City Council Report 915 I Street, 1 st Floor Sacramento, CA
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1 City Council Report 915 I Street, 1 st Floor Sacramento, CA File ID: May 22, 2018 Consent Item 10 Title: Agreement: Software and Hardware Support with Badger Meter (Two-Thirds Vote Required) Location: Citywide Recommendation: Pass a Resolution authorizing the City Manager or City Manager s designee to: 1) suspend competitive bidding in the best interests of the City; and 2) execute an Agreement with Badger Meter to provide software license, hardware and software support to My Water customer portal and Beacon Mobile Software for a term of five years in an amount not-to-exceed $820,632. Contact: Sheri Adams, Program Specialist, (916) , Information Technology Department; William Busath, Director, (916) ; Stacy Larkin, Administrative Technician, (916) , Department of Utilities Presenter: None Attachments: 1-Description/Analysis 2-Resolution 3-Agreement: Badger Meter Susana Alcala Wood, City Attorney Mindy Cuppy, City Clerk John Colville, City Treasurer Howard Chan, City Manager Page 1 of 34
2 File ID: Consent Item 10 Description/Analysis Issue Detail: In 2009, the City Council approved several related agreements to implement the Water Meter Reading Automation (WMRA) Project and begin installing Automated Meter Infrastructure (AMI) on the City s water meters. In 2013, City Council approved a Software License agreement (City Agreement No ) with Badger Meter for the operation and ongoing support of the Badger Meter AMI system. City staff is recommending the approval of a five-year Software License agreement to replace the existing agreement with Badger Meter for the operation and ongoing support of the Badger Meter AMI system. Policy Considerations: City Council approval is required for contracts of $100,000 or more. Economic Impacts: None Environmental Considerations: The Community Development Department, Environmental Services Manager has determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA). CEQA Guidelines Section 15378(b). The activity is a continuing administrative or maintenance activity, such as the purchase of supplies, and is not subject to CEQA. CEQA Guidelines Section 15060(c)(3). Sustainability: The on-going monitoring and implementation of the WMRA Project together with the installation of water meters promotes sustainability by allowing the City to collect meter reads accurately and charge customers based on water consumption, thereby providing an incentive for City customers to use water more efficiently and enabling the City to enforce water conservation programs. In addition, the AMI technology provides a better means of monitoring water usage and reducing leakage, both for the City and its customers. Commission/Committee Action: Not Applicable Rationale for Recommendation: Staff recommends suspending competitive bidding in the best interests of the City and execute a five year contract with Badger Meter. The infrastructure and software are in place to effectively monitor the AMI system. To replace the system at this point with another brand would be costly. Approving this agreement will keep the WMRA project on track without undue expense. The City is currently very satisfied with the performance of Badger under its current contract and would like to continue the working relationship. This agreement will replace the existing agreement that will expire this year. City of Sacramento May 22, 2018 powered by Legistar Page 2 of 34
3 File ID: Consent Item 10 Financial Considerations: Sufficient funding is available in the proposed DOU Fiscal Year (FY) 2018/19 Operating budget to cover the first year of the agreement subject to City Council approval of the FY2018/19 budget. Funding for succeeding fiscal years shall be subject to funding availability. Local Business Enterprise (LBE): Badger Meter is not an LBE. The minimum LBE participation requirement is waived as the City has suspended competitive bidding and utilized and alternate procurement method to select a vendor. City of Sacramento May 22, 2018 powered by Legistar Page 3 of 34
4 RESOLUTION NO XXXX Adopted by the Sacramento City Council XXXXXXX, 2018 SOFTWARE AND HARDWARE SUPPORT AGREEMENT WITH BADGER METER BACKGROUND A. The Department of Utilities has an ongoing need to support the Badger Meter AMI system. B. City Code Section allows the City Council to suspend competitive bidding, on a 2/3 vote, when the City Council determines that it is in the best interests of the City to do so. It is in the City s best interest to suspend competitive bidding for the software support services, because the infrastructure and software are in place to effectively monitor the Badger Meter AMI system. To replace the system at this point with another brand would be costly. Approving this agreement will keep the project on track without undue expense. C. Sufficient funding is available in the proposed Department of Utilities Fiscal Year (FY) 2018/19 operating budget. Funding for support services under the proposed agreement in future fiscal years will be subject to available funding in the applicable fiscal year. BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS: Section 1. Section 2. Competitive bidding is suspended for Software and Hardware Support of the Badger Meter AMI Agreement. The City Manager or the City Manager s designee is authorized to execute a Software and Hardware Support Agreement with Badger Meter for ongoing support of the Badger Meter AMI for a total amount not to exceed $820,632 for the five-year term. Page 4 of 34
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