City Council Agenda Report
Meeting Date: June 16, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Master Sales Agreement with Itron, Inc.
Recommendation
A. Find that the best interests of the City are served by a direct award of an agreement with Itron, Inc. (Itron) without a competitive selection process, pursuant to Vernon Municipal Code Section (VMC) 3.32.110(B)(2);
B. Pursuant to Sections 3.32.220(B) and 3.32.110(B)(3) of the VMC, find that it is commercially unreasonable to rebid the proposed agreement for support and maintenance every three years, as Software as a Service (Saas), software license, firmware, and equipment, and maintenance services for existing City utility meters are only available through Itron; and C. Approve and authorize the City Administrator to execute a Master Sales Agreement with Itron, in substantially the same form as submitted, for utility metering hardware, software, and maintenance services in an amount not-to-exceed $285,229.68 for a five-year term.
Background
Vernon Public Utilities (VPU) is responsible for the operation, maintenance, and data collection of all utility metering equipment and its associated software. This is crucial for ensuring accurate and timely customer billing and revenue collection. In addition to billing, VPU collects data on electric, water, and natural gas usage from metered connections. This information supports a range of internal and external needs, including operating functions, regulatory compliance, analysis, and reporting.
Itron, Inc. (Itron) is a comprehensive technology company that offers software, hardware, firmware, and maintenance/support solutions for utility metering. VPU currently uses Itron metering equipment across its electric, water, and natural gas divisions. This partnership allows VPU to remotely communicate with approximately 3,000 utility meters throughout the City, ensuring accurate data collection, monitoring, and system reliability.
In 2018, the City Council authorized an upgrade to the Itron Revenue Meter Software Platform, which significantly enhanced the stability, reliability, and functionality of VPU’s metering network.
This upgrade enabled VPU to access consumption data more effectively and provided the necessary analytics to manage departmental costs and better serve the community.
On August 15, 2023, the City Council approved a Master Sales Agreement with Itron for hardware, software, and maintenance services for utility service meters. The current agreement is set to expire on June 30, 2026. Since its approval, VPU has continued to invest in and optimize its metering infrastructure to meet the evolving operating and service demands of its customers.
The proposed agreement is exempt from competitive bidding pursuant to Section
3.32.110(A)(10) of the Vernon Municipal Code (VMC) and can be exempt from competitive selection pursuant to Section 3.32.110(B)(2) if a direct award is found to be in the best interests of the City. Section 3.32.110(B)(3) of the VMC indicates that the City Council has the authority to make such a finding when the proposed contract exceeds $100,000. In this case, it is in the city's best interests to directly award the contract to Itron. This is because Software as a Service (SaaS), software licenses, firmware, and equipment, as well as maintenance services for the City's existing utility meters, are exclusively available through Itron. VPU completed a multi-year upgrade of its customer billing system with Advanced Utility Systems (Advanced) in Fall 2025, transitioning away from a legacy version of the Advanced platform that was no longer supported.
The utility has also continued replacing some of its aging meters in the Itron network to ensure billing accuracy and maintain customer satisfaction.
The proposed Master Sales Agreement will have a five-year term. In accordance with Sections
3.32.220(B) and 3.32.110(B)(3) of the VMC, staff recommends that the City Council deem the proposed agreement for utility metering hardware, software, and maintenance services is commercially unreasonable to be rebid every three years since Itron is already being utilized and thus is the only vendor able to provide essential services. A five-year term is recommended to ensure continuity of service, operational stability, pricing consistency, and uninterrupted technical support for critical utility infrastructure that directly supports customer billing and revenue collection. Implementing a three-year limit would create unnecessary challenges in providing ongoing SaaS, software licensing, firmware updates, equipment support, and maintenance services, all of which are vital to the continued operation of the City’s utility metering system.
VPU staff recommends that the City Council approve the Master Sales Agreement with Itron for utility metering hardware, software, and maintenance services for a total amount not-to-exceed $285,229.68. Pursuant to VMC Section 3.32.030(A), City Council approval is required for the proposed contract, as the total value of the contract exceeds $100,000.
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 not to exceed $285,229.68. Sufficient funds are available in the Electric Fund, Customer Service, Professional Services - IT, Account No. 055-050-575-529210 and will be budgeted in subsequent years.
Attachments
1. Master Sales Agreement with Itron, Inc.