City Council Agenda Report
July 21, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Albert Mendoza, P.E., Director of Public Services/City Engineer Jacqueline Koontz, P.E., Senior Civil Engineer
Patricia Santana, Assistant Engineer
SUBJECT: AWARD CONTRACT FOR WATER METER READING AND RELATED
SERVICES
Background:
The Norwalk Municipal Water System (NMWS) service area is comprised of portions within the City, and a small, unincorporated portion of Los Angeles County. The NMWS also includes portions of the water system within the City of Artesia referred to as the Artesia Service Area (ASA). NMWS serves an estimated population of 22,280 through approximately 5,362 service connections.
For the Finance Department to prepare water billing, and to track water consumption, meter reads are gathered by the field staff every other month. The scope of work provides for 900 water meter reads and support services within the ASA only. These routes are considered to be within a high-profile area that usually require Public Safety and/or Sheriff’s presence.
In addition to Finance related needs, workload demands continue to increase for City water workers due to current and future projects, and additional operational requirements. Additional field support is necessary to meet the needs of the Finance and Public Services Departments.
Contracted water meter reading services would provide necessary expertise, operational support, and staff augmentation needed to ensure accurate meter reading, timely billing operations, and continued service to the community.
Public Services solicited proposals for water meter reading and related services on April 17, 2026. The main components of the scope of work include:
City Council
Award Contract for Meter Reading & Related Services
July 21, 2026
Page No. 2
1 9
3 1
•Bi-monthly reading of water meters within the ASA
•Re-reading water meters that were missed or inaccurate reads •Data collection and generation of work orders for needed repairs (e.g., broken/obscured registers, meter replacement, broken meter box lids)
•Notification of public safety issues or suspected water leaks •Water service turn-ons and services turn-offs
•Service connection materials survey for regulatory compliance •Fire flow testing and cross connection tests, as requested •Additional services related to water meter reading within the ASA and Norwalk service areas, as needed
Proposals were due May 15, 2026. Two companies submitted proposals, which were reviewed and evaluated by staff.
To evaluate the proposals, staff estimated the annual cost of services based on each bidder’s unit pricing for meter reading and hourly rates for related tasks. Using historical data and average workload assumptions, staff calculated a one-year cost estimate for each bidder based on the primary services included in the scope of work: bi-monthly meter reading, meter re-reads, water services turn-ons and turn-offs, and related work orders, and repairs.
For purposes of comparison, staff assumed an average rate of 400 meter reads per person per day, 16 annual hours for work orders and repairs, and 32 annual hours for water services turn- ons and turn-offs. These assumptions were applied consistently to each proposal to estimate annual costs. The table below summarizes the results.
Bidder Estimated Annual Cost Comparison
Phoenix Water Solutions $59,030
Stephan Doreck Equipment Rentals, Inc. $152,496
Based on the comparison of the proposals and the estimated annual cost comparison shown above, staff determined that Phoenix Water Solutions submitted the lowest responsive and responsible, most qualified, and cost-effective proposal. Phoenix Water Solutions demonstrated the experience, qualifications, and capacity necessary to perform the services described in the scope of work.
Fiscal Impact:
Costs for services will vary annually depending on the number of meter re-reads, water services turn-ons and turn-offs, work orders, and repairs needed. Adequate Water Enterprise Funds in the amount of $105,000 were budgeted for these services in the approved Fiscal Year 2026/27 budget. Budgeting for services may vary annually depending on the number of AMI meter replacements, service requests, and funding available. Funding for these services for future FY’s City Council
Award Contract for Meter Reading & Related Services
July 21, 2026
Page No. 3
1 9
3 1
will be programmed as needed and recommended for approval during the City’s annual budgeting process. Total expenditures will not exceed the amounts approved each FY.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
N/A
Recommended Action:
Staff recommend City Council approve an agreement with Phoenix Water Solutions for water meter reading and related services, for an amount not-to-exceed $105,000 for Fiscal Year 2026/27 from August 1, 2026 through June 30, 2029, with the option to extend for two additional one-year periods; and authorize the City Manager to execute the agreement and annual amendments each fiscal year for an amount not-to-exceed the value approved during the annual budgeting process, on behalf of the City, in a form approved by the City Attorney.
Attachments:
N/A