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Page 2 of 4 meters, the City must identify a replacement product and ensure it is fully tested and integrated with the City’s operating systems by June 2026. Delaying this process will result in increasing costs and resource impacts that could be mitigated by timely implementing a reliable new water meter and AMI system. DISCUSSION In early 2025, the City issued a sole source contract to Diameter Services, Inc. to evaluate the current metering system and assess options for replacement. Diameter Services, Inc. has over 17 years of consulting services in water AMI and water metering. The company has completed 89 business cases, implementation plans, procurement program management, and transition services engagements. The company is very reputable and is currently supporting the Alameda County Water District, Portland Water Bureau, City of Toronto, City of Columbus, Greater Cincinnati Water Works, City of Regina, City of Sunnyvale, the Contra Costa Water District and City of Mountain View in similar scopes of work for plan, design, issuance of Request for Proposal (RFP), implementation management, and project management. Phase 1 – Feasibility Services identified the critical business drivers and needs, which identified gaps in the City’s current water meter system. The scope included identifying needs related to leak detection, meter reading automation, system integration, and performance reliability. The strategy and detailed project scope workshops from the Feasibility phase will be used as the roadmaps in the Procurement phase. Based on the study findings, staff determined that the City should pursue a comprehensive and proven water meter and AMI solution that ensures long-term reliability and efficiency. To move forward, staff recommends awarding a professional services agreement to Diameter Services, Inc. for Phase 2 – Procurement Support Services, to prepare and support the procurement phase of the new water meter system. At the completion of Phase 2, and at the satisfaction of the Director of Public Works, a separate “Notice to Proceed” will be issued to the consultant to start Phase 3 – Program Management Services, to manage the meter testing, verification, programming, integration of the new water meter and AMI system with the City’s financial system and infrastructure. The procurement and program management phase will focus entirely on the City’s unique business drivers to establish procurement based on a single turnkey-type Request for Proposals (RFP) for all contemplated components. Continuity with Diameter Services, Inc. is crucial, as their detailed understanding of the City's infrastructure, operational data, and project goals would be difficult and costly to replicate with a different consultant. Under the new agreement, Diameter Services, Inc. will provide technical assistance and support to prepare and complete the RFP for design/build services for the new water meter with AMI system. The complete scope and deliverables for Phase 2 – Procurement Support Services are listed in Attachment 1 (Diameter Services, Inc. proposal, April 22, 2025). The key deliverables for Phase 2 include the following: • Provide project management support • Facilitate drafting procurement documents • Establish water meter and related components specifications Page 175 of 682