City Council Agenda Report
Meeting Date: August 15, 2023
From: Carlos Fandino, City Administrator
Department: City Administration
Submitted by: Diana Figueroa, Administrative Analyst
Subject
Itron, Inc. Master Sales Agreement for Utility Meter Services Recommendation
Approve and authorize the City Administrator to execute a Master Sales Agreement with Itron Inc., in substantially the same form as submitted, for hardware, software, and maintenance services for utility service meters for a total amount not-to-exceed $148,770 for a three-year term.
Background
The Vernon Public Utilities Department (VPU) is responsible for the maintenance, functionality, and data collection associated with all metering equipment and metering system software for the purpose of accurate billing for meter revenue. VPU collects its electric, water, and gas usage data from meter connections for billing purposes and to obtain pertinent operational consumption data.
Itron, Inc. (Itron) provides Software-as-a-Service (SaaS), software license, certain software, hardware, firmware, and equipment, and maintenance and support for the meters in the Electric, Water, and Gas Divisions of VPU. These specialized services allow for remote meter reading of nearly 3,000 communicating devices in the field and offer the utility operation accurate data collection and efficiency, monitoring, and reporting. In 2018, Council authorized an Itron Revenue Meter Software Platform Upgrade that significantly improved the standardization and stability of the meter network, and improved data accessibility and analysis, allowing VPU to manage related department costs, and the ability to better serve its customer base. To fully optimize this most recent investment in meter improvements, it is recommended that Council authorize the Master Sales Agreement with Itron for a three-year term in order to maintain continuity of service and ensure that maintenance and support for the City’s meters is intact.
The proposed Master Sales Agreement is exempt from competitive bidding and competitive selection pursuant to Vernon Municipal Code Sections 3.32.110(A)(2) and 3.32.110(B)(1), respectively, as SaaS, software license, firmware and equipment, and maintenance services for existing City utility meters are only available through Itron. The proposed Master Sales Agreement with Itron has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
The fiscal impact is anticipated to be $148,767.97 and shall not exceed $148,770. Sufficient funds are available in Electric Fund, Customer Service Department, Repairs & Maintenance Account No. 055-050-575-529110 for the current fiscal year and will be budgeted in subsequent years.
Attachments
1. Itron, Inc. Master Sales Agreement
2. Itron, Inc. Proposal Pricing