From
Ron McCuller
Title
Construction contract with Itron, Inc. in the not to exceed amount of $5,250,000 for the provision of a fully functioning Automated Metering Infrastructure (AMI) System
Presenter
Ron McCuller, Director of Public Works
Recommended Action
Approve
Analysis
In 2003, the City began an upgrade of its meter reading to become more efficient. This led to a "drive by" meter reading system that, as meters were changed out or new ones installed, eliminated the need for manual meter reading. This is accomplished by transmitters on the new meters that send the reading to our receiving equipment as we drive down the street.
We installed these meters in phases each year until 2009 when we stopped the change out program pending an investigation into a more advanced program that transmits radio signals back to a central computer, eliminating the need to drive by the meters (AMI system).
Approximately 2/3 of the water system was converted to the drive by automated meter reading (AMR) system allowing us to largely eliminate manual meter reading by individuals. The latter installations on this system (about 3,000) were equipped with the newer upgraded version of transmitters that could also be used with a Automated Metering Infrastructure (AMI) system which does not require drive-by but transmit to collectors that provide readings directly to a central processor that generates customer bills.
Since we began the drive-by program, AMI systems have come to fruition with a number of vendors having systems available with benefits that far surpass the limited information obtained by either manual or drive-by meter reading. Technology has now evolved to the point where a "fixed base" receiver can now receive signals from appropriately equipped meters, eliminating the need to drive by. This new system also provides additional customer service benefits by recording hourly meter readings, hourly meter reading (allowing us to profile customer demand), leak detection and other benefits such as allowing a customer interface to track their own usage.
Due to the technical nature and broad range of products available, in March of 2012 City Council approved a consultant to assist with preparation of and evaluation of proposals for an AMI system. The information gained from such proposals assisted in making the basic decision of conversion to AMI versus continuation/completion of the current drive-by system based on costs and benefits to the Utility and its' customers
The AMI system provides several benefits over the AMR system by 1) eliminating the need to drive out to locations to obtain readings 2) providing more reliability in reading due to improved technology 3) providing hourly meter reading instead of monthly reading, which in turn provides early indications of leaks on the customer's system 4) allows customer access to their hourly readings to help gauge and control their water usage.
On May 7, 2013 the Public Works Department presented a proposal to the Finance and Government Committee to proceed with an application to the Texas Water Development Board (TWDB) for financial assistance for Phase 1 of the Automated Metering Infrastructure System Project (AMI). The estimated project cost was $4 million. The Finance and Government Committee recommended moving forward with the application.
On August 6, 2013, the City Council approved a resolution to file the application for financial assistance with the TWDB. The TWDB at their November 21, 2013 Board meeting approved the $4 million funding for the project. The financial assistance from the TWDB consist of an interest rate subsidy of 1.25% at the time of the pricing of the bonds on March 11, 2014. The Finance and Government Committee at their February 4, 2014 meeting recommended moving forward with the financing and bond sale.
On March 18, 2014, the City Council approved an ordinance authorizing the issuance of Water Wastewater System Revenue Bonds, Series 2014 in the amount of $4,000,000 for the AMI project.
Financial Consideration
Funding in the total amount of $5,250,000 is available as follows:
1. $4,000,000 is available in Grant (500892) 42514022 (TWDB 2014 AMI) 68540 construction
2. $1,250,000 is available in the Water Capital Projects Fund (500592) #01307403 (FY13 AMI Meter Project) 90408-transfer to Grant (500892) 42514022 (TWDB 2014 AMI).