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HomeMy WebLinkAboutSS3 - Advanced Metering Infrastructure - PowerPointNovember 28, 2017 Item No. SS3 Advanced Metering Infrastructure (AMI) City Council Study Session November 28, 2017 Outline • Background • What is AMI? • Benefits • Selection of AMI Vendor • Project Description • Cost of Project • Funding • Summary • Questions �,t Background • Approximately 24,750 water meters are read manually through contract • Approximately 840 meters are radio read by City staff with a handheld receiver • Current AMI pilot projects '.• • — Cellular • Local cities and agencies with AMI — Laguna Beach County Water District — Huntington Beach — Fountain Valley AMI Meters are "Smart Meters" i �l Meter with Transmitter Meter with Transmitter Repe Optional Remote Disconnect Meter with Transmitter Collector r y� s u , a° ater . utilit Billin Softwa Y 9 re Cellular or Ethernet Data Transmission utility Remote Device utility Computer Server 4 Customer Operations Center Portal (NOC) Benefits * Customer — Leak detection — Interactive web portal — Improved billing accuracy — Usage data for customers during droughts • City — Replaces all meters including under registering meters e Recovers lost revenue — On -demand meter reads 9 Reduces re -reads and field investigation trips 9 Reduced City and contract staff time in field — Supports water conservation and water shortage planning W HN—W.Akft N,lw.,k C I V "201-1120 1 1.0q.p­ sk— L"tW. 6'V10W%65­ A mv. .5.qqw Selection of AMI Vendor • Scope of Work was developed based on needs • RFP published in February of 2017 — Six proposals received from highly qualified vendors in the industry • Each vendor presented to the City's selection panel • Extensive reference checks performed on all six vendors • Top three were chosen based on technical scores and pricing — 70% technical and 30% cost • Top three brought back for final discussion with panel • Mueller Systems, LLC scored highest and was chosen by panel Project Description • Two phased approach 1) Proof of Performance (6-9 months) • Installation of 250 meters, collectors, and repeaters • Test integration into City's billing system and customer portal SEW • Prove technology end-to-end • City may op -out if POP acceptance criteria is not met • Hardware equipment would be returned and refunded by contractor 2) Full Implementation (2 years) • Extensive public outreach • Installation of remaining 25,000+ meters, collectors, and repeaters • Setup, testing, and training for City staff of Meter Data Management system, operations, and installation Cost of Project • Cost of project = sg,o64,so6.40 — Cost savings • $500,000/year current meter replacement program — $1,5oo,000 to replace allover three years • $320,000/year from current "Meter Reading Services" contract • $450,000/year from under registering meters — Validated by consultant • $1,000,000 for a "WaterSMART" grant from the United States Bureau of Reclamation 9 Cost of project with savings = $5,794,1o6.40 Funding • Funding of Project — Adequate water enterprise reserves — Maintains reserve levels — No rate increases necessary — Two - three year CIP account • Return on Investment — With grant — 8 years — Without grant — g years Summary • Sound technology from highly respected and reputable company. • Benefits both the customer and the City. • Project phasing approach gives city option to opt out • Business plan to replace aging meter infrastructure with AMI • Recovery of lost revenue. • Funding is available to pay for the project. • Return on Investment of the project will be in 8-9 years. Questions?