SUBJECT
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Consideration to award professional consulting services contract RFQ 2026-049 to E-Source Companies LLC, Boulder, CO, in the amount up to $3,563,454.00 (cost can vary based on selection of optimization of current vendor or full AMI replacement) for utility billing modernization for the Advanced Metering Infrastructure (AMI)/Automated Meter Reading (AMR) System and Customer Information System (CIS) Solution. Services will cover the AMI and AMR metering strategy, review suitability and compatibility, recommend CIS and implementation oversight to produce a clear migration roadmap and present the best solution for the Utilities Department to advance its metering modernization and digital water transformation. The contract is broken into five (5) phases and services are secured on an as needed basis after phase I. The term of this contract shall be for period of approximately thirty-six (36) months as of the date of its execution. Funding is available in the 2024 Water Revenue Bond.
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PREVIOUS COUNCIL ACTION
The City Council approved the item to select and negotiate RFQ 2026-049 for a professional services contract with E-Source Companies LLC, Boulder, CO, for the utility billing modernization for the AMIAMR and CIS solution on April 20, 2026.
BACKGROUND
The City Utilities Department needed to modernize its meter to cash processes to improve billing accuracy, customer service, and operational efficiency. The City currently operates with an aging meter population and a mix of legacy processes and tools. The City sought an independent consultant to help the Utilities Department assess current conditions, refine the meter replacement strategy, select the best fit AMI or AMR approach, and oversee the full cycle implementation of a modern Customer Service Information System and billing solution.
VIVA LAREDO PLAN ALIGNMENT
1. Level of Alignment
Moderate - Indirectly supports or contributes to the intent of a verbatim goal or policy.
2. Supporting Goal(s) / Policy(ies)
Goal 1.7 - Application of Viva Laredo
Verbatim Text:
“The City of Laredo will use the principles set forth in Viva Laredo as tools to shape future development, to protect natural resources, to direct capital improvements, and to guide public policy in a coordinated manner for the mutual benefit of Laredo’s residents and landowners.”
Source: Viva Laredo City of Laredo Comprehensive Plan, Goal 1.7, page 12.6
2017_Comprehensive_Plan-Viva_Laredo
Relevance:
The agenda item authorizes a capital investment funded through water and sewer bonds to modernize and maintain the City’s water metering infrastructure. This action directly reflects the Plan’s directive to use coordinated public investment to guide capital improvements that benefit residents and protect critical resources.
Health Chapter - Safer Water (Health & Wellness)
Verbatim Text:
“Water quality should be monitored frequently for both contaminants and pathogens.”
Source: Viva Laredo City of Laredo Comprehensive Plan, Chapter 7 (Health), page 7.12
2017_Comprehensive_Plan-Viva_Laredo
Relevance:
The AMR ultrasonic water meters provide automated, hourly readings and leak detection, improving the City’s ability to monitor system performance and respond to abnormal conditions. While the meters do not directly treat water, they enhance operational oversight that supports frequent monitoring and protection of public health.
Health Chapter - Reducing Exposure to Harmful Elements
Verbatim Text:
“Water utilities also test for a number of inorganic chemicals and monitor water to ensure that levels do not exceed certain limits.”
Source: Viva Laredo City of Laredo Comprehensive Plan, Chapter 7 (Health), page 7.12
2017_Comprehensive_Plan-Viva_Laredo
Relevance:
By replacing aging and failing meters with NSF 61-certified AMR meters, the City reduces the risk of inaccurate consumption data, undetected leaks, and customer exposure to system failures. This supports the Plan’s emphasis on monitoring and safeguarding water systems as part of public health protection.
3. Summary of Alignment
The proposed one-time purchase of Automated Meter Reading (AMR) water meters moderately aligns with the Viva Laredo Comprehensive Plan. While the Plan does not contain a verbatim goal explicitly referencing automated metering or AMR technology, the agenda item clearly advances the Plan’s broader policy intent to direct capital improvements, protect natural resources, and support public health.
Specifically, the investment supports:
• Infrastructure efficiency and resilience through replacement of end-of-life and nonfunctional meters.
• Public health objectives by enhancing system monitoring, leak detection, and response capabilities.
• Sustainability and resource stewardship by reducing water loss and improving data-driven utility management.
The alignment is classified as Moderate because the action contributes indirectly to stated goals and policies rather than fulfilling a narrowly defined, verbatim directive. Relevant broader planning themes include public health, sustainability, infrastructure modernization, and responsible fiscal stewardship of utility bond funding.
4. Additional Requirements Statement
All cited goals and policies are quoted verbatim from the Viva Laredo City of Laredo Comprehensive Plan (2017).
No conflicting goals or policies were identified.
COMMITTEE RECOMMENDATION
None.
STAFF RECOMMENDATION
recommendation
Approve this motion.
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Fiscal Impact
Fiscal Year: 2027
Budgeted Y/N?: Yes
Source of Funds: 2024 Water Revenue bond
Account #: Water 557-9884-533-5526,
Project I.D.WP18CS
Change Order: Exceeds 25% Y/N: No
FINANCIAL IMPACT:
All parts 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.