DATE: August 7, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Water Utilities Department
TITLE: AMENDMENT 3 TO THE PROFESSIONAL SERVICES AGREEMENT WITH FERGUSON ENTERPRISES, LLC FOR SOFTWARE AS A SERVICE AND APPROPRIATION OF FUNDS
RECOMMENDATION
title
Staff recommends that the City Council approve Amendment 3 to the Professional Services Agreement with Ferguson Enterprises, LLC, in the amount of $130,000 for a total contract amount not to exceed $495,860, for software services for the Neptune/SENET software as a service (SAAS) for the Advanced Metering Infrastructure Project; appropriate $130,000; and authorize the City Manager to execute the amendment.
body
BACKGROUND AND ANALYSIS
On August 19, 2020, the City Council approved a Professional Services Agreement (PSA) in an amount not to exceed $135,725 with Ferguson Enterprises, LLC (Ferguson) for software services for the Advanced Metering Infrastructure Project (Project). The PSA with Ferguson included three years of software service to receive and transmit the water meter reads across the new City-wide data communications network that was installed as part of the Project.
On January 6, 2021, the City Council approved Amendment 1 to the PSA with Ferguson in the amount of $103,685, for a revised contract amount of $239,410 for software services to upgrade the Advanced Metering Infrastructure (AMI) meters network system.
On June 21, 2023, the City Council approved Amendment 2 to the PSA with Ferguson in the amount of $126,450 for a revised contract amount of $365,860 for continued software services for Project.
According to Ferguson Waterworks, the Annual SaaS Fee Structure established November 6, 2020, for the Project is as follows:
Revised Annual SaaS Fee Structure:
• FY20/21: NO CHARGE
• FY21/22: $2.65 Per Meter Per Year
• FY22/23: $2.73 Per Meter Per Year
• FY23/24: $2.81 Per Meter Per Year
• FY24/25: $2.89 Per Meter Per Year
Rates are subject to maximum annual escalation of 3%
With an estimated 44,500 AMI meters installed throughout the City of Oceanside, the revised compensation to Ferguson for their professional services will total $128,605. The proposed amendment rounded to $130,000 would revise the contract amount to $495,860 and would cover the SaaS costs of all AMI meters in the City.
FISCAL IMPACT
Amendment 3 in the amount not to exceed $130,000 will be charged to Water Meter Services account 750757711.5355.0009. Staff did not include this in the FY2024-25 budget, therefore, staff is requesting to use reserves in the amount of $130,000 and appropriate to account 750757711.5355.0009. Funding source is Water Operating Unrestricted Fund Balance account 711.3100.0002, which has an available balance of $9,703,457; with this appropriation, sufficient funds are available.
|
Meter Services 750757711.5355.0009 |
|
Amendment 3 - Ferguson |
$130,000 |
|
Appropriation from Water Operating Unrestricted Fund Balance (711.3100.0002) |
$130,000 |
COMMISSION OR COMMITTEE REPORT
The Utilities Commission will receive a project update at its regularly scheduled meeting on September 17, 2024.
CITY ATTORNEY’S ANALYSIS
The referenced documents have been reviewed by the City Attorney and approved as to form.
end
Prepared by: Jordan Alejo, Management Analyst
Reviewed by: Lindsay Leahy, Water Utilities Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Attachment A: Ferguson Waterworks AMI SaaS Amendment 3