Agenda Packets - 1995/06/05 - Laserfiche WebLink

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There are a few other issues relevant to this proposal to review. Reading of commercial meters, quarterly, with full time staff is not a valuable use of resources. Valuable staff labor hours are utilized almost daily to perform final readings. And it requires numerous staff hours to input reading data into the computer for quarterly water billing. With the current method of meter reading the City has no flexibility to change to monthly billing, which is considered by some families to be more manageable. Water accountability in relationship to wastewater charges is more accurately produced. Finance Director Don Brager and myself have researched a couple of financing options should council wish to proceed with this project. A meter surcharge, to replace the current meter and future meters may be instituted. If the City were to charge each residential service, five ($5) dollars per quarter, commercial and industrial accounts could be more, since the cost of these meters cost considerably higher, approximately $59,000 could be raised each -year . -Use of —some -portion- of the WAC fund could also be utilized to buy down the initial investment. An additional $ .05 to the water rates would raise approximately $24,000. In summary, while the high initial increase in revenues, and a relatively short payback in the earlier reports will not be realized through a meter change out, there still are very good rational reasons for possibly pursuing this project. Through our findings, the City has been very fortunate to have an above average accuracy in it's water meters. It is merely a matter of time, since the manufactures were only capable of producing a meter that had a useful (accurate) lifetime of twenty (20) years, that our system like many others will rapidly decline. With this decline will come lost earnings. If the City chooses to not replace the system, with state of the art technology today, in the future, after considerable funds have been left unrecoverable, we can see a very high initial revenue increase, and a shorter payback period. These are several options in making this changeout a reality should Council wish to proceed. Although as stated earlier, the pay back period has increased, and the necessity of additional financing will be required, staff is still of the opinion that a total meter changeout to an advanced technological system, is a sound decision. Regardless of Counci2s decision as to whether to proceed with this project, staff wishes to thank the representatives from Waterpro and Sensus for their valuable time and expertise in this endeavor. I would respectfully request that Council express this to these individuals. Staff seeks Council direction in this matter. Michael Ulrich, Director of Public Works