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Advanced Metering Infrastructure (AMI) Program
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INFORMATION CONTACT:
Aubrey Lofton, Union County Water, 704-296-4241
ACTION REQUESTED:
(i) Adopt Capital Project Ordinance #292; (ii) approve the purchase of water meters, AMI transmitters, base stations, and associated apparatus, supplies, and equipment through an agreement with Ferguson Enterprises, LLC, with apparatus, supplies, and equipment standardization and compatibility as the overriding consideration in this purchase, as set forth in N.C.G.S. § 143-129(e)(6); and (iii) authorize the County Manager to negotiate and execute an agreement with Ferguson Enterprises, LLC, in the amount of $13,657,018.17 substantially consistent with this agenda item.
BACKGROUND:
Union County Water (UCW) has evaluated current metering and billing operations for its water utility operations. UCW has used Automated Meter Reading (AMR) technology since 2004. This method requires significant staff time for manual (drive-by) meter reading. It also provides limited data for customers and for analytical research by the utility. With improving technology, more capable meter reading technology has become available. AMI is an integrated system of water meters, communication networks, and data management systems that enables two-way communication between water meters and utilities. AMI has many benefits with the most obvious being that AMI utilizes a fixed network to communicate with customer meters rather than utilizing the drive-by reading system of the AMR technology. AMI also has several other important business benefits as identified:
1) Customer Service
• More robust customer portal
• Detailed insight on consumption
• Leak alert/monitoring and communication options
• Simplified billing management
2) Operational Efficiency
• Eliminates drive-by meter reading process
• Provides easy access to critical information for field investigations and service requests
• Allows staff to shift from reactive to proactive work and monitoring the distribution system in real time
3) Resource Conservation
• Leak monitoring/detection
• Real-time understanding of system and usage
• Detailed data on customer usage patterns
• Improved customer class rate development
4) Data Management
• Real-time view of distribution system
• Increase/improve data flow across system silos
• Becoming a “Smart Water” utility
• IBT management and insight
UCW conducted a feasibility study in 2018 to evaluate migrating from AMR to AMI and determine the best path forward. In 2019, an RFP was issued for the purchase of water meters with consideration for a product that would be compatible with the existing meter infrastructure that had significant useful life remaining as well as capable of migrating to AMI in the future. UCW selected the Sensus meter and reading technology. UCW is ready to migrate to AMI to realize these benefits and complete the replacement of aging infrastructure.
To ensure compatibility with existing UCW meters that have significant remaining useful life, UCW has selected Sensus for this sole source selection. Sensus is the only vendor who can provide the compatible meters and base stations. In addition, Sensus is the license holder of the radio frequency used for communication between the meters, the transmitter towers, and the AMI host servers. Ferguson Waterworks is the exclusive Authorized Distributor of Sensus products for the state of North Carolina. This contract includes the replacement of approximately 20,000 meters that are at the end of their useful life, 50,000 new AMI Transmitters, and 17 Base Stations. Subsequent contracts will also be presented at a later date for a new Customer Portal and Professional Services for Data Management and Integration. If this item is approved, the County Manager will also be executing the agreement with Sensus related to the licensing and maintenance of the related software which will be paid for through this contract with Ferguson.
FINANCIAL IMPACT:
Funding for the Contract Sum of $13,657,018.17 (with a total amount to be paid including software licensing and support over a 5-year period of $14,316,618.69) is available within the adopted Water and Rehabilitation and Replacement Program for the Advanced Meter Infrastructure Project, and the amounts for software licensing and support in future fiscal years will be requested to be appropriated in those future fiscal years.