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Page 1 of 4 <br />Item #10 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />May 20, 2025 <br />Public Works - Utilities Division <br /> <br />TITLE: APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH DIAMETER <br />SERVICES, INC. FOR THE WATER METER AND ADVANCED METERING <br />INFRASTRUCTURE (AMI) TECHNICAL ASSISTANCE SERVICES AS A PART OF <br />THE ANNUAL WATER DISTRIBUTION SYSTEM IMPROVEMENTS PROJECT, <br />CIP NO. 25183, FOR THE AMOUNT OF $750,000, INCLUDING CONTINGENCY <br /> <br />SUMMARY <br />The City’s existing water meter and Advanced Metering Infrastructure (AMI) system has <br />reached the end of its useful life, resulting in widespread failures, billing inaccuracies, and <br />increased operational costs. Staff recommends awarding a professional services agreement to <br />Diameter Services, Inc., in the amount of $680,000, to lead the planning, procurement, and <br />program management through construction for a full system replacement with a $70,000 <br />contingency for unexpected conditions. Diameter Services conducted the initial feasibility study <br />and is uniquely qualified to continue the project, ensuring continuity, efficiency, and successful <br />implementation. Funding for the project is available through the Annual Water Distribution <br />System Improvements, CIP No. 25183, and the work is consistent with the City's Water <br />System Management and Financial Plans. <br /> <br />RECOMMENDATION <br />1. Approve and authorize the City Manager to execute a professional services agreement <br />with Diameter Services, Inc. for water meter and AMI system technical assistance <br />services as a part of the Annual Water Distribution System Improvements, in the <br />amount of $680,000. <br />2. Approve and authorize the Public Works Director to execute contract change orders not <br />to exceed $70,000 (approximately 10 percent of the contract cost) for any unforeseen <br />conditions and additional needs identified during the design and implementation phase. <br /> <br /> <br />BACKGROUND <br />In 2016, the City completed a citywide water meter replacement project (CIP No. 13116), <br />which included the installation of Diehl water meter with AMI system. Delta Engineering Sales, <br />Inc. performed the improvements, and the warranty program for the meters expires in June <br />2026. <br /> <br />Since installation, the system has experienced a high rate of meter failures, with crews <br />currently replacing up to 300 meters per month. Approximately 4,000 meters have been <br />replaced to date due to failure, resulting in billing inaccuracies, increased water loss, and <br />significant labor demands, making continued maintenance unsustainable. <br /> <br />With the warranty expiration approaching and the persistent failure of the current Diehl water <br />Page 174 of 682