SUBJECT
title
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Consideration to award service contract FY25-073 to HST Utility Inc, Saint Petersburg, Florida in an amount of $467,250.00 for Phases I to IV to replace existing large water meters with Neptune Mach 10 ultrasonic water meters at various locations throughout the city. The Utilities Department is awarding Phase I for $125,800.00 immediately and then reserves the right to award Phase II ($180,100.00), Phase III ($98,300.00), and Phase IV ($63,050.00) at later dates and if it determines fit. Each phase will include the replacement of a specified number of meters. This contract shall be for an initial period of six (6) months from the commencement date. Funding is available in the Waterworks Fund - 2024 Water Revenue Bone.
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PREVIOUS COUNCIL ACTION
BACKGROUND
The City Council previously awarded service contract FY25-073 to HST Utility Inc. on 10/20/2025 for Phase V to replace existing large water meters at various locations thoughout the city and reserved the right to award Phases 1 to IV at a later date and as it determined fit. The Contractor is required to remove existing large water meters (sizes 3", 4", 6", and 8" as applicable) and replace them with Neptune Mach 10 ultrasonic water meters provided by the City. Each phase will include the replacement of a specified number of meters. Installation cost shall include labor, equipment, parts, accessories, and appurtenances to complete the replacement project. This contract shall be for an initial period of six (6) months from the commencement date. This contract shall be the responsibility of and administered by the vendor and the City of Laredo Utilities Department.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong - The agenda item directly supports stated goals and policies in the Viva Laredo Comprehensive Plan that address efficient water system management, infrastructure modernization, and sustainable resource use.
Supporting goal(s)/policy(ies): Goal 7.1 (p. 237):
"Maintain and enhance Laredo’s water system infrastructure to ensure reliable service, efficient operations, and sustainable use of resources."
- Viva Laredo City of Laredo Comprehensive Plan
Policy 7.1.2 (p. 238):
"Upgrade and replace aging water meters, lines, and related infrastructure to improve efficiency, reduce water loss, and enhance service reliability."
- Viva Laredo City of Laredo Comprehensive Plan
Policy 7.2.1 (p. 239):
"Implement technologies that increase accuracy in water measurement and billing, support conservation, and improve utility management."
- Viva Laredo City of Laredo Comprehensive Plan
Goal 9.3 (p. 310):
"Invest in utility infrastructure that supports economic growth, fiscal responsibility, and long-term community resilience."
- Viva Laredo City of Laredo Comprehensive Plan
Relevance:
• The replacement of large water meters with Neptune Mach 10 ultrasonic meters directly fulfills the call to replace aging water system infrastructure (Goal 7.1; Policy 7.1.2).
• The adoption of ultrasonic meter technology advances accurate water measurement, billing, and conservation (Policy 7.2.1).
By ensuring reliable water supply infrastructure, the project supports economic development and community resilience (Goal 9.3).
Summary of alignment: The agenda item to award a contract for the phased replacement of large water meters with modern ultrasonic meters is strongly aligned with the Viva Laredo Comprehensive Plan. It directly implements identified infrastructure priorities-upgrading aging meters, integrating advanced metering technologies, and ensuring sustainable and efficient water management. The project also intersects with broader planning themes, including public health (reliable water service), equity (accurate billing), economic development (supporting businesses and growth with reliable infrastructure), and sustainability (water conservation through precise measurement).
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
It is recommended that this contract be awarded.
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Fiscal Impact
Fiscal Year: 2026
Budgeted Y/N?: Yes.
Source of Funds: 2024 Water Revenue Bond.
Account #: 557-9884-535-9301
Project ID: WP2515
Change Order: Exceeds 25% Y/N: No.
FINANCIAL IMPACT:
All services will be purchased on an as need basis. The purpose of this contract is to establish prices for the commodities or services needed should the City need to purchase these commodities or services. The City's obligation for performance of an annual supply contract beyond the current fiscal year is contingent upon the availability of appropriated funds from which payments for the contract purchases can be made. If no funds are appropriated and budgeted during the next fiscal year, this contract becomes null and void.