REPORT TO THE CITY COUNCIL
FROM: PAUL AMICO, PE, Director
Department of Public Utilities
BY: CHAD COLBY, Water/Wastewater Manager - Certified
Department of Public Utilities - Water Division
SUBJECT
Title
Actions pertaining to the City of Fresno’s water meters, parts, and related replacement components (Citywide):
1. ***RESOLUTION - Adopt a resolution authorizing an exception to formal bidding procedures and award a sole source Requirements Contract with Badger Meter Incorporated in an amount not to exceed $5,235,863.45 (Subject to Mayor’s Veto)
2. Award a sole source Requirements Contract with Badger Meter Incorporated in the amount of $1,047,172.69 per year for two years with up to three one-year extensions, for a total contract amount not to exceed $5,235,863.45, plus annual Producer Price Index adjustments
Body
RECOMMENDATIONS
Staff recommends that the City Council adopt a Sole Source Resolution, award a Requirements Contract (Contract) with Badger Meter Incorporated (Badger) in the amount of $1,047,172.69 per year for two years, with up to three one-year extensions, for a total agreement amount not to exceed $5,235,863.45, subject to annual Producer Price Index (PPI) adjustments, and authorize the Director of Public Utilities, or designee, to sign the Requirements Contract on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
In 2010, the Department of Public Utilities (DPU) selected Badger through a competitive procurement process to provide the water meters, parts, automated metering components, software, and hardware that collectively make up the City’s automated metering infrastructure (AMI) system that collects and transmits water consumption data for over 144,000 customer water connections to a centralized data management system that is used for billing and tracking customer water usage data The Contract will allow DPU to continue to purchase the proprietary parts required to maintain the AMI system’s functionality as parts reach the end of useful life. The City awarded a sole source Requirements Contract to Badger in 2020 for AMI parts and components, and that contract has expired and a new contract is needed to continue the service.
BACKGROUND
In January 2010, City Council awarded the AMI contract to Badger through a competitive procurement process. Since then, DPU has deployed approximately 144,000 Badger AMI meters citywide for all customer water meters, and replacement meter parts and components are needed to maintain the AMI system and its functionality. The AMI relies exclusively on Badger’s proprietary endpoints, transmitters, and Beacon Advanced Metering Analytics software for customer billing, consumption data analysis, customer leak detection, and the customer water usage app EyeOnWater. Supporting gateways and network infrastructure are also Badger-specific. Due to the proprietary nature of the system, continued procurement of parts and components from Badger is necessary to maintain functionality and avoid service disruptions. The City awarded a sole source Requirements Contract to Badger in 2020 for AMI parts and components, and that contract has expired and a new contract is needed to continue the service.
The City Attorney’s Office has reviewed and approved the agreement and resolution as to form.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the actions described herein do not constitute a “project” as defined by CEQA.
LOCAL PREFERENCE
Local preference is not applicable as the City is utilizing a sole source provider.
FISCAL IMPACT
There is no impact to the General Fund. The Requirements Contract will be funded through appropriations within the Water Enterprise Fund operating budget.
Attachments:
Sole Source Resolution
Sole Source Letter
Requirements Contract