Camarillo City Council
AGENDA REPORT
Date: June 26, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Dave Klotzle, Public Works Director
Subject: Software Agreement - Itron, Inc.
BACKGROUND
The City of Camarillo currently utilizes Itron equipment to support water meter and customer billing services. Originally purchased in January 1999, the Itron handheld devices and related software are used for the City’s combination of automated and manual water meter readings. Customer support for software and equipment repairs is no longer available, therefore the handheld devices and software must be replaced.
On June 9, 2023, a purchase order was issued to Inland Water Works Supply, Co. for the sole source purchase of Itron handheld devices and software. Shortly after the purchase order was issued the company was sold, and the purchase order was cancelled. Staff is now working directly with Itron, Inc. (Itron) as the sole source distributor of Itron software.
On April 10, 2024, City Council approved the sole source purchase of Itron equipment from Itron’s authorized distributor, IFlow, Inc. A purchase order was issued, and the equipment is set to arrive in August 2024.
DISCUSSION
With the purchase of the new equipment, the City needs to enter into a software agreement with Itron for Temetra cloud-based software. Itron is the only distributor for the data collection and analysis solution suite that includes Temetra cloud-based software subscriptions and maintenance for handheld devices, mobile collectors, and fixed network data collection devices. As an exclusive supplier, Itron falls under Procurement Policy Section H.7., which permits sole source purchases of proprietary items directly sold by the distributor.
To ensure uninterrupted water meter reading and customer billing services, staff recommends authorizing a three-year subscription with Itron for Temetra Cloud-based Software including annual maintenance on the new equipment in the amount of
Software Agreement - Itron, Inc.
June 26, 2024
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$54,476.83, with a contingency of $5,500 (approximately 10%) for unforeseen additional services, for a total expenditure authorization of $59,976.83.
Four new iPhone devices will be purchased separately at a total cost of approximately $1,460 using available funds in the Water Division budget. The iPhone devices will serve as replacement handheld data input devices for the manual meter reading and connection to the new software.
The new equipment and software will be utilized for existing water meters and will eventually be replaced by the City’s fully automated Advanced Metering Infrastructure (AMI) system which will replace all water meters in a phased implementation project over the next few years.
The annual costs for the software subscription are summarized in the table below.
Fiscal Year Amount
2024/25 $17,111.71
2025/26 $18,138.41
2026/27 $19,226.71
Total Three-Year Agreement Amount $54,476.83
10% Contingency $5,500
Total Authorized Expenditure $59,976.83
FISCAL IMPACT
Funds for the annual software subscription are included in the FY 2024/25 Proposed Budget, Water Utility Fund, Supplies and Equipment Account No. 860-3605-436.61-16.
CEQA DETERMINATIONS
City staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that Itron Software Agreement is not subject to CEQA review because it can be seen with certainty that there is no possibility that the Itron Software Agreement may have a significant effect on the environment.
RECOMMENDATION
1. Find the Itron Software Agreement is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines; and
Software Agreement - Itron, Inc.
June 26, 2024
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2. Authorize the City Manager to execute Agreement No. 2024-122 with Itron, for an amount not-to-exceed $54,476.83, and authorize a contingency in the amount of $5,500, for a total expenditure authorization of $59,976.83, and,
3. Authorize the City Manager to execute future amendments to the Agreement with Itron for unforeseen additional services, up to the authorized contingency amount.
ATTACHMENTS
1. Sole Source Letter
2. Agreement No. 2024-122
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None