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Client Name: City of Santa Ana I AMI FEASIBILITY REPORT <br />Appendix B. Assumptions <br />The development of the smart water opportunity assessment, high level financial analysis, and <br />recommendations for City is based on Black & Veatch's knowledge of the North American water <br />utility industry, AMI marketplace, and utility experiences with smart water. It also incorporates <br />Black & Veatch observations gained through many conversations and working sessions with City <br />staff and the interpretation of the discussions. Various assumptions have been developed that form <br />a foundation for the comments and recommendations contained in this report, the most significant <br />of which are as follows: <br />❑ Water conservation is a significant business driver for City and its customers. <br />❑ While the AMI solution provides a foundation for future smart water initiatives, such as the <br />collection of pressure and Bow monitoring, these benefits are strategic but not quantified at this <br />time. <br />17 City meter assets have a range of age distribution. At the time that City selects its AMI vendor and <br />produces a deployment plan, it will need to decide on meter purchases, but for the purposes of <br />this analysis, it is assumed that most water meters under 10 years old will be retrofitted with <br />MTUs instead of replacing the meter to minimize project costs, reduce asset write-offs, and align <br />the underlying meter asset life to the newly installed AMI MTU life. <br />© City should evaluate AMI solutions that support an integrated leak detection capability to gain <br />efficiencies around managing non -revenue water. <br />17 Given City s current staffing and organization in the meter operations and information <br />technology areas, and in the interests of allowing City to focus on core competencies, it is <br />assumed that the preferred operational model for an AMI solution will be a managed service <br />approach leveraging the capabilities and competencies of an AMI vendor or partner. <br />BLACK & VEATCH I Appendix B. Assumptions <br />25G-185 <br />67 <br />