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HomeMy WebLinkAbout2009-06-23; Municipal Water District; 686; Water replacement programCARLSBAD MUNICIPAL WATER DISTRICT - AGENDA BILL 15 686 MTG. 06/23/09 DEPT. FIN ADOPTION OF THE WATER METER REPLACEMENT PROGRAM AND APPROPRIATION OF FUNDS FOR FISCAL YEAR 2009-10 DEPT. HEAD CITY ATTY. CITY MGR. \jj - adopting the Water Meter Replacement Program and RECOMMENDED ACTION: Adopt Resolution No. 1361 appropriating funds for Fiscal Year 2009-10. ITEM EXPLANATION: The Water Meter Division is frequently referred to as the "Cash Register" division of a water operation. It is so named because the water meters measure the commodity being sold (in units of water) and recover the costs of purchasing water from the San Diego County Water Authority. Properly operating water meters help ensure that the maximum amount of revenue is being collected from customers. Over time, water meter components can wear or accumulate calcification resulting in slower reads, under-registering of water use and ultimately, under-collection of revenues. Currently, the meter reading practice involves the manual collection of water usage data throughout the Carlsbad Municipal Water District service area. All meters in the District are "read" monthly. The Meter Service Workers walk to each meter location, lift the meter box lid, lift the meter register cover, read the meter register (which looks like a vehicle odometer), enter the read data into an electronic handheld device ("data collector"), then close the register cover and meter lid, and walk to the next meter location. "Fixed Network Automated Meter Reading" (FN/AMR) uses radio waves to transmit meter reading data electronically to a central location. The transmitting meter and ancillary antenna collectors capture meter readings for billing purposes without the use of a meter service worker. The FN/AMR system allows for more frequent (i.e., 15 minute intervals vs. monthly) reads of water usage. Installing automated meter reading technology is an option that would also increase the accuracy of the data collected, while decreasing staffing and vehicle needs. In addition to reduced staffing and more frequent real-time water consumption data, an FN/AMR program has the following benefits: • Accuracy • Decrease in staffing and vehicles • Real-time leak detection • Enhanced customer service • Stuck meter lost revenue decrease from $15k per year to $1 k per year • Slow meter water loss decrease from 4% to 1 % DEPARTMENT CONTACT: Helga Stover, Sr Acct 760-602-2429, Helqa.Stover(a).carlsbadca.gov FOR CITY CLERKS USE ONLY COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED ^D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D Page 2 • Increase employee safety • Grant funding opportunities Agencies currently using AMR programs include the City of San Diego, Rainbow Municipal Water District, Helix Water District and Valley Center Water District. In addition, the Olivenhain Water District and the Vallecitos Water District, which serve portions of the City of Carlsbad, have fully implemented AMR technology. The following table shows the cost to replace the existing meters over the next 15 years with either the current manual meter, or the automated meter (AMR). When considering the lost revenue of the manual meters and the added benefit of the leak detection, the AMR is financially advantageous. Staff (*) Vehicles Meters Installation Collectors, Hosting, AT&T Grant Subtotal out of pocket cost Add: Leak Detection (**) Lost Revenue - Slow Meters Total with Leak Detection Staff (*) Manual $ 7,449,120 1,053,000 7,421,912 2,647,290 $18,571,322 2,700,000 18,649,002 $39,920,324 6 15 Year Cost AMR AMR w/Grant $ 4,966,080 $ 4,966,080 702,000 702,000 9,391,035 9,391,035 2,647,290 2,647,290 1,993,839 1,972,911 (1,323,015) $19,700,244 $18,356,301 9,785,248 9,785,248 $29,485,492 $28,141,549 from 6 to 2 from 6 to 2 (**) Leak detection is an added feature of AMR at NO additional cost. The breakeven point of replacing the manual meters with AMR is in approximately 11 years, with continued savings thereafter into the future, as shown on the chart below. <• 1 rnn nnn <1 Ann nnn - 51,300,000 ?1,^UU,UUU ?J.,1UU,UUU 51,000,000 5900,000 ?oUU,UUU 5/00,000 5600,000 ~' -— ^ ^- ^J-L ^I,LT"*" ••N.rtN.^t.^- Breakeven •v_._ * Savings / • • • ••..*•••••••• .— - *.•~ bavmes ^Wi »^P*J • ^^m »^^ — — — AMR AMR with GRANT Yl Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Yll Y12 Y13 Y14 Y15 PageS FISCAL IMPACT: The Board has three options to consider. The first two options require an appropriation from the water operating fund. Option 1 - Fund an AMR program. The cost in the first year is $833,268. The quantity of meters may vary depending on the size and commensurate cost. It is expected that approximately 1/15 of the system (based on cost) will be replaced each year. An analysis will be done each year to determine which meters are in need of replacement each year. This option requires expenditures of about $162,000 more per year than Option 2. The impact on rates for the difference between Option 1 and Option 2 is approximately $0.20 per month for a single family residence (based on 12 units of water consumption). The notice of rate increased mailed to customers factored in the maximum amount required to fund Option 1. The breakeven point of replacing the manual meters with AMR is in approximately 11 years, with continued savings thereafter into the future. At that point, there would be no further impact to the rates, regardless of which Option was chosen. Option 2 - Fund a manual meter replacement program. The cost in the first year is $671,280. Option 2 would decrease the rates by an estimated $0.20 per month for a single family residence. The quantity of meters may vary depending on the size and commensurate cost. It is expected that approximately 1/15 of the system (based on cost) will be replaced each year. An analysis will be done to determine which meters are in need of replacement each year. Option 3 - Do not fund a meter replacement program for FY 2009-10. The City is pursuing grant funding to help fund the AMR Program. There is no certainty that the City will receive any grants. If grant funding is received, it will improve the savings generated to implement the automated meter reading program. ENVIRONMENTAL IMPACT: This project is a Class 2 categorical exemption, the replacement of existing utility systems and/or facilities involving negligible or no expansion or capacity, and is therefore, exempt from environmental review pursuant to Section 15302(c) the California Environmental Quality Act (CEQA). EXHIBITS: 1. Resolution No. 1361 adopting the Water Meter Replacement Program and appropriating funds for Fiscal Year 2009-10. '•fl 1 RESOLUTION NO. 1361 2n A RESOLUTION OF THE BOARD OF DIRECTORS OF THE 3 CARLSBAD MUNICIPAL WATER DISTRICT (DISTRICT) ADOPTING THE WATER METER REPLACEMENT PROGRAM 4 AND APPROPRIATING FUNDS FOR FISCAL YEAR 2009-10 5n WHEREAS, the Board of Directors of the Carlsbad Municipal Water District has6 reviewed the proposed Water Meter Replacement Program for FY 2009-10. WHEREAS, the Carlsbad Municipal Water District provides 10.4 million units of metered8 water per year;y WHEREAS, the Carlsbad Municipal Water District has 20,064 potable and recycled .. meters; 1? WHEREAS, it is desirable to implement a meter replacement program to support a 15 ,. o year replacement cycle; 14 15 NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board 1Q of the City of Carlsbad, California, as follows: 17 1. That the above recitations are true and correct. 18 2. That the Carlsbad Municipal Water District Board appropriates $833,268 for FY 19 2009-10 for the purchase of automated or manual meters. 20 21 22 23 24 25 26 27 28 // 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 23rd day of June, 2009, by the following vote to wit: AYES: Board Members Lewis, Kulchin, Hall, Packard and Blackburn. NOES: None. ABSENT: None. JDE EWlS", President ATTEST: rj LOR^AIN (SEAL) *;*= K June 22,2009 TO: VIA: FROM: All Receive-Agenda Item # For the Information of the: CITY COUNCILAsst. CITY MANAGER PUBLIC WORKS DIRECTOR Public Works Manager ity Manager AMR BRIEFING ON FRIDAY, JUNE 19, 2009 additional questions regarding the use of AMR, the maintenance requirements of AMR and to ST5"* ? **** 3b°Ut °ther age'cies'following information was provided at the meeting detection capabilities of AMR. The Most of these agencies .isted below have converted their entire meter inventory to AMR and include: •Fallbrook Public Utilities District Olivenhain Water Vallecitos Water Valley Center Water Rainbow Water San Dieguito The City of Diego is also using AMR bu, jus, recen.iy began their replacement program ^^ Win be our approximate number of meters ^ "* 3°'°00 Ran. • meters annuaily need maintenance of some kind. Maintenance ' ** ~'% * *"wouM hdude: • fixing a cut cable • theft, intrusion • troubleshooting wiring problems iife based on i The amount of totai water ioss for FY 07/08 is 5% wiwith meter icsses estimated at 4% provide a general location of a detected leak which locate .he teak and make Sincerely, CARI DALE reqU'red °n each meter and '° ?"*% ii 1 1UJ EOEDWE JUN 2 3 2009 CITY OF CARLSBAD CITY CLERK'S OFFICE n\ H/ WATER METER REPLACEMENT PROGRAM Carlsbad Municipal Water District Board of Directors June 23, 2009 Water Meter Division “The Cash Register Division” As meters age, they become less accurate Measures the actual volume of water being sold Recovers costs of purchasing water from the San Diego County Water Authority Ensures revenue from water sales Manual Meter Reading Current Practice Walking to each meter location Removing meter box lid Opening meter register cover Reading the meter register Entering the read into a handheld device Closing the register cover Walking to the next location Automated Meter Reading Meter uses radio waves to transmit meter readings Readings are updated every two hours Readings and usages date and time stamped Automated Meter Reading Advantages Leak Detection Customer side leak detection and leak value Distribution system leak detection Case Study: Big Bear Water District Automated Meter Reading Advantages Enhanced Customer Service On-demand reads can immediately validate billing Real-time leak detection facilitates prompt customer notification Real-time data can be shown to the customer in the field Automated Meter Reading Advantages Enhanced Revenue Prevents Tampering Provides the ability to respond to a stuck meter the same or next day Increase in sewer revenue Automated Meter Reading Advantages Decrease in Greenhouse Gases Greenhouse gases are generated for every vehicle mile driven Helps meet AB32 reduction of 20% by 2020 Automated Meter Reading Advantages Increased Employee Safety Dog bites Trip and Fall Traffic Hazards Automated Meter Reading Advantages Grant Funding 1.3 Million Dollar Grant from the Bureau of Reclamation Other funding opportunities Automated Meter Reading Advantages Water Conservation Helps enforce irrigation rules and regulations Use to follow up on mandatory leak repairs Real time field information for Customers by Customer Service Representatives On demand leak reports (customer and distribution system) Automated Meter Reading Advantages Solves Accessibility Issues Gated Communities Secure Areas (Airports) High Transient Areas Golf Courses High Traffic Areas (Business Parks) Automated Meter Reading Advantages Pilot Program Results AMR Meters Installed on 1 Reclaimed and 24 Agricultural Meters Agricultural accounts met 30% cutbacks Enhanced Customer Service & Enhanced Revenue LC NORTH COURSE RC METER Agencies currently using AMR Technology Fallbrook Public Utilities District Rainbow Municipal Water District Valley Center Water District San Dieguito Water District City of San Diego Olivenhain Water District Vallecitos Water District Meter Program Options Option 1 –Fund an AMR program. Cost in Year 1 = $833,268 Impact on rates = $.90/Single Family Residence Pros Leak Detection Enhanced Customer Service & Revenue Decreased generation of Greenhouse Gases Increased Employee Safety Grant Funding Offsets Water Conservation Tool Solves Accessibility Issues Successful Pilot Program Meter Program Options Option 2 –Fund a Manual Meter Replacement Program Cost in Year 1 = $671,280 Impact on rates = $.70/Single Family Residence Option 3 –Do not fund a Meter Replacement Program for FY 08/09 11 Year Breakeven Point $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 $1,400,000 $1,500,000 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Y12 Y13 Y14 Y15 Current AMR AMR with GRANT Breakeven Savings Savings Staff Recommendation Option 1 –Fund an AMR program. Cost in Year 1 = $833,268 Impact on rates = $.90/Single Family Residence Pros Leak Detection Enhanced Customer Service & Revenue Decreased generation of Greenhouse Gases Increased Employee Safety Grant Funding Offsets Water Conservation Tool Solves Accessibility Issues Successful Pilot Program QUESTIONS?