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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 Page 2 of 3 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 Page 3 of 3 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