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Page 2 of 4 <br /> <br />RECOMMENDATION <br />1. Authorize the City Manager to enter into an AMI CPX Agreement for Goods and <br />Services with Core & Main LP for the Water Meter and AMI Replacement Project in an <br />amount not to exceed $10,262,257; <br />2. Authorize the City Manager to enter into an AMI OPX Agreement for Goods and <br />Services with Core & Main LP, for the software services, network services, and future <br />water meters purchases in an amount not to exceed $2,514,096; and <br />3. Authorize the Director of Public Works, or designee, to approve and execute change <br />orders for the awarded agreements, subject to a total aggregate contingency amount <br />not to exceed $513,113, which is equal to five percent of the total awarded contract <br />amount. <br /> <br /> <br />BACKGROUND <br />In 2016, the City completed a citywide water meter replacement project, CIP No. 13116, which <br />included installation of Diehl water meters and an associated Advanced Metering Infrastructure <br />(AMI) system. Delta Engineering Sales, Inc. performed the improvements. The warranty period <br />for the installed meters is scheduled to expire in June 2026. <br /> <br />Since installation, the system has experienced a high rate of meter failures. These failures <br />have contributed to billing inaccuracies, increased water loss, and substantial staff time <br />devoted to meter replacement and troubleshooting. City crews are currently replacing up to <br />300 meters per month, and approximately 4,000 meters have been replaced to date. With the <br />warranty period nearing expiration and failure rates continuing to rise, continued reliance on <br />the existing system is no longer operationally sustainable. <br /> <br />In early 2025, the City entered into an agreement with Diameter Services, Inc. to evaluate the <br />current metering system and assess available replacement options. Diameter has more than <br />17 years of experience providing consulting services for water metering and AMI systems. The <br />firm evaluated the City’s existing system, reviewed replacement alternatives, and worked with <br />staff to identify a comprehensive and proven solution that would improve long-term reliability <br />and operational efficiency. <br /> <br />In May 2025, the City Council approved a professional services agreement with Diameter <br />Services, Inc. to assist with the preparation of procurement documents and support the City <br />through the solicitation process. That effort resulted in a single turnkey-style Request for <br />Proposals (RFP) for the implementation of a new water meter and AMI system. <br /> <br />DISCUSSION <br />On November 19, 2025, the City issued an RFP seeking a qualified firm to provide a <br />comprehensive water meter and AMI replacement solution. The RFP was publicly advertised <br />in accordance with the City’s purchasing requirements. Three proposals were received and <br />evaluated using the criteria identified in the RFP, including qualifications, relevant experience, <br />technical approach, system capabilities, implementation plan, compatibility with the City’s <br />operational and billing systems, and overall value to the City. Based on that evaluation, Core & <br />Main LP was identified as the most qualified proposer. <br /> <br />Page 193 of 443