SR 04-12-2022 3C
City Council
Report
City Council Meeting: April 12, 2022
Agenda Item: 3.C
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources
Subject: Award Request for Proposal and Enter Into Agreement with MentorAPM, LLC
for an Enterprise Asset Management System
Recommended Action
Staff recommends that the City Council:
1. Award RFP# 2021-REQ-00090 to MentorAPM, LLC for an enterprise asset
management system (EAMS) for the Public Works Department;
2. Authorize the City Manager to negotiate and execute an agreement with
MentorAPM, LLC, in an amount not to exceed $763,000 over a five-year period,
with future year funding contingent on Council budget approval.
Summary
The City of Santa Monica’s Water Resources Division provides high-quality drinking
water and wastewater collection services to over 93,000 residents and 2,700
commercial/institutional customers and relies on operation and field data to inform
decision making, manage day-to-day operations, optimize service delivery, and improve
customer engagement. Having a modern and robust Enterprise Asset Management
System (EAMS) would improve management of operational data, implement proactive
maintenance practices to reduce unplanned outages, and increase business process
efficiency to reduce expenditures. The new EAMS would replace the Water Resources
Division’s existing Computerized Maintenance Management System (CMMS) that is
used to track water and wastewater operation field data. The CMMS is over 20 years
old and is not capable of supporting the $200+ million advanced water/wastewater
infrastructure (e.g., Sustainable Water Infrastructure Project, Olympic Advanced Water
Treatment Facility, and expanded Arcadia Water Treatment Plant) that is being
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constructed. Staff recommends executing a contract with MentorAPM, LLC to
implement a modern EAMS solution.
Background
It is customary for water and wastewater utilities to use and maintain an EAMS to
manage large quantities of valuable operational equipment, or assets, and operational
data to support day-to-day operations (e.g., water production, treatment, and
distribution) as well as inform business decisions for the utility (e.g., establishing annual
operating budgets and capital improvement programs). The existing CMMS system has
been in place for over 20 years and is not adequate to support the major
water/wastewater infrastructure projects that are currently being constructed. Key
benefits of a modern and robust EAMS include:
• Predicting failure scenarios over time by analyzing asset trends and anomalies,
identifying points for operations and maintenance staff to direct their attention to
perform proactive preventive maintenance, rather than reactive maintenance,
that would minimize unplanned service outages.
• Tracking maintenance schedules and intervals to ensure sufficient staffing levels
and materials are maintained to improve operational reliability and quality-of-
service delivery.
• Ensuring faulty equipment under warranty is addressed in a timely manner with
the manufacturer.
• Organizing assets by type, age, location, and other characteristics specific to the
utility that would assist operators in troubleshooting unforeseen outages by
investigating all associated assets to the problem or identify other impacted
areas from a single failure point.
• Displaying assets using mapping and diagrams (e.g., links to the City’s
Geographic Information System) for ease of locating the asset by field staff to
reduce response time.
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• Providing direct linkage of staff work orders to digital asset records to
automatically update field data and details on work performed as assets are
serviced or replaced.
• Increasing operational and business process efficiency using historical data (e.g.,
maintenance frequency of equipment, replacement schedule of equipment, labor
hours to perform the work, etc.) to enhance operating budgets and capital
improvement program planning through a proactive management approach to
save money.
Discussion
The Water Resources Division currently uses Infor’s Hansen 8 CMMS to track locations
of its water distribution and wastewater collection system assets, but many data fields
such as warranty, maintenance history, asset health, equipment replacement history,
and more are unable to be tracked by the outdated software system. For example,
water distribution pumps and treatment process equipment at the Arcadia Water
Treatment Plant are currently not supported by the existing software. Furthermore, the
user interface of the existing software is obsolete and inefficient for supervisory and field
service staff to use while in the field.
Staff is seeking to procure and implement a modern EAMS that would best support
current operations, facilitate proactive management of its water distribution and
wastewater collection assets (pipes, valves, hydrants, etc.), and enable the addition of
treatment process assets such as the Arcadia Water Treatment Plant and the
Sustainable Water Infrastructure Project (i.e., pumps, filtration systems, storage tanks,
drives, process instruments, and electrical equipment) that are under construction.
The current EAMS system, Hansen 8, would run concurrently until February 2023, when
it is expected that Mentor APM’s EAMS system would be fully commissioned. After
implementation costs, the annual software maintenance cost would increase from
$76,731 with Hansen 8 to an average of $89,000 annually over the initial five years of
the contract.
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FY 2021-22’s total cost would include approximately 36% of the implementation cost
($30,000), the first year’s software maintenance fee ($85,000), workflow development
($13,200), and as-needed programming ($21,800).
Vendor Selection
Bidder Recommendation
Best Bidder MentorAPM, LLC
Evaluation Criteria • Experience and Technical Competence – 20% of total score
• Ability to Meet Project Work Plan and Timeliness – 20% of total
score
• Quality Control – 10% of total score
• Stability/References – 10% of total score
• Cost of Services, Cost Control – 25% of total score
• Value Add/Breadth of Service – 15% of total score
Municipal Code SMMC 2.24.190
Submittals Received
Vendor Implementation
Cost
Software/Licensing Cost
(5 years)
Additional
Services
Total
(5 Years)
Accrete Consulting
Solutions $218,200 $195,200 $223,060 $636,660
AssetWorks $260,900 $249,000 $258,280 $768,180
MentorAPM1 $82,500 $446,788 $233,712 $763,000
Nobel Systems2 $60,000 $300,000 $115,290 $475,290
Timmons Group $236,475 $265,000 $172,578 $674,053
TruePoint
Solutions $70,800 $650,000 $139,320 $930,120
1Additional services includes $40,000 for an optional Criticality Analysis.
2Bid included cost only for a three-year agreement. Assumed same cost for years 4-5.
Bid Data
Date Posted Posted On Advertise In (City
Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
01/21/2022 City’s Online
Bidding Site
Santa Monica
Daily Press
6 02/07/2022
Best Bidder Justification
The proposals were reviewed by a selection panel consisting of staff from the Information Services
Department and Public Works Department – Water Resources Division. Evaluations were based on the
following selection criteria: experience and technical competence, ability to meet project work plan and
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timeliness, quality control, stability/references, cost of services/cost control, and value added/breadth of
service. Based on these criteria, the selection panel unanimously ranked MentorAPM, LLC as the best
qualified firm to provide an Enterprise Asset Management System. Cost of services over the 5 year
period for the MentorAPM system is just above the average and median of all the bidders. The bidders
with lower cost options either did not offer the full range of services needed to support the City’s new
water/wastewater infrastructure, do not have experience in the United States, and/or may have
compatibility issues with other City software packages. MentorAPM’s system can manage the City’s
existing and future water and wastewater assets, which includes two new advanced treatment facilities
and upgrades to the Arcadia Water Treatment Plant. The MentorAPM team has vast experience
implementing asset management solutions as well as operating and maintaining water and wastewater
assets. Local agencies currently using MentorAPM include the Los Angeles County Sanitation Districts,
Irvine Ranch Water District, and Rancho California Water District. Their references also provided positive
feedback for their product and services.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Water and Wastewater Funds to
award an agreement with MentorAPM, LLC for an enterprise asset management
system. Funds are available in Water and Wastewater funds in the approved FY 2021-
23 Biennial Budget. Future year funding is contingent on Council budget approval.
Contract Request
FY 2021-22
Budget Request Amount Department/CIP Account # Total Contract Amount
$75,000 50500001.529230 $381,500
$75,000 51500001.529230 $381,500
Total: $763,000
Prepared By: Sunny Wang, Water Resources Manager
Approved
Forwarded to Council
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Attachments:
A. Oaks Initiative (MentorAPM)
B. Written Comments
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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 # ___________________________2021-REQ-00090
Tacoma Zach CEO
03/09/2022
tacoma.zach@mentorapm.com 480.414.4636
MentorAPM
Tacoma Zach, CEO
John Clow, COO
Tacoma Zach
John Clow
3.C.a
Packet Pg. 157 Attachment: Oaks Initiative (MentorAPM) (4859 : Enterprise Asset Management System (Water))
1
Vernice Hankins
From:Tricia Crane <1triciacrane@gmail.com>
Sent:Monday, April 11, 2022 8:40 PM
To:Sue Himmelrich; Kristin McCowan; Christine Parra; Lana Negrete; Phil Brock; Oscar de la Torre; Gleam
Davis; councilmtgitems; David White; Susan Cline; Anuj Gupta
Subject:Oppose Agenda Item 3.C - Agreement with Mentor APM, LLC for an Enterprise Asset Management
System
EXTERNAL
To: City Council and City Manager
From: Tricia Crane
Re: Oppose Agenda Item 3.C. - Agreement with Mentor APM, LLC - April 12, 2022
Dear City Manager and Members of the City Council,
I am writing this letter to request that the City Manager withdraw support and Council reject the
proposal in 3.C until a number of questions are asked and consideration is given to the possible
benefit to the City of a different and more holistic approach to asset management.
Staff is requesting approval of an expenditure of $763,000 over a five-year period for an Enterprise
Asset Management System for our water systems because they report that: “The CMMS is over 20
years old and is not capable of supporting the $200+ million advanced water/wastewater
infrastructure (e.g., Sustainable Water Infrastructure Project, Olympic Advanced Water Treatment
Facility, and expanded Arcadia Water Treatment Plant) that is being constructed.
Staff recommends executing a contract with Mentor APM, LLC to implement a modern EAMS
solution” for the City’ water systems.
It appears from the Staff report that the only justification presented for this expenditure is that the
existing system is 20 years old, and the staff would like a “modern” solution.
Here are some questions we should be asking before we approve this request:
Item 3.C 04/12/22
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3.C.b
Packet Pg. 158 Attachment: Written Comments (4859 : Enterprise Asset Management System (Water))
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Have there been incidents where manufacturer recommended preventative maintenance could not
be performed because of limitations of the existing software?
Please ask staff to explain why the current software 'is not capable of supporting the $200+ million
advanced water/wastewater infrastructure (e.g. Sustainable Water Infrastructure Project, Olympic
Advanced Water Treatment Facility, and expanded Arcadia Water Treatment Plant) that is being
constructed."
Why are asset management systems in our city siloed by department?
Is it time to evaluate the benefit of consolidating asset management software for the entire city?
(Asset management for fleet vehicles, city buildings, parks, police…)
It is my understanding that there exists asset management software that can be used across City
departments. Should we not explore this option before committing to this single system for
water? Again, based on my understanding, asset management software should be able to provide
for the needs of all departments and as a result reduce redundant positions.
Please reject this limited proposal until these questions have been asked and answered.
The benefits of scale from streamlining the whole system and eliminating redundant staff positions
could be profound for the City budget.
Sincerely,
Tricia Crane
Item 3.C 04/12/22
2 of 2 Item 3.C 04/12/22
3.C.b
Packet Pg. 159 Attachment: Written Comments (4859 : Enterprise Asset Management System (Water))