City Council
Report
City Council Meeting: April 12, 2022
Agenda Item: 3.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Award Request for Proposal and Enter Into Agreement with MentorAPM, LLC for an Enterprise Asset Management System
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 2021-REQ-00090 to MentorAPM, LLC for an enterprise asset management system (EAMS) for the Public Works Department;
2. Authorize the City Manager to negotiate and execute an agreement with MentorAPM, LLC, in an amount not to exceed $763,000 over a five-year period, with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica’s Water Resources Division provides high-quality drinking water and wastewater collection services to over 93,000 residents and 2,700 commercial/institutional customers and relies on operation and field data to inform decision making, manage day-to-day operations, optimize service delivery, and improve customer engagement. Having a modern and robust Enterprise Asset Management System (EAMS) would improve management of operational data, implement proactive maintenance practices to reduce unplanned outages, and increase business process efficiency to reduce expenditures. The new EAMS would replace the Water Resources Division’s existing Computerized Maintenance Management System (CMMS) that is used to track water and wastewater operation field data. The CMMS is over 20 years old and is not capable of supporting the $200+ million advanced water/wastewater infrastructure (e.g., Sustainable Water Infrastructure Project, Olympic Advanced Water Treatment Facility, and expanded Arcadia Water Treatment Plant) that is being 2 of 6
constructed. Staff recommends executing a contract with MentorAPM, LLC to implement a modern EAMS solution.
Background
It is customary for water and wastewater utilities to use and maintain an EAMS to manage large quantities of valuable operational equipment, or assets, and operational data to support day-to-day operations (e.g., water production, treatment, and distribution) as well as inform business decisions for the utility (e.g., establishing annual operating budgets and capital improvement programs). The existing CMMS system has been in place for over 20 years and is not adequate to support the major water/wastewater infrastructure projects that are currently being constructed. Key benefits of a modern and robust EAMS include:
• Predicting failure scenarios over time by analyzing asset trends and anomalies, identifying points for operations and maintenance staff to direct their attention to perform proactive preventive maintenance, rather than reactive maintenance, that would minimize unplanned service outages.
• Tracking maintenance schedules and intervals to ensure sufficient staffing levels and materials are maintained to improve operational reliability and quality-ofservice delivery. • Ensuring faulty equipment under warranty is addressed in a timely manner with the manufacturer.
• Organizing assets by type, age, location, and other characteristics specific to the utility that would assist operators in troubleshooting unforeseen outages by investigating all associated assets to the problem or identify other impacted areas from a single failure point.
• Displaying assets using mapping and diagrams (e.g., links to the City’s Geographic Information System) for ease of locating the asset by field staff to reduce response time.
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• Providing direct linkage of staff work orders to digital asset records to automatically update field data and details on work performed as assets are serviced or replaced.
• Increasing operational and business process efficiency using historical data (e.g., maintenance frequency of equipment, replacement schedule of equipment, labor hours to perform the work, etc.) to enhance operating budgets and capital improvement program planning through a proactive management approach to save money.
Discussion
The Water Resources Division currently uses Infor’s Hansen 8 CMMS to track locations of its water distribution and wastewater collection system assets, but many data fields such as warranty, maintenance history, asset health, equipment replacement history, and more are unable to be tracked by the outdated software system. For example, water distribution pumps and treatment process equipment at the Arcadia Water Treatment Plant are currently not supported by the existing software. Furthermore, the user interface of the existing software is obsolete and inefficient for supervisory and field service staff to use while in the field.
Staff is seeking to procure and implement a modern EAMS that would best support current operations, facilitate proactive management of its water distribution and wastewater collection assets (pipes, valves, hydrants, etc.), and enable the addition of treatment process assets such as the Arcadia Water Treatment Plant and the Sustainable Water Infrastructure Project (i.e., pumps, filtration systems, storage tanks, drives, process instruments, and electrical equipment) that are under construction.
The current EAMS system, Hansen 8, would run concurrently until February 2023, when it is expected that Mentor APM’s EAMS system would be fully commissioned. After implementation costs, the annual software maintenance cost would increase from $76,731 with Hansen 8 to an average of $89,000 annually over the initial five years of the contract.
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FY 2021-22’s total cost would include approximately 36% of the implementation cost ($30,000), the first year’s software maintenance fee ($85,000), workflow development ($13,200), and as-needed programming ($21,800).
Vendor Selection
Bidder Recommendation
Best Bidder MentorAPM, LLC
Evaluation Criteria • Experience and Technical Competence – 20% of total score • Ability to Meet Project Work Plan and Timeliness – 20% of total score
• Quality Control – 10% of total score
• Stability/References – 10% of total score
• Cost of Services, Cost Control – 25% of total score
• Value Add/Breadth of Service – 15% of total score
Municipal Code SMMC 2.24.190
Submittals Received
Vendor Implementation
Cost
Software/Licensing Cost
(5 years)
Additional
Services
Total
(5 Years)
Accrete Consulting
Solutions $218,200 $195,200 $223,060 $636,660
AssetWorks $260,900 $249,000 $258,280 $768,180
MentorAPM1 $82,500 $446,788 $233,712 $763,000
Nobel Systems2 $60,000 $300,000 $115,290 $475,290
Timmons Group $236,475 $265,000 $172,578 $674,053
TruePoint
Solutions $70,800 $650,000 $139,320 $930,120
1Additional services includes $40,000 for an optional Criticality Analysis. 2Bid included cost only for a three-year agreement. Assumed same cost for years 4-5.
Bid Data
Date Posted Posted On Advertise In (City
Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
01/21/2022 City’s Online
Bidding Site
Santa Monica
Daily Press
6 02/07/2022
Best Bidder Justification
The proposals were reviewed by a selection panel consisting of staff from the Information Services Department and Public Works Department – Water Resources Division. Evaluations were based on the following selection criteria: experience and technical competence, ability to meet project work plan and 5 of 6
timeliness, quality control, stability/references, cost of services/cost control, and value added/breadth of service. Based on these criteria, the selection panel unanimously ranked MentorAPM, LLC as the best qualified firm to provide an Enterprise Asset Management System. Cost of services over the 5 year period for the MentorAPM system is just above the average and median of all the bidders. The bidders with lower cost options either did not offer the full range of services needed to support the City’s new water/wastewater infrastructure, do not have experience in the United States, and/or may have compatibility issues with other City software packages. MentorAPM’s system can manage the City’s existing and future water and wastewater assets, which includes two new advanced treatment facilities and upgrades to the Arcadia Water Treatment Plant. The MentorAPM team has vast experience implementing asset management solutions as well as operating and maintaining water and wastewater assets. Local agencies currently using MentorAPM include the Los Angeles County Sanitation Districts, Irvine Ranch Water District, and Rancho California Water District. Their references also provided positive feedback for their product and services.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Water and Wastewater Funds to award an agreement with MentorAPM, LLC for an enterprise asset management system. Funds are available in Water and Wastewater funds in the approved FY 2021- 23 Biennial Budget. Future year funding is contingent on Council budget approval.
Contract Request
FY 2021-22
Budget Request Amount Department/CIP Account # Total Contract Amount $75,000 50500001.529230 $381,500
$75,000 51500001.529230 $381,500
Total: $763,000
Prepared By: Sunny Wang, Water Resources Manager
Approved Forwarded to Council
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Attachments:
A. Oaks Initiative (MentorAPM)
B. Written Comments