HomeMy WebLinkAboutItem 5h. Authorization to Apply for Watersmart Grant for Advanced Meter Infrastructure Water Meters Item 5h
Department: Utilities
Cost Center: 6004
For Agenda of: 6/4/2024
Placement: Consent
Estimated Time: NA
FROM: Aaron Floyd, Utilities Director
Prepared By: Nick Teague, Water Resources Program Manager
SUBJECT: AUTHORIZATION TO SUBMIT AN APPLICATION FOR WATERSMART
GRANT FOR ADVANCED METER INFRASTRUCTURE (AMI) WATER
METERS
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, approving the application for grant funding for the WaterSMART Water
and Energy Efficiency Program for purchase and implementation of advanced metering
infrastructure.”
POLICY CONTEXT
This project would address major city goals associated with climate action, as the project
would reduce the number of vehicle trips required when turning water on and off for new
customers and when investigating high water use. Climate action goals would also be
addressed due to the new technology decreasing the volume of water lost due to water
leaks. Reductions in water leaks results in less energy demand to pump and treat water
and wastewater.
Additionally, the implementation of Advanced Meter Infrastructure (AMI) would contribute
to major city goals related to economic resiliency and fiscal sustainability by reducing
utility and customer costs for water wasted due to leaks or overirrigation.
DISCUSSION
The City currently uses a contract meter reading company to read meters between the
3rd and 10th day of each month. Incidences of late delivery of these services over the
past two years have led to staff proposing that the City begin migrating water meter
reading from contract operations to an Advanced Metering Infrastructure (AMI) system.
AMI systems allow water consumption data to be collected by digital water meters and
transmitted to an online portal through a low-frequency cellular transmission device
commonly referred to as a radio. In 2017 the City entered into a contract with Badger
Meter Inc. after an RFP process for a 5-year term.
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Item 5h
In 2022 a contract amendment was approved with Badger Meter Inc. to include AMI radios
and extend the contract for three additional years. This project will require increases in
the City’s budget for purchasing water meters, radios, and AMI-compatible meter box lids,
as well as two full-time contract (3-year in duration) meter and radio installation positions,
who will work alongside Water Distribution staff to expedite water meter replacement and
radio installations. The AMI project will be recommended to Council for funding as part of
the 2024-25 budget supplement process. To assist with expenditures, staff is also
beginning to seek grant opportunities.
Following installation of AMI on a meter, water customers can create an account providing
access to a web-based and/or app-based portal. The portal provides access to real-time
water-use data and allows customers to set alerts for abnormal use or potential leaks.
The real-time water-use data can help customers understand their water-use patterns
and identify opportunities to use water more efficiently. Whereas, the alerts can help
customers stop and resolve issues before they are typically discovered during the City’s
current monthly meter reading – saving both the customer and the City time and money.
WaterSMART Water and Energy Efficiency Grant
The WaterSMART Water and Energy grant program is administered by the U.S. Bureau
of Reclamation (USBR). Through WaterSMART, the USBR leverages Federal and non-
Federal funding to work cooperatively with States, Tribes, and local entities as they plan
for and implement actions to increase water supply sustainability through investments in
existing infrastructure and attention to local water conflicts. Five million dollars
($5,000,000) per application is available for the current round of funding and the program
requires a 50% match utilizing local funds. Staff recommend applying for up to
$2,764,707.64 to fund contract staff who will conduct AMI installation, the purchase and
installation of AMI-compatible water meters, radios, and meter box lids and software
upgrades.
The City’s proposed timeline for delivery of the AMI project would begin in July 2024, in
alignment with the City’s 2024-25 budget adoption, and full implementation is anticipated
to take three years. WaterSMART grants are scheduled to be awarded in August 2025,
about one year into the three-year project. Due to this misalignment of project start time
and grant awards, the City will not likely be eligible for reimbursement for the full AMI
project cost. However, staff are requesting authorization to apply for the complete amount
in case the grant allows for reimbursement for previously completed work. Staff do not
recommend delaying the implementation of AMI pending the outcome of the grant
application, since the WaterSMART grant is a highly competitive grant solicitation and the
need for AMI is immediate. If staff discovers that previously completed work is not eligible
for reimbursement, the grant application will be submitted for a lesser amount,
comparable to the expenses estimated for the final two years of the project.
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Item 5h
Previous Council or Advisory Body Action
On May 2, 2017, the City Council adopted a City standard for water meters and approved
the release of an RFP for the annual purchase of water meters. As part of the staff report,
staff recommended that the selected meter vendor produce water meters that are
compatible with remote reading devices, thus ensuring that meter s installed since 2017
are AMI-compatible.
Public Engagement
The City is currently conducting a 100-meter AMI pilot study where staff are gathering
statistics regarding use and user feedback to better understand how the program may
benefit customers. Staff have received hundreds of requests for AMI water meters over
the past five years. Requests have generally come from customers who have
experienced water leaks who had AMI water metering in their previous residences in other
cities.
CONCURRENCE
The Utilities Department, Finance Department, and City Administration have reviewed
this authorization request and concur with its contents.
ENVIRONMENTAL REVIEW
The application for a WaterSMART grant is not a "project" under the California
Environmental Quality Act (CEQA), because the action does not involve any commitment
to a specific project which may result in a potentially significant physical impact on the
environment, as contemplated by Title 14, California Code of Regulations, Section 15378.
Implementation of the AMI project will be categorically exempt from CEQA pursuant to
Section 15301 (Existing Facilities) of the CEQA Guidelines as installation of AMI on City
meters constitutes operation, repair, or minor alteration of existing public mechanical
equipment involving no expansion of existing use of the meters.
FISCAL IMPACT
Budgeted: No Budget Year: 2023-24
Funding Identified: No
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:
Total $0 $0 $0 $0
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Item 5h
There is no fiscal impact associated with this recommended action. Submission of grant
applications does not obligate or commit the City to accept grant agreements from any
agency but allows this phase of the grant application process to begin. Staff will return to
Council for approval before entering any grant agreement.
The City is seeking approval to kick-off the AMI water meter replacement project during
the 2024-25 Supplemental Budget. Should the City be awarded a grant to offset project
costs, the total project cost could be reduced by as much as $2,764,708. Given the
competitive nature of the grant solicitation, and the fact that the grant may be awarded
after project construction has begun, staff anticipate that a lesser amount may be
awarded if the City is selected to receive grant funding for this project.
AMI Grant Financing Information
Staffing Costs $167,670
Software Upgrade Costs $5,512
Setup and Training Fees $2,625
Meter Boxes, Radios, and Water Meters $5,353,607
Total AMI Project Costs $5,529,415
Maximum Possible Grant Award (50% of Project Cost) $2,764,707
ALTERNATIVES
1. The City Council could decide to deny authorization to apply for grant funding.
This alternative is not recommended because this grant would provide supplemental
funding to a project that will be proposed as part of the budget supplement process.
Utilizing grant funding will result in cost savings for the City.
2. The City Council could direct staff to delay the start of the AMI Meter project.
Staff do not recommend this action since the WaterSMART grant is highly competitive
and the initiation of the AMI project is a high priority for the Utilities Department.
Delaying the implementation of the AMI project could result in delays in collection of
water and sewer revenue.
ATTACHMENTS
A - Draft Resolution authorizing submittal of a Water SMART Water and Energy Efficiency
Grant
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R ______
RESOLUTION NO. _____ (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE APPLICATION FOR GRANT
FUNDING FOR THE WATERSMART WATER AND ENERGY
EFFICIENCY PROGRAM FOR PURCHASE AND IMPLEMENTATION OF
ADVANCED METERING INFRASTRUCTURE
WHEREAS, Congress has authorized the WaterSMART grant program, which is
administered by the United States Bureau of Reclamation, with $5 million available per
project; and
WHEREAS, the WaterSMART grant leverages Federal and non-Federal funding
to work cooperatively with States, Tribes, and local entities as they plan for and implement
actions to increase water supply sustainability through investments in existin g
infrastructure and attention to local water conflicts; and
WHEREAS, Advanced Metering Infrastructure (AMI) systems allow water
consumption data to be collected by digital water meters and transmitted to an online
portal through a low-frequency cellular transmission device, which will allow staff and
community members more visibility and accuracy of water meter reads, will result in
improved leak detection and water budgeting, and will result in a more consistent meter
read schedule, more accessible water use data, and, consequently, more predictable bills
for customers.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
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Resolution No. _____ (2024 Series) Page 2
R ______
SECTION 1. Authorizes staff to prepare and submit an application for the
WaterSMART Water and Energy Efficiency grant program.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 24.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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