City Meter Reader Operations October 22, 2013

Agenda Review Current Meter Operations Review Current Meter Operations Annual Number of Meter Reads Annual Number of Meter Reads Outsourced Bid Proposal Outsourced Bid Proposal Questions and Discussion Questions and Discussion 10/22/132

Current Meter Reading Operations Electric Meters- August 2012 Meters were converted to AMI meters, which has an automatic update to the City’s computer system Electric Meters- August 2012 Meters were converted to AMI meters, which has an automatic update to the City’s computer system Gas Meters- By September 30, 2014 all meters will be AMR meters, which requires a City vehicle driving by the location to read the meter Gas Meters- By September 30, 2014 all meters will be AMR meters, which requires a City vehicle driving by the location to read the meter 10/22/13Final3

Current Meter Reading Operations (Continued) Water Meters- Currently 3,190 AMR meters, and the City has approximately 1,800 additional meters to exchange Water Meters- Currently 3,190 AMR meters, and the City has approximately 1,800 additional meters to exchange Expensive to outfit entire water system with AMR meters- Approximate cost per meter is $250 for a total cost of $4 million- Only a 10 year life Expensive to outfit entire water system with AMR meters- Approximate cost per meter is $250 for a total cost of $4 million- Only a 10 year life New development activity will have AMR meters New development activity will have AMR meters 10/22/13Final4

Annual Number of Meter Reads 10/22/13Final5

Bid $.75 Per Meter 10/22/13Final6

Projected Cost of Services 10/22/13Final7

Observations  Challenge to continue to deliver the service in a timely manner  The City budgets for six meter readers, but only has four positions filled  Cost for privatizing meter reading is expected to decrease going forward 10/22/13Final8

Benefits to Outsourcing  Ability to control costs  Avoid unpredictable expenses  Establish a cost model that match services  Reduce labor costs  More and better resources are available  Reduce the City’s risk  Ensure Compliance 10/22/13Final9

City Commission Options  Option 1- Move forward with awarding meter reading contract to the lowest bidder  Option 2- Maintain the current status and hire two additional meter reader employees, which would allow the department to be at full capacity 10/22/13Final10

Thank You QuestionsDiscussion 10/22/13Final11