AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: GABINO LUNA
ACTING PUBLIC WORKS DIRECTOR
SUBJECT: SOLE SOURCE PUBLIC WORKS PURCHASE AGREEMENT WITH AQUA-METRIC SALES COMPANY FOR THE AUTOMATED METER READING SYSTEM EQUIPMENT
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Summary:
As part of the recently adopted Water Master Plan (WMP) and Water Rate Study (RS), the City identified the need to invest in system modernization and capital improvements to maintain service reliability, improve operational efficiency, and ensure the long-term financial sustainability of the Water Enterprise. The adopted Water Capital Improvement Program identifies the Automated Meter Reading (AMR) Project as a key system modernization effort. The AMR Project would install radio transceivers on all City water meters to improve meter functionality and operational efficiency. These devices transmit water usage data from individual meters to a centralized system, allowing staff to remotely collect meter readings, monitor system performance, and identify potential leaks or irregular usage in a timely manner. This technology eliminates the need for manual meter reading, improves data accuracy, and enhances customer service by enabling more reliable billing and quicker responses to system issues.
Staff proposes implementing an AMR system by procuring approximately 3,000 SmartPoint 520M endpoint radios and associated installation kits. Water Division staff would complete the devices' in-house installation. Staff recommends the City Council approve a sole-source purchase agreement with Aqua-Metric Sales Company in the amount of $656,708.13 for the procurement of AMR equipment and making the necessary findings consistent with Signal Hill Municipal Code section 3.20.120(3)(J). Subject to City Council approval, the City would receive the radios by late summer 2026, and the Water Division staff would commence installation in fall 2026.
Strategic Plan Goals:
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
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Recommendations:
1. Authorize the City Manager to enter into a Public Works Purchase Agreement with Aqua-Metric Sales Company, for a term of 150 calendar days in the amount of $656,708.13, for the Automated Meter Reading System Equipment.
2. Authorize the sole-source purchase of goods consistent with the findings required pursuant to Signal Hill Municipal Code section 3.20.120(3)(J).
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Fiscal Impact:
The total cost for the Automated Meter Reading (AMR) system radios is $656,708.13, which includes materials, tariffs, and applicable taxes. Funding for this project is included in the Water Division Capital Improvement Program as identified in the adopted Water Master Plan. The City has allocated a total project budget of $762,000 for the AMR Project (Project No. 95.25003) in Fiscal Year 2025-26, which fully funds this effort.
This project advances long-term infrastructure improvements and operational efficiencies within the Water Enterprise Fund. The AMR system would reduce labor associated with manual meter reading, improve billing accuracy, and strengthen leak detection capabilities, thereby improving system performance and supporting cost control over time. Staff will use the remaining budget to procure installation materials and complete installation in-house.
Background:
On May 23, 2025, the City Council conducted a Prop 218 public hearing and adopted new water rate increases based on the updated Water Master Plan (WMP) and the corresponding Water Rate Study (RS) completed in March 2025. The City’s WMP and RS establish a comprehensive, financially sustainable framework for maintaining and improving the City’s water system over a 10-year planning horizon. These efforts evaluated existing system conditions, operational needs, and long-term infrastructure requirements, and identified capital improvements necessary to maintain system reliability, meet regulatory requirements, and improve overall performance. The RS establishes a long-term financial plan that aligns revenues with the cost of providing water service and supports the implementation of the Capital Improvement Program (CIP). The plan prioritizes funding for infrastructure investments, maintaining adequate reserve levels, and ensuring the long-term financial stability of the Water Enterprise Fund. These improvements are necessary to address aging infrastructure, improve operational efficiency, and maintain service reliability for the community.
As part of this planning effort, staff identified modernization of the City’s water metering system as a critical component of the CIP. The City currently relies on manual meter reading, which requires significant staff time, delays access to consumption data and limits the City’s ability to proactively identify system inefficiencies such as leaks or abnormal usage patterns. Manual processes also increase the potential for human error and delay customer billing and system monitoring. The AMR Project directly addresses these limitations by introducing a modernized metering system that supports real-time data access, improved system visibility, and more efficient operations. This project represents a key step in implementing the WMP and advancing the City’s long-term infrastructure and operational goals.
Analysis:
The City’s existing and planned water meters are largely Sensus and Neptune models, which are compatible Sensus SmartPoint wired 520M radios. To ensure system compatibility and performance, the Water Division implemented a pilot program that included the field deployment of 100 radios for testing. Several field collection and data importing tests were conducted to confirm proper functionality between the meter reading data collection system and the City’s financial software. Through this testing process, the Water Division successfully transitioned to a new Sensus software platform, FlexNet, replacing an obsolete system and enabling the Water Division to implement systemwide replacement as part of a broader project.
The proposed AMR Project includes installing approximately 3,000 Sensus SmartPoint wired 520M endpoint radios that transmit water-use data from individual meters to a centralized system. This technology allows staff to collect meter readings remotely through mobile data collection and supports future fixed-network capabilities, providing a foundation for enhanced system monitoring and analytics. Implementation of the AMR system would significantly improve operational efficiency within the Water Division by eliminating manual meter reading, reducing field time, and improving the accuracy and reliability of collected data. The system would also enable staff to identify leaks, abnormal consumption patterns, and potential system issues more quickly, thereby supporting proactive maintenance and reducing water loss.
The proposed AMR system aligns with the financial and operational objectives established in the Water Rate Study, which emphasizes the importance of investing in capital improvements that enhance system efficiency, support cost recovery, and maintain adequate reserve levels. By improving data accuracy and reducing operational inefficiencies, the AMR system supports these objectives and contributes to the long-term sustainability of the Water Enterprise Fund.
Sole Source Justification
As noted above, the City currently utilizes Sensus meters including an AMR ready platform. The proposed Sensus SmartPoint wired 520M radios are specifically designed to integrate with the City’s existing and planned water meter infrastructure. Using alternative equipment would require replacing existing meters or making substantial system modifications, which would increase costs, delay implementation, and introduce operational inconsistencies. Aqua-Metric Sales Company is the sole authorized distributor of Sensus products in California and provides the required Sensus SmartPoint wired 520M equipment, along with technical support and manufacturer-backed warranty services; no other vendor can supply this equipment and maintain compatibility with the City’s existing system. For this reason, staff determined this procurement qualifies as a sole-source purchase. Pursuant to Signal Hill Municipal Code Section 3.12.150, the City Council may authorize a purchase without competitive bidding when goods are available from only one source or when competitive procurement does not serve the City’s best interest. In this case, procurement from Aqua-Metric ensures system compatibility, minimizes project risk, and allows the City to implement the AMR system efficiently and without unnecessary additional cost.
To complete the AMR project, specific radios provided by Sensus are required to support the transition. Signal Hill Municipal Code section 3.20.120(3)(J) authorizes the purchase of goods from a single source without following the standard procurement process when the City Council determines there is only one source that provides the needed goods or services, or to ensure compatibility with other City products and equipment. In the instance of the proposed project, the radios are exclusively available through Aqua-Metric Sales Company as the sole authorized distributor of Sensus products in California. Furthermore, the Sensus equipment provided by Aqua-Metric Sensus is compatible with the City’s existing water system and infrastructure such that procurement from Aqua-Metric ensures system consistency, reliability, and efficient implementation of the AMR Project. Accordingly, the proposed sole-source purchase meets the necessary findings consistent with Signal Hill Municipal Code section 3.20.120(3)(J).
Conclusion
Approving the purchase agreement with Aqua-Metric Sales Company would allow the City to proceed with a critical infrastructure improvement identified in the Water Master Plan, improve operational performance, and continue advancing a reliable, efficient, and financially sustainable water system. Staff recommends that the City Council approve a sole-source purchase agreement with Aqua-Metric Sales Company in the amount of $656,708.13 for the procurement of AMR equipment. Upon approval, the City would receive the radios by late summer 2026, and the Water Division staff would commence installation in fall 2026.
Reviewed for Fiscal Impact:
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Siamlu Cox
Attachment:
A. Purchase Agreement with Aqua-Metric Sales Company