1 STAFF REPORT
DATE: J
anuary 24, 2023
TO: Just
in Hess, City Manager
FRO
M: Dawn Roth Lindell, General Manager, Burbank Water and Power VIA: Richard Wilson, Assistant General Manager, Water Systems BY: Jared Lee, Civil Engineer
SUBJE
CT: Adoption of a Resolution Adopting a California Environmental Quality Act (CEQA) Exemption for Existing Facilities a nd Authorizing Burbank Water and Power to Negotiate and Execute Contracts for a Water Advanced Metering Infrastructure (AMI) Program
RECOM
MENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK ADOPTING A
CEQA EXEMPTION FOR EXISTING FACILITIES AND APPROVING CONTRACTS FOR A WATER ADVANCED METERING INFRASTRUCTURE PROJECT (Attachment 1).
BACKGROUND
During the 2008-2009 drought, the need to monitor water use to increase conservation became an important issue. The city investigated several options and decided to use a new technology called advanced metering infrastructure (AMI) that uses a wireless network system that automatically collects meter reads throughout the city and brings them into our billing system . With the addition of an add- on system called WaterSmart, AMI provided our customers with leak alerts that saved BWP customers thousands of dollars and provided hourly water use patterns that helped us understand how and when our customers use water.
Howev
er, the AMI system did not perform as expected and significant portions of the system gradually began failing within a few years. Now, approximately one- fourth of the system has to be read manually and the remaining system is now generations behind the current technology, which has advanced by leaps and bounds since 2009. We also did not take full advantage of WaterSmart and relied more on customer messaging.
The st
akes are higher now. We are living through an unprecedented drought and experiencing the driest years in recorded history. The old view that we need to “get through this drought” until things are normal again is inadequate. Consider this:
• Burba
nk has no water rights; all of our water must be imported;
WATER AND
POWER
2 • State Water Project (SWP) supplies are constrained to only providing health and safety needs for SWP-dependent areas;
• The Colorado River system will see cutbacks in wat er allocations in 2023 due to declining reservoir levels;
• Through November 2022, Burbank’s cumulative progress toward our water reduction goal of 15% from 2020 levels was 5.6%; and
• State legislation is expected to require cities to meet indoor water use targets of 42 gallons per capita per day and be responsible for meeting their water budgets.
We must adapt to the reality that the region’s dry climate is long-term and therefore, BWP must continue to work towards our vision for water sustainability to ensure that every home, business, and building has the opportunity to improve water efficiency. AMI will play a leading role in making this vision reality by making water use data available to all customers and , through WaterSmart, allow the city to monitor water use and send messages to customers who are not complying with the sustainable water use ordinance.
BWP recently hired a project manager to focus on combining WaterSmart with data analytics and algorithms to m onitor water use and enforce watering restrictions. The results of doing so are provided in the table below , which were also shown at the December 1, 2022 BWP Board meeting presentation. Using AMI has effectively reduced the number of customers not complying with the sustainable use ordinance.
Not Adhering to
Irrigation Schedule
% of Non-
Compliance Action
August 3,082 25% Courtesy notification focused
on customer education
September 1,483 12% 1st Notice Sent
October 1,187 9% • 428 1st Notices
• 759 2nd Notices
November 298 2%
• 51 1st Notices
• 97 2nd Notices
• 150 Citations
AMI can also be used to reduce water waste and identify leaks before they turn into expensive headaches that could cost customers thousands of dollars
Earlier this year, BWP hired Met erSYS, a consulting firm with AMI expertise, to develop the technical requirements and corresponding bid documents to replace the failing AMI system with the latest technology t hat is fully compatible with BWP’s billing system and WaterSmart.
AMI Network, Software, and Implementation Program
In September 2022, BWP posted the AMI RFP on Planet Bids listed as RFP 2022- 028- BWP for a competitive solicitation process for the implementation and installation of an AMI network and associated software and equipment (AMI Project) . BWP received six proposals, which were comprehensively reviewed by BWP staff from the Water Division, Electric Division, Customer Service Division, and Operations Technology Division. The 3 proposals were evaluated and scored separately on technical merit and cost. BWP invited the top three shortlisted companies to in- person interviews at the BWP Campus on November 7, 2022. Key BWP staff from water, electric, customer service, and operations technology determined that Thirkett le Corporation, dba Aqua -Metric Sales Company (Aqua-Metric), has the best solution that met the city’s needs. Bid scoring and costs are summarized in the table below. Note that costs do not include meter box lid replacement costs and ancillary software integration and maintenance costs that could range up to an additional $2,000,000 and would be within the approved budget.
Bidder
Combined
Technical and
Cost Score
Oral
Presentation
Score
Cost Ranking
Aclara Technologies
LLC 84 60 $4,535,304.95 3
American
Conservation &
Billing Solutions1
0 - $7,101,869.20 6
Aqua-Metric 80 95 $4,868,909.17 1
Ferguson
Waterworks 71 78 $5,129,753.87 2
Mueller Systems
LLC 70 - $4,566,658.22 4
WESCO Distribution 63 - $4,726,555.50 5
1. American Conservation & Billing Solutions did not meet the proposal requirements and was disqualified.
Aqua-Metric proposes the Sensus FlexNet (Sensus) AMI solution that will:
• seamlessly integrate with BWP’s w ater, customer service, and operations technology infrastructure
• work with our existing water meters as an endpoint-only replacement project • interface with our customer service operations and WaterSmart • be compatible with our electric AMI system so that it will be easier and more cost- effective to replace it in the future
The Sensus communication network is the best fit for Burbank’s topography and we will not have to share the r adio frequency with other users. The meter data will be directly received by our equipment without it having to skip across the city using other devices along the way. We will have better coverage across the city, consistent read performance and make time of use (TOU) rates for the electric system more reliable should we elect to use Sensus for electric AMI.
Moreover, Sensus is a proven multi -commodity solution under a single AMI platform.
They have over 900 AMI customers with over 45 million FlexNet-enabled meters (electric, gas, and water), including SoCalGas, Eastern Municipal Water District, Azusa Light and Water, and the City of Long Beach. They have deployed over 1,200 FlexNet Networks, 150 of which are covering two or more service types.
4 Aqua-Metric will provide BWP with a highly qualified team of AMI planning and installation personnel that use their own employees for field installation, not temporary contractors.
They have significant experience with nearly 200 AMR/AMI system deployments , sized from 300- meter endpoints to more than 275,000- meter endpoints, and are located in Riverside, CA.
Sensus provides an industry -leading warranty with a fifteen- year full replacement warranty and five- year prorated equipment warranty on its FlexNet communication modules. Most competitors only provide a ten-year full replacement warranty with a ten- year prorated equipment warranty on their wireless communication modules.
Sensus also has a demonstrated commitment to maintaining forwards and backwards compatibility with all FlexNet components. They began deploying two- way Flexnet modules in 2011 which are still operational today. Sensus preserves backwards compatibility with all meters and endpoints deployed in the fi eld by testing and verifying backward compatibility prior to releasing new products. The FlexNet network will function with all devices, old and new, for the full warranty duration of 20 years. By partnering with Aqua-Metric and Sensus, BWP will implement a proven technology that does not have an expiration date, transmits accurate meter reads over a secure AMI network, is properly installed, and is supported during and post-project by the Aqua-Metric team.
Professional Services Agreement for AMI Program Management BWP needs an experienced AMI Program Manager to manage day-to-day operations and ensure that the project stays within scope, under budget, and on schedule. The AMI program upgrade is a massive undertaking that extensively involves BWP water, electric, customer service, and operations technology divisions. BWP must:
• install 27,090 endpoints to our water meters with the new Sensus Communication Module;
• install a new FlexNet wireless network;
• ensure that Sensus communicates seamlessly and accurately with BWP’s Customer Information System;
• maintain our existing legacy Itron AMI system until project completion; and • continue to manually read 7,753 meters where the Itron AMI has failed; and ensure that customer meter reads are taken accurately and billed on a timely basis.
In July 2021, BWP posted RFP BWP- 21-W-0702 on Planet Bids for competitive bidding for a Professional Services Agreement (PSA) for Water Advanced Metering Infrastructure Planning, Specification Writing, and Project Management Services (AMI Program Management Services) . BWP received eight proposals which were comprehensively reviewed by BWP staff from Water Division, Electric Division, Customer Service, and Operations Technol ogy. The proposals were evaluated and scored separately on technical merit and cost. At the conclusion of the competitive selection process, the PSA was awarded to Honeycutt Consulting Company, dba MeterSYS (MeterSYS).
5 MeterSYS has performed very well in producing the AMI RFP and has developed a comprehensive understanding of BWP’s water, electrical, customer service, and operations technology divisions ’ existing and future needs. MeterSYS has significant experience in managing several other AMI programs, including local projects in the Las Virgenes Municipal Water District, the City of Corona, and the City of Oceanside. Upon MeterSYS’s recommendation, BWP pursue d and received a California Department of Industrial Relations (DIR) Special Prevailing Wage Determination for the AMI installer .
We argued to DIR that the installation of AMI endpoints does not fall into any existing wage category and needs its own wage determination. This process took time, but it reduced the average prevailing wage from $71/hr. to $42/hr. The special wage determination results in an estimated $700,000 in project savings for rate payers by not having to pay the higher average prevailing wage rate.
MeterSYS is one of the very few firms in the U.S. that is focused entirely on planning, selecting, and implementing AMI systems for public utilities. The firm was established as a neutral consultancy to public utilities and an advocate for agencies in planning and implementing AMI. As a boutique firm, MeterSYS is nimble in the market for advancements in metering technology while maintaining focus on the goals of water, electric, and gas utilities for their infrastructure investments. For BWP, MeterSYS is assigning the most senior-level project managers and consultants to ensure the utility will have a sustainable AMI solution over the expected 15- year life cycle while working to empower BWP staff to fully leverage the enhanced data and automation that comes from AMI. In addition to consulting, MeterSYS has dedicated field technicians that support their quality program for AMI installation and field/back-office data management.
MeterSYS has successfully implemented Sensus FlexNet for several utilities including water and electric combination deployment s. Their senior-level consultants have strong technical skills in Sensus applications for the network and for customer service
MeterSYS is selected to perform the AMI Project Management due to their thorough analysis of BWP’s complex water, electrical, customer service operations, and operations technology systems, processes, and workflows. Metersys was selected through a competitive bidding process for this work. Due to their demonstrated ability to perform high quality work with a project team that is highly accessible to BWP, Meters SYS is selected for the AMI Project Management contract.
ENVIRONMENTAL REVIEW
The AMI project is subject to the California Environmental Quality Act (CEQA) and reviewed for compliance with CEQA. Staff’s analysis indicates the p roject would be categorically exempt under 14 Cal. Code Regulations Section 15302(c) with respect to “[r]eplacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of the capacity”. The AMI project involves the replacement of wireless components and upgrading the network and ancillary facilities for the same purpose with only negligible or no expansion of capacity.
FISCAL IMPACT
BWP has budgeted $8,000,000 in approved f iscal year 2022-2023 funds in BWP water division’s engineering cost center (PS51D) budget.
6 To reduce this project’s burden on ratepayers, BWP has applied for the Bureau of Reclamation (BOR) Watersmart Water and Energy Efficiency Grants program (WEEG) and is applying for the California Division of Water Resources (DWR) Integrated Regional Water Management Program Grant Program (IRWM) and DWR Urban Community Drought Relief Grant Program (UCDR) . The WEEG program requires a minimum local match of 50% of the total project costs in non- federal funds such as cash or third- party contributions including state funding. The IRWM program requires a minimum local match of 50% of the total project costs in non- state funding. The UCDR program requires a minimum local match of 25% of the total project costs in non- state funding. If BWP is awarded the requested amounts for all three grants with reductions for local matching, the AMI project can be funded entirely through grants. Total grant funding cannot exceed actual project costs.
Grant Funding
Request
Funding
Type
Submittal
Date
Notice of Award
(Expected)
BOR
WEEG $3,200,000 Federal 7/27/22 1st Quarter 2023
DWR
IRWM $250,000 State 2/1/23 1st Quarter 2023
DWR
UCDR $6,000,000 State 1/31/23 March 2023
CONCLUSION
Staff recommends that the City Council find that the AMI p roject is categorically exempt as a replacement or reconstruction of existing facilities and to authorize the BWP General Manager, as the City Manager’s designee , to (1) negotiate and execute contracts with Aqua-Metric for an AMI n etwork, software, and installation program pending successful negotiations and to (2) execute a professional services agreement with MeterSYS for AMI program management services.
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Aqua-Metric Proposal
Attachment 3 – MeterSYS Proposal