AGENDA TITLE:
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Accept Improvements Under Contract for Water Meter Program Phase 9 (Multi-Family) (PW)
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MEETING DATE:
July 2, 2025
PREPARED BY:
Public Works Director

recommendation
RECOMMENDED ACTION:
Accept improvements under contract for Water Meter Program Phase 9 (Multi-Family).
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BACKGROUND INFORMATION:
The City’s Water Meter Retrofit Policy was adopted at the May 2, 2007 City Council meeting. The primary objectives of the policy were to accelerate the installation of residential water meters before the State’s 2025 deadline and to limit the time period during which some customers would be paying for water on flat rate and others on a usage basis.
At the October 20, 2010 City Council meeting, a seven-phase construction plan was established for converting the single-family residential units over to meters. Due to the size and complexity, the final single-family residential phase was split into two phases (Phase 7 and Phase 8). Those eight single family residential phases installed approximately 12,250 meters, and replaced over 28 miles of water main. Each water meter installation included an Encoder Receiver Transmitter (ERT) within the meter box that transmits the meter usage data to the City’s central system for billing.
This project was the final water meter phase, and was the last component necessary in converting the entire city to usage-based billing. This phase installed the larger meters (2-inch and larger) at locations that currently have meter boxes, and installed the appropriately sized meter assemblies, meters, and ERTs at the remaining fixed-rate locations, as shown in Exhibit A.
On October 2, 2024, Council approved plans, specifications, advertisement, and City Manager award authority for this phase. Three bids were received on October 30, 2024, with Preston Pipeline Infrastructure being the lowest bidder and awarded the contract (see breakdown below).
Bidder Location Bid
Preston Pipeline Infrastructure Milpitas, CA $802,300.00
Swierstok Enterp., dba Pro Builders Orangevale, CA $880,000.00
ARB, Inc. Pittsburg, CA $914,400.00
The project included the installation of 137 meters at 106 different properties. Of the 137 installed meters, 74 were Type ‘A’ meters and 63 were Type ‘C’ meters. Type ‘A’ locations already had a meter box, and just needed the meter to be installed where a “spool” (solid piece of pipe) was temporarily installed in the meter location. Type ‘C’ locations required excavating the water service line and installing all of the necessary fitting, valves, meter, ERT, meter box, and restoration of any disturbed landscaping/hardscape.
The final contract price was $800,115.31 including one change order in a deduction amount of $2,184.69. The actual project cost was less than the contract award amount due to the fact that on certain, larger complexes, larger meters were installed on the main water service line to the property, rather than installing multiple smaller meters at each individual building on the property. This reduced the overall number of meters installed and thus a cost savings to the contract.
The contractor started work on January 6, 2025 and completed work on April 21, 2025. All work was completed in substantial conformance with the plans and specifications approved by City Council.
Following acceptance by City Council, as required by law, the City Engineer will file a Notice of Completion with the County Recorder’s office. The notice serves to notify vendors and subcontractors that the project is complete and begins their 30-day period to file a stop notice requiring the City to withhold payments from the prime contractor in the event of a payment dispute.
STRATEGIC VISION:
5D. Infrastructure: Ensure capacity for future growth.
FISCAL IMPACT:
The city-wide conversion to usage-based billing is a requirement of the State. With approximately 4,000 less customers, there will be a minor reduction in revenue. This project, and the reduction in the number of customer accounts, has been accounted for in the Water Division’s financial model and the current rate structure. This project will not impact the General Fund
FUNDING AVAILABLE:
This project was funded by Water Capital PWW-0062