SR 09-26-2023 5H
City Council
Report
City Council Meeting: September 26, 2023
Agenda Item: 5.H
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To: Mayor and City Council
From: Rick Valte, Public Works Director, Public Works, Water Resources
Subject: Award Purchase Order with Badger Meter, Inc. to Furnish and Deliver Water
Meters
Recommended Action
Staff recommends that City Council:
1. Adopt a finding of categorical exemption pursuant to Section 15302
(Replacement or Reconstruction) of the California Environmental Quality Act
(CEQA) Guidelines.
2. Authorize the Procurement Manager to issue a purchase order with Badger
Meter, Inc. for the purchase of positive-displacement water meters for the Water
Resources Division of the Public Works Department. This recommended award
is made as an exception to the competitive bidding process pursuant to Santa
Monica Municipal Code (SMMC) Section 2.24.250(b) and is for a total amount
not to exceed $1,658,000 over a five-year period, with future year funding
contingent on Council budget approval.
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Summary
The City of Santa Monica’s Water Resources Division is charged with providing safe
and reliable water and wastewater services to all residential, commercial, and
institutional accounts within the City of Santa Monica. Each account is connected to the
city water supply through a water meter that registers usage for bimonthly billing for
water and wastewater services. New meters are installed for new construction projects
and to replace aging meters on an approximate 20-year cycle to ensure the accuracy of
meter reads and billing. Staff recommends issuing a purchase order with Badger Meter
in an amount not to exceed $1,658,000 over a five-year period for the purchase of
positive-displacement water meters along with data transmissions fees to transmit
customer water usage data for billing.
Discussion
The City owns and maintains over 18,000 water meters throughout its water distribution
system which are used to record water usage so that the Billing and Collections Office
in the Revenue Division of the Finance Department may establish the quantity of water
used and wastewater discharged to be billed to the customer. Water meters contain
mechanical components which deteriorate over time, resulting in a loss of accuracy as
water passes through the meter without being registered. Replacing meters on a timely
basis can reduce water losses or “non-revenue” water from the City’s distribution
system. New meters are also requested for new construction or tenant improvements
through the Public Works Department permit counter. The City recovers the cost for the
new meter purchases and installations through permit fees.
On August 23, 2022, City Council awarded an agreement to Badger Meter, Inc. to
remove and replace approximately 65 percent of the City’s existing meters and equip
100 percent of the City’s meters with Advanced Metering Infrastructure (AMI)-ready
water meters (“AMI project.”) The AMI project will enhance customer experience by
providing real-time monitoring of their water usage and leak alerts. The completion of
the AMI project in late 2026 will result in modernizing the majority of the City’s existing
water meters to Badger AMI-equipped advanced water meters.
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Approximately 35% of the meters will not be replaced through the AMI project as they
were either already AMI ready, scheduled for replacement prior to the AMI project, or
were replaced within the last 7 years. Eventually all of the City’s water meters would be
replaced with Badger meters with data transmitting abilities. The purchase order
requested is for operational maintenance and replacement of the existing badger
meters not replaced during the AMI project and any new meters requested to be
installed by water customers.
Vendor Selection
This purchase order is being requested under the exception to the competitive bidding
process for maintenance of the city’s meters (e.g., defective meters) and installation of
new meters for new construction that are not covered by the AMI project.
Exception to Competitive Bidding
Staff recommends Badger Meter, Inc. to furnish and deliver positive-displacement water
meters as an exception to competitive bidding per Muni Code 2.24.250 (b). This
purchase meets the City’s exception to the competitive criteria (b), as the meters are
proprietary to Badger.
b. when a good or service is copyrighted, patented or only available form one license
holder, including, proprietary goods, original equipment manufacturers and/or
exclusive distributors.
Environmental Review
The replacement of water meters is categorically exempt pursuant to
Section 15302 (Replacement and Reconstruction) of the California Environmental
Quality Act (CEQA) Guidelines. Section 15302 exempts Class 2 projects which
“consists of replacement or reconstruction of existing structures and facilities where the
new structure will be located on the same site as the structure replaced and will have
substantially the same purpose and capacity as the structure replaced”. The new water
meters would replace existing meters with essentially the same purpose and capacity,
and therefore, the award for replacement water meters is categorically exempt from
CEQA.
Past Council Actions
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Meeting Date Description
8/23/2022 (Attachment A) Bid Award for Advanced Metering Infrastructure (AMI)
Meter Replacement
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from the Water Fund to award a
purchase order to Badger Meter, Inc. for the purchase of positive-displacement water
meters.
Purchase Order Request
FY 2023-24
Request Amount Department Account # Future Years
Amount
Total Contract
Amount
$300,000 50500001.525080 $1,358,000 $1,658,000
Future year funding is contingent on Council budget approval.
Prepared By: Thomas Poon, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Staff Report - August 23, 2022
B. Oaks Initiative Form - Badger Meter, Inc.
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City Council
Report
City Council Meeting: August 23, 2022
Agenda Item: 5.M
1 of 5
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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Packet Pg. 1083 Attachment: Staff Report - August 23, 2022 (5916 : Badger Water Meters)
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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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Packet Pg. 1084 Attachment: Staff Report - August 23, 2022 (5916 : Badger Water Meters)
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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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Packet Pg. 1085 Attachment: Staff Report - August 23, 2022 (5916 : Badger Water Meters)
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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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Packet Pg. 1086 Attachment: Staff Report - August 23, 2022 (5916 : Badger Water Meters)
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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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Packet Pg. 1087 Attachment: Staff Report - August 23, 2022 (5916 : Badger Water Meters)
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 personwhois:(a)trustee,(b)director,(c)partner,(d)
officer,orhas(e)morethan a ten percent interest in theentity.
Public benefits include:
1.Personal services contracts in excess of $25,000 over any 12-monthperiod;
2.Sale of material, equipment or supplies to the City in excess of $25,000 over a
12-monthperiod;
3.Purchase, sale or lease of real property to or from the City in excess of
$25,000 over a 12- monthperiod;
4.Non-competitive franchise awards with gross revenue of $50,000 or more
inany 12-monthperiod;
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-monthperiod.
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:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
Kim K. Stoll Vice President - Sales & Marketing
08/09/2023
bids@badgermeter.com (800)876-3837
Badger Meter, Inc.
None
Refer to Attached List
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Packet Pg. 1088 Attachment: Oaks Initiative Form - Badger Meter, Inc. (5916 : Badger Water Meters)
BADGER METER, INC.
BOARD OF DIRECTORS 2/2023
Kenneth C. Bockhorst
•Chairman, President and Chief Executive Officer: Badger Meter, Inc.
Todd A. Adams
•Chairman, President and Chief Executive Officer: Rexnord
Gale E. Klappa
•Non-executive Chairman: WEC Energy Group
Gail A. Lione
•Senior Counsel: Dentons
•Adjunct Professor of Intellectual Property Law: Georgetown University School of Law
•Retired Executive Vice President, General Counsel and Corporate Secretary & Chief
Compliance Officer: Harley-Davidson Corporation
James W. McGill
•Retired Executive – Eaton Corporation
Tessa Myers
•Global Vice President- Software & Control: Rockwell Automation
James F. Stern
•Executive Vice President, General Counsel and Secretary: A.O. Smith Corporation
Glen E. Tellock
•President and Chief Executive Officer: Lakeside Foods
Henry F. Brooks
•President - Power & Controls, Collins Aerospace (Raytheon Technologies Corporation)
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Packet Pg. 1089 Attachment: Oaks Initiative Form - Badger Meter, Inc. (5916 : Badger Water Meters)
Badger Meter, Inc. Corporate
Officers December 22, 2023
Elected Executive Officers:
Kenneth C. Bockhorst President and Chief Executive Officer
Robert A. Wrocklage Sr. 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
Sheryl L. Hopkins 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*:
Jennifer A. Awah-Manga Assistant Secretary Proposal Lead – Bid & Contract Administration
Joanne K. Crumer-Pascale Assistant Treasurer Milwaukee Accounting Manager
Wayne Dennis Assistant Secretary Senior Director – International Sales and Marketing and Business Development
Charla D. Dury Assistant Secretary Proposal Lead – Bid & Contract Administration
Frank J. Fenton Assistant Secretary Director – Utility Sales
Charity Granberry Assistant Treasurer Milwaukee Accounting Manager
David A. Kutil Assistant Treasurer Director – Accounting & External Reporting
Benjamin E. Loomis Assistant Secretary Milwaukee Credit Manager
David A. Miller Assistant Secretary Counsel I
Pamela G. Stokke-Ceci Assistant Secretary Assistant General Counsel and Director
*Scope of authority for Assistant Secretaries determined by job description and duties, as approved by the Corporation’s Secretary
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Packet Pg. 1090 Attachment: Oaks Initiative Form - Badger Meter, Inc. (5916 : Badger Water Meters)