25G - AGMT METER INFRASTRUCTURE - Laserfiche WebLink

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Client Name: City of Santa Ana I AMI FEASIBILITY REPORT Approximately 37,739 meters will be replaced (at an approximate cost of $11 million plus installation costs) in this project and remaining meters will be fitted with MTUs, These meters will be replaced at the end of their life cycle whether AMI is implemented or not, hence meter replacement cost should be viewed as unavoidable while looking at the total cost of ownership. Also, the cost of AMI system 0&M and field services would still be there even if AMI is not implemented (it might be even more in the absence of AMI). The above points should be taken in consideration while evaluating overall cost of the AMI project. 10.1.2 Project Benefits Similar to other projects, a major goal of an AMI implementation is to offset some or all of the project costs with yearly costs savings as a result of implementing the project. The main benefits of an AMI implementation are derived through automation of manual meter reading process, improvement in meter accuracy and billing. Black & Veatch has broken down the business benefits into four key areas of the business: 1. Meter Reading -The cost savings derived in the meter reading department come from the following three main areas: a. Reduced labor costs due to the reduction of meter reading personnel and assigning them to new roles in the organization. b. Reduced capital costs due to a reduction of fleet vehicles for meter reading personnel. c. Reduced capital costs and 0&M to maintain the hardware and software used to manually read the meters. d. Elimination of the need to add additional meter reading resources to support full monthly meter reading and billing for all water customers. 2. Meter Operations -There will be both short-term and long-term costs savings for the meter operations department as follows: a. The City should expect a small revenue stream from recycling of the meters through the AMI meter roll-out, which will partially offset costs. b. The major cost savings for the meter operations department will come from reduced truck rolls. There will be reduction in field visits as daily reads will be available from the system and on demand reads can be acquired remotely in case of billing complaints or for other uses like move -in or move -out reads. 3. Billing Efficiency -The costs savings for the billing department are derived from the fact that an AMI solution will provide more accurate and timely reads available to the billing system on a constant basis. The costs savings are made up of the following: a. Reduced overhead costs by having to work fewer billing exceptions. b. Reduction in the number of rebills due to having more accurate readings and the reduction/elimination of bills based on estimated reads. c. Reductions in customer service representative (CSR) call handling and processing. BLACK & VEATCH I Cost/Benefit Analysis 25G-165 47