HomeMy WebLinkAboutItem 11i - Purchase of Water MetersAward Purchase Order for Water Meters
July 16, 2024
Page 1 of 3
DATE: July 16, 2024
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
$1,394,000
CEQA: Exempt
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. 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.
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 $1,394,000.
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. The City’s
radio read water meters utilized Automatic Meter Reading (“AMR”) technology, which
automatically collects consumption, diagnostic, and status data from the water meter. The
data is collected from mobile devices by City staff 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 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.
Award Purchase Order for Water Meters
July 16, 2024
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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 also enable residents to monitor and receive alerts for possible
leaks on their property, as well as assist them with historical water usage information.
Water meter register accuracy is important in calculating water demands, forecasting
customer demands, and assisting in water conservation efforts. Once the AMI data log
meters are installed throughout the City’s water system, the meter reading staff will have
more capacity to complete other work such as meter change outs, leaks, rereads, and
other related maintenance for water meters and boxes.
To date, the City has converted approximately 2/3 of all water meters throughout Arcadia
to AMI data log meters. Initially, conversion of the entire water system was scheduled to
be completed by Fiscal Year 2023-24. However, due to ongoing delays that began after
COVID, compounded by production issues with the manufacturer, the City was not able
to purchase all the meters needed to meet the deadline. All final meters necessary to
complete AMI Conversion will be purchased this Fiscal Year.
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
available inventory to prevent any service interruptions 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 also
recommends this replacement interval.
To receive the best price possible for water meters, the City conducted a formal bid on
July 20, 2021. On May 11, 2022, the PWSD received a letter from Master Meter, Inc.,
stating that HydroPro Solutions will be the exclusive distributor of Master Meter products
in 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.
To ensure that there are acceptable quantities of water meters available in the City’s
warehouse, the purchase order amount will be for $1,394,000; however, the City will only
purchase the amount necessary to ensure adequate inventory levels.
Award Purchase Order for Water Meters
July 16, 2024
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ENVIRONMENTAL ANALYSIS
This project involves the replacement and minor alteration of an existing utility system
with no expansion of the system, and therefore, qualifies as a Class 2 categorical
exemption per Section 15302(2) of the California Environmental Quality Act (“CEQA”).
FISCAL IMPACT
Initially, conversion of the entire water system was scheduled to be completed by Fiscal
Year 2023-24. However, due to ongoing delays caused by the COVID-19 pandemic and
production issues with the manufacturer, the City was not able to purchase all the meters
needed in Fiscal Year 2023-24. All final meters necessary to complete AMI Conversion
will be purchased in Fiscal Year 2024-25. This purchase order is in the amount of
$1,394,000; however, only the needed amount to complete the changeout and maintain
a sufficient inventory will be acquired. Sufficient funds have been budgeted in the Fiscal
Year 2023-24 and 2024-25 Capital Improvement Program.
RECOMMENDATION
It is recommended that the City Council determine that this action is 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 $1,394,000.
Attachment: Master Meter Sole Source Letter
Visit our Web Site: www.mastermeter.com
101 Regency Parkway
Mansfield, Texas 76063
PH# 800-765-6518
817-842-8000
FAX# 817-842-8100
July 3, 2024
City of Arcadia, CA.
Attn: John Corona
Utilities Superintendent
626-256-6583
11800 Gold Ring Rd.
Arcadia, CA 91066
Dear Mr. Corona:
On behalf of HydroPro Solutions and Master Meter, Inc. we appreciate the continued opportunity to
serve your metering needs.
Please let this correspondence confirm that HydroPro Solutions is the only authorized waterworks utility
distributor for Master Meter in the state of California. This includes Master Meter’s entire product line
including but not limited to all sizes and types of water meters, AMR/AMI meter reading system,
components, and accessories.
If you should have any questions or require additional information, please don’t hesitate to contact me
at 800-765-6518.
Respectfully,
Neal Farmer
Regional Vice President of Sales
Master Meter, Inc.
cc: Ed Amelung, RSM, Master Meter, Inc.
Christopher Lambros, Executive V.P., HydroPro Solutions