Camarillo City Council
AGENDA REPORT
Date: September 11, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Dave Klotzle, Public Works Director
Subject: Advanced Metering Infrastructure (Project No. WT-5080) – Award Construction Contract
BACKGROUND
The water utility industry is transitioning to Advanced Metering Infrastructure (AMI) which is an automated meter reading and water usage information system providing benefits to both the City and City water customers.
The Advanced Metering Infrastructure – Project No. WT-5080 (Project) consists of converting the City’s 14,000+ water meters to AMI and constructing a new data communication network. This infrastructure will automatically relay water usage data to the City’s network, improving the City’s efficiency in meter reading and leak detection, thereby resulting in increased water use efficiency. This Project will provide customers with a tool to better understand and optimize their water usage. The water usage customer online portal will be implemented during the project and is anticipated to be live for customer use prior to the end of the project. The project is expected to last around three years starting with the base bid and progressing sequentially through the alternate bids.
The Project will assist the City in meeting State water use efficiency objectives set by Assembly Bill 1668 and Senate Bill 606 designed to achieve the State’s goal of “Making Conservation a California Way of Life.”
In addition to advancing sustainability efforts in regards to water conservation, the Project will also accomplish a goal of the City’s Sustainability Master Plan (SMP) for Municipal Operations. The AMI project is specifically listed in the SMP as an action to reduce employee vehicle miles travelled since water meters would no longer be read by staff driving vehicles. Additional sustainability benefits of the Project include reduction in GHG emissions and protection of natural resources. This would also allow for additional staff time to perform deferred maintenance work and address customer service concerns.
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On May 22, 2024, the City Council authorized staff to solicit bids for construction of the Project and found the Project exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15301 Part B. The solicitation for bids included a base bid as well as alternate bids for various meter size groups and installation timeframes to allow for flexibility in awarding a contract.
DISCUSSION
Construction Bids
Staff issued a Notice Inviting Bids on June 8, 2024, for the Project. On July 25, 2024, the City received two (2) bids for construction as shown in the following table:
Name of Bidder $ Amount of Bid
Ferguson Enterprises LLC, dba
Ferguson Waterworks
Poway, CA
Base Bid ..................................$ 1,272,765.15 Alternate Bid 1………………….$ 4,669,442.24
Alternate Bid 2………………….$ 2,715,895.91
Alternate Bid 3………………….$ 1,195,202.87
TOTAL.....................................$ 9,853,306.17 Thirkettle Corporation dba
Aqua-Metric Sales Company
Riverside, CA
Base Bid ..................................$ 1,876,332.68 Alternate Bid 1………………….$ 4,861,671.56
Alternate Bid 2………………….$ 2,712,934.27
Alternate Bid 3………………….$ 1,083,343.06
TOTAL………………………..$ 10,534,281.57
The Base Bid consists mainly of AMI network infrastructure and water meter retrofits for FY 2024/25. Alternate Bid 1 consists primarily of smaller residential water meter replacements for FY 2025/26. Alternate Bid 2 is for additional domestic and mid-size water meter replacements for FY 2026/27. Alternate Bid 3 is for the larger water meter replacements typically for commercial/industrial use for FY 2027/28. Based on staff’s evaluation of bids received and accounting for economies of scale, the bid alternate costs are anticipated to be more expensive if bid in the future as separate, stand-alone projects, therefore staff recommends award of the Base Bid and all three Alternate Bids for a multi- year Project.
Staff reviewed the low bid submitted by Ferguson Enterprises LLC, dba Ferguson Waterworks (Ferguson Waterworks) and all associated forms, investigated the contractor, and determined Ferguson Waterworks to be responsive to the bid solicitation.
Therefore, staff recommends awarding a construction contract (Attachment 1) to Ferguson Waterworks for the Base Bid in the amount of $1,272,765.15; Alternate Bid 1 in the amount of $4,669,442.24; Alternate Bid 2 in the amount of $2,715,895.91; and Alternate Bid 3 in the amount of $1,195,202.87 for a total amount of $9,853,306.17 and authorizing a construction contingency in the amount of $492,670 (approximately 5%) for WT-5080 - Award Construction Contract
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unforeseen additional work if required, for a total contract authorization of $10,345,976.17.
Inspection Services
Consultant inspection services are required for the Project. In April 2021, staff advertised a Request for Qualifications (RFQ) and subsequently established a list of qualified consultants to provide various services, including inspection services. Staff selected Filippin Engineering, Inc. (Filippin) from the consultant list as the most qualified firm to provide the necessary inspection services for the Project. Filippin has successfully performed work for the City in the past and has significant inspection experience working on similar types of capital projects.
Staff negotiated a scope of services and fee with Filippin and recommends approving a standard professional services agreement with Filippin in an amount not-to-exceed $420,025 for inspection services (Attachment 2) and authorizing a contingency in the amount of $63,005 (approximately 15%) for unforeseen additional services if required, for a total agreement authorization of $483,030.
Project Management and Design Services During Construction On June 22, 2022, the City Council awarded a professional services agreement with MeterSYS LLC (MeterSYS) for project management and design services for the Project in the amount of $240,558 with an authorized contingency in the amount of $36,100 for unforeseen additional services for a total agreement authorization not-to-exceed $276,658.
Now that construction is ready to begin, an amendment with MeterSYS is required for additional services to provide project management and design support during construction. Staff recommends a first amendment to Agreement 2022-152 with MeterSYS in an amount not-to-exceed $610,581 for project management and design services during construction (Attachment 3) for a total agreement amount of $851,139 and re-establishing the contingency in the amount of $91,590 (approximately 15% of the first amendment amount) for a total agreement authorization of $942,729.
During the initial stages of Project construction, staff and MeterSYS will continue to develop and implement the customer interface for billing and water use information. Staff will return to City Council in the near future for separate procurement of the customer interface services.
Budget Analysis
The project construction costs are summarized below:
Contractor Contract $ 9,853,306.17
Contractor Contingency $ 492,670.00
Inspection Services $ 420,025.00
Inspection Services Contingency $ 63,005.00
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PM & Design Services Amendment $ 610,581.00
PM & Design Services Contingency $ 91,590.00
Total Construction Phase Expenses $ 11,531,177.17
The current FY 2024-2029 Capital Improvement Program (CIP) included a total remaining construction phase budget of $10,529,119 over a three-year period. The low bid submitted was approximately $850,000 above the engineer’s cost estimate. Staff performed a thorough bid analysis and determined the low bid to be responsive and valid.
The cost increase is attributed to the recent high bidding climate and the bid document requirements to spread the Project over several years to minimize impacts on water rates.
FISCAL IMPACT
Approximately $3,000,000 is expected to be spent in FY 2024/25 with the remaining $8,531,177.17 spent in FY 2025/26, FY 2026/27, and FY 2027/28. FY 2024/25 funds for the construction contract, professional services agreement, amendment, and contingencies are included in the in the Water Capital Projects Fund, 863-8716-487.92- 41 and Project WT-5080. The remaining $8,531,177.17 will be budgeted for the Project in FY 2025/26, FY 2026/27, and FY 2027/28.
RECOMMENDATION
1. Authorize the City Manager to execute Public Works Contract No. 2024-172 with Ferguson Enterprises LLC, dba Ferguson Waterworks in an amount not-to-exceed $9,853,306.17, and authorize a contingency in the amount of $492,670, for a total contract authorization of $10,345,976.17; and
2. Authorize the City Manager to execute future contract change orders to the contract with Ferguson Enterprises LLC, dba Ferguson Waterworks for unforeseen additional work up to the authorized contingency amount; and
3. Authorize the City Manager to execute Professional Services Agreement No. 2024- 173 with Filippin Engineering, Inc. in an amount not-to-exceed $420,025 for inspection services, and authorize a contingency in the amount of $63,005, for a total agreement authorization of $483,030; and
4. Authorize the City Manager to execute Professional Services Agreement No. 2022- 152A with MeterSYS LLC in an amount not-to-exceed $610,581 for additional project management and design support services during construction, and authorize a contingency in the amount of $91,590, for a total agreement authorization of $942,729; and
5. Authorize the City Manager to execute future amendments to the agreements with Filippin Engineering, Inc. and MeterSYS LLC for unforeseen additional services up to the authorized contingency amounts.
ATTACHMENTS
1. CC Agreement 2024-172
2. CC Agreement No. 2024-173
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3. CC Agreement No. 2022-152A
4. CC Agreement No. 2022-152
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None