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Item 4J MemoItem 4J Page 1 of 2 M E M O R A N D U M (October 20, 2020) To: Shana Yelverton, City Manager From: Rob Cohen, Director of Public Works Subject: Approve an annual purchase agreement for BEACON Cellular Service for the City’s Water Smart Program with Badger Meter Inc. in an amount of $123,395. Action Requested: Approve an annual purchase agreement for BEACON Cellular Service for the City’s Water Smart Program with Badger Meter Inc. in an amount of $123,395. Background Information: Since FY 2016, the City of Southlake Public Works Department has been working on upgrading all the water metering equipment throughout the City. The Water Smart Program equips all water meters with equipment that transmits daily readings back to a central database via the cellular network. BEACON Eye on Water is a capability-based software that improves a customer experience and while providing Public Works with the ability to monitor water operations. The central database stores utility customer’s water consumption readings, which are used to accurately bill customers every month. Eye on Water also allows customers to set up accounts to monitor their water usage and make necessary adjustments to conserve water and save money. Through Eye on Water, it provides near real-time data of water consumption broken down into monthly, daily, and hourly consumption. This type of information can help the customer identify potential leaks, if irregular water consumption is found, and offers historical water consumption data. For staff, this software tool allows to monitor and investigate leaks, identify backflows and hardware issues, and ensure cellular radio communication is maintained. To date, 33% of utility accounts are using the Eye on Water app. The City has approximately 12,500 cellular endpoints for residential domestic and irrigation meters, and compound commercial meters utilize 2 endpoints per meter. The City is responsible for paying the monthly cellular service on all endpoints that are used to transmit meter reading data from the field. Item 4J Page 2 of 2 Financial Considerations: Public Works staff worked with Badger Meter to obtain a low service unit rate if the annual fee is paid as a lump sum payment. Under the proposed agreement, the monthly service rate per unit is $0.81 or $121,500/year for 12,500 cellular endpoints. Staff is requesting City Council authorization of up to $123,395 budgeted amount. In recent fiscal years, the City has installed the following additional cellular endpoints: • FY 2017, 484 endpoints • FY 2018, 124 endpoints • FY 2019, 137 endpoints • FY 2020, 466 endpoints In FY2020, the increase in endpoints replacement was due to the cellular network failing for approximately 1,200 endpoints. Badger Meter has decommissioned these endpoints and ceased billing until proper corrections and updates were made to the cellular netwo rk. The City continues to work with Badger Meter to replace the remaining 734 endpoints affected by this outage. Funding for the BEACON Cellular Service is via the Utility Fund. Strategic Link: This item links to the City’s Strategy Map strategic focus areas of Infrastructure and Performance Management & Service Delivery. It specifically relates to the City’s Corporate Objectives, B2: Collaborate With Select Partners to Implement Service Solutions, and F2: Invest to Provide & Maintain High Quality Public Assets. Citizen Input/ Board Review: None. Legal Review: None. Alternatives: The City Council may approve or deny the purchase agreement. Staff Recommendation: Approve an annual purchase agreement for BEACON Cellular Service for the City’s Water Smart Program with Badger Meter Inc. in an amount of $123,395. Supporting Documents: Attachment A: Badger Meter Quotation No. 3187504 Staff Contact: Rob Cohen, Director of Public Works Jack Thompson, Operations Manager 4545 W Brown Deer Road Milwaukee WI 53223 PO Box 245036 Milwaukee WI 53224-9536 Phone: 800-876-3837 Fax: 888-371-5982 Created Date 10-05-2020 To CITY OF SOUTHLAKE ACCOUNTS PAYABLE1400 MAIN ST STE 440 SOUTHLAKE Texas 76092 Customer ID 00002499 Effective Dates 10-05-2020 - 10-05-2021 Salesperson Proposal Subject Shipping Terms / INCO Terms Payment Terms 007723 Proposal_3187504_10-05-2020 PREPAY/NO CHARGE FCA FACTORY NET 30 DAYS Line # Description Qty Unit Net Price USD Line Totals USD 1 BMI Part No.: 68886-104 Description: ORION CELLULAR LTE SERV UNIT 1 0.810 0.81 2 BMI Part No.: 68886-101 Description: ORION CELLULAR 1XRTT SERV UNIT 1 0.810 0.81 Subtotal - USD 1.62 Total Price - USD 1.62 Notes and Assumptions NOTE- PRICING IS VALID FOR UNITS 75,001 OR GREATER WITH A SINGLE PURCHASE ORDER SUBMITTED If applicable, sales tax and freight, if included on the proposal, is an estimate and will be recalculated based on rates and tax status in effect at the time of invoicing. To aid in processing your order, please include the Quote number on the PO that is submitted for this proposal. Badger Meter provides certification files to help manage meter and endpoint inventory and to maintain meter accuracy data. The standard method of delivery for this format is via electronic mail. Any deviations from our standard format, or any custom file formats, will be considered on a time and material basis. Due to continuous improvements and redesign of Badger Meter products and technology solutions, Badger Meter reserves the right to provide our newest product solutions as an alternative to the proposed products provided they are in conformance with the requirements of the specifications and do not exceed the prices quoted. If you would like to place an order, please contact us at Utilityorders2@badgermeter.com or by calling 1-800-876-3837. Domestic Quotation Quotation No. 3187504 Thank you for your business! This quotation is an offer made subject to the terms & conditions found on our website: www.badgermeter.com/Company/Legal/Sales-Terms.aspx Quoted prices are firm for acceptance, via an order, within the effective dates provided, shipping within 60 calendar days past the expiration of this quotation. Page 1 of 1