During the February 19 regular meeting, the Levelland City Council approved a Project Development Agreement (PDA) with Ameresco for the Investment Grade Audit, per the terms in the PDA, on the city’s water meters and authorize the city manager to execute the necessary documents.
The City of Levelland is currently using an Automated Meter Reading (AMR) system that automatically collects water consumption and status data from water meters. AMR systems utilize radio frequency to send the data to the meter it is registering to a truck mounted antenna which in turn is connected to a laptop that receives the data from every meter as the truck drives through the alley.
After collection on the laptop, the meter data is transferred to a computer software at city hall where they monitor and analyze usage, troubleshoot issues, and bill customers based on actual consumption.
City staff are currently looking into an Advanced Metering Infrastructure (AMI) which is an integrated system of water meters, communication networks and data management systems that enables two-way communication between meter endpoints and utilities.
Unlike AMR, AMI does not require utility personnel to drive the alleys to collect the data. Instead, the system automatically transmits the data directly to the utility utilizing base stations and repeaters at predetermined intervals or via a fixed network. The utility can use the data to improve operational efficiencies and sustainability by effectively monitoring water usage and system efficiency, detecting malfunctions and recognizing irregularities.
Advanced Metering Infrastructure (AMI) is capable of capturing granular water meter data, streamlining operations, and improving the subsequent billing processes to provide an enhanced level of customer service to its customers. City Manager James Fisher explained that the city understands the value of technology and believes that the AMI system will be a key tool in achieving this vision. As a critical information technology asset, the AMI system is expected to provide the city with real-time visibility into its operations which will drastically improve the city’s customer experience through improved billing accuracy, faster customer service response times, reliable meter data availability as well as empower the city’s customers with the information they need to control usage, costs and achieve conservation goals.
The City of Levelland is looking for solutions to address aging infrastructure associated with its water meters and to evaluate the potential to install Automatic Metering Infrastructure in the service area. This includes meeting the revised EPA Lead and Copper rule, reducing operational and utility cost, and enhance their services to the citizens.
As part of this effort, staff is exploring ways to maximize current budget dollars for needed improvements and upgrades associated with their metering and water infrastructure. Staff’s key objectives include: - Meet the requirements of EPA’s Lead & Coppery Rule (Service Line Inventory). On August 4, 2022, EPA released Guidance for Developing and Maintaining a Service Line Inventory to support water systems with their efforts to develop inventories and to provide states with needed information for oversight and reporting to EPA. The guidance provides essential information to help water systems comply with the Lead and Copper Rule Revisions requirement to prepare and maintain an inventory of service line materials by October 16, 2024. Specifically, EPA’s Lead Service Line Inventory requires the city identify the service line material on both the city side of the water meter as well as the resident, business side of the water meter.
- Address aging infrastructure needs related to water meters; - Reduce operating and utility costs; - Reduce loss and unaccounted for water; - Provide greater accuracy on water bills; and - Provide greater transparency to citizens.
City staff have been exploring ways to replace meters that are past its useful life as well as install an AMI system for reading meters. The current water meters are mechanical devices that as they age and have large volumes of water pass through them, they lose accuracy.
When they lose accuracy, the city is no longer receiving payment for water (and sewer) that is being utilized by the customers. This creates a financial deficit situation because the city still must pay for the water it receives from CRMWA, however, it does not recover the costs through utility billings.
By utilizing a purchasing cooperative, the city can select a vendor to perform these infrastructure upgrades and associated audit/survey work under the guidance of Texas Local Government Code 302. This process allows cities to implement capital intensive improvements utilizing the utility and operational savings and revenue increases to offset the cost of the improvements and its guaranteed.
The city has met with Ameresco who has done this type of work for many cities in Texas, including Plainview. Ameresco recently presented city staff with a Project Development Agreement (PDA) which outlines their scope of work for this first audit phase.
Ameresco’s scope of work will include the evaluation, design, and development of solutions for the mentioned objectives. A detailed audit, including field visits, meter testing and engineering studies will be conducted by Ameresco over a two-to-four month period. As part of the audit, Ameresco will pull and replace 68 random residential meters which will be then sent to a third party lab who will test the meters according to American Water Works Association (AWWA) standards to determine existing meter accuracy.
Once those test results come back, Ameresco will create a revenue model which will show the city how much revenue they are losing from inaccurate meters. If the meters are inaccurate and the city decides to replace those meters, the additional revenue and those funds could be utilized to help pay for this project, without having to raise water rates or fees.
Ameresco will also be creating a scope of work for meter replacements and AMI installation. As part of this process, city staff will participate alongside Ameresco staff in technology and software evaluations, vendor interviews, and final scope and product selections.
Ameresco will provide the following deliverables to the city after this first phase: - Meter accuracy test results; - Field survey results for meter boxes, lids, and vaults; - Intermediate and large meter audit showing lay lengths and meter types; - Potential revenue that could be captured from inaccurate meters; - Evaluation of various meter and AMI technologies; - Complete and accurate scope of work for meter replacement and AMI installation; and - Firm, fixed turn-key price. Potential benefits for the city include: - Provide operational savings by eliminating the need to manually read the meters; - Provide greater accuracy in meter reading; - Provide great transparency to citizens regarding water usage and billing; - Give citizens greater access to information about their utilization, such as earlier data on leaks; - Increase operational efficiency of utility staff through AMI system features such as remote reads, remote disconnects and daily reporting of usage; - Implement new software that will enable city staff to be more responsive to citizen inquiries; - Provide accurate data that will help the city evaluate and manage its water infrastructure needs; and - Meet the requirements of EPA’s Lead and Copper survey.
This PDA has a $36,500 walk away fee. The city could utilize AARPA Funds if necessary. This walk away fee will only be paid if the city decides not to proceed to a Phase II project, which would include some form of work that was developed by Ameresco as part of Phase I. Any work associated with Phase II will be brought back to city council at a later date for consideration and approval.