REPORT TO THE CITY COUNCIL FROM: PAUL AMICO, PE, Interim Director Department of Public Utilities BY: CORY ASHER, Assistant Director Department of Public Utilities - Wastewater Management Division ART ALVAREZ, Water/Wastewater Manager-Certified Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to Hadronex, Inc., dba SmartCover Systems, to provide access to a web-based remote monitoring dashboard, remote calibration support, and warranty coverage of all system parts for City-owned SmartCover units (Citywide): 1. Affirm the City Manager's determination that Hadronex, Inc., dba SmartCover Systems, is uniquely qualified; 2. Award a service agreement with Hadronex, Inc., dba SmartCover Systems, in the total fee amount not to exceed $120,290 for a three-year term, for access to a web-based remote monitoring dashboard, remote calibration support, and warranty coverage of all system parts for City-owned SmartCover units; 3. Authorize the Interim Director of Public Utilities or their designee to execute a service agreement with Hadronex, Inc., dba SmartCover Systems, in the total fee amount not to exceed $120,290 for a three-year term. ..Body RECOMMENDATION Staff recommends City Council affirm the City Manager's determination that Hadronex, Inc., dba SmartCover Systems (SmartCover), is uniquely qualified to provide access to a web-based remote monitoring dashboard, remote calibration support, and warranty coverage of all system parts for City-owned SmartCover units, and award a service agreement with SmartCover, in the total fee amount not to exceed $120,290 for a three-year term, and authorize the Interim Director of Public Utilities or their designee to execute a service agreement with SmartCover, in the total fee amount not to exceed $120,290 for a three-year term. EXECUTIVE SUMMARY The Department of Public Utilities (DPU) requests that City Council affirm the City Manager's uniquely qualified determination and award a service agreement with SmartCover for access to a web-based remote monitoring dashboard, remote calibration support, and warranty coverage of all system parts for City-owned SmartCover units. DPU's Wastewater Management Division (WMD) installed 35 SmartCover units throughout the City to monitor liquid levels in sewer manholes and proactively detect the potential for sanitary sewer overflows. SmartCover provides continuous liquid level monitoring of the City's sanitary sewer system with 24/7 access via a secure web-based dashboard. Its patented SmartTrend(r) software delivers predictive advisories, alarms, and maintenance alerts. At the same time, the system's design allows installation without confined space entry, improving staff safety. SmartCover relies on Iridium(r) satellite communications for uninterrupted coverage. Because SmartCover designs and manufactures its proprietary products and is the sole provider of calibration support, data management, and warranty services, the company is uniquely qualified to support City-owned units. BACKGROUND The City owns, operates, and maintains a wastewater collection system consisting of approximately 1,600 miles of sewer mainlines, 25,000 manholes, 55 junction structures, and 18 City-owned lift stations. WMD installed 35 SmartCover units under manhole covers throughout the City to provide 24/7 liquid level monitoring in areas of concern, including as a redundancy around lift stations. SmartCover units are used by WMD both proactively and reactively. They are an indispensable component of the City's compliance with the State Water Resources Control Board's Statewide Waste Discharge Requirements General Order for Sanitary Sewer Systems ("General Order"). SmartCover monitoring alerts WMD to an issue in the collection system that is causing a surcharge, providing valuable time for response and remediation before the surcharge becomes a spill, supporting public health and safety protection efforts and General Order compliance. SmartCover units are battery-operated and communicate via satellite signal. WMD monitors real-time data via the SmartCover web-based remote monitoring dashboard. The installation and battery replacement of SmartCover units do not require confined space entry and are completed by WMD staff with remote calibration support from SmartCover. Information Services Department has reviewed and approved the technology procurement. The City Attorneys' Office has reviewed and approved as to form. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, this contract approval for SmartCover services does not qualify as a "project" as defined by CEQA. LOCAL PREFERENCE Local preference is not applicable because SmartCover Systems is uniquely qualified. FISCAL IMPACT There is no impact to the General Fund. City-owned SmartCover units are installed Citywide. Appropriations for this service are included in the Fiscal Year 2026 Wastewater Management Division Operations and Maintenance Budget within the Sewer Enterprise Fund (4500-4501). Future annual purchases will be included in future fiscal year budgets. This is a three-year service agreement. Attachments: Uniquely Qualified Memorandum Service Agreement