large meter replacement programmeter at the hood dairy plant. we collected $ 70,000 in revenue last...

•Sacramento Water Service Area

•Large Meter Replacement Program

•Meter Accuracy Testing

•Calculating Payback Period

•Meter Study Results-Comparative Billing Analysis

Sacramento Water Service Area

Approximately 100 square-mile service area

140,000 connections

Over 1,250 large meters ranging in size from 3” to 10”

Large Water Meters

Source: Dept. of Utilities

1%

99%

Number of Large Meters

Number of Small Meters

11%

89%

Large Meter Revenues

Small Meter Revenues

Perfect Revenue and Decrease Water Loss

• Develop a replacement schedule for large meters

• Install a bypass on all new installs and replacement meters.

• Correct misapplied meters

• Update meter shop to meet current and future challenges

• Attended various AWWA conferences and large meter workshops

San Francisco

EBMUD / Oakland

SJW /San Jose Water

What are other agencies doing?

•The San Jose Water Company installs double meters in all large

non irrigation meter applications .

•SJWC tests their large meters based on a combination of time and usage.

•Golden State Water Company Installs bypasses on all large meters

•GSWC tests their large meters every year.

What do we do ?City Library County Jail

Other locations

Verizon on Freeport K street Mall

Our Process and Criteria

•2009 Program planning begins.

•2010 Start with oldest first.

•2011 High runners first , return on investment.

Testing Meter Accuracy

AWWA testing procedures Accuracy = Metered VolumeActual Volume

City of Sacramento’s Meter Test Bench

.

•

The Payback period is calculated as follows:

Costs of installation and maintenance of the new meter as a percentage of the projected revenue gain over the old meter

Examples of Misapplied Meters and Corrective Action

8340 BelvedereThis is a 10” Badger turbinemeter at the Hood Dairy plant.

We collected $ 70,000 in revenue last year. The low flow on this meter is accurate at 50 gpm.

We replaced it with three 6” compound Meters with a low flow accuracy at 1.5 gpm.

The three meters are tracking at 40% gain in revenue.

8340 Belvedere

Months Billing History in Comparison: 1 Year

Old Meter New Meter

Meter size 10” TurbineThree 6” Compound

Average Monthly Billing Units

8,242.25 11,626.40

Average Monthly Revenue

$6,916.29 $9,680.30

MeterAccuracy Test Results

Low % 101.38Med % 101.5 High % 101.44

Average Monthly Gain

$2,764.03

Average Monthly Gain: 40%

6916.29

9680.3

Old Meter

New Meters

8340 Belvedere 15 Year Revenue Projections

10% Volumetric Rate Increase for First Three Years

YearTotal Projected

RevenueTotal Gain Total Costs Net Gain

Current to Year 3 $531,592.98 $152,1156.42 $8,242.17 $143,914.25

Year 4, 6-9, 11-15 $1,507,293.80 $432,292.95 $5,400.00 $426,892.95

Year 5, 10 $301,458.76 $86,458.59 $8,760.00 $77,698.59

Totals $2,340,345.54 $670,907.96 $22,402.17 $648,505.79

Assumptions: No rate increases after year 3 and volumetric usage is static across years.Small chamber replacement occurs every year. Large chamber replacement occurs every five years.

Current Year Year 1 Rate Increase Year 2 Rate Increase Year 3 Rate Increase Years 4 to 15

New Meter $116,163.60 $126,606.44 $138,093.55 $150,729.38 $150,729.38

Old Meter $82,995.53 $90,398.72 $98,542.23 $107,500.08 $107,500.08

$0.00

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

$160,000.00

Revenue Projection over the Life of the Meter

.

Payback Period 2.6 Months

555 Capitol Mall Commercial Office

Months Billing History in Comparison: 8

Old Meter New Meter

Meter size 6” Turbine 6” Compound

Average Monthly BillingUnits

77.50 1068.59

Average Monthly Revenue

$58.13 $801.44

Meter Accuracy Test Results

Low % 52.51Med % 79.79High % 86.41

Average Monthly Gain

$743.31

Average Monthly Gain: 1,278.70%

Old Meter

New Meter

555 Capitol Mall 15 Year Revenue Projections

10% Volumetric Rate Increase for First Three Years

YearTotal Projected

RevenueTotal Gain Total Costs Net Gain

Current to Year 3 $55,831.06 $37,494.56 $2,940.00 $34,554.56

Year 4, 6-9, 11-15 $154,411.68 $107,577.61 $1,800.00 $105,777.61

Year 5, 10 $30,882.34 $21,515.52 $2,920.00 $18,595.52

Totals $241,125.07 $166,587.69 $7,660.00 $158,927.69

Assumptions: No rate increases after year 3 and volumetric usage is static across years.Small chamber replacement occurs every year. Large chamber replacement occurs every five years.

Current Year Year 1 Rate Increase Year 2 Rate Increase Year 3 Rate Increase Years 4 to 15

New Meter $12,556.65 $13,440.20 $14,393.04 $15,441.17 $15,441.17

Old Meter $4,490.35 $4,549.49 $4,613.26 $4,683.41 $4,683.41

$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

$14,000.00

$16,000.00

$18,000.00

Revenue Projection over the Life of the Meter

.

Payback Period 6.9 Months

831 H St Sacramento County Superior Court

4” compound4” Compound

2” Displacement

831 H Street

Months Billing History in Comparison: 9/ 22 y.o.d.

Old Meter New Meter

Meter size 4” Turbine4” Compound & 2” DISP

Average Monthly Billing Units

76.67 605.62

Average Monthly Revenue

$57.50 $454.22

Meter Accuracy Test Results

Low % 89.34Med % 95.21High % 97.94

Average Monthly Gain

$396.72

Average Monthly Gain: 689.94%

Average Monthly Billing Units

3" Meters (Qty: 44) 4" Meters (Qty: 62) 6" Meters (Qty: 52) 8" Meters (Qrt: 26)

Old Meters $148,885.28 $319,803.67 $772,759.61 $390,900.94

New Meters $213,142.03 $446,456.08 $900,122.92 $484,844.95

$0.00

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

$900,000.00

$1,000,000.00

Average Yearly Revenue Billing History (June. 2011-Dec. 2012)

Preliminary ResultsComparative Billing- Old vs. New Meters

The graph below illustrates increased revenue of the new meters based on the average monthly gain we are seeing on the large water meter replacements performed between June 2011 and Dec 2012.

43% Increase 16% Increase 40% Increase 24% Increase

Meter Size

No. of Meters

Old Meter Revenue Per Year

PotentialRevenue per Year

Cost to replace Meters

Net Gain For FirstYear

Maintenance Costs

Net Gain over 15 Yr Lifespan

3” 44 $148,885.28 $213,142.03 $42,002.40 $22,254.35 $44,700 $1,173,565.33

4” 62 $319,803.67 $446,456.08 $88,771.60 $37,880.81 $171,740 $2,223,522.03

6” 52 $772,759.61 $900,122.92 $124,800 $2,563.31 $254,800 $2,245,739.97

8” 26 $390,900.94 $484,844.95 $49,617.10 $42,793.41 $91,000 $411,258.46

Totals 184 $105,491.88 $6,054,085.79

184 Meter Accounts-Potential Revenue

3" Meters 4" Meters 6" Meters 8" Meters

Old Meters $2,920,087.00 $6,272,039.38 $15,928,893.88 $2,299,278.77

New Meters $4,138,353.23 $8,756,343.01 $18,554,233.85 $2,851,154.34

$0.00

$2,000,000.00

$4,000,000.00

$6,000,000.00

$8,000,000.00

$10,000,000.00

$12,000,000.00

$14,000,000.00

$16,000,000.00

$18,000,000.00

$20,000,000.00Projected Revenues

$(100,000.00)

$-

$100,000.00

$200,000.00

$300,000.00

$400,000.00

$500,000.00

$600,000.00

$700,000.00

$800,000.00

$900,000.00

3" Meter 4" Meter 6" Meter 8" Meter

New Meter Yearly Revenue

Old Meter Yearly Revenue

Meter Install Cost

New Meter Revenue Minus Install Cost

New Revenue - Install Cost

$207,156.12Total Profit after Install

Large Bypass

Large Bypass

Small Bypass

Meter Bypass InstallationPurpose and Benefit

1515 K Street