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ARDEN HILLS CITY COUNCIL — July, 11, 2011 15 7.A. Consider Purchase of New Water Meter Readers (continued) changed their rules regarding systems in the Trace operating frequency. The FCC has stated that by January 1, 2013, all systems operating in the Trace range must use a narrow band defined as 12.5 KHz or less. The Trace system uses a 25 KHz radio frequency, so it will no longer be compliant with the FCC rules. The Capital Improvement Plan (CIP) has an item starting 2011 and running through 2014 to replace all meter readers. Staff went through a review process to look at systems that are compatible with our current meters, which should have 15 -20 years of life left. The Staff recommended system is a Badger Galaxy System that is a fixed network Advanced Metering Infrastructure (AMI). When the change out of meter readers is complete, meters will be read from a computer in the Finance Department. There will no longer be a need for a Public Works staff to spend 2 -3 days a month reading meters. Closeout of accounts can be done from City Hall without sending a staff member to the property to do a final reading. Staff is recommending purchase of the Badger Galaxy Fixed Network Collector Package, which consists of an antenna to locate on the water tower, computer software and installation, technical support, cellular backhaul, and 50 meters. In addition, staff recommends the purchase of enough commercial /industrial meter readers to change out all of those in 2011 with City staff. With the remaining funds staff would purchase approximately 50 residential meter readers. These would be used to change out failed meter readers and /or combine sump pump inspections with meter reader change outs. This system has an annual fee of $2,450 for technical support, software updates, and maintenance of the cellular backhaul. This fee will be included in future operating budgets for Water Utility. Mayor Grant asked for clarification on the KHz that the proposed equipment would operate at compared to the current system and the new FCC regulations. Public Works Director Maurer stated the current Trace system operates at 25 KHz and the Badger system operates at 20 KHz but it is at a different bandwidth than the Trace system operates at so it is not subject to the same regulations. The Badger system also uses technology where it can use different bandwidths as needed. Mayor Grant stated the type of batteries that are in the proposed system are different than those that are currently used and will require them to be disposed of differently. He asked if the Fire Department had been contacted to find out if there were any concerns they may have with these types of batteries. Public Works Director Maurer stated the battery couldn't be changed because they are sealed. Once the battery fails, the unit will need to be changed. The batteries have an estimated life expectancy of 15 -20 years. He stated that Staff had not consulted the fire department regarding the type of batteries. Mayor Grant stated according to the documents provided for the proposed system it would transmit the data only four times a day versus every hour. He asked why this was different than what Staff was showing.