CITY OF HUNTINGTON BEACH
Sole-Source Justification
(For use on all goods and services acquislitons.)
This Justification document consists of two (2) pages. All information must be provided and all questions must be answered. The "Required Approvals" section must include a date for each signature, as appropriate for the transaction.
Requesting Department Information
Date: June 3, 2025
Requestor Name: Chris Davis Division Manager: John Poehler (Type names. Do not sign.)
Department: Public Works Department Head: Chau Vu
(Type names. Do not sign. Musl be same as signature below.) Department Contact Information
Contact Name: Mark Birchfield Street Address: 19001 Huntington Street Telephone: 714-375-5041
Fax: 714-847-1067 Shipping Address: 19001 Huntington Street Cellular phone: 714-329-2885
Required Contact Information
Contractor/Supplier Name: Hadronex Inc., dba SmartGover ® Systems) Contractor/Supplier Address: 2067 Wineridge Place, Suite E Escondido, CA Contractor/Supplier City/State/Zip: 92029
Original Contract Amount:* Amendment Amount:* (If appllcable) | New Contract Amount:* $100,000 $100,000
(Includes original contract and prevlously (Includes original contract and all amendments, approved amendments) (Current amendment only) Including current amendment) Provide a brief description of the acquisition, including all goods and/or services the contractor will provide:
Contract Type and Term
Contract Type: Contract Term: What account number will be used to purchase? Select One: Goods Begin: 08/01/2025 Business Unit: 51185201 Service
Goods & Services End: 08/01/2029
Object Code: 64620
Required Approvals
Department Headi Finance Manager - Budget Chlef Financial Officer Assistant City Manager 2 Approved ] Denled «'Approved • Denied 1 Approved • Denled Signature Signallre Siğnature
6|5/25 415/25 6 0f25 Signature
Date Date Date 6/11/25
=
Date
(Transactions exceeding $50,000
must be approved by City Council)
1 CITY OF HUNTINGTON BEACH
Sole Source Justification
(For use on all goods and services acqulsitions.)
Complete responses must be provided for all of the following items.
A. THE GOOD/SERVICE REQUESTED IS RESTRICTED TO ONE SUPPLIER FOR THE REASONS STATED BELOW:
1, Why is the acquisition restricted to this goods/services/supplier? (Explain why the acquisitlon cannot be competitively bid.) Hadronex is the only supplier of manhole covers that provide remote data collection on the wastewater system via manhole cover hatch antenna. The smartcovers can be located at strategic points throughou the system and can mitigate potention Sanitary Sewer Overflows (SSOs) by providing warnings before system overflows.
2. Provide the background of events leading to this acquisition.
The City has 31 smartcovers in the system. These have provided warnings of 20 potential SSOs.
3. Describe the uniqueness of the acquisition (why was the good/service/supplier chosen?).
As noted above, this is a unique and specialized tool in the wastewater industry that no other company Is providing. Smartcovers provide warning of potential SSO to allow City staff to proactively correct a problem before It can Impact the public health and safety.
4. What are the consequences of not purchasing the goods/services or contracting with the proposed supplier?
Hadronex is the only supplier of smartcovers and the City already has 31 in the system. Without smartcovers, staff would not be aware of a potential SSO untli after it has occurred. SSOs pose a significant threat to public health and safety, can costs tens of thousands of dollars in staff time and city resources for clean up and state reporting requirements, incur fines from the state and county health departments, and have major economic impacts to neighboring businesses and potential citywide economic impacts if an SSO causes a beach closure.
5. What market research was conducted to substantiate no competition, including evaluation of other items Wastewater section staff keep abreast of industry standards and emerging technologies via networking with peers, Industry conferences and journals. There currently is no simllar technology avallable that performs this service.
B. PRICE ANALYSIS
1. How was the price offered determined to be fair and reasonable? (Explain what the basis was for comparison and include cost analyses as applicable.) 2 As noted, there is no comparable technology. However, the cost of the smartcovers is far less than the potential costs of an SSO.
2. Describe any cost savings realized or costs avolded by acquiring the goods/services from this supplier.
Avoids costly clean up, mitigation and reputation damage by preventing SSOs.
Protects the public and the environment by avoiding SOs.
Reduces employee risk by avoiding sending personnel to sites when not necessary.
Protection collection system asset life by avoiding unnecessary repairs.
Remit completed form to: City of Huntington Beach - Purchasing Division 2000 Main Street, Huntinglon Beach, CA 92648-2702
3 SMARTCOVER Budget Quote
Hadronex, Inc. Due Date Period Covered Quote Number
DBA SmartCover Systems
2110 Enterprise Street 08/31/2025 09/01/2025-08/31/2026 00003551 Escondido, CA 92029 USA
P: 760-291-1980 Romlt Po to arders @smartcovers cam of po is preterre this quote slgned wilth PO number.
F: 760-291-1982
Bill To: Ship To: Date 07/29/2025
Huntington Beach Waste Water Huntington Beach Waste Water Huntington Beach Waste Water Huntington Beach Waste Water 2000 Main Street 19001 Huntington St
Huntington Beach, CA 92648, USA Huntington Beach, CA 92648, USA Product Description Rate Total
1 PW-5C1R Renewal: Power Warranty: PARTS ONLY. 1 year rate. 13 $263.25 $1,579.50 Date Covered: 8/9/2025-8/31/2026
12213 RD 337 #15 19913 PCH/Bluff Top S/O
RD 348 #14 20211 PCH/Bluff Top N/O
RD 359 #10 913 PCH/9th street
RD 359 #11 1315 PCH/13th street
RD 348 #13 2205 PCH/22nd street
12218 RD 349 #12 1717 PCH/17th street
2 ASM-SC1R Renewal: SmartLevel - REQUIRED for system to 37 12 $430.00 $15,910.00 Date covered: 9/1/2025-8/31/2026
RD 443 Adams E/O Beach MH 10756
RD 174 Edgewater/Courtney MH 4355
RD 164 Heil/Algonquin MH 2885
RD 435 Pioneer W/O Wardlow MH 7974
RD 423 Yorktown/Newhaven MH 7341
RD 163 Humboldt/Ensign MH 3006
RD 293 Ellis/Chalk MH 5859
RD 443 Southport/S. New Britain MH 8752
RD 163 Coral Cay/Marinabay MH 3904
RD 446 Olympic/Big Bend MH 8391
RD 151 Mariner/PCH MH 2200
RD 163 Bolero/Baruna MH 3244
RD 173 Harbour Pacific Apts./PCH MH 12846
RD 152 Walrus/Aquarius MH 2353
RD 154 Saybrook S/O Humboldt MH 13290
RD 282 Reynolds Circle MH 5014
RD 164 Morning Star/Edgewater MH 3147
RD 176 Greenleaf/Kenilworth MH 4372
RD 433 Flaxman/Cato MH 8094
RD 167 Greenview/Franmar MH 3413
RD 436 Warburton W/O Havenhurst MH 7703
RD 162 Malden/Peale MH 2875
RD 437 Cutty Sark W/O Ranger MH 7879
RD 453 Sunset Circle MH 9431
RD 319 Ellis E/O Quarterhorse MH 12451
RD 281 Central Park East MH 5206
RD 152 Peters Landing/PCH MH 2743
RD 149 Dawson/Gas Light MH 1664
SMARTCOVER Budget Quote
7893 RD 446 Hot Springs/Running Springs MH
9059
7894 RD 177 Nordina/Almelo MH 4702
7895 RD 441 Farquhar Park/Main MH 8742
12213 RD 337 #15 19913 PCH/Bluff Top S/O
Seapoint
12214 RD 348 #14 20211 PCH/Bluff Top N/0
Goldenwest
12215 RD 359 #10 913 PCH/9th street
12216 RD 359 #11 1315 PCH/13th street
12217 RD 348 #13 2205 PCH/22nd street
12218 RD 349 #12 1717 PCH/17th street
3 PW-5C1R Renewal: Power Warranty: PARTS ONLY. 1 year rate. $243.00 $7,533.00 Date covered: 9/1/2025-8/31/2026
SIN
2495 RD 443 Adams E/O Beach MH 10756
2496 RD 174 Edgewater/Courtney MH 4355
2497 RD 164 Heil/Algonquin MH 2885
2498 RD 435 Pioneer W/O Wardiow MH 7974
2499 RD 423 Yorktown/Newhaven MH 7341
2500 RD 163 Humboldt/Ensign MH 3006
2622 RD 293 Ellis/Chalk MH 5859
2623 RD 443 Southport/S. New Britain MH 8752
2624 RD 163 Coral Cay/Marinabay MH 3904
3042 RD 446 Olympic/Big Bend MH 8391
3043 RD 151 Mariner/PCH MH 2200
3438 RD 163 Bolero/Baruna MH 3244
3439 RD 173 Harbour Pacific Apts./PCH MH 12846
3440 RD 152 Walrus/Aquarius MH 2353
3441 RD 154 Saybrook S/O Humboldt MH 13290
3442 RD 282 Reynolds Circle MH 5014
3891 RD 164 Morning Star/Edgewater MH 3147
3892 RD 176 Greenleaf/Kenilworth MH 4372
3893 RD 433 Fiaxman/Cato MH 8094
3894 RD 167 Greenview/Franmar MH 3413
3895 RD 436 Warburton W/O Havenhurst MH 7703
4547 RD 162 Malden/Peale MH 2875
4548 RD 437 Cutty Sark W/O Ranger MH 7879
4549 RD 453 Sunset Circle MH 9431
4550 RD 319 Ellis E/O Quarterhorse MH 12451
4551 RD 281 Central Park East MH 5206
7891
7892
7893
9059
7894 RD 177 Nordina/Almelo MH 4702
7895 RD 441 Farquhar Park/Main MH 8742
12213 RD 337 #15 19913 PCH/Bluff Top S/O
Seapoint
12214 RD 348 #14 20211 PCH/Bluff Top N/O
Goldenwest
12215 RD 359 #10 913 PCH/9th street
12216 RD 359 #11 1315 PCH/13th street
12217 RD 348 #13 2205 PCH/22nd street
12218 RD 349 #12 1717 PCH/17th street
4 EW-SC1R Renewal: System Warranty- Covers all systems parts $488.00 $18,056.00 except PowerPack- PARTS ONLY. 1 year rate.
Date covered: 9/1/2025-8/31/2026
SMARTCOVER Budget Quote
SIN
2495 RD 443 Adams E/O Beach MH 10756
2496 RD 174 Edgewater/Courtney MH 4355
2497 RD 164 Heil/Algonquin MH 2885
2498 RD 435 Pioneer W/O Wardlow MH 7974
2499 RD 423 Yorktown/Newhaven MH 7341
2500 RD 163 Humboldt/Ensign MH 3006
2622
2623 RD 443 Southport/S. New Britain MH 8752
2624
3042
3043
3438 RD 163 Bolero/Baruna MH 3244
3439 RD 173 Harbour Pacific Apts./PCH MH 12846
3440 RD 152 Walrus/Aquarius MH 2353
3441 RD 154 Saybrook S/O Humboldt MH 13290
3442 RD 282 Reynolds Circle MH 5014
3891 RD 164 Morning Star/Edgewater MH 3147
3892 RD 176 Greenleaf/Kenilworth MH 4372
3893 RD 433 Flaxman/Cato MH 8094
3894 RD 167 Greenview/Franmar MH 3413
3895 RD 436 Warburton W/O Havenhurst MH 7703
4547 RD 162 Malden/Peale MH 2875
4548 RD 437 Cutty Sark W/O Ranger MH 7879
4549 RD 453 Sunset Circle MH 9431
4550 RD 319 Ellis E/O Quarterhorse MH 12451
4551 RD 281 Central Park East MH 5206
7891 RD 152 Peters Landing/PCH MH 2743
7892 RD 149 Dawson/Gas Light MH 1664
7893 RD 446 Hot Springs/Running Springs MH-
9059
7894 RD 177 Nordina/Almelo MH 4702
7895 RD 441 Farquhar Park/Main MH 8742
RD 337 #15 19913 PCH/Bluff Top S/O
RD 348 #14 20211 PCH/Bluff Top N/O
RD 359 #10 913 PCH/9th street
RD 359 #11 1315 PCH/13th street
RD 348 #13 2205 PCH/22nd street
RD 349 #12 1717 PCH/17th street
5 Extended Labor services for onsite visits during coverage period. 37 12 $650.00 $24,050.00 Warranty Level, FLOE, Vault per site
Labor
Date covered: 9/1/2025-8/31/2026
SIN
2495 RD 443 Adams E/O Beach MH 10756
2496 RD 174 Edgewater/Courtney MH 4355
2497 RD 164 Heil/Algonquin MH 2885
2498 RD 435 Pioneer W/O Wardlow MH 7974
2499 RD 423 Yorktown/Newhaven MH 7341
2500 RD 163 Humboldt/Ensign MH 3006
2622 RD 293 Ellis/Chalk MH 5859
2623 RD 443 Southport/S. New Britain MH 8752
2624 RD 163 Coral Cay/Marinabay MH 3904
3042 RD 446 Olympic/Big Bend MH 8391
3043 RD 151 Mariner/PCH MH 2200
3438 RD 163 Bolero/Baruna MH 3244
3439 RD 173 Harbour Pacific Apts./PCH MH 12846
3440 RD 152 Walrus/Aquarius MH 2353
is coog
SMARTCOVER' Budget Quote
3441
3442
3891
3893
3895
4547
4548
4549
7891
7892
7893
9059
7894 RD 177 Nordina/Almelo MH 4702
7895 RD 441 Farquhar Park/Main MH 8742
12213 RD 337 #15 19913 PCH/Bluff Top S/O
12214 RD 348 #14 20211 PCH/Bluff Top N/O
Goldenwest
RD 359 #10 913 PCH/9th street
RD 359 #11 1315 PCH/13th street
RD 348 #13 2205 PCH/22nd street
RD 349 #12 1717 PCH/17th street
SMARTCOVER Budget Quote
Terms and Conditions for this transaction:
Invoices shall be paid within thirty (30) days of the invoice date.
All applicable taxes must be added to prices offered.
Prices are FOB Factory. Shipping costs can be calculated and added to the offer.
All paid warranties and Active Site Management (ASM) services begin on the date of shipment Returns are accepted only with a valid Return Material Authorization (RMA) number. Please contact SmartCover Customer Service for an RMA number.
6. Loss of Communications: Customer acknowledges that SmartCover is not responsible for the loss of wireless communication, internet communications, or any communications used in the operation of this system.
7. from, the use or installation of the SmartCover system.
Traffic Control: SmartCover does not provide traffic control. The customer must provide traffic control for the installation and servicing of all units.
9. This offer is made subject to the terms and conditions that can be found here: https://smartcoversystems.com/wp- content/uploads/2025/04/smartcover-terms-conditions.pdf Signature for Approval Subtotal $67,128.50
P.O. No. Tax $0.00
We appreciate your business!
Total $67,128.50
SMARTCOVER
Real-Time Satellite Remote Infrastructure Monitoring Solutions SmartCover® Renewals
What do you receive with your ongoing services?
Active Site Management (ASM) - Required
Active Site Management, a comprehensive service required for remote operation of the SmartCover system, Includes the following:
• Two-way communication via Iridium satellite network (i.e. NOT cell based).
Technical support via phone (855-291-1980), live chat from 7:00 AM to 5:00 PM PT. • Secure password protected cloud-based software with unlimited data hosting. • Maintenance of all cloud-based software with regular feature updates and upgrades. • Automated notifications for Alarms, Advisories and Alerts via email and/or text message. • System operations and performance monitoring including battery voltage, radio signal strength, and two-way communication.
• Access to analytical tools for evaluating data trends, inflow infiltration, detecting blockages, potential overflows, and areas with odor Issues, among others. • Free IOS and Android mobile app for all users.
Warranty Services - Options
SmartCover offers an evergreen option with comprehensive warranties covering system components, batteries and onsite labor, regardless of the age of your installed systems. This ensures ongoing operation throughout the year without additional orders, POs, taxes or freight costs. Components are replaced free of charge as determined by the Customer Service Team, with SmartCover covering ground freight. The customer is responsible for monitoring their alerts/alarms/advisories and contacting SmartCover for all warranties, SmartCover coordinates all parts replacements for each specific site upon contacting the Customer Service Team, 855-291- 1980 x1, [email protected].
Extended System Parts Warranty (parts only)
The standard Extended Warranty covers the following products:
• SmartCover® E-Box (System Controller)
• Sensor & Cable (e.g. SubSonic®, H2Scents®, etc.)
• Antenna (E-square, E-Dot or Helical)
• Bracket (Complete)
PowerPack Parts Warranty (parts only)
The PowerPack extended warranty covers the replacement of the PowerPack, including ground freight charges. Disposal of used batteries is the customer's responsibility.
Extended Labor Warranty (onsite labor)
This covers onsite labor for routine maintenance for all sites. Scheduling service dates will be coordinated by our customer service group. Please call 855-291-1980 x1 or [email protected]. We are happy to assist you with new installations or relocations with a separate quote. Cost and avallability vary by client location.
Exclusions may apply. Damage from acts of nature, misuse, lack of maintenance, vandalism, or unauthorized repair may not be covered under warranties. Warranties do not apply for relocations and modified installations. All units in your fleet must be covered for all warranty coverage options, labor costs are not Included with System Parts and PowerPack warranty replacement coverage.
2110 Enterprise Street | Escondido, CA | 92029
SmartCoverSystems.com