COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Timothy Kellett, Deputy Director of Public Works
SUBJECT:Title
Discussion and Action: Requirements Contract for Advanced Metering Infrastructure and Beacon SaaS Managed Solution Master Agreement with Badger Meter (Ron Foggin)
Body
FUNDING SOURCE:
CIP-Grant
Water Utility Fund
PURPOSE:
To consider awarding a multi-year Requirements Contract with Badger Meter, Inc. (500534) to purchase upgraded water meters with advanced meter reading technology to replace existing meters and approve Beacon Software as a Service (SaaS) Managed Solution Master Agreement to implement the associated advanced meter reading data collection system, in accordance with City Code Section 3.10.030.1.
BACKGROUND:
In 2022, Lake Havasu City performed a rate study for the water and wastewater systems. From the study, the City learned that water loss was over the industry standard of 10%. To address this deficiency, staff reviewed possible options to improve water loss and capture more of the water use within the water system. One technology identified in this process was upgrading existing water meters to an Advance Meter Infrastructure. This technology allows for remote read capability, alerts for uncommonly high-water use, and more finite tracking of water use. The new access to data and the decreased time to learn about inefficient water use will enable staff to more quickly respond and address potential water loss issues.
Once the water meter technology improvement was identified as a possible solution, staff applied for a Water Infrastructure Finance Authority (WIFA) grant to help with the cost of purchasing and installing the system. The successful application secured $3 million in funding to begin the program. Staff then released a Request For Proposals to seek the best Advance Meter Infrastructure system for Lake Havasu City. Nine proposals were received and evaluated, and Badger Meters was determined to be the best option for Lake Havasu City.
This proposed action seeks Council’s award of a Requirements Contract that contains the terms and pricing for the purchase of the updated water meters and approval of the Beacon SaaS Managed Solution Master Agreement (Master Agreement). The meter purchase prices contained in the Requirements Contract will remain fixed for one year and then be annually adjusted based on the annual Consumer Price Index (All Urban Users). The SaaS Service Unit price will remain fixed for one year with a 1.5% annual increase adjustment thereafter. The Master Agreement establishes the hosted, on-demand, web-based services website (portal) that will be accessible to customers with the updated meters.
COMMUNITY IMPACT:
This project will improve the community’s ability to understand their water use and respond to water inefficiencies. This project will also increase water efficiency throughout the water system thus helping to conserve this precious resource.
FISCAL IMPACT:
Initial funding will be from the WIFA Water Conservation Grant Funding in the amount of $3,000,000 with a $750,000 match from Lake Havasu City using a combination of cash and in-kind services from the Water Utility Fund. Additional funding will be sought through other grants and as part of the Capital Improvement Plan approved by City Council. A follow-up item will be placed on an upcoming Council agenda for discussion and possible action that will describe the break-down of funding sources and the projected annual spending for future purchases within the 10-year term of the agreement.
ATTACHMENTS:
Badger Meter Best and Final Offer Response to RFP
Beacon SaaS Managed Solution Master Agreement
Committee Evaluation Tabulation
SUGGESTED MOTION:Recommended action
I move to award the Requirements Contract for Advanced Metering Infrastructure and approve the Beacon SaaS Managed Solution Master Agreement with Badger Meter, Inc.; authorize the City Manager to execute the agreements on behalf of the City; and authorize staff to exercise the option to renew the Requirements Contract for an additional five-year term.