DEPARTMENT City Distribution Division AGENDA NO. 14
MEETING DATE December 10, 2024
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract Manager: Jose Yan
Award Contract No. PRO.0302, Meter Maintenance Diagnostics Services Summary of
Proposed
Commission Action:
Award Contract No. PRO.0302, Meter Maintenance Diagnostics Services, to Olea Networks, Inc., for an amount not- to-exceed $2,400,000 and with a duration of five years, to provide to San Francisco Public Utilities Commission Water Enterprise City Distribution Divi sion professional services to support the Water Loss Reduction Program.
Background: The San Francisco Public Utilities Commission ( SFPUC) City Distribution Division (CDD) Water Loss Reduction Program is responsible for meeting water loss performance standards for urban retail water suppliers set forth by the State Water Resources Control Board (State Water Board) , under California Water Code Section 10608.34 and Executive Orders B -37-16 and B-40-17, directing the State Water Board and Department of Water Resources to minimize water waste through system leaks.
Water loss performance standards consist of apparent losses ( e.g., customer meter inaccuracies, systematic data handling errors, and unauthorized consumption) and real losses ( e.g., leaks, breaks, and overflows). One contributor to apparent losses can be addressed by meter testing to identify meters in need of maintenance/repair.
The CDD meter shop is responsible for the procurement, operation, and maintenance of water meters within the City and County of San Francisco, totaling approximately 180,000. Of these, approximately 1,200 are considered large meters, 3-inch and larger in size.
On May 29, 2024, the SFPUC issued a Request for Proposals and received one responsive proposal from a qualified contractor, Olea Networks, Inc.
Scope of Contract: The work under this contract will retain professional services to diagnose large meters located at various locations in San Francisco to determine if water meters are performing according to industry accuracy standards and to provide t he SFPUC with repair/replacement recommendations. The professional services will minimize impacts to the customer by using external non-invasive equipment when diagnosing water meters. Retaining an independent meter maintenance diagnostics service provider will avoid potential conflict of interest between SFPUC and customers , especially if corrective actions taken may result in increased customer billing.
Agenda Title: PRO.0302, Meter Maintenance Diagnostics Services Commission Meeting Date: December 10, 2024
Funding and Costs: Funding Source: Water Enterprise Capital Improvement Program, Project No. 10036917, Water Loss Reduction Program
Not-to-Exceed Amount: $2,400,000
Schedule: Advertised: May 29, 2024
Estimated Notice-to-Proceed Date: January 2025
Estimated End Date: January 2030
Duration: five years
Final Score
Summary:
Scores for the Technical Written Proposal and Diversity, Equity, and Inclusion (DEI) Submittal:
Firms
Written
Proposal
Score
(995)
DEI Score
(5)
Total Score
(1,000)
Olea
Networks,
Inc.
793.063 0 793.063
Note: Scores have been rounded to the third decimal place.
Environmental
Review:
Award of this professional service contract does not constitute a “project” under the California Environmental Quality Act Guidelines section 15378 because there would be no physical change in the environment.
Local Business
Enterprise
Utilization and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 5% Local Business Enterprise (LBE) subcontracting requirement for this contract. The contractor committed to a 78% LBE subcontractor participation with its bid submittal.
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: PRO.0302, Meter Maintenance Diagnostics Services Commission Meeting Date: December 10, 2024
Various Locations of Large Water Meters
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) requires professional services to reduce non-revenue water by testing large water meters, providing SFPUC City Distribution Division (CDD) repair/replacement recommendations , avoiding potential conflict of interest with customers if billing increases, while minimizing impacts to the customer by using external non-invasive equipment; and
WHEREAS, On May 29, 2024, the SFPUC advertised a Request for Proposals, PRO.0302, Meter Maintenance Diagnostics Services, to procure the services of a qualified meter maintenance diagnostics firm to provide specialized testing of water meters located at various locations in San Francisco to determine if the water meters are performing according to industry accuracy standards and to supplement SFPUC staff; and
WHEREAS, The estimated cost of services is for an amount not -to-exceed $2,400,000; and
WHEREAS, Services are anticipated to begin in January 2025 and end in January 2030, for a total contract duration of five years; and
WHEREAS, SFPUC and Contract Monitoring Division (CMD) staff, upon review of the proposal scores, determined that Olea Networks, Inc. (Olea Networks, Inc. ) was the sole respondent, and that Olea submitted a responsive proposal and is qualified to perform the contract services; and
WHEREAS, The CMD established a 5% Local Business Enterprise (LBE) subconsultant participation requirement for this contract , and Olea Networks, Inc. , committed to a n LBE subconsultant participation of 78% with its proposal; and
WHEREAS, Award of this professional service contract does not constitute a “project” under the California Environmental Quality Act Guidelines section 15378 because there would be no physical change in the environment; and
WHEREAS, Funds for Contract No. PRO.0302, Meter Maintenance Diagnostics Services, will be available from Water Enterprise Capital Improvement Program, Project No. 10036917, Water Loss Reduction Program; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. PRO.0302, Meter Maintenance Diagnostics Services , to Olea Networks, Inc., for an amount not -to-exceed $2,400,000, and with a duration of five years.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of December 10, 2024.
Director of Commission Affairs
San Francisco Public Utilities Commission
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Stephanie Tang, Director
1155 Market Street, 4th Floor, San Francisco, CA 94103 Telephone (415) 581-2310; Fax (415) 581-2351
MEMORANDUM
Date: October 22, 2024
To: Jose Yan, Contract Manager, SFPUC
Daniel Kwon, Contract Administrative Analyst, SFPUC
From: Jovi Cuntapay-Vitin, Contract Compliance Officer, CMD
Subject: CMD Award Memo for PRO.0302 Meter Maintenance Diagnostics Services
The Contract Monitoring Division (“CMD”) has reviewed the consultant proposals and supporting documentation, and applied the appropriate rating bonuses submitted for the above referenced project. Based on this review, CMD has determined that the proposals were materially compliant with the pre-award Chapter 14B requirements.
Rating Bonus
The following is a summary of the rating bonus information:
FIRM Status, Type and Size Rating Bonus
Olea Network, Inc. Non-LBE Not eligible
Score Sheets and Score Tabulations
The Request for Proposal (“RFP”) indicates that only the highest -ranked proposer from the written evaluation and DEI submittal will be awarded a contract. For Olea Network, Inc. (“Olea”), CMD has reviewed the score sheets submitted by the panelists and the final score tabulations from the SFPUC. Based on this information and after the application of the LBE rating bonus, the proposer is ranked as follows:
RANK FIRM
1 Olea Network, Inc.
LBE Subconsultant Participation Requirement
Olea, as the sole proposer, achieved the highest score. Olea met the 5% Micro/Small - LBE subconsulting participation requirement by listing the following Micro/Small-LBE firms:
Firm Service Status, Type and
Size
LBE
Participation
CIW and Sons
Plumbing Company Union Field Services SF LBE-MBE
(Micro) 78.00%
TOTAL: 78.00%
2 Additionally, Olea did not list any non-LBE firms.
Good Faith Efforts Requirements
Olea utilized Approach B (Inclusion of Micro -LBE) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. Olea demonstrated that it met the GFE requirements under Approach B by listing the Micro-LBE firm: CIW and Sons Plumbing Company.
The RFP indicates that a contract will be awarded to the highest ranked proposer. Based on the foregoing, CMD has determined that Olea has complied with the pre -award Chapter 14B requirements. Should you have any additional questions and/or concerns, pleas e feel free to contact me at [email protected].