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ITEM  37 City Council Memorandum      Public Works & Utilities  Memo No. UA25-015         Date: September 12, 2024 To: Mayor and Council Thru: Joshua H. Wright, City Manager Andy Bass, Deputy City Manager John Knudson, Public Works and Utilities Director From: Cristabel Dykstra, Utilities Administrative Support Manager Subject: Agreement No. 4800, with Ferguson Enterprises, LLC, for the Advanced Metering Infrastructure (AMI) Project

Proposed Motion:

Move City Council approve Agreement No. 4800, with Ferguson Enterprises, LLC, for the AMI project, in an amount not to exceed $14,000,000.

Background/Discussion:

The city collects approximately 87,000 monthly water meter reads using drive-by technology known as Automated Meter Reading (AMR). The reads are collected to produce and distribute monthly bills to the city's utility customers. This project will transition the city from AMR to AMI. AMI is an integrated system of smart meters, communication network, and data management which provides advanced, daily consumption data. The city will strategically install a network of devices known as gateway collectors (small antennas). With AMI, customers will be able to view and manage their daily water consumption data, receive leak detection alerts and water system notifications, and pay their monthly bill through a customer portal. On May 25, 2023, City Council awarded a contract to Arcadis U.S., Inc., for project management support and technical advisory services related to the implementation of AMI. On July 17, 2023, authorization was requested to submit a grant application through the Environmental Protection Agency (EPA) for grant funds to be used toward the AMI project. With the support of Congressman Greg Stanton, the AMI project was identified as eligible under the Federal Fiscal Year (FY) 2022 Consolidated Appropriations Act for Congressionally Directed Spending. The department is actively working with the EPA to receive this $990,000 grant funding.  As part of the AMI project, approximately 48 gateway collectors will be purchased and installed and approximately 30,000 meters will be replaced. These meters are incompatible with current AMI technology and will also be reaching their normal end-of-life replacement within the next three to four years. The life expectancy of a water meter based on industry standards is 15 years. Meters greater than 15 years old have a higher tendency to read inaccurately, resulting in incorrect billing or equipment failure. These new meters will not only be compatible with AMI but will also have a life expectancy of 20 years. This agreement includes the purchase and installation of the gateway collectors and the purchase of small and large meters, including meter box replacements. The agreement will also cover cellular meter endpoints to fill gap areas of the network where a collector cannot be installed. Grant funds in the amount of $990,000 will be used and are included as part of this contract.

Evaluation:

The city has standardized its new and replacement water meters to the Neptune brand. Ferguson Enterprises, LLC, is the sole authorized distributor of Neptune water meters and Neptune technology. The term of this agreement will be for the period from September 2024 through March 2026, with the option of one (1) one-year extension, which corresponds with the anticipated completion timeframe for the project.

Financial Implications:

The funding for the AMI project will be spanned over two fiscal years, and is currently reflected in the 2025-2034 Capital Improvement Plan. The portion allocated in the Capital Improvement Program for FY 2025-2026 will be part of the FY 2025-2026 budget process.

Fiscal Impact

Account No. Fund Name Program Name Dollar Amount CIP Funded Y/N 605.3820.6419.6WA677 WATER CAPITAL AMI 13,010,000 Y 417.3820.6419.6WA677 CAPITAL GRANTS AMI 990,000 Y

Attachments Agreement

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