CERTIFICATE NUMBER
(FOR COMPTROLLER’S USE ONLY)
-

REQUEST FOR COUNCIL ACTION
CITY OF SAN DIEGO

TO:
FROM (ORIGINATING DEPARTMENT): DATE:
CITY COUNCIL
Public Utilities
10/8/2014
SUBJECT: Increase of funding authorization for Mueller Systems contract for Purchase of Water Meters
PRIMARY CONTACT (NAME, PHONE):
SECONDARY CONTACT (NAME, PHONE):
Isam Hireish,(619) 527-7434 MS 43
Tonia Carnell, (619) 527-7407 MS 43
COMPLETE FOR ACCOUNTING PURPOSES
FUND
FUNCTIONAL AREA
COST CENTER
GENERAL LEDGER
ACCT
WBS OR INTERNAL
ORDER
CAPITAL PROJECT No.
AMOUNT
FUND
FUNCTIONAL AREA
COST CENTER
GENERAL LEDGER
ACCT
WBS OR INTERNAL
ORDER
CAPITAL PROJECT No.
AMOUNT

720040
OTHR-00000000GG
1514120012
511036

$1,000,000.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

COST SUMMARY (IF APPLICABLE): Total expenditure in previous years:
FY 11 $ 523,731
FY 12 $1,437,387
FY 13 $3,009,128
FY 14 $ 388,646
$5,358,892 subtotal
FY 15 $ 641,108 amount encumbered in PO’s
FY 15 $1,000,000 additional funding requested
$1,641,108 subtotal
$7,000,000

total contract

Since July 12, 2010, purchase orders issued citywide against this contract total $6,000,000; Council authorization
is required before further purchase orders can be issued.
ROUTING AND APPROVALS
APPROVING
CONTRIBUTORS/REVIEWERS:
AUTHORITY
Environmental
ORIG DEPT.

APPROVAL
SIGNATURE
Mulvey, Robert

DATE
SIGNED
10/24/2014

 Analysis
Liaison Office
Financial Management
Equal Opportunity
Contracting
Comptroller

CFO
DEPUTY CHIEF
COO

Nagelvoort, James

11/12/2014

CITY ATTORNEY
Mercer, Mark
02/09/2015
COUNCIL
Jurado-Sainz, Diana
02/11/2015
PRESIDENTS OFFICE
PREPARATION OF:
RESOLUTIONS
ORDINANCE(S)
AGREEMENT(S)
DEED(S)
1. Authorizing the Mayor, or designee, to increase the not-to-exceed amount to $7,000,000 in the current contract
year with Mueller Systems formerly Hersey Meters, (Bid Number 10007038-10-W, Contract Number
4600000261) to furnish and deliver Advanced Metering infrastructure (AMI)-compatible water meters; provided
that the City Comptroller first issues a Comptroller’s Certificate certifying that the funds necessary for expenditure
are on deposit with the City Treasurer; and
2. Authorizing the Chief Financial Officer to expend an amount not to exceed $1,641,108 in Fiscal Year 2015;
from Central Stores revolving Fund 720040 for the purpose of funding the above contract; provided that the City
Comptroller first issues a Comptroller’s Certificate certifying that the funds necessary for expenditure are on
deposit with the City Treasurer.
STAFF RECOMMENDATIONS:
Adopt the Resolutions.
SPECIAL CONDITIONS (REFER TO A.R. 3.20 FOR INFORMATION ON COMPLETING THIS SECTION)
COUNCIL DISTRICT(S):
Citywide
COMMUNITY AREA(S):
Citywide
ENVIRONMENTAL IMPACT:
This activity is not a "project" in accordance with CEQA Guidelines Section
15378(b)(2), and is therefore exempt from CEQA pursuant to the State
Guidelines Section 15060(c)(3).
CITY CLERK
Please send a copy of final Resolution to Jennifer Wolverton, MS 901A.
INSTRUCTIONS:

 COUNCIL ACTION
EXECUTIVE SUMMARY SHEET
CITY OF SAN DIEGO
DATE: 10/8/2014
ORIGINATING DEPARTMENT: Public Utilities
SUBJECT: Increase of funding authorization for Mueller Systems contract for Purchase of Water
Meters
COUNCIL DISTRICT(S): Citywide
CONTACT/PHONE NUMBER: Isam Hireish/(619) 527-7434 MS 43
DESCRIPTIVE SUMMARY OF ITEM:
Authorizing the Mayor or his designee to exercise the remaining year of the contract with
Mueller Systems to furnish and deliver AMI compatible water meters (Bid Number 1000703810-W, Contract Number 4600000261) to allow establishment of purchase orders for Fiscal Year
2015 that will exceed the 6,000,000 threshold previously approved. The meters to be purchased
are needed to replace failing or poor performing meters.
STAFF RECOMMENDATION:
Adopt the Resolutions.
EXECUTIVE SUMMARY OF ITEM BACKGROUND:
Purchasing and Contracting Department issued a Request for Bid (RFB) with a closing date of
May 27, 2010 in accordance with the Municipal Code to furnish the City of San Diego with AMI
water meters. Based on low cost and bid criteria per deliverable, this RFB (# 10007038-10W)
was awarded to multiple companies.
Contract #4600000261 was issued to Hersey Meters, a Division of Mueller Company on
7/12/2010. The Public Utilities Department reached the Municipal Code contract authority
threshold of $1,000,000 on December 30, 2012. On June 26, 2012, Purchasing and Contracting
and Public Utilities Department requested and received approval for a contract extension with
Hersey for an additional four years through July 11, 2015 in accordance with the annual renewal
option of a total contact amount not to exceed $6,000,000. These funds have been exhausted.
Additional funding of $1,000,000 is required during FY 2015 to furnish and deliver Advanced
Metering infrastructure (AMI)-compatible water meters;
An authorization of $1,000,000 for FY 15, would bring the overall balance for this contract to
$7,000,000.
FISCAL CONSIDERATIONS: The total not to exceed amount for the fifth option year in Fiscal
Year 2015 is $1,641,108, of which $641,108 is already encumbered in Fiscal Year 2015
Purchase Orders. This leaves a balance of $1,000,000 which is available in total from Central
Stores Revolving Fund 720040, provided that the City Comptroller first issues a Comptroller’s
Certificate certifying that the funds necessary for expenditure are, or will be, on deposit with the
City Treasurer.

 EQUAL OPPORTUNITY CONTRACTING INFORMATION (IF APPLICABLE): This
agreement is subject to the City’s Equal Opportunity Contracting (San Diego Ordinance No.
18173, Section 22.2701 through 22.2708) and Non-Discrimination in Contracting Ordinance
(San Diego Municipal Code Sections 22.3501 through 22.3517).
PREVIOUS COUNCIL and/or COMMITTEE ACTION:
On June 26, 2012 City Council authorized an extension of the agreement with Hersey for an
additional four years through July 11, 2015 in accordance with the annual renewal option of a
total contact amount not to exceed $6,000,000 per resolution # R-307543. This item was heard at
the Committee on the Environment on February 4, 2015 and forwarded to the full City Council
with a recommendation to approve.
COMMUNITY PARTICIPATION AND PUBLIC OUTREACH EFFORTS: N/A
KEY STAKEHOLDERS AND PROJECTED IMPACTS: N/A
Mulvey, Robert
Originating Department
Nagelvoort, James
Deputy Chief/Chief Operating Officer