Report Prepared by: Johnnie Baptista, Public Works Manager - Water
Title
SUBJECT: Approval of a First Amendment to Master Agreement with Badger Meter, Inc., for the Cloud-Based Automatic Meter Reading System and Approval of Purchase of Goods Agreement for Replacement Water Meter Endpoints Due to Cellular Changes from 3G to 4G in the Amount of $528,660, Plus Taxes and Freight
REPORT IN BRIEF
Considers approving a First Amendment to the Master Agreement with Badger Meter, Inc., to reduce the monthly service fee and approval of replacement water meter endpoints due to wireless cellular service changes from 3G to 4G in the amount of $528,660 plus taxes and freight.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the First Amendment to Master Agreement with Badger Meter, Inc., for the cloud-based automatic meter reading system; and,
B. Approving the Purchase of Goods Agreement with Badger Meter, Inc., for the purchase of replacement water meter endpoints in the amount of $528,660, plus taxes and freight; and,
C. Authorizing the City Manager or Deputy City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or
2. Approve, subject to modifications as conditioned by City Council; or,
3. Refer to staff for reconsideration of specific items; or,
4. Continue to a future meeting; or,
5. Deny.
AUTHORITY
Charter of the City of Merced, Section 200 - Powers and Merced Municipal Code Section 3.04.120 - Written Contracts.
CITY COUNCIL PRIORITIES
As provided for in the 2021-22 Adopted Budget.
DISCUSSION
On May 2, 2016, City Council approved a 10-year Master Agreement with Badger Meter for the cloud-based automatic meter reading system.
In February 2021, Badger Meter shared the changes that were coming to their carrier network and the expected impacts to the City meter reading system when 3G cellular service is no longer supported.
Because 3G is no longer going to be supported, the City of Merced Water Division must swap out the obsolete units before December 31, 2022.
Badger agreed to supply the necessary 11,748 new endpoints at a reduced per-unit cost of $45 each (original unit cost $85.86), for a total of $528,660, plus taxes and applicable freight. The contract amendment includes a reduction in monthly cellular fees from $0.82 to $0.72 per unit.
IMPACT ON CITY RESOURCES
No appropriation of funds is needed. Water Enterprise Fund 557 contains sufficient funding for the amendment and endpoint purchase.
All work associated with the endpoints swap out will be done in-house with City Water staff.
ATTACHMENTS
1. Original Master Agreement
2. First Amendment to Master Agreement
3. Purchase of Goods Agreement