Pleasanton City Council
June 16, 2026

EXHIBIT A

10 q. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations From Issuers Not Defined in Paragraphs d. and e. of the Authorized and Suitable Investments Section of this Policy:

The securities shall be rated in a rating category of “AA” or its equivalent or better by one NRSRO. No more than 20% of the total portfolio may be invested in these securities. No more than 5% of the portfolio may be invested in any single Asset- Backed or Commercial Mortgage security issuer. The maximum legal final maturity does not exceed five (5) years.

PROHIBITED INVESTMENT VEHICLES AND PRACTICES

 State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.  In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.  Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2031, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.  Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
 Purchasing or selling securities on margin is prohibited.  The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
 The purchase of foreign currency denominated securities is prohibited.  Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.
 Securities with trade settlement periods exceeding 45 days are prohibited.

INVESTMENT POOLS/MUTUAL FUNDS

The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Director of Finance shall develop a questionnaire which will answer the following questions:

 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.

EXHIBIT A

11  A description of who may invest in the program, how often, and what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc. utilized by the pool/fund?  A fee schedule, and when and how is it assessed.
 Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

COLLATERALIZATION

Certificates of Deposit (CDs). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

Collateralization of Bank Deposits. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

Repurchase Agreements. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:

 The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.  Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
 The City shall receive monthly statements of collateral.

SAFEKEEPING AND CUSTODY

All security transactions entered into by the City shall be conducted on a delivery-versus- payment (DVP) basis.

To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City’s portfolio shall be held in safekeeping in the City’s name by a third party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received

EXHIBIT A

12 by the City from the custodian listing all securities held in safekeeping with current market data and other information.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

RISK MANAGEMENT AND DIVERSIFICATION

Mitigating Credit Risk in the Portfolio

Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:

 The diversification requirements included in the “Authorized And Suitable Investments” section of this policy are designed to mitigate credit risk in the portfolio.
 No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.  The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.  If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
a. Any actions taken related to the downgrade will be communicated to the Director of Finance in a timely manner.
b. If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

Mitigating Market Risk in the Portfolio

Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

EXHIBIT A

13  The City will maintain a minimum of six (6) months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
 The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.

TRUST AGREEMENTS

The City shall direct the investment activities of trustees. Such direction shall be in keeping with the terms and conditions of its bond agreements, applicable law and policies set forth in this document.

REVIEW OF THE INVESTMENT PORTFOLIO

The Director of Finance shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.

MAXIMUM MATURITIES

To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds. Where this policy does not specify a maximum remaining maturity at the time of the investment, no investment shall be made in any security that at the time of the investment has a term remaining to maturity in excess of five (5) years from the date of trade settlement.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.

The City may invest proceeds of bond issuances or certificates of participation for a term exceeding five years, provided the City Council authorizes such investments as part of the legal documents.

INTERNAL CONTROLS

The Director of Finance shall establish an annual process of independent review by an external auditor to prevent loss of funds arising from fraud, theft, staff errors and irregularities, misrepresentations by third parties, misuse, or imprudent actions by staff.

This review will provide internal control by assuring compliance with policies and procedures.

EXHIBIT A

14 PERFORMANCE STANDARDS

The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Director of Finance shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Director of Finance’s quarterly report. The Director of Finance shall select an appropriate, readily available index to use as a market benchmark.

REPORTING

Monthly Reports

Monthly transaction reports will be submitted by the Director of Finance, via the City Manager, to the City Council within 60 days of the end of the reporting period in accordance with California Government Code Section 53607.

Quarterly Reports

The Director of Finance will submit a quarterly report to the City Council on the status of the City's investment portfolio no later than 45 days after the end of each month. This report shall include the types of investments, the amount of money invested with various institutions, purchase and maturity dates, and yield on investments. The Director of Finance will certify that the investment portfolio is in compliance with the investment policy and that it will meet cash flow needs for the next six (6) months.

INVESTMENT POLICY ADOPTION

The City's investment policy will be submitted annually to the City Council for adoption by the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.

Any recommended modifications or amendments shall be presented by staff to the Governing Body for its consideration and adoption.

EXHIBIT A

15 Glossary of Investment Terms

AGENCIES. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass- through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

ASKED. The price at which a seller offers to sell a security.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BID. The price at which a buyer offers to buy a security.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment

EXHIBIT A

16 risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COST YIELD. The annual income from an investment divided by the purchase cost.

Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

DEBENTURE. A bond secured only by the general credit of the issuer.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other

EXHIBIT A

17 securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.

FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MARKING TO MARKET. The process of posting current market values for securities in a portfolio.

MATURITY. The final date upon which the principal of a security becomes due and payable.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100 basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

EXHIBIT A

18 MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).

A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).

PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities.

PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

EXHIBIT A

19 REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Secured Overnight Financing Rate (SOFR). Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

Item #8

CITY COUNCIL AGENDA REPORT

June 16, 2026
Finance

TITLE: ADOPT A RESOLUTION APPROVING THE FISCAL YEAR 2026/27

APPROPRIATIONS LIMIT

SUMMARY
Pursuant to Article XIIIB of the State Constitution, the City is required to annually adopt its appropriations limit (Limit), also known as the spending limit, for the coming fiscal year (FY 2026/27) for those appropriations that are funded primarily from tax revenues. The Limit is adjusted each year pursuant to Proposition 111 based on both an inflation factor and population changes. For FY 2026/27, the Limit was calculated based on the percentage change in the county’s population and the percentage change in Pleasanton’s local assessment roll due to non-residential construction provided by the Alameda County Assessor’s Office. The Limit for FY 2026/27 is $946,881,705. The City’s FY 2026/27 budget appropriations subject to the Limit total $131,570,300, such that the City will not exceed its Limit for FY 2026/27.

RECOMMENDATION
Adopt a resolution approving the Fiscal Year 2026/27 Appropriations Limit.

BACKGROUND
In 1979, the voters passed Proposition 4 (Prop 4) with the intent of limiting government spending. Prop 4 accomplishes this by limiting an agency's ability to keep and spend its tax revenue based on its base year FY 1978/79 spending, adjusted annually by an inflation factor and the agency's increase in population. Due to some difficulties with the restrictions of Prop 4, revisions to the adjustment formulas were made through Proposition 111, which was adopted by voters in June 1990. Proposition 111 also established FY 1986/87 as the new base year.

DISCUSSION
The factors used to compute the Prop 4 limits are: (1) either the percentage change in California per capita personal income or the percentage change in the local assessment roll from the preceding year due to the addition of local non-residential construction in the city, and (2) either the city's own population growth or the population growth of the entire county. The State Department of Finance annually provides the California per capita personal income change percentage for purposes of calculating the Prop 4 Spending Limit. For FY 2026/27, California's per capita personal income increased by 4.95 percent, which is less than the 5.37 percent increase in the City’s local assessment roll due to non-residential construction provided by the Alameda County Assessor’s Office. The City’s population decrease was 0.67 percent while Alameda County's population decrease was 0.10 percent; therefore, the calculation for the FY 2026/27 Limit is based on the percentage change in the City’s assessment roll due to non-residential construction provided by the Alameda County Assessor’s Office and the county’s population decrease. Attachment 2 details the calculation of the Limit for FY 2026/27 of $946,881,705.

EQUITY AND SUSTAINABILITY
Not applicable, as this matter is a routine administrative item of City business.

OUTREACH
No outreach was conducted as this item is a routine administrative matter of City business.

STRATEGIC PLAN ALIGNMENT
This matter is aligned with the ONE Pleasanton strategic plan goal of Funding Our Future supporting the City’s financial health and sound fiscal policies.

FISCAL IMPACT
There is no direct fiscal impact for approving the Appropriations Limit.

Prepared by: Submitted by: Approved by:

Chris Yi, Financial Services
Manager
Susan Hsieh, Director of Finance

Acting City Manager

Attachments:

1. Resolution

2. Proposition 4 Appropriations Limit 2026-27

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON ADOPTING THE FISCAL YEAR 2026/27 APPROPRIATIONS LIMIT

WHEREAS, Article XIIIB of the State of California Constitution (Proposition 4 on the November 6, 1979 ballot) requires that each year the governing body of each local agency establish its appropriations limit for the following year; and

WHEREAS, Proposition 111, passed by the voters in June 1990, expands the choices for making annual adjustments to the appropriations limit based on various growth factors; and

WHEREAS, the City Council has determined that the growth factors of (1) the percentage change in the county’s population, and (2) the percentage change in Pleasanton’s local assessment roll due to non-residential construction provided by the Alameda County Assessor’s Office will be used to establish the FY 2026/27 appropriation limit; and

WHEREAS, selecting these growth factors will result in a new limit for FY 2026/27 of $946,881,705.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1: The Proposition 111 growth factors selected for fiscal year 2026/27 for determining the City’s Proposition 4 appropriations limit are (1) the percentage change in the county’s population and (2) the percentage change in Pleasanton’s local assessment roll due to non-residential construction provided by the Alameda County Assessor’s Office.

SECTION 2: The appropriation limit for fiscal year 2026/27 is $946,881,705.

SECTION 3: This resolution shall become effective immediately upon its passage and adoption.

SECTION 4: The City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 16, 2026.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 16th of June 2026 by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk

APPROVED AS TO FORM:

___________________________
Daniel G. Sodergren, City Attorney

Attachment 2
2025-26 2026-27
GROWTH FACTORS A & B: (Use the greater of each)
(1) (A) CITY POPULATION GROWTH FACTOR (%) -0.38% -0.67% OR
COUNTY POPULATION GROWTH FACTOR (%) 0.31% -0.10%
(1) (B) CHANGE IN NON-RESIDENTIAL
CONSTRUCTION AV ($) $28,656,000 $50,210,300
ANNUAL INCREASE IN ALL CITY AV ($) $1,230,174,066 $934,851,834 % CHANGE DUE TO NON-RESIDENTIAL
CONSTRUCTION 2.33% 5.37%
OR

PER CAPITA PERSONAL INCOME
% CHANGE OVER PRIOR YEAR 6.44% 4.95%
NEW FACTOR TO APPLY TO PROP 4 LIMIT
(County pop. factor X per capita personal income % change) 1.068 (County pop. factor X % change due to non-residential constr) 1.053

PRIOR GANN LIMIT
CURRENT YEAR GANN LIMIT $899,517,044 $946,881,705
(1) Use the greater of the two percentage changes from each growth factor category FY 2026/27 APPROPRIATIONS LIMIT

Item #9

CITY COUNCIL AGENDA REPORT

June 16, 2026
Finance

TITLE: APPROVE FISCAL YEAR 2026/27 RECURRING PURCHASE ORDER

AGREEMENTS

SUMMARY
The City's Purchasing Policy establishes the types and values of goods and services requiring City Council approval. The Recurring Purchase Order Agreements (RPOAs) included in this report require City Council approval due to their cumulative values in a fiscal year exceeding $200,000. If approved, staff will be authorized to issue RPOAs to the vendors included in the list of recommended recurring purchase orders for fiscal year (FY) 2026/27 provided as Attachment 1.

RECOMMENDATION
Authorize the issuance of RPOAs to vendors and amounts up to those listed in Attachment 1 for FY 2026/27.

BACKGROUND
The City's Purchasing Policy establishes requirements for vendor selection based on the type and value of the goods or services to be purchased. For purchases of goods and ancillary services less than $200,000, the City Manager is authorized to approve selection of the qualified low bidder resulting from a request for bids process; if the purchase is in excess of $200,000 City Council approval is required.

DISCUSSION
As part of the City's annual purchasing process, individual vendors are provided with recurring purchase order agreements (RPOAs) authorizing departments to make numerous as-needed purchases on a regular basis throughout the year. As an example, a firm operating in accordance with an RPOA for office supplies may have many individual sales with the City, all of which are valued at less than a few hundred dollars; however, the overall annual purchase may be equal to or greater than $200,000.

In reviewing this year's listing of RPOAs, staff identified a number of vendors that, based on previous activity, will provide products that, collectively, may exceed $200,000. As a result, staff determined that it is appropriate to forward these to the City Council for approval prior to issuing an RPOA for FY 2026/27. As indicated in Attachment 1, some RPOAs are in the middle of a multi-year agreement; however, the City Council is asked to approve only FY 2026/27 RPOA requests.

Competitive Bidding
All vendors listed in Attachment 1 have either been selected through the City's competitive bidding process or declared sole-source vendors. If a vendor is designated as a sole-source vendor, an explanation is provided. Fiscal Year 2026/27 competitive bids for RPOAs for

$200,000 or more have been completed. If additional RPOAs for $200,000 or more are identified during FY 2026/27, the requesting department will individually request City Council approval. Staff recommends approval of the RPOAs listed in Attachment 1.

EQUITY AND SUSTAINABILITY
Not applicable, as this item is a routine administrative matter of City business.

OUTREACH
No outreach was conducted, as this item is a routine administrative matter of City business.

STRATEGIC PLAN ALIGNMENT
Not applicable, as this item is a routine administrative matter.

FISCAL IMPACT
No significant fiscal impact results from this action, as these purchase orders are for budgeted items included in the FY 2026/27 Operating Budget. Most of the RPOAs included in this report are for purchasing and procurement of services or supplies on an as-needed basis. It is anticipated for many of these RPOAs, actual spending will be less than the not-to-exceed amounts. As such, staff may encumber amounts less than the maximum amount indicated in the RPOAs depending on anticipated requirements for goods and services from each vendor.

Prepared by: Submitted by: Approved by:

Raquel Zegarra, Junior
Accountant
Susan Hsieh, Director of Finance

Acting City Manager

Attachments:

1. List of Recurring Purchase Orders

ATTACHMENT 1
RECURRING (OPEN) PURCHASE ORDER RECOMMENDATIONS FY 2026/27 No. Vendor Name Department Est. Annual
Value
Product/Service Explanation
1 Tri-Valley Community TV City Manager $440,160 TV Broadcasting and Production Service to the Public
Sole source for FY2026/27. TV30 annual subsidy and
Public, Education, and Governmental access channels
(PEG) contribution, and the Facility Relocation: Phase 1 project.
2 Valley Oil Company Public Works $750,000Unleaded and Diesel Fuel Sole source for FY2026/27. Prime supplier for more than 25 years with established emergency agreement that
allows a reliable fuel supply in the event of an emergency.

Due to the familiarity of city infrastructure, Valley Oil Company has outstanding safety records and specifically equipped rigs that allow servicing city's outlying above- ground fuel tanks.
3 Enterprise FM Trust Public Works $360,000Leased City Fleet Vehicles Sole source for FY2026/27. City equipment is currently outfitted with enterprise vehicles. Conversion out of
enterprise fleet would be a financial burden with great time and resources needed.
4 Tyler Technologies, Inc. Finance $222,340Annual Software Maintenance for ERP System
Sole source for FY2026/27. Tyler Technologies, Inc.
provides the proprietary software program and existing
maintenance and support agreement.
5 Comcast Information
Technology
$240,000Internet Services, Wide-Area-
Network Circuits, Broadband and
Cable TV
Sole source for FY2026/27. Comcast, under CalNet
contract, is the local provider of internet, broadband and cable TV.
6 Softchoice Corporation Information
Technology
$275,000Software, Maintenance and As-
Needed Computer Equipment
One of seven (Dell, Softchoice, SHI, CDW-G, GOVCONN,
Southern Computer Warehouse and Insight) vendors that
specialized in the reselling of printers, software, network equipment, peripherals, and miscellaneous hardware
components to the government sector.

Item #10

CITY COUNCIL AGENDA REPORT

June 16, 2026
Human Resources

TITLE: AUTHORIZE THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH INNOVATIVE CLAIM SOLUTIONS, INC., TO

PROVIDE THIRD-PARTY ADMINISTRATION OF THE CITY'S WORKERS' COMPENSATION PROGRAM, FOR A THREE-YEAR TERM THROUGH JUNE 30, 2029, WITH THE OPTION TO RENEW FOR TWO SUCCESSIVE ONE-YEAR TERMS, FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $1,399,579 OVER FIVE YEARS

SUMMARY
The City of Pleasanton currently uses a third-party administrator, Innovative Claim Solutions (ICS), to help manage and process claims and meet reporting and compliance requirements for the City's workers' compensation program. The City entered into a three-year agreement with ICS, which was subsequently extended via amendments; the current amendment is set to expire June 30, 2026.

Per the City's Purchasing Policy, when a professional services agreement reaches five years, the City must issue a request for proposals (RFP). The City's agreement with ICS has reached this threshold. Therefore, the City issued an RFP for third-party administrators to provide services for the City's workers' compensation program beginning July 1, 2026. Six vendors submitted proposals. The City's review committee evaluated all responses and selected ICS's proposal.

RECOMMENDATION
Authorize the City Manager to enter into a professional services agreement with Innovative Claim Solutions, Inc., to provide third-party administration of the City's workers' compensation program, for a three-year term through June 30, 2029, with the option to renew for two successive one-year terms, for a total not-to-exceed amount of $1,399,579 over five years.

Renewals will be mutually agreed upon by both parties.

BACKGROUND
The administration of a workers' compensation program is complex due to numerous legal mandates and other requirements for processing claims. Errors can result in penalties to employers, increased financial liability, and strained employer-employee relations. As a result, smaller and midsize cities typically rely on qualified third-party administrators with experienced and certified staff to manage workers' compensation claims and compliance requirements.

DISCUSSION
Per the City's Purchasing Policy, when a professional services agreement reaches five years, the City must issue a request for proposals (RFP). The City issued an RFP for a third-party administrator to manage the City's workers' compensation program, effective July 1, 2026.

Six vendors submitted proposals. The City's review committee evaluated all responses and selected four vendors – LWP Claims Solutions, AdminSure, Athens Administrators, and ICS – to provide a 20-minute presentation and participate in a 25-minute question-and-answer session with the committee.

The committee evaluated proposals, presentations, and interview responses based on the following criteria: demonstrated experience in workers' compensation and risk management; relationships with medical providers; innovative approaches to reducing claims; staffing levels and expertise; familiarity with City Council goals and priorities; prior experience with the City and/or similar agencies; quality and thoroughness of the proposal and interview; references; and cost.

Based on the proposals, presentations, and interviews, the review committee determined that ICS best met the selection criteria and selected ICS for the contract.

Staff recommends approval of a three-year professional services agreement with ICS, with the option to renew for two successive one-year terms. Renewals will be mutually agreed upon by both parties.

EQUITY AND SUSTAINABILITY
This is a routine matter of City business.

OUTREACH
No outreach was conducted, as this item is a routine matter of City business.

STRATEGIC PLAN ALIGNMENT
Approval of this agreement supports the ONE Pleasanton strategic goal of Optimizing Our Organization, reflecting the City’s commitment to effective risk management and efficient administration of employee benefits.

FISCAL IMPACT
The total cost of the professional services agreement with ICS is $818,100 over a three-year term, with $270,000 in the first year. The option to renew for two successive one-year terms is $286,443 in year four and $295,036 in year five. There are sufficient funds in the Adopted Fiscal Year 2026/27 Mid-Term Budget to cover the costs of the first year of the professional services agreement. Funding necessary for the subsequent years of this agreement will be included in each year’s budget presented to the City Council for adoption.

Prepared by: Submitted by: Approved by:

Sandra Williams,
Management Analyst
Xaviera Scoggins, Director of Human
Resources & Labor Relations

Acting City Manager

Attachments:

1. Professional Services Agreement between the City and ICS

ATTACHMENT 1

PROFESSIONAL SERVICES AGREEMENT

THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into this 1st day of July 2026, between the CITY OF PLEASANTON, a municipal corporation (“City”), and Innovative Claims Solutions, Inc., a third-party administrator, whose address is PO Box 5128, San Ramon, CA 94583, and telephone number is 888-427-2424 (“Consultant”).

RECITALS

A. Consultant is qualified to and experienced in providing claims management and administration of workers’ compensation self-insurance plans and has offered its services for the purposes specified in this Agreement.

B. City finds it necessary and advisable to use the services of the Consultant for the purposes provided in this Agreement.

NOW THEREFORE, in consideration of the mutual covenants and conditions in this Agreement, City and Consultant agree as follows:

1. Consultant’s Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in Exhibit A. Consultant shall provide said services at that time, place, and in the manner specified in Exhibit A.

2. City Assistance, Facilities, Equipment, and Clerical Support. Except as set forth in Exhibit A, Consultant shall, at its sole cost and expense, furnish all facilities and equipment that may be required for furnishing services pursuant to this Agreement. City shall furnish to Consultant only the facilities and equipment listed in Exhibit A according to the terms and conditions set forth in Exhibit A.

3. Term. This contract shall commence on the date written above and shall expire on June 30, 2029. The City has the option to extend the contract for two successive one-year terms upon the City providing sixty (60) days' advance notice to the Consultant before the commencement of each one-year term. The City may choose to extend the contract only for a one-year term (year four) and not for the second one-year term (year five), to extend the contract for both years (years four and five), or not to extend the contract at all (years one through three only).

4. Compensation. City shall pay Consultant for services rendered pursuant to this Agreement as described more particularly in Exhibit A. The payments shall be made on a monthly basis upon receipt and approval of Consultant’s invoice. Total compensation for services and reimbursement for costs shall not exceed $270,000 in year one, $270,000 in year two, and $278,100 in year three of this contract. In the event the contract is extended, the City shall pay Consultant $286,443 in year four and $295,036 in year five.

a. Invoices submitted to City must contain a brief description of work performed, time used and City reference number. Payment shall be made within thirty (30) days of receipt of Consultant’s invoice and approved by City.

b. Upon completion of work and acceptance by City, Consultant shall have sixty (60) days in which to submit final invoicing for payment. An extension may be granted by City upon receiving a written request thirty (30) days in advance of said time limitation. The City shall have no obligation or liability to pay any invoice for work performed which the Consultant fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.

5. Sufficiency of Consultant’s Work. All work product and all other documents prepared by Consultant shall be adequate and sufficient to meet the purposes for which they are prepared.

6. Ownership of Work. All work product and all other documents completed or partially completed by Consultant in the performance of this Agreement shall become the property of the City. All materials shall be delivered to the City upon completion or termination of the work under this Agreement. If any materials are lost, damaged or destroyed before final delivery to the City, the Consultant shall replace them at its own expense. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Consultant agrees to execute any additional documents that may be necessary to evidence such assignment. Consultant shall keep materials confidential. Materials shall not be used for purposes other than performance of services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent.

7. Changes. City may request changes in the scope of services to be provided by Consultant.

Any changes and related fees shall be mutually agreed upon between the parties and subject to a written amendment to this Agreement.

8. Consultant’s Status. In performing the obligations set forth in this Agreement, Consultant shall have the status of an independent contractor and Consultant shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Consultant are its agents and employees and are not agents or employees of City.

9. Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Consultant. The Agreement shall then be deemed terminated, and no further work shall be performed by Consultant. If the Agreement is so terminated, the Consultant shall be paid for that percentage of the work actually completed at the time the notice of termination is received.

10. Non-Assignability. The Consultant shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. Consultant shall be solely responsible for reimbursing subcontractors.

11. Indemnity and Hold Harmless. Consultant shall defend, indemnify, and hold harmless, the City and its officers, agents and employees from and against all claims, losses, damage, injury, and liability for damages arising from, or alleged to have arisen from, errors, omissions, negligent or wrongful acts of the Consultant in the performance of its services under this

Agreement, regardless of whether the City has reviewed or approved the work or services which has given rise to the claim, loss, damage, injury or liability for damages. This indemnification shall extend for a reasonable period of time after completion of the project as well as during the period of actual performance of services under this Agreement. The City’s acceptance of the insurance certificates required under this Agreement does not relieve the Consultant from its obligation under this paragraph.

12. Insurance. During the term of this Agreement, Consultant shall maintain in full force and effect, at its own cost and expense, insurance coverages with insurers with an A.M. Best’s rating of no less than A:VII. Contractor shall have the obligation to furnish City, as additional insured, the minimum coverages identified below, or such greater or broader coverage for City, if available in the Contractor’s policies:

a. Commercial General Liability Insurance. Commercial general liability insurance with coverage at least as broad as Insurance Services Office (ISO) form CG 00 01, with limits of at least $2,000,000 per occurrence, $4,000,000 general aggregate, and $2,000,000 products and completed operations aggregate for bodily injury and property damage. The policy shall include a per project or per location general aggregate endorsement. If a per project/location endorsement is not available, the limit for the general aggregate shall be doubled. The policy shall provide that the City, its officials, officers, employees, agents, and volunteers are named as additional insureds using ISO form CG 20 10 (or equivalent) for ongoing operations, and, for construction or service agreements, ISO form CG 20 37 (or equivalent) for completed operations and satisfactory to the City Attorney. The policy shall allow and be endorsed primary insurance for work performed by Consultant and its subconsultants, and that no other insurance or self-insurance effected by City or other additional insured will be contribute to or be called on to cover a loss.

b. Automobile Liability Insurance. Automobile liability insurance coverage for owned, non- owned, and hired autos using ISO Business Automobile Coverage form CA 00 01 (or equivalent) with limits not less than $2,000,000 each accident. If the Consultant’s business/company does not own any automobiles, coverage for hired and non-owned autos shall be provided. The policy shall provide and be endorsed that the City, its officials, officers, employees, agents, and volunteers are included or named as additional insureds. The policy shall provide and be endorsed to include a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers.

c. Workers’ Compensation and Employer’s Liability Insurance. Statutory Workers’ Compensation and Employer’s Liability Insurance shall be provided for all persons employed directly or indirectly by Contractor. The Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than $1,000,000 each accident, $1,000,000 by disease-policy limit, and $1,000,000 by disease-each employee. The coverage shall provide and be endorsed to include a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers. The requirement to maintain Statutory Worker’s Compensation and Employer’s Liability Insurance may be waived by the City upon written verification that Contractor does not have any employees.

d. Professional Liability Insurance. Professional liability insurance that insures against professional errors and omissions that may be made in performing professional services

in the amount of $2,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of the start of work, and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the work.

e. Certificate of Insurance and Endorsements. Consultant shall file a certificate of insurance and all required endorsements with the City prior to the City’s execution of this Agreement, and prior to engaging in any operation or activity set forth in this Agreement.

The Certificate of Insurance shall provide in writing that the insurance afforded by this Certificate shall not be suspended, voided, canceled, reduced in coverage or in limits without providing notice to the City in accordance with California Insurance Code section 677.2 which requires the notice of cancellation to: 1) include the effective date of the cancellation; 2) include the reasons for the cancellation; and 3) be given at least 30 days prior to the effective date of the cancellation, except that in the case of cancellation for nonpayment of premiums or for fraud, the notice shall be given no less than 10 days prior to the effective date of the cancellation. Notice shall be sent by certified mail, return receipt requested. In addition, the insured shall provide thirty (30) days prior written notice to the City of any cancellation, suspension, reduction of coverage or in limits, or voiding of the insurance coverage required by this agreement. The City reserves the right to require complete certified copies of policies.

f. Defense Costs. Coverage shall be provided on a “pay on behalf of” basis, with defense costs payable in addition to policy limits. There shall be no cross liability exclusions.

These provisions do not apply to Professional Liability.

g. Adequacy of Coverage. City reserves the right to modify these insurance requirements/coverages based on the nature of the risk, prior experience, insurer, or other special circumstances.

h. Subcontractors. Consultant shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated in this Agreement, including but not limited naming additional insureds.

13. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed as follows:

To Consultant: Innovative Claims Solutions, Inc. To City: City Manager Attn: Jason Dawson, CEO City of Pleasanton
P.O. Box 5128 P.O. Box 520
San Ramon, CA 94583 Pleasanton, CA 94566

14. Conformance to Applicable Laws. Consultant shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Consultant shall not discriminate in the employment of persons or in the provision of services under this Agreement on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

15. Licenses, Certifications and Permits. Prior to the City’s execution of this Agreement and prior to the Consultant’s engaging in any operation or activity set forth in this Agreement, Consultant shall obtain a City of Pleasanton business license, which must be kept in effect during the term of this Agreement. Consultant covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Agreement.

16. Records and Audits. Consultant shall maintain all records regarding this Agreement and the services performed for a period of three years from the date that final payment is made. At any time during normal business hours, the records shall be made available to the City to inspect and audit.

17. Confidentiality. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.

18. Conflicts of Interest. Consultant covenants that other than this Agreement, Consultant has no financial interest with any official, employee or other representative of the City. Consultant and its principals do not have any financial interest in real property, sources of income or investment that would be affected in any manner of degree by the performance of Consultant’s services under this Agreement. If such an interest arises, Consultant will immediately notify the City.

19. Waiver. In the event either City or Consultant at any time waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation.

20. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue in the applicable court or forum for Alameda County.

21. No Personal Liability. No official or employee of City shall be personally liable to Consultant in the event of any default or breach by the City or for any amount due Consultant.

22. Exhibits. All exhibits referred to herein are attached hereto and are by this reference incorporated herein.

23. Counterparts and Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with U.S. federal E-Sign Act of 2000 (15 U.S. Code §7001 et seq.), California Uniform Electronic Transactions Act (Cal. Civil Code §1633.1 et seq.), or other applicable law) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

24. Scope of Agreement. This writing constitutes the entire Agreement between the parties.

Any modification to the Agreement shall be in writing and signed by both parties.

THIS AGREEMENT executed the date and year first above written.

CITY OF PLEASANTON CONSULTANT

__________________________ By: __________________________ Interim City Manager Signature

ATTEST: __________________________
Print name
__________________________
Jocelyn Kwong, City Clerk Its: __________________________ Title

Approved as to form:

_____________________________ By: __________________________ Daniel G. Sodergren, City Attorney Signature

__________________________
Print name

Its: __________________________
Title

[If Consultant is a corporation, signatures must comply with California Corporations Code §313]

Rev. 11/23

EXHIBIT A

Scope of Consultant’s Services

A. Claims Administration
ICS has conducted a thorough review of the Claims Administration criteria and is fully equipped to continue delivering services that meet or exceed all established standards and expectations. A more detailed description of the ICS Claims Administration policy and procedural manual can be provided upon request but was omitted due to space restrictions. Please see Appendix 2 for additional insight regarding our claims administration best practices.

B. Medicare Reporting Medicare Agent Services
ICS has conducted a thorough review of the criteria regarding Medicare Reporting Medicare Agent Services and is fully equipped to continue delivering services that meet or exceed all established standards and expectations.

According to CMS guidelines, we regularly submit a Query file containing all claims from 2010 to CMS on a quarterly basis. CMS then processes this file and returns it to ICS, identifying Medicare recipients. This information is subsequently uploaded to our claims management software. Additionally, we maintain a detailed log documenting each instance of claims reported and the identification of Medicare recipients for thorough record-keeping.

Next, we access each newly identified Medicare recipient, inputting the required data to finalize the claim report for CMS. Additionally, we conduct reviews of other claims to assess whether any updates or changes, such as TPOC (Total Payment Obligation to Claimant) or legal representation, need to be reported. Quarterly, we transmit both the new and updated claim files containing all pertinent information to CMS.

Medicare Recipient claims are flagged in the claims management system so the examiners will make sure their settlements incorporate the protection of Medicare’s interests.

C. Medical Management
ICS has conducted a thorough review of the Medical Management criteria and is fully equipped to continue delivering services that meet or exceed all established standards and expectations.

Innovative Claim Solutions oversees a medical management program that encompasses Nurse Triage, Bill Review, Utilization Review, PBM, MPN and Preferred Provider Organization access, and other Ancillary Care Management services.

ICS examiners utilize Nurse Triage services to allow for immediate assessment of injuries as soon as they occur. This early intervention ensures that appropriate medical care is promptly initiated, potentially preventing minor injuries from escalating into more severe conditions and causing a workers’ compensation claim. Nurses can efficiently triage injuries over the phone or videoconference, determining the appropriate level of care needed for each case. This helps

streamline the claims process by directing injured workers to the most suitable medical providers, reducing unnecessary emergency room visits or delays in treatment.

Bill review for reduction to fee schedule and appropriateness of charges is completed by the outside bill review company. However, examiners are responsible for reviewing and approving each bill for payment ensuring all prescriptions, or treatment provided, adheres to what has been authorized. All treatment requests are responded to timely and documented in the claims management system.

Referrals are made to the selected Utilization Review company when treatment appears to be excessive, outside of the normal treatment for certain types of injuries or if they meet our UR referral trigger criteria. Additionally, examiners are responsible for reviewing all medical reports and documenting a brief recap of all reports in the claim management system.

Medical verification of disability will be obtained in a timely manner and maintained in the claim file to document the need for continuing indemnity benefits. Medical treatment provided will be reviewed for necessity, reasonableness, and relationship to the industrial injury.

Catastrophic injury claims and extensive lost-time claims will be reviewed by a qualified medical management provider. Claims referred for outside medical management services will reflect the intent and scope of services requested. Client approval will be obtained prior to a referral to any nurse case manager. Pre-existing medical conditions and medical records will be explored/obtained on all lost-time claims.

ICS has partnered with a Pharmacy Benefit Manager (PBM) to offer Innovative Solutions for pharmaceutical needs for injured workers. Through this partnership, the injured worker receives a pharmacy card via text, print or online access, which they can present at any pharmacy. The pharmacy utilizes the card to validate authorization for prescribed medications, dispenses the medication to the injured worker, and submits billing to the PBM provider. Medications will be billed according to the Official Medical Fee Schedule (OMFS), with the added benefit of a $20 discount per prescription filled through mail order. The PBM diligently monitors for duplicate therapy, early refill, and ensures strict control over access to medications exclusively for the industrial injury.

Our examiners, claimants, and clients have access to a Medical Provider Network (MPN) for selecting healthcare providers. This network streamlines access to care for injured workers. MPN providers offer tailored medical treatment, ensuring timely care without unnecessary delays. Our examiners can choose from a diverse range of medical specialists, even in areas where finding such expertise might be challenging. By promptly connecting injured individuals with the right providers, we aim to prevent additional costs later in the claim.

Medical-legal costs will be reviewed for appropriateness and necessity. Bills which do not qualify as valid medical-legal expenses will be objected to on a timely basis.

Our Ancillary Care management partners provide our clients and their injured workers with cost savings and access to healthcare providers who possess a deep understanding of the workers'

compensation process. These providers are accustomed to collaborating closely with our organization, ensuring seamless communication and coordination of care throughout the claims process. By leveraging our partnerships with these specialized providers, we can effectively address the unique needs of injured workers while optimizing cost-efficiency and quality of care.

By scheduling:
• Physical Medicine Therapies
• Psychological Services
• Durable Medical Equipment
• Home Health Care
• Transportation
• Interpretation
D. Legal Administration
ICS has conducted a thorough review of the Legal Administration criteria and is fully equipped to continue delivering services that meet or exceed all established standards and expectations.

The purpose of the ICS litigation management program is to reduce the client’s overall cost of risk, taking into consideration both loss and cost factors in litigated claims.

ICS accomplishes this by taking a proactive approach to litigation. We encourage and foster early resolution. We closely monitor the activities of defense counsel and hearing representatives to assure early disposition. It is contrary to ICS’ operating procedures for the examiner to relegate claims handling tasks to a defense attorney or hearing representative. Rather, the claims examiner will continue to actively manage all such litigated claims.

The mere fact that a claim goes into litigation is an insufficient cause to trigger an outside referral. ICS’ preference in many cases is that the claims examiners continue with the day-to-day handling of the claim. The second choice is referral to a qualified defense attorney with the client’s concurrence.

When a defense attorney is optioned, ICS holds defense counsel to strict standards of reporting frequency, report content, cost containment, billing protocol and overall handling. Attorneys will not be authorized to perform or be reimbursed for tasks that are the responsibility of ICS.

The ICS Claims Examiner is responsible for the following:
• Refer file to specific attorney
• Direct and approve plan of action
• Subpoena medical records
• Serve original medical reports on all parties prior to DOR • Set defense med evaluation and send mileage and TTD
• Obtain settlement authority
• Review file with attorney prior to conference or trial • Respond to attorney phone calls within one working day

The Defense Attorney is responsible for the following:
• Assign file to specific attorney requested
• Consult with and follow direction of examiner
• Unless otherwise directed, complete an initial file review within 15 days of receipt of file • Serve medical reports on WCAB when necessary
• Not refer to another attorney for deposition or appearance without prior examiner approval
• Prepare purpose letter for medical evaluation
• Evaluate and request settlement authority from examiner • Respond to examiner phone calls within one working day • Meet with examiner and/or employer at request
• Within 5 days of receipt of DOR provide written analysis of case strategy and settlement • authority requested
• Fax notice of hearing/conference/trial to examiner within one day of receipt • Initiate call to examiner to discuss strategy at least two weeks prior to • hearing/conference/trial including proposed witnesses and settlement recommendations • Report by fax, email or phone call to examiner within one working day, results of conference,
• Hearing or trial
• Fax award notice to examiner within one day of receipt • Use ICS directed copy service
• Manage overall cost of litigation
By mutual consent the defense attorney may subpoena medical records and set evaluations with Unit Manager approval.

E. Employee Services
ICS has conducted a thorough review of the Employee Services criteria and is fully equipped to continue delivering services that meet or exceed all established standards and expectations. This will include the development of materials which provide information and guidance to employees, holding meetings to review and update Workers’ Compensation benefits, working with injured employees to resolve problems arising from injury or illness claims, and recommending programs in areas such as pre-employment physicals, work restrictions, return to work programs, and disability retirement.

F. Statistical
ICS has conducted a thorough review of the Statistical (reporting) criteria and is fully equipped to continue delivering services that meet or exceed all established standards and expectations.

ICS will provide each client with a customized set of claim reports based on client need. These reports can be done daily, weekly, monthly, quarterly or whenever the client requests. The

reports can be downloaded to Word, Excel, Adobe or other formats and e-mailed to the client.

Reports will be delivered to the client within 5 working days of the end of each month.

In addition to customized reports, clients are able to access a variety of real time claims data from their KPI Dashboard including key insights such as injury causes, report lag analysis, seasonality trends, claim counts, outstanding reserves, total cost incurred, litigation status, and organizational analysis.

G. Banking
ICS has conducted a thorough review of the Banking criteria and is fully equipped to continue delivering services that meet or exceed all established standards and expectations.

H. Transition
One of the most challenging aspects of a program’s implementation is the transition of the existing open inventory. ICS is sensitive to the fact that a change in administrators will impact each department and injured worker within your organization. Fortunately, if ICS is chosen to continue the administration of your program, it will eliminate the need for any of the usual challenges associated with that process.

Compensation

Flat Annual Administrative Fee
Program Year Contract Period Annual Administrative Fee
Year 1: July 1, 2026 – June 30, 2027: $270,000
Year 2: July 1, 2027 – June 30, 2028: $270,000
Year 3: July 1, 2028 – June 30, 2029: $278,100
Year 4: July 1, 2029 – June 30, 2030: $286,443
Year 5: July 1, 2030 – June 30, 2031: $295,036

Item #11

CITY COUNCIL AGENDA REPORT

June 16, 2026
Library and Recreation

TITLE: AUTHORIZE THE CITY MANAGER TO ENTER INTO THE SECOND

AMENDMENT TO THE JOINT USE AGREEMENT WITH PLEASANTON UNIFIED

SCHOOL DISTRICT FOR THE MIDDLE SCHOOL GYMNASIUMS

SUMMARY
The City of Pleasanton and the Pleasanton Unified School District (PUSD) entered into an agreement on July 1, 2024, to define costs associated with the shared use of the middle school gymnasiums (Attachment 1). On June 3, 2025, the City Council approved the First Amendment to the PUSD and City joint use agreement for the middle school gymnasiums, extending the agreement until June 30, 2026 (Attachment 2). The two agencies would like to update the terms and extend this agreement for an additional year (Attachment 3), through June 30, 2027.

RECOMMENDATION
Authorize the City Manager to enter into the second amendment to the joint use agreement with Pleasanton Unified School District for the middle school gymnasiums.

BACKGROUND
The City and the Pleasanton Unified School District (PUSD) co-funded the construction of all three middle school gyms in Pleasanton, and for many years paid equally for maintenance and capital projects. However, cost sharing for capital projects was never clearly defined in the previous agreements. In 2024, both agencies determined and agreed that the middle school gyms are not co-owned, but are owned by PUSD.

On July 1, 2024, PUSD and the City entered into an Agreement for the middle school gyms to better define how costs are shared between the two agencies for their use. Staff met and agreed to an hourly rate for City use of the gyms as well as an equal share of maintenance costs, with a total annual not-to-exceed amount of $75,000. The First Amendment to the agreement was approved by the City Council on June 3, 2025, extending the agreement until June 30, 2026.

DISCUSSION
The current agreement has been beneficial for the students, community members, and both agencies. The proposed amendment extends the term for an additional fiscal year, through June 30, 2027, with a total annual not-to-exceed amount of $75,000, and provides for incremental increases to the hourly rate for use of the gyms.

EQUITY AND SUSTAINABILITY
Updating agreements to ensure they meet community and organizational needs helps further

equitable access to recreational opportunities for all community members.

OUTREACH
Outreach for the middle school gymnasium agreement was conducted through the City/PUSD Liaison Committee meetings held in December 2022, May 2023, and March 2024. City and PUSD staff continue to communicate and work together year-round to ensure smooth processes.

STRATEGIC PLAN ALIGNMENT
This action advances the ONE Pleasanton Citywide Strategic Plan Goal A. Funding Our Future, Strategy 1 - Develop a long-term strategy for funding operations and maintenance needs to ensure reliability of community-owned facilities and infrastructure and continuity of City services.

FISCAL IMPACT
$75,000 is included in the proposed budget for Library and Recreation for FY 2026/27.

Prepared by: Submitted by: Approved by:

Aaron Bueno, Recreation
Manager
Heidi Murphy, Director of Library and
Recreation

Acting City Manager

Attachments:

1. Second amendment to agreement with PUSD

SECOND AMENDMENT TO AGREEMENT
This First Amendment to Agreement ("First Amendment") is entered into this 1st day of July 2026 by the City of Pleasanton ("City") and Pleasanton Unified School District ("PUSD")
Whereas, on July 1, 2024, the City and PUSD entered into an agreement for joint use of the Middle School Gymnasiums ("Agreement"); and on July 1, 2025, the City and PUSD entered into a First Amendment to the Agreement: and Whereas the terms and scope of work need to be amended, and Whereas, the parties desire to amend the Agreement;
Now, therefore, in exchange for valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

1. Recital F of the Agreement is amended to read:

The City and District wish to clarify the use of the Middle School Gymnasiums for Fiscal Year 2026/27.

2. Section 2a of the Agreement, "Term" is amended to read:

The term of this Agreement is from July 1, 2026, to June 30, 2027.

3. Section 3 of the Agreement, "Costs," is amended to read:
ii. $40.00 per hour (Monday-F riday); $60.0 0 per hour (Saturday); and $80.00 per hour (Sunday) for custodial obligations related to maintaining the Middle School Gymnasiums and surrounding areas.
iii.One-half of the costs of regular maintenance, repair, and upkeep of the Middle School Gymnasiums. Gymnasiums will be utilized by Amador and Foothill High School for a period of time in the 2026/27 school year.

The City's maintenance costs will be prorated for only the period the gym is used by the City.
c. Payments made by City to District under this Agreement shall not exceed $75
,000 annually.

4. All other terms and conditions of the Agreement shall remain in full force and effect.

In witness whereof, authorized representatives of the parties have executed this First Amendment to the Agreement as of the date and year first above written.

ATTACHMENT 1

CITY OF PLEASANTON PUSD

By: ______________________ By: __________________________ Gerry Beaudin, City Manager Ahmad Sheikholeslami
Assistant Superintendent
ATTEST:

By: __________________________
Jocelyn, Kwong, City Clerk

APPROVED AS TO FORM:

By: __________________________
Daniel G. Sodergren, City Attorney

Item #12

CITY COUNCIL AGENDA REPORT

June 16, 2026
Public Works - Operations Division

TITLE: ADOPT A RESOLUTION APPROVING RATES FOR SOLID WASTE,

RECYCLABLE MATERIALS, AND ORGANIC MATERIALS COLLECTION FOR FISCAL YEAR 2026/27 AS REQUIRED BY THE FRANCHISE AGREEMENT BETWEEN THE CITY AND PLEASANTON GARBAGE SERVICE, INC.

SUMMARY
Pursuant to the existing franchise agreement (Franchise Agreement) between the City of Pleasanton and Pleasanton Garbage Service, Inc. (PGS), garbage collection rates are adjusted annually with City Council approval, effective July 1 of each year during the term of the agreement (Section 8.2 C). The rate-setting process identified in the Franchise Agreement for Rate Period Nine is an index-based rate adjustment methodology.

On March 31, 2026, PGS submitted a rate application for Rate Period Nine, proposing a 4.59 percent increase based on the index-based methodology and including a Special Rate Review request. After review by the City’s consultant, HF&H Consultants, LLC (HF&H), staff is recommending a 2.23 percent rate adjustment effective July 1, 2026, reflecting only eligible and verified cost factors consistent with the Franchise Agreement.

RECOMMENDATION
Adopt a resolution approving rates for solid waste, recyclable materials, and organic materials collection for FY 2026/27, as required by the Franchise Agreement between the City and PGS, and approve the FY 2026/27 garbage rate adjustment of 2.23 percent.

BACKGROUND
The current Franchise Agreement for garbage services outlines the processes for annual rate adjustments, including both index-based and cost-based rate adjustments, as shown in Table

1. July 1, 2026, marks the beginning of the ninth Rate Period, which requires an index-based rate adjustment. As stipulated in the Franchise Agreement, all rates are subject to City Council approval.

Historically, index-based rate adjustments have been presented to the City Council on the Consent Calendar because the adjustment methodology is established in the Franchise Agreement and is limited by several cost indices.

Table 1. Annual Rate Adjustment Breakdown

Under the Franchise Agreement, the index-based adjustment uses several cost factors, including changes in the Consumer Price Index and the approved disposal site tipping fee, to calculate adjusted rates.

DISCUSSION
Rate Period Nine requires the use of an index-based rate adjustment. On March 31, 2026, PGS submitted its rate application, which included a proposed 4.59 percent increase and several additional cost items categorized as Special Rate Review requests. These items included lease-related costs, stormwater system expenses, and revenue adjustments.

Pursuant to Section 8.4.B.4 of the Franchise Agreement, Special Rate Review requests must be submitted at least six months before the proposed effective date. Accordingly, most of these items were not eligible for consideration as part of this year’s rate adjustment.

One exception was the reduction in annual curbside collection revenue, which was accepted for review with adequate supporting documentation and consistent with prior applications.

Following its review, HF&H determined that the appropriate index-based adjustment for Rate Period Nine is 2.23 percent, which staff recommends for City Council approval.

The ineligible Special Rate Review items may be reviewed for potential inclusion in rates effective July 1, 2027, as part of next year’s rate adjustment process.

EQUITY AND SUSTAINABILITY
As a full-service municipality, the City provides a wide range of services and programs to meet the needs of all community members. The City’s waste and recycling program incorporates both equity and sustainability considerations to ensure fair access to services and environmentally responsible waste management. Consulting support for waste disposal helps ensure that the City’s services are provided safely to all members of the Pleasanton community.

OUTREACH
On April 30, 2026, a publicly noticed City Council Waste and Recycling Subcommittee meeting was held.

STRATEGIC PLAN ALIGNMENT
This action advances the citywide ONE Pleasanton Strategic Plan Goal of Investing in Our

Environment by continuing to implement priority items from the Climate Action Plan 2.0 (CAP) to lead by example in environmental sustainability.

FISCAL IMPACT
The City’s expenditure for garbage services is budgeted at $567,600 (00199100-433151) for FY 2026/27. In addition, the City is projected to receive approximately $1,344,540 (001- 317093) in franchise fees from PGS in FY 2026/27, depending on the rate approved by the City Council.

Prepared by: Submitted by: Approved by:

David Luera, Operations &
Maintenance Manager
Siew-Chin Yeong, Director of Public
Works

Acting City Manager

Attachments:

1. HF&H Summary of Findings for Rate Period Nine

2. Resolution Approving Solid Waste, Recycle Materials, and Organic Materials Collection Rates

HF&H Consultants
590 Ygnacio Valley Rd. Suite 105
Walnut Creek, CA 94596
Phone: (925) 977-6950
Web: hfh-consultants.com

May 14, 2026

ZeeLaura Page
Waste and Recycling Manager
City of Pleasanton
P. O. Box 520
Pleasanton, CA 94566-0802

Re: Review of Pleasanton Garbage Service, Inc. Application for Index-Based Rate Adjustment for Rate Period Nine for Rate Change Effective July 1, 2026 – Final Report

Dear ZeeLaura Page:

Following are the findings from our review of Pleasanton Garbage Service, Incorporated’s (PGS) Application for Index -Based Rate Adjustment for Rate Period Nine (RP9) for Rate Change Effective July 1, 2026 (Application).

1. Summary Findings
A. PGS submitted its Application on time and in accordance with Exhibit H – Index-Based Rate Adjustment Mechanism of the City of Pleasanton’s (City) Franchise Agreement with PGS (Agreement).

B. PGS requested a rate increase of 4.59% in the Application, which included a number of new “additional costs” submitted in reference to a Special Rate Review.

C. PGS’ requested rate increased due to a revision of tonnages to be included in the Application, which were greater than the amounts reported in the annual reports submitted to the City.

D. The increases made in the pass -through costs of the Application, a result of the increased tonnage amounts described above, were offset by the removal of most of the “Additional Costs” submitted as a Special Rate Review, lowering the recommended adjustment to 2.23%.

2. Review of Rate Application
HF&H Consultants, LLC (HF&H) compared PGS’s Application dated April 1 , 202 6 to the Agreement (specifically Exhibit H – Index-Based Rate Adjustment Mechanism and Exhibit F – Contractor’s Total Proposed Costs for Rate Period One) dated March 5, 2018:

A. PGS’ Index -Based Rate Adjustment Application Worksheet , dated April 1, 202 6 (Worksheet), shows that the Rate Period 8 costs column agreed with the annual costs from the prior year’s approved rate increase request.

B. PGS’ Worksheet Adjustment Index column (showing the indices to be used in the adjustment) agrees to Exhibit H, Table 2.

Attachment 1

ZeeLaura Page
May 14, 2026

C. PGS provided support for tonnages greater than the initial submittal. This support showed 1,452.80 tons more than the tonnage data provided in the annual report and other reports to the City . PGS states that this is due to receiving “lost, missing, or corrected weight tags after the reporting deadline imposed by the franchise agreement.” The increase in tonnage in the application resulted in an increase of $42,115 in transfer and transportation costs along with a n increase of $ 134,864 in disposal and processing costs.

D. The Application included GWR’s Mixed Recycling Processing Fee per Ton of $90, which was updated to reflect the current cost of $92 per ton provided by GWR. This amount was not available to PGS at the time of submission. The increase in these per-ton costs resulted in an increase of $20,216 to recyclables processing costs.

E. PGS submitted a number of “Special Rate Review” requests. These included lease - related costs, stormwater system expenses, and revenue adjustments.

F. Per Section 8.4.B.4 of the Franchise Agreement, Special Rate Review requests must be submitted at least six months prior to the effective date. City staff, HF&H, and PGS met with the Waste and Recycling Subcommittee on April 30 , 2026 to discuss these items. Due to the late submittal, these items (except as noted below) were excluded from this year’s rate adjustment. However, they will be reviewed for potential inclusion in rates effective July 1, 2027, during next year’s rate adjustment process.

G. The annual curbside collection revenue Special Rate Review request of $53,589 was accepted due to adequate supporting documentation and consistency with prior applications.

H. HF&H recommends that the City work with PGS to revise reports submitted by PGS throughout the year to more accurately reflect tonnage information as it is made available.

I. As a result of the findings and recommendations outlined above HF&H recommends that the City adopt a rate increase of 2. 23% for solid waste collection rates effective July 1, 2026.

* * * *
We appreciate this opportunity to be of service to the City. Please contact Senior Project Manager Dave Hilton (925) -977-6964, [email protected]. if you have any questions.

Very truly yours,
HF&H Consultants, LLC

Rob Hilton Dave Hilton
President Senior Project Manager

RESOLUTION NO. 26-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON TO

APPROVE RATES FOR SO LID WASTE, RECYCLAB LE MATERIALS, AND

ORGANIC MATERIALS COLLECTION SERVICES

WHEREAS, on March 20, 2018, the City Council voted to approve and entered into a franchise agreement between the City of Pleasanton and Pleasanton Garbage Service Inc. for Solid Waste, Recyclable Materials, and Organic Materials collection services; and

WHEREAS, on June 7, 2022, the City Council voted to approve an amended franchise agreement between the City of Pleasanton Garbage Service, Inc. to comply with California state law SB 1383 requirements; and

WHEREAS, in accordance with Section 9.20.090 of the City of Pleasanton Municipal Code, rates for franchise services shall be set by a resolution approved by the City Council of the City of Pleasanton; and

WHEREAS, Pleasanton Garbage Service, Inc. shall conduct all billing related to collection, transportation, recycling, and disposal of said Solid Waste, Recyclable Materials, and Organic Materials in strict accordance with rates listed in this Resolution; and

WHEREAS, in accordance with the Index-Based Rate Adjustment methodology, the rate increase for rate period Eight is 2.23 percent.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

SECTION 1. The fee schedule set forth in Resolution 25-034 is hereby rescinded.

SECTION 2. The rates for the collection, transport, and disposal of Solid Waste, Recyclable Materials, and Organic Materials from the City of Pleasanton for Commercial/Multi-Family Services, Residential Services and for Transfer Stations Services, are revised as of July 1, 2026, as outlined in Exhibit A.

SECTION 3. Rates will go into effect on July 1, 2026.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on June 16, 2026.

Attachment 2

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the 16 of June, 2026, by the following vote:

Ayes:

Noes:

Absent:

Abstain:

__________________________
Jocelyn Kwong, City Clerk

APPROVED AS TO FORM:

______________________________
Daniel G. Sodergren, City Attorney

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
SINGLE-FAMILY RESIDENTIAL RATES Rate 7/1/2026

2.23%
Cart Service 34.42$ 35.19$
35-Gallon Service
For the regularly-scheduled once each week pick up of the following * 35-gallon cart for refuse
* 96-gallon cart for recycable materials
* 64 or 96-gallon cart for green waste including food scraps * Each additional refuse cart per week 34.42$ 35.19$ Cart Service 60.05$ 61.39$
96-Gallon Service
For the regularly-scheduled once each week pick up of the following * 96-gallon cart for refuse
* 96-gallon cart for recycable materials
* 64 or 96-gallon cart for green waste including food scraps * Each additional refuse cart per week 60.05$ 61.39$ Back Yard Service
For the regularly-scheduled once each week pick up of waste cart from the back or side yard of a single family residential property of a customer unable to bring the cart to the curb. Carts must be within 50 feel of any gate or fence. 35-Gallon Service 41.83$ 42.76$
* Each additional refuse cart per week 41.83$ 42.76$ 96-Gallon Service 72.05$ 73.66$
* Each additional refuse cart per week 72.05$ 73.66$ https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 7 Exhibit A

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
SINGLE-FAMILY RESIDENTIAL RATES Rate 7/1/2026

2.23%
Container Service 185.96$ 190.11$
For the one-time drop-off and pick-up of a 4 cubic yard container provided by Pleasanton Garbage Service, Inc.

Additional Services
* Extra 30-gallon bag (per bag) 9.93$ 10.15$ * Go Back Service for customer who forgot to put out carts 14.91$ 15.24$ * Same day 'go back' for a second pick-up 14.09$ 14.40$ * Other than same day 'go back' service 29.49$ 30.15$ * Cart Exchange back and forth changes 16.60$ 16.97$ * Redelivery of Cart after deliquent account is cleared 51.15$ 52.29$ * Damaged or Stolen Cart - One replacement cart in a 12 month period for Second replacement cart 79.86$ 81.64$ Senior Citizens Rate
Primary occupant must be 62 years of age or older. For the regularly-scheduled once each week pick up of the following:
35-Gallon Service 34.42$ 35.19$
* 35-gallon cart for refuse
* 96-gallon cart for recycable materials
* 64 or 96-gallon cart for green waste including food scraps * Each additional refuse cart per week 34.42$ 35.19$ 96-Gallon Service 51.03$ 52.17$
* 96-gallon cart for refuse
* 96-gallon cart for recyclable materials
* 64 or 96-gallon cart for green waste including food scraps * Each additional refuse cart per week 51.03$ 52.17$ https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 8

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
SINGLE-FAMILY RESIDENTIAL RATES Rate 7/1/2026

2.23%
Senior Citizen Rate (continued)
Backyard Service
For the regularly-scheduled once each week pick up of waste cart from the back or side yard of a single family residential property of a customer unable to bring the cart to the curb. Carts must be within 50 feet of any gate or fence. 35-Gallon Service 41.83$ 42.76$
* Each additional refuse cart per week 41.83$ 42.76$ 96-Gallon Service 63.05$ 64.46$
* Each additional refuse cart per week 63.05$ 64.46$ https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 9

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
Rate 7/1/2026

2.23%
Solid Waste Cart Service
35-gallon 1/week 34.42$ 35.19$
35-gallon 2/week 70.17$ 71.73$
35-gallon 3/week 109.05$ 111.48$
35-gallon 4/week 143.10$ 146.29$
35-gallon 5/week 176.82$ 180.76$
96-gallon 1/week 60.05$ 61.39$
96-gallon 2/week 122.47$ 125.20$
96-gallon 3/week 190.31$ 194.55$
96-gallon 4/week 249.46$ 255.02$
96-gallon 5/week 308.30$ 315.18$
Each additional solid waste cart per week 35-gallon 1/week 34.42$ 35.19$ 96-gallon 1/week 60.04$ 61.38$
Proposed
7/1/2025 Rate
Rate #REF!
Go back service for customer who forgot to put out carts All Each Cart 14.91$ 15.24$ Cart Exchange / back and forth changes All Each Cart 16.60$ 16.97$ Redelivery of Cart after deliquent account is cleared All Each Cart 51.15$ 52.29$ Second replacement cart in a 12 month period All Each Cart 79.86$ 81.64$ Mixed Recycle or Organics dumped as trash All Each Cart 24.99$ 25.55$ Additional Services for Solid Waste, Mixed
Recycling and Organic Carts
Damaged or Stolen Cart - One replacement cart in a 12 month period is provided free of charge
Cart
Size Frequency

COMMERCIAL/MULTI-FAMILY RESIDENTIAL

RATES - SOLID WASTE

COMMERCIAL/MULTI-FAMILY RESIDENTIAL
RATES - All Cart Service
Cart
Size Frequency
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 10

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
Rate 7/1/2026
Bin Service (Loose) 2.23%
1 1 154.07$ 157.51$
1 2 314.30$ 321.31$
1 3 489.09$ 500.00$
1 4 640.20$ 654.48$
1 5 791.32$ 808.97$
2 1 308.11$ 314.98$
2 2 628.57$ 642.59$
2 3 977.95$ 999.76$
2 4 1,280.13$ 1,308.68$
2 5 1,582.34$ 1,617.63$
3 1 462.19$ 472.50$
3 2 962.83$ 984.30$
3 3 1,440.34$ 1,472.46$
3 4 1,893.62$ 1,935.85$
3 5 2,346.95$ 2,399.29$
4 1 616.27$ 630.01$
4 2 1,283.80$ 1,312.43$
4 3 1,903.67$ 1,946.12$
4 4 2,508.06$ 2,563.99$
4 5 3,112.48$ 3,181.89$
7 1 1,101.29$ 1,125.85$
7 2 2,293.50$ 2,344.65$
7 3 3,336.33$ 3,410.73$
7 4 4,394.06$ 4,492.05$
7 5 5,451.78$ 5,573.35$

COMMERCIAL/MULTI-FAMILY

RESIDENTIAL RATES - SOLID WASTE
Cubic
Yards Frequency
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 11

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules Proposed
7/1/2025 Rate
Rate 7/1/2026
Bin Service (Loose) - continued 2.23%
Extra Pickup 1 Each 34.87$ 35.65$
2 Each 69.76$ 71.32$
3 Each 104.61$ 106.94$
4 Each 139.49$ 142.60$
7 Each 244.11$ 249.55$
On Call 1 Each 34.87$ 35.65$
2 Each 69.76$ 71.32$
3 Each 104.61$ 106.94$
4 Each 139.49$ 142.60$
7 Each 244.11$ 249.55$
Money on Delivery Bin Take Away 3-Day Rental 4 Each 185.96$ 190.11$ Money on Delivery Bin Take Away 3-Day Rental Extra
Bin Pick-Up 4 Each 139.49$ 142.60$
7/1/2025 Proposed
Monthly Monthly Rate
Rate #REF!
Bin - Compactor
1 1/2 1 453.31$ 463.42$
1 1/2 2 906.63$ 926.85$
1 1/2 3 1,359.97$ 1,390.30$
1 1/2 4 1,812.80$ 1,853.23$
1 1/2 5 2,266.64$ 2,317.19$
2 1 604.43$ 617.91$
2 2 1,208.85$ 1,235.81$
2 3 1,813.28$ 1,853.72$
2 4 2,370.17$ 2,423.02$
2 5 3,022.13$ 3,089.52$
3 1 906.64$ 926.86$
3 2 1,813.29$ 1,853.73$
3 3 2,719.94$ 2,780.59$
3 4 3,626.58$ 3,707.45$
3 5 4,533.22$ 4,634.31$

COMMERCIAL/MULTI-FAMILY RESIDENTIAL

RATES - SOLID WASTE
Cubic
Yards Frequency

COMMERCIAL/MULTI-FAMILY RESIDENTIAL

RATES - SOLID WASTE
Cubic
Yards Frequency
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 12

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
Rate 7/1/2026
Bin Compactor - continued 2.23%
4 1 1,208.87$ 1,235.83$
4 2 2,417.71$ 2,471.62$
4 3 3,626.59$ 3,707.46$
4 4 4,835.45$ 4,943.28$
4 5 6,044.30$ 6,179.09$
5 1 1,795.48$ 1,835.52$
5 2 3,022.15$ 3,089.54$
5 3 4,248.83$ 4,343.58$
5 4 5,475.50$ 5,597.60$
5 5 6,702.18$ 6,851.64$
6 1 2,154.56$ 2,202.61$
6 2 3,626.58$ 3,707.45$
6 3 5,098.56$ 5,212.26$
6 4 6,570.58$ 6,717.10$
6 5 8,042.60$ 8,221.95$
Proposed
7/1/2025 Rate
Rate #REF!
Bin Compactor
Extra Pickup 1 1/2 Each 124.31$ 127.08$
2 Each 139.49$ 142.60$
3 Each 209.24$ 213.91$
4 Each 278.98$ 285.20$
5 Each 348.73$ 356.51$
6 Each 418.49$ 427.82$
Overweight Charges (per ton) NA Each 83.12$ 84.97$ Same Day Service ALL Each 352.62$ 360.48$
Steam Clean Compactor Container/Box ALL Each 394.98$ 403.79$ Hard to Handle Trash (per ton) NA 78.72$ 80.48$

COMMERCIAL/MULTI-FAMILY RESIDENTIAL

RATES - SOLID WASTE
Cubic
Yards Frequency

COMMERCIAL/MULTI-FAMILY RESIDENTIAL

RATES - SOLID WASTE
Cubic
Yards Frequency
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 13

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules Proposed
7/1/2025 Rate
Rate 7/1/2026
Roll Off Box (Loose) - On Call 2.23%
Monthly Rental Fee All Sizes 423.74$ 433.19$
15 621.51$ 635.37$
20 828.66$ 847.14$
30 1,243.02$ 1,270.74$
40 1,657.37$ 1,694.33$
Cash on Delivery 3-Day Rental - Daily Rental Fee All Sizes 19.76$ 20.20$ Cash on Delivery for 3-Day Rental 15 621.51$ 635.37$ 20 828.66$ 847.14$
25 1,035.85$ 1,058.95$
30 1,243.02$ 1,270.74$
40 1,657.37$ 1,694.33$
Overweight Charges (per ton) All Sizes 83.12$ 84.97$ Proposed
7/1/2025 Rate
Rate #REF!
Roll Off Box (Compactor) - On Call
8 662.94$ 677.72$
10 828.66$ 847.14$
15 1,243.02$ 1,270.74$
16 1,325.89$ 1,355.46$
20 1,657.37$ 1,694.33$
24 1,988.84$ 2,033.19$
25 2,071.69$ 2,117.89$
30 2,486.03$ 2,541.47$
36 2,983.24$ 3,049.77$
40 3,314.71$ 3,388.63$

COMMERCIAL/MULTI-FAMILY RESIDENTIAL
RATES - SOLID WASTE Cubic Yards

COMMERCIAL/MULTI-FAMILY RESIDENTIAL
RATES - SOLID WASTE Cubic Yards
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 14

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules Proposed
7/1/2025 Rate
Frequency Rate 7/1/2026
Additional Services for Solid Waste 2.23%
Go Back Service All Each 160.61$ 164.19$ Steam Clean Bin All Each 191.14$ 195.40$ Pallet Pick Up N/A Each 14.43$ 14.75$ Hard to Handle Trash (per ton) N/A N/A 78.72$ 80.48$ Lock & Key for Customer to purchase from PGS All Each 13.86$ 14.17$ 7/1/2025 Proposed
Monthly Monthly
Frequency Rate #REF!
Mixed Recycling Cart Service
First and Second Cart 64-gallon 1/week Free Free
64-gallon 2/week 45.02$ 46.02$ 64-gallon 3/week 91.86$ 93.91$ 64-gallon 4/week 142.92$ 146.11$
64-gallon 5/week 187.09$ 191.26$
Third and all additional 64-gallon carts 64-gallon 1/week 45.02$ 46.02$ 64-gallon 2/week 91.86$ 93.91$ 64-gallon 3/week 142.92$ 146.11$
64-gallon 4/week 187.09$ 191.26$
Back Yard Cart Service per Cart 64-gallon 1/week 64.07$ 65.50$ 64-gallon 5/week 231.23$ 236.39$
First Cart 96-gallon 1/week Free Free
96-gallon 2/week 45.02$ 46.02$ 96-gallon 3/week 91.86$ 93.91$ 96-gallon 4/week 142.92$ 146.11$
96-gallon 5/week 187.09$ 191.26$
Second and all additional 96-gallon carts 96-gallon 1/week 45.02$ 46.02$ 96-gallon 2/week 91.86$ 93.91$ 96-gallon 3/week 142.92$ 146.11$
96-gallon 4/week 187.09$ 191.26$
96-gallon 5/week 231.23$ 236.39$
Back Yard Service 96-gallon 1/week 64.07$ 65.50$

COMMERCIAL/MULTI-FAMILY
RESIDENTIAL RATES - SOLID WASTE Cubic Yards

COMMERCIAL/MULTI-FAMILY
RESIDENTIAL RATES - RECYCLING Cart Size
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 15

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules Proposed
7/1/2025 Rate
Frequency Rate 7/1/2026

2.23%
Extra Pickup 1 Each 26.15$ 26.73$
2 Each 52.29$ 53.46$
3 Each 78.44$ 80.19$
4 Each 104.60$ 106.93$
7 Each 183.06$ 187.14$

COMMERCIAL/MULTI-FAMILY RESIDENTIAL
RATES - RECYCLING Cubic Yards
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 16

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
Frequency Rate 7/1/2026
Bins - Mixed Recycling Only 2.23%
1 1 122.92$ 125.66$
1 2 244.01$ 249.45$
1 3 375.74$ 384.12$
1 4 491.70$ 502.66$
1 5 607.71$ 621.26$
2 1 245.79$ 251.27$
2 2 487.99$ 498.87$
2 3 751.21$ 767.96$
2 4 983.13$ 1,005.05$
2 5 1,215.25$ 1,242.35$
3 1 364.02$ 372.14$
3 2 741.67$ 758.21$
3 3 1,106.17$ 1,130.84$
3 4 1,440.20$ 1,472.32$
3 5 1,802.45$ 1,842.64$
4 1 482.24$ 492.99$
4 2 985.11$ 1,007.08$
4 3 1,450.24$ 1,482.58$
4 4 1,903.51$ 1,945.96$
4 5 2,356.77$ 2,409.33$
Compactor - Mixed Recycling Only
1 1/2 1 350.53$ 358.35$
1 1/2 2 701.07$ 716.70$
1 1/2 3 1,051.61$ 1,075.06$
1 1/2 4 1,401.78$ 1,433.04$
1 1/2 5 1,752.72$ 1,791.81$
2 1 482.15$ 492.90$
2 2 938.49$ 959.42$
2 3 1,392.87$ 1,423.93$
2 4 1,820.28$ 1,860.87$
2 5 2,321.03$ 2,372.79$
3 1 714.06$ 729.98$
3 2 1,396.79$ 1,427.94$
3 3 2,088.90$ 2,135.48$
3 4 2,758.20$ 2,819.71$
3 5 3,481.52$ 3,559.16$
4 1 945.94$ 967.03$
4 2 1,855.21$ 1,896.58$
4 3 2,762.78$ 2,824.39$
4 4 3,669.89$ 3,751.73$
4 5 4,576.74$ 4,678.80$
5 1 1,388.38$ 1,419.34$
5 2 2,336.93$ 2,389.04$
5 3 3,285.46$ 3,358.73$

COMMERCIAL/MULTI-FAMILY

RESIDENTIAL RATES -

RECYCLING
Cubic
Yards
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 17

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
Frequency Rate 7/1/2026
CompactoriMixed Recycling Only 2.23%
6 1 1,666.05$ 1,703.20$
6 2 2,804.30$ 2,866.84$
6 3 3,942.55$ 4,030.47$
6 4 5,080.81$ 5,194.11$
6 5 6,219.06$ 6,357.75$
7/1/2025 Proposed
Monthly Monthly Rate
Frequency Rate #REF!
Organics Cart Service 2.23%
96-gallon 1/week 45.02$ 46.02$
96-gallon 2/week 91.86$ 93.91$
96-gallon 3/week 142.92$ 146.11$
96-gallon 4/week 187.09$ 191.26$
96-gallon 5/week 231.23$ 236.39$

COMMERCIAL/MULTI-FAMILY

RESIDENTIAL RATES - MIXED

RECYCLING
Cubic
Yards

COMMERCIAL/MULTI-FAMILY
RESIDENTIAL RATES - ORGANICS Cart Size
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 18

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
Frequency Rate 7/1/2026
Bins (Loose) 2.23%
1 1 122.92$ 125.66$
1 2 244.01$ 249.45$
1 3 375.74$ 384.12$
1 4 491.70$ 502.66$
1 5 607.71$ 621.26$
2 1 245.79$ 251.27$
2 2 487.99$ 498.87$
2 3 751.21$ 767.96$
2 4 983.13$ 1,005.05$
2 5 1,215.25$ 1,242.35$
3 1 364.02$ 372.14$
3 2 741.67$ 758.21$
3 3 1,109.49$ 1,134.23$
3 4 1,454.30$ 1,486.73$
3 5 1,802.45$ 1,842.64$
4 1 482.24$ 492.99$
4 2 985.11$ 1,007.08$
4 3 1,450.24$ 1,482.58$
4 4 1,903.51$ 1,945.96$
4 5 2,356.77$ 2,409.33$
Proposed
7/1/2025 Rate
Frequency Rate #REF!
Roll Off (Loose) - On Call
15 Each 466.14$ 476.53$
20 Each 621.51$ 635.37$
30 Each 932.26$ 953.05$
40 Each 1,243.02$ 1,270.74$

COMMERCIAL/MULTI-FAMILY
RESIDENTIAL RATES - ORGANICS Cubic Yards

COMMERCIAL/MULTI-FAMILY
RESIDENTIAL RATES - ORGANICS Cubic Yards
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 19

PLEASANTON GARBAGE SERVICE, INC.

Application for Index-Based Rate Adjustment for Rate Period Nine Schedule 6 - Current and Proposed Customer Collection Rate Schedules 7/1/2025 Proposed
Monthly Monthly Rate
Rate 7/1/2026

2.23%
Air Conditioner 264.60$ 270.50$
Flocked Holiday Tree 43.15$ 44.11$ Bathtub (non-metal or metal) 123.58$ 126.34$ Chair-Recliner 108.43$ 110.85$
Couch 6 foot or 9 foot 123.58$ 126.34$ Dishwasher 123.58$ 126.34$
Washer 123.58$ 126.34$
Dryer 123.58$ 126.34$
Freezer 264.60$ 270.50$
Refrigerator 264.60$ 270.50$
Stove 123.58$ 126.34$
Grill 156.16$ 159.64$
Toilet 108.43$ 110.85$
Hide a bed 123.58$ 126.34$
Mattress Full, King Queen, Twin 156.16$ 159.64$ Microwave 108.43$ 110.85$
Misc. Furniture Item 108.43$ 110.85$ Misc Large Item 156.16$ 159.64$
Ping Pong Table 156.16$ 159.64$
CPU 94.34$ 96.44$
Printer 94.34$ 96.44$
Television Bigger than 25 Inches 216.86$ 221.70$ Television Less than 25 inches console or computer monitor 156.16$ 159.64$ Water Heater 30, 40, 50 or 80 gallon and above 123.58$ 126.34$ Tire no rim 42.46$ 43.41$
Tire with rim - Car and Pick-Up Truck 54.20$ 55.41$ Tire with rim - Large Truck 97.60$ 99.78$

LARGE ITEM ON CALL LIST FOR RESIDENTIAL & COMMERCIAL

CUSTOMERS
https://cityofpleasantonca-my.sharepoint.com/personal/zpage_cityofpleasantonca_gov/Documents/Desktop/Exhibit A -Adjustment Rate Period 9 20

Item #13

CITY COUNCIL AGENDA REPORT

June 16, 2026
Public Works - Engineering Division

TITLE: APPROVE PLANS AND SPECIAL PROVISIONS, AND AUTHORIZE THE CITY

MANAGER TO ENTER INTO AN AGREEMENT WITH VILLALOBOS AND
ASSOCIATES IN THE AMOUNT OF $127,490 FOR THE 2026 MISCELLANEOUS SIDEWALK AND PATHWAY REPLACEMENT PROJECT, CIP NO. 26511, AND

APPROVE A BUDGET AMENDMENT TO FUND THE PROJECT

SUMMARY
The Miscellaneous Sidewalk and Pathway Replacement project will remove and replace damaged concrete sidewalks, pathways, curbs, and gutters, as reported to the City in the Public Works customer service portal Maintstar. The plans and special provisions for the project were created by Engineering staff, then competitively bid for construction. Staff recommends awarding a construction contract to the lowest responsive bidder, Villalobos and Associates, in the amount of $127,490.

RECOMMENDATION

1. Approve plans and special provisions for the 2026 Miscellaneous Sidewalk and Pathway Replacement Project, CIP No. 26511;

2. Authorize the City Manager to enter into a construction contract with Villalobos and Associates for the low bid amount of $127,490;

3. Authorize the Director of Public Works to approve and execute contract change orders from a project contingency not-to-exceed $25,500, approximately 20 percent of the contract; and

4. Approve a budget amendment transferring $168,133 from the Deferred Maintenance – Asset Management Plan, CIP No. 26489 (Fund 201), to the 2026 Miscellaneous Sidewalk and Pathway Replacement Project, CIP No. 26511.

BACKGROUND
This project removes and replaces curb and gutter in identified locations to improve stormwater drainage and replaces damaged sidewalks that pose potential trip hazards for pedestrians. Damaged concrete pathways at various City parks that pose potential trip hazards will also be replaced as part of the project.

DISCUSSION
The 2026 Miscellaneous Sidewalk and Pathway Replacement Project, CIP No. 26511, includes the removal and replacement of approximately 5,000 square feet of sidewalk, 2,400 square feet of reinforced concrete pathway, and 60 linear feet of curb and gutter. The proposed concrete work will reduce the backlog of Maintstar work orders for Public Works.

Attachment 1 identifies the general project locations.

Consultant/Specialty Services
Several sections of curb and gutter, sidewalk, and pathway are affected by the roots of existing trees. After the concrete is removed at these locations, the City’s on-call consultant, West Coast Arborists, Inc. (WCA), will assess the tree roots to determine whether root pruning is feasible or whether the extent of root pruning would compromise the tree. WCA will provide their recommendations to City staff and then perform the pruning or removal, as directed by staff. The goal is to preserve the trees whenever feasible, with removal used only as a last resort. If a tree must be removed, a replacement tree may be planted, depending on the location.

During construction, and depending on soil conditions encountered, one of the City’s on-call geotechnical consultants may be used to provide soil and materials testing services to ensure the improvements are constructed according to adopted standards.

Bids
Sealed bids for this project were opened on May 20, 2026. A total of 13 bids were received, ranging from $127,490 to $385,797, compared with the Engineer’s Estimate of $203,500 (see Attachment 2). The lowest responsive bid was submitted by Villalobos and Associates in the amount of $127,490, approximately 37 percent lower than the Engineer’s Estimate. Staff verified that past work performed by Villalobos and Associates was satisfactory and recommends awarding the construction contract to this contractor.

Schedule
The proposed schedule for the project is as follows:

Approval of Plans and Special Provision/Award of Contract June 16, 2026 Start of Construction July 2026 End of Construction September 2026

EQUITY AND SUSTAINABILITY
Approval of this action advances the City's Climate Action Plan (CAP) – Materials & Consumption strategy – by reducing greenhouse gas emissions through improvements to mobility in the project areas. This project will support regional waste reduction efforts through the use of recycled aggregates in concrete.

OUTREACH
No outreach was conducted, as this item is a routine matter of City business. Construction notices will be sent to businesses and residents in areas affected by the project.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the citywide ONE Pleasanton Strategic Plan Goal of Investing in Our Environment, Strategy 1 – Implement the four-year Capital Improvement Program (CIP) to complete design and construction of budgeted capital projects.

FISCAL IMPACT
No funding is currently allocated in the Capital Improvement Program for the 2026 Miscellaneous Sidewalk and Pathway Replacement Project, CIP No. 26511. The anticipated total project cost is $168,133, including a project contingency of $25,500. Staff recommends

transferring $168,133 from the Deferred Maintenance – Asset Management Plan, CIP No. 26489 (Account No. 20130110-440108-26489), which has a current balance of $4,083,311, to fund CIP No. 26511 (Account No. 20130110-440108-26511). The funding and anticipated project expenditures are provided in Attachment 3.

The budget also includes advertising costs, $10,000 for tree pruning or removal services, and $5,000 for material testing services. All services will be provided under existing on-call contracts.

Prepared by: Submitted by: Approved by:

Michael Stella, City
Engineer
Siew-Chin Yeong, Director of Public
Works

Acting City Manager

Attachments:

1. Project Location Map

2. Bid Summary

3. Funding and Estimated Expenditures Summary

INTERSTATE

CALIFORNIA
680

W LAS POSITAS BLVD

SANTA RITA RD

VALLEY AVE
DONLON

ELEMENTARY
SCHOOL

BERNAL AVE

VAL VISTA
PARK

VALLEY AVE

SUNOL BLVD

FOOTHILL
HIGH
SCHOOL

FOOTHILL RD

STONERIDGE DR

MUIRWOOD

COMMUNITY
PARK
HEARST

ELEMENTARY
SCHOOL

PLEASANTON
MIDDLE
SCHOOL
BERNAL

COMMUNITY
PARK

STONERIDGE
MALL

SYCAMORE RD

FIRST ST

HOPYARD RD

GIBRALTAR DR

HACIENDA DR

PASEO SANTA CRUZ

PASEO SANTA CRUZ

HANSEN DR

CALLE ALTAMIRA

INGLEWOOD DR

DENKER DR

N VALLEY TRAILS

KEN MERCER

SPORTS PARK
HANSEN
PARK

BLACK AVE

HOPYARD RD

ALAMEDA COUNTY

FAIRGROUNDS

PLEASANTONAVE
MOLLER
PARK
AREA 1
W. ANGELA ST

MOHR AVE

DEL VALLE

PARKWAY

GOLDEN RD

MEADOWLARK
PARK

VIA QUITO

CASE AVE
AREA 2

MALLARD DR

BAY MEADOW CIR

DOWNING CT

ROYAL CREEK CTLAGUNA CREEK LANE

ROCKY CREEK PL
AREA 3
AREA 4
AREA 5

CITY OF PLEASANTON
2026 MISCELLANEOUS SIDEWALK AND PATHWAY
REPLACEMENT PROJECT - CIP NO. 26511

PUBLIC WORKS DEPARTMENT

LOCATION MAP

PROJECT

LOCATIONS
ATTACHMENT 1

Owner: City of Pleasanton
Item # Quantity Unit of
Measure Unit Price Item Total Unit Price Item Total Unit Price Item Total Unit Price Item Total Unit Price Item Total Unit Price Item Total Unit Pr ice Item Total Unit Price Item Total 1 5000 SF $22 $110,000 $15.75 $78,750 $23 $115,000 $21.75 $108,750 $25 $125,000 $21.92 $109,600 $22 $110,000 $25.99 $129,950 2 2400 SF $35 $84,000 $17.85 $42,840 $24 $57,600 $23.50 $56,400 $28 $67,200 $32.15 $77,160 $34 $81,600 $35.99 $86,376 3 60 LF $75 $4,500 $65 $3,900 $100 $6,000 $125 $7,500 $90 $5,400 $142.87 $8,572.20 $110 $6,600 $100 $6,000 4 1 LS $5,000 $5,000 $2,000 $2,000 $3,500 $3,500 $15,000 $15,000 $2,250 $2,250 $5,000 $5,000 $5,000 $5,000 $10,000 $10,000 $ 203,500 $127,490 $182,100 $187,650 $199,850 $200,332.20 $203,200 $232,326 Unit Price Item Total Unit Price Item Total Unit Price Item Total Unit Price Item Total Unit Price Item Total Unit Price Item Total $28.25 $141,250 $25 $125,000 $34 $170,000 $35 $175,000 $35 $175,000 $40.62 $203,100 $32.45 $77,880 $40 $96,000 $45 $108,000 $38 $91,200 $45 $108,000 $60.45 $145,080 $130 $7,800 $75 $4,500 $120 $7,200 $150 $9,000 $95 $5,700 $161.20 $9,672 $7,500 $7,500 $10,000 $10,000 $4,580 $4,580 $15,000 $15,000 $10,000 $10,000 $27,945 $27,945 $234,430 $235,500 $289,780 $290,200 $298,700 $385,797
Allsite Corp. Goods/Services
Construction
645 Rucker Avenue 163 Meadow Brook PO Box 321 2095 Jerrold Avenue 2613 Erskine Lane 4731 Coliseum Way 1002 Obrien Court 2026 Miscellaneous Sidewalk and Pathway Replacement Project, CIP 26511 Attachment 2
Bid Opening: 11:00PM, 5/20/2026 Engineer's Estimate
Villalobos & Associates Modernscapes
Innovations
CLS/Cervantes Landscape
Services, Inc. Lignum Mellis Raposo Engineering, Inc. Rosa Brothers Construction San Jose, CA 95126

US US US US US US US
Gilroy, CA 95020 Oakley, CA 94561 Patterson, CA 95363 San Francisco, CA Hayward, CA 94545 Oakland, CA 94601 Bidder Status: ValidBidder Status: Valid Bidder Status: Valid Bidder Status: Valid Bidder Status: Valid Bidder Status: Valid Bidder Status: Valid Bid Items
Item Description
Remove and Replace (R/R)
Sidewalk and Drivewa
y
Remove and Replace (R/R)
Reinforced Concrete Pathway
Remove and Replace Curb and
Gutter (C/G) Regardless of Type
Traffic Control
Total Bid Amount
Catos General Engineering,
Inc.
134 Rock Harbor Lane 1981 21st Street 550 Greenville Road 4941 Pacheco 160 J Street 22302 Hathaway Avenue Kerex Engineering, Inc. JD Partners ConcreteJohn Boylan Engineering, Inc. FJ&I Engineering, Inc. FBD Vanguard Construction, Inc.

Hayward, CA 94541

US US US US US US
Martinez, CA 94553 Fremont, CA 94536Foster City, CA 94404 San Pablo, CA 94806 Livermore, CA 94550 Bidder Status: ValidBidder Status: Valid Bidder Status: ValidBidder Status: Valid Bidder Status: Valid Bidder Status: Valid

ATTACHMENT 3
Project Funding to Date Amount Totals
2025-26 CIP Allocation (Fund 201 - Miscellaneous CIP - General Fund) $0

TOTAL FUNDING TO DATE
Project Expenditures (to-date)
Advertising $103
Miscellaneous Expenses 40
TOTAL PROJECT EXPENDITURES $143
Anticipated Project Expenditures
Villalobos and Associates - Construction Contract $127,490 Villalobos and Associates - Project Contingency (Approximately 20%) $25,500 West Coast Arborists, Inc. - Tree Removal $10,000
Material Testing Services $5,000
TOTAL PROJECT EXPENDITURES $167,990

TOTAL PROJECT EXPENDITURES
Funding Balance/ (Shortfall)
Current Balance/ (Shortfall) (168,133)
Funding to Cover Shortfall
$168,133
Total Transfer of Funding to Cover Shortfall $168,133
Transfer from Deferred Maintenance - Asset Management Plan, CIP No. 26489
$168,133
$0
2026 MISCELLANEOUS SIDEWALK AND PATHWAY REPLACEMENT
CIP NO. 26511
06/16/26

Item #14

CITY COUNCIL AGENDA REPORT

June 16, 2026
Public Works - Engineering Division

TITLE: APPROVE PLANS AND SPECIAL PROVISIONS, AND AUTHORIZE THE CITY

MANAGER TO ENTER INTO AN AGREEMENT WITH FRONTLINE GENERAL ENGINEERING, INC., IN THE AMOUNT OF $284,951 FOR THE SASSAFRAS COURT STORM DRAIN INTERCEPTOR PROJECT, CIP NO. 22484; AND

AUTHORIZE THE DIRECTOR OF PUBLIC WORKS TO APPROVE AND

EXECUTE CONTRACT CHANGE ORDERS FROM A PROJECT CONTINGENCY NOT TO EXCEED $44,843

SUMMARY
The Sassafras Court Storm Drain Interceptor Project will install a vault to capture and hold creek debris before stormwater enters the public pipe network on Oak Tree Farm Drive. The vault will be constructed within an easement with sufficient operating area to allow the City’s maintenance equipment to remove accumulated debris, such as tree branches and sediment, for disposal. Clearing debris from this location has historically been burdensome for Operations staff within Public Works.

A competitive bidding process was conducted in accordance with the City’s Procurement and Contracting Procedures. Five bids were received. Frontline Engineering, Inc., submitted the lowest responsive bid. Staff recommends the City Council authorize the City Manager to execute a construction contract with Frontline Engineering, Inc., in the amount of $284,951, and authorize a project contingency not-to-exceed $44,843, for a total authorized construction budget of $329,794, not including construction support services.

RECOMMENDATION

1. Approve plans and special provisions for the Sassafras Court Storm Drain Interceptor Project, CIP No. 22484;

2. Authorize the City Manager to enter into a construction contract with Frontline Engineering, Inc., for the low bid amount of $284,951; and

3. Authorize the Director of Public Works to approve and execute contract change orders from a project contingency not-to-exceed $44,843 or approximately 15 percent of the contract amount.

BACKGROUND
Severe winter storms from December 2022 through March 2023 caused damage throughout Pleasanton due to flooding, downed trees, power outages, and property damage.

The Sassafras Court neighborhood off of Oak Tree Farm Drive experienced damage during the 2023 storm events similar to earlier damage in 2017. The hillside west of the neighborhood channels stormwater into a creek that carries woody debris and silt downstream where the

City’s pipe inlet often clogs. The proposed concrete vault will capture and temporarily store the storm debris, allowing Operations staff in Public Works Operations time to respond to any inlet obstruction. The project also includes a new concrete J-ditch and dual elliptical 15-inch pipe culverts that will connect to the existing pipe network.

DISCUSSION
On April 16, 2024, the City approved a design services agreement with ENGEO, Inc., to prepare preliminary designs, construction plans, special provisions, and engineer’s estimates for various sites damaged by the 2023 storm events. The Sassafras Court Storm Drain Interceptor Project is one of the identified sites. That approval also authorized the Director of Public Works to approve and execute project amendments for the various storm projects approved in the Capital Improvement Program, provided the amendments do not exceed project funding and remain within 5 percent of the design contract. The project is now ready for construction.

ENGEO, Inc. will provide construction support services under an amendment to its design contract. The amendment will be on a time-and-materials basis, with a not-to-exceed amount of $9,475. Geocon Consultants Inc. will provide materials testing services under an existing on-call agreement with the City. These services include specialty testing for grading and backfill compaction. The not-to-exceed amount for these time-and-material services is $14,795. The total amount allocated to construction support is therefore $24,270.

EQUITY AND SUSTAINABILITY
Approval of this action advances the City’s equity and sustainability goals under Climate Action Plan 2.0 to support community resilience and well-being by improving public services to ensure all communities are prepared for climate-related impacts.

OUTREACH
Staff coordinated with the two adjacent property owners who sustained damage during the 2017 and 2022/23 storm seasons. No other public outreach was conducted for this contract award. Construction notices will be sent to affected residents before work begins.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the citywide ONE Pleasanton Strategic Plan Goals of Safeguarding Our City, Strategy 4 - Implement the hazard mitigation plan to address response to natural disasters; and Investing in Our Environment, Strategy 1 - Implement the Four-Year Capital Improvement Program (CIP).

FISCAL IMPACT
A total of $600,000 is budgeted for the Sassafras Storm Drain Interceptor Project, CIP No. 22484, in Fund 441 of the Capital Improvement Program.

The anticipated total project expenditure is approximately $441,200. Total project costs include design, construction, contingency, construction support, and other miscellaneous costs. This would leave an estimated project budget balance of approximately $158,800.

At the completion of CIP No. 22484, staff will recommend that any remaining balance be returned to the source fund. Funding and anticipated project expenditures are detailed in

Attachment 3.

Prepared by: Submitted by: Approved by:

Michael Stella, City
Engineer
Siew-Chin Yeong, Director of Public
Works

Acting City Manager

Attachments:

1. Project Location Map

2. Bid Summary

3. Funding and Estimated Expenditures Summary

ATTACHMENT 1

Unit of
Measure
1 1L S Mobilization (Lump Sum) 20,951.00$ 21,000.00 $ 38,541.81 $ 38,541.81 $ 30,450.00 $ 30,450.00 $ 34,000.00 $ 34,000.00 $ 54,000.00 $ 54,000.00 $ 58,907.00 $ 58,907.00 $ 2 1L S Precast Manufactured Vault System 120,000.00$ 120,000.00 $ 103,704.58 $ 103,704.58 $ 135,000 $ 135,000.00$ 149,000.00 $ 149,000.00 $ 194,000 $ 194,000.00$ 368,000.00 $ 368,000.00 $ 3 25 TON 4" AC 800.00$
20,000.00$ 602.93$
15,073.25$ 385$
9,625.00$ 540.00$
13,500.00$ 270$
6,750.00$ 900.00$
22,500.00$
4 53 TON 8" Class II AB 70.00$
3,710.00$
167.22$
8,862.66$ 155$
8,215.00$ 275.00$
14,575.00$ 200$
10,600.00$ 325.00$
17,225.00$
5 16 LF Concrete J-Ditch (Cast-In-Place) 125.00$
2,000.00$
213.37$
3,413.92$ 1,300$
20,800.00$ 800.00$
12,800.00$ 200$
3,200.00$ 880.00$
14,080.00$
6 1L S 6" Concrete Cap (Above 15" SD) 1,250.00$
1,250.00$
4,681.27$ 4,681.27$ 6,500$ 6,500.00$ 4,000.00$ 4,000.00$ 1,300$ 1,300.00$ 3,850.00$ 3,850.00$
7 62 CF Grouted Light-Class Riprap 12.00$ 740.00$ 56.93$ 3,529.66$ 145$ 8,990.00$ 100.00$ 6,200.00$ 200$ 12,400.00$ 125.00$ 7,750.00$ 8 60 LF Remove and Replace 3-Rail Wood Fence 80.00$
4,800.00$
283.49$
17,009.40$ 220 $
13,200.00$ 230.00$
13,800.00$ 200$
12,000.00$ 190.00$
11,400.00$
9 22 LF 15" Elliptical RCP SD 250.00$
5,500.00$
970.64$
21,354.08$ 625$
13,750.00$ 965.00$
21,230.00$ 800$
17,600.00$ 1,000.00$ 22,000.00$
10 1E A Modified 2'x6' Precast Drop Inlet 10,500.00$ 10,500.00$ 11,104.25$ 11,104.25$ 14,500$ 14,500.00$ 21,000.00$ 21,000.00$ 17,000$ 17,000.00$ 26,150.00$ 26,150.00$
11 77 LF 6" Concrete Vertical Curb 130.00$
10,010.00$ 92.85$
7,149.45$ 200$
15,400.00$ 120.00$
9,240.00$ 100$
7,700.00$ 110.00$
8,470.00$
12 5E A Removable Bollards w/ Safety Chains 2,000.00$
10,000.00$ 1,839.26$ 9,196.30$ 2,400$ 12,000.00$ 2,500.00$ 12,500.00$ 1,300$ 6,500.00$ 3,000.00$ 15,000.00$ 13 1L S Traffic Control 10,000.00$ 10,000.00$ 6,095.75$ 6,095.75$ 7,800$ 7,800.00$ 4,000.00$ 4,000.00$ 28,000$ 28,000.00$ 32,000.00$ 32,000.00$ 14 1L S Erosion Control/SWPPP BMP's 15,000.00$ 15,000.00$ 18,801.10$ 18,801.10$ 7,800$ 7,800.00$ 7,500.00$ 7,500.00$ 6,000$ 6,000.00$ 12,000.00$ 12,000.00$
15 73 LF 6" AC Curb with 12" Curb Cuts 120.00$
8,760.00$

77.08$
5,626.84$ 135$
9,855.00$ 55.00$
4,015.00$ 100$
7,300.00$ 165.00$
12,045.00$
16 17 LF Remove Existing Pipe Culvert 140.00$
2,380.00$
129.67$
2,204.39$ 445$
7,565.00$ 120.00$
2,040.00$ 100$
1,700.00$ 150.00$
2,550.00$
17 3E A Masonry Cap at Existing DI & Pipe Culvert 1,500.00$ 4,500.00$
2,024.79$ 6,074.37$ 1,850$ 5,550.00$ 2,300.00$ 6,900.00$ 1,300$ 3,900.00$ 3,500.00$ 10,500.00$ 18 1L S Relocate and Modify Exisiting Irrigation 3,000.00$ 3,000.00$
2,527.20$ 2,527.20$ 7,500$ 7,500.00$ 3,750.00$ 3,750.00$ 128,000$ 128,000.00$ 4,000.00$ 4,000.00$ TOTAL: 334,500.00$

Unit Price Total
Bidder Status: Bidder Status:

Unit Price TotalItem No. Total Quantity
(Approximate) Item Description Unit Price Total
Sassafras Court Storm Drainage Repair, Project No. 22484 284,950.28$
Bidder Status:

Unit Price Total
340,050.00$
Bidder Status:

Unit Price Total
517,950.00$
Bidder Status:

Unit Price
253,150.00$
Total
648,427.00$
Con-Quest Contractors, Inc. 880
Mitten Road, Suite 105, Burlingame,
CA 94010
Frontline General Engineering
Construction, Inc.
4448 W. Pine Haven Drive, Tracy, CA
95304
Bid Opening May 7, 2026 at 11 am
Engineers Estimate
Kerex Engineering, Inc.
4941 Pacheco Blvd., Martinez, CA
94553
Golden Bay Construction, Inc. 3826
Depot Road, Hayward, CA 94545
Bassett Engineering
2354 Market Street, San Francisco, CA
94114
ATTACHMENT 2

ATTACHMENT 3
CIP NO. 22484
Project Funding to Date Amount Totals
2022-2023 CIP Allocation (Fund 441 - Storm Drain Replacement and Renovation) $785,457
*Per CCAR 04/16/24 transfer to CIP 24676, East Vineyard Detention Pond Outfall Repairs (159,000)
*Per CCAR 04/16/24 transfer to CIP 24677, Oak Tree Farm Pond Outfall Repairs and Channel Stabilization (168,000)
*Per CCAR 04/16/24 transfer to CIP 24678, Augustin Bernal Trail Creek Crossing Culverts and Retainin Wall (308,000)
2024-2025 CIP Allocation (Fund 441 - Storm Drain Replacement and Renovation)
449,543

TOTAL PROJECT FUNDING
Project Expenditures (to-date)
Advertising $115
ENGEO Incorporated (Design Professional Services Agreement) 82,580 Miscellaneous Expenses 43
TOTAL PROJECT EXPENDITURES $82,737
Antcipated Project Expenditures
ENGEO Incorporated (Design Professional Services Agreement ) $4,399 Frontline General Engineering Construction, Inc. - (Construction Contract)
284,950
Construction Project Contingency (Approximately 15%) 44,843 ENGEO Incorporated (Design Professional Services Agreement - Construction Support Services)
9,475
Geocon Consultants, Inc (Geotechnical and Inspection Services) 14,795 TOTAL ANTCIPATED PROJECT EXPENDITURES $358,463
TOTAL PROJECT EXPENDITURES $441,200
Funding Balance/ (Shortfall)
Current Balance $158,800

SASSAFRAS COURT STORM DRAIN INTERCEPTOR
$600,000
(FORMELY DESIGN AND CONSTRUCT STORM DRAIN)

Item #15

CITY COUNCIL AGENDA REPORT

June 16, 2026
Public Works - Utilities Division

TITLE: AUTHORIZE THE CITY MANAGER TO ENTER INTO AGREEMENTS WITH CORE & MAIN LP FOR THE WATER METER ADVANCED METERING

INFRASTRUCTURE (AMI) CAPITAL EXPENDITURE PROJECT IN AN AMOUNT NOT TO EXCEED $10,262,257 AND THE AMI OPERATION EXPENDITURE SERVICES IN AN AMOUNT NOT TO EXCEED $2,514,096, AND AUTHORIZE A

FIVE PERCENT AGGREGATE CONTINGENCY FOR THE WATER METER AND

ADVANCED METERING INFRASTRUCTURE REPLACEMENT PROJECT, CIP NO. 26137

SUMMARY
The City’s existing water meter and Advanced Metering Infrastructure (AMI) system has experienced widespread failures and has reached the end of its useful life. These failures have resulted in billing inaccuracies, increased water loss, higher maintenance demands, and rising operational costs. Public Works crews are currently replacing up to 300 failed meters per month, and approximately 4,000 meters have been replaced to date.

Replacement of the existing water meter and AMI system was identified in the City Council- approved Water System Management Plan (WSMP) and Water Financial Plan as part of the Enhanced Delivery Option. To support the implementation of this effort, the City retained Diameter Services, Inc. in early 2025 to evaluate the existing system, assess replacement options, and assist in developing a procurement strategy for a comprehensive replacement program.

In May 2025, the City Council approved a professional services agreement with Diameter Services, Inc. to prepare procurement documents and support the solicitation process for a new water meter and AMI system. Based on that work, the City issued a turnkey-style Request for Proposals (RFP) seeking a qualified firm to provide a reliable and integrated water meter and AMI replacement solution.

The RFP was issued on November 19, 2025. Following review of the three proposals received, Core & Main LP was determined to be the most qualified proposer based on the evaluation criteria identified in the solicitation, including qualifications, relevant experience, technical approach, system capabilities, implementation plan, compatibility with the City’s operating and billing systems, and overall value to the City.

Staff recommends that the City Council authorize the City Manager to execute an AMI Capital Expenditure Project (CPX) Agreement and an AMI Operations Expenditure (OPX) Agreement with Core & Main LP in amounts not to exceed $10,262,257 and $2,514,096, respectively, and authorize a five percent aggregate contingency for the project for fiscal year (FY) 2025/26 through FY 2029/30 for the CPX Agreement term and a twenty-year agreement term for the OPX Agreement.

RECOMMENDATION

1. Authorize the City Manager to enter into an AMI CPX Agreement for Goods and Services with Core & Main LP for the Water Meter and AMI Replacement Project in an amount not to exceed $10,262,257;

2. Authorize the City Manager to enter into an AMI OPX Agreement for Goods and Services with Core & Main LP, for the software services, network services, and future water meters purchases in an amount not to exceed $2,514,096; and

3. Authorize the Director of Public Works, or designee, to approve and execute change orders for the awarded agreements, subject to a total aggregate contingency amount not to exceed $513,113, which is equal to five percent of the total awarded contract amount.

BACKGROUND
In 2016, the City completed a citywide water meter replacement project, CIP No. 13116, which included installation of Diehl water meters and an associated Advanced Metering Infrastructure (AMI) system. Delta Engineering Sales, Inc. performed the improvements. The warranty period for the installed meters is scheduled to expire in June 2026.

Since installation, the system has experienced a high rate of meter failures. These failures have contributed to billing inaccuracies, increased water loss, and substantial staff time devoted to meter replacement and troubleshooting. City crews are currently replacing up to 300 meters per month, and approximately 4,000 meters have been replaced to date. With the warranty period nearing expiration and failure rates continuing to rise, continued reliance on the existing system is no longer operationally sustainable.

In early 2025, the City entered into an agreement with Diameter Services, Inc. to evaluate the current metering system and assess available replacement options. Diameter has more than 17 years of experience providing consulting services for water metering and AMI systems. The firm evaluated the City’s existing system, reviewed replacement alternatives, and worked with staff to identify a comprehensive and proven solution that would improve long-term reliability and operational efficiency.

In May 2025, the City Council approved a professional services agreement with Diameter Services, Inc. to assist with the preparation of procurement documents and support the City through the solicitation process. That effort resulted in a single turnkey-style Request for Proposals (RFP) for the implementation of a new water meter and AMI system.

DISCUSSION
On November 19, 2025, the City issued an RFP seeking a qualified firm to provide a comprehensive water meter and AMI replacement solution. The RFP was publicly advertised in accordance with the City’s purchasing requirements. Three proposals were received and evaluated using the criteria identified in the RFP, including qualifications, relevant experience, technical approach, system capabilities, implementation plan, compatibility with the City’s operational and billing systems, and overall value to the City. Based on that evaluation, Core & Main LP was identified as the most qualified proposer.

The proposed agreements support a citywide water meter and AMI replacement program intended to improve system reliability, reduce meter failures, support accurate billing, and strengthen long-term performance. Under the proposed agreements, Core & Main LP will work closely with City staff to implement the new system in a manner that aligns with the City’s operational needs.

This program will allow the City to replace its failing metering infrastructure with a modern, integrated platform that improves water-use measurement, customer billing, and access to reliable system data, while reducing manual intervention and ongoing maintenance demands.

Timely implementation will help limit operational issues and costs associated with continued failures of the existing system.

Kamstrup water meters use ultrasonic technology to measure water flow by sending ultrasonic sound waves through the water and calculating the time it takes for the waves to pass through.

This technology provides a high level of accuracy, and because the meters have no moving internal parts, they typically have a longer service life and require less maintenance. The meters include advanced data-logging capabilities that can help utilities track consumption patterns, detect leaks, and optimize system operations. These meters include a 15-year full warranty, prorated through the expected 20-year lifespan.

EQUITY AND SUSTAINABILITY
Reliable water metering infrastructure supports equitable delivery of utility services citywide by improving billing accuracy and reducing service inefficiencies. Replacement of failing meters will help reduce water loss, improve system efficiency, and support more sustainable water system operations.

OUTREACH
The RFP was publicly advertised on the City’s website, through BidNet Direct, and in the Valley Times.

Staff also reached out to the Zone 7 Water Agency on multiple occasions regarding the project and potential coordination opportunities.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the citywide ONE Pleasanton Strategic Plan Goal of Investing in Our Environment, including:
• Strategy 1 – Implement the five-year Capital Improvement Program (CIP) to complete the design and construction of budgeted projects; and
• Strategy 4 – Complete the Water System Master Plan to reflect current and future operations and identify system improvements and necessary maintenance.

FISCAL IMPACT
Funding for the Water Meter and AMI Replacement Project is programmed in the upcoming Capital Improvement Program under Water Meter and AMI System Replacement, CIP No. 26137, in the amount of $10,930,000.

The proposed AMI CPX agreement with Core & Main LP is in an amount not to exceed

$10,262,257 and will fund the capital project components of the citywide replacement program.

Funding for this agreement will be provided through CIP No. 26137.

The proposed AMI OPX agreement with Core & Main LP is in an amount not to exceed $2,514,096 and will cover software services, network services, and future water meter purchases not covered under warranty. The Agreement will extend for 20 years from the effective date of the Agreement. The annual hosting agreement will begin in FY2027/28, with a starting base of $106,484 and will incur an annual increase of 3.5 percent through the term of the agreement. Also, in FY 2027/28, there will be an additional cost of $61,205 for a trial of the leak detection software. Funding for the agreement will be provided through the Water Operations Budget 42040602-433155.

The proposed five percent aggregate contingency for change orders is $513,113. Funding for this contingency will be provided through CIP No. 26137.

Prepared by: Submitted by: Approved by:

Jeremy Cox, Utilities
Division Manager - Public
Works
Siew-Chin Yeong, Director of Public
Works

Acting City Manager

Attachments:

1. AMI OPX Agreement with Core & Main

2. AMI CPX Agreement with Core & Main

3. Financial Expenditure Summary

1 AMI OPX AGREEMENT FOR GOODS / SERVICES

FOR WATER METER REPLACEMENT & AMI SYSTEM PROJECT
RFP PWD 25.604

THIS AGREEMENT is made and entered into this __________ day of June 2026, by and between Core & Main LP ("Prime Contractor"), whose address is 3486 Investment Blvd. Unit A, Hayward CA 94545, and telephone number is (510) 244-5858 and the City of Pleasanton, a municipal corporation ("City").

In consideration of the mutual promises set forth in this Agreement, the parties agree as follows:

1. Work to be Performed. The work will generally consist of overseeing a turnkey delivery of an advanced water meters solution which includes the supply and installation of non-mechanical water meters and radio transmitters as well as an advanced metering infrastructure software and related training services.

The CONTRACTOR agrees to provide the personnel, software, materials, equipment and labor (hereinafter "work") necessary to perform the services described in PWD’s Request for Proposals #PWD-25.604 -Water Meter Replacement and AMI System Installation Project – CIP #26137 dated November 19, 2025 and issued by the City of Pleasanton, CA, and also in accordance with CONTRACTOR's Proposal dated January 12, 2026. A copy of said RFP (Exhibit G) and the CONTRACTOR’s Proposal and Supplemental Documents is attached hereto as Exhibit D incorporated herein by reference.

The restatement in this Agreement of any of the terms of said Specifications or Proposal shall not be deemed to waive any terms not so restated. In the event of any inconsistency or conflict in the contents of the following documents, such documents shall take precedence and govern in the following order:

a) Agreement For Goods / Services
b) Exhibit A: Scope of Work OPX (as negotiated)
c) Exhibit B: Price Form - OPX (as negotiated)
d) Exhibit C: Kamstrup North America Product Warranty Model with Warranty for Serial Defects
e) Exhibit D: C&M Response to Pleasanton dated January 12, 2026 f) Exhibit E: Request for Proposals #PWD-25.604 -Water Meter Replacement and AMI System Installation Project – CIP #26137
g) Exhibit F: READy License and Hosting Agreement US

2. Term. This Agreement shall commence on the date written above and will expire 20 years from that same date.

3. Core & Main’s Responsibilities. Core & Main shall provide all Work as described in this Agreement. Without limiting the generality of the foregoing, Core & Main shall maintain supervision of all its subcontractors. Any work or services beyond the scope of the Work Attachment 1

2 agreed to herein shall not be considered as part of this Agreement. There shall be no implied or verbal agreements between the Parties relating to the subject matter of this Agreement.

4. City’s Responsibilities. City shall be responsible for cooperating with Core & Main, providing accurate information in a timely manner, and making payment in a timely manner for Work performed. City shall designate a representative who will be fully acquainted with the Work and will be reasonably accessible to Core & Main and its subcontractors, and will have the authority to make decisions on behalf of City. City shall provide to Core & Main and its subcontractors all information regarding legal limitations, utility locations and other information reasonably pertinent to this Agreement and the Project. City shall be required to give prompt notice should it become aware of any fault or defect in the Project.

5. Default of City. The following events shall be considered events of Default of City : (a) The failure of City to make payments to Core & Main in accordance with the terms of this Agreement; (b) any representation or warranty provided by City that proves to be materially false or misleading when made; (c) City becomes insolvent, or makes an assignment for the benefit of creditors, or should a voluntary or involuntary petition in bankruptcy or a reorganization or any adjudication of City as insolvent or bankrupt be filed; (d) any failure of City to comply with or perform according to the terms of this Agreement or to correct such failure to perform within thirty (30) days of receipt of written notice from Core & Main.

If an event of Default by City occurs, Core & Main will have the right to cancel this Agreement and to terminate immediately all Work hereunder without further obligation except the City will be obligated to pay for Work performed through the date of termination..

6. Default of Core & Main. The following events shall be considered events of default on the part of Core & Main: (a) the failure of Core & Main to deliver its Work free and clear of any lien or encumbrance by any subcontractor, laborer, materialman, or other creditor of Core & Main; (b) Core & Main becomes insolvent, or makes an assignment for the benefit of creditors, or should a voluntary or involuntary petition in bankruptcy or a reorganization or any adjudication of Core & Main as insolvent or bankrupt be filed; (c) any representation or warranty (excluding a warranty as contemplated by Section 9 of this Agreement) provided by Core & Main that proves to be materially false or misleading when made, (d) any failure of Core & Main to comply with or perform according to the terms of this Agreement or to commence efforts to correct such failure to perform within thirty (30) days of notice from City, and thereafter diligently pursue correction. In the event of default by Core & Main, City will have the right to cancel this Agreement and to terminate immediately all Work hereunder without further obligation except the City will be obligated to pay for Work performed through the date of termination. Additionally, City will be entitled to recover the documented excess actual and direct costs of procuring the Work hereunder through alternate sources provided that City makes efforts to reasonably mitigate such actual and direct costs.

7. Force Majeure. Neither Core & Main nor City shall be responsible to each other for damage or delay that arise from Force Majeure, including but not limited to conditions beyond the reasonable control, and not the result of the fault of the impacted Party, including, without

3 limitation acts of God, storms, extraordinary weather, epidemic or pandemic, acts of government units, strikes or labor disputes, fire, explosions, thefts, vandalism, riots, acts of war or terrorism, non -price related unavailability of materials required f or the Project, and unavailability of fuel.

8. Taxes, Permits, and Fees. Core & Main shall be responsible for obtaining all permits and related permit fees associated with the Project. The City must disclose any known fees in advance of contract signing. City shall pay sales, use, consumer, and like taxes when applicable, as well as any tariffs relating to the materials to be provided hereunder. City shall be responsible for securing at its sole expense any other necessary approvals, easements, assessments, or required zoning changes. Core & Main s hall be responsible for all taxes measured by Core & Main’s income.

9. Compensation. Total compensation pursuant to this Agreement shall not exceed $2,514,096 for the term of this Agreement. During the proof-of-concept phase which will begin during FY 2026/27, the City will be obligated to pay for software and network installed amounting to $24,850 on a scheduled and quarterly basis beginning January 1, 2027. The annual OPX compensation will begin January 1, 2028, for FY 2027/28 with a starting base of $106,484.10 and will incur an annual inflator increase of 3.5% through the term of the Agreement. Also, there will be an additional cost of $61,205.38 for a trial of the leak detection software, this has been outlined in the Exhibit A Scope of Work OPX.

a. Payments shall be made strictly on a milestone and deliverable basis tied to successful completion of the work, as defined in Exhibit A Scope of Work OPX.

b. Payment shall not constitute acceptance of defective or nonconforming Work, nor waive any warranty or performance rights of the City.

c. The City may withhold payment for defective Work, unresolved claims, schedule delays attributable to Contractor, or failure to meet performance standards.

d. Upon completion of work and acceptance by City, Contractor shall have sixty (60) days in which to submit Approval Request Form as outlined in 1.6.6.2 of Exhibit A Scope of Work OPX. An extension may be granted by City upon receiving a written request thirty (30) days in advance of said time limitation. The City shall have no obligation or liability to pay any invoice for work performed which the Contractor fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.

e. If City determines that Contractor’s performance is not in conformance with the services and schedule of performance in Exhibits A and B, respectively, payments may be delayed or denied, unless otherwise in writing agreed to by City.

10. Changes. City may request changes in the scope of work/services to be provided by Contractor. Any changes related fees shall be mutually agreed upon between the parties and subject to a written amendment to this Agreement.

4 11. No Entitlement to Additional Compensation. Approval or denial of a proposed substitution shall not entitle the Contractor to additional compensation or adjustment to the Contract Time unless expressly authorized by the City in writing.

12. Indemnification. Contractor shall hold harmless, defend, and indemnify the City, its officers, and employees, against any and all claims, costs, demands, causes of action, lawsuits, losses, expenses or liability, including attorneys’ fees, to the extent caused by Contractor’s (includes Contractor’s employees, agents, or subcontractors) negligent act or omission, whether alleged or actual, regarding the work performed or caused to be performed pursuant to this Agreement and any amendments thereto. Contractor shall not, however, be obligated to indemnify Indemnitees from Claims arising from the negligence or willful misconduct of Indemnitees. This indemnification includes any claim that the materials or equipment provided under this Agreement, or any tool, article or process used, constitutes an infringement of any patent issued by the United States. This indemnification provision shall survive termination or cancellation of the Agreement.

13. Title and Risk of Loss. Title and risk of loss for materials and equipment will pass to City upon delivery to City at City’s location or such other location specified by City.

14. Insurance. During the term of this Agreement, Contractor shall maintain in full force and effect, at its own cost and expense, insurance coverages with insurers with an A.M.

Best’s rating of no less than A:VII. Contractor shall have the obligation to furnish City, as additional insured, the minimum coverages identified below, or such greater or broader coverage for City, if available in the Contractor’s policies:

a. General Liability and Bodily Injury Insurance. Commercial general liability insurance with coverage at least as broad as Insurance Services Office (ISO) form CG 00 01, with limits of at least $2,000,000 per occurrence, $4,000,000 general aggregate, and $2,000,000 products and completed operations aggregate for bodily injury and property damage. The policy shall provide that the City, its officials, officers, employees, agents, and volunteers are named as additional insureds using ISO form CG 20 10 (or equivalent) for ongoing operations, and for construction or service agreements, ISO form CG 20 37 (or equivalent) for completed operations and satisfactory to the City Attorney. The policy shall allow and be endorsed as primary insurance for work performed by Contractor and its subconsultants, and that no other insurance or self-insurance effected by City or other named additional insured will contribute to or be called on to cover a loss.

b. Automobile Liability Insurance. Automobile liability insurance coverage for owned, non-owned, and hired autos using ISO Business Automobile Coverage form CA 00 01 (or equivalent) with limits not less than $2,000,000 each accident. If the Contractor’s business/company does not own any automobiles, coverage for hired and non-owned autos shall be provided. The policy shall provide and be endorsed that the City, its officials, officers, employees, agents, and volunteers are included or named as additional insureds. The policy shall provide and be endorsed to include a

5 waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers.

c. Workers’ Compensation Insurance. Statutory Workers’ Compensation and Employer’s Liability Insurance shall be provided for all persons employed directly or indirectly by Contractor. The Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than $1,000,000 each accident, $1,000,000 by disease-policy limit, and $1,000,000 by disease-each employee. The coverage shall provide and be endorsed to include a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers. The requirement to maintain Statutory Worker’s Compensation and Employer’s Liability Insurance may be waived by the City upon written verification that Contractor does not have any employees.

d. Professional Liability Insurance. Professional liability insurance that insures against professional errors and omissions that may be made in performing professional services in the amount of $2,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of the start of work, and Contractor agrees to maintain continuous coverage through a period no less than three (3) years after completion of the work.

e. Certificate of Insurance and Endorsements. Contractor shall file a certificate of insurance and all required endorsements with the City prior to the City’s execution of this Agreement, and prior to engaging in any operation or activity set forth in this Agreement. The insurance afforded by this Certificate shall not be suspended, voided, canceled, reduced in coverage or in limits without providing notice to the named insured in accordance with policy terms. In addition, the insured shall provide thirty (30) days prior written notice to the City of any cancellation, suspension, reduction of coverage or in limits, or voiding of the insurance coverage required by this agreement. The City reserves the right to require redacted declarations page.

f. Adequacy of Coverage. City reserves the right to modify these insurance requirements/coverages based on the nature of the risk, prior experience, insurer, or other special circumstances, subject to Contractor’s consent, which shall not be unreasonably be withheld.

g. Defense Costs. Coverage shall be provided on a “pay on behalf of” basis, with defense costs payable in addition to policy limits. There shall be no cross liability exclusions. These provisions do not apply to Professional Liability.

h. Subcontractors. All subcontractors shall provide certificates of insurance to City for its approval prior to commencement of work. Contractor shall be responsible for the acts and omissions of its subcontractors in accordance with Section 12 (“Indemnification”).

6 15. Independent Contractor. The Contractor is an independent contractor retained by the City to perform the work described herein. All personnel employed by the Contractor, including subcontractors, and personnel of said subcontractors, are not and shall not be employees of the City.

16. Contractor’s Warranty. Contractor shall provide the City with warranties for Water Meters and AMI components as specified in the Scope of Work and as set forth in Exhibit C Kamstrup North America Product Warranty Model with Warranty for Serial Defects, including any work that may be required of Contractor consistent with the warranties.

17. Labor Code/Prevailing Wages. For any installation of Water Meters or labor required to support the AMI system, under the Scope of Work, Exhibit A under this Agreement is considered “public work” and prevailing wage laws shall apply to the Prime Contractor and their designated subcontractor(s). No less than the general prevailing rate of per diem wages, and not less than the general prevailing rate of per diem wages for holidays and overtime work, for each craft, classification or type of worker needed to execute the work under this Agreement shall be paid to all workers, laborers and mechanics, electricians, employed in the execution of the work by the Contractor or any subcontractor doing or contracting to do any part of the work. The appropriate determination of the Director of the California Department of Industrial Relations shall be filed at the City Clerk’s Office and available for inspection. Contractor shall post, at each job site, a copy of the prevailing rate of per diem wages.

To the extent applicable, Contractor or there designated Subcontractor shall comply with all requirements of the California Labor Code, including but not limited to, Labor Code sections: 1773.2 (regarding posting wage determinations at each job site); section 1776 (regarding the certification, maintenance, and availability for inspection of payroll records); section 1777.5 (regarding employment of apprentices); section 1810 (regarding a legal day’s work as 8 hours of labor); and section 1775 (regarding penalties for violations). The Contractor shall forfeit fifty dollars ($50.00) for each calendar day or portion thereof for each worker paid less than the stipulated prevailing rates for any public work done under the Agreement by it or by any subcontractor under Contractor

18. Certification re: Workers' Compensation. In accordance with Section 1861 of the California Labor Code, each contractor to whom a public works contract is awarded shall sign and file with the awarding body the following certification prior to performing the work of the contract: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract."

19. Department of Industrial Relations. Pursuant to Labor Code section 1771.1, the Bidder and its Subcontractors must be registered and qualified to perform public work pursuant to section 1725.5 of the Labor Code, subject to limited legal exceptions.

7 20. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed as follows:

To Contractor: ______________________ To City: City Manager ______________________ City of Pleasanton ______________________ P.O. Box 520 ______________________ Pleasanton, CA 94566

21. Conformance to Applicable Laws. Contractor shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Contractor shall not discriminate in the employment of persons or in the provision of work under this Agreement on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

22. Counterparts and Electronic Signatures. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with U.S. federal E-Sign Act of 2000 (15 U.S.

Code §7001 et seq.), California Uniform Electronic Transactions Act (Cal. Civil Code §1633.1 et seq.), or other applicable law) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

23. Ownership of Work.

a. City Data Ownership. All data generated by, collected through, or input into the AMI system by or on behalf of the City, including but not limited to meter readings, consumption data, customer account information, billing data, alerts, leak detection data, system logs, and any reports or analytics derived therefrom (collectively, “City Data”), shall be and remain the exclusive property of the City at all times. Contractor shall have no ownership interest in City Data. Contractor shall not use City Data for any purpose other than performing services under this Agreement without the City’s prior written consent. Contractor shall not sell, share, aggregate, de-identify, or otherwise exploit City Data for Contractor’s own commercial purposes or for the benefit of any third party.

b. Software License. The City acknowledges that the AMI software platform, source code, proprietary algorithms, and related intellectual property (collectively, “Vendor Software”) are and shall remain the property of Contractor or its licensors. Contractor grants the City a nonexclusive, non-transferable license to access and use the Vendor Software during the term of this Agreement, solely for the City’s municipal water utility operations. This license shall include all updates, patches, and upgrades provided during the Agreement term.

8 c. Project Deliverables. All project documentation, custom configurations, integration specifications, training materials, and other work product prepared specifically for the City in the performance of this Agreement (collectively, “Project Deliverables”) shall become the property of the City upon delivery. All Project Deliverables shall be delivered to the City upon completion or termination of the work under this Agreement. If any Project Deliverables are lost, damaged, or destroyed before final delivery to the City, the Contractor shall replace them at its own expense.

d. Confidentiality. Contractor shall keep all City Data and Project Deliverables confidential. Such materials shall not be used for purposes other than performance of services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent. Contractor’s confidentiality obligations with respect to City Data shall survive termination or expiration of this Agreement.

24. Handling of City Data. In the event of a termination of this Agreement, Contractor shall implement an orderly return of City Data in CSV , XML, or another industry-standard, non-proprietary format mutually agreed to by the parties, at no additional cost to the City.

Contractor shall complete the data return within sixty (60) days of the termination effective date, or such longer period as agreed in writing by the parties. During any period of service suspension or following notice of termination, Contractor shall not take any action to erase, delete, or otherwise render inaccessible any City Data for a minimum period of ninety (90) days after the effective date of termination, unless expressly authorized by City in writing. City shall be entitled to any post-termination assistance generally made available with respect to the Services, unless a unique data retrieval arrangement has been established as part of the Service Level Agreement (SLA), attached hereto as Exhibit ___. Contractor shall securely dispose of all City Data in all of its forms, including but not limited to cloud storage, local disk, removable media, backup systems, disaster recovery environments, and paper records, when requested by City.

Data shall be permanently deleted and shall not be recoverable, according to National Institute of Standards and Technology (NIST) Special Publication 800-88 or successor guidelines. Contractor shall require the same of any subprocessors or subcontractors who have had access to City Data. Certificates of destruction shall be provided to City within thirty (30) days of the destruction request.

Data Retention. During the term of this Agreement, Contractor shall retain all City Data for a minimum of 13 months hourly usage values and daily values for 5 years through the software platform. Contractor shall maintain automated backups at intervals no less frequent than every four (4) hours. All backup and disaster recovery data shall be stored exclusively on servers located within the United States and shall be subject to the same security, access, and confidentiality requirements as production data.

Data Location. All City Data, including production, backup, and disaster recovery copies, shall be stored exclusively on servers located within the United States. Contractor shall not transfer, process, or store City Data outside the United States without prior written

9 consent of the City. Contractor shall notify the City in writing at least thirty (30) days prior to any change in data center location or hosting provider.

25. Cyber Security Incident. In the event a. Security Incident (as defined below) occurs with respect to City Data, user accounts, or any component of the AMI system, Contractor shall:

a. Notification. Notify the City’s IT Director and designated City contact by telephone within twenty-four (24) hours of discovery of the Security Incident, followed by written notification within forty-eight (48) hours. The written notification shall include, to the extent known: the nature and scope of the incident, the categories and approximate number of records affected, a description of the measures taken or proposed to address the incident, and the identity and contact information of Contractor’s designated incident response lead.

b. Investigation and Remediation. Cooperate fully with City to investigate and resolve the Security Incident, including providing the City with timely access to all relevant logs, forensic analysis, and documentation. Contractor shall promptly implement all necessary remedial measures to contain, mitigate, and prevent recurrence of the incident.

c. Regulatory Compliance. Comply with all applicable breach notification laws, including California Civil Code §1798.82 (California Data Breach Notification Law) and any other applicable state or federal requirements. Contractor shall bear all costs associated with legally required breach notifications to affected individuals, including notification preparation, mailing, credit monitoring services (if applicable), and any call center support.

d. Post-Incident Review. Within thirty (30) days following resolution of the Security Incident, provide City with a written post-incident report that includes: root cause analysis, a timeline of events, actions taken to remediate the incident, and a plan for preventing similar incidents, including any changes to business practices, security controls, or system architecture.

e. Security Standards. Contractor shall maintain, at a minimum, SOC 2 Type II compliance and shall provide the City with a current SOC 2 Type II report annually.

Contractor shall conduct penetration testing at least annually by a qualified third party and shall share a summary of findings and remediation actions with the City upon request. Contractor shall maintain and follow a vulnerability management program that includes patching Critical vulnerabilities within fifteen (15) days, High vulnerabilities within thirty (30) days, and Medium vulnerabilities within sixty (60) days of discovery or vendor release.

f. Definition. “Security Incident” means any unauthorized access, acquisition, use, disclosure, modification, or destruction of City Data, or any breach or compromise of any system, network, or application used to store, process, or transmit City Data,

10 including but not limited to: data breaches, ransomware attacks, denial of service attacks, unauthorized system access, malware infections, and any incident requiring notification under applicable law.

30. Safety. Core & Main shall have the primary responsibility for all safety precautions and programs necessary to complete its Work associated with the Project. Core & Main agrees to comply with all applicable regulations, ordinances, and laws relating to safety.

It shall be the responsibility of City, however, to assure that the sites controlled by City at which Core & Main is expected to perform its Work are safe sites.

31. Hazardous Materials. The Project and the Work expressly excludes any Work of any nature associated or connected with the identification, abatement, cleanup, control, removal, or disposal of hazardous materials or substances. City warrants and represents that, to the best of City ’s knowledge, there is no asbestos or other hazardous materials in the Project premises in areas that Core & Main shall be required to perform work that in any way will affect Core & Main’s ability to complete the Project. If Core & Main is made aware or suspects the presence of hazardous materials, Core & Main reserves the right to stop work in the affected area and shall immediately notify City . It shall remain City ’s responsibility to correct the condition to comply with local and federal standards and regulations. City shall remain responsible for any Claims that result from the presence of the hazardous materials. City is responsible for proper disposal of all hazardous materials, including but not limited to lithium batteries.

32. Delays and Access. In the event of any delay, including but not limited to Force Majeure or delays caused by City , Core & Main will notify City in writing of the existence and nature of the delay. City and Core & Main will then mutually agree upon any new completion dates, and pricing or payment terms for the Work contemplated by this Agreement. Nothing in the foregoing sentence shall be deemed to relieve City from its obligation to provide Core & Main and its subcontractors reasonable and safe access t o facilities that are necessary for Core & Main to complete the Work.

33. Compliance. Core & Main and City will comply with all applicable laws, statutes, rules, regulations, ordinances, codes, and orders of any governmental bodies, agencies, authorities, and courts having jurisdiction.

34. Dispute Resolution.

(a) The Parties will attempt in good faith to resolve through negotiation any dispute, claim or controversy arising out of or relating to this Agreement. Either Party may initiate negotiations by providing written notice to the other Party, setting forth the subject of the dispute and the relief requested. The recipient of such notice will respond in writing within three business days from receipt with a statement of its position on, and recommended solution to, the dispute. Thereafter the Parties will attempt to resolve the dispute through negotiations conducted in good faith. If the dispute is not resolved by

11 these negotiations within 15 business days following the date of the initial written notice, the matter will be resolved in accordance with Section 18(b) below.

(b) The Parties agree that in the event any dispute between them relating to this Agreement is not resolved under Section 18(a) above, exclusive jurisdiction shall be in the trial courts located within the county of the State in which City has its principal office, any objections as to jurisdiction or venue in such court being expressly waived.

(c) All disputes arising out of this Agreement shall be governed by, and construed in accordance with, the laws of the State where City has its principal office, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State or any other jurisdiction) that would cause the application hereto of the laws of any jurisdiction other than the laws of the State.

35. Attorney’s Fees. In the event of any litigation between Parties hereto arising from or with respect to this Agreement, the Parties will each bear their own attorneys' fees and costs of the action.

36. Binding Effect. City and Core & Main each represent and warrant to the other that this Agreement has been duly authorized, executed and delivered by such Party and constitutes a legal, valid and binding agreement enforceable against such Party in accordance with its terms.

37. Modifications. This Agreement shall not be modified in any respect except by a written document signed and agreed to by both Core & Main and City.

38. Severability. Any term or provision found to be prohibited by law or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without, to the extent reasonably possible, invalidating the remainder of this Agreement.

39. Privacy. The Privacy Policy of Core & Main may be accessed at the following URL:
www.coreandmain.com/privacy-notice/.

40. Miscellaneous Provisions.

a. City may terminate this Agreement at any time by mailing a notice to Contractor.

Contractor shall be paid for that portion of work already completed by Contractor as approved by City.

b. Contractor acknowledges that time is of the essence regarding the performance of this Agreement.

c. Contractor shall not assign or transfer this Agreement.

12 d. If either City or Contractor waives a breach of this Agreement, such waiver shall not constitute a waiver of other or succeeding breaches of this Agreement.

e. This Agreement constitutes the entire understanding of the parties.

f. This Agreement may only be modified by a writing signed by the authorized representative of both parties.

g. Contractor covenants that it has obtained and will keep in effect during the term of the Agreement all certificates, licenses, including a City Business License, permits or the like required by any federal, state or local regulatory agency in order to perform the work under this Agreement.

41. Contractor shall comply with all federal, state and local laws, regulations and rules, including but not limited to applicable safety and environmental laws. Contractor shall bear full and exclusive responsibility for any release of hazardous or non-hazardous substances and disposal of hazardous wastes.

a. The Contractor will permit the City to audit, examine and make copies of all contracts, invoices, payrolls and other documents or data relating to this Agreement, except Contractor will not be required to provide access to information disclosing its margins. Such records shall be maintained for (3) three years from the date of final payment under this Agreement.

b. This Agreement shall be governed by the laws of the State of California, with venue for any action under this Agreement in Alameda County, California.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the date and year first above written.

CITY OF PLEASANTON CONTRACTOR

________________________ By: __________________________ Joseph Calabrigo, Interim City
Manager

Signature
__________________________

Print name
ATTEST:

Title: __________________________

_________________________ [If Contractor is a corporation, signatures must Jocelyn Kwong, City Clerk

comply with California Corporations Code §313]

13 APPROVED AS TO FORM:

By: __________________________
__________________________ Signature
Daniel G. Sodergren, City Attorney
__________________________

Print name
Title: _________________________

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 1

SCOPE OF WORK

BACKGROUND
The City of Pleasanton is seeking bids from qualified proponents to update/replace its existing AMI system and most water meters. The successful proponent will supply and install an AMI data collection network with City- wide coverage including AMI radio transmitters for all City accounts, fully-functional AMI meter data collection, analysis and meter data management software, associated training, and ongoing maintenance and support services including field services for data collectors. The City requires that the water meters and AMI radio transmitters be manufactured by the same vendor. The successful proponent will also replace or retrofit water meters as specified. The work shall be completed across the City’s water service territory. The AMI meter reading system requires functionality to support the City’s goals and objectives.

City Description:

Located at the “tri-valley” junction of the I-580 and I-680 freeway interchange and incorporated in 1894, Pleasanton is a community with a population of about 80,000 people in 24.2 square miles near the major business markets of Silicon Valley, San Francisco, and the Central Valley. Pleasanton supports a thriving business community ranging from software to biotechnology to professional services. Many businesses make their home in the nationally recognized Hacienda Business Park. In addition to these global leaders, there are nearly 600 downtown businesses and more than 29,000 households utilizing Pleasanton city services. The City of Pleasanton is organized into numerous departments and divisions, such as the Public Works Department, which is comprised of three divisions: Operations & Maintenance, Utilities & Environmental Services, and Engineering.

Public Works is responsible for the operations and maintenance of the City’s infrastructure (Water, Sewer, Storm, Streets, Parks, and Plazas), Fleet / Mobile Equipment, and Facilities.

Water System:

The City owns and operates a potable water system under a permit from the State Water Resources Control Board's Division of Drinking Water (DDW). The City serves potable water to approximately 22,000 customers through a water distribution system comprising approximately 330 miles of piping, 19 storage tanks, and 14 booster stations.

Customer Information System and Customer Portal
The City currently reads meters on an hourly basis and bills customers bi-monthly. The City splits billing into eight (8) billing groups, processing one group each week. Groups range in size from 2,200 to 3,400 accounts.

The City currently uses a Tyler Munis Enterprise ERP Customer Information System and a customer portal provided by Smart Energy Water (SEW).

Using the SEW portal, water customers can view their hourly, daily, monthly and bi-monthly water usage for the past two years.

DESCRIPTION OF OPEX
This OPX Scope of Work is intended to ensure the Kamstrup AMI solution remains reliable, secure, and fully functional over the life the contract at the costs outlined in Exhibit B Price Form - OPX attached as Exbibit B.

This Scope of Work defines the ongoing operational services required to sustain the system after deployment and includes the Contractor’s responsibility to provide a NaaS and a SaaS including the expected software uptime and availability and the on-going purchase of meters as required by the City of Pleasanton.

Exhibit A

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 2

TECHNICAL DEFINITIONS
In this document, where the following words appear with initial uppercase letters, they shall have the following meanings:
“AMI Network” includes data collection equipment (collectors connected to backhaul and repeaters if applicable) that is installed across the City of Pleasanton service territory or uses and existing data collection network from a third-party service provider.
“AMI Radio transmitter” includes the RF or cellular radio transmitter including terminal screws, wire, and backplates and mounting hardware.
“AMI Software” includes the software application that includes functionality related to a headend, meter data management, data lake, and meter reading applications as required to achieve the desired functionality. “AMI System” includes the AMI Software, MDM Software, AMI Network and AMI Radio Transmitter. “Area” is a group of work orders within a large geographic location that aligns with the City’s meter reading cycles. The Proof-of-Concept area will also be considered an Area. "Completion Milestone” refers to point of time where the Contractor meets a specific set is performance criteria as defined in this document.
“Contractor” refers to the collection of entities including the Contractor, subcontractors, suppliers, manufacturers, software providers, installation companies that comprise the submitted proposal. “Customer” means the property owner, property manager, homeowner or tenant of a property that owns or resides in a property that has a City water meter.
“Hosted Software” is AMI Software that is licensed and dedicated to the City, is accessible through a web browser and is hosted in an American based data center. “Meter as a Service” (MaaS) is an AMI model where the Contractor takes full responsibility of network performance over the life of the system from meter to data collection software including installation, meter, radio transmitter and network equipment ownership in exchange for a monthly fee and no upfront fees. "MDM Software” the meter data management software application that allows long term hourly consumption to be stored, viewed, queried from that is a stand-alone application or a module of the AMI Software. “Meter Installation System” is the Contractor’s installation software application that allows for digital work order, account and work tracking, Customer contact tracking, appointments, quality assurance and City web access to reports and City data.
“Network as a Service (NaaS)”. Turns the responsibility of data collector performance, uptime and data backhaul over to the Contractor while delivering AMI Software through a SaaS. “Payment Milestone” refers to the point of time where the Contractor may request City acceptance that allows the Contractor to invoice for a percentage of software, implementation, and mobilization services. “Production Schedule” refers to the forecasted and actual installation by water meter size, reported and updated weekly for the duration of the project.
“Project” means and includes all services, software and products associated with the implementation of the AMI System.
“Project Manager” means the Contractor’s local and on-site main point of contact for all project related matters.
“Read Success Rate” means the performance measure for a group of radio transmitters to achieve Installation Complete.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 3

“Service Level Agreement (SLA)” defines the Contractor’s obligation to maintain continuous operation of the AMI network infrastructure (including collectors and AMI Software) and to ensure agreed-upon uptime for the AMI network, AMI Software and the associated interfaces. “Software as a Service (SaaS)” is software that is provided to the City through a subscription, is accessible through a web browser and is hosted in an American-based data center. “Substantial Performance” marks Completion Milestone 4, as defined in 1.6.4 of this Scope of Work. “Solution” includes all services, software and products that are included in the Meter Installation System, AMI Network, AMI Software, AMI radio transmitter and water meter products. “Standard Specifications and Details” refers to the published City engineering standards available at https://www.cityofpleasantonca.gov/assets/ourgovernment/public-works/engineering/standardspecifications- and-details-July 2024.pdf.
“Time” all references of Time in the products, services and software shall observe Pacific Time. “Total Performance” marks Completion Milestone 5, as defined in 1.6.4 of this Scope of Work. “Use Case” refers to a specific situation in which a product or software application could potentially be used. “Work Order” refers to the digital reference number associated with the water meter location where the installation Contractor will perform work at.

Acronyms
Acronym Definition
AISI American Iron and Steel Institute
AMI Advanced Metering Infrastructure
AMR Automatic Meter Reading
ANSI American National Standards Institute
API Application Programming Interface
AWWA American Water Works Association
CIS Customer Information System
CO Change-Out
CPI Consumer Price Index
CSV Comma Separated Value
DCU Data Collection Unit (aka: Data Collector)
DDP Delivery Duty Paid
DMA District Metered Area
EJCDC Engineers Joint Contract Documents Committee
EULA End User License Agreement
FCC Federal Communications Commission
FDD Functional Design Document
FOB Freight on Board Destination, Freight Prepaid and Allowed FTP File Transfer Protocol
FUAT Final User Acceptance Testing
ICI Industrial, Commercial & Institutional (3” and greater) (aka: Large Meters)

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 4

ID Identification
IM Intermediate Meter (1.5” – 2”) (aka: Small Commercial Meters) IUAT Initial User Acceptance Testing
LL Lay Length
LM Large Meter (3” and greater) (aka: Industrial, Commercial & Institutional Meters) LOS Level Of Service
LOV List Of Values
MDM Meter Data Management
MIS Meter Installation System
NaaS Network as a Service (includes the capital and operation cost of an AMI network).

NSF National Sanitation Foundation
PCRC Police Criminal Records Check
PM Project Manager
POC Proof Of Concept
QA Quality Assurance
RF Radio Frequency
RFP Request For Proposals
RMA Return Material Authorization
RSR Read Success Rate
SaaS Software as a Service
SLA Service Level Agreement
SM Small Meter (5/8” to 1”) (aka: Residential Meters)
SME Subject Matter Expert
T&C Terms and Conditions
UAT User Acceptance Testing which will include both IUAT and FUAT WCB Worker’s Compensation Board
WO Work Order
WT Work Type
XML Extensible Markup Language
Table 1 - Acronyms and Definitions

DESCRIPTION OF DELIVERABLES

1. PROJECT OVERVIEW

1.1. High Level Overview
Contractor is providing a solution that includes the following components:

A. Product and Software Representative

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 5

• Provide main point of contact between the City and Kamstrup.

B. AMI Components and Meters from the same manufacturer including:

C. Advanced Metering infrastructure AMI System including:
• AMI radio transmitters
• Headend software
• Meter data analytics MDM Software
• Supply and installation of data collection equipment (as necessary) • Interface development and software implementation service • System wide training
• Ongoing Maintenance and Support for software and network D. Supply of water meters
• Supply of non-mechanical water meters for project requirements E. Installation services including:
• AMI data collection equipment installation (as necessary)

Priorities for the project include completion of a rigorous Proof of Concept; timeliness to minimize disruption to City Customers; and support for a smooth and manageable transition from existing City data collection processes to new processes.

1.2. Project Management

1.2.1. Product Representative
The City requires the Supply Contractor to provide a high level of customer service. The Supply Contractor shall assign a single product representative who will be the main point of contact for all product and order-related questions. This person shall be very knowledgeable about the products being delivered. The Supply Contractor representative shall be available during normal business hours (Monday to Friday, excluding Canadian statutory holidays, 8:00am to 4:00pm local time). The Supply Contractor shall return calls or e-mails from the City within 24-hours of receipt. The Supply Contractor shall assign a backup person when their Product Representative is not available (e.g., vacation).

1.2.2. On-going Subject-Specific Meetings
The Contractor shall attend ad hoc (as the subject and project phase requires) subject-specific product, AMI network or software support meetings. The City and the Contractor must come prepared with the appropriate Subject Matter Expert(s) (SME) and materials to ensure the meetings are efficient and productive. These meetings shall be held as long as the City feels it is necessary. The subjects where subject-specific meetings may be required include those described in 1.1 above.

1.2.3. Other Meetings
The City or the Contractor may request meetings that are related to a specific topic, as required.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 6

1.2.4. Read Success Rate
The Contractor will calculate and maintain Read Success Rate (RSR) as the key performance indicator to measure the overall system performance that includes all components of the solution. The AMI network will perform at the following levels:
• Confirmed that each individual radio transmitter has been heard through the network and its reading is visible through the headend software.
• Confirmed within the headend software to have received at least 98.5% of hourly readings over a 30-day (calendar) period for each installation; and
• The installation information has been transferred, accepted, and successfully uploaded into the City’s CIS system.

1.2.5. Acceptance
Acceptance is defined as the City's written acknowledgment that a component of the Work has been completed and ready to be invoiced. The Contractor shall invoice the City for products, software, and services once the City has accepted them in writing in accordance with the Acceptance Categories as defined below.

1.2.5.1 Acceptance Categories
The following Acceptance Categories reference specific line items within the Financial Workbook.

A. Supply and Install Equipment – the City shall deem the Supplied and Installed Equipment as accepted once the Contractor provides evidence of the Work Order associated with the equipment having achieved the Installation Complete (refer to section 1.6.2.1.A) state. Acceptance shall be given by the group of installations performed monthly.
a. For Data Collection Equipment, the Contractor shall have tested to verify that the radio transmitter readings can be collected, confirm the backhaul is operating, and that readings can be transferred to the AMI Software.

B. Software - Software acceptance will be achieved once the City confirms the Contractor has achieved the following Payment Milestones:

C. Support, Maintenance & Subscription - Hosted software, Software as a Service (SaaS), and AMI Network Services will be considered accepted by the City once the Contractor provides required access to the software or service and requests acceptance from the City at the beginning of the subscription period starting January 1 of the calendar year. Where the annual software subscription, license or service is based on the number of meters read through the network, the calculation shall be performed at the beginning of the subscription period.

D. Supplied Equipment - shall be deemed accepted once the Contractor supplies the equipment and the City acknowledges receipt and inspection of the equipment.

1.2.5.2 Approval Request Form
The Contractor shall supply the City with an Approval Request ("AR") Form along with all documentation that allows the City to properly evaluate whether a component or group of components supplied and/or installed has been completed. An AR shall be provided to the City for the following items, at minimum:

A. Invoices.

B. Completion of Areas.

C. Substantial and Total Performance.

D. User Acceptance Tests (IUAT and FUAT).

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 7

E. Approvals for work.

F. Change orders.

Each AR Form shall include at a minimum the following:

G. Unique identifying number for document reference.

H. Date of submission, previous submission history and date of approval.

I. Project name and reference number.

J. Name and signature of the Contractor’s Project Manager.

K. Description of work the Contractor is requesting Acceptance on.

L. Supporting documents as may be required by the City.

M. Description of approval / corrective action required.

The City shall review all submitted AR Forms within fifteen (15) business days of receipt and provide one of the following responses:

N. Acceptance Approval: The City accepts the Work detailed.

O. Conditional Approval: The City accepts the Work detailed, but the City has provided some additional actions the Contractor shall perform to complete the Work. Conditional Approval may or may not hold up payment.

P. Acceptance Not Approved. The City rejects the Contractor’s request for acceptance. This will not allow the Contractor to proceed to invoice for the work detailed on the AR Form.

1.3. Integration and Testing Process

1.3.1. System Architecture Diagram
The Contractor shall develop a system architecture diagram that includes all proposed systems and interfaces that connect to the existing City systems.

1.3.2. Interface Development Steps
The Contractor and the City shall work together through the following steps for each proposed interface:

A. Business Requirement Gathering Meetings: The Contractor shall develop and lead a series of business requirements gathering sessions that will identify the required scope and any functional alternatives that may be available. The Contractor shall document the outcomes and decisions that will allow the development of the Functional Design Document.

B. Functional Design Document (FDD): The Contractor and the City shall document all fields of data that will be passed between systems, how data will be passed, the frequency with which it will be passed, detail the list of acceptable values of each system, detail any data validations performed prior to or during data transfer, and define any conditions and triggers that will initiate an action through the interface. The FDD must include field-level mapping, data validation rules, error handling procedures, and security requirements (e.g. encryption standards for data in transit and at rest). The FDD document for each interface shall be signed off on by all parties (including City IT), agreeing that the documents represent the required functionality for the specific business function. It is expected that the FDD process will go through numerous reviews and a minimum of three (3) weeks of testing.

C. Interface Development: The Contractor and the City shall develop their respective sides of all interfaces based on the required details in the approved FDD document. It is expected the interface development step shall take six (6) weeks from the approved FDD document.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 8

D. Integration Testing: The Contractor and the City shall perform integration testing which shall be completed once the City and the Contractor have completed the initial development of both sides of the interface. This testing shall validate the files can be exchanged and consumed using the layouts and formats described in the FDD. Testing shall also include performance under load, error recovery capabilities, and security (e.g., unauthorized access attempts). Test plans shall include simulated failure scenarios. Integration testing is expected to take approximately three (3) weeks. Any defects found shall be documented and resolved. Where required the FDD document shall be updated and reissued.

E. Initial User Acceptance testing: With the support of the Contractor, the City will perform the Initial User Acceptance Testing (IUAT) on the City's test systems and will have as many Use Cases as required to test and validate all functionality of the systems and interfaces. The City will be responsible for coordinating and documenting the results and any deficiencies identified with the Use Cases. The Contractor and the City shall be responsible for redevelopment and adjustments based on the results of the Use cases. The IUAT is expected to take three (3) weeks. Any defects found shall be documented and where required the FDD document shall be updated and reissued.

F. End to End Test: With the support of the Contractor, the City will perform an end-to-end test that will validate all interfaces are working as intended and the City is able to properly bill for water for all sizes of water meters. End-to-end testing will include Tyler Munis billing cycle processing, customer portal updates, and any other downstream systems that rely on AMI data to confirm true operational readiness. The end-to-end test is expected to take three (3) weeks.

Development of all the interfaces may not start at the same time. Documentation, development, or testing work may overlap with each other. The Contractor shall allow two (2) to four (4) weeks of redevelopment in addition to the timelines laid out above.

1.3.3. System and Interface Requirements
At a minimum, the Contractor shall perform and support the interface development steps of the following interfaces with the detailed functionality. All integration work is included in scope and cost, including the joint end-to-end testing of billing processes prior to go-live. Where the solution includes additional required interfaces or function0ality not detailed, the Contractor shall include it within the base proposal. All integrations should support secure authentication between systems (e.g., certificate-based or tokenized access).

1.3.3.1 MUNIS to AMI Software
The Contractor shall establish a file transfer that is acceptable to the City. The data interface shall include the following types of functionalities:
a. On-cycle meter reading requests: where all locations within a billing cycle will be scheduled to be read. b. Off-cycle meter reading request: that will request a single location will be scheduled to be read. c. Configuration files that will install a new meter and radio transmitter or make changes to an existing meter and radio transmitter ensuring the consumption is associated with the correct property.

1.3.3.2 AMI Software to MUNIS
a. On-cycle meter reading response: the response to the on-cycle read request. The system can provide a reading based on the last X (City defined) days reading. b. Off-cycle meter reading response: the response to the off-cycle read request. The system can provide a reading based on the last X (City defined) days reading.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 9

1.3.3.3 AMI Software to Smart Energy Water (SEW) Customer Portal The Contractor shall establish a near real-time API interface between the AMI software and the City’s SEW customer portal. The Contractor shall work with the City’s selected CEP application provider to develop a data Interface between the AMI Software and the SEW portal. This shall include business requirements meetings, development of the Interface and support of the Interface testing. The interface must support regular updates of hourly consumption data.

1.3.4. Type of Data Transfer
The Contractor shall support both secure file and API data transfers, with preference for the use of APIs, where feasible. File format will be defined during the project start-up phase.

SFTP with encryption in transit (SSH-based) is adequate for batch data transfer. The City requires that SFTP connections use key-based authentication and not password-only. All file transfers shall meet minimum encryption standards (e.g., SFTP with AES-256, TLS 1.2+). Data at rest on the SFTP server should also be encrypted. Contractor is to provide IP whitelisting options.

Contractor will post daily files to the SFTP site and must define the file posting schedule (ie. time of day), file naming conventions, validation rules and provide documentation of file formats prior to project kick-off.

Contractor must also provide monitoring/alerting if daily files fail to post. City will post return files to the same SFTP site. Coordination between Contractor and City during project kick-off to establish file exchange protocols will be required.

Contractor shall deliver complete file layout/format specifications — including required fields, data types, field lengths, naming conventions, validation rules, and sample files — no later than thirty (30) calendar days prior to the start of data exchange testing. City shall have a minimum of thirty (30) calendar days from receipt of final specifications to develop and test the required export processes from the City's Tyler Munis system.

Any changes to file format specifications after go-live shall require thirty (30) calendar days' written notice from the initiating party. No format changes shall take effect until both parties have confirmed successful testing.

Detailed data transfer specifications are set forth in Appendix [A] — Data Transfer Specifications, which is incorporated below.

1.3.5. User Acceptance Testing

1.3.5.1 Testing Plan
When changes to the system are completed, the Contractor shall develop and submit a testing plan for Integration Testing, Acceptance testing for the City’s review and approval by City team members from IT and Utilities. The testing plans shall include roles/responsibilities for defect resolution, retest procedures, acceptance criteria for functional and security testing, and timelines of all development steps discussed above.

Test plans shall establish documentation and communication protocols, define a detailed list of Use Cases for each scenario that will need to be tested and what the expected result should be. A Use Case shall be deemed passed if the actual results match the expected result. Test plans shall include security, role-based access control, logging/audit functions, in additional to functional correctness. City team members will review the submitted testing plan and add any Use Cases that are missing or require more detail. The test plan will be submitted for initial review two (2) weeks after FDD approval and will be approved prior to Integration testing to begin.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 10

1.3.5.2 Testing and Staged Deployment
The Contractor utilizes a staged release approach for software updates, patches, and configuration changes.

Updates are first validated through internal testing and limited pilot deployments with a small number of customers. Following successful pilot results, deployments are rolled out incrementally to additional customer groups. Testing during each stage focuses on impacted functionality and critical system operations. This approach is applied throughout implementation and ongoing operations and supports risk mitigation while minimizing operational disruption. Emergency or critical updates follow an expedited testing and deployment process appropriate to the nature of the change.

For deployments to the City's production environment, the Contractor's testing shall include verification of integration interfaces including file transfer, API integration, and AMI head-end read collection. The Contractor shall provide the City with advance notification of planned production deployments. For emergency or critical security updates, the Contractor shall notify the City as soon as reasonably practicable.

1.3.5.3 Specific User Acceptance Test Requirements
The UAT shall test each type of radio transmitter, data collector and meter encoder, all interfaces, handheld workflows, and the AMI Software.

The UAT shall include the following components:

A. Test all interfaces that transfer data from the different software.

B. Test each water meter manufacturer, type, and size with the different models of radio transmitters (if applicable).

C. Test that all billing multipliers are set up and producing the correct consumption from the MIS (completed installations start readings) and the AMI Software. All should display the full eight-digit resolution.

D. Test individual request reads, and on-cycle request reads.

E. Test all standard and custom reports.

F. Test the handheld workflows for all types of meters and radio transmitters.

G. Test all data collection equipment, software monitoring capabilities, and redundancy reports.

H. Test maintenance issues including cut wire, incorrectly programmed radio transmitter, backward meter, continuous leak flags, etc.

I. RSR verification and reporting.

J. Simulated failover test (e.g., loss of connection to Tyler Munis, AMI head-end, or MIS system) and recovery process to ensure no data is lost or corrupted.

1.4. Training

1.4.1. Training for Billing and Customer Service Personnel The Contractor shall provide the City staff with on-line product and software training at no additional cost to the City’s billing and customer services personnel. The training shall be conducted on-site at a City provided boardroom unless remote training is approved by the City. The Contractor shall provide initial training for the software and be prepared to offer refresher training. The Contractor shall provide a detailed agenda at least 2 weeks prior to the training and come prepared with full color training materials for all City attendees. Trainers shall come prepared with adequate product and software access, knowledge, and expertise.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 11

The Contractor shall provide City billing and customer service staff with the appropriate training on the AMI Software, focused on using the software for their particular work. Training will be provided as requested and required by the City.

1.4.2. Training for City Metering Staff
The Contractor shall provide hands-on training to the City’s metering staff (internal or external). The Contractor shall bring products that can be disassembled and reassembled. The training shall include a complete understanding of the products, how to install the product, how to disassemble and assemble the products, how to program the encoder registers, and how to troubleshoot problems found in the field with the product. The City and its representative will work with the Contractor to establish the training agenda.

1.5. Product Support Requirements
This section pertains to the products and services that will be supplied to the City both during the project and after it is complete. The City intends on using the product support requirements to establish a service level agreement related to product support for the life of the system.

1.5.1. Project Support
The Contractor shall provide a high level of support to the City during the project, including the following support: a sales representative, ordering support, product expertise, product training, warranty returns, on-time product shipment, on-site problem investigation (when and as required), and teleconference and on-site meeting attendance.

1.5.2. Product Representative
The City requires the Contractor to provide a high level of customer service during and after the project. The Contractor shall assign a single product representative who will be the main point of contact for all product and order-related questions. This person shall be very knowledgeable about the products being delivered. The Product Representative shall be available during normal business hours (8:00am to 4:00pm local time). The Contractor shall return calls or e-mails from the City within 24-hours of receipt. The Contractor shall assign a backup person when their Product Representative is not available (e.g., vacation).

1.5.3. Product Ordering
After project completion, when additional product is required, the City shall issue a purchase order. Upon receipt of the purchase order, the Contractor shall e-mail confirmation that the order has been received and confirm the promised delivery date within 48 hours of receipt of the purchase order through email.

1.5.4. Product Delivery Duration
The Contractor shall ensure that all products will be received within twelve (12) weeks of receipt of the City's order. Where a particular product requires a longer lead time, the Contractor shall clearly indicate the lead time for the products. All products are to be DDP Destination.

1.5.5. Product Delivery
The Contractor shall ensure that all products supplied to the City (for the City’s purpose) are shipped to a location of choice as directed by the City. The Contractor shall ensure all deliveries are delivered by a company that will call ahead before delivery, as well as always have the necessary equipment to deliver the product to ground level.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 12

1.5.6. Partial Shipments
The Contractor shall deliver all products and quantities detailed on the purchase order. No partial shipments will be allowed without prior written consent of the City. Any partial shipment received without prior approval will be returned to the Contractor at their cost.

The Contractor shall only invoice for products delivered and accepted by the City.

1.5.7. Late Shipment Damages
The Contractor shall deliver acceptable products in the quantity requested on-time. The Contractor shall be responsible for all actual and reasonable costs associated with any delays in delivery. Rejection of shipments due to product acceptance or partial shipment are still the cause for late shipment damages.

The City will be the main point of contact and will have the final decision on any delay claims.

1.5.8. Digital Meter File
With every product delivery, the Contractor shall provide an electronic file (in a format approved by the City) that should include the following information about the delivery:

A. Purchase order
B. Manufacture date
C. Ship date
D. Expected End of Life / Warranty date
E. Product Details including:
a. Water meter type
b. Water meter size
c. Water meter serial numbers
d. Water meter test results (at minimum: high medium & low flows) e. Water meter register type
f. Water meter register ID number
g. Water meter register visual digits
h. Water meter register transmitted digits
i. Water meter register decimal location in remote transmission j. Manufacturer test results - including high, medium, and low flow k. Radio transmitter model
l. Radio transmitter ID number
m. Radio transmitter type/configuration (e.g., wall, pit) F. Product ID numbers (product serial number, register number) G. Product reference number as determined by the City

1.5.9. Product Investigating and Testing
The Contractor shall ensure end-to-end compatibility of meter and AMI technology. Where there are issues with reading the water meter encoder protocols, the City may request the Contractor provide on-site or factory testing of all products. The Contractor shall at its own cost, provide expert on-site product support within one week of the City’s request. The Contractor shall provide field investigations where the City determines that

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 13

these are necessary to resolve the product issues or compatibility between products. The Contractor shall be responsible for all costs associated with compatibility concerns between the proposed radio transmitters and the proposed water meter encoder register.

1.5.10. Return Merchandise Authorization (RMA)
The Contractor shall provide the City with a documented RMA process that will allow the City to return products for warranty purposes. The RMA process shall include an on-line tracking process by serial number of the product being evaluated. The Contractor shall evaluate the returned products as qualifying for warranty within eight 8 weeks. If the product is not assessed within this period, the City reserves the right to reduce payment against a future invoice in the amount of the product returned.

1.5.11. Post Project Support
The Contractor shall continue to provide sales, ordering support, product expertise, annual product training, warranty returns, on-time product shipment, and problem investigation after completion of the project.

The City and the Contractor will negotiate a reasonable product support service level agreement based on the provisions within this agreement. The Product Support Service Level Agreement (SLA) shall ensure the City is supplied with products and software for the 20-year life of the system so that the City can continue to operate the AMI solution for the 20-year life of the system. All prices negotiated shall be in American dollars. This SLA shall be renewed annually and will begin after Completion Milestone 5 is achieved.

1.6. First Year Deployment Schedule and Application of SaaS Fees The following schedule will apply for SaaS payments during the period of meter deployment.

Meter Installation
Start Date End Date Quantity Rate Extended Price Date of Invoice 1-Jun-26 31-Dec-26 5,000 $ 2.84 $ 14,200.00 1-Jan-27 1-Jan-26 31-Mar-26 5,000 $ 2.13 $ 10,650.00 1-Apr-27 1-Apr-27 30-Jun-26 5,000 $ 1.42 $ 7,100.00 1-Jul-26 1-Jul-26 30-Sep-26 5,000 $ 0.71 $ 3,550.00 1-Oct-26 1-Oct-26 31-Dec-26 2,202 Included in full quantity for invoicing in January 2027 1-Jan-27 31-Dec-26 22,202 $ 2.84 $ 63,053.68 1-Jan-27

2. AMI SYSTEM SPECIFICATIONS

2.1. AMI System
The AMI System includes all products, software, implementation, and training services to effectively stand up the AMI System. Optionally, the AMI System may consist of a Network as a Service which may leverage an existing third-party network such as cellular. The AMI System includes (as applicable) the AMI radio transmitters, data collection equipment, AMI Software (headend and MDM), handhelds, programming equipment, interfacing, configuration, training services and security of the AMI network including the LAN, WAN, and network servers.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 14

2.2. AMI Radio Transmitter Specifications

2.2.1. Federal Communications Commission (FCC) Approvals All components of the meter reading system shall be FCC approved, where appropriate. The Contractor shall obtain licenses on behalf of the City for all components of the AMI system which require a licensed frequency.

The Contractor shall disclose all costs associated with obtaining the appropriate FCC licenses to operate the AMI system. The Contractor shall be responsible for any non-disclosed costs. The City will pay the costs of the licenses; however, these costs shall be included in the Proposal when required and appropriate. The City will not be responsible for any delays associated with obtaining the license or working in conjunction with the FCC.

2.2.2. General
Each radio transmitter shall include all materials and equipment to ensure the product can be installed appropriately. This includes but is not limited to a minimum of 5 feet of 19-gauge 3-conductor wire, wiring connectors, back plates, mounting equipment, screws, and radio transmitter seals.

For each AMI radio transmitter, the Contractor shall include all materials and equipment to ensure the product can be installed appropriately. This includes but is not limited to minimum of 5 feet of 22-gauge 3-conductor wire, wiring connectors, back plates, mounting equipment, screws, and radio transmitter seals. The Contractor shall ensure that the pit set radio transmitters shall either be potted directly to the water meter encoder register or a wire connector (Nicor, or approved equivalent). Integrally mounted radio transmitters are accepted assuming they meet the RSR requirement.

2.2.3. Environmental Requirements
The radio transmitters shall be capable of operating in harsh environments, with an operating temperature range of -22°F to 149°F and relative humidity of 0% to 100%. The radio transmitters shall be manufactured with an Ultraviolet (UV) protective material, fully submersible version of the radio transmitter.

2.2.4. Encoder Compatibility
The Contractor is required to provide radio transmitters that can read, transmit and display (in the AMI Software) nine (9) digits of reading resolution for the proposed meters on an hourly basis. The City intends to test compatibility of meters during the IUAT.

The radio transmitter shall also be approved to read the following meter manufacturer encoder register products as programmed and currently in use at the City:

A. Elster EvoQ4
B. Kamstrup FlowIQ
C. Sensus OMNI
These meters are already equipped with factory-potted Nicor Series III connectors.

2.2.5. Enhanced Encoder Features
The Contractor shall provide radio transmitters able to read and transmit all enhanced water meter encoder flags available on the proposed Kamstrup meter (low battery, empty pipe, pressure, temperature, etc.). The Contractor shall test and validate the radio transmitter can read this data during the startup phase.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 15

2.2.6. Radio Transmitter Mounting options
Nearly all the City’s meter box lids are RF-friendly Armorcast polymer concrete lids. Please see Appendix A of this Scope of Work for meter box lid specifications.

The City’s preference is to maintain its existing meter box lids and not change them as part of this project. The Contractor should plan to mount Radio transmitters below the existing meter box lids. If this is not possible for RF propagation or incompatible mounting reasons, the Contractor should propose the appropriate lid replacements or modifications to best suit the proposed AMI solution and meet the RSR requirements established herein. All lid replacements or modifications must be included in WB-C Financial Workbook. The City will accept AMI solutions where the radio transmitter is mounted integrally to the meter register provided it meets the RSR established herein.

The Contractor’s radio transmitter mounting solution shall conform to the following:
• No locking mechanism is allowed, the weight of the lid shall be sufficient to keep the lid in place • Any "through-the-lid" antenna shall be installed to comply with the Americans with Disabilities Act (ADA) Accessibility Standards, Section 303 for vertical changes in level. Changes in level of 1/4 inch (6.4 mm) high maximum shall be permitted to be vertical. Changes in level between 1/4 inch (6.4 mm) high minimum and 1/2 inch (13 mm) high maximum shall be beveled with a slope not steeper than 1:2. • The submittal document for the proposed lid model(s) should include the coefficient of friction value, confirmation of AASHTO H20 vertical loading, and the anti-slip rating. • The Radio Transmitter shall be secured to the lid to avoid damage to the device when removing the lid • If drilling an existing lid is proposed, the Contractor shall provide an engineering stamped confirmation that the integrity of the lid will not be impacted.
• All AMI Radio Transmitter mounting equipment shall be provided by the Contractor

2.2.7. Radio Transmitter Labelling
The Contractor shall ensure radio transmitters include a weatherproof label on the side of the device that includes the name of the manufacturer, model, version, firmware references, the date of manufacture, the part number, appropriate FCC certifications, and a unique Identification (ID) number that is both numeric and barcoded (Code 39 or approved equivalent) that allows the ID number to be read by a digital work order system.

The label shall be able to remain attached to and readable in a submerged environment.

Where there is an outside cover, the Contractor shall ensure this information is included on the outside cover and inside device itself.

2.2.8. Wire and Connectors
The Contractor shall ensure radio transmitters have 22-gauge 3-conductor solid wire potted lead with a wire connector device installed at the time of manufacture. Between the AMI Radio Transmitters and the water meter register there should be a minimum of 5 feet of wire to allow for the meter box lid to be removed.

The Contractor shall supply a wiring connector device that is a certified IP68 connection, tamper proof and can be connected and disconnected without having to cut the wire or break the connector device. There shall be no manual connections (e.g. gel caps) and there must be consistency among connectors across all meter brands.

Wiring connectors must be fully compatible with the Nicor Series III connectors present on existing Elster EvoQ4, Kamstrup FlowIQ, and Sensus OMNI meters that will remain in the field as identified in 2.2.4, above.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 16

2.2.9. Read and Transmission Frequency
At a minimum, the Contractor shall provide radio transmitters that read the water meter encoder register at least every 60 minutes. The Contractor shall ensure that the radio transmitter transmits all readings at least once every 24 hours.

2.2.10. External Antenna
Where the AMI Radio transmitter uses an external antenna, the Contractor shall ensure that any portion of the antenna exposed when mounted is durable, is capable of being driven over, and cannot pose a tripping hazard.

2.2.11. Alerts and Flags
The Contractor should ensure the AMI radio transmitter connected to a Kamstrup meter ((remote AMI Radio Transmitter functionality will be available end of Q1 2027) is capable of monitoring, detecting, and transmitting the following value-added information at a minimum:

A. Meter low battery warning
B. Dry Pipe alarm
C. Water Temperature reading / flag
D. Reverse Flow
E. Flow Rate

2.2.12. Radio Transmitter Life Expectancy
The Contractor shall ensure that the radio transmitters provided have a minimum of a 20-year life.

2.2.13. Cellular Radio Transmitters
Where cellular radio transmitters are proposed, the Contractor shall ensure that on-going cellular costs are billed annually and not included in the product cost.

2.2.14. Radio Transmitter Warranty
The Contractor shall supply Radio transmitters that have a long-lasting battery with a 20-year warranty from its date of installation. The Contractor is required to provide a warranty on each radio transmitter that shall make provision for the full replacement of the radio transmitter should the transmitter fail for any reason within fifteen (15) years from its date of installation. Following the unlimited warranty period, the Contractor shall provide a radio transmitter warranty at minimum that has an upset limit of the price provided under contract, at the time of contract signing, plus a 3% annual escalator minus the applicable discount as outlined in the warranty statement, or the market price, whichever is lower.

Where a solution includes some or all cellular radio transmitters, the Contractor shall ensure that the radio transmitters shall be compatible with 4G (LTE) and 5G cellular technology. The AMI radio transmitter warranty shall include compatibility with the cellular network for the full 20-year product life.

The obligations contained in this section shall survive the termination or expiry of the Contract.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 17

2.3. AMI Network Specifications

2.3.1. Type of Network
The Contractor should propose a standalone or Third-Party AMI Network (e.g., cellular network). For all types of networks, the Contractor shall include all costs associated with the initialization, deployment, future replacement equipment costs, and any on-going license, maintenance, and monitoring services costs in the proposal for the proposed life of the system.

2.3.2. Compliance with Federal Communications Commission and Local Height Restrictions The Contractor shall ensure the proposed AMI network and all its components comply with the FCC’s regulations on antenna systems. The Contractor shall be responsible for a formal application and public consultation process as required by the FCC where any component of the proposed AMI network does not meet the FCC regulations.

The Contractor shall ensure the following local guidance is considered as a part of network design:
• Antennas erected on facilities within the City shall be no more than 15 feet above the roof of the structure.
• Approval of antenna placement may be based on a visual analysis demonstrating that views of the antenna(s) are minimized or are substantially screened from residential land uses, the I-580 and/or I-680 rights-of-way, or other sensitive land uses such as parks, schools, or major streets.

2.3.3. Network Propagation

2.3.3.1 Changes to Propagation Study
Where a change to the AMI network is required, the Contractor shall perform a complete or partial propagation that supports the changes to the AMI network.

2.3.4. Data Collection Equipment

2.3.4.1 Environmental
The Contractor shall ensure that the Data Collection Equipment (collectors and/or repeaters) can operate in harsh environments with an operating temperature range of -22oF to 149oF and relative humidity of 0% to 100%. Where temperature may affect a Data Collection Equipment’s operation, Contractors shall have clearly detailed what is required to return that Data Collection Equipment to normal operating effectiveness.

The Contractor shall ensure that the Data Collection Equipment meets the following requirements:
• The equipment shall have a NEMA 4X or better enclosure that passes the UL (Underwriters' Laboratory) rain test.
• Where the enclosure is metallic it must be rust-resistant, otherwise it shall be UV protected to prevent damage and fading in direct sunlight.
• The access door shall provide a locking mechanism with a single universal key access. • The Data Collection Equipment shall have built-in protection for lightning strikes and power surges. • The enclosure shall be large enough to include all elements of the data collection equipment as well as any external cellular or LAN routers required to connect to the backhaul connection.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 18

2.3.4.2 Power Requirements
The Contractor shall ensure that the Data Collection Equipment has a power source of either 120V AC wired to a building or electrical pole or from a solar panel and battery as required. The Data Collection Equipment should have an optional rechargeable battery that can supply backup power and be priced separately for evaluation.

2.3.4.3 Mounting Options
At a minimum, the Contractor shall provide Data Collection Equipment (unit, antenna, and solar panel) that is able to be mounted on the following:

A. Building wall
B. Standalone Roof Mount that does not require penetrating the roof membrane C. Utility pole
D. Water tank
The Contractor shall include all equipment and materials required for the different types of mounts in the price of the equipment. All mounts shall allow the equipment to be secured in place, to prevent any equipment from being easily removed.

2.3.4.4 Backhaul
The Contractor shall provide a solution that will allow meter readings to be transferred from the data collection system to the AMI headend software. The Contractor shall be responsible for all initial and on-going costs associated with backhaul through the Network as a Service agreement.

The Contractor is responsible to work with the backhaul provider to ensure the Data Collection Equipment is compatible. The Contractor shall supply all equipment and labor and pay any approval fees from the backhaul provided to obtain the device certification.

2.3.4.5 Data Collection Equipment Warranty
The Contractor shall provide a warranty for the Data Collection Equipment (including any batteries) for a minimum period of one (1) year from the date of acceptance Technical Specifications of this contract and of the RFP.

The obligations contained in this section shall survive the termination or expiry of the Contract.

2.3.5. AMI Network Service
The City shall pay for the initial roll-out of the network equipment and shall own the network with a life expectancy of 20 years. The Contractor shall be responsible for monitoring, field investigation and repair or replacement of the data collection network equipment for the life of the system. The Contractor shall be responsible for all data collection and backhaul equipment replacement related to warranty, obsolescence, or acts of god, and network equipment shall remain current with manufacturer supported versions of hardware and software. The Contractor shall ensure that it meets the following requirements related to the AMI Network Services:

A. Once the network has been installed and the Contractor has met Milestone 4, the Contractor AMI network shall continue to collect hourly interval data and will be responsible for maintaining the 98.5% Read Success Rate for all meters covered under the AMI network.

B. Daily monitoring of the data collection network for normal operations.

C. Where a data collector is not operating normally, the Contractor shall remotely investigate and provide written notice to the City within 24 hours of the equipment going down.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 19

D. As required, the Contractor shall perform field investigation and repair or replace the data collector equipment within five (5) business days of the equipment going down. All data collector parts (or the entire data collector), labor and equipment costs to investigate and replacement equipment shall be included in the AMI Network Services.

E. Perform all firmware and software maintenance, support, and updates (remote or field visits) required for the data collection and backhaul equipment. The Contractor shall provide 20 business days notification of all firmware updates unless the update is considered critical the Contractor shall provide 24 hours' notice of the update.

F. The Contractor shall cover the cost of any site visits required to meet the performance requirements described in the maintenance agreement. This could be for planned or unplanned maintenance. If site visits are a result of a situation outside the Contractor's control (power turned off, building/pole removed, vandalism, etc.), additional field costs can be passed back to the City.

G. Where part or all of the network is down, and it is preventing readings from being collected on a daily basis, the Contractor shall credit back the AMI Network Services costs that have been affected for each day after the five-day, response period readings could not be collected.

H. Where a third-party network is proposed AMI, the Contractor is responsible for ensuring network coverage during the installation phase of the project. The Contractor shall include all costs to monitor and maintain the AMI network for the full 20-year period. The City reserves the right to negotiate directly with the third-party AMI Network provider for long-term AMI Network Services after Total Performance.

2.3.5.1 CORE+ Network as a Service (NaaS) Infrastructure Site Responsibilities

2.3.5.1.1 Network as a Service.

A. Generally. Core & Main shall provide Pleasanton with Network as a Service ("NaaS"), as defined in this Section 2.3.5, during the Term of the Agreement but only so long as the City of Pleasanton is current in its payments to Core & Main for NaaS.

B. RF Field Equipment. The City of Pleasanton owns and will continue to own all RF Field Equipment. i. Maintenance of RF Field Equipment. As a part of NaaS, Core & Main shall be responsible for the ongoing maintenance of the RF Field Equipment.
a. For RF Field Equipment located on the City of Pleasanton property, and for good and valuable consideration stated in this agreement, the City of Pleasanton agrees to provide Core & Main with adequate space on each relevant site where Core & Main will install and operate the City of Pleasanton-owned RF Field Equipment. Core & Main shall obtain any required permits. During any Network Continuation Term, as defined below, Core & Main shall pay for power to the RF Field Equipment.
ii. Site Access. The City of Pleasanton shall provide Core & Main and/or Core & Main’s authorized representative with access to all the City of Pleasanton site(s) necessary for Core & Main to perform the NaaS, as defined below.

Network as a Service ("NaaS") Definition. NaaS means only the items in 2.3.5.1.2. If an item is not included in either of these sections, it is specifically excluded from NaaS and subject to additional pricing.

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 20

2.3.5.1.2 Core & Main Responsibilities. Core & Main shall be responsible for providing the following services to the City of Pleasanton:
i. The City of Pleasanton will own the Kamstrup AMI collectors and Kamstrup will own the FCC license spectrum, which will be transferred to the City of Pleasanton post project completion.

1. Core & Main is responsible for administration.
ii. Core & Main will be responsible for backhaul communication for Kamstrup AMI collectors.

1. Core & Main is responsible for administration and payment of 3rd party backhaul fees. iii. Network Design and Architecture

1. Gather the City of Pleasanton defined requirements and features for design of network.

2. Design network based on the City of Pleasanton asset locations.

3. Select sites that provide best coverage.

4. Perform preliminary site visits.

5. Finalize propagation study based on sites identified.

6. Propagation study of records is created and will be used in design per requirements identified.

7. Create SOW for Kamstrup AMI Collector installation work.

8. Build a schedule and project plan.

9. Design and analyze Radio Frequency ("RF") network including backhaul design. iv. RF Field Equipment Installation

1. Order and deliver materials (Collectors, cables, antennas, etc.).

2. Installation of any towers, pads, etc. as needed.

3. Manage third party subcontractors as needed.

4. Install RF Field Equipment.

5. Perform RF / Noise analysis and resolution as required.

6. Certify Kamstrup AMI Collector installation and testing is complete. v. Ongoing Operations Management

1. Core & Main will be responsible for the day-to-day operations, management, maintenance, and monitoring of the RF Field Equipment.

2. Document network design, physical asset condition, etc. (take and store photos as documentation).

3. Core & Main shall monitor the RF Field Equipment to ensure the early identification and resolution of network communications on a 24 x 7 x 365 basis.

4. Monitor and manage firmware/software using standard key performance indicators for performance & capacity management (storage, CPU, memory, security, etc.).

5. Monitor and respond to system outages, trouble ticket generation, and other alerts regarding the Kamstrup AMI System.

6. Perform remote initial triage and troubleshooting of issues.

7. Any issues identified by Core & Main that cannot be resolved remotely shall be dispatched for onsite resolution as outlined in 2.3.8 D.

8. Mitigate and resolve any potential RF interference that may occur.

9. Provide remote collector firmware maintenance, which includes Patches, Updates, and Upgrades for collector software and firmware as outlined in 2.3.8 E. a. Core & Main will participate and support standard change management controls in accordance with the City of Pleasanton change management practices, policies, and procedures.

10. Cyber security of RF Field Equipment will be managed, monitored, and maintained by Core & Main or its agent’s security team and experts.

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11. Perform network tuning to maximize Kamstrup AMI System. a. Network tuning includes looking at stale meters , Read interval Success (RIS) , RF channels, and overall network health , capacity, and performance. Meter configuration and channel configuration changes will be made to ensure optimal Kamstrup AMI System performance is being achieved on each channel and frequency.

12. Optimize network and ongoing design to ensure maximum coverage and performance. a. Network optimization includes performing network design and propagation analysis to identify areas of improvement of coverage, capacity, and performance.

13. Service Level Objectives ("SLOs").
a. Remotely investigate and provide written notice to the City of Pleasanton within 24 hours of the equipment going down.
b. As required, field dispatch to occur within five (5) business days of identified issue as outlined in 2.3.8 D.
c. Maintain performance consistent with the NaaS Uptime Rate (as defined below). vi. Ongoing Infrastructure Maintenance

1. Provide warranty of RF Collectors, parts, replacement, etc. (labor and batteries included).

2. Perform routine field preventative maintenance (physical maintenance and RF analysis). a. Visit RF Collector(s) once a year minimum for routine maintenance. b. Reports of visits plus maintenance logs are stored in ticketing system. c. Voltage standing wave ratio (VSWR) and Distance to Fault (DTF) testing of antenna system. d. Inspection of antenna system.
e. Inspection of exterior and interior of cabinet including GPS system. f. Power monitor and measurement.
g. Software inspection and confirmation.
h. Completion of checklist and reporting package with update of site photos. i. Interference and noise mitigation checks are performed.

3. Provides spare parts for RF Field Equipment.

2.3.5.1.3 City of Pleasanton Responsibilities
i. Pleasanton shall Purchase all needed Kamstrup equipment as outlined in the January 14, 2026 Core and Main Proposal in response to RFP# PWD – 25.604.
ii. Pleasanton will provide the necessary dynamic IP addresses for the Kamstrup AMI system components.
iii. Pleasanton is responsible to secure a suitable contractor to connect the data management software to the billing system to allow for data to be imported for billing purposes. iv. Pleasanton will provide remote AMI network access to Kamstrup and Core & Main. This provides Kamstrup and Core & Main Technical Services personnel with the ability to perform ongoing system support and troubleshooting. Access will only be granted to named personnel at Kamstrup and Core & Main who are authorized for access. Access is limited to network performance troubleshooting and optimization unless otherwise agreed to by the City and not for customer data extraction beyond what's needed for support. The City requires session logging with City access to logs on demand

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2.4. Software

2.4.1. General Software Requirements

2.4.1.1 Software Overview
All references to “software” or “application” will refer to Contractor supplied hosted or Software-as-a-Service (SaaS) application(s) required to operate the AMI System and meet the specifications as detailed. Any SaaS or hosted system data and backup data must be stored exclusively on servers located within the United States. No City data can be stored outside of the United States.

2.4.1.2 Application Licenses
The Contractor shall supply the City with license(s) for access to the software by the City’s customer service, billing, maintenance, IT personnel and external supporting organizations that may require remote access to the system from time to time. The application license shall cover read-only, read-write (where applicable), mapping, and reporting activities.

2.4.1.3 Identity & Single Sign-On (SSO)
All Contractor-supplied applications shall include login and password protection for City Users ensuring the software is only accessed by authorized personnel. The application shall support enterprise SSO using SAML 2.0 or OpenID Connect (OIDC) integrated with the City’s Microsoft Entra ID. City-enforced MFA must be honored for all roles (including administrators), and the system shall not allow local passwords to bypass SSO.

Authentication and authorization events (success, failure, elevation) must be logged and exportable.

All Contractor-supplied applications shall include login and password protection for City Users ensuring the software is only accessed by authorized personnel. Costs for integrating Single Sign On functionality shall be included in the Contract prices with no additional license or integration fees required.

2.4.1.4 System Responsiveness
The Contractor shall provide a system designed with capacity such that a minimum of 20 concurrent users shall experience a reasonable response time when connected directly to the system. The Contractor shall, at its own cost, maintain its infrastructure and internet bandwidth to assure satisfactory performance through the life of the agreement.

2.4.1.5 Software Support and Maintenance
The Contractor shall include ongoing support and maintenance for the installed software and system for one year following the Initial User Acceptance Test. After the first year, the City will pay annual software support and maintenance (Hosted) or SaaS charges as detailed in the Pricing Form. As a part of the maintenance and support or SaaS offering, the Contractor shall provide:

A. Phone Support from 4:00AM to 4:00PM (Pacific Time).

B. Remote system access service: coverage between 4:00 AM to 4:00 PM (Pacific Time) with four-hour response time (severity 2 or 3).

C. Software upgrades, fixes, and patches, at no additional cost.

D. The City shall require the Contractor to provide ongoing support for the software for the life of the AMI Software solution as long as the City is current on maintenance and support or SaaS payments.

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2.4.1.6 Support Term
The Contractor shall support the software solution(s) for a minimum of twenty (20) years. Where new software application(s) are introduced that would render obsolete one of the applications proposed in the Contractor solution, the new software shall have the same or improved functionality for the same or lower cost. The Contractor shall provide a minimum of twelve (12) months’ notice to move to a new software application.

2.4.1.7 Right to Terminate Software Agreement
The City shall have the right to terminate the software agreement with 90 days’ written notice.

2.4.1.8 Data Ownership
The City retains ownership of all data that is provided to the software or Contractor through manual or interface exchange of data or is generated by the AMI System. The Contractor is not allowed to use the City’s data without de-identifying it and aggregating it as appropriate.

2.4.1.9 Backup
The Contractor shall ensure all Software as a Service or hosted system environments meet the following requirements:

A. Backups are dedicated instances and are not accessible by other clients; B. Databases are backed up every 4 hours to off-site locations geographically separated within the United States. Additionally, databases are to be backed up to a secondary database server in near real-time providing a warm-backup system in the event the primary database fails; C. Backups of runtime files are taken with each update; D. All stored documents are backed up offsite weekly or more often if required; E. Data is shipped offsite over secure FTP;
F. Recovery from a backup of basic system functionality is achieved within 90 minutes with a full recovery point objective within 24-48;
G. The Contractor will notify the City of any changes to providers or storage locations and associated potential operational impacts within ten (10) Business Days: and H. All data containing Personal Information is encrypted in transit and at rest.

I. The Contractor shall provide documentation and participate in City’s AWIA Risk & Resilience Assessment updates post-implementation.

J. Contractor shall notify City IT of any confirmed cybersecurity breach or incident within 24 hours and shall cooperate in incident response with continuous updates until containment.

2.4.1.10 Existing IT Standards
The Contractor should conform to the IT standards described below. The Contractor shall remain current within the existing operating system environment to within two (2) years.

Category Description
Server operating system Windows Server 2019/2022
Virtual infrastructure VMware vSphere 8 (current GA: 8.0 Update 3) Databases supported Microsoft SQL Server 2019/2022
Desktop operating system Windows 11 and macOS 26.1 (“Tahoe”)

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Category Description
Office productivity software Office 2016 through O365
Email system Microsoft 365
Supported browsers for
internal staff
Current versions of Edge (Chromium), Chrome, Firefox, Safari Supported browsers for
external facing systems
Current versions of Edge (Chromium), Chrome, Firefox
Monitoring and Logging Contractor shall provide audit logs of user and admin activity, with City access for review. Logs should be retained for at least 3 years and be exportable to City’s SIEM. Continuous performance and security monitoring are required, with immediate notification to City IT of outages or suspicious activity. accepted formats (syslog/CEF/JSON), log delivery method (push/pull), log scope (app, admin, API, integration, and infrastructure components), and access method (API/portal) for City review.

Vulnerability and Penetration
Testing
Quarterly vulnerability scans and annual third-party penetration testing, with summary results shared with City IT. Critical vulnerabilities to be patched within defined timeframes. Explicit patch SLAs (e.g., Critical ≤15 days, High ≤30, Medium ≤60), scanning coverage (app, OS, containers, cloud), proof of remediation, and that third-party pen test executive summaries + mitigation plans will be shared
Uptime monitoring 24×7 synthetic and real-user monitoring with alerting to City contacts, aligned with the Software-as-a-Service service levels defined in 2.4.2.1, below.

Server Patching Schedule Monthly - also require emergency out-of-band patching for zero-days and advance coordination with City
Systems Management Tools Who does what (Contractor vs. City) for any on-prem components (e.g., collectors, gateways). Specify configuration management (e.g., Intune/SCCM/Ansible), baseline hardening, and access controls Server Management The Contractor shall manage all AMI application servers and required gateways/collectors (cloud, on-prem VMware vSphere, or IaaS), including CIS- level hardening, monthly patching with out-of-band zero-day updates, AV/EDR, backups meeting City RPO/RTO, and 24×7 health monitoring with alerting. A clear RACI and change management aligned to City maintenance windows are required, with remediation of Critical/High vulnerabilities within City-defined SLAs
Table 2 - IT Environment Standards

2.4.2. Software-as-a-Service Applications
Final terms, conditions and specifications of the SaaS agreement will be negotiated with the Proponent. The following will be the basis for what is included in the agreement.

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2.4.2.1 Service Level

2.4.2.1.1 Software Availability
Contractor will use commercially reasonable efforts to provide at least 98% uptime availability of the SaaS application per month. Contractor shall be responsible to proactively report any service level breaches and apply credits automatically.

2.4.2.1.2 Change Management.

The Contractor follows a standardized change management and release communication process. Upgrades, maintenance, and patches are typically performed after hours or during low‑usage periods to minimize operational impact.

For planned releases, advance notification is provided to impacted users, generally 7–14 calendar days for major releases and approximately 5 calendar days for minor releases, via email or standard release communications.

Notifications include high‑level timing and expected impact. Emergency maintenance or security updates follow an expedited notification process based on urgency.

The Contractor maintains internal change tracking and rollback procedures appropriate to the nature of the change. Release communications and execution are managed using Contractor standard processes and tools.

2.4.2.1.3 Functional Availability
A. The Contractor shall prioritize the correction of any Billing Impediment and shall endeavor to correct such problems within 72 hours after issue identification. Other issues are considered a bug and fixes will be implemented upon an assigned software major or minor release schedule. The contractor will provide accurate and timely meter reading data through the established interface to City systems, including but not limited to, that with an accurate and timely billable read within 48 hours of the readings of the water meter.

B. The Contractor will provide the City with a software user interface that displays (data, graph, tabular) accurate data including meter readings (raw reading and adjusted to proper unit of measure), temperature (when available), weather (when available), pressure (when available) and other data that is stored in the AMI Software.

C. The Contractor will provide software functionality including continuous leak detection, zero consumption, high consumption alerts, etc.

D. The Contractor will provide meter data (interval/consumption data or other available meter data) to the City’s CIS and Customer Portal through API(s) or flat file interface(s).

2.4.2.1.4 Maintenance Window and Notice
A. All upgrades, maintenance and patches are performed after hours (i.e. from 8:00 PM Pacific Time and 11:59 PM Pacific Time) and/or on weekends to avoid downtime situations during normal business hours.

B. Major Releases: 7-to-14-calendar days’ advance notification is provided to utility users who have credentials to access the platform. The notice will advise users of the scheduled downtime which is normally scheduled to occur between 8:00 PM Pacific Time and 11:59 PM Pacific Time.

C. Minor Releases: may include bug fixes and security patches, shall be provided with 5-calendar days’ advance notification; these updates shall be scheduled to occur between 8:00 PM Pacific Time and 11:59 PM Pacific Time. Upgrades or patches that require longer implementation time shall be conducted over a weekend.

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2.4.2.1.5 Service Level Fault
A service level fault shall be calculated based on the formulas for software available and functionality availability below.

2.4.2.1.5.1. Software Availability Formula
Availability shall be measured and communicated by the Contractor. Availability is calculated as the percentage of uptime in the applicable calendar month, excluding scheduled downtime:

Where:
“Total Unavailability Minutes” shall be the cumulative unavailability time in minutes in the applicable month where the Portal or Service are not available due to unplanned outages or from systematic errors on the part of the Contractor,
“Total Minutes of Service per Month” shall be the cumulative time in minutes in the month in question, calculated by taking the number of calendar days in month x 24 hours/day x 60 minutes/hour, and “Total Minutes of Approved Downtime” shall be the cumulative time in minutes in the applicable month where the Contractor applications are not available due to scheduled downtime; other planned scheduled outages, or approved exclusion conditions as negotiated.

The Contractor shall report or display software availability (based on the above formula) at a minimum monthly.

2.4.2.1.5.2. Functional Availability Formula
Functional availability is considered a fault if more than 5% of the available meters are impacted by the loss of functionality for features deployed in the system greater than 30 business days or if a file interface is unavailable for more than 48 hours.

2.4.2.2 Service Level Response
When a service level fault occurs, the Contractor is responsible for the following responses.

2.4.2.2.1 Software Service Level Response
The Contractor shall communicate the status of the response on a regular basis or as requested by the City.

2.4.2.2.2 Billing Impediment Service Level Response
The urgency and time to correct will be dependent upon the issue itself and its impact on the City’s ability to use the software. The Contractor shall prioritize the correction of any Billing Impediment and shall endeavor to correct such problems within 72 hours after issue identification.

2.4.2.2.3 Functional Service Level Response
Where loss in functionality impacts more than 5% of Available Meters, the City shall consider this a Service Level Fault, and the Contractor shall prioritize the resolution. Other issues are considered bugs, and fixes will be implemented upon an assigned software major or minor release schedule.

2.4.2.2.4 Service Level Fault Remedies
When a service level fault occurs, the following remedies will be applicable.

2.4.2.2.4.1. Credit for Software Downtime

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A credit will be applied for downtime according to the following schedule for the duration of the service level fault:

Service Level Credit
>98% 0%
>97% to <98% 5%
>94% to <97% 25%
<94% 50%
Table 3 - Credit Percentage for Downtime

2.4.2.2.4.2. Credit for Billing Impediment Fault Remedy Service Failures: If at any time during each monthly period a Billing Impediment that goes unresolved within the Billing Impediment Service Level Response window above, PWD’s exclusive remedies include, at PWD’s election, a credit for 50% against one (1) month of Service for the period the fault exists.

2.4.2.2.4.3. Credit for Functional Fault Remedy
Where a loss in functionality fault impacts more than 5% of Available Meters, a credit of 5% will be applied for the period of time the loss of functionality exists.

2.4.2.2.5 Credit Application
All credits earned under this Section shall be applied as a reduction against the City's next issued invoice. In the event of termination of this Agreement for any reason, any accrued but unapplied credits shall, at the City's election, be: (i) applied as a credit against any outstanding amounts owed to Kamstrup; (ii) applied toward the purchase of hardware or other fees under any active Kamstrup agreement; or (iii) refunded to the City within forty-five (45) days of the effective date of termination.

The credits set forth in this Section 2.4.2.2.5 constitute the sole and exclusive monetary remedy for Kamstrup's failure to meet the software service levels described in this Section. Nothing in this Section shall limit or affect the City's rights or remedies arising from breach of contract, indemnification obligations, data breach or security incidents, confidentiality obligations, or intellectual property claims, all of which shall be governed by the applicable provisions of this Agreement.

Credits earned under this Section shall be subject to the following caps and remediation obligations:
(a) Monthly Cap. Credits issued in any single calendar month shall not exceed the percentages set forth in Table

7. (b) Annual Cap. The aggregate credits issued to the City in any single contract year shall not exceed fifty percent (50%) of the total annual fees paid by the City for the applicable service. (c) Sustained Degradation Remediation. If Kamstrup fails to meet any SLA metric for two (2) or more consecutive months, Kamstrup shall, within fifteen (15) days of the second consecutive failure, deliver to the City a written Root Cause Analysis and Remediation Plan acceptable to the City in its reasonable discretion.

Failure to deliver an acceptable plan within such period shall constitute a material breach of this Agreement. (d) Escalating Cure Period. If an SLA failure continues for three (3) or more consecutive months notwithstanding the Remediation Plan, the City shall have the right, upon thirty (30) days' written notice, to terminate the affected service or this Agreement in its entirety without penalty, and any accrued but unapplied credits shall be refunded to the City within forty-five (45) days of termination.

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SLA credits shall not apply to unavailability or degraded performance caused by: (i) acts of God, fire, flood, earthquake, or other natural disasters; (ii) acts of war, terrorism, or civil unrest; (iii) acts or omissions of the City or its agents; (iv) failure of the broader public internet backbone not specific to Kamstrup's infrastructure or subcontractors; or (v) orders or actions of any governmental or regulatory authority. For the avoidance of doubt, failures of Kamstrup's hosting, cloud, CDN, authentication, database, or other service delivery infrastructure — whether operated directly or through subcontractors — shall not constitute Force Majeure and shall remain subject to the SLA. Kamstrup shall at all times maintain compliance with applicable federal, state, and local laws and regulations, including those obligations specific to the City set forth in Section 20. A change in applicable law shall not excuse Kamstrup from meeting its SLA obligations; provided, however, that if compliance with a specific new legal mandate makes a particular SLA metric technically impossible to achieve, the parties shall negotiate in good faith a revised metric within thirty (30) days of such mandate taking effect.

2.4.2.3 QA Test System
The Contractor’s software shall include a QA Test system. The City shall provide four weeks’ notice of when a QA test environment shall be configured and available to the City. The Contractor shall provide a QA Test system until IUAT and FUAT are approved by the City.

2.4.2.4 Security
The Contractor shall ensure the security of the application and shall prevent unauthorized access to the City’s information. The application shall support enterprise SSO as described in 2.4.1.3 Identity and Single Sign-on, above. Authentication and authorization events (success, failure, elevation) must be logged and exportable.

2.5. AMI Software

2.5.1. General Requirements

2.5.1.1 AMI Software Definition
The Contractor shall ensure that the AMI Software is configured by the Contractor to meet the required functionality. At a minimum, the Contractor shall ensure that the application(s) will include both AMI headend and Meter Data Management software.

2.5.1.2 User Definition
The Contractor shall ensure that the AMI Software solution allows for different types of Users with varying levels of system access. At a minimum, the Contractor shall ensure the software allows access to the following types of Users:

A. City Administrator: City employee(s) who have administrative access to the AMI Software solution with the authority to set up Users and make system-wide changes.

B. City User: City or project consultant personnel who access the AMI Software solutions for the purpose of monitoring various AMI radio transmitters, data collectors, and running various consumption reports.

2.5.1.3 Tyler Munis Customer Information System (CIS) Data The Contractor shall ensure that the AMI Software solution shall store and display key CIS data associated with the service address, AMI radio transmitter, and meter. At a minimum, the Contractor shall ensure that the following CIS data is incorporated into the AMI Software solution:

A. Account number

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B. Service address (including GPS coordinates)
C. Location number
D. Key AMI radio transmitter
E. Key Meter(s) information
F. Maintenance history associated with the AMI radio transmitter(s) and meter(s) G. Meter reading area, cycle, book, and sequence data
H. Group associations
The Contractor will work with the City project team during the startup phase of the project to finalize the exact fields of data that will be used.

2.5.1.4 Mapping
The Contractor shall ensure that the AMI Software solution can display the AMI equipment including AMI radio transmitters, meters, and collection devices on a map. If the application requires a mapping license other than ESRI license, the cost proposal shall include licenses for up to ten (10) concurrent users.

2.5.1.5 Storage
The Contractor shall ensure that the AMI Software solution and hardware shall be designed to hold a minimum of 13 months hourly usage values and daily values for 5 years. . Such data storage capability is included in, and not in addition to, the Contract price. The historical data shall include meter readings, consumption, meter maintenance, meter events, flags, and data collector performance information. The system shall allow all data to be archived and transferred (through an API) as required by the City.

2.5.2. Utility User Functionality

2.5.2.1 Meter Reading Retrieval
The Contractor shall ensure that the AMI Software is interfaced to the City’s CIS system, Munis, to allow meter readings to be requested and retrieved by cycle, book, route, or individual account. The Contractor shall ensure that the AMI Software allows for a configurable number of days where a valid numeric meter reading could be retrieved. This can apply to an individual account or a group of accounts.

2.5.2.2 Utility User Module
The Contractor shall ensure that the AMI Software solution has a Utility User Module that gives Users the ability to access data related to service address, meter, AMI radio transmitter, and the data collection network. The Utility User Module shall allow an administrator to restrict access to the data an individual user is allowed to view, add, delete, and modify based on that user’s job responsibilities.

2.5.2.3 Display Account / Premise Data
The Contractor shall ensure that the Utility User Module allows the User to view account and premise data for one or more meters assuming this data has been made available from the CIS. Searching for accounts, premises, and meters shall be retrievable by querying using at least the following fields:

A. Current account number at premise,
B. Prior account number at premise,
C. Account status,
D. Account start/stop dates,

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E. Premise location,
F. Premise cycle number,
G. Premise meter route number,
H. Premise address, and
I. Premise status.

2.5.2.4 Display Unit of Measure
The Contractor shall ensure that the Utility User Module shows meter readings and consumption in the proper Unit of Measure (UOM) and billing multiplier. All consumption shall be displayed in cubic feet.

2.5.2.5 Time
All software applications shall display time in Pacific Time (ET) and automatically adjust for daylight saving time as appropriate.

2.5.2.6 Display Consumption
The Contractor shall ensure that the Utility User Module displays consumption and meter readings for historical periods of the User’s choosing. Consumption shall be displayed in a tabular or graphical format and should allow the User to drill down into small time intervals, down to the hourly intervals. The Contractor shall ensure that the Utility User Module can display consumption in comparison to other Customers or meters or group averages over the same period. The Utility User Module should allow the User to compare consumption for the same Customer across different time periods (e.g., July 2024 to July 2025). The Contractor shall ensure that the Utility User Module allows the User to view historical meter events, flags, and maintenance activities that have been performed on the meter or AMI radio transmitter.

2.5.2.7 Average Consumption
The Contractor shall ensure that the Utility User Module displays average consumption over the period of time being viewed including daily average, weekly average, current and past billing period averages. Supplier acknowledges the requested functionality is not currently available but is planned for inclusion in a future Platform release available on or before Q4, 2028.

2.5.2.8 Display of Status Codes
The Contractor shall ensure that the Utility User Module displays status codes of the AMI radio transmitters.

These status codes shall include:

A. Burst
B. Dry
C. Leak
D. Battery Low
E. High ambient temperature
F. Low ambient temperature
G. No consumption
H. Reverse
I. Tamper
J. Flow above max flow for given meter size
K. Meter transmission unit cannot contact the wired meter

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L.

The Contractor shall ensure that the AMI Software allows the Utility User to review and close or resolve the status codes such that a resolved code does not continue to show up in the display or report.

2.5.2.9 AMI Network Monitoring
The Contractor shall ensure that the AMI Software solution allows City Users to view details of the Data Collection Equipment and their current status. It should provide a summary of the Data Collection Equipment performance (battery, communication to headend software, devices being heard, etc.).

2.5.2.10 Event Management
The Contractor shall ensure that the AMI Software solution allows for tracking and prioritizing different types of meter and AMI events either at the software level or using the radio transmitter. Events may include various types of maintenance, high consumption, cut wire, zero consumption, non-numeric readings, continuous consumption, non-zero consumption on fire line meters, and conservation initiatives (consumption restrictions, letters, low flow device installations, meter replacements, etc.). The City should be able to prioritize events that allow more serious events to be resolved sooner.

The Contractor shall ensure that the meter event handler will allow the City to:

A. Filter all meter events by multiple criteria including the type of event, severity of the event, event type, or status of a device.

B. Create event groups.

C. Create roles for Users.

D. Send events to a person of a specified group.

2.5.2.11 Property Side Leak Detection
The Contractor shall ensure that the system or software allows for User-defined continuous or high consumption leaks to be flagged. The size of the leak should be User definable and activated if the water meter has registered a volume above a programmable threshold each hour for 24 consecutive hours or as defined by the user, if available.

2.5.3. Data Interfaces
The Contractor shall define all data interfaces that will be required for all software and systems. The Contractor shall be responsible for planning, developing, documenting, and testing the proposed AMI Software (AMI headend software, MDM) side of the data interface. The City will be responsible for the existing system side of the data interface. Testing of the interface will be performed jointly.

The Contractor shall work within the City’s interface and testing approach as described in Project Overview section 1.7 Integration and Testing Process.

2.5.3.1 Data Transfer File Type
The AMI Software may use flat file interfaces for billing purposes.

The AMI headend and Meter Data Management software shall be either a flat file, a Real-time Application Programming Interface (API) or a REST API of a format agreed to during the start up to transfer data between systems. Costs for the API shall be included in the support and maintenance or SaaS fees. If an API is not available, the Contractor should specify when an API will be made available.

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2.5.4. Reporting

2.5.4.1 Standard Reports
The Contractor shall ensure that the AMI Software solution includes a simple, flexible reporting tool that allows utility user to query data for specific Customers or groups of Customers consumption data. The tool shall allow the Users to add or remove fields, filter, or adjust the criteria of the report based on User’s requirements.

The Contractor shall ensure that the modified or standard reports shall be able to be saved by the User, so they can re-use the reports in the future.

The Contractor shall ensure that the AMI Software can produce standard reports that can be downloaded as a PDF file or in Excel format for further analysis and action.

The Contractor shall ensure that the downloaded PDF, CSV, reports are able to filter, sort, and modify without having to manipulate the data due to formatting limitations (merged cells).

2.5.4.2 Customizable Reports
The Contractor shall ensure that the AMI headend software shall have a robust reporting tool that allows Utility User customizable queries to be built. The reporting tools should allow for fields to be added or sequenced differently; filters to be applied; or criteria and ranges to be added to the query.

2.5.4.3 Special Reports
Where the standard or customized report is deemed inadequate, the Contractor shall develop special reports that can be run efficiently from the AMI Software and support the City’s operational needs. Special reports will be defined through a business requirement document and quoted by the Contractor on a report-by-report basis.

2.5.4.4 Scheduling Reports
The Contractor shall ensure that the reports to be run on both ad hoc and scheduled times and support both static (specific meter groups that do not change) and dynamic reporting groups (allows for several conditions to be set) are able to be created.

The Contractor shall ensure that the AMI Software notifies the User of real time alerts via e-mail or text message for specific City-specified events.

2.5.4.5 Meter Management Reporting
The Contractor shall ensure that the AMI Software solution has the ability for the User to select the pre-defined thresholds reporting on specific events that occur with the system.

2.5.4.6 On Demand Readings
The Contractor shall ensure that the AMI System can perform on-demand readings and receive a register read no more than four hours old for all AMI meters on an individual or global basis. The AMI shall have the ability to obtain all interval data for a specific date range and register values at the time of the reading.

2.5.4.7 Performance Metrics
The Contractor shall ensure that the AMI Software solution can provide performance or diagnostics information with respect to the AMI meters and network equipment.

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2.5.5. Meter Groups
The Contractor shall ensure that the AMI Software solution allows meters to be grouped or associated with other meters based on various meter attributes and User defined criteria. This grouping functionality shall be able to be used within both the Utility User Module and reporting module.

2.5.5.1 Dynamic and Static Groups
The Contractor shall ensure that the AMI Software solution allows both static and dynamic groups to be created by a Utility User. The groups should be available to all Users or associated with just a single User. The groups can be temporary or permanent that require approval to be changed. All meters shall be able to be included in both static and dynamic groups.
• A static group is a list of meters created by enumerating the AMI meter identifiers. • A dynamic group allows for a set of criteria to be established so every time the group is used, meters meeting the criteria are included in the group. Supplier acknowledges the requested functionality is not currently available but is planned for inclusion in a future Platform to be released on or before Q4, 2028.

2.5.5.2 CIS Defined Meter Groups
The Contractor shall ensure that the CIS defined meter groups can be defined through the CIS interface that may include Customer, property, or meter attributes.

2.5.5.3 User Defined Meter Groups
The Contractor shall ensure that the User defined meter groups can be created, modified, or adjusted by the User and are available to all Users or

2.5.5.4 Deductive Meters
The Contractor should ensure that AMI Software solution allows parent and child water meters to be set up as deductive to one another where the consumption from the child meter can be deducted from the parent meter.

3. WATER METER SPECIFICATIONS

3.1. General Requirements
All water metering products shall be submitted for the City’s review and approval. Any changes to products throughout the project must be requested and approved by the City.

3.1.1. Complete Assembly
All water meters shall be supplied with a complete assembly including water meter main case, measuring chamber, and encoder register complying with the specification within this RFP.

All components used to construct the water meter shall be made of corrosive resistant material. Components include meter body, wiring connections, register, bolts, bottom plates, etc.

3.1.2. Acceptable Water Meter Standards
All water meters and components of meters shall meet or exceed the following applicable ANSI/AWWA standards:

RFP-2 – Scope of Work
RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 34

• C715-18 Cold-Water Meters – Electromagnetic and Ultrasonic Type for Revenue Applications (Non- mechanical).

All proposed water meters performance documentation shall be supported by a data specifications publication that is to be included in an appendix of the Contractor’s proposal.

3.1.3. Manufacturer Facilities
All water meters shall be manufactured by a registered ISO 9001 quality standard facility.

3.1.4. NSF 372 Compliant Products
All proposed water meters and parts that come in contact with potable water shall comply with NSF/ANSI 372 and NSF/ANSI 61 Annex G specifications. All products shall be stamped with an NSF symbol confirming it meets this standard.

3.1.5. Water Meter Main Case Composition
The City will accept both metallic main case water meters and composite main case water meters.

3.1.6. Water Meter Serial Number
The serial number stamped on the main case of the water meter should be the same as the encoder register serial number.

3.1.7. Meter Bolts
All meter bolts used in the construction of the water meter shall be stainless steel (AISI 316 Stainless).

3.1.8. Protection of Materials
All meters and meter components shall be shipped and delivered in a manner to prevent damage. Items damaged due to inadequate packaging and/or mishandling during shipment and delivery will not be accepted and will be returned to the supplier at the supplier’s expense.

Meters shall be pre-cleaned and sealed to prevent contamination during shipping and storage and shall be ready for use upon receipt.

3.1.9. Operating Conditions
Meters shall be designed to withstand operating pressures up to 150 psi. Meters shall be designed for use with potable water at temperatures up to 80°F.

3.1.10. Test Certificate
All water meters shall be shipped with a digital certificate that confirms that each water meter was tested and meets AWWA accuracy requirements for all flows. The certificate tag shall include the meter serial number, the meter size and the test results.

3.1.11. Digital File
All water meter and components shall be shipped with a digital file in a format acceptable to the City. The file will include at a minimum the PO number, date of shipment, date of warranty expiry, meter model, size, serial number, register ID number (if applicable) and the test results of the various test flow ranges.

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RFP# PWD 25.604 City of Pleasanton, CA RFP-2 | Page 35

3.1.12. Manufacturing Defects
The Contractor shall ensure that all water meters and all other appurtenances are free from manufacturing defects, imperfections and design deficiencies that may affect their operation, appearance, or serviceability. For all particulars not covered by this specification and/or the Proposal documents, manufacturing quality shall be in accordance with good commercial practice. Materials not defined here shall be of the best commercial quality, suitable for their intended purpose and subject to the approval of the City. For all defective products supplied and installed under this contract, the Contractor is responsible for field investigation and resolution during the Supply and Installation Warranty Period.

3.2. Residential and Small Commercial Meters
Residential water meters shall include various sizes ranging from 5/8” to 1”. The residential meters shall be threaded with meter coupling nuts. Small commercial water meters include meters sized, 1.5” and 2” and shall have oval flanges for connection to the water pipe per City Standard Drawing 301.

3.2.1. Meter Size and lay Length
All proposed water meter size, capacity and lay length shall conform to AWWA standards (latest revision).

3.2.2. Residential and Small Commercial Meter Warranty
All water meters shall have a full unlimited warranty for a minimum of fifteen (15) years and a total warranty of 20 years. Following the unlimited warranty period, the water meter warranty price shall have an upset limit of the price provided under contract with a 3% annual escalator minus the applicable discount as outlined in the warranty statement, or the market price, whichever is lower. This warranty shall cover the entire water meter including but not limited to the register and encoded output, battery or batteries, main case and measuring elements with nothing exempt. The meter warranty shall include the meter’s stated accuracy for the total warranty period of the meter.

3.2.3. Meter Connections
All meter connections 1.5” to 2” shall be a two-bolt oval meter connection.

3.3. Commercial and Industrial Meters (Large Meters)
Large meters shall include all meters 3” and greater. These meters shall connect to the water pipe using round flanges.

3.3.1. Meter Size and Lay Length
All proposed water meter size, capacity and lay length shall conform to AWWA standards (latest revision).

3.3.2. Meter Connections
All meters 3” and greater shall have a standard round meter flange in compliance with C702.

3.3.3. Testing
All non-mechanical water meters 3” and greater shall provide an ability for the meter accuracy to be tested/confirmed in situ either electronically or using a test port with the existing standard lay length.