Public Works Agency
www.santa-ana.org/pw
Item # 19
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
April 7, 2026
TOPIC: Automated Metering Infrastructure Implementation Support Services
AGENDA TITLE
First Amendment to the Agreement with E Source Companies, LLC for Automated Metering Infrastructure Implementation Support Services (Project No. 16-6460) (Non- General Fund)
RECOMMENDED ACTION
Authorize the City Manager to execute a First Amendment to the agreement with E Source Companies, LLC to continue Automated Metering Infrastructure implementation support services, in an additional amount of $125,000, for a total revised agreement amount not to exceed $575,000 (Agreement No. A-2026-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
The Public Works Agency (PWA) operates and maintains the City’s water and sanitary sewer systems. The water system comprises approximately 480 miles of water main, 21 groundwater wells, seven pump stations, 10 reservoirs with a storage capacity of 49 million gallons, four pressure-regulating stations, and seven connection points to the Metropolitan Water District. The system has an average daily demand of 30 million gallons from its roughly 45,500 metered service connections.
In 2020, City Council approved the implementation and transition from manual meter readings to an Automated Metering Infrastructure (AMI) system utilizing smart water meters. The AMI system electronically transmits data to the Finance and Management Services Agency’s Municipal Utility Services (MUS) customer information and billing system, where water charges are generated. The introduction of the new smart meter technology required upgrades to existing MUS systems and significant efforts to implement and integrate those systems.
With progress on installing the new smart meters advancing on schedule, on August 20, 2024, the City Council approved an agreement with E Source Companies, LLC to
Automated Metering Infrastructure Implementation Support Services April 7, 2026
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provide implementation and operational support services as the City transitioned to AMI water meter data, for a total amount not to exceed $450,000. The support provided by E Source has been essential to systems integration, maintaining data quality, identifying system anomalies, and resolving issues across the AMI ecosystem. Their work has been instrumental in enabling the MUS support team to maintain the same level of customer service for Santa Ana residents and businesses while navigating the learning curve associated with the transition to AMI.
The agreement anticipated a full handoff of AMI system responsibilities to staff by the end of 2025. The majority of the budget was allocated for support from E Source leading up to the handoff milestone with tapering support services and training continuing through the end of 2027. During this period, City staff were also tasked with advancing other customer service and technology priority-initiatives such as the Accela Land Management, Business License software upgrades, and initiating a new Enterprise Resource Planning system. These additional ground-up technology projects required a significant investment of staff time and, as a result, diverted staff time from the AMI project, necessitating the extended use of E Source in the AMI operational support role beyond the originally anticipated timeframe.
The proposed $125,000 amendment reflects the cost of continued support such as system monitoring, data validation, billing read support, and City staff training through the remaining term of the agreement. This will allow for an adequate transition period for staff to assume full operational responsibilities of the AMI project by June 2027, and with minimal support services from E Source, as originally contracted, continuing through December 2027.
Staff recommends approval of the First Amendment to Agreement A-2024-133 (Exhibit 1) with E Source Companies, LLC in the amount of $125,000 for a total revised agreement amount of $575,000 (Exhibit 2). All the remaining terms of the agreement, effective through December 2027, will remain unchanged.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
Funds are available for expenditure in the Fiscal Year 2025-26. Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 2026-27.
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Fiscal
Year
Accounting Unit
- Account No.
(Project No.)
Fund
Description
Accounting Unit,
Account Description
Amount
2025-26 06017645-62300
(16-6460) Water
Water
Admin/Engineering,
Contract Services -
Professional
$40,000
2026-27 06017645-62300
(16-6460) Water
Water
Admin/Engineering,
Contract Services -
Professional
$75,000
2027-28 06017645-62300
(16-6460) Water
Water
Admin/Engineering,
Contract Services -
Professional
$10,000
TOTAL $125,000
EXHIBIT(S)
1. Agreement A-2024-133
2. First Amendment to the Agreement E Source Companies, LLC Submitted By: Rodolfo Rosas, P.E., Acting Executive Director – Public Works Agency Approved By: Alvaro Nuñez, City Manager