Camarillo City Council
AGENDA REPORT
Date: December 11, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Dave Klotzle, Public Works Director
Subject: VertexOne Software LLC – Software Agreement
BACKGROUND
In 2018, California passed Senate Bill 606 (SB 606) and Assembly Bill 1668 (AB 1668) to support its goal of "Making Conservation a California Way of Life" by improving water conservation and drought planning. These laws establish guidelines and a framework for setting long-term water efficiency standards, applying to the Department of Water Resources (DWR), the State Water Resources Control Board (SWRCB), and urban water suppliers such as the City of Camarillo.
The framework programs and initiatives are organized around four primary goals:
1) Use water more wisely,
2) Eliminate water waste,
3) Strengthen local drought resilience, and
4) Improve agricultural water use efficiency and drought planning.
To meet SB 606 and AB 1668 requirements, the City is employing new methods to enhance water use efficiency including the Advanced Metering Infrastructure (AMI) Project. The AMI Project is an automated meter reading and water usage information system that will convert over 14,000 City-customer water meters to AMI smart meters and install a new data communication network to relay water usage data from the smart meters to the City’s existing information system network. On September 11, 2024, City Council awarded a contract for construction of the AMI Project which will be completed in phases over several years.
DISCUSSION
To successfully implement the AMI Project and to assist in maintaining regulatory compliance reporting under the new and upcoming State standards for water efficiency and allocation goals, it is critical to integrate software to coordinate the AMI system with the City’s network.
VertexOne Software (VertexOne) is a cloud-based software platform designed for water utilities to provide a connection between the AMI smart meters and the City’s online utility
VertexOne - Software Agreement
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billing system. It transmits real time water use data from the smart meter system into a user-friendly online portal that customers can easily access at any time. VertexOne is a self-service portal where customers can access water usage and billing data, monitor and track their water consumption and process payments. It allows customers the option to request services such as establishing or terminating water service, and it provides the City the flexibility to create other online forms that may be needed. In addition, the portal will allow the City to quickly send mass messaging to customers for service outages and updates, conservation notices or any other notifications that may be required. The VertexOne software will proactively alert the City to any potential water leaks within the service area, enabling a timely response to address leaks, reduce water waste, and support the City’s water efficiency goals.
VertexOne Software is proprietary and only supplied by VertexOne Software, LLC. It is the only platform available that provides a leak detection tool that notifies customers of leaks by text, email or phone, will walk customers through how to locate the leak and will provide options for next steps if a leak is found. This full-service leak detection tool is patented and only available through VertexOne. The City’s Procurement Policy Section H.7 permits sole source purchases of proprietary items directly sold by the distributor.
Staff recommends authorization for VertexOne Software LLC as a sole source vendor for VertexOne Software.
As summarized in the table below, staff recommends approving a five-year agreement including a $65,000 implementation fee with VertexOne Software LLC in an amount of $314,296.37 for the use of VertexOne Software and associated services. Staff further recommends authorizing a contingency in the amount of $24,929.63 (approximately 10%) to address any unforeseen additional services that may be needed for a total agreement authorization of $339,226.00. Staff also recommends authorizing a future agreement amendment in the amount of $16,629.56 to add the Single Sign On (customer) feature option as a potential enhancement should it be needed to optimize customer service accessibility.
Term Annual Fee Implementation
Fee Total
FY 2024/25 $48,750.00 $48,750.00
FY 2025/26 - Year One $46,956.11 $16,250.00 $63,206.11
FY 2026/27 - Year Two $48,364.79 $48,364.79
FY 2027/28 - Year Three $49,815.74 $49,815.74
FY 2028/29 - Year Four $51,310.21 $51,310.21
FY 2029/30 - Year Five $52,849.52 $52,849.52
Sub Total $249,296.37 $65,000.00 $314,296.37
10% Contingency $24,929.64
Total Agreement Not to Exceed $339,226.01
Optional Add On Feature - Single Sign On Customer Use
First Year Amount $16,629.56 3% annual increase each subsequent year
VertexOne - Software Agreement
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FISCAL IMPACT
Funds for the VertexOne Software implementation fee are included in the Water Utility Fund budget, Professional Services Account No. 860-3605-436.36-01 in the amount of $48,750.
RECOMMENDATION
1. Authorize the City Manager to execute Agreement No. 2024-8, including a $65,000 Implementation fee with VertexOne Software LLC in an amount of $314,296.37 for the use of VertexOne Software and associated services; and
2. Authorize a contingency in the amount of $24,929.64 (approximately 10%) to address any unforeseen additional services or technical adjustments, for a total agreement authorization of $339,226.01; and
3. Authorize the City Manager to execute future amendments to the agreement including the potential enhancement of the optional add-on feature, Single Sign On (Customer) in the amount of $16,629.56 with an additional 3% increase for subsequent years.
ATTACHMENTS
1. CC Agreement No. 2024-08
2. Sole Source Documentation
REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None