REPORT TO THE CITY COUNCIL August 20, 2020 FROM: MICHAEL CARBAJAL, Director Department of Public Utilities THROUGH: BUD TICKEL, Assistant Director Department of Public Utilities-Water Division CHRISTOPHER CARROLL, Manager Department of Public Utilities-Water Division BY: RON SIMONS, Water System Supervisor Department of Public Utilities-Water Division SUBJECT ..Title Approve an amendment to the requirements contract with Metron-Farnier, LLC, to increase the total annual contract from $143,930.68 to $307,000 for the purchase single jet water meters and parts (Bid File 9396) (Citywide) ..Body RECOMMENDATIONS Staff recommends that City Council approve an amendment to the requirements contract with Metron-Farnier, LLC, to increase the total annual contract amount from $143,930.68 to $307,000 for the purchase single jet water meters and parts; and extend the contract to July 22, 2021. EXECUTIVE SUMMARY The Department of Public Utilities, Water Division, implemented a comprehensive large water meter testing program in 2018 to identify low performing meters that need repair or replacement. Accurate water meters are a requirement for water loss control, accounting, revenue collection and conservation. The water meter testing program has resulted in a significant increase in replacement meters and parts necessitating an amendment to the requirements contract with Metron-Farnier. BACKGROUND On July 10, 2017, City Council approved a requirements contract with Metron-Farnier for the purchase of large water meters and parts (3-inch to 8-inch diameter). The contract term was for one-year with provisions for two one-year extensions. The original contract is set to expire this year. The Water Division currently maintains over 1,300 large water meters. In the 3-inch to 8-inch diameter size range, single jet water meters have proven to be an effective meter for the City's water supply as they are usually unaffected by sand and small debris, and are very accurate at both low and high flows. Unfortunately, water meters can lose their sensitivity over time and fail to accurately monitor how much water the customer is consuming resulting in lost revenue. While the majority of water meters maintained by the Water Division are small diameter, large water meter installations are critical to ensuring accurate water measurement, accounting, and revenue collection for the Water Division. Large meters are also more costly to maintain, and require extensive planning as they are heavy, and removal for service or testing can be time consuming. Roughly one-half of the large water meters in the City's system are nearing the end of their expected life cycle. To ensure accuracy of these aging large meters, the Water Division increased large water meter testing during 2018. Continued efforts during 2019 resulted in over 700 meters tested. The increased meter testing has resulted in higher than anticipated purchase of large meters and parts under the requirements contract with Metron-Farnier. To continue to support ongoing large water meter testing, repair, and replacement, staff recommends approval of an amendment to the requirements contract with Metron-Farnier. The contract amendment has been approved as to form by the City Attorney's Office. Upon approval by the City Council, the amendment will be executed by the Director of Public Utilities or designee, who has been delegated this authority by the City Manager. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference is not applicable as this is an amendment to an existing contract. FISCAL IMPACT Approval of the amendment to the requirements contract will not impact the General Fund. Appropriations for the acquisition of single jet water meters are included within the Water Enterprise Fund as part of the Capital Improvement Project Water Inventory budget. Attachments: 1. Amendment to Contract Agreement 2. Product Requirements Contract