Item 19 - First Amendment to the Agreement for Automated Meter Infrastructure Services

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Automated Metering Infrastructure Implementation Support Services April 7, 2026 Page 2 5 6 8 0 provide implementation and operational support services as the City transitioned to AMI water meter data, for a total amount not to exceed $450,000. The support provided by E Source has been essential to systems integration, maintaining data quality, identifying system anomalies, and resolving issues across the AMI ecosystem. Their work has been instrumental in enabling the MUS support team to maintain the same level of customer service for Santa Ana residents and businesses while navigating the learning curve associated with the transition to AMI. The agreement anticipated a full handoff of AMI system responsibilities to staff by the end of 2025. The majority of the budget was allocated for support from E Source leading up to the handoff milestone with tapering support services and training continuing through the end of 2027. During this period, City staff were also tasked with advancing other customer service and technology priority-initiatives such as the Accela Land Management, Business License software upgrades, and initiating a new Enterprise Resource Planning system. These additional ground-up technology projects required a significant investment of staff time and, as a result, diverted staff time from the AMI project, necessitating the extended use of E Source in the AMI operational support role beyond the originally anticipated timeframe. The proposed $125,000 amendment reflects the cost of continued support such as system monitoring, data validation, billing read support, and City staff training through the remaining term of the agreement. This will allow for an adequate transition period for staff to assume full operational responsibilities of the AMI project by June 2027, and with minimal support services from E Source, as originally contracted, continuing through December 2027. Staff recommends approval of the First Amendment to Agreement A-2024-133 (Exhibit 1) with E Source Companies, LLC in the amount of $125,000 for a total revised agreement amount of $575,000 (Exhibit 2). All the remaining terms of the agreement, effective through December 2027, will remain unchanged. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT Funds are available for expenditure in the Fiscal Year 2025-26. Any remaining balances not expended at the end of the fiscal year will be presented to City Council for approval of carryovers to FY 2026-27.