C. Discuss Water Meter Radio Needsto
BACKGROUND
Phone: 952.227.1180
cl_
CITY OF
In 2001, the City installed radio devices on all the water meters to obtain the water usage
Engineering
remotely without having to go on private property and read the meters. Previously, each
Phone: 952.227.1160
MEMORANDUM
Fax: 952.227.1170
meters can be read by one Utility Department staff member in approximately 4 hours by
C SEN
driving a vehicle throughout the city and collecting the usage data. This data is then
Finance
downloaded to the Finance Department for billing. This system has served the city well;
""` °'""
TO:
Todd Gerhardt, City Manager
life expectancy of 10 years. Staff has been looking into this situation for two years to
7700 Market Boulevard
identify options to address the battery failures. Staff had originally included funding in
Park &Recreation
the 2011 Water Operations budget to start replacing the radios last year as the batteries
PO Box 147
FROM:
Paul Oehme, Director of Public Works /City Engineer
G '
Chanhassen, MN 55317
gives staff direction on what replacement option system is desired.
2310 Coulter Boulevard
Phone: 952.227.1400
DATE:
March 26, 2012
the water meter radio failure problem were discussed.
Administration
Phone: 952.227.1100
SUBJ:
Discuss Water Meter Radio Needs — PW02401
Fax: 952.227.1110
Building Inspections
BACKGROUND
Phone: 952.227.1180
the radio batteries can only be replaced with the same 10 -year life battery since
Fax: 952.227.1190
In 2001, the City installed radio devices on all the water meters to obtain the water usage
Engineering
remotely without having to go on private property and read the meters. Previously, each
Phone: 952.227.1160
meter had to be physically read which would take weeks to complete. Currently, all
Fax: 952.227.1170
meters can be read by one Utility Department staff member in approximately 4 hours by
Phone: 952.227.1300
driving a vehicle throughout the city and collecting the usage data. This data is then
Finance
downloaded to the Finance Department for billing. This system has served the city well;
Phone: 952.227.1140
however, the batteries for the radios have begun to fail. The batteries for the radios had a
Fax: 952.227.1110
life expectancy of 10 years. Staff has been looking into this situation for two years to
Phone: 952.227.1125
identify options to address the battery failures. Staff had originally included funding in
Park &Recreation
the 2011 Water Operations budget to start replacing the radios last year as the batteries
Phone: 952.227.1120
failed. Since replacement of equipment is more of a capital improvement project, these
Fax: 952.227.1110
funds were shifted to the Capital Improvement Program in 2012 for one year until council
Recreation Center
gives staff direction on what replacement option system is desired.
2310 Coulter Boulevard
Phone: 952.227.1400
At the February 13, 2011 Council work session, staff presented three options to address
Fax: 952.227.1404
the water meter radio failure problem were discussed.
Planning &
1. Replace only the battery of existing radios. This option is the cheapest; however,
Natural Resources
Phone: 952.227.1130
the radio batteries can only be replaced with the same 10 -year life battery since
Fax: 952.227.1110
the housing of the radios will only fit the smaller 10 -year life battery. The older
generation radios are likely to use more power in the future as the system gets
Public Works
older, which may decrease the life expectancy of the batteries even more. Also,
7901 Park Place
staff would need to take apart the radio, cut out the old battery and splice in a new
Phone: 952.227.1300
battery. The spliced connections on these radios can be hard to make with fine
Fax: 952.227.1310
gage wire in typically low light environments. Based on comments from other
communities that have attempted to replace batteries with similar systems as
Senior Center
Chanhassen's, the batteries have a tendency to fail prior to the 10 -year life
Phone: 952.227.1125
expectancy battery.
Fax: 952.227.1110
2. Replace the radios and batteries with the same manufacturer (Sensus Co.) system
Web Site
www.ci.chanhassen.mn.us
the City currently uses. This mobile (drive -by) meter reading option incorporates
the same radio frequency and software the City currently uses.
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Chanhassen is a Community for Life -Providing for Today and Planning for Tomorrow
Todd Gerhardt
Discuss Water Meter Radio Needs
March 26, 2012
Page 2
Staff has looked into possibly switching to another manufacturer's mobile radio system;
however, other systems are estimated to cost more. The system would still require the utility
operator to physically drive up and down a street to obtain the meter reads. It employs a one -way
radio system, meaning there is no modern functionality features common with modern systems.
Meter re -reads and final meter reads also require an employee to physically visit the outside of
the homes to obtain the readings. In the last quarter of 2011 alone there were 66 final reads that
required a physical proximity visit. This system has approximately a 20 -year life expectancy.
Staff time is estimated at 1/3 of a utility employee's annual hours to read the meters.
3. Upgrade the radio meter system with a fixed -based system. This more technologically current
system uses a 2 -way radio system. The system would require collectors and antennas to be
located on water towers and lift station antenna poles to collect the readings. Meter readings can
then be read at City Hall by the Finance Department, freeing up time and costs of a Utility
Department employee. Also this system has an increased customer service function, a customer
service software suite for instant re -reads and final reads. Billing questions can easily be
addressed in real time by this system providing greater and timelier customer service. Billing
would be much more streamlined and efficient for the Finance Department. This system has
approximately a 20+ -year life expectancy.
After reviewing the costs of the three options, the City Council directed staff to detail the time,
installation and cost involved for Options 1 and 3 for replacement for all batteries or radios in the
community not just for the radios batteries that are anticipated to fail in the next few years. Option 2 was
not thought to be the direction the City should take because it cost about the same as Option 3 and did
not provide greater customer service for the community.
DISCUSSION
Over the next few years, staff is estimating most of the radio batteries originally installed in 2011 will
fail. The City had 6,262 water accounts in 2001. Today there are 7,679 accounts. The options included
in the background include replacement of just the batteries or the meter radios with a fixed based system.
Two alternatives for each option for installation were identified. The alternatives include the cost of the
batteries or the fixed -based radios replacement and the installation cost estimates for each option. The
alternatives would complete the installation at different lengths of times and include outsourcing the
installation depending on staff time constraints. The alternative cost estimates also include City staff
overtime and inflation.
Alternative 1 would replace just the batteries for Option 1 or replace the radio with a fixed -based system
for Option 2 over a 3 -year period. These alternatives would set a defined completion date for the project.
Staff is anticipating that most of the project will be completed in -house if either of these alternatives is
selected; however a contingency for outsourcing some of the installations is included in the budget if
staff time becomes limited.
Alternative 2 would condense the project into a 9 -month period for both options. In order to accomplish
this, outsourcing the installation would be necessary. City staff could still be utilized for scheduling and
installations of a small portion of the project, but the majority of the project would need to be completed
by others. The cost identified for these alternatives assumes outsourcing 100% of the project.
Attachments
Kevin Crooks, Utility Superintendent
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Option 1 - Water Meter Radio Battery Replacement Project with Installation Costs
Alternative 1 - Replace Radios Batteries in 3 years with City Staff
Est.'ed Radio replacements per yeas
10 Year Battery $20.91
Staff O.T. afterhours replacements (Est. 35% of Installs)
Budget Contingency for Outsourcing some Installations
Yearly Total Project Est.
Estimated Staff Time Assuming all done in -house
Estimated Staff Salary cost assuming all done in -house
YEAR
2012
2013
2014
Total
2,000
3,500
2,179
7,679
$41,820
$10,200
$30,000
$75,381
$17,900
$60,000
$48,338
$11,200
$30,000
$165,538
$39,300
$120,000
$82,020
$153,2811
$89,538
$324,838
1,670 2,920 1,82U b,41U
19,000 33,300 20,700 73,000
ote:
It is estimated up to 3,500 radios could be replaced annually by staff with 2 staff dedicated to replacements
Will most likely need more then one person scheduling appoints for all years.
Recommend budgeting $120,000 (2,000 radios replacements) for contractor assistance if staff time becomes limited.
Includes 3% annual inflation for Batteries
Alternative 2 - Replace Radio Batteries by Outsourcing Installations
Estimate Radio Replacements per Year
Cost Estimate
10 Year Battery $20.91
Outsourcing all Installations ($60 /install est.)
Yearly Total Project Est.
City staff time savings by outsourcing project that could be
dedicated to other tasks (6,400 hrs. /yr.)
Total Project estimate with staff time deduction
YEAR
�J 2012 2013 Total
3,5001 4,1791 7,679
$73,1851 $90,0041 $163,189
$210,0001 $250,7401 $460,740
$283,1851 $340,7441 $623,929
$51,200 $61,100 $112,300
$511,629
Note:
1. Includes 3% annual inflation for Batteries
Option 2 - Fixed Base Water Meter Radio Replacement Project with Estimated
Alternative 1- Replace Radios in 3 years with City Staff
Est.'ed Radio replacements per yeas
Radio Infrastructure and Software
Normal Radios $91
Higher Power Radios $110
Radio Equipment Estimate
Staff O.T. afterhours replacements (Est. 35% of Installs)
Budget Contingency for Outsourcing some Installations
Yearly Total Project Est.
Estimated Staff Time Assuming all done in -house
Estimated Staff Salary cost assuming all done in -house
YEAR
2012
2013
2014
Total
2,000
3,500
2,179
7,679
$83,000
$83,000
$131,313
$328,055
$210,365
$669,733
$61,270
$61,270
$275,583
$328,055
1 $210,365
$814,003
$10,200
$17,900
$11,200
$39,300
$30,000
$60,000
$30,000
$120,000
$315,783
$405,955
$251,565
$973,303
1,610 2,920 1,820 b,41U
$19,000 $33,300 $20,700 $73,000
Note:
1. It is estimated up to 3,500 radios could be replaced annually by staff with 2 staff dedicated to replacements
2. Will most likely need more then one person scheduling appoints for all years.
2. Recommend budgeting $120,000 (2,000 radios replacements) for contractor assistance if staff time becomes limited
3. Includes 3% annual inflation for Radios
Alternative 2 - Replace Radios by Outsourcing Installations
YEAR
Estimate Radio Replacements per
I N ote:
Radio Infrastructure and Software
Normal Radios $91
Higher Power Radios $110
Radio Equipment Estimate
Outsourcing all Installations ($60 /install est.)
Yearly Total Project Est.
City staff time savings by outsourcing project that could be
dedicated to other tasks (6,400 hrs.)
Total Project estimate with staff time deduction
3% annual inflation for Radios
$1,152,221
1 12012 2013 1 Total �
3,500 4,179 7,679
$83,000 $83,000
$267,813 $391,698 $659,511
$61,270 $61,270 ��
$412,083 1 $391,698 1 $803,781
$210,000 1 $250,740 1 $460,740
$51,200 $61,100 $112,300
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