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<br /> I <br /> I. CITY OF ARDEN HILLS <br /> MEMORANDUM <br /> I <br /> DATE: August 24,1995 <br /> I TO: Brian Fritsinger, City Administrator <br /> I FROM:@Terrancepost,City Accountant <br /> I SUBJECT: RFP for Water Meter Renlacement Proiect <br /> Backe'round <br /> , The need to replace residential water meters within the City is being driven by the majority of <br /> existing water meters being at or near the end of their functional life. The life expectancy of a <br /> residential water meter is estimated to be at twenty to twenty-five years. Conservatively, this <br /> , would place meters installed before 1975 in a "need to replace immediately"status. The costs to <br /> the water utility of not replacing these meters is an inaccurate billing of water consumption by <br /> customer. <br /> I The Public Works and Safety Committee evaluated this issue from a technical aspect in 1994 and <br /> ,. forwarded their recommendations to Council last year. <br /> The Finance Committee has also reviewed the proposed project from a funding standpoint. <br /> I Project costs are estimated to be in the $300,000 - $350,000 range. In 1995, the Finance <br /> Committee recommended that Council consider charging water customers a one-time fee to fund <br /> the majority of the conversion costs. <br /> I Technology Impacts <br /> The current water meter and related generator driven remote reader technology can be <br /> I characterized as early 1970's technology. In the past twenty years, touch-read, radio-read and <br /> phone-read technologies have been refined and are in general use within the industry. They each <br /> have unique cost/benefit relationships that will be explored as part of the RFP process. <br /> I Financial Considerations <br /> The water utility is expected to have a 12/31/95 cash and investments balance of approximately <br /> I $420,000. With operating cash flow requirements and significant capital watermain replacment <br /> costs expected in the near future, it does not seem prudent to expect the utility to fund such a <br /> project out of current assets. It appears that some level of customer cost participation in the <br /> I project is warranted. <br /> , The City of Mounds View is currently contemplating a similar water meter replacement project. <br /> There may be a possibility of project cost savings if an Arden Hills project could be timed with a <br /> ,. Mounds View project. <br /> , <br />