To: Honorable Mayor and Members of City Council
From: Phil Brun, Utilities Director
Prepared By: Sara Gallegos, Management Analyst
TITLE:
Title
Water Meter Equipment Replacement
LABEL
RECOMMENDED ACTION:
Recommendation
1) Determine that the proposed amendment and new contract with Badger Meter, Inc. meets the requirements for a “specialty item” as set forth in Napa Municipal Code Section 2.91.050; and
2) Authorize the Utilities Director to negotiate and execute an amendment to the existing contract with Badger Meter, Inc. in the increased amount of $130,000 for a total contract amount not to exceed $350,000 for Fiscal Year 2024, for the purchase of water service meters and associated items for use in the municipal water distribution system; and
3) Authorize the Utilities Director to negotiate and execute a contract in an amount not to exceed $400,000 with Badger Meter, Inc. for Fiscal Year 2025, for the purchase of water service meters and associated items for use in the municipal water distribution system; and
4) Determine that the actions authorized by this item are exempt from CEQA.
Body
DISCUSSION:
The Water Division uses meters to measure and record the volume of water supplied to the more than 25,500 potable water connections throughout the service area. It is important that the data collected is accurate because it is the basis for water billing and ensures reliable compensation for water usage and effective customer service. Staff are deployed daily to monitor, maintain, and repair the equipment, read and record the data, and transmit the information to the City’s Finance Department for accurate customer billing. In addition to daily tasks, staff also is responsible for meter replacement programs which includes the replacement of small water meters (sized 1-inch and smaller) and large water meters (sized larger than 1-inch) to reduce the risk of lost revenue to the Water Fund.
The City has invested in an automated meter reading (AMR) program to greatly improve the efficiency of water meter reading that is performed every two-month billing cycle. The program includes the installation of Itron® manufactured Encoder Receiver Transmitter (ERT) modules on each meter which then transmit water usage information to a hand-held electronic device. These devices eliminate the need for City staff to manually open each individual meter box and read each meter, thus dramatically reducing staff time spent in the field. The City has installed over 25,500 ERT modules throughout the water system, allowing 100 percent electronic reads. Investing in this program has the added advantage of reducing the labor effort required to complete the routine bi-monthly readings. To date, the electronic meter reading program has saved 5 person-days per month. These savings are greatly needed, and staff are able to be reallocated to other maintenance and asset replacement programs as well as improving the documentation of water distribution and transmission system assets.
Staff recommends that the City Council authorize the Utilities Director to amend the existing contract with Badger Meter, Inc., to increase compensation from $220,000 to $350,000 for Fiscal Year (FY) 2024. Anticipating long lead times for large meters, staff placed an order expecting delivery in FY2025. However, the items arrived early; therefore, this amendment is necessary to pay for meters received in FY2024 with funds from the contract for the same fiscal year.
Staff also recommends that the City Council authorize the Utilities Director to execute a new contract with Badger Meter, Inc. in an amount not to exceed $400,000 for FY2025 to supply water meters, ERTs, and associated items for use in the municipal water distribution system.
Both recommended actions are pursuant to Napa Municipal Code Section 2.91.050, Exceptions for Specialty Items. A written determination supporting this recommendation is included as Attachment 1.
FINANCIAL IMPACTS:
There are sufficient funds in Water Enterprise Fund operating account 53060114 (Water Distribution) and Water CIP account 53160131 (Water Distribution Projects).
CEQA:
City staff recommends that the City Council determine that the Recommended Action is exempt from CEQA pursuant to CEQA Guidelines Section 15301(a) (Existing Facilities) which exempts operation, repair, maintenance or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographic features involving no expansion of use beyond that previously existing.
DOCUMENTS ATTACHED:
ATCH 1 - Written Determination for Procurement of Specialty Items - Badger Meter, Inc. for the purchase of water service meters and associated items for use in the municipal water distribution system.
NOTIFICATION:
None