City Council
Report
City Council Meeting: October 12, 2021
Agenda Item: 3.B
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To: Mayor and City Council
From: Rick Valte, Acting Public Works Director, Public Works, Water Resources Subject: Approval of First Contract Modification to Agreement #4652 with Alexander's Contract Services for Meter Reading Services for the Water Resources Division
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to contractual services agreement #4652 in the amount of $360,000 with Alexander’s Contract Services for meter reading services as an exception to the competitive bidding process, section 2.24.250 (g), for the Public Works Department. This will result in a five-year amended agreement with a new total amount not to exceed $610,000, with future year funding contingent on Council budget approval.
Summary
The City collects revenue from its water and wastewater customers based on their actual water and wastewater usage along with a fixed capacity fee. The variable portion of this charge is measured by the approximately 18,000 water meters located throughout the city that are read once every two months. Alexander’s Contract Service, Inc. would augment the Water Division’s meter reading program, allowing current staff to address leaks, customer service inquiries, meter replacements, and other proactive maintenance with the meter infrastructure. Staff is requesting a first modification to agreement #4652 to increase the contract budget to $610,000 from $250,000 and extend the term by three years. The contract duration extension aligns with the deployment of Smart Water Meters or Advanced Metering Infrastructure (AMI) that will be funded by water revenue bonds. The Smart Water Meters project is expected to be completed by 2024 and this contract extension would provide meter reading services in the interim. The contract modification is based on actual budget expended to support the contractor providing such services over the past two years, and the funding is included in the Water and Wastewater Funds’ operating budgets. 2 of 3
Discussion
With the City’s aging meter infrastructure, the Water Resources Division has a goal of replacing at least 5% of the meters per year, exchanging both the meter and the meter box it resides in. Over time, meters become less accurate with wear, measuring less water than what is flowing through the meter. Replacement of older meters ensures that the Water and Wastewater Funds charge their customers accurately and fairly for the cost of service provided. The Meter Reading Services Request for Proposals was published on October 30, 2019 on the City’s PlanetBids website. A total of 534 vendors were notified, 14 vendors downloaded the RFB, and 1 submission was received. Staff awarded the contract to the sole bidder, Alexander’s Contract Services, Inc. (Alexander’s), whose proposal did not exceed the threshold amount requiring Council authorization. Alexander’s was the sole bidder as the nature of the service requires a company to be local to Santa Monica. An exception to the competitive bidding process is being applied to extend Alexander’s agreement in order not to disrupt or interfere with Water Resources’ operations and align with the deployment of AMI by 2024.
By contracting with Alexander’s to provide meter reading services, the Division’s Water Resources Technicians would be able to focus on customer service inquiries, water leaks, meter replacements, and other proactive maintenance related to the meter infrastructure. On average, the five Water Resources Technicians respond to over 200 weekly work orders, including trouble codes like high water consumption and possible water leaks, which are critical under ongoing drought conditions. In the future when the AMI Smart Water Meters project is complete, it could provide 5-7% water savings (based on studies conducted by utilities in Southern California that has switched over to AMI) from residential water leaks and could save our residential customers up to $2k per bi-monthly bill with early detection of water leaks at their home. With Alexander’s supplemental water meter reading, the Water Resources Technicians can address customer issues at a quicker response rate.
In addition, the repetitive nature of meter reading work which includes lifting meter covers and vault lids, has resulted in injuries and subsequent extended Workers Compensation leave for several Water Resource Technicians, causing staff availability 3 of 3
issues. When only two technicians are available to work, only one could read meters and the City would be at risk of not meeting bimonthly billing requirements. Alexander’s would continue to help maintain water meter reading schedules, relieve the strain of repetitive work on City staff, and allow staff to maintain a high level of service for the City’s customers and provide proactive maintenance to our water meter infrastructure.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water and Wastewater Funds to increase the amount of contract #4652 with Alexander’s Contract Services, Inc. for water and wastewater meter reading services. Future year funding is contingent on Council budget approval.
Contract Modification Request
Agreement #
Current
Authorized
Amount
FY 2021-22 Budget
Modified Request
Amount
Department Account # Total Revised
Contract Amount
4652 $125,000 $25,000 50500001.550010 $305,000
4652 $125,000 $25,000 51500001.550010 $305,000
Total: $610,000
Prepared By: Thomas Poon, Senior Administrative Analyst Approved Forwarded to Council
Attachments:
A. Oaks Initiative (Alexander's Contracting Services, Inc)