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Item 4B - MemoItem 4B Page 1 of 2 M E M O R A N D U M (December 20, 2022) 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 $123,396. 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 $123,396. Background Information: In FY 2016, the City of Southlake Public Works Department began upgrading all of 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. When a customer sets up their account 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. In addition, it offers historical water consumption data of the service address to the customer. 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, 42% of utility accounts are using the Eye on Water app. The City has approximately 12,500 cellular endpoints including those for residential domestic, irrigation meters, as well as compound Item 4B Page 2 of 2 commercial meters which utilize two 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. 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 $123,396 budgeted amount. This allows for the addition of a total of 175 new endpoints as the city continues to grow this fiscal year. Funding for the BEACON Cellular Service is budgeted in the FY 2023 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 $123,396. Supporting Documents: Attachment A: Badger Meter Quotation No. 3347306 Staff Contact: Rob Cohen, Director of Public Works Lauren LaNeave, Deputy Director of Public Works Jack Thompson, Deputy Director of Public Works Badger Meter Inc. 4545 W Brown Deer Road Milwaukee WI 53223 PO Box 245036 Milwaukee WI 53224-9536 Created Date 03-03-2022 To CITY OF SOUTHLAKE ACCOUNTS PAYABLE1400 MAIN ST STE 440 SOUTHLAKE Texas 76092 Customer ID 00002499 Effective Dates 03-03-2022 - 04-03-2023 Salesperson Proposal Subject Shipping Terms / INCO Terms Payment Terms 007723 CITY OF SOUTHLAKE ANNUAL SERVICE UNIT QUOTE PREPAY/NO CHARGE FCA FACTORY NET 30 DAYS Line #Description Qty Unit Net Price USD Line Totals USD 1 BMI Part No.: 68886-101 Description: ORION CELLULAR 1XRTT SERV UNIT 76170 0.810 61,697.70 2 BMI Part No.: 68886-104 Description: ORION CELLULAR LTE SERV UNIT 76170 0.810 61,697.70 Subtotal - USD 123,395.40 Estimated Freight Charges 0.00 Tax 0.00 Total Price - USD 123,395.40 Notes and Assumptions Subject to application review of data sheet. Actual lead time to be provided at time of order. 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. 3347306 Thank you for your business! Estimated ship dates subject to change based upon component availability, as a result of global supply chain constraints, or credit review. This acknowledgment is made subject to the terms & conditions found on our web-site: https://www.badgermeter.com/terms-and-conditions. Terms and conditions related to service units, training, and professional services can be found here: https://badgermeter.com/service-units-terms-and-conditions Page 1 of 1 ATTACHMENT A