Title
[Contract Amendment] Automated Meter Infrastructure (AMI) Hardware, Software and Support [Published for 10-Day Review 04/17/2026]
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FileID
File ID: 2026-00804
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or designee to execute Contract Amendment No. 1 to City Agreement PRC002257 with Badger Meter for Automated Meter Infrastructure (AMI) Gateway, Gateway Hardware, and Cellular Endpoints, for an amount not to exceed $5,000,000, bringing the agreement’s total not-to-exceed amount to $7,301,978.
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Contact
Contact: Deanne Neighbours, Logistics Manager, (916) 808-3536, dneighbours@cityofsacramento.org; David Herrmann, Water Division Manager, (916) 808-6096, dherrmann@cityofsacramento.org; Dalia Fadl, Director, (916) 808-3765, dfadl@cityofsacramento.org; Department of Utilities
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Contract Amendment
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Description/Analysis
IssueDetail
Issue Detail: In 2009, the City Council approved several related agreements to implement the Water Meter Reading Automation (WMRA) Project and begin installing Automated Meter Infrastructure (AMI) on the City’s water meters. In 2013, City Council approved a Software License agreement (City Agreement No. 2013-1151) with Badger Meter for the operation and ongoing support of the Badger Meter AMI system. City Council has approved various agreements for continued support of AMI Hardware, Software and Support. Much of the existing AMI infrastructure has been in place in some areas for 10 to 20 years. The infrastructure is reaching end of life and requires repairs or replacement.
Staff is recommending approval of the contract amendment to the current agreement for AMI Hardware, Software and Support under the AMA Managed Solution Master Agreement (PRC002257) to consolidate all DOU purchases from Badger Meter, Inc. This will allow for one agreement for the operation and ongoing support of the Badger Meter AMI system.
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PolicyConsiderations
Policy Considerations: City Council approval is required for contract amendments of $250,000 or more per City Code 3.56.090.
The Sacramento City Code Section 4.04.020 and the City Council Rules of Procedure (Chapter 7 Section E.2.d) mandate that unless waived by a two-thirds vote of the City Council, all labor agreements, and all agreements greater than $1,000,000 shall be made available to the public at least 10 days prior to City Council action.
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EconomicImpacts
Economic Impacts: None.
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EnvironmentalConsiderations
Environmental Considerations: The Community Development Department, Environmental Services Manager has determined that the proposed activity is not a project pursuant to the California Environmental Quality Act (CEQA). CEQA Guidelines Section 15378(b). The activity is a continuing administrative or maintenance activity, such as the purchase of supplies, and is not subject to CEQA. CEQA Guidelines Section 15060(c)(3). Activities that may occur following the contract amendment would be exempt from CEQA pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15302 (Replacement or Reconstruction).
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Sustainability
Sustainability: The proposed contracts are consistent with the 2040 General Plan PFS-3.1 for continuing to provide reliable water, wastewater, and stormwater drainage utility services.
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Commission/Committee Action
Commission/Committee Action: Not applicable.
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RationaleforRecommendation
Rationale for Recommendation: On June 27, 2023, City Council approved City Agreement PRC002257 with Badger Meter for a 5 year, 2 month term with an amount not to exceed $2,301,978. DOU utilizes Badger Meter products and services to support the infrastructure and software currently in place to effectively monitor the AMI system. This contract amendment will allow DOU to address failing end points, gateways and other infrastructure which is reaching end of life and requires repairs or replacement as much of the existing AMI infrastructure has been in place in some areas for 10 to 20 years. The City is currently satisfied with the performance of Badger Meter, Inc. under its current contract and would like to continue the working relationship. The contract amendment will allow DOU to consolidate hardware, software, and support under one master agreement to support repairs and replacement of AMI infrastructure.
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FinancialConsiderations
Financial Considerations: Sufficient funding is available within Fiscal Year (FY)2025/26 DOU Operating Budget of $1,600,000 for anticipated needs during this fiscal year of the agreement. Funding for future fiscal years shall be subject to funding availability in the adopted budgets for the applicable fiscal year in an amount not to exceed $7,301,978 over the term of the agreement. Purchase orders encumbering funds under this agreement will not be created until needs and funding are identified in the applicable budget (operating, capital, multi-operating, or grants).
There are no General Funds allocated or planned for this project.
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LocalBusinessEnterprise
Local Business Enterprise (LBE): Badger Meter is not an LBE. The minimum LBE participation requirement was previously waived as the City suspended competitive bidding and utilized an alternative procurement method to select a vendor.
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