HomeMy WebLinkAbout12 Metering Water Services Agenda Item # 12
TRUCKEE DONNER
Public Utility District
WORKSHOP
To: Board of Directors
From: Neil Kaufman
Date: April 16, 2008
Subject: Metering of Residential Water Services
1. WHY THIS MATTER IS BEFORE THE BOARD
AB 2572 requires the District to begin reading residential water meters and billing on
a volumetric basis. Implementation of residential meter reading will require a number
of Board actions and will have a financial impact on the District.
2. HISTORY
In 1991, the Water Measurement Law (SB 229) was enacted. This law required that
water meters be installed on all new commercial and residential water connections
as of January 1 , 1992. SB 229 did not require the retrofit of meters onto previously
existing customers. SB 229 does not require that the water meters be read and does
not require billing of customers on a volumetric basis. The District has been installing
water meters on all new connections since 1992 and is in compliance with this law.
On September 29, 2004, AB 2572 was signed into law. A copy of this legislation is
attached for your review. AB 2572 requires that the District begin reading the water
meters installed since 1992 and commence billing on a volumetric basis by January
1, 2010. AB 2572 also requires that all connections be equipped with water meters
and billed on a volumetric basis by January 1, 2025.
3. NEW INFORMATION
As of January 1, 2008 there were 11,726 residential water accounts. Based on
available information, Table 1 gives a breakdown of these accounts regarding meters.
Table 1. Residential Meter Inventory
Category Total
Constructed 1992 and More Recent 4,651
Constructed Prior to 1992— Equipped with Meter 736
Constructed Prior to 1992 — No Meter 6,339
Total 11,726
All residential customers are currently billed a flat monthly rate for water service
which does not vary with the amount of water used by the customer. There are an
additional 651 commercial water accounts. All of the commercial accounts are billed
on a volumetric basis.
As noted above, there are 6,339 residential accounts not currently equipped with a
meter. For some of these accounts, there is an upgraded meter box and installation
of a meter is relatively straightforward, with the cost for purchase and installation of a
new meter and radio at about $250. For others, upgrading of the meter box is
required or a meter box does not exist. In these cases, purchase and installation of a
meter could cost up to $1,500 per customer.
The Water Department has spent significant time identifying changes and
improvements to current practices to reduce the cost of implementing water
metering. A proposed implementation time line has been developed and is given
below:
• Board decision regarding older properties - April/May 2008
• Develop RFP/Bid Package for AMR (Automatic Meter Reading) system - May/June
2008
• Bidding & purchase of AMR system - June/July 2008
• Install pilot program meters - Aug to Oct 2008
• Bring AMR on-line - Aug to Oct 2008
• Installation of remaining meters for AB 2572 Compliance - Summer 2009
• Develop alternative rate structures - Summer 2009
• Finalize rate structure in conjunction with development of FY 2010 budget — Fall
2009
• Begin sample billing based on meter reads - January 2010
• Full implementation of metered billing - January 2011
• Install meters on remaining customers — 2010 through 2018
The above schedule anticipates bidding and purchase of a new AMR system. The
District currently utilizes a drive-by radio AMR system to read its electric meters and
about 400 of the commercial water meters. The current system functions adequately
for reading electric meters but experiences problems with reading of the water
meters. The current technologies for reading water meters are a significant
improvement over the District's current system and the Water Department anticipates
implementing a new system. At this time, no changes are planned for the reading of
electric meters. However, the capability of the new AMR system to read electric
meters would be one evaluation criteria to be considered.
Of primary importance is pursuit of a pilot program during the Summer of 2009. The
purpose of the pilot program is threefold.
1) Gather Data Regarding Actual Customer Usage - It is proposed to gather actual
customer usage from 400 residential meters using the new AMR system. These
customers would be selected to develop representative water consumption data
based on different parameters such as:
• Permanent vs. part time residents
• Different geographic areas
• Lot size
• Age of residence
The consumption data gathered would be used to develop rate structure alternatives
for consideration by the Board in conjunction with development of FY 2010 budget.
2) Provide Refined Costs For Meter Installation - The Water Department has
developed cost estimates for the implementation of metering. The installation of 400
meters in a range of meter box configurations will allow for more precise cost
estimates to cover the installation of the remaining meters.
3) Validate AMR Technology Selection — As noted above, the current AMR system
does not function well. The pilot program would covert a portion of the existing
commercial meters to the new AMR system along with the installation of the 400
residential meters. The system would be operational in the Fall of 2008. The District
would evaluate its capabilities during the Winter of 2008-09 to ensure that the
performance complies with the District's requirements. If performance is satisfactory,
full implementation would commence in the Summer of 2009.
During the Summer of 2009, the new AMR system would be installed on all of the
existing residential and commercial water meters. In addition, AMR-equipped meters
would be installed on those customers without a meter but with an upgraded meter
box. This would result in about 7,000 residential water meters and all commercial
water meters in place and functional by January 1, 2010. AMR-equipped meters
would be installed on the remaining residential customers during the following years
with full implementation for all customers anticipated by January 1 , 2019.
The Water Department's FY 2008 budget includes $265,823 for a Residential Water
Meter Study. To date about $25,000 has been spent, almost all of it in labor costs.
Purchase of the AMR equipment for the pilot study is estimated at $140,000. The
remaining monies would be spent on labor and materials for installation of the meters
and meter boxes.
4. FISCAL IMPACT
The Water Department's FY 2008 budget includes $265,823 for a Residential Water
Meter Study. Is it expected that all of these monies would be expended if the pilot
program is pursued.
The fiscal impact of fully implementing water metering is significant. Potential costs
and funding alternatives will be presented at the workshop session and future Board
meetings.
5. RECOMMENDATION
Review this report and provide direction to staff.
Ed Taylor, Water Utility Manager Michael D. Holley, General Manager