REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a Two-Year Contract Purchase Agreement to Badger Meter in the Amount Not-to-Exceed $1,000,000 for Ultrasonic Water Meters (F26-282) and Finding of Class 1 Exemption Under the California Environmental Quality Act
Report
STAFF RECOMMENDATION
Recommendation
Take the following actions:
- Authorize the issuance of a contract purchase agreement for two years to Badger Meter of Milwaukee, WI in an amount not-to-exceed $1,000,000 for the purchase of ultrasonic water meters;
- Find that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to the Class 1 CEQA Exemption (CEQA Guidelines Section 15301(b)); and
- Authorize the City Manager to renew the contract purchase agreement for up to four additional one-year periods and increase the contract amount, subject to available funding and acceptable pricing and services.
Report
BACKGROUND AND DISCUSSION
The Environmental Services Department regularly replaces existing meters and installs meters for new developments and capital projects. Water meters are received, inventoried, and stocked at Central Stores and issued to Water Division employees on an as-needed basis. Meters deployed throughout the City are equipped with an electronic radio transmitter, a radio-based endpoint that transmits data from the meter to a handheld receiver or to a receiver in a utility vehicle.
In 2024, an Advanced Metering Infrastructure (AMI or Smart Metering) feasibility study was performed and outlined a pathway for the City to implement AMI citywide. The study’s recommendations included updating the City's water meter specifications to ultrasonic meters with digital, high-resolution register outputs to ensure AMI compatibility. The AMI project is estimated to begin planning and analysis activities in the current fiscal year. However, before that project begins, the City needs to replace meters that have reached their useful life and are prone to under registering water consumption. Meter requirements and total costs vary from year to year depending upon a variety of factors. In an average year, meter purchases are estimated to total approximately $500,000, reflecting updated meter specifications for AMI-compatible ultrasonic meters.
A Request for Proposals (RFP) was posted on February 25, 2026, and distributed to multiple firms for the purchase of ultrasonic water meters. Thirty-one (31) prospective proposers requested the RFP documents. Five (5) proposals were received on March 25, 2026, and Badger Meter was selected as the highest-ranked proposer based on the evaluation criteria identified in the RFP, including product performance, warranty, vendor experience, AMI compatibility, and price.
ENVIRONMENTAL REVIEW
This action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to the Class 1 CEQA Exemption (CEQA Guidelines Section 15301(b), Existing Facilities), because it consists of the replacement of existing components within the City's existing water distribution system, a publicly owned utility facility, with negligible or no expansion of the existing use.
FISCAL IMPACT
Budgeted funds are available in Fund 6040 - Water Supply and Distribution under Program 14300 - Water Distribution, and under Project 806351 - Land-Development and Capital Construction. New developments pay for new meters during the permit process, while regular meter replacements are funded through Water Service Fees.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the City Hall reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Matthew Paulin, Director of Finance
Reviewed by: Mansour Nasser; Interim Director of Environmental Services
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager