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
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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"
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Meter with
Transmitter
Meter with
Transmitter
Repe
Optional
Remote
Disconnect
Meter with
Transmitter
Collector
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Cellular or Ethernet
Data Transmission
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Remote
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Computer
Server
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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
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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?