. Extension to the Services Agreement with WaterSmart Software, Inc. August 16, 2022 Page 2 of 3 The City of Arcadia has utilized WaterSmart Software, a cloud-based customer engagement and analytics platform, to provide residents with individualized household water use goals and water conservation tips. The proposed extension to the Services Agreement ensures continuing service to new and existing Arcadia utility residential customers. DISCUSSION WaterSmart Software is the leading cloud-based customer engagement and analytics platform for water utilities, helping utilities educate and engage with customers to improve water use efficiency and increase customer satisfaction. Under the proposed contract, WaterSmart's customer-engagement platform includes mailed and digital quarterly Home Water Reports, a WebPortal for customers, and a dashboard for Public Works Services staff. Through customer education and engagement, gains in water efficiency at the household level translate to system-wide savings necessary to meet the region’s goal of achieving a 20% water use reduction. WaterSmart Software provides the following functions: Customer Home Water Reports • Water Reports are emailed and printed quarterly and are individualized based on household water consumption with conservation recommendations. • Water Reports provide water use comparisons to similar properties by lot size and customizable number of household occupants. • Water Reports include community outreach with utility messages. Customer Facing Web Portal • Web portal provides targeted water saving recommendations. • Web portal offers at-a-glance historical consumption trends. • A water-use disaggregation model is available on the web portal to estimate the volume of water used in different household functions (shower, toilet, dishes, irrigation, etc.). • Web portal can alert customers about leaks/high use and resolution process. • Web portal is available on smartphones. Utility Dashboard • The utility dashboard allows for customer communication tools for individual and group communication. • Provides for digital form creation which will allow staff to include digital rebate applications tied to customer accounts. • The utility dashboard allows for the review of consumption analytics by customer class. As the need for water conservation continues to increase, it is imperative that new and existing single family residential customers continue to have access to WaterSmart Software. The continuing education that WaterSmart Software offers is essential to Extension to the Services Agreement with WaterSmart Software, Inc. August 16, 2022 Page 3 of 3 sustainable water use as it provides helpful tips on water saving measures and water use trends. The proposed contract extension will ensure ongoing service to new and existing Arcadia water customers who have signed up to use WaterSmart. WaterSmart is a robust, patent-pending, one-of-a-kind software solution, the contract would constitute a sole source agreement. WaterSmart has successfully contracted with more than thirty- four California public and private water utilities, including the Cities of Glendale, Pasadena, Los Angeles, Buena Park, and the Irvine Ranch Water District. 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 The overall cost of the extension is $133,407 and this will be paid at an annual rate of $43,057 in Fiscal Year 2022-23, $44,469 in FY 2023-24, and $45,881 in FY 2024-25. Sufficient funds are budgeted in Fiscal Year 2022-23 Operating Budget in the Water Fund. The associated annual fees for WaterSmart Software will be budgeted in subsequent fiscal years. RECOMMENDATION It is recommended that the City Council determine that this agreement extension is exempt under the California Environmental Quality Act (“CEQA”); approve, authorize, and direct the City Manager to execute an Extension to the Services Agreement with WaterSmart Software, Inc. to provide water conservation education software for Arcadia water customers in the amount of $133,407. Attachment: Extension to the Services Agreement with WaterSmart Software, Inc. Extension of Services Agreement WaterSmart Software, Inc. (“WaterSmart”) and City of Arcadia (“Utility”) would like to confirm an extension of their Services Agreement originally dated May 26, 2015 (the “Agreement”). The current term of the Agreement ends on September 1, 2022. WaterSmart and Utility agree to extend the Agreement for an additional period, which will begin immediately upon the expiration of the current term and will end on August 31, 2025 Unless otherwise specified herein, WaterSmart will provide the same services previously listed in Exhibit A, the Scope of Work, of the Agreement. Pricing for this extension term are listed below. All other terms and conditions previously agreed to in the Agreement, including insurance requirements and provisions, remain in force. Changes in Scope: None Program Overview • Program Length: 3-years • Current Accounts: 14,000 Total Accounts • Meter Data: • AMR/Manual Dashboard and Portal • Customer Portal: o Access for all accounts for all accounts o Additional Portal Language - Spanish • Utility Analytics Dashboard: Profiles for all accounts • Group Messenger & List Builder Alerts and Notifications • Leak Detections: All Singe Family Residential (SFR) Accounts • Leak Alerts: All Single Family Residential (SFR) Accounts (excluding Control Group) o Email, SMS Text, Automated Voice • Use Notifications: Access for all accounts Electronic Bill Presentment & Payments • Payment Website Integration: o Link to Existing Payments Portal from Customer Portal via generic URL Customer Letter • Send to all accounts with Portal access to provide Portal login, in advance of program Water Reports • Residential Recipients: 10,000 Accounts • Residential Control Group: 2,500 Accounts Special Circumstances • None Page Break The pricing and invoicing schedule for services during this extension term are shown below in Table 1. Table 1: Fee and Invoicing Schedule Program Feature Description Fee Invoicing schedule Services Fee for Year 1/3 Access to Utility Analytics Dashboard and Customer Portal, Delivery of Home Water Reports throughout Program, and Support & Customer Service $43,057.00 FY22-23 Services Fee for Year 2/3 Access to Utility Analytics Dashboard and Customer Portal, Delivery of Home Water Reports throughout Program, and Support & Customer Service $44,469.00 FY23-24 Services Fee for Year 3/3 Access to Utility Analytics Dashboard and Customer Portal, Delivery of Home Water Reports throughout Program, and Support & Customer Service $45,881.00 FY24-25 Total Fee $133,407.00 IN WITNESS WHEREOF, the Parties have executed this Services Agreement as of the date first written above. CITY OF ARCADIA WATERSMART SOFTWARE, INC By: ____________________________ By: ____________________________ Dominic Lazzaretto, City Manager Keith Foerster, CFO Date: ___________________________ Date: ___________________________ By: _____________________________ Andrew Jomod, CEO Date: ___________________________ ATTEST: ___________________________ City Clerk APPROVED AS TO FORM: ___________________________ Stephen P. Dietsch City Attorney