September 16, 2025
TO: City Council
REQUESTED BY: Mathew Osborn, Superintendent
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Approve Contract for Meter Reading Infrastructure and Site Improvements
RECOMMENDATION:
Staff recommends that the City Council:
1. Determine that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15303 (New Construction or Conversion of Small Structures) and 15332 (In-Fill Development Projects), as the project consists of a small facility located on an urbanized, in-fill site with no potential for significant environmental impacts, and direct staff to file a Notice of Exemption with the Riverside County Clerk/Recorder’s Office.
2. Approve the installation of a new seventy-foot tall (60 feet) meter reading tower and base station in the City Hall Parking Lot and five repeaters throughout the City's water service area.
3. Approve a sole source contract with Hydro Pro Solutions for the purchase and installation of the tower, base station, and repeaters in an amount not to exceed $120,000, inclusive of estimated shipping costs, consistent with San Jacinto Municipal Code Section
3.08.070(C)(1), the Uniform Public Construction Cost Accounting Act (CUPCCAA), and Public Contract Code Section 3400.
4. Approve a contract with G I Builders LLC for landscaping and fencing improvements in the amount of $17,365, consistent with CUPCCAA thresholds under San Jacinto Municipal Code Section 3.08.040(D)(1).
5. Authorize the City Manager to execute all necessary agreements, subject to City Attorney review and approval as to form, and approve a ten percent contingency, establishing a total project budget not to exceed $151,800.
DISCUSSION:
In 2022, the City of San Jacinto initiated a major Capital Improvement Project (CIP) to replace all aging water meters within the City’s service area. The goal of this project is to transition from traditional meters to modern smart meters in order to enhance water system efficiency, improve billing accuracy, and provide customers with better tools to manage their water usage.
To date, approximately 60% of the City’s older meters have been replaced with new Master Meter advanced metering infrastructure (AMI) units. As the program progresses, the City has reached a point where installation of a dedicated meter reading tower, base station, and supporting equipment is both necessary and highly beneficial to maximize the effectiveness of the new technology.
The proposed project will include installation of:
• One seventy foot tall (60 feet) meter reading tower and antenna within the parking lot of City Hall, serving as the primary collection point for smart meter data. • One base station that will process data transmitted from the smart meters. • Five repeaters strategically located throughout the service area to ensure full coverage and strong data transmission.
Currently, two staff members are required to read meters over the course of two to three days each billing cycle (month). By installing this infrastructure, the City will automate the meter reading process, significantly reducing staff time spent on this task. This will allow staff to redirect efforts toward more critical system improvements such as replacing aging water mains and water services, thereby enhancing the overall reliability of the water system.
Additional benefits of installing the meter reading system include:
• Customer Empowerment: Creation of a secure customer portal where residents and businesses can view water usage in real time.
• Leak Detection: Customers will be able to set alerts to identify potential leaks or unusual water usage, encouraging water conservation and reducing costly damages. • Billing Accuracy: Automated meter readings on the first day of each month will improve billing consistency, preventing the occurrence of shorter or longer billing periods and reducing the likelihood of billing disputes.
A study was conducted to identify the most suitable site for the tower. Based on availability of power, central coverage of the service area, and accessibility, the City Hall parking lot was selected as the optimal location. This site will provide strong coverage for meter communications and minimize installation costs by utilizing existing electrical infrastructure. In addition, the City Hall location offers enhanced security through existing surveillance cameras, proximity to City services, and established perimeter fencing. The project will remove two compact parking spaces to accommodate the tower and will include installation of additional security fencing designed to match existing City Hall improvements, along with landscaping and other aesthetic treatments to ensure the facility blends appropriately with its surroundings.
The City engaged Hydro Pro Solutions, the sole provider of Master Meter hardware and software in California, to provide and install the tower, base station, and repeaters. As the authorized distributor and service provider, Hydro Pro Solutions ensures full compatibility with the City’s existing advanced metering infrastructure (AMI) system and ongoing meter replacement program.
Although this project is a Public Works Project subject to the Uniform Public Construction Cost Accounting Act (CUPCCAA) and San Jacinto Municipal Code Section 3.08.040, it qualifies under the “sole source” exception established in Section 3.08.070(C)(1) of the Municipal Code.
That section authorizes the City to dispense with competitive bidding where there is only one source that can provide the required goods or services, or where use of a specific vendor is necessary to maintain compatibility with existing City products or equipment.
In this case, Hydro Pro Solutions is the only vendor authorized in California to supply and install Master Meter AMI hardware and software. Competitive bidding would not provide any advantage, as no other vendors are authorized to perform this work. Public Contract Code Section 3400 further supports this determination, allowing public agencies to specify proprietary products in public works contracts when necessary to ensure system compatibility and functionality. The City’s reliance on the Master Meter platform for its meter replacement program requires the use of proprietary equipment to complete the system.
Accordingly, the City has determined that contracting directly with Hydro Pro Solutions meets the requirements of CUPCCAA, the Public Contract Code, and San Jacinto Municipal Code Chapter 3.08.
To address aesthetics and security, the City also engaged G I Builders LLC to install fencing and landscaping around the new tower site. With a contract value of $18,000, the work falls below the $60,000 threshold under CUPCCAA and Municipal Code Section 3.08.040(D)(1), which allows such projects to be completed by force account, negotiated contract, or purchase order without the need for formal or informal bidding procedures. G I Builders LLC has successfully completed several projects for the City, including the Corporation Yard remodel and City Hall office remodel, and has consistently delivered satisfactory work. Based on their proven performance, staff determined G I Builders LLC to be the most suitable contractor to complete these improvements.
ENVIRONMENTAL DETERMINATION:
Pursuant to the California Environmental Quality Act (CEQA), the proposed project is exempt from further environmental review. The installation of the meter reading tower, base station, and associated site improvements is categorically exempt under CEQA Guidelines Section 15303 (New Construction or Conversion of Small Structures), which applies to the construction and location of limited numbers of new, small facilities or structures, and Section 15332 (In-Fill Development Projects), which applies to projects characterized as in-fill development within city limits.
The project involves installation of a single 70-foot tower, base station, and security fencing within the developed City Hall parking lot. The site is fully urbanized, surrounded by existing municipal uses, and does not contain habitat for sensitive species. The project will not result in any significant adverse impacts related to traffic, noise, air quality, water quality, or cultural resources. The minor loss of two compact parking spaces does not create a new significant impact, as sufficient parking capacity remains available onsite.
Therefore, the project qualifies for categorical exemptions under CEQA and no further environmental analysis is required.
FISCAL IMPACT:
Funding for this project is already included in the adopted FY 25/26 CIP Budget (CIP #22-006).
No additional appropriation is required.
ATTACHMENTS:
HydroPro Infrastructure Pricing
HydroPro Installation Pricing
G I Builders Tower Landscape and Fence Bid
Base Station and Repeater Brochure
Master Meter - HydroPro Solutions Sole Source Letter
Basin Station Photo
Tower Site Rendering 2
Tower Site Rendering 1
Meter Tower Photo 1
Meter Tower Photo 2