The document discusses options for water meter reading services and infrastructure replacement for the city. It analyzes continuing with a contracted meter reading service, creating an in-house meter reading program, or implementing automated meter reading over a 15-year period. Automated meter reading has the lowest total cost at $1.4 million with estimated savings of $841,000 compared to $1.1 million for contracted services or $3 million for an in-house program. Staff is requesting direction on which long-term option to pursue.

1. Water Meter Reading Services and
Water Meter Replacement
UPDATE
Robert Galindo, Finance Director
Item # 9
November 9, 2015

2. 2
BACKGROUND
• San Antonio Water System (SAWS) contract to
provide meter reading services ended December
2013
• Month to month since December 2013
• SAWS sent a letter saying it would like to
terminate agreement October 30, 2015

3. 3
BACKGROUND CONTINUED
• City sent request to SAWS for an extension
• SAWS agreed to keep meter reading services for
9 months through July 2016 with cost increase
• Cost increases from $1,612 to $3,000 per month
beginning November 1, 2015
• Solution and action is needed very soon

4. 4
RFP FOR WATER METER READING SERVICES
• Issued June 17, 2015
• Deadline July 20, 2015
• No Responses

5. 5
STAFF RESEARCH
• Team is composed of Operations and
Administrative Staff
• Viable Options
• Long Term Solution
• General Condition of Water Meter
Infrastructure

6. 6
WATER METER INFRASTRUCTURE
• Meter life is about 15 years for average use
• Current meters installed by SAWS in 2006
• Usage above average
• More than 10 different brands of meters
• More time, effort and cost needed for
maintenance
• Hard water minimizes life of meter

7. 7
LONG TERM EVALUATION OF
POSSIBLE OPTIONS (15 YEARS)
• CONTRACT METER READING ANALOG
METERS
• IN-HOUSE METER READING ANALOG METERS
• AUTOMATED METER READS (AMR)

8. 8
CONTRACT METER READING ANALOG METERS 15 YEARS
Assumptions
• Contractor cost with 2% increase each year for cost of inflation
• Total over 15 Years - $726,000 / Average Annual Cost $48,400
• Phase in replacement of all water meters within 5 years with analog
meters
• Beginning in Year 2
• Cost to include new meters, removal of existing meters, and
installation of new water meters
• Debt Service $ 1 million over 10 years for a total of $1.2 million

9. 9
CONTRACT METER READING ANALOG METERS 15 YEARS
Assumptions
• City responsible for replacement of damaged meters
• Total over 15 Years - $180,000
• Average Annual Cost - $12,000
• Revenue optimization by replacing meters within 5 years -
$1,033,900 over 15 years/$68,926 Annually
• Total Cost - $1,072,400 over 15 years/$71,493 Annually
 Difficulty in finding vendor to commit for more than 2 years – Not a
Viable Option

10. 10
IN-HOUSE METER READING ANALOG METERS 15 YEARS
Assumptions
• Add three Utility Technician positions for meter reading
• Three additional positions with benefits with 2% annual increase -
each position $48,464
• Total over 15 Years - $2,514,000 / Average Annual Cost
$167,600
• Purchase of vehicles (3) – $121,000 – each vehicle cost $20,000
and replaced once
• Uniforms and cell phones - Total over 15 Years -
$47,000/$3,133 Annually

11. 11
IN-HOUSE METER READING ANALOG METERS 15 YEARS
Assumptions
• Phase in replacement of all water meters within 5 years with analog meters
beginning in Year 2
• Debt Service $ 1 million over 10 years for a total of $1.2 million
• City responsible for replacement of damaged meters - Total over 15 Years -
$180,000/ $12,000 Average Annual Cost
• Revenue optimization estimate by replacing meters within 15 years -
$1,033,900 over 15 years/$68,926 Annual Average
• Total Cost - $3,028,000 over 15 years/$201,866 Annual Average

12. 12
AUTOMATED METER READS (AMR) 15YEARS
Assumptions
• RFP for AMR
• Replace water meters by July 2016 when meters reading
contract with SAWS terminates
• RFP would include removing existing water meters,
purchase of new meters, installation of new meters,
downloading old and new meter reads, meter swap in billing
software and training
• Actual swap out of water meters could take 1 to 2 months
• Meter reads would be done within one day by existing staff

13. 13
AUTOMATED METER READS (AMR) 15YEARS
Assumptions
• Debt Service $ 1 million over 10 years for a total of $1.2
million
• City responsible for replacement of damaged meters – Total
over 15 years - $173,000 /$11,533 Annually
• Replacement of AMR registers from year 11 thru 15 – Total
over 15 years - $21,100/$1,406 Annually

14. 14
AUTOMATED METER READS (AMR) 15YEARS
Assumptions
• Revenue optimization by replacing meters within one year and
savings from contract meter reading costs - $2,235,391
($152,540 *14 years)
• Total cost of AMR System - $1,394,100
• TOTAL SAVINGS – $841,291 over 15 years

15. 15
SUMMARY OF ESTIMATED FISCAL IMPACT OVER 15 YEARS
($3,500,000)
($3,000,000)
($2,500,000)
($2,000,000)
($1,500,000)
($1,000,000)
($500,000)
$0
$500,000
$1,000,000
$1,500,000
CONTRACT METER READING IN-HOUSE AMR
AMR
IN-HOUSE
CONTRACT
METER
READING
- $3,028,00
$841,000
- $1,072,000

16. STAFF REQUESTS
DIRECTION ON
WHICH OPTION TO
PURSUE