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APPROVE FINDINGS AND ADOPT A RESOLUTION TO AUTHORIZE A CONTRACT WITH THIRKETTLE CORPORATION, DBA AQUA METRIC SALES COMPANY, FOR INSTALLATION OF WATER METERS, AUTOMATED METER READING EQUIPMENT, AND SOFTWARE
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.
2. Authorize a six-year contract with Thirkettle Corporation, dba Aqua Metric Sales Company, of Sacramento, California, for the Water Meters, Meter Reading Equipment, and Software Project (Project UH22001) for a total amount not-to-exceed $17,220,369.72 (Exhibit 1 to the Resolution).
It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this resolution.
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Summary
The City maintains over 50,000 water meters throughout its water service area in north and south Stockton. These meters record the amount of water consumed by residential and business customers. Currently, water consumption data is collected monthly on a manual basis by Municipal Utilities Department (MUD) staff from each individual meter. The water meter usage data is used to calculate customer water bills, which is one of the main sources of Water Utility revenue. To improve operational efficiencies, eliminate manual water meter reading and provide water customers with updated water meter equipment, MUD plans to implement a program to replace the existing conventional water meters with an automated meter reading system throughout the service area. Automated metering technology is used widely by water utilities in the U.S. to successfully collect water consumption data to benefit both water utilities and customers.
On March 1, 2023, the City advertised a Request for Proposals for Water Meters, Meter Reading Equipment, and Software Project (Project UH22001). On April 13, 2023, four (4) firms submitted proposals for this project. The staff selection committee evaluated the proposals and selected Aqua Metric Sales Company of Sacramento, California as the most qualified and highest ranked firm. This project was presented to the Water Advisory Group (WAG) on October 4, 2023, and the Council Water Committee (CWC) on November 9, 2023. Both the WAG and CWC recommended this contract be moved to the City Council for review and approval.
In addition, to better inform water customers of the program, MUD will conduct a comprehensive public outreach program to inform water customers in the service area about the benefits of the new metering system, the program timing & installation schedule, and how to use available tools to review consumption patterns to help improve household water conservation efforts.
Staff recommends that the City Council adopt a resolution to approve findings pursuant to an exception to the competitive bidding process and authorize the City Manager to execute a six-year contract with Aqua Metric Sales Company of Sacramento, California, in the amount not to exceed $17,220,369.72 to upgrade the existing manual water meter and data collection system to a fully automated system throughout the water service area.
DISCUSSION
Background
Automated metering technology has been successfully used by many water utilities throughout the U.S. to automatically read customer water consumption data. The current manual meter reading process and system in the City is obsolete, lacks accuracy, and is labor intensive, requiring MUD water system operators to read approximately 50,000 water meters monthly to collect water consumption data across the service area.
New automated meters will collect data and upload this information to a cloud-based platform using a dedicated radio frequency (RF). The RF and the broadcast range to reach the City’s new automated metering technology will be accomplished by installing four radio antennas located at MUD water storage reservoir sites and the water field office. The cloud-based platform will provide data transfer to the current HTE billing system and future Tyler Munis billing system when implemented by the City. To verify that the new system is accurate, testing will be performed as new equipment is installed. As the program installation moves forward, the MUD water system operators assigned to meter reading will be retrained and assigned to other water distribution programs.
In addition, to better inform water customers of the program, MUD will conduct a comprehensive public outreach program to inform water customers in the service area about the benefits of the new metering system, the program timing & meter installation schedule, and how to use available tools to review consumption patterns to help improve water conservation efforts. The new automated water meter system will also be able to provide remote diagnostic capabilities that will directly benefit customers by quickly detecting household leaks, water line breaks, and other system problems.
Present Situation
A request for Proposals for Water Meters, Meter Reading Equipment, and Software (Project UH22001) was publicly advertised on March 1, 2023, in The Record and on the City’s Bid Flash webpage. On April 13, 2023, the City received four proposals from the following companies:
1. Ferguson Enterprises, LLC dba Ferguson Waterworks of Stockton, California
2. Mueller LLC of Atlanta, Georgia
3. Thirkettle Corporation, dba Aqua Metric Sales Company, Sacramento, California
4. Zenner USA, Inc. of Addison, Texas
Staff evaluated all proposals based on firm experience, qualifications, project work plan, organizational structure, and cost. Aqua Metric Sales Company was selected as the most qualified firm for the project.
Staff recommends approving a six-year contract with Aqua Metric Sales Company of Sacramento, California, for the not-to-exceed amount of $17,220,369.72. A six-year contract was determined to be the optimum period to complete the installation of the new automated system throughout the entire service area.
Findings
Pursuant to Stockton Municipal Code (SMC) section 3.68.070, the Council may approve findings which support and justify an exception to the competitive bidding process. The following findings support such an exception:
1. A strict cost-competitive basis for the selection of an automated water metering firm may lower the quality and thoroughness of the services provided.
2. Use of the RFP process is appropriate for this agreement because it relies on the evaluation of professional qualifications and performance as the basis for the selection of a vendor, which is a typical practice for this type of work.
3. Considering the size, complexity, and schedule requirements of the project, the City does not have sufficient staff resources to monitor and ensure compliance of the project in a cost-effective and timely manner.
4. The City negotiated the contract following the solicitation of competitive proposals in accordance with SMC section 3.68.070.A.3.
This project was presented to the Water Advisory Group (WAG) on October 4, 2023, and the Council Water Committee (CWC) on November 9, 2023. Both the WAG and CWC recommended this contract be moved to the City Council for review and approval.
Staff recommends the City Council approve the findings and adopt a resolution authorizing the City Manager to execute a six-year contract in the amount not to exceed $17,220,369.72 with Aqua Metric Sales Company to upgrade the City’s existing manual metering and data collection system to a fully automated water meter system.
LOCAL EMPLOYMENT ORDINANCE
The contract amount for this project is over $100,000 and is therefore subject to the Local Employment Ordinance. The ordinance requires all City contracts for public works or improvements to make a good faith effort to hire no less than 50 percent of the contractor’s total construction workforce, including any subcontractor workforce, measured in labor work hours, is comprised of Stockton residents.
COMMUNITY WORKFORCE AND TRAINING AGREEMENT
On July 26, 2016, the City Council adopted a Community Workforce and Training Agreement (CWTA). The CWTA became effective on August 25, 2016, and applies to all Public Works projects over $1,000,000 that are bid after the effective date. CWTA requirements include, among other conditions, preconstruction conferences for coordination, recognition of union(s) as the sole bargaining representative, requirements for contractors and employers to use union referral systems, and apprentice programs to develop adequate numbers of competent workers, including that 50 percent of apprentices employed on the project are from Stockton or San Joaquin County.
This project is subject to the requirements of the CWTA.
FINANCIAL SUMMARY
The FY 2023-24 Annual Budget includes sufficient budget in the Advanced Metering Infrastructure (Project UH22001). Costs for the subsequent years will be budgeted in the same account subject to City Council approval during the annual budget development process. The new automated water meter reading equipment and software will be compatible with and be able to import data to both the City’s HTE and future Tyler Munis billing system.
There is no impact to the General Fund, or any other unrestricted fund, from this action.