CT2015-152 Application

• Contract/PO #: CT2015-152
• Contract/PO #: CMS 77047
• Contractor Name: Cortez, City of
• Contract Type: Loan
• County: Montezuma
• Loan Projects - Doc Type: Application

CITY MANAGER&COUNCIL PW-14-152
WATER METER READING PROCESS
July 8,2014 Page 2 of 3
profound effect on our situation. Every aspect of the outlined issues would be addressed in a
positive fashion.
Human Error: The transfer of data from the meter to billing software is all done electronically.
No interpretation of information is needed on a personal basis.
Personnel Coverage: Virtually any Public Works crewmember could drive our system. The
reading is done via radio that downloads meter information on the fly.
Timely Reading/Billing: Readings will be done in less than one day, allowing single billing
runs.
Static Information: The new "smart" meter provides data points that can identify low/high
flows, tampering, back flow, or leaks, and generate reports for each meter needing attention.
This would limit revenue loss due to any of these situations. Reports can be customized to be
generated for any of these situations immediately upon receiving the readings.
FISCAL IMPACTS
There are impacts associated with a system upgrade of this nature. The size and scope of this
work would impact the Water Enterprise Fund in the area of $1,000,000. Just looking at this
number by itself could seem unnecessary or excessive. In reality, it is not either of those. I have
gathered four proposals from different meter providers. This was strictly budgetary in order to
develop the potential costs for this work. They ranged from $700 thousand to $1.9 million; three
of the four came in under the $1 million mark.
Operational cost savings and increased revenues would be realized as a result of this upgrade.
The attached spreadsheet demonstrates the details of this component. Operational savings would
result from the reduction of two full-time (FT) personnel and their associated vehicular costs to a
0.1 FT position. This remaining 0.9 FT position would be brought into the Public Works
distribution program to fill a void that has been in place for some time now. The reality of these
changes and costs are identified in the attached spreadsheet.
Increased revenues would result from the replacement of all of our meter stock. Lost revenues,
due to under-metering by aged devices, would be realized. This is based on water industry
assumptions of a system of our size and consumption data.
Secondarily, unbilled and unmetered irrigation water being used by the Parks & Recreation
Department would be billed to support this project. This would be a calculated rate based on
similar factors used for the Ute Mountain Tribe, as a percentage of total raw water flows and
shared treatment costs. Using this formula, Parks would be charged at a rate of $1.37/1000
gallons; a savings of approximately $20,000 versus the current flat rate.
It would work out to an estimated savings of approximately $69,000 and increased revenues of
$100,000; totaling $169,000 annually.
Phone: [phone] www.citvofcortez.corm Fax: [phone]