City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01117 June 28, 2022
Title: Agreement: Cold Water Meters [Published for 10-Day Review 06/17/2022]
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute an Agreement with Badger Meter for the purchase of cold water meters and accessories for a one-year term with up to four one-year renewal options for an amount not-to-exceed $11,203,743 for the maximum five-year term.
Contact: Stacy Larkin, Administrative Analyst, (916) 808-6356, [email protected]; Jon Conover, Superintendent, (916) 808-7334, [email protected]; Pravani Vandeyar, Division Manager, (916) 808-3765, [email protected]; William Busath, Director of Utilities (916) 808-1434, [email protected]; Department of Utilities
Presenter: None
Attachments:
1-Description/Analysis
2-Agreement
Description/Analysis
Issue Detail: The Department of Utilities (DOU) needs to purchase cold water meters and accessories on an ongoing basis for the City’s new water meter installations for development and end-of-life meter replacement.
Policy Considerations: City Council approval is required for contracts of $250,000 or more.
The Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7, Section E.2.d) mandate that unless waived by a 2/3 vote of the City Council, all labor agreements and all agreements greater than $1,000,000 shall be made available to the public at least ten (10) days prior to City Council action. This item was published for 10-day review on June 17, 2022, in compliance with the City Code.
Economic Impacts: None
Environmental Considerations:
California Environmental Quality Act (CEQA): The Community Development Department, Environmental Planning Services has reviewed the proposed agreement and has determined that it is not considered a “project” under the California Environmental Quality Act (CEQA) Guidelines. The activity is a continuing administrative and maintenance activity [CEQA Guidelines section 15378(b)] and is not subject to CEQA [CEQA Guidelines Section 15060(c)(3)].
Sustainability: The supplies that will be purchased under these contracts comply with the City’s Sustainability Master Plan Goal to conserve the use and protect the sources of water. The installation of cold water meters promotes sustainability by collecting meter reads accurately and billing our customers based on water consumption, thereby providing a financial and ecological incentive to reduce water consumption.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Invitation for Bid B22141411018 was issued on January 26, 2022. The bid was publicly advertised, and two responses were received and opened on February 23, 2022. After evaluation, Badger Meter was determined to be the lowest responsive bidder.
Badger Meter was the City’s meter provider for the previous five-year contract period and staff is satisfied with their performance.
Financial Considerations: The proposed Agreement has a maximum five-year term for an amount not-to-exceed $11,203,743. Sufficient funding is available in DOU’s Fiscal Year 2022/23 operating budget to fund the first year of the agreement. Funding for future fiscal years shall be subject to funding availability in the budget adopted for the applicable fiscal year.
There are no general fund obligations for this contract.
Local Business Enterprise (LBE): The LBE program does not apply to contracts for supplies in excess of $250,000.
Background: Replacing aged water meters can help incentivize reduced water consumption and significantly increase revenues to the Department of Utilities (DOU). A water meter, like any other mechanical device, is subject to wear and deterioration over time. As they wear, water meters typically under-register flow. The potential for revenue loss can be substantial if the system has many meters significantly under-registering actual usage.
Thousands of city water meters have been in service for 15 – 20 years and are reaching the end of their useful lives. During the next three to five years, Department of Utilities Water Distribution staff will be replacing approximately 27,000 of these old meters. A comprehensive meter replacement program not only benefits the City by creating a more efficient operation but allows DOU to maintain the lowest possible water rates for customers. The replacement program will keep the City of Sacramento water system in compliance with California Public Utilities Commission rules that require replacement of meters according to their size and age.