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Page 1 of 4 <br />Item #11 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />July 7, 2026 <br />Public Works - Utilities Division <br /> <br />TITLE: CONTINUED FROM JUNE 16, 2026 - AUTHORIZE THE CITY MANAGER TO <br />ENTER INTO AGREEMENTS WITH CORE & MAIN LP FOR THE WATER METER <br />ADVANCED METERING INFRASTRUCTURE (AMI) REPLACEMENT PROJECT <br />IN AN AMOUNT NOT TO EXCEED $10,262,257 FOR CAPITAL EXPENDITURES <br />AND $2,514,096 FOR OPERATION SERVICES, AND AUTHORIZE A FIVE <br />PERCENT AGGREGATE CONTINGENCY FOR PROJECT IMPLEMENTATION <br /> <br />SUMMARY <br />This matter was presented to the City Council at the June 16, 2026 meeting (Attachment 1 to <br />this report). The item was continued to July 7 in light of concerns raised by the Zone 7 Water <br />Agency (Zone 7), to allow additional time for City staff to engage with Zone 7. The concerns <br />raised by Zone 7 are technical in nature and involve the interpretation of the requirements of <br />the 2025 two-party Settlement Agreement between the City and Zone 7. <br />Staff recommends that the City Council authorize the City Manager to execute an AMI Capital <br />Expenditure Project (CPX) Agreement and an AMI Operations Expenditure (OPX) Agreement <br />with Core & Main LP in amounts not to exceed $10,262,257 and $2,514,096, respectively, <br />authorize a five percent capital contingency for the project, and execute a twenty-year <br />agreement term for the OPX Agreement. <br /> <br /> <br />RECOMMENDATION <br />1. Authorize the City Manager to enter into an AMI CPX Agreement with Core & Main LP <br />for the Water Meter and AMI Replacement Project in an amount not to exceed <br />$10,262,257; <br />2. Authorize the City Manager to enter into an AMI OPX Agreement with Core & Main LP, <br />for the software services, network services, and future water meters purchases in an <br />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 for an aggregate amount of up to five percent, not to <br />exceed $513,113. <br /> <br /> <br />BACKGROUND <br />City staff have continued to engage with Zone 7 staff to present options designed to satisfy the <br />requirements of the Settlement Agreement and address Zone 7's concerns. After the June 16 <br />City Council meeting, the Interim City Manager and the Zone 7 General Manager met to <br />discuss potential options for moving forward with the project in a manner that could fulfill the <br />Docusign Envelope ID: D15BA154-47D3-8EAA-8171-B89F63E73DD1