5 Water Meter ReplacementCITYOF
690 C/t), Center Drive, PO Box 147
Chanhassen, Minnesota 55317
Phone 612.93Z 1900
General Fax 612.937.5739
E, gineedng Fax' 612.93Z 9152
Pub& SafeO, Fax 612.934.2524
Web www. d. cha,hasse,.m,.,s
MEMORANDUM
TO:
FROM:
DATE:
Scott A. Botcher, City Manager
Teresa J. Burgess, Public Works Director/City Engine..e..~
February 26, 2001
SUBJ:
Discussion of Contract for Meter Replacement Program
It is recommended that the City Council approve a consultant contract for meter
replacement and radio read installation with US Filter in the amount of
$1,267,701.45. This contract is on a per each basis. The number of units
necessary has been estimated based on water billing information supplied by the
City's Finance Department.
US Filter is the current supplier for the meters and readers installed by the City.
Because of inventory and maintenance issues, the City only uses one supplier for
meters and readers.
Use of US Filter will result in both a cost savings to the City and increased
convenience to property owners. Using existing City staff would require
significant overtime. US Filter hires local utility personnel to do the work on a
part-time basis, which is less expensive than overtime. In addition, the work can
be done in the evening and on weekends when it is more convenient for most
homeowners.
This contract will accomplish two major goals for the City:
1. Improve meter read accuracy.
2. Reduce meter read time.
As meters age, they run slower. Mineral build up in the meter further reduces the
accuracy of the meter. The older meters do not register all of the water passing
through them. This means that the City is sUpplying more water than is being
billed, normally without the property owner's knowledge. A review of the City's
water production shows a significant loss of revenue. The majority of this
discrepancy is through meters not recording the actual water use. (Note: The
decrease from 1999 to 2000 in the amount of water lost is most likely due to the
sprinkling restrictions in late summer of 2000.) Increased meter accuracy has two
effects:
.
The property owner is billed for all of the water used.
The property owner is aware of how much water is being used. This
often results in conservation efforts by the property owner. (One
drawback of the meter change out is that many property owners are not
aware of the amount of water they are using. More accurate meter
Cit~, of Chmthasse,. A ~t'owine commu,ity w/th clea, lakes, aua/itv schools, a chamtin.~ downtown, thdvin.~ businesses, and beautiM oarks. A ~reat dace to live. work. and ola~.
Scott Botcher
February 21,2001
Page 2
reads will undoubtedly result in higher water bills for many properties
in the City.)
The City currently uses a combination of touch meter reader and manual read
(similar to a car odometer). These two systems have some major drawbacks that
radio reads will eliminate:
An employee must physically touch the reader pad with an electronic
reader or manually enter them on a keypad on the meter reader. Meter
billing in the city of Chanhassen is done on a quarterly basis.
One-third of the city is read each month. The monthly reading
requires approximately 1 FTE (full-time equivalent). The radio read
takes approxilnately 4 hours per month for the entire city. This
reduction in staff time will allow the City to continue to operate with a
small utility crew as well as improve the billing accuracy by insuring
timely readings.
,
The reader pad is connected to the meter by a wire. Wiring the
connection is a time intensive process, h~ addition, the wire is often
damaged during construction or renovations done by the homeowner.
The wire is not necessary for the radio reader.
,
During cold weather, the generator in the reader pad can fail to register
the siam~al fi'Oln the meter in the house. It is common when the City
does a final meter read for a home sale to find that a significant
amount of water has been recorded by the house meter, but not by the
reader pad. The City does not back charge of this water usage. The
radio reader is inside the home so it does not have the cold weather
problem.
4. Property owners do not like the reader pad on the side of their home.
There is no need for the reader pad with radio readers.
A review of the revenue losses show that the meter replacement will pay for itself
in 4-5 years. While meter replacement will not eliminate the water loss, it will
reduce the loss and increase the City's ability to pinpoint other losses. Public
Works is proposing to delay construction of Well 9 to offset the immediate costs
of the meter replacement, but this will only cover ½ of the total estimated cost.
Well 9 is scheduled for $65,000 in 2001 and $480,000 in 2002. This leaves a
shortfall of $722,701.45. This amount is proposed to be a combination of Utility
Expansion Funds and Existing Budget.
Attachments: 1) Proposal from US Filter.
2) Summary of Chanhassen Water Loss.
c: Kelley Janes, Utility Superintendent
G:\ENG\TE RESA\staff reports~,staff report-2-26.doc
Job Name: CHANHASSEN METER PROJECT
Location: CHANHASSEN
Customer: CHANHASSEN UTILITY DEPT
Engineer:
Bid date: 2/20/01
Seq# Qty Description
20 3,285
30 200
40 75
50 25
60 15
80 5,400
100 1,800
110 3,600
5/8x3/4 SRII ECR Meter 1000g
3/4 SRII ECR Meter 1000g
1 SRII ECR Meter 1000g
1 1/2 SR Fig ECR 1000g
2 SR Fig ECR 1000g
Sensus MXU Model #505
MXU INSTALLATION
METER AND MXU INSTALLATION
Salesman: PAUL THOM
Branch: USFILTER - EDEN PRAIRIE
Phone' (952) 937-9666
Fax' (952) 937-8065
Mobile' (612) 597-8515
Units Price
Ext. Price
EA
EA
EA
EA
EA
EA
EA
EA
75.0O
97.00
138.00-
309.00
432.00
125.00
35.00
45.00
246,375.00
19,400.00
10,350.00
7,725.00
6,480.00
675,000.00
63,000.00
162,000.00
ALL QUANTITIES ARE ESTIMATED
Bid Totals
Sub Total
Tax
Bid Total
$1,190,330.00
$77,371.45
$1,267,701.45
Date Printed: 2/20/01 "Provided for the exclusive use of US Filter customers" Page No. 1
City of Chanhassen Water Usage and Billing
Water Rate 1.30
Sewer Rate 2.60
Total Rate 3.90
Total Water Pumped
Total Water Billed
Total Water Loss
1997 1998 1999 2000 Total
751,222,800
685,219,000
63,403,800
801,342,250
731,603,000
69,739,250
854,028,400
782,636,000
70,092,400
895,567,05O
859,600,000
34,947,050
3,302,160,500
3,059,058,000
238,182,500
Revenue Loss 247,275 271,983 273,360 136,293 928,912
Other Factors Relatin.q to Cost
Reading Costs
100% Accurate Reads (NO RE-READS)
One Meter Reader for 4 hours PER MONTH
30 day period on water and sewer bills are possible
Decreased billing time
Greater Accountability
Customer Service and Satisfaction
No entry onto property
No Workman Compensation Issues
Cash Positive in year 5
Major Component of DNR Conservation Plan