HomeMy WebLinkAboutJanuary 22, 2001
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Water Meter Replacement Issues
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The Issues: ./
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· Aqe otF,'resent Meters
//,,/ -cost implications
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· "Current Meter Readinq Problems
// -cost and customer service implications
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Replacement Options:
· Standard Mechanical (Manual Read) Reqisters
· Outside Touch Pad Read
· Radio Read
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Advantages and Disadvantages of Radio Read
· Advantaqes
· Disadvantaqes
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Who Reads the Meters? - Pros and Cons
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Cost Recovery
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Timetable
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Industry Trends
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Staff Recommendations '
H,\ WaterIMeterprogram.doc
Meter Chanee-out Proeram
Workshop Analysis
Prepared By: Bud Osmundson, Ralph Teschner & Doug Hartman
January 22,2001
Age of Water Meters
There are 364 old Calumut water meters that have been identified which do not
have outside reading registers that exceed 40 years in age. This total is equal to 7%
of all household meters. Because this is a significant replacement beginning it is
important that the following issues be considered:
1. Cost Implications
The extension of Prior Lake's municipal water system from the general
downtown area began in the early 1970's. The initial water meters are now
over 30-40 years old. Over time the gears in the meters themselves become
gummed up with mineral deposits from the water and slow down substantially.
The result is, that based on bench testing, 25 year old meters may only register
85% or less of actual gallons of water used. Based upon the average annual
residential use of 90,000 gallons (7,500gals.lmo.) a 15% unregistered usage
would represent a revenue loss of $57 per account. Assuming 20% of our
5200 plus accounts are of this age, the City is losing nearly $60,000 annually.
Over the next 10 years our revenue loss would approach $1,000,000 if a water
meter replacement plan were not established.
Current Meter Reading Problems
1. Cost & Customer Service Implications
Presently all residents in Prior Lake read and submit their meter reading along
with their bill payment on a bi-monthly basis. There are numerous problems
that are inherent in depending upon customers to read their own water meters:
· Reliability - Too frequently customers just plain ignore reading their
meter. The city follows up with hundreds of reminder notices each
billing cycle.
· Inaccuracy - Innumerous occasions where the meter is read wrong and
verification time must be spent to either obtain a correct reading by
clerical staff or maintenance personnel.
· Inconsistency - Unless an individual reads the meter on the same date
during each billing cycle, usage will fluctuate significantly from bill to
bill. Depending upon the day read, usage could vary anywhere from 10
to 60 days.
· Lag time - Because the meter reading is obtained from the customer at
the time payment is submitted the usage time period is always two
months in arrears. An example of this would be when a customer (upon
receiving their 2/1 water bill) always reads their meter the 5th of the
month and submits the return billing statement portion on the due date
of 2/20. The next bill generated on 4/1 would then be for the period of
time from December 5th until February 5th (60 days).
· Customer Service - Residents for the most part perceive meter reading
as a customer service function and many residents just do not want to
take the time to read their meter which results in a certain level of
dissatisfaction of a public service that they expect should be provided.
H;\ WateIlMeterprogram,doc
Generally, the following three types of water meter reading technology are
available:
A. Outside meter register that allows for manual meter reading input whereby the
outside numeric reading is generated by impulse through a wire from the main
household water meter.
B. Touchpad meter register which has an electronic serial number that identifies
the address and automatically downloads the meter reading from the main
household meter via a wire to the outside pad and into a meter reading gun
which is applied to the outside touchpad.
C. Radio read meter registers that allow for a meter reading apparatus to obtain
meter readings within a 1000' radius that would allow for the entire city to be
read in one day.
Radio-Read
A. Advanta2es
Radio-read technology has a number of very promising features that have the
following direct benefits to the City of Prior Lake:
CD Customer Service
· Customers will no longer have to read their water meters
@ Billing accuracy
· Automated readings are virtually 100% accurate
@ Elimination of Estimated Readings
· The city has nearly 400 accounts that are estimated each billing cycle
because we do not receive current readings plus we send out an
additional 200-300 what are known as "Oops" reminders for residents
to call in their readings.
@ Consistent usage
· Contract reading will provide for constant reading dates, and therefore
consistent usage time periods.
@ Up-to-date billing
· After a phase-in period during the first year of contract reading which
would advance the reading dates 5 days each billing period to allow for
a gradual catch-up, customers will have a relatively current bill.
@ Troubleshooting time reduction
· City personnel spend, on average, 40 hours per billing cycle on meter
reading verification, final bill readings, reconciling inside and outside
readings, correcting over-estimated accounts, etc.
(j) Elimination of annual audit read
· Each year city maintenance personnel reads the entire city which takes
approximately six weeks as an audit check on meter readings and to
make sure no new housing starts have fallen through the billing cracks.
This process will no longer become necessary.
@ Safety
· Meter reading carries a certain amount of risk associated with
accidents such as falls and dog bites which either contract or mobile
radio reading would avoid.
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@ Liability
. There is always the potential for liability suits that can be greatly
reduced if public contact can be avoided,
@ Property Access
. This item is probably the greatest single benefit derived from a radio-
read system. People today generally do not want anyone inside their
home or even trespassing on their property. This attribute has no
measurable price tag but is extremely desirable from the public's
perspective.
B. Disadvanta2es
CD Cost
. Radio-read technology has a higher pnce tag than manual read
registers.
@ Relatively New Technology
. While there are not established track records in long term maintenance,
cities such as Savage, Eden Prairie, Edina and Robbinsdale have
committed to this automated technology and both Excel and Reliant
Energy at this point are satisfied with the success they have
experienced to date.
@ Lifespan
. Depending upon the manufacturer, actual expressed warranties range
anywhere from 5-7 years. However the vendors have stated these are
very conservative estimates and that actual trial and experience has
indicated reliability extending over 10-18 years. Time will tell.
1. Contract Read
Funding has been provided within the Enterprise Fund budget (Water
Department) to contract out meter reading on a community wide basis. RMR
Services, Inc. has provided both manual meter reading and mobile meter
reading for sixteen cities in the metro area i.e., Eagan, Lakeville, Rosemount
among a few) They are presently involved in changing out the entire city of
Eden Prairie to automatic radio read over a three year time frame. They also
provide all the necessary radio read hardware and software plus they layout
the reading routes. For just manual meter reading services, they have proposed
a price per read of $.70. This amounts to an annual cost of $21,840 based
upon 5200 metered services in Prior Lake. The reading cost would decline
substantially over time if radio read meter registers are installed and manual
outside units are eliminated.
2. City Read
The City could not hire a person, and provide the additional equipment and
associated overhead cost with a meter reader and expect to read meters for
less cost than indicated above. Contract reading is more cost effective for
manual read meter registers. However, if the City were to implement radio
read technology, we could take over reading once the city is converted as we
could probably read the entire city in less than one day.
H:\WaterIMeterprogram,doc 1
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H,\WaterIMeterprogram,doc
. Water meters range in cost from $65.00 to $85.00 for the base meter
including either a manual or touchpad register plus labor of $35 to
install would result in a minimum total average unit price installation of
$110.00. Assuming replacement of an existing 2500 meters (Pre-1985)
or 50% of our existing stock, the actual meter exchange cost would be
approximately $275,000.00
· Radio read units that may be applied either directly at the water meter
or connected to the house exterior range in cost from $75.00 to
$125.00. The addition of radio read units (including a labor additive for
one-half of the units), depending upon the manufacturer, would on
average cost an extra $515,000.00 for the conversion of 5000 water
meters.
· All future new home construction would be required to install radio-
read water meters versus today's touchpad meter requirement and
would continue to be incorporated into the building permit fee.
· The total investment of $790,000.00 would be recovered over a 10-
year period alone by the 15% increase in accuracy due to the
replacement of new water meters.
The timeframe for turning over our existing stock of meters is fairly important
and somewhat dependent upon which type of meter technology is
implemented. If radio-read meter technology is chosen then it probably makes
sense to be fairly aggressive and replace all existing outside registers within a
3-5 year time span. Inside meters that are 10 years old or less would remain in
place. Approximately 50% of our water meter stock would be replaced during
this time. If the touchpad option were chosen then a 10 year time period could
be accommodated.
Cities such as Savage and Eden Prairie who are going with radio read meters
are converting their entire communities on a wholesale basis. Both Reliant
Energy and Excel Energy (gas and electric utility companies) have already
converted to automatic reading technology. Virtually all (98%) Excel Energy's
electric consumers' meters in the metro area are being read using auto-read
technology and 72% statewide, Reliant Energy (formerly Minnegasco) will
have upgraded almost 70% of all their accounts to this technology.
Staff would recommend that the following actions should occur:
· Initiate water meter change-out program.
· Contract for meter reading services.
. Implement radio-read technology.
Turning over and replacing our water meters is a maintenance issue that is required
and will ultimately pay for itself The technological choice is of equally importance
as it will in all likelihood be one that we will accommodate for at least the next 10
years.
The City of Prior Lake is the only community that we are aware of which requires
its residents to read their own meters. It is important that we change this situation
and provide this service to our customers,
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Automating the meter reading process will pay dividends over the long term and is
the direction virtually all utility companies, public and private are heading.
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Next Council Review
CD Formal Council Approval of Water Meter and Automatic Meter Read
(AMR radio-read) Selection
· A specific water meter would be selected based upon unit cost and
radio-read compatibility.
CID Formal Council Approval of Meter Reading Services
· Per reading quotes would be obtained to contract out meter reading
servIces.
@ Formal Council Approval of Meter Replacement Services
· Per unit installation quote would be obtained for installing both water
meter and AMR unit.
· Plus a per unit installation quote would be obtained for AMR unit
installation only.
H,\ WaterIMeterprogram,doc
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