SR 08-23-2022 5M
City Council
Report
City Council Meeting: August 23, 2022
Agenda Item: 5.M
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources
Subject: Award Bid and Enter Into an Agreement with Badger, Inc. for AMI Smart
Water Meters & Cloud-Based Interface
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 320 to Badger Meter, Inc. to deliver, replace and install
approximately 12,444 Advanced Metering Infrastructure (AMI) ready water
meters along with AMI encoders and provide a cloud-based interface for an AMI
System for the Public Works Department;
2. Authorize the City Manager to negotiate and execute an agreement with Badger
Meter, Inc., in the amount not to exceed $13,500,000 (including 15%
contingency).
3. Authorize the City Manager to negotiate and execute a Software as a Service
(SaaS) Agreement with Badger Meter, Inc. in the amount not to exceed $300,000
over a five-year period.
Summary
The City’s Public Works Department – Water Resources Division delivers high-quality
drinking water to approximately 18,400 metered water connections in the City. The
current water meters are read manually on a bi-monthly schedule to bill each customer
for their water use. For example, a customer’s June water bill is for water that is
consumed during the prior two months (April and May). The Water Resources Division
issued a request for proposals (RFP) for an Advanced Metering Infrastructure (AMI)
system or smart water meters. The AMI Project was approved in the City’s CIP Budget
and is funded through the 2021 Water Revenue Bonds. The AMI is a cloud-based
system that transmits data via cellular network in near real time. The AMI system
includes the replacement of aging non-AMI compatible meters, meter box lids,
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installation of cellular data transmitters (encoders) on every meter, data migration
capability to the City’s billing software and a customer water monitoring portal.
Because the AMI provides real time information on water usage it allows for improved
leak detection, which would significantly improve the City’s water conservation efforts,
and provide customers with the ability to track their water use on a daily basis. Past
studies have demonstrated that AMI systems could provide 5-7% in water savings from
reduced residential water leaks. Long term benefits of the AMI system include more
efficient billing, and improved accuracy in meter reads. Staff recommends that RFP
#320 be awarded to Badger Meter, Inc. and that an agreement be negotiated and
executed for the AMI System.
Discussion
Over the past five years, the Water Resources Division has conducted three
independent AMI pilot tests utilizing different technologies. The current pilot test has
been expanded and over 5% of the City’s water meters currently have AMI transmitters
installed. The City’s meters are divided into 51 meter reading routes based on
geographic location. As part of the pilot project, AMI transmitters have been fully
installed in one of these routes and the data is currently being electronically transmitted
into the City’s billing software and used for billing. This contract award is for the full-
scale implementation of an AMI system for the City’s 18,400 meters.
The manual meter reading for the approximately 18,400 meters in the service area is
performed on a bi-monthly schedule. Identifying hidden leaks or excessive water usage
based on water consumption in a timely manner is difficult due to the meter reading
cycle of 60 days. It takes one or two billing cycles, up to 120 days, for a leak or
excessive usage to be identified from the meter reads. The end result is excessive
water loss/usage and a high water bill due to this time delay. An AMI system would
allow the customer to monitor their individual water usage and create alerts, via cell
phone or e-mail, to notify them within a day or two of a potential water leak.
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The savings and efficiency benefits of the AMI system are mostly realized on the
customer’s end from early detection of water leaks to real-time monitoring of daily water
usage to minimize their water costs. The AMI system also provides cost savings to the
City (estimated at $290,000 annually) by reducing the City’s reliance on more costly
imported water and contractual services for meter reading.
The best qualified bidder, Badger Meter Inc., proposed a comprehensive scope of
services to fully convert the City’s water metering infrastructure to an AMI system. The
scope of services includes:
• Replacing approximately 12,444 water meters and upgrading them with AMI
compatible water meters (approximately 67% of the total number of meters, the
remaining 33% are AMI compatible and less than 8 years of age and do not need
to be replaced),;
• Installation of cellular AMI transmitters (referred to as encoders) on new meters
as well as meters in the system that are compatible;
• Replacement/modification of meter box lids to allow for cellular signal
transmission;
• Staging and storage facilities for project implementation;
• Migration of data into the City’s billing system, and
• A customer portal to improve the customer’s experience in understanding their
water usage.
The additional services offered by Badger Meter Inc. include a two-year cellular
subscription fee and conducting a service line material survey during meter replacement
for both the public and private side of the water service connection to replace lead
service lines in compliance with the Environmental Protection Agency’s Lead and
Copper Rule Revisions. Majority of the project costs are one-time costs to convert the
City’s current water meter infrastructure to AMI. The lowest bid, Metron-Farnier, was
not as comprehensive as the other three bids because it did not include the cost of the
AMI compatible water meters and labor for installation.
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Vendor Selection
Bidder Recommendation
Best Bidder Badger Meter, Inc.
Evaluation Criteria • Experience – 20% of total score
• Technical Competence – 20% of total score
• Ability to Meet Project Work Plan and Timeliness – 20% of total score
• References – 10% of total score
• Cost of Services, Cost Control – 30% of total score
Municipal Code SMMC 2.24.190
Submittals Received
Vendor Base Scope of Services Additional Services Total
Aqua-Metrics Sales
Company
$11,345,202 $407,717 $11,752,919
Badger Meter, Inc. $11,305,418 $426,247 $11,731,665
Ferguson Waterworks $13,986,434 $0 $13,986,434
Metron-Farnier $6,198,3104 $0 $6,198,310
Bid Data
Date Posted Posted On Advertise In City
Charter & SMMC
Vendors
Downloaded
Date Publicly
Opened
5/9/2022 City’s Online
Bidding Site
Santa Monica Daily
Press
47 June 10, 2022
Best Bidder Justification
The proposals were reviewed by a selection panel consisting of staff from the Public
Works Department – Water Resources Division. Evaluations were based on the
following selection criteria: Experience; Technical Competence; Ability to Meet Project
Work Plan and Timeliness; References; and Cost of Services, Cost Control. Based on
these criteria, the selection panel unanimously ranked Badger Meter as the best
qualified firm to provide the City with an AMI system. Badger Meter has successfully
deployed over 10 million ORION endpoints for more than 3,000 utilities. They are the
firm which provides the lowest cost while providing all the components for a successful
deployment of an AMI system. The lowest bidder, Metron-Farnier, did not meet the full
scope of services requirements as the bid only includes the AMI cellular transmitters
and customer portal while the water meters were not included.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Water Fund to award a contract with
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Badger Meter, Inc for implementation of the AMI system in the City and ongoing
software maintenance costs for the cloud-based portal. The initial capital outlay, which
includes a 15% contingency, is being funded through proceeds from the 2021 Water
Revenue Bond issuance, and staff seeks authority to approve use of bond proceeds to
fund the award. Ongoing annual software maintenance costs will be funded through the
Water Fund’s operating budget.
Contract Request
FY 2022-23
Request Amount CIP Account # Total Contract Amount
$13,500,000 C5008200.689740 $13,500,000
$36,432 505000001.550010 $300,000
$13,436,432 Total $13,800,000
Prepared By: Chris Aguillon, Water Resources Protection Specialist
Approved
Forwarded to Council
Attachments:
A. Oaks Initiative Disclosure (Badger)
B. Written Comment
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CITY OF SANTA MONICA
OAKS INITIATIVE DISCLOSURE FORM
In order to facilitate compliance with the requirements of the Oaks Initiative, the City
compiles and maintains certain information. That information includes the name of any
person or persons who is seeking a “public benefit.” If the “public benefit” is sought by
an entity, rather than an individual person, the information includes the name of every
person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten
percent interest in the entity.
Public benefits include:
1. Personal services contracts in excess of $25,000 over any 12-month period;
2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-
month period;
3. Purchase, sale or lease of real property to or from the City in excess of $25,000
over a 12- month period;
4. Non-competitive franchise awards with gross revenue of $50,000 or more in any
12-month period;
5. Land use variance, special use permit, or other exception to an established land
use plan, where the decision has a value in excess of $25,000;
6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-
month period; or
7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-
month period.
Name(s) of persons or entities receiving public benefit:
Name(s) of trustees, directors, partners, and officers:
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
______________
Korrine L. Fleming Assistant Secretary
June 10, 2020
bids@badgermeter.com 414-371-2728
Badger Meter, Inc. - On November 1, 2019, DBA National Meter & Automation is
re-branded as Badger Meter, Inc.
See Attached
See Attached
July 20, 2021July8, 2022
5.M.a
Packet Pg. 154 Attachment: Oaks Initiative Disclosure (Badger) (4945 : Award AMI Smart Water Meter Bid)
081518
CERTIFICATION
OF SIGNATURE AUTHORITY
I certify as follows:
By Board Resolution adopted by the Board of Directors of Badger Meter, Inc. and in full force and effect as of
this date:
The following elected executive officers are, among other things, hereby authorized to execute, amend,
and cancel bids and contracts for the sale of products, distributor and representative agreements, bid
bonds, surety bonds, contracts, leases and certain other legally binding documents in the ordinary course
of business, in the name of Badger Meter, Inc.
Kenneth C. Bockhorst Chairman, President and Chief Executive Officer
Robert A. Wrocklage Senior Vice President - CFO
Kimberly K. Stoll Vice President – Sales and Marketing
William R. A. Bergum Vice President – General Counsel & Secretary
The following elected non-executive officers are hereby authorized to execute, amend, and cancel bids,
bid-related contracts and documents, requests for proposals and quotes, and all other bid-related
documentation in the name of Badger Meter, Inc.
Charla D. Dury Assistant Secretary Proposal Specialist – Bid and Contract Administration
Frank J. Fenton Assistant Secretary Director – Utility Sales
Korrine L. Fleming Assistant Secretary Manager – Bid and Contract Administration
Nathaniel R. Hawley Assistant Secretary Director – Distribution Operations
Rebecca L. Loomans Assistant Secretary Proposal Lead – Bid and Contract Administration
Christopher D. Washington Assistant Secretary Supervisor - Bid and Contract Administration
Maikou Yang Assistant Secretary Proposal Lead – Bid and Contract Administration
BY:
________________________
Date William R. A. Bergum,
Vice President - General Counsel & Secretary
Badger Meter, Inc.
-XQH
5.M.a
Packet Pg. 155 Attachment: Oaks Initiative Disclosure (Badger) (4945 : Award AMI Smart Water Meter Bid)
BADGER METER, INC.
BOARD OF DIRECTORS
6/7/20
Kenneth C. Bockhorst
x President and Chief Executive Officer: Badger Meter, Inc.
Todd A. Adams
x President and Chief Executive Officer: Rexnord
Thomas J. Fischer
x Principal: Fischer Financial Consulting LLC
Gale E. Klappa
x Non-executive Chairman: WEC Energy Group
Gail A. Lione
x Senior Counsel: Dentons
x Adjunct Professor of Intellectual Property Law: Georgetown University School of Law
x Retired Executive Vice President, General Counsel and Corporate Secretary & Chief
Compliance Officer: Harley-Davidson Corporation
Richard A. Meeusen
x Chairman, and Retired Chief Executive Officer: Badger Meter, Inc.
Tessa Myers
x Regional President- North America: Rockwell Automation
James F. Stern
x Executive Vice President, General Counsel and Secretary: A.O. Smith Corporation
Glen E. Tellock
x President and Chief Executive Officer: Lakeside Foods
Todd J. Teske
x Chairman, President and Chief Executive Officer: Briggs & Stratton Corporation
5.M.a
Packet Pg. 156 Attachment: Oaks Initiative Disclosure (Badger) (4945 : Award AMI Smart Water Meter Bid)
Badger Meter, Inc. Corporate Officers
April 21, 2020
Elected Executive Officers:
Kenneth C. Bockhorst President and Chief Executive Officer
Robert A. Wrocklage Vice President – Chief Financial Officer
Karen M. Bauer Vice President – Investor Relations, Corporate Strategy and Treasurer
Fred J. Begale Vice President – Engineering
William R.A. Bergum Vice President – General Counsel and Secretary
Gregory M. Gomez Vice President – Global Flow Instrumentation and International Utility
Trina L. Jashinsky Vice President – Human Resources
William J. Parisen Vice President – Global Operations
Kimberly K. Stoll Vice President – Sales and Marketing
Daniel R. Weltzien Vice President – Controller
Elected Non-Executive Officers*:
Joanne K. Crumer-Pascale Assistant Treasurer Milwaukee Accounting Manager
Charla D. Dury Assistant Secretary Project Manager – Bid & Contract Admin.
Frank J. Fenton Assistant Secretary Director – Utility Sales
Korrine L. Fleming Assistant Secretary Manager– Bid & Contract Admin.
Nathaniel R. Hawley Assistant Secretary Director – Distributor Administration
David A. Kutil Assistant Treasurer Director – Accounting & External Reporting
Rebecca L. Loomans Assistant Secretary Proposal Lead – Bid & Contract Admin.
Benjamin E. Loomis Assistant Secretary Milwaukee Credit Manager
Pamela G. Stokke-Ceci Assistant Secretary Assistant General Counsel and Director
Christopher D. Washington Assistant Secretary Supervisor – Bid & Contract Admin.
*Scope of authority for Assistant Secretaries determined by job description and duties, as approved by the Corporation’s Secretary
5.M.a
Packet Pg. 157 Attachment: Oaks Initiative Disclosure (Badger) (4945 : Award AMI Smart Water Meter Bid)
Badger Meter, Inc.
Company Ownership of Five Percent and Greater
February 28, 2019
Shareholders of Common Stock Percentage Interest in
Shareholders’ Equity
BlackRock, Inc.
55 E. 52nd St.
New York, NY 10055 14.7%
The Vanguard Group, Inc.
100 Vanguard Blvd.
Malvern, PA 19355 11.2%
Kayne Anderson Rudnick Investment Management, LLC
1800 Ave. of the Stars, 2nd Fl.
Los Angeles, CA 90067 6.4%
Badger Meter obtains the shareholder ownership information from the SEC 13-F forms filed by holders
no later than 45 days after each quarter end, and compiled by an outside service provider.
5.M.a
Packet Pg. 158 Attachment: Oaks Initiative Disclosure (Badger) (4945 : Award AMI Smart Water Meter Bid)
1
Vernice Hankins
From:Tricia Crane <1triciacrane@gmail.com>
Sent:Monday, August 22, 2022 6:49 PM
To:councilmtgitems; Gleam Davis; Oscar de la Torre; Sue Himmelrich; Kristin McCowan; Lana Negrete;
Christine Parra; Phil Brock; david.white@santamonic.gov; Santa Monica City Manager's Office; Sunny
Wang
Subject:Council Agenda Item 5-M, Aug. 23, 2022: Proposal to Implement Citywide Smart Water Meter &
Cloud-Based Interface
EXTERNAL
To: Santa Monica City Council
From: Tricia Crane
Re: Support for Agenda Item 5-M. - Award Bid and Enter into an Agreement with Badger, Inc. for AMI
Smart Water Meters & Cloud-Based Interface
Council meeting of August 23, 2022
Dear City Council,
As a beneficiary of a Smart Water meter pilot project some years ago, I feel strongly that a citywide
plan would be highly beneficial. It was because of the real-time tracking made possible by the smart
meter installed at our home that we were able to identify a leak and make a simple and inexpensive
repair that saved money and water. Smart water meters implemented citywide will allow all residents
to identify and track leaks in their system in real time. This has value.
However, I do think the City should direct staff to present data that makes plain what the cost of the
proposed system will be. It appears that the cost will be $1,079 per meter ($13,436,432 ÷ 12,444
meters). Council would be wise to ask Staff to provide budget data that comments on the per unit cost
with the preferred provider as well as information on the performance of that provider with other cities
with which it has contracted for the same system.
There is another matter that should be discussed in a public meeting: These units depend on WiFi.
We need to know whether the city’s network can handle this system. The current WiFi coverage in
the city looks sparse. If we must build out WiFi to support the full use and benefit of this system, is
that expense covered in the cost?
Item 5.M 08/23/22
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Packet Pg. 159 Attachment: Written Comment (4945 : Award AMI Smart Water Meter Bid)
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Thank you
Tricia Crane
Item 5.M 08/23/22
2 of 5 Item 5.M 08/23/22
5.M.b
Packet Pg. 160 Attachment: Written Comment (4945 : Award AMI Smart Water Meter Bid)
1
Vernice Hankins
From:NSA <eltheous@roadrunner.com>
Sent:Monday, August 22, 2022 8:52 PM
To:councilmtgitems
Subject:Agenda Item 5.M -- Smart Water Meters
EXTERNAL
Many of us Santa Monica residents are severely sensitive to EMF waves. My bedroom window is right next to the water
meter.
Please do not approve any Smart Water Meter contract that does not allow residents to opt out of having smart water
meters.
Opting out of smart water meters should also be free.
thank you
Marion Goldfarb
Item 5.M 08/23/22
3 of 5 Item 5.M 08/23/22
5.M.b
Packet Pg. 161 Attachment: Written Comment (4945 : Award AMI Smart Water Meter Bid)
1
Vernice Hankins
From:Elizabeth Van Denburgh <emvandenburgh@gmail.com>
Sent:Monday, August 22, 2022 11:09 PM
To:councilmtgitems; Sue Himmelrich; Kristin McCowan; Christine Parra; Oscar de la Torre; Lana Negrete;
Phil Brock; Gleam Davis
Cc:David White
Subject:City Cnl. Meeting 8/23/22 - Pull Consent Calendar Item M - AMI Smart Water Meters & Cloud-Based
Interface - Further analysis and explanation needed for multifamily buildings
EXTERNAL
Mayor Himmelrich and City Council members,
I request that you pull Consent Item M ‐ Award Bid and Enter into an Agreement with Badger Inc. for AMI Smart Water
Meters & Cloud‐Based Interface for further analysis. While the advantages of smart meters for electricity are clear
because almost every unit in the city be it a single family home, apartment, condo, duplex or triplex has its own
electricity meter so each owner/renter has greater visibility and thereby control over their usage. With water meters,
the vast majority of apartment buildings and condos have a single water meter i.e., a single bill for a multifamily
building. How will the outlay of $13,500,000 (not including staff time and expenses) improve the ability of multifamily
buildings to save water and thus water cost if there continues to be only one water meter in the building. For single
family homes, I understand that it has been somewhat helpful to find leaks, but it will provide no help for multifamily
buildings to better understand their water usage due to a single meter handling the entire building. How does installing
new smart water meters help multifamily buildings reduce their water usage and help save money? $13.5 million
dollars is alot of money to spend to find leaks and then there is the $300,000 Software as a Service (SaaS) cost/five
years.
On the top of page 3 of 5 of the staff report it states: "The savings and efficiency benefits of the AMI system are mostly
realized on the customer's end from early detection of water leaks to real‐time monitoring of daily water usage to
minimize their water costs," Can the water department explain how that will be done by multifamily buildings that only
have one water meter? 70% of Santa Monica residents are renters with landlords with condos being created from
converted apartment buildings. How does this help them save money? Both renters and landlords and condo
owners? If it doesn't, then I don't see the cost/benefit penciling out of this capital cost.
Regards,
Elizabeth Van Denburgh
Item 5.M 08/23/22
4 of 5 Item 5.M 08/23/22
5.M.b
Packet Pg. 162 Attachment: Written Comment (4945 : Award AMI Smart Water Meter Bid)
1
Vernice Hankins
From:news4jd@verizon.net
Sent:Tuesday, August 23, 2022 11:55 AM
To:councilmtgitems; Sue Himmelrich; Kristin McCowan; Christine Parra; Oscar de la Torre; Lana Negrete;
Phil Brock; Gleam Davis
Cc:David White
Subject:Fwd: City Cnl. Meeting 8/23/22 - Pull Consent Calendar Item M - AMI Smart Water Meters & Cloud-
Based Interface - Further analysis and explanation needed for multifamily buildings
EXTERNAL
Dear City Council Members,
I support the email below. I can add additional comments to support this request, but this says it very well.
Thank you.
John Dahl
---------- Forwarded message ---------
From: Elizabeth Van Denburgh <emvandenburgh@gmail.com>
Date: Mon, Aug 22, 2022 at 11:09 PM
Subject: City Cnl. Meeting 8/23/22 - Pull Consent Calendar Item M - AMI Smart Water Meters & Cloud-Based Interface -
Further analysis and explanation needed for multifamily buildings
To: <councilmtgitems@santamonica.gov>, Sue Himmelrich <sue.himmelrich@santamonica.gov>,
<kristin.mccowan@santamonica.gov>, Christine Parra <christine.parra@santamonica.gov>, Oscar de la Torre
<oscar.delatorre@santamonica.gov>, <lana.negrete@santamonica.gov>, Phil Brock <phil.brock@santamonica.gov>,
<gleam.davis@santamonica.gov>
Cc: David White <david.white@santamonica.gov>
Mayor Himmelrich and City Council members,
I request that you pull Consent Item M - Award Bid and Enter into an Agreement with Badger Inc. for AMI Smart Water
Meters & Cloud-Based Interface for further analysis. While the advantages of smart meters for electricity are clear
because almost every unit in the city be it a single family home, apartment, condo, duplex or triplex has its own electricity
meter so each owner/renter has greater visibility and thereby control over their usage. With water meters, the vast
majority of apartment buildings and condos have a single water meter i.e., a single bill for a multifamily building. How will
the outlay of $13,500,000 (not including staff time and expenses) improve the ability of multifamily buildings to save water
and thus water cost if there continues to be only one water meter in the building. For single family homes, I understand
that it has been somewhat helpful to find leaks, but it will provide no help for multifamily buildings to better understand
their water usage due to a single meter handling the entire building. How does installing new smart water meters help
multifamily buildings reduce their water usage and help save money? $13.5 million dollars is alot of money to spend to
find leaks and then there is the $300,000 Software as a Service (SaaS) cost/five years.
On the top of page 3 of 5 of the staff report it states: "The savings and efficiency benefits of the AMI system are mostly
realized on the customer's end from early detection of water leaks to real-time monitoring of daily water usage to minimize
their water costs," Can the water department explain how that will be done by multifamily buildings that only have one
water meter? 70% of Santa Monica residents are renters with landlords with condos being created from converted
apartment buildings. How does this help them save money? Both renters and landlords and condo owners? If it doesn't,
then I don't see the cost/benefit penciling out of this capital cost.
Regards,
Elizabeth Van Denburgh
Item 5.M 08/23/22
5 of 5 Item 5.M 08/23/22
5.M.b
Packet Pg. 163 Attachment: Written Comment (4945 : Award AMI Smart Water Meter Bid)